Page |0 Table of Contents Executive Summary Introduction Brand Equity Brand Positioning Brand Mantra Challenges of IPod Reference

Appendix 1 1 2 3 4 5 6 7

Page |1 Executive Summary The report is aimed to discuss and explained some important concept of branding. IPod of Apple Inc. is selected the be the example for discussion To study branding and related topics, we must first clearly define what Brand equity is and how it is achieved and measured. Afterwards, the core elements and concepts of brand positioning will be discussed based of point of difference and point of parity. Readers can also know more about brand mantra from this report. Some interesting data or concept about the portable audio players market will also be mentioned and investigated. It is suggested that this report can be used for some reference for studying branding and the portable audio players market.

Page |2 1. Introduction: In order to investigate some major concepts of branding, IPod is selected as example for the purpose. In this report, brand equity, brand positioning, brand mantra will be discussed. 2. Brand background Apple Inc. has created and marketed series of IPod since October 2001. Apple is the most profitable electronic devices manufacturers in the world (Fortune Global 500). Apple's brand value has climbed over 150billion since 2011 (WPP Plc., 2011). The series of IPod consists of the iPod classic, the IPod touch, the iPod Nano and the iPod shuffle. ITunes, specific software designed for Apple's devices can be used for transferring media files from computers to different models of IPod. IPods have been sold over 220 million worldwide and is one of the best-selling digital audio players in the world. Recent years, IPad and IPhone have overridden the sales of IPods; however, it is no doubt that IPod series is always remarkable and shinning in the history of Apple Inc.

Page |3 3. Brand equity Brand equity defines in terms of a brand's marketing effects to the customers. When a product is marketed like other similar products but results in different outcomes just because of the brand name, brand equity is achieved. Brand equity usually means greater profit and higher customers' loyalty. In general, there are two sources of (Customer-based) brand equity, which are brand awareness and brand image. Brand awareness is a combination of brand recognition and brand recall. Repeated exposure can be a key to make customers get familiar with the brand, thus, achieves a high degree of brand recognition. On the other hand, forging strong associations with relevant purchase or product category is a road to brand recall. Brand image are comprehension of various unique and positive brand associations. Those brand associations must be strong and unique, in which are well-managed by marketers. The high degree of IPod's brand awareness is brought by the fact of 70% market share (Rock

and Roll Apple Live Event, 2009). Users are the best promotion tools for IPods.
Advertisements of IPod are all-rounded and extensive, IPod gains ultimately high brand exposure by multi-channels advertising. Hundreds of retail stores are located in different major cities around the world; it is no doubt that high brand exposure of IPod is resulted. IPod also does a great job in brand recall. The advertisements and marketing campaigns make customers think of IPods once they go for audio players. IPod comes to people's mind when they hear mp3 player. It is the fact that Apple IPod is the de facto standard in the digital audio player market. Many digital magazines and celebrities recommend IPod due to their personal experience and the high quality of IPod. This is a result of effective marketing campaigns and strategies. IPod has helped millions of people around the world rekindle passion for music and we're thrilled to be a part of that.(Steve Job) The strong associations of IPod (in some ways, ITunes) with music makes all the above comes true. IPod image cannot be separated from the one of Apple. Apple is a brand of cool and simple-designed high-tech electronic devices. IPod has shared a similar image with more characteristics such as pop and young which is very appealing to the target customers.

4. Brand positioning Brand positioning is a strategic approach to establishing a sustainable competitive advantage in order to position the company or product in a distinct place of the market. There are many ways to position a brand and different ways should be used for different brands or products.

Page |4 The way to position a brand is constrained by resources and competitions. To make the brand different from others is the core part of positioning. Effective Brand Positioning is a result of successfully identifying and communicating a brand's uniqueness, differentiation and verifiable value. The competition of IPod brings by other players in the market of portable audio players such as products of Microsoft, SanDisk, and Toshiba. The effective brand positioning makes IPod be the winner of the competition. To further explain the effective positioning of the brand of IPod; it is necessary to discuss the terms of Point-of-difference (POD) and Points-of-Parity (POP). POD is positive valuable attributes of a brand which consumers believe that they cannot find something similar from other brands. POP is in contrast to POD, POP is not supposed to be unique for a brand but some attributes shared with other brands. Achiever of POD differ itself from others in the eyes of customers where achiever of POP makes customers believe that the brand is on standard or somehow satisfactory in some aspects. IPod has successfully achieved and communicated its POP. IPod is well known for its excellent and stylish design. Following the style of other products of Apple, simplicity is the main design theme of the series of IPod. On the other hand, the mechanism of controlling the IPod is always appreciated by users. ITunes, the supporting software of IPod, brings excellent experience of transferring and downloading music. These attributes are unique and wonderful to many IPod users. On the other hand, IPod's price is still fair comparing with other brands; IPod can perform most functions of other audio players in the market also. In this sense, IPod achieves POP and appears to be a nice choice in customers' eyes.

5. Brand mantra Brand mantra captures the essence of spirit of the brand in few words. A good brand mantra should be able to summaries the uniqueness of the brand and define the business boundaries on certain extent. Brand mantra is always memorable, simple and inspiring. Brand Mantra is not a slogan or a tagline but ground-stone like wordings, representing the soul of the brand

Page |5 positioning. IPod is a product of the brand mantra of Apple think different. IPod design and operating system is totally different from all other similar products in the market. The positioning of IPod and the functions performing by IPod is changing the habit of the users and the world of digital music. IPod is something different, a product of think different. The Apples brand mantra think different has not only directed the development of the company and the products under its name but also the customers of the market. For IPod brand mantra, they are more or less extensions of the brand mantra of Apple, which are Listen to music for the brand function, technologic for descriptive modifier and smart for emotional modifier. The brand mantra of IPod is the best summary of its positioning. 6. Summary of major challenges for the brand There are many players in the portable audio player market, such as the big brand of Toshiba, Sony, Microsoft, SanDisk and some smaller brands. They bring direct competition to IPod and challenge its leading position through marketing effort and price war. On the other hand, IPod is challenged by substitutes of portable audio players such as smartphones. The whole audio players market is shrinking because of the new products and changing of customers behavior. Portable audio players functions can be performed by most portable electronic devices nowadays; its uniqueness has been vanished. To conclude, It is not avoidable for the fall of IPod in the markets of developed countries as its the market trend. However, IPod may have to develop plans and strategies to capture markets in less-developed countries as customers in these markets are still interested In IPod, which are out-dated products on certain extent.

References 1. 2. Global 500 Fortune, 25July 2011, Fortune magazine 3rd edition Strategic brand management, Kevin Lane Keller

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Appendix 1: Reflections I have learnt a lot about branding by doing the report. I have scanned through the text book carefully when writing the report; thus, make myself clear about many branding concepts. It is very interesting to write a report about IPod. I am a fan of Apples products but I have never tried to know more about its branding strategy and history. I am happy to have the chance to investigate some of her history and branding strategies.