Apple is the world’s most valuable brand in 2016, with a value of nearly $146 billion, according to Brand Finance. This marks the fourth straight year Apple has held the top spot since displacing Coca-Cola in the 2013 Interbrand report. When it comes to brand building, Apple definitely has an edge on the competition. Here are some case studies of how Apple and other leading companies built their brands by building a reputation and thereby setting examples other businesses can emulate.
Apple: Building by Design
The story of how Apple built its brand began in 1976. Apple’s earliest logo was a black ink drawing of Isaac Newton sitting under a tree. Steve Jobs thought this logo might be slowing down sales, so he asked Regis McKenna Advertising to design a new logo. The result was the famous apple shape, with a bite out of it, portrayed in multiple bright-colored stripes that symbolized the innovative color capability of the Apple II. Over the years, this design was gradually modified and eventually simplified to a flat, white apple in keeping with Apple’s minimalist design philosophy.
While Apple’s logo has changed over the years, the brand has maintained a consistent philosophy, centered around an approach to design, McKenna explained. Whereas traditional advertising had sought to persuade consumers to buy products, Apple brought consumers into the marketing process by developing designs geared toward what market research revealed about user needs. In so doing, Apple innovated in ways that opened up new markets.
To promote its new products, rather than relying on advertising, Apple cultivated influential reviewers within the technology world who became loyal advocates of the Apple brand. This loyalty spread to Apple customers, creating a dedicated following ready to spread the word whenever the company released a new product. By bringing its customers into the product-design process, Apple built a reputation for well-designed products that has endured over several decades.
Amazon: Building on Customer Service
Another case study in brand building comes from today’s fourth-most-valuable brand, Amazon, whose CEO Jeff Bezos focuses primarily on company performance and customer service. This focus emerged from the early days of the company in the mid-90s, when Amazon positioned itself as “Earth’s Biggest Bookstore.” At that time, online shopping was a new concept, and Amazon’s biggest challenge was building consumer trust in this method of shopping.
To address this head on, Amazon decided to begin posting customer reviews, with the idea that seeing product reviews from regular, everyday people would build consumer confidence. The company also discovered one of the main reasons people shop online is due to convenience. This led Amazon to focus on streamlining its checkout process through one-click ordering. Amazon also learned customers resented shipping charges, leading to free shipping for its Prime customers.
Through such innovations, Amazon gradually built a reputation for customer service. The company consistently ranks at the top of customer satisfaction indexes, and it works hard to maintain this reputation. Every employee, including the CEO, spends two days each year at the service desk taking calls and helping customers. Today, Amazon continues to push the bar on customer service through innovations like Alexa and Echo, which enable customers to place orders using their voice.
Nexen Tire: Building on Quality, Consistency
Brand building isn’t just for corporate giants like Apple and Amazon. Growing companies can also use branding to gain an edge on larger competitors. A perfect example is Nexen Tire, which aims to compete with larger tire companies like Firestone by building a reputation for quality and consistency. Nexen began in 1942 in Korea as Heung-A Company, Korea’s first tire company, later renamed Woosung Tire. In the beginning, the company manufactured tires for other brands. Then, in 2000, the company launched its own brand, renaming itself Nexen, which stands for “next century,” alluding to its focus on quality and innovation.
Nexen set out to provide the highest-quality tires that deliver a smooth and comfortable ride. Toward this end, it focused heavily on research and development in its first 15 years of existence. The company first built a reputation in the replacement tires market before branching out into the auto manufacturer market. Between 2012 and 2016, Nexen went from selling no tires in the auto manufacturer market to 2 million a year. In the process, its innovative tires began to gain industry recognition and awards. By staying committed to innovative quality and consistent performance, Nexen has positioned itself to surge forward and stake its place among the leaders of the tire industry.
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