Strategic Brand Management, 4th Edition
Author: Kevin Lane Keller
Chapter 8, pages 287 to 293
BRAND FOCUS 8.0: Rolex Brand Audit
For over a century, Rolex has remained one of the most recognized and sought-after luxury
brands in the world. In 2009, Businessweek/Interbrand ranked Rolex as the 71st most
valuable global brand, with an estimated brand value of $5 billion.27 A thorough audit can
help pinpoint opportunities and challenges for Rolex, whose brand equity has been
historically strong, as much is at stake.
“The name of Rolex is synonymous with quality. Rolex—with its rigorous series of tests that
intervene at every stage—has redefined the meaning of quality.”
Rolex was founded in 1905 by a German named Hans Wilsdorf and his brother-in-law,
William Davis, as a watch-making company, Wilsdorf & Davis, with headquarters in
London, England. Wilsdorf, a self-proclaimed perfectionist, set out to improve the
mainstream pocket watch right from the start. By 1908, he had created a timepiece that kept
accurate time but was small enough to be worn on the wrist. That same year, Wilsdorf
trademarked the name “Rolex” because he thought it sounded like the noise a watch made
when it was wound. Rolex was also easy to pronounce in many different languages.
In 1912, Rolex moved its headquarters to Geneva, Switzerland, and started working on
improving the reliability of its watches. Back then, dust and moisture could enter the watch
case and cause damage to the movement or internal mechanism of the watch. As a result,
Wilsdorf invented a screw crown and waterproof casebook mechanism that revolutionized
the watch industry. In 1914, the Rolex wristwatch obtained the first Kew “A” certificate after
passing the world’s toughest timing test, which included testing the watch at extreme
Twelve years later, Wilsdorf developed and patented the now famous Oyster waterproof case
and screw crown. This mechanism became the first true protection against water, dust, and
dirt. To generate publicity for the watch, jewelry stores displayed fish tanks in their windows
with the Oyster watch completely submerged in it. The Oyster was put to the test on October
7, 1927, when Mercedes Gleitze swam the English Channel wearing one. She emerged 15
hours later with the watch functioning perfectly, much to the amazement of the media and
public. Gleitze became the first of a long list of “ambassadors” that Rolex has used to
promote its wristwatches.
Over the years, Rolex has pushed innovation in watches to new levels. In 1931, the firm
introduced the Perpetual self-winding rotor mechanism, eliminating the need to wind a
watch. In 1945, the company invented the first watch to display a number date at the 3
o’clock position and named it the Datejust. In 1953, Rolex launched the Submariner—the
first diving watch that was water-resistant and pressure-resistant to 100 meters. The sporty
watch appeared in various James Bond movies in the 1950s and became an instant symbol
of prestige and durability.
For decades, Swiss-made watches owned the middle and high-end markets, remaining
virtually unrivaled until the invention of the quartz watch in 1969. Quartz watches kept
more accurate time, were less expensive to make, and quickly dominated the middle market.
Within 10 years, quartz watches made up approximately half of all watch sales
worldwide.28 Joe Thompson, editor of Modern Jeweler, a U.S. trade publication, explained,
“By 1980, people thought the mechanical watch was dead.”29
Rolex proved the experts wrong. The company would not give in to the quartz watch rage. In
order to survive, however, Rolex was forced to move into the high-end market exclusively—
leaving the middle to the quartz people—and create a strategy to defend and build its
Rolex is a privately owned company and has been controlled by only three people in its 100year history. Before Wilsdorf died, he set up the Hans Wilsdorf Foundation, ensuring that
some of the company’s income would go to charity and that control of the company lay with
the foundation.30 This move was a critical step toward the long-term success of Rolex as a
high-end brand. Over the years, many luxury brands have been forced to affiliate with
conglomerates in order to compete, but by staying an independent entity, Rolex has
remained focused on its core business. André Heiniger, managing chairman of Rolex
through the 1980s, explained, “Rolex’s strategy is oriented to marketing, maintaining
quality, and staying out of fields where we are not prepared to compete effectively.”
The Oyster Perpetual Collection includes the “traditional” Rolex wristwatch, and has eight subbrands that are differentiated by features and design. The Perpetual Collection targets affluent
men and women.
• • The Professional Collection targets specific athletic and adventurer user groups through its
features and imagery. The Oyster Professional Collection includes seven sub-brands.
• • The Cellini Collection focuses on formal occasions through its elegant designs, and
encompasses seven sub-brands. These watches incorporate fashion and style features like colored
leather bands and an extensive use of diamonds.
In addition to the three collections, Rolex owns a separate “fighter” brand called Tudor,
developed in 1946 to stave off competition from mid-range watches such as Tag Heuer,
Citizen, and Rado. Tudor has its own range of family brands, or collections, namely Prince,
Princess, Monarch, and Sport, each of which encompasses a number of sub-brands. Tudor
watches are sold at own-brand specialty stores and through the network of exclusive Rolex
dealers. Although they are no longer for sale in the United States, there are many outlets in
Europe and Asia. Tudor targets younger consumers and offers watches at a lower price
range. The brand is distinctly separate, and the Rolex name does not appear on Tudor
Rolex’s success as the largest single luxury watch brand can be credited to several factors.
The company not only produces extremely high-quality timepieces, but also tightly controls
how its watches are sold, ensuring high demand and premium prices. In addition, Rolex’s
sophisticated marketing strategy has created an exclusive and premium brand that many
aspire to own. The brand inventory will describe each of these factors in more depth.
Rolex’s most distinguishable brand element is its Crown logo. Trademarked in 1925, the
Crown made its appearance on the watches in 1939. The logo has undergone few revisions,
keeping its signature five-point crown intact over the years. Rolex watches feature the name
“Rolex” on the dial, a tradition dating to 1926. This development initially helped increase
brand recognition. Many Rolex watches also have a distinct look, including a big round face
and wide wrist band.
Throughout the years, Rolex timepieces have maintained the high quality, durability, and
prestige on which the company built its name. In particular, the firm has maintained a keen
focus on delivering a highly accurate watch of superior craftsmanship, using only the finest
premium materials such as gold, platinum, and jewels. It continually works on improving
the functionality of its watches with better movements and new, sophisticated features. As a
result, Rolex watches are complex mechanisms compared to most mass-produced watches.
A quartz watch, for example, has between 50 and 100 parts; a Rolex Oyster chronometer has
Each Rolex watch consists of 10 unique features identified as the company’s “10 Golden
• 1. A waterproof case
• 2. The Perpetual rotor
• 3. The case back
4. The Oyster case
5. The winding crown
6. The finest and purest materials
7. Quality control
8. Rolex self-winding movement
9. Testing from the independent Controle Official Suisse des Chronometres
10. Rolex testing
The company does not license its brand or produce any other product besides watches. Its
product portfolio is clear, concise, and focused.
Rolex spends more time and money than any other watch company fighting counterfeiters.
Today, it is often hard to spot the differences between a $25 counterfeit and a $10,000
authentic Rolex watch. Counterfeiting Rolex watches has become a sophisticated industry,
with sales exceeding $1.8 billion per year.
By limiting production to approximately 2,000 watches a day, Rolex keeps consumer
demand high and prices at a premium. Prices start around $2,500 for the basic Oyster
Perpetual and can reach $200,000, depending on the specific materials used such as steel,
yellow gold, or platinum. Scarcity also helps positively influence the resale value of Rolex
watches. One report indicated that “almost all older Rolex models are valued above their
initial selling price.”32
Rolex carefully monitors how its timepieces are sold, distributing them only through its
approximately 60,000 “Official Rolex Dealers” worldwide. Official dealers must meet
several criteria, including a high-end image, adequate space, attractive location, and
outstanding service. In addition, a large secondary market exists for Rolex, both through
online auction sites such as eBay and at live auctions run by Christies and Sotheby’s.
Rolex’s marketing and communications strategy strives to create a high-quality, exclusive
brand image. The company associates itself with “ambassadors”—established artists, top
athletes, rugged adventurers, and daring explorers—to help create this imagery. Rolex also
sponsors various sports and cultural events as well as philanthropy programs to help align
with targeted demographics as well as create positive associations in consumers’ minds.
Advertising. Rolex is the number-one watch advertiser in the world. In 2008, the firm
spent over $49 million on advertising, $20 million more than the number-two contender,
Breitling.33 One of the company’s largest expenditures is for magazine advertising. Rolex’s
print ads are often simple and austere, usually featuring one of its many brand ambassadors
or a close-up photo of one of its watches with the tagline “Rolex. A Crown for Every
Achievement.” Rolex does not advertise extensively on television, but does sponsor some
events that are televised.
Ambassadors. Rolex’s celebrity endorsers are continuously added and dropped
depending on their performance. These ambassadors fall into four categories:
athletes, artists, explorers, and yachtsmen (see Figure 8-8). Aligning with acclaimed artists
symbolizes the pursuit of perfection. Association with elite sports figures is meant to signify
the company’s quest for excellence. Its support of sailing events, for example, highlights the
company’s core values: excellence, precision, and team spirit.34 Explorers also test the
excellence and innovation of Rolex’s watches at extreme conditions. Rolex ambassadors
have scaled Mt. Everest, broken the speed of sound, reached the depths of the ocean, and
traveled in space. A print ad will usually feature one ambassador and one specific watch,
with the goal of targeting a very specific demographic or consumer group.
In 2011, much to the surprise of industry experts, Rolex signed golfer Tiger Woods as a
Rolex ambassador. Woods has had a long and complicated history as a celebrity endorser of
watches. In 1997, just after he turned pro, Rolex’s Tudor watch signed him to a partnership
that lasted almost five years. Woods backed out of the contract in 2002 to sign with rival
Tag Heuer, which paid him approximately $2 million annually. Woods rationalized his
decision to end ties with Tudor by explaining, “My tastes have changed,” and that he didn’t
“feel a connection with that company.”35 In 2009, the tables turned when Tag Heuer
announced it had ended the relationship following Woods’s involvement in a sex scandal.
Rolex’s sponsorship marked the golfer’s first celebrity endorsement since 2009. The
company said it was “convinced that Tiger Woods still has a long career ahead of him and
that he has all the qualities required to continue to mark the history of golf. The brand is
committed to accompanying him in his new challenges … This association pays tribute to
the exceptional stature of Tiger Woods and the leading role he plays in forging the sport’s
global appeal. It also constitutes a joint commitment to the future.”36
Sports and Culture. Rolex sponsors a variety of elite athletic and cultural events to
reinforce the same messages, values, and associations as it does through its ambassador
endorsements. These include a quest for excellence, pursuit of perfection, teamwork, and
ruggedness. Rolex sponsors sporting events in golf (U.S. Open Championship, the Open
Championship, and the Ryder Cup), tennis (Wimbledon and the Australian Open), skiing
(the Hahnenkamm Races), racing (Rolex 24 at Daytona), and equestrian events.
Rolex also sponsors several sailing races, including the Rolex Sydney, Rolex Fastnet Race,
and Maxi Yacht Rolex Cup. The company has partnered with extreme exploration
expeditions, including The Deepest Dive and Deepsea Under the Pole. It is a major
contributor to establishments such as the Royal Opera House in London and the Teatro alla
Scala in Milan to align with a more cultural audience.
Philanthropy. Rolex gives back through three established philanthropic programs:
• 1. The Awards for Enterprise program supports individuals whose work focuses on benefiting
their communities and the world. These projects are focused on science and health, applied
technology, exploration and discovery, the environment, and cultural heritage. 37
• 2. The Young Laureates Programme is part of the Awards for Enterprise program, providing
support for outstanding innovators between the ages of 18 and 30.38
• 3. The Rolex Mentor and Protégé Arts Initiative seeks out extraordinarily gifted young artists
around the world and pairs them with established masters. Young artists have been paired with
accomplished filmmakers, dancers, artists, composers, and actors.39
Rolex has successfully leveraged its history and tradition of excellence along with innovation
to become the most powerful and recognized watchmaker in the world. Some positive
consumer brand associations for Rolex might be “sophisticated,” “prestigious,” “exclusive,”
“powerful,” “elegant,” “high quality.” Some negative brand associations that some
consumers may link to the brand, however, could include “flashy” or “snobby.” Figure 89 displays a hypothetical Rolex mental map.
In one report by the Luxury Institute research group in New York, consumers had positive
attitudes in terms of purchase intent toward Rolex. Wealthy people said they were more
likely to buy a Rolex than any other brand for their next watch. The Rolex brand was far
more recognizable (84 percent knew it) than Bulgari (39 percent) and even Cartier (63
percent), although several rivals outranked Rolex for perceived quality and exclusivity.40
A 2008 Mintel survey on the watch industry revealed that “women are still likely to view
watches as an accessory, with many buyers choosing their watch based on looks alone.
However, at the top end of the luxury market there is a growing number of women who are
interested in mechanical watches. The study also found that women are increasingly
choosing androgynous or unisex watches.”41
Many older, affluent people place a high value on owning a Rolex, whether new or
collectible. In 2011, a Rolex sold for $1 million for the first time. The watch—an oversized
stainless-steel split-second chronograph wristwatch manufactured in 1942—was purchased
at Christie’s Geneva auction for $1,163,340, an all-time high price paid for any Rolex.42
While the brand and product line seem to resonant well with older, wealthy individuals,
Rolex struggles somewhat to connect with younger consumers. In a NPD Group poll, 36
percent of people under the age of 25 didn’t wear a watch.43 Another study by Piper Jaffray
revealed that 59 percent of teenagers said they never wear a watch and 82 percent said they
didn’t plan to buy one in the next six months.
Brand Resonance Pyramid
The Rolex brand resonance model pyramid (see Chapter 3) is equally strong on the lefthand and right-hand sides. There is great synergy between the two sides of the pyramid; the
functional and emotional benefits Rolex strives to deliver are in harmony with consumers’
imagery and feelings about the brand. The pyramid is also strong from bottom to top,
enjoying the highest brand awareness of any luxury brand as well as high repeat purchase
rates and high customer loyalty. Rolex has successfully focused on both the superior product
attributes and the imagery associated with owning and wearing a Rolex. Figure 810 highlights some key aspects of the Rolex brand resonance pyramid.
Rolex has many competitors in the $26.5 billion watch industry; however, only a few brands
compete in the very high-end market.44 Through its pricing and distribution strategies,
Rolex has positioned itself as a high-end luxury watch brand. On the lower end of the
spectrum it competes with companies such as TAG Heuer and OMEGA, and on the high end
with brands such as Patek Philippe, maker of the world’s most expensive wristwatch.
TAG Heuer. A leader in the luxury watch industry, the Swiss firm TAG Heuer
distinguishes itself by focusing on extreme chronograph precision in its watches, and on
sports and auto-racing sponsorship in its advertising. Founded by Edouard Heuer in 1876,
TAG Heuer has been a mainstay in the luxury watch business. In 1887, the firm created the
first oscillating pinion, a technology that significantly improved the chronograph industry
and is still used in many of its watches today. In 1895, it developed and patented the first
water-resistant case for pocket watches. TAG Heuer expanded into the United States in
1910, introduced a chronograph wristwatch in 1914, and has continued to focus on
chronograph innovation ever since.
TAG’s image and positioning is inextricably connected to chronograph precision. Its
timepieces were the official stopwatches of the Olympic Games in 1920, 1924, and 1928. The
firm was a Ferrari team sponsor of Formula 1 from 1971 to 1979 and was part of the TAGMcLaren racing team from 1985 to 2002. It was also the official timekeeper of the F-1 race
series for much of the 1990s and early 2000s.45 TAG Heuer has sponsored numerous
Americas Cup teams and other yacht racing teams over the years.
TAG Heuer uses officially licensed retailers to sell its watches both in stores and online.
These licensed retailers range from exclusive jewelers to department stores such as
Nordstrom and Macy’s. The watchmaker generates brand awareness through brand
ambassadors and sponsoring sporting events and advertises extensively in magazines. In
1999, TAG Heuer was purchased by luxury goods conglomerate LVHM.
OMEGA. Founded in 1848 by Louis Brandt, OMEGA has long prided itself on the precision
of its watches and timing devices. It built what was Amelia Earhart’s watch of choice during
one of her transatlantic flights and has been involved in aviation and athletic timing ever
since. OMEGA was the time equipment selected for the 1936 Winter Olympics, which saw
the first use of synchronized chronographs. By 1937, the company had launched its first
waterproof wristwatch, and in 1967 it invented the first underwater touchpad timing
equipment, which was used in Olympic swimming competitions. OMEGA watches
accompanied the expedition to locate the exact position of the North Pole, and boarded the
Apollo 11 mission to become the first and only watch ever to land on the moon. OMEGA is
now owned by watch conglomerate, Swatch Group.
Like Rolex and TAG Heuer, OMEGA employs ambassadors to generate brand awareness,
including athletes Michael Phelps, Alexander Popov, Ernie Els, and race car driver Michael
Schumacher as well as Hollywood stars Nicole Kidman and Cindy Crawford. In 1995,
OMEGA became the official watch of the James Bond film franchise.
OMEGA watches are offered in both women’s and men’s styles in four different collections:
Constellation, Seamaster, Speedmaster, and De Ville. Prices vary greatly even within
individual collections. Watches in the De Ville collection range from $1,650 to over
Patek Philippe. In 1839, Antoine Norbert de Patek and François Czapek started a Swissbased watch company built upon 10 values: independence, innovation, tradition, quality
and workmanship, rarity, value, aesthetics, service, emotion, and heritage. After several
name changes during its formative years, the company was finally named Patek Philippe.
The innovator of many technologies found in today’s high-end watch, it represents the
absolute pinnacle of luxury timepieces. In particular, the firm prides itself on creating many
of the world’s most complicated watches through innovations with split-second
chronograph and perpetual date technology.
Unlike other leading luxury watchmakers, Patek Philippe does not rely on event sponsorship
or brand ambassadors to generate name recognition. However, since 1851, the firm has
made watches for royalty throughout Europe. Its watches are only sold through authorized
retailers, of which there are 600 worldwide. In 1996, the brand started its “Generations”
campaign, building on its values of heritage and tradition and featuring the tag line, “You
Never Actually Own a Patek Philippe, You Merely Look After It for the Next Generation.”
Patek Philippe evaluates every authorized dealer’s storefront to ensure that it meets the
watchmaker’s quality standards. It also separates itself from other watchmakers on price,
with its least expensive noncustomized watch retailing at $11,500 and its most expensive at
Figure 8-11 summarizes some positioning analysis and possible points-of-parity and
points-of-difference, as described below.
Points-of-Parity. Rolex is similar to other watchmakers in the high-end luxury watch
market on several levels. They all make their watches in Switzerland, which is renowned for
superior craftsmanship in watch making, and they all deliver high quality. All pride
themselves on their attention to detail and ongoing innovation in the watch industry.
Points-of-Difference. Rolex separates itself from the competition in several ways. One,
Rolex watches have a distinct look with their Crown logo, big face, and wide band. Two,
Rolex has kept a strategically tight control on its distribution channel and production levels,
creating a sense of prestige, importance, and exclusivity in the minds of consumers. Three,
it has kept the brand pure, remaining focused only on watches and never licensing its name.
Through careful selection of event sponsorships and brand ambassadors, Rolex has cut
through the clutter, resonated with consumers around the world, and maintained an air of
Brand Mantra. Rolex has been extremely successful in building a global name through
clever marketing and communications, without compromising the integrity of the brand. It
has nurtured the belief that acquiring a Rolex represents a milestone in one’s life and has
built a well-known brand recognized for its elegance and status throughout the entire world.
A brand mantra that captures these ideas might be, “Classic Designs, Timeless Status.”
The Rolex brand audit proved that Rolex is a very strong brand with significant brand
equity. It also identified a few opportunities and challenges:
Leverage the Company’s Independent, Continuous Heritage and Focus
• • Rolex is the largest and most successful watch company in the world. As a result, many
consumers don’t realize it is privately owned and competes against major conglomerates such as
TAG Heuer’s parent company, LVMH, and OMEGA’s parent company, Swatch Group. While
being privately owned is a good thing for many reasons, it also brings up several challenges. For
example, Rolex has to compete against companies that are 10 times its size. Larger companies
have lower labor costs, wider distribution, and significant advertising synergies.
• • Rolex may want to leverage and promote the fact that in some ways it has to work harder to
succeed. It is doing what it has done for 100 years—making durable, reliable, premium watches
on its own. Due to the currently popular anti-Wall Street vibe, this positioning may resonant well
Leverage the Company’s Elite Craftsmanship and Innovation
• • Research from the Luxury Institute group suggested that consumers do not consider Rolex the
top brand in quality and exclusivity. History has proved that Rolex watches are in fact leaders in
both craftsmanship and innovation and Rolex may want to run a campaign focused more on these
Connect with the Female Consumer
• • Women make up the majority of jewelry and watch purchases. However, as Mintel’s 2008 study
revealed, women are more and more interested in purchasing unisex mechanical watches rather
than feminine-styled watches. This is a great opportunity for Rolex, whose watches are primarily
masculine in design. The firm could move away from its decorative, jeweled watches and
introduce more powerful, gender-neutral watches. Its 2009 Oyster Perpetual Datejust Rolesor 36
mm is one example—robust, with large utilitarian numbers, and waterproof to a depth of 100
meters.46However, its floral dial design and diamond-set bezel possibly give it an unnecessary
• Rolex may want to tweak its female ambassador list to coincide with a more unisex product line.
Women who have succeeded in a male-dominated environment such as Condoleezza Rice or
Katie Couric could be powerful brand endorsers.
Attack the Online Counterfeit Industry
• • Counterfeits damage the company’s brand equity and present a huge risk to the brand. The boom
in e-commerce has taken counterfeit Rolexes from the street corner to the Internet, where fakes
can reach far more consumers. Consequently, the age-old problem of counterfeiting is a bigger
threat than ever before. To maintain its limited distribution, Rolex does not authorize any of its
watches to be sold on the Internet. In order to combat the online sale of counterfeits, however,
Rolex might consider building an exclusive online store, or an exclusive distribution site to which
all official e-retailers must link. In fact, Rolex dedicates extensive resources to fight the illegal use
of the brand, including sponsoring the International Anti-Counterfeiting Coalition and suing
companies that allow the sale of counterfeit Rolexes.
Use Marketing to Reach Younger Consumers
• • Research has shown that younger consumers do not value watches the same way older
generations did. As a result, Rolex should be researching the questions: How will prestige be
defined in the twenty-first century? Who or what symbolizes prestige, ruggedness, precision? Will
the same formula work for the millennial generation as they age and move into the Rolex target
Communicate Long-Term Value
• • Rolex competes for a share of the luxury buyer’s wallet with a host of other types of goods, such
as clothes, shoes, and handbags. Many are less durable over time than a Rolex watch and are
susceptible to falling out of fashion. Rolex should leverage its superior value retention—both in
its resale value and in its “heirloom” quality—in order to better compete for luxury spending with
brands outside its category.
• • Swiss luxury watch competitor Patek Philippe used print advertising to communicate the
heirloom quality of its watches. Rolex could pursue a similar approach, perhaps using its more
visible ambassadors, to communicate its own heirloom quality.
Running head: LOYAL CUSTOMER WORKSHEET
Loyal Customer Worksheet
LOYAL CUSTOMER WORKSHEET
1. Complete the following chart in 90- to 175- words:
Apple brand has been chosen because of its popularity across the
globe. From history, Apple Inc. has been on the electronics market,
and it is known for its manufacturing of quality products including
Why was this brand
iPhone, Siri products, and laptops, among other products (Apple
Inc., 2017). Also, the brand’s position has been evolving for years
and its consistency is seen even today. The evolution of the brand
emanates from the Apple Inc.’s culture of working hard to innovate.
The company has used innovation as a strategy to build, improve,
and keep the level of the brand. The proper design of the brand to
meet customer requirements makes it popular and, of course, liked
by the firm’s customers and admired by many other people.
LOYAL CUSTOMER WORKSHEET
2. Identify the four components of brand position:
1 The target customer: the main audience who
utilize a firm’s product.
2 Brand essence: The brand’s “soul and heart”
3 Brand personality: Description given to the
brand by use of adjectives
4 Brand promise: Assurance of various benefits of
the brand that are relevant.
LOYAL CUSTOMER WORKSHEET
3. Analyze the brand position in its niche/market as it relates to the four components of
brand position in 90- to 175- words.
Apple is one among the best brands in the world, and this is what makes Apple Inc. a successful
company in the electronics market. Teenagers, university and college students, business people,
kids, and adults are target customers for Apple’s products. Apple brand personality is very
strong because the brand utilizes and concentrates on emotions; it begins with how the
company’s products make its customers feel. This means that the strength of the brand’s
personality is defined by way of life, innovation, passion, imagination, desires, and dreams and
hopes as well as power-to-the general public through knowhow. Innovation is the brand’s “heart
and soul.” It is what makes it unique and sets it apart from other competitors like Samsung and
Amazon on the electronics market. Innovation also enhances Apple’s assurance of the benefits
its products give to the customers based on their needs. So, Apple brand promise is nearly 100
percent, and this is why Apple products are trusted by customers throughout the entire globe.
4. Evaluate brand equity in 90- to 175- words.
Other than being intimate about Apple’s products, customers love the brand, and there exists a
community of consumers of the company’s main products. Apple brand’s equity is tremendously
strong. Apple Inc. uses price-premium that it sustains in many of its product extents. The strong
preference in products the firm has puts it in a top position in the electronics market hence
attracting more revenues than its competitors. In the recent past, Apple Inc. has improved its cost
in manufacturing its products while keeping the level of the strong equity of the brand.
LOYAL CUSTOMER WORKSHEET
5. Identify current challenges and opportunities for the brand:
Additional increase in production expenses
Products are diversified
The intensifying competition from other areas
Investing in research areas as well as
like India and China.
Damage in reputation because of tax scandal.
Increased focus on service business sector
Incompatibility of Apple products with other
Increasing compatibility of products
services and products.
6. Explain in 90- to 175- words what strategies you propose for the brand based on the
identified challenges and opportunities.
Apple Inc. should increase the use of “green” energy such as solar energy to reduce energy costs.
The company should design and manufacture some products that are compatible with other
devices on the market to increase customer flow. In increasing revenues through the production
of competitive compatible products, Apple Inc. should form strong partnerships with other firms.
Partnerships are also sources of research and innovation. The firm should restructure its
management to curb the issue of tax and other financial forms of fraud. The company should also
diversify its business by extending it to service business to increase revenue generation.
LOYAL CUSTOMER WORKSHEET
7. Based on the readings, what is the difference between a product and a brand? Compare
the two in no more than 175- words.
A thing made in a plant
A thing that a customer buys
A competitor can imitate it
A competitor cannot imitate it; it is unique.
Can be out of date quickly
Successful brand does not expire.
It performs a specific role like printing
It adds value or boosts consumer’s
(printer), writing (pen)
It is a customer’s need.
It is a customer’s want
It is easily replaced.
It is irreplaceable
It is tangible
It is hard to touch and see
LOYAL CUSTOMER WORKSHEET
Apple Inc. . (2018, January 18). About Apple. Retrieved from www.apple.com:
Purchase answer to see full