news from the intersection of branding & technology

Posts Tagged ‘IPad’

Finally! Microsoft wakes up.

In Apple, Microsoft, mobile & tablets, Technology on March 28, 2014 at 6:48 am

MS Office comes to your iPad

by Robert Liljenwall

Office on iPadThe announcement happened March 27, but it has been in the works for months. Microsoft Office is coming to iPad.  I already knew this:  I learned about it a week ago – while ‘camping.’  My Airstream was parked next to another Airstream in Northern California, recently purchased by a just-retired Microsoft executive. We got friendly, and I told him that I would not get an iPad until it had Microsoft Office, one of my major objections to the tablet world.  (I have a MacBook Air, which I love).  He then informs me “… that’s going to happen in the next two weeks!”  “You’re kidding?” He said it was decided that “Microsoft has to be where our customers are … and they’re on iPads, and so we have to be there, too!”

We at BTN have always felt that Microsoft was too narrow-minded in refusing to allow Apple to have the Office suite – it was a strategic decision to drive customers to Surface, their tablet version.  But it clearly wasn’t working – Surface sales have always languished, and while it’s very versatile, it never had Apple’s panache and the new Microsoft CEO Satya Nadella recognized that if must deliver services to both businesses and consumers wherever they are, especially on mobile devices.

The new Office Suite app will be live for free on Apple’s App Store immediately, but for creating and editing content, you will need an Office 365 subscription, which their Home Subscription costs $9.99/month or $99.99 a year.  The expected revenue for Microsoft is estimated at $1.4 billion, which outweighed any risk to Windows.

So, the Microsoft brand has somewhat righted with its iPad move.  Microsoft has been trying to make it in the non-Xbox world of hardware with phones and tablets, but it continues to struggle.  A recent study showed that Apple and Samsung have now just about crushed any attempts from others in the smartphone and tablet business.  So, Nadella may just be on a roll to adjust Microsoft’s focus to the services business.

Always, there were tensions between Microsoft and Apple, stemming from the Bill versus Steve battles from the early days of the PC development in the late 1970s. Microsoft swiftly grew to soaring heights, leaving Apple in its dust.  But Microsoft invested $150 million in Apple when it needed it in 1997 to integrate Microsoft Office into the Apple line of products, which provided Jobs the boost he needed for selling computers.

Apple has not provided any sales projections yet – but BTN will keep you posted. Hmmm … time to go shopping? – RJL 

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iPad Air’s Magic Ride

In Apple, innovation, mobile & tablets on November 8, 2013 at 3:37 pm
Image representing Apple as depicted in CrunchBase

Image via CrunchBase

by Robert Liljenwall

Perhaps the biggest ‘noise’ generated since Apple introduce its Fall Lineup of new devices and software was the iPad Air. It’s lighter, sleeker and faster. But its Retina display makes it so pleasing and attractive to the eye; one can’t help but want to plunge right into the screen.

I have an regular MacBook Air now and while I love its lightness and quickness, I don’t love the screen, and I am tempted to get an iPad Air. But then what?  Honestly, with my current Air, I still enjoy the luxury of the lightest-weight laptop out there that can take all of my applications, like Microsoft Office – which has become a major battleground between Microsoft and Apple. As long as Microsoft is in the tablet business, they’re not going to let Apple have Office – regardless of how Microsoft’s sales for its Surface are not setting any sales records. Does this really go back to Jobs versus Gates “days”?  Probably. Can you imagine the day Microsoft announces that they have struck an Office deal with Apple for the tablet market?  My suspicion there was someone in Seattle who made the statement … “over my dead body.” (Bill is only 58, so don’t hold your breath.)

But getting back to the iPad Air. Macworld‘s Jason Snell (11/6) couldn’t say enough good things about the new iPad Air – “they made the best tablet better!” And while initial sales figures have not been released, according to Chinese suppliers, the initial sales response is nearly three to four times that of the iPad4 (a year ago) … which means that the iPad Air will most likely be the holiday’s premier, high-end gift under the tree.

With the world’s fastest processor – A7 – the iPad Air will most likely not sway too many iPad Mini owners to switch since it is expected that Apple will convert the Mini to a Retina display come early 2014. And then there’s the issue about “hand-ability” – the Mini is easier to hold with one hand versus the Air or regular iPad4.

But in the end, I know if I wander into the Apple store, I will be reaching for my wallet. I’m still unhappy with iOS7 and its pastel-colored, hard-to-read screens on its apps … but I’m patient. – RJL

Apple Tops BrandZ’s ‘Most Valued Brands’ Study

In Apple on May 22, 2011 at 8:28 am
Image representing iPad as depicted in CrunchBase

Image via CrunchBase

by Robert Liljenwall

Apple has now climbed to the top of the World’s Most Valuable Brands, according to the latest study published by mega-agency WWP in their 6th Annual BrandZ list earlier this month.  WPP companies, which include some of the most eminent agencies in the business, provide national, multinational and global clients with a broad range of marketing and advertising services.  Their annual BrandZ study, conducted by Millward Brown, measures the brand equity of thousands of global “consumer facing” and business-to-business brands, based on interviews of over 2 million consumers globally.

When you scan the Top 100, you’re not really surprised by the rankings.  The “usual suspects” remain strong and relevant in 2010.  For example, behind Apple comes Google, IBM, McDonald’s, Microsoft, Coca Cola, AT&T, Marlboro, China Mobile (a newcomer to the Top 10), and General Electric.

It’s important to immediately point out that brands are in good shape: While the overall recovery has been tepid, the report states, the value of the world’s best brands grew at a considerably faster rate than what we saw in 2009. Compared with an overall improvement of 13% in the world’s equity markets during 2010, the best brands grew their value 30% faster, registering a 17% increase since last year.

Inside BrandZ

The BrandZ report is a brand goldmine – full of segmented rankings and data on a variety of how the Top 100 brands are connected within their categories – while pulling out insights on trends, emerging markets, and how ‘we’ – collectively – are coping with the merging of brands and technology.

For example, many of us would never suspect that Amazon.com would become a more valuable brand than the world’s largest retailer – Walmart – but this year, WPP has put the world’s largest “online” retailer ahead. Who would have thought just a few years ago that Apple would be the world’s #1 most valued brand?

It should be noted that Interbrand’s Top 100 Global Brands competes for attention with the BrandZ ranking although its criteria and methodology is different.  One of the key unique elements of this methodology is the ‘Trust-R’ assessment, which looks at the relationship between trust and recommendation.   WPP finds that there’s a high correlation between high Trust-R and bonding, which drives sales.  The other unique element is the ‘Value-D’ assessment, which seeks to measure the gap between the consumer’s desire for a brand and the consumer’s perception of the brand’s price.

The Top 100 Brand List focuses on “actual monetary (quantifiable) contribution to the brand’s success.” For example, the BrandZ ranking notes that the Coca Cola brand value is based solely on the “value of Coca Cola” – and not all of the other company’s 3,500 brands owned/managed/distributed, such as Fanta and Minute Maid. Apple’s brands, on the other hand, are based on its broad monolithic brand structure where all of its products are considered part/parcel of the Apple brand.

Our Observations

As BrandTech News reviews the comprehensive rankings in the Top 100 Most Valued Brands, it is clear that technology brands continue to dominate – 12 out of the top 20 brands are technology companies.

Facebook, just seven years old, made it to the Top 100 (35th) in a meteoric rise and with 500+ million registered users already – of whom 50% visit daily – is quickly morphing into the alternative Internet where it has become the premier connection for brands, consumers, and everything promotional. Only 30% – 150 million – of the users are in the United States.

But what is propelling Apple has been the phenomenal success of the iPhone and the iPad. Before the launch of iPad2, there were 15 million iPads around the globe because Apple made it available on Verizon and distributed through a bank of hungry retailers. Apple expects to sell 30 million iPad2 this year – giving it a dominating 80% market share in the tablet market. And just how in the world will the other 100 tablet makers share the remaining 20%?

What does this success breed? Apps – and lots of them. Today there are 350,000 apps created just for Apple and another 250,000 for the Android. What does this do for the merging of brands and technology? Consumer obsession, frenzy – on steroids.

Another key point in the brand study was that we are seeing an upward trend in all surveyed sectors in the study: All 13 product sectors measured in the BrandZ Top 100 ranking appreciated in overall brand value – which didn’t happen in 2009, when only four of the sectors grew. To some extent, this bodes well for 2011 and beyond if we truly believe the recession was officially over in 2009. Since these WPP surveys cover events of the previous year (2010), the ongoing Middle East unrest and higher oil prices are of course not reflected in these rankings. The leading sectors in brand value growth was insurance (137% increase), fast food (22%), luxury (19%), technology (18%), and apparel (10%). These were followed by financial institutions, beer, cars, soft drinks, personal care, retail, oil & gas, and telecom providers.

The top retail brands were Amazon, which rose 37% in brand value last year alone. Walmart, Tesco, Carrefour, Target, eBay, Home Depot, ALDI, Auchan, IKEA, Lowes, Marks & Spencer, Best Buy, Costco, Lidi, Kohl’s Asda, Sam’s Club, Sainsbury’s and Safeway. The growing use of mobile devices, pre-shopping on the Internet, and discriminating shoppers who are more deliberative before the purchase decision – have made shopper marketing much more challenging. Lower prices weren’t always enough – shoppers wanted a better shopping experience, and private labels grew but not at the rate they had during tougher economic times.

Walmart tinkers and retreats
According to BrandZ, Walmart executed a course correction to reassert price leadership after alienating some of its US customer base by reaching for affluent consumers with edited merchandise displays and less cluttered, more efficiently run stores. The previous effort, Project Impact, was intended to hold on to higher-income shoppers.  Walmart decided in 2008 to reduce POP displays from 700 to 300 per store, and to eliminate 15% of the items carried in store. This perceived, less-cluttered look was to give Walmart the chance to expand and clean up their aisles – not necessarily appealing to the ‘value-happy’ customers.   Instead, at stores open for a year or more, sales fell 1.5% in its second quarter, ending July 31, 2009. Third-quarter sales dropped 0.5%, followed by a 2% retreat in the fourth quarter.  In March of 2010, Walmart reversed course to correct this trend.

On a significant note, Walmart is in the throes of negotiating to buy Massmart Holdings in South Africa, and if that occurs, many predict that Walmart will have a positive impact on improving local economies wherever they go on this continent. Is Walmart a game changer? We think so.

Meanwhile, Dollar Stores won shoppers by tinkering with range and promoting low prices (they are the fastest growing retailer segment in the US today). Target countered the high-price perception of its trendy approach to discount retailing, expanding food selection to drive shopping trips and increase basket size.  The largest global brands continued their expansion into China and other fast-growing markets such as India and Brazil. Each of these countries has brands that are now solidly placed in the Top 100 Brands.

This 52-page report (which you can download at www.wpp.com ) can be overwhelming in the amount of data it has collected. In conclusion, however, we congratulate WPP on another great report – and while it’s a ‘good-news’ report for brands, retailers, and technology providers (compared to the previous two years – we continue to be optimistic about our retailing future – where it occurs.         RJL

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Steve Jobs dips into Apple’s brand equity to answer critics….

In Apple, brand-building on July 30, 2010 at 6:40 pm
Image representing Steve Jobs as depicted in C...
Image via CrunchBase

by Robert Liljenwall

How strong is Apple‘s brand?  Count the numbers – more than 3.3 million iPads sold in the past two months….Apple is selling the new iPhone4 at the rate of 4 million per month….Apple becomes the nation’s second largest corporation (the largest tech company ahead of Microsoft) in terms of valuation, second only to EXXON Mobile.  Overall, between the iPhone, iPad, and iPodTouch, Apple is selling 6.85 million IOS devices a month or 42 percent more than Android.  This is a battle of classic proportions between Apple and Google, and it ain’t over yet.

But let’s talk about brand equity=.  How does any company deal with adversity and controversy about its behavior or product failure?  We can all take lessons from British Petroleum on how NOT to conduct crisis management.  Also, we have learned from Johnson & Johnson’s masterful handling of the Tylenol scare in February 1986 when a woman was reported dead from cyanide poisoning in Tylenol capsules.  Johnson & Johnson immediately pulled the product from all shelves.  It was, indeed, a brilliant and gutsy move to take their most popular brand off the shelf.  It preserved their brand leadership for the past 25 years.

What did Steve Jobs do when their antennae wasn’t working the way they said it would work on the new iPhone4?  He held a much-anticipated, well-attended news conference.  No recall.  No apologies.  He explained this was a very common problem with all cell phones and his expertly designed Keynote slides demonstrated that the actual failure was so minor that it was within so-called industry standards.  Steve did offer a free phone guard to keep your sticky, electric-generating fingers and hands off of his iPhone so the antennae would work.  Besides, he said, all cellphones have the same problem. There, take that!  And what did his competitors say:  “Hogwash!”.

This is what we call in the brand business – a brand equity withdrawal.  If your company has a strong brand – you can get away with this once in awhile – not all the time, of course.  But Apple has been performing so spectacularly these past few years, it is hard to argue with Steve Jobs or Apple’s overall financial (re: brand) performance. The numbers don’t lie:  These are consumer votes, and they not only vote with their feet, but with their wallets.  Apple stores are grossing over $4,000 a square foot around the world (average) and it’s the highest of any retailer in the world.

When you go into an Apple store, as I did yesterday to finally pick up my iPhone4, I was amazed that in the middle of a workday, the place looked like the character shop on Main Street at Disneyland.  (I can’t recall someone asking Steve Jobs after his news conference….”where you going?”  “To an Apple Store!”).  Every spare experiential station was full with people standing in line to try out the new iMac (just came out) or the iPad or the iPhone.  Gold cards were flying out of wallets.

Let me tell you a cute story….After getting my new iPhone4 activated (“do you need a bag?” the kid in the blue shirt asked me?  “No.”  I wanted to show off the new iPhone4 box it came in).  I’m walking out the store – hated to leave, but just before I reach the doors, this young gentleman is walking next to me.  I look at him, and whispered…”Did you buy anything?”  “No, I didn’t.”  “Well,” I said, “you know, don’t you, that the alarm goes off if you didn’t buy anything.”  He stopped and looked at me, surprised at what he had heard.  I stopped, too, cracked a faint smile, and we walked and laughed our way out of the Apple store in Pasadena.  Me?  I had my new iPhone4 and damn happy about it.  The kid?  He’ll be back.  He told me Mom had to approve it first.

Apple’s brand equity?  There is probably no company on the Planet right now who has more equity in their brand than Apple.  And in Steve Jobs.  If you want a good, ol’fashion cry about the success of free enterprise, read Fast Company’s current article on Apple.  You’ll find out why Apple epitomizes the best of American ingenuity, creativity, business success, and why the Apple culture is to be emulated.

OK, so you think I’m biased.  I am.  I admit it.  But what was amazing to learn that my perception of the Apple brand is that its customers are similarly attracted to other classy, sophisticated brands.  I teach Brand Management at UCLA Extension and we talked about the Apple customer – what are their values?  What other brands would they be attracted to?  We came to the conclusion that an Apple iPhone user is the same type of person who would want to own a Porsche.  Fast Company came to the same conclusion.  I used to own a Porsche….but my needs have changed.  I own a Toyota Tundra (small ouch) to pull my Airstream (another fabulous brand)….but I damn sure am going to own Apple’s latest iPhone.  Can’t do without it.  And neither can the other millions who couldn’t wait to get their hands on the new iPhone.  If anyone knows that, it is Steve Jobs.  He knows his customers.  He has turned a “want” into a “need”.

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