Branding strategies of Apple and Walmart on consumer loyalty

¶ … Branding Strategies of Apple and Wal-Mart on Consumer Behaviour

The intent of this paper is to analyze the effects of Apple's unique branding strategy vs. competitors on consumer behaviour. Wal-Mart's unique and evolving brand is also analyzed relative to competitors and then evaluated in terms of its impact on consumer behaviour as well. Both of these companies have unique market positions and also have a significant number of highly loyal, repeat customers as well. The loyalty of Apple customers is legendary and considered amongst the strongest of any manufacturer. Wal-Mart's core customer is also highly loyal, often shopping at Wal-Mart due to both convenience and economic necessity to get the low prices and help make financial ends meet. The paper begins with a brief analysis of the Apple branding strategy and follows with one of Wal-Mart, concluding with a series of lessons learned.

Apple's Unique Branding Strategy

Apple's concentration on ease of use, simplicity of product design and user interface, and free integration between all products immediately differentiated the brand from its IBM PC and compatibles competitors. More than the integration aspects was the product design that exemplified the core values of the most loyal customers found so attractive in the Apple brand and the Apple products. Approachability, simplicity, ease of use, a good does of individuality and non-conformity further differentiated the Apple brand from IBM initially and now Lenovo. Most striking of the differences between Apple's brands and its IBM PC-compatible competitors was the formers' adherence to more innovation over price reduction, greater concentration of being transparent and communicative to its customers over blindly launching a new product every year or eighteen months, and a high level of concentration on creativity over procedural approaches to using their PCs. As a result of all these factors, Apple has successfully concentrated its efforts on creating a brand that is price insensitive, where loyal customers are willing to pay the premium for their favoured products. Not focusing purely on features and functions and instead of the benefit of giving consumers the opportunity to unleash their creativity has helped Apple to also gain and consistently grow the most loyal customer base in the personal computer industry.

The implications of this from a consumer behaviour standpoint are clear. First, the Apple consumer base is called "the cult of Apple" as these select customers look at the Apple systems and products as extensions of their own identities; this has been made possible by the concentration Apple has made on giving its customers as many opportunities as possible to customize not only the systems but also the software and processes inherent in each. Apple has also always strove to be completely transparent and trustworthy with customers, a key differentiator regarding their brand relative to IBM PC and compatibles competitors. The elements of approachability, transparency and trust are all critical in Apple maintaining the high level of customer loyalty gained through decades of consistent practices.

Summary

It can be seen from the analyses of Apple relative to its competitors, and Wal-Mart's performance relative to K-Mart with an EDLP strategy, that each of these two company's brands have a highly unique approach to invoking and sustaining trust in consumers. Further, Apple's highly unique branding strategy underscores the role of branding as creating exceptionally dedicated fans of the brand. For Wal-mart, their segmentation strategies all center on the value-oriented shopper, predominantly the woman of the household that is in charge of purchasing children clothes, supplies, stocking the home with food and supplies. This shopper makes a median income of $40K (U.S.) a year and often lives pay check to pay check, needing the Wal-mart prices to make ends meet. Wal-Mart has become so well trusted by this segment that this group comprises 30% of global sales of the company. Clearly the ability to gain trust and sustain its is inherent in each of these company's brands.