Life-Cycle Case Study: Apple

What factors helped Apple out of period of overall decline and transformed it into compamy it is today?

Apple started out as any company. When Steve Jobs and his friend came up with the new computer, it was declined by the major companies. However, couple of years later, Steve Jobs became the riches person in the world thanks to his company; the Apple.

Apple uses many strategies to keep its customers. Probably the main reason they are as sucessful as they are is because of the strong customer loyalty they develop. In stores, they have special technicians that help you. As I personally noticed, I always get asked what my name is and then the workers always make sure to use my name when speaking to me and say "what a great evening we had" after they are done patiently explaining about the product. Nice treatment, knowledge and free help makes Apple very attractive to the consumers. The whole idea of the "Apple cult" is to keep people coming back for more. Therefore new generations and new models are made. Months before the new product is released, Apple advertises it and makes people excited, making them be among the first ones who get it. As new products are being released, the older ones get a little cheaper, so even if a person can't afford the new one but still be "cool" as everyone else (because "cool" and "sophisticated" became the definitions of the Apple brand) they can get one of the older models. This psychological strategy makes people believe that if they are owners of Apple products, they are part of something bigger and better which perfectly satisfies their yearning for belonging. Apple constantly develops new models. Originally they started out as a Mackintosh company making computers, but nowdays they make technology that varies all they way from Macs through iPods and iPads to earphones and computer cases. Apple also has contract and "coproducts" with other companies, such as Nike. A particular example is an iPod case for arm when the concumer runs, so he doesn't have to hold the iPod while excercising. This kind of symbiosis helps both companies because it promotes both brands and appeals to more kinds of people.
The technologically aware people knew longer before that keyboards don't have future, yet Apple was the first one to develop the touch screen. This fancy technology appeals to the consumers and by this beat the competition for a while. Among the biggest Apple competition is Android.
The overall feel of the Apple products is a very sophisticated, style that promotes beauty in simplicity of usage.

Branding: The Story of Coke

Source: Coca Cola: The Real Story Behind The Real Thing

Coca cola started out as a new, unfamiliar drink that became an international sensation in about 123 year of its production. Today, it is sold in 206 countries around the world, still making their way to the potential customers, 90 million just in Africa.

1) What did coke do in early years to appeal to consumers?

Rober Woodrif, considered the best leader of the Coca Cola “army” came up with the six pack. However it was at first a fountain beverage, it made people feel good because it reminded them of their childhood.

2) What made Coca Cola different from competition?

When there were riots and problems in Africa, all of the foreign companies withdrew their support and availability. Coke made a very risky decision and stayed, making the people of Africa love Coke and make it seem like a very progressive company. Now days, there are 85 thousands of  2 liter bottles of coke sold in South Africa per day. In the villages where violence and poverty are high, on paydays Coke is seen as the “extra dose of optimism”. Also, essentially said everyone who gets their hands on the bottle, drivers, store owners etc., are ensured to get money, which means that Coke ensures their jobs. 

Also, Coke was sent to soldiers during the war only for a nickel, no matter what it cost the company and gave the soldiers sensation of “what they were fighting for”.

3) What factors have helped Coca Cola to become an internationally successful brand?

The Coke Company makes sure they get advertised as much as possible at the vents where there are many people. A great example is the 2010 soccer World Cup in 2010. They spent 100 of millions to present the logo. Also, in South Africa soccer is the sport that everybody plays, no matter what social class they are in. The fact that they relate this product to what everybody loves and everybody does makes them extremely popular and likable. Another great example is a soccer commercial of the “super underdogs”. In this commercial, young boys play perfectly while performing amazing stunts and winning the game, thanks to Coca Cola.

Most of the things bought in store are bought on impulse. Therefore Coke’s placement and advertising is thoroughly thought out.

Coke constantly tries to appeal to all social classes.

4) What are some things Coke has done to make its brand recognizable?

Coke was at first a fountain drink. Then after some people who bought the Coca Cola concentrate were making more money than the Coke Company who sold the concentrate to them, Coke started to be concerned. Therefore they started to bottle their own product. However, Pepsi emerged as a drink that offered twice as much liquid for the same price as Coke and that won over many consumers. Coca cola started to make a King size Coke, which gained consumers back. Later on a test was made whether people preferred Pepsi or Coke more, and Pepsi won again. As a response, Coke changed its formula after 99 years. This outraged some people not because the new Coke tasted worse, but because they were “toying with their youth”.  Since people made an emotional connection to the old Coke, Coca Cola made a comeback as Coca Cola Classic and unintentionally proved that there’s nothing better than the original Coke which gave them another economic boost.

Another feature of Coke are its bottles, that are inspired by the woman’s body and increase its sale by million per week. This bottle is authorized and no other drink has it besides of Coca Cola.

5) How is Coca Cola organized to ensure their product availability?

The Coke products are distributed almost everywhere in the world. In places where it’s not available directly in the local store, people walk miles to get it. An example is Africa where truck divers wake up early in the morning, move the bottles to some villages, where then store owners go through the dirt roads and even raw sewage just to buy Coke products and bring it to their stores, that is many times the front porch of their house.

Coke gives small gifts such as refrigerators with their logo to small businesses in exchange for brand loyalty.

6) What innovations is Coca Cola beginning to use?

One of the newest innovations is the Free Style machine. It is a new technology with touch screen, using brands and flavors to make Coke beverages according to buyer’s taste. First, the customer chooses one of the Coke brands such as Coca Cola, Sprite, Minute Maid and many others. Then they add flavor if they desire such as vanilla or grape. This machine then sends information how much of which product was sold and what combinations were made. Each brand is bought at least once a day, but the original flavors are still in the lead.

Coke tries to purchase “the next big thing” before I becomes a phenomenon. Therefore the leaders are thinking of what people will like in 5 or so years. Today, Coke owns 70 different brands in the US and 500 drinks around the world including teas, juices and flavored waters.