Tag Archives: brand management

Apple Launches its First Retail Stores in India

According to the United Nations, India is on track to pass China as the world’s most populous country later this year. This is an important demographic trend for marketers to recognize; China has held the rank of the most populous nation in the world since 1950.

Along with India, the two countries combine to equal roughly a third of the world’s 7.9 billion people (and likely more by the time you read this article). However, China has an aging population, with low growth. India on the other hand has a much younger population, higher fertility rate, and decreased infant mortality.

Recognizing these trends, Apple has finally opened its first two retail stores in India –  Mumbai and New Delhi, two of India’s wealthiest cities. Until now, Apple products were sold only by third-party sellers in India, which presented its own set of problems for the company. Apple sold 6.5 million iPhones in India in 2022; compare this with the volume of 50 million a year sold in China and the U.S. China is a growing market for technology and innovation.

Of particular interest will be the iPhone pricing. The iPhone is a relatively expensive phone for consumers there. Considered a ‘premium’ product, only 11% of the market could afford iPhones. However it was also the fastest growing segment.

For all these reasons, it’s easy to understand why companies do through analysis of countries for expansion. Population size is only one indicator of potential sales. The psychographic profile is also key. India’s population is more willing to pay a premium for phones and as a ‘premium’ product,  Apple is viewed as a status symbol there.

What does Apple need to do to succeed in India?

Group Activities and Discussion Questions:

  1. Show video of opening of Apple in India: https://youtu.be/cRiSSV5pfzk
  2. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  3. Which strategy is Apple using for this new venture?
  4. Why this marketing strategy?
  5. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Apple.
  6. Have each team determine the marketing mix (4Ps) to support their strategy choice.
  7. Debrief the exercise.

Source:  Kharpal, A. (18 April 2023). Apple opens its first store in India as it looks for a new generation of iPhone users. CNBC.; Travelli, A., and Raj, S. (18 April 2023). Apple opens first store in India, a promising frontier for the tech giant. New York Times.; other news sources.

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How to Apologize in Business

Everyone makes mistakes. Every company makes mistakes. It happens. But what should happen after the mistake? Should apologies be made? How should the apology happen?

It’s not unusual for mistakes to happen inadvertently. This past holiday season Graza, a startup company that produced squeezable bottles of extra-virgin olive oil, made a mistake. It shipped holiday gifts late – and badly packaged – disappointing many customers and turning away prospective new customers.

The company’s chief executive decided to take the apology into his own hands and apologized to every customer who had purchased the products within the previous 60 days and asked for a second chance. He sent a 835-word apology to more than 35,000 customers. He wrote it honestly and didn’t worry about crafting the perfect letter. It came from his heart.

The results were also heart-warming. Within minutes of sending the message, hundreds of customers responded, thanking him for his honesty. Most of the customers also pledged to continue to support Graza and buy its products.

What makes a good apology?

  1. Say you’re sorry for what you did.
  2. Show you understand why it was bad.
  3. You can explain, but don’t make excuses.
  4. Say why it won’t happen again.
  5. And offer to make up for the mistake.

Mistakes happen. Apologies should follow.

How would you apologize?

Group Activities and Discussion Questions:  

  1. Discuss what happens when a company makes an error in its marketing or business.
  2. Check out Graza’s website: https://www.graza.co/
  3. Show the Graza apology letter: https://s.wsj.net/public/resources/documents/GrazaApologyEmail.pdf
  4. Divide students into teams. Have each team research a time a company made a public mistake that annoyed its customers.
  5. Another example: Southwest Airlines flight cancellations over the holidays: https://www.npr.org/2023/01/04/1146865858/southwest-airlines-apologizes-and-then-gives-its-customers-frequent-flyer-points
  6. Now have each team craft an apology.
  7. Include the wording, the placement of the apology, and any potential remedies for customers.

Source:  Cohen, B. (12 January 2023). What happened when the olive oil startup apologized. Wall Street Journal.

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2022 Top Global Brands

As marketers, we know that brands influence consumer purchasing decisions. But really, what is a brand? Does a brand have a financial value? Does it drive growth?

These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.

Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the report:

  • The brand must be global – it must have successfully crossed geographic and cultural boundaries.
  • At least 30% of revenue must come from outside the brand’s home region.
  • The brand must have a significant presence in at Asia, Europe, and North America, as well as geographic coverage in emerging markets.
  • There must be sufficient publicly available data on the brand’s financial performance.
  • Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s cost of capital.
  • The brand must have a public profile and awareness above and beyond its own marketplace.

Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.

Brands in the top five  in 2022 include Apple (number one for the 10th consecutive year), Microsoft (moving up a spot to number 2), Amazon, Google, and Samsung. Indeed, the top 10 brands have a cumulative brand value greater than the combined value of the 90 brands.

The fastest risers from 2022 in terms of brand value percentage change are Microsoft, Tesla, Chanel, Ferrari, Lego, Google, Hermes, and Dior. New entrants to the list in 2022 include Airbnb (#54), Red Bull (#64), and Xiaomi (#84).

How many did you correctly guess?

Group Activities and Discussion Questions:

  1. Ask students to define “brand.” What is it? Does it have value to a company?
  2. Have students take out a piece of paper. Ask them to choose what they think are the top 10 most valuable brands in the world.
  3. Then show the top 10 list from the Global Brand report: https://interbrand.com/best-global-brands/
  4. How many did they get correct? What surprised them?
  5. Show a video on the methodology used to evaluate brand value: https://youtu.be/tK2ozWQ0HA4
  6. Show students several of the sections within the site and view the videos as a class.
  7. Divide students into teams and assign each team an industry category to examine: automotive, apparel, beverage, electronics, energy, etc.
  8. Have each team present key findings from the industry sector they examined.
  9. How can these findings be applied in marketing strategies?

Source: Interbrand.com; PR Newswire

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