Magazine article Marketing

Alan Mitchell on Branding: Source of Apple's Success

Magazine article Marketing

Alan Mitchell on Branding: Source of Apple's Success

Article excerpt

The company's reputation is driven by the interaction of factors that go far beyond branding alone.

If you had a queue of 300,000 people keen to fork out hundreds of pounds to buy your product on its first day, you might think you had a raving success on your hands. Some people, however, are being sniffy that this is 'all' that iPad has achieved on its US debut, which goes to show how high our expectations of Apple have become.

You can see why. The company's recent performance really has been extraordinary. Last year, it shrugged off the recession to boost Mac sales by 33%. In the last quarter alone, it grew total sales by 25%, including 8.7m iPhones. Profits soared 50%. Perhaps not surprisingly, Apple also came top of Fortune's Most Admired Companies list for the third year running. 'The whole world held its breath before the iPad was announced,' BMW chief executive Norbert Reithofer told the magazine 'That's brand management at its very best.'

Is it really 'brand management' that's driving Apple's success, or is it awe-inspiring innovation? Or design flair? Or disruptive business models such as iTunes? Or visionary leadership? Or a unique corporate culture? Or great customer service?

In fact, if there is one thing that isn't driving Apple's success, it is probably 'brand management'. Sure, it does its fair share of 'branding'. It has a cool, instantly recognisable logo and it's done some great advertising. It's also a past master at event management. However, these are all just icing on the cake - necessary but small contributions to a much bigger process.

People don't love Apple products because they adore the Apple brand - they adore the Apple brand because they love its product. When I say 'product', I don't mean just the single item people happen to buy, but the 'product' of everything Apple does.

Let's borrow a little bit from physics. Our world is full of 'epiphenomena': stable patterns that arise from the interactions of many different constituent elements and display unique 'emergent properties' that cannot be seen at the level of these elements. The wetness of water is an example of an emergent property. You cannot see wetness at the level of the individual water molecule; wetness arises from the way millions of them interact.

The disturbing thing about epiphenomena and their emergent properties is that, while they are as real as wind and rain, they also elude narrow if-then logic. If you are looking for a neat, straight line between cause and effect between water molecule and wetness, you won't find it. …

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