1. How Could It Be?
Mujiya Ulkhaq
Delivered on October 08th 2012

2. Just Ask
Name a company with a more loyal and energized customer
base than Apple!
A : How do you know your friend’s mobile phone is Nokia?
B : Simple, just ask him.
A : How do you know your friend’s mobile phone is Samsung?
B : Similar answer, just ask him.
A : And how about Apple?
B : No need to ask, he will show you.

3. Apple’s Devotee
Is it true Apple has the most loyal customers?
We reviewed 2,379 customer comments and complaints from
Apple, Dell, HP, AT&T, Sprint, T-Mobile, Verizon, Bank of
America, Chase, Citi, and Wells Fargo collected from 7,194
customer interviews between January 2011 and March 2012.
Vocalabs, April 2012

4. Apple’s Devotee

5. Contents
1
History
2
Current Condition
3
How Could It Be?
4
Case Study (Extended)

6. History
Apple Inc. (formerly Apple
Computer, Inc.) is an American
multinational corporation established
on April 1, 1976 (incorporated
January 3, 1977) by Steve Jobs,
Steve Wozniak, and Ronald Wayne.
Apple started life in “the garage” of Steve Jobs’ parents on Crist Drive in
Los Altos, California (inset: the exterior of the house as it is today).

7. Products

8. Current Condition
Apple Inc. is the most admired company in the United States
from 2008 until 2012.
Company
2008
2009
2010
2011
2012
Apple
1
1
1
1
1
Google
4
4
2
2
2
Amazon.com
20+
20+
5
7
3
Coca-Cola
20+
12
10
6
4
IBM
20+
17
15
12
5
FedEx
7
7
13
8
6
Berkshire Hathaway
2
2
3
3
7
Procter & Gamble
8
6
6
5
9
Johnson & Johnson
9
5
4
17
12
General Electric
3
9
16
13
15
Microsoft
16
10
11
9
17
Fortune, 2008-2012

9. Current Condition
Apple Inc. is the most admired company in the United States
from 2008 until 2012.
Apple Inc. is the largest publicly-traded corporation in the world by
market capitalization as October 3, 2012.
Rank
Company
Market Cap. (US$ Billion)
1
Apple
627.85
2
Exxon Mobil Corp.
428.80
3
Wal-Mart Stores
251.06
4
Microsoft Corp.
250.85
5
Google
248.58
6
IBM
242.82
7
General Electric
242.56
8
PetroChina Company
235.76
9
Chevron Corp.
229.11
10
AT&T
223.79
Zacks Investment Research, 2012

10. Current Condition
Apple Inc. is the most admired company in the United States
from 2008 until 2012.
Apple Inc. is the largest publicly-traded corporation in the world by
market capitalization as October 3, 2012.
As of September 24, 2011, Apple Inc. had 60,400 permanent full-time
employees and 2,900 temporary full-time employees worldwide.
Apple Inc.’s worldwide annual revenue in 2010 totaled US$ 65 Billion,
growing to US$ 108 Billion in 2011.
(US Securities and Exchange Commission, 2011)
Apple Inc. is the world's third-largest mobile phone maker after
Samsung and Nokia.
Company
1st Q 2012
1st Q 2012
(Units)
Market Share (%)
1st Q 2011
(Units)
1st Q 2011
Market Share (%)
Samsung
86,567.6
20.7
68,782.0
16.1
Nokia
83,162.5
19.8
107,556.1
25.1
Apple
33,120.5
7.9
16,883.2
3.9
Gartner, May 2012

11. Apple’s Devotee
When Apple launched iPhone 4S, there was a
wave of complaints from customers and critics
due to the battery life. As soon as possible, Apple
launched a software update to fix that problem.
But will this damage Apple’s reputation? Is there a growing uprising
against the Californian company? Are people ditching Apple to go
elsewhere? Is its Public Relation team panicking?
It would seem not.
Whenever Apple has problems with its products, its customers are
incredibly forgiving and patient. They understand that issues can
sometimes arise and they’ll continue to buy Apple products despite any
mistake they might make.

12. Apple’s Devotee

13. How Could It Be
Multiple factors created this amazing loyalty.
Someone says: - Brilliant design;
- Highly original products;
- Intuitive user experience;
- Creative marketing;
- And many more.
But we see one element that get mentioned less but was a key driver
of fanatical loyalty of many Apple owners:
Apple created an enemy: the PC and its users;
and built that enemy into much of its marketing.

14. How Could It Be
Social Psychologists, Henri Tajfel and John Turner were
developing the social identity theory. In short, the theory
states that yourself image is defined in part by the social group
or groups you consider yourself to be part of.
Tajfel & Turner’s experiments placed people into one or
another group using meaningless criteria. Despite the arbitrary
way the groups were created, as the experiment continued, the
members of each group became increasingly loyal to their
own group and discriminated against the members of
other group.

15. How Could It Be
Social Psychologists, Henri Tajfel and John Turner were
developing the social identity theory. In short, the theory
states that yourself image is defined in part by the social group
or groups you consider yourself to be part of.
Upstart brands occasionally do attack their competition, they
usually focus on product characteristics: performance, price,
ease of use, etc. Apple took a different path:
They attacked the PC users and drew a sharp distinction
between Mac users and everyone else.

16. How Could It Be
On August 12, 1981, IBM
introduced its US$ 1,565
Personal Computer.
―IBM wants to wipe us off the face of the earth.‖
―We’re not going to sell five million [Macs] a year
by being IBM-compatible. We’re going to do it by
making a second industry standard.‖
(Steve Jobs)
―It would be easy for us to come out with an IBM
look-alike product, and put the Apple logo on it,
and sell a lot of Apples. Our earnings per share
would go up and our stockholders would be
happy, but we think that would be wrong thing to
do‖.
(John Sculley)
―[PowerPC supporters] are smoking dope. There’s
no way it’s going to work‖.
(Robert W. Stearns)
―Putting Presentation Manager on an IBM is like
putting Bernaise on a hot dog.‖
(Alan Kay)

17. How Could It Be
Apple tried to stem the tide with the January
1983 introduction 1983 of the LISA. But is
had two flaws: its US$ 9,995 price tag was
too expensive; it wasn’t compatible with
anything else on the market (The IBM PC
and Microsoft’s MS-DOS had established a
standard to which clone manufacturers
flocked, but Apple resisted the temptation to
go with the flow.)
―Apple has always felt that its technology was better, if not the
best, and if it just waited long enough, the world would
recognize this fact and be willing to pay a premium to buy a
computer from Cupertino.‖
(Owen Linzmayer – Author of Apple Confidential : The Real Story of Apple Computer, Inc.)

18. 4P Approach
1. Products
Market Pull
Technology Push
Educate People

19. 4P Approach
1. Products
- Brilliant design:
Ergonomics, Put the detailed,
Simply, Elegant, Aesthetics

20. 4P Approach
1. Products
- Brilliant design:
Ergonomics, Put the detailed,
Simply, Elegant, Aesthetics
- Original Idea:
Unique, Has own standards

21. 4P Approach
1. Products
- Brilliant design:
Ergonomics, Put the detailed,
Simply, Elegant, Aesthetics
- Original Idea:
Unique, Has own standards
- Better Quality:
Added feature, Better durability,
reliability, and performance
Jobs told Raskins, ‘Don’t worry about the price,
just specify the computer’s abilities.”

22. 4P Approach
2. Place
As of July 2011, Apple has 364 retail stores in 38 countries as well
as the online Apple Store and iTunes Store.

23. 4P Approach
2. Place
- Create Enlightening Experiences
MacBook screen is tilted 70 degrees in a uniform manner. People
who visit the Apple Store might think this screen arrangement for
beauty reasons only.
This may be partly true, but the main reason is that visitors are
encouraged to customize the display in perspective, ideally, or
otherwise touching the computer. This is the entrance before the
user then tries the device.
Apple Store was not created for the purpose for people to buy the
device. Instead, the store is made to make the visitor experience
has the goods and the buyer has made ​loyalty to Apple.
(Carmin Gallo – Author some books related Apple Inc.)

24. 4P Approach
2. Place
- Create Enlightening Experiences
The Apple Store is much more than a store. We offer free
workshops for people of all experience levels — we even offer
youth programs like Apple Camp. And when you buy a new Mac,
you can sign up for One to One training and take your skills to the
next level.
(apple.com)

25. 4P Approach
3. Promotion
When Apple sought to define their users as different and better, they
called on the formidable skills of director Ridley Scott. He created
what most critics rank as one of the best ads of all time, the
iconic 1984 ad.
As time passed, presenting PC users as mindless drones became a
less viable strategy, since now most of the market had a computer
and insulting your potential customers would be risky. So, Apple
adopted a much softer approach with their ―Get a Mac‖ campaign
that ran from 2006 to 2009.

26. 4P Approach
4. Price

27. 4P Approach
4. Price
- Justify your price
Once more, Apple ignores the standard by not only pricing
their technology more than 2x what their competitors charge,
but doing so without blinking.
- No other computer can match the display of a 27”;
- No other software can match what iTunes brings to the table;
- No laptop is as thin as the Macbook Air;
- No software is more intuitive;
- No product more valuable than the Apple product
Any other smartphone looks like it was developed by rookies
when compared to an iPhone 5.

28. 4P Approach
4. Price
- Justify your price
- Don’t give a discount
If you give a discount to your
most loyal customers, you
might be doing something
wrong.
(inc.com)

29. Treatment on Customers
- Focus on creating service value
Apple’s Manual Book Training
gizmodo.com
Selling is a science, summed up with five
cute letters:
Approach customers with a
personalized, warm welcome;
Probe politely to understand the
customer’s needs;
Present a solution for the customer to
take home today;
Listen for and resolve any issues or
concerns;
End with a fond farewell and an invitation
to return.

30. Treatment on Customers
- Focus on creating service value
- Communicate in the language of the audience
Apple’s Manual Book Training
gizmodo.com
Take a look at any Apple product page
and it will be found that though they do
discuss product specifications and
technical information, it’s hidden behind
the benefits that their audience is truly
after.
Instead of display resolution, it will be
shown phrases like ―edge to edge
glass,‖ ―retina display,‖ and ―LED
backlighting.‖

31. Resume
If you want to make your brand part of your customer’s social identity,
you have to make your customers feel different than the people who
use a competing brand. The sharper the distinction (even if in real
terms it’s not all that meaningful), the more effective this strategy will
be. Apple’s approach was smart, as it built on pre-existing
stereotypes of Mac and PC users. Even though these stereotypes
may not have been accurate, their existence made Apple’s job easier.

32. Case Study in Indonesia (Extended)
Apple
Store
location
in
Indonesia, namely iBOX Apple
Store, a Premium Reseller of
Apple, is located in only two
places, i.e. in Jakarta (12 retailer
stores & 3 service providers)
and Bandung (1 retailer store &
1 service provider).

33. Case Study in Indonesia (Extended)
Low-Medium Class
High-Medium Class

34. Case Study in Indonesia (Extended)
Some Opinions
Expensive
Prestigious
1st Impression:
Awesome product design
Better performance
Long-lasting battery
Better ―security‖
Impressed by the iCloud system
The speed of gadget is awesome even while transferring data
Reason to Buy:
Hardly ever find problem for all Apple products,
Long-lasting battery
Cool Person buy Apple
Still overpriced when comparing ―the performance‖ vs. ―the price‖
Reason Not
to Buy:
Can’t be overclocked and modified easily
Jobs passed away, the soul of Apple also died

35. Become The “Name”
Become The “Name”
You don’t buy Tissue; You buy Kleenex;
You don’t buy Cola; You buy Coca-Cola;
You don’t buy Coffee; You buy Starbucks.
Then
You don’t buy MP3 Player; You buy iPod;
You don’t buy Smartphone; You buy iPhone;
You don’t buy Laptop; You buy Mac.