Beats耳机分析报告

ReportforBeats

LouShiyu

History

Intheworldofheadphonesandspeakers,BeatsbyDr.Drearewell-known,eventhoughthecompanyisrelativelyyoung.TheideaofthecompanycamefromthecollaborationbetweenAndreYoungandJimmyIovine.AndreYoung,betterknownasDr.Dre,isahip-hopartistandfamousproducer.JimmyIovineisalsoaproducerandthechairmanofInterscopeGeffenA&MRecords.Dr.DrewasapproachedtobackDr.Drebrandedsneakers,butIovinesuggestedspeakersinstead.Bothmenwantedtobringbacktheexperiencethatmusichastoofferwhichhadbeenlostduetoadeclineofaudioquality.Thecompanywasestablishedin,anditreleaseditsfirstpairofheadphonesin.Today,Beatsoffersavarietyofsoundsystems,high-qualityheadphones,andoperatesadigitalmusicservice.Beatsheadphonesincludemodelssuchas,Pro,Studio,Wireless,Mxr,Solo(HD),andExecutive.Forearphones,BeatsoffersTour,Powerbeats,Heartbeats,andUrbeats.ThetypesofspeakersofferedbyBeatsincludethePill,theBeatbox,andtheBeatboxPortable.

BeatsbyDrehasonestorefrontlocatedinNewYork,NewYork,whichwasopenedin.Eventhoughthisisthecompany’sonlystore,Beatsproductsaresoldbynumberofotherretailerwhetherintheirstoresorontheironlinesites.SomeofthesestoresincludeBestBuy,Target,Nordstrom,Brookstone,andWalmart.Inordertopromoteitsproducts,BeatsbyDrehasusedseveralcelebrities,mainlypopularartists.MusicianssuchasNickiMinaj,Will.i.am,LadyGaga,andJustinBieberallhavepromotedthebrand.Famousathletes,likeLebronJames,alsopromoteBeatsproducts.ThesetypesofendorsementshelpcreatethestrongbrandimagethatBeatsbyDrepossesses.

MissionStatement

“Thecompany'smissionistoprovideasuperiorend-to-endmusicexperience-withheadphones,devicesandservices-sofansfeeltheemotionandhearthemusicthewayartistsintendedittosoundfromthestudio.”

BeatsbyDreisawell-knowncompanyprovidingcustomersavarietyofheadphones,earphones,andsoundsystems.Beatspromotestheideaofmusicbeinganexperiencewiththeproperaudioequipment.Thecompanysellsitsproductsatonestorefront,online,andthroughotherauthorizedretailers.

Inthefuture,Beatshopestokeepitsstrongbrandimage.Beatswantsitscustomerstocontinueassociatingthecompanywithhigh-qualityproducts.Throughthedevelopmentofnewproducts,BeatsbyDrecouldalsoreachouttodifferenttargetaudiencesinthefuture.

BeatsbyDre’smaincustomersaremusiclovers.Thisgroupconsistsofpeoplewhoenjoylisteningwithhigh-qualityaudio,aspiringartistsandproducers,andpeopleinthemusicbusiness.Beatscustomerspayhigherpricesthanothers,buttheyfeelthatowningaBeatsproductsetsthemapartandshowstheirappreciationformusic.

Intermsofcapabilities,BeatsbyDrecanexpanditsreachbyopeningmoreretailstores.Whiletheproductsaresoldinotherauthorizedretailers,Beatsstorefrontscanexpressthecompany’sbrandimagemoreclearlythantheotherretailers.

Tofurtherthebusiness,BeatsbyDrewantstoincorporatetwonewideas.Thefirstideaconsistsofarentalserviceforairplaneflights.ThesecondideaofferscustomerstheoptiontopersonalizetheirBeatsproducts.

SWOTAnalysis

Strengths

Brandname:Namedafterthesuccessfulandfamous,musicproducer,Dr.Dre.TheuseofDr.Dre’snamehelpscreateabrandimageforthecustomerthatsuggestsBeatsproductsarethebestforthoseproducingmusic.

Productquality:BeatsbyDr.Dreismanufacturedbythewell-knownbrandcalledMonster.Monster’scableandtechnologieshasbeenproventotheconsumers,thus,BeatsbyDr.Drewillberecognizingasahighperformanceandqualityheadphone.Thedesignisinnovativeandfashionable.

Productline:Beatsproductlineincludesheadphones,earphones,speakersandaudioswithvariousmodelsandcolorstochoosefrom.

Multipledistributionchannels:Beatsdistributionchannelsincludeonlineshopping,aretailstore,andmerchandisestoressuchasBestBuy.

Productplacement:TheBeatsbyDr.Dreheadphonesetsaremarketedthroughoutthemusicindustrybymusicprofessionalsandwell-knownmusicians.Also,Beatsistrustedbymusicproducersandfashiondesigners.BeatsproductshavebeenusedinseveralmusicvideosforartistslikeLadyGaga.

Theproductsarealsolovedbycelebrities:

Weaknesses

Price:Thebrandpositioningistowardshigh-end,thustheaveragepriceforasetofheadphoneisabout$150,comparetootherbrandwhichtheiraveragepricewillbearound$80.Astheresult,thecostsfortheconsumerswillinevitablybehigh.

Marketshare:ForcompetitivebrandsuchasSonyandPanasonic,theyhavedifferenttypesofproductfordifferentmarket.Forexample,theyhavenoisecancelingheadphonessimilarwithBestsbyDr.Dreretailingpricefrom$100-300,however,theyalsohaveordinaryheadphonesstartfrom$15-100.Beatscurrentlydon’thaveheadphonesunder$100thatmayappealtoindividualsthatareonabudget.

Opportunities

Productlineextension:Beatsneedtoextendtoalargermarketlikehometheatreexperienceandhigh-endaudiostomeetcustomer’sneeds.SimilarlywiththecontinuousprogressionoftheApple’siPods,Beatsshouldlooktocreatenewproductsinordertoofferitscustomersdifferentandneweroptions.

CorporationwithCarCompany:Byprovidingcarswithhighperformanceaudiosystems,Beatscanreachouttoalargermarket.

MarketingandPR:BeatscanimprovetheirPRskillsbyhostingeveningpartieswithcelebritiestoimprovebrandawareness.Beatscanalsodomoremarketingcampaignstostrengthenthebrandimpact.

Expandinternationalmarket:WiththeinfluenceofHip-PopmusicandAmericancelebrities,Bestsismoreandmorewell-knownoutofUnitesStates.ThisisagreatopportunityforBeatstostartpromotingoutsidetheUnitedStatesandgainmarketsharefromforeigncountries.

Threats

Technologyadvancement:Withtheconstantdevelopmentoftechnology,BeatsbyDremaybethreatened.IfthereisanewtypeoftechnologythatothermanufactureshaveandBeatsdonothave,itwillbeahugeproblemforthem.

Competition:ThereareseveralothercompaniesthatmakesimilarproductstoBeats.SomecompaniesincludeSonyandSenheisser.ManyofthesecompetitorshavelowerpricesthanBeatsbyDre,whichcausesfurtherproblems.Beatswillalwayshavetocompetewithothercompanieswiththeirsimilarproductsandlowersprices.

PRwithcelebrities:Beatsusesseveralcelebritiesandartiststopromoteitsbrand.Ifanyoftheseindividualsgainbadpublicity,itmayreflectpoorlyonthecompany.Ifthecelebrityhasanegativeimagewithinthemedia,customersmaythinkthatBeatsbyDreacceptsthebadbehaviorportrayedbytheindividual.Thiswouldaffectthecompany’simageandpossiblysales.

1stIdea

SpecificItem

Beatsbrandhaslimitedstylesofheadphones.Therearetwocategories:earphonesandheadphones,simplymeansin-earphonesandon-earphones.Therearefourdifferentkindsofphonesundertheearphonecategoryandsixdifferentkindsofphonesundertheheadphonecategory.Alltheearphonesdonotrequirebatteryandsomeoftheheadphonesdorequirebattery.Thephonesthatwillbeavailabletorentontheairplanewillnotbethosethatrequirebattery.Afterconsideringthecharacteristicsofalltheearphonesandheadphones,thecompanyshouldprovideonekindofphonefromeachcategorytoservetherentalmarket.Wedonotwanttoprovidemorechoicestothecustomersbecause:1.Ittakestimetointroducethecharacteristicsofeveryphone2.Itjustmakesithardforcustomerstomakeachoicewithsomanyoptions.Itmakesitsimplertochoosejustbetweeneitherearphonesorheadphones.Undertheearphonecategorywewillprovideourcustomerswith“urBeats.”Themaincharacteristicofthisearphoneisitsdurability.Thesoundsareguaranteedunderourbrands,sotosavecostforbothcustomersandourcompanyurBeatsisthebestchoice.Thisearphoneisdescribedas“Grid-IronTouch”onourofficialwebsiteanditofferscustomersarelativelycheapprice.Undertheheadphonecategorywewillprovideourcustomers“Executive”.BeatsExecutiveismadefortravel.Theheadphonesprovidecustomerswithverygoodsoundqualityanditislightweightandcomfortabletowear.Italsohelpstoreducethejetenginenoise.

Pricing

Therentalpricewillbebasedontheproductsoriginalprices,andalsowillbebasedonflighthours(orinotherwords,howlongwillyouusetheheadphonesorearphones).TheretailpriceforurBeatsis$99.95andforBeatExecutivethepriceis$299.95.Therentalpriceofeachphonewillbelessthan10%oftheoriginalpricetomakesurecustomersthinkitisworthittorent.Thepricethatwillbechargediftheflightdurationisaround6hours(halfhourisallowed)is$4.95fortheurBeatsand$8.95forBeatsExecutive.Iftheflightdurationis6.5hourswewillstillchargethesamepriceasthe6hourflights.Iftheflightdurationismorethan6butlessthan14hours(farinternationalflights)therentalpriceofurBeatsis$9.95andBeatsExecutiveis$17.95.Wewillfollowthe95centsstrategyfortherentalmarkettomakethepricelooklessbutstillwith95centsprofits.

Advertising

Toadvertiseandintroducethenewrentaloptionforflightstocustomers,wewillpostadvertisementsontheofficialBeatswebsite.PamphletswillalsobeavailablewithinthestoreswhereBeatsaresold(eg:BestBuy).Theseoutletswillhelpintroducethenewrentalpolicy“whenyouareflyingwithaplane.”Alsotherewillbeadvertisingthroughmedialiketelevision.Theadmayincludealinesuchas“phonesrentalisavailable,checkitoutnow!”attheendofthetelevisioncommercialtogivecustomersanimpactthat“Beatswillrenttheirphones?”Thiswillhelpattractcustomersandencouragethemtogetfurtherinformationabouttheflightrentalmarket.Bycontactingairportadvertisingdepartments,adscanalsobeplacedwithintheairportsonplasmascreens.Shuttlebuseswillalsobeusedbyplacingadvertisementsontheoutsideoftheshuttletointroducethenewservicetopotentialcustomers.

StoreDesign

Therentalservicewillbeavailablethroughdifferentairlines.Firstwewillcollaboratewithairplanecompaniesratherthanhaveourownstoreatairport.Itisveryexpensiveifweneedtoreachourtargetmarket.Thecostofrentingstoresatdifferentairportswillbesoexpensiveandwillonlyreachalimitednumberofcustomers.Someairportshavemanyterminals.Assumetherentalstoreislocatedatterminal3ofanairportandacustomerisbyterminal1.Althoughhe/sheknowsthatBeatshasarentalserviceatterminal3,he/shemostlikelywillnotgoallthewaytoterminal3justforarentalphone.However,byindentifyingthemajorairportswithintheUnitedStatesthroughresearch,theservicecanalsobeprovidedwithinexistingairportstores.Thisthenallowscustomerstogettheproductsfromboththeairportstoresandontheplanes.Onepurposeoftheairportstoresistoprovidecustomersawaytotrytheproductsandgettheirfeedback.Anotherpurposeistoadvertiseourband.Byworkingwithairplanecompaniesandmakingdealswiththem,theplaneattendantscanhelpreachthecustomersandprovideourproductstothem.

VisualMerchandising

Asmentionedabove,theservicewillonlyhavetwoproductsavailableforcustomerstorentduringtheirflights.Inordertopresenttheproducts,pamphletswillbeprintedoutandplacedinthebackoftheseatsonplaneforcustomers.Thesepamphletswillintroducetheproductstothecustomersandhelpthemdecidewhethertheywanttorentearphonesorheadphones.APOSmachinewillbeneededduringthisprocess.Boththeearphonesandtheheadphoneswillhavenumbersonthemtoidentifywithoneandanother.Customerswillneedtousecreditcardfortherentalserviceofeitherkindofphones;cashwillnotbeaccepted.Whencustomersusetheircreditcardtorenttheearphones,attendantsmayneedanotherdevicelikealaptoporasimilarsystemtorecordthelast4digitsofthecardswiththenumberontheheadphonetogether.Thiswillmakeiteasierwhencustomersreturntheearphonestotheattendantsaftertheyhavearrivedattheirdestinationbecausewewillstillbeabletocheckifthereareanydamagestoearphonesorlossoftheearphones.Iftheearphonesarelost,thenwewillchargetheoriginalpriceofthelostearphonesonBeatswebsitefromthecreditcard,whichwasrecordedtogetherwiththeearphone’snumber.Ifthereisadamagewewillcheckthedamageandchargeswillbedependsonthedamages.Beatswillmakesuretoprovidecustomersgoodqualityearphones(cleanandnodamage)onflights.Therewillbeextraorback-upearphonesoneachairplanetomakesurethequalityoftheearphonesiskeptuptostandardsforeachcustomer.

2ndIdea

BeatsbyDreisanewserviceinthemarkettargetedatmusicloversandtheinnovative.TheBeatsrangeofheadphonesisattributedtoitshighqualitysound.Designedbyoneofthebestmusicproducers(DrDre),theseheadphonesareintendedtoallowuserstoenjoymusicasitwasintended.Thefactthattheseheadphonesreceivetheendorsementofcelebritiesputsthemonhighdemand.

AccordingtoVaishali,aretailmixisamethodofcombiningdifferentretailvariablesinanalternativetoachieveahighmarketingstrategy.Theaimofthisstrategyistoattractmorecustomers.Suchvariablesincludeaspectssuchasspecificitems,pricing,advertising,storedesignandvisualmerchandising.

AcomprehensiveSWOTanalysisoftheheadphonesrevealscertainaspectsthatareimportanttothedevelopmentofthisretailmix.Theheadphoneshaveareputation.Thisreputationrevolvesaroundthepuresoundqualitythattheheadphonesproduceandpopularityamongyoungpeopleespeciallycollegestudentsandworkplacenewbiesandcelebrities.Thisbuildsstrongsenseoftrustforcustomers.However,thepriceoftheheadphonesisquiteprohibitivetomostindividuals.

Onenewservicewearegoingtoofferispersonalization.Personalizationistheprocessofaddingwords,numbers,colors,designsandothercharactersontoexistingmodelsofelectronicproductsofBeatsthroughengraving,embroidery,differentwaysofassemblyorotherpersonalizationtechniques.Thisallowscustomerstocreateexclusivelydesignedheadphonesorspeakerswithnames,dates,poems,sentimentsoranyothermessagetomakeituniqueandmemorable.ThecustomizationservicewouldmakeBeatsproductsmeaningfulasgiftswhencustomershaveneedstosendgiftstoothers.

SpecificItem

Basically,werecommendforBeatstoprovidetwospecificpersonalizedservices,whicharechangingcolorsandengraving.WhencustomersbrowsetheofficialwebsiteofBeats,anaddedsectioncalled“personalization”willappearonthesitetointroducefeaturesandpricingofthisnewserviceanddirectcustomerstoonlineshopping.

Oneheadphonehasseparatepartsbeingassembledtogether.However,forexistingheadphonesofBeats,everyheadphonebodyispaintedwithonecolorandcustomerscanonlyselectonecolorforoneheadphone.Whatevertheunpopularcoloryouchoose,youareabletofindtheexactlysameproductthatothersareusing.Forthosewhoarenotnecessarilyprofessionaltowardsmusicbutproudoftheirsenseoftaste,theyhaveastrongpersonalityandthedesireforspeciallydesignedproductforthemselves.BeatsislikelytoloseattentionfromthemduetothelackofcustomizationserviceandthewidespreadpopularityamongthepublicthatmakesBeatscommon.Bycustomizingheadphonesonline,peopleareabletocreatetheirownheadphoneswithvariouscolorsforeachpartoftheproductandthelogoontheheadphoneaswell.Moreover,peopleareabletoselectthecolorofthecablesthatcomewiththeheadphones.Thereareeightbasiccolorsavailableatpresent,whichareblack,red,white,darkblue,lightblue,green,purpleandpink.Beatscanoffermorecolorsifthepersonalizationreachesexpectationandmakesprofits.Afterdesigningacolorfulheadphone,customersaredirectedtothefinalsteptotypewhatevertheywanttobeengravedontheheadphones.Beatswillengravewordsonthebodybylaser,whichispermanent.Inordertoachievemoreflexiblecustomization,threepositionscanbeselectedfromtodisplaytheengraving,whicharetheleftside,rightside,andthetopoftheframeoftheheadphone.

Beatsalsosellsspeakersandearphones.Consideringthatspeakershavelowerdemandthanheadphonesandearphonesaretootinytoholddifferentcolorsandwordsononebody,wewillfirstimplementthecustomizationserviceforheadphonesonly.Thenaftersometimewewillevaluatefeedbacktodecideonlateractions.

Pricing

Personalizedheadphoneswouldbepricedhigherthanexistingmodelsthatareavailableonlineandin-store.Thisisaresultofcomplextechnologyforpaintingdifferentcolors.Additionallaserengravingtechnologyandintensivelaboreffortofhandlingthetaskandassemblingisalsoneeded.Ontheotherside,themainaimofabusinessistosellitsproduct.SincethetargetmarketofBeatsaremusicloversfrom18to34yearsold,primarilymales,whoareurban,hipandtech-savvy,highpricesarelikelytopreventthemfrompurchasingBeatsanddirectthemtoBeats’competitors.Thefinalpriceisbasedonhowmanycolorsthecustomerisselectingfortheheadphone.Ifthecustomerpicksalightblueheadphoneandonlychangesthebluelogotored,thesalespricewouldbelowerthanchangingthelogo’scolortoredaswellaschangingthecolorofthesurfaceontheleftsidetoblack.Thepricingrangeisbetween10%to15%moredependsonmodelsofheadphonesandtheiroriginalprices.

TheengravingfeatureisfreesinceitisalreadyanadvantagecomparedtocompetitorsofBeats.Hopefullythiswillattractaclusterofcustomersawayfromitscompetitors.TheengravingmakesBeatsheadphonesauniqueanddesirablegiftforoneself,forfriends,andforfamilymembers.Forthepurposeofappealingtomorecustomers,theengravingserviceisfreeatthebeginningandthenwaitsformarketresponse.Ifitattractsenoughcustomersandincreasessalesfiguresbylargeamounts,Beatscanpricetheserviceforseveraldollarstomakemoreprofits.

Advertising

Beatsseldomrunstelevisioncommercials,somagazinesthatfeaturemusicandthefashionindustrywouldbeselectedasthemediaforBeatstoadvertiseitsnewservices.Forexample,NylonGuys,GQ,Men’sVogue,VibeandBillboardaregoodchoicestodisplayBeatsadvertisement.Specificsampleswithdifferentcolorsandengravedwordsareneededtobeshowedinprintadstoexhibitthesenseoftrendandinnovation.Theengravedwordsaredesignedtobemoving,inspiringorcreativetoimpressandpersuadereaders.

OutdooradvertisingistheothermajormediatoolBeatsshoulduse.Effectivechannelstopromoteanewserviceforthecompanyofelectronicswouldbedigitalbillboards,busadvertising,andstreetfurniture,whichcanreachthepubliceasilyandarerelativelylong-lastingcomparedtootheroutdoorchannels.

StoreDesign

Aplacedesignedforthepersonalizationservicewillbeplanned,ofwhichtheareaisbasedonsizeofthestore,withinBeats’existingstores.Uponthis,thestoreshouldbesituatedwhereitstargetedclientshavenoproblemventuring.Aninteractivetelevisionscreenonthewallwillplayanintroductionofhowtopersonalizetheheadphonesandproducesamplesofthecustomizedproducts.Twoormorehelpfulsalespersonsaretheretopromotethenewservice.Theretailmixhastoensurethatithasenoughstafftorunthestoreandtointeractwithclients.Clientsarefundamentalinfacilitatingthesuccessofthebusiness.Cateringtotheirneedsguaranteesthesurvivalofthebusinessinthevolatileenvironment.Also,varioustypesofpersonalizedmodelswillbeexhibitedinthearea,andcustomerscanmakeapurchaseiftheydon'twanttospendtimedesigningbythemselves.Inthiscase,thesepersonalizedheadphonesaresoldasordinaryheadphonesbutwithhigherretailingprices.Drawinginnewcustomersisfundamentaltothesuccessofthebusiness.Postersfeaturingcustomizationserviceswillbeshowninthedoor-wayofthestoretocatchattentionofpassingpeople.

VisualMerchandising

Successfulvisualmerchandisinghastheabilitytomaximizesales.Varioussamplesof

headphoneswithdistinctivedesignedstyleswillbedisplayedintheshowwindowtoattract

attentionandengagepassingpeople.Ontheoppositesideofthedoorway,amagnifiedmodelishungfromtheceilingbyastringsothatitcanrotatearoundtoshowtheproductin3-Dimensionaldegrees.Itiscreativeandeye-catchingtomotivatepeopletowalkinandincreasesthepossibilityofthemmakingapurchase.

Inthepersonalizationarea,picturesofpeople’supperbodyareshownonthewall,which

indicatesthattheyareenjoyingthemusicandcustomizedheadphonesarehungonthepositionoftheirears,whichmakesitlookliketheyarewearingheadphones.Customerscanfreelytaketheheadphonesdownandtrythemwithmediaplayers.

Effectivemarketingforthestorewillseeitssalesincreaseandthestoreachievingitsobjectives.Asiswithanybusinessorganization,themainobjectiveistomakeprofits.Itcanachievethisthroughdifferentmarketingstrategiesamongthemdirectmarketingwhichinvolvesdirectlyreachingouttocustomers.Retailmixingisaprofitableopportunitythatallowstheobservationofdifferentcustomersandanalyzingittomaximizeonprofitsbyofferi