Now that we have a global vision of the different brands on the headphone market, let’s go further into the Beats strategy!
Beats by Dr. Dre is a recent brand as it was created six years ago, by the US rapper Dr. Dre and Jimmy Lovine, who was leading the record label Interscope Geffen A&M. And here is the reason why they decided to launch new products on the market:
"People aren't hearing all the music. Artists and producers work hard in the studio perfecting their sound. But people can't really hear it with normal headphones. Most headphones can't handle the bass, the detail, the dynamics. Bottom line, the music doesn't move you. With Beats, people are going to hear what the artists hear, and listen to the music the way they should: the way I do." - Dr. Dre
Since then, the brand succeeded in becoming the leader on this market, with a market share of 50%.
But how do their success come from?
First, the product itself is at the heart of the success of Beats strategy. Indeed, the brand created a new need for sound quality by claiming that the Beats headphones will allow people to hear music the way they should. In this way, they completely differentiated themselves from their competitors with an innovative USP: offering to the consumers a product used by professionals, and in particular the rapper Dr. Dre.
Besides, as we already explained in previous articles, the design of Beats headphones is the second main characteristics of this product. Consumers are not just buying a headphone but also a fashion accessory. To do so, the brand has developed colorful headphones, limited editions …and again, has succeeded in delivering a different offer in the market and in touching its target consumers: young people that are mainly listening hip hop music!
The following video is the perfect illustration of what the brand wants to highlight and who is its target.
The price is also part of the brand strategy. The average price of Beats headphones is around 350€, which places the brand as a premium one. This pricing strategy goes hand in hand with the main claim of the product: high sound quality, and reinforces it. Indeed, the consumer will be more confident to buy an expensive product that claims to offer an incredible sound quality.
Furthermore, the pricing strategy is also related to the fashion side of the Beats headphone. The latter can be seen not only as a fashion but also a luxury product.
What about Beats distribution strategy? The brand distributes its products through different types of channels, which makes the access quite easy. Headphones can be directly purchased on the own website of the company, but also on multimedia retailers stores & websites such as Fnac or Boulanger for instance. This online distribution strategy is clearly adapted to their key target: teenagers and young adults. You can also find Beats headphones in Apple stores, as the brand has recently been purchased by the company. Finally, Beats has opened its flagship store in New York City, which not only aims at selling the products but mainly offering an experience area for the consumers. In fact, this store is a way to gather Beats fans and reinforce a consumer community.
But what about Beats’ communication strategy to attract people and make its customers loyal to the brand?
We’ll see that in the next article ;)
Anaïs
Sources :
http://fr.wikipedia.org/wiki/Beats_Electronics
http://fr.beatsbydre.com/
http://fr.slideshare.net/WilliamBelle/beats-by-dr-dre-2012
Beats by Dr. Dre is a recent brand as it was created six years ago, by the US rapper Dr. Dre and Jimmy Lovine, who was leading the record label Interscope Geffen A&M. And here is the reason why they decided to launch new products on the market:
"People aren't hearing all the music. Artists and producers work hard in the studio perfecting their sound. But people can't really hear it with normal headphones. Most headphones can't handle the bass, the detail, the dynamics. Bottom line, the music doesn't move you. With Beats, people are going to hear what the artists hear, and listen to the music the way they should: the way I do." - Dr. Dre
Since then, the brand succeeded in becoming the leader on this market, with a market share of 50%.
But how do their success come from?
First, the product itself is at the heart of the success of Beats strategy. Indeed, the brand created a new need for sound quality by claiming that the Beats headphones will allow people to hear music the way they should. In this way, they completely differentiated themselves from their competitors with an innovative USP: offering to the consumers a product used by professionals, and in particular the rapper Dr. Dre.
Besides, as we already explained in previous articles, the design of Beats headphones is the second main characteristics of this product. Consumers are not just buying a headphone but also a fashion accessory. To do so, the brand has developed colorful headphones, limited editions …and again, has succeeded in delivering a different offer in the market and in touching its target consumers: young people that are mainly listening hip hop music!
The following video is the perfect illustration of what the brand wants to highlight and who is its target.
The price is also part of the brand strategy. The average price of Beats headphones is around 350€, which places the brand as a premium one. This pricing strategy goes hand in hand with the main claim of the product: high sound quality, and reinforces it. Indeed, the consumer will be more confident to buy an expensive product that claims to offer an incredible sound quality.
Furthermore, the pricing strategy is also related to the fashion side of the Beats headphone. The latter can be seen not only as a fashion but also a luxury product.
What about Beats distribution strategy? The brand distributes its products through different types of channels, which makes the access quite easy. Headphones can be directly purchased on the own website of the company, but also on multimedia retailers stores & websites such as Fnac or Boulanger for instance. This online distribution strategy is clearly adapted to their key target: teenagers and young adults. You can also find Beats headphones in Apple stores, as the brand has recently been purchased by the company. Finally, Beats has opened its flagship store in New York City, which not only aims at selling the products but mainly offering an experience area for the consumers. In fact, this store is a way to gather Beats fans and reinforce a consumer community.
 |
| Beats Store, NYC |
But what about Beats’ communication strategy to attract people and make its customers loyal to the brand?
We’ll see that in the next article ;)
Anaïs
Sources :
http://fr.wikipedia.org/wiki/Beats_Electronics
http://fr.beatsbydre.com/
http://fr.slideshare.net/WilliamBelle/beats-by-dr-dre-2012
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