Company’s strategy deconstruction

2

“The company's mission is to provide a superior end-to-end music experience - with headphones, devices and services - so fans feel the emotion and hear the music the way artists intended it to sound from the studio”

vision

3

Headphones Earphones Speakers Technology

product line

4

Headphones Earphones Speakers Technology

product line

5 product line

professional

amateur

feminine masculine

*Heartbeats by lady gaga *powerbeats: made for athletes

6 product line

expensive

cheap

Significant to brand Identity

Trivial to brand Identity

*399$

*99.9$

*199$

7

They target the age groups of Tweens and Generation Y. Generation Y is all about what's new, trendy and value brand names. Tweens who don't have any income, still spend millions of dollars through allowances, earnings, and gifts. They are technology savvy and want the latest. The main criteria is that they want to be like Generation Y. Thus Beat by Dr. Dre targets these two age groups the same way, creating a marketing mix that appeals to both, understanding the needs and motives of the segment members.

target audience

Jimmy Lovine – CEO

8

Presenters

Phase 1: Brand Equity and Target Market Foothold

POS Statement Products

Phase 2: Supply Chain Renewal and New Market Penetration

New Market Supplier New Market New Market

strategy

9

Presenters

Phase 1: Brand Equity and Target Market Foothold

POS Statement Products

“The company's mission is to provide a superior end-to-end music experience - with headphones, devices and services - so fans feel the emotion and hear the music the way artists intended it to sound from the studio”

strategy

10

Presenters

Phase 1: Brand Equity and Target Market Foothold

POS Statement Products

strategy

Large variety of products emphasize design and quality

Design: Colorful, fresh looking, trendy

Quality: Contract with the highly valued brand Monster Cables

11

Presenters

Phase 1: Brand Equity and Target Market Foothold

POS Statement Products

strategy

Dr. Dre Lil’ Wyne David Guetta Justin Bieber Lebron James Lady Gaga P. Diddy

Different artist and athletes (most of them are musicians at the ARM record company) serve as presenters and promoters of the brands’ products

12

Presenters

Phase 1: Brand Equity and Target Market Foothold

POS Statement Products

strategy

Beats products are sold at the company’s website and at apple’s and best buy’s branches. Both are considered to

be qualitative and reliable.

13

Phase 2: Supply Chain Renewal and New Market Penetration

New Market Supplier New Market New Market

2010: Partnership between Beats Inc. and HP, according to which, beats will develop audio systems

for hp’s computers

strategy

14

Phase 2: Supply Chain Renewal and New Market Penetration

New Market Supplier New Market New Market

2011: HTC acquires 51% of beats’ shares and what gives Beats a toehold in the mobile phone market

strategy

15

Phase 2: Supply Chain Renewal and New Market Penetration

New Market Supplier New Market New Market

2011: Partnering with the Chrysler company, gives Beats a toehold in the automobile market

strategy

16

Phase 2: Supply Chain Renewal and New Market Penetration

New Market Supplier New Market New Market

End of exclusivity agreement with monster cable Inc. During a long partnership, Beats has established a

reputable brand, and now can switch to a cheaper supplier

strategy

17

Phase 2: Supply Chain Renewal and New Market Penetration

Creating platform for music

strategy

2012: Beats announces acquisition of MOG, a media streaming service

"With MOG, we are adding the best music service to the Beats portfolio for the first truly end-to-end music experience. With their talent and technology, the

possibilities around future innovation are endless” (Luke Wood, president and COO of beats)

18 markets

UK FRANCE IRLAND

EUROPE

UNITED STATES CANADA

NORTH AMERICA

ARGENTINA BRAZIL CARIBBEAN CHILE COLOMBIA COSTA RICA ECUADOR EL SALVADOR GUATEMALA HONDURAS MEXICO NICARAGUA PANAMA PARAGUAY PERU URUGUAY VENEZUELA

LATIN AMERICA

Authorized Retailers Countries

Company’s Main Markets

19

Retails E Commerce Product

Integration

markets

Company’s Distribution Channels

20

Retails E Commerce

Beats’ products are sold in Apple’s stores. (one of the few products that are not manufactured by Apple and still sold in their stores)

Beats products are sold in retail stores for the professional and the amateur audio market

Product Integration

markets

Company’s Distribution Channels

21

Retails E Commerce

Selling via large ecommerce websites such as amazon and ebay

Direct purchase via the company’s website

Product Integration

markets

Company’s Distribution Channels

22

Product Integration

Retails E Commerce

Integration of Beats’ products into partner company’s products (HP, HTC, Chrysler)

markets

Company’s Distribution Channels

23 SWOT

S T W

O

• Dr. Dre is a well known, reliable brand

• Continuous advertisement and presence in music

video clips and commercials

• High positioning

• Cooperation with Monster cables for better

product quality and existing distribution channels

• High price range (99-400 $)

• Small product line

• Negative critics concerning audio quality

• Weak presence at the social networks

• Mobile, Pc and automobile markets

• Upcoming artists and music video clips for

advertising the company’s products

• Expanding the company’s product line

• New design and style collections

• Personally customized products

• Creating an all around music experience by

acquiring MOG

• The financial crisis

• Competition by new brands presented by artists

such as Ludacris and 50 Cent

• Ex-partner, Monster cable, is launching her own

product line with a mature image (Miles Davis

earphones)

• Counterfeits and imitations

24 organizational structure

CO-FOUNDER & CEO

JIMMY LOVINE

CO-FOUNDER DR.DRE

PRESIDENT & COO LUKE WOOD

VP OPERATIONS

VP HUMAN RESOURCES

VP OPERATIONS

VP QUALITY VP SPECIAL PROJECTS

DIRECTOR- SUPPLY CHAIN,

SUPPORT AND RETAIL

OPERATIONS

BRAND MANAGER

SPORT MARKETING

SENIOR RECRUITER

SALES OPERATIONS

GLOBAL OPERATIONS

CORPORATE DEVELOPMENT

HEAD OF CONTENT

SQA MANAGER

SOCIAL MEDIA MANAGER

OPERATIONS COORDINATOR

DIRECTOR, NEW PRODUCTS INTRODUTIONS & LOUNCH

MANAGMENT

TREASURY & RISK MANAGMENT

VP MIS VP

MARKETING

VP FINANCE & ANALYSIS

MANAGER STRATEGY & BUSINESS DEVELOPMENT

Linkedin.com

25

en.wikipedia.org/wiki/Beats_Electronics#Products beatsbydre.com/ beatselectronics.com/ youtube.com/watch?v=aXsI7DqgHyM

monstercable2011.blogspot.co.il/ cct322beats.wikispaces.com/Marketing+Environments billboard.com/news/beats-by-dre-the-secrets-behind-a-headphone -1004128122.story Beats Electronics Is Breaking Up with Monster, Bloomberg Business Week 12/1/2012 Linkedin.com cnet.com techcrunch.com Mog.com

sources