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
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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.
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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
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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
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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
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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
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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
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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
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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