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Ipsos
�������filesBose® Bluetooth® Headset
Predicting the Business Impact of Marketing DecisionsJanuary 2011
For More Information, Contact:Randy Giusto
Direct: 508.254.7975Main: 925-820-7350
Will TomlinsonDirect: 425.586.5554 Main: 925-820-7350
Performance SummaryBose launched its first single-ear Bluetooth headset, the Bose BluetoothHeadset, in November 2010. According to Bose, the new headset has aunique design and interface that makes call control "easier than ever before.“Touting its engineering, the company says, "The Bose Bluetooth headset isengineered with a microphone built into specially designed housing. Thisproprietary design enables the microphone to selectively sense the user'svoice, and acoustically reject background sounds that interfere with it -- so thecaller is heard more, and distractions are heard less.”
While the product offers several features positioned as exclusive to Bose, thisresearch indicates that in general, consumers do not see anything particularlyunique to the new headset. That being said, there is a specific group ofconsumers interested in the headset (urban, young, males), indicating that theproduct could be a hidden winner longer term as they will generate buzz aboutthe product.
Concept Tested
© 2011 Ipsos Vantis Files 2
Source: Bose.com
Key Findings
Market Potential
� The Bose Bluetooth Headset has a low Market Success Score. This indicates that the Bluetooth Headset is not likely to have broad market appeal initially. The normative comparison is “niche/targeted” with the potential of being a “hidden winner.” Average to below average Key Measure Scores indicate that consumers don’t see the Bluetooth Headset as a product that is different from other headsets on the market. However, above average top box purchase intent scores do suggest that the product does appeal to a specific group of consumers. The challenge will be clearly defining and targeting that group.
KeyMarket
Segments
� Likely buyers of the Bose Bluetooth Headset tend to be urban, young (18 to 34 years old) males. They also have more disposable income.
� Likely buyers also spend more time online than average and are heavily involved in social networking and blogging. Brand is important to them, they prefer to shop online vs. retail, and own technologically advanced devices such as the iPhone, notebooks and tablets and they depend on blogs, social networks and company websites as sources of information.
� Above average Message and Buzz Power Scores indicate that
© 2011 Ipsos Vantis Files 3
CommunicationsOverview
� Above average Message and Buzz Power Scores indicate that consumers will respond positively to well executed marketing efforts and will encourage their friends and family to purchase the Bose Bluetooth Headset.
� The Top 5 analysis indentifies those phrases that had the greatest impact on purchase interest. Noise control, automated headset volume control, long talk time, its promise of doing “what others can't: It lets you hear” and technology that helps users to hear their calls better are the key product benefits that drive purchase interest.
CriticalSuccessFactors
� The Bluetooth Headset will compete with virtually all other headsets in the marketplace, good and bad. To be successful long term, Bose must convince consumers that the Bluetooth Headset is not just another headset that will fail to live up to its unique promises. Bose should focus efforts on communicating the Bose Bluetooth’s key benefits and unique technology with consumers who are most likely to purchase it so that they can virally spread its message to other potential buyers. These consumers will help create the buzz that will separate the Bose Bluetooth Headset apart from the competition.
Vantis Files Scores ExplainedMarket Success ScoreThe Market Success Score (MSS) is a calculation of the probability of success in market. MSSrelies on Vantis’ forecasting background; specifically its ability to convert survey claims to trueestimates of demand. A high MSS indicates mass potential in the market. Concepts in the top thirdon this measure have a 70% success rate when launched. A MSS in the middle requires moreanalysis. We look for hidden winners in this section – niche or targeted products and breakthroughs(see Key Measure Scorecard below for more information). Most concepts with a low MSS are notready for advancing without some improvement, typically in the messaging.
Key Measure ScorecardIpsos Vantis owns the world’s largest database of new concept scores in technology, durablegoods, health, and services sectors. Key survey measures for a concept are compared to surveynorms for a relevant subset of new products from the Vantis Database. The pattern of the scoresacross the scorecard is as important as the overall strength of the scores. There are two dozen newproduct archetypes – patterns of survey scores -- into which every new product can be classified.Some of the biggest opportunities often go missed because they have lower purchase intent, andreside in the middle of the pack. The key measure scorecard will find the obvious winners, and willdistinguish between truly Average ideas that should not be pursued and Breakthrough or Nicheideas with enormous potential.
Key Consumer SegmentsVantis Files utilize the standardized Vantis Express survey that includes demographics, shopping
© 2011 Ipsos Vantis Files 4
Vantis Files utilize the standardized Vantis Express survey that includes demographics, shoppingand media habits. The summary is meant to give a top-line understanding of the consumer targetwhich is essential to market success and also provides the framework for the market size (rightproduct : right audience rather than wrong product : wrong audience).
Message Power ScoreMessage Power scores the ability to execute the message in mass marketing. A high score vs. thenorm results when one or a few clear, differentiated benefits are present. An offer with highMessage Power Score will be very responsive to advertising spend. Thus, seeing heavy spend is asignal of an uptick in business trajectory.
Buzz Power ScoreSome products are more likely to be discussed, even hyped by faithful buyers. Buzz Powerindicates how much word-of-mouth (buzz) a new product will generate. Buzz Power links directly todemand potential, whereby high buzz scores translate to incremental awareness in the market.Breakthrough products will generally have high potential here.
Critical Success FactorsPhrase-by-phrase analysis, indicating why consumers will buy. This analysis, based on a concepthighlighter exercise, identifies key message components that motivate the target audience.
Top 5 PhrasesThis “elevator test” identifies the 5 most important parts of the message - phrases that A) reach theconsumer and B) persuade them. Reach is calculated using the click rate for each phrase in theconcept highlighter exercise. Persuasion is derived by correlating the click rate (reach) with the keymeasure scorecard.
Vantis ScoresMarket Performance Indicators
The Bose Bluetooth Headset has a low Market Success Score. This indicates that theBluetooth Headset is not likely to have broad market appeal initially. The normativecomparison is “niche/targeted” with the potential of being a “hidden winner.” Average tobelow average Key Measure Scores indicate that consumers don’t see the BluetoothHeadset as a product that is different from other headsets on the market. However,above average top box purchase intent scores do suggest that the product does appealto a specific group of consumers. The challenge will be clearly defining and targetingthat group.
Market Success Score
Key Measure ScorecardVantis Database Ranking
730 67 133 200
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Although the Vantis Database consists of over 20,000 product evaluations, the scores of this study were compared to a subset of approximately 536 similarly priced products.
Seek Information(Top Two Box %)
Purchase Intent(Top Box %)
Purchase Intent(Top Two Box %)
Liking(Mean 6-Point Scale)
Price/Value(Mean 5-Point Scale)
Uniqueness(Mean 5-Point Scale)
Believability(Top Box%)
Need Fulfillment(Top Two Box %)
33%
9%
20%
3.7
3.1
3.1
41%
31%
Vantis Database RankingRaw
Score����
Bottom20%
BelowAvg.
AboveAvg.
Top20%Average
Key Market SegmentsLikely buyers of the Bose Bluetooth Headset tend to be urban, young (18 to 34years old) males with young children in the household (possibly siblings).They also have more disposable income. TV viewing habits skew towardscontent on news, news parody, reality TV, sports, talk shows and game shows.Interestingly, they are more likely to subscribe to both newspapers andmagazines.
© 2011 Ipsos Vantis Files 6
Key Market Segments (Continued)Likely buyers of the Bose Bluetooth Headset spend more time online thanaverage and are heavily involved in social networking and blogging. Othersites frequently visited include health, employment, streaming TV, video andmusic, and web-based gaming. Brand is important to them and they owntechnologically advanced devices such as the iPhone, notebooks and tablets.They prefer to shop online vs. retail and they depend on blogs, social networksand company websites as sources of information.
© 2011 Ipsos Vantis Files 7
Communications OverviewAbove average Message and Buzz Power Scores indicate that consumers will respond positively to well executed marketing efforts and will encourage their friends and family to purchase the Bose Bluetooth Headset.
The Top 5 analysis indentifies those phrases that had the greatest impact on purchase interest. Noise control, automated headset volume control, long talk time, the promise of doing “what others can't: It lets you hear” and technology that helps users to hear their calls better are the key product benefits that drive purchase interest.
Vantis Database Ranking
Bottom20%
BelowAvg.
AboveAvg.
Top20%Average
Communications Indices
© 2011 Ipsos Vantis Files 8
Top 5 Phrases
Rank PhraseOrder in Concept
1 Noise rejecting microphone filters out noise around you, 14
2 Adaptive audio adjustment technology automatically adjusts headset volume depending on surrounding noise: 12
3 Rechargeable battery for up to 4 1/2 hours of talk time, 22
4 The first Bluetooth® headset from Bose® does what others can't: It lets you hear 1
5 Exclusive Bose® technology keeps incoming voice level above the noise around you so you can hear your call better 16
Message Power Score
Buzz Power Score
Critical Success FactorsConcept Highlighter
The following 2 pages show the phrases in the order they appear on theoffering tested. Aspects of the Bose Bluetooth Headset that consumers findmost appealing are it’s noise rejecting microphone that filters out noise and itsadaptive audio adjustment technology that adjusts headset volume dependingon surrounding noise.
29%
22%
25%
17%
16%
The first Bluetooth® headset from Bose® does what others can't: It lets you hear
and be heard,
even as noise levels around you change.
No matter where you are—busy street, crowded lobby, airport terminal—your conversation won't suffer.
The unusually light
© 2011 Ipsos Vantis Files 9
13%
8%
14%
13%
9%
17%
47%
27%
54%
19%
0% 20% 40% 60% 80%
Reasons to Buy
and compact headset,
with its proprietary StayHear ™ ear tip,
also provides comfort
and stability while you're on the go.
And simple,
intuitive controls make it easy to take calls.
Adaptive audio adjustment technology automatically adjusts headset volume depending on surrounding noise:
a constant listening level is maintained as the user moves between quiet and loud environments.
Noise rejecting microphone filters out noise around you,
allowing the person on the other end of the call to hear more of your voice.
Critical Success FactorsConcept Highlighter (continued)
33%
27%
16%
11%
Exclusive Bose® technology keeps incoming voice level above the noise around you so you can hear your call better
Noise-rejecting microphone allows the person on the other end to hear more of your voice
Proprietary StayHear™ tip provides comfort and stability:
no ear hook needed
Consumers are also attracted by the headset’s rechargeable battery that lastsup to 4½ hours and exclusive Bose technology that keeps incoming voicelevels above the noise around users so they can hear their call better.
© 2011 Ipsos Vantis Files 10
11%
16%
20%
35%
20%
6%
0% 20% 40% 60% 80%
Reasons to Buy
no ear hook needed
Simple,
convenient controls make it easy to answer calls
Rechargeable battery for up to 4 1/2 hours of talk time,
175 hours of standby time
$149.95
Essential Guidance For Bose
Bose should focus its marketing messaging on the technological advances that make the BoseBluetooth Headset uniquely different from other headsets currently on the market. Other headsets’failures to live up to their promises of clear reception as well as higher quality noise and voicecontrol undoubtedly cast a shadow of doubt on the new Bose headset, and these doubts need to beovercome for the headset to become a product with broad market appeal.
Sales channel promotion should also play up the new technology attributes of the BluetoothHeadset, and also use video with audio comparisons to showcase the headset’s unique technologythat sets it apart from the competition.
To make full use of inbound marketing techniques, Bose should:
• Work with leading tech bloggers and make sure that they have the Bluetooth Headset units toreview.
• Create more buzz by heavily promoting the Bluetooth Headset through Bose-sponsored Twitteraccounts, Facebook pages, and targeted landing pages around Bose.com.
• Heavily use video in conjunction with audio comparisons with the competition in any online or in-
Bose® Bluetooth® Headset
© 2011 Ipsos Vantis Files 11
• Heavily use video in conjunction with audio comparisons with the competition in any online or in-store Bluetooth Headset promotions since seeing and hearing the Bluetooth Headset in actionwill get its message across more clearly and differentiate it from the competition.
The Bluetooth Headset will compete with virtually all other headsets in the marketplace, good andbad. To be successful long term, Bose must convince consumers that the Bluetooth Headset is notjust another headset that will fail to live up to its unique promises.
Going forward Bose should:
• Position the Bose Bluetooth Headset in a way that clearly separates it from the competition.• Focus efforts on communicating the Bose Bluetooth Headset’s key benefits and unique
technology with consumers who are most likely to purchase it so that they can virally spread itsmessage to other potential buyers. Those most interested in the headset are urban, young,males who are heavy users of the Web and are technologically savvy. These consumers willhelp create the buzz that will separate the Bose Bluetooth Headset apart from the competition.
Source: Bose.com
Methodology
Country �USA
Dates of Fieldwork
� January 20, 2011 – January 24, 2011
Data Collection Method
�Online
Concept Specs
� JPEG�1 pg
© 2011 Ipsos Vantis Files 12
Sample Size
�N=434
Sample Definition
�General population� Internet access
Exposure Method
�Sequential monadic survey�3 concepts per respondent�Test concept exposure rotated to avoid order bias
Length of Survey
�15 minutes
Key Measure Scorecard
Seek Information
� Which statement best describes how likely you would be to seek more information about the product/service?
� Response on a 5-Point Scale – “Definitely Would” to “Definitely Would Not”
Purchase/Sign-Up Intent
� Which statement best describes how you feel about buying/signing up for the product/service?
� Response on a 5-Point Scale – “Definitely Would” to “Definitely Would Not” Buy
Liking � How much do you think you would like or dislike the product/service?� Response on a 6-Point Scale – “Like Extremely Well” to “Not Like at All”
Price/Value� Considering the price, how do you feel about the value of the
product/service?� Response on a 5-Point Scale – “Very Good Value” to “Very Poor Value”
� How would you rate the product/service in terms of being new and different
Questionnaire Details
© 2011 Ipsos Vantis Files 13
Buzz Power
Agree/Disagree (5 pt scale)
� If I owned this product, I would want people to know I personally own it or use it
� I would email tor tell friends and family about this� I would recommend this to people I know� I would search websites for consumer ratings, blogs, or more information
about it� This product will create a lot of excitement and will be talked about
Uniqueness
� How would you rate the product/service in terms of being new and different from other products currently available?
� Response on a 5-Point Scale – “Extremely New and Different” to “Not at All New and Different”
Need Fulfillment
� How well would the product/service solve a problem or fulfill a need for you?� Response on a 5-Point Scale – “Definitely Would” to “Definitely Would Not”
Believability� Which statement best describes how you feel about the believability of the
statements made about the product/service?� Response on a 4-Point Scale – “Very Believable” to “Not at All Believable”
About Ipsos VantisPredicting the Business Impact of Marketing Decisions
ExperienceIpsos Vantis is a world leader in forecasting and optimizing new products and services before theyare introduced in market. Over the past 20 years Vantis has conducted 20,000 new product conceptstudies, and built the world’s largest database of new product survey scores in technology, durablegoods, health, and services sectors.
Forecasting validation is an absolute necessity for the success of our business among corporateand institutional investor clients. Ipsos Vantis tracks its forecasts vs. market launches and hasobserved a high degree of accuracy:
� 80% of forecasts are within 20% of actual sales results� Early stage concepts clearing the Vantis hurdles have a 70% success rate in-market
PhilosophyForecasting validation is a necessity for our business in order to ensure the validity of the advice,but our attention is placed on delivering research that informs the right business decision. EveryIpsos Vantis study delivers results that depict business impact. Our unique point-of-difference in themarket research community is the ability to translate survey data to business results. We reportanswers to business questions in terms that business partners can understand: Sales, Revenue,Probability of Success in Market.
Vantis Files and the Vantis Philosophy
© 2011 Ipsos Vantis Files 14
Vantis Files serve several purposes.
� Independent evaluations of new, emerging, and newsworthy product and service offerings� Monitoring a new product or service’s ongoing market acceptance, buzz potential, and reach� Competitive intelligence on new product and service offerings that you monitor
Vantis Files are highly standardized, making it easy, fast, and affordable to review the results of ourindependent tests of new product and service offerings. Vantis Files are based upon the metric ofVantis Express, our succinct collection of powerful market-proven metrics that relate to the threemajor components of a new offering’s success: demand potential, key consumer targets, and criticalsuccess factors. Vantis Files results, like our custom Vantis Express work, hold true to thephilosophy of translating survey scores to business impact. Vantis Files detail the opportunity for anew product or service offering, leaving little doubt as to the strength of the new idea.
