Beats by Dre™ Competitive Audit

Julia Winn

Marketing Strategy• Beats by Dre™ revolutionized the headphone industry• 64% of premium headphone market in 2012

• Approach: Create a premium brand people are willing to spend $300 on by using fresh design, celebrity endorsement, assurance of quality, effective digital marketing, and product line expansion. Cut through clutter by offering a bulkier, bigger headphone but making it cool.

• Products: Headphones, earphones, speakers, accessories, car & PC audio, & streaming music subscription service

• The goal: Convince the target that they need Beats by Dre™ to have the full music experience – and to show that they are true music lovers

http://business.time.com/2013/01/16/how-dr-dre-made-300-headphones-a-must-have-accessory/

Target“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 Beats 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 segment members.”

-Jimmy Lovine

http://perfectbusiness.co/branding-brilliance-breaking-down-how-beats-by-dre-captured-the-market/

Target• 15-35 year old males and

females • Music lovers/experts• Trendsetters • Care about sound quality over

cost• Want to be perceived as cool• Early adapters• Disposable income• Follow celebrities and musicians• Highly socialhttp://perfectbusiness.co/branding-brilliance-breaking-down-how-beats-by-dre-captured-the-market/

Insights

•Young, trendy music fans want a more authentic music listening experience that will serve as a symbol of their music expertise

•Current headphone market was either geared towards professionals or amateurs who only cared about cost but not quality – Beats leveraged this opening in the market

http://brandsandfilms.com/2011/03/beats-by-dre-in-consumer-society/

Big IdeaBeats by Dre™ Solution: Provide young music enthusiasts a product that allows them to “hear music the way the artist intended” and show off their music prowess

Leverage power of experts (musicians) to launch the product

Executions Celebrity EndorsementExperiential/Partnerships

TV/Video

Social Media/Digital

1. Endorsements• Celebrity endorsement is at the core of Beats’ marketing strategy and executions• Dr. Dre as cofounder• Initial execution (R/GA) – prior to 2008 London Olympics, gave musician and athletes free headphones

Endorsements• Endorsements touch every execution• TV spots feature celebrities like Robin Thicke, Richard Sherman, Ellen Degeneres

Endorsements/PR• Free giveaways encourage celebrities to wear Beats in everyday life, garnering PR

2. Experiential• Experiential is the next layer in the Beats marketing mix• Beats #Showyourcolor contest – flown to LA to film commercial

Beats Listening Booth at Heathrow T5

http://cargocollective.com/pjupp/Beats-by-Dr-Dre-showyourcolor

Outdoor retail in Shanghai

2. Strategic Partnerships• Partnerships with HP, Chrysler, Fiat, Dodge, and HTC have allowed Beats to spread its audio system

3. TV/Video• TV and video spots build awareness and promote new product lines

4. Digital/ Social Media• Digital and social initiatives act as the glue to tie together Beats by Dre™’s traditional advertising

6.7 millionlikes

1.2 millionfollowers

497kfollowers

+13.9k

http://www.shopigniter.com/blog/2013/02/19/10-smart-things-beats-by-dre-does-to-promote-sell-products-in-social/

2k followers

Poor engagement

Last post in 2012

Use of Digital1. Engagement

http://www.shopigniter.com/blog/2013/02/19/10-smart-things-beats-by-dre-does-to-promote-sell-products-in-social/

Use of Digital• 2. Customer Support

Use of Digital• 3. Conversion

Use of Digital• 4. Product Imagery