Bose Presentation.pdf

A Bose case analysis refers to a detailed examination of Bose Corporation, a company that specializes in the design, manufacturing, and marketing of high-quality audio equipment, including speakers, headphones, and sound systems. A Bose case analysis typically covers various aspects of the company, such as its history, organizational structure, market positioning, and competitive landscape.

The analysis may also examine Bose's financial performance, including revenue, profitability, and growth prospects. Additionally, a Bose case analysis may delve into the company's marketing strategies, distribution channels, and product development processes, among other key areas.

Overall, the goal of a Bose case analysis is to gain a comprehensive understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT analysis) to inform strategic decision-making and identify potential areas for improvement.

1. Case analysis
Presented By:Gauri Surti

2. Let's talk about
your headphones.

3. •
The market for headphones was booming in
November 2017
•
Several people had been considering
changing their listening devicesbecause of
the widespread use of smartphones and
music streamingservices like Spotify and
Apple Music
•
Consumer electronics businesses'
technological advancements led tobetter
feature sets and more affordable costs,
producing a $6 billionglobal headphone
market each year.
Overview of the Audio
Equipment Industry

4. 1964
Bose was founded
by Amar Bose
1975
By this year, the
Bose 301s were the
best-selling speakers
2000
Introduction of the
Bose Quiet Comfort
(QC) headphones
2017
By this year, Bose
had expanded its
distribution
Historyof Bose

5. Bose's
Competitors

6. Who is Bose's Biggest Competitor?

7. Competitor Analysis
Beats concentrated more on advertising by
usinginternationally recognized athletes and
celebritiesinorder tocapture62%of the
market share for high-endheadphones
•
Lady Gaga and Justin Bieber are two
examples (Dolan,2017)
•
Beats dominated the premium headphone
market witha 62% market share in 2017, as
opposed to Bose's22% market share

8. Briefoverview
of Beats
-Founded in 2006 by Dr. Dre and Jimmy
Iovine.
-Acquired by Apple in August of 2014 for$3
billion.
-Only the Beats Studio Wireless Headphone
has noise-cancelling technology.
"Hear What You Want" ad campaign:
-Featured prominent sports figures.
-Also, the campaign ran during the NFL x
Bose partnership, leading to Colin
Kaepernick being fined $10,000 for wearing
his Beats to a postgame interview.

9. BEATS VS BOSE
The average consumer ratingfor Bose is
higher than Beats. Additionally, Beats' number
of reviewsfor the Beats Studio and Beats
Solo3Wireless headphones on Amazon and
Best Buy are higher than Bose.
***These two are important to note because online reviews
at retailer websites was ranked #1 for important sources of
information that is utilized by consumers for the purchasing
decision.
Source: compiled by casewriterfrom companywebsites

10. Beats Vs.
Bose
YOUTUBE &
Brand
Awareness
Brand Awareness

11. "BETTER SOUND THROUGH RESEARCH"
Bose has recognition through itsnoise-cancelling technology, and
positions itself as a brand with premium, high-end products that
utilize noise-cancelling technology.

12. ●
Advertising Spending: averaged $200
million in recent years.
●
Through 2015, Bose had an in-house
advertising program that partnered up
with outside agencies as needed.●
Late 2015:Grey Advertising appointed as
Bose's "global creative agency."●
Bose also partnered with the National
Football League to become the "Official
Headphone and Headset of the NFL."
○
Numerous NFL players, such as Russel Wilson,
have been featured in advertising.
Positioning & Marketing Efforts

13. Bose'stargetaudience
VALUES
Demographics
INTRESTS
Age:25-54
Gender:Male and female
Income:Middle to high income earners
Education:College educated
Occupation:Professionals, executives,
and business owners
Location:Urban and suburban areas
BehaviorsPERSONALITYLIFESTYLE
Health conscious
Active
Enjoys music &
Technology
Quality
Excellence
Prestige
Innovative
Sophisticated
Discerning
Travel
Fitness
Technology
Regularly
purchase hi-end
technology

14. SWOT
Strength
•Stellar brand reputation
•Innovative products like Noise Cancelling Headphone
•Diversified portfolio ranging from headphones to
speakers to home theaters
•Strong visual identity
•Large distribution network
Opportunities
•Growing market for wireless audio
•Emerging markets
•Partnerships & Collaborations
•Product line extensions
•Technological Advancements
Weakness
•Premium priced products
•2nd position in Headphone market
•Heavy reliance on Advertising
•Heavy dependence on Technology that might take
years to develop
•Perceived boring designs
Threats
•New Entrants
•Changing technology can make products obsolete faster
•Negative Reviews or Brand Image
•Shift in consumer preference
•Acquisition & Mergers

15. estleP
•Trump takes
office in
January 2017
•Longest streak
of economic
growth in 20
years
•Increase in
disposable
income of
Americans
•Shifting buyer
behavior as
more
consumers
switch online
•Mass
customization is
taking the world
by storm
•Cultural
movements
such as BLM,
#MeToo, and a
rise in
environmentalis
m leads to
higher expected
brand values
from consumers
•New music and
musicians make
a breakthrough
in 2017
•Digital device
ownership
growing among
teens
•Increase in paid
social media
advertising
•Tik Tok is
released
•Tax Cuts and
Jobs Acts of
2017 slashes
tax rates for
corporations
and individuals
•Music
Modernization
Act improves
songwriter
royalty rates
from digital
streaming
platforms
•US withdraws
from the Paris
Climate
Agreement
•Funds for
Environmental
Protection
Agency are cut
by almost 30%

16. Key marketing issue and challenges
Bose is
experiencing a
gap between
product
potential
how to
unlock
product
potential

17. Bose’s current $200 million in
advertising is seeing little returns in
market share. Although many
consumers rate Bose as a superior
product, Bose struggles to
communicate that value to the
market. Bose needs to invest in a
new communication strategy that
will reinforce its brand persona.
Communication Strategy
Alternative #1: Investing in New

18. #1Communications
Strategy
Pros
•
Strong potential to change customer
perception.
•
Increase Bose visibility, generate sales,
boost loyalty, and improve authority as
market leader who rely on research and
innovation, “Better sounds through
research”.
•
Differentiates Bose products from Beats
through advertising messages and
communication strategies
Cons
-
May leave little room/funds left for
innovation and new products.
-
Mislead Bose orientation toward R&D and
innovativetechnologies
-
High Advertising costs may not be
sustainablein the long run
-
Communication alone may not be enough
to differentiate Bose products from Beats,
especially if they have very similar products

19. For this group of customers, this
purchase is ahigh-involvement
purchase.Research has shown
that the effect ofads is weak for
high-involvement products.
Insteadof relying on advertising to
retain market presence,we can
reduce our ad spending and
insteadreallocate to expanding
product portfolio and R&D.
Product Research &Development
Alternative #2: Investing in

20. #2 Research
&Development
Strategy
Pros
•
Focuses on Bose’s strength –quality,
something that harder for Beats to replicate
and allows for more differentiation
between ourselves and Beats
•
Maintains Bose’s competitive advantage
of innovative-oriented approach
•
May improve cost-effective spending in
the long run,as improved products can
drive sales and reduce the need for
expensive advertising.
Cons
-
Awareness for new products might be hard to accomplish,
which may lead to a short-term decline in sales as
advertising spending is reduced and resources are
redirected toward R&D.
-
R&D costs exceed the profit
-
Provide competitors an opening to imitateand communicate
the new tech more efficiently, which lead to losing market share
in a rapid environment.
-
New technology/innovationdoesn’t guarantee the success of
the outcome,and consequently sales and revenues.
-
High quality products are the entry fee to any competitive market,
however holding on a competitive advantage and
communicating it effectively to the right customer is what
makes the real differencefor customers and competitors

21. Alternative 1
Communication Strategy
Alternative 2
Research & Development Strategy
Whichstrategy
shouldBoseAdopt?

22. Invest in a new
Communication
Strategy
Our Chosen Alternative:

23. A new comms strategy is necessary to achieve market penetration
Bose Users
Median Age
= 45
Beats Users
Median Age
= 34
Vs.
HOWEVER, Millennials and Gen Z make up 52% of the headphones users' market
On average, they spend $123 MORE on mobile accessoriesthan the average user

24. An effective communicationstrategy puts the customer first
To stay culturally relevant, Bose needs to shift its communications strategy to
meet shifting consumer values
Changing Customer Values in 2017:
•75%of consumers want brands to be authentic
and humorous on social media
•62%of Millennials are more likely to be loyal
customers, if a brand engages with them on
social networks
•54%of consumers read product reviews online
before purchasing
•9 in 10Millennials would switch brands to
oneassociated with cause
customers want brands to be:
Relevant
Engaging
Customer-proven
Purpose-driven
=

25. Relevant, engaging, customer-proven, and Purpose-driven implementation
01
Strong Content
Marketing Strategy
0502 03 04 06
New Social Media
Campaigns
Offer Social ProofInnovation in
advertising
Improve uxon websiteIncrease
engagement on
website
07 1108 09 10 12
Improve after-
purchase experience
attractive loyalty
programs
Encourage brand
trials
Immersive promo
events
invest globallyPartnerships and
sponsorships

26. Create
astrongcontent
marketingstrategy
To establish and nurture
relationships with yourprospective
and existing customers.

27. If we want to meet Millennials and Gen Z
wherethey're at, we need a social media
strategy that isconsistent and enhances
Bose’spresenceonconsumers' mind.
Some social media campaigns could
include:
•
Having customers create playlists which
will befeatured on Bose's social media.
•
Everyday consumers showing how
Boseproducts enhances their everyday,
at work,fitness, etc.
Establish AnInteractive
social mediastrategy

28. Offer Social Proof
As mentioned in the case that high
involvementproductsrequire
intense customer
research;thus,providingcustomer
-to-customer reviews orUGCwill
raise Bosechances among
customers tobe the first
choicetoconsider for a
headphone orother audio
equipment.

29. Focus on innovationin
advertising
Bose customers value product
quality,and since headphones are a
high-involvement product, they most
likelyspend hours researching a
productbefore purchasing. To aid in
thatdecisionprocess and to
effectivelycommunicate value,Bose
can maketheir educational
advertising morecreative and
culturally connected.

30. Update THEwebsite
andimprove the UxDesign
Bose can be seen as old-
fashionedanditsbranding as
unattractive. So,updating the
look of its assets
wouldraisethe perceived
valueof itscustomers.

31. Increasecustomerengagemen
t&experienceontheofficial
website ofBose
Providingpersonalizedoffers,reco
mmendationsandcustomizedprod
ucts(makecustomerspurchaseont
heofficial
websiteratherthanathird-party
website)

32. Improve after-purchase
experience
Increase customer loyalty
andretention by
offeringexceptional
customerserviceand incentives
for reviewsand referrals.

33. attractiveloyalty
programs
Create loyalty programs that
offerearlyaccess to new or
exclusiveproductsandprovide VIP
eventssuch as concertmeetand
greet with artists.

34. encourage brandtrials
Offer a trial period for
Boseproductsora trade-
in/recyclingprogramwherecustomers
can trade inprevious Bose
orcompetitors' headphonesfor
adiscounted Bose
product.Sustainabilityis a growing
area of concernin 2017,and Bose can
communicatetheirinitiative in
sustainability through suchaprogram.

35. Immersive
promoevents
We can create immersive
experiencesforcustomers to
tryBoseproductswhether
headphones, speakers,
etc.Examples ofthese can be
soundproof podsto try
outdifferent speaker types,
virtualconcertexperience, and
silent-type discoeventsto
tryheadphones.

36. InvestGlobally
Although Bose is well-known in the
US, there are opportunitiesfor Bose
to become a global leader. They
can focus onlocalized campaigns
and partner with local retailers to
reachnew emerging markets.

37. Partnerships and
sponsorships
Bose needs to find partners
andspokespeople who represent their
brandvalues well. Examples of
partnershipsinclude:
-
Celebrities who are famous globally
-
Music festivals, sports events,
recordcompanies
-
Leaders and organizations in the
digital,technology and businesses spaces
-
Podcasts geared towards music or tech
-
Global music education programs
givingstudents access to high-quality
audioequipment and trainings

38. New Social Media
Campaign With Advertising
Focused on Superior
Innovation + Influencer
Activation
Increase Personalization
and Customization on
Website +
ImprovedCustomer Service
Establish Strong Content
Marketing Strategy to
transformBrand Perception
byyear 1
Immersive Promotional
Events Throughout the US
Establish Strong
LoyaltyPrograms to
ImproveRetention and
After-PurchaseExperience
(Brand Trail andTrade-in)
New Product Line to
innovate & improve
By year 5
New Sponsorships and
Partnerships
Invest Globally with Global
Campaigns and Retailers
by year 10
Implementation timeline

39. Key Projections
10th Year 5th Year 1st Year Current(2017)

37% 29% 24% 22%
Market
Shareabove
$100Price
point
$6.8B $5.1B $ 4B $ 3.8B Revenue
1,000,000 500,000 100,000 87,846 Followers
85% 82% 75% 70%
BrandAware
ness

40. Current Strategy Vs New Strategy
Pricey Product with
heavyfocus on
Technology
Perceived boring looks
Failing to effectively target
younger audience
Limited focus on building
community & engaging
customer
Only utilizing sports
influencers
Targeting a less price
sensitive segment
Changing brand perception
Focused segmentation and
targeting
Broader collaboration and
influencer plan
Build and engage
community on all platforms

41. CREDITS: This presentation template was
created bySlidesgo, including icons by
Flaticon,and infographics & images by
Freepik.
Gauri Surti
Do you have any questions?

42. Appendix –Projections calculations
Forecast: Global headphone market togrow at a CAGR of 5.46% during theperiod 2017-2021 -Technavio's Analysts
Projected Revenue = Previous Year'sRevenue * (1 + Yearly Growth Rate)
Projected Market Share = Previous Year'sMarket Share + (Projected Units Sold bythe Company / Total Units Sold in theMarket) X100
*Assuming no key disturbances inmarket and Beat's market share staysame
Projected Revenue (in billions)Projected Market Share
Growth Rate
AssumptionYear
$3.8B22%7%0 (2017)
$4.006B23.54%6%1 (2018)
$4.283B24.99%7%2 (2019)
$4.617B26.33%7.50%3 (2020)
$4.848B27.61%5%4 (2021)
$5.109B28.79%5.50%5 (2022)
$5.418B29.87%6%6 (2023)
$5.827B31.14%7.50%7 (2024)
$6.183B32.18%6%8 (2025)
$6.543B33.22%6%9 (2026)
$6.861B34.16%5.00%10 (2027)

43. Appendix –Sources
Sources:
•
CMR Berkeley
•
CNN
•
2017 Cone Communications CSR Study
•
Council of Foreign Relations
•
Forbes
•
Harvard Business Publishing: Bose Corporation
•
Mintel
•
MRI SIMMONS Winter 2017 Connect Survey Results
•
Pew Research Center
•
Sprout Social