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Beats Electronics - Company's Strategy Deconstruction

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Beats Electronics - Company's Strategy Deconstruction

  1. 1. Company’s strategy deconstruction
  2. 2. 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. 3. 3 Headphones Earphones Speakers Technology product line
  4. 4. 4 Headphones Earphones Speakers Technology product line
  5. 5. 5 product line professional amateur feminine masculine *Heartbeats by lady gaga *powerbeats: made for athletes
  6. 6. 6 product line expensive cheap Significant to brand Identity Trivial to brand Identity *399$ *99.9$ *199$
  7. 7. 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. 8. 8 Presenters Phase 1: Brand Equity and Target Market Foothold POSStatement Products Phase 2: Supply Chain Renewal and New Market Penetration New Market SupplierNew Market New Market strategy
  9. 9. 9 Presenters Phase 1: Brand Equity and Target Market Foothold POSStatement 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. 10. 10 Presenters Phase 1: Brand Equity and Target Market Foothold POSStatement 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. 11. 11 Presenters Phase 1: Brand Equity and Target Market Foothold POSStatement 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. 12. 12 Presenters Phase 1: Brand Equity and Target Market Foothold POSStatement 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. 13. 13 Phase 2: Supply Chain Renewal and New Market Penetration New Market SupplierNew Market New Market 2010: Partnership between Beats Inc. and HP, according to which, beats will develop audio systems for hp’s computers strategy
  14. 14. 14 Phase 2: Supply Chain Renewal and New Market Penetration New Market SupplierNew Market New Market 2011: HTC acquires 51% of beats’ shares and what gives Beats a toehold in the mobile phone market strategy
  15. 15. 15 Phase 2: Supply Chain Renewal and New Market Penetration New Market SupplierNew Market New Market 2011: Partnering with the Chrysler company, gives Beats a toehold in the automobile market strategy
  16. 16. 16 Phase 2: Supply Chain Renewal and New Market Penetration New Market SupplierNew 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. 17. 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. 18. 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. 19. 19 Retails E Commerce Product Integration markets Company’s Distribution Channels
  20. 20. 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. 21. 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. 22. 22 Product Integration Retails E Commerce Integration of Beats’ products into partner company’s products (HP, HTC, Chrysler) markets Company’s Distribution Channels
  23. 23. 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. 24. 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. 25. 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

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