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Noah Wexler, Peter Deyo, Amogh Jeerige, Gantsetseg Myagmarjav, Jerome Jackson
MKTG 761-02
MARKETING PLAN & OVERVIEW
OSSIC: 3D AUDIO HEADPHONES
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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Tableof Contents
EXECUTIVE SUMMARY 5
THE MARKET 5
OSSIC 5
COMPETITION 5
FUTURE IMPLICATIONS 5
EXTERNAL ANALYSIS 6
HEADPHONE INDUSTRY OVERVIEW 6
INDUSTRY DEFINITION 6
INDUSTRY SIZE 6
INDUSTRY TRENDS 6
COMPETITORS: 7
INDUSTRY STANDARD 7
ECONOMIC TRENDS 7
U.S. EARBUD & HEADPHONE MARKET BY PRODUCT, 2012 - 2022 (USD MILLION) 8
TECHNOLOGICAL TRENDS 9
THE WORLD’S MOST ADVANCED HEADPHONES 9
DEMOGRAPHIC AND SOCIO-CULTURAL TRENDS 9
WE ARE GROWING OLDER 9
WE ARE GROWING MORE DIVERSE 10
THE YOUNGEST POPULATIONS ARE MOST DIVERSE 11
WOMEN ARE BECOMING BREADWINNERS 12
PRIMARY MARKETS 13
MILLENNIALS 13
IGENERATION 13
SHARE OF US POPULATION BY GENERATION,2016 14
THE ATLANTIC AND ASPEN VALUES POLL 14
ETHICAL ISSUES 14
REGULATORY, LEGAL, AND POLITICAL TRENDS 14
COMPETITIVE TRENDS 15
THE AUDIO AND QUALITY OF COMPETITORS 18
THE VALUE OF COMPETITION 18
INTERNAL ANALYSIS 19
OVERALL DESCRIPTION OF THE BUSINESS AND PRODUCT 19
MANAGEMENT 19
PRODUCT 19
INSTANT CALIBRATION 20
OSSIC IS DIFFERENT 21
BENEFITS OF OSSIC3D AUDIO 21
OSSICXFOR VIRTUAL REALITY (VR) 21
OSSICXFOR GAMING 21
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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OSSICXFOR MOVIES 22
OSSICXFOR MUSIC 22
SALES & DISTRIBUTION 23
MANUFACTURING AND RESEARCH & DEVELOPMENT 24
PHYSICS-BASED TESTING 24
PEOPLE-BASED TESTING 24
SENTIMENT ANALYSIS 26
TOP 3 FAVORITED TWEETS 26
COMPETITIVE ANALYSIS 27
SWOT ANALYSIS 28
TARGET MARKET 30
PRIMARY TARGET MARKET:GAMERS 30
DEMOGRAPHIC DESCRIPTION 30
PSYCHOGRAPHIC DESCRIPTION 30
IDENTIFYING NEEDS AND WANTS OF TARGET MARKET 31
THE GAMING INDUSTRY OVERVIEW 31
DEMOGRAPHICS 32
BUYING HABITS 32
TARGET MARKET 32
VR AND E-SPORTS 33
VALUE PROPOSITION 33
BENEFITS VALUED 33
BENEFITS NOT OFFERED 33
PRICE RANGE 33
VALUE PROPOSITION STATEMENT 33
BRANDING & POSITIONING 34
BRAND POSITIONING STATEMENT 34
BRAND IMAGE COLLAGE 34
MARKETING OBJECTIVES 35
STRATEGY & TACTICS 35
STRATEGY 1: BUILD AWARENESS 35
TACTICS: 35
STRATEGY 2: EXPAND DISTRIBUTION & PARTNERSHIPS AND INCREASE LOYALTY 36
TACTICS: 36
STRATEGY 3: IMPROVE PRODUCT QUALITY & CUSTOMER SATISFACTION 36
TACTICS: 36
IMPLEMENTATION PLAN 37
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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EXECUTION PLAN 39
WORKS CITED 41
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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Executive Summary
The Market
Future trends indicate that custom-fit and functional audio equipment as emerging products in
the growing headphones and earbuds consumer market. Consumers want products that can be
used indoors, outdoors, on the go, while exercising, eating, or traveling. The headphone and
earbud market has specifically seen large growth between years 2009 and 2014. Sales grew from
$1 billion to $2.7 billion in 2014, at a compound annual growth rate of 22%. This growth can be
attributed to the rising interest in premium priced over-the-ear headsets, as well as a shift away
from portable audio products like wireless speakers or portable docking stations with speakers.
OSSIC
Utilizing the momentum of the growing headphone industry, we’ve identified OSSIC as the
company we’d like to support and help develop their strategic marketing plan. OSSIC’s X
headphones instantly calibrate to the listener’s ears, increasing the sense of auditory space and
acoustically recreating the way people hear the world. Through use of advanced 3D audio
algorithms, head-tracking, and individual anatomy calibration, OSSIC positions itself as the audio
company who accurately delivers 3D sound to consumers. This innovative technology will bring
audio and gaming to the next level.
The OSSIC Kickstarter project started on February 23 2016, and, in less than 2.5 hours, received
$100,000 dollars in funding. By April 21 2016, they acquired a total of $2.7 million with 10,000
backers to begin developing and commercializing their first 3D headphones. The company is
currently shipping its first batch of headphones on October 3, 2016.
Competition
OSSIC currently has no direct competitors since their 3D audio technology is an innovation to the
audio industry. However, major brands such as Bose, Sony, Panasonic, Beats, Audio-Technica,
and Monster have the resources and power to develop their own version of 3D audio. Even with
these industry giants, OSSIC has a unique positioning strategy that focuses on gamers and
audiophiles. Their product will be able to effectively reach their target audiences and pull them
away from the more prominent brands on the market. Consumers who love new tech and want
the best quality product will have no hesitation in migrating to OSSIC.
FutureImplications
Overall, OSSIC has huge potential for growth and success. Sales will continue to come in from
pre-orders and online sales, while brick and mortar locations come into the mix of things over
time. Potential issues include growing too quickly and the company drowns under their own
production, but this seems to be a small risk considering their high demand. Gamers and
audiophiles are always looking for the next best thing, and OSSIC brings that to the table.
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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External Analysis
HeadphoneIndustry Overview
Industry Definition
Headphones and earbuds are categorized within the Mobile Phone and Tablet Accessories
industry. Between 2009 to 2014, the sales of accessories for mobile devices has grown at a
compound annual growth rate (CAGR) of 10.1%. This was a period where many adults had
adopted their first smartphones and tablets. Specific products of focus in this industry include
mobile and tablet cases, chargers, external batteries, headphones, portable docking stations,
speakers, and Bluetooth speakers.
The headphones and earbud market has specifically seen large growth between 2009 to 2014.
Sales of these products has grown from $1.0 billion in 2009 to $2.7 billion in 2014, at a compound
annual growth rate (CAGR)of 22%. The growth is attributed to a riseof interest in premium priced
for over the ear headsets, as well as a shift away from portable audio products like wireless
speakers or portable docking stations with speakers.
There are several popular, premium priced, competitors including Bose, Beats, Sony, Monster,
Klipsch, JBL,Audio-Technica, Razer, and JLab. However, Mintel forecasts that sales growth will be
more limited as the market transitions from first-time purchases of smartphones and tablets to
upgrades of smartphones and tablets. (Mintel)
Industry Size
As of 2014, the Mobile Phone and Tablet Accessories industry sits at a $8.5 billion valuation with
expected growth between $1.8 to $4.7 billion by 2019. Mintel’s forecast an average expected
growth, or CAGR of 3.3% from 2014 to 2019, and total sales rising to $10 billion. Headphones and
earbuds have shown the most striking growth within the Mobile Phone and Tablet Accessories
industry. Volume of sales has been on the rise as more consumers are also streaming music on
their mobile devices. (Mintel)
The top spenders in the Mobile Phone and Tablet Accessories industry are young adults age 25-
34 and men age 18-34. More than 20% of mobile phone and tablet accessory customers use
headphones, earbuds, or wireless Bluetooth audio equipment, which accounts for upwards of
$1.7 billion of industry sales.
IndustryTrends
In the Mobile Phone and Tablet accessories industry, awareness leads to preference. Mintel
states that about 50% of all phone and tablet owners prefer to buy accessories from the same
brand as their phone or tablet. In terms of what trends are currently working, awareness drives
favorable preferences in consumer purchases. Many market leading brands such as Bose,
OtterBox, JBL, and Beats are creating favorable awareness through television and other broad
media campaigns. Brands with good awareness but smallfootprints likeLogitech and Kensington,
also do well by extending partnerships or licensing agreements with third parties to leverage
brand equity. Overall the Mobile Phone and Tablet Accessories industry will continue to grow,
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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but at a slower rate. At this point, most consumers have adopted a smartphone or tablet and will
only make small upgrades in the future. (Mintel)
The biggest struggle in the Mobile Phone and Tablet Accessories industry is that most consumers
are unwilling to pay a premium for a branded product. As an example, Mintel shows that a
willingness to pay a premium for Bose accessories is at 33%, Beats at 17%, and JBL at 13%.
(Mintel)
Future trends forecast that custom-fit and activity specific headphones, as well as
indestructibility is what consumers want. Consumers want mobile devices and accessories that
are extremely versatile. They want products that can be used indoors, outdoors, on the go, while
exercising, eating, or traveling. Per Mintel, upwards of 31% of mobile device owners report that
they frequently drop their devices or accessories. Thus, more durable, “Military Grade”,
protection can be expected to expand. (Mintel)
Competitors:
Beats, Bose, Sennheiser, JBL, Bowers & Wilkins, V-Moda, Sony, Definitive Technology, Philips,
Samsung, Muzik, Klipsch, Pioneer, Monster, Audio-Technica and Audeze.
Industry Standard
Frequency response of a pair of headphones is a typically used as the baseline specification to
demonstrate the quality of a pair of headphones. Industry standards have frequency responses
of 15 - 28,000 (-3 decibels) where anything over 23,000Hz is a good sign.
Per CNET, Sennheiser is an industry leading company that has developed 23 pairs of headphones
over the last 22 years and is an industry standard.
Economic Trends
The target market of the ‘OSSIC’ 3D Audio headphone is the US economy. Per the of Economic
Analysis, the growth of US gross domestic product (GDP) was 1.4% at the end of June, 2016,
which is 0.9% down from the end of 2015 (Chart 1). Thus, there was a positive uptrend in the US
economy through the second quarter of 2016 due to an increase of personal consumption
expenditures, exports and nonresidential investment as stated by Trading Economics. For
example, the purchase of US customer goods and services increased by 2.1% at the end of June,
2016 per the Bureau of Economic Analysis. (Rohrer, Pinard and Aversa)
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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Chart 1
In addition, International Monetary Fund (IMF) forecasted that the US economic growth will be
higher than other highly developed countries such as EU countries and Japan. Christine Lagarde,
managing director of IMF, concluded that the US economy is in a good place as the
unemployment rate dropped to 4.7% and 200,000 new jobs was created per month in 2015
(Wiseman)
Per IBIS World report, the growth of headphone industry contribution to the US economy is
estimated at 4.4% in 2010-2020, which is above the expected GDP growth of 2.5% for the
country. IBIS World stated that the increase of consumer disposable income, net investment
income of households and individuals, contributed to the sales in the headphone industry
between 2010-2015. Also, industry revenue is projected to increase in the next 5 years due to
the growth of smart phone usage and net income of individuals and households. (Trading
Economics) (IBIS World)
U.S. Earbud & Headphone Market by Product, 2012 - 2022 (USD Million)
Chart 2
Source: (Grand View Research)
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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In terms of revenue, the largest market is expected to be North America as indicated by Grand
View Research. Moreover, the research forecasted that the US earbuds and headphones market
will increase and reach over $5 billion by 2022 (Grand View Research)
Technological Trends
The World’sMost Advanced Headphones
OSSIC X is the world’s first 3D audio headphone that instantly calibrates to the listener,increasing
the sense of auditory space, and acoustically recreating the way people experience their music,
games, and entertainment. OSSIC uses 3D audio algorithms with head-tracking and individual
anatomy calibration to deliver incredibly accurate 3D sound. Therefore, people will experience
high fidelity audio reproduction like never before. This innovation is the future of gaming and
premium audio technology. OSSIC’s Kickstarter Project was started on February, 23 2016 and
reached their funding goal of $100,000 in less than 2.5 hours. By the end of their funding period,
OSSIC had accrued $2.7 million and 10,000 backers.
Demographic and Socio-Cultural Trends
We are Growing Older
Many factors have led to the shift of demographics within the United States including: rising life
expectancy, changing birth rates, and immigration. As a percentage of the population, people 65
and older are increasing – following the baby boomer generation.
Chart 6
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We are Growing More Diverse
The white population in the United States is aging and consistently making smaller contributions
to the younger generations. Diversity is more prominent than ever within the US and it will
continue to grow.
Chart 7
Source: (United States Census Bureau)
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The Youngest Populations are Most Diverse
The newest generation of people in the US are adopted the name, iGeneration. The most
significant shift is seen by Hispanic origin. Nearly 25% of the iGeneration is Hispanic, compared
to 18% of the overall population. This generation is most open-minded concerning issues of race,
ethnicity, religion, or sexual orientation. iGen’s prefer brands that incorporate diversity and are
aware of environmental issues and show increasing civic engagement. Single mothers support
many iGenerations. (Mintel)
Chart 8
(Mintel)
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Women are Becoming Breadwinners
According the US Census, the 2016 median age of new moms has increased by 1.4 years since
2000 (24.9-26.3). New moms today are more decisive about their preferences because they have
spent more time in the adult word than previous generations. (United States Census Bureau)
Chart 9
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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PrimaryMarkets
Millennials and iGeneration will most likely become OSSIC’s primary markets both short and long
term. Baby boomers and women won’t be neglected. However, their values seemto shift across
the age groups.
Millennials
Aged 18-36 in 2016
 The median income for younger millennials is $25k, while it’s almost double that ($48k)
for older millennials
 Preferred living environment includes urban areas and typically on the western side of
the country.
 Millennials comprise 24% of the US population (77 million individuals)
 Top 10 markets include Austin Texas, Salt Lake City Utah, San Diego California, Los
Angeles California, Denver Colorado, Washington DC, Houston Texas, Las Vegas Nevada,
San Francisco California, and Dallas-Ft. Worth Texas
(MarketingCharts)
iGeneration
Aged 9-21 in 2016.
● The most recent generation, iGens, are just entering adulthood and beginning to push
Millennials out of the key 18-34 age bracket.
● Few iGens are living on their own now but over the next five years they will become a key
consumer segment
● iGens are culturally more diverse than earlier generations
(Mintel)
Chart 10
(Mintel)
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Share of US Population by Generation, 2016
Millennials currently make up 25% of the US population, just ahead of Baby Boomers. This group
will grow in dominance of the consumer market as Boomers decline.
Chart 11
(Mintel)
The Atlantic and Aspen Values poll
The country is shifting to a more liberal stance on social issues (gay-marriage, civil rights) but
becoming more economically conservative – this will shift with Millennials and iGens. These
trends occur evenly over all groups but the larger population groups will have more influence.
Ethical Issues
The United States population is increasingly aware of many social and environmental issues.
Especially where headphones are manufactured. Questions frequently come up like, “Who
benefits the most?”, “What is the carbon footprint?”, “Who assembles them?”, “How much do
they get paid?”, and “Are the workers treated fairly?”
Regulatory, Legal, and Political trends
The United States Federal Communication Commission (FCC)provides technology manufacturers
with certificates and product verifications to ensure goods are safe and legal for public
consumption. Specifically, headphones or personal audio devices are regulated through various
administrative offices that provide production oversight at the federal level.
Headphone manufacturers who import their audio technology into the US must follow US code
8518.30.2000. Specific to 3D audio technology, this code requires that your product is registered
with the FCC and must be tested and certified by an authorized testing facility. In addition to
registration and testing, manufacturers are levied fees per their shipment size, device type, and
status at customs. Once these items have been reviewed and approved, companies are able to
enter the consumer market.
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The Occupational Safety and Health Administration (OSHA) instruct employers on how to safely
use headphones in the workplace. Headphone use in the workplace can either reduce and
eliminate noise or provide transmittable audio to the employee. OSHA Regulations (Standard –
29 CFR) part 1910 “…recommends all worker exposures to noise should be controlled below a
level equivalent to 85 decibels (dB) for eight hours to minimize occupational noise induced
hearing loss.” This recommendation could impact headphone manufacturers, causing them to
ensure devices are suitable for commercial consumption in office environments.
The US government has implemented the Buy Quiet program that assists employers with
purchasing quieter office equipment as well as urging manufacturers to design quieter
equipment to help reduce hearing loss. On the contrary, most indoor or individual regulation of
audio devices is maintained at the state or local level. The US government does not provide
funding to support the enforcement of excessivenoisecausedby individuals or their useof audio
devices.
Competitive Trends
The headphone industry experiences growth on a daily basis, so it’s key to ask questions like,
“Which gaming headphones will provide the best advantage over opponents?” or “Which
headphones will make every game an immersive experience?”. The only reasons for using
headphones while gaming is to have a more immersive experience, be portable while playing
games on a mobile device, or be respectful of others when trying to play during quieter hours of
the day.
Consumers primarily buy headphones for listening to music, but the gaming sector is another
large market that isn’t as obvious. People that use headphones for gaming makes up a $19 billion
global sector. The following charts show data on the usage of headphones both globally and in
the US.
Chart 12
AGE About once a week Several times a week Almost every day Every day(less than 9 hours)
ALL 6 13 22 21
16-19 1 12 31 37
20-29 7 15 25 25
US 7 11 20 22
16-19 0 7 33 33
20-29 8 0 23 28
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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Chart 13
OSSIC’s competitors include industry giants like Beats by Dr. Dre, Audio-Technica, JVC,
Sennheiser, Sony, Panasonic, Bose, and Klipcsh. Beats currently offer the most expensive and
most highlydesired wireless headphones in the headphone industry. The audio company's lower-
case‘b’ on the earpiece is ubiquitous of listeners across the country, seenon celebrities LilWayne
at a Lakers game, Katie Holmes on a movie set, and college students around the US. (Leopold)
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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Chart 14
Source: (Richter)
The above chart shows the preferred headphone brand among US teenagers from spring 2013
to spring 2014. The study used a population of 7,500 teenagers with an average age of 16.4.
Results show that Beats is the most popular brand among the tested population with a 45.6 to
46.1% chance of purchasing Beats as their next pair of headphones. (Richter)
Per the NPD Group, a marketing research company, Beats controls 27% of the $1.8 billion
headphone market and 57% of the market for “premium” headphones that cost $99 and above.
On-the-ear or over-the-ear Beats retail between $200 and $400. listeners easily spend as much
on the headphones as they do on their music playing device.
Beats have been criticized for being a bass-heavy fashion accessory not up to the kind of high-
quality audio sound they promote. They target customers with an aggressive marketing strategy
despite not having studio sound quality. Their value proposition leans towards fashion with
features like color schemes to fit a customer’s personality, and premium materials to convey a
premium product feel.
Beats has expanded the market for premium headphones as witnessed by the countless
headphone makers jockeying for space at the International Consumer Electronics Show (CES).
Apple could capitalize on this market growth with the distinctiveness of their recently launched
wireless Airpods. This market expansion from Beats was brilliant because it adjusted what is
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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“normal” pricing for a pair of premium quality headphones. It used to be that $250 was
expensive, but now that's just the norm with $400 being the upper end of product offerings.
Chart 15
The chart above shows a consumer perceptions chart for headphone brands in regards to price,
technical focus, and fashion focus. Many of OSSIC’s major competitors appear on this chart
including Beats, Bose, Sony, and Audio-Technica. Since OSSIC has created an innovation to sound
quality, they would most likely sit in the upper left corner with Bose and Sony.
The Audio and Quality of Competitors
“Audiophile” is a term used to describe high fidelity sound reproduction enthusiasts, and they’re
always critical about sound quality. Since prices have increased, music lovers and audiophiles
have renewed their awareness of both audio quality and design. Since Apple and Beats have
teamed up, Beats headphones have put more focus into their audio quality and they are available
for testing at all Apple store locations. As shown on the consumer perception chart, Beats is
premium headphone with a unique and fashionable design.
The value of competition
Beats competitors are now legion, and many have copied the Beats playbook in marketing their
headphones. There are headphones from 50 Cent, SMS, which alsohas a collaboration with Lucas
film, Bob Marley's estate, House of Marley, which promotes an enviro-friendly aesthetic, Quincy
Jones, manufactured by AKG, and Tony Bennett, by Koss.
Monster, which no longer manufactures Beats,has launched aline with the producer Swizz Beatz,
a Monster investor, called DNA. Though the headphone market may be slowing from its double-
digit growth of recent years, there's no sign of a crash. There continues to be an emphasis on
design and it’s expected that audio quality of headphones will improve in time.
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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Internal Analysis
Overall description of the business and product
OSSIC was founded in 2014 with the original name of “Sonic VR”. Their goal was to develop 3D
audio headphones that would bring the next step audio quality the mass market. The mission or
slogan of OSSIC is “Changing the way you hear the world”.
OSSIC X is the actual name for OSSIC’s first pair of headphones, and they are the world’s first 3D
audio headphone that instantly calibrates to the listener. This technology increases the listeners
sense of auditory space, and acoustically recreates the way people hear the world every day.
(OSSIC)
Management
OSSIC’s management team comprises 4 founding members who have jointly spent the last 50
years working with some of the best headphone development companies. Since OSSIC’s creation,
the management team has grown to its current total of 12 staff members.
Product
OSSIC X calibrates to the individual listener’s head and ear features, increasing overall sound
quality and ensuring the most accurate sound placement, making for a listening experience that’s
ten times more immersive than current technologies (OSSIC)
● Increased audio immersion
● Hear your movies and music like you’re there in the action
● Increased sense of spatial awareness with your audio content
Chart 16
Source: www.ossic.com
Picture 1
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This image shows an early stage prototype of
what the final OSSIC X headphones will look
like. The final product has a sleek, black finish
and adjustable, large, over-the-ear phones
that calibrate to the listener’s anatomy for the
highest quality, immersive audio experience.
(OSSIC)
Instant Calibration
OSSIC’s calibration process starts as soon as the listener puts the headphones on their ears. Data
gathered from the headphones is instantly paired with its smart algorithms to determine
accurate sound playback based on the listener’s anatomy and head position. (OSSIC)
Chart 17
Source: www.ossic.com
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OSSIC is Different
Chart 18
(OSSIC)
 Anatomy Calibration: Instantaneously enable a listening experience that’s unique to every
individual. OSSIC X does this on its own, so no additional step need to be taken
 Integrated Head Tracking: Sounds remain relevant to everyone’s location in space,
allowing a heightened sense of presence and accurate placement of sound sources.
 Multi-Driver system: Eight individual drivers work in tandem to direct sound to the correct
portion of the listener’s ear, allowing sound to interact with the ear just like it would in
real life
 Traditional headphones don’t consider the listener’s anatomy. This makes for an
incredibly insignificant listening experience. In this traditional experience, sound remains
close to the listener’s head rather than around the listener’s head. This leads to and
inaccurate ability to place sounds in space, and a degradation in overall sound quality.
Benefits of OSSIC 3D Audio
Audio is a crucialpart of the way people experience content. By implementing accurate 3D audio,
any content can take the listener to new places by improving the following:
OSSIC X for Virtual Reality (VR)
In VR, sound is key. With accurate 3D sound, this product can give a sense of space and direct a
listener’s attention to elements outside of their field of view. Listeners will experience sound
more realistically, which will provide a more immersive experience:
 Drastically improved sound localization
 Increased sense of presence and spatial awareness
 Accurately rendering of sound in X, Y, and Z coordinates of space
OSSIC X for Gaming
Having accurate sound in gaming can make or break the experience. It’s important to create an
experience that allows the listener to understand what’s going on in the space of the game;
especially in the space that they can’t see.
 Immerse people in the game
 Accurately position sounds for a competitive advantage
 Boom-less mic for continued audio communication
Marketing Plan & Overview: OSSIC 3D Audio Headphones
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OSSIC X for Movies
Imagine being able to watch any movie on the best speaker setup money can buy. All from the
comfort of your own home.
 Enjoy any movie theater audio experience like you’re in the action
OSSIC X for Music
OSSIC changes the way people listen to music. Imagine being able to listen to any song from your
collection on the best speaker setup money can buy. It’s like experiencing a concert from the best
seats in a professional concert hall
 Replicate the ideal listening room or speaker setup
 Hear your music exactly how the artist intended
Chart 19
This image above showcases the OSSIC Facebook webpage. OSSIC has been rated the “Best of
Innovation Honoree” by the Consumer Electronics Show (CES) 2017. The page has over 40,000
likes and it’s their go to spot for the latest photos, videos, company information, updates, and
events related to OSSIC. OSSIC posts to their Facebook page daily.
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Chart 20
(OSSIC)
The image above showcases a screengrab taken from OSSIC’s Kickstarter campaign on
Kickstarter.com. The image shows all the major tech and business publications that have
featured news about OSSIC and its new OSSIC X headphones.
Sales & Distribution
The company has offered pre-orders on Kickstarter.com in exchange for monetary donations to
get the company up and running. Direct sales are also available at OSSIC.com and there’s a 30-
day pre-order refund. Right now, customers can save $200 for pre-ordering a pair of OSSIC X
headphones and the total retail price of the headphone will be set at $499. The main distribution
channel of the headphones is online ordering through Kickstarter.com and OSSIC.com. After a lot
of production setup from an extremely high amount of pre-orders, OSSIC is shipping their first
batch of headphones by January 2017.
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Manufacturing and Research & Development
The 3D audio naturally replicates the way people hear the world every day, with measurable
results (OSSIC) This is done with two types of testing:
Physics-Based Testing
Acoustical, physics-based testing. With a microphone in the ear, the following chart shows that
3D headphones reproduce the same signal as a real sound in space compared to a gaming
headphone.
Chart 21
(OSSIC)
People-Based Testing
Developers asked testers to map out where they think sounds were coming from while wearing
the OSSIC X headphones. Then, they compared the tester maps to where sounds actually came
from. The following chart proves that OSSIC X places sound at the right angle and depth and the
gaming headphone does not (OSSIC)
Chart 22
(OSSIC)
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OSSIC developed 9 generations of prototypes and numerous acoustic tests to innovate their 3D
headphones. The following pictures illustrate the testing and prototype development process.
Chart 23
(OSSIC)
Chart 24
(OSSIC)
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Sentiment Analysis
The purpose of a sentiment analysis is to examine customers’ opinions and feelings towards a
product. In this case,the analysis was done for OSSIC’s new headphones by compiling 427 tweets
from the Twitter mobile application and using the keyword OSSIC.
Chart 25
This image above showcases OSSIC’s twitter page. OSSIC currently has over 6,300 followers, they
have tweeted more than 3,500 times, and they tweet on a daily basis.
Top 3 Favorited Tweets
1. “Pre-orders are LIVE NOW! Enlist in the #3daudio army and join the #ossic revolution!”.
2. “#3DAudio & #SoundDesign time Tony & Olivier award winner/nominee, Gareth Owen”.
3. “Interview w/ Jon Eades on the future of #Audio @AbbeyRoad @AbbeyRoadRed”
After conducting the sentiment analysis on R-Studio package, a sentiment score was created for
every tweet based on the positive and negative opinions towards OSSIC. The top 3 tweets with
the most positive score are mentioned below and the positive words are underlined:
1. “#OSSICX wins @PopSci '16 Grand Award for Best New #Tech in #Entertainment
#3daudio #Headphones for the best” (Sentiment Score: 5)
2. “Pleased to announce that the OSSIC X has been chosen as the 'CES 2017 BEST OF
INNOVATION AWARD HONOREE” (Sentiment Score: 4)
3. “#OSSICX #Headphones win Grand #Award for Best New #Entertainment #Tech”
(Sentiment Score: 4)
On the other hand, there were also some tweets which had negative scores. The top 2 tweets
with negative scores are mentioned below and the negative words are underlined:
1. “HereThey Lie' #trailer is a frightening glimpse at #PlayStationVR #Horror #VirtualReality”
(Sentiment Score: -2)
Marketing Plan & Overview: OSSIC 3D Audio Headphones
27
2. “@malic3tv @PlayOverwatch pub match; went up against 3 #symmetras and 3 #torb
premade and lost my mind in rage” (Sentiment Score: -2)
Competitive Analysis
Based on the analysis of headphone industry and competitive trends, we have identified the
Beats by Dr. Dre and Bose as main competitors of OSSIC.
OSSIC Beats Bose
Number ofEmployees 12 - 700 (2014)
- 500 (after Applelayoffs)
11,700
Total SalesRevenue NIL $1.5 Billion(2013) $3.5 Billion(2015)
Market Share Product shipping will
start by 20th October
2016
Beats controls 27% of the $1.8
billion headphone market and
57% of the market for
“premium” headphones, ones
that cost $99 or more. On-the-
ear or over-the-ear Beats retail
from about $200 to $400.
NPD Group estimated that Bose
has a 22 percent marketshare.
Marketing Strategy
- What is the competitor’s overall
differentiation?
- How do they position themselves in the
marketplace?
- $2.7 MillionFunded
on Kickstarter
project.
- They stilldon’t have
a market position
yet.
- Headphones that allowuserto
hear allthemusic.Dr. Dre: “hear
what the artists hear, and listen
to the music the way they
should: theway I do." -Beats
offers customization. Positioned
as high-end
-Bose: “Better Sound Through
Research”
-A more subtleand soft visual
marketing strategy compared
to Beats which says “Sound,
Attitude, Culture”
-Old history &One ofPioneer
leaders
Target Market(s)
- Who is the competitor’s primary target
audience?
- How would you describethemin terms of
their demographics and psychographics?
- Audiophiles from Age
15-35,
- High- Income,
- High socialstatus
- Generation Y&Z
- i-Generation& Millennials are
primary target audience
- People going to the gymand
fans ofthe celebrities that
endorsethem,NBAfans
(custom perteam)
-Global market,
-Average to highincome
-People in theages of12-45,
especially youngergeneration
- Baby boomers to gen X
Product Strategy
- What is the competition selling?
- How would you describetheir products in
terms of features and benefits?
- Unique new3D
sound, Multi-driver
to provide accurate
direction ofthe
sound.
- No customizations
and color options
available.
- Sony, Bose andPhillips sell
similarly priced headphones
with better technical
performancebut Beats has a
unique visualdesign that
appeals to thetarget market.
- Reputationfor highquality
products
- ‘Quiet Comfort’ & ‘Stay Hear’
Technology
Channel Strategy
- Where can thecompetitor’s target
audience buy their products?
- Does the competitor have any
competitive strengths/weaknesses when
it comes totheirchannel? Where arethey
vulnerable?
- Kickstarter.com
- OSSIC.com
- No e-commerce and
retails store sales.
-Beats are sold online andby
many authorizedretailers in US.
- SelectiveDistributionStrategy
-125 retail stores (Factory
outlets, Airportkiosks,Personal
audio stores, Showcasestores)
-E-Commerce: Online channels
such as BestBuy, eBay, and
Amazon
Pricing Strategy
- What does thecompetitor chargefor their
product(s)?
- Does the competitor have any
competitive strengths/weaknesses when
it comes totheirprice? Whereare they
vulnerable?
- Priced higherthan
the competitorat
$500.
- The other 2
competitors are
priced lowerand
OSSIC fails to reach
this target at this
point.
-$200-$400 for over-ear
headphones
-Beats are higher pricethan
other headphones
- Wireless headphone:
$200-350
-Competitivepricing
Positioning & Advertising Strategy -Kickstarter project
-Word ofmouth
- High brandawareness through
celebrity endorsements
-Advertising throughsocial
media channels
Marketing Plan & Overview: OSSIC 3D Audio Headphones
28
- How does thecompetitor informtheir
target audienceabouttheirproducts and
the product’s benefits?
- Does the competitor have any
competitive strengths/weaknesses when
it comes totheirmarketing
communications? Where arethey
vulnerable?
-Digital marketing
-Gamers
- Online advertising andlimited
television
-Vulnerableto rising public
perceptionoflow technical
performance
- Offering specialdeals
- Implementing Marketing Mix
strategy
SWOT Analysis
Internal Factors
(Core Competencies)
Strengths Weaknesses
Management
A smaller management team allows
for greater flexibility in decision
making, and ensures focus on core
operations and product values.
It’s difficultfor a smaller,less experienced
team to maintain work levels and growth to
compete with larger brands.
Marketing
Superior product design and audio
quality attracts hard coregamers,
audiophiles and early adopters of
new technology
No expert marketers on staff to support. As a
new technology, OSSIC doesn’t have strong
brand recognition.
Channel
Kickstarter and website presales
make preorders easily accessibleand
affordableto audiophiles,gamers,
and e-consumers.
Limited distribution. Physical storesales,as
well as through third party audio giants would
supportgreater exposure and an increased
market share.
R&D
OSSIC’s 3D sound is new technology
to the audio industry and will
redefine the standard in premium
sound quality.
Continued audio development may be
extremely costly for OSSIC. It may also take
extended time to perfect the tech and bringit
to market.
Product Offerings
Preorders through Kickstarter and the
OSSIC website let customers
purchaseata discountfrom retail of
$499.
Too costly and lacks marketshareand brand
awareness to support the premium price.
Product sizeisn’thelpful for portability.
Sales
Launchinga Kickstarter campaign
builtbrand awareness and pre-order
sales in a very short time. The
campaign exceeded their $100,000
goal by more than 27 times.
Delivery times are extremely longafter pre-
order purchaseis made.
Manufacturing Costly.Not effective for mass production.
Marketing Plan & Overview: OSSIC 3D Audio Headphones
29
External
Factors
(Industry
Situation)
Opportunities Threats
Economic 3D audio is an innovation to the audio and
headphone industry.This innovativetechnology
is disruptiveand has potential to steal
significantmarketsharesoon, as well as define
the industry trends goingforward.
Premium pricingreduces affordability.Being a
new brand in the headphone industry with no
track record or bigname partnerships could
be hard to secure market share.Although new
and novel, OSSIC could be overrated not
worth the cost
Competition OSSIC is a firstmover with its 3D audio and has
no direct competition now. There is potential to
partner with virtual reality companies to sell
bundled products
Other industry leaders such as Beats,
Monster, Bose, etc. have the resources to
create their own version of 3D audio
technology at a lower pricepoint. They also
hold strong brand loyalty.
Demographic OSSIC can easily targetestablished segments
that already own or might purchasepremium,
over-the-ear, headphones. OSSIC’s technology
can also betargeted towards gamers and
audiophiles.
Market leaders such as Beats and Bose
already havelargemarket shareand strongly
know their target markets. Strong competition
in the headphone industry makes it difficultto
acquiremarket share.
Technology In an industry that hasn’thad much innovation
sinceHD sound, 3D audio introduces a whole
new level of audio quality.This technology has
the potential to become the new norm in audio
quality.
Like HDDVD vs. Blu-ray;3D audio is a novel
innovation,but might not be accepted by the
audio / headphone industry as the new
mainstreamtechnology for all future
headphones.
Regulatory OSSIC is free to develop its products with
minimal legal or regulatory hurdles.There are
few if any laws / regulations that restrictthe
advancement of audio quality
Larger competitors may have patents related
to 3D audio,which could causeproblems for
OSSIC.
Industry 3D audio is a new technological advancement in
sound quality that the audio and headphone
industry can capitalizeon through sales of
advanced products. This will lead to continued
industry growth.
Other technological advancements in sound
quality could beintroduced and take
momentum away from 3D audio.
As shown in the tables above, OSSIC has some pretty significant strengths and weaknesses.
OSSIC’s biggest strength is that they are the first mover on a huge technological advancement in
audio quality. OSSIC has achieved true spatial awareness in audio technology and it can redefine
the norm of quality in the audio industry. Currently, OSSIC’s biggest weakness is their ability to
fill orders. Their initial goal on Kickstarter was $100,000, but they raised $2.7 million, which
overloaded their ability to ship their headphones to customers that pre-order the headphones.
Scaling production will need to become a major focus to guarantee success. For opportunities,
OSSIC is capitalizing on being a first mover on their spatial audio technology. There are no other
direct competitors now and it may take a while for industry giants to create their own version of
this new technological advancement. At the same time, this opportunity can also double as a
threat. OSSIC is the first one to bring their technology to market, but industry leaders can
leverage their resources and market share to overtake OSSIC in the future.
Marketing Plan & Overview: OSSIC 3D Audio Headphones
30
Target Market
The primary market for OSSIC X is gamers in the US. Per Mintel research, the gaming industry will
continue growing and the gaming will be one of the most popular hobbies. Among the global
gaming market, the US employs over 146,000 people within the computer and video gaming
industry with an average annual salary of $94,747. Top notch, AAA, Gaming studios are located
across the entire US and focus on creating engaging, interactive software that meets consumer
demands. In the gaming industry, the US is the second largestcountry for revenues and the latest
Global Games Market Report shows expected total revenues for 2016 to be $ 23.6 billion.
(Mintel)
PrimaryTargetMarket: Gamers
Demographic Description
Educational Level - High School Students
- Students at Undergraduate and Graduate Schools
- Adults with undergraduate or graduate degrees
Age - iGeneration, 2-19 years’ old
- Millennials, 18-34 years’ old
Gender Both Male and female
Social Status -Middle, upper middle, and upper class incomes
-Working class
-Ethnically diverse
-Parents
Occupation(s) Students, tech industry, computer programmers, gaming industry, music
industry, video production industry
Psychographic Description
Activities - Listening to music for at least 2 to 3 hours a day.
- Online and offline gamers (FPS, RPG, MMORPG, RTS, E-sport)
Media Choices - Computers, game consoles, streaming, movies, music, podcasts,
meditation
Life Style Description - Weekly TV usage is 13-14 hours
- Top dailyusedsocialmediasitesare Facebook,YouTube,Instagram,and
Twitter
- The average gamer is between 23-30 years old and plays 12 hours per
week
Other product purchases Beats, Audio-Technica, Bose, Klipsch, Shure, Sennheiser, Sony, Philips
Motivations -Possession of latest gaming and audio technology
Marketing Plan & Overview: OSSIC 3D Audio Headphones
31
(ideals, goals, passions) -Productsthatofferthehighestqualityandperformance ingaming,video,
and audio
-Prefer technology, diversity and fun
Identifying needs and wants of Target market
Target Market Needs Target Market Wants
- Prestige among peers
- Enhanced gaming experience
- Virtual 5.1 or 7.1 soundin a portable package
- Technological advancements
-Precision, motion and head movement tracking sound
production
-Headphones compatible with Virtual reality devices
-Noise cancellationfeatureforbetterlisteningexperience
(Grand View Research)
-Light weight and easy portable headphones
The Gaming Industry Overview
The reason OSSIC should target gamers is that the global gaming industry is almost equal to the
movie industry. The global gamers market which reached $99.6 Billion in august 2016 where E-
sport generated around 25% and of the share. US gameindustry forecastto grow by 30% to $19.6
Billionby 2019. It has increased by 8.5% compared to 2015.For the first-time Mobile gaming takes
a larger share than PC gaming with $36.9 Billion, up by 21.3% globally. The major contribution to
the global gaming sector is Asia-Pacific which consumes approximately half of the Gaming
industry.
Chart 26
Source: (NewZoo)
Marketing Plan & Overview: OSSIC 3D Audio Headphones
32
Demographics
 63% of U.S. households surveyed include at least one frequent gamer
 65% of homes own a video game-playing device, while 48 percent own "a dedicated game
console."
 47% of gamers are between 18 and 49 years old
 The average guy who plays games is 35; the average woman is 44
 59% of those who play games on a regular basis are men; 41 percent are women
 The average gamer has been playing video games for 13 years
(Frank)
Chart 27
Source: (NewZoo)
Buying habits
● The average "frequent game purchaser" is 38 years old.
● 60% of those who buy games most often are men, while the remaining 40% are women.
● 41% of regular buyers pick up new games without trying them beforehand.
(Frank)
Target Market
“Gamers” in the United States
● 10% of US adult population “hard core” gamers
● 77% of men age 18-29 play video games
● 57% of women age 18-29 play video games
● 70% of college students play video games
(Frank)
Marketing Plan & Overview: OSSIC 3D Audio Headphones
33
VR and E-sports
● Half of the respondents are familiar with E-sports. 45% of those who follow E-sports do
so through social media
● 55% of frequent gamers are aware of virtual reality headsets, and 40 percent claimed
they were likely to purchase a VR system within the next 12 months
(Frank)
Value Proposition
To add a revolutionary new 3D audio element to a rapidly growing gaming industry.
Benefits Valued
OSSIC X will provide the most accurate and immersive 3D audio experience to customers.
Benefits Not Offered
No Customizations, no color options, Not priced cheap or at the average headphone market
price.
Price Range
Price ranging from $300 currently while pre-ordering it. Once it’s totally established and meet
the market demand, it’ll be priced at $499 with free shipping. Only available on www.ossic.com
ValueProposition Statement
OSSIC X is the world’s first headphone that instantly calibrates to the listener, increasing the
sense of auditory space, and acoustically recreating the way you hear the world for the most
accurate and immersive 3D audio experience.
Marketing Plan & Overview: OSSIC 3D Audio Headphones
34
Branding & Positioning
Brand Positioning Statement
To Gamers and Audiophiles, OSSIC is the brand of premium, Over-ear, Headphones that provides
the next evolutionary step in audio quality because our 3D audio technology makes it feel like
everything is happening around you in the moment.
Brand ImageCollage
Our “Brand Image Collage” using key words, images, and expressions that embody the premium
quality, advanced technology, and innovation that OSSIC brings to the audio industry. Descriptors
include Lab tests; More energy & more confidence, Integrity, A whole new attitude, Unlimited
Music, Share Joy, why not have it all? Essential Gear, Gadgets That Electrify, as well as BMW and
its slogan, “The Ultimate Driving Machine”, as symbolism for OSSIC’s ultimate audio solution.
Marketing Plan & Overview: OSSIC 3D Audio Headphones
35
Marketing Objectives
OSSIC’s marketing objectives span a 3-year period and are aimed at increasing overall market
share amongst gaming and audiophile consumers. The strategies employed are aligned to
increase brand awareness through experiential marketing tactics, growth in distribution
channels, and the development of quality products that emphasize consumer customization.
No Objectives Year 1 Year 2 Year 3
1 Create and increase brandawareness
amongthe gamingandaudiophile
communitytocapture marketshare of 5%
in‘GamingHeadsetIndustry’inUS within
3 years
Capture market
share of 1%
Capture market
share of 3%
Capture market
share of 5%
2 Increase numberof distributionchannels
by 30% throughe-commerce andretail
Increase number
of distribution
channelsby10%
Increase number
of distribution
channelsby10%
Increase number
of distribution
channelsby10%
3 Increase customersatisfactionwith
increasedproductofferingsandservice
Improve customer
service and
extendproduct
warranty
OfferMultiple
coloroptionsand
customization
Buildoutof
product
accessories
Strategy & Tactics
Strategy1: Build awareness
Create and increase brandawarenessamongthe gamingandaudiophile communitytocapture market
share of 5% in‘GamingHeadsetIndustry’inUS within3 years.
Tactics:
● Buy Advertising space for videos, banner ads, and utilizing search engine optimization to
target potential customers. OSSIC already posts to multiple social media platforms daily
including Facebook and Twitter. Going forward, they can put more effort into more
engagement with their community. As delivery dates on product shipments get closer,OSSIC
will increase their posting frequency to increase excitement of deliveries as well as capture
customer reactions. Another important area to focus on here is OSSIC’s Instagramaccount.
OSSIC currently has 124 posts and 1,217 followers, but this is significantly lower than
competitors like Bosewho has 935 posts and 248,000 followers. Posts that seemto be highly
effective on Instagram include lifestyle photos that show an active lifestyle as well as the
product. Since OSSIC is focused on gamers and audiophiles, their Instagram images should
feature people using their headphones and gaming images.
● We will ship a new pair of headphones to YouTube product review and unboxing channels
like TechnoBuffalo, Jonathan Morrison, and Unbox therapy. These channels have millions of
subscribers, soit willbe extremely helpful in building awareness of the OSSIC brand. We also
Marketing Plan & Overview: OSSIC 3D Audio Headphones
36
plan to develop press releases that willbe sent to popular video game and technology media
sources like CNET, TechRadar, IGN, Wired, and Audiophilia.
● OSSIC will attend major E-Sports events, gaming and technology conventions, and use booth
spaces at game shop and retail stores to provide live demos. More than 40 million people
attend these types of event every year and the attendance rates continue to grow. Booth
space at these events is a great way to show the premium feel and image that OSSIC
embodies. Testers can experience audio simulations and participate in video testimonials to
boost awareness.
● We willcreate marketing campaigns with sponsored E-Sports players who will endorse OSSIC
products in the videos, as well as web and print content that features them. Campaign
content will be promoted through press release outlets, social media, as well as gaming and
technology events and conventions
Strategy2: Expand Distribution & Partnershipsand Increase Loyalty
Increase numberof distributionchannelsby30% throughe-commerce andretail.
Tactics:
● OSSIC will make partnerships with stores like BestBuy as well as tech sections within Target
and Walmart to increase distribution across the US. The more shelf space the better. We’re
also looking to make partnerships with VR Device manufacturer to sell our products as a
bundle or within proximity of each other on store shelfs. Potential VR partners include Sony,
Oculus, NextVR.
● Over the next three years, we plan to open six OSSIC Experience retail stores in six major
urban around the US. These will consist of locations that are home to the largest population
of gamers and audiophiles. Locations may include Austin Texas, Salt Lake City Utah, San
Diego California, Los Angeles California, Denver Colorado, Washington DC, Houston Texas,
Las Vegas Nevada, San Francisco California, and Dallas-Ft. Worth Texas
● We would also like to develop a customer loyalty program for retail sales locations and on
the OSSIC website. This may include incentives like discounts and promotions for customer
loyalty. Discounts and promotions may include a dollar amount off closely related products
or accessories such as VR partners, OSSIC branded apparel, headphone accessories.
Strategy3: Improveproductquality & Customer Satisfaction
Increase customersatisfactionwithincreasedproductofferingsandservice.
Tactics:
● We will build out the OSSIC product offering with multiple factory color options, which will
compete with other industry leading brands like Beats. An extension to this is to create an
online page that allows customers to customize their headphones by creating their own
colors and even personalizing their headphones with laser etched designs and phrases.
● We will build a 24 hour online chats support system in addition to FAQ, and troubleshooting
pages on the OSSIC website should customers face any issues with their headphones.
● An additional extended product warranty willbe offered to customers who want to purchase
Marketing Plan & Overview: OSSIC 3D Audio Headphones
37
added protection for their new headphones. This warranty will cover any damages to the
headphones and will help customer get a new pair in a timely fashion.
● Additional product accessory lines will be buildout to cater to customer needs and
personality desires. These product line will include different sized ear fittings, cases,
pouches, extension cables, auxiliary cable adaptors.
Implementation Plan
To accomplish our Marketing Objectives, we developed 3-year implementation plan based on
our strategies and tactics. Some tactics will be implemented at all times, while others occur
around certain times of the year. Generating brand awareness through socialmedia and YouTube
product review channels is an around the clock effort, just like 24/7 customer service support,
and making partnerships with retail stores would be. On the other hand, attending E-sports event
and gaming and technology conventions are a seasonal or annual event.
No Activities
Year 1 Year 2 Year 3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1 Create and increase brand awareness among the
gaming and audiophile community within 3 years
to capture market share of 5% in ‘Gaming
Headset Industry’ in US
1.1 Buy Advertising space for videos, banner ads,
and utilizing search engine optimization to
target potential customers, Ship units to
YouTube product review and unboxing
channels like TechnoBuffalo, Jonathan
Morrison, and Unbox therapy. develop press
releasesandpitchthemtopopularvideogame
and technology media sources like CNET,
TechRadar, IGN, etc.
X X X X X X X X X X X X
1.2 Sponsor E-Sports events, gaming and
technology conventions, and booths at game
shops, retail stores with live demos. Testers
can experience audio simulations and
participate in video testimonials to boost
awareness.
X X X X X X
1.3 Create a marketing campaign with sponsored
E-Sports players who will endorse OSSIC
products. Campaign content will be promoted
through press release outlets, social media,
and gaming and technology events /
conventions
X X X X
Marketing Plan & Overview: OSSIC 3D Audio Headphones
38
2 Increase number of distribution channels through
e-commerce and Retail Stores
2.1 Partnerwithstoreslike BestBuyaswell astech
sectionswithinTargetandWalmarttoincrease
distribution across the US. Partner with a
Virtual Reality(VR) Devicemanufacturertosell
as a bundle ornear. Potential partnersinclude
Sony, Oculus, NextVR, etc.
X X X X X X X X
2.2 Over the next five years, open OSSIC
Experience retail stores in 10 major cities
around the US with the largest population of
gamersandaudiophiles.Locationsmayinclude
Los Angeles,NewYork,Chicago,SanFrancisco,
Miami, etc.
X X X X
2.3 Offer Customer loyalty program in retail
locations and on the OSSIC website. This may
include incentives like discounts and
promotions for customer loyalty
X
3 Increase customer satisfaction with increased
product offerings and service
3.1 Offer Multiple factory color options withlogo.
Also, offer Customization of colors and text
with laser etching
X X X X
3.2 Provide 24 hour online chats for customer
service and extended product warranty
X X X X
3.3 Buildout of product accessories to cater to
customerneeds.Thismaycome in the form of
different sized ear fittings, cases, pouches,
extensioncables,auxiliarycable adaptors,etc.
X X
Marketing Plan & Overview: OSSIC 3D Audio Headphones
39
Execution Plan
We have projected that executing on all strategies and tactics will take three years and cost
about $2 million per year. Some boxes have been listed with “N/A” because it will not bring
additional costs to OSSIC to complete those specific tactics.
No Action Timeline Budget
1 Product
1.1 Offer Multiplefactory color options with logo. Also,offer Customization of colors and text
with laser etching
1 Year $25,000
1.2 Provide24 hour onlinechats for customer serviceand extended product warranty 2 Months $200,000/
year
1.3 Buildoutof product accessories to cater to customer needs. This may come in the form of
different sized ear fittings,cases,pouches,extension cables,auxiliary cableadaptors, etc.
Available at
Launch
$25,000
2 Pricing
2.1 Offer Customer loyalty program in retail locations and on the OSSIC website. This may
include incentives like discounts and promotions for customer loyalty
1 Year N/A
3 Place/ Distribution
3.1 Partner with stores like BestBuy as well as tech sections within Target and Walmart to
increasedistribution acrosstheUS.Partner with a Virtual Reality (VR) Devicemanufacturer
to sell as a bundle or near. Potential partners include Sony, Oculus, NextVR, etc.
3 months N/A
3.2 Over the next five years,open OSSIC Experience retail stores in 10 major cities around the
US with the largest population of gamers and audiophiles. Locations may include Los
Angeles, New York, Chicago, San Francisco, Miami, etc.
2 Stores per
year
$330,000/year
/store $2.0
Million total
4 Promotion
4.1 Buy Advertising space for videos, banner ads, and utilizing search engine optimization to
target potential customers, Ship units to YouTube product review and unboxing channels
like TechnoBuffalo, Jonathan Morrison, and Unbox therapy. develop press releases and
pitch them to popular video game and technology media sources like CNET, TechRadar,
IGN, etc.
1 Month $947,965 for
year one
based on
Kickstarter
revenue
4.2 Sponsor E-Sports events, gaming and technology conventions,and booths at game shops,
retail stores with livedemos. Testers can experience audio simulations and participatein
video testimonials to boost awareness.
1 Month $150,000/
event
4.3 Create a marketing campaign with sponsored E-Sports players who will endorse OSSIC
products.Campaign content will bepromoted through press releaseoutlets, social media,
and gaming and technology events / conventions
2 Years $5,000/
sponsored
player plus
free
headphones
Marketing Plan & Overview: OSSIC 3D Audio Headphones
40
TOTAL COST 3 Years $2 Million /
year
Marketing Plan & Overview: OSSIC 3D Audio Headphones
41
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NewZoo. The Global Games Market Reaches $99.6 Billion in 2016, Mobile Generating 37%. 21
April 2016. 2 October 2016. <https://newzoo.com/insights/articles/global-games-
market-reaches-99-6-billion-2016-mobile-generating-37/>.
OSSIC. Hear an Entirely New Dimension of Sound. 23 February 2016. 27 November 2016.
<https://www.ossic.com/3d-audio/>.
Marketing Plan & Overview: OSSIC 3D Audio Headphones
42
—. OSSIC X: The first 3D audio headphones calibrated to you. 23 February 2016. 29 September
2016. <https://www.kickstarter.com/projects/248983394/ossic-x-the-first-3d-audio-
headphones-calibrated-t>.
Popat, Dhaval, et al. Bose Marketing Project. Market Analysis. San Francisco: Scribd.com, 2015.
Richter, Felix. U.S. Teens Love Beats Headphones. 8 May 2014. 29 September 2016.
<https://www.statista.com/chart/2227/preferred-headphone-brands-among-us-
teens/>.
Rohrer, Karl, Kate Pinard and Jeannine Aversa. National Income and Product Accounts Gross
Domestic Product: Third Quarter 2016 (Second Estimate) Corporate Profits: Third
Quarter 2016 (Preliminary Estimate). 29 November 2016. 11 December 2016.
<https://bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm>.
Trading Economics. United States GDP Growth Rate. 29 November 2016. 26 September 2016.
<http://www.tradingeconomics.com/united-states/gdp-growth>.
United States Census Bureau. Population and Housing Unit Estimates. 23 June 2016. 2 October
2016. <http://www.census.gov/popest/>.
Wiseman, Paul. IMF Downgrades outlook for US economy. 22 June 2016. 11 Decemeber 2016.
<http://bigstory.ap.org/article/f903f698319349919c7522f186ba5096/imf-downgrades-
outlook-us-economy>.

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OSSIC Marketing Plan

  • 1. Noah Wexler, Peter Deyo, Amogh Jeerige, Gantsetseg Myagmarjav, Jerome Jackson MKTG 761-02 MARKETING PLAN & OVERVIEW OSSIC: 3D AUDIO HEADPHONES
  • 2. Marketing Plan & Overview: OSSIC 3D Audio Headphones 2 Tableof Contents EXECUTIVE SUMMARY 5 THE MARKET 5 OSSIC 5 COMPETITION 5 FUTURE IMPLICATIONS 5 EXTERNAL ANALYSIS 6 HEADPHONE INDUSTRY OVERVIEW 6 INDUSTRY DEFINITION 6 INDUSTRY SIZE 6 INDUSTRY TRENDS 6 COMPETITORS: 7 INDUSTRY STANDARD 7 ECONOMIC TRENDS 7 U.S. EARBUD & HEADPHONE MARKET BY PRODUCT, 2012 - 2022 (USD MILLION) 8 TECHNOLOGICAL TRENDS 9 THE WORLD’S MOST ADVANCED HEADPHONES 9 DEMOGRAPHIC AND SOCIO-CULTURAL TRENDS 9 WE ARE GROWING OLDER 9 WE ARE GROWING MORE DIVERSE 10 THE YOUNGEST POPULATIONS ARE MOST DIVERSE 11 WOMEN ARE BECOMING BREADWINNERS 12 PRIMARY MARKETS 13 MILLENNIALS 13 IGENERATION 13 SHARE OF US POPULATION BY GENERATION,2016 14 THE ATLANTIC AND ASPEN VALUES POLL 14 ETHICAL ISSUES 14 REGULATORY, LEGAL, AND POLITICAL TRENDS 14 COMPETITIVE TRENDS 15 THE AUDIO AND QUALITY OF COMPETITORS 18 THE VALUE OF COMPETITION 18 INTERNAL ANALYSIS 19 OVERALL DESCRIPTION OF THE BUSINESS AND PRODUCT 19 MANAGEMENT 19 PRODUCT 19 INSTANT CALIBRATION 20 OSSIC IS DIFFERENT 21 BENEFITS OF OSSIC3D AUDIO 21 OSSICXFOR VIRTUAL REALITY (VR) 21 OSSICXFOR GAMING 21
  • 3. Marketing Plan & Overview: OSSIC 3D Audio Headphones 3 OSSICXFOR MOVIES 22 OSSICXFOR MUSIC 22 SALES & DISTRIBUTION 23 MANUFACTURING AND RESEARCH & DEVELOPMENT 24 PHYSICS-BASED TESTING 24 PEOPLE-BASED TESTING 24 SENTIMENT ANALYSIS 26 TOP 3 FAVORITED TWEETS 26 COMPETITIVE ANALYSIS 27 SWOT ANALYSIS 28 TARGET MARKET 30 PRIMARY TARGET MARKET:GAMERS 30 DEMOGRAPHIC DESCRIPTION 30 PSYCHOGRAPHIC DESCRIPTION 30 IDENTIFYING NEEDS AND WANTS OF TARGET MARKET 31 THE GAMING INDUSTRY OVERVIEW 31 DEMOGRAPHICS 32 BUYING HABITS 32 TARGET MARKET 32 VR AND E-SPORTS 33 VALUE PROPOSITION 33 BENEFITS VALUED 33 BENEFITS NOT OFFERED 33 PRICE RANGE 33 VALUE PROPOSITION STATEMENT 33 BRANDING & POSITIONING 34 BRAND POSITIONING STATEMENT 34 BRAND IMAGE COLLAGE 34 MARKETING OBJECTIVES 35 STRATEGY & TACTICS 35 STRATEGY 1: BUILD AWARENESS 35 TACTICS: 35 STRATEGY 2: EXPAND DISTRIBUTION & PARTNERSHIPS AND INCREASE LOYALTY 36 TACTICS: 36 STRATEGY 3: IMPROVE PRODUCT QUALITY & CUSTOMER SATISFACTION 36 TACTICS: 36 IMPLEMENTATION PLAN 37
  • 4. Marketing Plan & Overview: OSSIC 3D Audio Headphones 4 EXECUTION PLAN 39 WORKS CITED 41
  • 5. Marketing Plan & Overview: OSSIC 3D Audio Headphones 5 Executive Summary The Market Future trends indicate that custom-fit and functional audio equipment as emerging products in the growing headphones and earbuds consumer market. Consumers want products that can be used indoors, outdoors, on the go, while exercising, eating, or traveling. The headphone and earbud market has specifically seen large growth between years 2009 and 2014. Sales grew from $1 billion to $2.7 billion in 2014, at a compound annual growth rate of 22%. This growth can be attributed to the rising interest in premium priced over-the-ear headsets, as well as a shift away from portable audio products like wireless speakers or portable docking stations with speakers. OSSIC Utilizing the momentum of the growing headphone industry, we’ve identified OSSIC as the company we’d like to support and help develop their strategic marketing plan. OSSIC’s X headphones instantly calibrate to the listener’s ears, increasing the sense of auditory space and acoustically recreating the way people hear the world. Through use of advanced 3D audio algorithms, head-tracking, and individual anatomy calibration, OSSIC positions itself as the audio company who accurately delivers 3D sound to consumers. This innovative technology will bring audio and gaming to the next level. The OSSIC Kickstarter project started on February 23 2016, and, in less than 2.5 hours, received $100,000 dollars in funding. By April 21 2016, they acquired a total of $2.7 million with 10,000 backers to begin developing and commercializing their first 3D headphones. The company is currently shipping its first batch of headphones on October 3, 2016. Competition OSSIC currently has no direct competitors since their 3D audio technology is an innovation to the audio industry. However, major brands such as Bose, Sony, Panasonic, Beats, Audio-Technica, and Monster have the resources and power to develop their own version of 3D audio. Even with these industry giants, OSSIC has a unique positioning strategy that focuses on gamers and audiophiles. Their product will be able to effectively reach their target audiences and pull them away from the more prominent brands on the market. Consumers who love new tech and want the best quality product will have no hesitation in migrating to OSSIC. FutureImplications Overall, OSSIC has huge potential for growth and success. Sales will continue to come in from pre-orders and online sales, while brick and mortar locations come into the mix of things over time. Potential issues include growing too quickly and the company drowns under their own production, but this seems to be a small risk considering their high demand. Gamers and audiophiles are always looking for the next best thing, and OSSIC brings that to the table.
  • 6. Marketing Plan & Overview: OSSIC 3D Audio Headphones 6 External Analysis HeadphoneIndustry Overview Industry Definition Headphones and earbuds are categorized within the Mobile Phone and Tablet Accessories industry. Between 2009 to 2014, the sales of accessories for mobile devices has grown at a compound annual growth rate (CAGR) of 10.1%. This was a period where many adults had adopted their first smartphones and tablets. Specific products of focus in this industry include mobile and tablet cases, chargers, external batteries, headphones, portable docking stations, speakers, and Bluetooth speakers. The headphones and earbud market has specifically seen large growth between 2009 to 2014. Sales of these products has grown from $1.0 billion in 2009 to $2.7 billion in 2014, at a compound annual growth rate (CAGR)of 22%. The growth is attributed to a riseof interest in premium priced for over the ear headsets, as well as a shift away from portable audio products like wireless speakers or portable docking stations with speakers. There are several popular, premium priced, competitors including Bose, Beats, Sony, Monster, Klipsch, JBL,Audio-Technica, Razer, and JLab. However, Mintel forecasts that sales growth will be more limited as the market transitions from first-time purchases of smartphones and tablets to upgrades of smartphones and tablets. (Mintel) Industry Size As of 2014, the Mobile Phone and Tablet Accessories industry sits at a $8.5 billion valuation with expected growth between $1.8 to $4.7 billion by 2019. Mintel’s forecast an average expected growth, or CAGR of 3.3% from 2014 to 2019, and total sales rising to $10 billion. Headphones and earbuds have shown the most striking growth within the Mobile Phone and Tablet Accessories industry. Volume of sales has been on the rise as more consumers are also streaming music on their mobile devices. (Mintel) The top spenders in the Mobile Phone and Tablet Accessories industry are young adults age 25- 34 and men age 18-34. More than 20% of mobile phone and tablet accessory customers use headphones, earbuds, or wireless Bluetooth audio equipment, which accounts for upwards of $1.7 billion of industry sales. IndustryTrends In the Mobile Phone and Tablet accessories industry, awareness leads to preference. Mintel states that about 50% of all phone and tablet owners prefer to buy accessories from the same brand as their phone or tablet. In terms of what trends are currently working, awareness drives favorable preferences in consumer purchases. Many market leading brands such as Bose, OtterBox, JBL, and Beats are creating favorable awareness through television and other broad media campaigns. Brands with good awareness but smallfootprints likeLogitech and Kensington, also do well by extending partnerships or licensing agreements with third parties to leverage brand equity. Overall the Mobile Phone and Tablet Accessories industry will continue to grow,
  • 7. Marketing Plan & Overview: OSSIC 3D Audio Headphones 7 but at a slower rate. At this point, most consumers have adopted a smartphone or tablet and will only make small upgrades in the future. (Mintel) The biggest struggle in the Mobile Phone and Tablet Accessories industry is that most consumers are unwilling to pay a premium for a branded product. As an example, Mintel shows that a willingness to pay a premium for Bose accessories is at 33%, Beats at 17%, and JBL at 13%. (Mintel) Future trends forecast that custom-fit and activity specific headphones, as well as indestructibility is what consumers want. Consumers want mobile devices and accessories that are extremely versatile. They want products that can be used indoors, outdoors, on the go, while exercising, eating, or traveling. Per Mintel, upwards of 31% of mobile device owners report that they frequently drop their devices or accessories. Thus, more durable, “Military Grade”, protection can be expected to expand. (Mintel) Competitors: Beats, Bose, Sennheiser, JBL, Bowers & Wilkins, V-Moda, Sony, Definitive Technology, Philips, Samsung, Muzik, Klipsch, Pioneer, Monster, Audio-Technica and Audeze. Industry Standard Frequency response of a pair of headphones is a typically used as the baseline specification to demonstrate the quality of a pair of headphones. Industry standards have frequency responses of 15 - 28,000 (-3 decibels) where anything over 23,000Hz is a good sign. Per CNET, Sennheiser is an industry leading company that has developed 23 pairs of headphones over the last 22 years and is an industry standard. Economic Trends The target market of the ‘OSSIC’ 3D Audio headphone is the US economy. Per the of Economic Analysis, the growth of US gross domestic product (GDP) was 1.4% at the end of June, 2016, which is 0.9% down from the end of 2015 (Chart 1). Thus, there was a positive uptrend in the US economy through the second quarter of 2016 due to an increase of personal consumption expenditures, exports and nonresidential investment as stated by Trading Economics. For example, the purchase of US customer goods and services increased by 2.1% at the end of June, 2016 per the Bureau of Economic Analysis. (Rohrer, Pinard and Aversa)
  • 8. Marketing Plan & Overview: OSSIC 3D Audio Headphones 8 Chart 1 In addition, International Monetary Fund (IMF) forecasted that the US economic growth will be higher than other highly developed countries such as EU countries and Japan. Christine Lagarde, managing director of IMF, concluded that the US economy is in a good place as the unemployment rate dropped to 4.7% and 200,000 new jobs was created per month in 2015 (Wiseman) Per IBIS World report, the growth of headphone industry contribution to the US economy is estimated at 4.4% in 2010-2020, which is above the expected GDP growth of 2.5% for the country. IBIS World stated that the increase of consumer disposable income, net investment income of households and individuals, contributed to the sales in the headphone industry between 2010-2015. Also, industry revenue is projected to increase in the next 5 years due to the growth of smart phone usage and net income of individuals and households. (Trading Economics) (IBIS World) U.S. Earbud & Headphone Market by Product, 2012 - 2022 (USD Million) Chart 2 Source: (Grand View Research)
  • 9. Marketing Plan & Overview: OSSIC 3D Audio Headphones 9 In terms of revenue, the largest market is expected to be North America as indicated by Grand View Research. Moreover, the research forecasted that the US earbuds and headphones market will increase and reach over $5 billion by 2022 (Grand View Research) Technological Trends The World’sMost Advanced Headphones OSSIC X is the world’s first 3D audio headphone that instantly calibrates to the listener,increasing the sense of auditory space, and acoustically recreating the way people experience their music, games, and entertainment. OSSIC uses 3D audio algorithms with head-tracking and individual anatomy calibration to deliver incredibly accurate 3D sound. Therefore, people will experience high fidelity audio reproduction like never before. This innovation is the future of gaming and premium audio technology. OSSIC’s Kickstarter Project was started on February, 23 2016 and reached their funding goal of $100,000 in less than 2.5 hours. By the end of their funding period, OSSIC had accrued $2.7 million and 10,000 backers. Demographic and Socio-Cultural Trends We are Growing Older Many factors have led to the shift of demographics within the United States including: rising life expectancy, changing birth rates, and immigration. As a percentage of the population, people 65 and older are increasing – following the baby boomer generation. Chart 6
  • 10. Marketing Plan & Overview: OSSIC 3D Audio Headphones 10 We are Growing More Diverse The white population in the United States is aging and consistently making smaller contributions to the younger generations. Diversity is more prominent than ever within the US and it will continue to grow. Chart 7 Source: (United States Census Bureau)
  • 11. Marketing Plan & Overview: OSSIC 3D Audio Headphones 11 The Youngest Populations are Most Diverse The newest generation of people in the US are adopted the name, iGeneration. The most significant shift is seen by Hispanic origin. Nearly 25% of the iGeneration is Hispanic, compared to 18% of the overall population. This generation is most open-minded concerning issues of race, ethnicity, religion, or sexual orientation. iGen’s prefer brands that incorporate diversity and are aware of environmental issues and show increasing civic engagement. Single mothers support many iGenerations. (Mintel) Chart 8 (Mintel)
  • 12. Marketing Plan & Overview: OSSIC 3D Audio Headphones 12 Women are Becoming Breadwinners According the US Census, the 2016 median age of new moms has increased by 1.4 years since 2000 (24.9-26.3). New moms today are more decisive about their preferences because they have spent more time in the adult word than previous generations. (United States Census Bureau) Chart 9
  • 13. Marketing Plan & Overview: OSSIC 3D Audio Headphones 13 PrimaryMarkets Millennials and iGeneration will most likely become OSSIC’s primary markets both short and long term. Baby boomers and women won’t be neglected. However, their values seemto shift across the age groups. Millennials Aged 18-36 in 2016  The median income for younger millennials is $25k, while it’s almost double that ($48k) for older millennials  Preferred living environment includes urban areas and typically on the western side of the country.  Millennials comprise 24% of the US population (77 million individuals)  Top 10 markets include Austin Texas, Salt Lake City Utah, San Diego California, Los Angeles California, Denver Colorado, Washington DC, Houston Texas, Las Vegas Nevada, San Francisco California, and Dallas-Ft. Worth Texas (MarketingCharts) iGeneration Aged 9-21 in 2016. ● The most recent generation, iGens, are just entering adulthood and beginning to push Millennials out of the key 18-34 age bracket. ● Few iGens are living on their own now but over the next five years they will become a key consumer segment ● iGens are culturally more diverse than earlier generations (Mintel) Chart 10 (Mintel)
  • 14. Marketing Plan & Overview: OSSIC 3D Audio Headphones 14 Share of US Population by Generation, 2016 Millennials currently make up 25% of the US population, just ahead of Baby Boomers. This group will grow in dominance of the consumer market as Boomers decline. Chart 11 (Mintel) The Atlantic and Aspen Values poll The country is shifting to a more liberal stance on social issues (gay-marriage, civil rights) but becoming more economically conservative – this will shift with Millennials and iGens. These trends occur evenly over all groups but the larger population groups will have more influence. Ethical Issues The United States population is increasingly aware of many social and environmental issues. Especially where headphones are manufactured. Questions frequently come up like, “Who benefits the most?”, “What is the carbon footprint?”, “Who assembles them?”, “How much do they get paid?”, and “Are the workers treated fairly?” Regulatory, Legal, and Political trends The United States Federal Communication Commission (FCC)provides technology manufacturers with certificates and product verifications to ensure goods are safe and legal for public consumption. Specifically, headphones or personal audio devices are regulated through various administrative offices that provide production oversight at the federal level. Headphone manufacturers who import their audio technology into the US must follow US code 8518.30.2000. Specific to 3D audio technology, this code requires that your product is registered with the FCC and must be tested and certified by an authorized testing facility. In addition to registration and testing, manufacturers are levied fees per their shipment size, device type, and status at customs. Once these items have been reviewed and approved, companies are able to enter the consumer market.
  • 15. Marketing Plan & Overview: OSSIC 3D Audio Headphones 15 The Occupational Safety and Health Administration (OSHA) instruct employers on how to safely use headphones in the workplace. Headphone use in the workplace can either reduce and eliminate noise or provide transmittable audio to the employee. OSHA Regulations (Standard – 29 CFR) part 1910 “…recommends all worker exposures to noise should be controlled below a level equivalent to 85 decibels (dB) for eight hours to minimize occupational noise induced hearing loss.” This recommendation could impact headphone manufacturers, causing them to ensure devices are suitable for commercial consumption in office environments. The US government has implemented the Buy Quiet program that assists employers with purchasing quieter office equipment as well as urging manufacturers to design quieter equipment to help reduce hearing loss. On the contrary, most indoor or individual regulation of audio devices is maintained at the state or local level. The US government does not provide funding to support the enforcement of excessivenoisecausedby individuals or their useof audio devices. Competitive Trends The headphone industry experiences growth on a daily basis, so it’s key to ask questions like, “Which gaming headphones will provide the best advantage over opponents?” or “Which headphones will make every game an immersive experience?”. The only reasons for using headphones while gaming is to have a more immersive experience, be portable while playing games on a mobile device, or be respectful of others when trying to play during quieter hours of the day. Consumers primarily buy headphones for listening to music, but the gaming sector is another large market that isn’t as obvious. People that use headphones for gaming makes up a $19 billion global sector. The following charts show data on the usage of headphones both globally and in the US. Chart 12 AGE About once a week Several times a week Almost every day Every day(less than 9 hours) ALL 6 13 22 21 16-19 1 12 31 37 20-29 7 15 25 25 US 7 11 20 22 16-19 0 7 33 33 20-29 8 0 23 28
  • 16. Marketing Plan & Overview: OSSIC 3D Audio Headphones 16 Chart 13 OSSIC’s competitors include industry giants like Beats by Dr. Dre, Audio-Technica, JVC, Sennheiser, Sony, Panasonic, Bose, and Klipcsh. Beats currently offer the most expensive and most highlydesired wireless headphones in the headphone industry. The audio company's lower- case‘b’ on the earpiece is ubiquitous of listeners across the country, seenon celebrities LilWayne at a Lakers game, Katie Holmes on a movie set, and college students around the US. (Leopold)
  • 17. Marketing Plan & Overview: OSSIC 3D Audio Headphones 17 Chart 14 Source: (Richter) The above chart shows the preferred headphone brand among US teenagers from spring 2013 to spring 2014. The study used a population of 7,500 teenagers with an average age of 16.4. Results show that Beats is the most popular brand among the tested population with a 45.6 to 46.1% chance of purchasing Beats as their next pair of headphones. (Richter) Per the NPD Group, a marketing research company, Beats controls 27% of the $1.8 billion headphone market and 57% of the market for “premium” headphones that cost $99 and above. On-the-ear or over-the-ear Beats retail between $200 and $400. listeners easily spend as much on the headphones as they do on their music playing device. Beats have been criticized for being a bass-heavy fashion accessory not up to the kind of high- quality audio sound they promote. They target customers with an aggressive marketing strategy despite not having studio sound quality. Their value proposition leans towards fashion with features like color schemes to fit a customer’s personality, and premium materials to convey a premium product feel. Beats has expanded the market for premium headphones as witnessed by the countless headphone makers jockeying for space at the International Consumer Electronics Show (CES). Apple could capitalize on this market growth with the distinctiveness of their recently launched wireless Airpods. This market expansion from Beats was brilliant because it adjusted what is
  • 18. Marketing Plan & Overview: OSSIC 3D Audio Headphones 18 “normal” pricing for a pair of premium quality headphones. It used to be that $250 was expensive, but now that's just the norm with $400 being the upper end of product offerings. Chart 15 The chart above shows a consumer perceptions chart for headphone brands in regards to price, technical focus, and fashion focus. Many of OSSIC’s major competitors appear on this chart including Beats, Bose, Sony, and Audio-Technica. Since OSSIC has created an innovation to sound quality, they would most likely sit in the upper left corner with Bose and Sony. The Audio and Quality of Competitors “Audiophile” is a term used to describe high fidelity sound reproduction enthusiasts, and they’re always critical about sound quality. Since prices have increased, music lovers and audiophiles have renewed their awareness of both audio quality and design. Since Apple and Beats have teamed up, Beats headphones have put more focus into their audio quality and they are available for testing at all Apple store locations. As shown on the consumer perception chart, Beats is premium headphone with a unique and fashionable design. The value of competition Beats competitors are now legion, and many have copied the Beats playbook in marketing their headphones. There are headphones from 50 Cent, SMS, which alsohas a collaboration with Lucas film, Bob Marley's estate, House of Marley, which promotes an enviro-friendly aesthetic, Quincy Jones, manufactured by AKG, and Tony Bennett, by Koss. Monster, which no longer manufactures Beats,has launched aline with the producer Swizz Beatz, a Monster investor, called DNA. Though the headphone market may be slowing from its double- digit growth of recent years, there's no sign of a crash. There continues to be an emphasis on design and it’s expected that audio quality of headphones will improve in time.
  • 19. Marketing Plan & Overview: OSSIC 3D Audio Headphones 19 Internal Analysis Overall description of the business and product OSSIC was founded in 2014 with the original name of “Sonic VR”. Their goal was to develop 3D audio headphones that would bring the next step audio quality the mass market. The mission or slogan of OSSIC is “Changing the way you hear the world”. OSSIC X is the actual name for OSSIC’s first pair of headphones, and they are the world’s first 3D audio headphone that instantly calibrates to the listener. This technology increases the listeners sense of auditory space, and acoustically recreates the way people hear the world every day. (OSSIC) Management OSSIC’s management team comprises 4 founding members who have jointly spent the last 50 years working with some of the best headphone development companies. Since OSSIC’s creation, the management team has grown to its current total of 12 staff members. Product OSSIC X calibrates to the individual listener’s head and ear features, increasing overall sound quality and ensuring the most accurate sound placement, making for a listening experience that’s ten times more immersive than current technologies (OSSIC) ● Increased audio immersion ● Hear your movies and music like you’re there in the action ● Increased sense of spatial awareness with your audio content Chart 16 Source: www.ossic.com Picture 1
  • 20. Marketing Plan & Overview: OSSIC 3D Audio Headphones 20 This image shows an early stage prototype of what the final OSSIC X headphones will look like. The final product has a sleek, black finish and adjustable, large, over-the-ear phones that calibrate to the listener’s anatomy for the highest quality, immersive audio experience. (OSSIC) Instant Calibration OSSIC’s calibration process starts as soon as the listener puts the headphones on their ears. Data gathered from the headphones is instantly paired with its smart algorithms to determine accurate sound playback based on the listener’s anatomy and head position. (OSSIC) Chart 17 Source: www.ossic.com
  • 21. Marketing Plan & Overview: OSSIC 3D Audio Headphones 21 OSSIC is Different Chart 18 (OSSIC)  Anatomy Calibration: Instantaneously enable a listening experience that’s unique to every individual. OSSIC X does this on its own, so no additional step need to be taken  Integrated Head Tracking: Sounds remain relevant to everyone’s location in space, allowing a heightened sense of presence and accurate placement of sound sources.  Multi-Driver system: Eight individual drivers work in tandem to direct sound to the correct portion of the listener’s ear, allowing sound to interact with the ear just like it would in real life  Traditional headphones don’t consider the listener’s anatomy. This makes for an incredibly insignificant listening experience. In this traditional experience, sound remains close to the listener’s head rather than around the listener’s head. This leads to and inaccurate ability to place sounds in space, and a degradation in overall sound quality. Benefits of OSSIC 3D Audio Audio is a crucialpart of the way people experience content. By implementing accurate 3D audio, any content can take the listener to new places by improving the following: OSSIC X for Virtual Reality (VR) In VR, sound is key. With accurate 3D sound, this product can give a sense of space and direct a listener’s attention to elements outside of their field of view. Listeners will experience sound more realistically, which will provide a more immersive experience:  Drastically improved sound localization  Increased sense of presence and spatial awareness  Accurately rendering of sound in X, Y, and Z coordinates of space OSSIC X for Gaming Having accurate sound in gaming can make or break the experience. It’s important to create an experience that allows the listener to understand what’s going on in the space of the game; especially in the space that they can’t see.  Immerse people in the game  Accurately position sounds for a competitive advantage  Boom-less mic for continued audio communication
  • 22. Marketing Plan & Overview: OSSIC 3D Audio Headphones 22 OSSIC X for Movies Imagine being able to watch any movie on the best speaker setup money can buy. All from the comfort of your own home.  Enjoy any movie theater audio experience like you’re in the action OSSIC X for Music OSSIC changes the way people listen to music. Imagine being able to listen to any song from your collection on the best speaker setup money can buy. It’s like experiencing a concert from the best seats in a professional concert hall  Replicate the ideal listening room or speaker setup  Hear your music exactly how the artist intended Chart 19 This image above showcases the OSSIC Facebook webpage. OSSIC has been rated the “Best of Innovation Honoree” by the Consumer Electronics Show (CES) 2017. The page has over 40,000 likes and it’s their go to spot for the latest photos, videos, company information, updates, and events related to OSSIC. OSSIC posts to their Facebook page daily.
  • 23. Marketing Plan & Overview: OSSIC 3D Audio Headphones 23 Chart 20 (OSSIC) The image above showcases a screengrab taken from OSSIC’s Kickstarter campaign on Kickstarter.com. The image shows all the major tech and business publications that have featured news about OSSIC and its new OSSIC X headphones. Sales & Distribution The company has offered pre-orders on Kickstarter.com in exchange for monetary donations to get the company up and running. Direct sales are also available at OSSIC.com and there’s a 30- day pre-order refund. Right now, customers can save $200 for pre-ordering a pair of OSSIC X headphones and the total retail price of the headphone will be set at $499. The main distribution channel of the headphones is online ordering through Kickstarter.com and OSSIC.com. After a lot of production setup from an extremely high amount of pre-orders, OSSIC is shipping their first batch of headphones by January 2017.
  • 24. Marketing Plan & Overview: OSSIC 3D Audio Headphones 24 Manufacturing and Research & Development The 3D audio naturally replicates the way people hear the world every day, with measurable results (OSSIC) This is done with two types of testing: Physics-Based Testing Acoustical, physics-based testing. With a microphone in the ear, the following chart shows that 3D headphones reproduce the same signal as a real sound in space compared to a gaming headphone. Chart 21 (OSSIC) People-Based Testing Developers asked testers to map out where they think sounds were coming from while wearing the OSSIC X headphones. Then, they compared the tester maps to where sounds actually came from. The following chart proves that OSSIC X places sound at the right angle and depth and the gaming headphone does not (OSSIC) Chart 22 (OSSIC)
  • 25. Marketing Plan & Overview: OSSIC 3D Audio Headphones 25 OSSIC developed 9 generations of prototypes and numerous acoustic tests to innovate their 3D headphones. The following pictures illustrate the testing and prototype development process. Chart 23 (OSSIC) Chart 24 (OSSIC)
  • 26. Marketing Plan & Overview: OSSIC 3D Audio Headphones 26 Sentiment Analysis The purpose of a sentiment analysis is to examine customers’ opinions and feelings towards a product. In this case,the analysis was done for OSSIC’s new headphones by compiling 427 tweets from the Twitter mobile application and using the keyword OSSIC. Chart 25 This image above showcases OSSIC’s twitter page. OSSIC currently has over 6,300 followers, they have tweeted more than 3,500 times, and they tweet on a daily basis. Top 3 Favorited Tweets 1. “Pre-orders are LIVE NOW! Enlist in the #3daudio army and join the #ossic revolution!”. 2. “#3DAudio & #SoundDesign time Tony & Olivier award winner/nominee, Gareth Owen”. 3. “Interview w/ Jon Eades on the future of #Audio @AbbeyRoad @AbbeyRoadRed” After conducting the sentiment analysis on R-Studio package, a sentiment score was created for every tweet based on the positive and negative opinions towards OSSIC. The top 3 tweets with the most positive score are mentioned below and the positive words are underlined: 1. “#OSSICX wins @PopSci '16 Grand Award for Best New #Tech in #Entertainment #3daudio #Headphones for the best” (Sentiment Score: 5) 2. “Pleased to announce that the OSSIC X has been chosen as the 'CES 2017 BEST OF INNOVATION AWARD HONOREE” (Sentiment Score: 4) 3. “#OSSICX #Headphones win Grand #Award for Best New #Entertainment #Tech” (Sentiment Score: 4) On the other hand, there were also some tweets which had negative scores. The top 2 tweets with negative scores are mentioned below and the negative words are underlined: 1. “HereThey Lie' #trailer is a frightening glimpse at #PlayStationVR #Horror #VirtualReality” (Sentiment Score: -2)
  • 27. Marketing Plan & Overview: OSSIC 3D Audio Headphones 27 2. “@malic3tv @PlayOverwatch pub match; went up against 3 #symmetras and 3 #torb premade and lost my mind in rage” (Sentiment Score: -2) Competitive Analysis Based on the analysis of headphone industry and competitive trends, we have identified the Beats by Dr. Dre and Bose as main competitors of OSSIC. OSSIC Beats Bose Number ofEmployees 12 - 700 (2014) - 500 (after Applelayoffs) 11,700 Total SalesRevenue NIL $1.5 Billion(2013) $3.5 Billion(2015) Market Share Product shipping will start by 20th October 2016 Beats controls 27% of the $1.8 billion headphone market and 57% of the market for “premium” headphones, ones that cost $99 or more. On-the- ear or over-the-ear Beats retail from about $200 to $400. NPD Group estimated that Bose has a 22 percent marketshare. Marketing Strategy - What is the competitor’s overall differentiation? - How do they position themselves in the marketplace? - $2.7 MillionFunded on Kickstarter project. - They stilldon’t have a market position yet. - Headphones that allowuserto hear allthemusic.Dr. Dre: “hear what the artists hear, and listen to the music the way they should: theway I do." -Beats offers customization. Positioned as high-end -Bose: “Better Sound Through Research” -A more subtleand soft visual marketing strategy compared to Beats which says “Sound, Attitude, Culture” -Old history &One ofPioneer leaders Target Market(s) - Who is the competitor’s primary target audience? - How would you describethemin terms of their demographics and psychographics? - Audiophiles from Age 15-35, - High- Income, - High socialstatus - Generation Y&Z - i-Generation& Millennials are primary target audience - People going to the gymand fans ofthe celebrities that endorsethem,NBAfans (custom perteam) -Global market, -Average to highincome -People in theages of12-45, especially youngergeneration - Baby boomers to gen X Product Strategy - What is the competition selling? - How would you describetheir products in terms of features and benefits? - Unique new3D sound, Multi-driver to provide accurate direction ofthe sound. - No customizations and color options available. - Sony, Bose andPhillips sell similarly priced headphones with better technical performancebut Beats has a unique visualdesign that appeals to thetarget market. - Reputationfor highquality products - ‘Quiet Comfort’ & ‘Stay Hear’ Technology Channel Strategy - Where can thecompetitor’s target audience buy their products? - Does the competitor have any competitive strengths/weaknesses when it comes totheirchannel? Where arethey vulnerable? - Kickstarter.com - OSSIC.com - No e-commerce and retails store sales. -Beats are sold online andby many authorizedretailers in US. - SelectiveDistributionStrategy -125 retail stores (Factory outlets, Airportkiosks,Personal audio stores, Showcasestores) -E-Commerce: Online channels such as BestBuy, eBay, and Amazon Pricing Strategy - What does thecompetitor chargefor their product(s)? - Does the competitor have any competitive strengths/weaknesses when it comes totheirprice? Whereare they vulnerable? - Priced higherthan the competitorat $500. - The other 2 competitors are priced lowerand OSSIC fails to reach this target at this point. -$200-$400 for over-ear headphones -Beats are higher pricethan other headphones - Wireless headphone: $200-350 -Competitivepricing Positioning & Advertising Strategy -Kickstarter project -Word ofmouth - High brandawareness through celebrity endorsements -Advertising throughsocial media channels
  • 28. Marketing Plan & Overview: OSSIC 3D Audio Headphones 28 - How does thecompetitor informtheir target audienceabouttheirproducts and the product’s benefits? - Does the competitor have any competitive strengths/weaknesses when it comes totheirmarketing communications? Where arethey vulnerable? -Digital marketing -Gamers - Online advertising andlimited television -Vulnerableto rising public perceptionoflow technical performance - Offering specialdeals - Implementing Marketing Mix strategy SWOT Analysis Internal Factors (Core Competencies) Strengths Weaknesses Management A smaller management team allows for greater flexibility in decision making, and ensures focus on core operations and product values. It’s difficultfor a smaller,less experienced team to maintain work levels and growth to compete with larger brands. Marketing Superior product design and audio quality attracts hard coregamers, audiophiles and early adopters of new technology No expert marketers on staff to support. As a new technology, OSSIC doesn’t have strong brand recognition. Channel Kickstarter and website presales make preorders easily accessibleand affordableto audiophiles,gamers, and e-consumers. Limited distribution. Physical storesales,as well as through third party audio giants would supportgreater exposure and an increased market share. R&D OSSIC’s 3D sound is new technology to the audio industry and will redefine the standard in premium sound quality. Continued audio development may be extremely costly for OSSIC. It may also take extended time to perfect the tech and bringit to market. Product Offerings Preorders through Kickstarter and the OSSIC website let customers purchaseata discountfrom retail of $499. Too costly and lacks marketshareand brand awareness to support the premium price. Product sizeisn’thelpful for portability. Sales Launchinga Kickstarter campaign builtbrand awareness and pre-order sales in a very short time. The campaign exceeded their $100,000 goal by more than 27 times. Delivery times are extremely longafter pre- order purchaseis made. Manufacturing Costly.Not effective for mass production.
  • 29. Marketing Plan & Overview: OSSIC 3D Audio Headphones 29 External Factors (Industry Situation) Opportunities Threats Economic 3D audio is an innovation to the audio and headphone industry.This innovativetechnology is disruptiveand has potential to steal significantmarketsharesoon, as well as define the industry trends goingforward. Premium pricingreduces affordability.Being a new brand in the headphone industry with no track record or bigname partnerships could be hard to secure market share.Although new and novel, OSSIC could be overrated not worth the cost Competition OSSIC is a firstmover with its 3D audio and has no direct competition now. There is potential to partner with virtual reality companies to sell bundled products Other industry leaders such as Beats, Monster, Bose, etc. have the resources to create their own version of 3D audio technology at a lower pricepoint. They also hold strong brand loyalty. Demographic OSSIC can easily targetestablished segments that already own or might purchasepremium, over-the-ear, headphones. OSSIC’s technology can also betargeted towards gamers and audiophiles. Market leaders such as Beats and Bose already havelargemarket shareand strongly know their target markets. Strong competition in the headphone industry makes it difficultto acquiremarket share. Technology In an industry that hasn’thad much innovation sinceHD sound, 3D audio introduces a whole new level of audio quality.This technology has the potential to become the new norm in audio quality. Like HDDVD vs. Blu-ray;3D audio is a novel innovation,but might not be accepted by the audio / headphone industry as the new mainstreamtechnology for all future headphones. Regulatory OSSIC is free to develop its products with minimal legal or regulatory hurdles.There are few if any laws / regulations that restrictthe advancement of audio quality Larger competitors may have patents related to 3D audio,which could causeproblems for OSSIC. Industry 3D audio is a new technological advancement in sound quality that the audio and headphone industry can capitalizeon through sales of advanced products. This will lead to continued industry growth. Other technological advancements in sound quality could beintroduced and take momentum away from 3D audio. As shown in the tables above, OSSIC has some pretty significant strengths and weaknesses. OSSIC’s biggest strength is that they are the first mover on a huge technological advancement in audio quality. OSSIC has achieved true spatial awareness in audio technology and it can redefine the norm of quality in the audio industry. Currently, OSSIC’s biggest weakness is their ability to fill orders. Their initial goal on Kickstarter was $100,000, but they raised $2.7 million, which overloaded their ability to ship their headphones to customers that pre-order the headphones. Scaling production will need to become a major focus to guarantee success. For opportunities, OSSIC is capitalizing on being a first mover on their spatial audio technology. There are no other direct competitors now and it may take a while for industry giants to create their own version of this new technological advancement. At the same time, this opportunity can also double as a threat. OSSIC is the first one to bring their technology to market, but industry leaders can leverage their resources and market share to overtake OSSIC in the future.
  • 30. Marketing Plan & Overview: OSSIC 3D Audio Headphones 30 Target Market The primary market for OSSIC X is gamers in the US. Per Mintel research, the gaming industry will continue growing and the gaming will be one of the most popular hobbies. Among the global gaming market, the US employs over 146,000 people within the computer and video gaming industry with an average annual salary of $94,747. Top notch, AAA, Gaming studios are located across the entire US and focus on creating engaging, interactive software that meets consumer demands. In the gaming industry, the US is the second largestcountry for revenues and the latest Global Games Market Report shows expected total revenues for 2016 to be $ 23.6 billion. (Mintel) PrimaryTargetMarket: Gamers Demographic Description Educational Level - High School Students - Students at Undergraduate and Graduate Schools - Adults with undergraduate or graduate degrees Age - iGeneration, 2-19 years’ old - Millennials, 18-34 years’ old Gender Both Male and female Social Status -Middle, upper middle, and upper class incomes -Working class -Ethnically diverse -Parents Occupation(s) Students, tech industry, computer programmers, gaming industry, music industry, video production industry Psychographic Description Activities - Listening to music for at least 2 to 3 hours a day. - Online and offline gamers (FPS, RPG, MMORPG, RTS, E-sport) Media Choices - Computers, game consoles, streaming, movies, music, podcasts, meditation Life Style Description - Weekly TV usage is 13-14 hours - Top dailyusedsocialmediasitesare Facebook,YouTube,Instagram,and Twitter - The average gamer is between 23-30 years old and plays 12 hours per week Other product purchases Beats, Audio-Technica, Bose, Klipsch, Shure, Sennheiser, Sony, Philips Motivations -Possession of latest gaming and audio technology
  • 31. Marketing Plan & Overview: OSSIC 3D Audio Headphones 31 (ideals, goals, passions) -Productsthatofferthehighestqualityandperformance ingaming,video, and audio -Prefer technology, diversity and fun Identifying needs and wants of Target market Target Market Needs Target Market Wants - Prestige among peers - Enhanced gaming experience - Virtual 5.1 or 7.1 soundin a portable package - Technological advancements -Precision, motion and head movement tracking sound production -Headphones compatible with Virtual reality devices -Noise cancellationfeatureforbetterlisteningexperience (Grand View Research) -Light weight and easy portable headphones The Gaming Industry Overview The reason OSSIC should target gamers is that the global gaming industry is almost equal to the movie industry. The global gamers market which reached $99.6 Billion in august 2016 where E- sport generated around 25% and of the share. US gameindustry forecastto grow by 30% to $19.6 Billionby 2019. It has increased by 8.5% compared to 2015.For the first-time Mobile gaming takes a larger share than PC gaming with $36.9 Billion, up by 21.3% globally. The major contribution to the global gaming sector is Asia-Pacific which consumes approximately half of the Gaming industry. Chart 26 Source: (NewZoo)
  • 32. Marketing Plan & Overview: OSSIC 3D Audio Headphones 32 Demographics  63% of U.S. households surveyed include at least one frequent gamer  65% of homes own a video game-playing device, while 48 percent own "a dedicated game console."  47% of gamers are between 18 and 49 years old  The average guy who plays games is 35; the average woman is 44  59% of those who play games on a regular basis are men; 41 percent are women  The average gamer has been playing video games for 13 years (Frank) Chart 27 Source: (NewZoo) Buying habits ● The average "frequent game purchaser" is 38 years old. ● 60% of those who buy games most often are men, while the remaining 40% are women. ● 41% of regular buyers pick up new games without trying them beforehand. (Frank) Target Market “Gamers” in the United States ● 10% of US adult population “hard core” gamers ● 77% of men age 18-29 play video games ● 57% of women age 18-29 play video games ● 70% of college students play video games (Frank)
  • 33. Marketing Plan & Overview: OSSIC 3D Audio Headphones 33 VR and E-sports ● Half of the respondents are familiar with E-sports. 45% of those who follow E-sports do so through social media ● 55% of frequent gamers are aware of virtual reality headsets, and 40 percent claimed they were likely to purchase a VR system within the next 12 months (Frank) Value Proposition To add a revolutionary new 3D audio element to a rapidly growing gaming industry. Benefits Valued OSSIC X will provide the most accurate and immersive 3D audio experience to customers. Benefits Not Offered No Customizations, no color options, Not priced cheap or at the average headphone market price. Price Range Price ranging from $300 currently while pre-ordering it. Once it’s totally established and meet the market demand, it’ll be priced at $499 with free shipping. Only available on www.ossic.com ValueProposition Statement OSSIC X is the world’s first headphone that instantly calibrates to the listener, increasing the sense of auditory space, and acoustically recreating the way you hear the world for the most accurate and immersive 3D audio experience.
  • 34. Marketing Plan & Overview: OSSIC 3D Audio Headphones 34 Branding & Positioning Brand Positioning Statement To Gamers and Audiophiles, OSSIC is the brand of premium, Over-ear, Headphones that provides the next evolutionary step in audio quality because our 3D audio technology makes it feel like everything is happening around you in the moment. Brand ImageCollage Our “Brand Image Collage” using key words, images, and expressions that embody the premium quality, advanced technology, and innovation that OSSIC brings to the audio industry. Descriptors include Lab tests; More energy & more confidence, Integrity, A whole new attitude, Unlimited Music, Share Joy, why not have it all? Essential Gear, Gadgets That Electrify, as well as BMW and its slogan, “The Ultimate Driving Machine”, as symbolism for OSSIC’s ultimate audio solution.
  • 35. Marketing Plan & Overview: OSSIC 3D Audio Headphones 35 Marketing Objectives OSSIC’s marketing objectives span a 3-year period and are aimed at increasing overall market share amongst gaming and audiophile consumers. The strategies employed are aligned to increase brand awareness through experiential marketing tactics, growth in distribution channels, and the development of quality products that emphasize consumer customization. No Objectives Year 1 Year 2 Year 3 1 Create and increase brandawareness amongthe gamingandaudiophile communitytocapture marketshare of 5% in‘GamingHeadsetIndustry’inUS within 3 years Capture market share of 1% Capture market share of 3% Capture market share of 5% 2 Increase numberof distributionchannels by 30% throughe-commerce andretail Increase number of distribution channelsby10% Increase number of distribution channelsby10% Increase number of distribution channelsby10% 3 Increase customersatisfactionwith increasedproductofferingsandservice Improve customer service and extendproduct warranty OfferMultiple coloroptionsand customization Buildoutof product accessories Strategy & Tactics Strategy1: Build awareness Create and increase brandawarenessamongthe gamingandaudiophile communitytocapture market share of 5% in‘GamingHeadsetIndustry’inUS within3 years. Tactics: ● Buy Advertising space for videos, banner ads, and utilizing search engine optimization to target potential customers. OSSIC already posts to multiple social media platforms daily including Facebook and Twitter. Going forward, they can put more effort into more engagement with their community. As delivery dates on product shipments get closer,OSSIC will increase their posting frequency to increase excitement of deliveries as well as capture customer reactions. Another important area to focus on here is OSSIC’s Instagramaccount. OSSIC currently has 124 posts and 1,217 followers, but this is significantly lower than competitors like Bosewho has 935 posts and 248,000 followers. Posts that seemto be highly effective on Instagram include lifestyle photos that show an active lifestyle as well as the product. Since OSSIC is focused on gamers and audiophiles, their Instagram images should feature people using their headphones and gaming images. ● We will ship a new pair of headphones to YouTube product review and unboxing channels like TechnoBuffalo, Jonathan Morrison, and Unbox therapy. These channels have millions of subscribers, soit willbe extremely helpful in building awareness of the OSSIC brand. We also
  • 36. Marketing Plan & Overview: OSSIC 3D Audio Headphones 36 plan to develop press releases that willbe sent to popular video game and technology media sources like CNET, TechRadar, IGN, Wired, and Audiophilia. ● OSSIC will attend major E-Sports events, gaming and technology conventions, and use booth spaces at game shop and retail stores to provide live demos. More than 40 million people attend these types of event every year and the attendance rates continue to grow. Booth space at these events is a great way to show the premium feel and image that OSSIC embodies. Testers can experience audio simulations and participate in video testimonials to boost awareness. ● We willcreate marketing campaigns with sponsored E-Sports players who will endorse OSSIC products in the videos, as well as web and print content that features them. Campaign content will be promoted through press release outlets, social media, as well as gaming and technology events and conventions Strategy2: Expand Distribution & Partnershipsand Increase Loyalty Increase numberof distributionchannelsby30% throughe-commerce andretail. Tactics: ● OSSIC will make partnerships with stores like BestBuy as well as tech sections within Target and Walmart to increase distribution across the US. The more shelf space the better. We’re also looking to make partnerships with VR Device manufacturer to sell our products as a bundle or within proximity of each other on store shelfs. Potential VR partners include Sony, Oculus, NextVR. ● Over the next three years, we plan to open six OSSIC Experience retail stores in six major urban around the US. These will consist of locations that are home to the largest population of gamers and audiophiles. Locations may include Austin Texas, Salt Lake City Utah, San Diego California, Los Angeles California, Denver Colorado, Washington DC, Houston Texas, Las Vegas Nevada, San Francisco California, and Dallas-Ft. Worth Texas ● We would also like to develop a customer loyalty program for retail sales locations and on the OSSIC website. This may include incentives like discounts and promotions for customer loyalty. Discounts and promotions may include a dollar amount off closely related products or accessories such as VR partners, OSSIC branded apparel, headphone accessories. Strategy3: Improveproductquality & Customer Satisfaction Increase customersatisfactionwithincreasedproductofferingsandservice. Tactics: ● We will build out the OSSIC product offering with multiple factory color options, which will compete with other industry leading brands like Beats. An extension to this is to create an online page that allows customers to customize their headphones by creating their own colors and even personalizing their headphones with laser etched designs and phrases. ● We will build a 24 hour online chats support system in addition to FAQ, and troubleshooting pages on the OSSIC website should customers face any issues with their headphones. ● An additional extended product warranty willbe offered to customers who want to purchase
  • 37. Marketing Plan & Overview: OSSIC 3D Audio Headphones 37 added protection for their new headphones. This warranty will cover any damages to the headphones and will help customer get a new pair in a timely fashion. ● Additional product accessory lines will be buildout to cater to customer needs and personality desires. These product line will include different sized ear fittings, cases, pouches, extension cables, auxiliary cable adaptors. Implementation Plan To accomplish our Marketing Objectives, we developed 3-year implementation plan based on our strategies and tactics. Some tactics will be implemented at all times, while others occur around certain times of the year. Generating brand awareness through socialmedia and YouTube product review channels is an around the clock effort, just like 24/7 customer service support, and making partnerships with retail stores would be. On the other hand, attending E-sports event and gaming and technology conventions are a seasonal or annual event. No Activities Year 1 Year 2 Year 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Create and increase brand awareness among the gaming and audiophile community within 3 years to capture market share of 5% in ‘Gaming Headset Industry’ in US 1.1 Buy Advertising space for videos, banner ads, and utilizing search engine optimization to target potential customers, Ship units to YouTube product review and unboxing channels like TechnoBuffalo, Jonathan Morrison, and Unbox therapy. develop press releasesandpitchthemtopopularvideogame and technology media sources like CNET, TechRadar, IGN, etc. X X X X X X X X X X X X 1.2 Sponsor E-Sports events, gaming and technology conventions, and booths at game shops, retail stores with live demos. Testers can experience audio simulations and participate in video testimonials to boost awareness. X X X X X X 1.3 Create a marketing campaign with sponsored E-Sports players who will endorse OSSIC products. Campaign content will be promoted through press release outlets, social media, and gaming and technology events / conventions X X X X
  • 38. Marketing Plan & Overview: OSSIC 3D Audio Headphones 38 2 Increase number of distribution channels through e-commerce and Retail Stores 2.1 Partnerwithstoreslike BestBuyaswell astech sectionswithinTargetandWalmarttoincrease distribution across the US. Partner with a Virtual Reality(VR) Devicemanufacturertosell as a bundle ornear. Potential partnersinclude Sony, Oculus, NextVR, etc. X X X X X X X X 2.2 Over the next five years, open OSSIC Experience retail stores in 10 major cities around the US with the largest population of gamersandaudiophiles.Locationsmayinclude Los Angeles,NewYork,Chicago,SanFrancisco, Miami, etc. X X X X 2.3 Offer Customer loyalty program in retail locations and on the OSSIC website. This may include incentives like discounts and promotions for customer loyalty X 3 Increase customer satisfaction with increased product offerings and service 3.1 Offer Multiple factory color options withlogo. Also, offer Customization of colors and text with laser etching X X X X 3.2 Provide 24 hour online chats for customer service and extended product warranty X X X X 3.3 Buildout of product accessories to cater to customerneeds.Thismaycome in the form of different sized ear fittings, cases, pouches, extensioncables,auxiliarycable adaptors,etc. X X
  • 39. Marketing Plan & Overview: OSSIC 3D Audio Headphones 39 Execution Plan We have projected that executing on all strategies and tactics will take three years and cost about $2 million per year. Some boxes have been listed with “N/A” because it will not bring additional costs to OSSIC to complete those specific tactics. No Action Timeline Budget 1 Product 1.1 Offer Multiplefactory color options with logo. Also,offer Customization of colors and text with laser etching 1 Year $25,000 1.2 Provide24 hour onlinechats for customer serviceand extended product warranty 2 Months $200,000/ year 1.3 Buildoutof product accessories to cater to customer needs. This may come in the form of different sized ear fittings,cases,pouches,extension cables,auxiliary cableadaptors, etc. Available at Launch $25,000 2 Pricing 2.1 Offer Customer loyalty program in retail locations and on the OSSIC website. This may include incentives like discounts and promotions for customer loyalty 1 Year N/A 3 Place/ Distribution 3.1 Partner with stores like BestBuy as well as tech sections within Target and Walmart to increasedistribution acrosstheUS.Partner with a Virtual Reality (VR) Devicemanufacturer to sell as a bundle or near. Potential partners include Sony, Oculus, NextVR, etc. 3 months N/A 3.2 Over the next five years,open OSSIC Experience retail stores in 10 major cities around the US with the largest population of gamers and audiophiles. Locations may include Los Angeles, New York, Chicago, San Francisco, Miami, etc. 2 Stores per year $330,000/year /store $2.0 Million total 4 Promotion 4.1 Buy Advertising space for videos, banner ads, and utilizing search engine optimization to target potential customers, Ship units to YouTube product review and unboxing channels like TechnoBuffalo, Jonathan Morrison, and Unbox therapy. develop press releases and pitch them to popular video game and technology media sources like CNET, TechRadar, IGN, etc. 1 Month $947,965 for year one based on Kickstarter revenue 4.2 Sponsor E-Sports events, gaming and technology conventions,and booths at game shops, retail stores with livedemos. Testers can experience audio simulations and participatein video testimonials to boost awareness. 1 Month $150,000/ event 4.3 Create a marketing campaign with sponsored E-Sports players who will endorse OSSIC products.Campaign content will bepromoted through press releaseoutlets, social media, and gaming and technology events / conventions 2 Years $5,000/ sponsored player plus free headphones
  • 40. Marketing Plan & Overview: OSSIC 3D Audio Headphones 40 TOTAL COST 3 Years $2 Million / year
  • 41. Marketing Plan & Overview: OSSIC 3D Audio Headphones 41 Works Cited BrandView. How does Bose pricing compare to other speaker brands at Argos? 11 December 2016. 11 December 2016. <http://www.brandview.com/insights/how-does-bose- pricing-compare-to-other-speaker-brands-at-argos/>. Forbes. America's Largest Private Companies. 1 January 2016. 2 October 2016. <http://www.forbes.com/companies/bose/>. Frank, Allegra. Take a look at the average American gamer in new survey findings. 29 April 2016. 2 October 2016. <http://www.polygon.com/2016/4/29/11539102/gaming-stats- 2016-esa-essential-facts>. Grand View Research. Earphones And Headphones Market Analysis By Product (In-Ear, Over- Ear), By Technology (Wired, Wireless), By Price (Less Than 50, Between 50 To 100, Above 100), By Application (Fitness/Sports, Gaming, Virtual Reality, Music & Entertainment) And Segment Forecasts To 2024. 1 January 2016. 29 September 2016. <http://www.grandviewresearch.com/industry-analysis/earphone-and-headphone- market>. IBIS World. The Retail Market for Headphones in the US: Market Research Report. 1 June 2015. 29 September 2016. <http://www.ibisworld.com/industry/the-retail-market-for- headphones.html>. Leopold, Todd. How Beats headphones changed the audio world. 13 January 2014. 29 September 2016. <http://www.cnn.com/2014/01/13/tech/beats-headphones-audio- market/>. MarketingCharts. Demographic Stats About US Millennials. 24 February 2014. 11 December 2016. <http://www.marketingcharts.com/traditional/demographic-stats-about-us- millennials-40016/>. Mintel. MArketing to the iGeneration - US - April 2016. Market Analysis. New York City: Mintel, 2016. —. Mobile Phone and Tablet Accessories - US - April 2015. Market Analysis. New York City: Mintel, 2015. NewZoo. The Global Games Market Reaches $99.6 Billion in 2016, Mobile Generating 37%. 21 April 2016. 2 October 2016. <https://newzoo.com/insights/articles/global-games- market-reaches-99-6-billion-2016-mobile-generating-37/>. OSSIC. Hear an Entirely New Dimension of Sound. 23 February 2016. 27 November 2016. <https://www.ossic.com/3d-audio/>.
  • 42. Marketing Plan & Overview: OSSIC 3D Audio Headphones 42 —. OSSIC X: The first 3D audio headphones calibrated to you. 23 February 2016. 29 September 2016. <https://www.kickstarter.com/projects/248983394/ossic-x-the-first-3d-audio- headphones-calibrated-t>. Popat, Dhaval, et al. Bose Marketing Project. Market Analysis. San Francisco: Scribd.com, 2015. Richter, Felix. U.S. Teens Love Beats Headphones. 8 May 2014. 29 September 2016. <https://www.statista.com/chart/2227/preferred-headphone-brands-among-us- teens/>. Rohrer, Karl, Kate Pinard and Jeannine Aversa. National Income and Product Accounts Gross Domestic Product: Third Quarter 2016 (Second Estimate) Corporate Profits: Third Quarter 2016 (Preliminary Estimate). 29 November 2016. 11 December 2016. <https://bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm>. Trading Economics. United States GDP Growth Rate. 29 November 2016. 26 September 2016. <http://www.tradingeconomics.com/united-states/gdp-growth>. United States Census Bureau. Population and Housing Unit Estimates. 23 June 2016. 2 October 2016. <http://www.census.gov/popest/>. Wiseman, Paul. IMF Downgrades outlook for US economy. 22 June 2016. 11 Decemeber 2016. <http://bigstory.ap.org/article/f903f698319349919c7522f186ba5096/imf-downgrades- outlook-us-economy>.