Beats by Dre revolutionized the headphone industry by creating a premium brand through celebrity endorsements, fresh design, and effective marketing. Their target is music enthusiasts ages 15-35 who want to authentically experience music and display their music expertise. Beats leverages celebrity endorsements, experiential marketing, TV/video ads, and digital/social media to position their products as allowing users to "hear music as the artist intended."

1. Beats by Dre™ Competitive Audit
Julia Winn

2. Marketing Strategy
• Beats by Dre™ revolutionized the headphone industry
• 64% of premium headphone market in 2012
• Approach: Create a premium brand people are willing to spend
$300 on by using fresh design, celebrity endorsement,
assurance of quality, effective digital marketing, and product line
expansion. Cut through clutter by offering a bulkier, bigger
headphone but making it cool.
• Products: Headphones, earphones, speakers, accessories, car
& PC audio, & streaming music subscription service
• The goal: Convince the target that they need Beats by Dre™ to
have the full music experience – and to show that they are true
music lovers
http://business.time.com/2013/01/16/how-dr-dre-made-300-headphones-a-must-have-accessory/

3. Target
“They target the age groups of Tweens
and Generation Y. Generation Y is all
about what’s new, trendy, and value brand
names. Tweens who don’t have any
income, still spend millions of dollars
through allowances, earnings, and gifts.
They are technology savvy and want the
latest. The main criteria is that they want to
be like Generation Y. Thus Beats by Dr.
Dre targets these two age groups the same
way, creating a marketing mix that appeals
to both, understanding the needs and
motives of segment members.”
-Jimmy Lovine
http://perfectbusiness.co/branding-brilliance-breaking-down-how-beats-by-dre-captured-the-market/

4. Target
• 15-35 year old males and females
• Music lovers/experts
• Trendsetters
• Care about sound quality over cost
• Want to be perceived as cool
• Early adapters
• Disposable income
• Follow celebrities and musicians
• Highly social
http://perfectbusiness.co/branding-brilliance-breaking-down-how-beats-by-dre-captured-the-market/

5. Insights
•Young, trendy music fans want a
more authentic music listening
experience that will serve as a
symbol of their music expertise
•Current headphone market was
either geared towards professionals
or amateurs who only cared about
cost but not quality – Beats leveraged
this opening in the market
http://brandsandfilms.com/2011/03/beats-by-dre-in-consumer-society/

6. Big Idea
Beats by Dre™ Solution: Provide young music enthusiasts
a product that allows them to “hear music the way the artist
intended” and show off their music prowess
Leverage power of experts (musicians) to launch the product

7. Executions
Celebrity Endorsement
Experiential/Partnerships
TV/Video
Social Media/Digital

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

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

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

11. 2. Experiential
• Experiential is the next layer
in the Beats marketing mix
• Beats #Showyourcolor
contest – flown to LA to film
commercial
Beats Listening Booth at Heathrow T5
http://cargocollective.com/pjupp/Beats-by-Dr-Dre-showyourcolor
Outdoor retail in Shanghai

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

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

14. 4. Digital/ Social Media
• Digital and social initiatives act as the glue to tie together
Beats by Dre™’s traditional advertising
6.7 million
likes
1.2 million
followers
497k
followers
+13.9k
http://www.shopigniter.com/blog/2013/02/19/10-smart-things-beats-by-dre-does-to-promote-sell-products-in-social/
2k
followers
Poor
engagement
Last post in 2012

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

16. Use of Digital
• 2. Customer Support

17. Use of Digital
• 3. Conversion

18. Use of Digital
• 4. Product Imagery