Although Beats by Dr.Dre is mainly a consumer product, it is also a business product.
Beats headphones are mainly consumer products because they are purchased for personal consumption. There are not many businesses which required the purchase of headphones, there are for any person listening to music...unless you are a producer, artist, or even a DJ. And that's when Beats headphones becomes a business product, for example producers need quality headphones to listen to music they are creating, and will later be selling. Beats makes headphones that are specifically for people like these, they are called Pro High Performance Professional Headphones. They constantly promote their headphones as being so good that even musical professionals use it. They are always promoting by posting picture on Facebook of DJs who are working while using the headphones.
They also do business through re sellers like retail stores.... for example Best Buy, where all the products are available. Although Beats has open their first store, they will obviously continue to use re-sellers. They also authorized many only websites like Amazon, to sell their product.
Most recently they have partnered with the HTC, and created a cell phone called HTC Rezound, thats uses The Beats Audio™ digital signal processing mode that delivers thundering bass, soaring mid-range and crisp highs.
Beats Electronics' basis for market segmentation is the use of demographic information. They have a Beats Electronics' basis for market segmentation is the use of demographic information. They have a concentrated targeting strategy by selecting age as their niche market.
They target the age groups of Tweens and Generation Y. Generation Y is all about whats new, trendy and value brand names. Tweens who don't have any income, still spend millions of dollars through allowances , earnings, and gifts. They are technology savvy and want the latest. The main criteria is that they want to be like Generation Y.
Thus Beat by Dr.Dre targets these two age groups the same way, creating a marketing mix that appeals to both, understanding the needs and motives of the segment members.
Recently, they have use geographic segmentation for the selection of the their first retail store. The Beats Store was strategically placed in NYC, the most populated city in the United States. NYC is prominent for music,arts and fashion, all the characteristics Beats by Dr.Dre represent.
New Product: a product new to the world, the market, the producer, the seller, or some combination of these.
New product strategy: a plan that links the new product development process with the objectives of the marketing department, the business unit and the corporation.
Beats Electronics introduces new products that are new to their market. It consist of adding new artist series headphones,over the ear and in ear headphones.
For Example, for the artist series line, they add new collaborations of the Beats headphones with heroic figures of music, fashion and sports. Their latest addition was a collaboration with Lady Gaga, to make the heartbeats High Performance In Ear headphones:
"An icon of music and fashion, Lady Gaga scored three #1 hits on her debut album. Visually,Heartbeats are designed down to the last detail by Lady Gaga. Working closely with Dr. Dre and Monster, they reflect her commitment to amazing "
Their latest new product strategy was the introducing the new limited edition colors. Compare to their normal use of the colors red, black and white...this is a new product.
It was also announced that there will be new wireless headphones. Wireless headphones is not a product that is new to the world, but a new product for Beats consumers.
Beats Electronics had mainly been using mass communication, but with the opening of their first retail store, they will now also be using interpersonal communication.
Their key communication element is through the Internet.Beat Electronics main tool of engaging with the consumer/PR is through Facebook and Twitter, which are now the biggest social networks.
So far they have 834,717 people who 'Like' their Facebook page and are constantly updated with the latest news on Beats products and are able to comment and voice their opinions/concerns/ratings. There is also constant updates on their Twitter page, and consumer questions answered daily.
Beats by Dr.Dre is opening their first store! It opened today November 2 at 12pm in NYC SOHO.
At today's grand opening their will be a custom Beats cake. The first few people who purchase Beats headphones will be receiving VIP access to a private party tonight.
Type of Consumer Product:
Beats headphones can be considered as a shopping product-a product that requires comparison shopping because its usually more expensive than a convenience product and its found in fewer stores.
Their product mix-all products it sells- consist of more than one product line.
A product line is a group of closely relater product items.
Beats has product lines of:
-Over Ear headphones
-In Ear headphones
-Artist Series
-New variety of colors --(Studio headphones)
Adding the new colors can be seen as product line extension-adding additional products to an existing product line in a n order to compete more broadly in the industry.
Branding:
Beats success is mainly because of their branding.
Beats by Dr.Dre has become a brand name through the creator Dr.Dre, who is a world known producer/artist/rapper. The brand mark used is a lower case B, this is easily recognized as the Dr.Dre brand name when people see the mark.
Although Beats Electronic has their trade mark over the product, their is also another brand mark on their products and that is of the Monster Cable Company. Beats Electronics are only a limited liability company and their main partnership is with the Monster Cable Company, so they are co branding.
Packaging: "come in a beautifully designed carrying case withanti-microbial cleaning cloths, a special Monster headphone cable, a mini-stereo to ¼-inch stereo cable adapter, as well as Monster’s iSonitalk, a microphone/headphone adapter for iPhones."
Warranty: As long as your headphones were purchased from an authorized Monster Cable retailer and can provide a copy of the receipt, the warranty is valid from the original purchase date. The receipt validates the manufacturer's warranty, which covers any possible manufacturer defects. It does not cover abuse, lost or stolen product(s).
Beats Electronics does not really use sales promotion for their products. In certain retail locations (like Best Buy) they have point-of-purchase displays, these are displays used to promote their product. These stations let you 'Hear The Difference' for yourself. Here they have their newest headphones and Beats Audio laptops for you to test out.
Besides P-O-P displays, you can find a few other sales promotions. You are only able to find their products at certain percentage discounts through their authorized retailers like Amazon. There you can find some Beats product on discount for 15% and also people selling their used products. Retail stores like Best Buy, also offers the headphones at a discount percentage.
(P-O-P displays that can be found at some retail stores)
Beats by Dr.Dre is not really known for it's advertising. They barely have any commercials, no magazine ads, radio or internet ads. The reasoning is logical, spending on advertising varies by industry. Headphones are not something you see, if ever, constantly advertised . Yet, Beats has managed become a brand name through their creator Dr.Dre, without much advertising.
You can say that the type of advertising used is comparative. Their product has superior quality to other brands and they offer you the quality deserved. Which takes you to their common theme, and that is that beats headphones are headphones that let you, Hear the music the way the artist intended and that Sound Really Matters.
You can find some printed ads at retail stores that use the common theme and a picture of the headphones, with a black background. The main colors Beats uses are Red, Black and White.
One of the few commercials specifically for the headphones, is one not even shown in the US but in Korea. :
Here is another one advertising the HP Touchsmart, but using the same common theme of the company:
Their public relation strategy is through their official website. Here they introduce their new products and existing products. Their newest products are placed to be seen as soon as you enter their website. They also post press/news. Another main source, is also their Facebook page, which is constantly updated with the latest news.
Through their YouTube website, they have videos called Beats By Dr.Dre Presents, and future artist talking about the latest Beats products.
Beats by Dr.Dre does not have their own company retailing store but has franchise partnerships. They used a product and trade name franchising, were the dealer agrees to sell certain products provided by a manufacturer or a wholesaler. Their biggest retailing partnerships are Apple and Best Buy.
They have also taken the road of nonstore retailing by making products available through electronic retailing.
Online retailing is available through their official Beats By Dr.Dre website, as well as their partnerships websites.
Retailing Marketing Strategy:
Having already identified their company's target market as teens and the Generation Y, the location is strategically planned. By having the product in the Apple store, they are able to target teens and career minded people, who are buying iPhones and ipod/itouch. The same goes for having their product in specialty stores like Best Buy that offers variety of electronics.
Beats uses Need Recognition to advertise. They express that regular headphones don't have the quality sound like the Beats by Dr. Dre headphones.
---A marketing managers objective to get customers to recognize an imbalance between their present status and their preferred status.
External stimuli- design, brand name(dr.dre), headphones seen in music videos.
To get the people to see that the headphones are better quality, compare to the headphones they have now...
Internal Information Search-the person recalls information stored in memory.
Beats uses this to their advantage by letting people experience the difference in the quality of the sound. They have their headphones available in display at stores like Best Buy were u can listen to a sample of music with their headphones and with regular headphones. Even if you didn't go to the store to try out the headphones most people will stop and try it, the same way people stop to try the Apple products on display. People would look back and remember the difference and may want to go buy them.
(From personal experience, I tried the headphones a few years ago and will always remember that the sound from the Beats headphones sounded much better.)
External Information: info. from outside environment.
Non marketing controlled information is everywhere thanks to the Internet. There's plenty of blogs that share that Beats is more than just a brand name product , and that actually delivers it's objectives. There's also thousand of videos on YouTube, where people show off and review their new Beats headphones.
Beats also has marketing controlled information, also through YouTube, their own official website and other websites like Facebook. They have a Facebook page where they constantly update it's customers with information on their product, events and pictures.
Culture and social factors influence people to buy Dr.Dre headphones...
Music has become an essential factor of American culture. Music is available at all times and no matter where. Music is on tv, the Internet, mp3 players,iPods, and cell phones. Now all of these are combined into one (smartphone) so music is always with you. It is normal today to see a person walking around listening to music.
People are socially influenced by artist and celebrities that they listen to all the time. Beats recognizes this by not only advertising their headphones through music videos but by showing people that these artist they look up to, have bought these headphones and thus, their fans are influenced to buy them
Beats is also able to target specific people by designing headphones inspired by an artist and making them available to the public. For example, by launching the new JustBeats headphones inspired by Justin Bieber, they are able to target the millions of teenage girls who are fans of him.
Due to the partnership with Monster Cable, Beats headphones are distributed all around the world. Monster products are distributed in over 70 countries and that includes Beats By Dr.Dre.
The Beats headphone's features are not altered, they are sold the same way around the world. global marketing standardization. The marketing mix remains the same, although slight changes may be made in promotion.
When advertising to a specific culture, due to demographics, the people in the advertisement may change, most likely to a known artist of their country. The sound featured in the commercial may also be music that is currently popular in the country.
In the end, the product remains the same, with the concept of unique style headphones, that has quality studio sound performance.
Below is commercial from South Korea, the product is the same, the concept is the same.
Due to demographics, the people featured in the commercial are Asian decent.
Recently. Beats has made a collaboration with a very well known Korean brand name called Faddy Robot. Faddy Robot is a famous Korean brand-name, their clothing is constantly advertised by Korean Pop Artists.
Korean Pop music has become a very big part of Korean culture.Thus by making this collaboration, they are able to instantly target markets in Korea, through the popularity of these artists, who are now constantly seen with the headphones by their fans.
The Monster company also participated in the IFA:
IFA in Berlin, the global trade show for consumer electronics and home appliances, presents the latest products and innovations in the heart of Europe.
IFA offers a comprehensive overview of the international market and attracts the attention of trade visitors each year from more than 100 countries. IFA is the main meeting place for key retailers, buyers, and experts from industry, trade and the media.
The event was held on September 2-7, 2011.The Monster company presented their latest products, including the Beats by Dr. Dre
Beats is designed to appeal to the younger target markets.
Social Factors:Attitudes, Values, & Lifestyles
Values influence our buying habits, people want the best product. They want a quality product that is worth the sacrifice they have put forth.
Beats are headphones with guaranteed quality that are reliable, durable, easy maintenance, and from a trusted brand name. Everything a person looks for in a product.
Monster has become the world leading manufacturer of high performance cables, that connect audio and video components for home and professional use. Monster was found in 1979 and since then has been providing the best quality products. Due to the reputation of Monster and the reputation they have built on their own, Beats has become a trusted brand name.
Of course, the target market also sees Beats as a brand name because its the creation of famous rapper and producer Dr.Dre.
Demographics:Target Market
As mentioned in the first sentence, Beats targets the young market...
Teens:
Not only do teens spend most of their time tuned into an electronic, they also shop online. Teens that work spend their money on fashion and teens that don't work spend their parents money. Since teens have no money obligations, they easily spend their money on their wants.Clothes, music, books, and electronics are the most popular purchases teens make.
What they want:
Modern & Convenient-
Headphones cant get any more convenient and modern than the Beats headphones. With a sleek style that attracts any teen, and that is easier to use than any electronic device.
Be Engaged/Involved-
What better way to get a teen engage than through Facebook. Beats has a Facebook fan page!Here they share the latest news, pictures and events. There's a discussion option where anyone can start a topic on anything in relation to Beats.
Generation Y : born between 1979-1994
The younger members of this group, are in their late teens and also fit the definition of the Teens group. On the other end are the ones that are starting their career or a family. Although they are buying big purchases like homes and cars, they sometimes buy today's electronics.
Its easy to see Beats by Dr.Dre has ethics and morals down. Just from the home page of their website you learn a few things. They respect and protect your privacy, and they understand being fair and just to their customers.
Their webpage is certified by TRUSTe. Beats Electronic LLD is a licensee with TRUSTe Privacy Programs, which means there is a seal on the page that ensures customers that their privacy is secured. So you can shop with confidence, knowing you are on a trustworthy website with the highest standards for protecting your personal information.
Beats also wants you to have the quality product you are paying for. They warn you to be aware of counterfeits and inform you of websites that are selling unauthorized products that do not meet Beats standards of sound, quality and performance. They provide a Blacklist of websites and a another of authorized websites, besides their official website. They also give you the option of verifying your Beats product before you buy it.
They created a special edition of headphones , that contributes $5 for each sold HD(PRODUCT)RED special edition headphones to The Global Fund, to finance AIDS programs.
The company markets its product under the Beats by Dr.Dre brand name. It has a strategic partnership with Monster Cable Products. Monster worked with Dr.Dre and Chairman Jimmy Lovine ( Interscope Geffen A&M) to create Beats by Dr.Dre headphone line. Monster is a world leading manufacturer of connective solutions for high-performance audio,video, car audio, computer, console and computer gaming, as well as a leading innovator of iPod and iPhone accessories and professional audio and sound reinforcement.
Beats by Dr.Dre provide its customers with what every customer wants, quality. The Beats headphones are not only known for the best audio performance but for their highly unique style, that could never be a copycat. In just a few years they have gained the product competitive advantage.
Recent Planning:
On August 10, they announced a new partnership with HTC, world leading wireless manufactures. They are planning to introduce a new smartphone, with a new sound.
An effective part of their marketing strategy is having there headphones appear in music videos, movies and advertisements.
The Beats line has become more than the best quality/performance headphone company, it has also become ..." a cultural movement that is redefining the way sound is heard."
On their website, on the About section, they provide this quote alone,
"People aren't hearing all the music.
Artist and producers work hard in the studio perfecting their sound. But people cant really hear it with normal headphones. Most headphones cant handle the bass, the detail, the dynamics. Bottom line, the music doesn't move you.
With Beats, people are going to hear what the artist hear, and listen to the music they way they should: the way I do." - Dr.Dre
ABOUT BEATS ELECTRONICS LLC Established in 2006, Beats Electronics is the brainchild of legendary artist and producer Dr. Dre and Jimmy Iovine, Chairman of Interscope Geffen A&M Records, who set out to develop a new type of headphone with the capability to reproduce the full spectrum of sound that musical artists and producers hear in professional recording studios. In January of 2008, Dre and Iovine announced a partnership with audio innovator Monster Cable to engineer "Beats by Dr. Dre," the most advanced headphones ever developed that now includes an artist line with some of the biggest talents in music today such as Lady Gaga. Continuing its mission to improve the quality of the portable audio experience, Beats announced a major partnership with Hewlett-Packard in 2009 to expand the Beats by Dr. Dre family of headphones to include Beats Audio software in the HP ENVY line and a HP ENVY 15 Beats limited edition notebook PC. For more information, please visit http://beatsbydre.com/ Beats Electronics LLD.
Dr.Dre:
Born Andre Young, but known around the world as Dr.Dre, is one of the best hip hop/rap producers.He has produced albums for Snoop Dog, Eminem and 50 Cent.
When world class producers like Dr.Dre, produce music they use the highest quality of speakers and amplifiers. Beats By Dr.Dre provide its customers with the full experience of sound in the music, that they intended for you to hear.
