1.Mission Statement
"At Monster Cable, we are truly grateful that we live and work in the San Francisco Bay Area. That's why Monster has always been committed to strengthening our community."
2.Concept
Dr Dre says it best "People aren't hearing all the music." The concept of Beats by Dre was created because of a need to hear the full spectrum of sound that was recorded during it production."Artists and producers work hard in the studio perfecting their sound. But people can't really hear it with normal headphones." There target demographic group would be teens to Generation Yers. Dr. Dre is a world renowned hip hop Artist/Producer. The idea that he crafted audio ware intended for the listener to hear music the way he does will resonate with his fan base (which span from the late 80's to the present), as well as fans of pop culture. Having a manufacturing partner with a excellent reputation like Monster Cable only guarantees his product will live up to his claim. "With Beats people are going to hear what the artist hear, and listen to the music the way they should: the way I do."
3a.S.W.O.T.
-Strength
One of Beats by Dre strengths is that it is manufactured by Monster Cable, a company recognized globally for superior audio. And since it is a product of Monster, Beats would have access to Monster international network of distributors, giving consumers in other countries easier access to Beats products. Another strength is the endorsements of Dr.Dre and Jimmy Iovine. Dr.Dre is a world renown hip hop produce/artist and is known for being a perfectionist. Jimmy Iovine is record company chairman and former record producer. He has access to several of today's top musicians, and can get them to endorse Beats products. Beats also has a great design. It's sleek appearance will cater to the hip and trend consumer.
-Weakness
Unfortunately Beats by Dre is very expensive. with prices ranging from $150 to $600, modest consumers may be turned off from the device regardless of its sound quality.
-external Opportunities
By creating a partnership with other companies(HTC, Chrysler, HP) Beats by Dre is able to show product diversity, and cannot be labeled just a headphone company.
-Threats
Since its inception Beats by Dre has been a hit among consumers because of its excellent sound and cutting edge design, as well as its popular celebrity co-signs. Thus this has prompted other audio-ware companies to follow the same marketing technique, creating a who's who of celebrity endorsed headphones. Record industry mogul Jay-Z paired with Skull Candy to crate RocNation's Aviator headphones. Rapper Ludacris paired with Signeo to create Soul by Ludacris. Even artist 50cent had planned on releasing his own brand with company Sleek audio.
Other threats would be from companies that sell headphone products of similar quality but for less. some consumers may be willing to sacrifice sound quality for the sake of a budget friendly device.
Counterfeit product are huge threat to well established brands. Counterfeit products hurt any market because it create a distrust between the business's and their target consumer. It is a lose/lose situation where the consumer receive faulty equipment under the guise of a reliable name brand product, and businesses of the brand receive no compensation.
3b.Marketing Objective
-Counterfeit Awareness
Beats by Dre create awareness of counterfeit merchandise by posting ads and links on their websites, as well as posting how to find authorized dealers. The company want to ensure their consumers receive the true
Beats product. Costumers are more likely to seek out authorized dealers rather end up with a fake product.
-Personal Appears
Beats by Dre regularly makes appears at electronic conventions around the world to display current and future devices, as well as demonstrating their functionality. Many consumers as well as bloggers travel to these conventions every year. An impressed blogger will transmit there favorable opinion of a product to there followers creating free publicity.
-Partners in product development
Partnering with other companies shows that Beats signature sound is not limited to just headphone. To date Beats has partnered to improve the sound quality of computer company HP, mobile phone manufacturer HTC and automobile maker Chrysler. This helps Beats by introducing consumers of those companies to Beats superior sound from their devices.This gives the consumers the direct experience that may cause them to purchase more Beats by Dre products for their other audio device.
-Artist Endorsements
Artist endorsement are a huge key to Beats by Dre success. In addition to creating a signature line for influential artists (P.Diddy, Lady Gaga,Justin Bieber), Beats gets testimonials from other music industry staples such as hip hop producer Ninth Wonder. Also, Beats promotes their brand name at the concerts they sponsor.
-Trend Setters
In a industry were every company claims to have superior sound, Beats by Dre has an advantage with it stylish design that appeals to consumers superficial side. Beats stands-out in the market due to it sleek design.With it's designs from Robert Brunner a former design executive for apple, Beats is more than audio-ware, it's a fashion accessory.
-Monstrous Qualities
Beats by Dre isn't just a pretty face, it's powered by Monster cable sound technology guaranteeing Beats a unique sound light-years ahead of it's competition. This will appeal to Monster Cable huge and loyal fan base. Monster also has a access to social networking for its fans via a Facebook fan page. There Fan can find out and comment on Monster products including Beats by Dre.
4.Retailing Activities
Beats by Dre products can be purchased directly from their website or Monster Cable's website. On their website Beats by Dre also give a list of authorize distributors. This is a useful measure in reducing the chances of customers buying counterfeit items, by showing were to where to get the genuine products. At store locations, Beats products are mainly located in the audio or electronics area with a space dedicated specifically for their products. In most stores this space is marked off with small stands and posters with images of the iconic Dr. Dre and the stylish Beats company logo to catch the customers attention. In other locations, Beats products are lock in a secure glass display. Some may believe that having the products locked up may halt the customers interest, since there is no easy access to the products. However, this work to the stores advantage. Having the products lock away provides for a sales opportunity. If a customer would like to see a product, they would have to ask for assistance from a sales representative. This kind of scenario is perfect from a sales perspective. Because the representative can't leave the customer alone with the product, it will give him or her the chance to begin their sales pitch. At some authorize store they also have live demonstration setup for Beats by Dre products like headphones, so customer are able to hear and experience Beats quality sound first hand.
5. Drafting a magazine advertisement
The design for the ad is pretty simple. The background for the ad will be black and gray gradients. The center of the ad will feature a large stylish Beats by Dre logo. Under the logo will be the words "What are you hearing?". This question is meant to evoke the reader to ask what they are hearing about not just the product, but the brand itself. Surrounding the logo in smaller font will be brief testimonials from fans, celebrity and any industry award. The celebrity quote will be slightly more visible or bigger than the regular fans. This will give the reader a chance to recognize the celebrity endorsements. At the footer of the page will have the logos of some of the most popular store to purchase Beats by Dre product (Target, Best Buy, etc.). Above the list of logos will say "Available at :".
6. Promotion
My promotion idea for Beats by Dre is a manufacturer rebate plan. The public is eagerly awaiting the release of Dr. Dre's new album DETOX that has been in production for over a decade. We would simple link the release of his long delayed album with the limited edition Beat by Dre DETOX headphones available now. The offer would be a $150 mail in rebate. The campaign slogan will be in big bold letters "You waited this long to get the album, Why not hear the album the way Dr. Dre does?" The mail in rebate would only be available in the DETOX CD case. The mail in rebate will require the purchaser to list some information (name, address, phone, email address and proof of purchase) on a form on the back of the rebate card.
Dr. Dre has a huge fan base and his past two albums have both sold over a million copies each, as well as both being branded as classics. With the anticipation for his third album possibly selling a million in it first week, die hard fans would get the opportunity to hear the album the way Dr.Dre intended it to be heard if they purchase the special limited headphones.
7. Integrated Marketing
My plan is to promote the Beat Dr. Dre headphone product line using four different channels:
- Television Advertisement
- Radio Advertisement
- Magazine Advertisement
- Personal Selling
The second product will be the Detox special edition headset. The medium will be a radio ad. The focus of the ad will be a voice over from Dr. Dre himself, as one of his classic song plays lightly in the background. Dr. Dre will express the time and effort he put is into making a beat, and that only the pairing of Monster Cable and himself could create the perfect vessel to hear his music on. At the end of the commercial will feature a local DJ saying where the product can be purchased in the area. The message will be about the important of quality. The point of contact will be the radio. Since Dr.Dre is largely known as a hip-hop producer/artist, the ad will mainly appear on urban stations.
The Third product will be the Beats Wireless headset. The medium will be a magazine ad. The theme will be unrestricted. The main image will be of a nude (or semi nude) woman jumping or dancing in celebration were only the Wireless headphones. In bold words "UNRESTRICTED" will be printed near the woman. At the bottom of the ad will list the authorize stores the product is available. The message will be nothing can stop the consumer from enjoying their music. The contact point will be people who read magazines. The ad can appear in urban music magazine, as well as lifestyle magazine.
After viewing all the ads, consumer will seek out venue to purchase the difference headset. It is at this point where the final channel will be fulfilled, personal sale. The fourth product to be promoted will be the special edition Solo(HD) Product(RED) headphones. Product (RED) is a charity that helps fight AIDS in Africa. Companies like Monster Cable that participate, donate a portion of a the profits from a specific item in the product line. The contact point will be retail stores. At the retail store, sales representative can push for indecisive consumer seeking a product from the Beats product line. The sales rep. maybe able to persuade the customer to purchase the Product(RED) headphone by letting them know about the charity's function, and that the donation is include in the price of the product, which is comparable to the price for all of the Solo(HD) line. The message that will be deliver to the consumer is that Monster/Beat by Dr.Dre is a socially responsible company, because they care about the well being of others.
8. Projections for 2012
Beats by Dre is still in the growth stage of the product life cycle, however it has effectively become a staple in pop culture. Beats has evolved beyond simple audio ware to becoming a fashion statement, and the latest limited edition multi-color studio headphones are proof. Beats were originally offered only in three colors: black, white and red. The new limited edition colors allow the consumer to accessorize accord to the own personal style or favorite color. Small changes like this as well as the addition of a boutique store which open this past November in SoHo New York, is more evidence of the brand continued growth. Here are a few thing I believe that we will see Beat unveil in 2012:
- More diverse styles. There is already plans for their new product line called Executive headphone which will be marketed to more mature consumer. The Executive is suppose to have a sleeker and more metallic finish. It won't be as big or bulky as some of the more current lines.
- Beats may also "borrow" from other Monster headphone line, like the new Ncredible ear bud line with magnetic clips. The magnetic clips would appeal to customer, because they can form a necklace around the user neck when the product is not in their ears.
- Beats may also open up a second store in Los Angeles, CA. After all isn't Dr. Dre from there? Why wouldn't he open one in his home town. LA is also another major market.
- More HTC cell phone using Beats sound tech. This year HTC partner with Beats by Dre to bring their sound quality to HTC's cell lines. The HTC Sensational XL was the first product to receive the Beats sound and did quite will over sea in Europe. HTC decide to rename The Sensational XL to ReZound and release it with Verizon only. However, Beats equipped cell phone can pop up on any of the four major cell phone providers, since HTC makes products for all of them.
- Continued success and more product endorsement on popular T.V. program like X factor.
9. Strategy for Long-Term Success
As the old saying goes, "if it ain't broke, then don't try to fix it". Beats by Dre has use the formula of pairing quality sound with celebrity endorsements to successfully penetrate the audio-ware market for the last three years. It is amazing to see how they went from a few headphones to making speakers for cars and computers. Dr. Dre has been quoted saying that "he wants beats to be second to only Apple (Computers)". He also said that Beats will continue to branch out into all things audio, from speakers to microphones. For Beats to maintain their success for the long-term they are going to have to continue being innovative with their product developments. They already develop wireless headphones, but creating a high performance speaker or sound system, is a market that not even their parent company Monster Cable is into. And the possibility of a Beats microphone would only further solidify their union with recording artists. However creating new products isn't the only way to maintain Beats success. Beats will have to use environmental scanning to watch competing companies as well. SkullCandy has maintain their popularity by creating fashionable designer audio-ware. Unfortunately, SkullCandy lacks the superior sound quality of Monster, given Beats by Dre a sustainable competitive advantage. To further edge out their competition, Beats would also have to create more diverse designs for their product lines, in order to appeal to other age groups (kids and mature adults). Beats has always been marketed to and designed for young adults, since they have the most disposable income.
