Beats Electronics©: Branding Assignment Report Beats Electronics© BRANDING ASS IGNMENT REPORT Team 15: Aljereau Marten (455774) Archontia Fefekou( 457456) Harry Kermode(449866) Miriam Erne(451235) Venetia Fili (452193) Beats Electronics©: Branding Assignment Report Table of Contents Introduction .......................................................................................................................................................... 1 Brand Category Strength .................................................................................................................................. 2 Consumer Brand Experience ............................................................................................................................ 2 Brand concept.................................................................................................................................................. 3 Brand signaling ................................................................................................................................................. 3 Brand attitude................................................................................................................................................... 3 Brand Positioning .................................................................................................................................................. 4 Brand Elements ..................................................................................................................................................... 5 Brand endorser fit ................................................................................................................................................. 7 Brand alliance ....................................................................................................................................................... 8 Conclusion............................................................................................................................................................. 9 Reference list ...................................................................................................................................................... 10 Beats Electronics©: Branding Assignment Report Introduction Beats© is a company that is primarily focusing on stylized headphones and audio accessories. Since the establishment of Beats© in 2008 (Beats©, 2016) it has grown to become the biggest provider of portable audio equipment in the world, with annual sales of more than $1 billion (Neate, 2013).It could be argued this rapid rise through the industry was facilitated through the firm's excellent brand management and marketing expertise. The following report will discuss these ideas further. As we are focused on the object center engagement, all the answers below are related to this particular engagement. 1 Beats Electronics©: Branding Assignment Report Consumer-psychology model Brand Category Strength After conducting a field test of the popularity of the headphone brands, the common answer given by respondents was the Beats© headphone brand. Thus, it is evident that consumers can easily recall the brand (which means that they have a strong brand awareness and recognition). Sales can be an indicator of popularity, and since they have the highest amount of sales in comparison to other brands, means that they are indeed strongly linked to the category. Consumer Brand Experience Beats© headphones have a unique and exclusive design with bright colors and unique shape. They are fashionable and are easy for consumers to recognize. Beats© offers consumers Headphone customization, thus allowing them to create a headphone designed to their preferences and therefore distinguishes Beats© from its competitors. 2 Beats Electronics©: Branding Assignment Report Brand concept Beats© headphones rely mostly on a symbolic relationship with the consumer. With their design, shape, sound and popularity they satisfy the lifestyle and luxury needs of the consumer. “ Styled for comfort. Inspired by sound “ is one of Beat’s slogans. Brand signaling In general, consumers expect a high quality when facing a high priced product. In Beats© case the high price is more related to the name “Beats by Dr. Dre”, thus consumers value the brand over the quality and therefore are willing to pay a premium price. Brand attitude In comparison to other brands, consumers value the brand image much more than the products functionality Attitudes for Beats© could be fashion, luxurious, stylish, because the brand product can be identified with these attitudes. In comparison to Bose which is more focused on functionality. Beats© and Bose both are in the same category. 3 Beats Electronics©: Branding Assignment Report Brand Positioning Consumers buy headsets to listen to music and voices. The minimum requirements, in this case, is playback music. however, in the last years the following features also got more and more important and are PoPs in the headphones category: Wireless, Noise-Cancelling, Noise Isolation, Battery Life Wireless, Design, On-Ear Controls, Detachable Cable, Microphone, Sensitivity ("The Headphones Market”) as well as the quality of low, mid- and high-tones, pressure on the ears, nomadism of the headphones, the weight and the size of the earphones (Specout, 2016). In comparison to similar products, Beats© often score below the others regarding quality. There must be some specific brand related attributes and or capabilities that distinguish Beats© from their competitors. The two main reasons behind the brands’ popularity among consumers are its design and the feeling of prestige associated with the brand. Beats© are perceived as a fashion accessory and are mainly bought for that reason (Peattie, 2012), (Philips, 2014) and ("The Headphones Market”). This can also be seen in the following graph: The PoDs of Beats© are their product design, lifestyle and the feeling of belongingness. To maintain these PoDs Beats© should continuously be up to date with fashion trends and current design preferences. The brand ambassadors try to market the headphone as the best in its category, but it’s well known among consumers that beats headphones do not have the best technical attributes among functionality focused brands. If they were to improve their brand in this aspect they would outperform their competitors as they already provide a superior design (Tesseras, 2016). 4 Beats Electronics©: Branding Assignment Report Brand Elements Memorability Brand name Logo Packaging As defined by Oxford dictionary a beat is “the main accent or rhythmic unit in music or poetry” and the name of the company therefore related directly to music The logo is memorable because everyone it is just one letter “b,” the design of the logo is not complex. Yes, because the brand name and logo is memorable and the packaging consists both of them. Moreover, the color is always consistent (black and red) Yes, it meaningful because it shows that it is a headphone. Meaningfulness The name Beats© is also The logo is memorable meaningful, because you can connect the word “beats” to music and you need the gadget to listen to music like a headphone. Likability Due to the popularity of the brand, it would most likely score high on likeability Adaptability The name Beats© should be adaptable in the future, because the meaning of the word itself will not be different in 10 years. We assume that as long as electronic music will be popular, the word “beats” will be popular as well. The name Beats© can easily be transferred to other music-related products, such as musical instruments, speakers, and so on. When transferring Beats© to other geographic and cultural countries the name itself may need to be adapted since it is an English word. Transferability because it is simple and it represents the first capital “b” of the name Beats©. Moreover, the logo is connected to a headphone, since viewing the headphone from the side, it looks like a head (red circle) wearing a headphone (white headphone). The latest logo design trend is flat icons and Beats© follows this trend. It is adaptable because it is easy to redefine The logo Beats© can easily be transferred to other music related products Yes it is likable because the inside is simply designed and when opening up it feels like unwrapping a gift Yes, you can simply change the design of a package to fit current trends Yes, you can simply pack other Beats© products the same 5 Beats Electronics©: Branding Assignment Report Protect ability The name Beats© is a common word, so it cannot be legally protected to decrease the threat of infringement. Can easily be copied, for example when changing the shape of the letter “b.” No, you cannot protect a design of a package. 6 Beats Electronics©: Branding Assignment Report Brand endorser fit Beats©, as a primarily aspirational brand, utilized a large number of diverse and popular endorsers to promote itself (Edwards, 2012). Up to now, these endorsers have fallen into two distinct categories, musicians, and athletes. When choosing these endorsers, it is evident Beats© considered both of the essential characteristics of attractiveness and expertise (Kamins, 1990) which has resulted in a positive but more importantly credible message (Clow and Baack 2007). In the case of musicians the expertise argument is easy to make. By nature of their profession, musicians presumably hold a high level of proficiency in the area of sound and audio design. This gives weight to the discussion of the headphones technical prowess as purely a piece of hardware. Musicians are also a strong fit when it comes to selling Beats© as a fashion accessory; this is because the company has selected ones with large followings, who are respected and have a positive image. When this is taken into account, these endorsers have a high level of attractiveness. It could be argued the use of athletes as endorsers are not a brilliant fit due to their lack of perceived expertise in the area of audio quality (attractiveness, for athletes, is just as high as musicians for mostly the same reasons). However, the advertisements that feature athletes cleverly rephrase this issue. This is most apparent in Beats© “game before the game” series in which famous sports stars mentally prepare themselves for their chosen activity while listening to music through their Beats© headphones (https://www.youtube.com/watch?v=v_i3Lcjli84). This means although Neymar is not an expert in the quality of audio produced by his headphones, he is a specialist when it comes to football. It is heavily implied Neymar's expertise in football is at least partly a result of his excellent pre-match preparation of which his headphones play a vital role. The line of reasoning follows: Neymar is an expert footballer. Therefore he must be an expert in himself and in knowing what makes him perform, Neymar has the budget and incentives to maximize his performance fully. Therefore Neymar is choosing to listen to Beats© headphones because they are the best at making him perform. Through this logic, it can be argued the use of athletes be also an excellent fit for Beats© because, like musicians, they have high levels of attractiveness and expertise. In our opinion, as an area of improvement, Beats© could easily pivot into actors and actresses using a similar formula to that of athletes. In example by focusing on the preparation phase before a performance. For an actor, this would resemble achieving the correct mindset or emotion for a scene while using music delivered by Beats© headphones. As a possible limitation, Beats© as a brand tends to focus on upbeat, positive and beat-heavy pop music (https://play.spotify.com/user/irisis/playlist/03T0l8dJ27Z4uZ6FbwFsLd). This could only be applied to fast paced movie scenes featuring some form of action; this, therefore, limits endorser possibilities to actors taking part in these scenes. Possible candidates would include any actors working in Marvels superhero cinematic universe including Samuel L. Jackson, Robert Downey Jr., Tom Hiddleston, Hugh Jackman and Scarlett Johansson. 7 Beats Electronics©: Branding Assignment Report Brand alliance Regardless of the popular opinion of Beats headphones not having the best technical qualities, in comparison to other popular brands, they still are one of the most popular headphone brands out there. A manner of improving brand awareness is by exposure, which can easily be attained by a brand alliance between two or more companies (Salah & Mohamed, 2013). A brand alliance between Beats and an airline brand would be quite beneficial for their exposure as they would acquire access to a new market segment. The Emirates Airlines are currently the highest ranking airline in the world (Skyrax, 2016), and one of the factors which contribute to their success is their prioritization of in-flight entertainment. They claim that the in-flight entertainment system is for many a vital factor, especially for long flights. According to their standards, the qualities of an in-flight headphone to maximize experience are, good sound quality, noise reduction, and it should be comfortable (class, 2015). Beats© headphones possess all of the headphone qualities required by Emirates airline to provide high-quality in-flight entertainment. Thus an alliance to enhance their brands can be easily established. By joining forces with the airline, they would be able to provide the headphone brand with exposure to a different segment of the market. In addition to the previously mentioned, the alliance would also reinforce trust for the brands among consumers as both brands are at the top of their category (Upamannyu, Gulati, & Mathur, 2014). The appearance of these two brands together in a working alliance would have a positive impact on the consumer perception of their brands (Hao, 2015). 8 Beats Electronics©: Branding Assignment Report Conclusion Taking into consideration all the above, Beats by Dr. Dre is a remarkable brand with excellent reputation and sales so far. With its unique design, it is already distinguished from its competitors. Moreover, it has created strong associations with its consumers (reliability, uniqueness, superiority) and as a result, they are found to be dedicated and staunch to the brand. 9 Beats Electronics©: Branding Assignment Report Reference list Beats© by dr. dre. (2016). Beats© Solo 3 Wireless. Retrieved September 19, 2016, from http://uk.Beats© bydre.com/headphones/browse-headphones/wirelessheadphones/MNEN2.html?icid=internal_HomePage_na_GNS_UK_na_RoseGoldSolo3WLTout Beats© by dr. dre. (2016). People aren't hearing all the music. Retrieved September 19, 2016, from http://uk.Beats© bydre.com/aboutus Berman, J. (2016, March 21). Trying to Beat Beats© in the Headphone Category Remains a Challenge. Retrieved September 19, 2016, from http://hometheaterreview.com/trying-to-beat-Beats© -in-the headphone-category-remains-a-challenge/ class, B. (2015, may 20). Retrieved from Business Class: http://www.businessclass.co.uk/ Clow, K. E., and Baack, D. E. (2007), Integrated Advertising, Promotion, and Marketing Communications (3rd ed.). Upper Saddle River, NJ: Prentice Hall. Edwards, C. (2012) Beats© electronics is breaking http://www.bloomberg.com/news/articles/2012-01-12/Beats© (Accessed: 17 September 2016). up with monster. Available at: -electronics-is-breaking-up-with-monster Hao, A. W. ( 2015). Reexamination of Brand Alliance Evaluation Model: The Effects of the Overall Fit between Partner Brands on Consumer Brand Alliance Evaluation. Academy of Marketing Studies Journal, vol. 19 No. 1. how To Create A Global Brand Like Beats by Dr. Dre. (n.d.). Retrieved September 20, 2016, from http://www.naijapreneur.com/beats-by-dr-dre-marketing-strategies/ Kamins, M.A. (1990) ‘An investigation into the “Match-up” hypothesis in celebrity advertising: When beauty may be only skin deep’, Journal of Advertising, 19(1), pp. 4–13. doi: 10.1080/00913367.1990.10673175. Neate, R. (2013, September 29). Retrieved September 19, https://www.theguardian.com/music/2013/sep/27/dr-dre-Beats© -1bn-carlyle-sale 2016, from Peattie, M. (2012, May 5). Why are Dre Beats© headphones so popular? Retrieved September 18, 2016, from https://www.quora.com/Why-are-Dre-Beats© -headphones-so-popular Philips, T., Jnr. (2014). 5 Beats© by Dr. Dre Marketing Strategies for Entrepreneurs. Retrieved September 18, 2016, from http://www.naijapreneur.com/Beats© -by-dr-dre-marketing-strategies/ Specout. (2016). Compare Headphones. Retrieved September 18, 2016, from http://headphones.specout.com/compare/6307-6563-6690-7419/Sennheiser-Momentum-2-0-Wireless-vsParrot-Zik-3-vs-Beats© -by-Dre-Solo-2-Wireless-vs-Bose-QuietComfort-35 Salah, E., & Mohamed, Y. (2013). Brand Alliance, a strategy to enter new markets and a tool for positioning. Journal of Knowledge Management, Economics and information technology, 62-68. Skyrax. (2016). http://www.worldairlineawards.com/. http://www.worldairlineawards.com/awards/world_airline_rating.html Retrieved from 10 Beats Electronics©: Branding Assignment Report SONOS LOGO BRINGS THE BEAT. (2015, January 31). Retrieved September 20, 2016, from https://bus265joshuablum.wordpress.com/2015/01/31/3-4-sonos-lego-brings-the-beat/ Tesseras, L. (2016, January 14). Retrieved September 18, 2016, from https://www.marketingweek.com/2016/01/14/Beats© -cmo-on-dr-dre-apple-and-unconventionalmarketing/ The Headphones Market. (n.d.). Retrieved September 18, 2016, from https://brandsaudit.wordpress.com/theheadphones-market/ The Beats’ Motto: “Sound matters”. (n.d.). Retrieved September https://skemaheadphonebrandsaudit.wordpress.com/beats-vs-bose/beats/ 20, 2016, from Upamannyu, N. K., Gulati, C., & Mathur, G. (2014). EFFECT OF BRAND TRUST, BRAND IMAGE ON CUSTOMER BRAND LOYALTY IN FMCG SECTOR AT GWALIOR REGION. ScholarsWorld, Vol II , 85-93. Warc. (2015, August 6). Retrieved September 18, 2016, http://www.warc.com/LatestNews/News/Influencers_are_key_for_Beats© _by_Dre.news?ID=35188 from Why Fancy Headphones Got So Incredibly Popular. (2014, May 29). Retrieved September 19,2016,from http://www.huffingtonpost.com/2014/05/29/popular-headphones_n_5360641.html 11