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Bose Corporation Communication Strategy for Challenging Apples Beats by Dr Dre Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 2397 | 1225 Words (5 Pages) | Robert J. Dolan | Harvard Business School : 518036 |
A Word File
While there have been a lot of arguments in the case study regarding the decision-making of the consumer and how the digital era has changed the access of information to the consumer, it is contrasting in the case of the headphones market. Bose seems to have the edge in terms of customer reviews. Even Brownlee who was considered as the “best technology reviewer on the planet” stated that Beats was good in terms of delivering the experience but in a separate video, he stated that Bose was the best headphones in terms of noise cancellation and “the gold-standard” for premium noise-cancelling headphones. However, when it came to figures, Bose held a 22% share while Beats held an astounding 62% share. The consumer buying behavior in the premium segment of the headphones market did not give priority to quality, but rather the brand image that came with owning a Beats headphone.
Following questions are answered in this case study solution
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Analysis
i. Consumer Buying Behavior
ii. Expert and Customer Product Reviews
iii. Bose’s Marketing Strategy
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Insights
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Conclusions
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Recommendations
Case Analysis for Bose Corporation Communication Strategy for Challenging Apples Beats by Dr Dre
Since the headphones were a publicly consumed luxury, they needed to be much more than just quality. Since Brownlee also defined Bose headphones as lightweight. Another reviewer claimed it as “slimsy-looking”, however, the audio quality was stated by him to be subpar for the price. This shows that the consumers were purchasing headphones in the premium segment for the look and feel of the product rather than the quality. Furthermore, apart from the noise-cancelling earphones, all other categories of headphones had Beats priced relatively higher which is a perfect example of the statement in the case by Digital Music News, customers confuse high price with high quality.
ii. Expert and Customer Product Reviews
While 54% of people searching online according to Google’s research, read reviews about the product online, there are far more consumers who searched online with a search engine (72%) and those who comparison shopped products (62%) meaning that they would have associated the look of Beats’ headphones as having higher quality than Bose headphones. Furthermore, 52% of people relied on customer reviews on retailer websites and 42% relied on online reviews by experts. The reason less than half depended on online reviews by experts was because most expert posts had affiliate links on their posts signifying that they are being paid for clicks, signups, or purchases. Therefore, even though customers have information available regarding the product online, they are skeptical about which information source to trust.
iii. Bose’s Marketing Strategy
Bose’s marketing strategy has been informational. While in the recent times there have been advertisements that focus on the entertainment aspect of adverts, it still focuses on differentiating through quality which is advertised. Therefore, as claimed in the case, many people on airplanes are seen wearing Bose headphones because the noise-cancellation headphones have been heavily advertised and therefore, in noise-cancellation, Bose is considered to be the best.
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