Case Presentation on Bose: Better Products Through Research (MKTG 494)

Products/Services

1

Speakers

Headphones

2

PRODUCTS/

SERVICES

3

Automative Suspensions

VALUES

• Innovation and Technology

• Teamwork and Collaboration

• Growth

• Financial Viability

COMPETITORS

• Sony

• Harman

• JBL

Target Market

• Baby Boomers (30 - 50 year olds) in the urban area
• Dual income
• Close to retirement
• High buying power

CONSUMER BUYING BEHAVIOR

• High prices
• High involvement and time commentment to research
• Low frequency in purchases
• High social visibility

PRODUCTS & SERVICES STRATEGIES & TACTICS

• Innovation

• Curiosity

PRICING STRATEGIES & TACTICS

• Premium Pricing Strategy

• Product Line Pricing Strategy

PRICING STRATEGIES & TACTICS

DISTRIBUTION CHANNEL STRATEGIES & TACTICS

• Selective Distribution Channel
• Doesn't target all available outlets
• More than one outlet

DISTRIBUTION CHANNEL STRATEGIES & TACTICS

PROMOTION STRATEGIES & TACTICS

• Advertisements to generate leads

• In-home demonstrations

• Advertising lifestyle instead of product

GLOBAL ENTRY & MARKETING STRATEGIES

• Operations in Americas, Asia Pacific, and Europe

• Two current facilities in Tijuana, MX and Framingham, MA

9-18

The New Product Development Process is one of the many concepts that can be directly applied to Bose’s success today. Amar Bose was one of the key sources of Idea Generation as his passion for research fueled much of Bose’s product development. Bose’s greatest success comes from their Marketing Strategy Development as they were able to effectively find specific customers to market their product to when their product was initially shut down or received an extensive amount of criticism.

9-19

Bose’s product development is not only customer centered, but also research centered as well. As mentioned in the case study, Bose’s philosophy and slogan “Better Sound Through Research.” Bose produces products that targets specific issues held previously by consumers by starting from scratch and researching the best way to solve these issues. There are times when Bose products may not seem customer centered due to their unconventional method of not basing products off what customers want, but in the end their final products show how much superior they are when tested by consumers.

9-20

Bose’s product life-cycle management is often unique in that many times their products start off declining than growing due to the customer demand at their product’s launch. As mentioned in the case study, Bose’s small, innovative 901 speakers initially flopped at a time period where huge woofers and tweeters were all the craze. Bose had difficulty convincing customers at the time of the superior sound quality and technology of the 901 speakers, and this product did not take hold until decades later. It is not until then that the 901 series exploded in popularity and is even being sold today.

9-21

Some challenges Bose faces in managing its product portfolio is the fact that many of Bose’s products take a while to hit growth in the market and there is a lengthy research process involved with each Bose product. Bose does not look to crank out new product after product like their competitors do, but focuses on making one product the highest standard of achievement. For example, it states in the case study that Bose invested over $100 million over 30 years on their electromagnetic suspension system. They took the long time and resources required to make a state-of-the-art product. Due to this method, Bose does not have a huge product portfolio, but instead has very few, focused products that market to specific audiences.

9-22

As long as Bose follows Amar Bose’s philosophy and maintains their curiosity in research and building the perfect product, they should have no reason to forsake their innovative culture. It is up to the executives at Bose to constantly follow this tradition, and take steps to constantly push for strategies that spur innovation and research. A method they can use to follow this is to seek out team members and other executives that follow Amar Bose’s line of thinking. Replenishing individuals that have the same passion for research and innovation as Amar Bose will help the company maintain its traditions and not fall victim to the constraints and profit hungry ways of corporate America today.