Chapter 11 Developing and Managing Products

Beats by Dr Dre was founded on July 25 2008, rapper and producer Andre “ Dr Dre” jimmy lovine cofound beats headphones. These great pioneers realized that people would buy headphones that finish the music in the way they like. In my eyes Music is never finished; we can chop and screw, add bass, slow it down one hundred times, mash it up with something else it will still be music until you own a pair of beats headphones. These headphones were created for consumers who love music and wants to feel the music the way its being made in the studio. Before the innovation of these headphones they were none like it.

Product life cycle for beats by Dr dre

Introductory stage

Dr dre

·      Real name Andre Romelle Young

·      Producer, rapper & Entrepreneur

·      Co-founder of beats

Jimmy Iovine

·      Entrepreneur

·      Record and film producer

Growth stage

·      Wireless earphones

·      Tangle free and wireless ear buds for your electronic device

·      Released in 2009

·      Benefits are they are smaller than normal size headphone and cost less.

·      Wireless for workouts

Maturity stage

·      Noise canceling headphones made for electronic device

·      Released in 2008

·      These headphones made 309 million dollars

·      Problems: this was their first product so they were testing out the market and had a lot of competition

Decline stage

Beats pill

·      Problem no volume regulation and consistency

·      Too expensive

·      Considered as the problem child for beats “high cost & low sales”

CHAPTER 8 Segmenting and Targeting Market

Segmenting and targeting market

Market segmentation plays a major role in the marketing stratergy of almost all successful business segmentation helps decision makers to more accurately define marketing objectives and better distribute resources 

Demographic segmentation

Beats by dr dre headphones represent the sound attitude and culture of both males and females18-34 year old urban males who just wants to differentiate them. People who are seen wearing these headphones are considered to be fashionable and are very interested in music and the sound quality of the music over the cost.

Positioning

Since Dr Dre have such a high concentrated target market he now finds his product have a niche market which made them positioned themselves as the most “cool” and fashionable headphones on the market today almost a must-have for every young person as well as anyone who loves music.

Product differentiation “Beats vs. Bose wireless headphones”

Beats

Pros

·       Excellent sound

·       Good noise-cancelling capabilities

·       OK battery life

·       Slick design

·       Great microphone

·       Wireless

Cons

·       Very uncomfortable to wear

Bose

Pros

·       Excellent sound

·       Good battery life

·       Descent design (but not as slick as the Beats)

·       Great microphone

·       Very comfortable to wear

·       Wireless

·       Can be linked to multiple devices via Bluetooth

Cons

·       No noise-cancelling capabilities