The BEATBIT

1. The BEATBIT Created by: Jack Howard, Harry Card, Dom Coppola and Dan Weinhardt

2. Commercial BeatBit Commercial

3. Executive Summary  • Through its family of premium consumer headphones, earphones and speakers, Beats has introduced an entirely new generation to the possibilities of premium sound entertainment. • Beats was recently acquired by Apple Inc., allowing the headphone company to utilize Apple's influence and resources to drive their products to new and larger markets.  • The audio brand now sets out to compete in the rising fitness tracker market.

4. situation Analysis

5. Mission Statement • The company's mission is to provide a superior end-to-end music experience- with headphones, devices and services- so fans feel the emotion and hear the music the way artists intended it to sound from the studio.

6. VISIONSTATEMENT • Beats by Dr. Dre (Beats) is a leading audio brand founded in 2006 by Dr. Dre and Jimmy Lovine. Through its family of premium consumer headphones, earphones and , Beats has introduced an entirely new generation to the possibilities of premium sound entertainment. The brand’s continued success helps bring the energy, emotion and excitement of playback in the recording studio back to the listening experience for music lovers worldwide. Beats was acquired by Apple Inc. in July 2014

7. BREIF HISTORY • Created by well-known musician, Dr. Dre, and Jimmy Lovine, in 2006 • In 2013, Apple bought Beats Electronic for $3 billion • They have been a leading brand for headphones for the past 5 to 7 years • With many famous athletes and musicians advertising the brand, Beats has become a very popular brand • Before being bought out by Apple, they had roughly 700 employees and generated a revenue of 1.5 billion (2013)

8. STOCK PRICE & Annual Revenue • Although Beats is a private company they are owned by Apple Inc.  • When Beats were public in 2013 they were estimated to reach a revenue of 1.4 billion

9. MARKETING SPENDING • In 2016, Apple spent $1.8 billion on marketing of all products including Beats Headphones, which is nearly a 50% rise from the previous year of $1.2 billion

11. Internal analysis • The key focus areas for Beats Headphones would be lowering the price, still maximizing the revenue • Beats is also controlled by Apple, which has a positive and a negative side to it • Since Apple is a large company, Beats will generate more revenue which allows them to spend more on marketing and advertising • A down side to being controlled by Apple, is the fact that if Apple has a period of low profits it could potentially effect Beat's funding. 

12. External Analysis

13. TRends • Typical headphones have a button on part of the wire that is able to control the volume and music playing. • All types of fitness trackers have a watch, heartrate monitor, and distance tracker. • Products can be stored easily and don't occupy too much space.

14. Outside Factors • Outside factors that could potentially affect sales could be technological advances, therefore making the product more user friendly, lightweight, and cost effective.  • Additionally, an increase in social popularity of our product could drive even more sales. •  Legal factors such as patents would promote product differentiation; making Beat Bit unlike any other competitor. •  Endorsements from prominent figures in society, such as worldwide famous athletes can influence the product and make it more popular in other cultures.

15. Customer Demographic • Our target market ranges from individuals who exercise on a non-periodic basis and want to listen to music, to people who invest much of their time into their workouts such as CrossFit. • Both groups would utilize our products ability to track calorie consumption, distance covered, heartbeat rate, sleep time, sweat rate, body temperature, and brain activity.

16. Market Size • The wearable tech market is expected to be worth $34 billion by 2020.  • The wearable fitness trackermarket is expected to increase significantly in the future with the introduction of innovative products in this market.

17. Competitive Analysis 

18. Competitors  • According to Time Magazine, Beats by Dre ranks in the top 18 best headphone companies in the world.  • Top three Beats by Dre competitors for the headphone and fitness tracker market: • Bose  • Fitbit • Xiaomi 

19. Competitor #1 • Bose's products are speakers, audio systems, and headphones. Bose is a direct competitor to Beats and theses two companies are very competitive because both companies are competing to be at the top of the speaker and headphone market and make the most profit. Bose Strengths:  • Strong self-image • Very well known in the United States and around the World • "Stablished brand, known as synonymous with high quality and luxury living."  • "Top-quality sound systems that deliver an unquestioned rate of customer satisfaction." • "Acquired ground breaking technology that has allowed them to improve the sound and quality of the speakers and sound systems."

20. Competitor #2 • Fitbit's product is a fitness watch and this new product has opened the door for a new market. The new lifestyle is to be healthy so a fitness watch attracts to a very large demographic. Beats initially had no competition with Fitbit, but since Beats is working on their own fitness watch, Fitbit will be the number one competitor for this market. Fitbit Strengths:  • Allows people to me aware of how health their personal lifestyle is • An uprising product that attracts people to the new fad of being healthy • "Nimble" • "First Mover Advantage" • "Great Technology & Value" • "Platform Openness" • "Corp Wellness/Affiliate Channel"

21. Competitor #3 • Xiaomi is a foreign phone company (Asia) very similar to Apple, Android, and Samsung and their main products are phone's and tablets. Xiaomi is a very popular and successful foreign company and has really no effect in the United States at the moment, but could potentially start expanding to the United States. Xiaomi has their own fitness tracker and could be a potential competitor if Beats goes global with their new fitness tracker. By examining Xiaomi's market and success this gives Beats an idea what they could be up against in the future.   Xiaomi Strengths: • Foreign product • Chinese company powered by Google • "Apple of the East" • Most popular phone company in Asia (large market)

23. Target Market

24.  Demographics and Lifestyle of Target Market • Men and Women Ages 16-29 with a healthy lifestyle, focusing on working out every day with a routine and are looking for something to help them get the most out of their workout.  • Looking to stay with mainstream brands, and fit in among their friends, status symbol • Want to stay connected with friends, competitively or workout together  • Middle to upper class, suburban consumers  • Connected Bohemians, Young Digerati, Upward Bound, The Cosmopolitans, and The Up-and-Comers. • All the following target markets that were identified have a very high use of technology, are mostly active, follow some sort of sport, and are aged between 16-29.

25. Challenges  • Barrier to Entry – Customers may not accept the product to the fitness tracker market. People could reject the Beat-Bit as a product. Brand loyalty could kick in and the consumers of the fitness watch market could stay loyal to Fit-Bit or other fitness watches. • Competition- The competition in the fitness tracker market could be very intense and Beat-Bit could end up failing. Beats could put in a large amount of money to get Beat-Bit going in the product life cycle and Beat-Bit could end up failing. Also, another company could take the product idea of the Beat-Bit and release before Beats does and Beat-Bit could be looked at as a copy and fail.                    

26. Concrete Marketing Goals • Through a partnership with Apple, Beats sells to 11 percent of the headphone market, being beaten out by big competitor Sony at 17 percent. Through the release of our fitness tracker, we aim to gain more control of the headphone market and increase to 15 percent market share.  • Raise revenue from 3 billion to 3.2 billion with the launch of our new fitness tracker product line within the upcoming fiscal year.

29. Marketing Mix analysis & recommendations

30. Features • Play music, Track mileage, Track Time, Beeps when you fall behind pace(on/off), Can use Headphones even when not working out (Studying, Getting to Class, just listening to music) • Workout Mode- Tracks workout, plays specialized playlists, Beeps when athlete falls behind on desired pace • Resting Mode- Works like everyday headphones • Battery: 12 hours Bluetooth, 20 hours connected • Connectivity- sync with apple platforms to get friends data and compete with groups in most steps per day, fastest mile or longest run

31. packaging • Shows that the product is high quality • comes with 90 day warranty for any malfunction of product • includes a case and for in-ear headphones includes different size buds • also comes with stickers of Beat logo to spread the brand and product name

32. Product launch  • launch the over-ear headphones on November 10, this way we would have initial buyers for a few weeks after • Black Friday, which will increase our sales greatly for the holiday season and beyond • Black Friday we could launch the other 2 designs on sale which will generate hype for the product and raise our sales • Will be sold online and at stores • Over-ear: $249.99 • In-ear: $199.99 • On-ear: $349.99

33. Product

34. Work Cited • Lamkin, Paul. “Wearable Tech Market To Be Worth $34 Billion By 2020.” Forbes, Forbes Magazine, 17 Feb. 2016, www.forbes.com/sites/paullamkin/2016/02/17/wearable-tech-market-to-be-worth-34-billion-by-2020/#402506403cb5. • Glazman, Daniel. “Beats Electronic - Company's Strategy Deconstruction.” Slideshare.net, LinkedIn, 22 Sept. 2013, www.slideshare.net/danielglzmn/beats-electronics-companys-strategy-deconstruction. • “Best Headphones: 18 Brands Ranked from Worst to First.” Time, Time, time.com/74886/best-headphones/. • “Unreachable.” Essays24.Com - Term Papers and Free Essays, www.essays24.com/Business/Bose-Corp-Swot-Analysis/24851.html http://capitalistcreations.com/bose-schools-entrepreneurs-on-the-importance-of-style/. • https://www.beatsbydre.com/company/aboutus • Moorhead, Patrick. “Nike, FitBit, Or Jawbone: Who Is Best Positioned To Win In Fitness Wearables?” Forbes, Forbes Magazine, 21 Nov. 2013, www.forbes.com/sites/patrickmoorhead/2013/11/19/nike-fitbit-or-jawbone-who-is-best-positioned-to-win-in-fitness-wearables/#5363808427ef. • Seifert, Dan. “What Is Xiaomi? Here's the Chinese Company That Just Stole One of Android's Biggest Stars.” The Verge, The Verge, 29 Aug. 2013, www.theverge.com/2013/8/29/4672668/what-is-xiaomi-china-smartphone-hugo-barra-android. • “Apple Inc. Common Stock Historical Stock Prices.” Nasdaq.com, www.nasdaq.com/symbol/aapl/historical+. • Carnette, CFA Jamal. “Is Bose Stepping Up Its Rivalry With Apple's Beats?” The Motley Fool, The Motley Fool, 18 Dec. 2014, www.fool.com/investing/general/2014/12/18/bose-continues-its-rivalry-with-apples-beats.aspx. • “Segment Details.” Claritas MyBestSegments, segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=30&menuOption=segmentdetails&pageName=Segment%DEtails. • Beck, Julie. “Less Than 3 Percent of Americans Live a 'Healthy Lifestyle'.” The Atlantic, Atlantic Media Company, 23 Mar. 2016, www.theatlantic.com/health/archive/2016/03/less-than-3-percent-of-americans-live-a-healthy-lifestyle/475065/. • “What Buyers Want from the New BEATBIT?” Google, Google, docs.google.com/forms/d/1iGSwVsd6a8RCjzOVxJXpsPn1rrRJ_X1bjOQBBssrUME/edit. • Savov, Vlad. “Headphones Are Growing More Expensive Because We Demand More of Them.” The Verge, The Verge, 13 May 2016, www.theverge.com/circuitbreaker/2016/5/13/11669906/headphones-market-price-worldwide-statistics. • Carr, Austin. “Major Beats: Beats Electronic May Be On Track To Hit $1.4B In 2013 Revenue.”Fast Company, Fast Company & Inc, 31 July 2013, www.fastcompany.com/3015051/major-beats-beats-electronics-may-be-on-track-to-hit-14b-in-2013-revenue. • Spainer, Gideon. “Apple Ad Spend Rises 50% To Record $1.8 Billion.” Campaign US, Haymarket Media Group, 30 Oct. 2015, www.campaignlive.com/article/apple-ad-spend-rises-50-record-18-billion/1370742.