Question

BOSE: HIGH-END SOUND REPRODUCTION

The sound reproduction has become one of the areas in which technological innovations have made the most profound leaps forward. Leading the way are major competitors such as Sony, Philips, Trivoli Audio, and Bose. Many forms of sound delivery exist, some featuring earphones and headphones, and others through stand-alone speakers.

The Bose Corporation began operations in 1964. Amar G. Bose, a professor of electrical engineering at the Massachusetts Institute of Technology, became frustrated during his attempt to purchase a high-quality stereo system. He believed that the speakers that were available had impressive technical specifications but failed to reproduce the realism of a live performance. Four years later, the first Bose product reached the market. In a very short time, Bose has delivered a series of innovations in sound.

Currently, the Bose Wave products are at the forefront of quality sound,including the Wave radio,Wave music system, and Acoustic Wave music system.Each is designed to deliver the most realistic sound through a compact, attractive device that will fit in any room in the home or office.The product can be linked with a dock that both plays and recharges an ipod.Another product allows the user to wirelessly play and store music from an internet radio station. Other Bose products include headphones, home theater systems, speakers, and sound systems for various locations, including boats and businesses.

Bose systems are on the high end in terms of price.For example, the most widely purchased Wave music system had a list price of $499.95 in November 2009.To entice buyers, product discounts are routinely offered, including a $100.00 price reduction when the Wave is purchased with the accompanying multi-CD changer.Also, Bose offers 1-year interest -free financing.

The Bose marketing program includes use of traditional media, most notably television, newspaper, and magazine advertising.The company’s Website allows buyers to find and purchase all items online.The company employs a limited number of retail stores that feature the Bose line. The primary marketing emphasis remains focused on quality.For example, Fortune rated the Bose QuietComfort headset, which cancels outside noise , as the best-quality option for headphones.

Although a company’s reputation for quality may help to drive sales, outside factors can interfare.The recession which began in 2008 and continued in to 2009 led many shoppers to cut back purchases, especially for more expensive luxury items.Bose was not immune to this

trend.The company was forced to lay off nearly 1000 workers, or 10 percent of its labor force, during the decline.

At the same time, Bose forged ahead, seeking to develop new technologies in areas other than sound.As the economy continues to recover, business analysts expect Bose to build on its core products while moving into new areas, furthering the growth of this innovative , energetic organization.

QUESTION 1 (Answer ALL parts)

1. Identify the market segmets that the Bose Wave products should continue to maintain.

2. Should Bose continue to compete based on high-price/high-quality positioning, or should it develop programs to reduce prices and entice a wider variety of shoppers?

3. Discuss the decision process and the influences on it that the consumers in this segment are likely to go through when buying Bose products.

Answer 1

1.Without the full financial resources of the company, this question is difficult to answer. It would rely on the assets that the organization retains if it could survive without diluting its face. However, a look at their website reveals that they are in several other diversified enterprises that form their core business of audio systems totally out of touch. This will help to sustain the company in the audio system industry through lean times. So you can assume that your brand value will not be weakened by attempting to reach the cheap market.

2.As an advanced, high-quality and technologically innovatively developed manufacturer, Bose's primary role in communication will sustain its place in the market of audio systems. The contact should also emphasize the brand's "snob interest." They also manufacture audio systems for vehicles, for example. These are however only found in the more expensive car brands and are built for each model of the vehicle.Bose's best approach to follow will be the Goal and Tasks Approach. Since it has a presence in different foreign markets, its goals should be measured in each of its markets. This may range from retaining a market position to entering a new market. The sum of all these targets would determine the tasks required to attain those targets. If these are established it is simple to quantify the costs associated with each function to determine the overall budget.