Bose Corporation is an American privately held company and a leading player in the audio equipment industry. The company is based out of Framingham, Massachusetts United States of America. Dr.Amar G. Bose, a product of Massachusetts Institute of Technology, founded the company in 1964.
Bose is best known for the manufacture of home audio systems and speakers, professional audio systems, noise cancelling headphones, and automobile sound systems. It specialises in wireless technology. The company also has to its credit R&D work in the areas of suspension technologies used for heavy-duty trucks and cars, and the subject of cold fusion.
In fact, its strong R&D and acquisition skills have contributed to making it a global player in the wireless audio device market having footprints in almost every country in the world. It formidable its fans who say that Bose is to audio systems what Microsoft tout reputation in the area is to operating systems, Intel is to microprocessor chips and Google is to search engines.
Though there are few other players also in the segment, none of them offers the variety of products Bose does.
Its chief competitors are as follows-
Product in the Marketing Mix of Bose :
Wireless audio device market is a relatively new market. In this scenario, Bose has emerged as a prominent player in the use of wireless technologies in audio devices. Though there are other players in the market; most of them are focused on one or two products such as headphones and sound bar. Bose has an edge over the others due to the sheer spectrum of products offered by it. It has also successfully delved into areas like suspension technologies for automobiles.
Its product range includes:
- Wireless Noise Cancelling Headphones
- Wireless Speakers
- Wireless Sound Bars
- Wireless Microphones
- Car Audio
- Automotive Suspension System
- Seat Suspension System for truck drivers
Within each of these broad categories, the company has on offered a variety of products like Docking speakers, Home Theatre, Stereo Speakers, Aviation Headsets, Over-Ear Headphones, SoundTouch systems, SoundLink Speakers to name a few.
Place in the Marketing Mix of Bose :
Bose Corporation is a multi-national having its presence across the globe. It has 190 stores in the United States and numerous locations worldwide including technologically advanced countries like Japan and Korea. In Britain, there are eleven standard Bose stores and few in the ‘factory outlet’ variety. In fact, Bose Products are available in the following types of stores:
- Bose Stores
- Bose Factory Outlet
- Bose Airport Kiosks
- Bose Personal Audio Store
- Bose Showcase Store
The type of products available in the stores may vary. For example, an airport kiosk store will feature products suitable for a traveller like a wireless headphone. A showcase store, on the other hand, will have on display an entire line of innovative Bose products.
Price in the Marketing Mix of Bose :
Bose Corporation caters to a niche target audience and relies on minimal advertising. Its products are more highly priced than close competitors like Sony. However, it’s important to mention that most of its products are high-end because they are innovative and with excellent sound system. The components and speakers also come at a high price.
Some of its featured products like SoundLink Mini Bluetooth Speaker II have a maximum retail price of Rs18, 000 in the Indian market. Its close competitor Sony’s SRS-X3 costs marginally less at Rs. 17, 790.00. At times, the price difference is considerable as in the case of Home Theatre systems. Bose Home theatre systems start at Rs 2300. But Sony’s Home Theatre systems are available even at 18, 844 as in the case of Sony DZ-350 5.1.
Promotions in the Marketing Mix of Bose :
Bose Corporation relies on a low-key adverting policy compared to its competitors in the industry or for that matter other similar multinational giants. The company’s primary marketing strategy is to make its products available to the consumer directly with no middleman or resellers. To this end, Bose has focused on selling through exclusive stores that the company has set up. E-commerce websites are another option to make its products available to the consumers.
The strategy of minimal advertising is a little surprising considering in consumer durable goods segments, product features often undergo change and consumers need to be communicated on the same actively. However, the company believes in targeting a niche market and holding people’s attention with its innovative and atypical products. Due to this nature of the company, competitors like Sony and LG are moving higher in the value chain and commanding a lot more consumer attention. As a corporate brand, it is said to be a company that reinvests 100% of its profits back into the company for growth and development.