Bang & Olufsen Ba Exam
Introduction:
Bang & Olufsen was founded in Struer in 1925 by Peter Bang and Svend Olufsen. They are one of the leading providers in the market of high-end sound systems, operating in the electronic industry in both the Danish and the International Market.
Bang & Olufsen designs, develop and market a wide range of luxury audio/video products, including music systems, loudspeakers, television sets and multimedia products that combine new technology with Danish stylish design. In recent years Bang & Olufsen have experienced a huge decrease, in sales with repeated deficit. (B&O Annual report 11/12 (AP) p 8). In 2011, t o turn their deficit into profit, Bang & Olufsen launched a new five years strategy plan, “Leaner, Faster, Stronger”. The goals for the new strategy plan are to attract new customers with new cheaper products and create new distribution channels, with a new cost product line.
Problem statement:
How will Bang & Olufsen’s new strategy plan “leaner, faster, stronger”affect their future position in the Danish consumer market? * What are the core competences of Bang & Olufsen? * What are Bang & Olufsen’s main challenges in terms of consumer developments? * What is Bang & Olufsen’s current competitive situation in the market? * How will the new strategy affect Bang & Olufsen’s brand value?
We have chosen to focus on the BtC market to ensure a more thorough analysis. To answer the problem statement we will make use of different marketing theories and models. We will make an internal analysis by using the Value chain in order to determine B&O's core competences. To locate the most important external factors which influences the industry B&O operates in, we will use a PEST analysis. To analyse new potential customers on the Danish consumer market and determine consumer developments we will apply segmentation theory. Furthermore, we will use Porters 5 Forces to analyse the current
Bang & Olufsen was founded in Struer in 1925 by Peter Bang and Svend Olufsen. They are one of the leading providers in the market of high-end sound systems, operating in the electronic industry in both the Danish and the International Market.
Bang & Olufsen designs, develop and market a wide range of luxury audio/video products, including music systems, loudspeakers, television sets and multimedia products that combine new technology with Danish stylish design. In recent years Bang & Olufsen have experienced a huge decrease, in sales with repeated deficit. (B&O Annual report 11/12 (AP) p 8). In 2011, t o turn their deficit into profit, Bang & Olufsen launched a new five years strategy plan, “Leaner, Faster, Stronger”. The goals for the new strategy plan are to attract new customers with new cheaper products and create new distribution channels, with a new cost product line.
Problem statement:
How will Bang & Olufsen’s new strategy plan “leaner, faster, stronger”affect their future position in the Danish consumer market? * What are the core competences of Bang & Olufsen? * What are Bang & Olufsen’s main challenges in terms of consumer developments? * What is Bang & Olufsen’s current competitive situation in the market? * How will the new strategy affect Bang & Olufsen’s brand value?
We have chosen to focus on the BtC market to ensure a more thorough analysis. To answer the problem statement we will make use of different marketing theories and models. We will make an internal analysis by using the Value chain in order to determine B&O's core competences. To locate the most important external factors which influences the industry B&O operates in, we will use a PEST analysis. To analyse new potential customers on the Danish consumer market and determine consumer developments we will apply segmentation theory. Furthermore, we will use Porters 5 Forces to analyse the current
Bibliography: - Schiffman, Kanuk, Hansen. (2008). Consumer Behaviour. A European Outlook. Pearson Education Limited, Retrieved 5th November 2012) - Krol, Carol (1998, 4. May). Bang & Olufsen uses data to tune in to ‘real’ customer - Hollensen, Svend (2010). Marketing planning: A global perspective. Harlow, England: Prentice Hall, Retrieved 25 - Kvale, Steinar. (2007) Doing Interviews. SAGE Publications. Retrieved 3 November 2012 - Kotler, Philip (2012) Marketing Mangement – second edition - Schiffman, Kanuk, Hansen. (2008). Consumer Behaviour. A European Outlook. Pearson Education Limited, Retrieved 5th November 2012) ARTICELS: - Euromonitor International (2011, 31 March) Consumer electronics in Denmark – Research from C&C - Euromonitor International (2011, October), Bang & Olufsen A/S in consumer electronics (Denmark) Euromonitor International. Retrieved 6th December 2012 from Global Market Information Database. - Euromonitor International (2012, May), Latest research: consumer electronics 2012 Euromonitor International. Retrieved 6th December 2012 from Global Market Information Database. - Euromonitor International (2011, June), Consumer electronics new edition, Euromonitor International. Retrieved 6th December 2012 from Global Market Information Database. - Jørgen Bang, Morten (2012, 15th August) B&O forventer stærk vækst, Retrieved 23 November 2012 from http://www.business.dk/detailhandel/bo-forventer-staerk-vaekst Jørgensen, Bang, Morten (2012, 15 2012 from (http://ing.dk/artikel/111313-statussymbolernes-flugt-over-plankevaerket) Larsen M, Jakob (2012, 28 November, B&O brand scorer designpris, Retrieved November 15 2012 from, http://www.business.dk/digital/bo-brand-scorer-designpris Jørgensen Bang, Morten (2012, 15 August) Det er stadig et luksusmærke, Retrieved November 15 2012, from ( Larsen, Rasmus (2012, 10 February ). An introduction to B&O PLAY - New TV coming http://www.flatpanelshd.com/focus.php?subaction=showfull&id=1328887027 Langbæk Logistik (2011, 17 June) Outbound logistic. Retrieved 16 November 2012, from http://www.langebaek.com/bang-olufsen-direkte-distribution-til-hele-verden- Statestik banken (2012, December) “Disposable income by region, unit, sex, age and income interval” Retrieved 13 December 2012, from Http://www.statistikbanken.dk/statbank5a/selectvarval/saveselections.asp