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Marketing Project by:

Dhaval Popat Roll No: 10

Mickey Haldia Roll No: 19

Rajat Mishra Roll No: 30

Sahil Patel Roll No: 38


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Shirish Apradh Roll No: 43
INDEX

HISTORY OF BOSE------------------------------------------------------------------------------------------------------ 3
ABOUT BOSE CORPORATION--------------------------------------------------------------------------------------
ERROR! BOOKMARK NOT DEFINED.
THE PRODUCTLINE OF BOSE-------------------------------------------------------------------------------------- 7

Bose Roommates/Video mate Powered Speakers------------------------------------------------------------------------7


Bose Acoustimass 16 home theater speaker system----------------------------------------------------------------------8
Bose mediamate------------------------------------------------------------------------------------------------------------- 8
Bose companion 3-------------------------------------------------------------------------------------------------------------8
Bose Micro Music Monitor speakers---------------------------------------------------------------------------------------9
Bose SoundDock-----------------------------------------------------------------------------------------------------------------------------------------9
Wave® music system---------------------------------------------------------------------------------------------------------9

MACRO ECONOMIC FACTORS---------------------------------------------------------------------------


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ERA IN HOME ENTERTAINMENT--------------------------------------------------------- 11

COMPETITIVE LANDSCAPE---------------------------------------------------------------12

SEGMENTATION--------------------------------------------------------------------------13
Customer Analysis------------------------------------------------------------------------------------------------------------13
Competitor's Analysis--------------------------------------------------------------------------------------------------------14
Market Share-------------------------------------------------------------------------------------------------------------------15
Bose's Retail Strategy---------------------------------------------------------------------------------------------------------16
Bose's Positioning-------------------------------------------------------------------------------------------------------------17

SWOT ANALYSIS------------------------------------------------------------------------------------------------ 18
Strength--------------------------------------------------------------------------------------------------------- 18
Weakness ------------------------------------------------------------------------------------------------------------ -19
Opportunity------------------------------------------------------------------------------------------------- - 19
Threats-------------------------------------------------------------------------------------------------------------- - 20
ADEVERTISING------------------------------------------------------------------------------------------------------- 23
EXPANSION PLANS--------------------------------------------------------------------------------------------------
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INTERVIEW----------------------------------------------------------------------------------------------------------- 26

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HISTORY OF BOSE CORPORATION:

Bose Corporation was founded in 1964 by Amar Bose, initially Bose Corporation worked on military
audio and sound contracts. Amar Bose is a prolific inventor7 and has registered dozens of patents7 for
audio and sound technology.
The company builds all types of high-end audio equipment, from commercially available music players
and home theaters to auditorium sound systems and equipment for military aircraft and submarines and
even NASA.8 - A quote from the blog of Law Wire

In 1987, Dr Bose was awarded theInventor of the Year title by the Intellectual Property Owners
Association for his inventions in "Acoustic waveguide speaker technology"8.
In 2008, Amar Bose was inducted into the National Inventors Hall of Fame9 in Akron, Ohiofor his work
in Audio Technology.

Now in December, 2009 Amar Bose (at the age of 80) who was founder of Bose Corporation some 45
years ago is still working day to day and still operates as CEO.

AMAR BOSE

Statistics:
Private Company
Founded: 1964
Employees: 4,000
Sales: $1.1 billion (2000 est.)
NAIC: 334310 Audio and Video Equipment
Manufacturing

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Key Dates:

1964: Amar G. Bose founds Bose Corporation.


1968: Company introduces the 901 direct/reflecting loudspeaker.
1970s:Research into car stereos begins.
1972: Bose begins selling loudspeakers for professional musicians.
1983: Company loses libel lawsuit against Consumer Reports magazine, at the U.S. Supreme Court level.
1984: Acoustic Wave Music System is introduced.
1990: Lifestyle speaker systems are introduced.
1993: The Bose Wave radio makes its debut.
1997: New corporate headquarters building is dedicated at 'The Mountain.'
1999: Company launches online sales from its web site.

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ABOUT BOSE CORPORATION:

Bose - Better Sound Through Research

1. Bose Corporation is a privately owned company which was founded in 1964 by Amar Bose, the
company now has an annual revenue of $1.8Billion.
2. Bose are Audio technology developers and product manufacturers, based in Framingham,
Massachusetts, USA.

Ranking 220th on Fortune's Private 500 list, Bose Corporation is engaged in the
1) Development, manufacture, and marketing of loudspeakers,
2) Consumer and professional audio systems
3) Automobile sound systems
4) Noise cancellation technology for the aviation industry
5) Computer simulation software to analyze auditorium acoustics.

Initially producing amplifiers for the U.S. Defense Department, Bose later introduced the Bose 901
Direct/Reflecting speaker, which, with modifications, would remain the company's flagship speaker into
the early 21st century. Known for its industry innovations and the high quality of its products, Bose
markets a wide variety of sound equipment popular among consumers and corporate clients, most notably
automobile manufacturers General Motors Corporation, DaimlerChrysler AG, Honda Motor Co., Ltd.,
Nissan Motor Co., Ltd., and Audi AG. The company maintains production facilities in the United States,
Canada, Mexico, and Ireland. Its products are sold through retailers, via 60 company-owned Bose outlets
in the United States, and directly to consumers through the company web site, direct mail, and newspaper
and magazine advertisements.
Bose have 125 retail stores in the USA and others around the world.

In an NPD Group survey of the US market covering the period November, 2008 -
April,2009 Bose ranked 3:
1. Ranked 3rd in the $1.4Billion Home Audio market and
2. Ranked 3rd in the $3.3Billion Portable Audio market.

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Competitors
 Cambridge Soundworks
 Harman International
 Klipsch
 Boston Acoustics
 Polk Audio
 Pioneer Corporation
 JVC
 Panasonic
 Sony
Products/Services
 Wave Systems12
 Headphones and Headsets
 Headphones and Headsets
 Digital Music Solutions
 Sound Dock for iPod
 Speakers

Awards

 2004 Fortune Magazine's Best Products of 2004 - Sound Dock series I


 2004 Number 1 Must have Gadget of 2004 - Sound Dock series I
 2005 Red Dot award for product design - Sound Dock series I
 2006 MacUser's Audio of the Year award - Sound Dock series I
2008 Red Dot Award for product design - Sound Dock Portable

Right now Bose has the stores in 16 different cities and professional solution stores in 5 cities
across the INDIA.

Company Perspectives:

Bose believes that audio products exist to provide music for everyone, everywhere--that music, not
equipment, is the ultimate benefit. The Bose goal is to create products that combine high technology with
simplicity and small size to create the best possible sound systems that are easy to use and accessible to
all consumers.

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THE PRODUCTLINE OF BOSE:

Bose’s product portfolio includes products such as Speakers, Multimedia sound, Outdoor & Marine
speakers and Headphone and headset. Bose also develops high-end audio systems customized for
particular high-end automobiles.

Bose is active in several audio technology market segments, including

 Home systems: home theatre, home music


 Personal audio: headphones, iPod accessories
 Mobile audio: high-end systems tailored to specific manufacturer models
 Professional audio: speakers, control systems, and other equipment for auditoriums

Bose Roommates/Videomate Powered Speakers

A powered speaker is technically one that has its


own amplifier built into the speaker (usually
only one speaker), and therefore plugs into a
nearby outlet. However, a powered speaker is
not necessarily an active one, as the crossover
components within a powered speaker can be
passive. Powered speaker systems have the
advantage of being a bit more streamlined,
compact, and portable and are typically used
with computers and iPod/MP3 docking

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Bose Acoustimass 16 home theater speaker system

The Acoustimass 16 is among the first 6.1 speaker


packages Bose has produced. This package includes
six of Bose's distinctive Direct/Reflecting cube
speakers. These two-way speakers contain a pair of
2-1/2-inch drivers, with each driver mounted in a
separate cabinet. Each section can be configured so
that the sound from one driver hits the ears directly,
while the other bounces the audio off surrounding
walls. This gives these little speakers the sound of a
much larger cabinet, although they practically
disappear into the decor. The Direct/Reflecting
cubes are magnetically shielded so they will not
Bose mediamate cause distortion in a picture tube, and they have a
recommended power rating up to 200 watts.

Connect Medi Mate speakers to your computer or


personal player to enjoy quality sound from your
CDs, streaming audio, MP3s and DVDs. These small,
sleek speakers incorporate Bose technology for a
surprisingly wide soundstage. Dual inputs let you
connect a second media player, and the volume
control feature and headphone jack provide greater
convenience and flexibility

Bose Companion 3

The Bose Companion 3 is great-looking, solidly


built three-piece system that produces moderately
high volume levels, snappy bass, and a delightful
transparent, spacious midrange. It lacks deep bass
output and is a bit too bright for our taste, but
neither of these flaws is enough to negotiate its
formidable strengths.

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Bose Micro Music Monitor speakers
The active micro speakers “Micro Music Monitor”
from BOSE produces full and rich sound even at low
volumes. Available in black\silver color the Boss
"Micro Music Monitor (M3) is powered either by four
AA batteries or AC adapter. The built in digital
amplifier has a rated output of 20W×2ch when used
with AC adaptor and 2W×2ch.when powered by AA
batteries. The micro speakers feature 50mm
neodymium magnet drivers with aluminum heat
sinks and have one stereo mini- analog input

Bose SoundDock 10
The new SoundDock 10 weighs in at 19 pounds and
measure 10-inches deep, leaving room for a good-
sized woofer, 52-inches of winding, integrated
waveguide channels and a pair of Bose "Twiddlers" up
top. The Twiddlers are apparently a patented
combination of highs and mids, and the new
waveguide is an effort to shrink existing Bose tech
down to size.

Wave® music system


Bose Wave music system includes an AM/FM radio
and a CD/MP3 player, the SoundLink adapter and a
Bluetooth USB key. it will play PC-stored protected
and unprotected music as well as Internet music
sources accessed via the PC. The Wave's remote will
send basic control commands to a PC's iTunes or
Windows Media Player software, allowing users to
skip tracks or play/pause PC-stored songs even when
the computer is in a different room.

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MACRO ECONOMIC FACTORS:

MICRO ECONOMIC FACTORS:

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Era in home entertainment:

Stereo systems of the kind Bose sells are just one aspect of home-based entertainment. Since the burst of
American prosperity in the post-World War II years, there was been dramatic increases in range of
options people have been able to choose from. In the chart above, we show how expectations and
complexity have also grown, being fed by enormous technological advances.

Home entertainment has been increasingly provided by electronic devices, bringing with them a series of
user interface challenges. Increasing choice seems inextricably tied to increasing complexity. Today, we
are no longer content to flip on the am radio and listen to mainstream music, with advertisements—we
know there’s a better option, and we’re willing to pay in time and/or effort to get just the particular kind
of music we want, commercial free. Is that more relaxing? It’s not clear.

Against the backdrop of so many options, it is easy to see why home entertainment, and home
entertainment electronics in particular, has become a massive business, worth an estimated $135.4 billion
at the wholesale level in 2006.

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COMPETITIVE LANDSCAPE:

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SEGMENTATION:

CUSTOMER ANALYSIS

1) Geographic

It is in Bose's best interest to pursue geographical areas such as suburbs and big cities.Customers
in rural areas wouldn't have the access to go to a Bose store, but could still order the products
online if they are interested in purchasing. Since the emergence of e-commerce, it is possible to
reach all areas of the globe via web-interface. It is possible to not only reach a broader market,
but to do so at a relatively low cost. The overhead costs from distribution are greatly reduced due
to direct shipping from online sales.

2) Demographics

Demographic segmentation variables are among the most popular bases for segmentingcustomer
groups. Bose needs to be careful not to limit its evaluations to just age and race but also to take
social class and income into account. It is a primary initiative to capture the market segments
with an average to higher income level since Bose represents more of a prestige product. Bose
exceeds its competitors in innovation,durability, and higher sound quality, and is therefore priced
higher than the competition.

3) Income Level

Typically, Generation X and the Baby Boomers have a higher amount of discretionary income
and more experience in purchasing products for their homes such as home theater systems.
Included in these age groups are owners and General Managers that would be purchasing
commercial products for stores and office buildings. It is safe to say that customers that are
satisfied with their home audio systems, when given an opportunity to purchase an audio
solution for corporate application that they are more likely to use Bose as their solution.Bose
customers tend to be older single males, families that have older children, or empty-nesters. The
stage in the family lifecycle cycle is most often mature adults with steady and stable incomes that
are usually higher than the average family. These customers can both afford and appreciate the
quality offered by Bose products.

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COMPETITOR'S ANALYSIS

Being the leader in its area, Bose focuses its attention on the products research and development
than on analyzing any competitors, that if any exist. Bose started from scratch developing its
own technology for the last 50 years, spending millions on research for one reason and that is to
be the leader in its area. So other companies are more likely to be analyzing Bose and its
strategies. But if we assumed that Bose do analyze the competition then that could be to figure
out what the competitors don’t provide in their products. By doing so Bose can make sure they
are ahead of the game in providing the customers with high quality products that can’t be found
in any other company.

Considering the three marketing strategies:- entrepreneurial marketing, formulated marketing,


and entrepreneurial marketing. We can say that entrepreneurial marketing strategy best describe
Bose’s approach. We can see in Bose’s case that the strategy is primarily entrepreneurial from
the beginning in 1950. Amar Bose, was an archetypical entrepreneur, he studied, experimented,
and took his time to create a sound system which best showed his high standards. Also we can
see the same by his attempt to learn how to communicate the quality of the 901 series to
customers through specialized display and tactics to the customers to help them better understand
the technology behind his products.

Since Amar Bose is not so much concerned about costs but his primarily concern is
differentiation, we can say that Bose pursue Michael Porter differentiation strategy.Under
Michael Porter, Bose could be adopting cost leadership or differentiation strategies.Bose should
be product leadership based on Treacy and Wieserma philosophy in competitive marketing
strategy.

Bose directly competes against the following companies in the consumer speaker and home
theater market:

 Boston Acoustics
 Harman/Kardon
 JBL
 Klipsch

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 Polk

Bose directly competes against the following companies in the consumer headphone market:

 Altec Lansing
 Coby
 Koss
 Sennheiser
 Sony

MARKET SHARE

Bose caters mainly to the premium/luxury segment of the consumer market, mainly affluent non-
audiophiles. While critics argue over the price and quality of some Bose products, there is no
doubt that Bose is growing and sometimes dominating certain segments of the high-end
consumer audio market.

Analysts estimate that between 2004 and 2006, the company’s revenues increased more than 38
percent, from $1.3 billion to oven $1.8 billion. According to market information firm NPD
Group, Bose leads in home speakers with a 12.6 percent share. Not only were home speakers the
company’s original product line, but they also remain one of its largest and most profitable
endeavors.

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BOSE’S RETAIL STRATEGY:

Bose has used multiple business strategies in rising to the top of its market segment. Chief among these
are:

Eliminate the middleperson. While Bose products are available through many home electronics
retailers, the majority of their sales come through company-owned stores and via direct channels such as
the Internet, mail order, and telephone order—often supported by expensive, full-page ads in leading
publications like the Wall Street Journal.

Geography. Bose retail locations are in hightraffic, high-demographic shopping areas, such as Chicago’s
“Magnificent Mile,” thus attracting the affluent consumer.

Image Marketing. Bose has succeeded in positioning itself as more than just a home audio retailer—they
sell a complete media. experience. Recent market surveys indicate more people think highly of Bose than
of Apple. However, not all Bose strategies have maintained their effectiveness. Two past strategies that
have played out are:

 High Performance Image. Bose has sought to portray itself as the industry leader in sound. Other
manufacturers, however, are nearly as good to the average ear, and may offer a better
performance/price ratio than Bose’s expensive systems.
 New Technology. While Bose continues to develop new home entertainment technologies, the
average consumer may not perceive there to be that much difference between Bose and other
home entertainment electronics manufacturers.

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BOSE’S POSITIONING:

Bose finds itself in an enviable position, commanding significant profits and huge brand presence among
consumers. And yet, the niche it occupies is relatively small. While Bose sells Home Theatre Within a
Box packages, they do not currently have their own video display, which limits the convenience and
seamlessness of their offering. Perhaps, too, it speaks to Bose’s roots within “pure” audio, much like
Nakamichi and other audiophile brands. Meanwhile, many other home electronics brands are pursuing
integrated media product systems. While the Bose consumer of today maybe audio-focused, tomorrow’s
may expect a complete solution. The high-end home audio market also sees tremendous competition, and
rapid innovation. Bose’s tremendous resources and depth in R&D have kept it in the forefront, but if a
company like Sony, with seventy times Bose’s revenues in 2004, should choose to invest in developing
new features in home theatre systems, they would be able to allocate significantly more capital.

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Bose Corporation’s SWOT Analysis

A) Strengths
1) Technology Leadership

Over the years, Bose has acquired ground breaking technology that has allowed them to improve
the sound and quality of their speaker systems. With these technological improvements, they
have also been able to drastically reduce the size and weight of these various units in order to
make them more convenient and accessible. This technology leadership has allowed Bose to
build a very strong brand image in the marketplace and has also helped to establish them as a
frontrunner in the audio systems market.

2) Positioning in Home Theatre Systems

Bose has long been recognized for their strong market position in the home theatre department.
Their new line of Acoustic Wave® systems for the home has been recognized as some of the
best in the world. They have been noted for their superior level of output and quality while
remaining significantly smaller in size compared to their competitors. Having the advantage of
leading this market position in such a fast growing industry is a major strength for the Bose
Corporation.

3) Strong Brand Name

In the U.S., Bose has been recognized several times as having one of the strongest brand powers.
They have also recently received the Distributed Audio Award for their components in 2004.
Nearly 9 out of 10 people are aware of the Bose audio brand and associate the name with
extreme sound and quality. To add to their brand image, Bose has also been recognized in
dealing with some of the most widely acclaimed automobile manufacturers in the world.

4) Organizational control-

The founder Amar Bose has kept it private in order to control the degree to which the company
invests in and conducts research which he considers the lifeblood of the company. He plows all
of the privately held company’s profits back into research. Also, time and time again, he has

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ignored existing technologies and started entirely from scratch. This commitment to research and
development allows Bose to outdo the competition by differentiating product lines.

B) Weaknesses
1) Lack of Size

Compared to other companies in the audio market, Bose is relatively small. The annual revenues
of Bose are much lower than the revenues earned by other companies in the same market. Bose
is forced to compete with larger players in the industry such as Sony and Pioneer who have a
significant advantage with regards to their marketing, financial, and technological resources.
Because of their lack of size, Bose must be able to deal with shifts in the market as efficiently as
their larger competitors.

2) Lack of Penetration in Foreign Markets

Although Bose has a wide market penetration in the U.S., they have yet to make any major
moves with regards to Asia and India. There are a great number of fast growing cities in these
areas and without an established entrance; Bose will not be able to take advantage of this growth
potential.

C) Opportunities
1) Aging Baby Boomer Generation

The baby boomer generation in developing nations is entering their 30and 50s, most of them
have been duel income households or are near retirement age. This group represents the greatest
level of buying power making them a major target. They have a great deal of time and money to
spend on leisure activities. They are likely to increase the amount of recreational goods that they
purchase which would provide Bose with a great opportunity to increase their revenues.

2) Recent Introduction of New Products

In addition to the Wave® radio systems that Bose has introduced in recent years, there is also a
list of newer items that have recently been introduced, such as the Bose in-ear headphones and
the Wave® connection kit for all iPod models. These items are projected to make a huge
impact on the market when they are realized.

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3) Contracting With Residential Developers

The amount of new structures and housing that are being developed throughout the nation is vast
and apparent. Bose intends on capitalizing on this opportunity by generating contracts with these
commercial and retail developers to install the Bose line of products as a first option in all of
their structures. If Bose is able to capture even a small percentage of this, they will be able to
increase their profitability tremendously.

D) Threats
1) Highly Competitive Industry

Being in the business of manufacturing audio equipment, Bose has and will encounter much
competition along the way. Such a wide variety of choices may be misleading and confusing to
potential customers. Bose will continue to focus their offerings on their price, payment options,
and the quality and features of their products.

2) Technology Change

Operating in the technology industry is very difficult due to its fast paced nature. Keeping up
with the outflow of new technology and staying one step ahead of their competitors is something
that Bose would constantly need to do. In most all cases, a larger investment in technological
research will be needed. This would keep Bose on top of the technological advances throughout
the world and ultimately lead to an increase in revenues.

3) Lower Cost Competitor's product and imports

Low cost imports from countries like China, India and other developing countries pose a threat to
market expansion and penetration for BOSE.

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Marketing Strategies:

With the Indian market for high-end audio products growing, Bose Corporation plans to expand
to tier-2 cities.

Last year, Bose Corporation, which deals in high-end audio products such as speakers and
headphones, opened a store in Ahmedabad. The company plans to strengthen its presence in the
existing markets, especially in smaller towns like Pune and Jaipur..

The products of the US-headquartered Bose are today available in its 11 outlets in all the major
metros. This is a part of the company's `direct to customer' approach, with no middlemen or
resellers.

In India, Bose has two categories of products — home audio and professional systems. The
home audio segment sells more than professional systems because this segment has a wider
range of products and caters to a larger target audience.

Uniqueness in Strategy and its implementation:

Bose has also expanded its operations globally. In Asia, it has sales offices in China, Hong Kong,
India, Vietnam, South Korea, Singapore, Taiwan, Thailand, Japan, Sri Lanka, Indonesia, and
Bangladesh. Among its regional success stories is the design and installation of a sound system
for the Shanghai Grand Prix. Bose loudspeakers were placed throughout the concourse and
concession areas of the track such that over 150,000 spectators could enjoy the roar of the
engines and still hear the announcements and music. Using its Modeler software and Auditioner
systems, Bose could predict acoustic performance accurately and make precise decisions on
speaker models, cluster positioning, and their aiming angles. “As F1 cars generate over 130dB of
noise, sound system must be powerful enough to compete and sophisticated enough to provide
clear speech for the spectators,” commented Ma Jun, assistant technical manager of Bose Greater
China.

In New Delhi, Honeywell boasts one of the biggest Bose office sound system installation in
India, including almost 200 separate loudspeakers. The diversity of business functions located in

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the building was reflected in the complexity of the sound system requirements. A multi-zone
sound system was installed such that each zone could select one of six different channels of
music and announcements could be made to one, some, or all zones depending on the message
and its target audience. The sound system also functioned as an emergency notification system.

Strategies for the Home Theatre Segment:

The buzz around the world was home theatre, and the same held true in India. There is a trend in
favor of home theatre because movies and music are being delivered in multi-channel recording.
This pushes customers to systems like home theatre systems, which have the built-in capability
to decode and play multi-channel sound.

For Bose ,India and China were two important markets, as they were still emerging and growing.
He said the entry of other brands like Bang &Olufsen showed the potential of the market. He
said that products launched in developed markets were almost immediately available in the
developing markets. In fact, Bose was working towards global launch of products, he said.

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Advertising:

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Bose's advertising has been more tactical and local in nature. Earlier, the company was more
oriented towards Delhi and Mumbai and the advertising was focused on these cites. Currently,
there is a mix of media, out of home, radio and on ground activities and from this year on some
cinema too, he said.

Bose's products are manufactured in the US, Mexico and Ireland. Consumer electronic
manufacturing to be cost effective needs high volumes. In India, the company is yet to achieve
the "real high'' volumes. In the US, the advantage is that it is possible to change manufacturing
lines fast, giving the company an ability to introduce new products and versions.

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Expansion Plans

BOSE Corporation India Pvt Ltd, which has set up a retail outlets as well as an office for its
professional systems division across major cities in India, is looking at further expansion
especially in smaller towns.

Bose might make its retail debut in Hyderabad while expanding in Mumbai, where it already has
one retail outlet. The expansion across the cities will be funded by its profits.

Bose operates the retail and the professional systems divisions in India. The professional systems
divisions provide customized audio solutions in terms of design, supply, installation, commission
and training and maintenance for professional spaces.

The company's professional systems division has offices in Delhi, Mumbai, Bangalore,
Hyderabad, Kolkata and Chennai. It also has two retail outlets in Bangalore and one each in
Mumbai, Gurgaon, New Delhi and Chennai.

The privately-held Bose has recorded year-on-year growth of 60 per cent in the past three years
and would continue to perform in such a manner in the near future.

BOSE believes that the entry of other players in the “high-end” category would not affect their
position in the market as such. Bose is very well positioned in the market and as far as other
players are concerned, “the market is big enough”, according to him.

The company's biggest market in terms of volumes is North America while the fastest growing
one is the Asia-Pacific. So they are more likely to focus on the Asia-pacific market in the near
future.

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Interview:

1) Ma'am, we would like to know What is Bose's product strategy?

our product strategy is to offer not only superior sound, but to develop products
that are small, elegant looking and easy to use. As part of that strategy, we rely on
human factors - engineers to assess user needs, design user interfaces, and evaluate
the usability of our products

2) How does Bose carry out the sales forecasting?

See, the audio industry is positioned for a marginal recovery, after fast-paced
offshoring and falling consumer spending led to significant declines over the five
years to 2011. Headphone manufacturers are relying on new marketing tactics
increase revenue, while our renewed consumer spending will bolster growth.
Therefore, we forecast a postive growth in the next couple of quarters.

3) Ma'am, Bose's marketing is really good! Can we get some insights on the
importance of marketing in the comapny's success?

Very true, marketing has been one of our greatest strenghts!

Marketing of High End Audio has never been easy. How do you reach new
customers? We can advertise our self’s to death but if the consumer never gets to
experience the glory of High End Audio then it just becomes an ad for something
else he don't need.

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So, when a customer walks into our store, we greet the customer, listen to his
request, make a presentation about what he was going to hear and why. The
customer walks out the door educated in High End Audio, no matter if he did buy
anything or not. Therefore, we need to have an impact on the customers mind so
that he purchases our products.

So marketing is a key aspect in our line of business!

4) How does Bose plan its brand building Activity?

We carry this out through 3 ways:

In all stores that sell Bose, you will see one of two types of Bose displays. First,
there is the end-cap display with a small TV screen, Bose components with
speakers and extended steel arms that reach around to create a surround
environment. In most of the low-end stores, no other 5.1 surround system is
configured in such a way because the store does not have a dedicated listening
room. Therefore the experience of listening to Bose is more fulfilling than hearing
the other 5.1 speaker systems that are all lined up in a row on the shelf-top facing
you. The Acoustimass displays are also only about six feet around, therefore when
you're listening to the Bose demo in the pocket, the speakers will most likely sound
powerful from three feet away. This creates a very strong impact in our customers
mind.

The second breed of our displays is the 'expo room'.The subwoofer used is
positioned in the optimal location to maximize spatial loading.

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And the third is through the Bose outlet stores. We generally have stores in high
end malls where we know we can maximize our sales.

Also most of our business comes from word of mouth.

5) Are you ahead of the competetion in terms of R&D

Yes, we are. A significant amount of our profits are re-invested into research, and
its Professional Systems division has a dedicated R&D group responsible for
inventing and coming up with technologies to help consultants, designers and
installers provide better solutions and experiences for their clients.

6) Can you give us a few examples?

Sure. Their is the Auditioner System. In the past, the only way to accurately judge
a sound system’s performance was to listen after it was fully installed. Only after
the entire renovation or construction process was complete could users hear the
real sound for the first time.Now, the Auditioner System technology makes it
possible to actually hear and judge the precise sound users will have in a building.
And this can be done even before a single piece of audio equipment is installed.

Also the Modeler Sound System Software is a sophisticated programme that can
determine the preferred configuration and location of speaker systems in existing
venues.

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