Bang & Olufson Marketing Analysis

Bang Olufson Marketing Analysis The aim of this report is to critically assess the marketing strategies of â€Å"Bang & Olufsen† considering their business in United Kingdom. It comments on the B2B and B2C products in brief. The report comments on the following: The macro business environment Organisation’s Marketing Mix Organisation’s segmentation, targeting and positioning strategies. Based on the findings and observations, some recommendations are put forth at the end of the report. Company Background Bang & Olufsen manufactures a highly distinctive and exclusive range of televisions, music systems, loudspeakers, telephones, and multimedia products that combine technological excellence with emotional appeal. Founded in 1925, by â€Å"Peter Bang†Ãƒâ€šÃ‚  and  Ã¢â‚¬Å"Svend Olufsen† in Struer, Denmark, Bang & Olufsen a/s is world renowned for its distinctive range of quality audio, video and multimedia products that represent their vision: â€Å"Courage to consta ntly question the ordinary in search of surprising, long-lasting experiences†. Bang & Olufsen employs over 2,550 staff members and had a turnover of DKK 4,092 million (EUR 5486 million) in the 2007/2008 financial year. (Bang & Olufsen) The Macro Business Environment Most of the B&O products are manufactured in Denmark. Considering the business in UK, it has to understand the political, economic, socio-cultural and technological environment in UK. Since Denmark and UK are the members of European Union (EU), there are some advantages for the organisation. Political The European Union (EU) allows the free movement of goods and services between almost 500 million consumers in 27 EU member states. Due to this, import duty is not payable on goods sourced from Denmark, being one of the EU member states. (Business Link UK) There could be changes in the VAT and service taxation policies with the formation of new government. Economic The economic crisis and recession had affected the bu siness of B&O as people and businesses are more likely to hold on to their cash and not to spend it on high priced consumer goods. Due to the fall in share prices and real estate markets, the consumers of the high end products, like B&O, will be less likely to spend as earlier. Another economic factor faced by the B&O is currency exchange rates. As large part of the products produced in Denmark and with the Danish Krone (DKK) pegged to Euro, devaluation of GBP to the Euro has affected sales in UK which is one of the largest markets of the company. Socio-cultural B&O has adopted the philosophy of Danish Design, which is renowned for its high class design and quality. The products of this class are considered as status symbols and products of pride. Technological Competitors like Bose, Loewe who are also known for their design, quality with the high prices are coming up with new products with the same functionalities as B&O with equal or slightly lower prices. Due to the advancements in the technology, components are getting cheaper which may help companies like Sony, Samsung etc. with range of products in various qualities, targeting customers spanning across price conscious segments to quality focused segments. Legal The company has to ensure the protection of the trademarks of the brand. The logos and other trademarks should be registered in UK.