Bang and Olufsen Play to a Younger Audience
Since the introduction of new portable Audio products for smart phones, Bang and Olufsen have seen a considerable increase in sales in recent financial quarters. Unlike its other expensive luxury audio products, B&O Play targets a younger millennial audience. As high prices and high quality have always been traits of Bang & Olufsen, it was recently at the start of 2012 that company diverted its attention towards a younger market who may not be able to afford their very expensive speakers and because of the increasing use of music on smart phones. The sole purpose of this shift is to target youth who can’t necessarily afford the high prices of their main range but by giving a similar level of quality in sound and materials as their main range the company can increase the volume of sales. This creates a Win-Win situation for everyone.
The main competitor of B&O is Beats which are competing with B&O’s H8 Headphones with a slight difference in prices. As Beats are more popular with teenagers, B&O targets more mature audience. Apple, who own Beats, have agreed to sell some of the B&O Play headphone range in their stores to supply a more grown-up offering to their headphone wearing customers.
Apart from Headphones, portable speakers are another product area of B&O. Using the Bluetooth technology the A2 Bluetooth Speaker has been a great success for the past 2 years. In addition to portable speakers, the company is also working on a big multi room sound system which would be the completion of the product line.