• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The company which I have chosen to investigate is the top end entertainment electronic producer, Bang & Olufsen.

Extracts from this document...

Introduction

The company which I have chosen to investigate is the top end entertainment electronic producer, Bang & Olufsen. B&O is a luxury lifestyle brand, as it's their image, design and quality are not rational. Bang & Olufsen's image means that their target group are prepared to pay 'luxury' prices. B&O is the 'Porsche' of the entertainment electronics producers. The only other electronic producer which is really anywhere close to B&O's standard is their main rival Loewe. Loewe is compared with BMW rather than Porsche, as they market middle to higher-end entertainment electronic products and are still far from attaining B&O's luxury lifestyle image. However, Loewe has managed to create a strong upmarket brand. ...read more.

Middle

With nine countries accounting for 80% of group sales, B&O's geographic mix is more balanced than Loewe's. Market shares for B&O are insignificant in most markets, as the group focuses on the luxury segment of entertainment electronics. The only market in which the company has gained significant market share is its home market, Denmark. This is due to its high brand awareness. This is the same case as with Loewe, as their high brand awareness in Germany, their home market. However, Loewe offer very good value for money, as they are known for their quality throughout the product range. Whereas, B&O follow an extremely high pricing strategy. This is the reason why Loewe is keeping up strong competition. ...read more.

Conclusion

The group generated about 20% of sales in Germany in 1996. This number declined to 16% of total sales in 2000/01, due to falling turnover for the past three years. Although B&O increased sales by opening an additional 56 stores since 1997, the fall in turnover is due to the multi-brand retailers ending their co-operation with B&O. It was in 2002 when the company first experienced increasing sales in Germany since 1996. B&O is now confident with their German market. The number of stores has now increased to 66. B&O is present in over 40 countries worldwide, the largest being Germany, Denmark, the UK, the US and Switzerland. These markets account for nearly 60% of total sales, but this is less than Loewe which in their five largest markets they have about 75% of total sales. This is shown in the charts bellow: BANG & OLUFSEN LOEWE ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Marketing Profile of a Company: BMW vs Porsche

    profit is much smaller in comparison with the previous year, we can observe a quickly increasing tendency for the balance sheet total. Now let's take a look at the strategic objectives of BMW. At the end of September 2007, BMW Group took on a new strategic direction.

  2. Project Report on Exports of Amul (Asia's largest milk producer)

    The ultimate compliment to the butter came when a British company launched a butter and called it Utterly Butterly, last year. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for Amul butter.

  1. LG Electronics.

    1903 Crores Turnover for 2001 Rs. 2216 Crores Turnover for 2002 Crossed Rs.3000 Crores VISION The vision of LG is , "Securing world class competitiveness in core businesses and keeping up with rapidly changing business environment", LG also has set the management strategies for the 21st century as," to aim at a leading company in the

  2. The Walt Disney Company:The Entertainment King

    Human capital is also a major advantage to Disney. The company focuses greatly on its creative team, making it possible for innovation in production and acquisition. Also, the brand name of Disney is also something that other companies cannot live up to.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work