The Art of Marketing: How Beats by Dre Became a Cultural Phenomenon
Hey dude, oh hey clone, what's up? Are you wearing Beats by Dre right now? Yeah, yeah, they are. I decided to give them another chance because I feel like we've been dismissing them unfairly without even really giving them a shot. So, I'm going to start using them full-time and see how it goes.
I'm currently listening to the Beats Studio 2.0, which is what these headphones sound like – they sound like Beats. However, that's not really the point of Beats by Dre. They have this reputation in the audio lovers community of being overpriced and sounding like garbage compared to other headphones in the same price bracket. And yes, that's true. But that's also not really the point of these headphones.
One thing that is true is that margins are a big part of it. The cost it takes to actually physically make something versus what you sell it for. This is not unique to Beats by Dre; every device has margins to make up for other costs, such as research and testing. Take Samsung's Galaxy S5, for example. It costs about $250 in parts to manufacture but retails outright for around $600.
Beat Electronics, the company behind Beats by Dre, takes a similar approach with their headphones. The difference between the cost of parts and the eventual retail cost is mostly made up of research testing and some packaging – not a lot of advertising. However, Beats by Dre invests heavily in research and testing to create their iconic designs.
But what really sets Beats apart is their packaging. It's arguably the best in the headphone industry. The presentation, colors, imagery, and accessories all come together to create an unboxing experience that trumps anything Audio Technica has ever done. They spend money on this because they know it makes a difference.
Beats by Dre also spends heavily on advertising and endorsements. They're one of the first companies to use musicians as endorsers, starting with Dr. Dre himself, who is a legendary producer and musician. If he puts his name on something, it's likely to be good. And it's not just Dr. Dre – other musicians like Justin Bieber, Lady Gaga, Nicki Minaj, Skrillex, Will.I.Am, David Guetta, Lil Wayne, and many more have all worn Beats by Dre in their music videos or live performances.
But what really makes Beats stand out is their ability to make the product appear alongside people's favorite celebrities. They give away custom pairs of Beats to celebrities so they can wear them on the red carpet or at events, making it look like a fashion statement. This is a genius marketing move that has worked incredibly well for Beats by Dre.
As a result of this marketing strategy, Beats by Dre owns 64% of the multi-million dollar premium headphone industry. That's right – more than two-thirds of the expensive headphones people are buying are from Beats by Dre. The company's ability to make their product appear valuable and desirable is key to their success.
The truth is, Beats by Dre isn't the only one with an inflated perceived value. Companies like Skull Candy also come to mind. But when it comes to marketing and branding, Beats by Dre is doing a great job of winning over consumers. However, this raises an important question: is a $300 pair of headphones really twice as good as a $150 pair? If the $300 pair is spending so much on marketing and image, then probably not.
So, when it comes to buying new headphones, you have to decide what's most important to you – sound quality, design, or branding. If you care about both, Beats by Dre might be a good choice. But if you're only looking for the best sound possible, Audio Technica's M50s are probably a better bet.
In conclusion, the success of Beats by Dre can't be overstated. Their ability to create an iconic brand and make it desirable is a masterclass in marketing. However, it's also worth noting that this comes at a cost – both financially and in terms of perceived value. So, when you're considering upgrading your headphones, remember to pick your budget and what you really want to buy.
"WEBVTTKind: captionsLanguage: enhey dude oh hey clone what's up are you uh are you wearing Beats by Dre right now would the yeah yeah they are I I decided to uh give them another chance okay yeah I feel like with all the hate Beats by Dre we just kind of started dismissing them without even really giving them a shot so I think that's not as fair so you're going to start using Beats like full time and everything well no I mean okay so these are the Beats Studio 2.0 so I'm giving them a fair listen all right so how does it sound like like beats they sound like beats but honestly that's that's not even really the point about you know that's not really the point of Beats oh yeah yeah it's not I mean let's be real people aren't really buying these for the way they sound Beats by Dre have this reputation in the audio lovers community of being overpriced and sounding like garbage compared to other headphones in the same price bracket and that's true but that's also not really the point of these headphones and it's no secret either margins that's the difference between the cost it is to actually physically make something and what you actually end up selling it for now you need this Gap to make money profit obviously but you also need this Gap to make up for other costs you might have besides manufacturing every device has margins take a phone for example the Samsung Galaxy S5 costs about $250 in parts to manufacture but it retails outright for around $600 so this Gap is used to make up for other cost Samsung has in research and advertising and then some profit headphones have the same thing the difference between the cost of parts and the eventual retail cost for audio technica's m50s for example is made mostly of research testing and some packaging not a lot of advertising and that also may be why you've never heard of audiotech techa beats on the other hand will also spend on research and testing but they go to the next level with packaging and advertising first of all Beats by Dre packaging is I think easily the best inet headphones out there no shame in admitting that they're just the best package the presentation the colors the imagery the accessories you get inside everything about the unboxing experience of a pair of Beats by Dre trumps Anything Audio Technica has ever done and they spend money to do that but really it's about the advertising you've heard of Beats by Dre and your mom mom and dad probably have too but if you ask them to name another Audio company they might have some trouble unless they're an audio head and this is because Beats by Dre spends a lot of money on advertising on endorsements and getting their name out there and getting their product in front of everyone's eyes before beats believe it or not there really was no such thing as a musician endorsing audio products the same way we have basketball players endorsing shoes they were the first to do this and it all started with Dr Dre himself legendary producer he's made music right so if he puts his name on these headphones well they must be good right even if you don't believe that there are custom beats with Justin Bieber's name on them with Lady Gaga's name on them Nicki Minaj you see other musicians wearing them all the time Skrillex Will I Am David geta Lil Wayne they all show beats in their music videos and they all wear them at live performances and even celebrities who aren't musicians there are tons of athletes who wear Beats by Dre in public all the time LeBron James Kobe Bryant Tom Brady Serena Williams but none of this is free Beats by Dre pays for obviously they pay for the music video product placement but they're also just giving away custom pairs of Beats by Dre all the time to celebrities so they appear as you know fashion statements on the red carpet they show up at events all the time these guys are geniuses at getting Beats by Dre to appear alongside people's favorite celebrities so just like that young basketball player buying his idols shoes young kids everywhere are buying Beats by Dre because they saw it alongside their favorite celebrity or at an event or in a tweet uh and it's working of the multi-million dollar premium headphone industry of headphones that cost $100 or more Beats by Dre owns 64% of that market beats 64% of the the expensive headphones that people are buying are Beats by Dre clearly it's working perceived value is really the name of the game that Beats Electronics is winning the more people think your product is worth the more they're willing to pay for it and with the celebrities wearing them all over the place all the time the design the fashion statement it makes the premium unboxing experience even the custom spots in stores all over the country that separate it from the rest that's why they're able to charge $300 for these when I'd be willing to bet they cost less than $150 to make and that's the truth about Beats by Dre now don't get me wrong beats aren't the only ones with an inflated perceived value I mean Skull Candy also comes to mind but again it's that 6 4% beats is doing a great job people are buying Beats all over the place and they're winning at this game and that's not necessarily a bad thing but just here's my bottom line knowing all this knowing all you know about margins and perceived value you know that a $300 pair of headphones is not necessarily twice as good as $150 pair of headphones in fact it probably isn't especially if the $300 pair is spending so much on marketing and their image so if you're going to buy a pair of headphones and all you care about is not just the fashion but the design and the unboxing experience and the name and the reputation of the company then Beats by Dre are great and the Audio Technica m50s suck I mean what is that but if all you care about when buying these headphones is the sound and the frequency response and the accuracy and you care less about the name and the brand image then the Audio Technica m50s are great and Beats by Dre suck so when you're going to spend money on upgrading headphones pick your budget and then pick what you actually want to buy do you want to buy sound or not and that's how you make your decision that's been it thanks for watching hope you enjoyed and hey feel free to share this video with other people who may want to know about the truth of Beats by Dre feel free to embed this as well hit me up on Twitter if you have any questions or the comment section below thank you for watching and I'll talk to you guys in the next one peace\n"
