Discover your edge
By Colin Benjamin, Michele Levine, Simon Pownall & Stuart Tolliday
1 Developed in conjunction with Colin Benjamin of The Horizon Network
Bang & Olufsen brand repositioning case study
THE BANG & OLUFSEN VALUE SEGMENTS CASE STUDY
This report examines in detail the application of the theory of Roy Morgan Values Segments 1 between 1994 and 1997 to affect a change in the target customers for a prestige brand in the home entertainment industry, and so increase turnover and profits significantly above that which could be expected with a “more of the same” approach.
Background
Bang & Olufsen is one of the oldest manufacturers of home entertainment in the world. It is a Danish company and the products are often seen as synonymous with good design of technology based products. The technology itself is rarely groundbreaking but the quality of materials and the user interfaces are second-to-none. Being possibly the only manufacturer that produces its own audio and video products “under the one roof” has given Bang & Olufsen a huge advantage in the area of audio/video integration. The company itself is very small, employing fewer than 3000 people in its research and development, manufacturing and marketing divisions. Most retailing of the product is carried out through an independent dealer network. The product range is small and the prices are generally seen as high. The company has won innumerable design awards and its products appear in the industrial design collections of museums all over the world. That it has managed to survive at all is testament to the clarity of the vision laid down by its founders in 1925 – that quality was to be the driving force behind everything that the company does. Bang & Olufsen (Australia) Pty Ltd is a wholly Australian owned and independent agent for Bang & Olufsen in Denmark and has been since the mid sixties.