The main direct competitors of B&O include LG, Samsung, Sony, and Panasonic. Each of these companies has its peculiarities that B&O managers should be aware of in order to win larger market share without useless efforts. The companies in the list are multinational and world-wide brands that adds to their trust level and appreciation of quality. As long as TVs get another meaning in the daily lives of consumers, these influential companies most probably have some projects and scratches for the next generation of TV sets, so for the most part it is an issue of development speed – which company is going to represent the new version of TV? Is it possible to make one’s model peculiar in spite of the similar competitors? These questions may only be answered only after LG, Sony, Panasonic or Samsung issue its new TV product.
Luxury entertainment companies like Loewe, Bose and Nakamichi are also market competitors for B&O because of the similar nature of the final product B&O BeoIntelligence Project is going to offer.
The main indirect or potential competitors include Apple, HTC, Motorola, Google and Microsoft. Due to their fast innovative development these companies may easily take over the market niche of those who would like to use Smart TVs answering all customers’ questions. The problem is that it is hard to evaluate whether they are interested in this field or will try to develop another IT branches.
Australian market may serve as a good example to compare the advantages and disadvantages of each of the direct market competitors with the particulars of BeoIntelligence. LG is known for its innovative approach, affordable products, growing market share but it does not have any elite status symbols and does not provide proper customer service. LG’s major target audience is middle income customers. Sony is as well innovative and affordable but it does not see any market share growth any more though its customer service and loyalty is on a good level. Sony is also oriented on middle income clients. Panasonic is affordable but does not demonstrate any innovative development, qualitative customer service or market share growth. Panasonic is oriented to satisfy the needs of middle income buyers.
What makes BeoIntelligence unique is the elite status symbol combined with innovations, good customer service and growing market share. Unlike all other competitors, BeoIntelligence is oriented to satisfy the needs of high income customers, and therefore it is not on the affordable level (Berry 2010).
There are two competitor strategies available:
- Develop and finish the final version of BeoIntelligence faster than the competitor companies.
- Wait before the first competitor versions appear and adjust BeoIntelligence to the existing conditions making it more unique, more unparalleled and more advanced compared to other competitor models.
The choice here depends on resource availability and the level of professionalism in developers’ team but in the existing conditions option 1 looks more attractive.
Brand Positioning Map
As well as all other companies BeoIntelligence is extremely interested in producing quality hardware that steps in march (and even a little further) with the technologies of today. Surely, it is impossible to construct a smart TV set that is entirely new with no older details and features. First, BeoIntelligence is designed for high income customers that care about their time and information access more than the cost of the final product. The quality of the product will be improved as well as the level of after-sale service (Abrams 2002). It is the key to success because at the spot of middle-income target where LG, Apple and Panasonic try to combine everything together, there is much more competition and less chance to win any sizeable market shares. The other group of competitors is still focused on hardware quality but offers only generic customer service (Nakamichi, HTC, Motorola).
The goal of BeoIntelligence brand is to become product number one for those customers who can afford the high price (Kirby 2011). It means that brand advertising should not be distributed on TV, radio or in national newspapers but rather appear in business magazines, high fashion booklets, limited access websites, luxury furniture look books, and other related sources. The customers are going to purchase BeoIntelligence because it is unique, it is important for daily life, very qualitative, has advanced and even extensive customer service, is appropriate for all geographic markets, sustainable and very helpful for both individual and group users (Tungsten 2011). The volume of sales will be lower than in middle-income company orientation, so BeoIntelligence will be somewhat limited edition. The complexity, innovation, quality and hi-tech approach will be the main features leading BeoIntelligence to success and growth.
BeoIntelligence will be positioned not only as qualitative but also as an exclusive and almost luxury way to retrieve necessary information any time the customer wants it. Undoubtedly, superior hi-tech products like the one offered cannot be supported by generic customer support, and that is why extensive customer care and service are provided on all stages of product usage. BeoIntelligence will start out as a prestigious line of products due to the B&O brand peculiarities – it is known for high-quality and high-price products that are intended for high income buyers. One of the most important advantages if BeoIntelligence is the individual approach that allows B&O fulfill the TV set with unique designs adjusted by the request of each customer (Aaker 2012). BeoIntelligence will not only introduce high quality of information delivery and high screen definition into the lives of the customers – it will become a status brand, just like Bentley or Jaguar car, diamond rings or luxury antiques.