The importance of a strong brand
During the recession a number of companies have realised that taking marketing risks could be of benefit.
Take for instance, ‘Beats’ – the brainchild of legendary artist and producer Dr. Dre. Beats was established in 2008 to bring studio quality sound to the general public with their premium headphones. By 2012, Beats Electronics owned an incredible 51% of an estimated $1bn premium headphone market in the US.
Today, Beats is branching out further into the music-streaming sector. With companies like Spotify dominating this market that has been suffering from a backlash from artists who say the royalties offered to them are unreasonably low, slowly but surely artists are being won over to the idea.
This has made Spotify, Deezer and co. sit up and take notice… Spotify has reacted by taking a punt at Beat’s initial market by introducing merchandise onto the site, attempting to improve relationships with artists and record labels alike.
It shows that this powerhouse that grew through integrated marketing during the recession has built up such a strong brand that by branching out into other sectors, the biggest player in the market has had to react quickly to make sure it remains a significant player.