HOW BOAT CONQUERED HEADPHONE INDUSTRY| WHAT MARKETING STRATEGY MADE BOAT INCREASE SALES| IS PRICE POINT ONLY MADE BOAT TO BEAT BIG BRANDS| AJURSCONTENT
Hey Guys! Hope everyone doing great. Thank you for the great response to the last blog and hoping it will continue further. MBA is a fascinating qualification to leverage your career, Apart from Qualification why Marketing is always considered Buzz, and its position in the market always topped.
HOW BOAT CONQUERED THE HEADPHONES INDUSTRY MARKET. WHAT X-FACTOR MADE THE BOAT A UNICORN
Yes! We'll go to discuss marketing and how BOAT used marketing strategy to bring their product/company into the most loved brand in the Indian market. BOAT's main market expertise is TWS and later in smartwatches. To quantify in figures 10,000 products daily and it secured the most market share in Earphones/headphones industry by beating big brands, JBL, Skull Candy. To project in example 6 out of 10 have Boat brand product and by the FY21 they stood by crossing 1500 crore revenue and thinking to enter IPO. This is not a small thing back in the past 5 years Boat is nothing and now it has occupied the Indian market with its products.
Long story short, Let me drive back to the story and founder of Boat, Aman Gupta, Co-founder and CMO of Boat. Before starting Boat, he was working in JBL and there he observed and realized how the electronic gadgets category has much demand. This initiated him to start Boat, In 2016 Aman Gupta and his close friend Sameer Mehta, started Boat by investing 1.5Million in the startup. Three factors made Boat exemplary in their domain which secured the most market share.
Firstly, Earlier Indian market is completely different and control is handled by the sellers as sellers are minimum and buyers are maximum where buyers need to owe sellers to decide the price, quantity, and quality of the product which synonym of seller market shift. But technology and awareness of products purchase have made consumer decisions so precise on products. This made the market transition to a buyer market shift where control is being handled on the basis of price, quantity, quality, and even more they can decide which company, the product can monopolize the market. With this shift, they have leveraged that product need to make on the basis of consumer demand, and the company which carves their product on their basis will excel in their revenue. When Aman Gupta is working under JBL company he observed this behavior of consumers and decided to produce a product that leverages this opportunity. Earlier there are few brands occupied the headphones industry but they are concentrating on premium products. To be precise there are three categories Premium, sub-premium, and affordable as premium and sub-premium products categories are occupied by large brands Apple, JBL, and SkullCandy. The quality and features which are used to bring the product to market were terrific because of sound quality and built design stand out. Boat captured the gap of the affordable category which is listed with 700 and 999 price model with TWS and Bluetooth model, They figured out by producing the product of earphones with the price of 399. This made Boat to shook up its revenue and made a reasonable mark in the Indian market.
Wait! Has Boat used any premium technology in their product or any specific material used to make a product? I will say No! because there are no specific features or technology to stand out, We may think price point may affect the revenue to do great but we can't sail with the single entity of price point. They have filled the gap by cutting down the extra cost because a wider market is a general audience share and we don't want an exceptional product it's not a big thing for us being a premium product and reliable and good product. This made Boat present a reliable product of 399.
Secondly, Many were pointing out that marketing strategy plays a key role in Boat revenue, Today every product and company pour money into marketing to promote the product. The big thing is they have used aspirational value in marketing to promote their product. They are collaborating with upcoming celebrities where their endorsement makes an impression on the audience. Kiara Advani, Rishab Pant, Hardik Pandya, and some others. As in the pace of getting more popular status and parallel, this endorsement adds value to the product. In Business terms there are two terms Tangible value and perceived value, Tangible value is the way of thinking and it's the mindset of the person who will check the specifications and quality of the product which they tend to purchase. Practically not everyone likes nor follows this method and they need a suggestion on products. Perception value plays role in deciding which product needs to purchase. When a celebrity endorses a brand it will automatically register in our brain and plays role in a purchase decision.
Maybe these factors work well to make an impression on the market but why does it happen only to Boat and why not to other brands, you may feel that but there is another factor which is not business model still helps in their business, If we drive back Boat started in 2016 where JIO offers the impeccable bonus of internet and this transitioned our usage of internet and smartphones, People started consuming content a lot and everyone needs electronic gadgets earphones, TWS, and smartwatches. This change in public made more purchase of electronic gadgets and obviously, no one wants to spend more money is price point plays a role and considering these factors Boat succeeded in these parameters which made to conquer maximum market share. It is known as Symbiosis where one's initiation helped other entities to grow. When JIO came up with the plan this added catalyst to their product and business revenue.
These factors and strategies made BOAT a unicorn and they are planning to go IPO soon. When Aman Gupta started the company they haven't imagined the success Boat will bring in a short span of time. All it needs great hard work and sometimes time also a plays a major role to decide our company/product future.
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