In our society today we idolize celebrities, we look up to them. We notice how they act, what they wear, and what they have. So when Dr. Dre decided to create his headphones, people went crazy for them. He placed his name right on the product for everyone to see. How does he advertise his headphones? Other celebrities. The marketing through the medium of fame exposes a larger audience to his product. Kobe Bryant is seen here wearing a custom pair of Beats by Dre headphones at a post game interview during the playoffs. The combo of all these factors creates a much larger target audience for the Dre’s headphones. This tweet below from the Beats by Dre twitter page reinforces this claim.
Interscope Records allows Dr. Dre to market his product through other artists within the record label. Kendrick Lamar is featured in a Beats by Dre commercial in which he sings an unreleased song of his, while wearing Dr. Dre’s headphones. Putting two prominent rap figures in the same commercial with a never before heard song absolutely causes a stir and will catch the focus of many consumers. With this intelligent style of marketing Beats by Dre was able to capture 64% of the market of headphones costing upwards of $100, according to Time Magazine. How Dr. Dre made $300 headphones a must have accessory.
The previously mentioned commercial is featured below.
Although marketing through a record label is smart, it can have unintended consequences. 50 Cent invested in a separate headphone company, SMS Audio. Interscope Records preferred to market Beats by Dre over SMS because Dr. Dre has been more successful in his career. 50 Cent wanted to freely advertise his product through his music video just as Dr. Dre does. But Interscope Records had other plans. They blurred out any article of clothing that read SMS Audio on 50 Cent. 50 Cent saw Interscope evolving into Beats Records. He was upset with the lack of freedom he had to market his products in his music videos. So he left the record label. 50 Cents interview is located below.
Through this marketing process of attaching celebrities’ names to Beats by Dre headphones they have achieved a luxury status. Chinese factories have been making large profit off the counterfeit sale of Beats headphones. Many luxury items are counterfeited, including Louis Vuitton handbags and Rolex watches. People counterfeit luxury items because there is a large profit to be made and they are in high demand. If people see a luxury product marked down, because it is counterfeited, they will jump at the opportunity to purchase it. According to an NPD Group study, 84% of people who purchased headphones over $100 thought that brand name was an important feature. People like brand name items. Not very many people would buy a pair of expensive headphones unless a person of fame places their name on the product. This helped Dr. Dre bring home about $110 million of income in 2012, primarily off the sale of Beats by Dre. The combination of all these factors creates a much larger target audience for the Dre’s headphones.