Hey Guys BoAt is one of the most wonderful brands as in Indian startup environment, and it is the most remarkable aspect of this firm.
That in just 5 years they have established such a strong Market Position that if you go at the tws or true wireless stereo industry as of the third quarter of 2021.
Each bolt has five points The noise level at 3% is seven points. 7% realme is eight points. With a share of the Market of 35 points, the 1% BoAt is well ahead. Eight percent is larger than the following three rivals combined, and the company's sales has already surpassed Rs. 1500 crores in FY21.
Profits have already increased by 61% since FY20, despite the fact that the BoAt is presently preparing for an IPO.
The Issue Is, How Did BoAt Attain Such An Exceptional Position In India's Congested Audio Market? What Was Their Actual Business Strategy?
What Can We Learn From Mr. Aman Gupta & His Fantastic Team At BoAt?
The most fundamental reasons for their success are its brilliant market positioning and the rise of the BoAt. It is analogous to the rise of The one Plus phones. Many of you may have noticed that the Oneplus brand was once one of the most useful and underestimated brands in India.
BoAt Business Model
It is exclusively popular among Technophiles. However, with the release of the Oneplus 7, this changed. In 2019, the oneplus brand was one of the most popular in India, and you could practically find oneplus 7 phones everywhere.
In fact, at one point in 2019, Oneplus outsold both Apple and Samsung together. Despite the fact that the Phone Market is packed by vivo, oppo, samsung, huawei, and apple.
How did Oneplus just became a household name? This price chart contains the solution to this query.
If you looked at the price of phones in India in 2019, you will see that the iPhone was the most expensive, costing 85,000 rupees, followed by the Samsung S10, which cost 55,000 rupees more.
Then we had the Oppo V1 and other firms that were primarily focused on selling phones around 25,000 rupees presently, while having more expensive phones in India.
The focus of these firms was primarily on 25,000 rupees and less, but today you can see that there is a large disparity between 25,000 rupees and 55,000 rupees.
Which was only addressed by Samsung at the time, as we all know, Samsung phones do not provide good value for money.
This audience, ladies and gentlemen, was the most premium unaddressed and, more crucially, a vast audience that was left untapped.
Here's where we witnessed the growth of two phones: the Xiaomi Mi 9 at 31,000 rupees and the One Plus 7 at 35,000 rupees, and both of these phones were priced exactly between 25 and 55,000 rupees.
They both had amazing specifications and provided far better value for money than Samsung phones.
The reason why mi9 did not become a Market leader as oneplus is because oneplus established a ridiculous amount if aspirational value for it's own brand by being backed by nobody other than Robert Downey Jr.
I'm not sure if many of you noticed this, but the avengers endgame excitement was at its highest in the same year because endgame was due to debut in 2019 and everyone knows what an incredible fan following Robert Downey Jr has in India.
Because xiaomi underperformed on this aspirational value, Oneplus acquired a large Market share in India in 2019.
I'm not suggesting that everybody bought one plus smartphones because of Robert Downey Jr., but the reality is that the aspirational worth that Robert Downey Jr.'s support brought to oneplus drew enough people in Learn More: Why Iphone Is Killing The Apple Company | Apple Business Model
As a luxury brand, which led to a large number of individuals purchasing the phone once they discovered how authentic the technology was.
It was the best phone in that price range, which led to great word of mouth, and the Oneplus 7 was one of the top selling phones in India in 2019.
1. If you possess a Oneplus, you may have observed that you pondered purchasing an iPhone. However, when you consider the enormous price differential between the Oneplus and the iPhone,
By default, oneplus appeared to be the most apparent and comfortable option.
As a result, the Oneplus brand is able to create an aspirational value in the minds in premium customers in India, allowing it to beat Xiaomi and get into those users who've been premium customers.
but I couldn't afford an iPhone right now The question here is how this relates to boats. What does the oneplus position has to do with the Boat?
If you look attentively after Apple debuted the AirPods in 2016, three significant events occurred in the same year.
The popularity of wireless earbuds has skyrocketed.
2. The jio wave entered India in 2016, causing indians' screen time to soar. Many phone makers ceased included earbuds with their smartphones, and if they did, the earphones were among the most basic models available.
All three of these variables combined to generate a massive Market for hearables in India, therefore from 2017-18 onwards, many businesses began to enter the Market, as seen by the price charts among the most popular brands 2018.
This is how the super premium wireless earphones appear at first.
BoAt Marketing Strategy
We had Bose and Apple in the basic pricing category, with base prices of 17,000 and 15,000, respectively, and then in the premium category, with prices ranging between 10 and 15k.
We only had jbl as a big brand, with its pod version costing 10,000 rupees, and sub premium models costing between 5,000 and 10,000 rupees.
We had Sennheiser wireless earbuds starting at 6,400 rupees or below this price point, which was less than 5,000 rupees, there was no large brand even though there was a huge Market for wireless headsets in India.
This was where we saw four brands arrive: mivi, priced between 3 and 4 thousand rupees, skull candy, priced between 2,000 and 4,000 rupees.
We had both rockers priced at one triple nine, noise shots priced at Rs.999, and other local brands including bolt priced at Rs.999, and the question here is with these four rival brands.
What Was It About The BoAt That Made It The Biggest Market By Such A Wide Margin?
Although skull candy was still only famous among aficionados and a very small portion of the public, other brands such as me and bolt were almost unknown in the Market.
Whereas BoAt became far more popular after enlisting hardik pandya in 2018, and this is where the strength of celebrity endorsement comes into play, just as robert downey jr's endorsement decided to bring in an aspirational value for one, and hardik pandey's sponsorship by default built an aspirational value for BoAt as a brand.
As a result, the 2 to 5,000 rupees category BoAt has become significantly more familiar than its contemporaries, and some individuals may now shout bro just because certain celebrities are supporting it.
Why Are We Going To Buy Earphones?
We're clever enough to make good decisions without endorsements, so here are some Marketing fundamentals for you: a customer, intentionally or unwittingly, evaluates the worth of a product based on two sorts of values: tangible value and perceived value.
Tangible Value And Perceived Value
1. The true worth of a thing is its tangible value, as in if the music sounds fantastic in one earphone, it has a high tangible value.
As the name implies, perceived value is essentially the judgement which you make assumptions based on how well the Product is displayed, for example:
If a restaurant appears like this, you unconsciously think that it has clean kitchen, and in our case, the reality about audio gear, particularly earbuds, is that only skilled individuals, such as those involved in film or sound editing, can genuinely spot.
The knife ears will not be able to identify the difference in audio quality among two devices due to the subtle variances in audio.
As a result, you can barely tell the difference between two products. As a result, the entire audio Market is practically commoditized from the customer's perspective, and because there is no additional tangible value to the product which you can spot, the only valuation by that you will judge an audio product like yours is its price.
So, if i place 2 earphones one of some random brand and the other that is being endorsed by hardik pandya you are more likely to trust the latter than the former.
Even if you are not a diehard hardik pandya fan so the only delta that
inclines you to purchase a product like your phone is the perceived value of the product. now just to give you an idea about how super powerful this is here's some simple math.
Moreover because of celebrity endorsement if BoAt is able to charge an average premium of just 200 rupees extra per product here's what it looks like with 16.6 million tws units shipped this year and with BoAt having 35.8 Market Share BoAt would have shipped close to 59 lakh units.
So, if they convinced you to spend an extra 200 rupees each product because of celebrity endorsement, the BoAt already has generated an extra 118 crores in income. Learn More: Hidden Startup Secrets Of Razorpay | Razorpay Business Model
The company's profit in FY21 alone is 78.6 crores, demonstrating the capability of creating perceived value inside a crowded commoditized sector.
This is Why BoAt obsesses on presenting itself as a fashion label in order to create aspirational worth for itself through endorsements and design.
So, following hardik pandya, they added risha panth, shikhar dhavan, bhumra, and prithi shawn in 2019, followed by neha kakar, kiara advani, and karthik aryan in 2020, and shreya shair in 2021.
2. In addition, BoAt worked with famous designer Mazhaba Gupta to offer a limited edition line of sassy headphones at Lakme Fashion Week 2020.
Now they're also cooperating with Beera, which is another of the most popular millennial brands in India. This is how, like Oneplus, they were able to Market themselves as a considerably more premium far more known product than the Xiaomi Mi 9.
Its partnerships have been able to develop the same ambition value that stand out from the crowd, and we also know how strong this aspirational value creating is in the jockey case study.
Second, and maybe most importantly, one of the most underappreciated reasons for their success was the foundation they set with an incredible product called boat stone.
These speakers are by far the greatest bluetooth portable speakers on the Market, and the reason for this is that neither stone got popular through celebrity endorsements or any sophisticated Marketing approach.
While the jbl flip is priced at Rs.4,999, the Boston was only 2,000 rupees, and to my knife years, both sounded as wonderful as the jbl.
Student Like BoAt Headphones
1. Why is the BoAt still standing tall in the face of big companies like real me and oneplus in the Market, and why is the boat still priced at a basic minimum of 2,99 rupees at the entry level in the headphones Market.
Which Makes A Student More Likely To Buy A BoAt?
When he falls in love with it 3 years after graduating. When his purchasing power rises, he is more likely to acquire a BoAt product, however in the case of oneplus, the cost barrier is really high.
BoAt is gradually increasing its pricing range to place itself in the higher category of 4 to 5 thousand rupees after creating a solid basis of presenting itself as a lifestyle brand.
2. It is also entering the smart watch area, which is a massive Market to be tapped into, and what's extremely fascinating to notice is that, just as Apple built a huge Market for smartwatches, Boat has built an aspirational valley for hearables.
Noise is now acquiring ambassadors like tapsi and rohit sharma and also is investing a lot of money on Social Media Marketing to develop a spiritual value for its watches, which is improving not just sales but also brand awareness.
Because of its watt sales as well as its hearable sales, this is already the Markett's second largest participant, after only Boat. As a result, the contest between noise and boat will be really exciting to observe.
This is accomplished through developing a high-quality product at a favorable moment to join the Market, as well as by distinguishing oneself from the competitors through lifestyle Marketing and smart alliances.
Aman Gupta and his team have made both companies industry leaders in the Indian Market's hearable category.
Three Lesson We Learn From This Case Study
You Must Learn Three Extremely Crucial Things From This Case Study Lesson Number.
1. When launching a product in a crowded Market, always consider how you will differentiate oneself in the midst of a big gun.
If someone had informed Aman Gupta that there has been jbl apple skull candy, he would have believed it. So, what distinguishes you from the competition on the outside?
It appears that there really is no room in the Market, but grab a pen and paper and start jotting down their pricing labs.
You will discover that the 1,000 rupees to 5,000 rupees lab is completely unoccupied, and you may truly make your mark there.
So, my assignment for you is to grab a pen and paper and conduct a comprehensive Market Analysis of the Smartwatches Industry, and then explain to me how noise and BoAt have such a good chance of developing a 1000 crore business despite the existence of titans like Titan, Fitbit, Samsung, and Apple.
2. Endorsements by celebrities Despite the fact that it appears to be a monetary drain in some circumstances. Even Today, It has the potential to be a real game - changer in a crowded commoditized sector.
3. Now, Considering This Consideration, I have a question for you:)
Didn't We Have Ambassadors Like Carrie And BB Supporting Their Product?
However, the BoAt left with Hardik Pandya, Karthikarin, and the others. The question to you is if you believe the difference in ambassador selection makes a difference.
If So, please explain reasons why in the Comments Section.
Read More: Hidden Startup Secrets Of Classplus | Classplus Business Model
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