Dolby Labratories Case Study (2)

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University of Illinois, Urbana Champaign *

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270

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Business

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Apr 3, 2024

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pdf

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2

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Maya Shukla Dolby Labrotories Inc. Founded in 1965 by Ray Dolby, Dolby Laboratories became a tremendously successful business specializing in the sound department, in attempts to create technology that reduces noise in the film and music industries. Dolby laboratories expanded into subsectors of business creating Dolby Digital, a TV broadcasting market, and Dolby E, their encoding program. Despite how well the business was doing they still faced difficulties with the placement of their products and complete satisfaction with their customers. Dolby tended to find problems in the film, music, and television industries to then have their engineers curate solutions to distribute to customers. A large portion of Dolby’s customer base was broadcasters, which used several Dolby products to deal with their ‘Loudness problem.’ These products included ‘VU Meters, PPM Meters, Dorrough’s Loudness Meters, Larson Davis Noice Analysis Products, and DK-Audio Metering Products.’ Due to the large variety of products Dolby had to fix this one problem, they assumed immediate satisfaction with their consumers however, the way they positioned their marketing did not exactly allow this to happen. As this created issues Dolby asked themselves ‘How often does someone change channels because of loudness problems?’ As a result of this, I have identified Dolby's largest problem being the positioning of their products and making sure they market and cater to those who are most likely to purchase them. Another reason for this may also be due to the complexity of the products, and people who are not familiar with sound not understanding exactly what these products do. Due to the lack of knowledge that most individuals have about sound technology, Dolby should represent problems in their advertisements. For example, they should create advertisements stating ‘Is your sound like this… well Dolby could make it sound like this!’ They would then continue to demonstrate how much Dolby products can enhance the listening experience for consumers. This was Dolby will create a problem and desire for people that did not necessarily realize it before, and it will cause people to have a demand for the products, ultimately wanting it more. Additionally, when selling products to broadcasters, podcasters, content creators, film and television studies I think it is very important that they make some sort of deal or promotional contract with them. This is because with Dolbies technology they are ultimately helping these companies enhance their quality, so I think it is understandable for Dolby to expect that they get promotional compensation in return. For example, this is present now in theaters like AMC. They have Dolby Theaters, constantly speaking about the enhanced sound in the room and they give praise to Dolby Laboratories. If smaller broadcasters and companies were to do this as well, other people in the same industry or other interested individuals may take an interest in Dolby products, and purchase them. Dolby could also create another market for more simplified products like simple headphones, and everyday technology that people who are not experts in technology can use. By doing this, they will not only allow themselves to become a well-known and recognizable brand amongst more people, but they will also diversify their brand. To conclude, I think Dolby is an incredibly successful company, with advanced engineers and sound experts. Although Dolby has a loyal customer base, with the suggestions stated above I believe that Dolby will allow itself to expand to a greater level. The recommendations above will allow Dolbies products to reach a wider spectrum of consumers, while also allowing for advanced promotion among their current market.
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