Bang & Olufsen was founded in Struer in 1925 by Peter Bang and Svend Olufsen. They are one of the leading providers in the market of high-end sound systems, operating in the electronic industry in both the Danish and the International Market.
Bang & Olufsen designs, develop and market a wide range of luxury audio/video products, including music systems, loudspeakers, television sets and multimedia products that combine new technology with Danish stylish design. In recent years Bang & Olufsen have experienced a huge decrease, in sales with repeated deficit. (B&O Annual report 11/12 (AP) p 8). In 2011, t o turn their deficit into profit, Bang & Olufsen launched a new five years strategy plan, “Leaner,…show more content… In recent years there have been a growth in the Danish consumers income rate, which can affect the purchasing power of the consumers and affect growth in various industries. Status symbols have become mobile in the form of digital devices such as smartphones and tablets. The brand matters and sends a signal about yourself and who you are. The brand matters and sends a signal about yourself and who you are. In the last few years there has been an increase in electronics in the home. Technology devices have become more user-friendly and their purposes has been implemented in the daily life of consumers. A growing market following and developing technologies, creates new opportunities for usage of electronic devices.
Each year new technologies are introduced to consumers. The technology development is high, and products are often replaced with newer technologies within a year. Therefore it is important for B&O to follow the demand for the newest technologies which can create a competitive advantage in the market.
Via segmentation we will analyse and determine who Bang and Olufsen’s new products are aimed towards. After determining this target group, we will look at the consumer developments.
The current target group are typical wealthy and upper to middle class consumers who are between 50-70 years of age and educated. (Krol 1998). However, B&O has identified new