files Bose Bluetooth Headset Ipsos For More Information, Contact: Randy Giusto Direct: Main:

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1 Ipsos files Bose Bluetooth Headset For More Information, Contact: Randy Giusto Direct: Main: Will Tomlinson Direct: Main: January 2011 Predicting the Business Impact of Marketing Decisions

2 Performance Summary Bose launched its first single-ear Bluetooth headset, the Bose Bluetooth Headset, in November According to Bose, the new headset has a unique design and interface that makes call control "easier than ever before. Touting its engineering, the company says, "The Bose Bluetooth headset is engineered with a microphone built into specially designed housing. This proprietary design enables the microphone to selectively sense the user's voice, and acoustically reject background sounds that interfere with it -- so the caller is heard more, and distractions are heard less. While the product offers several features positioned as exclusive to Bose, this research indicates that in general, consumers do not see anything particularly unique to the new headset. That being said, there is a specific group of consumers interested in the headset (urban, young, males), indicating that the product could be a hidden winner longer term as they will generate buzz about the product. Concept Tested Source: Bose.com 2011 Ipsos Vantis Files 2

3 Key Findings Market Potential Key Market Segments Communications Overview Critical Success Factors The Bose Bluetooth Headset has a low Market Success Score. This indicates that the Bluetooth Headset is not likely to have broad market appeal initially. The normative comparison is niche/targeted with the potential of being a hidden winner. Average to below average Key Measure Scores indicate that consumers don t see the Bluetooth Headset as a product that is different from other headsets on the market. However, above average top box purchase intent scores do suggest that the product does appeal to a specific group of consumers. The challenge will be clearly defining and targeting that group. Likely buyers of the Bose Bluetooth Headset tend to be urban, young (18 to 34 years old) males. They also have more disposable income. Likely buyers also spend more time online than average and are heavily involved in social networking and blogging. Brand is important to them, they prefer to shop online vs. retail, and own technologically advanced devices such as the iphone, notebooks and tablets and they depend on blogs, social networks and company websites as sources of information. Above average Message and Buzz Power Scores indicate that consumers will respond positively to well executed marketing efforts and will encourage their friends and family to purchase the Bose Bluetooth Headset. The Top 5 analysis indentifies those phrases that had the greatest impact on purchase interest. Noise control, automated headset volume control, long talk time, its promise of doing what others can't: It lets you hear and technology that helps users to hear their calls better are the key product benefits that drive purchase interest. The Bluetooth Headset will compete with virtually all other headsets in the marketplace, good and bad. To be successful long term, Bose must convince consumers that the Bluetooth Headset is not just another headset that will fail to live up to its unique promises. Bose should focus efforts on communicating the Bose Bluetooth s key benefits and unique technology with consumers who are most likely to purchase it so that they can virally spread its message to other potential buyers. These consumers will help create the buzz that will separate the Bose Bluetooth Headset apart from the competition Ipsos Vantis Files 3

4 Vantis Files Scores Explained Market Success Score The Market Success Score (MSS) is a calculation of the probability of success in market. MSS relies on Vantis forecasting background; specifically its ability to convert survey claims to true estimates of demand. A high MSS indicates mass potential in the market. Concepts in the top third on this measure have a 70% success rate when launched. A MSS in the middle requires more analysis. We look for hidden winners in this section niche or targeted products and breakthroughs (see Key Measure Scorecard below for more information). Most concepts with a low MSS are not ready for advancing without some improvement, typically in the messaging. Key Measure Scorecard Ipsos Vantis owns the world s largest database of new concept scores in technology, durable goods, health, and services sectors. Key survey measures for a concept are compared to survey norms for a relevant subset of new products from the Vantis Database. The pattern of the scores across the scorecard is as important as the overall strength of the scores. There are two dozen new product archetypes patterns of survey scores -- into which every new product can be classified. Some of the biggest opportunities often go missed because they have lower purchase intent, and reside in the middle of the pack. The key measure scorecard will find the obvious winners, and will distinguish between truly Average ideas that should not be pursued and Breakthrough or Niche ideas with enormous potential. Key Consumer Segments Vantis Files utilize the standardized Vantis Express survey that includes demographics, shopping and media habits. The summary is meant to give a top-line understanding of the consumer target which is essential to market success and also provides the framework for the market size (right product : right audience rather than wrong product : wrong audience). Message Power Score Message Power scores the ability to execute the message in mass marketing. A high score vs. the norm results when one or a few clear, differentiated benefits are present. An offer with high Message Power Score will be very responsive to advertising spend. Thus, seeing heavy spend is a signal of an uptick in business trajectory. Buzz Power Score Some products are more likely to be discussed, even hyped by faithful buyers. Buzz Power indicates how much word-of-mouth (buzz) a new product will generate. Buzz Power links directly to demand potential, whereby high buzz scores translate to incremental awareness in the market. Breakthrough products will generally have high potential here. Critical Success Factors Phrase-by-phrase analysis, indicating why consumers will buy. This analysis, based on a concept highlighter exercise, identifies key message components that motivate the target audience. Top 5 Phrases This elevator test identifies the 5 most important parts of the message - phrases that A) reach the consumer and B) persuade them. Reach is calculated using the click rate for each phrase in the concept highlighter exercise. Persuasion is derived by correlating the click rate (reach) with the key measure scorecard Ipsos Vantis Files 4

5 Vantis Scores Market Performance Indicators The Bose Bluetooth Headset has a low Market Success Score. This indicates that the Bluetooth Headset is not likely to have broad market appeal initially. The normative comparison is niche/targeted with the potential of being a hidden winner. Average to below average Key Measure Scores indicate that consumers don t see the Bluetooth Headset as a product that is different from other headsets on the market. However, above average top box purchase intent scores do suggest that the product does appeal to a specific group of consumers. The challenge will be clearly defining and targeting that group. Market Success Score Key Measure Scorecard Seek Information (Top Two Box %) Purchase Intent (Top Box %) Purchase Intent (Top Two Box %) Liking (Mean 6-Point Scale) Price/Value (Mean 5-Point Scale) Uniqueness (Mean 5-Point Scale) Believability (Top Box%) Need Fulfillment (Top Two Box %) Raw Score 33% 9% 20% % 31% Bottom 20% Vantis Database Ranking Below Avg. Average Above Avg. Although the Vantis Database consists of over 20,000 product evaluations, the scores of this study were compared to a subset of approximately 536 similarly priced products. Top 20% 2011 Ipsos Vantis Files 5

6 Key Market Segments Likely buyers of the Bose Bluetooth Headset tend to be urban, young (18 to 34 years old) males with young children in the household (possibly siblings). They also have more disposable income. TV viewing habits skew towards content on news, news parody, reality TV, sports, talk shows and game shows. Interestingly, they are more likely to subscribe to both newspapers and magazines Ipsos Vantis Files 6

7 Key Market Segments (Continued) Likely buyers of the Bose Bluetooth Headset spend more time online than average and are heavily involved in social networking and blogging. Other sites frequently visited include health, employment, streaming TV, video and music, and web-based gaming. Brand is important to them and they own technologically advanced devices such as the iphone, notebooks and tablets. They prefer to shop online vs. retail and they depend on blogs, social networks and company websites as sources of information Ipsos Vantis Files 7

8 Communications Overview Above average Message and Buzz Power Scores indicate that consumers will respond positively to well executed marketing efforts and will encourage their friends and family to purchase the Bose Bluetooth Headset. The Top 5 analysis indentifies those phrases that had the greatest impact on purchase interest. Noise control, automated headset volume control, long talk time, the promise of doing what others can't: It lets you hear and technology that helps users to hear their calls better are the key product benefits that drive purchase interest. Communications Indices Bottom 20% Vantis Database Ranking Below Avg. Average Above Avg. Top 20% Message Power Score Buzz Power Score Top 5 Phrases Rank Phrase Order in Concept 1 Noise rejecting microphone filters out noise around you, 14 2 Adaptive audio adjustment technology automatically adjusts headset volume depending on surrounding noise: 3 Rechargeable battery for up to 4 1/2 hours of talk time, The first Bluetooth headset from Bose does what others can't: It lets you hear Exclusive Bose technology keeps incoming voice level above the noise around you so you can hear your call better Ipsos Vantis Files 8

9 Critical Success Factors Concept Highlighter The following 2 pages show the phrases in the order they appear on the offering tested. Aspects of the Bose Bluetooth Headset that consumers find most appealing are it s noise rejecting microphone that filters out noise and its adaptive audio adjustment technology that adjusts headset volume depending on surrounding noise. The first Bluetooth headset from Bose does what others can't: It lets you hear and be heard, 22% 29% even as noise levels around you change. No matter where you are busy street, crowded lobby, airport terminal your conversation won't suffer. The unusually light 17% 16% 25% and compact headset, 13% with its proprietary StayHear ear tip, 8% also provides comfort 14% and stability while you're on the go. 13% And simple, 9% intuitive controls make it easy to take calls. Adaptive audio adjustment technology automatically adjusts headset volume depending on surrounding noise: a constant listening level is maintained as the user moves between quiet and loud environments. Noise rejecting microphone filters out noise around you, allowing the person on the other end of the call to hear more of your voice. 17% 19% 27% 47% 54% 0% 20% 40% 60% 80% Reasons to Buy 2011 Ipsos Vantis Files 9

10 Critical Success Factors Concept Highlighter (continued) Consumers are also attracted by the headset s rechargeable battery that lasts up to 4½ hours and exclusive Bose technology that keeps incoming voice levels above the noise around users so they can hear their call better. Exclusive Bose technology keeps incoming voice level above the noise around you so you can hear your call better 33% Noise-rejecting microphone allows the person on the other end to hear more of your voice 27% Proprietary StayHear tip provides comfort and stability: 16% no ear hook needed 11% Simple, 16% convenient controls make it easy to answer calls 20% Rechargeable battery for up to 4 1/2 hours of talk time, 35% 175 hours of standby time 20% $ % 0% 20% 40% 60% 80% Reasons to Buy 2011 Ipsos Vantis Files 10

11 Essential Guidance For Bose Bose Bluetooth Headset Bose should focus its marketing messaging on the technological advances that make the Bose Bluetooth Headset uniquely different from other headsets currently on the market. Other headsets failures to live up to their promises of clear reception as well as higher quality noise and voice control undoubtedly cast a shadow of doubt on the new Bose headset, and these doubts need to be overcome for the headset to become a product with broad market appeal. Sales channel promotion should also play up the new technology attributes of the Bluetooth Headset, and also use video with audio comparisons to showcase the headset s unique technology that sets it apart from the competition. To make full use of inbound marketing techniques, Bose should: Work with leading tech bloggers and make sure that they have the Bluetooth Headset units to review. Create more buzz by heavily promoting the Bluetooth Headset through Bose-sponsored Twitter accounts, Facebook pages, and targeted landing pages around Bose.com. Heavily use video in conjunction with audio comparisons with the competition in any online or instore Bluetooth Headset promotions since seeing and hearing the Bluetooth Headset in action will get its message across more clearly and differentiate it from the competition. The Bluetooth Headset will compete with virtually all other headsets in the marketplace, good and bad. To be successful long term, Bose must convince consumers that the Bluetooth Headset is not just another headset that will fail to live up to its unique promises. Going forward Bose should: Position the Bose Bluetooth Headset in a way that clearly separates it from the competition. Focus efforts on communicating the Bose Bluetooth Headset s key benefits and unique technology with consumers who are most likely to purchase it so that they can virally spread its message to other potential buyers. Those most interested in the headset are urban, young, males who are heavy users of the Web and are technologically savvy. These consumers will help create the buzz that will separate the Bose Bluetooth Headset apart from the competition. Source: Bose.com 2011 Ipsos Vantis Files 11

12 Methodology Country Dates of Fieldwork Data Collection Method Concept Specs USA January 20, 2011 January 24, 2011 Online JPEG 1 pg Sample Size Sample Definition Exposure Method Length of Survey N=434 General population Internet access Sequential monadic survey 3 concepts per respondent Test concept exposure rotated to avoid order bias 15 minutes 2011 Ipsos Vantis Files 12

13 Questionnaire Details Key Measure Scorecard Seek Information Purchase/Sign-Up Intent Liking Price/Value Uniqueness Need Fulfillment Believability Which statement best describes how likely you would be to seek more information about the product/service? Response on a 5-Point Scale Definitely Would to Definitely Would Not Which statement best describes how you feel about buying/signing up for the product/service? Response on a 5-Point Scale Definitely Would to Definitely Would Not Buy How much do you think you would like or dislike the product/service? Response on a 6-Point Scale Like Extremely Well to Not Like at All Considering the price, how do you feel about the value of the product/service? Response on a 5-Point Scale Very Good Value to Very Poor Value How would you rate the product/service in terms of being new and different from other products currently available? Response on a 5-Point Scale Extremely New and Different to Not at All New and Different How well would the product/service solve a problem or fulfill a need for you? Response on a 5-Point Scale Definitely Would to Definitely Would Not Which statement best describes how you feel about the believability of the statements made about the product/service? Response on a 4-Point Scale Very Believable to Not at All Believable Buzz Power Agree/Disagree (5 pt scale) If I owned this product, I would want people to know I personally own it or use it I would tor tell friends and family about this I would recommend this to people I know I would search websites for consumer ratings, blogs, or more information about it This product will create a lot of excitement and will be talked about 2011 Ipsos Vantis Files 13

14 About Ipsos Vantis Predicting the Business Impact of Marketing Decisions Experience Ipsos Vantis is a world leader in forecasting and optimizing new products and services before they are introduced in market. Over the past 20 years Vantis has conducted 20,000 new product concept studies, and built the world s largest database of new product survey scores in technology, durable goods, health, and services sectors. Forecasting validation is an absolute necessity for the success of our business among corporate and institutional investor clients. Ipsos Vantis tracks its forecasts vs. market launches and has observed a high degree of accuracy: 80% of forecasts are within 20% of actual sales results Early stage concepts clearing the Vantis hurdles have a 70% success rate in-market Philosophy Forecasting validation is a necessity for our business in order to ensure the validity of the advice, but our attention is placed on delivering research that informs the right business decision. Every Ipsos Vantis study delivers results that depict business impact. Our unique point-of-difference in the market research community is the ability to translate survey data to business results. We report answers to business questions in terms that business partners can understand: Sales, Revenue, Probability of Success in Market. Vantis Files and the Vantis Philosophy Vantis Files serve several purposes. Independent evaluations of new, emerging, and newsworthy product and service offerings Monitoring a new product or service s ongoing market acceptance, buzz potential, and reach Competitive intelligence on new product and service offerings that you monitor Vantis Files are highly standardized, making it easy, fast, and affordable to review the results of our independent tests of new product and service offerings. Vantis Files are based upon the metric of Vantis Express, our succinct collection of powerful market-proven metrics that relate to the three major components of a new offering s success: demand potential, key consumer targets, and critical success factors. Vantis Files results, like our custom Vantis Express work, hold true to the philosophy of translating survey scores to business impact. Vantis Files detail the opportunity for a new product or service offering, leaving little doubt as to the strength of the new idea Ipsos Vantis Files 14