Beats Electronics, Santa Monica, CA
Company: Beats Electronics, Santa Monica, CA
Company Description: Formally established in 2008 as the brainchild of legendary artist and producer Dr. Dre and Chairman of Interscope Geffen A&M Records Jimmy Iovine, Beats Electronics (Beats) comprises the Beats™ by Dr. Dre™ family of premium consumer headphones, earphones, and speakers as well as patented Beats Audio™ software technology and streaming music subscription service Beats Music™.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Electronics
Nomination Title: Beats Electronics
Tell the story about what this nominated organization achieved since January 1 2013 (up to 525 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:
Stemming from a pure desire to create a better listening experience, in six years, Interscope records mogul Jimmy Iovine and hip-hop icon Dr. Dre have turned Beats by Dr. Dre headphones into a $1 billion-plus business. Beats Electronics, despite some ferocious competition, controls almost 70 percent of the market for premium headphones. Now, together with president and former Interscope executive Luke Wood, they’re taking a hot brand and making it even hotter.
With growth in headphone sales expected to slow down in the coming years, Beats is expanding its presence in other markets. In 2013, Beats Electronics introduced portable and wireless speakers, co-branded smartphones—and in January it launched a new subscription based streaming music service, Beats Music, to compete with the likes of Spotify.
Beats takes product development, aesthetics, and innovation very seriously, often building dozens of prototypes for testing before deciding on the final version.
Beats operates less as an electronics company than as a media or culture business, keen in straying in step or ahead of a rapidly changing media landscape.
Viewing the Beats technology as a new artist on the scene, Beats used All- star focus groups, gifts and deals with popular athletes and celebrities, and product placements to build brand recognition and desire. Those sightings translate to roughly one-in-five premium headphone purchases.
Co-Marketing deals with big brands are also part of the Beats marketing strategy. From HP laptops, to HTC cell phones to Chrysler automobiles, Beats enjoys the benefits of the big marketing machines at those firms.
In a recent deal to acquire shares in Beats Electronics, the Carlyle Group expressed confidence that Beats will continue to drive growth in high-end audio accessories as people spend more time listening to music and watching videos on smart phones and tablets.
As of the deadline for ABA entries, Beats is also considering a buyout from Apple, Inc., a rare move for a company that traditionally develops its own products, and a testament to the success of the Beats brand and product innovation.
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Provide a brief (up to 125 words) biography about the leader of this nominated organization:
Luke Wood is President of Beats Electronics LLC, parent company of the Beats™ by Dr. Dre™ line of premium headphones, speakers, Beats Audio™ software and Vice Chairman of the Beats Music digital music service.
Wood has been involved with Beats since its infancy phase as part of his tenure at Interscope Records, officially joining the company in February 2011 to build on the brand’s momentum created under co-founders Jimmy Iovine and legendary producer Dr. Dre, and to expand the company’s audio quality expertise into new products and services. Wood oversees all global operations for the brand including manufacturing, product development, marketing and sales.