How Beats Electronics Expanded Their Brand

Young Audio Equipment Company Used Celebrities to Expand its Brand

Beats Electronics is a great example of using celebrity influence to market a product. Founded by Dr. Dre and Jimmy Iovine, Beats by Dr. Dre became instantly popular. High quality audio enthusiasts find the quality of Beats debatable but this fails to diminish their popularity. Fans of Dr. Dre flocked to their nearest electronics store to pick up a pair of headphones despite their price and quality. In addition, various celebrities in the music industry endorsed Beats and used them in their music videos and commercials.

Early History of Beats Electronics

Interscope Records chairman, Jimmy Iovine, grew weary of the mediocre audio products being provided to the public. He decided to work closely with Dr. Dre and later collaborated with Monster Cable to manufacture their products. Beats relied heavily on celebrity endorsements to promote their products. Eventually, HTC purchased a share with the intent of gaining a competitive edge by associating itself with the Beats brand. HTC allowed Beats to continue to work independently. Dr. Dre and Iovine eventually discontinued its contract with Monster Cable and oversaw the entire operation themselves.

Celebrity Endorsements

Beats Electronics received the majority of their promotions from celebrity endorsements. Beats reached out to various celebrities and created signature lines for artists like Lady Gaga, Miley Cyrus, Wiz Khalifa and Ludacris. This ultimately expanded their client base and they soon started reaching out to sports celebrities. In 2012, Beats gave a customized pair to every athlete in the Olympics to further promote their brand. In creating a portfolio of celebrities to promote their product, Beats has become one of most highly known audio companies in the United States.

Apple’s Interest in Beats Electronics

In 2014, Apple announced that it had purchased Beats Electronics for $3 billion. Although Apple had the monetary means of developing their own audio equipment, their interest was in the brand. Despite their mediocre reviews, Beats has done an outstanding job at promoting their products through the music industry. Apple will continue to improve the Beats technology and in addition to style, the Beats brand will also have quality to offer its consumers.