interesting thread--reminds me of the case study i worked on Chivas Regal (the worst scotch around). Chivas was a marginal player in the low dollar blended scotch mkt, and meer fodder for jokes amongst single-malt scotch conniseurs..but then chivas did 2 things: new box / packaging, and raised their price. results go against economic theory (sales increased!), but testify as to the effect of a good marketing program.
this has a lot in common with audio. high end audio is the equivalent to the scotch conniseur--who knows what regions were known to produce good scotch, what labels / years to watch for, etc. point being, they're very educated about product, and as such have no problem paying $80 for a liter if they think its amongst the best. of all the people who own stereos, how many are very educated about product? only those on this board.
audio has a couple serious problems, financial aspects aside. in order to compete w/ mass mkt product, they have to educate the public as to how much better it can get. and to do so requires retail outlets for demonstrations (and we all know the difficulties for the highend retailer these days).
couple that with these factors: bose recognizes 3 things in serving the market: 1) product must have aura of high-end (face it, most people think its the best!), 2) product must be at a price point that is still discretionary, and 3) product must be small (i.e. households buy furniture, and when speakers are not in use, they're furniture---best to keep em small guys else the wives don't like it).
so what is one to do? madrigal has a good starting point w/ the multi-dimensional line (levinson in lexus), and would be well served to purchase the gallo speaker technology and begin w/ a new brand...
the rest of high end will always be a cult.
rhyno
this has a lot in common with audio. high end audio is the equivalent to the scotch conniseur--who knows what regions were known to produce good scotch, what labels / years to watch for, etc. point being, they're very educated about product, and as such have no problem paying $80 for a liter if they think its amongst the best. of all the people who own stereos, how many are very educated about product? only those on this board.
audio has a couple serious problems, financial aspects aside. in order to compete w/ mass mkt product, they have to educate the public as to how much better it can get. and to do so requires retail outlets for demonstrations (and we all know the difficulties for the highend retailer these days).
couple that with these factors: bose recognizes 3 things in serving the market: 1) product must have aura of high-end (face it, most people think its the best!), 2) product must be at a price point that is still discretionary, and 3) product must be small (i.e. households buy furniture, and when speakers are not in use, they're furniture---best to keep em small guys else the wives don't like it).
so what is one to do? madrigal has a good starting point w/ the multi-dimensional line (levinson in lexus), and would be well served to purchase the gallo speaker technology and begin w/ a new brand...
the rest of high end will always be a cult.
rhyno