Ditribution Channel
Currently, B&O has two kinds of stores which are called “B&O Store” and “B&O Play Store”. This is a part of B&O's strategy to reach out to a broader target segment. However, this strategy was ineffective because of B&O's low brand awareness in China. Therefore, we are proposing three new suggestions in terms of expanding their distribution channel.
1. Maintain B&O store for existing customers
B&O has several official flagship stores in China. According to our in-depth interview with the store manager at B&O flagship stores, we found out that majority of customers who buy B&O products are existing customers who are already familiar with the brand. Maintaining the existing B&O flagship stores that offers both traditional B&O products and B&O PLAY is vital to the company in order to keep our current brand awareness and to provide services to our existing customers. At the same time, it is important that B&O focuses on improving its customer services in order to add additional customer value.
3. Expand B&O PLAY stores for young professionals, and create our brand awareness simultaneously
B&O's second product line, B&O PLAY, has an increasing importance in the Chinese market since it targets the young professional segment. The most main task for B&O is to expand their brand awareness so as to increase their growth, which will in the long term have a positive effect on their revenue stream. To achieve this goal, they should expand and promote B&O PLAY products with affordable prices that would reach a wider pool of individuals compared to original B&O products
2. Refocus on B&O online store for the potential Chinese customers
As B&O has been experiencing a sales disaster in the Chinese market, they need to refocus their sales through e-commerce as almost 300 million users in China are using the Internet for purchases. B&O needs to improve their brand-new channel of communicating their values with the customers by specifically targeting B&O PLAY customers who are the younger people that are well adapted to the technology of online shopping. To excavate potential customers in the Chinese audiovisual users market, they need to establish a Chinese online shopping platform on their website which has specialized design adaptable for Chinese customers.
