Aaron Bae (Seongyun Bae)

Promotion strategy for Logitech’ s Triple Fi 10 Pro earphones

Response to: http://reviews.cnet.com/headphones/ultimate-ears-triple-fi/4505-7877_7-32492509.html?tag=mncol;lst;1

After reading CNet’s review about Logitech’s Triple Fi 10 Pro earphones, I figured it used a different promotion strategy than typical low-priced earphone producers do. Logitech sells one of the top quality earphones.

Its high quality product comes with an extremely higher price than typical on-shelf earphones in electronics stores, so it targets a segment of people who are into sound quality. When it comes to promoting, instead of advertising to attract the mass, the company tends to heavily rely on public relations because the company knows mass advertising would generate more cost than profit since not everyone is targeted, but a small segment. Logitech provides web pages where users can write reviews about the product. For example, users may read or write reviews on its own website, or amazon.com page making people with interest in earphones demand it. (Although Amazon is not what Logitech provided, the selling page was created by its distributor) Therefore, the company uses pull strategy making people demand it after reading the reviews, rather than using push strategy like cheap earphone producers do.

Logitech also uses sales promotion just like on Black Friday last week. I also believe it uses price skimming to extract the consumer surplus of the people who highly demand. I think so because its initial price was close to $500 in the first year, and it slowly dropped.

Every Black Friday, Logitech does a sales promotion. This year, its original price of $399 dropped to $90.

Positing itself differently than typical earphones, I believe the company’s reputation for performance earphones will last for a while.