How Competitive Analysis Shaped Beats by Dre – and How Designers Can Use It Too!
Hello you creative mind!
There haven’t been many moments in my life where I felt like a poor man’s version of Chris Hemsworth while walking down the streets of LA with Beats on. You see, around 2014, at the company’s peak, it wasn’t uncommon for people to pay attention to the type of headphones you were wearing. And Beats (chef’s kiss) was a textbook example of getting all eyes on their product.
But, as with most things, serendipity has a funny way of working itself into your life when you least expect it. Back then, I had no idea that those same headphones would lead me down an unexpected path into the world of tech and design. It all started when my business professor, Smith at Cal State Northridge, probably after one too many office-hour chats, noticed that I didn’t come to discuss the overly expensive textbooks at campus. Our conversations were always about tech and business—particularly how they collided in the music industry. Anyway, let’s speed up my heartfelt memories.
After many more talks, he decided to connect me with someone he thought I could learn from—Frank. Frank was a renowned marketer who had worked with Beats before its heyday. He knew how they took a product and turned it into a juggernaut, but what I didn’t expect was how much I’d learn from him about competitive analysis: How to gather data, and how to read between the lines to bring all that insight back into product design and business requirements.
Now, if you’ve made it this far, mon ami, fantastic! I’d like to share two product analysis methods which I was thought, that reflects the brilliance of Beats go to market strategy, that you can apply into your own ideation/research process.
1. Your product is not alone in the market
“Your product is not alone in the market. You’re not just building for your consumers — you’re building to earn a seat at the table. — Frank”
You’ve probably heard that designers should prioritise user needs over competitors, and they are damn right. After all, what’s the point of a product if it doesn’t accommodate their needs? However, the argument against competitor analysis often feels like it’s been confined to the idea that it leads to mindlessly copying others or obsession. Competitive analysis isn’t about imitation or obsessing over what others are doing; it’s about understanding your market position, spotting trends in technology or consumer behaviour, and finding ways your product can add values. Just ask BlackBerry who ignored their competitors and refused to abandon their keyboard. When Beats entered the headphone market, they didn’t just rely on the star power of Dr. Dre and Jimmy Iovine. They carefully studied their competitors to find areas where they could stand out. This humble approach laid the groundwork for what we call Brand/Product Awareness Analysis.
Brand/Product Awareness Analysis
Beats set themselves apart by being loud — not just in sound, but in design. They saw that most headphones looked alike, and they didn’t want to blend in. To stand out, they focused on visual uniqueness, a design that was so good that it was instantly recognisable, even from afar. Brand/Product awareness analysis is key here, as it not only reveals how competitors are perceived but also highlights opportunities to differentiate. It’s a method to help your product carve its own space in the market. And you can do it too.
How to apply it:
Brand Awareness Analysis can help you kickstarting your creativity. By narrowing down your insights you will be able to identifying what’s working in your market and where there’s room for exploration:
- Create lists of questions like “How well consumers know a competitor’s design.” Once you listed down your questions find participants for interview.
- Create a table to capture your responses. See table below as an example.
- Designing or sketch your idea(s) based on the insights you gathered.
I used my research insights as a starting point, to sketched an initial concepts (See image below).
B. Allow your design to reflect the value you are offering.
“Beats wanted to be perceived as premium headphones — innovative and cool.” — Frank and Burke, BI Analysts
Whether your product is physical or digital, its design should reflect the intended value and user experience. Good design serves as non-verbal communication, quickly conveying your product’s purpose and benefits. For instance, Beats designs their headphones to reinforce the perception of high-quality audio. Imagine if Dyson cut corners on design; they’d have to justify why a £400+ vacuum looks like a budget knockoff! Aligning your value proposition with design is essential for building trust and attracting customers. The Product Value Hypothesis tests if the design aligns with user values and predicts how it delivers specific value. For Beats, this alignment was key to their success, as then my own research shows that Beats owners believed the design effectively represented what the company offered — though this data is from 2015, values may have since changed.
How to apply it:
1. Start with a hypothesis that you believe to embody the product value and mission through design. Example:
“By designing the headphones with a minimalist aesthetic, large drivers and bold colours, consumers will perceive a higher level of sound quality, improving their overall listening and purchasing experience.”
2. Frame your questions to match your hypothesis. In my case I asked questions such as “What made you buy the headphones? Do you believe the design match what the listed values the product promised?
3. Evaluate & Implement the feedback to see if your consumers/user perceptions reflects the value that you intended the product to reflect. If the feedback indicates a disconnect — you can revise the design and see where you can make the changes.
Give Beats Its Flowers 💐
Every now and then, we are remind that Apple is the epitome of a company transforming an industry through design. Like some, I’m a fan of Apple products, and I always look forward seeing what Tim Cook and his team have been “cooking” (see what I did there). But, I believe Beats deserves the same recognition, what the engineers, designers, and the marketing team achieved wasn’t just about creating stylish headphones — they change how we carry music to our ears.
The End
Competitive analysis is a detective work, where you gather clues to understand the market landscape and uncovering your own hidden opportunities. This method can be applied to digital products too. My colleagues and I used this approach for VHI’s app during their market entry, going beyond design requirements and tapping into areas other health providers might have missed, leading to subscriber and financial growth.
