SONOSMS DIM | Final Presentation | Spring 2016

Group 5: Lauren Glaser, Cady Hurtzig, Steve Levine, Jennie Nguyen, Jennifer Strock, Braden Young

Wireless In Home Began with Sonos

2002 2003 2008 2013 2016

Sonos enters marketiPod turns one

Napster shuts down

Launches iPhone app

Among first CE

CEO more focus on streaming

Push to develop voice control

iTunes Store launches Raised $118 million

Phases out controller

The Sonos Brand Now

Offerings● Networked wireless

speakers● Components ● Multi-room audio systems● $199 - $1800+

Brand Distinctions● High-end digital &

streaming in-home audio● Partnerships with volumes

of streaming music services

Wi-Fi-Only Advantages● Superior sound quality● Access to more music

sources● In-room flexibility ● Increasingly more

affordable

Audience Target● Modern Music Lovers

Sonos Product Mix

Sub $699

Playbar $699

Speakers Components Home Theater

Play 5: $499

Connect:Amp $499

Connect $349

Play 1: $199

Play 3: $299

2Sonos Goals

1 To increase the size of the wireless multi- room audio market

To recapture share in the wireless speaker market

2Choose a Brand

● 1 in 3 have a brand in mind while shopping, (which most discover through word of mouth)

● 1 in 10 prefer to purchase a brand they already own

Word of mouth and online research are what drive consumers to buy wireless audio.

Why Digital Marketing Strategy Matters

3

1Do Research

● 50% of speaker buyers carry out research prior to purchase

● Most consumers (43%) who buy wireless multi-room audio products buy them at retail stores

Buy Product

Sonos Online Presence vs. Key Competition

Bose Strategy •Social Influences•Sponsorships•Customer Service•Tech Support

JBL Strategy•NFL/NBA Sports Sponsorships•Celebrity Endorsements•Social Influences (#CordFail)•Branding & Product Placement

Sonos must work to raise its social presence

Sonos Current Marketing Strategy

Traditional Media

Event Marketing

Sponsorships and

Partnerships

Digital Outreach

Customer

Let’s Redefine the Sonos Audience

When People Listen to Music Out Loud at Home:

● 83% chores seem easier● 67% have more sex● 50% enjoy cooking more● 50% hang out together more● 43% feel more loved

New Sonos Target: Upwardly Mobile Families

● Men and Women● Married● Have Children at Home● Professional● HHI $75K+

How to Reach Them

Social Listening Influencer

Outreach

Measure Social Sharing

and ChatterContent

Creation & Distribution

Organic & Paid Search

Circumvent the purchase journey by getting influencers to

talk about Sonos

Launch an advertising campaign targeting

upwardly mobile families

Activate brand presence during key moments on the consumer journey

Influence Interrupt Attract

The “Go Home” CampaignThe “Go Home” Campaign will encourage people to rediscover the awesomeness of their home and family by adding their own personal soundtrack, with the help of Sonos.

GO HOME

GO HOME

GO HOME

Digital Distribution for “Go Home”

Social Media Advertising

DisplayAdvertising

EmailMarketing

Sales Growth Conversion RateMarket Share Index

Campaign KPIs

Net Promoter Score

Turn Converted Customers Into Brand Ambassadors

• Administer post-purchase satisfaction surveys

• Prompt customers to review products online

• Upsell new or compatible products to customers

• Provide active social fans with “insider” perks to encourage continued brand advocacy

Questions?

References1. The Consumer Electronics Association (CEA), Consumer Perspectives on Wireless Multi-Room and Portable

Audio Solutions, April 2014.2. Futuresource Consulting, The Audio Shopper’s Journey, 2015.3. Complete.com, February 2016. 4. 1010data, Ecom Insights, 2015.5. IHS Technology, 2015.6. Gigaom, How to Build a Consumer Platform: Lessons from Sonos, 2011.7. Index Ventures, Understanding Brand Lessons From Sonos Brand Chief Greg Perlot, 2014.8. Harvard Business Review, How Tesla Under Armour and Sonos Do Branding, 2015.9. Mashable, The Story Behind the Wireless Music System 10 Years in the Making, 2011