Sonos Updates Brand Strategy to Expand Audience Base
- Premium speaker company Sonos is refreshing its branding strategy to reach more people.
- The company wants to be more accessible and aims to reach 100 million people in the coming years.
- He launches “Feel More”, his biggest advertising campaign ever centered on his new strategy.
It’s the golden age of audio, and
doesn’t want to skip a beat.
The high-end speaker brand historically targets a wealthy audience. But as it seeks to install its speakers in more homes and fend off growing competition from big tech companies, including Google and Amazon, Sonos is rolling out its most expensive ad campaign of all time to make its products better. accessible to a wider audience.
The company now reaches approximately 25 million people in 11 million homes, or just 9% of its total addressable household market earning $ 75,000 or more per year, said Pete Pedersen, vice president of marketing and communications worldwide at Sonos. It aims to reach 100 million people in the next few years.
“The nature of our business is changing,” said Pedersen. “Today we have more products at more prices that are accessible to a wider range of consumers. And our brand needs to reflect that.”
Sonos has just launched “Feel More,” a “multi-million dollar” advertising campaign that features customers by describing how its products enhance their experiences, from listening to podcasts to watching movies. The company did not specify the exact cost.
The campaign is part of a larger strategy that includes partnerships with companies like Ikea and The North Face, and a range of new products at lower prices like Laptop
speakers. “SYMFONISK”, for example, is an affordable line of co-branded products that the company sells at Ikea.
The idea is to increase the number of ways people find out about Sonos, before they buy back or switch to its high-end products, Pedersen said. More than 41% of its new product registrations in 2020 came from existing customers, according to the company.
The new ad campaign also signals a change in Sonos’ business strategy. While the pandemic and retail store closures have forced the company to shift to direct-to-consumer sales, it is once again prioritizing retail. Sonos said its DTC revenue grew 84% in fiscal 2020, representing a record 21% of its total revenue, up from 12% in 2019.
Returning to retail also means he’s changing his advertising strategy to re-prioritize brand marketing, Pedersen said. While the bulk of Sonos’ advertising budget has been spent on digital channels to tout product or service launches in 2020, 25% of it is now spent on traditional channels, including TV, he said. he declares. Sonos spent $ 263.5 million on sales and marketing in 2020, according to its annual report.
“With the world starting to reopen and especially physical retail starting to reopen, we need to balance this investment,” Pedersen said.
While the proliferation of audio content, streaming content and people investing in their homes are great opportunities for Sonos, its business is affected due to the global supply chain crisis.
But Pedersen dismissed these problems as short-term disruptions.
“In no way do these chip shortages or supply chain slowdowns impact our long-term trajectory,” he said.