case study on boat company pdf

Boat Branding Case Study: How boAt Captured the Audio Market

Damini Bhandary

Technology has advanced to such a level that, we are surrounded by some of the greatest inventions of humankind. Wherever we looked at, we are surrounded by electronic devices from smartwatches, to wireless speakers to wireless earbuds; all of these are keeping us preoccupied with their services.

The tech market is at its top form now. Music is something that soothes our soul, so there is hardly anyone who doesn’t like listening to music. It becomes even better when you’re travelling alone, nothing can beat the feeling of having music as your companion.

Now, every person has their own preferences, including for music as well, in this case, headsets and earphones are mandatory so that you could listen to your favourite tracks without being a hindrance to others.

The demand for headphones and earbuds has increased at an immense level in the last few years. So much that we will always find a person holding one of the equipment, all the time. There are various companies that provide all types of mobile phone assortment to their customers including earphones and headsets. Among them, one of the most famous ones in India is the company called boat.

In this article, we will talk about boAt's branding strategy and how it has established itself with its prominent and quality products as one of the most loved consumer electronics brands in India.

“What new technology does is create new opportunities to do a job that customers want done.” –Tim O’Reilly

About boAt Branding Strategy of boAt Target Audience Promotion and Advertisements Pricing and Quality of the Products FAQ

The boAt is an Indian company that deals with audio tech that mainly focuses on products like wireless speakers, earbuds, smartwatches , headsets, and earphones. All of them are quite accessible in terms of price. the boAt was founded in the year 2016 by Aman Gupta and Sameer Mehta. The main aim of the company is to provide people with fashionable tech and be a part of their daily lifestyles. Currently, Vivek Gambhir is the CEO of the company.

boAt started its journey with the capital of just INR 30 lacs, which was invested by the founders themselves. As per the reports of 2020, boAt is said to be selling 14,000 to 15,000 of its products daily and has over 2 million customers and has bale to attract the attention of their customers by developing a wide range of earphones, wireless speakers, Airdopes and headphones. The quality and the price make it more approachable to its target audience.

Branding Strategy of boAt

boAt first started experimenting by creating Apple charger cables with anti-destruction properties. It was the time when people were suffering because of getting their charger cable damaged without any obvious reason.

boAt grabbed this opportunity and up their game by creating the indestructible charger cable for Apple. This is how they stepped into the market with unique products that solved the problems of the customers .

That was just the beginning, and then the company started creating products like headphones and earphones. It was so reliable that it can be worn even while working out or exercising. These products were able to get popular amongst the younger generation who are into fitness .

Target Audience

From the beginning boAt was focused on the youth who are into fitness, they made all the products by keeping their target audience in mind. The demand for indestructible products has been increasing day by day, they understood it and started developing it. Plus with various advertisements, they tried to capture the attention of their target audience.

Promotion and Advertisements

To promote the durability of the products, boAt made advertisements where it can be seen people wearing all those gadgets while doing intense workouts and jogging, this proves what the brand is trying to convey to its audience.

From the very first, boAt was focused on marketing through digital marketing and social media. It took up many social media influencers to promote the products as well as their brand. Apart from that various celebrities like Cricketers Rishab Pant, Shikhar Dhawan, Virat Kohli , Shreyas Iyer were a part of a group of celebrities who endorsed boAt.

Not only that Bollywood star, Kiara Advani , Kartik Aaryan, and singer Neha Kakkar and Diljit Dosanjh were present in the list of celebrities as well. They mainly focus on athletes for the promotion of their brand.

Apart from all these, boAt has collaborated with Lakme Fashion week in 2019, promoted its products, and introduced itself as a lifestyle brand instead of an electronic brand. With developing products like smartwatches, portable speakers, and other wearable gadgets it has truly transformed itself into one.

These collaborations with different brands that are liked and followed by the youth are getting boAt its audience. Recently, boAt has collaborated with Bira 91, and the products of boAt can be seen in the music video.

Pricing and Quality of the Products

The best factor and one of the reasons that the brand boAt became such a success was its pricing strategy . Neither it is extremely overpriced nor it is unimaginably cheap, it is just in between. The target audience of boAt is mainly youth so they find it perfect to invest in.

Apart from that, even being affordable, boAt has taken special care of the quality of its products; it hasn’t compromised with it even a bit. The current revenue of boAt as per the 2021 financial year is Rs 1,511.7 crore.

It has been 6 years since boAt was founded and within a little, it has been able to capture the world of electronic gadgets in a mesmerizing way. It has established itself as the 5 th largest brand of wearables in the world and the number 1 audio earwear brand in India. By putting all the branding strategies properly, and selecting their target audience carefully, boAt has achieved an immense level of success and it is only going to get bigger and better in the future.

Is boAt a Chinese company?

boAt is an Indian-based consumer electronics brand that focuses on headphones, earphones, earbuds, smartwatches, and wireless portable speakers.

Who is the CEO of boAt?

Vivek Gambhir is the current CEO of boAt.

Why is boAt so successful?

The reason behind boAt's success is its ingenious marketing strategy and affordable prices.

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Please note you do not have access to teaching notes, a case study on marketing strategy of boat.

Publication date: 10 October 2022

Issue publication date: 27 March 2023

Teaching notes

Research methodology.

All aspects like finances, marketing strategy, competitors, etc. have been taken into account to provide the readers a complete and realistic image about the working, decisions and their outcomes for boAt. Secondary data has been used from blogs, company website and other sources in this study.

Case overview/synopsis

This case presents boAt’s growth in the Indian market because of India’s exponentially growing customer base in the tech and audio industry. This case brings to light all the factors considered and the business decisions to be made while growing in the market. The challenges faced by boAt after they entered the market and the company’s business decisions to overcome these challenges are also discussed. This case provides an opportunity for students to understand the dynamics associated with expanding in a competitive market to maintain growth and maximize profits.

Complexity academic level

This case is suitable for undergraduate and postgraduate students and can be used for courses in strategy, marketing, entrepreneurship and business management.

• Marketing mix
• Digital marketing
• Competitive advantage
• Competition

Acknowledgements

Disclaimer. This case is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.

Singh, L. and Agrawal, A.K. (2023), "A case study on marketing strategy of boAt", , Vol. 19 No. 2, pp. 117-136. https://doi.org/10.1108/TCJ-06-2021-0087

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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The One Liner

Boat marketing strategy case study that can blow your mind, diptaraj bhaduri.

March 2, 2023. 2 minute Read

The wearable electronics marketplace in India was already competitive, with more than 200+ brands lethally competing against each other to take over the Indian market. The reason behind this was the massive size of the Indian market with a young population whose average age is 27+ years. The BoAt was an underdog when it started, but over time, it has become one of the most used and profitable brands in the wearable electronics market sector of India.

BoAt is an Indian company founded in 2016 by Aman Gupta and Sameer Mehta which sells audio-focused electronic products like wireless speakers, earbuds, wired and wireless headphones, home audio gear, premium rugged cables, and a variety of other tech accessories. 

According to a report from 2022, the company started out as a cable manufacturer and seller before quickly expanding into other markets currently has a market share of 32.1% keeping brands like Mivi and Realme far behind.

History of BoAt company

BoAt with the motive to provide millennials and Gen-Z customers in India with cost-effective, durable, and stylish audio goods and accessories, launched as a lifestyle brand in the consumer electronics sector in 2016. Born in 2016, boAt began offering connector cables on Amazon India as its sole channel of revenue. Slowly they then entered into markets of personal audio before sliding into more recent areas like wireless audio, home audio, and smartwatches. The products of boAt are Well designed and reasonably priced in each category and are also backed by aggressive marketing campaigns and a multi-brand ambassador strategy. BoAt now asserts that four devices are sold every minute, or 6,000 units per day. The successful story of boAt made Aman Gupta popular as a marketing genius. It quickly rose to become the fifth-largest wearable business in the world and one of India’s first digitally native brands to record revenues of over $65 million and this success made boAt marketing strategies a talk of the town for all other entrepreneurs who are also trying to stand out in their respective market defeating all their rival brands. 

Success story of BoAt

BoAt concentrates on establishing a quality relationship with its customers in which it views the customers as members of the boAt family, the customer service that boAt provides actually makes their customer feel a bit more special. Also their quality marketing tactics which make them seen everywhere. The products of boAt were made affordable, enduring, and fashionable as the founders thought to make their wearables more attractive to the young customer base of India. They also put a lot of emphasis on the boAt brand and portrayed it as an Indian one using the face of different Indian celebrities. Because Indians are huge fans of both cricket and Bollywood movies, boAt chose to use these cricketers and bollywood stars there as brand ambassadors for the company’s marketing efforts. With affordable pricing and appealing designs, all of these helped the business build a sizable customer base and become a billion-dollar company in India.

Marketing Strategies that BoAt used to capture the market

1. boat used the opportunity quite well..

In 2016, India was changing at a rapid rate, jio has just the Indian market and people have started using the internet at peak. At that time there was a high need to wearables in the market as most mobile phone companies stopped giving a headphone with their mobile sets and the other options were premium companies such as Apple, JBL, and Bose but there was no affordable brand for the majority of population and there’s where boAt saw an opportunity and used it to fullest.

2. Celebrity endorsements

boAt marketing strategies were insane and one of the strongest pillars of their marketing strategy is celebrity endorsements. From cricketers like Hardik Pandya and Rishabh Pant to bollywood celebrities like Kartik Aryan and Kiara Advani, a lot of these celebrities worked as the brand ambassador of boat which made it highly popular among young Indians especially through internet.

3. BoAt featured itself more as lifestyle brand

More than just a normal wearables electronic brand which makes earphones and earpods boAt decided to become a lifestyle brand for the young generation. They even collaborated with different top fashion designers in Lakme fashion week. The cool and funky designs of the headphones attracted many young Indian customers. 

4. Strong Online presence

It’s a well known fact now that if you want to win in the modern world then you need to be able to make your presence felt on social media platforms. boAt ran a lot of social media marketing campaigns and stayed away from traditional media which is also a big reason why young Indians prefer boAt over every other brand. A report says that social media plays a very important role in shaping the purchasing decisions of GenZ.

Final thoughts

We at The One Liner also wish to see you as a successful business person someday. Aman Gupta has already inspired thousands of entrepreneurs in India trying to build something from scratch. Even Aman Gupta claims that Boat has been profitable since day 1. And as per the Economic times, BoAt has seen a solid year-to-year rise in profits and revenue in the financial year 2020. These days, when every company is looking more for funding and talks less about Profit, Boat is the only startup that can inspire many on how to create a profitable business that targets mostly Genz and Millenials.

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Awards and Achievements

1. The company was recognized as the 5 th largest wearable brand in the world in 2020.

2. It served as an official audio partner for six Indian Premier League teams in 2021.

3. In Q3 of FY 21, it became the Number 1 brand for truly wireless and earwear in India.

4. Aman Gupta, the chief marketing officer and co-founder of Boat, was named the D2C Tycoon of the year 2023.

5. Founder Aman Gupta received the Businessworld Young Entrepreneur Award in 2019.

Financial Highlights

Balance sheet.

As can be seen from the above table, the company’s non-current assets increased significantly in 2022. It was 231.7 million INR in FY 2021 and increased to 3698.82 million INR in 2022. In addition, the company’s current liability decreased year over year, indicating a strong financial position. 

Income Statement

Revenue for the company has climbed by about 18% year over year, while profit—both before and after taxes—has sharply declined. The company recorded a total net loss of 1294.54 million INR, compared to a profit of 687.04 million INR for FY 2022. 

Cash Flow Statement

Boat’s cash flow from operating activities has been erratic over the last three fiscal years. While it has improved from FY 2022 to FY 2023, it is still negative by 641.79 million Indian rupees despite positive cash flow from financing activities. 

SWOT Analysis

1.     When compared to other brands in the business, the items from Boat are comparatively less expensive , making them more affordable for consumers. 

2.     Customers in the electronic markets have significant brand awareness for the corporation, particularly in the audio sector.

3.     The company sells a variety of products , such as speakers, earbuds, headphones, and more. 

4.     Their after-sales service brings consumer loyalty towards their brand, as they provide on-time service and have centers across the country.

1.    Boat has captured the Indian market but they were not able to expand its reach in other countries which could be a hindrance to its growth potential.

2.     Boat depends heavily on outside parties to supply the components needed to make their goods. 

3.     The corporation is diversifying into more market categories, which could dilute its brand identity and confuse customers. 

4.    The boat does not have control over its relationships with customers because it sells its products on well-known platforms.

Opportunities

1.    The company’s growth may be aided by its overseas market expansion. 

2.     Boat has recently ventured into the smart wearable industry , which has the potential to grow its revenue in the long run, given how popular wearables are right now. In addition, they can investigate various tech accessories. 

3.     E-commerce platforms are becoming more and more popular , which presents a chance to expand their audience.

4.    The company can sell its products by collaborating with well-known influencers and celebrities , which will raise awareness of the brand.  

1.     Boat may lose market share if they don’t pay attention to their pricing and business strategy in the face of competition from several new companies. 

2.     There are many different fake goods in the market; they must cease as soon as possible since this will damage the brand’s reputation and reduce its income. 

3.     Any economic crisis may affect consumers’ purchasing habits, which will reduce the market for electronic goods. 

In just eight years, Boat has become a leading brand in India and has taken control of the electronic audio gadget market. Their product quality, marketing tactics, and post-purchase assistance are all excellent. Due to their aggressive pricing, other industry titans like JBL and Bose are forced to cut their prices to make the products more accessible to consumers. 

Given the dynamic nature of the consumer electronics market, the company ought to prioritize product innovation, international expansion, and distribution network optimization to sustain its growth pace. 

Frequently Asked Questions (FAQs)

Q1. What is the boat’s parent company’s name?

Ans. Imagine marketing India is the parent company of the boat.

Q2. Is the boat operating in losses?

Ans. Despite reporting a profit in FY 22 and FY 21, the company recorded a net loss of 1294.54 million INR in FY 2023. 

Q3. What is the valuation of boat?

Ans. As of Dec 2023, the valuation of boat was 11500 crores.

Q4. Is boat listed on the stock exchange?

Ans. Boat is not yet listed on any Indian exchange, although an initial public offering (IPO) is anticipated shortly. 

Q5. Where is the headquarters of boat?

Ans. Boat has its headquarters in Mumbai, India.

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

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boAt Marketing Strategy: How the company became the biggest audio superstore in India

Learn about boat's iconic marketing strategy and advertising campaigns. read how boat aces the 4ps of marketing mix - product, price, promotion & placement..

• overview#goto" data-overview-topic-param="about">About boAt
• overview#goto" data-overview-topic-param="marketing">boAt's 4Ps of Marketing
• overview#goto" data-overview-topic-param="noteworthy">Noteworthy Marketing Campaigns
• overview#goto" data-overview-topic-param="key">Key Takeaways

Audio devices are highly personal such that their own form a part of one's personality. The Indian youth is no different, and many homegrown and international consumer electronics brands strategize to capture this third-largest smart personal audio market .

One such brand is boAt, which successfully launched in the Indian market in 2014 via an aggressive marketing strategy that is also its competitive advantage. Today, it is a success story such that it has captured 32% of the market share and is India's fastest-growing audio brand.

In this article, we break down the boAt marketing strategy and business model that teaches us how to stay relevant in a red ocean market.

About BoAt consumer electronics company

Boat is a consumer electronics startup that brings millennials affordable, durable, and fashionable audio products and accessories .

The boAt story began when co-founders  Aman Gupta and Sameer Mehta , the owner of Redwood Interactive, saw an opportunity in the Indian market for affordable, good-quality audio products. Aman Gupta used to work as a CA and Assistant Manager at Citi Bank before he joined JBL in 2012.

In 2014, Aman Gupta launched boAt lifestyle when he teamed up with Sameer Sharma to sell unbreakable charging cables for iPhones. Due to his previous experience working for JBL, Aman was ambitious as he had a deeper understanding of the audio industry. Since there weren't any branded manufacturers at low pricing rates, and even if they were, they didn't provide good quality products, there was a HUGE  gap in the market.

Image source: Aman Gupta's Twitter

Since then, the company that began its success story from being a cable manufacturer has expanded its product range to include wireless headphones, wireless speakers, computer gaming peripherals, wireless or wired earphones, Bluetooth speakers, and other electronic gadgets.

BoAt's Investors

In 2018 Investors Kanwaljit Singh and Fireside Ventures invested a combined $600m into the company. They felt enthralled by the extraordinary service of the organization in identifying the right audience and maintaining an outstanding standard of quality products.

As mentioned in their blog , in 2021 Qualcomm ventures  i nvested approximately 100m in the business at an estimated cost of Rs 2200m. Overall, The company now holds five investors.

Image source: Entrepreneur India

Marketing strategies that helped lifestyle brand boAt succeed:  The 4P's of marketing

When talking about boAt as a rising brand providing technical audio support, it's not just any ordinary audio support; it's high-quality, reliable audio that everyone can depend on. So, how does boAt market itself as a brand to ensure consumers understand this?

There are multiple marketing strategies adopted by boAt to become a leading brand in India's fastest-growing audio devices market - let's look at them with 4P analysis lens:

boAt products strategy

boAt started with only accessories, but today offers a wide range of audio products, including boat headphones, boat earphones, wireless speakers, wireless earbuds, home audio equipment, wireless earphones, etc. They have something for everyone, and is a market leader for consumer electronic products in affordable prices or high-end gear range.

Regarding sound quality, the boAt brand is known for delivering exceptional audio. This company aims to deliver products designed to provide an immersive listening experience, and they often use premium materials to ensure optimal sound quality.

Overall, boAt's products are well-made and offer great value for the price. This helps further boat marketing strategy as they can position good quality products at affordable rates compared to the competition in this category.

Image source: India TVNews

boAt's pricing strategy

The boAt pricing strategy is simple yet effective - they offer quality products at an affordable price. This has allowed them to become the biggest audio superstore in India.

boAt offers a wide range of products, from earphones and headphones to speakers and cases. Their prices are highly competitive, and they regularly offer discounts and promotions on their website. This makes them an attractive option for customers looking for quality audio products at a reasonable price.

BoAt Revenue and Marketing Performance

In both the initial years of business as an Indian startup, boAt lifestyle needed more funds. After Fireside ventured, boAt lifestyle has tripled its revenue . In December 2020, boAt became the fifth-biggest wearables brand in the world, overtaking Apple , Samsung, and Xiaomi in India. As reported by Forbes India , boAt's revenue stood at rupees 701 crores in FY20, and profits at rupees 49 crores.

In addition to selling 15,000 units every day within its three million+ online community, it partnered with six IPL teams this year and enlisted 14 brand ambassadors from Bollywood and cricket.

Furthermore, true wireless stereos were priced 48.6 percent cheaper year-on-year in the third quarter of this year, dropping to $57 on average. The market grew to 10 million units during this period, with boAt concentrating on the entry-level product range audio segment, thus finding a sweet spot in terms of pricing.

Image source: Forbes India

boAt's Distribution Channels

The boAT marketing strategy across its product distribution essentially follows a pronged approach when it comes to marketing - online- offline, and word of mouth.

for online digital marketing, the company invested heavily in search engine positioning so that they appear as the top result when users search for keywords related to their products.

Word-of-mouth marketing is also critical for boAT's success. They have leveraged their strong and loyal customer base to spread the word about their products via community-building initiatives. In addition, they've made sure to actively engage with their customers, especially on social media platforms. This has allowed them to get positive reviews which have further boosted sales.

Source: boAt Lifestyle website

All in all, the boAt marketing strategy of combining online, offline, and word-of-mouth tricks has helped them stand out from their competitors. Their focus on creating an omnichannel presence along with engaging customer relationships has enabled them to become one of India's most recognized brands in the audio equipment segment.

boAt's Promotion Strategy

To break into the audio market, boAt had to establish itself as one of the significant premium brands and invested heavily in digital marketing and influencer marketing to reach a wider audience.

boAt’s digital campaigns included creating digital content for its target audience, advertising on major digital platforms like Instagram and YouTube, and engaging with online influencers to a   brand development hype.

boAt collaborated with celebrities and content creators such as actors Ranbir Kapoor, Kartik Aaryan and influencers such as the YouTube sensation Prajakta Koli who could help spread the word about their fashionable audio products. This led to widespread brand visibility and an aura of exclusivity being created around BoAt products.

Let us look at various promotional marketing strategies adopted by the boAt brand:

Lifestyle Marketing strategy

To market itself as a lifestyle brand, India's leading audio support company, boAt made use of various marketing strategies.

Firstly, it utilized social media platforms such as Facebook and Instagram to reach its target audience. Through these platforms, boAt created a community of people who shared the same passion for the music industry and audio products.

For example their Marvel Collection was a special collection of earbuds, headphones, and speakers designed especially for Marvel fans. This collection features characters like Iron Man, Captain America, and Black Panther.

Images source: boAt lifestyle

Organizing events and meet-ups

Secondly, the company began organizing events and meet-ups where like-minded individuals could come together and share their love for music. This helped create a solid bond between the brand and its existing and potential customers.

Traditional marketing strategies

Finally, boAt also used traditional marketing channels such as television and print media to spread awareness about the brand. Overall, using a combination of online and offline marketing strategies, boAt successfully established itself as a lifestyle brand.

Personalized message strategy

For the boAt marketing strategy to win, the brand needed to focus on customer service. It did this by ensuring that its customers could get the best possible experience when using its products. They sent personalized messages via emails and SMS, created a customer care helpline, tailored warranty policies, and kept the customer in mind when designing new products.

Additionally, now Boat offers "Do what #floats your boat" pages on its very own website. They designed various digital marketing campaigns around this for building a stronger community. This allowed customers to get quick help and walkthroughs on using specific products or features according to their tastes.

Image source: boAt lifestyle website

Apart from all this, the boAt co-founders, especially Aman Gupta has become very popular since his stint in Shark Tank India edition. He is publicly appreciated and loved, and his brand received a lot of publicity thanks to the show's popularity.

Noteworthy boAt Marketing Campaigns

The boAt marketing strategy is always on top for its digital marketing campaigns. They never fail when it comes to aggressive social media marketing campaigns that often include celebrity endorsements, social media influencer partnerships, and innovative marketing initiatives like community building.

image source: Shark Tank India

Rock with boAt challenge

This is one the most recent challenges of boAt that has reached over 1 million people and generated a lot of positive buzz around the brand. A lot of celebrities and influencers were seen wearing their wireless earbuds and showing some moves.

More in Everyday

The #MoreInEveryday campaign was a reminder for GenZ, hustlers, and doers about all that they can accomplish with an Alexa on their wrist.

View this post on Instagram A post shared by boAt (@boat.nirvana)

Thanks to this well-rounded approach, boAt quickly became the go-to brand for quality audio products in India. In just four short years, they have gone from selling headphones out of the trunk of a car to becoming a Rs.100 crore company!

Official audio partner for Lakme fashion week

boAt's unique intent to promote itself was evident at the Lakme Fashion Week (2009) in Mumbai, where all models wore BoAt products. BoAt showcased its products in the fashion industry as fashion accessories. Models in the Lakme fashion week wore BoAt products as the only accessories on the stage.

The brand even created a limited edition of their headphones for the Lakme fashion week. In addition, the brand ambassadors were carefully selected based on their face value among millennials, especially those from Bollywood and sports (cricket). Such simple curation allows boAt to stay relevant among their target audience.

Images source: Lakme Fashion week Facebook

Key takeaways from the boAt marketing strategy for Entrepreneurs

One major takeaway from boAt marketing strategy is how one should think of finding market gaps and getting aggressive for winning the market via pricing strategies. Apart from this, here some more marketing strategy lessons to remember:

Establish a personal connection with your audience:

One of the critical things that boAt does well is to establish a personal connection with its audience. This is evident in their social media presence, which is very engaging and relatable. They use a mix of humor "baby ko bass pasand hai" and SERIOUS business advice to connect with their followers, which has helped them build a strong bond with their target market.

Image source: boAt lifestyle

Know your USP

boAt knows its unique selling proposition (USP), and it uses this to its advantage in its marketing efforts. The brand's USP focuses on providing affordable and high-quality audio products, which is reflected in its marketing messages. By communicating this USP clearly to its target market, boAt is able to differentiate itself from other brands in the industry.

Be active on social media

Social media is a powerful platform for promoting businesses, and boAt has leveraged effectively. The brand is active on all major social media platforms, and it uses these platforms to engage with its audience, promote new products, and offer valuable content. This approach has helped boAt build a solid online presence and reach more people with its message.

Use influencers wisely

Influencer marketing can be extremely effective, but it must be done carefully to avoid pitfalls. Boat uses influencers wisely by partnering with relevant influencers who have a genuine connection with the brand's identity.

BoAt captivated the entire electronic gadgets market in just six short years. The company is one of the five largest and top-selling wearable brands worldwide and at present the 1st in India. It has excellent branding strategies. Currently, it concentrates on an intelligent, crisp marketing campaign and effectively use digital platforms to promote their business.

Although there were several pandemics, the brand used different tactics. The boAt marketing strategy has caused other giant companies such as JBL and other audio manufacturers to lower their product prices in a competitive market.

If you are building a consumer brand, you can also check out our other case marketing strategy case studies for Apple in technology space or Nike in wearables brand space for more inspiration.

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boAt Case Study and Marketing Strategy

boAt is often regarded as India’s fastest growing audio & wearables brand. The company has become really popular in the last few years and gained further recognition when one of its co-founders, Aman Gupta, appeared as a “shark” in Sony TV’s smash hit show “Shark Tank India”. Reports suggest that the sales of boAt headphones have gone further up a notch, courtesy of the investment-raising show that had rocked the TRP charts and social media trends in early 2022.

I this post, we will ‘dive’ into boAt and take a detailed look at the company and its marketing strategies through a thorough case study.

Table of Contents

A Brief History of boAt

boAt began its journey in the year 2016 when co-founders Aman Gupta and Sameer Mehta decided to offer fashionable audio products at a price never seen or heard before. The two co-founders started out with a capital of INR 30 crore. BoAt wanted to create value for the users so they started looking to solve common problems reported by the youth. It was the time when Apple users were suffering because of their charger getting damaged without any apparent reason. So they decided to make Apple charger that could withstand wear and tear for long, and they were quite successful at that.

Later, the company went on to add a number of quality products such as earbuds, headphones, smart watches, wireless speakers, etc to its product range. As of December 2020, boAt was already selling 14,000+ products in India every single day. BoAt’s both audio and wearable range offer top-notch quality whilst keeping the price affordable. Established audio electronics brands like JBL had to drop down their prices in order to stay relevant in the target industry.

boAt Funding

• Kanwaljit Singh of Fireside Ventures invested INR 60 crore in boAt in the year 2018
• Warburg Pincus, a New York-based private equity fund invested $100 million in boAt for a significant minority stake
• The company raised INR 50 crore from Qualcomm Ventures at a valuation of INR 2,200 crore

boAt Revenue and Marketing Performance

The company struggled in the first two years of its operation (2016-2018), mainly because of the lack of funding. However, once the company raised INR 6 crores from Fireside ventures, there was no looking back. According to filings with the Registrar of Companies, boAt’s FY2018 revenues grew by 4 times to INR 108 crore.

Fast forward FY-2019, boAt became the leading ear wear brand with a 27.3% market share. In FY 2020, the fashionable audio brand generated revenue of INR 500 crore. This was a staggering 108% increase from 239 crore in FY 2019.

When boAt started off, it was just available on popular E-commerce stores like Amazon and Flipkart. However, its products are now available in 5,000+ retail stores. boAt has reportedly served more than 20 million customers so far!

boAt Marketing Strategies

The company knows just too well the likes and dislikes of their target audience and the places they visit often- social media, Google, gym, etc. In a nutshell, boAt has targeted the youth of the nation very well as can be seen from the below mentioned marketing strategies:

1) Presenting itself as a lifestyle brand

boAt has never portrayed itself as a consumer electronics company. Rather, it has always taken immense pride in presenting itself as a lifestyle accessories brand. Doing so creates an image in the mind of the user that boAt products can be used at all places whether you are sweating in the gym, or commuting in a bus.

This intent of the company was also visible at the Lakme Fashion Week (2009) in Mumbai, where all the models sported only boAt products.

2) Digital Marketing

Over the years, the company has spent a lot of money on online marketing, as they have targeted the youth. BoAt has mainly run its campaigns on Google and social networking websites like Facebook and Instagram. Interestingly, all customers of boAt are referred to as ‘boAtheads’. The company has also appointed youth icons such as Kiara Advani to win the trust of the customers.

3) Expanding Range of Products

Some companies launch a product, gain success and then fizzle out as they fail to expand their catalo. Expanding your product range over the years is a good marketing strategy in itself and boAt has been exceptional at that. The company first made indestructible apple charging cables and chargers. Tasting success, they did not stop at that introduced ear phones, which was followed by wireless speakers and headphones. With this continuous, well-thought expansion, they were able to capture a large share of the market, owing to which its popularity grew by leaps and bounds.

4) The Perfect Targeting

boAt products offer affordability without cutting down on style. This was not a common thing 7 or so years ago, when the market had either premium brands or cheap ones that did not offer an X-factor. The blend of two was rare. BoAt addressed that gap with its products that attracted the youth. The brand ambassadors were also carefully chosen which had a great face value among the millennials, especially from industries such as Bollywood and Sports (Cricket). In terms of quality of the ear wear, the products could be worn without any fear of damaging them even while gymming or performing high-intensity exercise in the outdoors.

boAt has made a huge name for itself in the last 4 years. It’s reputation and popularity was bolstered after the appearance of one of its co-founders, Aman Gupta, on Shark Tank India season 1. On the marketing, pricing and styling front, the company has left no stone unturned in outsmarting the existing competition. The impact has been such that renowned brands like JBL had to cut down on its prices in order to stay relevant in the industry.

The future of the company looks quite promising, courtesy of a dedicated R&D team, millions in funding and the zeal to stay appealing to the youth. Notably, Aman Gupta’s present net worth is INR 10,500 crore.

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• DOI: 10.1108/tcj-06-2021-0087
• Corpus ID: 252791242

A case study on marketing strategy of boAt

• Lakshya Singh , A. Agrawal
• Published in The CASE Journal 10 October 2022

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Home » Boat Case Study – Aman Gupta’s Marketing Strategies

Boat Case Study – Aman Gupta’s Marketing Strategies

The boat is one of the most incredible brands in the Indian startup ecosystem. The most astonishing thing about this company is that within just five years they have achieved such a strong position in the market, that if you look at TWS or the true wireless stereo market as of Q3 of 2021.

While bolt stands at 5.3%, Noise stands at 7.7%, Realme stands at 8.1%, and Boat stands way ahead with a market share of 35.8%. Which is literally more than the next three competitors combined. On top of that, the revenue of the company has already crossed 1500 Crores in FY2021. The profits have already shot up by 61% since Fy2020. Considering the fact that Boat is now going for an IPO.

The question is

• How did Boat achieve such an extraordinary position in the crowded wearable market of India?
• What exactly was their business strategy?
• What are the business lessons that we need to learn from Mr. Aman Gupta & his wonderful team at Boat?

Table of Contents

Genius Market positioning

One of the most important reasons for its success is its genius market positioning. If you look at the rise of Boat it is very very similar to the rise of Oneplus phones in India. Many of you must have seen that there was a time when the Oneplus brand was just one of the most functional underrated brands in India. And, it is only popular among tech enthusiasts. But suddenly with the launch of Oneplus 7 the Oneplus tag became one of the most popular brands in India. You could literally see Oneplus 7 phones everywhere in 2019. Infact at one point in 2019, Oneplus was selling more phones than Apple and Samsung combined. Now the question is in spite of the phone market being so crowded with Vivo, Oppo, Samsung, Huawei, and Apple.

How did Oneplus Become a Legend?

The answer to this question lies in this pricing chart. If you look at the pricing of phones in India back in 2019. You will see that iPhone was the costliest with pricing of 85,000 rupees, then we had the Samsung s10 priced at 55,000+ rupees, and then straight away we had Oppo Vivo and other companies that were primarily focused on selling phones below 25,000 rupees.

Although they had costlier phones in India the focus of these companies was more on 25,000 rupees and below that price range. Now you see there is a huge gap that left out between 25,000 rupees to 55,000 rupees which were only being addressed by Samsung. As we all know Samsung phones do not offer as much as value for money as their counterparts. This audience was the most premium unaddressed and more importantly a large audience that was left untapped. Here’s where we saw the rise of two phones.

Xiaomi Mi 9 at 31,000 rupees and Oneplus 7 was priced at 35,000 rupees. Both these phones positioned themselves exactly in between the 25 to 55,000 rupees price range. They both had insane specs and offered way more value for money as compared to Samsung phones.

Now the question is

Why didn’t MI 9 become a market leader like Oneplus?

That is because Oneplus built a crazy level of aspirational value for its brand. Because of getting endorsed by none other than Robert Downey Jr. himself.

Now I don’t know how many of you noted this but then in the exact same year, the Avengers Endgame hype was at its peak. Because when Endgame was about to release in 2019. And everybody knows what an insane fan base Robert Downey Jr. has in India. This aspirational value is something where Xiaomi lagged because of this Oneplus won a huge market share in India in 2019.

I’m not saying that everyone bought Oneplus phones because of Robert Downey Jr. but the fact is that the aspirational value that Robert Downey Jr’s endorsement got to Oneplus got enough people to see Oneplus as a premium brand. Because of this, it got enough people to buy the phone. When people saw that the tech was genuinely the best that you could find in that range. It eventually led to positive word-of-mouth and hence Oneplus 7 became one of the best-selling phones in India in 2019.

Now if you own a Oneplus you must have also noticed that you actually considered buying an iPhone. But when you saw the stupendous difference between the price of Oneplus and an iPhone. Oneplus by default looked like an obvious and the most comfortable choice of all. Therefore the Oneplus brand was able to build an aspirational value in the minds of premium customers in India. Because of this, it was able to beat Xiaomi and was able to tap into those users who were premium customers but could not buy an iPhone.

How is this related to Boat and what does Oneplus position have to do with Boat

If you look closely after apple introduced the AirPods in 2016, three important things happened in the exact same year.

• There was a sudden boost in the fascination with wireless earphones
• The JIO wave hit India in 2016 which led to the skyrocketing screen time of Indians.
• Phone manufacturers stopped shipping earphones along with their smartphones. If they did these earphones were the most basic versions in the market.

All these three factors created a huge market for the wearable in India. So, from 2017-18 onwards many-many companies started jumping into the wearables market.

If you look at the pricing charts of the most popular brands in 2018. This is what it looks like. First, we had the ultra-premium wireless earphones category. Wherein we had Bose and Apple, which had a base price of 17,000 and 15,000 respectively. Then in the premium category that is between 10 to 15k. We had only JBL as a significant brand with its pod version being priced at 10,000 rupees. Then for sub-premium that is between 5000 to 10,000. We had Sennheiser’s wireless earphones, which started from 6400 rupees onwards. Below this price point that is below 5000.

There was no giant brand and yet there was a huge demand for wireless earphones in India. This is where we saw four brands come in Mivi priced at 3000 – 4000 rupees Skull Candy priced at 2,000 rupees onwards. We had Boat rockers at 1999. And then we had Noise Shots priced at 3999/-. And then we had several local brands including Bolt that was priced at 999 rupees below.

With these four competitive brands what was so special about Boat that it is now the market leader by such a huge margin?

There are two specific reasons for that. While Skull Candy was only popular among enthusiasts and a very limited segment of the audience the other brands like Mivi and Bolt were barely known in the market. Whereas Boat had become far more popular because they had roped in Hardik Pandya in 2018.

This is where the power of celebrity endorsement comes in. Just like Robert Downey Jr’s endorsement brought in an aspirational value for one plus. Hardik Pandey’s endorsement by default built an aspirational value for the boat as a brand.

As a result in the 2000 to 5000 rupees, category Boat became far more familiar than their counterparts.

Now some people might say “Just because some celebrities endorsing, why will we buy earphones? We are smart enough to make a good choice without endorsements” .

Here are some basics of marketing for you. A customer knowingly or unknowingly determines the value of a product based on two types of values.

• Tangible value
• Perceived value

1. Tangible value is the real value of the product. As in if the audio sounds great in one earphone it has a great tangible value.

2. Perceived value as the name suggests is basically the judgment that you make based on how the product is portrayed.

The fact about audio devices especially earphones is that only trained ears or people who are involved in video editing or sound editing can actually spot the intricate differences in audio. Whereas the knife ears will not be able to tell the difference in audio quality between the two devices.

As a result, you can barely spot the difference between the two products. As a result, the entire audio market from the customer standpoint is practically commoditized.

Since there is no added tangible value to the product that you can spot the only value by which you will judge an audio product like your phone is by perceived value

So if I place two earphones one of some random brand and the other that is being endorsed by Hardik Pandya, You are more likely to trust the latter than the former. Even if you are not a diehard Hardik Pandya fan. So the only delta that inclines you to purchase a product like your phone is the perceived value of the product.

Just to give you an idea about how super powerful this is. Here’s some simple math. Merely because of celebrity endorsement if Boat is able to charge an average premium of just 200 rupees extra per product.

Here’s what it looks like with 16.6 million TWS units shipped this year. And with Boat having a 35.8% market share. Boat would have shipped close to 59 lakh units. So if they got you to pay an average premium of 200 rupees per product due to celebrity endorsement. Boat has already made 118 crores extra in revenue. A fun fact is that the profit of the company in FY21 itself is 78.6 crores. This is the power of building a perceived value in a crowded commoditized market.

This is the reason why boat obsessively focuses on presenting itself as a lifestyle brand, to build an aspirational value for itself both with endorsements and design. After Hardik Pandya, they also roped in Rishabh Pant, Shikhar Dhawan, Bumrah, and Prithvi Shaw in 2019. Followed by Neha Kakar, Kiara Advani and Kartik Aryan. After that, they also signed up Shreya Shair and Diljit in 2020.

Boat also collaborated with celebrity designer Masaba Gupta to launch a limited edition collection of spunky headphones at the Lakme fashion week 2020.

Now they’re also collaborating with Bira. Which is again one of the most favorite millennial brands in India.

This is how just like Oneplus was able to present itself as a far more premium product, a far more familiar product as compared to Xiaomi MI9. Boat through its collaborations has been able to build the same aspiration value to stand out from the rest of the crowd. We also know from the jockey case study how powerful this aspirational value building is.

Boat Stone Bluetooth Speakers changed the game?

One of the most underrated reasons for Boat’s success was also the foundation they laid with an insane product called Boat Stone. These speakers are by far one of the best Bluetooth portable speakers on the market. The reason why this is such a big deal is that Boat stone became popular without celebrity endorsements or any fancy marketing strategy.

During that time while JBL flip was priced at 4999/- rupees. Boat Stone was priced at just 2199/- rupees. According to me, Boat sounded as good as JBL. This is the reason why the Boat is standing tall in spite of powerful players like Realme and Oneplus in the market. Even today at the entry-level in the earphones market Boat is still priced at a bare minimum of 299/- rupees. Because of this a student is more likely to buy a Boat. And when he loves it three years later after he graduates, when his purchase power increases. He is more likely to buy a Boat product. Whereas in the case of Oneplus the cost barrier itself is very-very high.

Now after laying a solid foundation of positioning itself as a lifestyle brand Boat is slowly expanding its price range to position itself in the upper range of 4 to 5000 rupees. It is also getting into smartwatch segment which is again a huge market to be tapped.

How Noise is using brand ambassadors?

Very interesting to note is that just like Boat created an aspirational value for wearables. After apple created a huge market for smartwatches. Noise is now getting ambassadors like Tapsi and Rohit Sharma. And is even spending a ton of money on social media campaigns to build aspirational value for its watches. This is boosting not just its watch sales but also the wearable sales. Because of this it is already the number two player in the market right next to Boat. Now the rivalry between noise and boat is something that’s going to be very very interesting to watch.

This is how building a quality product, choosing a wonderful time to enter the market, standing out from the rest of the competition through lifestyle marketing, and strategic collaborations. Aman Gupta and the team have turned both into a market leaders in the wearable segment of the Indian market.

Business Lessons from Boat & Aman Gupta Strategy

There are 2 very-very important things that you need to learn from this case study.

1. Differentiate your product from others

Whenever you launch a product in a crowded market. Always try to figure out how you are going to differentiate yourself in the presence of the big guns. In this case, if someone had told Aman Gupta that “dude! There is JBL, Apple, Skull Candy, and so many other brands then what is so special about you”. Then on the outside, it almost looks like there is no room in the market. But the moment you take a pen and paper and you start noting down their price slabs. You will very clearly be able to see that the 1000 rupees to 5000 rupees slab are literally empty, and you could actually make your mark over there.

2. Use Celebrity Endorsements Wisely

Celebrity endorsements although look like a cash drain. In some cases even today it could be a game changer in a crowded commoditized market. Considering this factor I’ve got one question for you. Mivi actually had ambassadors like Carry Minati and BB ki Vines endorsing their product. right? but Boat went with Hardik Pandya, Kartik Arayan, and the rest. My question to you is do you think this difference in the choice of ambassadors made a difference? If yes then tell me why in the comments section.

Do you Know How Cred Make Money & What are their strategies

Study Material

If you find the time please read this book called Alchemy by Rory Sutherland .

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Boat: the Indian startup scripts a revolutionizing growth strategy

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