Following the new £10 million ad campaign “Get Set Go Argos”, Brand View has compared the pricing of the newly introduced Bose speaker brand to other speaker brands traditionally stocked by Argos.
Using Brand View analytics we’ve compared pricing across the Argos speaker product range (including variations over time), pricing across various Bose product categories, as well as looking at Argos speaker pricing strategies compared to its competitors.
“Get Set Go Argos”
The “Get Set Go Argos” campaign, which saw Argos advertise in cinemas for the first time, highlights the introduction of new premium brands, including Bose, Beats, Dyson and Habitat.
Stephen Vowles, Marketing Director at Argos, when interviewed by The Drum said “Now it’s time to get people to think about Argos differently and get customers and non-customers to sit up and take notice”. He explained that the retailer wanted to “assert our own uniqueness and re-establish ourselves as a unique category of one player.”
Introducing the Bose brand
The day after the new ad aired on TV, Argos started listing Bose products, with 57 products initially offered over four categories:
- Computer speakers
- Headphones and earphones
How does Bose pricing compare to the full Argos speaker range?
When first introduced on 15 October 2014, the Bose Soundtouch 30 Wi-Fi Music System was the most expensive product in the Speakers category with a shelf price of £599.95, almost £200 more than the second most expensive product, Roth Oli Ra4.
Of the top ten most expensive speaker products stocked by Argos four are Bose products; cementing its reputation as a premium brand. As the price ladder below shows Bose is competing with brands Onkyo, Roth and Panasonic at this higher pricing level:
Bose has the second most expensive average shelf price in the Speakers category behind Onkyo which has an average price of £299.99. Argos stock five colour variations of the Bose Soundlink portable speaker which retail for £119.95, whereas only one Onkyo product is listed – the Onkyo Sks priced at £299.99.
Do prices vary over time?
During the five months since the launch of the Bose speaker range, Argos has not changed the price of any Bose products. Bose remain the second most expensive for speaker products of six brands analysed on 11 March 2015.
Onkyo is still the most expensive brand with the price of its one speaker product peaking at £313.99 the day before Black Friday. Panasonic dropped from third most expensive brand to fifth due to Argos delisting two multi-room speakers, leaving Panasonic with just the one speaker product. Denon became, on average, the cheapest brand of the six analysed due to Argos increasing the price of two Jawbone wireless speakers.
How do prices compare across the different Bose product categories?
Brand View has ranked the average shelf price in each category that Argos has listed Bose in. We’ve reviewed the rankings twice, on the day Bose was introduced (15 October 2014) and then again on 12 March 2015, to see if the rankings have changed over time.
On 12 March 2015 Bose were the third most expensive speaker brand in three of the five categories in which it features, compared to second most expensive five months previously. This is due to the fact Argos introduced the IN2UIT Filo bluetooth speaker which surpassed Bose as the second most expensive brand.
In the highly competitive headphones category Bose were pushed back from third to the fifth most expensive brand, with Samsung Level, Beats by Dr Dre, Beats Mixr and Polk all averaging a higher shelf price in March 2015.
Bose was the most expensive brand in the Soundbar sub-category when Argos introduced the manufacturer’s three sound systems, however, since then, Yamaha launched a bluetooth soundbar that retails at £749.99, making it the most expensive brand.
How do Argos current pricing strategies compare to competitors?
Currently Argos competes with Currys and John Lewis in selling Bose products. Using Brand View Price Index report function, which allows clients to benchmark their own price as an index and then compare competitor pricing, we’ve created the bar group below.
This graph shows that surprisingly Argos are 1.8 percent more expensive than John Lewis and 0.9 percent more expensive than Currys. The only sub-category in which Argos are not the most expensive is Soundbars. As the graph shows John Lewis do not stock any of the same Soundbars as Currys, which it matches on price.
Using Brand View to quickly create a price comparison table for the Bose Companion 2 product; we can also see that Argos is the most expensive stockist of this product. Currys promotion means that they price match John Lewis at £84.99, whereas Argos are selling the product for £89.99.
Argos has used consistently high pricing levels across the full Bose range since its launch in October 2014, with no price changes made since introduction. Unlike their competitors, Argos has not promoted its Bose product range, which means it is the highest priced Bose stockist; this may be surprising to shoppers who may have traditionally perceived John Lewis as the premium retailer. Although not the most expensive speaker brand that Argos stock, the pricing strategy over the past five months clearly position Bose as a premium brand.
Not already using Brand View? Request a free evaluation today and experience the power of Brand View completely free of charge for 14 days.