How does a marketer with a product that's already the category leader improve its position? Cut a deal with another marketer that has a category leader and find a way to connect the two, that's how.
Bose speakers were already doing well when, in 2004, the company hooked up with Apple to collaborate on the $299 SoundDock Digital Music System for Apple's digital music player. "They pioneered the
all-in-one premium iPod speaker system," says Ross Rubin, an analyst at market researcher NPD Group. The speakers turned out to be the best-selling category among iPod accessories, a fast-growing $5
billion market. The fact that Apple admitted licensing its iPod connector technology to Bose and, at first, offered the speakers exclusively in its own stores was a big vote of confidence from a
company not known for forging alliances. It also marked the first time Apple CEO Steve Jobs acknowledged an outside collaboration. Observers say the Apple connection strengthened Bose's already strong
image and reputation among consumes. "There's been an uptick in their image since the iPod has been connected to it," says Nick Shore, founder of branding consultancy Way Group in New York. "They feel
almost like the Mercedes Benz of sound systems."
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