Devialets technologies transform the world of sound. (Devialet Press Release n.d.

2014,
p.8). This report is a retrospective analysis of the marketing strategy for the Devialet brand,
and the launch of the Devialet Phantom, a product line extension from an established niche
market product base.

Devialet is a France based high-end audio manufacturer known for its unique hi-fi
components that utilise proprietary technologies to create high performance amplifiers and
audio playback systems at the top-end of the market. Prior to the launch of the Phantom,
Devialet had secured a niche in the upper tier of home audio components with a range of
audio amplifiers that had an introductory model with a starting price of A$8,300 ranging up to
the premier release at A$39,000. The Devialet Phantom is a A$3,500 all in one music player
squarely aimed at a more mainstream but still high-end market, with an international growth
strategy focused predominantly on the U.S. and leading Asia Pacific markets of China and
Japan, which also include Australia. The Devialet company launch of the Phantom
presented an interesting case study for analysing marketing strategies across a broad range
of core marketing fundamentals.

The challenges for the company are: How does a small niche company launch a product line
extension into a more mainstream, and highly competitive international market? How can
Devialet provide a compelling value proposition when the competitions products are
significantly cheaper? How does the marketing strategy identify consumer profiles, market
segments and reach the target market? How does the marketing strategy support the
product differentiation in the market?

This report includes three marketing audits based on Kotler and Kellers (2016, p.700-703)
components of a marketing audit, focusing on: (1) A marketing environmental audit of
relevant local and international market conditions, (2) A marketing strategy audit identifying
Devialets goals and objectives, and the strategies engaged to reach these objectives, and
(3) A marketing function audit that identifies product, price and communications strategies,
and how these strategies support the company objectives.

Although the scope and material are largely based on the strategy to penetrate the U.S. and
leading Asia Pacific market, the strategies employed have been replicated in the Australian
market where the similarities for consumer profiling, market share, and brand strategy are
applicable. Other limitations are that Devialet remains a private company; however access to
financial and strategy data have not been difficult to attain. A wide range of sources from
online trade journals, market source data, and relevant academic papers have been
accessed and used to give context and relevance to the Devialet strategy. A positioning and
perception study was undertaken, (see Appendix Item 3), and a SWOT analysis ( See
Appendix4) to assist in determining the feasibility of Devialet meeting the company
objectives through their strategy.