Home > Latest News > Opinion: Why Jabra Failed Despite Having A Quality Audio Range, Poor Management Played A Role

Opinion: Why Jabra Failed Despite Having A Quality Audio Range, Poor Management Played A Role

Jabra’s decision to exit the consumer market is more about poor business decisions, and a lack of true consumer marketing, while Panthers player Jarome Luai was spruiking JBL’s buds and PartyBox speakers, and a variety of celebrities spruiked beats, Jabra was sitting back trying to work out pack designs with little if any investment in creating an aurora around their brand despite their product being up there with the best.

Marketing was a cost centre, for the Danish brand and as share and profits evaporated management were torn between the B2b market and consumer that was burning up revenue.

Even their exit from the consumer market smacked of poor timing.

Immediately after introducing an upgraded versions of its Elite 10 and Elite 8 Active earbuds yesterday, Jabra suddenly sprang on the market the news that they were exiting the consumer market.

It was as if it was a case of bugger the impact, on their earlier product announcement the board had decided they were getting out of the consumer market with no regard to the impact it would have on the brand across all of the markets they compete in.

In Australia Jabra CEO David Piggott, has gone through a multitude of marketing managers whose role in the past is to juggle limited budgets between B2B and consumer with the business primarily working on a model that was based on throwing money at retailers instead of personalities, sponsorship, or high-profile consumer marketing.

The Company admits says it’s departing the consumer earbuds market entirely because they cannot generate a fair return on investment compared to the many other opportunities they have in the hearing market.

Global GN CEO Peter Karlstromer claimed. “I am very grateful to our retail partners, who have supported us on the Elite and Talk product lines, as well as to the consumers who made us a part of their lives.”

The business wants to increase focus and resources on more attractive parts of its business, citing the rising costs of competition.

What’s not known yet is how many people are set to be retrenched following the shock exit.

The departure for their Talk range of products is not surprising, it was a dated-looking lineup of over-the-ear mono Bluetooth headphones, with consumers buying their Jabra’s Elite range of wireless earbuds which were launched back in 2016 because the Talk range was seen as ‘old fashioned’.

Last year the business tried and failed to make an impact in the premium audio market, with their Elite product, with local management failing to understand that it’s not just about having a premium product, you also have to convince consumers you are a premium brand and that the product is premium and that processed needs experienced marketers which Jabra failed to invest in and a consumer marketing.

Banging out press releases to select media and the giving away of product to influencers has not worked for Jabra and now they are paying the price.

Sell in to retailers is one thing, sell out is where the battle starts and the demise of a high-quality headphone brand like Jabra is down to a Company who penny pinches and lacked marketing expertise.

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