A study of Boat Lifestyle

on Consumer satisfaction
 Table of Contents

Serial Contents Page

No. No.
1 Introduction 6

2 Introduction to the topic 34

3 Research Methodology 35

4 Data Collection 36

5 Data Analysis and Interpretation 37

6 Findings 47

7 Suggestions 48

8 Limitations 49

9 Conclusion 50

10 Bibliography 51

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 Introduction
Boat - About

Boat is an Indian company that markets audio-focused electronic gadgets like wireless
speakers, earbuds (Airdopes), wired and wireless headphones and earphones, home audio
equipment, premium rugged cables, and a selection of other technological accessories.
Boat - Highlights
Music systems are not portable! Hence, as a matter of fact, we all want such devices that can
easily be carried with us while traveling. This is the idea that gave rise to headphones and
earphones as a portable alternative to the traditional music systems. These devices can easily
be carried from one place to another, thereby offering the same feel as the speakers and music
systems.

With the emergence of headphones, music lovers, listeners of music, and other professionals
can now listen to their favourite tracks, watch the movies of their choice, and talk with their
office colleagues, managers, and friends without disturbing others. Though the headphones
are being used for quite some time in India, just like they are used in any other part of the
world, only a handful of Indian manufacturers can be spotted. Boat is one of the leading
players among them, and the brand simply steals the show!
Boat has got an astonishing collection of earphones, earbuds, headphones, and wireless
speakers that stands apart due to the quality, affordability, and world-class designs that the
company offers. Founded in 2016, boAt is hailed as India's no. 1 earwear audio brand. The
company allows users to experience both spirit and energy at the same time.
Boat has been dubbed as the 5th largest wearables brand globally since December 2020.

Boat – Startup Story

The founders wanted to create a lifestyle brand, which would bring fashionable audio
products and accessories for the millennials. Boat is the brainchild of this idea. The company
began its journey as a cable manufacturer and seller, which had rapidly expanded its
categories to serve over 800,000 customers, as reported in 2020. Boat started as a
bootstrapped startup with a capital of around Rs 3000000 lacs that came from the founders.

Boat - Company Highlights

Company Name Boat

Headquarters New Delhi, India

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Company Name Boat

Sector Electronics and Fashion

Founders Sameer Mehta and Aman Gupta

Founded 2016

Funding $116.3 mn (December 2021)

Valuation $299.59 mn (INR 2200 Crore) as of April 2021

Revenue $206.07 mn (INR 1531 crores in FY21)

Website boat-lifestyle.com

Boat - Founders, Owners and Team

The founders of the Boat are Sameer Mehta and Aman Gupta.

Boat Founders - Sameer Mehta and Aman Gupta.

Sameer Mehta
Sameer Mehta is the co-founder and the CPO of Boat. He is also the Executive Director of
Kores presently. Sameer Mehta started his career at Redwood Interactive and was the owner
of the company. Mehta completed his schooling at St. Xavier School, Mumbai, and pursued
his bachelor's degree in Commerce from Narsee Monjee College of Commerce and
Economics. Sameer also co-founded Imagine Marketing Pvt. Ltd.
Aman Gupta
Aman Gupta is also the co-founder and the CMO of Boat. Born in 1982, Aman Gupta is 40
years old now. He pursued his bachelor's degree in Commerce from Delhi University after
which he joined The Institute of Chartered Accountants of India. Gupta also pursued an
MBA, in General Management and Marketing as an Exchange student at Kellogg School of
Management from Northwestern University and then went for an MBA, Finance, and
Strategy at the Indian School of Business. Starting as an Assistant Manager with Citi, Aman
became the CEO and Co-founder of Advanced Telemedia Pvt Ltd. He then joined as a Senior
Management Consultant at KPMG, Gupta then joined as a Sales Director at Harman

4
International. Aman Gupta ultimately co-founded boat in 2016 with Sameer. He also co-
founded Imagine Marketing India, which became the parent of Boat in 2014.
Boat's employee strength is somewhere between 200-500 employees.

Boat Ownership
The majority of the Boat stakes are held by Warburg Pincus, which boasts of holding 36.2%
of the company's shares. The boat co-founders Aman Gupta and Sameer Mehta come next in
line with 28.1% shares each. Then, comes Fireside Ventures with 3.7% of the shares,
followed by Qualcomm Ventures, which has 2.6% stakes. The remaining 1.3% of the Boat
stakes are held by Others.
Boat - Name, Tagline, and Logo
The tagline of the company is, 'plug into nirvana'. Nirvana means attaining complete peace
and freedom, which the company aims to extend to the audiophiles of the country and other
users.

Boat - Business and Revenue Model

The company focused on 3 important market strategies to create a good consumer base -
Consumer's Needs
Consumer's Desires

Consumer's Behaviour Pattern

The founders implemented their research on the products and made the products affordable,
durable, and fashionable. Boat focuses on building a customer-brand relationship where it
considers the buyers as a member of the Boat family. They also focused a lot on the brand
Boat and presented it as an Indian brand. For the marketing of the brand, boat decided to
appoint cricketers and other celebrities as the brand ambassadors of Boat because the Indians
are very fond of cricket and Bollywood films. All of these helped the company create a
considerable consumer base and become a billion dollar company in India with smart pricing
and attractive looks. Boat now claims of selling four products every passing minute.

5
Some other strategies that helped boat climb the ladder of success in the audio segment of the
Indian market are:
Keeping the customers first - Boat has decided to term its users "boatheads", thereby making
them a part of their clan instead of keeping them anonymous.
A range of improvisations - Boat is known for its innovations and improvisations. The
company carved out an indestructible cable for the Apple mobile users after discovering the
endless complaints of the Apple charging cables. As soon as it sensed the urgency of sports
and fall-proof headphones, boat immediately moved out to build them, which are now
available in a variety of colors.
Posing as a lifestyle brand - Boat marked them as a lifestyle brand rather than calling them as
a consumer electronics brand.
An ever-expanding catalog of products - Boat products are ever-increasing. From cables to
chargers to audio products, boat is simply bringing new products powered by innovative
technologies and awesome designs.
Targeting their customers - The youth and millennials are the target customers of the brand
and the company is making sure to impress them at any cost. This is the way the company is
speedily steering forth.
Digital marketing - The company has distinctively stayed away from the traditional
media, thereby choosing the digital way for marketing. Social media platforms like
Facebook and others have solely become the pillars of success for Boat.
The revenues of Boat mainly come through the sale of its products and their
delivery charges.

Boat - Funding and Investors

Boat has raised a total amount of $116.3 million in funding over 6 funding rounds.

Date Transaction Name Money Raised Lead Investor

April 16, 2021 Series B $6.68 million Qualcomm Ventures

January 5, 2021 Series B $100 million Warburg Pincus

September 1, 2020 Debt Financing $3.34 million InnoVen Capital

July 26, 2019 Debt Financing $2.13 million InnoVen Capital

July 17, 2019 Debt Financing $2.67 million Navi Technologies

May 3, 2018 Venture Round $802K Fireside Ventures

Boat is eyeing IPO early next year. The company is currently looking to raise up to $500 Mn
(Rs 3500 crores) at a valuation of $1.4 bn and then list itself between March and June 2022.

6
Boat becomes the first Indian D2C brand to file for a Rs 2,000 crore-IPO, which plans to file
its DRHP with SEBI in the last week of January 2022, as per the reports dated January 18,
2022. According to the sources close to the company, Boat is looking to have a fresh issue of
shares and an offer for sale, both of which would be worth Rs 1,000 crore each.

Boat - Growth and Revenue

The company retails at Croma outlets and in Myntra, Amazon, Jabong, and Flipkart. Quality
performance of the Boat products has helped the company a lot in achieving the growth it has
witnessed over the years.
Here's a quick glance at some growth milestones of Boat:
Boat has gathered 800,000+ customers within a short span of 4 years
It claims to add one boathead to its family within every 3 minutes that pass
The company sells 4 units every minute and over 6,000 units each day
Boat audio was declared as the leading brand in the earwear category with 27.3% of the
market shares
The business has been profitable for 5+ years straight
Boat has its products in 5,000+ retail stores and is supported by more than 20 distributors
BoaT posted a 2X growth in its revenues, which grew from Rs 704 crore in FY20 to Rs
1,531 crore in FY21. The revenue from operations of boat was recorded at Rs. 1511.7 crore
in FY21 while its other income recorded a revenue of Rs 19.57 crore. The EBIDTA of boat
was reported to be Rs 127.1 crore during FY21.
If we break up boat revenues, we would find that the company:
Earned Rs 947.35 crore from the sale of earphones and headphones
Mopped up Rs 297.40 crore from the sale of wireless speakers
Earned Rs 94.92 crore from the sale of wired earphones and headphones
It further obtained revenues close to Rs 172.03 crore from the sale of other accessories
including cables, chargers, and more
Boat increased its profits by 61% to Rs 78.6 crore in FY21 from Rs 48.85 crore, which is
witnessed in FY20. However, boat's expenditure ballooned 122%. It was last recorded at Rs
637.5 crore in FY20, which increased to Rs 1,420 crore in FY21.

Boat - Startup Challenges

Boat started as a bootstrapped company in the initial years with a funding of around Rs 3 lacs
from the founders and had to struggle initially for raising funds. Apart from this, the company
faces numerous challenges day in and day out when it comes to manufacturing trendy
products at affordable rates and bringing them to the market that is already packed with
equally able competitors.

7
Boat - Acquisitions
Boat has acquired 2 companies - Tagg and Cove IoT. The latter is a recent acquisition made
by Boat on January 15, 2022. The acquisition of the Singapore-based smart wearables IoT
(internet-of-things) product development startup will help Boat enhance the development of
its wearables with the help of KaHa Pte Ltd's (Cove IoT) innovative concepts and design.
Boat was set to acquire Delhi-based consumer electronics brand, Tagg Digital, according to
the latest reports. Though the talks regarding the same were going on for around two months,
recently the contours of the deal have been finalized. Furthermore, it has also been confirmed
as part of the deal that the co-founders of the company and the Tagg Digital team would be
joining boat after the completion of the deal. The brand finally acquired Tagg on June 9,
2021.

Acquiree Name Date Price

Cove IoT January 15, 2022 -

TAGG June 9, 2021 -

Boat - Awards and recognitions

Boat was awarded and recognized on numerous occasions by a list of organizations, here's a
look at some of the most prominent awards and recognition of the brand:
The company was declared as the "number 1 brand for truly wireless and earwear in India in
2020"
It was noted as the "5th largest wearable brand in the world in 2020"
Boat boasts of being the official audio partner for 6 Indian Premier League (IPL) teams in
2021
It has partnered with a wide range of celebrities and cricketers from Hardik Pandya to Diljit
Dosanjh and Jacqueline Fernandez.

Boat - Competitors
The top competitors of the Boat are Gonoise, Mivi and Skullcandy.
Gonoise
Gonoise is the biggest rival of Boat. It is headquartered at Gurgaon, Haryana, India and was
founded in 2014. Gonoise competes in the electronic equipment industry.
Mivi
Mivi is one of the biggest rivals of Boat. It is headquartered in Telangana, Andhra Pradesh,
India and was founded in 2015. Mivi also operates in the electronic equipment industry.
Skullcandy

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Skullcandy is also one of the top competitors of Boat. It is headquartered in Park City, Utah
and was founded in 2003. Skullcandy also works in the electronics industry.

Boat - Future Plans

The company believes that there is always a trend of buying earphones along with the new
smartphones. Boat finds this concept to be a channel of success for them. According to the
reports, the major phone makers are in the process of stitching new relations with audio
companies. For example - Samsung has got JBL and Harman, Apple has Beats, and so on.
These manufacturers are attracting consumers with hot deals so that the users don't buy
earphones or headphones separately.
'That is where the market is moving', says Aman Gupta.

Products and brands

Boat designs and markets a variety of audio-focused consumer electronics, including
wireless earbuds, wired headphones, wireless speakers, home audio equipment, smart
watches, and an assortment of mobile phone accessories.
Wireless earbuds
BoAt distributes a line of wireless earbuds under the brand name Airdopes. As of mid-2020,
the manufacturers suggested retail price (MSRP) for Boat's Airdopes line ranges from
₹3,999 (approx. $53) to ₹6,999 (~$92).

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Airdopes 431 wireless earbuds
Like competing brands and models of wireless earbuds, BoAt's Airdopes line
features Bluetooth connectivity, which enables truly wireless use, as well as carrying cases
that include built-in batteries to charge the wireless earbuds when not in use.
Wireless earbuds Tethered
BoAt distributes a line of teathered wireless earbuds under its Rockerz and BoAt brands. As
of mid-2020, the undiscounted MSRP of BoAt's tethered wireless earbud offerings range
from ₹2,990 ($39) to ₹4,990 ($66).

Rockerz 261 tethered wireless earbuds

Like truly wireless earbuds, tethered earbuds do not connect directly to an audio source (like
the audio-out port on a mobile phone, computer, or stereo). However, tethered wireless
earbuds are connected to one another via a wire, or are connected to a band which houses the
batteries, controls, and onboard processors which drive the speakers in the earbuds.
Depending on the model, the connecting wire or band is worn behind the head or around the
neck of the wearer, as if it was a lanyard.
Wireless headphones

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BoAt also distributes a line of wireless headphones in both on-ear and over-ear form factors.
Its headphones are marketed under the company's BoAt, Rockerz, and Nirvana brands and
undiscounted prices range betwen ₹2,990 (~$39) and ₹7,990 (~$105) depending on the
model and its features.

Nirvana 715 ANC, which feature active noise cancellation

Like other wireless headphones, BoAt's devices do not connect to an audio source via wire or
cable. Its devices feature Bluetooth connectivity to play audio from the audio source (such as
a mobile phone, computer, or stereo system). In wireless playback mode over Bluetooth,
BoAt's headphones draw power from lithium ion batteries which are integrated into the
headphones.
Many of BoAt's wireless headphones come with an auxiliary audio cable that can plug into
standard headphone jacks (or other audio jacks using adapters, which aren't included). On
many models, connecting headphones to an audio source using the auxiliary audio cable does
not draw down battery charge.
Wired headphones and earbuds
BoAt distributes a range of wired headphones and earbuds under the company's BassHeads
brand. The undiscounted MSRP for BassHeads-branded wired headphones is around ₹2,490
(~$33). The undiscounted MSRP for wired earbuds ranges from ₹799 (~$10.50) to ₹1,490
($20) in mid-2020.

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BassHeads 102
Like with most wired headphones and earbuds, BoAt's devices connect to a standard
headphone jack on mobile devices, computers, stereo systems, and other audio-outputting
devices. BoAt's devices draw power from the audio source into which they're plugged in and
do not require power from a dedicated amplifier. The company's over-ear and on-ear
headphones, as well as its in-ear earbuds offer a degree of passive noise cancellation by
partially occluding the wearer's ear canals from external sound.

Smart watches
BoAt offers a line of smart watches that offer a variety of fitness modes, health monitoring
features, and call, text, and social media notifications.
Portable wireless speakers
BoAt sells a range of portable wireless speakers under its Stone and Rugby brand names. Its
speakers wirelessly connect to an audio source using Bluetooth and are powered by built-in

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batteries. As of mid-2020, devices are priced between ₹2,490 (~$33) and ₹12,999
MSRP ($171), without discounts, depending on the model and features.

Stone 1401
BoAt's wireless speakers come in a range of sizes and form factors designed for different use
cases. Its smaller, lower-powered devices are priced lower than its larger wireless speaker
options, which feature louder sound output, longer battery life, and varying degrees of
ruggedization in their designs.
Home audio equipment
BoAt distributes home audio equipment under its Aavante brand. The company's home audio
offerings primarily consist of sound bars and subwoofers for use with televisions and other
home theater equipment. As of mid-2020, BoAt's home audio offerings are priced between
₹9,900 (~$130) and ₹24,990 (~$329), without discounts.
BoAt's home audio equipment features multiple input modes, including Bluetooth, USB-A,
and auxiliary audio cable. Certain models are Bluetooth-only.
Mobile accessories
The company distributes BoAt-branded mobile device accessories such as USB cables
(including USB-a to Lightning, USB-A to Micro USB, USB-C to Lightning, and USB-A to
USB-C connections) and auxiliary audio cables.
It also sells a range of portable external batteries under the brand Energyshroom. These
batteries can be used to charge a mobile device when there is no access to a power outlet.

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 Competitors
A Delhi-based firm has managed to break the Chinese monopoly in India’s personal audio
equipment space—by leveraging China’s manufacturing prowess.
boAt, a six-year-old firm that sells headphones, earbuds, and speakers, held a 37% share of
the personal audio products segment in India in 2020, according to data from market
intelligence firm Kalagato. Chinese brand realme was a very distant second at 8%.
And in the first three months of 2021, three of the top five audio wearable models sold in
India were boAt’s, according to Hong Kong-based Counterpoint Research.
Though international brands like Bose Corporation, Sony Corporation, and Bang & Olufsen
continue to dominate the premium headphone segment, the affordable category is key in
India, given the price-sensitive nature of consumers. In fact, before boAT was launched in
2015, there were very few branded headphone options for Indians in the low-cost segment. In
2019, boAt was selling a speaker every four minutes.
“Before boAt came along, it was difficult to find quality headphones between the price of
Rs600 to Rs2000 ($8 to $27),” Kalagato said. “They built a great product in this niche and
established a strong brand using an e-commerce led sales model.”
Besides their technical understanding, the duo has relied on a star-studded marketing strategy
to make boAt very popular very quickly.
In 2020, the brand was endorsed on social media by Bollywood actors Kartik Aaryan, Kiara
Advani, and Diljit Dosanjh. Beyond Bollywood, the brand also on-boarded several micro-
influencers in India’s music, dance, and sporting communities, and tapped into the country’s
cricket obsession, becoming the audio partner for six teams in the Indian Premier League
(IPL) and hiring cricketer Shreyas Iyer as a brand ambassador.
The company’s marketing has included some out-of-the-box thinking. For instance, in
February 2020, boAt launched a new line of headphones and speakers at the Lakmé Fashion
Week. Eight months later, the company partnered with fashion designer Masaba Gupta to
released speakers with vibrant patterns.
“Lakmé Fashion Week is the Mecca of fashion in India and as a lifestyle brand it became an
ideal platform for us to partner and showcase our authority when it comes to stylish consumer
electronic products,” boAt co-founder Aman Gupta told BWDisrupt, a platform for young
entrepreneurs.
This marketing strategy resulted in big gains for the company. As of November 2020, boAt
had two million customers and was selling 14,000-15,000 units daily.
Besides marketing, the company has also managed to attract investments that could help
expand its presence further.
At the start of this year, boAT raised $100 million from leading New York-based private
equity firm Warburg Pincus—a huge step up from its last $900,000 fundraising round led by
Fireside Ventures in 2018.

14
“Presumably that capital will go into doubling down on brand building, geographic
expansion, and extending their product portfolio,” Kalagato noted. The company is
expanding into newer product categories, including more affordable audio accessories
and even smartwatches.
In February, boAt appointed Vivek Gambhir, a former Godrej Consumer Products
executive, as its CEO.
The company is targetting a revenue of Rs1,000 crore ($137 million) by fiscal 2024 (April-
March), as compared to Rs500 crore ($69 million) it clocked in fiscal 2019.
There’s much reason for Indians to celebrate boAt’s success, after all, the company is doing
what many Indian brands failed to succeed at. But there’s a catch.
boAt made in China
The brand is Indian, but its products, not so much.
boAt’s products are made through contract manufacturing in China, which is a reason why
they are so affordable.
Amid a rising anti-China sentiment in India—which hasn’t really translated to any change
in consumer behaviour—boAt has said it is looking to move a majority of its manufacturing
to India. Especially since the government has chalked out a Production Linked Incentive
(PLI) scheme for wearables.
“That will bring in the whole ecosystem, and once the ecosystem is here, then it should
get easier for everyone,” Mehta told Moneycontrol in January. “The whole world is
looking to reduce risks related to China. So, a company of our size needs to look for
diversification.”

Boat makes moves to shift manufacturing from China to India

Image Marketing, the parent company of India's top earwear brand Boat, and contract
electronics manufacturer Dixon Technologies (India) are coming together through a 50:50
joint venture to manufacture Bluetooth-enabled audio devices here.
Boat, which hitherto had got majority of its manufacturing done from China, is now shifting
that to India in a phased manner. The new JV announced today is an important step in that
direction. The new company will churn out products from Dixon's manufacturing facility at
Noida, Delhi.

Boat is hoping to make the most out of the government's proposed product linked incentive
(PLI) scheme for wearable makers.

15
40% of Boat's products to be made in India by 2024
Boat had recently got a $100 million investment from US-based private equity major
Warburg Pincus. At that time time itself, company sources had revealed that it would use the
money to move its manufacturing from China to India.

As of now, around 10% of Boat's products are manufactured in India. The remaining 90% is
churned out in China and Vietnam, with the latter contributing a measly 1%.

Boat's target is to manufacture close to 40% of its production volume in the home market by
2024. In a few years, it is expected that India and Vietnam will manufacture around 50% of
Boat’s products, while China will handle the remaining 50%.

Boat to focus on new IoT-enabled wearables

A joint statement from Boat and Dixon said that the JV would undertake design and
manufacturing of wireless audio solutions in India and will co-invest in the Indian mobile
accessory market. The two companies will have will have two board of directors each in the
new company.

It should be said that Dixon has already been manufacturing wearables for Boat since the
previous fiscal year. The new JV takes that relationship to the next level. This
partnership will help Boat to scale up its manufacturing in India rapidly.

Imagine Marketing had recently announced the acquisition of Singapore-based KaHa Pte, an
end-to-end smart IoT product development company. Through the takeover, Boat is
expected to make next-generation IoT enabled wearable products.

Founded in 1993, Dixon Technologies designs and manufactures consumer durables, home
appliances, lighting, mobile phones, security devices, set-top boxes, wearables and medical
equipment for other brands.

boAt’s income crossed Rs 704 cr in FY20 with 460%

growth in profits

Consumer electronics brand boAt had a stellar run during the fiscal ended March 2020,
becoming the joint fifth-largest seller of wearable electronics riding on the wave of its
popular series of wireless headsets and speakers, as per market intelligence and research firm
IDC.

The stupendous growth of boAt was also reflected in its income that crossed the Rs 704 crore
mark during FY20, its regulatory filing shows. The five-year-old brand managed to almost
triple its earnings from sales to Rs 700.44 crore in FY20 from Rs 239.4 crore in FY19.

The Mumbai based company earned another Rs 3.4 crore through financial instruments
during FY20.

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With most smartphone manufacturers deciding to do away with the 3.5 mm jack, sale of
wireless earphones and headphones accounted for the largest chunk of its sales. boAt sold
wireless headsets worth Rs 375.7 crore in FY20, making up 53.6% of its total sales.

Sale of wired earphones and Bluetooth speakers made up 18.8% and 16.1% of sales
respectively.

Other electronic accessories including smartwatches, cables, data banks and chargers
accounted for the rest 11.5% of its collections during the last fiscal.

Purchase of merchandise from manufacturers made up 78% of its expenses amounting to Rs

500.2 crore in FY20. The amount spent surged 2.5X from Rs 202.03 crore in FY1.

While most of its stock was sourced from China up until FY20, the company is working
towards localising its production in India. It raised $100 million last month from PE major
Warnus Pincus to fund the transition and has already announced a partnership with Indian
manufacturer Dixon to produce a line of wireless speakers.

During FY20, the company reduced its employee benefit costs by 53% to Rs 6.3 crore from
Rs 13.46 crore paid in FY20 and paid an additional Rs 2.43 crore to contract labour in the last
fiscal.

On the other hand, boAt spent heavily on its sales and distribution channels across India,
paying Rs 60.74 crore for the same in FY20. These costs went up by 500% from FY19 when
it had spent Rs 10.2 crore on selling and distribution expenses.

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Along with the rise in sales, expenses incurred to provide warranty on its products also shot
up. boAt paid Rs 27.3 crore in FY20 for honouring warranty, surging 5.6X from Rs 4.88
crore spent on the same during FY19.

The company also gave discounts costing it Rs 1.8 crore in FY20. Unlike traditional
companies, boAt doesn’t have its own service centres and works with third-party vendors.

Advertising and promotional expenses grew by 3.4X to nearly Rs 51 crore in FY20 as the
company deployed celebrity-centred advertisements during the last fiscal.

Further, boAt spent Rs 12.52 crore in FY20 on freight and transportation expenses, a jump
of 4.4X from FY19 as the number of orders processed also shot up.

Another Rs 1.23 crore were paid for rentals, pushing the total expenses to Rs 637.6 crore
in FY20, growing 2.8X from expenses of Rs 228.35 crore in FY19.

boAt spent Rs 0.91 to earn a single rupee of operating revenue in FY20 and its EBITDA
margins improved by 471 BPS to 10.71 during the same period.

As a result of ballooning sales and improved operational margins, boAt registered an

impressive 460% growth in profit during the last fiscal, generating a profit of Rs 48.85 crore
in FY20 as compared to a profit of Rs 8.73 crore in FY19.

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The numbers above show how good the going has been for boAt in FY20. A 5.6X jump in
profit with three-fold growth in operating revenue sets it apart from startups of its age. Unlike
aggregation and asset-light models, D2C brands across niche segments appear scalable with
sound unit economics.

Fashion apparel brand Bewakoof, cosmetic brands Nykaa, Sugar Cosmetics, Purple
and MamaEarth have posted superb growth with improvement in their unit economics. With
the Make in India sentiment at an all-time high, boAt appears set to grow its top line and
profits in FY21 as well.

boAt revenue crosses Rs 1,500 Cr in FY21; spent only Rs

14 Cr on salaries

in FY21, its annual financial statement with the MCA shows. Consumer electronic startup
boAt has been one of the leading sellers of wearables and audio accessories in India for the
last couple of years. The company, which is also planning to launch its initial public offering
at a valuation of over $1.4 billion, has been profitable and crossed Rs 1,500 crore revenue
mark in FY21.

boAt registered a 2.2X surge in operating revenues which grew from Rs 700.44 crore in
FY20 to Rs 1,511.7 crore

boAt sold earphones and headphones worth Rs 1,120 Cr in FY21

Wireless earphones and headphones formed the largest product line in terms of sales,
accounting for 62.7% of its operating revenue during FY21. These sales grew by 2.5X to Rs
947.4 crore in FY21 from Rs 375.7 crore in FY20

The sale of boAt’s wireless speakers grew the

most during the last fiscal—up 2.6X from Rs
113.2 crore in FY20 to Rs 297.4 crore during FY21. At nearly 20%, the wireless speaker
product line was the second largest contributor to the company’s revenue in the last
fiscal year.

Comparatively, the year-on-year growth of wired earphones and other related accessories
(including cables and chargers) was relatively timid, growing 30.4% and 19.3% respectively,
during FY21.

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boAt imports goods worth Rs 1,316 Cr in FY21, mostly from China

The Mumbai-headquartered firm designs its products in India while its manufacturing and
assembling take place in China. The expense of procuring its stock in trade is the single
largest cost incurred by the company, accounting for nearly 73% of the annual expenditure.

These expenses grew 2.3X from Rs 452.5 crore in FY20 to Rs 1,034.03 crore in FY21. The
cost of freight and distribution made up 8.1% of the annual costs and grew by 57.6% YoY to
Rs 115.53 crore during FY21.

boAt outsources its warranty claim and after-sale services to third party contractors and its
warranty claim related expenses grew by 93% to Rs 52.7 crore in FY21 from Rs 27.3
crore spent in FY20.

Plans to move production to India, leverage GOI’s PLI Scheme

The company had raised $100 million in a round led by Warburg Pincus at the start of Q4
FY21 with plans of shifting its manufacturing to India. The consumer electronics brand is
looking to tap into the Indian government’s production linked incentive(PLI) scheme.

The seven-year-old brand focuses on marketing its products heavily online and its advertising
promotion cost was the second largest cost centre for the company, accounting for 10.3%
of boAt’s annual expenses. These costs nearly tripled to Rs 147 crore during FY21 from Rs
51 crore in FY20.

Perks of lean team with mean margins, profits up 61% in FY21

With major operation functions such as production and after-sales outsourced, boAt operates
with a lean team of employees with staff expenses accounting for a mere 1% of its annual
costs. Employee benefit expenses grew by 125.7% YoY to Rs 14.31 crore (including director
remuneration of around Rs 2 crore).

The Qualcomm-backed company also had a stock buyback during the fiscal ending in March
2021 which amounted to Rs 140 crore. Both co-founders Aman Gupta and Sameer Mehta

20
were the biggest beneficiaries of this event, pocketing a little over 81% (i.e. Rs 113.6 crore or
Rs 56.8 crore each) of the buyback amount.

Overall, the company’s total annual expenditure grew 2.2X from Rs 637.6 crore in FY20
to Rs 1,420.1 crore during FY21. On a unit level, boAt spent Rs 0.94 to earn a single rupee
of revenue during FY21.

Profitable since inception, the wearable brand’s annual profits surged nearly 61% to Rs 78.6
crore during FY21 from Rs 48.8 crore during FY20. However, its EBITDA margins actually
dropped by 237 BPS to 8.34% during FY21 from the margin of 10.71% in FY20.

boAt has demonstrated a robust financial performance in FY21 and became the first
consumer electronic direct to consumer (D2C) startup to cross the Rs 1,500 crore revenue
mark. Despite the pandemic, the company has been able to scale at a rapid clip with a 61%
increase in its profit. Unlike most growth and late-stage companies, boAt has achieved this
revenue at very little expense on employee’s salaries and other benefits — Rs 14.31 crore.

21
Boat Marketing Strategy

How boAt is Ruling the World of Sound

boAt is a leading consumer electronics brand founded by Sameer Mehta and Aman Gupta.
With keeping in mind these three goals, the brand to bring: affordable, durable and
fashionable audio products and accessories to the millennials.
These two understood the need and the gap in the Indian market and decided to find a
solution to the problem in an effective way. They found that consumers in the Indian market
needed long-lasting and tangle-free earphones which were of good quality as well as
affordable. boAt is one of the leading brands in the earwear category in India. Let's look at
marketing strategies employed by boAt.

BoAt - You are now plugged into Nirvana

boAt was founded by Sameer Mehta and Aman Gupta. Sameer Mehta owns Redwood
Interactive, which computer gaming peripherals under the brand RedGear. Aman Gupta,
being the CMO who was fascinated by electronics and gadgets, has also worked at JBL for
two years. He has completed his MBA (Masters in Business) from the Indian School of
Business (ISB).
boAt began its journey with being a cable manufacturer and now it has leveraged its brand
into also selling men's grooming products, too. boAt has a wide range of product categories
which includes speakers, wireless earphones, earphones, smartwatches, home audio devices,
mobile accessories, and more.
boAt is creating a strong position in the market from being the homegrown product
established since 2016. boAt has become a well-known brand now. It is globally the fifth
largest wearable brand and India's number one earwear brand.
The brand has headquarters in Delhi India and offices across Delhi and Mumbai. The size of
the company is now 201-500. Falls under the Industry of manufacturing computers and
electronics. Competitor's of boAt include JBL, Realme, OnePlus, Noise, and Mivi.

22
Marketing Strategy of BoAt

Influencer marketing
boAt left no stone left unturned regarding influencing people with influencer marketing.
boAt has not struck the deal only with influencers but also with celebrity endorsements,
cricketers, content creators, and even, stylists.

Celebs like Jacqueline Fernandes, Kartik Aryan, Kiara Advani, as well as content creators
like Prajakta Koli, Harsh Beniwal, and Bhuvan Bam are on board to promote the products of
boAt.

Musicians like Harry Sandhu, Neha Kakkar and Diljit Dosanjh also endorse their products.

Apart from that cricketers like Shikhar Dhawan, Hardik Pandya, KL Rahul and Shreyas Iyer
have long been endorsing their products.

Digital Marketing
Digital marketing is a big player in the marketing strategy of the company. All the marketing
strategies employed by boAt are listed below:
Mobile marketing
Using this multichannel online marketing technique. boAt reaches out to its consumers
through its mobile application, emails, and SMS marketing.

Email marketing
boAt sends personalized messages to its existing and potential customers who agree to share
their email to receive updates from them. They send quirky, catchy, and crisp emails.
Whether it is updating the audience about a new product, offers and discounts, or
communicating their message across.
Social media marketing (SMM)

boAt sails swiftly navigating the digital realm and is an expert at social media marketing. The
company has a presence on Instagram, Facebook, Twitter, YouTube, and LinkedIn.

23
Hashtag Marketing with Unique hashtags
-#whatfloatsyourboat

-#boatheads

-#trebelwithboat

-#levelupwithboat
-#raisethebar

These are just some of the hashtags that have made the rounds on social media platforms.
Making the audience chime in on the conversation.
Digital campaigns have helped connect the right type of content with the right people in real-
time.

Moment marketing and Collaborations

IPL

This is a big shot for boAt. Their exclusive collections include earbuds. Made available in all
different colours and for the teams of the IPL cricket team. The company seized the moment
to grab the attention of cricket fans and persuade them to get the product fit for their
favourite teams.

24
The Marvel collection

The most recent collection was launched by them or for the Marvel fanbase. Collections for
characters like Iron man, Captain America and Black Panther. Which features a special
collection of earbuds, headphones, and speakers for Marvel fans.

Independence day

They seized the perfect moment to announce the launch of the following products which are
Bassheads 100, Bassheads 152 and Rockerz 255 Pro starting from 27th January 2021. To
fulfil the vision of 'make in India' and manufacture other mobile accessories as well in the
country itself. Focusing on the mission of Atma Nirbhar Bharat.

The Masaba collection

When the web series Masaba Masaba was rolling out, they were quick to grab the opportunity
and release an exclusive collection. This included their signature sound with the vibrant style
of Masaba Gupta. Also integrating the theme of fashion from the web series.

25
Experiential marketing

boAt gives an experience to the people that they can't forget through concerts. Engaging the
audiences in two-way communication, the most common elements found in all these
partnerships, concerts, and tours were photo booths, nirvana zones. All where the audience
was encouraged to participate. The brand shared the stories of their audiences on their official
page on Instagram, making an emotional connection and building a loyal fan base. Through
which they generated buzz and gained media coverage.

The takeover tour - 2020

Concerts are with musicians like AP Dillon, with the takeover tour. It has so far completed 5
chapters in different cities around India including Mumbai, Chandigarh, Goa, Gurugram,
and Hyderabad.
The sunburn festival in Goa - 2019
Tyga, Yellow Claw, DJ Snake, and Wiz Khalifa were some artists performing at the festival.
boAt has also collaborated with T-Series, the Lakme Fashion Week show, Dolby, teams
from IPL like Kings XI Punjab, Delhi Capitals and Brut, which is surprising and odd, given
the aim to transcend beyond music.

Community-based marketing with the #Amboathead

Engaging the community on social media platforms like Instagram and sharing the pictures
clicked by them for their boAt products on their stories is a great way of building a sense of
community; it also has its own hashtag, #Amboathead

26
They also have giveaways for their products and contests to keep the audience in the
conversation. The hashtag #IAmboAthead has more than 500 posts. The brand is surely
building its own tribe. Not only this, the brand has established its own lingo for the
community from A-Z to give the clan a sense of belongingness and being a part of it.
Leveraging the brand using Consumer Insights
The brand started with the category of sound devices which includes wireless earbuds,
Wireless Headphones, wired headphones, wireless speakers. Now the brand is expanding its
empire, aiming at men's personal grooming - misfit, audio wear for fierce women and girls -
with TRebel. Which sounds like a fashion item as well, and the most recently launched
collections of smartwatches.

The brand has now launched a smartwatch, trimmers and continues to innovate its products
by launching many limited edition collections. The brand is not what it is today without
funding.
Navi technologies, Fireside Ventures Warburg Pincus investing a hundred million, InnoVen
Capital invested 16 crores in 2019, Sachin Bansal's BAC acquisitions also pledged 20 crores.
boAt is now the fifth-largest wearable brand globally and the most recent news on funding
involves Qualcomm investing in boAt.

Personalized marketing
boAt sends out targeted emails, makes short videos that resonate with the consumers and
interacts with their customers on their social media platforms consistently, which increases
the consumer's satisfaction and loyalty towards the brand. They keep track of consumers
behaviour, purchasing habits, preferences, email open rates, and more tactics.

Print and offline marketing

Though digital plays a substantial role in the marketing strategy of boAt. Using print
mediums is not dead for them. Print ads for different newspapers are still used by boAt and
also up with retailing with distributors like Croma. But now the paradigm is shifting towards
business to consumers.

27
Targeting the Right Audience
Affordable yet with great product quality that enhances the user experience, listens to the
feedback from their customers. They are also tech disruptors. Constant innovation of products
and understanding their audiences is a great advantage that boAt has. It has something for
everyone from millennials, the misfits, Gen-Z, skaters to gamers.

Meme Marketing - Keeping it relevant with memes and language

Having a very deep understanding of its audience, boat has tagged its products to the internet
language of lifestyle choices like sports, travel, WFH (work from home) and fashion.

Portrayal as a lifestyle product

Right from the start, boat as a brand has been portrayed as a lifestyle brand. In fact, so much
so that the word "lifestyle" is followed on their website. And not as a brand that manufactures
computers and electronics that which it really is. So as to occupy the space in the consumer's
mindset that the products of boat are something that we use daily and also that makes a
fashion statement. The models at the Lakme Fashion Week walked on the ramp wearing boat
products when boat collaborated with them.

28
Covid-19 Marketing Strategy of BoAt
The following changes were seen in the marketing strategy of the brand during the pandemic:

Fixing the core of SEO:

The brand focused on SEO to stand out from the clutter, using this tactic for better reach in
the digital space.
Giving value to the consumer:

They not only focus on the brand but also what the consumers look for in a product. For. e.g.,
There is always some quality that the consumer is looking for while using a product to satisfy
their need or want. boat makes it a priority to identify that.

Data and research:

Keeping a close eye on customer feedback and tracking repetitive patterns, if any, were
found to evaluate the overall effectiveness of their products.
Using YouTube:

They created short videos on YouTube with display ads that were short, crisp, and on point.
Which also included video sequencing with display ads.
Fulfilling the promise of the product:
Their products deliver the value that the consumer is looking for.

Data-oriented approach:
Building personas of their target audience and narrowing it down to every trait helps them
know who exactly they are targeting
Storytelling:

Showing the brand as part of the story gets their audience emotionally invested and feel like
a part of their growing tribe.
Keeping a check on KPIs:
Keeping the brand alive in the consumer's mind and retaining them. And leveraging the brand
and using consumer insights.

29
Storytelling through social media campaigns:

Illustrations have been made and shared on Instagram stories under the name boAt
adventures to charm and get the attention of comic lovers and the audience.
In a video from the most recent campaign you always do what floats your boat run by the
name and hashtag do what makes your boat float.

The most recent one that is derived from the idiom, do what floats your boat caters to the
gen-z the most and is getting a niche audience of its own to integrate the product with
the culture and lives of skaters, street artists, and more.
Another campaign features Kiana Advani, Bani J, Raja Kumari and other strong women with
an upbeat music video with the title "I am a rebel" The range of TRebel has a direct link to
the campaign.

30
 INTRODUCTION TO THE
TOPIC

 The goal for every company should be to make its customers satisfied.

 Satisfied customers will come again and might stay as customers for a longer
period of time.

 It is important for the company to actually care and appreciate the customer.

 It is clear that if the company can make the customer satisfied the customer will
come back again and the customers might also tell to some of their friends about the
good service they got.

 So through satisfied customers it is possible to save in marketing expenses.

 I have also worked in the service profession and have noticed that it is very
important to keep the customers happy.

 Today’s customers will quite easily comment if they are not satisfied.

 As all of us know it is much nicer to deal with a satisfied person than with
dissatisfied one.

31
 Research Methodology
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. Abraham Kaplan
defines research methodology in this way. Research methodology is "the description,
explanation & Justification of various methods of conducting research"

Research design
A research design is a step-by-step approach used by a researcher to conduct a scientific
study. It includes various methods and techniques to conduct research so that a research
problem can be handled efficiently. A researcher has a series of questions that he needs to
find answers by conducting research. Type of this research is descriptive in nature

Descriptive Research
Descriptive research is defined as a research method that describes the characteristics of the
population or phenomenon studied. This methodology focuses more on the “what” of the
research subject than the “why” of the research subject. The descriptive research method
primarily focuses on describing the nature of a demographic segment, without focusing on
“why” a particular phenomenon occurs. In other words, it “describes” the subject of the
research, without covering “why” it happens.

Sampling Design
The following factors have been decided within the scope of sample design:
Universal Study – The study was conducted to find out the difference of
costumer behaviour. The population for this research is students, user of boat
product.
Sample Size – Study has been conducted in Lucknow area. The sample size is 50
respondents.
Sample Unit – This research consisted of various individuals who are the costumer of Boat
Lifestyle.
Sample Technique – Convenient sampling technique has been used.

32
 Objectives of Research

 Research is an organised investigation of a problem where an

investigator attempts to gain solution to a problem.

 To identify how costumer satisfaction are influencing business practices.

 To investigate the satisfaction of costumers in this dynamic environment.

 To discuss the implications of costumer expectations and

make recommendations to government and business.

 Objectives of research is a concrete statement describing what the research

is trying to achieve.

33
 Data Collection

Primary Data - Primary data is the data that is collected for the first time through
personal experiences or evidence, particularly for research. It is also described as raw data or
first-hand information. The mode of assembling the information is costly, as the analysis is
done by an agency or an external organisation, and needs human resources and investment.
The investigator supervises and controls the data collection process directly.
The data is mostly collected through observations, physical testing, mailed questionnaires,
surveys, personal interviews, telephonic interviews, case studies, and focus groups, etc.
The primary data was collected by using a questionnaire.

Secondary Data - Secondary data is a second-hand data that is already collected

and recorded by some researchers for their purpose, and not for the current research problem.
It is accessible in the form of data collected from different sources such as government
publications, censuses, internal records of the organization , books, journal articles, websites
and reports, etc.
This method of gathering data is affordable, readily available, and saves cost and time.
However, the one disadvantage is that the information assembled is for some other purpose
and may not meet the present research purpose not be accurate or may be accurate.
The secondary data was collected from internet/websites.

34
 Data Analysis And
Interpretation

1. Age

Options Respondents Percentage

18-25 years 40 80%
Above 25 10 20%
Total 50 100%

Ag

20

18-25
Years

80

35
2. Gender

Options Respondent Percentage

Male 35 70%
Female 15 30%
Others 00 00%
Total 50 100%

Gende
r

30

male

femal

70 other

36
 3. Which product of Boat you are using ?

Option Respondent Percentage

Watch 10 20%
Earphones 23 46%
Speakers 12 24%
Mobile Accessaries 5 10%
Total 50 100%

3. Which product of Boat you are

10
20

watc
24
earphone
s

mobile
46

37
 4. Which product you feel comfortable as compare to other brand ?

Options Respondents Percentage

Watch 8 16%
Earphones 20 40%
Speakers 16 32%
Mobile Accessaries 6 12%
Total 50 100%

4. Which product you feel comfortable

as

12 16

watch

earphone
32
speaker

40 mobile

38
 5. How much you find Boat products durable ?

Options Respondents Percentage

Very durable 10 20%
Durable 16 32%
Average 13 26%
Non durable 11 22%
Total 50 100%

5. How much you find Boat products

22 20

very
durable

durable

26 32 non

39
 6. Which product is more durable as compare to other brand ?

Options Respondents Percentage

Watch 6 12%
Earphone 24 48%
Speakers 16 32%
Mobile accessaries 4 8%
Total 50 100%

6. Which product is more durable as compare

to other brand ?

8 12

watc

32 earphone
s

48 mobile

40
 7. Which brand you find competing with Boat ?

Options Respondents Percentage

Go noise 14 28%
Realme 16 32%
Xiomi 15 30%
Boult audio 5 10%
Total 50 100%

7. Which brand you find competing with Boat

?

10

28
go

realme
30
xiomi

boult

32

41
 8. How did you know about Boat ?

Options Respondents Percentage

Through influencers 21 42%
Through friends 19 38%
Through digital marketing 10 20%
Total 50 100%

8. How did you know about Boat ?

20

42
influencers

friends

digital

38

42
 9. How much you are satisfied with customer service of Boat ?

Options Respondents Percentage

Very satisfied 15 30%
Satisfied 20 40%
Average 10 20%
Unsatisfied 5 10%
Total 50 100%

9. How much you are satisfied with customer

service of Boat ?

10%

30%
very
satisfied
20%
satisfied

average

unsatisfie

40%

43
 10. Are you looking forward to by another product of Boat ?

Options Respondents Percentage

Yes 31 62%
No 19 38%
Total 50 100%

10. Are you looking forward to by

another

38
ye

62 no

44
 FINDINGS
1. The survey shows that 80% of customers are from age 18 to 25 years old and
20% customers are above 25 years old.
2. The survey shows 70% of boat customers are males and 30% are females.
3. Through this analysis I have seen that 20% of customers are using watches, 46%
customers are using headphones, 24% are using speakers, and the rest 10%
customers are using mobile accessaries.
4. With the help of this survey I analyse that people think 16% of boat watches are
more comfortable as compare to other brand, 40% of earphones are more
comfortable than other brand, 32% of speakers and remaining 12% of mobile
accessaries are comfortable as compare to other brand.
5. In durability, 20% of customers says that boat product are very durable, 32% of
customer says that they are durable, 26% votes for average and 22% of consumer
says undurable to them.
6. By this analysis I found that 48% of earphones, 32% of speakers, 12% of watches
and 8% of mobile accessaries of boat lifestyle are more durable in comparison of
other brands.
7. Through this research I came to know that 28% of product of GoNoise, 32% of
products of Realme, 30% products of Xiomi and 10% products of Boult audio are
the competing brands of Boat Lifestyle.
8. According to this survey it shows that 42% of consumers know about boat
through influencers, 38% of users know this brand through their friends and 20%
through digital marketing.
9. The consumer service of boat lifestyle shows that 30% of users are very satisfied,
40% are only satisfied, 20% users says it average and according to rest of 10%
they are unsatisfied.
10. With the help of this survey I came to know that 62% of people are looking forward
to buy another boat products and on other hand 38% are not looking forward to buy
it products.

45
 SUGGESTION

1. Boat has to focus on the bass quality of their earphones and speakers.
2. They have to work more on the connectivity and bluetooth version of their products.
3. They can also have a look on their product prices according to their competitors.
4. Boat lifestyle can shift their manufacturing unit to India from China as to make
the products fully Indian.
5. Company has increase their product durability as the not very durable as compare
to other brands.

46
 LIMITATIONS

1. The study is limited only to the certain area in Lucknow.

2. The study was taken only from the customer point of view.
3. The findings were drawn only on the basis of information provided by
the respondents.

47
 CONCLUSION

The study provides insight about the various dimensions associate with customer
satisfaction. Customer prefers boat because of quality and the message to promote new
technology and unique item for comfort of young generation. It can be very effective
way of promotion and this leads to attract huge customers and to capture large market.
On the basis of findings of the study it can be concluded that boat products has gained
customers satisfaction due to their market strategy, quality and variety of products.

48
 BIBLIOGRAPHY

Websites:
https://startuptalky.com/boat-success-story/
https://golden.com/wiki/BoAt_(company)-9MR3
https://qz.com/india/1997153/indias-boat-beats-chinas-realme-and-oneplus-in-
headphone-sales/
https://startuptalky.com/boat-marketing-strategy/
https://www.techradar.com/in/news/boat-makes-moves-to-shift-manufacturing-
from- china-to-india
https://entrackr.com/2021/02/boats-income-crossed-rs-704-cr-in-fy20-with-460-growth-
in-profits/
https://entrackr.com/2022/01/boat-revenue-crosses-rs-1500-cr-in-fy21-spent-only-rs-
14- cr-on-salaries/

49