Table of ContentAppendix 1.......................................................................................................................................................2

Bang & Olufsen removes chief executive......................................................................................................2

Appendix 2.......................................................................................................................................................4

Luxury brands suffer as rich guard their millions.........................................................................................4

Appendix 3.......................................................................................................................................................7

Stock Charts for B&O....................................................................................................................................7

Appendix 5.....................................................................................................................................................10

Identity prism – Kapferer............................................................................................................................10

Appendix 6.....................................................................................................................................................10

Appendix 7

Apendix 8

Appendix9

Appendix 10...................................................................................................................................................13

Sleek but no sale: Bang & Olufsen struggles with luxury niche..................................................................13

Appendix 11...................................................................................................................................................15

B&O product development 1967-2010......................................................................................................15

Appendic 12

Appendix 13...................................................................................................................................................18

Bang & Olufsen Unveils Its First Docking Station This Holiday....................................................................18

Appendix 14...................................................................................................................................................21

Still pictures from the movie......................................................................................................................21

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Appendix 1

Bang & Olufsen removes chief executiveo  

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Katie Allen and agencies guardian.co.uk, Thursday 10 January 2008 17.09 GMT

Photograph: Daniel Lynch/Newscast

The global economic slowdown claimed another victim today as Danish luxury TV and sound system maker Bang & Olufsen ousted its chief executive a day after a disappointing sales update hammered its shares.

Torben Sorensen was sacked with immediate effect following news of falling profits which wiped almost a third off the company's market value. Signalling that worried consumers may already be cutting back on luxuries against a backdrop of troubled financial markets and a housing slowdown, B&O's sales in the UK have been particularly hard hit.

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In the first half of the 2007/08 fiscal year, UK sales were down 6%, were flat in Germany and rose only 3% in Denmark. The company added that "the most recent month's disappointing trend in retail sales means that the group does not expect to maintain the same growth in the second half year."

Today the company followed up its sales numbers and downbeat outlook with a statement saying the board had decided to make management changes as a result.

It said directors were disappointed by B&O's turnover and profit downgrade despite rising sales for most of the past three-and-half years.

The 82-year-old company, which started out as a developer of mains receiver radios, now sells ultra-chic audio products around the world. Its mobile phones sell for more than £650 and high-definition flat-screen TVs for around £17,000.

Its disappointing sales numbers echo reports from the UK high street of consumers tightening their belts in recent weeks as they fret about a slowing economy.

Still, the knock to such luxury goods as Bang & Olufsen TVs and stereos contrasts with apparently strong sales at Regent Street high-end store Liberty.

The Aim-listed emporium said sales during the four weeks to Christmas eve were 5% higher than a year earlier, led particularly by menswear, the store's own luxury brand and the beauty department.

"Revenue during the post Christmas sales has been at a similar level to that achieved in the prior year period," it added.

Geoffroy de La Bourdonnaye, Liberty's chief executive, said: 'Given the current high street climate prior to Christmas, this performance reflects the attractiveness and relevance of a cutting-edge, design-led offer, together with a distinct upmarket setting and luxury service standard."

http://www.guardian.co.uk/business/2008/jan/10/retail?INTCMP=SRCH

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Appendix 2

Luxury brands suffer as rich guard their millionsSales of expensive goods are finally slowing as the credit crunch starts to have an impact on the lifestyles of the wealthy, writes Richard Wachman

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Richard Wachman The Observer, Sunday 31 August 2008

As I stared into the glitzy fashion and jewellery shops that line London's New Bond Street, one of the most expensive shopping districts in Europe, it slowly dawned on me that something didn't feel right. Then the penny dropped: here I was, in the middle of a weekday afternoon in the heart of the most fashionable, cosmopolitan city in the world, but it was eerily quiet.

A handful of Korean students glanced into shop windows belonging to Armani, Cartier, Louis Vuitton, De Beers and Asprey, but, in truth, they were looking for Hyde Park, not expensive presents to take home to Seoul. A few Brits were nonchalantly walking back to offices in the surrounding area, but they seemed distracted by other things.

And then something else struck me: if New Bond Street was quiet, then the inside of the shops would be almost empty. In some, there wasn't a customer in sight. True, it was still August and a lot of people were away, but was this normal? Or was the credit crunch finally taking its toll on even the super-rich?

Micky Provost, who has been at Armani for seven years, was in no doubt: 'Things have quietened down quite a lot actually. There is still a lot of custom from overseas visitors, especially from the Middle East and China, but not so many British, Europeans and Americans.'

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He says it is more than an August phenomenon. 'The slowdown has been gathering momentum all year. Twelve months ago this street was buzzing: people would come in and buy half a dozen suits; today one or two is enough. That said, last Saturday, someone came in and bought two £1,700 sheepskin coats in the space of a few minutes, so the market's a long way from dead.'

A few blocks away in an upmarket art shop, Opera Gallery, where paintings by impressionists sell for £2m-plus, manager Didier Viltart says: 'There is strong demand for classical work, but less so for contemporary art, which some investors view as more risky.' A sign of the times? 'Perhaps,' he concedes.

At Ledbury, a research agency that claims to understand 'how the wealthy live and spend their money', director Marc Cohen says 'the affluent are not immune from the credit crunch, by any means. They have invested heavily in property and the shares markets - and both have taken a knock in the last year, so they are bound to be feeling less well off'.

But Cohen says that the market is complex and that while billionaires, especially Asian and Middle Eastern ones, have cash to burn, many luxury goods companies are dependent on a 'broad belt' of money coming in from people in the developed world 'who have either inherited relatively moderate sums, or command good salaries and bonuses'. It is these people who are reining back, but the slack is being made up, in part, by increasing wealth in emerging markets.

Still, the mass luxury goods companies are presenting an uneven picture. At the turn of the year, London-listed Burberry warned that it could miss profits targets, and its shares were hammered. In April, Gucci said its Double G range, which covers handbags and watches, saw sales drop by more than 3 per cent. But a month ago, LVMH, whose stable includes Louis Vuitton, Dior and Veuve Clicquot, saw a healthy rise in both profits and sales. Its finance director, Jean-Jacques Guiony, said Japan remained difficult but that revenue elsewhere in Asia had jumped by 25 per cent. Italian jeweller and watchmaker Bulgari, on the other hand, issued a profits warning. On Friday Gucci and Hermes posted a strong set of new figures.

One explanation for the mixed reports is exchange rates. The weak dollar has depressed US sales of European luxury goods companies which report in euros, so the figures are hit on translation. That the numbers have held up as well as they have is due to two factors, according to Ledbury. First, the weak dollar is attracting wealthy foreign tourists to America with money to spend. Second, although the US is home to 30 per cent of the world's richest individuals, the average per capita spend on luxury goods in the US is far lower than in the UK, France and Japan.

Part of the problem has been lack of stores, rather than lack of demand. As a result, store roll-outs across America have been a key strategy for the luxury brands in recent years; and this expansion has cushioned them, to a greater or lesser degree, from the downturn.

Observers caution that it's as well to keep the luxury-goods sector in perspective. Don't forget, they say, that banks, retailers and housebuilders have seen their share prices collapse by 50-80 per cent since the credit crunch hit a year ago; in comparison, the luxury goods sector has held up remarkably well. UBS analyst Yasuhiro Yamaguchi suggests taking LVMH as the bellwether; its shares are down by only 20 per cent since July 2007 and that figure applies, roughly, to the sector as a whole.

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'Prospects for the companies turn on a variety of factors including exchange rates, exposure to emerging markets and their skill in promoting and marketing their brands.

'But some people are trading down and certain products seem to be more sensitive than others: apparel, for example, seems more vulnerable than jewellery,' says Yamaguchi.

Antoine Colonna, luxury goods analyst at Merrill Lynch, says brand strength is the key. 'A frequent theme highlighted by one or two of our competitors is the apparent transfer of spending - from handbags into what they present as the latest "it-product", shoes. We wish it were that simple. Star brands such as Gucci, Vuitton, Chanel or Prada will always outperform their peers in a difficult market in the handbag category, just like wannabe players will continue to underperform in the shoes category. It is definitely dangerous to use trading down as an investment criterion in our view.'

Like Cohen, he divides the wealthy into the super-rich, whose activities do not have a great impact on the profits of big luxury brands such as Armani and Cartier, and 'salaried people' who are more likely to feel the pinch. But Cohen makes the point that psychology can play a role in the spending habits of the extremely affluent. 'With the economic outlook so uncertain and lay-offs accelerating, some who could spend extravagantly are deferring their decision saying: "In times like these, I don't want to seem ostentatious, I'll wait till the credit crunch blows over." '

For analysts at the large broking houses, however, the big question is whether expanding demand for luxury goods in emerging markets will offset losses if the US and Europe fall into a prolonged recession. The answer is almost certainly 'no'. Emerging economies are already cooling in response to falling international demand. And as JP Morgan points out, developing countries account for only 18 per cent of all luxury good sales with China representing just 6 per cent. It's the same with luxury goods as with most other things: if America sneezes, the rest of the world catches a cold. How badly, though, is difficult to gauge.

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Appendix 3Stock Charts for B&O

Stock chart for Bang and Olufsen A/S from 4/5 2006 – 29/4 2011

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A closer look at B&O stock development over the past 6 months.

Both charts has been taken from Bloomberg Business week 29/4 2011. 1

1 http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=BO:DC

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Appendix 4

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Appendix 5

Identity prism – Kapferer

(Source: Kapferer 2008, p. 183)

Appendix 6

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The following figure shows the Brand Identity Planning model presented by David A. Aaker.

(Aaker 2002, p. 79)

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This model

2 http://www.zanthus.com/databank/strategy/images/strategic_brand_analysis.gif

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Appendix 10Sleek but no sale: Bang & Olufsen struggles with luxury niche

(AFP) – Jul 12, 2008

COPENHAGEN (AFP) — Despite a recent upswing for the luxury goods market, Bang & Olufsen, the Danish maker of sleek, high-end sound systems and televisions, is struggling to attract consumers as rivals increasingly focus on design at lower prices, analysts say.

Having carved out a niche in the market with cutting-edge esthetics and technology, B&O is facing rising competition from manufacturers such as Sony, Samsung and Philips who now put more emphasis on sophisticated design and technology at moderate prices.

"Even rich consumers are asking themselves why they should spend four times more for a B&O product when competitors are offering them equally sophisticated products, esthetically and sometimes even technologically," Bjoern Schwarz, chief analyst at Sydbank, told AFP.

He said that in the luxury goods and high-end market, B&O would "lose its raison d'etre" if it tried to compete with other manufacturers' lower prices.

The company, whose headquarters are based at the edge of a fjord in Struer in northwestern Denmark, on Monday announced its third profit-warning in six months.

Facing declining orders in western Europe, its main market which accounts for about 75 percent of its sales, B&O said revenue for the fiscal year ending May 31 would probably come to 4.1 billion kronor (550 million euros, 868 million dollars) instead of the 4.7-4.8 billion kroner previously forecast.

In the third quarter (December-February), its net profit was slashed four-fold and in January the chairman of the group was unceremoniously sacked following a set of bad earnings.

But even that move does not appear to have soothed the market's fears and apparent loss of faith in the group, established in 1925 with the goal of developing superior products.

Since January 1, 2007, the B&O share has tumbled almost 75 percent on the Copenhagen stock exchange.

This is not the first time the company has fallen on hard times. In 1990, and again in 2001, it struggled through thin years but recovered both times.

This time, "it will take awhile," Schwarz predicted.

"To survive, B&O has to develop new markets, like Russia, Asia and the Middle East where it is not very strong."

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Its western European markets, in particular Britain, Germany and Denmark which together account for more than a third of sales, are lagging, along with the United States and Canada.

Stephen Rammer, an analyst at Alm.Brand Henton, said B&O's annual growth of around five percent was "too weak."

"It invests too much in research and development -- 10 percent of its sales compared to four percent for its German rival Loewe -- but despite that, it doesn't come out with rapid launches of flagship products.

"B&O needs to come up with a less exclusive and less costly series in order to stop losing market share," he said.

Corporate business professor Per Hansen of the Copenhagen Business School agreed, saying the company needed to renew itself and focus more on consumer needs.

Despite the bleak outlook, the company's chairman of the board Joergen Worning insisted: "B&0 is not in crisis."

"How you can you talk about a crisis for a company that is earning money, that is one of the strongest brands in the world and that has a loyal clientele," he said in a recent interview in Danish daily Berlingske Tidende.

http://afp.google.com/article/ALeqM5g9hADh2f9YQ7dR0r4XAUXq71RKqg

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Appendix 11

B&O product development 1967-2010

Beovox 2500 cube, 1967, designed by Jacob Jensen3

Beomater 1200, 1969, designed by Jacob Jensen4

3 http://www.bang-olufsen.com/image-gallery?pid=451&descr=Beomaster+ 1200,+1969%3Cbr%3E Designed +by + Jacob+Jensen 4 http://www.bang-olufsen.com/image-gallery?pid=451&descr=Beomaster+ 1200,+1969%3Cbr%3EDesigned+by+ Jacob+Jensen

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Beogram 4000, 1972, designed by Jacob Jensen5

Beomaster 9000, 1986, designed by Jacob Jensen6

BeoCenter AV 9000, 19927

Beo4, 19948

5 http://www.bang-olufsen.com/image-gallery?pid=481&descr=Beogram+4000,+1972%3Cbr%3EDesigned+by+Jacob+Jensen6 http://www.bang-olufsen.com/image-gallery?pid=542&descr=Beocenter+9000,+1986%3Cbr%3EDesigned+by+ Jacob+Jensen7 http://www.bang-olufsen.com/image-gallery?pid=566&descr=BeoCenter+AV+9000,+19928 http://www.bang-olufsen.com/image-gallery?pid=564&descr=Beo4,+1994

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BeoVision 7, 20049

BeoSound 8, 201010

9 http://www.bang-olufsen.com/image-gallery?pid=551&descr=BeoVision+7,+2004

10 http://www.bang-olufsen.com/beosound8

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Appendix 13

Bang & Olufsen Unveils Its First Docking Station This Holiday Nov 10, 2010

Bang & Olufsen Unveils Its First Docking Station This Holiday 2010 Season

Providing a superior sound experience with convenient operation and a bold twodimensional design

PR Newswire

ARLINGTON HEIGHTS, Ill., Nov. 10, 2010

ARLINGTON HEIGHTS, Ill., Nov. 10, 2010 /PRNewswire/ -- Bang & Olufsen, theglobal provider of high end home theaters and custom multi-room music systems,announces the launch of its first ever iPod/iPad/iPhone docking station thisNovember 2010.  The BeoSound 8 defies industry standards as it features adistinct two dimensional design, bold form, and a superior sound quality dueto its custom-made conical speakers and high-performance amplifiers.  It isdirectly compatible with the iPad, without having to utilize any extra wiresor adapters, ensuring a clean, minimalist design.    

To view the multimedia assets associated with this release, please click:http://multivu.prnewswire.com/mnr/bang-olufsen/47220/

(Photo: http://photos.prnewswire.com/prnh/20101110/MM97698 )

(Photo: http://www.newscom.com/cgi-bin/prnh/20101110/MM97698 )

(Logo: http://photos.prnewswire.com/prnh/20060413/CGTU021LOGO-a )

(Logo: http://www.newscom.com/cgi-bin/prnh/20060413/CGTU021LOGO-a )

BeoSound 8's light and characteristic design makes it highly flexible in use. It is perfectly suited as a music system not only in a main room, but also inthe kitchen, on the patio or even at the summerhouse. BeoSound 8 can be placedon a wall bracket or any flat surface and still deliver fantastic premiumquality sound. Additionally, BeoSound 8 has a manual room adaptation switchwith 3 positions (i.e. mounted on the wall, placed in a corner or freestandingon a flat surface) which allows it to be placed anywhere without compromisingthe sound performance.  Furthermore, its sealed speaker cabinets, conicalshaped speaker units, and custom made digital amplifiers allow for animpressive sonic range from lower bass tones (38 Hz) - uncommon in smallerdocking stations - to higher frequencies (20,000 Hz).

"We are extremely happy and excited to introduce BeoSound 8 to our NorthAmerican customers this holiday season," states Zean Nielsen, President ofBang & Olufsen America, Inc. "We believe BeoSound 8 will resonate with many

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new and existing customers due to its many color options, versatile wall andtable mounting solutions, and unrivalled sound quality. Priced at only $999,it is not only priced competitively to other sound docks on the market, itsets a new standard for hi-fi sound from a sound dock."

Cool and simple to use

BeoSound 8 offers one-step operation and an intuitive functionality, as onecan simply dock the device on the top of BeoSound 8 or connect it using theAUX line-in or USB port(s). BeoSound 8 can be controlled on theiPod/iPhone/iPad from the BeoSound 8 bridge, by using the dedicated remotethat comes with the product or you can control it with one of Bang & Olufsen'sintelligent remote controls.

BeoSound 8 can also integrate into a home wifi network using the Apple AirportExpress, which allows one's music collection to be conveniently streamedwirelessly from any PC or Mac to BeoSound 8.*  

Additionally, Bang & Olufsen will launch a free BeoPlayer application thatwill offer access to Net Radio and an alarm clock functionality under onestreamlined Bang & Olufsen interface. An upgraded application will also bemade available for a $19.99 charge and will include over 10,000 internet radiostations, a comprehensive music library browser, and an alarm clock featurethat will offer the elegant chime from our BeoTime alarm clock. Thisapplication will be available for download from iTunes/Apple e-store byDecember 2010 and underscores Bang & Olufsen's dedication to providing theultimate customer experience.

Magical 2D design and Color Options

BeoSound 8 offers an unconventional form and is available in black and white,with up to 6 different grill colors for all music and design enthusiastsalike.  

The cone shaped speakers give BeoSound 8 a magical hovering 2D appearance asit hides the actual depth of the speakers and the feet lift it up giving alight and slim design. In addition, the speakers of BeoSound 8 are outlined byaluminium rings adding a distinct Bang & Olufsen look and feel. With BeoSound8, Bang & Olufsen has once again proven that it is leading the field ofinnovation and design.

BeoSound 8 will arrive in all North American Bang & Olufsen showrooms lateNovember 2010.  It retails for $999.00

* iPod, iPhone and iPad are trademarks of Apple Inc., registered in the U.S.and other countries.

*Airport Express connects to BeoSound 8 through a line input using a mini toRCA cable.

Bang & Olufsen was founded in Struer, Denmark, in 1925 by Peter Bang and SvendOlufsen, two innovative, young engineers devoted to high quality audioreproduction. Since then, the brand has become an icon of performance anddesign excellence through its long-standing craftsmanship tradition and thestrongest possible commitment to high-tech research and development.

Still at the forefront of domestic technology, Bang & Olufsen has extended itscomprehensive experience with integrated audio and video solutions for thehome to other areas such as the hospitality and automotive industries in

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recent years. Consequently, its current product range epitomizes seamlessmedia experiences in the home as well as in the car and on the move.

For more information on Bang & Olufsen, please visit www.bang-olufsen.com .

Images are available free of charge from the Bang & Olufsen media center :http://mediacenter.bang-olufsen.dk .

If you are a first-time visitor, please follow the instructions and registeras a new user.

http://www.bloomberg.com/apps/news?pid=21070001&sid=aYyN6qVZMMFE

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Appendix 14

Still pictures from the movie

0:01– Two light circles appears looking like a pair of headlights pointing directly at the viewer.

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0:04 – The light blinks and reveals parts of the background setting.

0:10 – The product is revealed.

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0:12 – Here it is possible to see the background setting showing people dancing connoting a party setting.

0:26 – The mode switches from a party to a calm sunset – in this connection the music follows and slows down and became calmer as well.

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0:28 – Close-up of one of its functionalities.

0:34 – the product is displayed at all times even though it sometimes only involves a small part of it – in this image a small part of one of the loudspeakers is visible in the bottom right corner.

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0:41 – the display of the iPhone switches and a second after the setting switches to an urban night-time setting.

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0:49 The setting has changed back to night – and the urban background appears

0:51 – demonstrating that it works with different kinds of Apples products – in this shot it is in connection with an Ipod

0:55 Demonstrating that it works with an Ipad.

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1:03 – demonstrating the possibility of changing the colours of the loudspeakers. In this case it has changed to purple but it has the __different kinds of colours.

1:06 Ending the same way it started.

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1:09 – the name of the product is revealed.

1:10 – Bang and Olufsen is presented.

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Appendix 15

Print screen taken from: http://www.beolounge.com/

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Appendix 16

Print screens from B&O facebook page – the images have been divided into two screen prints and have been cut to fit together. The full page can be seen by following the link below:

https://www.facebook.com/pages/Bang-Olufsen/7329581606?v=app_4949752878#!/pages/Bang-Olufsen/7329581606?v=app_4949752878#!/pages/Bang-Olufsen/7329581606?sk=wall

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