Post on 06-Oct-2020
Action camera
Ge Yifan | Nguyen Quynh Thu
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
DefinitionAn action camera is a camera designed for
capturing and filming action, often in a
first-person viewpoint.
Evolution of action camera
1960s, a skydiver
mounted a camera on his
helmet
1960s, NASA modified
cameras so that astronauts can
use them on moon
1987, Mark Schulze,
mounted a VHS camera on his
helmet connected with
a VCR using RCA cable
Modern lightweight,
compact, mountable
action cameras
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
GoPro’s product portfolio
GoPro’s background
Founded in 2002 in the
US, by Nicholas
Woodman
45,000 retail
locationsOver
26 mil. cameras
sold
2017$8.58
per share
2014$87per
share
Biggest market
share for action
camera
5 mil. subscribers
6,000 Gopro-tagged
videos on
everyday
GoPro’s timeline
2002Founded
2005HERO 35mm
2007Started Digital HEROs
2010Started
HD HEROs
Oct 2016StartedKARMA Drone
Nov 2016Recalling 2,500
drones - faulty electrical power
loss
2017Omni
virtual reality
GoPro’s quarterly revenue and net income
Recalling 2,500 drones
GoPro’s high cost of inventory
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
Size ● $3.2 billion in 2014 (Seitz, 2015)● Consumers accounted for 86%, professional uses 14% (Seitz, 2015)
Growth ● Steady growth until 2021 with CAGR of 15% (Technavio, 2017)● High growth in adventure tourism
Geography● North America is the dominant contributor: sport enthusiasts, technologically
advanced and latest products, high spending● Growth in Asia Pacific: increased spending on leisure and sports activities
Economy ● North America & Europe: high standards of living● Asia Pacific: increased disposable income
Socio-Culture● Growth in Adventure Tourism (seasonality)● Popularity of sharing pictures and videos in social media● China: Different sites for different content. Youtube is blocked. Bilibili is an alternative
Technology ● Smartphones with built-in excellent-quality cameras● Frequent technological breakthroughs
Action Camera Market Assessment
Action Camera Market Assessment
Opportunities Threats
● Expansion to professional use
● Frequent technological breakthroughs
● Asia Pacific market
● Smartphones with built-in
excellent-quality cameras
● Frequent technological breakthroughs
● Market saturation (competition, shelf life)
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
Competitors - Product market structure
Brand
Product
Generic
Founded in 1946.
Headquarter in Tokyo.
Valuation$7.7 bil.
Revenue 2017
$70 bil.
Top competitors:
Diversification
Wide price range for
action camera
Top competitors:
Founded in 2010. Based in Shenzhen
Low-priced action
cameras
Manufacturing & Selling
Action Cameras
Europe, North America, South America, Middle East, Southeast
Asia
Originally producing toys
and sports equipment
60+ countries
Top competitors assessment: GoPro vs. SONY, SJCAM
Strengths Weaknesses
● Strong presence in North America● Brand awareness ● Brand equity (quality, durability)
● Financial issues (high costs)
● Brand equity (quality, durability)● Brand awareness (wide product
portfolio)● Diversified portfolio (easier to
expand)
● Lower market share in action camera market
● Less visibility in the market
● Strategy matches Asia Pacific market ● Low brand awareness
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
High-end: HERO 5/ HERO 6
Special need: HERO 5 session
Low-end : HERO session
Quality focus
customers
Price sensitive
customers
Sports lovers
(cycling)
GoPro’s Strategy: Targeting multiple segments
GoPro’s Strategy: Positioning as an experiential product
“We’re not just a camera anymore. We’re an enjoyment platform for people around the world to watch.”
-Paul Crandell-Vice president of marketing
Capture and share your life
Quick stories, edit on phones, share on
Accessories for different situations
GoPro’s marketing strategy
Differentiat-ion strategy
Product
Online and offline, no self-owned retail stores
Distribution
High, medium and
low price
Price
Sponsoring events,
partnership with athletes and resorts, user generated
content
Promotion
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
Comparison
High price active
strategy
High quality products
with different features
Low price active
strategy Similar products
with some flaws
YI
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
GoPro’s strategy evaluation
Mass recall of Karma drones
Increase expenditure in R&D and marketing
Fiercer competition
Repositioning as an "end-to-end hardware and
software storytelling solution."
Agenda
Evolution of Action
Camera
Market Assessment
GoPro Background and Timeline
Competition Assessment
Gopro’sMarketing
Strategy for Action
Camera
Competitors’Marketing
Strategy for Action
Camera
Evaluation of GoPro’s strategy
Recommendations
Recommendations
Expansion to professional
use
Be the industry leader in product quality
More focus on Asia Pacific
market
Cut costs on inventory and
marketing (inventory
management, online sales)
Develop smartphone-camera.
Work with smartphone companies to integrate
GoPro’s camera into the phones, and have its name listed on the
phone, near the camera.
Key takeaways
● Quality is the key to GoPro’s success
● Expansion to new areas is needed due to tense competition and market saturation
○ Consider Asia Pacific for more focus
○ Consider smartphone-camera
○ Consider market for professional uses
● Cut costs by inventory management and online sales
Thank youQ&A