Action camera - WordPress.com · 2018. 1. 15. · GoPro Background and Timeline Competition...
Transcript of Action camera - WordPress.com · 2018. 1. 15. · GoPro Background and Timeline Competition...
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Action camera
Ge Yifan | Nguyen Quynh Thu
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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
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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
![Page 4: Action camera - WordPress.com · 2018. 1. 15. · GoPro Background and Timeline Competition Assessment Gopro’s Marketing ... Consumers accounted for 86%, professional uses 14% (Seitz,](https://reader034.fdocuments.us/reader034/viewer/2022052019/603329472dc09e2afc371e88/html5/thumbnails/4.jpg)
DefinitionAn action camera is a camera designed for
capturing and filming action, often in a
first-person viewpoint.
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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
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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
![Page 7: Action camera - WordPress.com · 2018. 1. 15. · GoPro Background and Timeline Competition Assessment Gopro’s Marketing ... Consumers accounted for 86%, professional uses 14% (Seitz,](https://reader034.fdocuments.us/reader034/viewer/2022052019/603329472dc09e2afc371e88/html5/thumbnails/7.jpg)
GoPro’s product portfolio
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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
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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
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GoPro’s quarterly revenue and net income
Recalling 2,500 drones
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GoPro’s high cost of inventory
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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
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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
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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)
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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
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Competitors - Product market structure
Brand
Product
Generic
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Founded in 1946.
Headquarter in Tokyo.
Valuation$7.7 bil.
Revenue 2017
$70 bil.
Top competitors:
Diversification
Wide price range for
action camera
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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
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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
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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
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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
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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
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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
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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
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Comparison
High price active
strategy
High quality products
with different features
Low price active
strategy Similar products
with some flaws
YI
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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
![Page 27: Action camera - WordPress.com · 2018. 1. 15. · GoPro Background and Timeline Competition Assessment Gopro’s Marketing ... Consumers accounted for 86%, professional uses 14% (Seitz,](https://reader034.fdocuments.us/reader034/viewer/2022052019/603329472dc09e2afc371e88/html5/thumbnails/27.jpg)
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."
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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
![Page 29: Action camera - WordPress.com · 2018. 1. 15. · GoPro Background and Timeline Competition Assessment Gopro’s Marketing ... Consumers accounted for 86%, professional uses 14% (Seitz,](https://reader034.fdocuments.us/reader034/viewer/2022052019/603329472dc09e2afc371e88/html5/thumbnails/29.jpg)
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.
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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