GoPro Market Case Study On Market Segmentation

Question

Task:
Overview: The case study is titled “Targetting attractive market segments: GoProTM" Read and analyse the case and address the 3 questions at the end of the case. (Support your answers witn theory from the text, facts and explanation. You may also use information from other academic and industry sources to support your answers).

Details
The case study analysis should be presented in an essay format covering the answers to all the question at the ends of the case. The case analysis should also include an introduction and a conclusion. Students should submit the assignment through Turnitin by the due date. The assessment must be fully and accurately referenced or it will not be graded. Students should aim for a maximum of lO% to l5% Turnitin similarity index with direct quotE Size: 88.6 KB referenced with quotation marks, source and page number (please contact the instructor if if you need advice regarding Harvard referencing).

1. GoPro launched into the market with a niche segmentation strategy. How did it position its camera within this market?

2. There are various ways in which organisations can segment their target markets. Which market characteristics has GoPro focused upon to establish a strong brand following?

3. How did GoPro position itself against its key market competitors (i.e. Panasonic, Cannon, Nikon, Olympus)? Is this a sustainable strategy?

Answer

Introduction
The GoPro market case study will be discussing the concept of market segmentation which is becoming the most necessary task for the business developers in the present moment to reach the targeted customers in the most effective manner. The study will be exploring the ways in which GoPro has segmented their market and the manner it has benefited them. Furthermore, the study will even comprehend the strategies that the chosen business has selected to compete with the existing competitors in the market.

1. GoPro launched into the market with a niche segmentation strategy. How did it position its camera within this market?
From the GoPro market case study, it is understood that GoPro was specific while selecting their targeted customers. The chosen organization used the strategy of delivering HD quality camera within budget is the best strategy that helped them in creating competitive edge over the existing competitors in the same sector. The positioning of their product was between the range of $200 to $400 and this has attracted customers form all the available income groups. This allowed GoPro in engaging better number of customers into their business, which helped them in generating better profits within a short span. The given case study mentions that the first GoPro was sold in 2004 in an action-sports trade-show, which was held at San Diego. The company focused on the inbuilt quality of the products, which involves the higher quality of the camera and the battery that they are using for their products (S21.q4cdn.com, 2019). Similarly, the portability is another USP, which allowed them in positioning their product within their selected market in an easier manner.

As the business develops action and sport camera, their target is to bring their users in their story, which allows the users of GoPro in acquiring their products. The chosen business has placed their products within the market in the quadrant of high value with lowered price. This has allowed the customers in buying their products, which further helped the business in generating larger revenue. The strategy of developing itself from a camera manufacturing organization to social media hub that involves sport content has gained the eyes of athletes and sport sponsors. Furthermore, the business understood that, the business should to connect to their customers and other stakeholders at a personal level. This strategy allowed the targeted customers in creating content for the firm, which on the other hand has allowed the business in investing the money in developing better products.

The other versatile features that this company offers to their targeted customers helps the firm in creating better value to the users, which further supports them in creating the competitive edge over its competitors. The “self-reinforcing acquisition model” that is followed by the chosen organization helps in fueling the growth of the business (S21.q4cdn.com, 2019). Furthermore, the customer assistance that is provided by GoPro helped the business in creating goodwill among the customers, which helped them in positioning itself effectively. The firm tends to choose their target customers globally, irrespective of their geographical differences and irrespective of the economic strength of a country. This strategy has enables the organization in creating a larger customer base all around the globe. The USPs of the products makes them distinct from the other available sports and action cameras. The strategies that they develop with their content allow the business in practicing niche segmentation, which is dominant by nature. Their selection of narrow market and innovation of the products help the business in dominating their competitors.

2. There are various ways in which organizations can segment their target markets. Which market characteristics has GoPro market case study focused upon to establish a strong brand following?
Market segmentation of GoPro involves customers that are willing to pay more for a quality product. However, the prices of the products are not that premium as the products that are offered by its competitors. From the given case study, it is assessed that the advertisement strategy of using social media platforms has allowed the business in contacting a huge customer base worldwide (Ramanathan, Subramanian and Parrott, 2017). The strategy of content development for their advertisement by the users of their products allowed the business in receiving better content, which they used for their benefit. Additionally, platforms like, YouTube and Instagram has allowed many sports person in acquiring their products. Developed emotional content helped GoPro in connecting with the customers in a personal level, which further influenced the other targeted customers in experiences the high definition quality of pictures and videos.

The excitement that the business creates among the users of the products through various sponsorships, even create scope for the customers to be a part of their story, which further creates a bond between the firm and their consumers (S21.q4cdn.com., 2019). This on the other hand, helps the business in developing image of the brand. The case study even mentions that GoPro used the strategy of rewards for most viewed content on YouTube with $1000, which persuade the customers in developing better content for the business and with this strategy, the business has developed better advertisement content, which the business is using for their growth (Landau, 2014). This additionally this advertisement strategy has allowed the existing customers in knowing the quality of pictures that they can capture with the offered products and similarly attract the potential customers that are with the urge to buy the product in the near future.

Customer relationship is another market characteristic that this chosen firm has focused on. With the development of application of customer support, GoPro has helped the customers related to their issues, which further aided the business in building relationship with them, which further acted as a catalyst in accelerating their growth in the market. The case study reveals that by the year 2014, the company has more than 2180 000 subscribers in their official YouTube channel. Global presence was another market characteristic that the business selected to explore and with the support of various social media platform, the business achieved it easily. The business now plans to export their products all over the globe with the support of E-commerce websites and mobile applications (Gonçalves et al., 2016). This would make it easier for customer to avail the developed products from any corner of the world. The innovative product line of GoPro has allowed the customers in knowing their innovative abilities, which further allowed the business in positioning themselves as the highest selling HD cameras around the globe (The Verge, 2018).

3. How did GoPro position itself against its key market competitors (i.e. Panasonic, Cannon, Nikon, Olympus)? Is this a sustainable strategy?
Among the huge number of available competitors in the market, it becomes essential to offer the customers with innovative products, which will draw their attentions (Singh, 2019). This is one of the strategies used in GoPro market case study which allowed the company to make proper positioning of their product and its image in the market. GoPro with its high quality design and features has attracted many potential customers of other brands. The other competitors like, Canon, Nikon and Panasonic offers their customers with DSLRs and SLRs, while this firm offers its customers with action cameras that are more portable in nature and are even cost effective. The pricing of the products and the sustainability that the customers received out of their investment has ensured that they are far better than what the competitors are proposing.

The strategy of capturing high definition footage of surfing, which is mentioned in the case study, helped the business in attracting a huge number of customers within one financial year. This has allowed the organization in generating $350 000, which has boosted the firm in strengthening their R&D department, which in the long run created development of better innovative products. The strategy of innovation is only successful if the competitors are not offering the same products or better product to the customers and for that, it is becoming essential for the business to understand the need of the customers (Tidd and Bessant, 2018).This has created the goodwill of the business. In addition, the business has even developed editing software of their own, which created the scope for generation of extra income to the business (S21.q4cdn.com, 2019). On an addition, the business even makes proper management of their logistic suppliers, which allows them to deliver their potential customers with the right product at the right time and this helps the business in maintaining their delivery standards, which results in better customer management.

Conclusion
After the completion of the GoPro market case study, it is understood that the business chose the advertisement medium wisely. The use of social media platform has enabled the business in reaching a larger customer base within a short period of time. It is becoming essential for the business to look forwards for more innovation in their products, which can attract the eyes of investors globally. The used strategy of developing their video content was astonishing. The footages that they received every day enabled them in developing creative content, which influences the potential customers in buying their products. Furthermore, it can even be concluded that the strategies that they have applied for positioning their products can be driven away by the competitors only if they come up with more featured products. This is what the business needs to understand prior to their product innovation, which can help them to sustain their process in an easier manner even in the future.

Reference List
Gonçalves, R., Martins, J.L., Branco, F., Perez Cota, M. and Oliveira, M.A.Y., 2016. Increasing the reach of enterprises through electronic commerce: A focus group study aimed at the cases of Portugal and Spain. Available at: https://repositorio.inesctec.pt/bitstream/123456789/5734/1/P-00M-EF1.pdf

Landau, J, (2014). ‘GoPro’s viral video marketing campaign turns it into top YouTube brand in the world’, New York Daily Times, Tuesday 22 July, 2014, viewed at: www.nydailynews.com/news/national/gopromarketing-turns-top-youtube-brand-article-1.1875573

Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network operations and marketing to enhance customer satisfaction. GoPro market case study International Journal of Operations & Production Management, 37(1), pp.105-123.

S21.q4cdn.com. (2019). [online] Available at: https://s21.q4cdn.com/291350743/files/doc_financials/2014/GoPro_2014_Annual_Report.pdf [Accessed 23 Aug. 2019].

Singh, D.B., 2019. Small firms and strategic tools for competitive advantage. Small.

The Verge. (2018). The Hero 7 is GoPro’s shot at a comeback. [online] Available at: https://www.theverge.com/2018/9/20/17881210/gopro-hero-7-nick-woodman-interview [Accessed 23 Aug. 2019].

Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.