was introduced by Nick Woodman in 2002 with the intension of capturing life
moments of enthusiasm in surfing which has now expanded internationally over
100 countries used by millions in capturing real-time moments and sharing them.
Vision – We dream. We have passionate
ideas about what’s possible in this world. Our passions lead us to create
experiences and realities that expand our world and inspire those around us.
Nicholas Woodman – GoPro CEO and Founder
Mission – Enabling you to share your
life through incredible photos and videos by capturing, creating and sharing
the world’s most GoPro perspective with versatile cameras.
Task 1 – Differentiation strategy adopted by GoPro
in becoming a global phenomenon in the consumer electronic category
Differentiation Strategy is the way a product is
differentiated in the eyes of the customers. It involves the approaches a
company aims to develop its’ product in a unique way to gain sustainable competitive
advantage among other competitors. This will involve structure, features,
durability, and user friendliness, functionality and etc.
Porter’s generic theory defines how a firm could gain
competitive advantage through the chosen market. According to Porter’s generic
strategies there are two types of competitive advantages a firm can possess
which is Low cost base and differentiation. (Hill, July 1988) GoPro adopts differentiation strategy
which is aimed at wide market to develop unique features of products that is
known throughout its industry as unique.
When considering the nature of differentiation, GoPro can be
differentiated as tangible and intangible. Tangible characteristics such as small
in size (easy to carry), Water proof, complimentary services such as software
to work with, Bluetooth, video quality, GPS and quality, 3D feature and etc are
provided. Intangible characteristics such as extreme lifestyle, sense of belonging
to adventurous and professional community.
GoPro positions the product with uniqueness and is sold for
premium prices. The influence that differentiation has on demand depends on the
ability of the company to differentiate the product, the competitive nature of
the product market environment and loyalty of customer to the products of other
competitive companies. (Hill, July 1988)
According to GoPro, their motive is to help consumers
capture real-time life experiences and share the experience. (GoPro, 2017) The reason why the
GoPro is becoming a global phenomenon in the consumer electronic category is
because it is differentiated in a way that the other electronic companies
cannot compete with. GoPro provides the necessities to provide consumers with
many features that is given through cameras and phones to overall make the
experience better. For example, GoPro Hero5 has features such as below.
Even though the product
is sold at a premium price, the GoPro provides the uniqueness that other
electronics aren’t providing through product augmentation, Product perception
and product performance.
Differentiation isn’t restricted in providing customers what
they expect. Consumer expectations could be increased by adding features that
they haven’t thought about and this is product augmentation. GoPro provides
technical support, after sales services such as warranty, money back guarantee,
24 hour chat supporters and etc. GoPro also differentiates through product
perception through its product benefits given in figure 2, and with the
aspiration of capturing real-time life experiences and sharing. GoPro is well
known for its quality, performance (GoPro, 2017),
durability where the GoPro provides money back guarantee without
hesitation. GoPro further improves its’
product performance. For example – Launching a GoPro Channel on Xbox Live which
the consumer can watch the latest GoPro videos, and experience life. (Microsoft, 2017)
Differentiation is a
sustainable strategy in earning profits from GoPro, due to the uniqueness of
the product it results brand loyal consumers. This will also be an entry
barrier to new firms because in order to compete with GoPro, they will have to
establish distinctive features that can differentiate the product in comparison
to GoPro. According to Ritika Tanwar (Tanwar, 2013) it suggests that a differentiation strategy
is expected gain higher profits than the low cost strategy because
differentiation creates better barriers in entering the market. This is
obtaining Profit through quality. Differentiation mostly involves in
maintaining market share. Considering the GoPro, differentiation strategy
serves better in becoming a recognized brand in the global market.
Task 2 – Marketing mix adopted by GoPro in
establishing the brand
Marketing mix is related putting the right product at the
right time, and at the right price. According to the marketing concept,
initially the target market is identified and the marketing is directed to the
selected market chosen. Then the consumer needs are taken to consideration
which then coordinating the effort to meet consumer requirements. In order to
do this, the firm has to exactly know the marketing plan. STP which is
Segmenting, Targeting and Positioning is three step process used to build a
targeted marketing plan. In Segmenting, the list of potential markets is listed.
Their specifications are analyzed and described. For example – Families to use
on daily activity recordings, Travelers constantly changing locations and etc. Under
Targeting the above segments are evaluated and considering above GoPro would
fit into the segment of travelers. Finally through positioning the best
positioning is chosen for the selected segment. If the product appeals to more
than the target group, it means the strategy and method is wrong.
Marketing mix is the set of strategic marketing tools
involving that combined together to
facilitate the given target market. The
successful combination of marketing mix creates more value to the products with
a lower cost to provide to consumers. Thus, creates competitive advantage among
other companies, match with consumer needs causing customer satisfaction, brand
loyalty which will lead to higher long-term profits and increase of market
shares, will increase brand reputation and staff motivation as well.
When GoPro is taken into consideration, marketing has large
impact in the success of the company. The 4P analysis can be done as below.
Considering the Product,
the characteristics of the product or the brand are taken to consideration.
Before the GoPro was introduced still cameras, and mobile phones for video and
GPS was available but for activities like skydiving, water rafting and etc. the
mobile phones and still cameras were not sufficient. Nick Woodman then decided
to build something which eventually developed in to the GoPro to capture real
time scenarios. Product decisions should be made using market research
obtaining consumer feedbacks (through blogs, tweets and etc) and modifying and
adding features to the products. GoPro mainly produces cameras but it also produces
other related accessories such SD cards, spare batteries, drones, grips and
The Price of
products depends on the type and quality of camera. For example – The qualities
and features of the GoPro HERO5 Black, GoPro HERO4, GoPro HERO5 Session differ.
Therefore the prices vary from Hero 3 White Edition which the cheapest at
£199.99 to the most expensive is being Hero 3+ Black Edition at £359.99. (GoPro, 2017)
The Places that
distributes the GoPro are mostly online. It is important to make sure that the
website is easily accessible, if it is user friendly and attractive and a quick
step process for purchase. GoPros are also available at easy access stores at
electronic stores such as Walmart, Best buy. A store locator is also available
at GoPro for convenience. (GoPro, 2017) Thus, the distribution of the product used by
GoPro could either be selective or exclusive distribution. For the GoPro selective distribution is more
suitable as the product is having a certain brand imagine but is not as
exclusive to be under exclusive distribution like Rolex, Mercedes and etc.
Selective distribution means the products are sold in limited number of outlets
in a given area in order to maintain the image of the product.
are taken to consideration, GoPro provides seasonal promotions mainly published
on the website. When it comes to promotions, promotions mix is used. It
includes Advertising, Sales promotions, Personal selling, Public relations and
direct marketing. . The objective of the above is to inform, persuade and
remind the consumers. This is done through the AIDA model by companies where
they demand the attention of customers, get their interest, create desire and
ask for action. (Priyanka, 2013)
But when it comes to GoPro it is exceptional, because the marketing
is majorly done through customers where they themselves promote the GoPro on
social media such as Facebook, Instagram, twitter and YouTube by tagging GoPro
when posting videos.
Due to the unique characteristics of the GoPro the company
does not necessarily need work on the AIDA model but the consumer (current
users of GoPro) does it for the company creating need for new consumers to try
the GoPro and experience. Apart from that also if registered to the website updates
may be sent through email to keep the consumer updated on the any added
features, new products available and etc.
All the above 4P factors taken to consideration show how
GoPro uses the marketing mix to establish its brand. Task
3 – Company’s global distribution challenges in penetrating Asian markets
Distribution is the process of making a product or a service
available for the consumers who needs. There are three major approaches for the
same. They are Indirect distribution, direct distribution and collaborative
distribution. GoPro being a company that is internationally recognized needs to
be distributed globally, and when entering into Asia market there are different
aspects that need to be looked into because the distribution structures, the
legal and political aspects are different in passing the goods from the producer
to the consumer. Also the channel structures become advanced with the
development of the countries economically and politically. (Delaney,
Considering the GoPro entering into the Asian market various
challenges are faced. In Asian market, China and India are the largest and
populated countries. The potential of consumer usage of the GoPro is higher.
Entering into the China market is time consuming as the law approval may even
take months. According to Business insider (Business Insider, 2018) it is needed to have
a separate administrative team to handle the legal work in China to
successfully carryout a business. Thus, Legal framework, Tariffs, Taxes,
Exporting regulations, duty and etc are applicable.
Further the culture, language barriers are challenges for
the same as not all consumers are fluent in English. In china it is said to be
difficult to find a person who knows Chinese and English language to have a
business negotiation. Therefore it would be necessary to have a person with
international aspects to bridge the cultural differences of the Chinese and
western culture. Thus, it would be costly. (Business Insider, 2018)
In dealing with the Legal aspects Collaborative distribution
of joint venture method can be taken to consideration. This is a legal bound
agreement between two or more entities to carry out a certain project. Through
this it has the benefit of having a local partner’s knowledge on the political,
legal systems, language and culture and the countries business system. It is
possible to then share the market and development costs. But in doing so, there
are risks involved. Because having a joint venture is to give certain amount of
control to the partners. Therefore it could lead to conflicts in controlling
the firm based on their ideas.
Indirect is the selling of product being passed on to the
consumer through additional steps via distributors or retailers. The second
most used channels by GoPro are through retailers such as Walmart, BestBuy,
Target and etc. When entering into the Asian market use of indirect gives the
ability for the GoPro enter to a wider market and establish the brand. They
could also share the expenses in marketing as the intermediary is also
involved. But on the other hand it has issues as the market being large and the
control of the GoPro company to it’s product will be lessened. The GoPro will
have to face conflicts in managing the support cost and pricing margins. Apart from
that it’ll also create the less brand loyalty to customers when selling through
a retailer as GoPro would be another one of many other similar products. It may
reduce the brand image of the GoPro.
Thus considering the distribution methods of Direct, Indirect
and collaborative the best method of entry to the Asian market would be to use
direct distribution. Direct distribution is when the producer sells the product
directly to the consumer without any intermediaries. According to (GoPro, 2017), Currently based on
USA market 1.2 Million consumers approach online for purchase which is
distributed directly. Thereby, considering China and India as potential
consumers. The GoPro can mostly sell online where the company can save the
middlemen expenses and commissions and moreover the shipping cost directly to
the customers would be less costly and can be informed to bear by customer
himself. By having direct communication, better customer relationship and
support can be provided with the best knowledge from the experts himself. The
brand loyalty would be better as it would be a two way communication and direct
feedback can be obtained.
Also the company itself can have few subsidiary outlets in
the Asia most potential companies (China and India) Even though having legal
framework and documentation process delays, the GoPro is able to build direct
relationships and confidentiality and trust with consumers which will benefit
in the long term creating brand loyalty.
Task 4 – Recommendations of appropriate strategies
Gopro can adopt to face future challenges from cheaper alternative brands
entering the market
GoPro is a well-known company for producing number action
cameras that can capture real-time
life experiences and give the ability to consumer to share the experiences.
Costing around $200 the product is unique and recognized globally and used by
many to collect memories of day today experiences, travelling and etc.
Considering the demand and use of the product there will be different companies
replicating the same. For example – China may produce similar product to serve
the same purpose for a cheaper price.
Therefore, there will be challenges faced by Gopro. When
there are cheaper alternatives the consumer base will divide and result in a
reduction of customer base. Thus, the revenue of the company will reduce. When
other companies produce similar products, the demand of the brand will be
reduced. This will result in increase of consumer bargaining power where
current consumers of GoPro may bargain as cheaper alternatives are available in
the market. Therefore, with the development of technology it is important for
the GoPro to gain competitive advantages to overcome the challenges. (Porter, 1979)
SWOT analysis can be used by the company to initially
analyze the strengths, weaknesses, Opportunities and Threats. By understanding
the strength the GoPro could enhance the same strengths. For example – GoPro 5
Session has 2-mic processing in Advanced Wind Noise Reduction. The company
could make it better by giving a 3-mic processing. (GoPro, 2017). Similarly by
identifying the weaknesses GoPro can be produced better. According the (All star Video Sports, 2017) GoPro playback
option is not available for the user to look at the clips they shot at that
moment. There the GoPro could add features for the same. Thus, considering the
opportunities and threats of other competitors, the GoPro could be produced
better with added features to gain competitive advantage.
Considering the fact that GoPro is a well-established brand.
Consumers may be loyal and already having a good relationship in operating the
brand. Therefore the company should make the effort to retain the existing
customers are addition more value to the products to keep the brand loyal
consumers interested in the brand itself. This will reduce the tendency for
them to deviate to other cheaper alternatives.
Moreover, due to the quality of the GoPro it has a very good
demand in the market. Consumers rely on the camera to capture special life
moments. GoPro has given the reliability for the same. But, when cheaper
alternatives come into play, the reliability maybe lower. Therefore the GoPro
can gain advantage by making the quality of the shots better. Thus, the
consumer will think twice prior to purchasing other alternatives
GoPro being a reliable camera producing company claims to
provide money back guarantee to consumers if not satisfied within 30days of
purchase. This shows how confident they are in the production. But when cheaper
alternatives are given by other companies they may not have the same confidence
in selling their product. Therefore, the GoPro could further make consumers
aware on the durability and reliability of their products. (GoPro, 2017)
GoPro having different communities of users it can be recommended that the
company could produce different cameras for different sports. For example –
Divers may need special additional features to carry the GoPro under water.
Further, it can be recommended that the GoPro could use a method
of online chatting forum for tech support for consumers which would create a
better relationship between the brand and consumer creating brand loyalty. The
GoPro is currently selling fast charging accessories which need to be purchased
separately. Instead they could provide a package with the given accessories and
software and such complimentary to a relatively lesser price which will add
value to the service that is currently provided. (GoPro, 2017)
Consumers such as travelers and other stunt performers may travel all over the
world, there could be times where they will not be able to access internet.
GoPro could provide a complimentary Wifi facility along with the above to make
the service convenient to its users where they will not seek for other
companies to operate GoPro.