Executive Summary
The following project report will follow a digital marketing strategy approach and analyse GoPro market problems with its direct and indirect competitors. The project report is structured in a way to give an introduction to the brand and industry background. It Identifies three main issues into the analysis: “Niche market”, “Competition” and “product development and diversification”. It Proposes a digital content plan to tackle these problems and rise three recommendations: “New target expansion”, “Fighting the indirect competition” and “Products diversification”. The key results are that the characteristics of a brand's products make brand success and fame. However, if neglected, these characteristics can destroy brands like GoPro. The features identified with the help of a competitors' analysis are the following: adaptable, affordable and multifunctional.
Introduction
GoPro is a worldwide brand which has been taken into consideration for its unusual and unexpected situation. GoPro’s fame would never let us think about a company failure. However, GoPro is having management problems, excessive cost of inventory and target market issues as well as product differentiation issues. The following report aims to: Identify GoPro marker potentialities to overcome the oppressing competition. The objectives the project is going to take into consideration to achieve this aim are: direct and indirect competitor analysis, find the most significant issue in GoPro market and create a digital marketing strategy to reassure GoPro a new market future. GoPro must understand that markets changes and customers are asking for products which can allow them to do more with less (Ismet, 2011) like using a smartphone for everything.
1.0 Background Analysis
1.1 GoPro Background
GoPro, Inc is one of the most famous and worldwide recognise action camera brand. It is an American brand founded by Nick Woodman in 2002. As Nick Woodman says: “The 'GoPro' name came about as Woodman and his surfing friends all aspired to become professional surfers as 'going pro' was the ultimate goal and the only way to be filmed on the water at that time”.The brand Unique Selling Proposition (USP) is selling experiences rather than cameras, as we can notice from different advertisement captions like “Be a Hero” referring to both product and persona. An example of this connection is the main GoPro action camera's line called "Hero", which refers to the wide-angle lens which makes the subject in the frame look like a hero intent to do heroic and extreme acts.
1.2 Action Cameras’ Background
GoPro has been the first and the leading action camera brand pushing the market to the next levels with innovation and quality-focused products (Nguyen & Ge, 2017). In 2014, GoPro was swimming in a market worth $3.2billion thanks to the fast-growing tourism industry (Ibid.). The first action cameras' consumers are North America and Europe. However, geographic markets like the Asia Pacific are potential markets. These markets saw a rate of 114% unit sales in 2014 compared to 38% in North America (Seitz, 2015). GoPro has recorded financial problems like high-cost inventory, and extremely high R&D expenses which brought to aloss of -$1.18 billion in revenues and a consequent loss of -$182.87 million in net income since 2002 (GoPro, 2018).
1.3 Competitors’ Analysis
The reasons why GoPro in 2019 is not shining as in 2002 are many. GoPro’s direct competitors Garmin, Sony, and SJCAM have introduced their action cameras businesses after GoPro’s success in 2002. These three brands’ businesses are many in the tech market including action cameras. However, because of its direct competitors’ broad businesses, GoPro remains the leading action camera-focused brand, despite Garmin, Sony and SJCAM remain a threat in the action camera's niche. GoPro’ real problems emerge with indirect smartphones competition (Nguyen & Ge, 2017). Brands like Apple and Samsung are cutting off GoPro from its technological share and its slice of the market, despite a niche still survive. Furthermore, has been done a SWOT analysis and a perceptual map comparing GoPro brand and Smartphone brands to identify which are the point of parity and which are the point of difference on which the report will be structured and focused for creating a digital content plan.
The following perceptual map wants to focus on GoPro problems. As we can notice, GoPro struggles to manage its direct and indirect competition. Its niche-oriented market is the issue which obstructs its climb to success. Firstly, we need to understand what makes other brands successful before arriving at fast conclusions. For example, Apple and Samsung are two different brands but still close to each other. Apple has all the innovation and capabilities to beat Samsung, but its niche mindset (Apple compatibility, apple store, iTunes) has discouraged many customers (Bhagavatula et al., 2015). Samsung, even though it is not considered as the fanciest and best performing smartphone (ibid.), is still selling more than Apple. The answer at this point is clear. Being adaptable, affordable and multifunctional are the keywords to succeed in this technological market. GoPro and SJCAM are similar to the case analysed above, with the only difference in price. If we want to get close to the example “Apple-Samsung” we should compare GoPro with Sony and Garmin. Sony has different businesses; it offers a vast array of prices and products for each activity and applies a dynamic brand stretch. Garmin is a company specialised in GPS technology with different businesses into outdoor and cameras. GoPro relies 100% on is own original effective action cam business. However, sooner or later GoPro has to face the new market competition and the different customers/consumers are changing behaviour (Palmatier et al., 20017).
2.0 Issued identified from analysis
2.1 Niche market
GoPro is targeting specifically a young and high-end niche with extreme sports passions, leaving back all the sports amateurs and people that could be potentially interested in the product. However, the strong association between GoPro and extreme don't match with regular technological customers' values. Moreover, offering only high-end products shrink more the market pushing customers to opt for plan B like the cheaper choice SJCAM.
2.2 Competition
After GoPro’s launch and success in 2001, new brands get into action cameras’ business, expanding their original business (Garmin and Sony) or creating a brand new one (SJCAM). The market is changing, and new threats are showing, but GoPro seems unable to face the competition with an adequate marketing strategy. Moreover, customer prefers to buy devices which, even though not performing at 100% on all their features (Dan et al., 2014), allow them to do everything they need (social, delivery, messaging, travel, etc.). Today's world is multitasking and multifunction; the faster GoPro will understand this the easier will be to adapt and bloom again.
2.3 Product development and diversification
GoPro product turnover is low due to its quality which enlarges the product lifecycle making the brand victim of its success. GoPro is trying to overcome this unstable situation by decreasing the prices of the new cameras. However, even this choice is not the solution to GoPro's problem. GoPro users still have old versions and are not motivated to update their cameras. GoPro even tried to build new lines like KARMA drone and GoPro Fusion a 360-degree camera. However, GoPro KARMA could not face drone competition, and GoPro fusion was launched too early before the VR industry started to grow (Nguyen & Ge, 2017).
3.0 Digital Content Plan
3.1 Target Market
By the time GoPro is targeting a tiny segment, the idea of the target market would expand to those customers of any age interested in outdoor experiences (amateur, semi-professional). The goal is to shape GoPro’s marketing message and product appealing by embracing multiple segments from children to older customers physically active. This market strategy will use the same social media advertisement criteria only enlarging the size of content shared through the platforms. Nowadays, the biggest mistake a company could do is to suppose that in 2019 the older customers are not active on social media. They cover a huge percentage of content shared through all social media platforms (Bo et. a., 2012).
3.2 Social Media Platforms
GoPro has a high influence on all social media where customers upload their experiences through GoPro mobile apps and video-editing software like GoPro “Quik” available since 2016. Moreover, GoPro understood social media potentialities and launched new hashtags (#BeAHero etc..) and social missions (“capture and share your life”). Furthermore, GoPro sponsors famous athletes and outdoor activities and work with brands like “Red Bull” and “Monster”. The pivotal social media taken into consideration in this campaign are related to the brand aim and objectives. By the time GoPro is an image/video focused brand, the most effective social platform on which it should invest more on are the following (for more see appendix 3):
YouTube:
With nearly 7million of subscribers on YouTube, GoPro has a vast network for video and experience sharing. People at the same time post GoPro unboxing, experiences and feedback. YouTube would be the leading Social media platform to consider for creating new awareness and to expand GoPro’s latest campaign. Moreover, the choice of this platform is due to its users’ heterogeneity.
Instagram:
With 15.5million followers, Instagram is the social media platform with the most GoPro contents. However, due to Instagram homogeneous users’ age, this platform would be considered as less relevant in this campaign. Instagram will remain the primary social channel for Millennials and will be necessary to keep investing in it.
Facebook:
With 10 million followers on Facebook, GoPro has the potentiality to reach different customers and segments, but this platform remains less useful compared to the first two which are visual-focused. However, Facebook is helpful for storytelling and experience sharing where users are more likely to read instead of watching (Lee & Nair, 2018).
Other platforms:
Furthermore, GoPro is present and active on Twitter (2.24million followers); Pinterest (40K followers) and LinkedIn (127K followers). These platforms reach different customers within a smaller scale.
3.3 Message of the strategy
The message of this strategy goes further than the GoPro’s USP “selling experience first”. The real message, which could save GoPro from a near failure, is to involve everyone within different levels. The message should be: "no matter how tall you are, how old you are and how brave you are you will always be a hero for GoPro". The message should push people not only to do extreme things but also to do the standard actions and sports which, in such a competitive world, have been lost. The message of this campaign wants to expand GoPro product potentialities and aim and objectives by focusing on social media platforms with a high visual influence. Finally, the success of the campaign will be evaluated with the decisive engagement of the targeted new segments in the different social media platforms. This success would bring to a following product and brand engagement from new profitable customers who have never been interested in GoPro before.
4.0 Recommendations
4.1 New Target Expansion
Expand the GoPro consumer base by creating new brand lines and new campaigns for targeting new segments. An example, which plays on the original action camera line “Hero”, could be “Human”, for all those people who do not consider themselves “Heroes” capable of doing extreme acts. This Campaign could target those neglected segments like (children, older people, amateur, etc…).
4.2 Fighting the indirect competition
To fight the smartphones directly, I would suggest GoPro create a Smartphone line with a product portfolio focused on the camera resolution and Video/Photo editing. This idea could start a “brand environment” like Apple is doing. GoPro smartphone could give priority to “Quik” and image-focused social media like YouTube and Instagram to give more reasons to the customer to choose GoPro smartphone in the editing phase of the digital customer journey (see Appendix 3). The suggestion is to create a thigh relation with GoPro action cameras and GoPro Smartphone where these two devices can communicate better between them (e.g. Apple).
4.3 Products diversification
Possible advice for brand stretch are: creating a GoPro line of sportive clothes and free material, nutrition products like energy bars or supplements for athletes. Moreover, the product diversification has to be pivotal into product upgrades and new versions. In this case, the customer will have more reasons to buy the latest version and start a late turnover. Some examples could be adding side characteristics like the possibility to edit directly from the device. I would advise listening to customers' feedback, from delivery problems to recommendations, which can start new ideas.
Reference List
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Bo Xie , Ivan Watkins , Jen Golbeck & Man Huang (2012). Understanding and Changing Older Adults' Perceptions and Learning of Social Media. Educational Gerontology, 38:4, 282-296, DOI: 10.1080/03601277.2010.544580
Dan, W., Zheng, X. & Daniel, R.F., (2016). Smartphone use in everyday life and travel. Journal of travel research 2016, Vol. 55(I) 52-63.
GoPro, (2018). GoPro Announces Fourth Quarter and Full Year 2017 Results. SAN MATEO, Calif., Feb. 1, 2018 /PRNewswire/ - 2/1/2018
Jung, W.L., (2011). Critical factors promoting customer loyalty to smartphone and mobile communications service providers. Boston University – Department od administrative sciences 2011.
Lee, D., Hosanagar, K., & Nair, H. (2018). Advertising Content and Consumer Engagement on Social Media: Evidence from Facebook. Management Science, http://dx.doi.org/10.1287/mnsc.2017.2902
Nguyen, Q.T. & Ge, Y. (2017). Action Camera Industry: A marketing strategy analysis. The Hong Kong Polytechnic University MM4741 Market Decision Analysis.
Palmatier, R. W. and Sridhar, S. (2017). Marketing strategy: based on first principles and data analytics. Macmillan education palgrave.
Seitz, P. (2015). Action Camera Market To See Growth Through 2019. Investor's Business Daily Technology. Retrieved 2 December 2017, from https://www.investors.com/news/technology/gopro-to- benefit-from-action-camera-market-growth-futuresource/
Paolo Casula, Marketing Freelancer
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