Life experiences, when captured and shared, evoke positive emotions. GoPro is a Californian-based company located in San Mateo offering recording services with its world most versatile camera. Nick Woodman founded the company in 2003, which was designed to serve the enthusiasts of extreme sport and professional athletes. The camera is worn on a person and can record events and allow the wearer share his/her experiences with others (Landau, 2014). Since its inception, GoPro intents to develop the world’s most versatile and unrivaled camera. The company used extreme sports enthusiasts and professional athletes to market its products. In addition, the company used social media to make gains on the camera sales. Consequently, such platform as YouTube enjoyed success of the company by using its device, recording diverse views, and sharing them with numerous users (Landau, 2014). However, the world is currently experiencing technological advancements, which results in emergence of different competitor companies. The market is also becoming more diverse and dynamic making the company device techniques to solve this challenge. Nevertheless, other spheres of business have been sought to remain competitive. Such channels include strategic plans on the goals and objectives of the enterprise (Gougen & Su, 2013).
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The External Environment
GoPro Company has been in existence since 2003. The company makes and sells wearable cameras that are of significant use in action videos and photographs. This business venture has attracted other participants in the market resulting in natural growth. The primary competitors for the company include Contour, EyeSee360, and Vievu. Contour was founded in 2004 and produces point of view cameras that are useful for modern day explorers, sportspersons, and adventurers. Professional videographers and photographers, as well as amateurs can also use such cameras in the quest to narrate their action story, travels, and adventures. The company’s products range from panoramic cameras, mounts, accessories, applications to support equipment. EyeSee360 was founded in 1998 by Carnegie Mellon University. This company has unmatched modern technology in panoramic imaging for still images and videos. It produces a broad range of products classified as hardware and software (Jensen, 2013).
Vievu is also an established company that manufactures cameras and accessories, as well as software products. Company’s products are widely used by safety and security personnel. Vievu products are produced by The Safariland Group, which makes a company leader in providing comprehensive range of survivability products designed for outdoor markets, professional, and public safety. These products are trusted by over 4000 agencies in seventeen countries worldwide. They are used majorly by the security and safety personnel. The advantage is that they are body worn cameras used for law enforcement. They are comfortable to wear, and consequently, they improve and increase accuracy and accountability (Lazar, 2015). As a result of advancement in technology, some companies are also producing athletic equipment that matches the current market trend causing competition. Such companies include Netflix, Amazon, Sony, HTC, AirBnb, and Google Mobile.
Economic Growth and Stability
The California-based GoPro Company was founded by Nick Woodman as he tried to capture professional images of his sporting activities. The industry managed to succeed and now the cameras are used by a large population to have their positive moments recorded for preview. San Mateo is where the company is located, which is a suburb influenced by high technological advancement. The economy has been enhanced by many job opportunities from government, retail trade services, financial sector, healthcare, and technology. As a result, the livelihood of the people residing in this area has been influenced positively from the economic perspective (Lazar, 2015). Nevertheless, GoPro products are expensive, which makes customers choose other products offering the same service. It is occasioned by difficult economic times where individuals want to receive a high quality product bearing little expense. GoPro products, nonetheless, are superior and are preferred by many individuals despite the exorbitant prices. As a result, the sales are not high, since the products are purchased by the wealthy people on most occasions (Simkin, 2000).
Political, Legal, and Regulatory Issues
GoPro has experienced different uncertainties, especially the ones concerning international efforts. The sales made in the global markets, including its operations, encounter risks of staffing and management of foreign operations. However, the efforts have been made to form industry and consumer lobby groups. In 2015, GoPro was in the process of launching drones in an attempt to diversify its top line products connected to action cameras. At the same time, FAA was drafting new regulations that were aimed at governing the use of consumer and commercial drones. Currently, FAA demands that drones should fly to a maximum height of 500 feet at all times, remain within the sight of the operator, and must only be flown during the day. FAA further proposes that the drones should be flown by the individuals who pass the aeronautics test and vetted by the TSA in regards to flying drones. The public also was concerned about the commercial and consumer use of drones. NoFlyZone Company made efforts to reduce the growing concern (Lazar, 2015). Besides, there have been reporting and corporate governance requirements that must be fulfilled. The acts the put forward such demands include the Sarbanes-Oxley Act and the rules implemented by SEC and NASDAQ Stock Market. Such legal and financial requirements have resulted in financial strains to the GoPro Company.
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Changes in Technology
GoPro has taken the advantage of technology to advance its market to the rest of the world. Over the years, GoPro has used the social media outlets for promotion of its products, as well as brand awareness. The company markets its cameras by the use of effective video campaigns made by the firm, as well as by the consumers. Previously, the company used YouTube to make advertisements for its technological action cameras through extreme sporting activities, such as skating, snowboarding, skydiving, and cycling. Through such display, the customers would receive a view of the product they have never seen before, hence allowing the GoPro products to command the market for the world’s most versatile action camera (Levy, 2013). Through advancement in technology, the company has made changes in the manufacturing of its products to meet market and dynamic population demands. An example of such step was the introduction of Hero4 brand of camera. The use of technology has also influenced the distribution of its products largely through the social media platform.
The use of YouTube, Instagram, Twitter, and Facebook led to increasing the customer base, as well as sales. Instagram, for example, commands 1.3 million followers as it showcases real images and videos captured on GoPro devices. Consequently, it has resulted in the promotion of the products, improved customer relationships with the managements, and creation of partnerships and alliances with the other like-minded companies (Landau, 2014). Besides, it could be substantial for the company to leverage on the changing trends in technology so that it maintains a broad customer base and exceeds its competitors. Social platforms include the recently introduced WhatsApp where the customers could send clips of how they would like the product to look. It would also be vital for the company to look out for technologies that would eventually result in product obsolesce.
Documenting every activity of people’s lives has become a norm in the current world. Initially, the GoPro products were targeting the extreme sporting event personnel, but it has changed with time to include everyone. Due to such changes, the company ought to diversify the products to suit the general populace, as well. Therefore, the product features and branding have to change. The prices for the products should also not be extremely high. The products also have to be distributed efficiently and available conveniently to the users. The promotion must consider effective ways of content delivery and feedback mechanisms (Landau, 2014). Due to the diversification of the customers and employees, the marketing strategies also have to change. The people’s culture in the design and distribution of the products should be considered. Environmental issues must also be factored in regard to disposal of the spoilt and obsolete products. Nevertheless, the company is obliged to adhere to the ethical and legal requirements so that it could run the business efficiently (Tej Adidam, Gajre, & Kejriwal, 2009).
The Customer Environment
Who are the firm’s current and potential customers?
As mentioned earlier, GoPro products were earlier designed for action-oriented individuals but with the changing market demand, the products have also been used to record daily activities. The company had used extreme sports personalities to create awareness and influence the market. Nevertheless, the current demand for such cameras is represented by not only the sportspersons. Potential customers include everyday users and the outdoor adventurers. An example is the use of this camera by the marine biologists in their research of the marine and aquatic life. The research scientists purchase and use such products, as well.
What do customers do with the firm’s products?
GoPro produces the most versatile cameras in the world that is worn or mounted on a person. The other specific feature of the cameras is their stylish look. The cameras have great working possibilities as they have been founded by Woodman to capture special moments and share the experience with others. Nowadays, people want to capture events upon their occurrence and preview them with colleagues. Purchases are made by the customers depending on the intention and the magnitude of the scale of use. Consequently, the users range from heavy to light. Companies offering safety and security may want to order the products in bulk, whereas everyday users may purchase the product in lower quantities. The wastes generated from the use of these commodities should be handled as per the regulations stipulated by different countries, as well as those that govern recycling.
Where do customers purchase the firm’s products?
Orders can be made from the GoPro site online. There are numerous visitors of the site who want to experience the products capabilities, and may have learned about it through Facebook or other social platforms. Secondly, there are retail outlets that sell GoPro product. They include Walmart, Target, and BestBuy. In addition, the cameras are also found in electronic shops, shopping malls, and other traders. Other significant purchases are made from affiliate marketers through online platforms. It is a commission-based marketing strategy, which has resulted in marked volumes of sales.
When do customers purchase the firm’s products?
Purchases from the enterprise can be made anytime. It has been facilitated to a larger extent by the online shopping platform. Events and promotional activities have helped increase sales by the company as people want to share their experiences with other, which makes GoPro products become helpful. However, there are situations where the customers purchase the products but not under the firm’s control. Such cases are influenced by seasonal patterns, physical and social surrounding, time perception, as well as competitive actions.
Why (and how) do customers select the firm’s products?
Customers consider the specifications of the product and the price before purchase. GoPro action cameras possess the market-desired specifications and most reasonable prices and hence command the lead in the market. The desired properties include light weight, durability, high definition, and quality recording ability. Besides, the enterprise has gained social acceptance, since customers are proud, aware, and like their products. Their success was hoisted by celebrity athletes, as well as the customers themselves. GoPro listens to the client demands, and its online purchases are handled fast. Moreover, the company offers warranty and well-stipulated return policy for its products.
Why do potential customers not purchase the firm’s products?
There are concerns regarding the use of the product. Some customers have reported difficulty in reading the menus, as well as difficulty in pressing the menu buttons in the waterproof type of enclosure. However, the products still have an advantage over their rivals due to the functional capacity and light weight. Besides, other products retail at a lower price, such as the China’s Xiaomi. Nevertheless, it may also be difficult to order such product in some other parts of the world as its distribution is limited.
Internal (Organizational) Environment
Review of marketing goals and objectives
The influence of the social media has been enormous in the promotion and awareness of the GoPro brand. The camera has been promoted through video marketing campaigns generated by customers and the company itself. The company initially started a YouTube channel to create awareness and market for its products. Anyway, it was limited to the ability of the company to post new videos. Consequently, the company hired professionals to help in the creation of new content. The overall strategy was to maintain the camera as the most outstanding. The YouTube channel has since then proved its efficiency considering more than 3 million subscribers and over 6000 posts daily.
Review of current marketing performance
Woodman has managed to change the prototype camera to a household item over a period of ten years. GoPro has been successful as many individuals visit the website to receive information and make purchases. The company is now strategizing on talent, technology, as well as software and innovative products to hoist the company’s success and sustainability.
Strength 1: Explicit marketing content created by professional athletes and customers.
It enables the company to have better relationship with its clients and produce products that suit the market. Consequently, the company wins the trust of the customer and, therefore, becomes better than other competitors.
Strength 2: Social media brand awareness.
Through public platforms, the company can be critiqued, which results in a good uptake of customer feelings leading to appropriate adjusting. Other companies may not engage the customers through social platforms, therefore, GoPro is unmatched in this respect.
Weakness 1: High prices.
Due to the high prices, not all customers can purchase the product. Therefore, not all the customer segment is covered. It can result in a reduction of sales as those clients who are unable to buy from GoPro can order the product from a different supplier.
Weakness 2: Market focus is on extreme sports.
The general population has been ignored without considering the fact that the adventure seekers also need to capture events so that they could share them with others. There is a need to diversify the product so that it meets the demands of every customer.
Opportunity 1: Diversify products and services.
The current product offered by the company fails to meet the overall market demands. The company ought to have products that suit the general population. GoPro should design strategies on development and invention of a product that can be used for everyone.
Opportunity 2: Diversify market.
There are other markets that the company has not ventured into, such as medical aspects. IN the given area, the cameras are extremely needed, especially in laparoscopic surgeries. Therefore, devices that suit the requirements of this field have to be considered.
Threat 1: Competition.
There are different inevitable challenges that arise and must be addressed for sustainability of the company. Products must be designed to meet the customers’ demands to retain them. Market surveys are necessary to ascertain the competitor’s ferocity and adjust accordingly.
Threats 2: Cost.
Less expensive and equal devices are being offered in the market making the expensive GoPro camera undesirable. Consequently, the company has to consider cost decreasing so that to compete effectively in the market.
Matching, Converting, Minimizing, and Avoiding Strategies
The company can diversify the product and then leverage on social media to introduce it. The use of professional athletes and customers can also be used. Besides, the firm can convert its weaknesses to strengths or threats into opportunities by considering the demands of the clients. Nevertheless, the company is devoid of liabilities giving it an advantage over its competitors.
Marketing Goals and Objectives
Marketing Goal A: Develop camera for applications
Objective A1: Develop applications for the camera with the law enforcement agencies within three months. A new company will be established and shall be responsible for crafting new relationships.
Objective A2: Ascertain feedback on the uses of the devices from the followers within three weeks. The marketing officer will be responsible for the survey and information will be shared within the company.
Marketing Goal B: Develop user-friendly mountable accessories
Objective B1: Based on the customers’ needs, create four mountable accessories and give feedback within three months. A project manager will be assigned with the given task and overseen by the leadership.
Objective B2: In an attempt to upgrade GoPro with accessories, provide incentives during the purchase time. The manager shall oversee this exercise.
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Primary Target Market and Marketing Mix
Primary Target Market: Extreme sports
Extreme sportsmen are individuals who engage in active lifestyles and are middle-aged. They require high definition recording cameras that are easy to use, durable, and affordable. They need new products as technology improves steadily.
Product: High definition action camera
The product should be able to record clear pictures in motion. The brand should bear the GoPro name and meet the customer demands. It should also include products that complement it.
There should be a transparent pricing along the supply chain to protect the end user from exploitation. The product should be readily affordable and available on demand.
The mother company, in addition to the assigned retailers, will also distribute the products. Customers will be able to make online purchases and the products will have to be delivered to them in the shortest time possible.
Product development should be done in agreement with the requirements of the Integrated Marketing Communications (IMC) that specify the objectives, budget, and strategies regarding publicity, personal selling, and sponsorship, as well as push and pull factors.
Secondary Target Market and Marketing Mix
Secondary target market: Applications
The GoPro applications are mostly used by businesses that require special filming services that suit their needs, such as safety and security. The application must be easy to use, and agreements must be put in place to ensure that memorandums are implemented.
Product: Application software
The application as mentioned earlier must be easy to use and have features that meet the demands of the user. Besides, the applications should also be comparatively cheaper for affordability purposes.
The demand for the product depends on the price tag it carries. The price influences the volumes of sales made partially. It is, therefore, necessary to attach an affordable price to the application.
Applications are obtained on most occasions from the mother company or from the appointed dealers. Strategies of the supply chain should be enforced to ensure quality supply of the product. The applications should also be easily available for convenience.
Product development should be done following the requirements of the Integrated Marketing Communications (IMC) that specify the objectives, budget, and strategies regarding publicity, personal selling, sponsorship, as well as push and pull factors.