GoPro’s Marketing Strategy and Market Dynamics
Marketing Strategy and Supply Chain: The GoPro Example
The relationship between marketing strategy and an organization’s supply chain is critical for product success and market positioning. A marketing strategy dictates product features, target markets, and pricing, which in turn directly influences supply chain decisions regarding sourcing, manufacturing, and distribution. The following details on GoPro serve as a concrete industry example illustrating this relationship.
GoPro’s Mission and Strategic Goals
According to Nick Woodman, founder and CEO, GoPro’s mission is: “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.”
Besides, the company’s goal is to develop hardware and software solutions to ease consumer pain points associated with photo and video capturing, sharing, managing, and enjoying the whole experience.
GoPro Product Evolution and Market Impact
- 2006: GoPro went digital, developing a picture-capturing camera capable of 10-second video capture without audio.
- 2007: Voice recording was introduced with the HERO3, first tested in Baja California.
- 2008: A wide-angle lens for panorama was introduced with the Digital HERO5.
- 2011: GoPro acquired CineForm Inc., integrating its technology into GoPro’s 3D systems.
- 2012: The company introduced the HD HERO3 to market, which generated over $500 million in revenue.
It is worth mentioning that while GoPro products are well-manufactured, they are costly, and not everyone can afford them, especially when compared with new competitors in the digital market. This aspect of GoPro’s product strategy and market positioning has direct implications for its supply chain, particularly concerning manufacturing costs and target market accessibility.
The Role of Marketing Research in Program Development
GoPro focuses its marketing research on two main areas to develop and implement its marketing programs:
Industry Analysis and Market Demand
Demand for action cameras is highly associated with holidays, innovations, music festivals, and sports events. For instance:
- Seasonal Peaks: Purchase rates increase during winter due to Black Friday sales, last-minute Christmas shopping, and winter sports events such as skiing and snowboarding. The same scenario applies in the summertime for sports like skydiving and surfing. Therefore, action cameras are ideal for those who wish to capture and share these moments.
- Event Influence: Extreme sports events such as X-Games, Olympics, or surf competitions significantly raise the demand for action cameras. Beyond extreme sports, music festivals like Paradiso also remain strong markets for action cameras.
It is worth noting that, besides durability, key influences in the action camera industry include higher pixels, higher frame rates per second, user-friendliness, and integrated applications, especially social media ones. Thus, the action camera industry is open to novel possibilities and faces endless competition from leading competitors.
Customer Targeting and User Experience Enhancement
GoPro’s camera production line, with its integrated technologies, targets a broad group of customers, including sports enthusiasts, family members, and individuals attracted to global festivals, sports events, or simply seeking adventure. The primary goal for customers purchasing the camera and its accessories is to capture live photos or video images of events or adventures. This niche appears similar to “Reality TV.”
Therefore, it is GoPro’s responsibility to provide creative and more robust technologies, and to continue its success by offering customers numerous options for accessories and technologies to improve the overall user experience.