References

References

Agar, C. (2013, May 5). Roundup: 8 Of The Best GoPro Action Sports Camera Alternatives. Retrieved April 20, 2015, from http://thetechreviewer.com/tech-tips/best-gopro-action-sports-camera-alternatives/

Burrows, P. October 19, 2012. GoPro Widens the View of Its Consumer Base. Bloomberg. Retrieved from http://www.bloomberg.com/bw/articles/2012-10-17/gopro-widens-the-view-of-its-customer-base

Captain, S. (2015). Best Smartphone Cameras of 2015. Tom’s Guide. Retrieved on April 20, 2015, from http://www.tomsguide.com/us/best-phone-cameras,review-2272.html

EZVid. (2015). Top 10 Camcorders. Retrieved on April 20, 2015, from https://www.ezvid.com/top-10-camcorders#two

Furchgott, R. (2014). Action Cameras, for When a Smartphone Won’t Be Able to Keep Up. The New York Times. Retrieved on April 20, 2015, from http://www.nytimes.com/2014/03/13/technology/personaltech/review-five-action-cameras-from-gopro-sony-garmin-drift-and-ion.html

GoPro. (2015). About Us  GoPro. Retrieved April 12, 2015, from http://gopro.com/about-us/

GoPro. (2015). About Us. Retrieved April 27, 2015, from http://gopro.com/about-us/ 

GoPro. (2014). Annual Report. United States Securities and Exchange Commission. Retrieved on May 5, 2015, from http://investor.gopro.com/secfiling.cfm?filingID=1500435-15-7&CIK=1500435

GoPro. (2012, January 27). GoPro Welcomes Shaun White, Olympic and X Games Multi-Gold Medalist, to Snow Team. GoPro. Retrieved May 10, 2015, from http://gopro.com/news/gopro-welcomes-shaun-white-olympic-and-x-games-multi-gold-medalist-to-snow-team/

Grunin, L. (2015). Best digital cameras of 2015. CNET. Retrieved on April 20, 2015, from 

http://www.cnet.com/topics/cameras/best-digital-cameras/

Loboda, S. December 5, 2012. GoPro’s Analysis of the Internal Environment- Market Strategies and Financial Performance. Marketing Talk. Retrieved from https://marketingtalkblog.wordpress.com/2012/12/05/gopros-analysis-of-the-internal-environment-market-strategies-and-financial-performance/

Mac, R. (2013, March 4). GoPro Evolution: From 35mm Film To America's Fastest-Growing Camera Company. Forbes. Retrieved May 5, 2015, from http://www.forbes.com/sites/ryanmac/2013/03/04/gopro-evolution-from-35mm-film-to-americas-fastest-growing-camera-company/

Patnaik, S. (2015, February 5). GoPro revenue surges on strong demand for wearable cameras. Reuters. Retrieved April 21, 2015, from http://www.reuters.com/article/2015/02/05/us-gopro-results-idUSKBN0L92UQ20150205

Photographic Equipment and Supplies. (n.d.). Retrieved April 19, 2015, from http://www.referenceforbusiness.com/industries/Analyzing-Controlling-Instruments/Photographic-Equipment-Supplies.html

PR Newswire. (2014, August 18). Wearable Electronics Market to Hit US$8 Billion Value by 2018. PRNewswire . Retrieved April 20, 2015, from http://www.prnewswire.com/news-releases/wearable-electronics-market-to-hit-us8-billion-value-by-2018-271697581.html

SEC. (2015). LIST OF SUBSIDIARIES. U.S. Securities and Exchange Commission. Retrieved April 13, 2015, from http://www.sec.gov/Archives/edgar/data/1500435/000150043515000007/ex-21listofsubsidiaries.htm

Tarr, G. (2013, May 19). GoPro Takes Camcorder Market By Storm. TWICE. Retrieved April 8,2015, from http://www.twice.com/news/news/gopro-takes-camcorder-market-storm/42506

VALS. (2010, February). Young Adults and the financial crisis. Strategic Business Insights. Retrieved April 26, 2015, from http://www.strategicbusinessinsights.com/vals/free/2010-02yngadultsfincrisis.pdf

VALS. (2015). VALS Types. Strategic Business Insights. Retrieved April 27, 2015, from http://www.strategicbusinessinsights.com/vals/ustypes/experiencers.shtml

Marketing Programs and Strategies

Marketing Programs and Marketing Strategies 

Advertising 

GoPro has several means of advertising, including digital advertising, social media, billboards, print ads and television commercials. 

Sales promotions 

GoPro offers a number of great incentives to increase sales and interaction with the consumer. These offers include daily giveaways where consumers can upload their pictures and videos to win prizes from GoPro, and by using  GoPro Promo Codes where shoppers can take advantage of discounts on GoPro cameras and accessories by entering a promotional code while shopping online. GoPro also has trade shows to create brand awareness and showcase GoPro's to consumers.

Public relations

GoPro has several celebrity brand ambassadors such as Shawn White, Felix Baumgartner and Ryan Sheckler, as a way to connect with their adventurous market. 

Personal selling

GoPro sells products through direct and indirect channels such as through the GoPro website, retail stores, and specialty sports stores. GoPro also sponsors major sporting events like the X games. (GoPro, 2015)

Direct marketing

GoPro has made content marketing their best form of direct marketing using videos created within the company and from GoPro users throughout the world. By using this type of marketing, GoPro is able to show consumers why people love their products, and why having a GoPro is unlike any other recording device.

Precedent Studies

 Precedent Studies

In the early stages of GoPro, founder Nick Woodman had the drive to make his business succeed but the advertising was lacking. In 2004, Nick produced the first GoPro and began selling them at surf retailers at the Action Sports Retailer Convention in San Diego. (Mac, 2013) He originally advertised GoPro as an action camera for surfers, since he was surfer and wanted a camera to capture his surfing footage. In late 2004, he began advertising GoPro as an action camera for every sport. In 2005, Woodman began his big advertising break by selling his cameras at QVC, surf shops and specialty sports boutiques. It was not until 2008, that woodman began advertising the GoPro as a mountable device. Since then, GoPro has been advertised as a wearable and mountable camera that can be used for all types of activities. The main target group that is advertised to is sports/adventure enthusiasts.

Research Development

Research Development

 Marketplace Research

The market for cameras and camcorders is highly competitive. GoPro competes against established, well-known companies, such as Canon, large, diversified corporations, such as Samsung, and specialty, niche companies, such as Garmin Ltd (GoPro, 2014)

 Competitors have substantial market share, diversified product lines, well-established supply and distribution systems, strong brand recognition, and significant financial, marketing, research and development, and other resources (GoPro, 2014)  Marketplace research is indicative of GoPro having established a position in the market with significant brand recognition and attractive consumer price points, features, and benefits

 Market Observation

GoPro continually practices observation of key areas to maintain its strong strategic placement in the market. GoPro analysts complete daily price observations of stock price and volatility for the market to ensure the best possible stock prices for GoPro shares in the market (GoPro, 2014)

GoPro helps to determine its pricing through market observation valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to directly access (GoPro, 2014) Continual observation of consumer markets in order to determine opportunities for growth in established markets and opportunities for penetration in new or additional consumer markets

 Online Survey Analysis

60% of survey participants are very familiar with GoPro products and the remaining 40% identify as somewhat familiar with GoPro, indicative of established brand recognition.

80% of those surveyed are interested in purchasing GoPro products or already own GoPro products.

40% of those surveyed would immediately purchase GoPro products if in the market for a new camera or camcorder while the remaining 60% would compare with Nikon, Samsung, and/or Canon before purchasing.

80% of those surveyed believe GoPro’s price points offer an average to above-average value based on the products’ features and benefits, and only 20% of those surveyed believe that GoPro has successfully expanded out of the athletes, thrill-seekers, and travelers market, demonstrative of the aforementioned market observation opportunity to penetrate additional or new markets.

Target Audience

Strategic Target Audience 

 Primary Target Audience 

The proposed primary target audience would be the experiencers. According to VALS, “Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities” (VALS, 2015). Advertising, marketing, and integrated brand promotions should be targeted at both male and female, ages 18-35 that are active, seek out adventurous travels. “Our customers include some of the world’s most active and passionate people” (GoPro, 2015). These consumers tends to be early adapters of new technology, enjoy traveling and discovering new destinations, are willing to spend their income, and are willing to document their goals, travels and hobbies and share them on social media.

Secondary Target Audience 

The Proposed Secondary Target Audience would be Strivers. This is the young adult category between the ages of 18-21. “Strivers are trendy and fun loving. Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who do not have enough of it to meet their desires” (VALS, 2010). They tend to travel with their friends and companions on trips that fit their hobbies and interests. This group typically uses social media more and shares their life online. This secondary group does not typically have the income that experiencers do, so in order to win over the secondary market GoPro would need to show them why purchasing their camera will be beneficial.

Consumers& Stakeholders

Consumer and Stakeholder

Consumer Characteristics

GoPro is known for its ability to capture amazing images in action. Scenes that appear in the latest action movies; a surfer catching a huge wave; coming face to face with a Siberian tiger; or little Billy’s swing at his little league game. The genre of video that GoPro has been used to capture goes to show that their consumers are anything but average. Their commonalities are just as extreme as the videos they capture. “GoPro cameras allow action-sports enthusiasts to take professional quality videos; however, many were purchased by consumers who don’t have thrill seeking on their minds” (Burrows, 2012). GoPro cameras are becoming lighter, easier to use, and offering exciting new features such as HD and slower slow motion capabilities. As more consumers look to capture their lives on video, GoPro has bridged the gap from enthusiasts to stay at home moms. 

Consumer demographics

GoPro has a commitment to the extreme sports community and a younger, active generation. Price is directly related to what each of the 3 versions of camera offer the consumer. The GoPro Hero 2 comes in three varieties: Outdoor, Motorsports, and Surf editions (Branded with Fire). These options clearly show GoPro’s commitment to the extreme sports community and demographic (Loboda, 2012). 

Consumer psychographics

GoPro consumers are more than just extremists living on the wild side. Most of the users of GoPro, even those who favor the videos but are not owners of the device, all share some common interest. Images that are captured from the user’s point of view helps the audience connect with that event almost as closely as they could if they were there themselves. GoPro users enjoy the beauty that can be seen when the waves are crashing down or the look on a child’s face when they’re reconnected with their father home from war. Consumers of GoPro also share in the awareness of some of the images that were recorded. A tiger being released into the wild or a South African Zookeeper kissing an endangered species captured in the wild. GoPro has something for everyone so it is important to understand that if it can be recorded, others can connect with it.

Stakeholders

Stakeholders’ Characteristics 

Investors with interest in GoPro specifically as well as investors interested in the growing and developing wearable photo and video capturing industry. GoPro is publicly traded on NASDAQ meaning anyone, not just skilled investors, can purchase shares of the company toward becoming GoPro stakeholders. 

 Primary Stakeholders 

GoPro primary stakeholders are those who have invested in the most shares with the company. Current primary stakeholders for GoPro include top shareholders, suppliers, and invested managers, employees, and customers. 

Secondary Stakeholders

Secondary stakeholders are those who have invested in smaller shares with the organization but still play an integral role as stakeholders. Secondary stakeholders for GoPro include local residents, funding organizations, and invested communities. 

Competitive Situation

Competitive Situation

Direct Competitors 

 GoPro competes directly with comparable wearable technology-based action cameras

Competing Product	Pros	Cons
Sony HDR-AS30V	Software which helps to stabilize shots, wide range of accessories and lower cost than GoPro (Furchgott, 2014)	Standard Camcorder not suited for high impact shooting.
Garmin Virb Elite	Action camera, connects to other Garmin products and heart rate monitor	Heavy, cannot connect to competing products and has a time consuming set up. (Furchgott, 2014)
ION Air Pro 3 (Garmin)	Lightweight, fewer buttons to allow for easier use	Requires computer connection to make changes, no screen to view footage.

Indirect Competitors 

While GoPro has direct competitors in the wearable technology-based action camera market, it also has indirect competitors in other photo and video capturing tools. 

Cameras

Traditional cameras are a top indirect competitor for GoPro for a multitude of reasons. Some users prefer traditional cameras and have yet to adjust to newer wearable-technology formats as seen with GoPro products. Additionally, traditional cameras are generally more affordable. Traditional cameras might also seem to be a better option for practicality purposes, specifically for users which are not engaged in activity which would require action shots and footage. Some of the top traditional camera competitors for GoPro are Canon PowerShot SX600 HS, Nikon D3300, Samsung NX1, and Panasonic Lumix DMC-LX100, all ranging in prices from $170 to $1,999, depending on whether or not they are intended for leisure or professional purposes (Grunin, 2015)

Camcorders

Traditional camcorders are still strong competitors, particularly for users which intend to capture daily life footage, because they are easy to hold, travel with, and capture video with. Similar to the aforementioned traits of traditional cameras, some users may prefer traditional camcorders for a more affordable price and more traditional style, specifically if they do not have a need for live action footage. Some of the top traditional camcorder competitors for GoPro include Canon Vixia, Veho Micro-digital camcorder, Sony HDR-CX190 High Definition Handycam, and Panasonic HX-WA2 Waterproof Full HD Camcorder with prices ranging from $60 to $340 (EZVID, 2015)

Smartphones

With substantial advancements in technology, smartphones are capable of capturing high-quality photos and video. Smartphones are a top competitor considering that most users almost always have a smartphone on-hand to quickly and easily capture photos or videos. While smartphones do not offer as many capabilities as GoPro products, they are a top competitor for GoPro because of their multiple functions. Some of the top smartphones with advanced photo and video capabilities are the Samsung Galaxy S6, iPhone 6 Plus, Samsung Galaxy S5 Active or Sport, HTC Desire Eye, and the Panasonic Lumix DMC-CM1 (Captain, 2015)

Industry and Market

Industry and Marketplace 

Summary and definition of the industry – GoPro is in the wearable technology industry.The industry is made up of businesses in manufacturing photographic apparatus, equipment, parts, attachments, and accessories in both still capture and motion capture photography. Also covered are photocopy and microfilm equipment. 

Shape of the Industry – Industry as a whole is currently down in the market. Industry statistics are; Price/Earnings – 70.5, Net Profit Margin – 8.6%, Return on Equity – 18.1%. GoPro is currently down 1.85% in the market (Yahoo Finance, 2015).

Development of the Industry – In 2006, GoPro was the breakthrough technology that opened up a whole new industry known as Wearable Photo/Video Capture. The first piece of technology was called GoPro Hero. Since then, multiple companies have put out products to compete in this industry. 

Marketplace 

GoPro is in the wearable technology and camera marketplace. GoPro is arguably the most successful and recognized brand in the world of consumer wearable video cameras. However, the wearable technology market is more than just sports cameras. Currently, this market consists of subcategories: action cameras, such as GoPro Hero C3+ and Garmin VIRB, Law enforcement wearable body cameras, such as Taser Axon, connected personal wearable cameras, such as MeCam and smart glasses, such as Google Glasses.

Current Condition of the Marketplace

According to PRNewswire, “The global wearable technology ecosystem's value was estimated to be more than $4 billion as of 2012, and is expected to reach $14 billion by 2018, growing at more than 18% from 2013 to 2018” (PRN, 2014). The current market for wearable technology shows significant promise and the conditions are predicted to continue improving in the future. 

Changes in the Marketplace 

There is an increasing demand and growing consumer adoption for wearable electronic devices. As for GoPro, this particular product has increased significantly in the last year and will likely continue in an upward trend. “GoPro's shares shot up 9.8 percent in extended trading on Thursday Feb 5, 2015. The stock has been on a tear, having doubled since its market debut in June. The company shipped 2.4 million cameras in the fourth quarter, helping boost revenue by 75.4 percent” (Patnaik, 2015).

SWOT Analysis

SWOT Analysis

Strengths

Experience selling: In 2013 alone, GoPro customers uploaded 2.8-years’ worth of video featuring GoPro in the title, according to the company’s S-1 filing. Each video serves as a customer testimonial, giving potential customers millions of reasons why they should buy GoPro’s cameras

Product: Strong, durable cameras that can withstand extreme climate and ruggedness

Brand power: It became better known as an adventure sports brand than as a camera manufacture.

Weaknesses

Product-oriented sales: In its S-1, the company admitted that it depends on camera sales for substantially all of their revenue, and any decrease in the sales of these products would harm the business.

Lack of market: GoPro's biggest weakness is its lack of competitive barriers. Research firm IDC estimates that GoPro has a 47.5% market share in the action camera market, but the market is still young and fragmented. This means that smaller players will constantly try to launch cheaper devices to chip away at GoPro's market.

Service: GoPro is starting to turn itself into a media company. GoPro hopes to begin making money not just on cameras, but on the brand, too. To avoid saturating the market, GoPro launched the GoPro network but it is relying heavily on social networks and has to split its revenue with those partners.

Opportunities

User friendly software: While free editing software is the type of benefit that you get with GoPro, it’s also kind of complicated. Although the app does a decent job of walking you through basic steps, it’s not as easy as alternative editing software

Needs to cut cost to remain competitive: To preserve its margins, it needs huge manufacturing operations to produce more cameras quickly and cheaply. The company's bottom line can't hold up unless it cuts costs through major alliances with giants like Foxconn.

Threats

Growing competition: Garmin, Sony, Polaroid, HTCs

Substitute products: smartphones, tablets, hand held camcorders

Price: slightly higher than the competition and substitute products

GoPro Company Overview and Profile

GoPro

Product Overview

GoPro is a company, which offers a series of unique video capturing cameras and accessories. GoPro has established a brand which differentiates its line of cameras from those of competitors’. The GoPro camera series offers a multitude of features from incredibly high resolution and frame rates to waterproof durability. The company is the first of its kind in many ways, including having won an Emmy award for high quality performance video footage. The GoPro series is a favorite among athletes, adventurers, and anyone hoping to capture exciting footage in a unique way.

Product Profile

GoPro action cameras are distributed in 90 countries around the world, mostly using a distribution network outside of the United States. GoPro works with three general classes of retail trade; specialty retailers, such as surf, bike and dive shops that do not traditionally sell electronics, sporting-goods retailers, including Sports Authority, Dick’s and Academy, and traditional CE retailers, such as Best Buy, Target, and Amazon. (Tarr, 2013). The GoPro is currently in its growth stage of the product life cycle. Growth is the stage where a company starts to see improved sales and revenues due to consumer acceptance of a product. During this stage, it is essential for GoPro to educate distributors to gain outlets to sell its products to a larger consumer base.

Company Overview

GoPro headquarters are located in San Mateo, California. There are currently nine subsidiaries located in The Cayman Islands, Hong Kong, China, Germany, Brazil, The Netherlands and The United States. (SEC, 2015) GoPro’s products are sold through more than 25,000 stores in over 100 countries worldwide and through GoPro.com. Nick Woodman founded Woodman labs in 2001 and later changed the company name to GoPro in 2004. What began, as an idea to help athletes document themselves engaged in their sport has become a way for people to document themselves engaged in their interests, whatever they may be. GoPro has enabled consumers from all over the world to capture and share their passions. The company’s mission is to enable people across the world to share their lives through incredible photo and video footage. They aim to create the world’s most versatile cameras and to continue to inspire technological innovation and meaningful experiences. “The world’s most versatile cameras are what we make. Enabling you to share your life through incredible photos and videos is what we do” (GoPro, 2015).