GoPro Marketing Plan Week 3

1. Industry and Marketplace

A. The Industry – Wearable Photo/Video Capture Industry

B. Definition of the 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.

C. 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. *Stats from Yahoo Finance*

D. Development of the Industry – Back 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 new industry. Companies such as; DBcam, Actionpro, HitCase, Polaroid, Morphie OutRide, Blurfix, EPIC, and Sony. Some credit this industry for the idea of Google Glass.

E. The 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.

F. Current Condition of the Marketplace: According to PR Newswire, “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.  

G. 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).

2. Competitive Situation

A. Direct Competitors

GoPro competes directly with comparable wearable technology-based action cameras:

·         Sony HDR-AS30V – Sony’s action camera offers several features and benefits comparable to GoPro’s leading cameras. The Sony HDR-AS30V includes software which helps to stabilize shots and makes pictures more colorful and sharper. Similar to GoPro, Sony offers a wide range of accessories for its HDR-AS30V which allow for unique product line-ups to meet each type of consumer need. However, Sony’s action camera functions more comparably to a standard camcorder with less fine-tuned benefits, though it does come at a lower cost than GoPro’s models (Furchgott, 2014)

·         Garmin Virb Elite – This action camera offers the unique capability of connecting to a heart rate monitor, which might make it a better option for athletes. It also works in conjunction with other products from Garmin, such as GPS systems and sports watches. However, it is larger, heavier, and comes with more set-up and installation complications than known for the GoPro products (Furchgott, 2014)

·         ION Air Pro 3 – This action camera is one of the lightest on the market and offers the feature of vibrating when turned on or off, allowing for users to easily ensure the device is recording mid-action. It also features fewer buttons to allow for easier use in all situations, such as when wearing gloves. However, the Air Pro 3 must be connected to a computer to make any changes to settings and must be connected to a phone or tablet to see footage due to its lack of a screen (Furchgott, 2014)

B. 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:

·         Traditional 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)

·         Traditional 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)

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/

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

Grunin, L. (2015). Best digital cameras of 2015. CNET. Retrieved on April 20, 2015, from http://www.cnet.com/topics/cameras/best-digital-cameras/

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

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

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