Video Case 10: GoPro, Inc Case Study

For this assignment I would like you to explore Video Case 10: GoPro: Making All of Us Heroes with Exciting New Products. This case study is located on pages 285-287 of the Kerin, et al. text. (If page numbers are not exact the case study is located towards the end of Chapter 10).

This case describes the new product development process at GoPro, Inc., a producer of action cameras and video-editing software. Its product line includes a variety of cameras, mounts, apparel, a drone, and a 360-degree six-camera array that are sold through retailers such as REI, Best Buy, Target, and on the GoPro web site. You can explore the product line at www.GoPro.com.

To continue with the case study, I would like to ask you to thoroughly review Chapters 9-10 in the text. In your answers, you are supposed to demonstrate that you understand the theoretical concepts introduced in the text and can apply them to a real-life situation presented in the case. Please pay particular attention to the use of professional terminology.

Recently, GoPro’s growth has slowed as competitors such as Sony, Garmin, and Polaroid entered the market with lower priced alternatives. GoPro, however, has a plan to renew its growth. Visit the Go-Pro Youtube channel to investigate GoPro ads, videos, and user generated content

Once you have done all that prepare an essay that addresses the following:

Compose an introduction that identifies the key market issues in the case.
Describe the execution of the new product development process at GoPro.
Answer ALL the questions at the end of the case. Your answers must be thorough. Questions:
1. What are the points of difference, or unique attributes for GoPro products?
2. What are GoPor’s primary target markets? How does content marketing influences these markets?
3. Describe the new-product development process used at GoPro . What are the similarities and differences to the process described in Figure 10-30 (***I will download the figure 10-3 in additional materials)
4. Which of the eight reasons for new-product failure did GoPro avoid to ensure the success of its products?
5. Identify one new-product idea you would suggest that GoPro evaluate.
Provide a conclusion that summarizes how GoPro’s product development strategy resolved the market issues.
Once again, it is critically important that you reference relevant principles and concepts. Use other sources as needed.

Assignment Instructions
The intent of the written assignment is to provide an opportunity to more fully analyze marketing theories and techniques, discussed in the textbook and other sources. Do not spend any time on describing the company or retelling the case, this will not give you any points.

Be sure to cite the textbook and other sources correctly, so that your academic integrity is not called into question. Your assignment is expected to be 2,500-2,800 words (7-8 pages, 12 point font, 1.5 line spacing). Please do not forget to add a title page and a list of works cited. If you use illustrations or statistical data, you may need to create an appendix. The essay should be well written and organized, in proper format (APA, MLA or Chicago), using proper sentence structure and spellchecker.

ANSWER

Case Study: GoPro, Inc.

Introduction

The global photographic equipment and supplies sector has undergone a series of transformations that have had a significant impact on the consumer perspective towards different products and services offered by the industry. Currently, the modern consumer has high expectations from technology firms because of the gains that have been witnessed in the recent past regarding the ability of corporations to address underlying and emerging needs. In this case, GoPro is a technology firm that manufactures action cameras linked with various mobile apps and a video-editing suite. GoPro’s ability to differentiate and add value to its product, action cameras, has contributed largely to the firm’s growth over the years. The photographic equipment and supplies industry is largely driven by innovation and low-pricing strategies from other industry players, an aspect that led to the stunted growth witnessed by GoPro. Therefore, examining GoPro’s product differentiation, its innovative practices, and new-product development process will identify the approaches that can be used by the firm to regain its position in the competitive business environment.

The Points of Difference and Unique Attributes for GoPro Products

After reading GoPro’s company history, one will realize that the firm offers consumers the best quality action cameras that allow individuals to capture their memories and store them for future reference. Analyzing the features of the first GoPro Camera will reveal the significant strides that have been made by the corporation in its ability to produce viable products, which address consumer needs and expectations. Importantly, the first GoPro action camera was a big gadget with a plastic housing attached to the wrist, allowing individuals to capture their activity stress-free. However, the premier product was soon replaced by the Digital Hero camera, which provided users with 10-second silent VGA videos (Magistretti, Dell’Era, & Verganti, 2020). The development of subsequent action cameras focused on providing users with wide-angle coverage, audio capabilities, and time-lapse attributes, which are suitable for the sporting environment. For this reason, GoPro products set the stage for the photographic equipment and supplies sector with innovative designs that influenced the perspectives of consumers towards action cameras.

Over the years, GoPro has focused on building its brand awareness by making consumers its best marketing agents. Importantly, the marketing strategy adopted by the technology firm has centered on the product unlike celebrities, who distract consumers from understanding the features associated with a given brand. Currently, consumers recommend GoPro action cameras to their family members and close friends because of their unique experience using the gadgets. However, GoPro’s product development process succeeded because of its ability to meet consumer expectations in their immediate environment. Given the changing nature of individuals, GoPro has adapted to the changing times and succeeded in its ability to incorporate certain aspects that have played a significant role in shifting the market dynamics to favor the firm’s product line and innovative designs.

GoPro’s Primary Target Markets

GoPro’s primary target markets comprise professional and leisure athletes, travelers, and photographers between 18 years and 35 years. It should be noted that the young consumer market ventures in breathtaking activities compared to the elderly population group, who are likely to engage in conventional activities because of their perspectives towards life. Notably, the young consumer market is explorative, an aspect that allows them to capture breathtaking and unthinkable moments that people would have challenges acknowledging their authenticity if they were not on camera (Rahman & Sherman, 2019). The stories told by these primary target markets have played a significant role in complementing GoPro’s marketing agenda. Looking at GoPro’s action videos on YouTube, one can familiarize themselves with the creative and unique storytelling abilities manifested by the youthful consumer market. Given their ability to engage in active sporting activities, GoPro positions itself as the strategic provider of action cameras that can help individuals capture mindblowing memories.

Currently, the technology firm has expanded its scope to incorporate parents, animals, and other population groups such as children. Using the action cameras on children’s playgroups, the company plays a significant role in sharing the child’s world, enabling other population groups to connect with their perspective. Unlike adults, children cannot create content using cameras because of their limited understanding of camera movements and inability to make informed decisions (Lin, Swarna, & Bruning, 2017). However, GoPro’s involvement in children’s activity has exposed the world to raw content that highlights the thought process of children and their perspectives towards life when exposed to difficult scenarios in their surroundings. From this realization, the firm’s target market has grown over the years because of the innovative features that allow individuals to showcase their perspectives to the world. Hence, GoPro’s target audience consists of a team of believers united by the innovative designs and features of the action cameras that create unique images by capturing moments.

The New-Product Development Process

New-Product Strategy Development

In this stage, GoPro evaluates the consumer market to identify a growing need among individuals that can be satisfied using its different products. From its analysis, the firm embarks on a single issue that can be resolved using innovative features and designs to meet the growing market.

Idea Generation

According to the case study analysis, the firm relies on unbelievable ideas from its employees and the formal approaches that demonstrate the need to adopt certain strategies, which influence the changing needs of individuals in their immediate environment. This way, the firm can combine the unique thoughts and assess their feasibility using the formulaic method, which yields positive outcomes.

Screening and Evaluation

In this process, GoPro evaluates the two ideas and examines their ability to complement their influence on its performance in the business environment. Importantly, GoPro performs both qualitative and quantitative assessments before making any decisions regarding the ideas.

Business Analysis

After performing an extensive analysis on the ability of the generated ideas to yield desired profitability, GoPro conducts an intense business analysis, which involves shorting its existing products. The approach, commonly known as cannibalism, prepares the firm from any pressure induced by other industry players, allowing it to accomplish its desired goals and objectives.

Development

After identifying the profitable nature of the new product, the company introduces prototypes that allow its decision-makers to visualize the finished item and its ability to adapt to the changing business environment. Functional prototypes are approved for development after receiving the much-needed assurance from the relevant parties.

Market Testing

The first audience for testing GoPro’s products is its employees who utilize the finished products before conveying any anomalies to the engineering department. Subsequently, GoPro engages its existing customers who experience the unique features of the new product before being introduced in the market.

Commercialization

Introducing the product to the market is usually the final step, which allows GoPro to connect with its primary target audiences who endorse the brand because of the incorporation of feedback acquired during the market testing phase. Importantly, different mediums such as social media and the traditional channels of advertising are used to engage consumers from different geographical locations and sharing their experience on the firm’s social media timeline.

Reasons for New Product Failure

When introducing new products in the market, firms are encouraged against making mistakes that can compromise their overall image and nature of relationships with consumers in their immediate environment. Some of these reasons for product failure include irrelevant differentiation, poor product quality, and the unavailability of auxiliary parts (Rajalas & Aaltonen, 2020). When GoPro introduced its new product in the photographic equipment and supplies industry, the firm avoided the afore-mentioned reasons for new-product failure. The firm ensured that it provided consumers with a unique action camera that captured memories stress-free, allowing individuals to manifest their excellence and greatness with the world. Likewise, the firm ensured that the action cameras met the required product quality, which would meet the changing needs and expectations of consumers in their surroundings. Likewise, GoPro developed a complimentary mobile application and a video editing suite in its subsequent products, enabling consumers to record and edit their captured content within the firm’s framework.

By avoiding irrelevant differentiation, GoPro developed a simple product that could perform more, eliminating the role of other camera models that are used to capture moments in active sporting events such as surfing and cycling among others. The minimalistic approach provided GoPro with a competitive edge, which made it the official manufacturer of action cameras in active sporting events. Even though the market is saturated with products from corporations such as Garmin and Sony, GoPro has made a significant mark in the photographic equipment and supplies industry because of its connection with consumers. On many occasions, the firm purchases consumer-generated content to share the raw storytelling abilities of individuals. This move has enabled the firm to form meaningful relationships with its different target audiences in the competitive business environment.

New Product Ideas that GoPro Should Evaluate

In the wake of police brutality in the U.S. and other parts of the world, many police departments are purchasing body cameras to capture the interactions between law enforcement agencies and the public. In the past, lack of evidence from the interactions has led rogue police officers to escape scot-free, piling the public agitation, which hinders the relationship between law enforcement agencies and the public (Braga et al., 2018). However, the cost of manufacturing body cameras, as seen from different police budgets on the critical tool is expensive, compared to the current cost of GoPro action cameras in the business environment. By developing advanced security cameras, GoPro can position itself strategically in the market and benefit from the growing opportunity induced by the demand for action cameras in different police departments across the U.S. and beyond. Therefore, venturing into the market will provide GoPro with a competitive edge that will outshine the efforts of its competitors to dominate the market.

Even though the new product idea might interfere with GoPro’s market reputation, the aspect of having an affordable security camera with a high resolution will equip the firm with the much-needed sustainability to overcome unforeseen challenges in the market. In many instances, firms undergo various challenges that hinder them from realizing their desired outcomes. Essentially, focusing on a single market might affect GoPro’s ability to accomplish its expected goals and objectives in the long run. From this observation, venturing into the production of security cameras provides GoPro with an opportunity to diversify its product differentiation, which influences outcomes in the business environment. Likewise, the firm’s ability to produce low-cost security cameras will come in handy when scouting for affordable police cameras in the U.S. and beyond. Given its reputation in the market, GoPro can achieve the desired profitability status by embracing the idea.

Conclusion

Examining GoPro’s product differentiation, its innovative practices, and new-product development process will identify the approaches that can be used by the firm to regain its position in the competitive business environment. In this regard, the firm has developed a series of innovative products with appealing designs and features that influence people’s perspectives towards capturing memories. Apart from associating with professional and leisure athletes, GoPro has contributed positively to societal change by showcasing the thought process of young people who are involved in different activities. For instance, the firm has allowed children to tell their stories by capturing their playgroup engagements, an outcome that would have been impossible to achieve using other camera devices. For this reason, the development of innovative products and forming meaningful relationships with consumers has provided GoPro with a chance to influence outcomes in the photographic equipment and supplies industry.

References

Braga, A. A., Sousa, W. H., Coldren, J. R., & Rodriguez, D. (2018). The effects of body-worn cameras on police activity and police-citizen encounters. The Journal of Criminal Law and Criminology (1973-), 108(3), 511-538.

Lin, H. C., Swarna, H., & Bruning, P. F. (2017). Taking a global view on brand post popularity: Six social media brand post practices for global markets. Business Horizons, 60(5), 621-633.

Magistretti, S., Dell’Era, C., & Verganti, R. (2020). Look for new opportunities in existing technologies: leveraging temporal and spatial dimensions to power discovery. Research-Technology Management, 63(1), 39-48. https://www.tandfonline.com/doi/abs/10.1080/08956308.2020.1686292

Rahman, N. A. B. A., & Sherman, H. (2019). GOPRO INC 2017: Failing With Initial Strategy or Just Poor Execution? An Illustrative Case Study With Analyses. An Illustrative Case Study With Analyses (March 1, 2019). American Based Research Journal, 8(03). https://www.academia.edu/42630489/GOPRO_INC_2017_Failing_With_Initial_Strategy_or_Just_Poor_Execution_An_Illustrative_Case_Study_with_Analyses

Rajala, T., & Aaltonen, H. (2020). Reasons for the Failure of Information Technology Projects in the Public Sector. The Palgrave Handbook of the Public Servant, 1-19. https://link.springer.com/10.1007/978-3-030-03008-7_78-1

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