When GoPro is taken into consideration, marketing has largeimpact in the success of the company.
The 4P analysis can be done as below.Considering the Product,the characteristics of the product or the brand are taken to consideration.Before the GoPro was introduced still cameras, and mobile phones for video andGPS was available but for activities like skydiving, water rafting and etc. themobile phones and still cameras were not sufficient. Nick Woodman then decidedto build something which eventually developed in to the GoPro to capture realtime scenarios. Product decisions should be made using market researchobtaining consumer feedbacks (through blogs, tweets and etc) and modifying andadding features to the products. GoPro mainly produces cameras but it also producesother related accessories such SD cards, spare batteries, drones, grips andetc. The Price ofproducts depends on the type and quality of camera.
For example – The qualitiesand features of the GoPro HERO5 Black, GoPro HERO4, GoPro HERO5 Session differ.Therefore the prices vary from Hero 3 White Edition which the cheapest at£199.99 to the most expensive is being Hero 3+ Black Edition at £359.
99. (GoPro, 2017)The Places thatdistributes the GoPro are mostly online. It is important to make sure that thewebsite is easily accessible, if it is user friendly and attractive and a quickstep process for purchase. GoPros are also available at easy access stores atelectronic stores such as Walmart, Best buy. A store locator is also availableat GoPro for convenience.
(GoPro, 2017) Thus, the distribution of the product used byGoPro could either be selective or exclusive distribution. For the GoPro selective distribution is moresuitable as the product is having a certain brand imagine but is not asexclusive to be under exclusive distribution like Rolex, Mercedes and etc.Selective distribution means the products are sold in limited number of outletsin a given area in order to maintain the image of the product. When promotionsare taken to consideration, GoPro provides seasonal promotions mainly publishedon the website. When it comes to promotions, promotions mix is used.
Itincludes Advertising, Sales promotions, Personal selling, Public relations anddirect marketing. . The objective of the above is to inform, persuade andremind the consumers. This is done through the AIDA model by companies wherethey demand the attention of customers, get their interest, create desire andask for action. (Priyanka, 2013) But when it comes to GoPro it is exceptional, because the marketingis majorly done through customers where they themselves promote the GoPro onsocial media such as Facebook, Instagram, twitter and YouTube by tagging GoProwhen posting videos. Due to the unique characteristics of the GoPro the companydoes not necessarily need work on the AIDA model but the consumer (currentusers of GoPro) does it for the company creating need for new consumers to trythe GoPro and experience.
Apart from that also if registered to the website updatesmay be sent through email to keep the consumer updated on the any addedfeatures, new products available and etc.All the above 4P factors taken to consideration show howGoPro uses the marketing mix to establish its brand. Task3 – Company’s global distribution challenges in penetrating Asian marketsDistribution is the process of making a product or a serviceavailable for the consumers who needs. There are three major approaches for thesame.
They are Indirect distribution, direct distribution and collaborativedistribution. GoPro being a company that is internationally recognized needs tobe distributed globally, and when entering into Asia market there are differentaspects that need to be looked into because the distribution structures, thelegal and political aspects are different in passing the goods from the producerto the consumer. Also the channel structures become advanced with thedevelopment of the countries economically and politically. (Delaney, 2013)Considering the GoPro entering into the Asian market variouschallenges are faced. In Asian market, China and India are the largest andpopulated countries. The potential of consumer usage of the GoPro is higher.Entering into the China market is time consuming as the law approval may eventake months.
According to Business insider (Business Insider, 2018) it is needed to havea separate administrative team to handle the legal work in China tosuccessfully carryout a business. Thus, Legal framework, Tariffs, Taxes,Exporting regulations, duty and etc are applicable.Further the culture, language barriers are challenges forthe same as not all consumers are fluent in English. In china it is said to bedifficult to find a person who knows Chinese and English language to have abusiness negotiation. Therefore it would be necessary to have a person withinternational aspects to bridge the cultural differences of the Chinese andwestern culture. Thus, it would be costly. (Business Insider, 2018) In dealing with the Legal aspects Collaborative distributionof joint venture method can be taken to consideration.
This is a legal boundagreement between two or more entities to carry out a certain project. Throughthis it has the benefit of having a local partner’s knowledge on the political,legal systems, language and culture and the countries business system. It ispossible to then share the market and development costs. But in doing so, thereare risks involved. Because having a joint venture is to give certain amount ofcontrol to the partners. Therefore it could lead to conflicts in controllingthe firm based on their ideas.
Indirect is the selling of product being passed on to theconsumer through additional steps via distributors or retailers. The secondmost used channels by GoPro are through retailers such as Walmart, BestBuy,Target and etc. When entering into the Asian market use of indirect gives theability for the GoPro enter to a wider market and establish the brand. Theycould also share the expenses in marketing as the intermediary is alsoinvolved.
But on the other hand it has issues as the market being large and thecontrol of the GoPro company to it’s product will be lessened. The GoPro willhave to face conflicts in managing the support cost and pricing margins. Apart fromthat it’ll also create the less brand loyalty to customers when selling througha retailer as GoPro would be another one of many other similar products. It mayreduce the brand image of the GoPro.Thus considering the distribution methods of Direct, Indirectand collaborative the best method of entry to the Asian market would be to usedirect distribution. Direct distribution is when the producer sells the productdirectly to the consumer without any intermediaries. According to (GoPro, 2017), Currently based onUSA market 1.
2 Million consumers approach online for purchase which isdistributed directly. Thereby, considering China and India as potentialconsumers. The GoPro can mostly sell online where the company can save themiddlemen expenses and commissions and moreover the shipping cost directly tothe customers would be less costly and can be informed to bear by customerhimself. By having direct communication, better customer relationship andsupport can be provided with the best knowledge from the experts himself.
Thebrand loyalty would be better as it would be a two way communication and directfeedback can be obtained. Also the company itself can have few subsidiary outlets inthe Asia most potential companies (China and India) Even though having legalframework and documentation process delays, the GoPro is able to build directrelationships and confidentiality and trust with consumers which will benefitin the long term creating brand loyalty. Task 4 – Recommendations of appropriate strategiesGopro can adopt to face future challenges from cheaper alternative brandsentering the market GoPro is a well-known company for producing number actioncameras that can capture real-timelife experiences and give the ability to consumer to share the experiences.Costing around $200 the product is unique and recognized globally and used bymany to collect memories of day today experiences, travelling and etc.Considering the demand and use of the product there will be different companiesreplicating the same. For example – China may produce similar product to servethe same purpose for a cheaper price.Therefore, there will be challenges faced by Gopro. Whenthere are cheaper alternatives the consumer base will divide and result in areduction of customer base.
Thus, the revenue of the company will reduce. Whenother companies produce similar products, the demand of the brand will bereduced. This will result in increase of consumer bargaining power wherecurrent consumers of GoPro may bargain as cheaper alternatives are available inthe market. Therefore, with the development of technology it is important forthe GoPro to gain competitive advantages to overcome the challenges.