GoPro (Firm) -- Management, New products, Technology -- Marketing, Strategic planning
The most recent acquisition of the OBSBOT Tail Artificial Intelligence camera from Kickstarter funded OBSBOT company by GoPro Inc. enables GoPro to enter a new product segment and market segment and supports the GoPro long term strategy of growing customer base beyond the traditional rugged, outdoors, action videographer and simplifying the experience of taking and sharing videos.
GoPro introduces SuperSelfie - The Smartest Way to Film Yourself! This beautiful and compact, high quality imaging camera is built upon artificial intelligence and allows the user to seamlessly create 360 degree videos of themselves doing the activities they love without ever going out of frame and by only using hand gestures. SuperSelfie can be taught how to recognize subjects, react to gestures and can virtually eliminate the need for editing a video before posting.
After market research and interviews with potential segments and possible customers, the initial offering target segment will be technology enthusiast families, willing to spend money on new devices, with children between 10-18 that actively participate in sports or competitive activities and who are active posting to social media sites such as Instagram, Snapchat, and YouTube.
With a Service Addressable Market potential of 3 million units, and realizing a typical GoPro new product launch market share of 20% it is expected that 600k units will be sold in the first year (2019) at a retail price of $499. Revenue in the first year is expected at $300 million with a 40% margin and $120 million gross profit. Over the next two years, adjacent market growth will increase market share by 10% and revenues are planned for $644 million with $225 million in profit even with a $70/unit price drop to fend off competitors expected to enter the market.
Current competitors are not currently offering a similar product matching the value proposition and features of SuperSelfie. These competitive products are either wearable cameras, action cameras, or smartphones and do not provide the same blend of high quality, ease of use, image stability, 360 degree, and AI supported action tracking features as found with SuperSelfie which allows the product to be positioned in a unique segment.
Leveraging the high volume manufacturing experience, robust supply chains, expansive distribution networks, the quality brand image of GoPro and the initial offering price of $499 will deliver robust margins that can further support the product expansion and adoption before price cutting to secure market share.
Distribution management will be executed with existing GoPro channels of retail sales such as Best Buy, Walmart, and Target, online sales directly from gopro.com, and online marketplaces such as Amazon.com. The communications strategy will be a multi-tiered approach based on a strong print and online advertising, utilizing sponsored online influencers on YouTube and other Social Media, hosted online video communities including sponsored GoPro competitions, technology trade shows and adjacent activity events, and via traditional sales personnel methods.
Disclaimer: OBSBOT Tail is the product of a Chinese startup. For the sake of this Marketing Plan we have made the assumption that GoPro has bought it out and integrated into its product line.
Trotter, Bryan; Smith, Buck; Rawar, Elia; Karami, Nasim; and Matthews, Tina, "SuperSelfie Marketing Plan" (2019). Engineering and Technology Management Student Projects. 2258.