Marketing and Strategy Market Segmentation

Question: Discuss about the Marketing and Strategy for Market Segmentation. Answer: Introduction: It has been found that the company GoPro targeted mainly young, active and extreme sports enthusiastic customers. It has been found that, the company has mainly positioned its camera for audacious and passionate people who are keen to share their exciting features with the world. It includes adventurous dreamers, surfers and sky divers. The company mainly competes in the action cam marke with the help of niche segmentation strategy. According to the manager of the company GoPro Companys offer and image can be developed in such a way that it can occupy a distinct and value place in the target customers mind. The anatomy of brand positioning for the company GoPro are brand heritage, brand domain, brand personality, brand inflection, brand assets and brand value. The products of Gopro are mainly developed for extreme sport heritage (brand heritage). The company characterized the customers according to their passion and habits. The company has targeted its products for a specific buying situation If you go on a trip or adventure, how would you immortalize those precious moments (Gopro 2016). Mainly two segments of customers are targeted by the company. Extreme sports people and enthusiastic people who are eager to share their exciting experiences. Dolnicar Sara and Leisch (2014) mentioned that brand value of the company GoPro can simulate passion and excitement among consumers. According to the manager of GoPro We are passionate about the idea of what we can actually do in this world. Be a Hero! Versatility and durability of GoPro products help it to get best position in the market. It helps to satisfy traditional values of love, freedom, sharing and modern values like entertainment. In order to discuss the brand inflection the manager of the company stated It can improve your social status and help you to fulfill your dreams. Our products can help our customers to become master of our life and help them to enjoy every second. Sincerity, excitement, competence, sophistication and ruggedness are the brand personality of the company that can help its products to get sustainable position in the market (Del Vigna 2013). In recent years market segmentation has become an important part of marketing strategy for all companies. GutiĆ¡ Dragutin and PetriĆ¡ (2012) stated Market segmentationis amarketing strategywhich involves dividing a broadtarget marketinto subsets ofconsumers,businesses, orcountries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them. Market segmentation strategies are generally used to identify and further define the target customers, and provide supporting data for marketing plan elements such aspositioningto achieve certain marketing plan objectives. Businesses may developproduct differentiationstrategies, or anundifferentiated approach, involving specific products orproduct linesdepending on the specific demand and attributes of the target segment. It has been fund that there are mainly five types of market segmentations strategies are used by different companies. They are li ke Geographic, demographic, behavioral, psychographic and occasional segmentation. It has been found that the company GoPro mainly focuses on niche segmentation or psychographic segmentation. It is often known as lifestyle segmentation (Joppe and Luc 2013). It can be measured by studying Activities, Interests and Opinions (AIO) of consumers. In this segmentation strategy, the company needs to consider how people use to spend their leisure. Dolnicar Sara and Leisch (2014) indicated psychographics as important part of segmentation. Psychographics identify the personal activities and targeted lifestyle the target subject endures, or the image they are attempting to project (Dolnicar Sara and Leisch 2014). It has been found form various research works that the company GoPro mainly targets young, enthusiastic customers, who are extreme sports lovers (Maricic Branko and Djordjevic. 2015). The company develops high quality cameras for audacious and passionate people, who are eager to share their exciting experiences with the world such as surfers and sky diver. The company tries share energy, propulsion and freedom with the help of its brand elements. The slogan of the company Be a hero is meaningful, memorable, likeable and justified with the market segment as this desire transcends categorical and geographical boundaries (GutiĆ¡ Dragutin and PetriĆ¡ 2012). The company has provided different unique features in the products that help the company to establish a strong brand following. They are such as Night mode features for optimal low light performance, digital zooming and high quality microphones. The company mainly focuses on action cameras to position itself against major competitors such as Panasonic, Canon, Nikon and Olympus. The company has captured 90% of the action camera market (Dolnicar Sara and Leisch 2014). The company thrives to become a media company in order to develop a strong ecosystem and thwart off the future competition. There is graph given below to indicate the increase of revenue and number of unit sold for the company GoPro from 2011 to 2014. Figure 1: History of revenue for the company GoPro (Source: McDonald Malcolm and Ian Dunbar 2013) Zervou Anastasia (2013) mentioned that GoPro entered the camera industry, discovering a new market in the needs of consumers who were looking for something that was not yet available. The company has developed a value proposition to establish a meaningful relationship with the customers (Dolnicar Sara and Leisch 2014). The company provides efforts to establish new means to capture personal, amateur and professional experiences in versatile manner. It has been found that GoPro has adopted a sustainable strategy to position itself against the competitor. It has been found that the competitors of the company GoPro are only competing against tangible products (action camera). They are not been able to challenge the company against intangible assets that make the company more desirable. As Joppe and Luc (2013) stated that, switching to competitors product is less desirable for customers as they will lose accessibility to social media platforms, support channels and most of all the online global community that has been established (Dolnicar Sara and Leisch 2014). In order to describe the competitive rivalry, Dolnicar Sara and Leisch (2014) mentioned he competitiveness within the action camera industry has increased; however, there are only a hand full of competitors that can produce the same quality as GoPro. The quality standard within the industry can very well be defined by GoPros innovation that has set the quality standards of all action cameras. Innovation has become the focal point of competition and marketing strategy for the company GoPro (Joppe and Luc 2013). Reference Del Vigna, Matteo. "Financial market equilibria with heterogeneous agents: CAPM and market segmentation."Mathematics and Financial Economics7, no. 4 (2013): 405-429. Dolnicar, Sara, and Friedrich Leisch. "Using graphical statistics to better understand market segmentation solutions."International Journal of Market Research56, no. 2 (2013): 97-120. Gopro,.. "Gopro | World's Most Versatile Camera | HERO4 Black Edition".Gopro.Com. https://gopro.com/. 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