Market Segmentation Strategy Decisions

Question: Discuss about the Market Segmentation Strategy Decisions. Answer: Introduction: Market segmentation is a process through which an organization divides the groups of buyers according to the marketcharacteristics and tendencies. The segmentation of the GoPro Camera is based on some factors- Demographic, Behavioral, Psychographic and geographical. Demographic segmentation signifies that the sales of the product depends on the type of consumers like GoPro targets men and women of middle age of 18-55years age and are interested in shooting their videos and desires to take close view of their activities. Manufacturing of products by targeting customers is based on the lifestyle, profession and occasion in the Psychographic segmentation. These people are sportspersons, skiers, divers, bikers, base jumpers and car racers by profession and can be used in any kind of sports and adventurous occasion where taking camera operator is not practically logical. Behavioral segmentation is based on the advantage of their small size and light weightiness and even can be fitted in t he wrist and the helmets of bikers. In context of the Geographical configuration, it is mostly inaugurate their stores in United States as this country emphasizes more on the sports events. he concerned organization also makes their niche segmentation on the social networking sites like YouTube and Instagram and Facebook. This depicts their User-Generated Content Strategyand it is evident that in the year 2014, GoPro reaches to a level of over 2,180,000 YouTube subscriber having the intentions to win the $1000 prize money and there are over 6000 daily uploads on YouTube, which makes the concerned organization to be the fifth biggest brand on YouTube. In addition to that, they also have over 7,680,000 Facebook fans and over 2,775,000 Instagram followers. Positioning Strategy GoPro organization implemented their marketing segmentation strategy that enable the concerned organization to best communicate their products' attributes to their target customers and also satisfy the competitive pressures along with carefully crafted key messages. Low-price strategy- The price of the camera is affordable like $200-$400 per camera, which is affordable with respect to their competitors. Camera Specification- GoPro Cameras are designed with mounting and fixtures that can withstand any high altitude temperature and high definition pictures can be captured. These cameras are lightweight, durable and malleable. GoPro camera has much better understanding of ISO and image depth that makes them unable to shoot under tough situation and weather like under the sea over the high altitude mountains. Competitors market value- Nikon, Olympus, Canon and Panasonic are competitors who manufacture camera that can shoot other video and natures click; however, GoPro emphasizes more on the camera that is designed to shoot nearby scenes that cannot be possible with other cameras. GoPro camera made a significant sale in their first year of sales that is of $350,000. Other competitors focus on the traditional market group but GoPro targets the sportsperson that provides the concerned organization a competitive advantage. Promotional strategy- In order to increase the loyalty of the brand, GoPro have implemented a strategy that of the video shot by their camera by an individual gets 1 million likes in YouTube then the person will get an attractive amount of $1000 (From the case study). They also have their fan following on Facebook, Twitter and Instagram. Numerous loyalty programs and membership events are also conducted. The target markets as earlier defined are the sportsmen and women, skiers, scuba divers and mountaineers. Geographic segmentation comprises of the marketing mix strategy through which more customers can be aware of their products and more profitability can be attained and is comprises of- product, price, place and promotion. GoPro targets all gender people and their most of them prefers social networking sites and loves sports event. The education also plays a crucial role in the sales of their products and the target people that are being targeted are highly educated like high school or university graduate. Those individuals, who will successfully formulate a video by using their GoPro cameras their video, will be published in their Video of the Day on their website. Moreover, they also initiate the programs called GoPRo Hero 3+ Adventure Series where video shoot by this series camera are selected for the prize. In the year 2015, there are 475 Ambassadorsfor the brand GoPro. They have a huge range of products like GoPro HERO 4, GoPro HERO 4 session, GoPro HERO 4 Black, GoPro HERO 4 Silver, GoPro HERO 4 Standard edition, GoPro HERO 4 Silver Surf and other products having 4k@12fps resolution with an LCD screen. Competitors of GoPro do not match the price parity nor do they match them in the size and light-weightiness. There are certain features through which customers can select GoPro cameras over other DSLRs- High speed movies, external mic jack and connectivity with smart devices, thinner and less weight, waterproof and shockproof guarantee and wide focal length. High Speed movies- GoPro have the speed of 120fps in their silver edition cameras while Nikon do not match this speed. However, with respect to Canon, GoPro records the movie with a speed of 240fps. In the context of the higher resolution movies, where they offered 4000@12fps compared to 1080@30fps in Cannon 700D. External mic jack and connectivity with smart devices- This facility is only available in GoPro Cameras and the external device like Smartphone can be used as a screen and trigger for creative shoot. Thinner and less weight- GoPro Cameras is thin as 3sm while Nikons width is 7.4cm. Moreover, GoPro cameras weights only 88 grams even the smallest DSLR that is Canon 100D also weight five times more than the GoPro without its lens. The cannon camera is almost approximately 9.7x larger in size than GoPro camera. Thus, these cameras are easy to carry and easy to handle while an individual is on their trekking or travelling through the oddest roads. Waterproof and shockproof guarantee- GoPro cameras are waterproof as they are specially designed for sports and adventurous events. The benefit of the waterproof camera is that these cameras are also used for is ideal for your swimming pool and beach activities. Wide focal length- Professional event camera operators always look for a wide focal length camera so that a complete image can be shot. GoPro camera has a fisheye lens that can take shots approximately to 170 degrees. This lens can easily be transferred into ~12mm curvilinear lens. One of the competitors of GoPro is the Rokinon's that sells this facility in their camera for $500 while GoPro camera can be attained for $400. Customer Retention Programs- Apart from GoPRo Hero 3+ Adventure Series they have also initiate Lifetime Membership Program, which is based on the promotion of their new brand- GoWorx. These lifetime programs include Welcome Kit including a GoWorx T-shirt, free goodies and stickers. These members always get a 15% off all GoWorx brand products so that armature photographer gets an opportunity to create killer content. Moreover, HookUp Rewards Programis also a new entry, where members get automatic entry into every single GoWorx Giveaway for the lifetime. 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