Gopro is a market leader of sports camera for many years until Xiaomi Yi camera launched. In March 2015, Xiaomi launched a camera named Xiao Yi sports camera. The camera has similar design of Gopro, and price only for 63 USD. The price beaten the Gopro $130 and made Gopro lost 5% share prices (http://finance.yahoo.com/news/gopro-shares-dip-5-xiaomis-222510720.html). Gopro may lost the market (http://www.cnbc.com/2015/03/02/watch-out-gopro-xiaomis-coming-for-you.html). The article will use the brand management to analysis the two companies on the marketing. Thanks the marketing course by Jason on Northumbria university.
Xiaomi using the Samsung strategy to do brand extension. They use one brand on all unrelated products. The new products are easy to be accepted by customers.
Xiaomi Actually have a video camera named Yi night version security camera. However, the product make customer confused, and many customers just remembered the Xiaomi Yi sports camera.
Gopro branding strategy is using the line extension. The products are all related. The strategy similar with Apple ipod branding strategy. The disadvantage is the Gopro named their camera with Gopro Hero, from Hero to Hero 4. That dilute the brand. Gopro has strong brand awareness than Gopro Hero. Apple line extension strategy on iPod can be successful because Apple is a strong brand. The brand of Apple will increase the confidence of Apple iPod. Gopro is still under developing. According to the Google Keyword Tools, data shows Gopro Hero has less searches than Gopro.
When people talking about the iPod, they know that’s a MP3 player. When people talking about Hero, they will never consider it’s a professional camera.
International Pricing Strategy. Xiaomi is using the international pricing strategy. The low price force the products marked at same price in everywhere.
Gopro uses the same pricing strategy as well.
Price Skim. Xiaomi is a good player, the $63 low price attracted a lot customers eyes. Gopro is a professional sports’ camera that focus on the high end market. However, they are using the used camera to do price skim in the Amazon.
The strategy is making the brand value down, because customers are using the Gopro to compare with Xiaomi (https://www.techinasia.com/xiaomi-yicamera-review-gopro/). They forgot Gopro is a high end camera, and Xiaomi is a low end camera.
Gopro is focus on the high end sports camera in US.
Xiaomi is focus on the low end sports camera in Asia. Acutely Xiaomi camera is a entertainment camera.
Xiaomi is a formidable opponents of Gopro. Xiaomi still never starting the market development in US due to the barriers. Their sports camera need further R&D to reach the level of Gopro technology. Gopro need focus on own niche market to emphasize the word “pro” in advertising. The marketing strategy cannot use the Gopro to fight Xiaomi. They need another low budget camera brand to stop Xiaomi camera price skim strategy in the low end market. The word “pro” means shock proof, water proof, HD video, and patent. CNET used did a MacBook extreme torture test (https://www.youtube.com/watch?v=d-8jh3TCPb0) to make the macbook differentiate to other PCs. Gopro need the similar strategy to achieve the same market effect as well.