Different price points
One of GoPro’s (GPRO) top priorities for 2018 is to launch products at different price points to improve its device sales and return to revenue growth. We saw GoPro’s product line-up at the end of the first quarter, and this line-up has resulted in increased sell-through. In 2017, GoPro only had one HERO camera.
Further, its HERO5 Session camera, which was priced at $299, didn’t generate the expected sales, and it’s now been discontinued. GoPro has also reduced the prices of its older cameras by $100. The company is therefore optimistic about device sales in 2018 and 2019. GoPro has stated that it aims to enter 2019 with the appropriate channel inventory for the first time in several years.
In the table above, we can see that GoPro managed to reduce its inventory days from 126 in the first quarter of 2017 to 78 in the first quarter of 2018.
Investment in marketing and analytics
GoPro also wants to increase its investment in marketing to grow its brand and acquire new customers. GoPro has stated that any savings in operational expenditure will be used in international marketing.
As seen earlier, GoPro is looking to leverage the huge amount of data it has collected to understand consumer behavior and enable business planning. Data analytics is also expected to drive product decisions and price points for GoPro.
GoPro also aims to create an ecosystem to enhance the camera, application, and cloud experiences for customers. The company is looking to expand the value proposition of its subscription offerings to attract new customers and engage its current global user base.