...For exclusive use Great Lakes Institute of Management (GLIM), 2015 9-591-133 REV: MAY 9, 2002 ROWLAND T. MORIARTY Barco Projection Systems (A): Worldwide Niche Marketing On Saturday morning, September 23, 1989, Erik Dejonghe, Frans Claerbout, and Bernard Dursin were drafting a crucial presentation that Dejonghe was scheduled to make to the Barco N.V. board of directors on Monday. As senior vice president and chief operating officer (COO) of Barco N.V., with responsibility for Barco’s Projection Systems Division (BPS), Dejonghe had to respond to a competitor’s recent move that threatened the heart of the division’s sales. Claerbout, the general manager of BPS, and Dursin, in charge of managing Barco’s distribution subsidiaries and coordinating worldwide marketing of projectors, had both worked closely with Dejonghe to formulate the company’s options. One month earlier, the Sony Corporation surprised BPS and the rest of the industry by unveiling its 1270 “superdata” projector at the Siggraph trade show in Boston. At Siggraph, Sony’s product seized first place as the industry’s highest-performing projector from BPS’s BG400. More damaging, the 1270 was rumored to be priced 20% to 40% below the established market price in its performance class. The industry saw the 1270’s positioning as an attempt to widen the market through lower prices. For BPS—a small, batch manufacturer—the 1270’s combination of low price and high performance threatened both to collapse...
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...Part-time International MBA 2007-2008 Assignment Marketing Barco Case Prof. Dr. ir. Marion Debruyne Michel Defloor Kristof Geilenkotten Mark Veugelers Nathan Vastesaeger Wim Van de Velde Barco Projection Systems Division Content Table 1. Brief diagnosis and definition of the main problem 2. Analysis of the main problem 3. Recommendations and justifications a. Product development plans b. Pricing of current products c. Pricing strategy in light of BG800 launch d. Summary 4. References 5. Exhibit 1 6. Exhibit 2 Page 2 of 8 Barco Projection Systems Division 1. Brief diagnosis and definition of the main problem Based on Barco’s commitment to Product leadership as a competitive edge, Barco has chosen a niche market of technically superior projectors. This allows Barco, as a performance and product leader, to charge higher prices than the competition. Sony’s surprise introduction of the 1270 is a clear outpacing attack(1) on Barco’s niche market. The 1270 from Sony is considered technically superior and lower priced, compared to Barco’s planned projectors. Traditionally, Barco has segmented the market for its products on the basis of the scan rate of projectors into three main segments: video, data and graphics. Sony is trying to overcome this segmentation by addressing the data and graphics with one superior product (1270). Barco now has to deal with the following issue: Sony will launch a superior product, forcing Barco out of its technical leadership, and at a lower...
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...Barco Projection Systems (A): Worldwide Niche Marketing Case Write-Up – Decision Case – BPS and its Product Line Strategy: Barco N.V originally started as a producer of radio broadcast receivers in 1934 and gradually made its way to the broadcast monitor and professional video equipment markets. After a global recession that followed the 1977 oil supply shock, the company decided to redefine its focus from consumer markets to industrial markets in order to keep its position in the industry. Dejonghe, Claerbout, and Dursin who were responsible for BPS’s R&D, marketing and sales department, worked closely together on projectors throughout the decade. The second largest division of Barco N.V, Barco Projection Systems (BPS) was formed in the early 1980s to enter the video projection market. It played a key role in the development of niche market and BPS had differentiated its products amongst other competitors in the market by its superior projector scan rates. For example, its most sophisticated product – graphic projectors – had “scan rate of 16kHz to above 64kHz, and accepted input from powerful computer-aided design and manufacturing systems, as well as from video and data sources” (page 3). The brand name was established in a variety of entrainment, training and presentation markets. Despite its 4% low growth rate of worldwide market for graphic projectors, BPS still had most shares in graphics compared to its competitors. BPS’s main competitor – Sony Components and...
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...Barco Projection Systems (A): Worldwide Niche Marketing Case Write-Up – Decision Case – BPS and its Product Line Strategy: Barco N.V originally started as a producer of radio broadcast receivers in 1934 and gradually made its way to the broadcast monitor and professional video equipment markets. After a global recession that followed the 1977 oil supply shock, the company decided to redefine its focus from consumer markets to industrial markets in order to keep its position in the industry. Dejonghe, Claerbout, and Dursin who were responsible for BPS’s R&D, marketing and sales department, worked closely together on projectors throughout the decade. The second largest division of Barco N.V, Barco Projection Systems (BPS) was formed in the early 1980s to enter the video projection market. It played a key role in the development of niche market and BPS had differentiated its products amongst other competitors in the market by its superior projector scan rates. For example, its most sophisticated product – graphic projectors – had “scan rate of 16kHz to above 64kHz, and accepted input from powerful computer-aided design and manufacturing systems, as well as from video and data sources” (page 3). The brand name was established in a variety of entrainment, training and presentation markets. Despite its 4% low growth rate of worldwide market for graphic projectors, BPS still had most shares in graphics compared to its competitors. BPS’s main competitor – Sony Components and...
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...Barco Projection Systems (A): Worldwide Niche Marketing Context Sony (one of the major competitors of Barco) has introduced the 1270 super data projector in the market, announcing better performance and lower prices than the best projector which Barco has currently to offer in the market. Such a move by Sony is a possible threat to eliminate the niche market which Barco has targetted. Barco needs to decide the future course of actions based on the sudden announcement of Sony and react promptly. Strategy options Barco has the following three options as courses of actions to choose from as their strategy in response to Sony's move: 1. Lower prices of BG400 and BD600 to hold on to market share and not give it away to the cheaper Sony 1270 2. Make advances in the already flowing project for BD700 and work on the launch of a digital graphics projector, the BG700 3. Stop projects on developing BD700 and instead start working on getting BG800 to market at the earliest Strategy to opt for I would suggest Barco to go with option 3 from the list above. Rationale behind my suggestion are enlisted as follows:- Why not option 1? * Cutting down on prices of well-known products offered by Barco would negate the reputation earned by these products and result in brand equity erosion for Barco * Barco was never in a price war with Sony, and should not opt for such a path just in the spur of the moment as reaction to the sudden news * Sony has still not announced what the...
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...1. Financial Health (Exhibit 1): The financial health of the company is solid. BPS has increased its turnover by 48.6% which contributed to the increase in its before tax income of 102.6% from 1988 to 1989. Overall the company has reduced its costs. They have reduced production costs, both overhead and direct, by 0.7% and 14.5% of turnover, respectively. In addition, marketing and R&D expenses have fallen by 0.8% of turnover. Although most of the decreases in costs have been beneficial for the company’s overall growth, the last reduction in marketing and R&D costs may have negative implications and could lead to the erosion of its competitive advantage. As a technology company, Barco caters to innovators by providing leading edge technology; a decrease in R&D could hinder the company’s ability to provide premium products. 2. Words Describing Barco: All of BPS’s offerings are top-of-the-line. They share a “reputation for the highest quality final image and excellent reliability once fully installed” (pg.7). However, in seeking to provide the best available products, Barco has added complexities that are not particularly user-friendly. 3. Top 5 Key Issues: |5 Key Issues |Brief Description |Crucial | |How to react to Sony’s new 1270 product launch |It is estimated that BPS stands to lose as much as 75% of its forecasted 1990 |Yes ...
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...Defending a Domestic Position against Global Entries Abstract The paper offers a systematic review of strategic options available to incumbents coping with threats and attacks by a global firm. The framework makes it possible to review and analyze action alternatives based on the entry stage, the attack focus and defense tactics. Even though the globalization process has exposed domestic incumbents to greater threats, incumbents’ options have also increased. The doors of trade liberalization swing both ways. Opportunities for collaboration increase while anti-globalization movements and national patriotism can be mobilized for effective defense.. The framework presented in this paper builds on existing strategic theories and concepts in addition to published case studies. It offers a flexible and dynamic approach for reviewing alternative strategies for implementation and research. Key words: Defensive strategies, Incumbents, Global threats, Global opportunities, Globalization trends. Defending a Domestic Position against Global Entries Yaron Timmor; Samuel Rabino; Jehiel Zif Introduction In the age of globalization, many domestic firms are threatened by the entry of global firms (Baker and Ballington 2002; Beardsley et al. 2002; Roberts Nelson and Morrison 2005; Thoumrungroje and Tansubaj 2004). Equipped with mega brands, know-how and economies of scales, global and multinational firms shove aside and even trample local players (Douglast, Quelch and Taylor 2004;...
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... Acknowledgements This audit of cinemas in Ireland and Wales was commissioned by Sgrîn Cymru Wales and the Arts Council. The study was financially supported by the Ireland/Wales Interreg IIIA Community Initiative Programme: ERDF 2000–2006. Throughout the study we have been fortunate to benefit from the knowledge, enthusiasm and commitment of Rhian Iolo (Exhibition Manager, Sgrîn) and Siobhan Bourke (Film Adviser, Arts Council). Additional invaluable assistance was provided by Stephanie O’Callaghan, Michelle Hoctor, Antoinette O’Neill, and the staff at both Sgrîn and the Arts Council of Ireland. This study would not have been possible without the generous contribution of time, expertise and information from the many cinema owners, managers, projection and customer services staff we met during the study. Our thanks are also due to the individuals and organisations contacted for comment and information during the research. Our sincere thanks are due to each and every one. The views expressed in this report are those of the authors. Unless specifically attributed, they do not represent the views of Sgrîn, the Arts Council, nor those of any persons or organisations who have been consulted in the course of the study. J Ron Inglis & Sue Todd April 2004 Inglis Todd Consultants is an independent arts and media consultancy operating throughout the UK and Ireland. J Ron Inglis and Sue Todd - are among the UK’s leading consultants in arts and media development, especially in cinema exhibition...
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.... . 20 Entrepreneurship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 Strategic Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Apendix A. Sample Marketing Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Apendix B. Sample Business Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 |...
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...The right of Timothy G. Sutton to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs, and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. ISBN 0 273 67620-2 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. 10 08 9 8 7 6 5 4 3 07 06 05 04 2 1 Typeset in 10/12pt Minion by 35 Printed and bound by Bell & Bain Limited, Glasgow The publisher’s policy is to use paper...
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