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Barco Projection Systems Case Study

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Submitted By nmrk183
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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

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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 price, supported with a cost advantage due to mass production. Barco will have to decide on lowering its prices for current products and/or react with the introduction of an even better product. 2. Analysis of the main problem Barco does not sell its projectors, market-driven but technology driven: marketing strategy and product development follows engineering. Product development is

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