Bps Marketing Case Study

966 words - 4 pages

The entire market for video, data, and graphics projectors in 1988 comprised of 30,847 units (table 1). Although Barco Projection Systems (BPS) only captured 14% of the aggregate total for projectors, for the corporate and industrial environments, BPS offered an unequaled level of quality in high end projectors due to the continuous improvements in scan rates and general performance compared to its peers.

BPS
35% video, 53% data, 12% graphics  total of 4,400 units (1,540 video units, 2,332 data units, 528 graphics units)
8% of entire market of video projectors (〖Total〗_video×.08=1,540→〖Total〗_video=19,250)
23% of entire market of data projectors ...view middle of the document...

BPS’s next projector, the BarcoData 1, became the first computer-compatible projector in the marketplace in 1983, and was well received, especially in the corporate environment. The following year, the BarcoVision 2 and the BarcoData 2 were introduced, building on higher scan rates and broader compatibility. In 1987, BPS began selling the next evolution of its line of projectors. With its BarcoGraphics 400, the company had created the highest tier of performance and quality in projectors, which was thusly named graphics projectors. By 1989, BPS was heavily cemented in the data and graphics projector segments with its BD600 and BG400, respectively. Its next big release was called the BarcoData 7, and it was supposed to be the first digital data projector. Unfortunately, before the BD7 was released, Sony introduced the 1270 much to the dismay of the executive team at BPS.
Upon examining the value map (fig. 1) of three of BPS’s projectors with one of Sony’s, the BV600, BD600 as well as the 1031 all seem to adhere to the same value equivalence line; the BG400, however, lies above. Since the BG400 was the most sophisticated projector in the entire market, BPS was able to charge that premium without consequence.

Sony certainly is in an enviable position--not only due to having a more advanced projector but also due to being the sole supplier of the very tubes housed by their rival’s projectors. By extrapolating the value equivalence line using the data points for BV600, S1031, and BD600, Sony can charge a price of $17,314 for each unit of the 1270. Since Sony Projectors division only accounted for 1% of the total company’s revenue, a fee of $15,000 per unit of the 1270 would not drastically damage the company’s bottom line. If the goal was to capture BPS’s market share, this...

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