Barco Projection Systems (A): Worldwide Niche Marketing

1695 Words4 Pages

Q1. What are the key differences between Sony's and Bacro's strategies as far as their product roll out is concerned prior to Aug 1989 in the projector market (that is, you need to compare and contrast the chronological order and the scan rate/prices/other features of the models that both players introduced in the market prior to Aug 1989)? Why is it that both players were playing such different strategies prior to Aug 1989?

Barco launched its first projector BV1 (scan rate of 16 kHz & priced at $11,250) in video segment in 1982. But soon Barco decided to enter the computer applications market and by the end of 1983 launched BD1 (scan rate of 16 to 18 kHz & priced at $13,500) in data segment. In 1984 Barco introduced two more projectors BV2 (scan rate of 16 to 18 kHz & priced at $9,875) and BD2 (scan rate of 16 to 25 kHz and priced at $14,750) in video and data segment respectively. 1985 saw the entrance of Sony in the industrial projection market with its 1020 video model. 1020 was slower compared to Barco's video projectors available at that time but it had a sharper focus indicating a better quality tube. In 1985 Barco launched BD3 (scan rate of 16 – 32 kHz & priced at $17,000) and then in 1986, Barco introduced BDHR, its first projector in the graphics segment (scan rate of 16-45 KHz and priced at $17,375). In June 1987, Barco came up with BG400 for graphics segment (scan rate up to 72 kHz, initially priced at $25,000 and later reduced to $24,000). In the same year, Barco also introduced BD400 (scan rate of 16 to 45 kHz & priced at $14,500) and immediately next year came out with BD600 (scan rate of 16 to 45 kHz & priced at $12,000) and BV600 (scan rate 16 kHz & priced at $8,750).

Barco's main strategy was to work in ni...

... middle of paper ...

... the higher scan rate is always welcomed. So 75 kHz projector would definitely be appreciated by the customers especially at a much lower price of $15,000 a saving of $9,000 over Barco's BG400. Customers would buy a cheaper projector with the higher product performance. ‘Price signaling quality' issue may not be a big concern here because Sony has a sound established reputation and brand recognition in the market. Further, Sony would be able to tackle this issue by physically demonstrating the performance of the projector at trade show and Infocomm show. This would weaken the correlation between price and quality in the customer's mind. As the projectors are purchased for industry use the snob value is not much of an issue here. Barco cannot afford to engage in the price war and Sony is able to deliver the coup de grace to Barco. Thus merging is possible in this case.

More about Barco Projection Systems (A): Worldwide Niche Marketing

Open Document