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    Marketing Management - BPS Case: Professor Elizabeth Honka

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    Ahmed Gabri
    BARCO Projection Systems (BPS) faced a major threat from Sony's new 1270 projector, which offered significantly higher image quality and performance at a lower price than BPS's products. The 1270 highlighted issues with BPS failing to keep up technologically and underestimating competitors. BPS was concerned about orders for its upcoming BD700 projector, which could not compete with the 1270. The best options were to cancel all other projects and focus on a new top-of-the-line projector, the BG800, or overhaul the BD700 but delay delivery and improve perceptions of its user experience and brand.

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    Marketing Management - BPS Case: Professor Elizabeth Honka

    Uploaded by

    Ahmed Gabri
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    BARCO Projection Systems (BPS) faced a major threat from Sony's new 1270 projector, which offered significantly higher image quality and performance at a lower price than BPS's products. The 1270 highlighted issues with BPS failing to keep up technologically and underestimating competitors. BPS was concerned about orders for its upcoming BD700 projector, which could not compete with the 1270. The best options were to cancel all other projects and focus on a new top-of-the-line projector, the BG800, or overhaul the BD700 but delay delivery and improve perceptions of its user experience and brand.

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    Marketing Case

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    BPS - Gabri

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    BARCO Projection Systems (BPS) faced a major threat from Sony's new 1270 projector, which offered significantly higher image quality and performance at a lower price than BPS's products. The 1270 highlighted issues with BPS failing to keep up technologically and underestimating competitors. BPS was concerned about orders for its upcoming BD700 projector, which could not compete with the 1270. The best options were to cancel all other projects and focus on a new top-of-the-line projector, the BG800, or overhaul the BD700 but delay delivery and improve perceptions of its user experience and brand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views3 pages

    Marketing Management - BPS Case: Professor Elizabeth Honka

    Uploaded by

    Ahmed Gabri
    BARCO Projection Systems (BPS) faced a major threat from Sony's new 1270 projector, which offered significantly higher image quality and performance at a lower price than BPS's products. The 1270 highlighted issues with BPS failing to keep up technologically and underestimating competitors. BPS was concerned about orders for its upcoming BD700 projector, which could not compete with the 1270. The best options were to cancel all other projects and focus on a new top-of-the-line projector, the BG800, or overhaul the BD700 but delay delivery and improve perceptions of its user experience and brand.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    THE UNIVERSITY OF CHICAGO BOOTH

    SCHOOL OF BUSINESS

    Marketing
    Management BPS
    Case
    Professor Elizabeth Honka
    AHMED GABRI

    In this case, BARCO Projection Systems (BPS), a major competitor in the


    international market for projectors was facing a problem which could erode a large
    portion of their profits & market share for the future to come.
    The source of the threat was the introduction of a new super data
    projector by Sony a major BPS competitor at the Siggraph trade show in
    Boston. The product was dubbed the Sony 1270. The dangers that arose from the
    1270 came from multiple perspectives.
    First and foremost, the 1270 had a significantly higher image quality,
    brightness, and overall performance than that of any BPS product. Second, in
    adding insult to injury, the 1270s price was quite cheap in comparison to BPSs
    products. Its price tag was very close to BPS projectors which had much inferior
    performance. For example: ($15,000-$20,000) for the 1270 which had a scan rate
    of 75 KHz as opposed to ($12,000) for the BD600 which could only scan at 45 KHz.
    BPSs issue rose from various sources. First is its failure to manufacture its
    products in a user-friendly manner. Second was their failure to keep up with the
    pace of the industry, as they were offered higher quality components by Sony but
    refused them for cost saving reasons. Third, was their under estimation of Sonys
    competitiveness, giving way to huge miscalculations in BPSs forecasts for the
    market.
    As BPS is forced into a corner, it was concerned towards its current project
    in progress the BD700 for which it has already received orders. The product
    itself, however, cannot compete with the 1270. The then possible solutions were:
    Leave the BD 700 project unchanged, upgrade the BD 700 but delay delivery
    time, or introduce a completely new product but freeze all other projects.
    In my personal view, the best path for BPS would be eliminating all
    operations and focusing on developing the new product, namely, the BG 800.
    Such recommendation is based upon the fact that any other product would be
    rendered obsolete by the 1270.

    Also, BPS should start focusing on the image their products give about the
    company. This could be established via tackling the user-friendly issue which most
    of their customers face.
    As for pricing, BPS should use a Penetration Pricing strategy, at which the
    product would be offered at an initial lower price to create demand. Afterwards
    prices could be bumped up a bit in the future.

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