Barco Analysis
Barco Projection Systems Division needs to assess their market segmentation on the basis of product segmentation which recognizes their brand equity and not solely on the current basis of scan rate. BPS initially distinguished itself from its competitors on the basis of superior scan rate but this singular product attribute is not a sufficient basis for winning future market share. Competitors, such as Sony, have a greater market share with products that have lower scan rates than those offered by Barco. For example, Sony holds a forty-nine percent market share in the data market with the 1031 which only scans at 35 kHz. Meanwhile, BPS offers machines with lower scan rates. At the same time, BPS derives the crux of their sales, both by unit and revenue in this market. This would indicate that higher scan rates do not accurately predict success within a market segment. Barco has a great deal of brand equity that needs to be better leveraged. Instead of trying to compete in the marketplace with products that have higher scan rates and lower prices, BPS needs to better understand the importance of their
Barco must continue to distinguish itself as a technological leader that offers high performance products for a price that sets them above the rest. The subsequent release of the BG800 in late 1990 will further substantiate that image. The release of the BD700, Barco's first digital projector, will be a positive indicator that BPS is maintaining its position within the high technology market. The future of the video projector remains strong and they have "anticipated that the worldwide market for industrial projection would continue to expand for at least five years or more. Instead of lowering their prices in response to speculation about the price of Sony's new 1270 'superdata' projector, BPS needs to maintain this element of brand distinction that targets customers' preferences. Other options that consider delaying new product releases, or reducing prices will only be detrimental to the overall brand equity that BPS holds. Their products are well established in a variety of entertainment, training and presentation markets. These markets represent much different end users than those in other markets. Again, Barco must address the separate but similar concerns expressed by users that their control panels and instructions are too complex. BPS maintains eighty percent of their sales through systems dealers who offer integrated packages because they have the knowledge and expertise to tailor systems to suit customers' needs. However, these dealers are underutilized resources. Barco could see an overall increase of sales if dealers were better assisted or if the installation processes were simplified. Purchase behaviours would indicate that their customers prefer products that reflect strong positive associations of brand image.
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