REI Business Proposal for GoPro Hero4 Session Camera
1. Business Proposal Prepared For:
Yana Demeester – Assistant Buyer
Business Proposal Presented By:
Nick Vinci – Senior Account Manager
2. 2
May 12, 2016
Mr. Nick Vinci
Senior Account Manager
GoPro, Inc.
3000 Clearview Way
San Mateo, CA 94402 USA
Ms. Yana Demeester
Assistant Buyer
REI
6750 S 228th St
Kent, WA 98032
Dear Ms. Demeester,
Thank you for taking time out of your day to meet with me to discuss adding our GoPro
Hero4 Session to your current line of GoPro products at REI. As you likely already
know, GoPro is committed to providing the world’s most versatile cameras to help
capture and share the most important memories of our customers’ lives.
Please extend my thanks to your partner, Mark, for setting up this meeting. He did an
excellent job updating me on the current state of satisfaction with REI’s line of GoPro
products. Since Mark will be out of town for this meeting, I look forward to getting the
chance to speak to you about this GoPro.
Through this presentation my goal is to address all of these concerns and provide you
with how this product addition can benefit REI and their customer base. After last
speaking with Mark, he let me know of his three mains concerns – sales price, customer
demand, and product variety. The following pages will outline these concerns
specifically, offer solutions, and provide a variety of additional benefits that will come
from adding the GoPro Hero4 Session to REI’s current line of GoPro products.
GoPro has had the pleasure of working with REI for many years now, and we hope to be
able grow and continue that strong relationship for many years to come.
Sincerely,
Nick Vinci
3. 3
Table of Contents
Areas of Concern..................................................................................................... 4
Objectives.................................................................................................................... 5
Recommendation..................................................................................................... 6
Implementation Schedule...................................................................................... 7
Addendum:
Technical Specifications..................................................................................... 8
Point-of-Purchase Display.................................................................................. 9
Application Form.................................................................................................... 10
Reviews...................................................................................................................... 11
4. 4
Areas of Concern
Sales Price:
GoPro has been a partner with REI for a many years now, so you
are aware of general pricing of the current products carried by REI.
However, the original pricing of $399 for the GoPro Hero4 Session
has caused much backlash and lack of sales, which we understand
is a major reason you do not currently carry this product.
Customer Demand:
REI carries many products from a variety of companies, including
GoPro. The current GoPro product line carried at your stores has
been able to create a strong customer demand, but we know that
you are wondering how well this new product will do as an addition
to that line. What further demand can it offer?
Product Variety:
This new GoPro must differ from the other GoPro models currently
sold or it might not sell as well. What are the features of the GoPro
Hero4 Session that will set it apart from the other two models,
GoPro Hero4 Silver and GoPro Hero4 Black, currently sold at REI?
5. 5
Objectives
Sales Price:
In September of 2015, we dropped the price of our GoPro Hero4
Session from $399 to $299, and then dropped the price again in
December of 2015 from $299 to $199. We believe that this new,
lower price is the perfect point to attract customers and make a
profit. At $199, the GoPro Hero4 Session is the cheapest GoPro on
the market.
Customer Demand:
The GoPro Hero4 Session is our company’s newest camera. While
we have seen some trouble with demand in the past, the newest
price drop to $199 has shown to increase sales and demand. This
camera is focused on appealing to younger customers who are not
willing to spend as much money on the more expensive models, as
well as new GoPro users who want to try a GoPro camera before
committing more money to the other models.
Product Variety:
The GoPro Hero4 Session stands out from our other models to
create an entirely new portable camera experience. Firstly, it is the
smallest and lightest GoPro yet, created to be 50% smaller and
40% lighter than the other GoPro Hero cameras. It also has one-
touch capture, which means that only one button is required to turn
on and take videos on the camera.
6. 6
Recommendation
GoPro recommends one of these two options, depending on which fulfills
your company’s needs best. Both options are based on monthly
shipments of stock.
Suggestions Option 1 Option 2
Quantity (monthly) 10 15
Price/Unit $160.00 $150.00
Total Investment
(monthly)
$1,200.00 $1,650.00
Sales Price/Unit $199 $199
Profit (%) 20% 25%
7. 7
Implementation Schedule
April 21!
• Initial phone call!
May 12!
• Sales presentation!
May 16!
• Process order!
May 23!
• Follow up phone call!
June 1!
• Start marketing campaign!
June 12!
• Set up retail display!
June 13!
• Complete 1st shipment!
April 13!
• 1 month follow up!
9. 9
Point-of-Purchase Display
GoPro provides a wide selection of Point-of-Purchase Displays. The four
different displays vary on size going from smallest to largest. We
encourage you to choose the best option to best fit the amount of space
available to attract and display our products in your store.
1)
2) 3) 4)
11. 11
Reviews
“Ranked 6th
on list
of Top 10 Best
Action Cameras”
“#1 Best
Waterproof Action
Camera of 2016”
“Ranked 4th
on list of Best
Action Cameras of 2016”