Barco Case Analysis
1. How large is the projector market in unit terms?
Method A:
BPS sold 4,400 units in all three categories in 1988
Video: 4,400*35%=1,540
Data: 4,400*53%=2,332
Graphics: 4,400*12%=528
BPS’s market share of Data&Graphics: 25% (2,860)
Data&Graphics market: 2,860/25%=11,440
Data&Graphics is 37% of the whole projector market
Projector market: 11,440/37%=30,919
Method B:
BPS sold 4,400 units in all three categories in 1988
Video: 4,400*35%=1,540 (8% market share)
Data: 4,400*53%=2,332 (23% market share)
Graphics: 4,400*12%=528 (55% market share)
Video market: 1,540/8%=19,250
Data market: 2,332/23%=10,139
Graphics market: 528/55%=960
Projector market: 30,349
Predicted annual growth 8.5% per year from 1988-1994
1988 1989 1990 1991 1992 1993
30,349 32,929 35,728 38,764 42,059 45,634
2. Describe Barco’s product line evolution over time – focus on the time when different products in the line were introduced and upgraded.
Video Projector:
1982: BVI (16 kHZ, 450k Bfr, $11,250)
1984: BV2 (16-18 kHZ, 395k Bfr, $9,875)
1987: BD400 (16 kHZ, 325k Bfr)
1988: BV600 (16 kHZ, 350k Bfr)
1989: BD600S (16 kHZ, 360k Bfr) //main line of video projectors sold for 280k Bfr, $7,000
Data Projector:
1983: BD1 (16-18kHZ, 540k Bfr, $13,500)
1984: BD2 (16-25kHZ, 590k Bfr, $14,750) BD2B (16-32kHZ, 590k Bfr)
1985: BD3 (16-32kHZ, 680k Bfr)
1987: BD400 (16-45kHZ, 580k Bfr)
1988: BD600 (16-45kHZ, 480k Bfr, $12,000)
1989: BD700 (640k Bfr, $16,000) //to be delivered, digital control
Graphics:
1986: BDHR (16-45kHZ, 695k Bfr)
1987: BG400 (16-72kHZ, 1,000k Bfr, $25,000) //price goes down to 960k Bfr, $24,000 by 1989
3. Think back to how we defined segments and segmentation. Is there something about Barco’s description of segmentation that makes you uneasy about the scheme?
They did not segment the market from customers but segmented the market by its product line offering. It’s dangerous when they were limiting the scan rate of
Method A:
BPS sold 4,400 units in all three categories in 1988
Video: 4,400*35%=1,540
Data: 4,400*53%=2,332
Graphics: 4,400*12%=528
BPS’s market share of Data&Graphics: 25% (2,860)
Data&Graphics market: 2,860/25%=11,440
Data&Graphics is 37% of the whole projector market
Projector market: 11,440/37%=30,919
Method B:
BPS sold 4,400 units in all three categories in 1988
Video: 4,400*35%=1,540 (8% market share)
Data: 4,400*53%=2,332 (23% market share)
Graphics: 4,400*12%=528 (55% market share)
Video market: 1,540/8%=19,250
Data market: 2,332/23%=10,139
Graphics market: 528/55%=960
Projector market: 30,349
Predicted annual growth 8.5% per year from 1988-1994
1988 1989 1990 1991 1992 1993
30,349 32,929 35,728 38,764 42,059 45,634
2. Describe Barco’s product line evolution over time – focus on the time when different products in the line were introduced and upgraded.
Video Projector:
1982: BVI (16 kHZ, 450k Bfr, $11,250)
1984: BV2 (16-18 kHZ, 395k Bfr, $9,875)
1987: BD400 (16 kHZ, 325k Bfr)
1988: BV600 (16 kHZ, 350k Bfr)
1989: BD600S (16 kHZ, 360k Bfr) //main line of video projectors sold for 280k Bfr, $7,000
Data Projector:
1983: BD1 (16-18kHZ, 540k Bfr, $13,500)
1984: BD2 (16-25kHZ, 590k Bfr, $14,750) BD2B (16-32kHZ, 590k Bfr)
1985: BD3 (16-32kHZ, 680k Bfr)
1987: BD400 (16-45kHZ, 580k Bfr)
1988: BD600 (16-45kHZ, 480k Bfr, $12,000)
1989: BD700 (640k Bfr, $16,000) //to be delivered, digital control
Graphics:
1986: BDHR (16-45kHZ, 695k Bfr)
1987: BG400 (16-72kHZ, 1,000k Bfr, $25,000) //price goes down to 960k Bfr, $24,000 by 1989
3. Think back to how we defined segments and segmentation. Is there something about Barco’s description of segmentation that makes you uneasy about the scheme?
They did not segment the market from customers but segmented the market by its product line offering. It’s dangerous when they were limiting the scan rate of