TomTom and DDB: Entering a new category and taking on Goliath
GoPro is one of the tech world's big sleeper hits of recent years, and dominates the "action video" category. But Gary Raucher, global head of marketing at another breakout tech success, GPS specialists TomTom, suggested that the action camera maker will have increasing competition in the years ahead.
A joint presentation from Raucher and Sandra Soskic, co-CEO of ad agency DDB & Tribal Worldwide Amsterdam, given at the 2015 Cannes Lions International Festival of Creativity, provided a case study for entering a new category.
"We needed to change a single-category brand to a multi-category brand, and make it a relevant player in these two categories," Soskic said.
TomTom, a Dutch-headquartered company, was founded in 1991 and has built up a formidable product line of location-based products, including a core line of in-car GPS mapping services that are mounted on dashboards. Its decision to enter the camera category was made in the knowledge that it has existing dominant players: not just the smartphone manufacturers, but also GoPro.