Desautels, Faculty of Management, McGill University Case Analysis Camera IQ and the Metaverse: Building Augmented Reality Brand Experiences Alicia Madrid - 260900169 MRKT438-001: Brand Management Professor Mary S. Dellar February 22nd, 2023
1 How difficult/easy will it be for camera IQ to scale? Camera IQ has grown exponentially since its launch in 2016. However, there are many challenges to scaling the business. For instance, the development and implementation of AR are very costly, which may limit the number of companies willing to use Camera IQ's services. Moreover, Camera IQ's AR experiences are custom-built for each client so it makes the process time-consuming. This customization also requires significant customer support which, can be costly and hard to implement. While Camera IQ's pricing is very flexible and competitive, it may still be too expensive for some companies interested in the technology. To address this challenge, Camera IQ is considering introducing a lower-priced tier with fewer features and less customer support. It may make it easier to acquire new customers but could lead to losing existing customers with high expectations for customer support. Overall, considering the increasing demand and interest in AR, while there are many challenges, there is potential for Camera IQ to continue to expand its reach. Indeed, there is growing importance of the camera in consumers' social media and shopping behavior. Camera IQ could leverage this trend to attract more customers. What would be your priorities if you were Ferenci and Tsao? If I were Ferenci and Tsao, my priorities would be improving the scalability and efficiency of Camera IQ's services while maintaining an excellent level of customer satisfaction as well as expanding the company's reach by capturing new customers and markets.Regarding the first priority, focusing on finding ways to automate the AR development and implementation process could reduce costs and minimize the need for customer support. To do this, I would invest in new technologies and look for ways to optimize Camera IQ's existing services and processes, such as by standardizing certain features or improving the onboarding process to reduce the time and resources required to onboard new clients. For the second priority, I would focus on expanding Camera IQ's customer base. I would invest in marketing to target new customers and continue exploring new pricing and product options that appeal to a broader range of customers. For example, I would consider the lower-priced tier option for small businesses that may not have the budget for Camera IQ's existing services. I would also explore new partnerships and collaborations with
2 companies in related industries, such as e-commerce and social media, to increase Camera IQ's exposure. At this point in its growth trajectory, is camera IQ finding and serving the right set of customers? Who should camera IQ target? Camera IQ serves a diversity of customers, such as creatives and designers, social media managers, and senior marketing leaders. However, as mentioned in the case, the company must develop a compelling customer value proposition that focuses on one specific customer segment. Therefore, they would have the opportunity to invest their resources in serving that segment effectively. Rather than targeting a company-size segment, they should consider focusing on a specific industry. Indeed, as mentioned in the case, "Camera IQ had built its platform so that it was industry vertical-agnostic" and offers three pricing levels so customers can choose a package that best fits their needs. This was an intelligent strategy, as they are now able to target many different companies. However, to better tailor its offerings to customers' specific needs, they should focus on a particular industry, such as the beauty and fashion industry. This industry would allow the company to expand further in the social media landscape and collaborate with influencers and celebrities. Should camera IQ launch a lower-price tier product? Camera IQ should consider launching a lower-price tier product as it could help the company expand its customer base and reach new potential clients who may be interested in their services but have budget constraints. As I mentioned previously, especially being a start-up, I think expanding the company's reach should be a number one priority, and having more affordable options could help achieve that. Moreover, while it may reduce the amount of revenue generated per customer, it could increase the total number of customers and overall revenue for the company. However, Camera IQ will need to ensure that the quality and the level of customer support are not compromised. They should be strategic in positioning the lower-priced tier to avoid sending a negative message about the quality of their existing services. Overall, a lower-priced tier could be an intelligent move for Camera IQ if they do it carefully and they focus on maintaining a high level of customer satisfaction.