LAUNCHING A NEW OFFERING: THE ADVANCED SMARTWATCH

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Brief Description of the Product

The popularity of smartwatches is increasing by the day. Middle class earners and the working class groups are finding this new trend as not only fashionable but also incredibly convenient. A large group of consumers are accepting smartwatches as independent gadgets, which perform other tasks as important as having a mobile phone and other simple daily technologies. The current product combines all of these elements, including new technology in the wearable sector, fashionable features of a new trendy smartwatch, and the smartness of a mobile phone on a wrist watch. Specifically, the idea is to take advantage of the increasingly popular wave of using smartwatches as a fashion statement and as a luxury item. The characteristics and features of the smartwatch make it a desirable product for anyone already using a smart phone. Smartwatches can be used as pulse rate recorders and monitors, pedometers, physical activity trackers, blood pressure monitors, sleep and sleep pattern recorders, and as a time keeping gadget (Dutot, Bhatiasevi, & Bellallahom, 2019). Overall, smartwatches are supposed to simplify common conveniences and new technologies that have been introduced recently including health and fitness and the old benefits of having a watch that can connect to one’s phone.

Despite the aforementioned advancements in technology, the smartwatches in the mainstream tech market are somewhat rigid to new changes and have maintained the same old features and sluggish growth compared to when they hit the market a few years ago. Manufacturers have not put in notable effort in ensuring that the smartwatch becomes an independent gadget away from the smart phone. A problem emerges that the smartwatches in the market are produced and marketed as components to the smart phone, with minimum features, and only limited to keeping time and tracking fitness and health. This raises a need to have so many gadgets that do a myriad of things and many apps that can overwhelm these gadgets. There is a need for a product that goes beyond these minimal benefits to include an independent sim card slot, basic smartwatch features, and the ability to incorporate the benefits of a smart phone to increase convenience and add value by eliminating the need to have other additional tech products.

Following from the above problem, our proposed smartwatch goes further to incorporate new features such as Google maps, voice-activated command, picture taking on a full screen, and video call feature for convenience when on the move. It is important to note that we are marketing our product as a smartwatch that does exceedingly more than a majority of the smartwatches in the market. Our idea is to make a smartwatch that operates fully like a smart phone, with the benefits and convenience of being a hands-free and voice activated gadget.

The SpeedBit is the suggested name for our product. The need to have many smart gadgets is a problem that can be solved through creating the SpeedBit that has similar features to a modern smartphone. The benefits of solving this problem include allowing a user to be without their mobile phone when in commitments such as work, or when in a meeting, in class, or when doing physical activities, on a plane, and when driving. More features to the smartwatch will help reduce the bulkiness of the smart phone. SpeedBit will have 3 distinct prices: the entry level price for the basic model going for $62-$70, the mid-level model going for $94-$170, and the top tier model going for $180-$300. The price is competition-based with an intention to penetrate the smartwatch market and create a following in line with the findings of Sammut‐Bonnici & Channon (2015). The mid-level price targets both the old and young customers and uses the cost-plus pricing strategy to create profits in the long term (Guilding, Drury, & Tayles, 2005). The high-end pricing uses prestige pricing to create a success image and gain value (Kumcu & McClure, 2003).

Target Market and Positioning

SpeedBit’s market will be segmented on the basis of the income and age of users and a look into which other gadget/devices a person uses. The SpeedBit is an independent tech device but also requires that a user uses a smart phone to support the extra features and to link with one’s life through applications such as messaging, infotainment, video calling, and navigation. Therefore, our target market is the millennials (old and young millennials) aged between 18 and 33 years. Dash, Kiefer, & Paul (2021) identified this market group to be one of the largest groups of smartphone owners and users. Further into the segmentation criteria, we identify that the millennials do not 100% fit in the income group that favor our pricing strategy. At present, Anshari et al. (2019) term millennials as low-income earners, have reduced disposable income, and are classified as discount/deals shoppers. Therefore, we expand our target market to include older individuals in the upper middle class and high income earning group. The new category is largely comprised of health and fitness enthusiasts ready to accommodate smart devices that can be used for physical activities and in offices for convenience purposes.

For SpeedBit to be a success, the targeting and positioning will incorporate the millennials and the upper middle class groups. The benefits of each category make them an attractive market for SpeedBit. Millennials are large smartphone users and comes with huge numbers, influence, and following on social media. The older upper middle class fitness and health enthusiasts has high disposable income and willingness to adopt to new technology. Their financial capability also makes them less price sensitive which will be key to selling the high end product categories.

The positioning of the SpeedBit will be based on the benefits of the features such as pulse rate recorders and monitors, pedometers, physical activity trackers, blood pressure monitors, sleep and sleep pattern recorders, and as a time keeping gadget. Added features that serve to add value include classic time telling features, being a travel companion, a device that helps find other lost gadgets, good trackers in the fitness and health segment, nutrition companion, basic convenience, multitasking accessory, notifications on the wrist, navigation advantages, voice command, and connectivity to other gadgets.

Advertising Objectives

The advertising objectives are informing and persuading users and the taret market to switch to a smartphone that caters for practical needs. The message strategy will use information and humor to appeal to the target market. Specifically, we will show how a person requires at least five tech gadgets to be able to perform the basic requirements of a modern day working individual. From the wake-up alarm device, to the phone reminder of a scheduled meeting, to missing calls while taking a shower, missing on a critical message reminding one of a meeting at their child’s school, to keeping track of fitness and physical activities, we intend to inform that the smartwatch should be a technology that every person is familiar with and already a user. Our message is that the technology is long overdue and that people should already be using smartwatches as a part of their daily lives. The target markets for the SpeedBit are all working people with busy lifestyles. We will use emotion to show how the SpeedBit will help them to keep up with the demands of their busy lifestyles including work, personal time, social life, important landmarks in life, and so on. This is appropriate for the target markets in order to create purpose and commitment. We intend to have the target customers demanding the product more.

ReferencesAnshari, M., Alas, Y., Razzaq, A., Shahrill, M., & Lim, S. A. (2019). Millennials Consumers’ Behaviors between Trends and Experiments. International Journal of Cyber Behavior, Psychology and Learning (IJCBPL), 9(4), 45-60.

Chatfield, A. T., & Reddick, C. G. (2018). The role of policy entrepreneurs in open government data policy innovation diffusion: An analysis of Australian Federal and State Governments. Government Information Quarterly, 35(1), 123-134.

Dash, G., Kiefer, K., & Paul, J. (2021). Marketing-to-Millennials: Marketing 4.0, customer satisfaction and purchase intention. Journal of Business Research, 122, 608-620.

Dutot, V., Bhatiasevi, V., & Bellallahom, N. (2019). Applying the technology acceptance model in a three-countries study of smartwatch adoption. The Journal of High Technology Management Research, 30(1), 1-14.

Ferreira, J. J., Fernandes, C. I., Rammal, H. G., & Veiga, P. M. (2021). Wearable technology and consumer interaction: A systematic review and research agenda. Computers in Human Behavior, 106710.

Guilding, C., Drury, C., & Tayles, M. (2005). An empirical investigation of the importance of cost-plus pricing. Managerial Auditing Journal, 20(2), 125-137.

Kumcu, E., & McClure, J. E. (2003). Explaining prestige pricing: an alternative to back-bending demand. Marketing Education Review, 13(1), 49-57.

Nasiri, N. (2019). Introductory Chapter: Wearable Technologies for Healthcare Monitoring. Wearable Devices: the Big Wave of Innovation, 3.

Sammut‐Bonnici, T., & Channon, D. F. (2015). Pricing strategy. Wiley Encyclopedia of Management, 1-3.

Singh, R. R., & Majumdar, S. K. (2018). Wearable internet of things (WIoT): Opportunities, challenges and business models for digital entrepreneurs. International Journal on Recent Trends in Business and Tourism (IJRTBT), 2(4), 43-52.