Hello every one? I am going to introduce you to a brilliant concept, one that will likely shake up the entire wearables sector and change how we perceive smartwatches.
Ever wanted to own a gadget that combines all of the special features of a phone, yet is light and a wearable at the same time? Don’t we all desire a smartwatch that connects easily to all our smart gadgets and systems at home?
Well, SmartFit is the name of our company, specializing in creating budget smartwatches for the middle-class consumer. It is a new company entering a market that is not very crowded. The smartwatch product is gaining popularity amongst consumers already using smartphones. In the near future, it is projected that it will be an essential component to a smartphone similar to what headphones are today.
The opportunities of the company are identified as follows:
There is a wave of health-oriented consumers focusing on ensuring that they have a healthy exercise routine. SmartFit can tap into this emerging niche by providing data through the watch to the consumer relating to calories burnt, steps made, pulse rate, amount of water consumed, and exercise data for those planning to work out. To add value to the product, SmartFit will need to partner with trainers to offer customized solutions to different users based on their preferences, weight categories, and exercise intentions.
Big brands such as Fitbit, Apple, Samsung, Garmins and Google have all entered the market with their relatively expensive products. An opportunity arises for the company that will provide superior products at competitive pricing. SmartFit will cover this gap in the market.
There is a new drive for companies to ensure that they contribute positively to their environments. SmartFit will use this as a way to create competitive advantage and a marketing structure. By using recyclable materials, the company will not only cut on cost but will also contribute positively to the eradication of single-use plastics. The company will also accept older models in exchange for newer ones in order to re-use parts and recycle the products.
Seamless and integrated experience are elements that many competitors continue to explore. Athey and Luca (2009) found that tech companies are struggling to meet the demands of their markets, which will define the next age of super companies. There is a market gap for companies specializing in in-depth integration of the smartwatch to the modern day smart home system.
SmartFit’s mission is to provide superior products to every consumer segment at competitive pricing, ensure seamless integration to other smart applications, and remain conscious to the needs of our environment, for the overall welfare of society and our ecology.
Customer needs Interpret HIERARCHY
Customisation The smartwatch allows users to change to different designs, including casual and professional interfaces. It also enables one to customize the kind of notifications they are able to receive. 1
Internet of things IoT is one of the greatest roles of the smartwatch. It will facilitate the integration of systems between other smart applications at home or in the office. 2
Security The small design of the smartwatch provide security and ease of use which can be used in situations where one feels threatened. 3
Notifications Notifications can be sorted into different categories according to what is important to the user. The use of the smartwatch to receive notifications saves time and is a cool feature to have. 4
Fitness The smartwatch combines the advantages of having a mini-phone with the ability to act as a device to facilitate exercising. It has step counting, pulse rate features, and other designs that attract different users. 5
Battery life The smartwatch will enable one’s phone to conserve charge. The gadget itself keeps charge for long, allowing users to enjoy the benefits of a prolonged battery life. 6
Music The gadget will enable users to listen to their favourite music while on the go 7
Answering calls It will also enable answering calls without necessarily taking the phone out of the pocket. 8
Social etiquette The smartwatch will enable users to check their phones without seeming rude 9
Navigation The smartwatch will make it easier to navigate new places as directions are sent to the gadget allowing easier travel and getting around unfamiliar cities 10
The modern consumer is looking for more design features and functionality of a tech device as opposed to its fashion attributes (Blythe, Sombatruang, and Johnson, 2019). As the wearables become more commonplace, companies will have to integrate functional features into the design more than the aesthetic value of a design.
Customer needs Product specification
Customisation The smartwatch will be modified to enable application compatibility with other smart gadgets and systems
Internet of things Our product will use premium algorithm and servers to ensure seamless interconnection of smart devices in a system
Security A core feature of our product will be ensuring the security of all devices to allow operations only when permitted by a user.
Notifications Our product will ensure that users can set the frequency and urgency of notifications from various apps sorted using user preferences and other customization features
Fitness The fitness will be customized per user preferences allowing different options such as manual mode and auto settings to provide real time fitness data or upon request in the manual mode
Battery life A key means to ensure effectiveness of our product is through providing a large battery to offer extended battery life
Music Seamless integration and diverse music platforms will be attained through superior products from our suppliers and partners, including a large memory chip to enable larger storage capacity
Answering calls To ensure that the feature has a good reception from our customers, we will integrate an answering application that is similar to that on the smartphone and it will also be customizable to one’s preference and taste
Social etiquette Our product will facilitate social etiquette by allowing the transfer of all important notifications from the phone to the smartwatch to avoid social awkwardness caused by constant checking f the phone
Navigation Integrate local maps on the design so that one can get the routes directly on their wrist when running or walking and eve driving
The five-step process for refining the specifications is:
1. Developing technical models of the product so that all features can be tested against their performance
2. Develop a cost model of the product so that all partners are aware of the cost and the financial obligations required
3. Refine the specifications, making trade-offs where necessary so that we are able to attain a superior product
4. Flow down the specifications as appropriate.
5. Reflect on the results and the process.
Our product will be a portable design with an adjustable wrist belt with a round shaped screen. The product will be very light weight made from recyclable materials. The wrist band will be detachable to allow customers to choose their own customized wrist wraps, different textures, and colours from the stock straps. It will also have connectivity to multiple devices, a feature unique to our product. It will include a mic for voice commands, a feature that a majority of consumers prefer according to a 2020 survey (Nkpurukwe, Amangala, and Wali, 2020). Features of the screen will include: touchscreen with a revolving app appearance design, dark and light mode features, and a mute feature where the screen sleeps to conserve charge.
We will develop a new sensor that can process data more precisely by using deep learning algorithm for gesture detection. We will also assemble more microsensors to detect and collect new data (including weather conditions, humidity, temperature, and chemical parameters; we will incorporate a dual core processor) to generate new insights to the customers (suggestions on what to wear or where not to visit).
To cater for the needs of the customer, our company will incorporate smart home system with our identical operational system (OS) with idea to increase compatibility with other smart gadgets around the home. We will also provide superior services, including before and after sales services. To ensure that the customer is satisfied, we will incorporate better algorithm to detect gesture & posture to improve the fitness method of customers, and to offer suggestions based on our partner fitness and health experts. Lastly, we will have a voice activated feature, complete with voice detection algorithm for voice texting and a loudspeaker function for improved functionality.
In order to be competitive in our industry and to ensure that we meet the emerging customer and ecological demands, we will develop new recyclable but cost-balanced materials to be used in production (Biodegradable PET). To counter the path taken by our major competitors, we will focus more on styling and functionality as oppose to fitness and health demands.
The smartwatch industry has developed rapidly over the last two years. Dutot, Bhatiasevi, & Bellallahom (2019) found that components such as different sensors that help with functions such as pulse reading, step counting, weather predicting, and other functions have been developed to unprecedented levels. Similarly, our competitors utilised these technologies comprehensively. As a result, we do not plan to go into production of sensors but we will partner with established firms in a horizontal alignment. Ideally, our research has established that putting more sensors into the product might not be practical as the size of watch plate should not be too large or heavy. Our consumers expect a sleek design complete with a professional look to meet and surpass the standards set by our competitors.
The second opportunity, price competitiveness, has very high uncertainty. However, we will push through because this opportunity could be the breakthrough for us to enter into the market as a cheaper alternative to the current products available. Chuah et al. (2016) reported that wearable technologies have very high imitability requiring new market entrants to consider market penetration pricing. We will use price competitiveness as an opportunity.
The third and fourth opportunities, green production and seamless integration with smart home systems, will require investments in the research and development department. By branding ourselves as an environmental-conscious firm, our products will be led through green production. Additionally, we will ensure that our products are appealing to both the older and younger consumers. Consumer groups prefer different styling as older adults would like to have a professional look while younger adults would like to have a fashion look for identity and self-satisfaction.
In this case, our company’s opportunity will be a hybrid strategy of price competitiveness and incorporating smart home system with our identical operational system (OS) through the increase of compatibility in the systematic network. After the selection, we normally need to access the customer feedbacks on the experience and refine the product based on the testing. However, we cannot access customers at this stage and we should complete this step after production.
The main assumptions are that our business will have sufficient access to capital, and that the economy will remain steady without getting into a recession, and there will be zero unforeseen technological changes.
From our projections as shown in the three images below, it is clear from the benchmark chart that we expect the project to be profitable enough to pay back the initial investment. Our break-even analysis and our annual profit projects show that we will attain profitability. If our financial projections are wrong, we have set aside margins for error. Therefore, the projections will retain profitability.
STP marketing model (Segmentation, Targeting, and Positioning) is a familiar strategic approach in modern marketing and one noted by Kalam (2020) to be the most commonly applied marketing models in practice. The STP marketing model will examine our products and the way we choose to communicate their value to particular customer segments.
S
Segmentation T
Targeting P
Positioning
Our target market will be divided into three distinct customer groups (demographic, psychographic, and behavioural). We will target the psychographic and behavioural groups focusing on personality and lifestyle of middle-class urban dwellers who are tech-savvy and own latest models of smartphones. This group offers a large market size, profitability, and reachability. Our company will focus on symbolic, functional, and experiential positioning. Our product will not only enhance the self-image of our customers, but will also provide belongingness, solve their problems, provide genuine benefits, and create an emotional connection.
Product Place Price Promotion
Will meet customization needs
Will have compatibility to other smart gadgets
Will have top security features
Long battery life
Added benefits such as music, step counters, and navigation Will be distributed in designer shops, dealer stores, and licensed partners
We will use a sales force to reach diverse markets The product will target price sensitive customers
It will be sold at a relatively lower price compared to the competition Our marketing messages will be passed to our target market using both traditional marketing and digital marketing techniques.
We will use online advertising through social media and on billboards and the press
To penetrate the market, our company will use a horizontal alliance. Specifically, we will partner with logistics service providers, suppliers, and distributors to get our products to the market. The partnership will enable us to use partners who already have experience in handling similar products to the market. It will also enable our firm to access tangible resources that can be exploited directly.
Despite our extensive research on the product, it is likely that we may experience relationship issues with our partners at the launch phase, especially with our partnering firms with the smart home systems. It is also expected that we may face product recalls due to failure of certain key features. Another major issue would be acquisition of operational licenses in some jurisdictions. Privacy agreements will also be an issue of concern.
If anyone has any question(s) feel free to ask.
Thank you for your time.
References
Athey, S., & Luca, M. (2019). Economists (and economics) in tech companies. Journal of Economic Perspectives, 33(1), 209-30.
Blythe, J. M., Sombatruang, N., & Johnson, S. D. (2019). What security features and crime prevention advice is communicated in consumer IoT device manuals and support pages?. Journal of Cybersecurity, 5(1), tyz005.
Chuah, S. H. W., Rauschnabel, P. A., Krey, N., Nguyen, B., Ramayah, T., & Lade, S. (2016). Wearable technologies: The role of usefulness and visibility in smartwatch adoption. Computers in Human Behavior, 65, 276-284.
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.
Kalam, K. K. (2020). Market Segmentation, Targeting and Positioning Strategy Adaptation for the Global Business of Vodafone Telecommunication Company. International Journal of Research and Innovation in Social Science (IJRISS), 4.
Nkpurukwe, O. I., Amangala, E. A., & Wali, A. F. (2020). Mobile Marketing Strategies and Customer Patronage of Mobile Telecommunication Services. International Journal of Marketing Research Innovation, 4(2), 1-8.
