The technology is advancing at a breakneck speed. Even before people get accustomed to the technology, advanced versions are already launched in the market. Along with technology, marketing has also come a long way. It is important to develop new and improved sustainable market offering and perform situation analysis to promote and sell the product in the market.
This report discusses the importance of sustainable market offering and corresponding situation analysis by taking smart watch as the case study. It explains the concept of new and improved sustainable offering using creative problem solving (CPS) strategy. Different marketing strategy tools such as PEST and SWOT analysis are utilized to understand the factors affecting marketing.
The report is divided into different sections. Section 2 describes CPS principle in solving marketing problem. Section 3 explains the concept of sustainable market offering. Section 4 explains the concept of suitable analysis by utilizing PEST and SWOT marketing tool. Section 5 concludes the paper.
CPS stands for creative problem solving and as the name suggests is a strategic tool to develop solutions to the marketing problem (Armstrong et al. 2014). It involves the following steps.
Problem identification: With people becoming more and more tech-savvy, the need for having everything at one go has become the goal of the people. The conventional wristwatch has many disadvantages, which led to the invention of smart watch. The wristwatch lacks many facilities such as GPS, music, checking notifications, making calls, and the most trending fitness app (Shirazi and Henze 2015). Wearable technology is the new trend in the market. The possibility of having the whole technology on your wrist has attracted many customers (Rawassizadeh, Price and Petre 2015). This has led to the downfall of wristwatch.
Problem delineation: The major problem discovered with wristwatch was the inconvenience faced by the people. The people found it unnecessary to have extra weight on their wrist for the sole purpose of keeping track of time. Mobile phone has replaced wristwatch as cell phones can perform the function of timekeeper and much more with ease. Many people categorized wristwatch as old and outdated, and the day was not far when it would have soon become fossil (Proctor 2014). The manufactures redesign the wristwatch by trying to making it more fancy and appealing. However, if the product does not provide solutions to the problem, the productivity of the product will decrease (Adapa et al. 2017). In order to recapture the interests of the people, smart watch came into existence.
Information gathering: New York Times reported the decrease in the sale of wristwatch from 2008 as the younger generation preferred smart watch as compared to the traditional watch. The wristwatch industry has witnessed increase in the sale in 2010; however, it was found that the buyers fall into the older sections of the society who are aged 65 years and above. According to the Economists, the future of smart watch is very bright, with the growth rate to increase to 23% in the coming five years (Economist.com 2017).
Idea generation: Smart watch is the new trend in the society. It is widely used by the people due to its multi-feature facility. It is an internet of things. It has a host of applications such as it enables to make calls, receive notifications, listening to music, customization and navigation facility, and installed with fitness app (Proctor 2014).
Idea evaluation and refinement: The prominent feature is the fitness app. It is enabled with fitness trackers, which can help people to manage the health and work at the same time. As people are nowadays more health concerned, this app will definitely make them feel worth about the money spent. Moreover, the notification app is helpful as it prevent the need to check the mobile phone frequently (Shirazi and Henze 2015). Everything is accessible by just one click. With the increase in the simplicity in everyday’s work, smart watch has given a new outlook to the people.
Sustainable market offering
The smart watch is a complete package in itself. The product promises to fulfill all the unmet needs of the customers and provide a better solution to their problems. It is solely a customer good, made for and by the people. It is designed to provide the customers comfort and accessibility that were lacking in the conventional watch. The first and foremost feature of smart watch is its one in all applications (Cecchinato, Cox and Bird 2015). The able to monitor the incoming messages, e-mails, and calls without the trouble of removing phone from the pocket is an exciting feature of smart watch. Not only in the ease of use, but also smart watch is widely used in health care sector. It provides facilities to monitor heartbeat, respiratory rate, and installed with fitness tracker. It can also function as a pulse oximeter (Ehrler and Lovis 2014). Apart from that, apple smart watch provides waterproof and durability facility. Smart watch also encourages social etiquette in the users. It is considered rude and impolite to check cell phones while having conversation with others. Moreover, checking mobile phones in office and college can be problematic sometimes. Smart watch solves this problem with just one touch. It is easier, comprehendible, subtle, and user friendly (Cecchinato, Cox and Bird 2015). Along with monitoring both health and work, it also provides recreational facilities through music. Thus, you can achieve fitness while enjoying music and an inbuilt GPS. With all the application in one watch, it is economical to the user too (Adapa et al. 2017). Hence, it provides economic, social, and environmental sustainability benefits to the people (Peattie 2012).
Situation analysis assists in designing appropriate marketing plan. It provides better understanding of the market by assessing the different external and internal factors affecting the organization and its product (Armstrong et al. 2014). PEST and SWOT are the two well-known strategies utilized for designing proper marketing plan (Ho 2014; Hollensen 2015).
4.1. PEST analysis
It is an acronym for political, economical, social, and technological factors influencing the market (Ho 2014).
Political factors: Australia is considered one of the leading countries for embracing technological advancements. It was reported that the government for the development of new technology and innovations invests an estimate of $2.9 billion (Economist.com 2017).
Economic factors: The sale of smart watch has increased considerably over the years. Apple smart watch is leading the market, with the sale figures reaching up to millions (Economist.com 2017). This shows the buyers considered it affordable and worth the money.
Social factors: Smart watch is a trend in the society. It has entered the social class. Not only the younger generations, but also the older generation in Australia finds the new technology captivating and exciting (Ehrler and Lovis 2014).
Technological factors: Technology in Australia is always at its peak. The rapid advancement of the technology and the increase in the sale of the smart watch has decreased the production costs (Friedman 2017). In a short time, it will replace the mobile phone and become an indispensable part of the society.
SWOT is an acronym for strength, weakness, threats, and opportunities and is the most important management tool to study the market and the position of the product (Armstrong et al. 2014).
- It provides many features in one device promoting one in all application.
- It helps to check notifications, receive calls, e-mails with just one click (Shirazi and Henze 2015).
- It is easier to use, comprehendible, feasible, and subtle (Cecchinato, Cox and Bird 2015).
- It helps to remain fit and healthy with the fitness tracker app.
- It provides recreational benefit with the music app.
- It provides customization option.
- It provides navigation tools (Friedman 2017).
- There are no battery life issues.
- It encourages social etiquette behavior.
- It is helpful in health care sector to monitor heart and respiratory rate (Ehrler and Lovis 2014).
- It provides inaccurate data for the physiological measurements.
- There is lack of charging facilities and the cables are uncomfortable and arduous (Cecchinato, Cox and Bird 2015).
- Tiny screen causes visibility problems and is a challenge for usability.
- Cost of productivity.
- Many researches are still in progress to add new and advanced features to the smart watch that will attract the buyers.
- Increase in the number of buyers will increase the sale and market for smart watch.
- Promotion of smart watch is easily achieved through digital marketing (Hollensen 2015).
- Increase in the competition among the organization (Friedman 2017).
- Increase in the presence of substitute products in the market.
- There are different government norms and regulation for wearable technologies (Rawassizadeh, Price and Petre 2015).
Market and customer analysis
The growth in the market of smart watch is tremendous with the revenue generated is in billions. With the addition of new features, the number of customers opting for smart watch has also increased considerably (Peattie 2012). It provides a potential market for the customers in the coming years. It has met the different cultural, social, economical, and social needs of the customers.
Wearable technology is the new buzz in the technology industry with smart watch leading the industry. It has become consumer’s first choice with the new features and applications. It has made its way into the health sector too. Thus, it is now possible to manage work and health at the same time with smart watch. Everything is within the reach of the buyer with just one touch. It provides the possibility of having the whole technology at your wrist. Thus, there is sustainable market for smart watch in the near future.
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