Analysis of the New Samsung Gear Watch - Case Study Example

SAMSUNG GEAR WATCH i. Introduction There are many reasons why companies create new products, mostly based on the interests; naturally, among the core reasons is filling an urge or desire in the corporate market area. New products act as a potential platform for development with the core challenge being marketing, whether it is locally or internationally (Gannon 2014). Concurrently, marketing of new products is among the most discussed topics in the corporate world, mostly because very few companies succeed in making the best out of them for the first time in the market. Relatively, marketing strategies and campaigns put ample attention on promotion, customer satisfaction, market competition, advertising, potential sales and profit. Essentially, implementing the best marketing strategies for a product gives a company the chance to endorse their merchandise inform of new products, to consumers with extensive needs. Depending on a field or market, the best marketing strategy should definitely assist a company in creating bonds with customers through various outlets, testing the appeal of the new product; selection of the right approaches for the targeted market and obviously, increasing the sales. Logically, most companies focus on these major factors; however, when dealing with products such as smartphones or watches it is essential that the marketing strategy incorporate ways that will give the consumers captivating info, which they will share with other potential customers, as a competitive advantage. Decisively, relative to marketing of a new product, this paper entails a marketing approach for the Samsung Gear Watch. The basis of the discussion is on vigilant development and clear comprehension of the smart watch market as indicated by previous records of benefits and challenges experienced by Samsung and other companies. Moreover, the marketing analysis is comprehensive focusing on the global economy, a factor that most companies leave out in their plans for a new product. ii. Samsung Gear Watch The new Samsung Gear Watch entails properties of smart-watch that integrate with a few of the Samsung smartphones. The design is not bulky like the earlier versions and has multiple app selection, making it a recommendable gadget. Generally, the Samsung Gear Watch displays wide attention on suitability hence targeting multiple markets including that of consumers extensively concerned about their health. Additionally, the company’s new product marks a shift of Samsung, which originally focused on android to the Tizen platform with more efficiency in aspects of power and custom output. The Samsung Gear Watch premiers in all Samsung outlets and the company promises to offer discounts to the first customers who buy the new product. Currently, the Android Samsung Gear watch goes for $250 in places like best buy; considerably, the new product will go as low as $300, depending on the time one purchases it and the range of discounts. Most companies only offer discounts when they plan to launch another product; however, offering discounts for a new product is rare but acts as an advantage through attracting more consumers to increase the sales. iii. Commercial Considerations For a new product, the first step of marketing entails considering the definition, development and launching; however, for technology and engineering other aspects should be part of the package too. The target market should be part the Samsung Gear Watch’s definition since it is part of the new product line versus the prevailing product line. With a clear understanding of this maneuvering through the market is easy since all other things such as meeting consumer needs, fall into place (Boaxal 2014). Relatively, the design of the new Samsung Gear Watch defines the target markets, where it covers the existing, new and potential markets. Focusing on all markets will create a platform with limited product choices, few competitors and enthusiastic customers unlike focusing on just one market, which creates an opposite situation. However, venturing into existing and potential markets increases the risk but creates a better understanding of consumer needs, competition such as Apple or LG, and market segmentation. Relatively, the best way to get details on the market, consumers and the completion will entail conducting a market analysis, setting a product strategy and self-evaluation in reference to products such Apple Watch. The market analysis for the Samsung Gear Watch includes ceasing all opportunities, including market segmentation as part of the strategy and definition of all the target markets. The product strategy focuses on all aspects of the product including the development where Samsung’s objectives dictate the gear watch’s specifications as per the needs of the consumers. Additionally, strategic partnerships with wrist watch international dealers widens the market but this will only work if the partners understand the value of the Samsung Gear Watch to the consumers (Gordon 2010). Finally, for competition, information is the key aspect, and with Samsung showing interest in smart-watches from Apple and LG, differentiation is easier giving the gear watches a better chance in the market. iv. Economic Considerations New products always have a hard time in the economic marketplace; unfortunately, technological devices experience more challenges and disappointments. Today, almost all leading computer and smartphone companies are producing smart-watches with new developments on similar updates or additions depending with the latest advancements on technology. With this in mind, the only solution is coming up with the best approach for marketing the Samsung Gear Watch. The best approach is setting prices that the consumers are comfortable with; however, the considerations should also include the company’s investments on the new product. Multiple pricing strategies would apply for the Samsung Gear Watch in the market depending with the current conditions and the competitor’s prices. On the first few months after the launch, economy pricing will work and with a price of up to $300, the new product will assist in undercutting the prevailing charges of competitors offering products such as the Apple Watch. This acts as an advantage because the Samsung Gear Watch has better features than those of earlier versions or any new version from the competitors; moreover, this strategy will cut costs on marketing and branding plans. After a few months of sales, Samsung can implement bundle pricing by selling the new Samsung Gear Watch with a new product from the company, such as the Samsung Galaxy Note 4 at a reasonable amount, marginally lower than selling the two disjointedly. Definitely, this will add value for the smart-watch and will increase its sales and those of the secondary product. Sequentially, price skimming, could also work after a year because competitors will start producing smart-watches with similar or better features (Gordon 2010). Reducing the price of the Samsung Gear Watch will guarantee a firm position in the market, even with the multiple advancements. v. Ethical Considerations As part of Ethical Considerations, the right market audience has always been an issue for computer and mobile phone technology companies. Through different marketing strategies, most companies are so much into creating the demand for new products that they discern certain markets through acts or statements from advertisement or brochures. For instance, some companies have faced lawsuits because portraying negative attitudes towards homosexuals or the black people community. Resultantly, the Samsung Gear Watch marketing strategies consider this by avoiding any marketing ploys portraying or making unethical suggestions to any susceptible audiences (Gannon 2014). Additionally, the strategy aims on the execution of a P.R. method that replicates the consumer contribution by focusing on the common goal, which is making a gear watch that supports the latest or advancements in portable technology and a wide selection of applications. Generally, the marketing strategy for the Samsung Gear Watch, as a new product seeks to promote uprightness, equality and accountability in all advertising relative to the company’s respected reputation. vi. SWOT Table Analysis Strengths i. Brand name valued at more than $35 billion ii. Product customization iii. Environmental record iv. Competency in mergers and acquisitions v. Direct selling business model vi. Effective leadership vii. Strategic capabilities Weaknesses i. Limited Applications ii. Poor lifespan iii. Low investments in R&D iv. Weak patents portfolio v. Limited retail locations vi. Low differentiation vii. Processes and systems viii. Organizational culture Opportunities i. Expand services and enterprise solutions businesses ii. Obtain more patents through acquisitions iii. Strengthen their presence in emerging markets iv. Portable technology market growth v. Innovations vi. Global trends vii. Technological factors Threats i. Growing demand for smart watches (Boaxal 2014) ii. Profit margin decline on smart-watch products iii. Slowing growth rate of the smart watch market iv. Intense competition v. Economic environment vi. Legal and regulatory factors vii. Environmental factors BIBLIOGRAPHY Boxal, A. 2014, Two Million Smart-Watches Sold Last Year: Digital Trends, viewed 4 December 2014, http://www.digitaltrends.com/mobile/galaxy-gear-top-selling-smartwatch/ Gannon, D. 2014, How to Market a Brand New Product: Inc. Viewed 4 December 2014, http://www.inc.com/guides/201106/marketing-a-brand-new-product.html Gordon, K. 2010, Marketing Tips for Launching New Products: Entrepreneur, vie wed 4 December 2014, http://www.entrepreneur.com/article/76364 Read More