Question

Positioning a Watch

In this simulation, you continue in your role of Senior Vice President for Marketing at Enhanced Analytics, Inc., a

provider of marketing and consulting services, with headquarters in Austin, Texas. In this role, you report directly to

the CEO of the company and are responsible for decision-making and marketing strategy. You oversee a

department with 25 employees at the company.

Enhanced Analytics’ new client is a maker of watches and other wearable electronic gadgets. The company has a

new product on its drawing board: a smartwatch that is capable of monitoring the user’s vital health stats, such as

heart rate and blood pressure, as well as displaying information about any incoming or missed calls from the user’s

smartphone.

The company is now in the process of identifying the ideal market segment for its upcoming product and you have

been tasked to assist. Your role is to identify a specific age group and geographic area that is most likely to want

to purchase your client’s smartwatch.

Prepare a written report for your client describing your chosen target market and your reasons for selecting it. The

report should contain the following sections:

1. A description of the age group and the geographic area you recommend for the launch of the product. Include

specific data related to the size of this market.

2. A justification (a minimum of 500 words), outlining the reasons you recommend this particular target market, and

not others.

Include outside research to support your ideas. There is no page limit to this assignment. The assignment will be

considered well-done if it contains all the required sections and subsections, if it is clearly written and your

thoughts and ideas are supported by specific data and research.

Answer 1

The age group which is to be targeted marketing of the smartwatch would be the 18 to 30 years old age group who are the most health conscious being extremely conscientious regarding their fitness but require something more than a fitness tracker as the technology requirements and expectations of this age group are high wanting as many features including some over-the-top to be included in every gadget that they purchase. Most smart watch owner are males at 71% with females referring fitness trackers as compared to smart watches. the middle income group is a target segment as the device is capable of fulfilling multiple functions and these are mostly young professional starting out on their careers and looking to achieve success. So the basic demography for the company would be 18 to 30 year old males with income of dollar 45000 or below.

The geographical area most suited for marketing the product would be the Asia Pacific region as it is slated to experience the highest cagr projected for the smart watch market of 19.4 % during 2018 to 2025. The initial could be focused upon countries of China Japan South Korea and India which have the added advantage of being densely populated and offering large Markets and customer base.

The demand for smart watches is likely to be propelled by increase in health awareness among the consumers along with entry of large number of key players further driving the market expansion and growth of the smart watch industry. The increased investment for building the required infrastructure and ecosystem for supporting these devices will also impact the Global smartwatch market. The market has extensive potential provided adequate analysis of the lucrative trains accurately studied for identification of consumer demand to create products with required features for perfectly fulfilling this demand. Gaining sustainable competitive advantage true leadership facilitated by a strong foothold within the industry which is in the initial stages shall provide long term returns.

U.S. Wearable Ownership by Demographics 80% 70% 60% 50% 40% 30% 20% 10% 0% 18-24 25-34 35-54 55+ $45K $45K-$74.9K $75K-599.9 $100K GENDER AGE INCOME Ftness Tracker Smartwatch

BY REGION EUROPE NORTH AMERICA LAMEA ASIA-PACIFIC Asia-Pacific region would exhibit the highest CAGR of 19.4% during 2018-2025.

Global Smartwatch Market Segmentation and Forecast, 2013-2020 Global Smartwatch Market by Application Global Smartwatch Market by Geography Global Smartwatch Market Global Smartwatch Market is Expected to reach $32.9 Billion by 2020 Personal Assistance Wellness Medical/ Health Sports Others North America Europe Asia-Pacific LAMEA IRevenue comparison of Application segment(o3) Growing at a CAGR of 676% 2014-2020 Asia Pacific Global Smartwatch Market By Global Smartwatch Market by Product Extension smartwatch OS Asia-Pacific Highest Revenue Generating Geography by 2020 Classic smartwatch Windows Others Standalone smartwatch Revenue comparison of Operating system segment () I Revenue comparison of Product segment (o) For More Details See Table of Contents

GLOBAL SMARTWATCH MARKET TOP IMPACTING FACTOR Growth in demand of wireless fitness & sports devices Rise in investment on building connected ecosystem Increasing health awareness among the consumers High initial costO Entrance of large number of players O 2017 O 2025