Marketing Foundations: Neo Smartpen N2 Analysis

The purpose of the report is to understand the market presence and influences of the internal and external environment by conducting PESTLE and SWOT analysis. The paper demonstrated the target market and associated market segments of the market. The main segment that should be targeted is the tech-savvy customers, animators and artists. The product should mainly be communicated through online platform. The product should be distributed mainly through own website, own retailers and authorized stores. The pricing proposal is recommended with the objective profit-based association. Competitor-based pricing is suggested.

Running head: MARKETING FOUNDATIONS
MARKETING FOUNDATIONS
Name of the Student
Name of the University
Author Note

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Executive Summary:
The purpose of the report is to understand the market presence and influences of the internal
and external environment by conducting PESTLE and SWOT analysis. The paper
demonstrated the target market and associated market segments of the market. The main
segment that should be targeted is the tech-savvy customers, animators and artists. The
product should mainly be communicated through online platform. The product should be
distributed mainly through own website, own retailers and authorized stores. The pricing
proposal is recommended with the objective profit-based association. Competitor-based
pricing is suggested.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Target Market/Segment:.........................................................................................................5
Macro-environment- PESTLE analysis:................................................................................7
Marketing Mix:......................................................................................................................9
Product Strategy-................................................................................................................9
Product class:.....................................................................................................................9
Product Life Cycle:............................................................................................................9
Place strategy-..................................................................................................................10
Channel of distribution:....................................................................................................10
Physical distribution of goods:.........................................................................................10
Intermediaries:..................................................................................................................10
Promotional strategy:.......................................................................................................10
Promotional mix:..............................................................................................................11
Advertising-......................................................................................................................11
Sales promotion-..............................................................................................................11
Public Relations-..............................................................................................................11
Digital marketing-............................................................................................................11
Pricing strategy:...............................................................................................................12
Conclusion................................................................................................................................12

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Introduction
Marketing is considered to be the business procedure, which involves the stimulation
of relationship between organization and satisfying consumers. Marketing is one of the most
significant field in business management as it directs the focus towards customers (Baker
2016). The purpose of the report is to assess the internal and external environment of an
organization for deducing the marketing mix elements. The organization selected for this
report is Neo smartpen. The paper will conduct the internal and external analysis by the
framework of SWOT and PESTLE.
The product of Neo Smartpen that will be highlighted in this paper is Neo smartpen
N2. The product is designed for the purpose of writing, similar to conventional pen. The pen
offers seamless transition as compared to past experiences. The pen is technologically
advanced with Bluetooth connectivity, light, durable and slim design. The brand believes in
most advanced technological implication as well as aims at combining the traditional and
digital worlds of recording data. The second generation of Neo Samrtpen is being introduced
by Kickstarter. Kickstarter is involved in developing creative and innovative products by
arranging funds and resources. Kickstarter pledged of raising 359,112 Australian dollars for
helping with the launch of the Neo smartpen N2 launch.
Discussion
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The strategic
planning process that is utilized for helping organization or entity learn about the internal
factors, strengths and weaknesses as wells the tool that helps in deducing external factors,
opportunities and market threats in relation to a business is known as SWOT analysis.
SWOT Analysis of Neo Smartpen and Neo Smartpen N2 by Kickstarter:

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Strengths:
Neo Smartpen-
 Advanced technology and
compatibility with both iPhone and
android.
 Enables the functionality of
digitalization of notes
(Neosmartpen.com 2019)
Neo Smartpen N2 (Kickstarter)-
 Faster connectivity with digital
devices and increased accuracy
 Instant recognition of the shape and
size of paper (Kickstarter.com 2019)
Weaknesses:
Neo Smartpen-
 Complexity in using the phone
application
 Can feel heavy, if used for longer
duration
Neo Smartpen N2 (Kickstarter)-
 High price
 Low battery life
 Issue of data syncing
Opportunities:
Neo Smartpen-
 Incorporating Artificial Technology
in the models
 Increasing the range of usage by
making it compatible for writing
digitally
Neo Smartpen N2 (Kickstarter)-
 Introduction of offers for wider
reach with support of Kickstarter
 Enhancing the batter life for writers
and animation industry.
Threats:
Neo Smartpen-
 Increasing competition
 Future concern of funding or
sourcing advanced technology
 Increasing sustainable practice of
paperless lifestyle.
Neo Smartpen N2 (Kickstarter)-
 Longer process of digitalization
 The obligation of buying specific
notebooks for using the actual
smartpen.

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Target Market/Segment:
Target market can be defined as specific groups that is aimed for establishing and
communicating marketing messages. The target market are the group of people that are
considered to be the potential customers of an organization with the ability and preferability
of buying the offered services, product or idea (Lovelock and Patterson 2015). After the
identification of the target market, businesses constructs their marketing mix in accordance
with the identified preferences and expectations. The process of identifying target market
may involve the process of market research about the buying behavioural patter with the
learnings about the internal and external influences (Chernev 2018).
Segmentation can be defined as the process of dividing market in various segments
that are accessible, definable, profitable and actionable in terms of potential growth of
organization. Segmentation enables the process of identifying target market. The main aim of
conducting segmentation is introducing customized marketing program or message for
various segments in the market. There are four categories of segmentation, geographic
segment, demographic segment, psychographic segment and behavioural segment.
In the next three to five years, the company will aim at the core segment of animators,
artists and tech-savvy consumer group. The main functionality of the product can be aligned
with the occupation of an animator and artist, as it can increase their efficiency of creativity
with precision. The smartpen company can address the preferences of tech-savvy segment by
the advanced technological implication in a traditional looking pen. The tech-savvy segment
can also be targeted by introducing new models of Neo smartpens for the provision of
updation.

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The segments of market that will be targeted in respect of the categories of segmentation are
as follows:
 Geographic segment:
 Global reach: The reach of the product will not be limited to geographical
boundaries. The products are currently available globally through online
markets, but the company can increase the reach by opening physical stores
and selling through own website globally.
 Urban and suburban population: Introducing newer product ranges for the
purpose of targeting urban and suburban population can be successful for the
brand growth.
 Demographic segment:
 Occupation: The Company can target animators, artists and corporates for
increasing creativity with accuracy.
 Education: The Company’s product can address the needs of recording notes
and significant data for the university students.
 Income: The high income and middle income groups can be targeted.
 Behavioural segment:
 Benefit expectation: The benefit of digitalizing the paper notes accurately will
reflect immense value for the people seeking for benefits.
 Brand loyalty: Loyalty can be generated amongst the young consumers by
introducing software updation and technology advancement of the product
offerings.
 Psychographic segment:
 Lifestyle: People with the involvement of creative activities or a university
student who prefers keeping notes for every subject can be targeted. The

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company can address the preferences of the people with interest in gadgets,
creativity.
 Personality traits: People who reflect the traits of openness, extrovert and
introvert with the association of creativity.
Macro-environment- PESTLE analysis:
PESTLE analysis includes political factors, economic factors, social factors,
technological factors, legal factors and environmental factors.
Political factors: The political factors includes the factors of political stability, governmental
influence including regulations and laws. Government trade agreement and support is also
included in the political factors. Taxation policies are a segment of political factors.
Australia reflects a stable political environment with the title of 6th largest country of
the globe in terms of area. The country is a member of Word Trade Organization,
Commonwealth of Nations, G20 and OECD. The country has been criticized for the
deportation laws and for the treatment of refugees. However, the government highly supports
both local and internal businesses.
The state is positive for the company and technological sector because of the stable
political environment and governmental support on businesses. The company has an
opportunity of increasing its reach in the country by seeking governmental support. The
company may face challenge with the aspect of immigration law, restricting diverse
population.
Economic factors: The economic state of a company should be understood before
establishing or growing a business. The factors includes income level, GDP, exchange rates,
employment and employment rate.

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Australia holds 13th position in the world economy. The GDP of Australia in the year
2018 is 1.69 trillion AUD. According to data by Australian Bureau of Statistics, GDP grew
during 2016 to 2017 by 2.1 percent and during 2017 to 2018, the GDP grew by 2.9 percent.
The company tax rate of 2018-2019 is 27.5 and is projected to decrease in the coming year.
The employment rate increased in July from June, around 62.60 percent from 62.50 percent.
Implementation of zero import tariff.
Social factors: The social factors includes the aspect of culture, religion, attitude and values.
It also includes, population trend, diversity, ethnicity and life expectancy.
The country Australia has diverse culture with major focus on education. Life
expectancy of women is 84 years and men 80 years (average). More people are retiring than
working class.
The social factors are moderately positive for the industry. The opportunity of
addressing the needs of diverse population can be used as an opportunity. The challenge of
appointing workers can be challenging due to the state of life expectancy.
Technological Factors: The technological factors include investment and acceptability of
advanced technology.
Australia is most advanced in technological implications. Australia invested around
65 billion AUD in 2019.
Positive for the industry. The company has the opportunity of growing its
technological infrastructure.
Legal factors: The aspect that are included in the legal factors are law for consumer act,
competition. Regulation regarding advertising.
Australia portrays fair laws of trade. Australia focusses on the Fair Work Act 2009 for
employment governance.

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Positive for the industry. The opportunity of expanding ethically without unfair
competition.
Environmental factors: The state of climate change and weather condition is included in the
environmental factors.
Australia is facing environmental challenges like climate change. It portrays threat the
stricter rules for the industry. The company needs to adopt sustainable practices.
Marketing Mix:
Product Strategy-
Product class: The product, Neo smartpen N2 belongs to speciality goods. Consumers invest
effort, time and considerable amount before making purchasing decision. The product is
generally compared between other models of same company rather than competitors.
Product Life Cycle:
The product is in growth stage. In growth stage, the awareness and sales increases for
companies. The company sells product line with different smartpen products (Fan, Lau and
Zhao 2015).
Total product concept:
Core product: Digitalizing hand written content or drawing
Expected product: The quality of the smartpen is robust. Features includes accurate detection
of shape and size of paper, almost accurate detection of written or drawn content. The style is
similar to traditional pens, light weight, stylish and durable. The packaging is stylish and
compact with the needful items. It uses family branding. Family branding is marketing
numerous products under same name (Kotler et al. 2015).

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Augmented products: The Company offers effective customer service but needs to increase
the reach. The software does not include warranty, which should be considered for enhanced
value.
Place strategy-
Channel of distribution:
The company can use both direct and retailer channel. Direct channel directly sells to target
consumers. Retailer channel will include third party or own retail chain for reaching
customers. The level of distribution intensity will be selective distribution by selecting the
authorized retailers.
Physical distribution of goods:
The company should own won warehouse for quality standard. Yes distribution centre can be
used for reaching to the authorized and own retailers. Cross docking can help in decreasing
cost, increasing efficiency and customer service. Air transport will be effective for the
company. E-distribution will be availed through authorization to Amazon and own website.
Intermediaries:
The retailers will be located at various regions of Australia, Unites States and developing
countries like, India. The retailer will be positioned as the form of a workforce of design and
animation, reflecting the features of the smartpen. The image for the Neo smartpen N2will be
based on technology. Both speciality and online retailers will be used. Category killer
speciality store will be established for demonstrating technological offerings, smartpen and
notebooks. In online stores, general marketplace and own website will be used for wider
reach and authenticity. Limited-service merchant retailer will be used for reducing the
dependency of the operational process on third party.
Promotional strategy:
The objectives of promotional strategy are:

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 Creating awareness for the product
 Building brand recognition
The company will use informative promotion, by demonstrating the features, accessibility
and application of the product offering. Informative promotion aims at developing knowledge
and understanding of the product.
Promotional mix:
Advertising-
The product will use pioneer advertising for the purpose of spreading awareness about the
product launch. Pioneer advertising enables the process of spreading awareness and
knowledge about a product development. Internet will be used as the medium for
advertisement. Internet will offer wider reach and will be cost effective.
Sales promotion-
The consumers will be offered by exchange offers for creating brand loyalty. Loyalty cards
will be generate for exclusive offers and early launch benefits.
Public Relations-
Consumer education: The aspect of consumer education will be used for spreading
knowledge about the applications and features of Neo smartpen N2.
Event sponsorship: Event sponsorship can be facilitated in the corporate events and university
fest for communicating the features to the target consumers (Haider et al. 2019)
Digital marketing-
Social media: Social media tool will be used by creating a community group of youngsters
discussing about the world of digitalization.
Blogs: Tech Bloggers will be appointed for influencing a wide range of followers who are
tech-savvy and up-to-date.

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Pricing strategy:
Profit-oriented pricing will be used for the product. Adding a profit margin over the total cost
for ensured profit. The pricing method will be based on competitors for creating a premium
segment of the brand. Using competitors’ product as a benchmark for setting prices is known
as competitor-based pricing.
Conclusion
Therefore, it can be concluded that the company needs to stimulate the awareness of
Neo smartpen N2 by communicating the information regarding the features and applications
of the product. The product can mainly target, animators (occupation), artists and university
students. The product needs to create brand recognition for aligning the thought of smartpens
with Neo smartpens N2. The Australian market is attractive for growth and development of
the company. The core feature of the product will be distributed mainly through own retail
outlets and authorized seller. Online sites and websites will also be used for distributing
products. The price will be based on competitors’ and for the purpose of stimulating profit.
The promotion strategy will be mainly focussed on online platforms like, blogs and social
media.

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References:
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Haider, A.A., Zafar, A., Khalid, A., Majid, A., Abdullah, M.A. and Sarwar, M.B., 2019.
Marketing Management.
Kickstarter.com 2019. Kickstarter. N2 – Writing experience as a pen with digital
convenience. [online] Available at: https://www.kickstarter.com/projects/749212640/n2-
writing-experience-as-a-pen-with-digital-conven
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Neosmartpen.com 2019. Neo smartpen. HOME - Neo smartpen. [online] Available at:
https://www.neosmartpen.com/en/