Smartwatch Marketing Strategy in Australia

This assignment examines the need to improve marketing strategies for smartwatches in the Australian market. It highlights the growing popularity of wearable technology in Australia and the increased competition from international companies. The document emphasizes the importance of adapting marketing plans to this competitive landscape. It suggests leveraging various social and digital media platforms, word-of-mouth marketing, and strengthening customer service after sales to effectively reach a wider Australian audience.

Running head: MARKETING PLANNING
Marketing Planning
Name of the Student
Name of the University
Author note

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Executive Summary
The smart watches are considered to be a necessary gadget in the wearable energy industry in
recent times. The Australian market of the wearable energy is expanding in a fast rate
nowadays. This report has dealt with the marketing plan and the communication ideas of
launching a new smart watch with advanced technologies which consists of the software
made by the famous international IT Company IBM. The report also exhibits an extensive
analysis of the marketing opportunities which is capable of enhancing the launch of the
product in the Australian market.

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Table of Contents
Introduction................................................................................................................................3
Situation Analysis......................................................................................................................3
Opportunities and issues statement............................................................................................4
Strength..................................................................................................................................5
Weakness................................................................................................................................5
Opportunities..........................................................................................................................5
Threat.....................................................................................................................................6
Marketing objectives..................................................................................................................6
Marketing strategies...................................................................................................................6
Segmenting:............................................................................................................................6
Targeting................................................................................................................................7
Positioning..............................................................................................................................7
Marketing mix............................................................................................................................8
Profitability analysis.................................................................................................................10
Monitoring and control............................................................................................................10
Conclusion................................................................................................................................11
Reference List and Bibliography.............................................................................................12
Introduction

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Even though the smart watch market in Australia started off in a moderate way, soon
the industry has made its way to the priority list of the Australian consumers. A recent study
showed that the sales of smart watches have increased by 89 per cent in the last financial year
in the Australian market. IBM is an international IT company that is working with another
company for launching a smart wrist watch in the Australian market that incorporates new
and innovative software for exercises and fitness (Hollensen 2015). The organization still
requires making an effective marketing plan and successful marketing strategies which can be
helpful in launching the new product in the market (Armstrong et al. 2015). Therefore this
report discusses the detailed marketing plan including a detailed assessment of the business
environment in Australia along with implementation plan.
Situation Analysis
The wearable gadgets and software are a major part of the device ecosystem which is
embedded with technology and internet connectivity. This incorporates several applications
such as smart watches, fitness trackers, different kinds of smart clothing and skin patches
(Wang and Nien 2016). These wearable gadgets tend to capture the imagination of people
focusing on helping the users staying healthy and slowing down the aging procedure. The
wearable energy manufactures and software providers tend to face several challenges in the
market as the adaption of such gadgets in the consumer market has show a relatively slow
pace despite of the plummeting prices of such products. At the initial stage of using the
products, the basic features of the wearable tend to meet the requirements of the customers,
while after a continued usage; the customers tend to face some issues such as not being able
to monitor their heart rates while they are exercising. The customers also face issues with
visualizing the information as the devices were not provided with any in-built screen (Wu,
Wu and Chang 2016). Therefore, the purchasing drive of the smart gadgets has reduced a lot.

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Therefore, it is necessary for the new organization to create the software which produces
right data which resembles with the actual amount of data. Other than that manipulating and
integrating the data with different other applications seem to be impossible for several smart
gadgets in the market, therefore the new watch can take this previous glitches and incorporate
these features in their watches (West, Ford and Ibrahim 2015). The targeted customers of this
industry are the health conscious higher income group customers who can pay sufficient
amount of money for the gadgets. As there are several prominent competitors in the market,
other than the international brands, such as the small companies, the brand needs a well-
organized marketing plan for entering the market.
Opportunities and issues
Strength
This particular industry is expanding in a fast pace, even though the industry has
shown a downside forecast in the initial stage. The Australian customers are adapting this
technology and opting for smart watches that have been associated with healthcare and
fitness (Choi and Kim 2016). A recent survey has shown that the market is now worth
approximately $US14 billion. Therefore, this market offers a great opportunity for any new
products.
Weakness
There are already well-established organizations in the Australian market that offer
the customers smart watches, such as Samsun, Apple, Toshiba etc. Samsung and Apple have
made their way within the top five companies dealing with wearable energy (Connor 2016).
Therefore, a newly launched product would require a well-developed marketing strategy for
making their way in the market.

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Opportunities
There are numbers of opportunities in the wearable energy market in Australia. Most
of the companies have incorporated the technology off monitoring the blood pressure and
glucose level. However, the newly launched product is including activity monitors, sleep
sensor and heart rate and fitness monitors. The products can be chosen on the basis of the
added activities or specialties and the price may vary (Connor 2016). The supporting software
is making healthy activities easier for the customers, so it would be easier to reach the
targeted customers.
Threat
The established companies such as Apple, Samsung have already entered the market;
therefore this newly launched product would have to compete with these international
organizations (Choi and Kim 2016).
Marketing objectives
 Introducing the innovative smart watch with the advanced technologies which does
not include the previous issues faced by the customers.
 Launching products for both the budget range and premium range which can be
offered to a wide range of clients.
 Offering customers a product that comes in a new model and software that offers an
experience without any malfunction.
Marketing strategies
Segmenting:
The company will put a bigger focus on the basic characteristics of the primary
customer base within the Australian market. The primary target group of the product is the

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higher income group including the business professionals who are health conscious and are
willing to spend money on gadgets (Tabatabaei, Sadjad and Makui 2017). With the budget
range products the company is also targeting the middle income group. Therefore developing
the products will be a major marketing strategy of the organization.
Targeting
The organization will include the improved battery service which was lacking in the
previous models available in the market along with and advanced software which will not
create much problem for the users (Connor 2017). If the product is being targeted to the
health conscious young adults, the products should include advanced applications along with
easily integrated data from the other devices.
Positioning
The new smart watch with IBM software promises the users to meet all their
necessary requirements that had been missing in the available products in the market. As
stated by the marketing team of the company, this product will include sleep sensor, blood
pressure monitor, glucose monitor, emotional measurement, smart glasses, insulin pumps,
smart clothing etc. The product will also include several improvements for the existing
features such as sleep sensors and glucose monitoring with the hearing aids and head up
display for entertainment as well. The company will also launch their product with an
aggressive marketing strategy (Tabatabaei, Sadjadi and Makui 2017). This will help the
product to have a competitive edge in the market; therefore it will be positioned ahead of the
products of the competitors within the market.

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Marketing mix
Price: There is a recent trend of dropping the price of the smart watches in the Australian
market, therefore the company will also follow the trend and drop the price a little so that the
middle income group of customers can also avail the service (West, Ford and Ibrahim 2015).
Product: The product smart wrist watch includes software made by IBM, therefore the
product will have improved and innovative features like sleep sensor, blood pressure monitor,
glucose monitor, emotional measurement, smart glasses, insulin pumps, smart clothing etc.
Place: The organization will launch their product in the Australian market as the reports
indicate that the Australian market of wearable energy is expanding in a fast way.
Promotion: The promotion of the product will involve aggressive and integrated promotional
strategies such as advertising on television, print and social media and branding promotion.
People: The targeted customer group for this product will be the health conscious business
professionals and the young adults. As the company will launch the products in two price
strata, for the higher strata the target audience will be the higher income group and for the
moderate strata the targeted customer will be young adults and middle income group (Connor
2016).
Process: The new product will be launched in a way that the demand of the products is met
fully. As the market of wearable energy is blooming in Australia, the product will be first
launched in the Australian market.
Physical environment: The technology motivated business market will act as the prime
inspiration of the launch of the new product.

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Profitability analysis
Budget plan of the smart watch:
Business activities Expenditure
Broadcast of business $100 M
Commercial on TV $500 M
Newspaper and Magazines $500 M
Social Media $200 M
Outdoor expense $200 M
Total estimated cost $1500 M
Monitoring and control
Monitoring of marketing plan will ensure the company objectives are met and the
brand name and standard are maintained. The management of IBM and the developer of the
smart watch should sit together and discuss the ongoing progress of the entire business
situation and employ the necessary action plans (Meidan, Moutinho and Chan 2015). The
main discussion of such meeting should aim the alignment of all the strategies for launching
the product. However, before the management sits with the marketing team, they require
having a private meeting with blueprint of strategies. As the Australian wearable energy
market is expanding and Australia has the higher rates of adapting this technology, there are
other international companies entering the market. Therefore unique marketing plan should
have greater adaptability.

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Conclusion
In conclusion, it can be said that the existing marketing strategies of the smart watch
should improve for generating more revenues from the Australian marketing. The marketing
planning of the organization will have to ensure that the organization is capable of drawing a
wide range of customers from the Australian market. Therefore the promotional strategies
should include various social and digital media platforms along with the marketing strategy
of word of mouth. The organization should also involve strengthening its customer services
after selling the products.

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Reference List and Bibliography
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Choi, J. and Kim, S., 2016. Is the smartwatch an IT product or a fashion product? A study on
factors affecting the intention to use smartwatches. Computers in Human Behavior, 63,
pp.777-786.
Connor, R.A., Medibotics Llc, 2016. Smart watch and food-imaging member for monitoring
food consumption. U.S. Patent 9,254,099.
Connor, R.A., Medibotics Llc, 2017. Smart watch and food utensil for monitoring food
consumption. U.S. Patent 9,536,449.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Meidan, A., Moutinho, L. and Chan, R.S., 2015. Marketing Effectiveness Index (MEI)-Tool
for Strategic Marketing Planning. In Proceedings of the 1992 Academy of Marketing Science
(AMS) Annual Conference (pp. 480-485). Springer, Cham.
Nijssen, E.J. and Frambach, R.T., 2013. Creating customer value through strategic marketing
planning: A management approach. Springer Science & Business Media.
Sashittal, H.C. and Tankersley, C., 2015. The Marketing Planning and Implementation
Interface: Some Empirical Evidence. In Proceedings of the 1994 Academy of Marketing
Science (AMS) Annual Conference (pp. 103-108). Springer, Cham.
Tabatabaei, S.R.M., Sadjadi, S.J. and Makui, A., 2017. Optimal pricing and marketing
planning for deteriorating items. PloS one, 12(3), p.e0172758.

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Wang, C.H. and Nien, S.H., 2016. Combining multiple correspondence analysis with
association rule mining to conduct user-driven product design of wearable devices. Computer
Standards & Interfaces, 45, pp.37-44.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Wu, L.H., Wu, L.C. and Chang, S.C., 2016. Exploring consumers’ intention to accept
smartwatch. Computers in Human Behavior, 64, pp.383-392.