Developing a Strategic Marketing Plan for Motiv Ring in Australia

The report emphasises on developing a strategic marketing plan for Motiv ring in Australia. The study presents a financial objective for three consecutive years by formulating a budget allocation for promotional mix. Through market analysis using marketing tools, the study elucidates an estimated marketing strategy for the production of Motiv Ring in Australia. The potential target market for the product will be middle class young and middle-aged people including university and school students who are concerned about their health.

Running Head: STRATEGIC MARKETING PLAN
STRATEGIC MARKETING PLAN
STUDENTS ID:
NAME OF THE UNIVERSITY
AUTHORS NOTE

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Table of Contents
Introduction................................................................................................................................4
Discussion of market segmentation...........................................................................................4
Market overview.....................................................................................................................4
Financial objectives................................................................................................................5
Market segmentation..............................................................................................................5
Targeting.................................................................................................................................6
Positioning approach..............................................................................................................6
Formulation of a detailed marketing mix strategy.....................................................................7
Product strategy......................................................................................................................7
Pricing strategy.......................................................................................................................7
Promotional strategy...............................................................................................................8
Strategy for distribution..........................................................................................................8
Budget allocation and promotional mix.....................................................................................9
Conclusion................................................................................................................................10
Evidence of research................................................................................................................12
Mechanics................................................................................................................................14
Marketing mechanics............................................................................................................14
Reference list............................................................................................................................15
Appendices...............................................................................................................................18
Appendix 1: Features of wearable devices popular in the market........................................18

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Appendix 2: Break even Point..............................................................................................19

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Executive summary
The report emphasises on developing a strategic marketing plan for Motiv ring in
Australia. These devices is smart and fashionable wearable device that is used for tracking
movements, measuring calorie burn while working out and other health issues. In this
context, the report presents a financial objective for three consecutive year by formulating a
budget allocation for promotional mix. Apart from these, through market analysis using
marketing tools the study elucidates an estimated marketing strategy for the production of
Motiv Ring in Australia.
However, the potential target market for the product will be middle class young and
middle aged people including university and school students’ who are concerned about their
health. The study focuses on in depth market research for preparing a plan for attracting
increased number of customers.

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Introduction
As a marketer, the individual is required to prepare an effective marketing plan for
providing direction and need to focus on the promotion of the brand. Therefore, with the help
of a detailed plan, a specific business organisation will be able to prepare themselves
effective for launching a new product or develop sales for the existing products. However, a
strategic marketing plan has a limited scope than a business plan as it provides a wide
overview of the entire company's mission, goals and strategies along with the allocation of
the resources.
Based on this, the section highlights a marketing plan for motiv ring for a hypothetical
company whose first product is smart motiv ring. It is a smart device ring that helps in
measuring activity such as heart rate, work out movements. Beneath the smart features, the
device is highly durable, waterproof fixed with titanium, shell with a combined Bluetooth for
tracking fitness.
Discussion of market segmentation
Market overview
A current report by IDC showed that the global shipping of the wearable devices is
estimated to grow by 101.9 million by the year 2022 and the market industry for these
devices is assumed to expand by CAGR of 20.3% by the year 2017-2020 (Kekade et al.,
2018). By the end of the year 2020, the net shipping of wearable device will be reaching
213.4 million per unit.
There is an increasing adoption of smart devices in the mass market that represents
that there will be the growth of more sophisticated devices with the increase of demanding
users. A more intuitive user interface will be developed for enhancing the user experience for

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offering value beyond core operations. However, from the perspective of design, the
wearable devices have not been observed as successful in developing a device with
affordability (Do, Martini & Choo, 2017). In addition to this most of the wearable devices
have focused mostly on the operational utility of the smart device
Figure 1: Growth of wearable devices
(Source: Do, Martini & Choo, 2017)
Financial objectives
 Increase sales with at least 8 % by the year 2018 and 10% by the end of the year 2019.
 To develop a gross profit margin of market higher than almost 2% each year.
 To increase the cost of goods sold by 6% each year gradually in year 1, year 2 and
year 3.
Market segmentation
Based on the application of the motiv ring device the technology can be classified into
several major segments including fashion, communication, lifestyle computing, health fitness
and clinical security. However, the market trend in Australia witness over the past decades
shows that leading wearable devices such smartwatch and fitness tracker such as fit bit has
been used by the consumers for multiple application mostly for health and fitness (Anaya et

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al., 2018). Therefore, as a consequence, the barrier in between health and fitness, wellness
and computing and health has become more blurry.
Targeting
The target market strategy of the organisation is based on the differentiation of
product through the development of motiv ring device. In this context, the primary consumers
of the company are middle class to the upper-middle-class population who are more
concerned about their health and are need of a portable device to balance their busy
schedules. In addition to this, the secondary target customer is high school children and
students from the university who are acquainted with the use of multimedia, dual mode
device (Gretzel, 2015). However, these segments can be represented as the age group from 16
-35 with proper educational level.
Moreover, the primary business target is large size fitness organisation that want to
help their management employers for the stay in touch with regular health and able to access
critical health-related and data (Delabrida Silva, 2017). The company is also targeting small
business entrepreneur along with users who are keen about accessing patient's medical data
thereby reducing paperwork.
Positioning approach
The company will be using a product differentiation strategy for positioning the Motiv
ring device. This will be the most versatile, convenient, and value-added process for the
purpose of personal as well as professional use (Meritam, Ryvlin & Beniczky, 2018). Apart
from these, that the market positioning strategy of the company will be based on hands-free
functions for multiple channels of communication and information distribution that will allow
them to differentiate from their competitors.

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Formulation of a detailed marketing mix strategy
Product strategy
The motiv ring will be including all the characteristics that have been illustrated
earlier that will be sold within a period of one year warranty. Most of the smart jewellery are
sold today designed for the purpose of catwalk or celebrity events (Byun et al., 2018). The
device, therefore, will be designed for measuring and capturing events and that will sidestep
the regular cleaning and battery issues.
By doing so, the company will be introducing a more compact, lightweight and
attractive model in the second year of the launch provided with an increased number of
colours. Developing the motiv ring brand is the important part of the product development
strategy. The brand and logo will be displayed on the packaging of the product that will be
enforced by the efficiency of the introductory marketing campaign.
Pricing strategy
The company will be offering a premium pricing strategy that will be most fruitful for
the beginning phase of the motiv ring production. In this context, the premium price for the
product will be set at AU $185. The product will be shipped in international locations as well
as at the local area across Australia (Nikolaou & Lean, 2017).
However, it has been estimated that there will be a reduction in price after the launch
of the first product in the market due to the uncertain nature of technology. People may not be
preferring a smart device at a high price. After introducing the product line, the wholesale
price for the motiv ring product will be set at $165 per rings. This pricing strategy will be
effective for attracting potential distributing partners and other established competitors.

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Promotional strategy
Promotion for the motiv ring will be done by integrating all the information through
different media channels and by spreading brand awareness by adding up major points for
creating differentiation. Moreover, research on the consumption of media will allow the
company to build a partnership with the advertising suppliers thereby allowing them to select
suitable media tool and real-time to reach the prospects (Jaworski, 2018).
Therefore, the strategy will be based on the promoting the motiv ring on the basis of
pulsing for managing brand awareness and to spread several messages of differentiating
strategy through social media platform.
The company will be posting attractive images on a social media platform such as
Facebook, Instagram and Twitter for attracting increased customers. The company will also
be preparing a user-generated video in social media sites for illustrating the advantages of the
characteristics of Motiv ring and to influence the consumers for purchasing the products.
Strategy for distribution
The traditional form of distributing channels are dependent on the product that can be
obtained through direct as a well indirect distribution of channels. However, the reach out
results can be quantified, but it is not possible to manage the social media marketing network
as restricting it is not feasible.
The camping and promotion of the motiv ring device may become viral spreading out
amongst larger mass. In this context, research has found that almost 94% of the organisation
uses at least one social media channel for the purpose of distribution whereas 83% of them
concentrates on social media promotion as a necessary factor business (Wensley, 2016).

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Therefore, a wide social media distribution strategy is required for the wearable motiv
ring device for managing the competitive market. The organisation uses a selective strategy
for distribution that is being done through different marketing channels via online suppliers
like an advertisement, websites, email and online campaign. However, during the first of
production, the company has been planning to add up a few channel partner through online
networks.
Content plays a crucial role in social media marketing and it is essential to have a
well-developed strategy to assist the product vision. Zeriti (2014) stated that customer
segmentation and research is not enough for persuading the customer and to increase brand
awareness. It is the appealing content story that is required to attract the target customer for
creating a position in customer thought. The company will be investing in creating content in
the social media platform along with attractive pictures of the motiv ring devices on
Instagram.
Budget allocation and promotional mix
Marketing Budget
Plan
Category Estimated
Quantity
Estimated
Cost per Unit
Estimated
Subtotal
Research
Research firm fees 3 $1,000.00 $3,000.00
Web research 2 $500.00 $1,000.00
Independent research 0 $300.00 $0.00
Other research 0 $250.00 $0.00
Research Costs Total $4,000.00

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Communications
Promotional brochures 6,500 $0.45 $2,925.00
Television 7 $3,500.00 $24,500.00
Radio 15 $375.00 $5,625.00
Web 2 $485.00 $970.00
Communications Costs Total $34,020.00
Networking
Memberships 0 $0.00 $0.00
Affiliations 0 $0.00 $0.00
Subscriptions 0 $0.00 $0.00
Networking Costs Total $0.00
Additional Costs
Invitation
(printing and postage costs) $850.00 $850.00
Time & Expense (T&E) $750.00 $750.00
Company staff T&E $250.00 $250.00
Customer testimonial T&E $150.00 $150.00
Additional Costs Subtotal $2,000.00
Promotions
Product giveaways 50 $8.00 $400.00
Product discounts 300 $3.00 $900.00
Special offers 200 $2.50 $500.00
Promotions Costs Total $1,800.00
Advertising
Brochures (development and
production) 2,500 $0.30 $750.00
Mailings 4,000 $0.02 $80.00

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Postcards 5,000 $0.03 $150.00
Television 2 $600.00 $1,200.00
Radio 4 $300.00 $1,200.00
Newspapers 6 $220.00 $1,320.00
Billboards 2 $556.00 $1,112.00
Bus sides 3 $125.00 $375.00
Advertising Costs Total $6,187.00
Public Relations
Charity events 3 $200.00 $600.00
Advertising 4 $200.00 $800.00
Employee promotions 6 $200.00 $1,200.00
Sponsorships 3 $200.00 $600.00
Public Relations Costs Total $3,200.00
ESTIMATED MARKETING GRAND TOTAL $51,207.0
0
Conclusion
From the entire scenario, it is evident that wearable technology market has a highly
positive outlook with a consistent growth that expected to rise at a CAGR of 20.3% by the
year 2020 (Schmidt, Spann & Zeithammer, 2014). Therefore, motiv ring while entering the
market with a fashion launch of device fixed with fitness and wellness segment may
encounter intense competition. In this context, an increasing number of players in the market
and price is one of the major issues that may be faced by the organisation.
In response to the increasing competition in the consumer wearable segment. Motiv
ring products may help the consumers to turn their attention in some other direction. Motiv
ring is a device that is attractive in outlook and advanced in technology that will help in
newly entering the demanding market (Liu & Chou, 2016). This move is expected to outgrow
competitors in the market.
Regardless of the consumer fitness and wellness features attached to the segments, the
new entrant is needed to be considered. It is for developing strong parameters of

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differentiation from the dominant players in the market with an instinctive user expertise and
attractive product design that will easily convey the message to the consumer (Liu & Chou,
2016). However, Gamification of the market is one of the most significant solutions that may
be helpful for the production of motiv ring.
Therefore, in a nutshell, the expected marketing strategy is to develop a successful product
and a brand name by:
 The objective of the company needs to have a strategy aligned to the product's vision
and core competencies of the organisation
 The company needs to recognise the appropriate consumer to create a successful
marketing campaign
 The channels planned needs to have a significant role in distributing the message to
impact the visibility of the brand.
 Engagement with the consumers is required to be developed for converting the
opportunities into the direct lead.
 The company needs to supervise the planning and implementation of the social media
promotional strategy
 Finally, feedback is the last step to retrospect the analysis of the process for the
enhancing the characteristics of the product.
Evidence of research
Conducting research on the market will help the company to recognise the
characteristics as well as the benefits of the potential market segments. Feedback collected
through market research will help them in the establishment of the product. Feedback and
surveys conveyed are inevitable to understand when the organisation will be introducing the
new research and added a new research in the product (Hunt, 2018). However, robust

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community members and focused groups will help in providing the real appreciation for the
product.
Figure 2: Use of the device
(Source: Hunt, 2018)
Research in this context shows that wearable devices in Australia account for almost
$106 million in the year 2018. In this context, the revenue is expected to grow at an annual
rate of 2.8% leading to a market volume of $118 million by the year 2022. Moreover, user
penetration of the devices is 8.2% in 2018 that is expected to hit 9.2% in the year 2022
(Öztamur & Karakadılar, 2014).

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Figure 1: Growth of the wearable device in Australia
(Source: Hasan & Ali, 2015)
Mechanics
Employees and people work in collaboration to provide service to the customer. All
these members need to think and act in accordance to commit towards a shared goal, need to
understand the complementary roles they play in accomplishing the objectives (Helm &
Gritsch, 2014). Moreover, the members working together need to communicate consistently
with each other to ensure the engagement of the members with each other and to maintain the
track.
A high involves and aligned product team will help to enhance the productivity of the
organisation thereby reducing cost that would directly influence the satisfaction of the
customer and business metrics. According to Hasan & Ali, (2015), organisations with highly
shared engagement often experiences a 147% higher profit for each share in comparison to
their competitors.

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Marketing mechanics
 This will help the clients of the company to obtain insight into customer's requirement
and changing demand
 This will help to establish a collaborative and agile approach towards the development
of the product thereby offering the satisfaction of the customer
 Help in rejuvenating and enhancing the processes while improving the individual’s
insight and effectiveness.

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Wensley, R. (2016). The basics of marketing strategy. The marketing book (pp. 75-107).
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Appendices
Appendix 1: Features of wearable devices popular in the market

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Appendix 2: Break even Point