Group Presentation: Senior-Focused Smartphone - Business Plan

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Group Presentation Assignment:
Smartphone Designed for seniors

Table of Contents
A. Product................................................................................................................................................4
B. Customer Need....................................................................................................................................5
C. Why is it a suitable opportunity for the company?..............................................................................7
D. Distribution..........................................................................................................................................8
E. Price.....................................................................................................................................................8
F. Marketing Communications................................................................................................................9
G. Conclusion & Recommendation..........................................................................................................9
Reference.....................................................................................................................................................11

A. Product
1. What are Smartphones for Seniors?
Smartphones designed for seniors have different potentials than regular smartphones, cellphones,
laptops, and tablets. These smartphones will not only replace the traditional devices of
communication like landlines or cellphones but also act as more improvised versions of pocket
devices that can be used for Healthcare, Leisure and Entertainment purpose or even further.
2. What does it do for Seniors?
Along with the traditional phone call and text communication, these smartphones will be loaded
with a wide range of applications that are specifically targeting to benefit the older population.
Healthy diets and lifestyle application are specifically famous with the senior generation. In
addition to the various businesses have launched streamline versions of their application for the
ease of use. These smartphones will be helpful in monitoring health, preventing health-related
critical issues and accidents and they also act as learning resources for people over the age of 55.
A majority of high-quality apps will be inbuilt in these smartphones with easy to use instructions.
3. Major Attributes and Benefits of Smartphones
These smartphones will allow saving Emergency Contact Information and Speed Dial features
that help a senior get immediate help during medical or other emergencies. 'Talk to Text' or
'Voice Commands' features will be extremely helpful for seniors with a low vision or arthritic
fingers. The large screen will increase the ease of use. Top level Reminder apps will be inbuilt or
make easily available in the app store; these apps can be highly beneficial in managing
medications of upcoming appointments. The smartphone app store will be filled with various
practical health and fitness applications in addition to mind game applications. Such apps are
greatly beneficial for an elderly to keep his/her physical as well as mental health safe and sound.
Smartphones will also feature Electronic Tracking System which will allow seniors to track
things like Keys Glasses or Remote Control which they often tend to forget by adding a tracking
tile into the object.

4. Relevance of Smartphones
Smartphones have the potential of enhancing life quality of a senior in context to healthcare,
better communication with the family and friends, independent living, ease in financial activities,
isolation minimization, etc. The number of seniors with smartphone use for internet access,
emails and social media, videos, and TV, etc. is increasing. The changing social dynamic is
motivating seniors to accept and use smartphone technology.
B. Customer Need
1. Market Opportunity
There are very few smartphones which are specifically designed for the older population. A
majority of smartphones are designed for the younger generation in order to allow them internet
surfing and play high tech games. These popular smartphones usually have a small size, small
keys, difficult navigation control system and grueling software applications which do not appeal
to the elderly people, in fact, it intimidate them.
The elements that motivate seniors for smartphone use are its usefulness, environmental
influence, its safety benefits, self-actualization, and enjoyment. A smartphone is equally
important for seniors as the young generation. The major difference is that the considerable
smartphone use of the younger generation is for the reason of entertainment while considerable
smartphone use of the older generation can be for the enhanced lifestyle.
The older generation is slowly getting aware of the usefulness of smartphones besides calling
and texting. With that reference, creating a smartphone that is solely based on the needs of a
senior citizen which can act as a companion for them and make individual living more effortless
for them will be widely acknowledged and accepted among the seniors.
2. Market Segments
This market segmentation will be helpful in understanding how the market will respond to the
new product:
 Geographic Segmentation
According to the study conducted in the UK, the UK population over 55 is rapidly becoming
dedicated smartphone users. According to Deloitte, the age group between the range 55 to 75

consists of approximately 14 million UK population and 71% of the population owns a handset
with app installation capability. Hence, the United Kingdome is the ideal location to start with
marketing the modified smartphones.
 Demographic Segmentation
According to a study performed by Sara Kubik in her 2009 paper 'Motivations for cell phone use
by older Americans', Security and usefulness are the primary motivations for smartphone use
among people of the age group 57 to 97. A study conducted by Roupa and Νikas in their 2010
paper 'The use of technology by the elderly' showed seniors of the age group 65 to 85 are
uncomfortable with using modern smartphones due to its complicated technology.
 Behavioral Segmentation
The wealth of the people between the age group of 55-75 is higher than average which enables
them to buy premium smartphones anytime. The increasing awareness of smartphone use in
daily activities like 'booking a car' or simply using face reorganization software to open the
phone is turning the elderly population from light users to mid-level users.
 Psychographic Segmentation
The customers using this smartphone are mainly senior population above the age of 55. They are
traditional and not technical savvy people. These people believe in responsibility but are also
available for risk-free adventures. These people do not spend large time using technology or on
the internet but they are curious about the use of technology for their benefit. They take a good
amount of measures to maintain a good health and turning to the use of technology especially
smartphone apps to guide them through a healthy lifestyle.
3. Ideal Customer Persona
 Name: Wendy
 Age: 65
 Gender: Female
 Income: £39,000
 Background: Wendy is a retired clerk who lives alone in the suburbs with a cat. She has
a daughter who stays in a different city and her husband has passed away. Wendy uses a

smartphone for daily communication with her daughter and started learning to use the
internet application on her mobile after her daughter insisted.
 Hobbies & Interest: Wendy likes gardening and regularly attend the book club. She has
just started attending Zumba classes to stay fit.
4. Key Market Trends
The latest smartphone technology for old people includes GPS based applications for car finding,
brain training apps, health and fitness apps, reminder apps for medication, phone finding apps,
shopping apps, etc.
5. Significant Competitors and Their Market Position
The smartphone technology giant Apple is a significant competitor for the new smartphone.
Though they do not have a specific smartphone made for seniors, they have included a great
amount of free and paid applications in their app store that are extremely helpful for seniors. For
example, The Park ‘n’ Forget app by Apple costs $0.99 per month which helps seniors find their
car by calculating the time from their car to the destination. Apple is the world leader in
smartphone manufacturing and selling.
6. Why the Target Market should buy this smartphone?
The new smartphone is specifically designed for senior people with necessary in-built
application only meant for seniors. It will have a larger screen and made with water and dust
resistance. Unlike Jitterbug Smart, it will be touch-screen with large screens and still give a feel
of a premium smartphone. In addition to these, the phone will be connected to 24*7 emergency
and have the ability to send a distress signal with one click.
C. Why is it a suitable opportunity for the company?
According to the Global Market Survey conducted by Deloitte, the use of smartphones is
increasing among an elderly population. And it will continue increasing as more old people
become aware of its usage. Considering there are not any premium smartphones that are made
for old people, entering the market with this ingenious idea will benefit the company greatly. The
company can start a new trend and can establish itself as a market expert and an industry leader
in producing smartphones for the older generation. And by the time other competitors get started
with the production, the company will be producing innovating technology in the area.

D. Distribution
The target market is not technology savvy hence using traditional mediums for promotion and
distribution of the smartphones will turn out highly favorable.
Given below are three available options for smartphone distribution:
1. Manufacturers selling to customers
2. Manufacturers selling to retailers and retailers selling to customers
3. Manufacturers selling to wholesalers, wholesalers selling to retailers and retailers selling
to customers
After carefully considering the target market, second distribution option i.e. Manufacturers
selling to retailers and retailers selling to the customers is most suitable one for the product
distribution. Elderly demographic is not involved with the technology on a great level hence they
have not developed an understanding or trust with the online buying phenomenon. The audience
feels more reliable with human contact than an online bot. Hence, distributing through retail
shops will make consumers feel more reliable and safe which is also one of the main goals
behind the product creation. As mentioned above the significant competitor Apple sells its
smartphones using Apple stores, Apple website, Telcos and other online distributors. But the
same approach cannot be taken with this product as it is fairly new and hasn't established trust or
reputation yet.
Along with local mobile distributors using Tesco and Sainsbury’s stores for the product
distribution will work best with the age demographic. Though the product distribution focus
mainly should be on offline channels, products should be made available on major online
retailers like Amazon.
E. Price
These smartphones are unique in every aspect compared to other similar available products in the
market. This product has the potential to establish the company as a leader in the industry; hence
this same approach should be taken since the beginning. The main mission is to be a leader in the
industry hence selecting leadership pricing objective becomes necessary. The most appropriate
pricing approach is maximizing the profit margin as the growth in production is inevitable in the

near future which will require labor and facilities funding. Jitterbug Smart, iPhone 7 Plus and
Samsung Galaxy S8 are the current popular smartphones among senior citizens, hence new
smartphone price should lie between the maximum price and the minimum price. Hence primary
product price for this smartphone can be $445 with a consideration of the maximum profit.
F. Marketing Communications
In order to get the most profit, smartphones should be promoted using Television and Print
Media. Though the age demographic above the 55 years does not frequently use social media,
using Facebook advertisement will be helpful in spreading the word of mouth; as Facebook is
relatively more popular among senior people. Creating buzz via social media will not succeed
with the product due to low social media activity of the target audience. YouTube display
advertisement will work satisfactorily. The promotional material should include online video
advertisement, informative Television advertisements, display advertisement.
SMS or WhatsApp marketing will do wonders for these smartphones as WhatsApp is equally
popular among young as well as the old generation; even when the product advertisement will
not reach to the consumer in need, it will get promoted via word of mouth due to its usefulness.
The traditional promotional methods like Billboards, Flyers and Brochures, Print Ads,
Telemarketing and Face to Face Interaction will be very effective.
G. Conclusion & Recommendation
The increased smartphone use among the elderly population has created an entirely new market
for smartphone companies and has given an opportunity to create an absolutely new product.
With the supreme and thoughtful features, this product will be extremely helpful to old people
especially the ones who live alone. But creating a new product is not the most important step. In
order to make the product a hit and establish the company as an industry leader, equal efforts
should be spent on product promotion and development. Though this is a digital era and the
product is indeed designed to promote the digitalism, traditional marketing approach will provide
with the most success. The aim of the product is to help old people and provide them with the
most reliable companion. Promoting this message across by using the most reliable channels is
going to make this product victorious.

Reference
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