Question

GPS WATCHES

submit the marketing mix section of your Marketing Plan. Include the Product, Price, Place and Promotion sections in detail. Also, draft a description of your target market.

Word count requirement: A minimum of 800 words total is required for this draft of your Marketing Plan. A paragraph or two per area, such as about the product, the pricing strategy, among other terms is expected.

Answer 1

Before we prepare our marketing plan, we should always know about out Target audience. "Know your Market" is very important part of this marketing planning. Hence lets discuss about our targer first and then we will prepare our Marketing mix plan for GPS Watches.

Target Market:

Whom to Target?

People who have age between 25 to 35 years and those who have an interest in sports, fitness, health care and frequent travellers are the most important target market for GPS Watches. Also people who doesn't want to carry multiple gadgets for this purpose and wants stylish gadget which will provide all the necessary features in one device will be more attracted towards GPS Watches.

Also, on commercial basis we can target the industries like Military/ marine, logistics, Automobile and Aviation to promote GPS watches. Tie up with leaders in such industries will help to grow fast in the business of GPS Watches.

Where is the market for these Targets?

They can be found at different places mentioned below

1. Fitness clubs and gyms

2. Sports clubs

3. Running and cycling events

4. Any outdoor travelling events.

5. Special events organized by some social initiatives.

6. Tie up with Logistics companies/ couries services.

According to above target market we can go ahead with our Marketing plan. Marketing Mix for GPS Watches is given as follows:

1. Product:

We need to design our product by keeping requirements of our target audience in mind. Products with below features can be designed according to Target.

1. GPS Watch with Calories Calculator (For fitness/health concious people)

2. GPS Watch Sports Edition (For Sports person)

3. GPS Watch Express Tracker Edition (For travellers)

4. GPS Watch All in One : It includes all sports, health, some mobile features, tracking features together in one gadget.

5. GPS Watch Mini (Compact version, low weight and great ease of handling)

2. Price

Price is very important factor to be set by company which is value for money that customer will pay to enjoy its features. Being a high tech gadget, GPS Watch, prices are need to be kept at high end also need to keep in mind that customers will feel value for money while purchasing it. Company needs to keep in mind that which pricing strategy need to be adopted to be best in the market. They can go for Market Penetration Price, nuetral price or Skimming price. Also company need to look for pricing from the competitors as well.

• How much is the cost price for producing the product?
• What product value is perceived by the customer?
• Will the slight price changes could effectively change the market penetration?

For GPS Watches categories into above product session, we can keep pricing around $300 for basic model and $1500 to high end model by using market penetration strategy. Prices can be kept high if company is producing best quality watches and it wants to go for Skimming pricing strategy.

3. Place

This is where we are placing and positioning our product in the market and it is efficient and effective with extensive knowledge about the target audience and where can we get our target audience. Positioning and distribution should be kept in such a manner that your product will directly talk to market. There can be different strategies can be used such that Intensive distribution, Extensive distribution, selective distribution( targeting to selective groups only) , retailing or e-retailing etc.

Here are some of the questions that one should see before deciding the place:

• Where is your target market expecting your product?
• What kind of stores do potential buyers go?
• What distribution channels through which they can access our product?
• Want to go for brick and mortar or online selling?

For GPS watches, company can go for both brick and mortar as well as online store options. Placing can be done at company's specialized stores for the GPS Watches. As well as they need to position their product at different fitness clubs where potential buysers visits, also in the sports clubs and gyms. They can tie up with event partners of some big cycling and running events which will give good sales to the company and company can target Group of people through one place.

Also, for tageting individual group, Watches can be sold online through some of the online partners like Amazon. But for that company need to setup distribution and logistics for online management system.

4. Promotion:

Only positioning the product in the market will not help to increase the sale but at the same time promoting it will help to increase sales as well as brand value of the product. Promotion is important factor in product mix by which company can target their brand directly to the customer and can attract the customers.

Sales promotion, advertising, campaigns, public relations, internet advertisement, exhibition, sponsorships are some of the promotional techniques can be used for promoting GPS Watches. As we are targetting fitness/ health conscious, sports related audience, extensive promotional activities should be organised at different fitness clubs or sports clubs because we have potential buyers present directly at those centres. Product should be advertise to different events in this section. Also sponsorships made to different running or cycling events will directly highlight the product to target. Promotion should be done to different travelling places where travellers visited can be targeted.

on commercial level, company shold try to tie up with logistcs company, military or marine industry, aviation or automobiles which will produce huge sales to the company. Company should allow very good discounts for these companies on bulk orders which will motivate these companies to order more products.