.. ad with letters to enable user to send e-mails, as well as receive them. This model will be slightly more expensive at a retail ticket price of $350. There are cell phones that offer this type of technology, but they are larger, and less convenient. Both watch models will be small enough to fit on the wrist, and will vibrate as opposed to ringing when a call comes in as well as when there is a new e-mail, or a rise or fall in the price of a particular stock.
Both models will also include a paging function where when the phone is off, it will give the caller the option to place a page. We will package it in an organizer case with an included Franklin planner style organizer in case the customer chooses to write down various information that they need from their e-mails, caller id screen, or their stock prices. Many individuals enjoy the usage of technology to simplify their life and keep them “in touch”, but they often still want that “paper trail” of notes, reminders and numbers. The organizer packaging will make our product that much more attractive. We will utilize the Digital PCS technology because it prevents lost or dropped calls, which is highly frustrating for the cellular user.
It will also ensure connection for the Internet features. Primarily it is cutting edge technology which is interesting for any potential consumer who is interested in having the newest and best technology products on the market. This technology will help support the asking price for the product as well. The timing for a product such as this is perfect. With interest growing in internet appliances, and portability of mobile communication, we are sure that this product will be welcomed by the business people as well as the busy parents and students. There is no doubt that our lives are more hectic, and constant communication is necessary.
This watch provides a more portable, secured to your wrist, way of doing this. It is also safer to use in the car with the ear piece feature. There is no need to hold the cell phone, and two hands are free to drive. Promotion We intend to promote our product, at least initially, through an evenly divided program of advertising, sales promotion, and personal selling. Public relations should not figure so largely into marketing this particular product, as it will hopefully sell itself with the many features and advantages it will provide. Advertising will be important in order to make the population aware of this new product. Sales promotion will be accomplished by taking the product out into the market, i.e.
businesses, malls, universities, and through technology tradeshows. A product such as the one we are producing, will require a high advertising budget. We will allow, initially, for a budget of $100,000 per quarter. We will split this budget into a slight television campaign, but a large Internet presence. Individuals with computers are the ones that will be most interested in this type of product. Therefore saturating the Internet with banner ads, a catchy webpage would produce the results that we are looking for.
The focus of the ads will be on the portability of the product as well as on the power of the information and connectivity that It provides. We intend to focus our television advertising on key times during the year. Christmas is always a huge selling time for technology products. This product would be a wonderful present for those who “have everything”. Another time of year that is good, especially for students and new professionals, is income tax return time. This is the time when many have a surplus of cash on hand to spend on extravagant items.
Graduation times, i.e. late spring, early summer, are excellent times to advertise for this product as parents or loved ones are looking for useful presents for the newly graduated college student. Television promotion is important during these times because you are advertising to the buyer, who might not necessarily be the user, and might be less likely to go searching for this type of product on the Internet. Selling to intermediaries such as cell phone service providers is the less expensive way to distribute this product, at least initially. It is an individual product, but requires the service of a PCS provider to be utilized.
Therefore, selling it as to companies such as AT&T or Sprint with the option to place their logo on the phone as well ensures that the product can be considered by and demonstrated to individuals considering a digital piece of cellular communication equipment. Cooperation with these providers is essential if this product is to succeed. Pricing The pricing for the initial two models will be $250 for the number keypad model that can receive e-mail, receive and make phone calls, and check stock prices, and $350 for the model that has a letter keypad as well. As a promotional feature to kick start sales we plan to offer a $50 price reduction for the $250 model, and a $75 price reduction for the $350 model when they sign up for 2-year minimum contract with the PCS provider. We hope to negotiate a split in the price reduction with the provider. We would both gain from this reduction due to their retention of a 2 year contract, and our sale of the new product.
We will emphasize the features that are gained by this product, and downplay the cost. It is essentially a watch, pager, phone, and internet appliance. That is a 4-in-1 marketing point that we will most definitely stress to the consumer. Many individuals will welcome the chance to wear one item on their wrist in place of carrying a phone, wearing a watch, wearing a pager, and keeping track of all of them. The price does not seem so great when thought of in terms of the fact that it is replacing at least three items.
Eventually there will be other models produced by competitors that will rival the features that we offer on our watch appliance. We have already begun planning to include a calendar option and small television screen that can be played when the phone is off. When the competitor’s product catches up to our own, we will be in a research and development position to advance our existing product further, and thus ensure our position of being an innovator. It will further enable us to maintain our upper-end pricing and profits. Price advertising is important when the consumer can actually see and handle the product. Advertising of prices via television and the Internet can often deter consumers who feel that the 2-dimensional image is not worth the cost.
This is why trade-shows, and personal selling is so important. It brings the consumer in personal contact with the product. Price changes, increases or decreases, will most likely take place during the key selling periods of the year. These periods, as mentioned before, include Christmas, graduations, income tax time, or perhaps even fathers or mothers day. The increases should not be dramatic, nor should the decreases.
Increased sales are tempting, but losses are not worth the slashing of prices in the long term. Business Reports.