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Table of Contents
1. Marketing Objectives..........................................................................................................2

2. Market Research..................................................................................................................3

3. Product Description and Sketch..........................................................................................4

4. Preliminary Pricing Strategy...............................................................................................7

5. Channels of Distribution.....................................................................................................8

6. Promotion Plan....................................................................................................................9

7. Appendix............................................................................................................................10

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Most of us, if not all, wear watches on a daily basis. Some of us wear them to go to work,
some wear watches to parties, and a lot of people wear them to just show off. No matter what the
reason is, we all wear watches. A long time ago, analog watches were the way to go, then came
digital watches, then the trend went back to analog watches, and now its in the middle. Now a
days there is a new breed of watches called Smart Watches. Our goal in this research project is
to fuse the digital and smart watches and make them available to the public. Availability, target
market, features, design, affordability, battery life, and the processor will be talked about.
There are a lot of companies out there that are making smart watches. Most of them are
already established electronic companies that are trying to take the extra step to make more
profit. A good strategy to make more money off the smart watches is to make them easy to use
with the smart phone that has already been produced by the same company. Smart watches are
computerized wristwatches with functionality that is enhanced far beyond timekeeping. While
early models can perform basic tasks such as calculations, translations, and game-playing,
modern smart watches are effectively wearable computers. Many smart watches run mobile
applications, while a smaller number of watches run a mobile OS operating system and
function as portable media players, offering playback of local radio, audio, and video files. Some
smart watch models, also called 'watch phones', feature full mobile phone capability, and can
make or answer phone calls.
A good question to ask is if the public is ready for another smart watch. I say this because
other companys smart watches are on the high end of prices, ranging from $250-$17,000 for
some companies. Our groups main priority is to create an affordable, fashionable smart watch
that has the same features as most smart watches on the current market, and one that can compete
as well. We have decided on the range of $95-$110 price range for our product. Our survey

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indicated that 77% of respondents would actually pay around $100 for a high quality watch. Our
goal is to generate at least 60% awareness for our new product among the males ages 18-34 as
well as all college students, which would lead to $500,000 in profit and improve life by having
all of the essential information necessary for daily life strapped to your wrist.
We used a survey as our method of market research. The survey was composed of
original questions, and the goal of the survey was to gauge our customers interest in different
design aspects for our watch. We compiled the primary data collected from the responses to the
survey, and used that data to help determine the design, available features, and price.
There were 13 responders to the survey, and the findings were actually very beneficial in
the decision making process for the design, available features, and price of our watch. Almost
62% of people said that they wear a watch either all the time or most of the time, which bodes
well for the production of our new product. We surveyed people and asked them what special
features they would like to have in a watch, and some popular requests were solar powered,
projection capabilities, GPS location technology, a total mind and body health monitoring
system, internet, and personal assistant communication technology. We know that there are
watches available in the market with some of these things already available, but we plan to offer
all of this technology and more at a much more affordable price. 77% of respondents said they
would be willing to pay at least 100 dollars for a high quality watch, and we took this onto
account when doing our approximate pricing strategy. Every single person that took the survey
said they would be interested in the ability to customize and personalize their watch, and almost
85% said that they prefer a watch that is both functional and fashionable. Only just over half of
the respondents were interested in a watch that has interchangeable parts, but most people were
interested in a watch that either has a black or silver band and either a black or silver face. When

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we asked the respondents to rank their most important aspects when buying a high quality watch,
looks were most important, available features and price were second, and customization was
least important. Overall, we were very satisfied and encouraged by the findings of the survey,
and it inspired us to move forward with designing something that our target market would like to
see when making a purchase decision on a high quality watch.
Why do we wear watches? Time is of the essence. We're stressed for time. We're worried
about being late. Time is money. This is what we want to tell our consumers when they ask us
why they would want to purchase a watch from us. Although other companies may have an edge
over us because of their strong global brand name, we on the other hand know what it means to
not have enough and to work with less. Why purchase something thats out of your budget, when
you could purchase another product that is just as good and is also cheaper and has the same
features as most of the other brands.
For our product, we decided to keep the design very simple, and at the same time
fashionable. Since we did a survey of the public on how they would like the watch to look, more
than half of the survey preferred a black color, so we decided to make the color black and silver
as the first prototype. The watch is controlled by three side push-buttons. The upper left button
turns on the backlight, cancels the alarm, and is used for selecting settings. The lower left button
cycles the modes of the watch: GPS, Radio, Internet, Heart monitoring adjustment, and then back
to the normal time display. The button on the right is the function button: when used after
pressing the lower left mode button it starts and stops the GPS, or changes the settings currently
being adjusted.
The time or date is adjusted by pressing the lower left button three times to bring the
watch to time adjustment mode. This causes the seconds to flash on the display. The top left

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button is pressed to cycle through seconds, hours, minutes, month, date, day, and normal mode.
The right button is then pressed to adjust the flashing value displayed. When the adjustments are
finished, the bottom left button is pressed repeatedly until the watch returns to normal mode.
The watch display shows the day of the week, day of the month, hour, minute, seconds,
and the signs for PM or 24H (24-hour clock), alarm signal, and hourly signal (double beep on the
hour). Our watch is also solar powered, which lets the watch retain full functioning power even if
the battery life has been exhausted. This solar power capability has not been available on other
brands of watches, which lets us keep one leg ahead of our competitors.
The diagrams drawn below are just rough sketches that we created to see how the public
would receive our product. Each drawing is detailed. The first drawing shows the main
description of how the watch will look, and the second drawing shows another sketch our
creative director drew out to see how the public would perceive it. Although according to our
survey it showed that they liked the first watch better, we decided to still leave the second
drawing to show our previous designs. The drawing with labels has detailed labeling that shows
what features the watch has and how the watch will look. A key for the labeled sketch is
provided below.
1. The Body of the watch.
2. The Flashlight button.
3. Shows the time.
4. Heart rate.
5. Radio FM indicator.
6. GPS/Settings.
7. Mode of the watch.

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8. Alarm, Backlight, Time settings.
9. Screen.
10. Strap.

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When choosing the retail price for our watch, we used the textbooks approximate pricing
strategy. We identified our price objective as survival because we offer a specialty product, and
the target market is fairly small, therefore we have chosen to forgo a higher profit margin in
order to solidify our watch sales. The constraints on our pricing model are the newness of the
product and the competitive market. Since the product is relatively new and has new
technologies, we can initially charge a high price. However, the competition in the smart watch
market is an oligopoly, so we cannot charge a price that is too high in order to stay competitive.
It was tough to estimate the demand and revenue of our product because of its newness, but we
do know that the market for smart phones has done extremely well, so we are counting on the
smart watch market to behave similarly. A lot of the costs associated with producing our product
lie in the technology sector. The technology needed to implement the features available in our
smart watch are relatively inexpensive, totaling around 20$ per unit. The other costs associated
with the production of the watch are the parts, the band, face, hands, screen, and the technology
just mentioned. These parts are very cheap, totaling around 10$ per unit. All other costs

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associated with the product are fixed costs, including overhead costs and delivery costs. We did a
rough estimate based on our initial production of 10,000 watches, variable costs total to
$300,000 and fixed costs total to $200,000. Based on these estimates, we will have to sell just
over 9,000 of our 10,000 initially produced watches to reach our profit goals and we will have to
sell 4,545 watches to break even. Since our profit objective is $500,000, we decided to
implement a profit-oriented pricing approach. This approach is very straight forward, and gives
us the best chance to keep track of our profits and reach our goals. Also, we have a fixed-price
policy on our smart watches. Since all of the watches have the same available features and
technology, it makes sense to offer them all at the same price all the time, and we decided to set
our retail price at $109.99. However, we have also chosen to make a special adjustment to the
price in the form of a cash discount. We have agreed on a 3/5, net 30 payment policy. So, if you
pay the full amount within five business days, you will receive a 3% discount on the total price.
If you do not make a payment within five business days, the full amount is due within 30 days.
We feel our retail price is appropriate for our product, we will make a profit if our sales go well,
but we will remain competitive in the smart watch market.
We are aware that the distribution channels in marketing are one of the classic 4 Ps of
marketing, and we have made ours a key element in our entire marketing strategy. We have
decided to be a B2C (business to consumer) company and sell our watch using a direct sales
team since we are selling the watch directly to consumers and not to big corporations, and
because of this there are no key partners that we would be relying on. However, we are not
opposed to selling our watches wholesale to bigger businesses, but only if our initial distribution
channel grows our revenue and market share significantly enough. If that were to happen, then
within five years our projections for our distribution channels would be us having created many

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successful marketing programs to drive revenue through our channels while we stay committed
to our success, have our sales team sell directly to Fortune 100 companies, and have a second
product line for small businesses. Instead of using our sales team, we would sell this line directly
to end-users through our website and several marketing campaigns.
It is obvious that we are not opposed to adjusting our distributing channels in order to
accommodate our customers. If users need personalized service, we can utilize a local dealer
network or reseller program to provide that service, or if any consumers prefer to buy online,
well create an e-commerce website and fulfillment system and sell direct. We have also decided
to have free shipping for a limited time after the watches are introduced into the market. It is
evident that free product shipping is certainly going to catch consumers attention; this particular
service can be leveraged as a significant marketing asset. After the limited time, we would be
sure to let the customer know exactly what theyre paying for with regards to shipping by setting
up a real-time shipping cost calculator. After the entire distribution process, we plan on aiming to
improve our distribution process for the next distribution cycle by having consumers provide
feedback on quality and efficiency, which well do by assessing quality, effectiveness, time of
delivery, how supplies are being used, and check the logistics chain.
Promotion is one of the key elements of the marketing mix because it deals with any one
or two-way communication that takes place between the seller and consumer. Our promotion
strategy includes using a three stage process, which is equally relevant for all elements of the
marketing mix. First is segmentation, which is dividing the market into distinct groups. These
distinct groups, based on those that completed our survey and the general demographic for
watches, would mostly be comprised of males ages 18-34 and college students. Next is targeting;
after segmenting the market we would begin advertising to our designated demographics. We

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would use mass media as an approach to those demographics and that approach would include
magazines, newspapers, television ads, and radio. Along with the mass media promotion, we
would also include a sales and price promotion. As mentioned earlier, we will have a 3/5, net 30
promotion for receiving the payment for the watch. We would be using public relations to our
advantage by managing press launches and PR events about our watch before it reaches the
market in order to build consumer interest about our product. Direct, as well as digital marketing,
would be used to increase consumer awareness for our product on the market. The direct
marketing would include bulk mail, packaging design, and email; digital marketing would focus
primarily on getting our name out there on the Web through social media platforms such as
Facebook, Twitter, blogs, and YouTube. Last is Branding/messaging. Branding is a powerful
tool for companies and for products; we would have a team to work to develop the brand for our
company and our product. We would work and focus on everything from the packaging design to
the style of writing used on posters and ads.
Appendix
We chose to conduct a survey as our market research strategy, via surveymonkey.com, and the
questions and answer choices were as follows:
1. How often do you wear a watch?
a) Only on special occasion
b) Sometimes
c) Most of the time
d) All the time
2. What special feature would you like your watch to have?
(Comment box)
3. How much would you be willing to spend on a high quality watch?
a) Less than 50$
b) Between 50$ and 100$
c) Between 100$ and 500$
d) More than 500$

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4. Would you be interested in a watch that is customizable?
a) Yes
b) No
5. Do you prefer a watch that reads by analog clock, digital clock, or both?
a) Analog
b) Digital
c) Both
6. Do you think a watch is more functional, more fashionable, or both?
a) Functional
b) Fashionable
c) Both
7. Would you be interested in a watch that has interchangeable parts?
a) Yes
b) No
8. If you had to buy one watch and wear it forever, what color would the band be?
a) Black
b) Silver
c) Blue
d) White
e) Brown
Other (please specify)
9. If you had to buy one watch and wear it forever, what color would the face be?
a) Black
b) Silver
c) Blue
d) White
e) Grey
Other (please specify)
10. Please rank the following in order of importance when buying a watch. (1 being most
important)
Price
Available Features
Customization
Looks