Contents

Executive Summary ................................................................................................................................. 3

1. The Product - SmartThings ................................................................................................................. 4
2. Market Trends & Analysis .................................................................................................................. 4
2.1 Adoption of Home Security Gadgets ............................................................................................ 4
2.2 Growth in New Homeowners ....................................................................................................... 4
2.3 Increasing Need for Efficiency and Surveillance ........................................................................... 5
2.4 Singapores ambition to be an Infocomm hub ............................................................................. 5
3. Target Market Segment ...................................................................................................................... 6
3.1 Demographic ................................................................................................................................. 6
3.2 Psychographic ............................................................................................................................... 6
4. Competitors Analysis ......................................................................................................................... 7
5. Brand Associations Mental Map ...................................................................................................... 8
6. Positioning Map and Statement ......................................................................................................... 8
7. Integrated Marketing Communications (IMC) Campaign ................................................................... 8
7.1 Campaign Objective ...................................................................................................................... 8
7.2 Design Principle ............................................................................................................................. 9
7.3 Teaser Phase ............................................................................................................................... 10
7.3.1 Broadcast, Print & Outdoor Media ..................................................................................... 10
7.3.2 Social Media Strategy........................................................................................................... 12
7.4 Launch Phase .............................................................................................................................. 12
7.4.1 The Launch (Refer to Appendix I for illustrations) ............................................................... 12
7.4.2 Interactive Sensory Marketing ............................................................................................. 13
7.5 Post-Launch Phase ...................................................................................................................... 15
8. Promotions & Branding Metrics ....................................................................................................... 16
9. Long-term Prospects ......................................................................................................................... 16

Executive Summary
The objective of this report is to underline SmartThings market development strategy into
Singapore. With increasing demand for home security gadgets and home automation,
SmartThings is well-positioned to enter the Singapore market because of the benefits it
offers. SmartThings aims to be the first brand that comes to the mind when home automation
or home technology is mentioned. After careful consideration, SmartThings decided to target
middle- income homeowners and Professionals (PMEB) aged between 30-44, with a keen
interest in cost-effective home automation technologies to enhance their lifestyles.
The report proceeds to analyze the current competitive environment before describing the
positioning strategy that is best suited for SmartThings a one-click macro-overview on their
homes, anytime, anywhere. #SmartThings campaign is launched in three phases (Teaser,
Launch, Post-launch) over the 10-week period. The teaser phase would be to generate buzz
through broadcast, print, outdoor and social media. Through the teaser phase, SmartThings
aim to pique the interest and curiosity of consumers. The actual product will be unveiled
during the launch phase. Post-Launch phase aims to reinforce brand associations by
illustrating the functions of SmartThings. Looking beyond the initial entry phase, measures to
sustain the momentum will be implemented to ensure long-term profitability and growth.
Fun, unconventional and interactive campaigns that also provide a slight element of surprise
will help generate the buzz for SmartThings.
Finally, SmartThings takes an evaluative stance on the effectiveness of our campaigns
through the usage of brand metrics. SmartThings possesses the capability to empower users
in their everyday life through its clean, simple and minimalist interface. With constant
engagement, SmartThings strives towards recognition as a radical step into the future.

1. The Product - SmartThings

SmartThings specialises in home automation technologies which are interconnected to a
cloud service, enabling homeowners to track activities occurring at home even without being
physically present. It requires the installation of a central hub which links home activities to
the homeowners smartphone devices via an app, allowing them to control and monitor their
home activities using only their Smartphones.
2. Market Trends & Analysis
2.1 Adoption of Home Security Gadgets
There has been a gradual increase in demand for advanced technological security gadgets by
HDB residents to safeguard their homes conveniently. According to The Straits Times in
20121, more HDB residents are purchasing biometric locks and peephole cameras.
Furthermore, 8 of the companies selling these products experienced a growth in HDB
resident customers from 10% in 2009 to at least 50% in 2012. The rise in demand could be
attributed to reasonable costs for installing the gadgets, greater convenience of going keyless
and prevention of break-ins due to carelessness of not locking the door. From Singstats
Population Trends 2013, 81.6% of Singaporean residents stay in HDB, 12.1% in
condominiums and other apartments, and 6% in landed properties2. [Appendix A] As
residents are becoming more receptive towards advanced technological home security
systems, it will be highly profitable for SmartThings to tap into this burgeoning demand.

2.2 Growth in New Homeowners

Singapores Housing and Development Board has also been actively increasing the number
of new flats in Singapore through its Build-To-Order (BTO) exercises3. In the first half of
2014, 3,841 new flats in six projects were offered. In addition, another 12,700 BTO flats
across various towns will be made available. For private properties, developers launched

15,885 uncompleted units4 for sale in 2013 and managed to sell 14,948 units. Thus, this large
supply of houses may encourage more Singaporeans to buy new houses.
The growth in the market of new homeowners signifies a big opportunity for SmartThings
due to two reasons. As buying a new home or home-moving is a major transitional period in
ones life, consumers will subliminally pay more attention to home improvement related
advertisements. Secondly, consumers will be more receptive to the relatively new additions
and technologies for the new home such as the concept of Smart Homes.

2.3 Increasing Need for Efficiency and Surveillance

Recently, many findings have revealed that Singaporeans work an average of 46 hours
weekly, compared to the global average of 38 hours at work. Longer working hours and less
time spent at home create the potential need for Singaporeans to invest in home systems. This
is because it allows them to monitor their homes wherever they are, whenever the need arises.
Meanwhile, other studies concluded that Singaporeans are facing tremendous stress at work.
According to a survey by Jobstreet.com5, 60% of Singapore workers feel mental fatigue at
work while 34% of Singaporean workers are losing sleep over concerns about work. Thus,
SmartThings will be able to provide an ease of mind by allowing control over their home
activities
Moreover, other research trends have shown a shift towards home automation technology.
According to Forbes6, consumers are increasingly used to a product (new technology) in
their hand that they can use to control the rest of their life. This shows an increasing
receptivity on the consumers part towards new technology that can help them better manage
and control their lives and increase efficiency.

2.4 Singapores ambition to be an Infocomm hub

Home automation products are becoming more popular7 due to falling prices and standardbased technologies that can be integrated into existing homes and appliances. As observed,

Singapore smartphone penetration8 has increased from 74% in 2012 to 78% in 2013 while
tablet penetration has increased from 31% in 2012 to 42% in 2013. Singapore has also taken
initiative to provide an ultra-high speed broadband network such as Next Gen NBN to be an
infocomm hub9. With high-speed broadband connections and growth of smart devices
(smartphones, tablet PCs) home automation has become more accessible and easy to use.
Researchers have speculated that the home automation industry will flourish in the future as
the present technology-savvy young generation becomes homeowners.

3. Target Market Segment

SmartThings is targeting homeowners, aged between 30-44, with a keen interest in costeffective home automation technologies to enhance their lifestyles.

3.1 Demographic
SmartThings is specifically targeted towards the middle youth segment, ranging from 30-44
year olds. The size of this group is expected to grow by 7% from 1.64mil in 2013 to 1.75mil
by 2016. Not only does this segment have high employment rates (97.5% of males and 79%
of females in this segment were employed in 2013), statistics from Ministry of Manpower
(MOM) have also shown that almost half of the employees receive the highest salaries when
they are in this age bracket. Hence this means that consumers in this age group possess higher
purchasing power to buy big-ticket items such as housing. Meanwhile, marriage rates for this
age group have also been growing steadily over the years10, implying a higher propensity to
settle down and buy a new house.

3.2 Psychographic
According to a report by Mintel11, consumers are now more willing to spend money to save
time. This opens up an opportunity for SmartThings as consumers will be more willing to
spend on cost-effective home automation technologies that can help enhance their lifestyles
by offering convenience and the tantalizing option of simplifying ones life.

4. Competitors Analysis
SmartThings must analyse the current competitive environment in order to become the market leader by differentiating itself accordingly. There
is a white space for home automation technologies that are affordable yet offer convenience in a sleek, clean and cohesive user interface.
Smart Things

Ihome Systems

L3 Homeation

Automate Asia

About

Smart sensors combined with smart app for a

smart home

Home technology system

Specialized Z-Wave home automation

company

Offers Z-Wave and the Homematic home

automation technology

Target
Market

Home owners who seek home security, and a

peace of mind

Targeted at upscale customers, state-of-theart, luxurious living space

Home automation enthusiasts

Price

$377 (exchange rate of 1 USD= $1.2620)

$7,999

Targeted at families, aims to bond family

members through home automation as a
common hobby
<$500

Average
Starter Kit

1 SmartThings Hub

2 SmartSense Open/Closed Sensor

1 SmartSense Presence Sensor

1 SmartSense Motion Sensor

1 SmartPower Outlet
Simplify your life in a sleek and convenient
manner

6 on/off lighting circuits

2 dimmable lighting circuits

3 aircon controls

16 scenes controls

Ipad and smartphone control

Making your house an easy, comfortable,
personal, enjoyable, secure and fun place to
live. A real home.

Professional experience in
executing home technology
systems according to the highest
international standards

Positioning

Pros

Cons

Most aesthetically pleasing user

interface

Open platform software able to

integrate SmartThings with all smart
devices in one app

No monthly fees

Network of 5,000 independent

developers churning out apps and
support for new devices every day
Takes time to learn and understand

To fully maximize the usage of

Smart Apps, it requires an
understanding of the inner workings
of Smart Things, not suitable for a
non-technical user

App only works with Bticino/

Legrand MyHome systems
Requires an entire home
integration and electrical
configuration with the iHome
system
Costly

2 dimmable lighting circuits

1 relay switch
1 Motion sensor
1 Veralite Gateway

Affordable home improvement and

DIYable Home Automation.

Expendable system where one

can add on to the basic system

2 methods of installation: DIY

or professional services

No monthly fees

No rewiring needed most of

the times

Have to buy multiple products

from multiple brands. No
single, cohesive unified
system.

Need to download multiple

apps, making it a hassle to
toggle between apps

$499

Micasaverde Vera Lite

2 x TKB (or Popp) Plugin Switches
2 x Fibaro Dimmer Relay

Preselecting the best components, which work

right out of the box

Has a personal touch to it where the

owner (a home automation enthusiast)
shares his knowledge about the latest Zwave products and provides reviews on
the various devices

Home Automation community available

on Facebook

Similar to L3 Homeation

5. Brand Associations Mental Map

SmartThings needs to have favourable and distinct brand associations so that prospective
consumers will be able to remember their brand. These associations need to be successfully
delivered by SmartThings and conveyed from our integrated marketing campaigns. In order
to build strong brand associations, SmartThings have decided to focus on convenience,
sleek and simplistic associations in its upcoming integrated marketing campaigns first.
[Refer to Appendix C]

6. Positioning Map and Statement

The positioning map illustrates how SmartThings measures up to its competitors based on 2
attributes: Price (x-axis) and Ease of Use (y-axis). Price is defined as a continuum from
affordable to expensive, whilst Ease of Use defines the seamlessness of the experience using
the product. [Appendix D]
For middle youths moving into new homes with hectic day-to-day work schedules,
SmartThings provides a one-click macro-overview on their homes, anytime, anywhere.
SmartThings commits to simplifying ones life by equipping customers with round the clock
convenience via its interconnected home automation technologies at value-for-money prices.

7. Integrated Marketing Communications (IMC) Campaign

7.1 Campaign Objective
( Refer to Appendix I for full cost breakdown )
The overall objective of the integrated campaigns is to increase brand awareness within
Singapores home automation technology scene, while enhancing SmartThings brand
association (sleek, simplicity, convenience), as well as increase brand accessibility.
The marketing objectives is to be achieved through various progressive phases, specifically,
the teaser, the launch and the post-launch phase.

Teaser Phase (4 weeks)

Launch Phase (4 weeks)

Post-Launch Phase (2 weeks)

- Broadcast Media
- Print Media (MyPaper, Home & Dcor Mag)
- Outdoor Ads (SMRT Billboards)
- Social Media Strategy

- Launch Event (Chevron Square)

- Interactive Sensory Billboards
(condominiums showrooms)
- Mobile Roadshows (Sengkang Square,
Jurong Gateway)

- Broadcast Media
- Print Media (MyPaper, Home & Dcor
Mag)
- Outdoor Media (SMRT Billboards)

Campaigns carried out in the teaser phase are designed to build up anticipation towards the
launch of the SmartThings by keeping audiences in suspense to guess what the SmartThings
is. The unveiling of the actual product will occur during the Launch phase. The post
launch phase focuses on reinforcing brand association through illustrating the functional
benefits of SmartThings products to appeal to the pragmatic side of the target consumers
The home automation industry is relatively new and unexplored in Singapore. Therefore
intensive campaigning, done through various mediums, will be needed to heighten brand
awareness and understanding of home automation technology through educating consumers
about these products. By spearheading large-scale marketing efforts islandwide, SmartThings
will be able to reap the first-mover advantages if it succeeds in defining a new image of home
automation within consumers minds.
Nonetheless, fun, unconventional and interactive advertisements that also provide a slight
element of surprise will help generate the buzz for SmartThings. Finally with constant
engagement, SmartThings strives towards recognition as a radical step into the future.

7.2 Design Principle

SmartThings is designed to be sleek and simple, with white being the predominant color for
all of its products. [Appendix D] Psychological studies12 have shown that colours have the
ability to create the most powerful impact in our visual sensories. The colour white often has
connotations of a sense of order, efficiency and decluttering. It also signifies simplicity and
minimalism. As such, the marketing campaigns are designed to mirror and reflect the

products core values of sleekness, simplicity and convenience. As evinced by the market
trends earlier in the report, the association of de-cluttering ones life will be favourable and
important to our target market due to their hectic lifestyles and thus our campaign will appeal
to them. White is also symbolic of the future, where SmartThings can envisage anything with
white. This is also representative of how SmartThings envisions the future of home
automation to be with SmartThings.

7.3 Teaser Phase

7.3.1 Broadcast, Print & Outdoor Media
Print ads with the tagline Have you seen the #SmartThings? will be displayed to create
suspense and raise awareness.
Overview of teaser strategy: A stark white advertisement with the tagline Have you seen the
#SmartThings? and the action phrase Find out more at www.SmartThings.sg.
Campaign Message: To declutter and Simplify ones life with SmartThings
Mediums:

Broadcast Media

A 15s television advertisement will be aired during the prime commercial airtime period on
Channel 8 or 5 before the daily news segment. A sudden white screen will flash across the
television for 5s, prompting consumers to sit up and take notice because their surroundings
suddenly become quiet and peaceful. After 10s, the words Have you seen the
#SmartThings? will flash across and end off with an action phrase Find out more at
www.SmartThings.sg for interested customers. Channel 8s high weekly viewership of 60%
and Channel 5s weekly viewership of 53.4% that is above average, justified our selection of
broadcast media as the medium of choice to reach out to the masses13.

Print Media

10

SmartThings can reach out to the new homeowners directly by advertising in the Home &
Decor magazine by Singapore Press Holdings which features interior design. Since the
readers are likely to be interested in home upgrades or renovations, they may be more
receptive to new home automation technologies. Furthermore, it has a high readership of
63,000 in 2013. Moreover, their audience coincides with SmartThings target segment as
57% of its readers are PMEBs (professionals, managers, executives and businessmen) with a
median age of 37 years. The same minimalist concept will be replicated in the magazine as
well to stand out from the rest of the advertisements which are often colorful and filled with
pictures.
SmartThings also aims to publish the same ads on MyPaper. This is because MyPaper is
primarily targeted at working executives, which is in-line with SmartThings target segment
and has a high readership of 271,00014.

Outdoor Media (Refer to Appendix H for illustrations)

Apart from broadcast and print media, SmartThings intends to reach out to our targeted
audience (PMEs) through SMRT
billboards bulkheads, displayed at
various strategic locations such as
Raffles Place MRT and City Hall
stations where the traffic flow is
high and concentration of target
audience is highest.
The underlying message for these 3 mediums is particularly strong because it is symbolically
representative of Smart Things. In a fast-paced world where consumers are relentlessly
bombarded by countless stimuli, the white space serves as a de-clutterer. In addition, the

11

momentary silence caused by the white spaces has a peaceful and tranquil effect. Similarly,
with Smart Things, consumers can now de-clutter their life as everything is now conveniently
accessible at their fingertips.
7.3.2 Social Media Strategy
Smartfies (Selfie Contest): SmartThings will encourage the public to post pictures of
themselves with anything that they deem as smart and hashtag them with #SmartThings on
Facebook, Twitter and Instagram to enter the Smartfie contest. Contestants who manage to
catch the SmartTruck in action will double their chances of winning. This will encourage
them to subconsciously search out for the SmartTruck, thus leaving a stronger brand imprint
in their minds. This aids in memory recall, and hence increases brand accessibility. In
addition, SmartThings aims to go viral with the hashtag campaign and spread brand
awareness through the word of mouth. The top 3 users with the most creative ideas will stand
a chance to win a SmartThings starter kit each worth $377!

7.4 Launch Phase

7.4.1 The Launch (Refer to Appendix I for illustrations)
The unveiling of SmartTruck will be hotly anticipated as a result of a month-long build-up of
suspense. This will also coincide with the launch of SmartThings. The media will be invited
to this launch event and help
create buzz as well. It will be
held on White Wednesday,
because research has shown
that people are more
receptive to new ideas during
mid-week15. Passers-by will
be invited to come onboard
the SmartTruck where they can be immersed in the SmartThings experience. It will be

12

unveiled at the open space outside Chevron House in Raffles Place. This is because there will
be the largest catchment area of office workers with the highest footfall which is our desired
target market. The SmartTruck will be designed to resemble a living room so as to
demonstrate the functions and benefits of SmartThings. Potential users will then be able to
experience first-hand how SmartThings can radically transform their lifestyles. In addition,
the SmartTruck is also emblematic of a home away from home. This means that users will be
able to access their homes on the go; anywhere and anytime.
After the initial launch of SmartThings, the SmartTruck will travel to Sengkang Square and
Jurong Gateway for two weekends each to enhance brand awareness. As it will be situated in
the middle of a large, empty space, it will garner attention and entice passers-by to visit. In
addition, DJs and emcees can be invited to further hype up the crowd.
SmartThings will also include a catchy jingle, Whats that White Things? Oh its the
SmartThings! With a memorable jingle and a strong conceptual link to the product, this
Smart campaign will become a buzz, thereby increasing brand awareness and accessibility.
7.4.2 Interactive Sensory Marketing
During the launch phase, SmartThings aims to build brand associations by reinforcing the
attributes (sleek) and benefits association (convenient, simplification of ones lifestyle),
through interactive sensory billboards. These interactive billboards are traditional paper
posters that make use of conductive ink, which senses electrical signal when parts of the
poster are pressed or activated. The electrical signal receives then activates the electrical
appliances, which are embedded onto the poster16.
The primary intention of introducing interactive sensory marketing billboards is to
demonstrate to consumers how the functional aspects of SmartThings products can and will
evoke feelings of excitement and curiosity through the benefits it provides. Engaging their
five senses, these interactive ads will deliver to consumers, first-hand experiences the
13

mechanisms of SmartThings and by that, garner attention and interest. The interactive
marketing billboards are a form of ambush marketing where consumers are taken by surprise.
This is because seemingly unassuming billboards will come to life thanks to SmartThingss
motion sensor capabilities.
Considering that the target segment consists of new home owners, these interactive ads will
be placed in the vicinities of property showrooms for instance by the side of the roads;
along pedestrian walkways; void decks; function halls, rooms; and/or other common areas of
HDB residential flats and commercial property. In a nutshell, there will be a set of 3 different
interactive billboards placed in four different heartland locations in Singapore, and within
each set, all three billboards will be placed side by side about five metres apart from each
other. As the passer-by will be exposed to repetitive advertisements by Smart Things, this
increases the familiarity and thereby recognition of our brand. Thus, this lays the foundations
for success as familiarity breeds trust.

Interactive automated coffee machine

The interactive automated coffee

machine seeks to replicate the ability
of SmartThings to automatically start
the coffee machine once you are
awake. A consumer can simply touch
or press the Coffee or Tea button
on the billboard interface and a
sound of either coffee brewing or juice blending will be generated for 5 seconds. After which
the selected dispenser will dispense a cup of coffee or fruit juice. ( Refer to Appendix E for
illustrations. )

14

Interactive motion sensor lit walkway

The Interactive motion sensor lit

walkway seeks to replicate the ability of
SmartThings to automatically light up
when one enters any room. As a
consumer walks pass each lighting
sensor, that portion of the billboard will
become illuminated. ( Refer to Appendix
F for illustrations. )

Interactive cooling fan

The interactive cooling fan seeks to replicate the ability of SmartThings to automatically start
the fans once a presence is detected. The user will be required wave his arms up and down in
order for the motion sensor to be activated. Once the motion sensor detects the correct action
made, the windows will open outwards
and the wind blower will release cold
air. This will provide passers-by a cool
respite to a hot day, and add an
element of fun to the campaign. (
Refer to Appendix G for illustrations. )

7.5 Post-Launch Phase

The post launch phase is designed with the intention to reinforce the brand associations
through revising the existing content used during the Teaser phase. The focal point of the
content would be to highlight the functionality of the SmartThings thereby aiming to convert
non-users to users. The choice of media and locations, for print and the outdoor advertising
are similar to the teaser phase.
15

Below is an illustrated example of the advertisement to be featured on Home & Decor

magazines:

As for the broadcast media during the post-launch phase, similar concept is being utilised as
that of the teaser phase; 5s of white space, followed by sudden flashing of the tagline Have
you tried the SmartThings? replacing the previous tagline used during the teaser phase
Have you seen the SmartThings? and finally ending off with the action phrase find out
more at www.smarthings.sg

8. Promotions & Branding Metrics

Even with a IMC plan and timeline in place, the progress of each phase within the IMC
campaign will be constantly measured and monitored. Google trends and Google analytics
will be the main tools employed to measure the success of the social media strategies
(number of shares, comments, likes, rate of participation in the photo-taking contest, the
usage figures of the hashtag #SmartThings is used etc).

9. Long-term Prospects
It is essential for SmartThing to look beyond the entry phase, and position itself for long-term
profitability and sustained growth. Hence, we suggest SmartThing to initiate an online
community for like-minded users to share the SmartThing experience.
This is a user-generated community that can be accessed through SmartThings campaign
website. The purpose of this community is to spread positive social energy by connecting
different users with each other as well as SmartThings staff. Users can also use this platform

16

to share ideas and seek technical support. SmartThings can use this community to create a
sense of belonging, build loyalty and establish a stronger relationship with its users. It can
also track and measure its users satisfaction level as well as to collect honest feedbacks from
them. This can be adapted from Procter & Gambles successful online community which is
proven to be "four times as effective per dollar spend as advertising"17.

17

10

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hResultsList.aspx

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Appendices

Appendix A

Table showing the population breakdown for type of dwelling in Singapore

Appendix B

SmartThings Brand Association Mental Map

20

Appendix C

Positioning Map

21

Appendix D

SmartThings products in white represents simplicity, cleanliness and sleekness

22

Appendix E (Interactive Marketing Billboards) Automated Coffee machine

23

Appendix F Motion sensor lit walkway

24

Appendix G Cooling Fan

25

Appendix H (White truck)

White Truck During the teaser Phase

White Truck During the Launch phase

26

Appendix I Integrated Marketing Communications Campaign Costs

Description

Cost Breakdown

Total
Cost

TV commercial

$3900 for 18 spots of 15s each over 4

weeks

$3,900 per
package x 2

7800

Home & Dcor magazine

(full page)

full page ad for 1 month

$3,300 x 1 month

3300

mypaper Ad

centrespread for 10 alternative days

in a month

$1,440 x 10 days

14400

SMRT billboard
bulkheads

placed at Raffles Place or City Hall

MRT

$1,600 x 4 weeks
x 2 stations

12800

Mobile Truck +
Refurbishment
Fuel Cost for truck
Campaign Website

includes cost of container,

refurbishing, rental of prime mover

$70,000

70000

$5,000
$10,000

5000
10000
123300

Activity
Teaser Phase

Launch Phase
Launch Event

tentage setups at open field next to

Chevron House

$31,000

31000

Interactive sensory
billboards

placed near flat showrooms at 4

different heartland areas for a month

$17,100 (per set

of 3) x 4 places

68400

Mobile roadshows with

truck

tentage setups at open fields at

Sengkang Square and next to Jurong
Gateway Road

$26,500 x 2
locations

53000
152400

Post-Launch Phase
TV commercial

$3900 for 18 spots of 15s each over 2

weeks

$3,900 per
package

3900

Home & Dcor magazine

(full page)

full page ad for 1 month

$3,300 x 1 month

3300

mypaper Ad

centrespread for 5 alternative days in

2 weeks

$1,440 x 5 days

7200

SMRT billboard
bulkheads

placed at Raffles Place or City Hall

MRT

$1,600 x 2 weeks
x 2 stations

6400
20800

Total Campaign Costs

296500

27