Marketing Strategy Of Motivation Ring Product: Market Segmentation (Research Paper Sample)

Assignment ID 32316 Executive summary The report provides a comprehensive study on motive ring product along with its importance to the customers. The research study developed a marketing strategy for the motive ring by performing variance analysis such as situational analysis, SWOT analysis, pestle analysis, along with identifying various factors that would affect the productivity and revenue of companies developing motive ring. The study will also identify the potential customers of the motive ring by performing market segmentation and targeting and Positioning. Apart from that, appropriate financial and marketing objectives will also be discussed for the same product. Furthermore, using the marketing mix strategy, the study will provide a better understanding of how the motive ring can be marketed and advertised. At last, a proper budget for the promotional strategy will also be identified and allocated which would provide special emphasis on the digital communication techniques. Table of Contents TOC \o "1-3" \h \z \u Executive summary PAGEREF _Toc525053501 \h 1Introduction PAGEREF _Toc525053502 \h 3Market segmentation, targeting and Positioning PAGEREF _Toc525053503 \h 3Marketing and financial objectives PAGEREF _Toc525053504 \h 5Marketing mix strategy PAGEREF _Toc525053505 \h 6Budget allocation for promotion mix PAGEREF _Toc525053506 \h 7Conclusion PAGEREF _Toc525053507 \h 8References PAGEREF _Toc525053508 \h 9 Introduction A motive ring is the latest trend in fitness tracking devices which can be fitted into the finger of the user. It is completely different from the Boring looking fitness wristband an offer you a stylish and unique look in the form of a ring. The motive ring can easily blend into the wardrobe much better than any other fitness device available these days. The product is a perfect accessory for anyone who wants to track his or her fitness without cramping their style. It allows the user to track their heart rate, burned calories, steps taken, activities along with sleep using the application installed on your mobile device (Meidan, 1996). It is compatible with Android and IOS platform which allow the user to easily access information quickly and also allow them to set goals of their fitness while trekking their progress towards an optimum health. The motive ring is available in two different colours - rose gold and Slate Grey and is made up of Titanium. It can be recharged using a USB and last up to 3 days with a single charge. Since the finger size of different people varies from each other, the motive ring is available in seven different sizes to choose from along with a customized one. Users can simply give their ring size to the company and they will prepare a motive ring as per your size and colour preference. The product can also distinguish the distance covered, changes in the heart rate, short breaks in night time sleep, a series of specific activity types, etc. The user can also export data from other similar applications such as Google fit and Apple health providing and accurate health information. The ring appears extremely stylish and plain enough that fits with any other jewellery you wear. Market segmentation, targeting and Positioning Market segmentation refers to the process of categorizing the market into different segments in order to identify the potential customers for the product and services. This would also allow the business organization to easily target and position the product and service to the customer which would result in increased revenue and profit generation (Mangold, 2009). In case of motive ring, the market can be divided into four different segments known as demographic segmentation, behavioral segmentation, geographic segmentation and psychographic segmentation. Demographic segmentation: This refers to dividing the market on the basis of age, gender, income, etc. The motive ring is a product which would specifically be used by youth generation who wants to track their health and fitness. Both male and female will utilize the fitness device, however, due to its high price, only people with a high income will be able to afford it. Also, it requires the use of smartphone along with better understanding of health related terms, therefore, only educated people will be able to use the device (Meidan, 1996). Behavioral segmentation: Certainly, everyone wants to stay fit and healthy and that is why they would also want to track their health and fitness level. Young people would be highly attracted towards the motive thing as they have smartphones and love to know the activities they regularly do and how much calories it helps them to burn (Mangold, 2009). Apart from them, motive ring is also easy to use and anyone can easily adapt it to life. The product will be specifically targeted towards people who are bored and tired with clunky looking fitness wearable devices. People with high fashion sense would be most interested with the motive ring. Psychographic segmentation: The motive ring can also be used by people who are style conscious and fashion conscious. The product is quite stylish and fashionable in nature which would also attract such people (Mangold, 2009). Geographic segmentation: The motive ring can be used by young people in most of the countries due to its simple and modern design. The product will mainly be used by people living in suburban and metropolitan areas and largest cities as compared to rural areas (Camilleri, 2018). The market segmentation technique will certainly allow the manufacturers to identify the potential audience for the motive range and easily target them to increase the sales and revenue of the company. Targeting and Positioning The motive ring fitness device can be targeted among young generation between 18 to 34 years of age, both men and women. These are people who are highly health conscious and wants to lead a Healthy lifestyle. Most of these people have a good income with at least 29% earning over $100,000 (Mertesdorf, 1992). According to the research, it has been found that most of the fitness device users utilize the product for convenience and ability to self monitor various activities along with the concern for their health. The product can also be targeted among the people who are fat and wants to reduce the weight (Meidan, 1996). They would want to keep track of their progress by identifying the number of calories they burnt on a daily basis and also wants to share their progress on social media. And due to the fact that the motive ring has a very sleek and expensive design, it can also be targeted among fashion conscious users who do not want to use fitness bands that would tamper their fashion sense but still wants to keep track of their daily activities (Camilleri, 2018). When it comes to Positioning, it is important for the manufacturer of the motive ring to position the product as one of the leading and Stylish looking fitness wearable device. They should also advertise its high quality along with its features such as an incredible battery, fashionable and trendy look, assisting the motivation of the user for leading a Healthy lifestyle and accurate and reliable fitness tracker (Camilleri, 2018). While positioning the product, the company should advertise the product among its targeted and potential audience such as housewife, college goers, fitness seekers, people wanting to lose weight, fashion conscious people, and professionals. It should be promoted as a brand which is highly trendy, quality, sophisticated and modern looking with ability to maintain and promote Healthy lifestyle for the user while still keeping the fashion statement for everyday wear (Mangold, 2009). Marketing and financial objectives Marketing objectives are goals set by the company for the products and services they develop and advertise in order to achieve at a specific time. Below are provided some of the major marketing objectives of the motive ring product (Meidan, 1996). 1. Increase 10% of sales of the motive ring product every year. 2. Increase the market penetration of the product on every quarter. 3. Expand the business into new markets. 4. Increasing the awareness about the product among the potential customers. 5. Maintaining better relationship with the customers by satisfying their requirements. 6. Helping the customers lead a healthy and fit lifestyle. 7. Increasing the productivity of the company for developing more motive ring products Financial objectives, as the name suggests, are the goals set by the company to measure their financial growth of the organization at a particular time frame (Goldberg, 1982). Some of the major financial objectives of the company developing motive ring are as below: 1. To increase the revenue and profit margin of the company by 10% every year. 2. Expansion of the business by maximizing the wealth of the company. 3. Increasing the brand reputation and value of the organization which would result in engaging more and more customers (Goldberg, 1982). 4. Achieving better return on investment by developing more and more motive rings. Marketing mix strategy The marketing mix is an important marketing approach followed by the business organization to develop a proper marketing plan for the products and services. It consists of four different elements known as product, price, place and promotion. The marketing mix of motive ring are as below: * Product: The motive ring is a fitness device which is stylish looking and offers accurate insights of the health progress of the user. It is made up of Titanium and works with the motive app installed in the Android and IOS device (Goldberg, 1982). It allows the user to track his or her activities such as their sleep time, workout, running, heart rate, calories burned, etc. * Price: The price of motive ring is $199 which is quite expensive fitness devices. However, due to its wide variety of features such as a sleek lo...