According to the article, the technological market becomes harder to differentiate. The Deutsche Telekom company has developed new business plans in order to differentiate them in the competitive market and they will start collaborations with award winning music producer will.i.am with respect to a new smartwatch.
The new smartwatch named "dial" targets the fashion, fitness, music, and the technological market. It will be mostly voice controlled, self-learning, adapt to user’s accent and habits, and operate independently of a smartphone. The watch will offer more flexibility and improve the quality of life by making it usable where phones are unpractical, for instance in the car or in the gym.
The author concludes that the smartwatch is a growing market, but is not adopting as fast as the smartphones. This product will be different to observe then we have seen previously and it's going to be interesting to discover how it develops and penetrates the market.
The article relates to many marketing concepts in the marketing plan and I found the article interesting in order to combine learning with real business situations.
The celebrity collaboration with will.i.am is a huge marketing promotion strategy in order to position their product and differentiate the product in the market. This will help them to capture their target market and create awareness on social media. The promotion strategy may be critical in this homogeneous market.
As Apple controls the largest share of the market when it comes to smartwatches in the U.S. and Europe this product can become a strong competitor as it focuses on important market trends such as fashion, fitness, music and the tech market. Beats by Dr. Dree is one example where celebrity collaboration and promotions were used to turn their idea into a billions dollar company in a very competitive homogeneous market.
By Marius Roeine
Deutsche Telekom Teams Up with will.i.am on New Smartwatch,
Published, February 22, 2016.
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