EMWATCH incorporated is an Australian based company that specializes in multifunctional time pieces. The company’s flagship product is the EMwatch which combines timing and telephony capabilities in a wrist watch. The company prides itself in being a market leader in creating, designing and marketing multi-use wrist watches.
EMWATCH Incorporated is run by two directors who are also the founders of the company. They chose to continue managing the company despite its phenomenal growth because the still want to determine the direction and pace of growth. The directors are driven, focused, innovative, passionate and committed to their company. They use their qualities to recruit and employ managers and staff for the company. This highly specific selection process has ensured that the company has a staff of ambitious, self-driven individuals who work together as a unit (Saxena, 2009). Currently, EMWATCH Incorporated has 100 employees who work in the 5 key departments. These departments are production, finance, human resource, product development and marketing departments.
Innovation is at the core of the EMWATCH’s objectives. The company prides itself in reinventing the wristwatch with functional that were initially put in mobile phones and other comparatively larger communication devices. The EMwatch is a classic example of a simple wrist watch that can be used to make and receive calls, send SOS messages and retrieve information on the location of the wearer using GPS technology. Since its inception in 2002, the company has consistently released quality products at competitive prices.
A SWOT analysis is a thorough examination of the strengths, weaknesses, opportunities and threats that a company may face while operating. A SWOT analysis is more crucial for a company that is trying to launch a new product into the market. This is because the analysis allows the company to understand their relative position in the market bases on an honest evaluation of its, products, style of operation, brand name, market penetration, competitors and operational challenges (Bohm, 2009).
The value of EMWATCH Incorporated is in its highly innovative staff. The company has consistently developed wrist watches that are ahead of the pack. The company has perfected the art of combining the latest miniaturization techniques in mobile telephones and basic wrist watch function which is to tell time. The EMwatch is an innovative product that combines basic timing capabilities with mobile communication functionality in a wrist watch.
The company also produces unique products with multiple uses. The EMwatch does not compete directly with wristwatches or mobile phones because it is watch packed with calling and tracking devices. The EMwatch can be used to make calls, receive calls and send messages. The calls and messages sent can be used to track the location of the sender. The watch is also installed with GPRS tracking which is efficient in locating anyone, in any location globally. Finally, the watch has a designated SOS button which can be pressed when emergency assistance is requires. This can be used by the elder and incapacitated individuals who have mobility challenges.
EMWATCH is a small company that operates within Australia. This has limited the company’s accessibility to emerging markets which could increase its sales volumes. EMWATCH relies on its online store to reach potential customers in other countries. This limited presence in the market limits the company’s access to more customers, especially in developed countries in the USA and Europe. EMWATCH has a small product portfolio. Since its inception, the company has only managed to produce three major products. This place the company at a great risk of closure should these products become obsolete.
The company has recorded great success in the Australian market. Its online sales to North America and Europe have been growing at an average annual rate of 9%. The company could take advantage of this positive growth by establishing a physical presence in these two regions. Additionally, the company could outsource some non-sensitive operations such as the actual assemblage of the EMwatches to another country where labor and material costs are lower.
Personal devices like watches could be used for other functions apart from making emergency calls and receiving calls. The health sector can benefit from additional research into the use of wrist watches to measure heart rate and warn patients of an impending heart attack. Advanced technology and the need for smaller more efficient devices open up the possibilities for innovative companies such as EMWATCH.
EMWATCH operates in a highly competitive market. The new product may not enjoy any exclusivity because competitors are always prepared to produce competing products. China is a big threat to technological companies because the country is able to replicate and reproduce similar products at lower costs. This causes losses to companies that spend millions in product development and production. Some of the biggest producers and sellers of emergency watches from China are Super digital Technology Company Limited and Shenzhen Leed Electronic Company Limited.
It is not correct to classify EMWATCH Incorporated as a watch making company because the company’s products are sold as watches but have uses that go beyond time telling. However, for purposes of this analysis, we will categorize the company as within the watch making industry.
The watch making industry is flooded with companies that cater to all segments of the market. There are high end designers who make fashionable statement pieces which speak to the affluence of the wearer. Companies such as Rolex and Tag Heuer make world renowned time pieces that go beyond functionality. These companies occupy the top 1% of the industry share. The biggest chunk of the industry, 94%, is composed of thousands of companies which make and sell middle to low end watches. Most of these companies rely on brand name, product quality and competitive pricing to survive. The final segment is where EMWATCH falls. These are companies which create and sell watches which have other functional feature apart from timing. This segment is still profitable because it is still growing.
TARGET MARKET ANALYSIS
The product is designed for use by children, the elderly, the sick and pets. Parents can buy the watches for their children who may need tracking. The elderly and those who are bed ridden can press the designated SOS buttons whenever they need to raise the attention of their caregivers. The marketing strategy should appeal to the care givers who are between 25-50 years old. This group has the required purchasing power, children, pets and the responsibility to cater for their parents or other dependants. The product is majorly sold in Australia; however, the online store serves a broader global market which is growing (Czinkota, 2007).
The company will design a marketing campaign that will be directed at middle to upper segment of the market. These are individuals who have well-paying jobs and live in suburbia and other well-to do neighborhoods (Lamb, Hair & McDaniel, 2012). Sales records form the company indicates that 88% of total sales are from the company stores in high-end malls. 10% of the sales are from international internet buyers while 2% is from sales made directly to employees.
The targeted market is discerning and technologically savvy. The potential buyers understand technology and how it can be used to make their lives easier. Therefore, they are willing to spend a considerable amount to purchase a functional product as long as they see value in the product. These individuals are probably busy at work but would like to be aware of the location of their loved ones in case of an emergency.
The product is the EMwatch which is a wristwatch inbuilt with calling, texting, tracking and SOS messaging. The wristwatch has 4 days of battery life, 5 hours talk time, hands free call ability, GPRS connectivity and a compass feature for those who may be lost. The wrist watch will have genuine leather straps and 65mm by 43mm by 19 mm LED screen.
The EMwatch will be sold at $ 70 as an introductory price. The product price will be revised upwards to $85, one month after the launch. The price is inclusive of all accessories which are a charger and
The promotional strategy will use personal selling as a promotional focus. Customers will be given a one-time low price during the launch of the product. They will be given a one year warranty on their purchase and a money back guarantee should the product fail within 3 months of purchase. All this information will be prominently displayed in all promotional materials.
Advertising will be done majorly through media advertising. The company’s stores will run additional promotional exercises in the malls where the target market shops. The company’s online shop and affiliated gadgetry shops will spread the information to international clients.
The Chinese companies that compete with EMWATCH Incorporated advertise on the internet. They rely heavily on e-commerce sites such as e-bay to reach their international clients. Their company sites often have poorly translated messages which non-mandarin speaking clients cannot understand. EMWATCH has a comparative advantage over its Chinese competitors because the company can communicate clearly to majority of its potential clients who are English speakers.
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Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.
Saxena, R. (2009). Marketing management. New Delhi: Tata McGraw-Hill.