Economic factor is important in the analysis of Pebble, but it does not play a crucial role in the development of the Company. The product is sold anywhere because it is available online. Customers who can afford this smartwatches can buy them online disregard of the economic situation or the level of inflation in a particular country. The financial support of the Company is an important component of the economic factor. The main concern is the limited advertising budget because Pebble does not have significant financial resources at its disposal. Therefore, the Company has to use other sources of advertising and promotion. The Company is currently using the word-of-mouth promotion.
This is a powerful promotional tool, but using this tool is not enough if Pebble is planning massive expansion.
Natural forces do not make an impact on the activity of Pebble. This factor cannot be called focal for the Company.
Technological factor is the second most important factor for Pebble because technologies are recently developed at high pace. The Company should develop a competitive advantage based on innovations to sustain fierce competition in the industry. Besides, there is a threat of substitutes: smartwatches can be substituted by smartphones. The main objective of the Company is to reach more customers. Pebble can offer the product of excellent quality supported by technical innovations of the well-known brand Android.
The contemporary smartwatches and smartphones market is characterized by aggressive competitiveness. The Company succeeded to differentiate in the mature market, but it needs advertising and promotional support. Pebble could apply to the influential organizations for help and explain its concept. It could excite the interest to the Company’s activity and products.
Regulatory forces do not make essential impact on the Company’s activity since governments do not impose any special restrictions on the internet sales.
Wearing stylish watches has been a sign of status long ago. Pebble should support this tradition and promote its product as a status symbol to acquire more customers. However, emerging of smartphones threatens with product substitute as smartphones also symbolize high social status.
Another social factor is relationships with the investors of the Company. Pebble experienced difficulties in convincing its investors to invest in the Company because they are not confident about the product. Besides, the company showed its presence online only. If Pebble organizes “showrooms” of its products, it could help convince investors in viability of the product. Also, Pebble should differentiate its marketing and promotional efforts. For example, Pebble could use the opportunity to cooperate with Apple iPhones and Mercedez-Benz to promote its premium products. The cheaper models can be advertised using celebrities’ appeal. Familiar individuals (athletes) could demonstrate how to use the product.
The product is advertised on the internet only and delivered to the customers with the help of delivery services. It is available to the customers all over the world who can afford to spend $200 or more for watches.
At the present time, Pebble cooperates with Apple offering online apps for its watches. This collaboration is very important for Pebble since it gives an opportunity to develop brand loyalty based on the reputation of its business partner. A key success factor for Pebble is developing collaboration with well-known brands such as Apple (Appendix A).
The market of smartwatches and smartphones is characterized by high level of competition, short product cycle, and quickly changing technologies. The main competitors of Pebble are Martian Watches, Cookoo and Sony Smartwatch that pose fierce competition for a new small company such as Pebble. Pebble cannot compete with the large watch manufacturers because it has limited advertising budget and limited opportunities to develop innovative technologies.
Publics is loyal to Pebble since this is one of the first companies created with the help of crowd funding. Customers are loyal to Pebble since they are tired of multinational corporations that expanded all over the world. Pebble embodies a miracle of personal creativity.
The primary market for Pebble is customer aged between 25 and 35 years, “early adopters”, tech savvy, with household income of $45,000. The secondary market for Pebble is customer between 35-50 years old, concerned about status, college educated people with household income of $75,000.
Appendix A SWOT Analysis of Pebble Smartwatch
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