Group assignment - Semester-Long Marketing Plan Project

Group report

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Table of Contents
Executive summary........................................................................................................2
Introduction.....................................................................................................................2
Competitive information.................................................................................................2
Environmental scanning.................................................................................................2
Demand forecasted........................................................................................................3
Specific market segmentation, targeting, and positioning statements..........................4
Product brand positioning..............................................................................................5
Market differentiation of the product based on particulars.............................................6
Consumer-adoption process for the new product..........................................................6
Pricing strategy decisions..............................................................................................7
Serviceability of the Product:.........................................................................................7
Strategies to implement integrated marketing communications mix.............................8
Conclusion......................................................................................................................9
References...................................................................................................................10

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Executive summary
In this paper, the market research for the product Cloud Smartpen has been studied.
Market research refers to the process of establishing the feasibility of a new product
through direct customer study. An overview of this product as well as specify its brand
positioning and consumer adoption process is presented. Investigating and evaluating
the product and surroundings in which this product function has also been studied. 

Introduction
Full market research has been done on a new product- Cloud Smartpen.
Cloud Smartpen is a future creation for storing data without the need for storage; it
resembles a standard pen but can be used to write on digital screens in order to directly
convert the written information into digital documents that are subsequently uploaded to
the cloud storage facility.

 Competitive information
The Competitive theory examines the market environment in terms of, technologies,
and countries to assist the seller in defining an alignment or match between the
smartpen’s strengths and potential growth. It describes the best or most advantageous
match for sellers to pursue progressive merger & acquisition methods, global coverage,
research and innovation, and product development methods in order to implement
potential product expansion and growth throughout a projection time.
The new work from home trend has compelled businesses to migrate to cloud
environments in order to simplify everyday data access, exchange, and work
engagement for their distributed workforce. The development of cloud storage options
has boosted business usage of cloud storage technologies for ensuring business
stability, running applications, and storing data. Furthermore, more businesses are
migrating their workload to the cloud for the benefits of mobility, adaptability and
availability. 

Environmental scanning
Marketing Environmental analysis is an important tool to understand internal and
external factors which can affect the product. PESTEL analysis is the most common
way that a company undertakes (Perera, 2017.). It stands for-
Political: There are a variety of political issues that affect cloud Smartpen right now, as
well as elements that may affect the product in the future. The rate of tax imposed by
the government is one important political decision that influences cloud Smartpen in
Australia.
Economic: The current situation of the economy in Australia is a crucial element that
may have an impact on Cloud Smartpen. As a product that employs a quality marketing
approach rather than being a price leader, it is possible to observe how changes in the
economic environment can have a greater impact on the product's future than those
operating in the need and budget section of the market.

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Social: In the case of Cloud Smartpen, the following sociocultural developments in the
remote or macro-environment are significant:
1. The use of mobile devices is on the rise.
2. A greater reliance on digital systems
Technological: The impact of current technologies and technological advances on
economic conditions is evaluated. The following technological external elements are the
most important in cloud Smartpen external analysis:
1. Demand for cloud computing is increasing
2. Businesses are becoming more technologically integrated
Legal:  External legal factors in cloud Smartpen or macro-environment poses a risk.
The impact of laws or regulations on the product is indicated by this part of the
PESTEL/PESTLE analytical framework. Increasing the number of privacy regulations
will be the most important legal external factor in smartpen’s case

Fig1: Macro-environmental forces

(Source: (Perera, 2017.))

Demand forecasted 
Forecasting Demand is one of the important steps that Cloud Smartpen can undertake.
Forecast study of cloud Smartpen is critical for distributors, producers, and retailers to
predict the amounts that should be manufactured. Cloud Smartpen predicts demand
since it is fundamental business activities that will help the product determine how much
to produce and distribute to retail stores. Cloud Smartpen uses a judgmental Approach
to Demand Forecasting. The significance of this method is that it addresses the

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forecasting topic by presuming that consumers are aware of the Cloud smartpen's
outstanding quality and can promote similar products to others. The cloud Smartpen
gets people's knowledge and opinions by employing this strategy. As a result of
adopting this method, they are in a position to determine the proper demand for their
items. In order to anticipate the value of a product using a Judgmental approach, the
corporation conducts surveys using a Bottom-Up technique, in which everyone shares
their opinion, which is then combined to form their final forecast. Cloud Smartpen also
use the tentative approach in order to obtain an approximation of the product's future
demand rate. Cloud Smartpen can be introduced, and potential customers can be
asked if they are interested in purchasing it.

Specific market segmentation, targeting, and positioning statements

In today’s marketing, Segmentation, targeting and positioning is a key notion. Without it,
marketing programmes for Cloud Smartpen would have been basic, lack of individuality
would consider successful (Sukma, et al. 2019 p2 (3)). 
Segmentation: The main goal of market segmentation is to establish distinct consumer
segments, based on certain characteristics. The different ways to segment customers
for cloud Smartpen are 
Demographic Segmentation: It is the process of breaking a market into recognizable
categories based on physical and accurate data. It includes age, education, and
occupation
Behavioural Segmentation: This segment is based on individual buying behaviors.
Psychographic Segmentation: The Psychographic segment can be used alone or in
combination with other segmentation variables to segment a market. It is based on
attitude, risk appetite, ideals or the way of living
Targeting:  The goal here is to figure out which segment (which has already been
created) is more likely to result in leads. This includes market size, profitability and
accessibility. Accordingly, Cloud Smartpen targets customers primarily students and
professionals or someone who has writing for the purpose of note-taking and
documentation (Romppanen, 2021 p4 (3)).
Positioning: The last part is positioning. In the perspective of the target customers, this
allows differentiating the product from the competitors. Cloud Smartpen appeals to the
segment's members to the greatest extent possible. 

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Fig 2: Stages of target Marketing
(Source :(Romppanen, 2021))

Product brand positioning

Brand positioning is described as a brand's positioning strategy aimed at creating a distinct
impact in the minds of clients and in the market. It is a representation of the target market which
contains a comprehensive picture of how customers perceive the Cloud Smartpen (based on
research and data). Brand positioning strategies are intimately tied to customer satisfaction,
consumer-based brand recognition, and readiness to acquire the brand via molding consumer
preferences. In the minds of consumers, effective brand positioning refers to the extent to which
a brand is viewed as appealing, unique, and trustworthy. Importance of brand positioning
(Wang, H. 2017 (4)).
Market Determination: The cloud smartpen’s unique and innovative strategy not only clears the
chaos from the market but also gives a competitive advantage over its competitors such as
Google drive, and nextcloud.
Pricing strategy: Pricing conflicts with competitors aren't necessary for a strong brand. Instead,
strong brand positions promote the strong value of an item, causing buyers to desire to buy it
regardless of price (even if it isn't the lowest).
Easy Purchase decision: Eliminating the uncertainty from the buying process by explicitly
outlining the product and how it can help customers. Customers will be more trusting and willing
to buy if you provide them with the solutions to their inquiries.

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Fig 3: Product Positioning
(Source :( Wang, H. 2017))

Market differentiation of the product based on particulars

Market leaders: A market is an environment where enterprises can offer their products
and services to potential buyers within governing regulations. The market for smart
pens has shown significant and rapid growth in the last few years and has future scope
for further expansion. (Girsang, R.M, 2019 p2) Some of the major players in this market are
- Hewlett-Packard, Canon, and Apple.inc along with many others
Niche: Since smartpen’s are technology driven and any new technology for its adoption
requires a niche category. After its adoption its further utility for common masses can be
explored. For technology driven products these market niches can be found in -
academia, research, data driven services, media and communication related fields.
Potential product progress: Any new product that brings in unique innovations,
depending on their advantages and adoption success will decide if the product or
services falls into the category of market leader, challenger or follower. Lesser the
amount of innovation in a product in comparison to the existing products, more likely it is
to be a follower or competitor. Lesser the amount of technological advancement in a
product more will be the chances of the product trying to displace or compete with the
existing product on the basis of pricing and branding. 

Consumer-adoption process for the new product

Early stage adoption of this technology driven product of Smart pen will be driven by
technology enthusiasts or by institutions or individuals who have premium on their time. 
This could be achieved by adopting such time assistive technology. For mass adoption
product or service pricing and value addition to the individual plays a significant role.
Higher adoption of this product can be expected in organizations that have high
workload offices. This is expected because record keeping and analyzing digitally is
very superior to manual recording with less or no scope for error. This smart pen will
also help in making efficient use of time. In a highly developed society and digitally
aware society, adoption will correlate closely with complete digitization of available
information and transfer of collected information. 

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Pricing strategy decisions
Having a correct pricing model with a practical and applicable structured strategy is
extremely important in service or product placement in a market. Product or service
pricing is an essential part of the product evolution cycle. This will also be applicable for
technology driven product of the Cloud Smart Pen

Fig 4: Pricing strategies 

(Source: (Victor, et al, 2018))
Factors influencing pricing strategy in a market
Pricing strategies that can be undertaken are as under.
Market Analysis: A thorough market research needs to be conducted to understand the
competitors within the market, probable threats or unidentified gaps or opportunities. A
survey is required to find the correct pricing of competitors and their sales. If the product
value is not equivalent with the price of the product, buyers will not show interest or
hesitate to purchase the product or services. In this case the Cloud smart pen will have
to analyze the smart pens available in the market and create strategies around the
prevalent competition (Victor, et al, 2018).
Layered Pricing: Add on hardware and software support can be launched with the
product with difference in prices. Add-on modular features can be additionally priced.
This will allow customers a variety in their choice of product or services. For instance:
The smart pen can introduce additional features like language translation, data
recording, and documentation as a separately priced feature 
Trial based pricing: To advertise the product for user trial and get feedback on its utility
and benefits in relation to its cost
Payment Options: Introducing installment based payment options would encourage
potential buyers to purchase the product or services. 

Serviceability of the Product:

Locations: The Smartpen is a technologically driven product and generally does not
have any requirement for location related to its serviceability. However, to manufacture
or assemble the pen a designated location would be required. Collaboration with a
reliable distributor would be required for efficient retailing and branding. The location for

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serviceability of the pen will be distributors like - online market platforms or retail shops
selling technology-based products. 

Hours of operations: The Smartpen is a user-friendly automated device. There are no

operating limitations on the customer either in terms of time or cost.
Strategy to manage demand & capacity issues: Once the pen creates a market of its
own, there will arise a need to meet the consumer’s supply demands. Then there will
emerge a requirement of having reliable sourcing partners who can constantly deliver
quality components for the product. Companies offering products or services manage
their capacity issues by trying to analyze and manage the demands of the product
launched in the market. Some of the ways by which a company can manage or increase
its capacity would be through hiring more employees, training existing staff, training
employees to increase their efficiency and creating more systematic and structured
technologies to aid manufacturing. 

Strategies to implement integrated marketing communications mix

The integrated Marketing mix is the application of traditional and contemporary media
and communication components to promote and provide flawless services and
products. Organizations utilize elements of media and communication like social media,
television, radio and others to position or launch their products or services. Depending
on such component-based marketing, instead of just relying on marketing based on
mass media will help the organization to understand the requirements of the
consumers, their point of view and their preferences. The organization producing
innovative technologies like the Cloud Smart Pen can come up with effective ideas for
effective branding and advertising through the correct implication of integrated
marketing communications mix. 

Fig 5: Elements of Marketing and Communication strategy that can be applied by the
company producing the smart pen
(Source: (Olutade, et al, 2019))
Digital Media: Certain social media platforms have a large reach of users. The users of
these platforms identified by their interest can be exposed to the advertisement of the
product or services who may in turn become potential buyers. The advertisements put
up on browsers and other marketing platforms can turn into consumers with the right
mix of brand advertisement (Olutade, et al, 2019, p3 (2)).

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Print Media: This form of media enjoys more permanence than the others but it takes
more time to establish print advertisement. 
Public relations: Sponsorships of events or collaborations with organizations and
institutions will lead to better visibility and recognition and aid in identifying users who
can become prospective future consumers of the product or service.
Blogs: Advertising on blogging sites that specifically discusses technology based
content writing. Prospective users who visit these blogging sites can get alerts through
push notifications (Bahcecik,et al., 2019) 

Conclusion
The first concern is market uncertainty, which determines if customers exist or if there is
a prospective market for the cloud Smartpen. Next source technological uncertainty
refers to a lack of certainty about whether technology will perform as expected and meet
client expectations. Competitive volatility is the last factor that determines a product's
competitive environment. Additionally, in order to attract customers, the product must
understand the sort of technology, and be able to match marketing to the type of
technology.

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Girsang, R.M., MARKETING STRATEGY FOR LEADERS, CHALLENGES, FINDERS

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