TROY UNIVERSITY
MKT 3362

PRINCIPLES OF ADVERTISING

TERM PAPER
SHEEN I – SENSOR TECHNOLOGY WEARABLE PRODUCT

INSTRUCTOR: Quoc D. Ngo
Name: Nguyen Thanh Luan
ID: 1391483
Class: Monday Morning

TABLE OF CONTENT
I. Executive summary

II. Situation analysis A. Market current situation B. Competitors Analysis C. Target market

III. Advertising objectives

IV. Advertising Strategy A. Product concept B. Target audience C. Communication media D. Big idea E. Advertising message F. Advertising budget G. Testing and Evaluation

I. Executive Summary: I form my own business, which I name Vegaltair Company in remembrance of the China’s stars in the fairy tale – Vega Star and Altair Star. My company is a Wearable Sensor Technology Company, we are initiating selling technology wearable products.
Our product called Sheen I – the newest wearable product with the highest and the most stylish level of technology. It performs the outstanding functionality that sensor technology is efficiency delivered: ultimate material, light weight, waterproof and long battery life. The capability of our watch can be listed are long battery life (so we do not need to charge it everyday as we use some smart devices), light weight (it is the same as today’s trendy wristband, it could be lighter or more fashion), ultimate material (it is craved out of a block of solid metal and Anodized aircraft-grade aluminum so transmitting wirelessly is almost impossible), waterproof (we can also use it under water down to 50 meters); and the broad range of completely united sensors. A price for this product is set at $99.99 to $299.99. II. Situation Analysis A. Market Current Situation
In the competitive technology market, Vegaltair is one of the newest companies. We have several products including activity tracker, sport band, sport necklace, classic tee, beddit (sleep monitor with smart alarm), and smart LED light bulb. My company has set many showrooms and stores all over the world that provides to the demands of every segment of customers. B. Competitor Analysis
There are both weak and strong competitors in the technology industry. In point of fact, three identified strongest competitors as Nike, Inc. (Nike+ FuelBand SE), Jawbone (Jawbone Up) and Fitbit Inc. (Fibit Flex). For the 52-week period beginning in early January 2013 and ending in early January 2014, the devices of Fitbit accounted for 68 percent of devices sold; Jawbone Up sales assumed for 19 percent of all devices sold; and Nike FuelBand sales made up 10 percent of sales. * Nike+ FuelBand SE: Nike released its Nike+ FuelBand SE on November 5, 2013 in Canada. After the introduction of SE, an 18% rise in profits appeared in the 2012 fiscal year. The Nike+ FuelBand SE has Bluetooth 4.0 which automatically synchronizes with the Nike+ Fuel App. It can also track the users’ sleep schedule. It’s perhaps the most popular and the best marketed, and it was one of the first mainstream fitness gadgets.
The utility of this gadget is it can count the user’s step and measure the motion, after plug the end of the water-resistant band which consists a clasp that doubles as a USB stick into a PC, it will automatically sync or charge. Nike+ FuelBand SE display modes including time, energy burned that is measured in calories, the steps taken, and NikeFuel earned. * Jawbone Up: It was the company’s first non-audio product which launched in November 2011. It includes a flexible rubber-coated wristband and accompanying iPhone and Android app. The utility of this device is tracking the user’s sleep, eating habits, and daily activity including steps taken and calories burned.
Jawbone also supports a social-networking app to add an extra layer of motivation within the system. Comparing to the Nike+ FuelBand’s weight, the Jawbone Up is very light (0.8 ounce). * Fitbit Flex: In May 2013, the Fitbit Flex device was launched. A simple display of 5 LED lights which display the number of steps taken is on the wristband. It will vibrate when the user’s goals are reached. The utility of Fitbit Flex including track the steps taken, sleep quality plus how many times you woke during the night, and it syncs data wirelessly automatically with PCs and Macs. Comparing to the Nike+ FuelBand and Jawbone Up, Fitbit Flex offers more features and convenience at a lower price. C. Target market * Geographic: Worldwide * Demographic: * Gender: Male and female * Age: 10-60 years old * Income: Average income (As the comparison to other products in the technology market, the price of Sheen I is cheaper than those, so we only want to target the customers with average income) * Occupations: Students, housewives, sedentary people and gym workers. * Psychographic: we supply customers who want to live healthier, and want to train their body becomes fitter. III. Advertising Objectives * To present and attract customers about our new product – Sheen I. * To set up a long-suffering and strong brand illustration – leader in Sensor technology. * To increase consciousness and build essential demand. * To build the firm relationship with customers – loyal customer relationship. IV. Advertising Strategy A. Product Concept
Sheen I is the superior wearable product which is successfully applied the Sensor technology in reality. Therefore, Sheen I that is the differentiation of our product has no competitor in using this new technology. In addition, we choose Sensor technology because its products are totally rare and unfamiliar, so it will attract more customers to search, to test, to feel, and to buy our product – Sheen I. B. Target audience * User status: First-time user and potential user. * Loyalty rate: Strong and absolute. C. Communication media * Television
To date, television advertising has been considered the most effective mass-market advertising format despite of the inconstancy of user’s habits. Because of the popularity of Super Bowl advertisment, we will choose to debut Vegaltair’s products and especially challenge our products with other competitors’ products in commerce. * Magazine
The magazine environment delivers a reader the right mindset to be approachable to the advertisement. A well-crafted advertisement with tiny details is especially chosen to reveal to every target customer. Therefore, the advertisement for Sheen I must focus on experiences and meticulous. The broad achievement of customers when using this brand new wearable product must be shown in the advertisement. We can also accompany with our target market by approaching the target audiences. In the magazine’s compassionate context, the strong specific brand values of the magazine can deliver onto the advertisements. Every person who are managers, graphic designers, and so on always tend to choose the professional magazine to announce for the product of their company. With noticeable and gorgeous color scheme and new designs are shown to target audience with a note reveals our products is the best choice for the good state of health * Internet
Words of mouth and words of mouse can increase the reputation of the company with the judicious. There are many social pages such as Facebook, Twitter, Weibo, YouTube, and so on. In fact, no one can deny the effectiveness of the Internet in advertising. * Outdoor
We will attend some technology fairs to publicize our new products, sponsor to some technology studies, famous movie and TV show in the first and second year. We will build our own Vegaltair fair in years later and we also organize some technology projects to attract the creative customers and employees. D. Big Idea

“Neither tiny nor imaginary”
There are three reasons why I choose my company’s big idea is “Neither tiny nor imaginary”: * As mentioned above, our product which is made based on Sensor technology called Sheen I. It is a wearable product that can be worn as a wristband or bracelet (we are trying to establish the project which supports customer designing the colour and drawing some beautiful things on the surface, but they have to pay more than the others), or it can be stuck on our clothes, it is especially useful for athletes swimmers because of its waterproof). In addition, our product is very thin and lightweight so that is what we called “tiny” product with the small sensor technology inside it. We will continue to design more functional products in the future, not only the “tiny” products. * According to some researches, Sensor technology can be used abroad in technology and applications such as advanced environmental, chemical, and biological sensing, information systems and networking, automotive or transportation, communication or networking, healthcare or medical devices and so on. * Our product is unique containing the newest technology and real - it has been exhibited in technology fairs letting customers to touch and feel the product. We successfully applied Sensor technology into our wearable products so it is not “imaginary”. E. The Advertising Budget
This budget is aiming for the first and second year: * Television: More than $2000 * Magazine: From $1,000 to $2,500 * Social media: $5,000 - $6,000
We tend to spend more on social media because this is the most potential advertising on commercial media. * Outdoor: $10,000 - $15,000 As shown all above, we intend to get about 5% profit for the two years and increase the sales and profits up to 15% years later. F. Testing and Evaluation * Pre-testing:
- Direct Questioning: Cold calls, face-to-face selling.
- Focus Group: Invite clients to come, ask and study about perceptions, opinions, beliefs, attitudes to products and advertisement. * Post-testing: Telephone interviews or online interviews.