Consumer Marketing Case Study

6 Marketing Strategy

Based on the established business goals and objects and the market research performed as part of the SWOT analysis, this information can be used to develop a market strategy to create a successful and profitable product.

The marketing mix is the most fundamental concept of marketing, which is a set of controllable marketing tools that a company uses to create a desired response in the targeted market. Marketing Mix ' is also referred and known as the Four P 's i.e. product, price, place of distribution, and promotion. (Khan 2014)

6.1 Product

Khan (2014) defines a product as anything that can be offered to a market to satisfy a want or need.

The smartwatch market has a wide range of products available, each designed to

2013).

Hennings et al. (2012) further elaborates on this concept, specifically for luxury goods, concluding that customers perceived ‘luxury value’ of a product or service is built atop that customers financial, functionality, individual and social set of values, and the value that they perceive the product or service holds.

TAG are leveraging the concept of Price-Quality interface in their pricing model, and are aiming to become a product-quality leader (Kotler et al. 2013). By leveraging the existing quality and status of their brand, combined with a premium price, TAG will appeal to the niche customer within the smartwatch market.

The TAG smart watch pricing structure will maintain a premium customer price point, whilst attempting to maintain a 30% retailer margin (Refer to Appendix D).

Pricing will need to be adapted to accommodate geographical demands and costs as required (Kotler et al.

(Luxton, Reid and Mavondo, 2015).

As the wider mass market fragments and customers become more sophisticated (Kotler et al. 2013), companies must define specific approaches to reach them and deliver their message.

The IMC process will be an important part of the TAG smartwatch launch, providing a consistent brand experience and message across all customer interactions will be essential.

As discussed, a customer’s perception of the value of luxury goods is built on financial, functional, individual and social values. These are important considerations in the marketing of the product, and that all customer touch points and experiences reinforce those values to maintain the overarching brand value and product price point.

Failure to achieve a consistent message has the potential to deter customers and further to damage the brand.

As a new product in a competitive market space, a well executed IMC will ensure that TAG provide a consistent and coordinated marketing message, to their key customers, across multiple media types. This approach will ensure the best chance of profitability and