Smart Helmet | Product Description, Segmentation, Target Market And 4Ps Decisions

Product Description

The name of the product is Smart Helmet. This is a product especially designed for the bikers present in the market. The Helmet is called smart because it is made up using innovation and technology. The helmets are designed to be light in weight that would provide GPS service to the biker, the helmet will also provide walkie talkie service to the biker. The helmet will come with LED light to reduce the risk of accidents at night. The GPS of helmet can get connected to mobile through application so as to help people track the location of the biker. The GPS system is attached with laser light that will help the biker in enrooting towards the right road (Baker, Michael 2014).

1. Identify and explain which market segmentation variable you are using

The marketing segmentation variable chosen for the Smart Helmet product is demographic segmentation. This type of segmentation target people on the basis of their income, age, gender, education, occupation etc. On the basis of demographic segmentation, the product will be able to target the right type of customers on the basis of their income level, occupation and interests as well. Interest factor present in psychographic segmentation plays the lead role in attracting the customers to buy this product in the market. The demographic segmentation will explain in attracting the right type of customer and the psychographic segment will help in attracting the customer on the basis of their interest for biking (Bajaj, et. al.).

1. Why did you choose this method of customer segmentation?  Be specific.

I chose this method for customer segmentation because it divides the target market in a very organized manner. The demographic segmentation helps in analysing the customer on the basis of various aspects like their income level, age, gender etc., whereas the interest factor in psychographic segmentation will help in attracting the customers on the basis of their biking interest. Involvement of this type of segmentation in the marketing process of the company will help them to target all the skimmed customers present in the complete market. If the company will target people on the basis of demographic segmentation then they will not able to target the people who having interest of biking and do not fall in the demographic segmentation (Jaworski, Bernard, 63-70).

1. Who is the target market?  Be specific.

On the basis of demographic segmentation, the company should target people belonging between the age group of 16 to 40 years. The company should target these people who belong to upper middle class income level and have a keen interest in biking. As the product is presented in the market at a valuable price to which only premium and upper middle class people can afford to buy it. Further, on the basis of demographic segmentation, the company should target the people who are professional bikers. Also, the company should target the biking companies that provide trekking and racing bikes to the people in the market. Through this company, the Smart Helmet should also be served to the bikers in the target market. Selling the product through biking organizations will promote the company to diversified customers. Thus, product should target people that belong upper middle class and are bikers or have a keen interest in biking (Ruan, et. al., 785-796)

1. What are your product’s benefits to the target market?

There are various benefits that product serve to the customers in the target market. These benefits are discussed below:

• This helmet will help the biker to continue biking on the right track using GPS service available in the helmet. The helmet will also provide a laser view of the path that the want to lead.
• The helmet is light in weight and soft from inside that do not make the biker feel burdened on their head (Ebben, Jay, and Johnson, 113-122).
• LED light will also reduce the risk of accident, as it will make the biker visible while biking at night. Further, through the GPS service the family member of the biker can also know the exact location of the biker and talk to them using walkie-talkie.

1. At what price will your product be introduced?  Why?

The product should be introduced at a price at which it is placed in premium range products present in the market. Smart Helmet should be introduced in the market at a price of $ 250.

1. What new product pricing strategy are you using?  Why?

The product should be placed in the market using price skimming strategy. Price skimming strategy will make the company to target the skimmed customers in the market. Skimmed pricing strategy will initiate less sales of the product with high profit in the target market (Baker, Michael 2014, 62-73).

1. What objectives will be accomplished by using this strategy?  Be specific.

With the help of this type of strategy, the company will be able to target right type of customers in the target market. Further using skimmed pricing, company will only target the people that are the real and prospective buyers of company present in the target market.

1. Why is the product worth this price?

The Smart Helmet product is worth the price because it comes with a combination of varied services in-built in it. The helmet is a single product that provides service of GPS, LED light, walkie-talkie etc. Thus the product is worth the price.

1. Identify and explain what happens to each of the 4 Ps decisions you make for your product, at each stage of the PLC?

The stages of Product Life Cycle and 4 P’s decision regarding it are discussed below:

Introduction

• Product: At this level, the product is introduced in the market. So, the company should target the people mentioned above to increase its sales.
• Price: The product should be offered at a price mentioned above.
• Place: The product should be initially circulated in whole of US.
• Promotion: It should be promoted using banners and hoardings (Stewart, Bob, and Smith).

Growth

• Product: During the growing age of product, the company should make changes in the product according to the demand present in the market.
• Price: The price of the product should be increased according to the increasing demand present in market.
• Place: The product should be diversified into different market where demand in budding.
• Promotion: Social media promotion should be now focused at this stage.

Maturity

• Product: At maturity, the product should not be changed because of the likeliness of the product in the market.
• Price: The prices of the product should be increase on the basis of demand.
• Place: The distribution system should be formed in such a way that the product is approachable to all the customers present in the market.  
• Promotion: At this level, huge amount of the profits of the product should be invested in marketing and promotions activities of the company so that sales do not fall down (French, Jeff, and Russell-Bennett, 139-159.).

Decline

• Product: New changes should be made in the product on the basis of the demand and requirement of customers.
• Price: The prices should be decreased so as to increase the demand.
• Place: The product should be diversified in the external international market.
• Promotion: maximum focus should be invested on the promotion activities so as to deliver the specification of the product to the customers. 

Bajaj, Kamalesh, Khushdip Kaur, and Anupreet Kaur. 2017 “Principle of Marketing.”

Baker, Michael J. 2014 Marketing strategy and management. Macmillan International Higher Education.

Ebben, Jay, and Alec Johnson. 2015 “Simply sport bikes case study.” The CASE Journal 11.1: 113-122.

French, Jeff, and Rebekah Russell-Bennett. 2015 “A hierarchical model of social marketing.” Journal of Social Marketing 5.2: 139-159.

Jaworski, Bernard J. 2018 “Commentary: advancing marketing strategy in the marketing discipline and beyond.” Journal of Marketing Management 34.1-2: 63-70.

Ruan, Yi, Chang Chieh Hang, and Yan Min Wang. 2014  “Government? s role in disruptive innovation and industry emergence: The case of the electric bike in China.” Technovation 34.12: 785-796.

Stewart, Bob, and Aaron CT Smith. 2014 “Introduction to sport marketing”. UK: Routledge.