How to Help Samsung Avoid a Premature Decline of Smart Watch - Essay Example

Smart Watch Introduction Wrist watches have always been associated with timekeeping. These gadgets have had their own product life cycle with the arrival of automatic watches being considered as a major development. A wrist watch that reveals time only appears to be a product of the bygone era. Rapid advancements in technology have led to the advent of smart watches which are used for, in addition to timekeeping, many other purposes. The present paper lists and describes the various smart watches marketed by South Korean company Samsung. It also elaborates the segmentation, targeting and positioning adopted by the company to market its gadgets. Finally, certain recommendations have been made to help Samsung avoid a premature decline of the product. About the Product In simple words, a smart watch is a computerized wrist watch. Core benefits In addition to timekeeping, a smart watch acts as a personal assistant and offers better connectivity to the user. The gadget appeals to tech-savvy consumers who intend to upgrade their lifestyle.  Actual Product Samsung forayed into the smart watch market when it released the Galaxy Gear in 2013. The gadget, 2.6 ounces in weight, boasts of a 1.6-inch screen, a 1.9 megapixel camera and is compatible with the Note 3 smartphone. A built in speaker enables users to make hands-free calls. Samsung’s intent is to make the smart watch an integral part of the customer’s daily life (Cheng, 2013). Augmented Products The South Korean company has also rolled out the augmented versions of the smart watch under the brand names Gear 2, Gear 2 Neo, Gear Fit and Gear Live. The augmented feature of the Gear 2 smart watch is the stand-alone music player. The Gear 2 Neo is equipped to handle voice commands and therefore users can answer calls and emails directly from the wrist. The heart rate monitor is the augmented feature of the Samsung Gear Fit. This smart watch is also dust proof and water resistant. The Gear 2 and Gear 2 Neo run Tizen while the Gear Fit runs Samsungs proprietary RTOS (Sebastian, 2014). The Gear Live is powered by Google Android and has a built in pedometer in addition to the heart rate monitor. Potential Product The wearable computing device has the potency to become a key accessory to smartphones. With improved functionality and design, the smart watch could even become an independent communication device. Samsung has announced that it is in the process of developing the Gear S. The yet-to-be-launched elegant smart watch will have access to 3G and 2G networks, as well as Bluetooth and WiFi. The 2-inch curved Super AMOLED display of the Gear S promises to provide an enhanced viewing experience. Features like conversation view, condensed font and changeable straps, multi-sensors, built-in GPS and numerous health features are sure to delight the customers. Smart Watch Market Data from research firm Smartwatch Group suggests that the global smart watch industry stood at $ 700 million in 2013. The industry is likely to touch $2.5 billion by the turn of 2014. Samsung has become a dominant player in the smart watch market space and had captured 34 percent market share in 2013 (Adams, 2014). Customer Segmentation and Target Market Samsung has opted for a multi-pronged segmentation strategy for its range of smart watches. The company has used demographic, economic as well as behavioral variables to segment the market. Samsung has devised appropriate products and is therefore in a position to target different segments. In terms of demographic profiles, Samsung’s smart watches can be used by the elderly to monitor their health. The youngsters on the other hand can use these gadgets as a style statement. The Gear 2 is Samsung’s flagship brand and with a plethora of features, is specifically targeted at the high-end market. The Gear 2 Neo is light in weight, lacks a camera and is a reduced price model from Samsung’s repertoire (Brunner, 2014). This smart watch is thus intended for entry-level consumers. The Gear Fit is targeted at sport lovers and fitness freaks. The gadget has a heart rate sensor, gyroscope, and accelerometer and is thus ideal fitness tracking. Recommended STP It is recommended that Samsung should segment the market on demographic variables and targets the students. The smart watch to be developed for this segment should have specific Apps pertaining to education and news. The students should be able to browse information subject wise. At the same time, the watch should have an exercise tracker. A judicious blend of work and play will ensure overall development of the students. The smart watch should be positioned as a ‘tutor, trainer and friend’ of the students. Is the Product (Smart Watch) a Fad? Smart watches are not a new phenomenon. Microsoft launched SPOT more than a decade back. The gadget provided weather updates, stock news, and was equipped with a personal calendar. SPOT proved to be a failure though. The gadget failed due to its own shortcomings and not due to non-acceptance by the consumers (Albanesius, 2014). Over the year, companies have conscientiously designed and manufactured new smart watches that have improved functionality. Heavy investments in R&D have been made as the smart watch market has a huge potential market. LG, Motorola, Pebble, Samsung, Sony and Motorola are some of the major multinationals that market smart watches at present. Apple, the manufacturer of the iconic iPhone has also unveiled its smart watch recently. The early adopters have already embraced the gadget with open arms. As the product evolves, the early majority and late majority will also jump on to the bandwagon and thus increase the market for smart watches. Analysts expect that the global smart watch industry would grow at triple digit growth rate in the coming years (Adams, 2014). Thus smart watch is not a fad, but is a valuable product that will survive, rather thrive in the market place in the long run. Prevention of Premature Decline The success of the smart watch industry is heavily dependent on state-of-the-art technology. Since the rate of change of technology is pretty fast, the product life cycle of the smart watch is bound to be short. Samsung can prevent the premature decline of the smart watch by continuing to invest in R&D and adding innovative features to the gadget. Development of new sensor technologies and ability to link the gadget with the internet will be the key to success. The smart watch market will continue to succeed so long as the gadget delivers on two important aspects; form and functionality. References Adams, A. (2014). The Size of The Smartwatch Market & Its Key Players. Forbes. Retrieved from http://The Size of The Smartwatch Market & Its Key Players Albanesius, C. (2014). Smartwatches: Ready for Primetime? PCmag.Com, Retrieved from http://search.proquest.com/docview/1534302565?accountid Brunner, G. (2014). A galaxy of gears: Why is Samsung releasing three non-android smartwatches? ExtremeTech.Com, Retrieved from http://search.proquest.com/docview/1501857011? Cheng, J., & Min-Jeong, L. (2013, Sep 05). Is it time for smartwatches? --- Samsungs galaxy gear opens new front in tech battle over wearable devices. Wall Street Journal Retrieved from http://search.proquest.com/docview/1430257149 Sebastian, A. (2014). Samsung unveils trio of gear 2, gear 2 neo, and gear fit smartwatches - none run android.ExtremeTech.Com, Retrieved from http://search.proquest.com/docview/1501605960 Read More