BM3506 Brand Promotion Assignment.docx

7/25/2019 BM3506 Brand Promotion Assignment.docx

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ContentsExecutive Summary ................................................................................................................................. 3

1. The Product - SmartThings................................................................................................................. 4

2. Market Trends & Analysis.................................................................................................................. 4

2.1 Adoption of Home Security Gadgets............................................................................................ 4

2.2 Growth in New Homeowners ....................................................................................................... 4

2.3 Increasing Need for Efficiency and Surveillance ........................................................................... 5

2.4 Singapores ambition to be an Infocomm hub ............................................................................. 5

3. Target Market Segment ...................................................................................................................... 6

3.1 Demographic ................................................................................................................................. 6

3.2 Psychographic ............................................................................................................................... 6

4. Competitors Analysis......................................................................................................................... 75. Brand AssociationsMental Map ...................................................................................................... 8

6. Positioning Map and Statement ......................................................................................................... 8

7. Integrated Marketing Communications (IMC) Campaign ................................................................... 8

7.1 Campaign Objective ...................................................................................................................... 8

7.2 Design Principle ............................................................................................................................. 9

7.3 Teaser Phase ............................................................................................................................... 10

7.3.1 Broadcast, Print & Outdoor Media ..................................................................................... 10

7.3.2 Social Media Strategy ........................................................................................................... 12

7.4 Launch Phase .............................................................................................................................. 12

7.4.1 The Launch (Refer to Appendix I for illustrations) ............................................................... 12

7.4.2 Interactive Sensory Marketing ............................................................................................. 13

7.5 Post-Launch Phase ...................................................................................................................... 15

8. Promotions & Branding Metrics ....................................................................................................... 16

9. Long-term Prospects ......................................................................................................................... 16


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Executive SummaryThe objective of this report is to underline SmartThings market development strategy into

Singapore. With increasing demand for home security gadgets and home automation,

SmartThings is well-positioned to enter the Singapore market because of the benefits it

offers. SmartThings aims to be the first brand that comes to the mind when home automation

or home technology is mentioned. After careful consideration, SmartThings decided to target

middle- income homeowners and Professionals (PMEB) aged between 30-44, with a keen

interest in cost-effective home automation technologies to enhance their lifestyles.

The report proceeds to analyze the current competitive environment before describing the

positioning strategy that is best suited for SmartThingsa one-click macro-overview on their

homes, anytime, anywhere. #SmartThings campaign is launched in three phases (Teaser,

Launch, Post-launch) over the 10-week period. The teaser phase would be to generate buzz

through broadcast, print, outdoor and social media. Through the teaser phase, SmartThings

aim to pique the interest and curiosity of consumers. The actual product will be unveiled

during the launch phase. Post-Launch phase aims to reinforce brand associations by

illustrating the functions of SmartThings. Looking beyond the initial entry phase, measures to

sustain the momentum will be implemented to ensure long-term profitability and growth.

Fun, unconventional and interactive campaigns that also provide a slight element of surprise

will help generate the buzz for SmartThings.

Finally, SmartThings takes an evaluative stance on the effectiveness of our campaigns

through the usage of brand metrics. SmartThings possesses the capability to empower users

in their everyday life through its clean, simple and minimalist interface. With constant

engagement, SmartThings strives towards recognition as a radical step into the future.


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1. The Product - SmartThings

SmartThings specialises in home automation technologies which are interconnected to a

cloud service, enabling homeowners to track activities occurring at home even without being

physically present. It requires the installation of a central hub which links home activities to

the homeowners smartphone devices via an app, allowing them to control and monitor their

home activities using only their Smartphones.

2. Market Trends & Analysis

2.1 Adoption of Home Security Gadgets

There has been a gradual increase in demand for advanced technological security gadgets by

HDB residents to safeguard their homes conveniently. According to The Straits Times in

20121, more HDB residents are purchasing biometric locks and peephole cameras.

Furthermore, 8 of the companies selling these products experienced a growth in HDB

resident customers from 10% in 2009 to at least 50% in 2012. The rise in demand could be

attributed to reasonable costs for installing the gadgets, greater convenience of going keyless

and prevention of break-ins due to carelessness of not locking the door. From Singstats

Population Trends 2013, 81.6% of Singaporean residents stay in HDB, 12.1% in

condominiums and other apartments, and 6% in landed properties2. [Appendix A] As

residents are becoming more receptive towards advanced technological home security

systems, it will be highly profitable for SmartThings to tap into this burgeoning demand.

2.2 Growth in New Homeowners

Singapores Housing and Development Board has also been actively increasing the number

of new flats in Singapore through its Build-To-Order (BTO) exercises3. In the first half of

2014, 3,841 new flats in six projects were offered. In addition, another 12,700 BTO flats

across various towns will be made available. For private properties, developers launched


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15,885 uncompleted units4for sale in 2013 and managed to sell 14,948 units. Thus, this large

supply of houses may encourage more Singaporeans to buy new houses.

The growth in the market of new homeowners signifies a big opportunity for SmartThings

due to two reasons. As buying a new home or home-moving is a major transitional period in

ones life, consumers will subliminally pay more attention to home improvement related

advertisements. Secondly, consumers will be more receptive to the relatively new additions

and technologies for the new home such as the concept of Smart Homes.

2.3 Increasing Need for Efficiency and Surveillance

Recently, many findings have revealed that Singaporeans work an average of 46 hours

weekly, compared to the global average of 38 hours at work. Longer working hours and less

time spent at home create the potential need for Singaporeans to invest in home systems. This

is because it allows them to monitor their homes wherever they are, whenever the need arises.

Meanwhile, other studies concluded that Singaporeans are facing tremendous stress at work.

According to a survey by Jobstreet.com5

, 60% of Singapore workers feel mental fatigue at

work while 34% of Singaporean workers are losing sleep over concerns about work. Thus,

SmartThings will be able to provide an ease of mind by allowing control over their home

activities

Moreover, other research trends have shown a shift towards home automation technology.

According to Forbes

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, consumers are increasingly used to a product (new technology) in

their hand that they can use to control the rest of their life. This shows an increasing

receptivity on the consumers part towards new technology that can help them better manage

and control their lives and increase efficiency.

2.4 Singapores ambition to be an Infocomm hub

Home automation products are becoming more popular7due to falling prices and standard-

based technologies that can be integrated into existing homes and appliances. As observed,


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Singapore smartphone penetration8has increased from 74% in 2012 to 78% in 2013 while

tablet penetration has increased from 31% in 2012 to 42% in 2013. Singapore has also taken

initiative to provide an ultra-high speed broadband network such as Next Gen NBN to be an

infocomm hub9. With high-speed broadband connections and growth of smart devices

(smartphones, tablet PCs) home automation has become more accessible and easy to use.

Researchers have speculated that the home automation industry will flourish in the future as

the present technology-savvy young generation becomes homeowners.

3. Target Market SegmentSmartThings is targeting homeowners, aged between 30-44, with a keen interest in cost-

effective home automation technologies to enhance their lifestyles.

3.1 Demographic

SmartThings is specifically targeted towards the middle youth segment, ranging from 30-44

year olds. The size of this group is expected to grow by 7% from 1.64mil in 2013 to 1.75mil

by 2016. Not only does this segment have high employment rates (97.5% of males and 79%

of females in this segment were employed in 2013), statistics from Ministry of Manpower

(MOM) have also shown that almost half of the employees receive the highest salaries when

they are in this age bracket. Hence this means that consumers in this age group possess higher

purchasing power to buy big-ticket items such as housing. Meanwhile, marriage rates for this

age group have also been growing steadily over the years10, implying a higher propensity to

settle down and buy a new house.

3.2 Psychographic

According to a report by Mintel11, consumers are now more willing to spend money to save

time. This opens up an opportunity for SmartThings as consumers will be more willing to

spend on cost-effective home automation technologies that can help enhance their lifestyles

by offering convenience and the tantalizing option of simplifying ones life.


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4. Competitors AnalysisSmartThings must analyse the current competitive environment in order to become the market leader by differentiating itself accordingly. There

is a white space for home automation technologies that are affordable yet offer convenience in a sleek, clean and cohesive user interface.

Smart Things Ihome Systems L3 Homeation Automate Asia

About Smart sensors combined with smart app for a

smart home

Home technology system Specialized Z-Wave home automation

company

Offers Z-Wave and the Homematic home

automation technology

Target

Market

Home owners who seek home security, and a

peace of mind

Targeted at upscale customers, state-of-the-

art, luxurious living space

Targeted at families, aims to bond family

members through home automation as a

common hobby

Home automation enthusiasts

Price $377 (exchange rate of 1 USD= $1.2620) $7,999


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5. Brand AssociationsMental MapSmartThings needs to have favourable and distinct brand associations so that prospective

consumers will be able to remember their brand. These associations need to be successfully

delivered by SmartThings and conveyed from our integrated marketing campaigns. In order

to build strong brand associations, SmartThings have decided to focus on convenience,

sleek and simplistic associations in its upcoming integrated marketing campaigns first.

[Refer to Appendix C]

6. Positioning Map and StatementThe positioning map illustrates how SmartThings measures up to its competitors based on 2

attributes: Price (x-axis) and Ease of Use (y-axis). Price is defined as a continuum from

affordable to expensive, whilst Ease of Use defines the seamlessness of the experience using

the product. [Appendix D]

For middle youths moving into new homes with hectic day-to-day work schedules,

SmartThings provides a one-click macro-overview on their homes, anytime, anywhere.

SmartThings commits to simplifying ones life by equipping customers with round the clock

convenience via its interconnected home automation technologies at value-for-money prices.

7. Integrated Marketing Communications (IMC) Campaign

7.1 Campaign Objective

( Refer to Appendix I for full cost breakdown )

The overall objective of the integrated campaigns is to increase brand awareness within

Singapores home automation technology scene, while enhancing SmartThings brand

association (sleek, simplicity, convenience), as well as increase brand accessibility.

The marketing objectives is to be achieved through various progressive phases, specifically,

the teaser, the launch and the post-launch phase.


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Campaigns carried out in the teaser phase are designed to build up anticipation towards the

launch of the SmartThings by keeping audiences in suspense to guess what the SmartThings

is. The unveiling of the actual product will occur during the Launch phase. The post

launch phase focuses on reinforcing brand association through illustrating the functional

benefits of SmartThings products to appeal to the pragmatic side of the target consumers

The home automation industry is relatively new and unexplored in Singapore. Therefore

intensive campaigning, done through various mediums, will be needed to heighten brand

awareness and understanding of home automation technology through educating consumers

about these products. By spearheading large-scale marketing efforts islandwide, SmartThings

will be able to reap the first-mover advantages if it succeeds in defining a new image of home

automation within consumers minds.

Nonetheless, fun, unconventional and interactive advertisements that also provide a slight

element of surprise will help generate the buzz for SmartThings. Finally with constant

engagement, SmartThings strives towards recognition as a radical step into the future.

7.2 Design Principle

SmartThings is designed to be sleek and simple, with white being the predominant color for

all of its products. [Appendix D] Psychological studies12have shown that colours have the

ability to create the most powerful impact in our visual sensories. The colour white often has

connotations of a sense of order, efficiency and decluttering. It also signifies simplicity and

minimalism. As such, the marketing campaigns are designed to mirror and reflect the

Teaser Phase (4 weeks)

- Broadcast Media

- Print Media (MyPaper, Home & Dcor Mag)- Outdoor Ads (SMRT Billboards)

- Social Media Strategy

Launch Phase (4 weeks)

- Launch Event (Chevron Square)

- Interactive Sensory Billboards(condominiums showrooms)

- Mobile Roadshows (Sengkang Square,

Jurong Gateway)

Post-Launch Phase (2 weeks)

- Broadcast Media

- Print Media (MyPaper, Home & DcorMag)

- Outdoor Media (SMRT Billboards)


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products core values of sleekness, simplicity and convenience. As evinced by the market

trends earlier in the report, the association of de-cluttering ones life will be favourable and

important to our target market due to their hectic lifestyles and thus our campaign will appeal

to them. White is also symbolic of the future, where SmartThings can envisage anything with

white. This is also representative of how SmartThings envisions the future of home

automation to bewith SmartThings.

7.3 Teaser Phase

7.3.1 Broadcast, Print & Outdoor Media

Print ads with the tagline Have you seen the #SmartThings? will be displayed to create

suspense and raise awareness.

Overview of teaser strategy: A stark white advertisement with the tagline Have you seen the

#SmartThings? and the action phrase Find out more at www.SmartThings.sg.

Campaign Message: To declutter and Simplify ones life with SmartThings

Mediums:

Broadcast Media

A 15s television advertisement will be aired during the prime commercial airtime period on

Channel 8 or 5 before the daily news segment. A sudden white screen will flash across the

television for 5s, prompting consumers to sit up and take notice because their surroundings

suddenly become quiet and peaceful. After 10s, the words Have you seen the

#SmartThings? will flash across and end off with an action phrase Find out more at

www.SmartThings.sg for interested customers. Channel 8s high weekly viewership of 60%

and Channel 5s weekly viewership of 53.4% that is above average, justified our selection of

broadcast media as the medium of choice to reach out to the masses13.

Print Media


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SmartThings can reach out to the new homeowners directly by advertising in the Home &

Decor magazine by Singapore Press Holdings which features interior design. Since the

readers are likely to be interested in home upgrades or renovations, they may be more

receptive to new home automation technologies. Furthermore, it has a high readership of

63,000 in 2013. Moreover, their audience coincides with SmartThings target segment as

57% of its readers are PMEBs (professionals, managers, executives and businessmen) with a

median age of 37 years. The same minimalist concept will be replicated in the magazine as

well to stand out from the rest of the advertisements which are often colorful and filled with

pictures.

SmartThings also aims to publish the same ads on MyPaper. This is because MyPaper is

primarily targeted at working executives, which is in-line with SmartThings target segment

and has a high readership of 271,00014.

Outdoor Media (Refer to Appendix H for illustrations)

Apart from broadcast and print media, SmartThings intends to reach out to our targeted

audience (PMEs) through SMRT

billboards bulkheads, displayed at

various strategic locations such as

Raffles Place MRT and City Hall

stations where the traffic flow is

high and concentration of target

audience is highest.

The underlying message for these 3 mediums is particularly strong because it is symbolically

representative of Smart Things. In a fast-paced world where consumers are relentlessly

bombarded by countless stimuli, the white space serves as a de-clutterer. In addition, the


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momentary silence caused by the white spaces has a peaceful and tranquil effect. Similarly,

with Smart Things, consumers can now de-clutter their life as everything is now conveniently

accessible at their fingertips.

7.3.2 Social Media Strategy

Smartfies (Selfie Contest): SmartThings will encourage the public to post pictures of

themselves with anything that they deem as smart and hashtag them with #SmartThings on

Facebook, Twitter and Instagram to enter the Smartfie contest. Contestants who manage to

catch the SmartTruck in action will double their chances of winning. This will encourage

them to subconsciously search out for the SmartTruck, thus leaving a stronger brand imprint

in their minds. This aids in memory recall, and hence increases brand accessibility. In

addition, SmartThings aims to go viral with the hashtag campaign and spread brand

awareness through the word of mouth. The top 3 users with the most creative ideas will stand

a chance to win a SmartThings starter kit each worth $377!

7.4 Launch Phase7.4.1 The Launch (Refer to Appendix I for illustrations)

The unveiling of SmartTruck will be hotly anticipated as a result of a month-long build-up of

suspense. This will also coincide with the launch of SmartThings. The media will be invited

to this launch event and help

create buzz as well. It will be

held on White Wednesday,

because research has shown

that people are more

receptive to new ideas during

mid-week15. Passers-by will

be invited to come onboard

the SmartTruck where they can be immersed in the SmartThings experience. It will be


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unveiled at the open space outside Chevron House in Raffles Place. This is because there will

be the largest catchment area of office workers with the highest footfall which is our desired

target market. The SmartTruck will be designed to resemble a living room so as to

demonstrate the functions and benefits of SmartThings. Potential users will then be able to

experience first-hand how SmartThings can radically transform their lifestyles. In addition,

the SmartTruck is also emblematic of a home away from home. This means that users will be

able to access their homes on the go; anywhere and anytime.

After the initial launch of SmartThings, the SmartTruck will travel to Sengkang Square and

Jurong Gateway for two weekends each to enhance brand awareness. As it will be situated in

the middle of a large, empty space, it will garner attention and entice passers-by to visit. In

addition, DJs and emcees can be invited to further hype up the crowd.

SmartThings will also include a catchy jingle, Whats that White Things? Oh its the

SmartThings! With a memorable jingle and a strong conceptual link to the product, this

Smart campaign will become a buzz, thereby increasing brand awareness and accessibility.

7.4.2 Interactive Sensory Marketing

During the launch phase, SmartThings aims to build brand associations by reinforcing the

attributes (sleek) and benefits association (convenient, simplification of ones lifestyle),

through interactive sensory billboards. These interactive billboards are traditional paper

posters that make use of conductive ink, which senses electrical signal when parts of the

poster are pressed or activated. The electrical signal receives then activates the electrical

appliances, which are embedded onto the poster16.

The primary intention of introducing interactive sensory marketing billboards is to

demonstrate to consumers how the functional aspects of SmartThings products can and will

evoke feelings of excitement and curiosity through the benefits it provides. Engaging their

five senses, these interactive ads will deliver to consumers, first-hand experiences the


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mechanisms of SmartThings and by that, garner attention and interest. The interactive

marketing billboards are a form of ambush marketing where consumers are taken by surprise.

This is because seemingly unassuming billboards will come to life thanks to SmartThingss

motion sensor capabilities.

Considering that the target segment consists of new home owners, these interactive ads will

be placed in the vicinities of property showroomsfor instance by the side of the roads;

along pedestrian walkways; void decks; function halls, rooms; and/or other common areas of

HDB residential flats and commercial property. In a nutshell, there will be a set of 3 different

interactive billboards placed in four different heartland locations in Singapore, and within

each set, all three billboards will be placed side by side about five metres apart from each

other. As the passer-by will be exposed to repetitive advertisements by Smart Things, this

increases the familiarity and thereby recognition of our brand. Thus, this lays the foundations

for success as familiarity breeds trust.

Interactive automated coffee machine

The interactive automated coffee

machine seeks to replicate the ability

of SmartThings to automatically start

the coffee machine once you are

awake. A consumer can simply touch

or press the Coffee or Tea button

on the billboard interface and a

sound of either coffee brewing or juice blending will be generated for 5 seconds. After which

the selected dispenser will dispense a cup of coffee or fruit juice. ( Refer to Appendix E for

illustrations. )


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Interactive motion sensor lit walkway

The Interactive motion sensor lit

walkway seeks to replicate the ability of

SmartThings to automatically light up

when one enters any room. As a

consumer walks pass each lighting

sensor, that portion of the billboard will

become illuminated. ( Refer to Appendix

F for illustrations. )

Interactive cooling fan

The interactive cooling fan seeks to replicate the ability of SmartThings to automatically start

the fans once a presence is detected. The user will be required wave his arms up and down in

order for the motion sensor to be activated. Once the motion sensor detects the correct action

made, the windows will open outwards

and the wind blower will release cold

air. This will provide passers-by a cool

respite to a hot day, and add an

element of fun to the campaign. (

Refer to Appendix G for illustrations. )

7.5 Post-Launch Phase

The post launch phase is designed with the intention to reinforce the brand associations

through revising the existing content used during the Teaser phase. The focal point of the

content would be to highlight the functionality of the SmartThings thereby aiming to convert

non-users to users. The choice of media and locations, for print and the outdoor advertising

are similar to the teaser phase.


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Below is an illustrated example of the advertisement to be featured on Home & Decor

magazines:

As for the broadcast media during the post-launch phase, similar concept is being utilised as

that of the teaser phase; 5s of white space, followed by sudden flashing of the tagline Have

you tried the SmartThings? replacing the previous tagline used during the teaser phase

Have you seen the SmartThings? and finally ending off with the action phrase find out

more at www.smarthings.sg

8. Promotions & Branding MetricsEven with a IMC plan and timeline in place, the progress of each phase within the IMC

campaign will be constantly measured and monitored. Google trends and Google analytics

will be the main tools employed to measure the success of the social media strategies

(number of shares, comments, likes, rate of participation in the photo-taking contest, the

usage figures of the hashtag #SmartThings is used etc).

9. Long-term ProspectsIt is essential for SmartThing to look beyond the entry phase, and position itself for long-term

profitability and sustained growth. Hence, we suggest SmartThing to initiate an online

community for like-minded users to share the SmartThing experience.

This is a user-generated community that can be accessed through SmartThings campaign

website. The purpose of this community is to spread positive social energy by connecting

different users with each other as well as SmartThings staff. Users can also use this platform


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to share ideas and seek technical support. SmartThings can use this community to create a

sense of belonging, build loyalty and establish a stronger relationship with its users. It can

also track and measure its users satisfaction level as well as to collect honest feedbacks from

them. This can be adapted from Procter & Gambles successful online community which is

proven to be "four times as effective per dollar spend as advertising"17.


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emails | Econsultancy. Retrieved from https://econsultancy.com/blog/62688-six-case-

studies-and-infographics-on-the-optimal-time-to-send-emails#i.1yzwwq31r3ehjv

16Anna Rudenko. (2014, May 19). Becks NZ unleashes playable posters that use conductive

inkPOPSOP | Brands That Teach: Ethical Marketing, Sustainability, Insight & Creativity.

Retrieved from http://popsop.com/2014/05/becks-nz-unleashes-playable-posters-that-use-

conductive-ink/

17WARC. (2009, May 25). Online community beats ads for P&G: News from warc.com.

Retrieved fromhttp://www.warc.com/News/default.aspx?ID=25179
http://www.warc.com/News/default.aspx?ID=25179http://www.warc.com/News/default.aspx?ID=25179http://www.warc.com/News/default.aspx?ID=25179http://www.warc.com/News/default.aspx?ID=25179


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11 Appendices

Appendix A Table showing the population breakdown for type of dwelling in Singapore

Appendix B SmartThings BrandAssociation Mental Map


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Appendix C Positioning Map


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Appendix D SmartThings products in white represents simplicity, cleanliness and sleekness


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Appendix E (Interactive Marketing Billboards) Automated Coffee machine


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Appendix F Motion sensor lit walkway


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Appendix G Cooling Fan


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Appendix H (White truck)

White Truck During the teaser Phase

White Truck During the Launch phase


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Appendix I Integrated Marketing Communications Campaign Costs

Activity Description Cost BreakdownTotal

Cost

Teaser Phase

TV commercial$3900 for 18 spots of 15s each over 4

weeks

$3,900 per

package x 27800

Home & Dcor magazine

(full page)full page ad for 1 month $3,300 x 1 month 3300

mypaper Adcentrespread for 10 alternative days

in a month$1,440 x 10 days 14400

SMRT billboard

bulkheads

placed at Raffles Place or City Hall

MRT

$1,600 x 4 weeks

x 2 stations12800

Mobile Truck +

Refurbishment

includes cost of container,

refurbishing, rental of prime mover $70,000 70000

Fuel Cost for truck $5,000 5000

Campaign Website $10,000 10000

123300

Launch Phase

Launch Eventtentage setups at open field next to

Chevron House$31,000 31000

Interactive sensory

billboards

placed near flat showrooms at 4

different heartland areas for a month

$17,100 (per set

of 3) x 4 places68400

Mobile roadshows with

truck

tentage setups at open fields at

Sengkang Square and next to Jurong

Gateway Road

$26,500 x 2

locations53000

152400

Post-Launch Phase

TV commercial$3900 for 18 spots of 15s each over 2

weeks

$3,900 per

package3900

Home & Dcor magazine(full page)

full page ad for 1 month $3,300 x 1 month 3300

mypaper Adcentrespread for 5 alternative days in

2 weeks$1,440 x 5 days 7200

SMRT billboard

bulkheads

placed at Raffles Place or City Hall

MRT

$1,600 x 2 weeks

x 2 stations6400

20800

Total Campaign Costs 296500

Documents

BM3506 Brand Promotion Assignment.docx