Marketing strategy for the Smart Wall LED lighting system

Marketing

Attribute Analysis

The attributes of the Smart Wall are that is offers the opportunity to change the look and feel of a room with some programming, in particular a smartphone app that can activate the wall covering. The wall covering is billed as a wallpaper but it is not really that, since it is comprised of LED lights that are controllable with the app, and thereby able to change the colors and patterns of the wall, giving total flexibility for the look and feel of a space. The app will be available for both Android and Apple and will use Bluetooth to communicate with the SmartWall.

The attribute is interesting, and certainly not something that has been seen much. Thus, there is some risk here in that the market for this is not all that well-known. For example, there have been a few things with variable lighting on walls that have been tested at some hotels but this is not widespread. So the idea of novel but untested, which means that while there is curiosity in the market about this product, it is as yet unknown what the actual demand is going to be for this attribute.

To estimate the demand, one needs consider the spaces. Now, changing the look of the room is only possible where the furnishings and fixtures allow it -- in some cases a new color or pattern on the wall will ruin the entire look, so this attribute is mainly for people who will be willing to design an entire room around the concept. By and large, this market is going to be commercial, especially sites like hotels, nightclubs and restaurants that can benefit from changing the look and feel of the room easily. Retail clients are likely the type who will dedicate a room for this and install furnishings in neutral colors in order to take advantage of this key attribute -- probably black and white (Doorknob, 2013). So there is definitely room to sell this attribute, because there should be customers who will benefit specifically from it.

Promotional Plan

In order to promote this, the target market needs to be understood. Interior design is a $10 billion industry (IBIS World, 2013). Designers are the most likely target market for two reasons. The first is their influence over the client and the second is their influence over many clients. This is not something we will be selling in Home Depot, but it will be sold through designers, to institutional clients that have their own in-house designers (hotels, etc.) and to wallpaper or paint retailers especially at the high end of the market.

Promoting to these bodies requires building up personal contacts, attending trade and design shows, and having ample promotional materials both online and offline. These three approaches will be necessary to gain exposure for the new product. The promotion needs to utilize print media in the trade press and in design magazines as well, because all of these promotional channels are necessary. The interior design business is essentially a personal one so there is a high degree of fragmentation in the industry with the top four companies holding less than 5% of the market. Thus, we need to cast a broad exposure net, and publications are the primary means by which we can do that.

Additionally, if this is possible we can consider getting a mainlining list of interior designers and sending out samples. We will send out the LED sheet, and offer instructions with regards to downloading the app and testing the product out. This works in two ways. The first is that it piques curiosity. The second is that going to this much effort will have our product stick in the head of the customer, especially if they still have the app on their phone. Obviously, samples are an expensive way to market to thousands of designers but we might be able to reduce the number of designers by focusing on the high end leaders of the industry only.

Channel or Distribution Strategies

There are a few different channel strategies. We feel that designers will be the bulk of our business because we feel that hotels, clubs and restaurants will be the bulk of our clientele, over 50% anyway. To reach designers, we need to work with the on orders. This means that we will warehouse our product and ship it like wallpaper, to be cut to spec on site. Mostly at that point we will need a trusted logistics partner. SmartWall is heavy so we will definitely need to take bids, but will rely on ground shipping from our centralized warehouse/showroom. This will increase lead times for delivery but in many cases deliver is scheduled -- the goods are not usually ordered for immediate delivery because they are part of an entire concept.

In addition, we are also considering entering the retail market, perhaps through upmarket home furnishing stores and maybe for wallpaper stores in particular. There is the possibility of doing home improvement stores depending on what sort of positioning we are seeking. This channel requires a little more in terms of manufacturing capabilities, and warehousing to meet the requirements of national distribution. Further, there needs to be a proven market for the product for a new company to win a slot at a place like Home Depot so this distribution channel is likely something we will have to put on the back burner for the time being.