Marketing plan for a new product

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.

Competitor Analysis

When you have an innovative new technology, it is important to focus on the broader competitive market, because there are no direct, immediate competitors. First there are wallpapers. Some are dated and have contributed to the decline of wallpaper, but there are companies seeking more innovative wallpaper concepts to liven up spaces (American Blinds, 2013), and these would be considered competitors. Wallpaper has the same key attributes of transforming rooms and defining styles (Macron, 2013). Wallpaper is roughly the same competition because it is a wholesale solution for wall covering.

Anything that adds to the look and feel of a wall qualifies. This includes paint, which is subject to intense competition. There is a lot of paint available in an array of colors and styles, but ultimately paint is one-dimensional. It does not change very often. Other wall coverings that are less permanent can be considered competitors. One of the big reasons is that they have the same attributes, in particular with respect to being able to quickly and easily change the look and feel of a room. Anything from a painting to a tapestry to mobile or Balinese masks. Anything that decorates a room is fair game to be competition for this wall. The SmartWall is more easily changed than any of these, but less flexible with respect to look and feel because it is two-dimensional while other decorative elements can be three-dimensional.

SmartWall therefore faces a number of competitors, albeit few direct ones. The product's niche will allow it to gain business without overtly beating a competitor but at the same time all designers are going to weigh their options for a space, and the SmartWall will have to beat out all of these other options.

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