Introduction
This case study is about reMarkable and how it reimagines the future of writing. The manager is aware that reMarkable could transform the daily lives of individuals. However, the challenge remains in identifying the group that would readily adapt and depart from the traditional paper model and the best ways to cater for them. With the introduction of a timeframe in 2016 and only having a crude prototype, funding for more development and future marketing became a rising challenge. Wanberg manufacturing partners showed a minimum batch order of five thousand units to be paid for upfront before producing a single unit. At the same time, reMarkable needed to employ another worker to manage this campaign, and success could not be guaranteed immediately. This case study, therefore, explains the approaches that a CEO would undertake, including the segment targeted, market plan, and penetration forecast.
Target Segments and Key Features
Other than handling the wants and needs of different groups, there are some benefits from this approach. An organization leveraging the target consumer segment significantly reduces risks of failed marketing. Rather, these companies have more accurate decision-making initiatives over the marketing approach (Janssen et al. 2020). In this case study, the target segment is a group valuing creativity, paper-like writing and reading experience, and productivity. This customer group includes professionals, technology enthusiasts, and professionals. The professionals covered in this group could be writers, architects, and designers. On the same note, the target segment is one that values creativity and can part with the best product even at premium or set prices. Since the target segment values creativity, and are tech savvy, it is easier to identify with the newly introduced product within the market. The target segment also has disposable income and are explorative by nature. The gender is not important because the innovative product can be used by anyone.
The key features in the device should focus on unique e-ink display, note-taking and document annotation capabilities, and accurate stylus input. Other key features include cloud integration that allows for better storage and access, and increased compatibility with the popular e-book formats. Cloud integration is vital as it makes utilization and data storage better and enhanced (Hyrynsalmi et al. 2021). With cloud integration, there is better security since there is no single system in use. Cloud integrated platforms become more secure compared to the on-site systems. The cloud integration is also a means to minimize data silos. Since the product will integrate every cloud-based applications in a single platform, the users will have increased data visibility, work together consistently and on the same data sets, and improve productivity and processes for the business.
The Go-to-Market Plan
A market plan ensures all things a business undertakes feeds to the bigger picture and is aligned to the strategic decision. According to Perreault Jr et al. (2021), Understanding the marketing objectives ensures productivity and focus, and also consistency that gives the right platform for business growth. The marketing plan focuses on communications, distribution channels, pricing strategy, and gross margins. Under the communications approach, the marketing plan will focus on using social media, targeted online advertisement and tech blogs in order to reach potential clients. In this regard, the plan will identify and mention these unique benefits and features of the device for every segment.
Another marketing plan focuses on distribution channels. A distribution channel aids a business by providing products timely despite the location. These distribution channels are vital for business growth because they help companies reach newer markets, increases brand awareness and visibility, and also target particular customer segments (Perreault Jr et al. 2021). The distribution channels used include sales through online channels such as the official company website and Amazon. There is also a sales approach through select retail partners such as bookstores and tech stores to attract a wider audience base.
The third market plan focuses on pricing strategy. The device will be competitively priced to attract the early adopters and also gaining market share. Competitive marketing strategy is where organizations create the prices according to the prices of the competitors (Chen et al. 2020). This approach is useful in both offline and online markets, for attracting more clients and increasing market share. In the first phase, the company should set a slightly lower prices compared to premium e-readers. The focus should be on having value for money. The anticipated gross margin is approximately thirty-to-forty percent. This gross margin accounts for marketing, costs of distribution and production. The price approach is used when at first trying to attract new clients, winning them over, and then ensuring they turn in to loyal clients and promote the product through word of mouth (WOM).
Penetration Forecast
The market penetration approach is useful for sales forecasting because it aids organizations to determine the market share and potential growth they can accomplish in the present market. Market penetration measures the product clients used compared to the estimated costs for this specific product. There are both short term and long-term goals. The short-term goal is to moderate penetration within the first year. There is an expected higher rate of adoption among tech enthusiasts and professionals. The long-term goal is that with constant product enhancement and marketing efforts, there is an expected strong market position that comes with the steady business growth and development. While it is not anticipated to attain the same adoption levels as e-readers, the product (reMarkable) will have a niche market and accomplish sustainable growth and productivity.
Profitability Analysis
Judging from the pricing strategy and forecasted penetration, reMarkable will break even after two to three years and become profitable thereafter. This timeframe is given because of the cases of early adopters and the need to have an established presence in the market. There are equally expected risks to the business. Some of these risks include the rivalry from already established e-reader organizations. There is the threat from technological advancements that will continuously disrupt the market base and make products stale. The challenge from the constantly changing client preference will affect profitability. Customers always look for new and innovative products that meet their demands and satisfaction. In this case, consumers should always receive excellent products that constantly arouse their interests. This aspect should be considered when looking at the profitability analysis part.
Conclusion
For the upcoming launch reMarkable wants to pursue, targeting particular segments that focus on unique features, excellent go-to-market plan, clear profitability forecast and competitive pricing is vital. Through effectively executing these strategies, reMarkable can have a strong market presence and attain long-term business success. reMarkable provides a revolutionary digital paper device combining the convenience from modern technology with the experience of reading on paper and writing. Designed for creativity, simplicity and productivity, reMarkable is the best tool for people valuing the power of paper and pen in this digital era.
References
Chen, Z., Choe, C., & Matsushima, N. (2020). Competitive personalized pricing. Management Science, 66(9), 4003-4023.https://pdfs.semanticscholar.org/7659/4d058ed606ae69146933dfd1b0e8c8b24edd.pdf
Hyrynsalmi, S. M., Koskinen, K. M., Rossi, M., & Smolander, K. (2021, June). Towards the utilization of Cloud-based Integration Platforms. In 2021 ieee international conference on engineering, technology and innovation (ice/itmc) (pp. 1-8). IEEE.https://www.researchgate.net/profile/Sonja-Hyrynsalmi/publication/355854782_Towards_the_utilization_of_Cloud-based_Integration_Platforms/links/61f277a99a753545e2fe6889/Towards-the-utilization-of-Cloud-based-Integration-Platforms.pdf
Janssen, M., Schäufele, I., & Zander, K. (2020). Target groups for organic wine: The importance of segmentation analysis. Food quality and preference, 79, 103785.https://bia.unibz.it/esploro/fulltext/journalArticle/Target-groups-for-organic-wine-the/991006547198001241?repId=12297558620001241&mId=13297508550001241&institution=39UBZ_INST
Perreault Jr, W. D., Cannon, J. P., & McCarthy, E. J. (2021). Essentials of marketing: A marketing strategy planning approach. McGraw-Hill.https://thuvienso.hoasen.edu.vn/bitstream/handle/123456789/13195/Contents.pdf?sequence=1&isAllowed=y
write