Marketing Plan
Market Analysis
Direct competition
Basic wearables versus Smart wearables
There are two categories of wearables: the “basic wearables” and the “smart wearables”. The smart wearables are devices capable of running third-party applications. Even though Fitbit offers “basic wearables” such as fitness bands, Fitbit has remained its place as the leader with its fitness tracking oriented devices. Fitbit has indeed benefited from being the first one launching smart bracelets on the market. But Apple is rapidly gaining ground with its “smart wearable”. Indeed, Apple launched its iwatch only in Q2 2015 but has already acquired almost 15% of the worldwide wearable device Market share in 2015.
Fitbit
Fitbit is an early mover but also still the leader on the wearable device market. Fitbit provide fitness tracking and health oriented smart bracelets. However, its products are limited to “basic wearables”.
Xiaomi
Xiaomi is a Chinese brand, leader in the Chinese Market using aggressive price competition. Recently, Xiaomi has extended its activities worldwide with its fitness tracker Mi Band at a very low price.
Apple
Apple is the leader in the market of “smart wearables” even though it launched its first smart watch in 2015. Apple provides a lot of applications to its devices and can then benefit to set high prices.
Garmin
Garmin has also a good place on the market by providing citizen athletes with wearables for running, golf, swimming, hiking, and aquatics. Garmin provides activity trackers similar to Fitbit and Xiaomi but with the new platform Connect IQ, the purchases will be boosted by the additional apps.
Samsung
Samsung has acquired success with its Gears S and Gear Fit. However, Samsung lose market share by providing smart watches compatible only with its high-end smart phones, limiting its potential on this developing market.
Global wearable device market
The wearable device market is still in its early stages. So with its expansion, MyKronoz has the possibility to gain ground.Apple sold the highest amount of smart watches in 2015 even though it was launched only in March 2015. Samsung lags behind Apple in terms of sales. However, Apple has only the third place on the worldwide wearable device market. Among the 5 biggest competitors on the market, Fitbit, Apple and Xiaomi are still leader in the worldwide wearable device market. Garmin and Samsung have a small market share compared to the 3 biggest leaders. At the 6th and 7th places, we can find Huawei and Jawbone.
To conclude, Apple is the leader of smart wearables, a market with a high potential, followed by Samsung. But MyKronoz sells Basic wearables that have a lower potential. Fitbit stays a bif competitor with its smart bracelets with similar features as MyKronoz smartwatches. In the Chinese market, it will be hard for MyKronoz to expand its brand.