A Camera That Protects Your Baby

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Title Page

1. Executive Summary
2. External Environmental Analysis
3. Competitor Analysis
4. Consumer Behavior
5. Segmentation, Targeting and Positioning
6. Product and Branding Strategy
7. Pricing strategy
8. Marketing Communications strategy
9. Distribution strategy
10. References

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 1. Executive Summary

In every economy, it has become important for every member of the family to earn. Now the

time is gone when only one member of the family was working and others were depending upon

him. In those times, females used to perform household activities and look after their babies. But

now it has become difficult for a family to meet the basic requirements at the income of one

person. In those economies where all the members of the family are working, they have high per

capita income as well as the high gross domestic product of the economy. Thus the economic

environment of all the economies requires all the members of the family to work and earn. In this

situation, it becomes important to think about the security of the children. Thus the economic

environment of all the economies makes us realize the need for baby monitors. Thus this

business plan focuses on creating a device which will supervise the children in the absence of

parents. The device will be connected to a CCTV camera and smart phone. Parents can check the

activities of their children at any time. We have adopted a differentiation strategy to launch this

product in the market. For distribution of the product in the market, we will follow B2B and B2C

channels.

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2. External Environmental Analysis

In today’s life, every parent has their busy schedule. If both parents are working, then it becomes difficult

for them to look after their children. As we all know that the trend of nuclear families is continuously

increasing. There was a time when grandparents used to take care of their grandchildren, but now the

situation has changed due to some economic and cultural factors in the economy. Parents have to leave

their children with servants. Thus the use of baby monitor becomes too essential.

Demographic Environment

According to census 2012 in UAE, the population of the country has increased up to 5,314,317. The

major part of the population of the country is the people from the age 25-54. This contributes to 61% of

the total population of the country. Infants and children are 20% of the total population of the

country[ CITATION Nes18 \l 1033 ].

Economic Environment

UAE is known for its oil and natural gas resources. These resources contribute to 25% of the gross

domestic product of the economy. According to the statement of a report of the Ministry of Economy

UAE, the average monthly salary of people of UAE is 18248.60 AED. It has become important for every

member of the economy to maintain this pace of growth. High per capita income would increase the

growth rate of the economy as well.

Cultural Environment

UAE is a multi-cultured country because people for various countries and cultures have come here for

their income sources. (Larsen, 2013).In countries with diverse culture, people from all categories can be

found. One cannot rely on anyone coming to their home. Even it is very difficult to have faith in the

servants at home. Thus it becomes very important to maintain the security of the children.

Political environment

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UAE is having a stable political environment.

Technological environment

In technological matters, the country is quite advanced. It is among the developed countries of the world.

The country stands in a good position in terms of e-commerce and trade. The country has the world’s top

telecommunication companies.

Natural environment

The natural environment of the company is green ecological. The country initiates to promote an eco-

friendly environment. The government of the country focuses on effective utilization of natural resources

[ CITATION Fer11 \l 1033 ].

3. Competitor Analyses

Direct and Indirect Competitors

The direct key competitors of the product are Motorola Digital Video Baby monitor/Audio Baby

Monitor/Connect Wi-Fi monitor, Phillips Avent Dect Baby monitor and camera children wireless phone

and smart device. The indirect competitors of the product are Tommee Tippee natural video digital sensor

and Infant optics DR-8. All these competitors have adopted a low-cost strategy for the popularity of their

product in the market. The main feature of all of these direct competitive products is that they can provide

video as well as audio facilities. All these products have contributed the highest share in the market of

these technological devices.

Competitor Analyses Table

Direct Competitors Price ranges Indirect Competitors Price ranges

monitor/Audio Baby video digital sensor

Monitor/Connect Wi-Fi monitor

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 monitor
Camera children wireless phone 100.00 AED

and smart device

When thinking of a Wireless Camera Baby Monitor, almost all people think of keeping an eye

watching over their sleeping kids. Watching over a sleeping baby is though very important but it

is important to have an eye at the children when he is not sleeping. Thus people always remain in

search of a product which can monitor their child throughout the day and night. Thus the most

common use of baby video monitors planned by us is the video. The baby video monitor can

help with monitoring older children as well as the sleeping babies. The consumers will get

utilitarian, emotional, symbolic or social needs with this product. This is helpful if the children

attempt to go outside without anybody’s permission. Baby video monitors are also useful for

monitoring the elderly, sick, physically challenged or disabled family members. Monitors having

alluring features of compact, portable models may make a video monitor intended for baby a

great choice for all other family members as well. This is portable, fashionable and trendy so

individuals can move throughout the house with a watchful eye, and peace of mind. Thus the

security of the children is the internal variable for affecting the decision-making process of the

consumer.

5. Segmentation, Targeting and Positioning

Product Market

This product will be launched in the market with a differentiation strategy so that it can attract

more and more customers.

Different segments of the market

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The market for this product has been divided into two different segments

For the first segment, this baby monitor device will serve the purpose of monitoring the infants

while sleeping as well as playing. This device will capture them in audio as well as video.

The second segment of the product market is old and sick people. As the device will be used to

monitor the babies in the same way it will help in monitoring the old and sick people.

Target market

The target market for this product is electronics and communication. This device will attract the

large part of the population of the age 25-54. As in this age, People have their families and they

care for the security of their children and this product will serve their need.

Positioning Strategy

This product will serve the needs of individuals for the protection of their children as well as

their old and sick parents in their absence with the installation of this device at home and the

connection with their smart phone. This feature of this device will help it to attain a

differentiated position in the market. We are trying to overcome its one of the weakness that is it

works with internet only. The product will achieve the largest share of the market if we will be

able to launch the same device with offline monitoring.

6. Product and Branding Strategy

The product will be launched in the market with the vision of security of children as well as to

provide ease to the parents who are both working and do not have any option to leave their child

with someone. This product will act as a supervisor of their children. This product will provide

video as well as an audio option. Thus the product has been launched in view of long-term

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success in the market. The differentiation strategy followed by the company for the production of

this product will help it for long-term success.

Objectives of the product

• To provide security to the children in absence of their parents through the connection of this

baby monitoring device with their Smart Phone.

• To observe the sick and old people when they are alone at home.

Product Mix

The product is not having multiple products in line with it but it is a single product which will

serve multiple purposes.

Type of consumer product and life cycle

Baby monitoring camera is a consumer product under the category of electronics and

communication. The life cycle of the product depends upon its maintenance and usage. This

product is an augmented product

Product and brand development strategy

The objective of the company is to attain a differentiated position in baby care products. Thus the

company has decided to focus on the popularity of the product by brand differentiation strategy,

with brand name “Hi-Tech baby care device” and high brand image as an electronic and

communication product for the security of children as well as old and sick people.

7. Pricing strategy

Pricing Objectives

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The company will use a premium pricing strategy to set the price of the product. As the product

is qualitative, if consumers will know about the features of the product, they will be ready to pay

a high price for it as well. The price of the product wills 500AED. This price has been decided

according to the value-based pricing strategy.

Demand and Price Sensitivity

As we have already discussed that the product is a quality product. So the law of demand will be

less applicable to the product. At the cost of security of their children, the parents usually are

ready to pay a higher amount as well. Thus there is less demand and price sensitivity for this

product in the market.

New Product Pricing Strategies

The company has followed a premium pricing strategy for the entry of the product into the

market. The company is only selling one product which is “High-tech baby care device”. There

is no other product to be sold in line with it. So the company does not have to set product mix

pricing. There is no price-adjustment strategy followed by the company.

8. Marketing Communications Objectives

Promotion Mix

Promotional mix is known as one of the 4 Ps of marketing. It includes sales promotion and

personal selling of the product. We will use direct response marketing and advertising for the

promotion of our product. This strategy will be a mixed marketing strategy.

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• As per the six steps of communication, we will focus on the major segment of the market

which the people from the age 25-54 who require these products for the safety of their children

as well as older people at their home.

• The best mode of communication will be advertising through flyers and posters.

• The major identified barrier is to make the people understand the use of the device

• We will conduct a survey based research to know about the level of understanding of people.

• We will collect feedback of the people for the improvement of the product.

Effectiveness

This direct marketing strategy and advertising method will provide effectiveness to the

marketing of the product.

Message to the target customers

“Safety is when you desire for it”

The product “Hi-Tech Baby care device” is here to fulfill your need for the security of your

children. If there is any issue regarding the usage of the product, the specifications of the product

have been given with it. You can give your suggestions for further improvement in this product.

9. Distribution strategy

The company will first measure the effectiveness of the product in pre and post-market

communication. To measure the effectiveness of the product in the market is an essential job of

the company before the distribution of the product in the market.

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The distribution channel for this device will follow a B2C strategy and B2B strategy. Under B2B

strategy the company will focus on brand building and under B2C the company will focus on

lead subscriber agent. The channel members will be producers, agent, wholesaler, distributor,

retailer and consumer. This will be a direct distribution channel. The marketing functions under

B2C distribution strategy are as follows:

• To set and communicate the values of the product

• To set the price of the product at the right level

• To design, develop, maintain, improve and acquire products which are required to fulfil the

needs of the customers.

These functions are shared among all the members of the B2C strategy. The distribution strategy

of the product will follow vertical marketing of the product.

In this distribution strategy, there will be no possibility of any conflict because marketing and

distribution of the product are following vertical steps.

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As we have already discussed that the company will use both B2C and B2B distribution strategy.

The most important channel used by the company will be web.. The Web is becoming a common

platform for everyone to search for any product. In any B2B and B2C business Web plays an

essential role. The company can also use the reverse process for this distribution strategy.

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References

Calderini. (2003). Corporate Governance, Market Structure, and Innovation. Edward Elgar
Publishing.
6Wresearch. (2018). UAE Fire Safety Systems and Equipment Market (2017-2023). Retrieved from
Partenering Growth: https://www.6wresearch.com/market-reports/uae-fire-safety-systems-and-
equipment-market-2017-2023-forecast-by-types-fire-fighting-alarm-smoke-heat-gas-flame-beam-
detectors-verticals-regions-competitive-landscape.html

Allen. (2018). Enhancing quality of life and contributing to a healthier future. Retrieved from Nestle in
Society: https://www.nestle.com/csv/impact

Fernando. (2011). Business Environment. India: Pearson Education .

Larsen. (2013). Living the Triple Bottom Line. Retrieved from Profitability Blog:
http://profitability.com/living-the-triple-bottom-line/

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