The Launch of a New Product ALFA Smartwatch

Market
research:

ALFA
SmartWatch

Made
by
Andrew
Wilkerson,
Federico
Cottafava,
Antonio
Conte
and

Lorenzo
Gaggini

AGENDA:

1. Our
Product

2. Secondary
Analysis

3. Primary
Analysis

a. Qualitative

i. Focus
Group

ii. Depth
Interview

b. Quantitative

i. Internet
Survey

ii. Mall
Survey

4. Consumer
Behaviour

5. Conclusion

6. Appendix
(all
work
until
now)

1.
Our
Product

For
our
work
group
we
have
decided
to
launch
a
revolutionary
product
that
will
create
a
new

segment
of
the
market.
Our
new
technology
will
be
able
to
ease
people
lives
and
change

consumer
behaviour.
We
are
developing
a
market
research
about
a
touchscreen
watch,

endowed
with
an
internal
MicroSim
so
it
can
works
with
needing
to
be
connected
to
other

devices.
It
is
able
to
make
phone
calls,
surf
the
internet,
and
listen
to
music
and
other
features

as
the
most
powerful
existing
smartphones.
Its
name
is
ALFA
SmartWatch
(the
only
thing
you

will
need
ever).

2.
Secondary
Analysis

First,
we
analysed
the
secondary
sources,
which
are
cheaper
than
the
primary.
We
analysed

both
the
macro
and
micro
environments.
We
have
analysed
all
the
points
of
the
micro-‐
environment
following
Porter
also:

• Company:
our
firm
focus
only
on
the
production
of
smartwatches;

• Suppliers:
wide
and
different
components,
so
many
suppliers;

• Intermediaries:
advertising,
shipping
and
stores;

• General
Public:
investors
and
environment
agencies;

• Competitors:
no
direct
competitors,
because
we
are
going
to
lunch
a
new
product.

There
are
high
capital
requirements,costly
research
and
legal
patents
protecting
such

innovations,
but
in
similar
markets
there
are
already
strong
firms
like
Sony,
Apple
and

Samsung
that
could
enter
in
this
market
with
few
difficulties
due
to
their
strength
and

knowledge
in
technological
fields.
There
are
other
similar
products,
in
general

smartphones,
tablets
or
watches
that
connect
through
Bluetooth
to
mobile
phones,
but

nothing
that
can
do
what
our
product
can;

• Customers:
B2B
like
retail
stores
and
B2C
without
any
intermediaries
(for
example
on

line
store).

Then
we
moved
on
to
analyse
the
various
elements
of
the
macro
environment,
drawing
upon

news
on
the
outside
of
our
company
(External,
published
materials,
computerized
databases,

syndicated
databases).
We
used
different
sources
in
order
to
obtain
more
reliable
data
(for

example
www.ine.es).

Since
we
decided
to
launch
our
product
in
Spain,
we
analysed
the
points
according
to
this

country.

• Demographic:
we
have
seen
how
the
population
is
divided
according
to
our
target;

• Economic:
we
have
seen
how
the
country's
economic
situation,
what
are
the
salaries,

what
is
the
public
debt;

• Ecologic:
we
have
seen
how
the
country
uses
renewable
energy
and
how
is
the
cost;

• Technological:
we
have
seen
what
is
the
use
of
technology
and
how
industrious
they

are
present
in
the
high
tech
industry;

• Political/Legal:
we
have
seen
what
is
the
social
and
political
situation
of
the
country;

• Social/Cultural:
we
have
seen
such
as
sport
is
very
popular
in
Spain,
with
football
in

the
first
place
and
how
the
cinema
has
fallen
in
recent
years
but
remains
an
important

part
of
the
social
aspects.

Throughout
this
analysis
was
used
to
understand
many
things
about
the
launch
of
our

product,
such
as
the
fact
that
since
football
is
a
cornerstone
of
Spain
and
our
product
allows

you
to
see
results
in
real
time,
this
is
an
advantage
for
us.

3.
Primary
Analysis

Finished
analysing
the
secondary
sources
we
passed
to
analyse
primary
sources.
As
we
all

know
the
primary
sources
can
be
qualitative
and
quantitative.
We
started
with
the
quality

requirements
are
not
numerically
measurable
as
for
example
focus
groups
and
depth

interviews,
then
move
on
to
the
quantitative
with
a
survey
that
is
useful
to
collect
numerical

information
about
individual
aspects.

3ai.
Focus
Group:
14
of
October
we
did
the
focus
group
with
5
students,
3
girls
and
2
boys.

We
made
them
questions
trying
to
catch
their
attention
and
curiosity
and
trying
to
get

answers
based
on
3
aspects:
technical
aspects,
physical
aspects
and
price
and
distribution.

Lasted
approximately
32
minutes.
At
the
end
of
the
focus
group
project
we
used
some

techniques
such
as
association
test
words,
sentences
and
pictures
completion
responses.

These
have
been
very
helpful
to
understand
that
form
the
guys
prefer,
what
colour
and
what

occasion
could
use
our
product.

3aii.
Depth
Interview:
Because
our
product
has
a
target
population
of
up
to
70
years
old

and
realizing
that
our
focus
groups
have
participated
only
students
aged
between
21
and
24

years,
we
decided
to
figure
out
what
he
thought
an
adult
of
our
product.
So
we
did
another

qualitative
research
with
direct
approach,
individual
depth
interviews.
We
interviewed
a

worker
of
48
years,
submitting
10
questions
similar
to
those
in
the
focus
groups.
We
derived

from
this
that
there
are
some
points
of
difference
between
the
2
segments.

3b.
Quantitative:
Finished
analysing
the
primary
qualitative
we
switched
to
quantitative.

The
quantity
can
be:
survey
based
methods,
observation
and
experiments.
We
chose
to
use

the
survey
method,
that
allows
gathering
of
information
from
a
sample
of
individuals,
selected

from
a
larger
target
population
from
which
the
respondents
not
have
been
drawn.
So
based

on
the
qualitative
research
(FG
and
depth
interview)
we
have
defined
the
problem,
we
have

chosen
the
type
of
survey
to
use,
we
wrote
the
questions
and
we
did
a
pre-‐test
to
eliminate

bugs
and
implement
it.

Choosing
the
type
of
survey
we
saw
that
there
are
2
types:
Periodic
and
Ad-‐Hoc.
We
opted
for

the
Ad-‐Hoc
having
little
time
(the
periodic
takes
a
long
time)
and
having
little
money

available,
we
opted
for
an
internet
survey
and
mall
intercept
(being
telephone
interview
and

door
to
door
interview
more
expensive).

We
decided
to
use
this
two
types
because,
as
in
the
focus
group,
the
majority
of
the

respondents
of
the
internet
interview
was
young
students.

We
chose
structures
questionnaire,
appropriate
for
quantitative
research.

The
majority
of
questions
was
multiple
choice,
so
closed-‐end
question;
2
questions
were

mixed
question,
closed
questions
with
option
“others”
(nominal
scale);
3
questions
were

measurement
scale
(likert,
ordinal
scale);
2
were
continuous
scale
(interval
scale)
and
1
was

direct
question
(ratio
scale).
1
was
a
special
circumvent
question:
asking
indirectly
in
a

hidden
way.

3bi.
Internet
Survey:
We
used
www.qualtrics.com
as
platform
to
develop
questions.
The

internet
survey
consists
in
20
questions,
arranged
logically
like
that:

• 4
Personal
questions
to
get
information
about
the
respondents;

• 9
Questions
about
the
product
(Aesthetic,
Technical,
about
the
package
and
about
the

brand
itself);

• 2
Questions
about
Price;

• 3
Questions
about
Placement
(Where
and
When
purchase);

• 2
Questions
about
Promotion
(How
to
promote
and
effectiveness
of
a
slogan).

The
method
of
sampling
was
non-‐probabilistic
by
convenience
and
by
judgement,

respondents
were
selected
from
Facebook
friends
lists,
UC3M
and
University
of
Bologna

students
group,
relatives
and
more
groups
of
acquaintances.
The
results
of
all
60
respondents

were
collected
and
then
analysed
by
us.

3bii.
Mall
Survey:
We
were
aware
that
restricting
the
sample
as
we
did,
having
mainly

students,
could
mislead
results
not
to
realistic
conclusions.
We
faced
a
lack
of
professional

and
random
people
(cluster
sampling).
So
we
decided
having
also
personal
ad-‐hoc
interviews

with
Spanish
professionals
chosen
from
customers
of
Orange
Mobile
Phones
shop
at
Sol,

during
Monday
morning.
The
aim
was
seizing
people
unfamiliar
with
the
internet,
adults
with

a
stable
work
and
local
people.
A
sample
of
10
individuals
were
asked
to
answer
20
questions

arranged
in
the
same
way
as
the
internet
survey.

4.
Consumer
Behaviour

Which
need
are
we
addressing
with
the
purchase
of
a
SmartWatch?
The
two
needs
directly

satisfied
by
ALFA
are
socialization
and
entertainment.
Even
if
the
most
important
advantage

we
provide
to
buyers
is
a
device
able
to
easing
the
fulfilment
of
so
many
other
needs.
Because

people
want
the
most
up
to
date
technology
and
they
are
always
looking
for
the
easiest,
most

convenient
means
of
satisfying
their
needs.

We
were
not
able
to
lead
a
neuromarketing
study
giving
more
objective
and
precise
results.

The
analysis
we
are
going
to
present
is
based
on
data
we
collected
from
previous
stages
of

this
marketing
research.
Our
brand
is
new
in
the
market,
has
no
past
good
(or
bad)
feelings
to

be
remembered
by
people.
We
are
not
a
brand
with
a
basic
culture,
something
that
could

trigger
real
consumer
preference
into
different
behaviours.

ICABS
Analysis

•
Information
search:

In
our
situation
there
is
no
internal
source
for
people
(no
memories
or
maybe
little

knowledge
about
other
similar
products).
The
only
possible
way
to
look
for
information
is

externally
(Word-‐of-‐mouth,
advertising
on
the
Internet
or
during
promotional
events,
from

our
webpage
or
from
retail
stores
newsletters…).

No
brand
awareness
recalling
us.
We
are
starting
from
zero
and
because
of
that
we
should

focus
on
strengthening
our
recognition
and
building
our
Brand
Equity.
One
way
can
be
an

extensive
advertising
campaign
to
promote
our
product.
As
we
are
the
first
ones
offering
this

product
we
have
a
little
technological
margin
that
allows
us
to
make
an
extensive
(long

lasting)
promotional
campaign
without
being
overcome
in
the
short
run
by
stronger

competitors’
intensive
actions.
Our
ideal
path
could
be
in
the
middle
of
an
intensive
and
an

extensive
action,
relying
on
a
word-‐of-‐mouth
promotion
for
ALFA
SmartWatch,
hoping
to
get

the
sufficient
attention
thanks
to
the
innovative
aspects
of
our
product.

The
amount
of
details
we
will
spread
must
be
proportional
to
people
needs
of
information
to

purchase.
We
expect
high
needs
and
high
involvement
during
the
decision
process,
depending

on
the
high
importance,
high
uncertainty
as
a
newcomer
in
the
market
and
the
risks
(time
and

financial
losses;
psychological
risk)
resulting
from
a
bad
purchase.

Reassuming
ALFA
SmartWatch
requires
a
high
purchase
involvement,
not
a
routine
behaviour

but
an
extensive
one.
Meaning
that
people
would
make
an
effort
gathering
technical
info

about
ALFA
performances,
looking
for
the
right
model
(the
one
that
fits
on
personal

preferences)
at
the
best
price.

•
Cognition:

In
this
stage
our
possible
clients
will
evaluate
ALFA
SmartWatch
and
its
target
message,
if
it

can
be
considered
as
a
possible
answer
to
satisfy
their
aroused
needs.

If
we
want
to
become
one
of
those
candidates
we
have
to
avoid
first
negative
impressions
on

people,
avoid
a
first
negative-‐shocking
impact
that
can
bias
future
perceptions
of
our
product.

In
fact
short
term
memory
will
build
up
consumer
long
term
memory
information
about

ALFA.
And
then
next
time
consumers
would
have
to
make
decisions
about
our
product
they

will
recall
from
long
term
memory
the
positive
beliefs
from
the
first
time.

•
Affect:

Between
the
variables
that
describe
an
ALFA
SmartWatch
the
emotional
aspect
is
really

sensible
for
us.
We
don’t
have
previous
emotions
to
rely
on
as
differentiating
factors,
to
put

our
product
higher
in
the
consideration
set
of
possible
consumers.
The
brand
evokes
the

feelings
that
we
want
people
to
feel
or
the
ones
they
personally
develop
on
their
own
for
the

first
time.
We
don’t
have
tradition
or
culture
in
our
past,
so
the
emotions
we
want
to
achieve

inside
people
are
surprise
about
the
innovation,
admiration
of
technical
features
and
feeling

the
real
difference
from
other
similar
products.

The
final
choice
of
relevant
perceptual
dimensions
is
really
difficult
to
define,
consumer

perceptions
could
be
more
sensible
about
the
product
itself,
or
maybe
about
their
own
needs

or
even
about
brand
image.
Or,
as
in
the
case
of
a
complex
product
as
our
ALFA
SmartWatch,

we
have
to
consider
a
mix
of
all
those
attributes
of
perceptions,
developing
a
multi-‐attributes

model
to
analyse
more
easily
all
the
variables
of
consumer
preferences.
One
of
these
methods

could
be
a
conjoint
analysis
of
the
factors
that
shape
consumers
utility
functions,
measuring

attributes,
comparing
alternative
products
and
finding
interactions/trade-‐offs
between
all
of

them.

•
Behaviour:

This
is
the
stage
where
Demand
merges
and
purchases
happen.
After
having
ranked
ALFA

SmartWatch
against
competitors
people
face
social
and
affordability
constraints,
if
they
can

afford
to
buy
our
product
or
if
they
have
to
shift
to
a
less
preferred
but
cheaper
competitor.

•
Satisfaction:
We
always
presented
ALFA
SmartWatches
as
the
best
in
the
market,
one
of
the

main
technological
developments
of
this
moment,
in
other
words:
a
must-‐have
product.
These

descriptions
enhance
previous-‐trial
expectations
about
our
product,
in
so
doing
we
are

assuming
a
big
risk
if
perceived
performance
will
not
match
consumer’s
expectations.
But

satisfaction
is
necessary
to
carve
out
a
share
of
the
market
since
the
beginning,
we
need
a

positive
word-‐of-‐mouth
to
increase
knowledge
and
trust
about
our
brand.

We
will
know
about
consumers
satisfaction
or
dissatisfaction
only
after
they
will
have

reached
the
post-‐purchase
phase,
when
the
will
finally
be
able
to
see
if
expectations
were

matched
by
our
ALFA
SmartWatch
performances.
Only
if
the
results
will
be
positive
we
could

start
speaking
about
brand
loyalty
to
ALFA.

FCB
Matrix

ALFA
SmartWatch
is
a
product
that
requires
a
high
involvement
along
the
purchase
decision

process.
Mainly
due
to
the
relative
big
amount
of
money
related
to
the
purchase
and
due
to
a

time-‐expensive
gathering
of
information
about
ALFA’s
features
and
about
other
similar

products
in
the
market.

The
typical
decision
process
should
be
from
a
learning
step
to
finally
implementation
of
the

decision
(do),
passing
through
a
feeling
stage
less
important
than
the
others
two.
But
from
our

qualitative
analysis
we
found
that
a
quite
large
number
of
respondents
would
purchase
our

SmartWatch
for
fun-‐usage
(as
a
trend)
or
for
an
emotional
involvement
with
this
segment
of

the
market
(collecting).
Therefore
we
got
to
the
conclusion
that
ALFA
should
be
classified
as
a

high
involving
product
that
stays
between
the
Informative
and
the
Affective
dimensions,

shifting
the
decision
process
to
a
more
relevant
Feeling
stage
and
lower
intellectual

involvement.

Elasticity

In
the
first
case
considering
elasticity
of
demand
relative
to
price
we
found
that
demand
for

ALFA
SmartWatches
could
be
slightly
inclined
towards
being
elastic,
quite
easily
changing
as

prices
fluctuate.
The
reasons
of
ALFA
elasticity
(but
not
so
strong)
are
settled
in
some

characteristic
of
the
product
itself:
the
facts
that
there
is
a
large
competition
on
similar

products
(even
if
we
are
the
first
in
this
precise
sector)
and
that
represents
an
expense

relatively
large
related
to
an
average
income
are
factors
strongly
pushing
towards
elasticity
of

demand.
But
we
have
to
consider
that
its
uniqueness,
its
final
advantages
and
the
halo
of

quality
and
prestige
brought
to
owners
of
an
ALFA
SmartWatch
make
our
product
really

desirable,
probably
above
small
changes
in
price.

In
a
second
instance
we
consider
elasticity
of
demand
related
to
changes
in
income.
ALFA

SmartWatches
can
be
clearly
considered
as
luxury
goods,
meaning
that
if
income
increases

people
will
be
more
able
and
likely
to
buy
our
product.

Segmentation
and
positioning

Since
our
quantitative
analysis
we
started
trying
to
find
a
reference
market,
broadly
identified

in
all
male
and
female
people
between
16
and
70
years
old
in
need
of
a
technological
device

easing
their
lives.
Then
further
segmentations
were
made
by
social
status
(young
students

against
professionals
with
a
stable
job)
and
by
the
differences
in
usage
that
people
would
do

with
our
ALFA
SmartWatch
(fun,
fashion/trend,
sport,
work,
collection…).

Analysing
each
of
those
segments
we
could
start
developing
our
product
and
our
promotional

campaigns
based
on
the
characteristics
of
the
most
attractive
segments
(the
feasible
and

profitable
ones)
that
we
have
chosen
as
a
target.

Once
identified
the
attributes
relevant
to
each
selected
segment
(young
students
-‐>
price
and

customization;
workers
-‐>
technology
and
comfort)
we
try
to
match
those
important

attributes
into
an
ALFA
SmartWatch,
focusing
on
development
and
promotion
of
value
adding

features
specifically
for
each
segment.
This
process
is
named
Positioning.

Following
the
Boston
Matrix
ALFA
SmartWatch
can
be
classified
as
a
question
mark.
In
a

second
phase
of
ALFA
life
cycle
we
would
like
to
obtain
a
greater
share
on
the
market
and

then
to
be
considered
as
star
product.
But
in
the
long-‐run
will
almost
be
impossible
for
ALFA

to
reach
an
established
cash
cow
stage
(it
is
a
very
dynamic
market,
with
high
competition

and
fast
technological
changes).

5.
Conclusion

Secondary
Analysis

For
secondary
analysis
we
looked
at
both
micro
and
macro
environments
through
online

research.

From
the
micro
environment
research,
we
learned
that
there
are
similar
products

to
our
SmartWatch,
but
none
that
can
do
what
our
does
which
is
important
because
we
will

have
differentiating
factors.
This
being
said,
the
possible
competition
was
still
the
biggest

threat
we
found
when
analyzing
the
micro
environment.
Companies
like
Google,
Apple,
and

Microsoft
could
enter
this
market
fairly
easily
so
we
must
make
sure
our
product
cannot
be

duplicated
or
improved
upon
by
these
huge
corporations.

The
macro
environment
is
something
we
can’t
necessarily
control,
but
it
is
important
to
learn

about
it
and
adjust
our
plans
accordingly.
We
had
a
few
options
to
start
with
when

considering
where
to
launch
our
product,
but
after
some
research
we
decided
to
launch
it
in

Spain.
A
big
reason
is
because
we
realized
it
would
be
easiest
to
obtain
information
from

Spanish
consumers.
Based
on
the
demographic
information
we
learned
that
we
can
equally

target
males
and
females
with
our
product
with
their
being
basically
50%
of
each.
A
possible

downside
of
launching
here
in
Spain
is
that
the
economy
is
in
such
rough
shape.
It
is

potentially
bad
because
people
don’t
have
as
much
disposable
income
as
they
do
in
other

markets.
However,
we
also
noticed
that
most
people
in
Spain
tend
to
have
smart
phones,
and

there
are
many
technology
stores
and
vendors.
The
point
we
are
making
is
that
if
Spanish

consumers
could
buy
a
better
and
more
convenient
product
than
a
smartphone
(ours)
for
less

money,
they
would.
With
alternative
energy
on
the
rise
in
Spain,
we
concluded
that
if
possible

and
affordable,
to
have
our
watch
be
solar
powered
would
be
huge.
Also
that
would
be
a
big

advantage
over
other
similar
products
as
they
need
to
be
charged
nearly
every
day.
Another

thing
our
macro
environment
research
led
us
to
is
that
our
SmartWatch
should
be
at
least

somewhat
geared
to
the
sports
fans.
That
being
said,
most
everyone
in
Spain
is
a
soccer
fan,

and
many
in
our
target
market
also
play
sports
and
exercise
so
we
chose
to
include
apps
to

not
only
watch
sports
and
check
scores
and
statistics,
but
also
to
enhance
the
workouts
of

those
active
people
in
our
target
market
by
keeping
track
of
progress,
repetitions,
etc.

Primary
Analysis

Qualitative:

• Focus
Group–
We
gathered
an
incredible
amount
of
good
information
from
our
focus

group.
From
the
feedback
we
received,
we
were
able
to
conclude
that
we
were
correct

when
we
included
the
sports
and
fitness
functions
but
we
also
learned
a
few
new
things

that
are
important
to
the
younger
spectrum
of
our
target
market.
Thing
like
physical

appearance
of
the
watch,
customization,
and
social
media
were
new
functions
that
we

learned
are
very
important
to
our
users.
After
going
deeper
and
asking
questions
to
find

our
more,
we
were
able
to
conclude
that
the
big
features
that
we
did
not
already
include

were
Gps
maps,
Bluetooth
headset
make
and
receive
calls
hands-‐free,
email,
the
ability
to

share
files
via
Cloud
as
the
current
smartphone,
impermeability
for
use
outdoors
and

during
exercise,
camera
for
picture
and
video,
and
choices
between
different
watch
faces,

and
different
bands
(both
color
and
material).
The
size
and
weight
of
our
product
were

very
important
issues
for
members
of
our
focus
group,
and
we
concluded
that
it
should
be

big
enough
to
navigate
the
touch
screen
easily,
but
not
much
bigger
than
current
watches.

We
want
our
product
to
not
only
be
functional,
but
fashionable
as
well.
We
were
also
able

to
set
a
price
on
our
product
of
300
euros,
as
we
learned
here
that
most
people
would
not

buy
our
product
if
it
was
more
than
a
smart
phone,
and
300
euros
is
less
than
a
brand
new

smartphone
today
such
as
the
iPhone
5s
can
be
up
to
600
euros.
The
last
conclusion
we

made
from
our
focus
group
was
product
placement.
We
learned
that
consumers
would

most
likely
expect
to
be
able
to
buy
our
product
in
electronics
stores,
cellular
retailers,
or

online.

• Interview
–
As
our
focus
group
was
only
with
young
people,
we
decided
to
do
an

interview
with
an
adult
to
see
if
we
were
correct
in
assuming
such
a
wide
range
for
our

target
market.
Based
on
our
interview,
we
decided
to
mainly
focus
our
product
towards

younger
people,
but
also
some
towards
professionals
such
as
businessmen
and
women.

The
average
adult
though
would
probably
be
slow
to
adapt
to
a
new
technology
such
as

this,
as
we
learned
in
our
interview
that
the
interviewee
thought
it
would
be
hard
to

change
people’s
buying
habits
from
smartphone
to
smartwatch.
The
feedback
wasn’t

negative,
but
seeing
as
the
young
people
in
our
focus
group
were
much
more
excited
about

our
product,
we
concluded
that
we
should
focus
more
on
that
demographic.

Quantitative:

• Internet
Survey
&
personal
ad-‐hoc
survey
in
street/outside
shop–
Based
on
the
results
from

both
surveys,
we
have
decided
to
launch
two
separate
product
lines.
One
for
younger
people

that
care
more
about
visual
customization,
social
networks,
pictures,
and
another
for

professionals
that
care
more
about
functionality
and
simplifying
their
busy
lives.
Moreover,
we

also
concluded
that
we
definitely
need
to
have
customization
available
to
our
users.

So
we

decided
to
make
customization
part
of
our
buying
experience.In
stores,
we
will
have
pre-‐
designed
models
of
the
most
popular
choices,
but
also
we
will
give
consumers
the
ability

to
“build”
their
own
personalized
watch
from
in-‐store
stations
as
well
as
through
our

website
online.
With
this
option,
we
will
be
able
to
charge
more
money
for
a
custom

watch,
as
there
is
a
lot
of
value
in
the
ability
to
create
whatever
you
want.
In
some
cases,

we
will
even
charge
less
if
for
example
someone
wants
a
bare
minimum
touchscreen

watch
without
very
many
of
the
capabilities
such
as
camera
or
gps.

Overall
Conclusions

After
our
market
research
project,
we
have
turned
an
idea
into
a
ready-‐to-‐launch
product.
We

have
had
many
changes
along
the
way,
but
here
are
our
final
conclusions:

1. We
are
sticking
with
ALFA
SmartWatch
for
the
name
of
our
product.

2. Our
product
will
be
able
to
do
everything
a
smartphone
can
do
but
from
your
wrist.

This
includes
browse
social
media,
email,
take
pictures,
send/receive
calls
and

messages,
download
and
use
multiple
applications,
and
more.

3. We
will
launch
our
product
in
Spain

4. We
will
be
primarily
targeting
the
age
group
of
16-‐35
years
old
as
this
generation

adapts
well
to
new
technology
and
will
get
the
most
use
out
of
our
product
as
it
will

make
their
busy/active
lives
much
easier.
Secondarily
we
will
target
the
35-‐60+
year

old
professionals
who
could
make
great
use
of
our
product
in
the
workplace
especially.

5. We
will
be
unique
in
a
few
ways

a. Our
SmartWatch
will
be
able
to
function
without
Bluetooth
connection
to
a
cell

b. Customers
will
have
the
ability
to
build
their
own

watch
choosing
between

different
hardware
(shape,
size,
material,
camera,
gps,
etc.)
and
software
(wide

selection
of
applications
and
functions)

c. We
will
produce
two
separate
product
lines:
One
for
younger
people
and
another

for
professionals.

d. We
are
a
new
company
so
we
need
to
attract
as
many
clients
as
possible,

knowing
that
we
must
be
able
to
maintain
our
relationships
with
clients
in
the

future.
From
our
previous
studies
we
know
that
it
is
5
to
10
times
more

expensive
to
get
new
customers
than
keep
the
already
existing
ones.
So
we
will

try
to
develop
our
product
around
the
needs
of
the
customer.
We
can
obtain

this
through
the
development
of
a
“loyalty
membership
card”
with
our

company:
we
could
use
this
card
to
track
the
individual
customer's
purchases,

and
then
reward
loyal
customers
with
a
free
gift
or
discounts
on
accessories

(e.g.
bands)
or
apps
after
a
certain
number
of
purchases.
In
this
way
we
could

create
a
long-‐term
customer
loyalty
program
and
we
can
follow
the
preferences

of
customers
to
develop
new
strategies
for
marketing
and
promotional

purposes.

6. The
starting
price
for
our
product
will
be
300
euros
but
will
be
subject
to
change
if
the

consumer
wants
more
or
less
out
of
their
watch.
Ex:
higher
quality
camera
and
longer

battery
life
will
cost
more
and
no
camera
or
gps
capability
will
cost
less.

7. We
will
sell
our
product
in
retail
stores
(electronics
and
cellular)
as
well
as
online.

6.APPENDIX

SECONDARY
ANALYSIS
–
ALFA
SMARTWATCH

Made
by
Andrew
Wilkerson,
Federico
Cottafava,
Antonio
Conte
and
Lorenzo
Gaggini

1) We
are
going
to
launch
a
revolutionary
product
that
will
create
a
new
segment
of
the

market.
Our
new
technology
will
be
able
to
ease
people
lives
and
to
change
consumer

behaviour.
We
are
developing
a
market
research
about
a
touchscreen
watch,
endowed

with
an
internal
MicroSim
so
it
can
works
with
needing
to
be
connected
to
other
devices.
It

is
able
to
make
phone
calls,
surf
the
internet,
and
listen
to
music
and
other
features
as
the

most
powerful
existing
smartphones.
Its
name
is
ALFA
SmartWatch
(the
only
thing
you

will
need
ever).

2) The
main
needs
ALFA
is
going
to
satisfy
are
communication,
socialization
and

entertainment.
People
want
the
most
up
to
date
technology
and
they
are
always
looking

for
the
easiest,
most
convenient
means
of
satisfying
these
needs.

3) MICRO
ENVIRONMENT

a) Company:
Our
firm
focus
only
in
the
production
of
SmartWatches,
it
is
a
middle-‐large

size
business.
As
the
target
market
is
broad,
our
company
is
established
in
New

Zealand
but
production
is
spread
all
over
the
world.
Our
product
has
a
premium
price

because
of
its
production
process
and
research
that
are
very
expensive.

b) Suppliers:
ALFA
SmartWatches
are
complex
products
with
so
many
specific

components,
so
the
range
of
suppliers
is
wide
and
different.
Supply
factors
are

essential
for
the
company,
but
there
are
a
lot
of
substitutes
preventing
suppliers
to

impose
their
prices
and
sizes
of
orders.

c) Intermediaries:
Advertising,
shipping
and
cell
phones
companies
to
promote
our

product
and
increasing
sales.
Cell
phone
companies
can
sell
to
customers

SmartWatches
branded
by
their
own
logo.

d) General
Public:
People
and
groups
interested
in
the
well-‐being
of
the
company,
like

investors,
labor
unions,
different
governmental
and
environmental
agencies.
Our

company
will
be
sure
to
follow
all
laws
and
regulations
pertaining
to
these
agencies,

while
also
appealing
to
investors.

e) Competitors:
There
is
no
direct
competition
because
we
are
creating
a
new
segment
of

market,
but
there
is
potential
competition
in
the
future.There
are
high
capital

requirements,costly
research
and
legal
patents
protecting
such
innovations,
but
in

similar
markets
there
are
already
strong
firms
like
Sony,
Apple
and
Samsung
that

could
enter
in
this
market
with
few
difficulties
due
to
their
strength
and
knowledge
in

technological
fields.
There
are
other
similar
products,
in
general
smartphones,
tablets

or
watches
that
connect
through
Bluetooth
to
mobile
phones,
but
nothing
really
like

that.
No
direct
competitors
but
only
some
similar
products
well
established
in
the

market,
for
example
Iphone,
Samsung
Galaxy
and
Nokia
cell
phones.
Also
there
are
a

lot
of
innovative
watches,
but
nothing
really
like
ALFA
SmartWatch.

f) Customers:
The
company
drives
its
business
in
two
ways:
the
B2B
one
and
the
B2C.

For
example
through
the
B2B
ALFA
sells
to
retail
stores,
cell
phone
companies
and

other
intermediaries.
The
B2C
way
is
lead
through
internet
sales
without
any

intermediaries.
The
range
of
possible
ages
of
consumers
from
16
to
70
years
old
in

Spain.
Customers
are
well
organized
because
of
high
expectations,
high
quality
demand

(due
to
knowledge
by
consumers
about
similar
products/markets
as
smartphones
or

tablets)
and
competitive
price.
One
point
in
our
favour
is
that
we
are
offering

something
new.
The
differentiation
from
other
products
does
not
permit
customers
to

have
a
complete
term
of
comparison
with
other
devices.

4) How
we
differentiate
-‐
There
are
no
other
products
quite
like
ours.
There
are
other

Smartwatches,
but
they
require
a
connection
to
a
cell
phone.
Our
watch
is
meant
to

replace
the
traditional
cell
phone
as
a
more
powerful,
more
convenient
solution
to
the

communication
need.
With
an
arsenal
of
innovative
and
never-‐before-‐seen
features,
our

watch
will
completely
change
communication
and
human
interaction
as
a
whole.

5) MACRO
ENVIRONMENT

a) Demographic:
According
to
www.ine.es
our
target
market
of
ages
16-‐70
equals

33.568.216
(50.2%
male
and
49.8%
female)
people
out
of
46.704.314
total
in
Spain.

This
means
our
target
market
accounts
for
about
72%
of
the
total
population.
For

education,
Spain
spends
4.4%
of
GDP
on
education.
The
average
adult
has
spent
7.3

years
in
school,
and
Spain
is
ranked
in
the
top
20
countries
in
the
following
categories
-‐

Class
size,
enrolment
ratio,
expected
duration
for
education,

primary
teacher
salary,

reading
literacy,
scientific
literacy,
spending
per
primary
school
student,
and

universities
>
top
500.
In
2011,
220,583
(58%
female
42%
male)
students
completed

their
schooling.
Over
half
of
the
students
were
less
than
25
years
old,
and
the
most

popular
age
was
21
(roughly
15%).
The
students
graduated
with
degrees
in

Architecture,
Health,
Education
Sciences,
and
Business/administration.
Population
is

growing
in
Spain
–
the
most
recent
stat
from
2011
shows
a
0.57%
increase.
After
2012

seems
decreasing.

b) Economy:
With
Spain
being
in
an
obvious
economic
struggle,
new
businesses,
products

and
entrepreneurial
ideas
like
ours
are
part
of
the
solution
to
digging
this
country
out

of
the
hole.
The
GDP
(Gross
Domestic
Product)
at
the
end
of
2012
was
US$
1.349

trillion
and
in
August
2013
was
estimated
decreasing
about
1,6%.
Inflation
in
2013
is

2,04%
and
the
long
term
interest
rate
per
annum
of
government
bonds
until
August

2013
is
at
4,50%.For
credit
availability
Spain
is
rated
53
out
of
185
countries
for

possibility
of
getting
credit
(http://www.doingbusiness.org).
Regarding
the
economic

cycle
Spain
is
in
a
period
of
recession,
recovery
is
not
so
easy
because
of
high
public

and
private
debt
(http://www.economy.com/dismal/map/).
Public
debt
is
79%
of

GDP
and
public
deficit
is
-‐6%
(2012).
Annual
disposable
income
in
2012
is
US$

827.949,5
million.
Total
public
spending
is
42,7%
of
GDP

(http://www.theguardian.com/news/datablog/2012/oct/16/government-‐spending-‐
countries-‐gdp
).

In
2012
employment
was
at
75,8%,
and
around
58%
of
people
aged
15
to
64
(working

able
population)
have
a
paid
job,
below
the
OECD
employment
average
of
66%.
64
%

of
men
are
in
paid
work,
compared
with
53%
of
women.
Young
people,
aged
15-‐24,
are

facing
important
difficulties,
with
an
unemployment
rate
of
56%
(August
2013)
much

higher
than
the
OECD
average
of
23%.
The
average
household
net-‐adjusted(after

taxes)
disposable
income
is
22.847
USD
a
year,
decreasing.
To
be
used
by
a
person
to

buy
goods
and
services.
People
in
Spain
work
1
690
hours
a
year,
less
than
the
OECD

average
of
1
776.

c) Ecology:
Renewable
energy
in
Spain
accounts
for
10%
of
total
energy.
With
this
in

mind
we
are
integrating
solar
technology
into
our
watch
to
use
the
suns
energy
to

charge
our
SmartWatch.

Overall
23%
of
Spain's
electricity
were
generated
from
wind
and
solar
in
2010.
Spain
is

the
world's
third
biggest
producer
of
wind
power,
after
the
United
States
and
Germany,

with
an
installed
capacity
of
20,661
megawatts
(MW)
April
2011,
a
rise
of
1,609
MW

for
the
year.
More
than
11%
of
Spain's
electricity
came
from
wind
power
in
2008.
In

2005
Spain
became
the
first
country
in
Europe
to
require
the
installation
of

photovoltaic
electricity
generation
in
new
buildings.
With
the
construction
of
the
PS10,

located
near
Seville,
Spain
became
the
first
country
to
ever
have
a
commercial
solar

energy
power
tower
(http://en.wikipedia.org/wiki/Renewable_energy_in_Spain).

Cost
for
the
energy
for
industrial
consumers
is
0,0361€
per
Kwh
for
natural
gas
(under

EU
average)
and
0,1022€
per
Kwh
for
the
electricity
(above
EU
average)(May
2013).

d) Technology:
In
2010,
there
were
a
total
of
58,119
companies
in
high
tech
sectors.

Technology
is
getting
more
and
more
popular
-‐
it´s
common
to
see
kids
with
iPhones.

As
technology
is
a
major
driving
factor
in
market
progression,
there
is
clearly
a
market

for
our
product
not
only
in
Spain
but
all
over
the
world.
Internet
users
in
Spain
are

34.623.500,
74%
of
total
population,
with
an
increasing
rate
nearly
3%
compared
to

total
Internet
users
in
2012.

e) Political/legal:
Spain
is
a
democratic
country,
which
essentially
means
that
the
people

have
the
power
to
elect
officials
to
make
and
implement
laws
and
regulations.
A
big

story
in
Spain
politics
is
how
the
Basque
region
wants
to
declare
independence
from

Spain.
With
no
foreseeable
change
in
the
near
future,
we
continue
to
view
our
market

as
Spain
as
a
whole.
Spain
being
a
free,
first-‐world
country
makes
it
just
about
as
good

as
any
country
to
market
our
innovative
product
line.

f) Socio-‐Cultural:
Sports
are
a
huge
part
of
Spanish
culture.
“Futbol”
is
obviously
the

most
popular,
with
basketball,
handball,
volleyball,

and
tennis
also
getting
some

attention.
With
this
in
mind,
our
Smartwatch
will
make
it
easy
to
watch
games,
keep

track
of
scores/stats,
and
more.

For
fitness
minded
people,
there
will
also
be
workout

apps
to
keep
track
of
different
exercises,
recommend
specific
workouts,
etc.

Cinema
has
seen
a
downturn
with
the
economic
crisis,
but
remains
part
of
the
Spanish

culture.
With
our
product,
people
will
be
able
to
use
apps
to
purchase
tickets
and

download
them
to
their
wrist
eliminating
need
to
wait
in
long
lines
to
get
tickets.

NEXT
STEPS

The
next
steps
we
are
going
to
work
are
Primary
Sources.
Primary
sources
can
be

qualitative
or
quantitative.
The
first
one
can
be
group
gatherings,
deep-‐dive
interviews,

projective
techniques
and
observation;
the
secondo
ne
can
be
survey,
experiments
and

observation.

The
second
one
are
more
precise
than
the
qualitative.
The
qualitative
objective
is
to
gain
a

qualtative
understanding
of
the
underlying
reasons
and
motivaions;
the
quantativa
is
to

quantify
the
data
and
genarlize
the
results
from
the
sample
to
the
population
interest.

Bibliography

http://store.sony.com/p/Sony-‐Android-‐Watch-‐Smart-‐Phone-‐SmartWatch-‐Bondwatch-‐Pink-‐
Mint-‐Grey-‐White-‐Blue-‐Black-‐Multicolor-‐Multi-‐Color/en/p/MN2SW#specifications

http://www.newzealandnow.govt.nz/investing-‐in-‐nz/practical-‐info-‐visas/starting-‐a-‐business

http://cia-‐world-‐fact-‐book.findthedata.org

http://www.gfmag.com/gdp-‐data-‐country-‐reports/175-‐spain-‐gdp-‐country-‐
report.html#axzz2ga4ZjGKd

http://www.oecdbetterlifeindex.org/countries/spain/

http://www.energy.eu

http://www.tradingeconomics.com/spain/gdp-‐growth-‐annual

http://www.inflation.eu/inflation-‐rates/spain/historic-‐inflation/cpi-‐inflation-‐spain-‐
2013.aspx

http://www.ecb.europa.eu/stats/money/long/html/index.en.html

Youth
Unemployment:

(http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Unemployment_statistics

AND
http://www.theguardian.com/business/2013/aug/30/spain-‐youth-‐unemployment-‐
record-‐high
)

http://www.euromonitor.com/spain/country-‐factfile

http://www.theguardian.com/news/datablog/2012/oct/16/government-‐spending-‐
countries-‐gdp

QUALITATIVE
ANALYSIS
-‐
FOCUS
GROUP
&
DEPTH

INTERVIEW
–
ALFA
SMARTWATCH

FOCUS
GROUP
DESCRIPTION:

On
Monday
14
of
October
we
had
our
focus
group
meeting
to
get
primary
qualitative

information
about
the
future
market
of
our
product,
ALFA
SmartWatch.

We
wanted
to
collect
preferences
and
ideas
from
a
defined
segment
of
the
market:
5
young

people,
precisely
students
from
UC3M
between
21
and
24
years
old.
We
didn’t
make
any

distinction
based
on
sex
or
income,
grouping
together
3
girls
and
2
boys.

Our
focus
group
lasted
32
minutes,
we
obtained
the
relaxed
and
comfortable
level
of
debate

that
we
expected.
The
first
part
was
designed
to
induce
the
interviewed
people
into
curiosity

and
doubt.
Then
some
previously
decided
questions
were
asked
to
people,
giving
them

freedom
and
time
to
reply.
Finally
we
involved
interviewed
people
in
some
projective

techniques
like
words
association
test,
sentences
completion
and
pictures
response.

The
place
setting
where
FG
happened
is
the
room
18.B.1.9
belonging
to
the
library
of
building

18
inside
Getafe
campus
of
UC3M.

FOCUS
GROUP
TECHNICAL
ASPECTS:

Regarding
the
technical
aspects,
we
found
different
needs
of
the
participants
at
the
focus

group.

Our
smartwatch
must
have
the
same
functions
of
the
current
smartphones,
implemented
of

some
features
related
to
sports.

The
participants
have
focused
their
attention
on
the
fact
that
the
smartwatch
must
be

equipped
with:

-‐
Gps
maps:
to
be
able
to
locate
their
position:

-‐
Bluetooth
headset
to
respond
more
nimbly
to
calls;

-‐
Touch
screen
to
scroll
quickly
through
applications;

-‐
Camera
to
take
pictures
and
video.

It
must
also
be
equipped
with
specific
applications
for:

-‐
E-‐mail;

-‐
Access
to
social
networks
to
share
life
with
friends;

-‐
Share
files
via
Cloud
as
the
current
smartphone.

All
participants
recognized
that
this
product
would
be
particularly
suitable
for
all
sports'

lovers;
therefore
to
get
this
market
segment
should
have
new
features
and
highly
innovative

features
such
as:

-‐
To
be
impermeable
(even
at
great
depths),
to
be
used
in
water
sports;

-‐
A
series
of
app
dedicated
to
different
types
of
sports,
in
order
to
be
used
by
any
type
of

athlete.

In
addition
to
key
features
highlighted
by
the
participants,
almost
all
reported
a
technical
/

aesthetic
problem
related
to
the
size
of
the
screen:
a
small
screen
does
not
allow
to
share

images
and
videos
with
friends,
and
not
to
be
used
for
interactive
games.

The
same
participants,
however,
recognized
that
a
large
screen
size
would
be
unsightly
and

should
be
a
damage
to
the
product
design.

AESTHETIC
and
PHYSICAL
IMPROVEMENTS
SUGGESTIONS:

During
our
focus
group
people
often
highlighted
problems
and
relevant
facts
about
physical

and
aesthetic
aspects
of
ALFA
SmartWatch.

They
mostly
gave
attention
to
Size
and
Weight,
saying
that
they
were
positively
impressed
by

the
huge
range
of
possible
features,
but
at
the
same
time
they
were
worried
that
such
a

variety
of
characteristics
could
affect
negatively
size,
shape
and
weight
of
the
product,
making

our
Smartwatch
to
seem
too
little
as
a
watch
and

too
much
as
a
smartphone.

Dimensions
of
the
screen,
length
of
the
battery
and
the
presence
of
a
camera
were
identified

as
main
wants
that
on
the
other
hand
represent
factors
pushing
ALFA
towards
a
bigger
size.

People
that
purchase
a
SmartWatch
expect
a
product
above
average,
something
to
be
different

and
have
the
latest
innovations
on
their
own
wrist
without
having
a
strange
look
because
of

the
size.

People
underlined
evident
difficulties
due
to
reduced
dimensions
of
the
screen,
for
example

not
allowing
share
of
contents
from
the
SmartWatch
with
physically
surrounding
friends
or
in

general
people.
Moreover,
was
suggested
to
take
off
from
the
wrist
ALFA
and
use
it
as
a

joystick.
Also
the
idea
of
a
camera
came
out
during
the
focus
group.
It
was
suggested
to
put
it

on
the
wristband,
on
the
external
side,
making
it
easy
to
use
directly
from
the
touch
screen
of

the
SmartWatch.

Along
our
meeting
we
discovered
some
interesting
preferences
and
ideas
about
the
shape
of

cases
(the
body
of
a
watch).
Someone,
mostly
girls,
were
missing
the
rounded
traditional

shape
of
a
watch,
the
one
that
make
it
feel
leaner.
And
came
out
that
this
shape
could
be

resembled
by
some
apps
producing
the
same
rounded
effect.
For
example
the
clock
of
our

ALFA
SmartWatch
it
will
certainly
be
digital,
but
we
could
make
an
interface
with
circular

appearance,
as
real
watches.

As
expected
exist
differences
in
shape
preference
between
men
and
women.
As
reported
early

girls
were
more
inclined
towards
thin,
rounded
and
simpler
designs,
instead
boys
thought

they
would
fit
better
with
squared
and
more
complex
designs.
But,
as
highlighted
also
in

projective
techniques
(Picture
Response),
a
common
ideal
was
not
to
develop
so
many
styles,

just
one
for
Business,
one
for
Sports,
one
Casual
for
boys
and
one
for
girls.
This
was

considered
enough
by
interviewed
people,
who
gave
more
significance
to
customization

under
those
macro-‐designs.
They
were
all
favourable
on
having
a
wide
choice
of
colours
for

cases
and
wristbands,
and
of
course
they
would
value
very
much
a
wide
choice
of
optional.

Between
all
of
them
the
extra
that
gained
more
attention
was
an
enlargeable
wristband
useful

mainly
for
sporting
purposes.
People
agreed
in
unison
about
the
examples
of
running
and

swimming.
Such
a
wristband
could
be
put
higher
on
the
arm,
near
to
the
ears,
easing

connection
through
earphones
and
so
on.
This
enlargeable
watch-‐band
has
been
viewed
as
a

very
powerful
competitor
of
iPhone’s
features,
or
even
better,
because
it
could
be
simply
put

on
the
arm
without
additional
strings.

And
lastly
but
most
importantly,
we
debated
if
this
ALFA
could
easily
enter
in
interviewed-‐
people’s
worlds.
From
the
technologically
point
of
view
young
students
said
they
are
really

used
to
have
smartphones
and
tablets
in
their
hands.
But
what
strongly
interested
us
was

from
the
lifestyle
point
of
view.
They
showed
that
ALFA
SmartWatch
could
have
an
easy

integration
in
habits,
because
it
is
small,
portable
anywhere,
easy
to
access,
and
you
can
bring

everything
with
you
at
little
expenses
without
needing
pockets
anymore.

PRICE
AND
DISTRIBUTION

About
the
price
range
in
which
we
should
place
our
product,
all
participants
have
agreed
and

answered
that
they
expect
a
lower
price
than
smartphones
(around
€
300).

About
the
retailers,
the
majority
of
participants
would
expect
to
be
able
to
buy
it
in
a

electronics
store
or
in
a
store
dedicated
to
the
sale
of
the
this
particular
type
of
product.

Moreover
they
said
that
they
would
not
buy
it
for
gift
because
of
its
relatively
high
price,
but

instead
they
would
buy
it
for
themselves
to
take
advantage
of
this
innovative
technology.

HOW
WE
USED
PROJECTIVE
TECHNIQUES

There
were
a
number
of
projective
techniques
that
we
used
in
our
focus
group.
We
used
a

handout
that
contained
the
different
methods
we
saw
best
fit
to
obtain
valuable
information.

First
–
We
used
a
list
of
stimulus
words
to
get
the
participants
started.
We
didn’t
only
use

words
that
applied
to
our
product
so
the
participants
could
remain
unbiased
and
respond
to

each
word
or
phrase
as
honestly
as
possible.

Second
–
we
used
sentence
completion
to
give
participants
some
creative
freedom
to
tell
us

what
they
thought
about
our
product
and
how
we
could
improve
it.

The
last
two
methods
we
used
visual
stimuli
for
the
participants.
We
showed
them
different

examples
of
smart
watch
and
asked
them
to
identify
which
ones
were
the
most
similar
to

what
they
were
picturing
–
this
was
helpful
in
getting
feedback
as
to
whether
or
not
we
had

successfully
communicated
our
vision
for
the
product

The
final
method
was
a
sort
of
branding
exercise.
We
asked
the
participants
to
choose
from
a

variety
of
photos
(different
people
representing
different
markets)
what
best
represented
the

ALFA
SmartWatch
brand.
From
this
we
learned
that
our
product
should
be
marketed
to

mostly
young
people
but
not
necessarily
targeting
one
group
specifically
like
students
or

athletes.
This
exercise
reaffirmed
that
our
product
should
be
marketed
as
an
overall
life-‐
simplifying
device,
not
just
a
tool
for
certain
people,
but
a
tool
for
all.

IN-‐DEPTH
INTERVIEW
–
ALFA
SMARTWATCH

The
purpose
of
our
In-‐depth
interview
was
to
analyse
the
market
segment
of
professionals.

After
we
had
a
focus
group
with
5
students
we
asked
some
questions
to
a
professional,
a
48-‐
years-‐old
woman
working
as
a
receptionist
in
Fernando
de
Los
Rios
Residence-‐Hall.
The

interview
consisted
in
10
questions
about
her
lifestyle,
her
preferences
and
about
possible

usages
for
ALFA
SmartWatch.

We
introduced
the
topic
with
some
general
questions
about
habits.
She
doesn’t
use
so
much

her
watch
and
also
her
mobile
phone,
she
also
only
got
cell
phone
shared
in
two
with
her

husband.
She
doesn’t
need
to
watch
so
many
times
the
time
on
the
clock
because
she
doesn’t

want
to
be
dependent
from
the
time,
and
in
general
she
doesn’t
like
having
a
watch.

Main
usage
of
actual
smartphone:
phone
calls,
SMS,
Videos,
Photos.

Expected
features:
The
same
as
a
smartphone,
music,
internet…
But
all
easier.

Positive
aspects:
It
is
similar
to
a
smartphone,
you
have
it
always
with
you,
but
nothing

special,
mainly
the
most
useful

thing
for
her
is
that
you
cannot
forget
it
and
lose
it
anymore,

because
you
have
all
tied
at
your
wrist.

Negative
aspects:
Not
so
many,
probably
the
balance
goes
more
towards
positive
aspects

compared
to
common
smartphones,
but
in
her
opinion
the
weight
of
all
those
advantages
is

not
so
strong
to
produce
a
change
in
purchases’
preferences.
Our
interviewed
underlined
how

ALFA
could
gain
a
relevant
share
of
the
market
focusing
on
dimensions
perspective,

answering
that
she,
as
a
possible
non-‐buyer,
could
imagine
a
future
world
where

SmartWatches
could
overcome
Smartphones.

From
her
point
of
view
she
suggested
not
to
focus
on
a
broad
choice
of
customizations
for

professionals
segment
of
the
market,
f.e.
not
so
many
colours
and
extras.
Just
to
put
all
the

efforts
on
dimensions,
size
and
features
aspects,
to
allow
professionals
having
an
all-‐in-‐one

object
and
not
having
functions
spread
in
thousands
different
devices.

On
a
more
general
level
we
tried
to
discover
with
our
interviewed
person
which
segment
of

the
market
could
be
more
profitable.
And
we
came
out
with
Students,
Sportsmen
and

Managers
as
being
the
most
believed
possible
purchaser
and
users
of
an
ALFA
SmartWatch.

Finally
asked
her
to
establish
a
price
that
she
could
expect
to
face
for
our
product.
She
valued

ALFA
as
much
as
other
smartphones,
giving
same
price,
300€
or
more,
and
place
to
buy
it,
in

large
retail
stores
or
mobile
phones
shops.
Due
to
the
big
price
she
only
thought
buying
it
in

special
occasions,
like
son’s
birthday
or
as
a
Christmas
present,
but
she
would
not
buy
one
for

her
own
in
a
casual
purchase.

NEXT
STEPS
for
our
Marketing
Research

We
will
develop
an
ad-‐hoc
survey
to
collect
information
related
with
conclusions
from
our

focus
group.
Our
purpose
is
to
have
a
formalized
set
of
questions
to
obtain
data
we
need
from

respondents,
chosen
among
various
ways.

QUANTITATIVE
ANALYSIS
-‐
SURVEY
-‐
ALFA

SMARTWATCH

Market
research
by
Andrew
Wilkerson,
Federico
Cottafava,
Antonio
Conte
and

Lorenzo
Gaggini

The
previous
step
was
the
qualitative
analysis.
We
had
a
profitable
focus
group
that

underlined
main
topics
in
which
we
should
have
gone
more
in
depth.
It
came
out
that

aesthetic
and
technical
aspects
needed
to
be
classified
in
order
of
relevance
by
customers,

because
from
the
beginning
we
had
to
face
the
problem
of
dimensions,
weight
and
shape

affecting
ALFA
SmartWatch
appeal
on
people.

Then,
aside
from
product
features,
the
FG
we
discovered
some
interesting
things
about
price,

placement
and
promotion
regarding
our
ALFA
SmartWatch.

Starting
from
those
qualitative
guidelines
we
developed
the
quantitative
research
to
have

numerical,
precise
and
reliable
sources
of
information
to
carry
forward
our
marketing

research
project
about
ALFA
SmartWatch,
towards
the
implementation
of
the
production
for

the
general
market.

About
the
Survey

We
chose
an
ad-‐hoc
structured
survey
method,
made
up
by
several
static
and
prearranged

questions
designed
to
quantify
the
results
of
our
previous
focus
group
with
a
broader
number

of
respondents.

Mainly
due
to
the
technological
nature
of
the
product,
and
from
the
need
of
a
large
amount
of

answers
in
a
short
time
period,
the
way
we
carried
out
the
survey
was
split
in
2
different

types.
The
first
way
was
through
Internet
interviews,
we
built
the
questionnaire
thanks
to
the

Web
site
www.qualtrics.com
that
easily
allows
respondents
to
take
part
in
the
online

answering
process,
just
simply
clicking,
ranking
lists
or
rating
objects.

Then
with
the
aim
of
having
a
more
precise
picture
of
the
environment,
ruling
out
or
just

lowering
non-‐probabilistic-‐sampling
weakness
(as
from
judgemental
or
convenience

sampling),
we
developed
a
personal
interview
carried
out
in
a
face-‐to-‐face
way
outside
a

mobilephones
shop.

• Internet
Interview

As
said
before
the
main
part
of
the
quantitative
analysis
were
developed
by
Internet

Interviews
using
www.qualtrics.com
as
platform
to
develop
questions.

Considering
that
we
are
students
we
selected
this
kind
of
interview
because
it
is
cost
effective,

easy
to
get
respondents,
quick
to
collect
answers,
very
intuitive
for
respondents,
offers
a
wide

variety
of
questioning
methods
(through
graphics
and
ratings)
and
it
is
geographic
flexible.

The
internet
survey
consists
in
20
questions,
arranged
logically
like
that:

• 4
Personal
questions
to
get
information
about
the
respondents

• 9
Questions
about
the
product
(Aesthetic,
Technical,
about
the
package
and
about
the

brand
itself)

• 2
Questions
about
Price

• 3
Questions
about
Placement
(Where
and
When
purchase)

• 2
Questions
about
Promotion
(How
to
promote
and
effectiveness
of
a
slogan)

Before
officially
running
the
survey
on
the
Internet
we
made
a
pre-‐test
collecting
a
random

sample
and
we
proved
that
our
questionnaire
had
only
few
errors.
One
of
them
was
the

absence
of
the
possibility
for
respondents
to
add
their
own
free
opinion
at
the
end
of
some

crucial
questions
(“Others”).
Another
error
was
the
one
with
sampling,
considering
mostly

acquaintances
and/or
students,
involuntarily
ruling
out
professionals.
We
recovered
from
this

mistake
having
Personal
interviews
picking
random
people
with
a
stable
work.

Finally
we
implemented
our
final
version
of
the
survey,
having
established
a
total
number
of

respondents
of
60
people.
The
method
of
sampling
was
non-‐probabilistic
by
convenience
and

by
judgement,
respondents
were
selected
from
Facebook
friends
lists,
UC3M
and
University
of

Bologna
students
group,
relatives
and
more
groups
of
acquaintances.
The
results
of
all
60

respondents
were
collected
and
then
analysed
by
us.

Results:

The
first
section
was
to
determine
personal
information
of
the
participants.
Firstly
asking
the

age
of
the
participants.
Out
of
our
60
participants,
13%

were
19
years
old,
32%
were
20,

36%
were
between
21
and
23,
12%
were
between
24
and
26,
and
the
remaining
8%
were

between
the
ages
of
48
and
64.
Next
we
asked
for
the
gender
and
found
that
67%
were
male

and
33%
were
female.
The
last
personal
question
was
to
find
what
our
participants
do
for
a

living;
the
vast
majority
were
students,
with
only
5
professionals
participating.
This
is
about

what
we
wanted
as
we
determined
our
target
market
to
be
the
younger
generation
with
a

little
focus
on
professionals.

The
next
section
was
the
biggest
and
most
important
in
terms
of
data
received.
In
this
section

we
asked
questions
about
different
aspects
of
our
product.
In
terms
of
shape,
57%
said
they

would
prefer
a
squared
smart
watch
as
opposed
to
43%
choosing
rounded.
With
there
not

being
a
clear
favourite,
it
would
most
likely
be
advantageous
to
give
our
customers
options
for

shape
of
their
watch.
We
provided
many
options
for
colors
for
the
participants
to
choose
from

for
the
color
of
the
watch
and
they
could
choose
as
many
as
they
wanted.
We
found
black
to

be
the
clear
favourite
with
70%
choosing
black,
but
blue
white
and
grey
were
also
somewhat

popular
scoring
58%,
48%
and
50%
respectively.

Next
we
asked
about
the
preferred
material
for
the
watch
band.
Steel
and
leather
combined

for
71%
as
the
2
most
popular
answers
with
rubber
coming
in
at
23%
and
only
5%
chose

fabric.

Next
we
asked
participants
to
put
3
qualities
in
order
from
most
important
to
least

important
to
get
an
idea
of
what
is
most
important
between
battery
life,
screen
dimensions

and
camera
quality.
We
found
that
battery
life
was
the
most
important
with
screen

dimensions
coming
in
a
close
second
with
not
too
many
people
being
concerned
about
camera

quality.

15

35

8

14

3

5

42

29

30

4

20

15

0

5

10

15

20

25

30

35

40

45

red
blue
yellow
green
pink
orange
black
white
grey
purple
light

blue

brown

In
a
similar
fashion,
we
next
asked
participants
to
rank
8
of
the
most
important
potential

features
of
our
watch
on
a
scale
of
one
to
ten.
The
results
were
as
follows
(average
score):

Impermeability
9.03,
touch
screen
8.27,
GPS
maps
7.48,
apps
for
mailing
7.38,
apps
for
social

networks
6.78,
cloud
storage
6.23,
sports
apps
6.13,
Bluetooth
headset
5.87.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dimensions
of

the
screen

Battery
life

Camera
quality

(placed
on
the

watch
band)

Serie3

Serie2

Serie1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10

9

8

7

6

5

4

3

2

1

We
asked
about
the
packaging
of
the
product
and
found
that
most
people
do
not
place
too

much
importance
on
the
packaging
with
30%
saying
it
is
somewhat
important,
27%
saying

they
do
not
care
one
way
or
the
other
and
25%
saying
it
is
somewhat
unimportant.
Also
in

terms
of
packaging
73%
of
participants
expected
the
packaging
to
be
minimal
with
only
the

logo
and
model
with
the
remaining
27%
expecting
a
more
extravagant
package.

When
we
asked
about
the
same
“Alfa
SmartWatch”
32%
said
they
felt
neutral
while
16%
said

they
felt
it
was
inappropriate
and
45%
said
it
was
appropriate
which
is
encouraging
that
the

majority
was
positive
feedback.
Unfortunately
our
logo
only
scored
2.73
out
of
5
in
terms
of

appealing
to
our
participants,
which
means
we
may
want
to
consider
a
different
logo.

The
next
section
was
to
find
what
type
of
price
participants
would
expect
to
pay
for
our

product.
We
found
that
50%
would
expect
to
pay
between
200
and
250
euros,
34%
would

expect
to
pay
between
275
and
350
euros
while
the
remaining
16%

would

expect
to
pay

between
400
and
500
euros.
We
also
asked
how
much
they
are
planning
to
spend
on
their

next
smart
phone
and
the
majority
of
them
said
over
500
euros,
meaning
that
they,
in
general,

would
expect
a
smart
phone
to
cost
more
than
a
smart
watch.

Following
price,
we
asked
about
placement,
and
most
people
preferred
electronics
stores
as

opposed
to
mobile
phone
shops
or
dedicated
shops
for
the
product.
They
scored
63%,
12%,

and
25%
respectively.
Then
we
asked
who
they
would
buy
our
product
for
and
42%
said
they

would
buy
it
for
both
themselves
and
someone
else
as
a
gift
while
37%
said
they
would
buy
it

8%

25%

27%

30%

10%

Very
unimportant

Somewhat
unimportant

Neighter
important
nor

unimortant

Somewhat
important

Very
important

just
for
themselves
and
22%
said
they
would
buy
it
just
for
someone
else
as
a
gift.
Most

people
said
they
would
buy
our
product
to
use
for
fun,
work
and
sports,
which
is
good

because
these
were
the
general
intentions
of
use
for
our
product.

Also
encouraging
was
only

1
out
of
60
said
they
would
not
buy
it.
As
far
as
advertising,
most
people
said
we
should
focus

on
internet
ads,
which
makes
sense
because
most
of
our
target
market
spends
a
crazy
amount

of
time
on
the
internet.
For
our
slogan
“Everything
changes
again:
SmartWatch,
the
only
thing

you’ll
ever
need”
45%
said
it
had
a
strong
impact
on
them,
and
35%
said
it
had
neutral
impact

and
20%
said
it
had
a
weak
impact.
We
would
like
to
improve
on
the
response
to
our
slogan

so
we
may
need
to
tweak
it
a
little.
Overall
the
feedback
from
the
online
survey
was
very

helpful
for
some
small
things
we
need
to
fix
but
also
gave
us
confidence
that
we
will
have
a

successful
product
launch.

• Personal
ad-‐hoc
survey
in
street/outside
shop

We
were
aware
that
restricting
the
sample
as
we
did,
having
mainly
students,
could
mislead

results
not
to
realistic
conclusions.
We
faced
a
lack
of
professional
and
random
people.
So
we

decided
having
also
personal
ad-‐hoc
interviews
with
Spanish
professionals
chosen
from

customers
of
Orange
Mobile
Phones
shop
at
Sol,
during
Monday
morning.
The
aim
was
seizing

people
unfamiliar
with
the
internet,
adults
with
a
stable
work
and
local
people.
A
sample
of
10

individuals
were
asked
to
answer
20
questions
arranged
in
the
same
way
as
the
internet

survey.

Results:

We
interviewed
13
people
between
32
and
66
years,
with
an
average
of
47.92
years.
62%
of

respondents
were
male
and
the
remaining
38%
were
female.
They
were
all
workers,
with

different
professions.

With
regard
to
physical
characteristics,
responding
to
the
question
"what
shape
would
you

prefer
for
your
SmartWatch?",
69%
responded
square
and
the
remaining
round.

77%
chose
the
color
black
for
the
cases
and
watch
bands,
but
a
great
success
also
had
the

color
blue
(69%),
grey
(62%),
brown
(54%),
and
white
(38
%).

About
the
material
of
the
watch
band,
a
clear
majority
(69%)
prefers
leather
followed
by
a

minority
who
would
wish
rubber
(15%).

With
regards
to
the
technical
characteristics,
the
preference
of
the
majority
went
to
the
life
of

the
battery
followed
by
the
size
of
the
screen
and
the
quality
of
the
camera.

Also
the
most
important
characteristics
for
the
respondents
are
in
order
of
preference
from
1

to
10:
waterproof
(average
of
9.69);
sports
apps
(9.62),
touch
screen
(9:31);
Bluetooth

handset
(9:23);
app
for
mailing
(7,69).
And
all
the
other
features
were
given
less
importance:

apps
for
social
networks,
could
storage;
GPS
maps.

Then
we
focused

our
attention
on
package,
that
was
neither
important
nor
unimportant
by

the
majority
of
respondents,
with
69%
preferring
a
minimal
package,
no
pictures,
only
with

logo
and
model.

We
also
asked
about
the
name

"Alfa
SmartWatch",
judged
by
54%
of
respondents
with
a

neutral
impact.

Regarding
our
logo,
it
scored
an
average
of
2.92
on
a
scale
from
1
to
5.

About
the
purchase
price
for
the
majority
of
individuals
is
among
the
200
€
(23%)
and
300
€

(15%).

The
majority
of
respondents
(38%)
expect
to
find
this
product
on
mobile
phones
shops
like

Movistar,
Vodafone,
Orange
etc.

46%
of
respondents
said
they
would
buy
our
product
for
themselves
and
38%
would
buy
it

both
as
a
gift
and
for
themselves.

To
the
question
"why
would
you
buy
this
product?",
77%
responded
sport,
and
66%
said

work
and
fun.

With
regard
to
the
promotion
of
the
product
most
people
recommend
in
stores
(46%)
and

advertising
on
the
internet
(23%).

We
also
asked
each
of
them
to
evaluate
our
slogan
"everything
changes
again:
smartwatch,

the
only
thing
you'll
ever
need",
and
we
found
that
69%
of
them
considered
this
with
a
strong

impact.

The Launch of a New Product ALFA Smartwatch

The Launch of a New Product ALFA Smartwatch

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