This is a case study undertaken as a part of consumer behaviour course. The topic of the case study is Apple Watch (A) - The Launch.

1. Apple Watch(A) -The launch
Apple Watch reset consumer
preference
SUBMITTED BY
GROUP 3

2. Apple Products
Timeline of Apple`s popularization of its products
• Macintosh Computer
• iPod
• iPhone
• iPad
• iTunes
• iOS
• Home Pod
• 2014, September 9: Apple announce its entry into smart watches

3. Snapshot of The Smartwatch Industry
• Smartwatch gained functionality and versatility by connection to a
mobile phone
• Category of wearable technology
• Smart watch Industry benefitted from market acceptance of wrist-
based-fitness and activity tracking products like Fitbit and Jawbone.
• Benefitted from expansion of functionality in sports watches like
Casio and location tracking produced by firms like Garmin.
• Startup like Pebble led the industry , dominated by MNC`s like
Samsung, LG, Motorola etc.

4. Competitors
• Samsung held 42% market share with 2.15 million units sold by early
2015 - Top Smart watch makers world
• Pebble – 2nd largest – 16% market share (800,000)
• Sony – 12% market share (610,000)
• Motorola – 11% market share (550,000)
• LG – 5% market share (270,000)
• Other players – 14% (720,000)

5. Challenges
• Creating a battery power of more than 8 hours (Pebble only had to be
charged every 5 to 7 days)
• People wearing traditional watches were certain to find it as a burden
• Privacy issues – Personal Information would flow through devices to
the cloud
• Opportunity in Health care – diabetics testing their blood sugar –
increase efficiency and health outcomes.
• Consumers interest in the value provided by platform versatility and
diverse capabilities

6. Buying Behavior
• External
• Social factors- peer pressure (Brand Image )
• Purchasing Power-
higher disposal income
increased consumption of
premium products
• Culture- wearable technology (Smaller Gadgets)
• Internal
• Expectation – high value premium products = higher quality
• Personal factors – way of life, ease of use, non-price sensitive customers
• Perception - sensation / feel of using, apple tore is a customer experience
• Differential threshold – iOS, better quality and higher security.

7. VALUE ADDITION TO APPLE CUSTOMERS
• Not required to pull out the phone for notification.
• Social etiquette.
• Travel help – boarding pass.
• Apple Pay
• Fitness and navigation
• Standalone wireless ( only offered by Samsung)
• iOS– better application
• Not always on display – saves battery ( not offered by other )
• Key replacement – room and car keys
• Remote control
VALUE ADDITION TO SMART WATCH INDUSTRY

8. Thank you