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To achieve its aim of increasing its market share, Tended Ltd could produce a new smartwatch or launch a marketing campaign for 'Tended Protect' - Edexcel - A-Level Business - Question 1 - 2022 - Paper 2
Question 1
To achieve its aim of increasing its market share, Tended Ltd could produce a new smartwatch or launch a marketing campaign for 'Tended Protect'. Evaluate these two... show full transcript
Worked Solution & Example Answer:To achieve its aim of increasing its market share, Tended Ltd could produce a new smartwatch or launch a marketing campaign for 'Tended Protect' - Edexcel - A-Level Business - Question 1 - 2022 - Paper 2
Step 1
Developing a new smartwatch
Answer
Tended Ltd should consider developing a new smartwatch as part of their strategy. The wearable technology market is predicted to generate $34 billion in 2020, and smartwatches are expected to take up approximately 50% of this market. As such, developing a new smartwatch could allow Tended Ltd to gain a competitive edge, especially if they innovate features that enhance user safety, given the unique selling proposition of their existing product, Tended Protect. However, entering a market with established competitors like Apple and Samsung may pose significant challenges.
Step 2
For a marketing campaign
Answer
Launching a marketing campaign for Tended Protect could be classified as market penetration, aiming to increase market share within the existing user base. Tended Protect has already found some traction in the market due to its unique features focusing on safety. This approach could allow Tended Ltd to enhance brand recognition and market presence more rapidly, given that they are already established in this niche market. Increased marketing could lead to higher sales without the risks associated with product development.
Step 3
Recommendation
Answer
Given the current landscape, Tended Ltd should opt for the marketing campaign to promote Tended Protect. This strategy leverages their established presence in a niche market and focuses on incrementally increasing market share rather than attempting to compete head-to-head with major technology giants by developing a new smartwatch. By maximizing the potential of Tended Protect, Tended Ltd can effectively meet its objectives of growing their market share.