MANAGEMT7104 | Marketing Management | Case study on Kidsmart Vocal Smoke Detector | University of Adelaide
The new technology implemented by Kid Smart includes a VSD as a part of the fire safety emergency protocol. The pricing for the same is evaluated in this paper.
Objective: To understand pricing
Findings and Observations
The VSD or a Vocal Smoke Detector launched by Kid Smart Corporation has found out following several researches that children are more likely to wake up when they hear the voice of a family member. This, in turn, makes it easier for the child to wake up during an emergency and escape. Furthermore, the VSD is equipped with a ‘fire drill’ which enables practicing the emergency procedures.
Investments and costing
Kid Smart founders have input an investment of $80,000 for the advancement in technology with an additional input of $50,000 in Kid Smart VSD commercialization. With respect to the product launch, the company further seeks an additional $7, 50,000 in start-up capital. Turning heads of parents with premium specifications of multiple features such as photoelectric sensors, dual alarm system, extended battery life along with the inclusion of primary feature advanced with voice personalization; VSDs are expected to be listed around $75.95 retail price and $40.00 per unit for retailers (CostHelper 2020).
Startup and growth strategies
The prime focus of this company is to influence the middle and upper-middle class parents bearing children of the age group 2-14 years. With a clear growth of $165 million yearly, Kid Smart’s market potential is at $1.6 billion. The sole purpose of Kid Smart will be to influence the child’s safety and win the confidence of the parents with their prime focus on kid safety. Aiming to distribute the product among each neighboring commercial and hardware stores, Kid Smart can suppress their separate funding to minimize upfront capital cost. Moreover, the company does not intend to introduce any smoke detectors with cut-down prices and features, to hamper the successful marketing of VSDs. Additionally, the company further plans to include the specifications in the packaging of the product to draw attention of the buyers.
Consumer market sector
With previous studies on the marketed products, it is evident that a family overspends its expense on the requirements of the children. The availability of products concerning the safe lives of kids are able to draw attention of the parents willing to spend a minimum of $75 for their kid’s security and well-being. As recently been recognized as a kid safety product over an online survey, the reputation of Kid Smart seems promising in the future.
In order to expand Kid Smart VSDs sales, the company should focus on the basic marketing skills. Inclusion of endorsement of products can be made into use for recognition of products along with intention to introduce their inventions with other countries to achieve profits globally (Jeannet & Hennessey, 2005). Maintaining the quality of products as promised and updating them can prove beneficial in cutting them a firm position in the consumer market sector. Moreover, with quality service and hassle-free delivery can promise their marketing security and value.
CostHelper (2020). How Much Does a Smoke Detector Cost? - CostHelper.com. Retrieved 25 February 2020, from https://home.costhelper.com/smoke-alarm.html
Jeannet, J. P., & Hennessey, H. D. (2005). Global marketing strategies. Dreamtech Press.
Smith, G. A., Chounthirath, T., & Splaingard, M. Effectiveness of a Voice Smoke Alarm Using the Child's Name for Sleeping Children: A Randomized Trial.
Smith, G. A., Splaingard, M., Hayes, J. R., & Xiang, H. (2006). Comparison of a personalized parent voice smoke alarm with a conventional residential tone smoke alarm for awakening children. Pediatrics, 118(4), 1623-1632.