Marketing Mix

Price: Price is the major factor that influences the consumer’s decision on the purchase of a

product or service (Armstrong, Kotler, Harker, Brennan, 2009). Presently, Loona retails for $449

which is on the cheaper side compared to its competitors. For instance, Sony’s AIBO robot is on

the market for $2500 which is an expensive choice for buyers (I.E.E.E,2018). Accordingly, there

are a variety of cost effective options such as Intellipup, which currently sells their robotic pets

on Amazon and Best Buy at a price of $100. However, their technology is nowhere near as

advanced as Loona’s. On Kickstarter, Loona is offered at a discounted price of $299 as a part of

an Early Adopters promotion, enabling users to receive an exclusive offer. Additionally, Loona

has a Kickstarter Special discount for $349. This type of incentive generates engagement and

interest early on from users which makes the product much more attractive to the target

audience. From a business perspective, an early bird discount can also allow businesses to

cover their fixed costs prior to distribution (Desmond, Salant, 2016). When Loona raised over

$1,500,000 on Kickstarter, users were given the offer of unlocking a Dinosaur outfit worth $20 as

an incentive for hitting their financial goal. This is a smart way to keep customers engaged and

build customer relationships. KEYi Technology also included a reward to be unlocked once the

project hits $3,000,000 on Kickstarter. Essentially, KEYi Technology implemented incentives as

a competitive strategy to attract new customers and create a loyal fan base.

Promotion : The promotion mix is vital to communicate the value of the product to influence

consumer’s buying behavior (Kotler, Armstrong, Harris, He, 2019). The emergence of social

media and online advertising has changed the communication strategy of businesses across the

world. Initially, the product was displayed on Kickstarter, enabling Loona to gain exposure and

interest from users on a global scale. Additionally, the company is active on social media
platforms such as Tiktok, Facebook and Instagram, uploading videos of Loona frequently . This

stimulated interest in Loona during the early stages, allowing KEYi Technology to gain better

insight on whether the product will be a failure or success based on customer’s feedback and

engagement.