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Marketing Plan Proposal

Marketing Proposal

Long Nguyen

Khoa Trinh

MGMT 2120 Principals of Marketing

DR. Jill Reid

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Marketing Plan Proposal

Introduction

Sleep is an essential aspect of our daily lives, and it plays a significant role in our overall

well-being. Despite its importance, many people struggle with getting adequate sleep due to

various factors such as stress, anxiety, and medical conditions. Up until now, the main method to

deal with this problem in Canada is to set up appointment with physicians. However, not

everyone has the time, or the money for physician regular appointments. Therefore, as a

marketing team of SleepMech Inc., we are proposing a method for easy tracking and manage

sleep time. SleepTrack device is a device as small as a watch, also attached to the wrist. Its main

functions would be to track more accurately the time when its user would go to sleep based on

the user’s muscle movement, muscle tension, and blood pulse at the wrist. This data would then

be sent back to the headquarter, analyzed using AI technology to recommend improvements for

the user’s sleep schedule. Other functions of the SleepTrack device would include sleep and

wake up notification/alarms, recommended diets, etc. In more complicated cases, the data

collected by this device can also be sent to the physicians for more detailed guidance. The goal

of this campaign is to introduce a more convenient and cheap way of managing sleep schedule

and provide physicians with more accurate data of their patients.

Company Description

SleepMech Inc. is a health technology development company that focuses on developing

and providing technologies to enhance sleep. Founded by Long Nguyen and Co-founder Khoa
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Marketing Plan Proposal

Trinh in 2023, SleepMech Inc. operates mainly in the Vancouver downtown area. Our

headquarter is located at 4171 Fraser St, Vancouver, BC V5V 4E9.

SleepMech Inc. was founded when the two founders met each other and realized they had

the same problem when they were a student: As students, they had difficulties balancing between

their work life, study, and private life. As a result, they had sleep deprive and a messed up

biological clock. Knowing their own problem, they knew they had to meet a physician. However,

making appointments with the physician is very unfeasible for them financially. Furthermore,

even if they had the money to do so, their tightly packed schedule would not allow them to make

any appointment. Realizing the need for a solution, SleepMech Inc. was founded to solve the

problem. We hope to provide affordable and time efficient devices to improve people’s sleep

quality.

Mission Statement: “Our mission is to create a future where good sleep is not a luxury.”

Value Proposition:

 Affordable Pricing

 Time Efficient

 24/7 Customer Support

 User Friendly UI/UX

Environmental Analysis

Microenvironment

The Company
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Marketing Plan Proposal

 Technological Development: Technological developers are the members in charge of the

software of the devices. These people are the core of our company.

 Technological Support: These people have brief knowledge throughout both the hardware

and the software of the devices. They serve as intermediary between the software

technology developers and the rest of the company.

 Health Specialist: A team of physicians to help the developer develop the functionality of

the product, as well as look at highly complicated cases that the device cannot resolve

automatically.

 Customer Support: These people are in charge of helping customers for what ever they

need, from guiding them through the system to ensuring customer satisfaction.

 Accountancies: In charge of the company financial status, manages the company’s

income and spendings.

 Human Resource Management: In charge of recruiting new talents to the company. We

highly welcome open minded and creative members.

Suppliers:

 Hardware Suppliers: Being a startup company, SleepMech Inc. would not be able to

have the factories to produce their own hardware for the product yet. Therefore, we

would have to outsource this part to make sure the supply of our product is consistence,

while remaining its quality, which will brings more benefits. According to a report by

Research and Markets, the e-commerce market in Canada was valued at CAD 73.4

billion in 2020, and is expected to grow at a CAGR of 7.9% from 2021 to 2028. The

growth is attributed to the increasing adoption of e-commerce platforms by small and

medium enterprises (SMEs), the growing popularity of online shopping, and the rising
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Marketing Plan Proposal

penetration of smartphones and internet services in Canada (ltd, 2022). Product design

company: Beside from the internal machinery of the device, we also have to make sure

that the device looks relatively good and easy to use. As a start up company, we have yet

to acquire the financial requirement and expertise for this field. Therefore, this part of

the product is outsourced.

 Application design firms: While our technology team hold the key to the back end

coding of the software, we also have to ensure the interface of the application user

friendly. Knowing we do not possess the expertise for this field just yet, we decided to

outsource this section as well.

Marketing Intermediaries:

 Distribution: Considering that Covid has made Ecommerce trending, we only have

one location of physical distribution for all those who really want to go to physical

store, and that is at our headquarters. Rather, we would focus on working with

Ecommerce sites such as eBay, Amazone, etc. to put our product up for sales.

According to a report by eMarketer, Canadian ecommerce sales are expected to reach

CAD 74.0 billion in 2021, representing a growth rate of 18.1% year over year. The

report also states that ecommerce sales will account for 13.1% of total retail sales in

Canada in 2021, up from 11.2% in 2020. The COVID-19 pandemic has accelerated

the growth of ecommerce in Canada, with many consumers shifting to online

shopping due to social distancing measures and store closures. (Briggs, 2021)
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Marketing Plan Proposal

 Promotion: We would pay to promote our product on social medias such as Facebook,

Instagram, Twitch, etc. Then, considering that we are a start-up company that focuses on

sleep enhancement technology, we would customize our advertisement time so that it

shows up mainly late at night to better reach our targeted audience while cutting a bit of

advertisement up time cost. Furthermore, a study by AdEspresso analyzed over 37,000

Facebook ads and found that the highest click-through rate (CTR) occurred between the

hours of 12:00 AM and 5:00 AM, with the lowest CTR occurring between 6:00 AM and

11:00 AM. This supports the idea of customizing the advertisement time to show up

mainly late at night to better reach the targeted audience. (Breen, 2022)

Figure 1 Statista data shows Facebook daily active users as of Q1 2018

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 Search Engine Optimization: It is essential to to ensure that our targeted customers can

easily find information about us so that they can find more information regarding the

product or our company. In order to achieve effective SEO, we need to rely on external

services to optimize and stay up to date with all SEO strategies such as key words or

public acceptance.

Competitors:

For now, there are no other companies similar to us in Canada. However, our competitors

may include sleep monitoring international applications and in person physicians.

 Sleep monitoring application: These applications are highly convenient and easy to use.

However, these applications can only go as far as having the user physically enter their

sleep time or guess the sleep time based on the phone’s inactivity, both of which are in

accurate when compared to our method. Furthermore, these applications generally do not

have a team of physician to ensure the quality of any method or suggestions it may give.

Therefore, it is unreliable and inefficient.

 In person physicians: This method, even though can more accurately and efficiently treat

the problem, not everyone can have the financial or the time needed for this level of

dedication in treating their illness, especially when the symptoms are mild.

Public:

It is crucial for us to create and retain an image of a highly professional company that

delivers a reliable method of noticing and reducing sleep disorders to the general and media

public. The reason for this is because without this notion, we would not be able to differentiate

our self from other sleep monitoring application on AppStore or Google Play. Therefore, our
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Marketing Plan Proposal

marketing strategies would concentrate on building the image of a professional and reliable way

to monitor and improve sleep quality. According to a Nielsen study, 21% of consumers said they

bought a new product because it was from a brand they enjoy, yet 59% of consumers prefer to

acquire new products from well-known companies. Furthermore, according to 64% of study

participants, relationships with brands are based on trust (Nielsen, 2019).

Customer:

For now, our targeted customers are students, teenagers, and young people who have just

finished their study. Those people are the ones who are most likely to suffer from sleep disorder

and do not have the money or time to go to physicians for such problem. According to a study

published in the Journal of Adolescent Health, college students are at an increased risk of

developing sleep disorders, with up to 60% reporting poor sleep quality. (Perla A Vargas). With

the help of Ecommerce channels, our targeted audience can be teenagers and young adults who

are studying high school, university/college, or have just graduated all across Canada.

Macroenvironment

Demographic

According to Statistic Canada, In 2022, there are 2.1 million people from 15 to 19 years

old, 2.5 million people from 20 to 24 years old, and 2.7 million people from 25 to 29 years old.

Added altogether, we have the size of our targeted market at roughly 7.3 million people. These

people are mostly Gen Z, with a few being Millennials.

Economic
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 Considering that our targeted market is students, both Canadian and international, it is

expected that they would not have a very strong spending power, considering all the

spendings they had to make, such as tuition, accommodation, and other living spendings

while they are most likely to be working part-time rather than full-time. According to a

report by Statistics Canada, the Consumer Price Index (CPI) increased by 3.4% in March

2021 compared to March 2020, which is the largest year-over-year increase since May

2011. The report also notes that "prices were up in every major component" including

food, shelter, and household operations.

 Covid 19 had left us with an inflated economy. With the inflated housing price, prices of

mostly everything else has significantly increased, nearly doubled its own price before

Covid. (Source needed)

Natural

With our product being distributed mainly through Ecommerce sites, the effects of

natural environments on us should be minimal, unless the disaster is so bad that it halts all

delivery and shipments.

Technology

Ecommerce had been growing rapidly, especially after Covid-19 started and people had

to quarantine. Even after quarantine, people still wish to work/study from home. Together with

that, the demand for online shopping and delivery is expected to remain unchanged. According

to a report by eMarketer, e-commerce sales in Canada are expected to reach CAD 87.8 billion in

2021, representing a growth of 17.3% over the previous year. The report also predicts that this

growth will continue in the coming years, with e-commerce sales in Canada projected to reach
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CAD 146.3 billion by 2025 (Briggs, 2021). Therefore, if provided with a method that they can

treat their illness without having to go out of their way to the physicians, we believe that people

would be willing to try it. (Add statistic people want to work from home)

Political

Staying away from political grey areas is essential for SleepMech Inc. as a health-

technology company to maintain its focus on developing and distributing its product to fulfill its

mission of providing a reliable method of detecting and reducing sleep disorders. Engaging in

political matters can not only distract the company from its goals but also potentially harm its

reputation and relationships with its stakeholders, including customers, suppliers, investors, and

employees. Furthermore, political involvement can lead to legal issues and regulatory challenges

that can impede the company's growth and innovation. By avoiding political grey areas,

SleepMech Inc. can create a stable and secure environment that enables it to invest in research

and development, improve its product quality, expand its market reach, and build trust with its

stakeholders. In addition, keeping a neutral political stance can help SleepMech Inc. navigate any

changes or challenges that may arise in the political landscape, such as shifts in regulations or

policies. By staying informed and adaptable, the company can adjust its strategies and operations

accordingly to maintain its competitive edge and continue to serve its customers' needs.

Cultural

 When it comes to students, budget is often a top priority. Many students are on a tight

budget, with limited funds available for discretionary spending. Therefore, offering

budget options is crucial in attracting student customers. This can be achieved through
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providing a range of pricing plans and packages that cater to different budgets, as well as

offering discounts and promotions.

 In addition to budget options, students are also looking for solutions that can save them

time or fit easily into their busy schedules. With the demands of school, work, and

extracurricular activities, many students are pressed for time and need solutions that can

be accessed quickly and efficiently. This could involve offering flexible scheduling

options, convenient location, or online consultation.

 Moreover, Millennials and Gen Z are known to be tech-savvy generations, having grown

up with technology being an integral part of their lives. Therefore, it is important to offer

a user-friendly and technologically advanced product or service that can meet the

expectations of this demographic. This could involve integrating the latest technology,

such as artificial intelligence or virtual reality, to enhance the user experience and provide

a competitive edge in the market. Providing a mobile app or web-based platform that is

intuitive and easy to navigate can also go a long way in attracting and retaining

Millennial and Gen Z customers.

SWOT Analysis

Strength

SleepTrack is easy to use and resembles a smartwatch, making it suitable for all ages.

According to Canadian Medical Association (2019), wearable sleep trackers like SleepTrack are
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becoming more popular owing to their ease and ability to offer objective sleep data. According to

the study, these gadgets can also aid persons with sleep issues by revealing sleep quality and

quantity.

Accuracy and dependability are SleepTrack's key benefits. A team of physicians created

the gadget to ensure its excellent quality. According to Robbins et al. (2019), using modern

sensors, the gadget tracks sleep metric accurately and ensure that there are minimization errors.

The device's algorithm analyzes this data to generate a thorough sleep report. Additionally, on

dependability, the device has helped uncover possible difficulties. Research by Cleveland Clinic

(2015) indicated that wearing a sleep tracker like SleepTrack could enhance sleep quality and

minimize insomnia symptoms. Therefore, this makes the gadget user-friendly and vital for

boosting health monitoring technology.

Portability is another SleepTrack benefit. SleepTrack may be used at home or on the

move, unlike standard sleep monitoring systems that need a sleep clinic visit. It is convenient for

regular travelers and busy folks. The gadget is cheaper than standard sleep monitoring devices,

which may cost thousands of dollars.

Weakness

The ingenious SleepTrack gadget helps people track and improve their sleep patterns. Its

technology has many benefits but cannot address complex problems requiring a doctor-patient

interaction. Angehrn et al. (2020) found that about 30% of Canadians suffer from sleep

disorders, affecting health and quality of life from moderate to severe. SleepTracks can help

people track their sleep habits and detect difficulties, but they are not a substitute for medical

treatment.
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Marketing Plan Proposal

Sleep problem patients are highly recommended to visit a doctor. According to Rosen et

al. (2019), "It is important to recognize that sleep disorders can be complex and multifactorial.”

Additionally, she adds that it may take a medical evaluation and sleep study to determine the

cause and best treatment approach. The concerned area was that complex sleep problems require

medical consultation and treatment. Therefore, SleepTrack inability to feel the diagnosis

requirement is a limitation that will require attention.

Since we operate in human health, clients must trust the SleepTrack gadget project.

PricewaterhouseCoopers (2021) states a trust is crucial in every healthcare setting. The report

states, "Consumers value trust over everything else in healthcare: they want to trust that their

healthcare providers are putting their needs first, that their information is secure, and that the

care they receive is of the highest quality." Therefore, health product and service development

and marketing require client trust, which is the case for SleepTrack.

Opportunities

Many individuals suffer from sleeplessness or have it at one point in life. In recent years,

sleep management applications have become a cheaper and more accessible way to treat sleep

issues. However, investigations have demonstrated that many apps need more scientific

validation that can give erroneous results. Only one of 35 sleep-tracking apps studied delivered

accurate results similar to a clinical sleep study, according to a Journal by Al Mahmud et al.

(2022) published in The National Library of Medicine. Some apps overestimated sleep time,

while others underestimated it. These errors can lead to misdiagnoses and hazardous therapies.
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However, treating sleep disturbances can be costly and time-consuming. A Journal of

Clinical Sleep Medicine study estimated sleep disorder diagnosis and therapy for around $2,500

(Watson, 2016). Therefore, this may dissuade low-income patients, and they may seek a cheaper,

more accurate sleep aid. Moreover, this is especially pertinent in working and learning from

home, and people may be more open to trying innovative ideas. Wearable technologies like

smartwatches or fitness trackers that track sleep may be a solution. Some of these gadgets have

been clinically verified to measure sleep patterns accurately. According to Lucintel (2020),

Canada's wearable sleep-tracking industry will grow by 6.27% by 2025. Therefore, SleepTrack

will be the best option to fill this gap.

Threats

Companies are creating more health and wellness goods as the world goes digital.

However, such ventures face enormous risks and face competition. After a while, other

companies will start making similar products and services at lower prices, making it harder to

keep market dominance. Insights10 (2022) estimates that Canada's digital health market will

expand by 18.6% from $16.8 billion in 2022 to $66.07 billion in 2030. The digital health

business is snowballing; therefore, competition will intensify.

Government action over user data and privacy issues could also threaten this endeavor.

People are increasingly concerned about privacy as they learn more about data collection and

use. According to the Office of the privacy commissioner of Canada (2021), 88% of Canadians

worry about firms using their data and may want privacy. In addition, the healthcare industry is

extensively regulated, and organizations must follow patient privacy, data security, and other

laws. Consequently, the project must follow all laws and regulations.
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Since this endeavor involves human health, product quality, and accuracy are essential;

the product must be accurate and reliable to avoid serious user effects. In a journal published on

Counter Currents.Org, (2019), the WHO estimates Medical errors to kill nearly 2.6 million

people worldwide. Therefore, many digital health solutions include telemedicine, which the

National Institutes of Health discovered could be as successful as in-person care if properly

administered. Thus, before release, the product must be evaluated and validated.

Objective and Issue

Objectives

Gain attention from the media and general public: We will push our promotions and

advertisements into every media and channels for the first month of releasing the product to gain

brand awareness.

Gain trust from the general and media public: We would offer free trial for the customers

during the first 15 days. They can try our product’s quality during the said time.

Issues

Because there were no proper quality verification method for the existing apps, people

tend to be skeptical about apps and devices that claim to improve their health.

Physicians who are working at physical offices and hospitals would not be happy because

if this product launches successfully, they would loose a part of their market share. Therefore,

they would try to discourage people from using our products, most likely by questioning our

product’s quality, reliability, and accuracy.

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Marketing Strategy Report for SleepTrack Device

Target Market:

The SleepTrack device is specifically designed to address the needs of individuals who

struggle with tracking and managing their sleep time. This target market includes both men and

women in the age range of 18 to 30 years old who suffer from insomnia, sleep apnea, or other

sleep-related disorders. This age range is significant as it covers a wide range of people who may

be experiencing difficulties with their sleep patterns, while also struggles with financial and time

management problems. People in this age range may also start to be more conscious of their

health and wellness, making them more likely to seek out a device like the SleepTrack. In

addition, the device is also intended for individuals who simply want to improve their sleep

habits and overall health and well-being, such as:

 Shift workers: People who work non-traditional hours may have difficulty sleeping due to

disruptions in their circadian rhythms. Shift workers are people who work non-traditional

hours such as night shifts, early morning shifts, or rotating shifts. Due to these irregular

working hours, their bodies may experience disruptions in their circadian rhythms, These

disruptions can cause difficulty falling or staying asleep, leading to poor sleep quality and

a range of health issues. SleepMech's products and services can help shift workers

overcome these sleep-related issues by providing personalized sleep coaching, sleep

tracking and analysis tools, SleepMech may help them establish healthy sleep habits and

improve their overall wellbeing, productivity, and job performance.

 Individuals with chronic pain: Chronic pain can make it difficult to fall asleep or stay

asleep. Individuals with chronic pain often experience difficulty falling or staying asleep

due to their pain. Chronic pain can be caused by a variety of conditions, such as cramps
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attack for females during the period, fibromyalgia, or back pain, and so on, and it can

significantly impact an individual's ability to get a good night's sleep. Pain can make it

challenging to find a comfortable sleeping position or to stay asleep, which can lead to

sleep deprivation.

 Individuals who consume caffeine: Consuming caffeine can disrupt sleep and contribute

to insomnia. Caffeine can disrupt sleep and contribute to insomnia, making it difficult for

individuals to fall asleep or stay asleep. Caffeine is a stimulant that can keep individuals

awake and alert, and its effects can last for several hours after consumption. By using our

product SleepMech may help them establish healthy sleep habits and improve their

overall wellbeing, productivity, and job performance.

Key Strategic Focus:

 Product Differentiation: SleepTrack device will differentiate itself from competitors by

offering a unique value proposition that combines ease of use, affordability, and

accuracy. Unlike having to go out of your way to make physician appointments,

SleepTrack a is small, easy to wear, and portable device, making it convenient and

comfortable to use throughout the night. On the other hand, when comparing with the

phone applications, SleepTrack uses advanced sensors to accurately track and analyze

sleep data, providing users with personalized insights that can help them improve their

sleep quality over time. Furthermore, SleepTrack has a team of professional physician to

further assist the user and ensure the device’s accuracy and reliability.

 Targeted Advertising: The marketing strategy for SleepTrack device will include targeted

advertising campaigns that reach the intended audience through 3 main channels. Those

channels include social media advertising, display advertising, and search engine
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marketing. The advertising campaign will be optimized for our specific target audience:

teenagers and young adults from 18 to 30 years old. To better target our audience, our

advertisements will be mostly shown at late night. This will ensure that SleepTrack

device is seen by individuals who are most likely to be interested in its benefits.

 Strong Customer Support: Since we are the first to provide this type of service, we must

focus on customer support to ensure customer satisfaction and build trust among our

targeted audience. This will include a comprehensive FAQ section on the company's

website, as well as a dedicated customer support team that can address any questions or

concerns that customers may have. Additionally, SleepTrack device will come with a

user manual and instructional videos to help users get the most out of the device.

Overall, the marketing strategy for SleepTrack device will be designed to increase brand

awareness and drive sales through product differentiation, targeted advertising, and strong

customer support. By implementing these strategies, SleepTrack device will be positioned as a

trusted and reliable solution for people who are looking to improve their sleep quality while

having a tight budget or schedule.

Implementation:

Product

SleepTrack has many features that can improve sleep quality, including individualized

sleep tracking. The vibrating alarm offered by the SleepTrack device has been found to wake the
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user and not disturb others. According to Weiss et al. (2020), a mild wake-up feature can help

morning sleepers; the study indicated that loud alarms stress and impair mood and cognition.

Additionally, a study by Ko et al. (2015) found that non-vibrating alarms are less disturbing to

the user’s sleep and effective in reducing sleep for bed partners. A progressive wake-up feature,

like SleepTrack's, promotes a more relaxed and cheerful mindset upon waking.

Moreover, the relaxation mode feature of the SleepTrack device will help users unwind

before bed. According to a study published in the National Library of Medicine (2017),

relaxation techniques such as deep breathing and muscle relaxation improved sleep quality and

reduced the time it takes to fall asleep. The SleepTrack device's relaxation mode incorporates

these techniques to help users calm their minds and bodies before bed.

SleepTrack device offers a mobile app that enhances the experience by integrating with

the device to provide users with personalized insights and recommendations. According to the

National Library of Medicine (2017), mobile apps can improve sleep hygiene and quality. The

study found that using a sleep-tracking app significantly improved sleep quality and reduced

insomnia symptoms in participants. Therefore, purchasing the device will enable one to have a

quality experience as per the need.

Place

To make its products easily accessible to the target population, SleepTrack will offer

them primarily online. A study by Bush (2022) found that 55% of Canadians have made online

purchases at some point. Therefore, SleepTrack ensuring that its products are sold through its
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website and other e-commerce websites that are well known will increase the reach and

accessibility of the products to the customers.

Regarding physical locations, SleepTrack only has one location that physically sells the

product: the company's headquarters. The company will adopt the decision since it is starting up

and the budget is fixed; therefore, owning and maintaining physical stores will be costly.

Additionally, maintaining an online presence will enable the company to be known quickly,

resulting in its fast growth. According to a study by Tarry (2021), brick-and-mortar stores in

Canada are expected to decrease by 9% after COVID-19. Therefore, SleepTrack, as an online-

based company, is optional to have a physical location.

However, SleepTrack will implement a comprehensive customer support system to

ensure a positive customer experience. The system will use online purchase guidance, product

tutorials, and a dedicated customer service team to address customer concerns. The

implementation will increase customer satisfaction and enable the company to build trust.

According to a survey by HubSpot, 93% of customers are more likely to make repeat purchases

from a company that offers excellent customer service (Swetha Amaresan, 2019). Therefore, this

will ensure that Sleep Track device customers will be informed about the product and have a

positive experience with the company, leading to a repeat purchase.

Promotions

Sleep Track device will promote its promotion strategy by advertising through social

media platforms: Facebook, Twitter, and Instagram. The tactic will enable the company to

increase awareness and drive sales. The strategy will involve using Facebook ads and posting
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descriptions of the devices online. A report by Dencheva (2023) found that social media

advertising spending in the US is expected to reach $5.45 billion in 2026, indicating the growing

importance of social media advertising in modern marketing strategies. Therefore, the Sleep

Track device adopting the strategy will enable the company to reach many customers who use

social media platforms and convert the traffic into customers.

The company will also use email marketing to target and retarget potential customers

who will show interest in sleep-related products or have previously purchased from the company.

The company content of the email will be mobile-optimized to ensure that it can be used on

every device and whenever the customers are (Markettailor, 2023). The method will be effective

because it is easy to measure, builds loyalty, is inexpensive, and can get a message across

instantly. Therefore, Sleep Track adopting it will improve the means of reaching customers

quickly and increase traffic.

Search engine optimization (SEO) will optimize the company website's content with

relevant keywords that will ensure that a company's website and products appear in relevant

search results. A study by BrightEdge (2019) found that organic search is responsible for 53% of

website traffic, indicating the crucial role of SEO in driving website traffic and increasing brand

visibility. Adopting it will ensure that customers will likely find the website through keyword

phrases they type into their phones.

The company will implement a referral program to encourage satisfied customers to refer

others. The company will offer discounts to customers and give them a promotion code

whenever they purchase for the second time. Moreover, this will improve message passing from

one customer to a friend, improving traffic. A study by O'Neill (2022) found that 13% of

consumers’ sales are from trust referrals of people they know, highlighting the importance of
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word-of-mouth marketing in driving sales. By implementing a referral program that offers

discounts or other incentives for successful referrals, Sleep Track Company will leverage the

power of its existing customer base to acquire new customers.

Moreover, the company will use influence marketing to promote its products. Celebrities

and bloggers will be incorporated into the company's advertisements plan, and bloggers will

write online blogs about the company. The reason to adopt the strategy is that it has emerged as a

popular marketing tactic, particularly in the sleep-related products industry. A study by Linqia

(2021) found that 86% of marketers have used influencer marketing, with 94% of those using it

finding it effective. Therefore, by engaging with influencers and sleep bloggers to promote the

SleepTrack device to their followers, the company will effectively reach a larger audience and

increase brand awareness.

In addition, the company will be participating in relevant sleep-related events and

conferences. The events will allow the company to display its products and connect with

potential customers. Therefore, by attending conferences such as the Canadian Sleep Society

Show, the company will engage with a targeted audience and promote the SleepTrack device to

those interested in sleep-related products.

Pricing

Sleep Track Device will use a subscription-based pricing strategy, with its major aim

being to balance affordability and profitability. The strategy will ensure that the SleepTrack

device Company can maintain its position in the competitive market. According to Lucintel's

(2020) study, the Canadian wearables market is expected to grow 6.27% by 2025, indicating a
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significant growth potential for sleep-tracking devices. Therefore, the SleepTrack device

adopting the strategy will be crucial in ensuring its success in a highly competitive market. The

subscription-based model will give the company and consumers an advantage by outshining the

traditional pay-per-use model. A survey conducted by Zuora found that 71% of consumers prefer

subscription-based services to traditional ownership models (sdowling.zteam@zuora.com, 2020).

Moreover, Sleep Track Device Company using the strategy will ensure that it maintains the

longtime value of the customers.

Additionally, the SleepTrack device will offer customers multiple subscription plans to

ensure affordability. The plan will enable the Sleep Track device to retain customers and

enhance trust. For instance, the student plan will offer a lower subscription fee and a shorter

commitment period, while the family plan will offer discounts for multiple devices and longer

commitment periods. In line with this, a study conducted by Harvard Business Review found that

offering multiple subscription plans could increase customer retention rates by up to 25% (Gallo,

2014). Nonetheless, the Sleep Track device will be purchased at low prices via a partnership e-

commerce channel to cater to customers who prefer to own their outright device rather than

subscribe. Evidence to the plan, a study conducted by eMarketer, found that 40% of wearable

users prefer to purchase their devices outright rather than through a subscription-based model.

Summary & Recommendation:

Benefit:
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The marketing strategy for SleepTrack device offers numerous benefits to the target

market, including a personalized approach to sleep tracking and management, improved sleep

quality, and overall health and well-being. The promotion strategy highlights these benefits,

making the device an attractive solution for individuals looking to improve their sleep habits at

an affordable price.

Risk:

The primary risk associated with the marketing strategy is competition from other sleep-

tracking devices emerging during or after our launch. To mitigate this risk, the SleepTrack

device will differentiate from competitors by providing personalized recommendations based on

each individual's unique sleep patterns. Together with our team of professional physicians, our

product will be able to further improve the accuracy of the results given to the user.

Overall Recommendation:

Based on the potential benefits and risks associated with the marketing strategy, it is

recommended that the SleepTrack device move forward with the proposed plan. To optimize

success, the SleepTrack team should focus on maintaining a strong online presence, nurturing

customer relationships, and continuously improving the product's features and functionality

based on customer feedback.

Considering the risk of being copied by our competitors, development of new products

that has improved quality or different target market must be started.

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Marketing Plan Proposal

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