Target Market and Strategies for Wesmart Heated Jackets

JACK-HEAT Abhishek Khanna 100291896 Pritika Sharma 100388939 Amandeep Singh 100374466 Muskan 100388492 Pratham Sharma 100392459 Langara College, Marketing Management Department Introduction to Marketing MARK 1115-M01 Submitted to: Henry Chow Submission Date: July 20,2022

Table of Content Target Market 2-3 Product Strategy 4 Pricing Strategy 5 Distribution Strategy 6 Appendix 7 Endnotes 8 Page | 1

TARGET SEGMENT Segmentation First for geographic segmentation, Wesmart included targeting the cold regions as well as regions where there is excess rainfall so that sales will be increased, and popularity remains on the top. Second, for demographic segmentation, the company considered targeting old people age group 40 and above who are doing 9 to 5 jobs as well as who is old and aged enough and whom there is a need to protect themselves from extreme cold as well as extreme rainy weather along with comfort and quality material. Third, for psychographics, the company consider targeting people with fashion and stylish lifestyle who likes to carry sassy as well as cool outfits and set fashion trends which are teenage groups. Lastly, for behavior, the company considered targeting people who try to be sought multiple benefits from one product with reasonable price and superior quality. Personas A typical customer of Wesmart is George. He is 20 years old and currently studying at university and enrolled in a fashion designing course in Vancouver Downtown. He enjoys his youth and loves to wear fashionable and cool clothes but also wants to protect himself from rainy weather. Another typical customer of Wesmart is Marks. He is 35 years old man who owns a small and sweet family consisting of his wife and two daughters. He is doing a 9 to 5 job in an international company, and he believes in comfort the most and in getting multiple benefits from one product. Lastly, Leon is the main customer of Wesmart. He is 45 years old, a businessman who presents different business ideas to clients daily and conducts a lot of business presentations. He believes in superior quality and gentlemanly looks. He is a loyal customer and attends business meetings in distinct locations all over Canada, so Wesmart is his best choice to protect himself from extreme climate conditions and look nice. Market Segment A total of 1,382,906 males in British Columbia fall between 25-64 years old which is around 25% of the total population 1 . Wesmart targeted this group as male and female professionals, army leaders who want to protect themselves from extreme freezing weather. In addition, they have more earnings and can easily afford to buy our product. Here is a line chart showing an increase: (See Appendix Figure 1.0) Page | 2

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Challenges Our project wants to target Generation Y based on their needs as they are a brand- conscious generation. They want trendy and modern looks. We are targeting to bring Casual; Formal; Trendy looks to it. It will give more options to professionals as they will not be limited rather than their formal look. For casual usage customers, our company targets that they have the capacity to purchase it by lowering prices for it as well as it would be a good option to add the latest look to their lifestyle. The most important is to target Generation Y and for this, we will target to add trendy styles, and colors and would set it as fashion style. Market Potential Progressing at a stupendous CAGR of 17.6%, the global heated jacket market is expected to reach a valuation of US$ 520 Mn by the end of 2027, and it is up from US$ 231.3 Mn at present. Heated jackets are accounting for around 0.5% share of the global winter wear market, with the market expanding at a high CAGR of 16% from 2017 to 2021 1 . Table 1.1 1 Heated jacket market size (2022) US$ 231.3 Mn Market Revenue Forecast (2027) US$ 520 Mn Global Market Growth Rate (2022-2027) 17.6% CAGR Market share of enormous size heated jackets 29.7% Page | 3

PRODUCT STRATEGY Wesmart is a unique and authentic tech wearable brand that offers in various product mix. It not only focuses provide jacket, but it also presents several ranges of vests. The product is made up of Graphene-infused, which is an excellent source of heat, works on lithium-ion battery for safety, and uses carbon fiber heating elements which makes the jacket lightweight, and breathable. The product’s exclusive feature is that the jacket can keep warm from most extreme cold even at -384 ℉ . Wesmart combines fashion and technology to make the most futuristic wearable clothing. The company’s product offers different varieties of sizes to satisfy customers’ demands and fulfill their expectations. One of the major benefits of the heated jacket over its competitors is that this jacket can be worn in the summertime to keep yourself cool. The heating element doesn’t only generate heat during winter but also produces cool to lower the temperature of the body during the heat wave time. It can be even worn during the monsoon season. The jacket is windproof as well as waterproof and can achieve good breathability. The jacket is designed for all-season around 4 . Another competitive advantage is that the heated jacket is lower expensive and provides additional benefits over its competitors at a very reasonable price. From the positioning map, Gamma ranks highest in terms of value and the quality is almost similar in comparison to Wesmart. Gamma sells its jackets for around $500 5 . Ravean and Mercury have in terms of their worth and in terms of quality, mercury provides an additional preheating system than Ravean 6 . However, they are both positioned at a similar location. (See Appendix Figure 2.0) The age group of 15-64 is the primary target market for the heated jacket because these are working class including students 7 . Both males and females are also the target market because both are working class, and sports people, and age distribution is almost similar between these age groups. This includes people who go to work by bus or by walk and people who like to play sports during winter like hockey. Vancouver will be the geographical target location for the product because since the last 7 years, the temperature is absolutely around -10 degree Celsius and last year it was -16 degree Celsius. https://www.currentresults.com/Yearly-Weather/Canada/BC/Vancouver/extreme-annual- vancouver-low-temperature.php Page | 4

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PRICE STRATEGY Our company uses the market penetration strategy to bring our product into the Canadian market. The main objective of our pricing strategy is to draw the attention of as many customers in the market as possible. The key factors used while deciding the price are marker condition, consumer demand and the COGS (cost of goods sold). We have chosen this strategy because by setting a low price to earn the initial sales, we can have loyal customers again by increasing the costs as done by other companies like smartphones and the internet. Our company would be at the top of the competition with unique features like having four heat zones beating the Mercury heated jacket 8 , which has only five heat zones and would have a more rigid outer shell than others. Our jacket would be worth it for the people working in the extreme freezing conditions. These jackets have a better battery runtime of almost 10 hours more than the Raven and Gamma 9 . They are capable of surviving at -40 degrees Celsius due to their features. These things also play a significant part in deciding the product’s price. We will also maintain a better and worth price of our products by taking care of the other factors. The prices of different companies’ jackets are too high due to the increasing popularity of jackets in adventurous sports like hiking, trekking, and mountaineering. The unique accessories combination in the kits would also be considered. Because of the factors mentioned above and the company brand value, the price of the product decided by the company is $195 per unit which can be easily afforded by anyone. This can be the best price because other bigger companies like Ravean, Gamma and Mercury sell their products between $250 to $300 dollars having fewer features. Our Heated jackets are available on e-commerce platforms like Amazon, eBay, and Home Depot. Page | 6

DISTRIBUTION STRATEGY Jackheat will focus on a direct marketing channel as its distribution strategy, which involves direct contact with the final customers. It will reduce the prohibitive costs like transportation costs, taxes, retailer, or middleman costs, which will allow the company to earn more revenue as the product cost will be comparatively lower because of direct dealing with the customers, which will attract more customers and will result in the high- profit margin. Direct marketing channels will build a great customer relationship leading to more loyal customers, increasing the brand value and brand loyalty. Jackheat will be located at Marine Gateway shopping mall 495 SW Marine Drive #44, Vancouver, B.C. V5X0C7. This location is busy and is surrounded by other businesses, food courts, cineplex, and residential locality, and has great transport service nearby. Moreover, we will make a display model which will wear the jacket and show the features to convince and attract the customer to buy the product. Jackheat will create an online website for our company to sell our product to the customers because at present customers are preferring online purchases through the company’s websites or through online shopping sites like Amazon, eBay etc 10 . This will make it more accessible for our customers to order online and get it delivered in 1-2 days locally and 4-5 days within B.C. Additionally, social media advertising is the most effective and proven source of promotion in the current market 11 . So, we will take advantage of these sources to spread our product and our website to potential customers through Facebook, Instagram, Snapchat, etcetera. Page | 7

APPENDIX Figure 1.0 Figure 2.0 Page | 8

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ENDNOTES 1. Government of Canada, Statistics Canada. Population estimates on July 1st, by age and sex. Government of Canada, Statistics Canada, September 29, 2021. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000501. 2. “Heated Jacket Market.” Future Market Insights, 2022. https://www.futuremarketinsights.com/reports/heated-jacket-market. 3. “Heated Jacket Market Size, Share, Trends: Industry Report, 2019-2025.” Heated Jacket Market Size, Share, Trends | Industry Report, 2019-2025, n.d. https://www.grandviewresearch.com/industry-analysis/heated-jacket-market 4. “Wesmart 2.0 All-Weather Mecha Smart Heated Jacket.” n.d. Clottech. Accessed July 15, 2022. https://clottech.com/collections/heating-jacket/products/new- product-pre-sale-wesmart-all-weather-mecha-smart-jacket. 5. “Gamma - Graphene Heated Jacket (Men).” n.d. Wear Graphene. Accessed July 15, 2022. https://weargraphene.com/products/gamma-jacket-men. 6. “Wesmart, World’s First 3s Heat up Graphene Jacket.” n.d. Indiegogo. Accessed July 15, 2022. https://www.indiegogo.com/projects/wesmart-world-s-first-3s-heat- up-graphene-jacket#/. 7. Organization for Economic Co-operation and Development. 1976. “Working Age Population: Aged 15-64: All Persons for Canada.” FRED, Federal Reserve Bank of St. Louis. January 1, 1976. https://fred.stlouisfed.org/series/LFWA64TTCAM647S#0. Page | 9

8. Boll, Chris. “Milwaukee Toughshell Heated Jacket Review.” Pro Tool Reviews, March 12, 2020. https://www.protoolreviews.com/tools/safety-workwear/milwaukee-toughshell- heated-jacket-review/42668/. 9. Insights, ByFuture Market. “Heated Jacket Market Pricing Strategy, Latest News, Top Company Analysis, Research Report Analysis and Forecast 2029.” Digital Journal, May 30, 2022. https://www.digitaljournal.com/pr/heated-jacket-market- pricing-strategy-latest-news-top-company-analysis-research-report-analysis-and- forecast-2029 . 10. “Top 10 Reasons Why People Prefer to Shop Online.” 2021. Finical. December 20, 2021. https://finicalholdings.com/blog/top-10-reasons-why-people-prefer-to- shop-online/ . 11. Henderson, Gary. 2020. “The Importance of Social Media Marketing.” Www.digitalmarketing.org. July 2, 2020. https://www.digitalmarketing.org/blog/the-importance-of-social-media-marketing. Page | 10

Marketing Plan Part II

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