Athos Product Launch
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Transcript of Athos Product Launch
PHASE 3ByRay Ablao, Paul Gabriel, Phillip Lam, Elliot Mar, and Ariana Wong
Executive Summary:Athos is in a thriving industry where the explosion of the Internet of Things converges with smart fitness wearables. In this space, Athos has distinguished themselves well ahead of competitors by providing the most innovative and advanced smart wearable garment that monitors a users biometric signals and then converts them into powerful insights through a mobile app. This launch plan outlines the key objectives for the product. Furthermore, the plan defines in detail the plans and strategies for pricing, communication, channel, operation, training, and other vital components.
Value Proposition:Workout like you never have before! Improve your performance in real-time. The most comprehensive smart garment on the market today Easy data tracking and reporting with mobile app Tracks and reports on a variety of exercise metrics
Goals and Measures:Our goal for the Athos ACTIVE product launch is to increase our user base and cater to a new and broader market segment by simplifying our data acquisition and increasing financial accessibility to our product. This will add to our existing core product/product line by allowing users to have similar functionality versus our core product, but at an even lower price point.
Below we have provided a list of metrics that we believe will illustrate the value of the Athos ACTIVE when compared to the previous core product:
Product Development: heart rate accuracy, EMG baseline, and real time data acquisition/transfer, all compared to core product baseline measurements. Product Success: Unit Sales, Number of App installs, Number of Active Users, User Retention @ by month.
Pre-Launch PlansWe used the Strategic Launch Decision rubric to help outline our strategy. We plan to permanently stay in this industry with an aggressive entry. As we are releasing an incremental product into a space that we are already operating in, our source of sales will be primary demand. We are focusing on market penetration in this growing market and attracting first-time customers with our innovative product. As Athos is regarded as the technology leader in the active wearable space, we will leverage our competitive advantage and continue to differentiate ourselves from the competition. With Athos Active, we are aiming at our competitors: Hexoskin and UA Health Box. The Athos Active is not a replacement, but an extra product to be added to the existing product line. Utilizing the Launch Tactics Pattern Defensive Addition, Athos objective is to increase penetration in existing markets using a smaller assortment of products and penetration pricing that is competitive with other rivals.
Launch Management SystemUtilizing the Launch Management System, we will outline the approach in identifying potential issues and the methodologies to assess the situation and develop the contingency plans to mitigate the issue, while measuring and tracking the results. The Launch Management Plan (Exhibit 1) will encompass all scenarios and potential problems that will arise during and after the launch. By compiling these plans of actions across multiple departmental functions, we will be prepared to address any issues that will arise. A daily cross-functional meeting will be held to facilitate a forum for issue escalation and triage. These issues then will be pulled into respective functional teams sprint or to-do list. The weekly functional meetings will track the progress of the resolution of the issue. It is critical that our teams have open communication channels for issues that might require intervention from multiple functional teams.In addition to our concept testing survey, conjoint analysis survey, and direct response survey, Athos will be leveraging our mobile app to conduct in-app surveys. All of our users will be using either the Android or iOS app alongside the Athos Active garment. From this channel, we can reach out to users regarding Category Usage, Advertising Awareness, and Purchase questions. The results from these surveys will provide invaluable insight into the customers perception of our product. Post product launch, Athos will hold a Launch Review. We will review the launch objectives and analyze the results. In our analysis, we will investigate the reasons for any variances of our forecasted performance. This is a cross-functional team meeting and will involve representatives across all departments. The distilled and analyzed results will then be rolled into lessons learned, where each team will be assigned an actionable item to improve the current situation.
Resources: Project Team Hierarchy (Heavyweight team)
Sales and MarketingManufacturing and OperationsDesignHuman ResourcesQuality Control
Customer Trials:The Athos Active product is comprised of 3 main components: Garment (Top & Shorts), Mobile App (iOS & Android), and Core. The core itself has remained unchanged for the Active application, therefore should meet the quality requirements in place. The garment itself has been redesigned and will need to be thoroughly tested to meet the same quality standards of the previously released garments. The Android OS is a new addition to the mobile app support for Athos and will need to also be thoroughly tested alongside the new features and screens for the Active garment. Testing of the 2 additional components is broken down into 2 main testing phases, Alpha Testing and Beta Testing. Athos will be running various types of testing in-house during the Alpha Testing stage. The garment will be tested for comfort, stretch, and durability. We will also test garment and sensor functionality in extreme temperature, shear, and humidity conditions and collect data, measuring the accuracy of the outputs from our sensors. The Beta Testing of the garment is coupled with our existing partnerships with professional athletes, sports institutes, and celebrities. Before finalizing our garment designs, we will work closely with our partners and selected existing users of our other product line to get feedback on Athos Active. Since the mobile app requires the garment and core to function, we will also use this opportunity to test both the mobile app and garment in parallel.
Pricing Strategy:In order to price our new product, we will take into account our customers reference prices and their perceived quality of the new product line based on industry conditions. Direct and indirect competitors prices as well as generating a reasonable margin will cumulatively be considered in pricing.Since our product has much value added due to the high quality and unique technology, which differentiate it from the competition, the value based pricing approach would be most appropriate. It will allow us to gauge our customers needs better and base our pricing on customer feedback. We will also be able to incorporate customers perceptions and therefore their perceived value, based on competitors prices and our marketing efforts, into our pricing scheme. In order to determine their perceived value, we will analyze the responses to the questions from our concept testing survey, conjoint analysis survey, and follow up with a direct response survey (Exhibit 2). These will give us direct input into what prices our customers are willing to pay. Since we are only selling via the Athos online site, there is no need to incorporate any costs related to retailers, wholesalers, etc. With this method, we will be able to give our customers the best prices, catering directly to their needs, without any unnecessary added expenses associated with including multiple channels.Since our target market is the mass consumer, which is highly price sensitive, the most viable strategic approach would be to implement a market penetration strategy in order to quickly grow the market and gain a larger share. This will allow Athos to segment their market, catering to the elite athletes with their current line and average athletes with this new product line. Leveraging their proprietary technology will retain the benefits of this approach.
Competitive Assessment: The chart below provides an analysis of the complete product offering of Athos and its competitors. Various attributes and specifications of these industry leading smart wearables are contrasted below.
MetricsCompetitive Product Analysis
Price$549 for full body suit + 1 core$199 for shirt, box, and app$399 for shirt + 1 core$400 for entire healthBox
Product PackageShirt, Shorts, and 1 EMG core, mobile appOne shirt, one box, and mobile appShirts (Mens, Womens, Juniors)Scale, Wrist Wearable, and Heart Monitor
Product ClaimsImproves muscle asymmetry, balance, allows athletes to tailor workout to suit fitness goals, prevents injury Comfortable wearable to improve fitness through tracking heart rate, cadence, distance, and caloric burnMeasures heart rate, variability, breathing rate, breathing volume, activity, and sleep Allows you to stay healthy, and live longer.
Target ConsumerAll Athletes concerned about fitnessFitness enthusiast, and RunnersAthletes, Health Researchers, Space ResearchersAll people concerned about health
Brand PositioningFitness and TrainingFitness and TrainingHealth and FitnessHealth and Fitness
Hardware Features (what it measures)EMG-Measures muscle exertion/utilization by region, heart rate, respiration rate, calories burned, motion, breathing patternsMeasures vO2, heart rate, breathing rate, breathing volume and balance, activity intensity, caloriesECG-measures heart rate, respiration rate, VO2 Max, activity (steps, cadence, acceleration), calories, sleep patternsMeasures heart rate, REM cycle (sleep), steps
# of sensorsShirt- 12 EMG