Developing New Products: The Sevenhugs Smart Remote

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It is worth noting that notwithstanding the industry, business area, or the intended audience, every new project or innovation development will require an evaluation of its market potential. Moreover, a new project always involves business’ scalability assessment and the possible return for investors and owners. This way, the question of estimation of the capacity and market share that the project could attain in the future is the key aspect in the development of any project (Kahn 2015). The purpose of this paper is to consider one of the latest novelties presented at Kickstarter, the Sevenhugs Smart Remote, and to review its market potential and product launch strategy.

Innovation Description and Key Features

A team of French developers has recently started fundraising for their Sevenhugs remote control that is capable of managing all possible digital devices. Their innovative solution will replace smartphones, other related devices, and the applications needed for remote control applications. Sevenhugs offers control of multiple devices with a simple interface and a touch screen, and it is managed through Wi-Fi or Bluetooth (Sevenhugs 2016). As shown in Picture 1, the remote control comes with three related motion sensors to provide a triangulated space in the house, identifying where Sevenhugs is pointed; after the smart remote system recognizes the device at which the owner has pointed, it changes the interface so as to connect to the device and provide wireless control (Sevenhugs 2016). It requires no applications; in addition, due to the special interface, there is no need to switch between devices (Sevenhugs 2016).

Sevenhugs’ triangulated space in the users’ homes — Picture 1. Sevenhugs’ Triangulated Space in the Users’ Homes

As evident from Picture 2, Sevenhugs will provide its users with a simple unified solution to control their smart homes instead of a pile of different gadgets (Sevenhugs 2016). An additional feature is that the remote can manage the gadgets in other rooms or on other floors. The team is still working on the development of the project; however, this remote control that costs $200 has already collected a large amount of startup money, and the delivery of the gadget to the market is planned for June 2017.

Market Potential

Estimation of market attractiveness of innovation is a task of paramount importance in the system of development and implementation of the product. The market potential of an innovative product can be expressed in its ability to meet the demand for this commodity from the maximum number of consumers of various market segments (Miller 2015). The Sevenhugs Smart Remote is an innovative solution in the area of integrated devices aimed at home use. The main advantage for customers is that it has the capability to be the only console to replace all related devices for home appliances and control devices without the need to switch between gadgets and applications (The technological fragmentation of the smart home ecosystem 2016). Moreover, this remote control will be able to connect to devices at a different distance in any direction, which implies a complete automation of home utilities and their convenient, functional use.

Project Feasibility

User-led Innovation

Discussing the feasibility of this innovation, it is critical to point out that the described commodity is based on customer need and is a user-led innovation. User-led innovation theory places lead users as the sources of innovation in the consumer segment. This type of user is represented by the consumers who are among the first buyers of a certain product; due to this feature, the users of this group are the most likely to face the need for innovation sooner than the majority of the users (Trott, Van Der Duin, & Hartmann 2013). In fact, the authors of Sevenhugs Remote Technology represent the segment of lead users and creative consumers. The latter are defined as the customers inclined to modify and adapt the initial proprietary technology in order to it to meet their emerging need for a transformed product (Berthon et al. 2007). The developers had the task of catching an emerging trend and anticipating the users’ request for this type of product; therefore, the team did not build on any existing technological capability (Kahn 2015).

Kickstarter Campaign Success

In addition to being developed by the lead users and creative consumers, Sevenhugs Remote is also supported and promoted by the users. In that way, the two aspects mentioned above confirm that there is a need for a product such as Sevenhugs in the marker of modern technology. The Kickstarter campaign launched to support the project and raise funds for the technology development is demonstrating a high rate of popularity of the new project among the existing users (The technological fragmentation of the smart home ecosystem 2016).

Customizability

Moreover, the product under development is promising in terms of allowing the users adjust it to their individual needs and requirements. In particular, the developers of Sevenhugs Remote are planning to enable the users to modify, program, and create a device that would meet their diverse needs that were not covered by the products and services already introduced in the market. Many of the recent studies on the marketing power of customization have emphasized that customizable products are extremely attractive to the modern consumers due to their unique ability to be adjusted to the individual desires of the buyers (Arora et al. 2008; Wind & Rangaswamy 2011).

In that way, it is possible to conclude that the user-lead nature of this innovation, its early promotion and popularization among the existing consumers with the help of Kickstarter campaign, and its customizability are the three key aspects that would ensure the feasibility of this project right now and at the future stages of planning and implementation.

Industry and Customers

According to the research conducted by the company, at present, almost eight million homes in America are equipped with associated gadgets. In Europe, the number equals 2.7 million; however, the tendency is on the increase. The potential for the industry is massive, and by 2019, it is believed it will reach 70 million (The Technological Fragmentation of the Smart Home Ecosystem 2016). These statistics have been calculated for North America and Europe alone, which evidences that the market is indeed promising. The company is initially aiming at the home market, estimated to reach 28 billion USD, but the company’s CEOs have announced their plans of bringing the solution abroad as well, where smart home technology fragmentation remains relatively high (Suryadevara & Mukhopadhyay 2015).

This technical novelty implies superiority over all the competitors in the field of distance controlling, and it meets customer needs to the fullest. It is crucial to note that the groups of potential buyers depending on the application of this product are families and people aged 16 to 65 with an average income and owned or rented housing. The current situation in the market and current global trends suggest that in spite of the existing competition in the market, there are virtually no competitors offering a similar unified, integrated multitasking device (Miller 2015). According to the company report, in the global market, the companies that produce commercial products and solutions related to distant control hold a leading position.

Competition

The company has already started fundraising; the compact gadget costs $99 for the investors, and crowdfunding results suggest that the device will have a wide audience. To be more precise, a month before the end of the campaign on Kickstarter, Sevenhugs had raised 565 thousand dollars, 299a sum 11 times bigger than needed (The technological fragmentation of the smart home ecosystem 2016). Analyzing the competition, it should be noted that at present potential customers could purchase a transmitter for their smartphones, turning them into universal remotes; however, Sevenhugs is the most functional device. According to secondary data, the main indirect rivals in the industry that provide remote control services are WEMO, Piper, Canary, SimpliSafe, Philips, iSmart Alarm, Wink, Insteon, SafeMart. However, as per the primary data, direct competitors are SmartThings, Inc., Icontrol Networks, Inc., and Belkin International, Inc. Nevertheless, these companies furnish limited controlling opportunities; meanwhile, Sevenhugs allows controlling the operation of TVs (including intelligent models from different manufacturers), set-top boxes (in particular, Apple TV), players, speakers, lighting, and other devices. The developers noted that the novelty is already compatible with more than 25 thousand devices, which is its leading competitive technological edge, unlike other similar devices (The technological fragmentation of the smart home ecosystem 2016).

In terms of the companies’ revenues, the top rival (SmartThings) is estimated to have approximately 1.6 million dollars, while Sevenhugs has close to one million USD. Regarding social networking, the rival has close to 34,546 followers, and Sevenhugs has only 2,087 active followers (Sevenhugs 2016). This provides evidence that the competitor has higher chance of successful promotion and wider audience coverage.

Technical Aspects and Value Proposition

Modern homes are becoming increasingly smart and connected. This implies that there are a variety of devices to control, while previously, people had to download many apps or controllers to be able to manage their home gadgets and utilities. Nonetheless, the creation of the Sevenhugs Smart Remote will be able to deliver value to customers through elimination of waste and clutter. The technical details are available in Picture 3 (Sevenhugs 2016).

Picture 3. The technical issues of the Sevenhugs Smart Remote

Customers will be no longer confused about the steps they need to take to control their home devices, and they will not need to spend extra money or time on supplementary applications, and so on (Miller 2015). The integrated technology solves a main issue of the contemporary world, excessive complexity, allowing a simple management approach to varied electronic devices. The core of the innovation’s value can be deduced from the marketing mix presented below.

Marketing mix for the Sevenhugs Smart Remote:

Product	Price
The device will have a full one-year warranty. The packaging is tasteful. It supports more than 25,000 different applications. No need to download any other apps. Allows triangulation of the space for a full-dimensional control. Long battery life, smart and convenient interface, and a wireless connection. Adaptability of the interface. The possibility to connect all the needed devices to a single platform with no need to switch between gadgets.	The base model planned for July 2017 costs 99 USD for the early-bird pledge. However, the retail price will be 299 USD when the company offers the first sales of their product. The package includes the apparatus itself, the positioning system, and the charging base with the lost-and-found button. The company has decided to make the price fit this type of device, saving money on the packaging (though it is of high quality) and spending it on the functionality of the smart remote to establish market dominance.
Place	Promotion
The product will be sold at reputable retailers and, at present, Sevenhugs can be purchased at Kickstarter and the official website of the company. To reach customers worldwide, the gadget will be sold online and shipped to almost any country. Different displays representing Sevenhugs will be placed in various American and European stores selling digital devices. Prior to the release, reputable trademarks will display the innovation as part of the promotion to boost sales immediately.	The innovative remote will be positioned as a convenient, value-added device aimed at personal use. The marketing strategy will be based on the idea that the innovation will provide its users with a single device for controlling all home utilities in a smart but simple way.

Importantly, the company has applied for patents, which are essential for this type of innovation (MN30625 2016). Its Point and Control technology is a development of a team of professionals in the area of IT and digital systems. The essence of their innovation is the adaptability of the system to any device and customized control.

Product Launch

To launch such a product, the company should refer to the existing business plan. On the basis of the product launch, it will be possible to build a detailed work scheme for the marketing and sales departments, as well as to adjust the production plan (Chase 2013). The product launch outline for the Sevenhugs Smart Remote consists of the following steps:

The description of the strengths and weaknesses of the product;
Product positioning;
Planning sales markets and target audiences;
Planning sales policy and distribution channels;
Sales promotion;
Planning of individual special marketing projects and their implementation;
The formation of the final price policy;
Advertising and PR;
Forming the marketing budget.

In developing the product launch, it is essential to clarify all the information available in terms of the market and to specify the calculations (Chase 2013). Experts may be involved in the launch, for instance, the most loyal customers, independent market experts, and partners.

Specific Steps

The goal of the product launch program is to increase product awareness and demand (Hill 2016). In their turn, the purpose of these measures is sales. The marketing outline should account for the customers’ personalities. Thus, the product launch program enables determining the concrete sales tools. Notably, all of these measures should be taken both before and during the launch. The key aspects of the product launch program are:

Press Releases;
Collaborating with press;
Social networking and being active in social media;
Advertising;
Creating campaigns;
Holding contests;
Taking part in trade shows.

Such tactics as press releases will allow building product awareness among prospective clients. A press release is an effective, feasible tool to introduce the novelty. The release of the Sevenhugs Smart Remote should include customer endorsements.

Promotion Strategies

The Kickstarter videos and demonstrations of Sevenhugs Remote placed online can be evaluated as rather brief and inefficient in terms of marketing and attraction of the potential consumers. Basically, the need for a product of this kind has been persisting in the tech-savvy community for years. The contemporary homes are becoming more and more filled with diverse appliances and technologies most of which are controlled remotely. In that way, many owners have numerous remote controls around the house that get lost and mixed up all the time. The need for the smart remote control adjustable for different types of products is wide and is demonstrated by multiple supporters of the current fund-raising campaign for Sevenhugs and the high rate of popularity of several similar products developed by the competitors of Sevenhugs – RCA (Universal Remote), Logitech (Harmony), and Google (Touchsquid Android app) (Henry 2015).

Practically, to defeat the rivals in the market field, Sevenhugs requires a powerful promotion campaign based on:

Active communication of the developers with the users via several social network platforms (such as Twitter, YouTube, and Facebook);
Video demonstrations and captivating clips;
Video reviews by popular tech-savvy YouTubers (such as Unbox Therapy, UrAvgConsumer, and Marques Brownlee);
And an option for hands-on experience in the stores distributing Sevenhugs.

To be more precise, the latter strategy could involve the provision the potential buyers with an opportunity to test the devices right at the stores where they are sold. Namely, the triangulated space could be arranged in the stores so that some of the other appliances present there – TV sets, DVD players, thermostats, lights, fans, and speakers. Basically, the users with the need for a device such as Sevenhugs require a practical demonstration of the way the product works in order to become convinced that this is a valuable addition to their homes.

The other strategies – promotion on social networks, video advertisement, reviews on YouTube, will serve to raise awareness of the products among the most likely consumers – the owners of multiple devices that can be controlled remotely. The idea of a universal remote control has been in place for many years. The major task of the developers of Sevenhugs Remote is to address the existing weaknesses and limitations of their product in order to create valuable points of difference between Sevenhugs and the other similar devices or apps carrying out the functions of a remote control.

Further, conducting a beta program is a crucial step as well, since it will provide the possibility to attract more clients. Despite the fact that the smart remote has already been covered in the press, it is advisable to reach out to mass media more thoroughly to boost sales after the launch. Additionally, the company should update their website and be active in social media since (as discussed in the market potential chapter) Sevenhugs’ direct competitor is several times more active and has drastically more active followers. Consequently, one of the important parts of the launch is social networking (Mackenzie & Wajcman 1999). Moreover, being active in social media will allow establishment viral awareness (Jayant Baliga 2015). Apart from that, effective advertising is a powerful tool that the company should use to raise the awareness of the targeted audience. As stated earlier, the team is planning to patent its Point and Control technology; therefore, purchasing Google AdWords will be a feasible measure (MN30625 2016).

Building demand is another side of a product launch program apart from raising product awareness. The project already has an existing customer base, and the company can use this as a platform to create referral campaigns (Slater 1997). The company can also boost sales by holding a contest. The pre-contest steps imply gathering information from the prospective participant, which will allow attracting legitimate sales prospects (Jayant Baliga 2015). Trade shows enable reaching the targeted audience as well. More importantly, they provide an opportunity to reach a wider customer segment as trade shows connect companies with customers who are yet not knowledgeable about the proposition but represent the population of potential clients due to the nature of their interest in trade shows.

Conclusion

It is necessary to emphasize that new products should be multifunctional. Innovative items operating only a few related tasks are no longer promising since the market is full of all sorts of devices and applications, creating an even more intricate and expensive experience for users. Given the need of consumers for a unified, integrated device, the company has developed the Sevenhugs Smart Remote to accurately meet customer needs; the device allows bringing value through simplification of remote controlling. It is capable not only of managing all related devices but also adapting to the owner of the remote and managing the devices in every direction, thus replacing many other gadgets and applications. At present, the device development is in the final stage, but the conducted analysis indicates the success of the future project, and the proposed product launch program will increase customer awareness and boost demand.

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