Kuala Lumpur FedEx ITC ChallengeIntroductionThe NickJun Company is a Malaysian based watch company. We propose to enter the market of Germany to sell our high quality watches, the Health Watch. Watches evolved from the portable spring driven clocks that first appeared in the 15th Century. Clockmaker Peter Henlein from Nuremburg, Germany is often credited as the inventor of watches. Therefore, Germany is well known for its watch industry. Famous watch brands from Germany include A. Lange & Shne, Glashtte Original, UTS Mnchen, NOMOS Glashtte.

Watches are important accessories nowadays. From simple yet elegant designs to high-tech and multifunctional, watches are a trend in the 21th Century. The main function of a normal watch is to tell the time, but of course there are watches with many new functions in the market now.

According to our research, the main cause of death in Germany in the year 2010 is cardiovascular diseases with 41% with cancer and tumours being other common cause of death as well. This signifies the importance of maintaining a healthy life.

Vision

1. To provide the people of Germany a watch with health monitoring features at an affordable price.2. To improve health conditions of German residents.

Short Term Goal

In one year time:1. To raise awareness of our product among citizens of Germany2. To sell a minimum of 500 units of our products in urban cities.3. To sell our product through an online store and retail shops.

Long Term Goal

In five year time:1. To increases units sold from 500 units to 15,000 units.2. Set up physical stores in both urban and rural areas.3. To have 50% of Germany citizens using our product.4. To improve health conditions of the citizens of Germany by introducing our health monitoring device.

Product

Our product, the Health Watch is a watch with an adjustable and removable strap. The strap comes in different vibrant, neon and also simple colours. Therefore, the user can change the colour of the strap according to personal preferences. The straps will be made of rubber to provide flexibility and also durability. The reason we use rubber straps instead of leather straps is to reduce the cost. Other than that, leather straps colour turns dark and may have an odour due to the sweat excreted by the wrist after time. On the other hand, rubber straps are waterproof and can be washed to maintain hygiene.

As for the buckle, deployment buckles will be used so that it is easy to wear and has a tint of style on it at the same time. The buckle will be made of stainless steel as in does not rust and can be cleaned. Studies also show that with the deployment buckle, the lifespan of the rubber strap can be extended; this is because the movement of bending the strap to buckle it is reduced. The average lifespan of a rubber strap is 3 years.

But what does maintaining our health have to do with the watch? Well, our watch comes with a health tracking devices. According to a research, 73 percent of people claim to be healthier by using a smartphone and apps to track their health and fitness. Fifty three percent, in fact, discovered they were eating more calories than they realized. But it doesnt stop there: 55 percent of todays mobile health app users also plan to introduce wearable devices like pedometers, wristbands and smartwatches to their health monitoring in coming years. And thats when Health Watch comes in. Health watch provides a system that keeps track of the calorie intake and also calorie lost, distance walked or run and also heartbeat rate. It also comes with a system that is constantly undergoing updates.

But what is the difference between our product and the product in the market now? The current health monitor devices in the market now have specific functions only, for example to monitor blood pressure or to monitor blood glucose. But Health Watch provides a simple watch with complete health monitoring functions.

Pricing

According to the products in the market, normal health monitoring watches are priced according to their functions. Prices are ranged from RM 300 to RM1000. These health monitoring devices come with Bluetooth, cameras, voice recognition. However, not everyone is capable of affording such an expensive health monitoring watch. Therefore we set the price our Health Watch at RM 250 with every extra strap at a price of RM25. The cleaning service of the watch will be free for the first time and will be charged RM15 for every cleansing the following times. Target Market

Research indicates the net-adjusted disposable income per capita in Germany is 30721 USD, when converted equals to RM 110251.52 per year. Whereas the median age for Germany is 43.7 years of age.

1. Our primary target is people with cardiovascular diseases or needs health monitoring devices. 2. We also target urban citizens aged from 25 years of age to 64 years of age which is 55.3% of the population in Germany.

According to our research, the main cause of death in Germany in the year 2010 is cardiovascular diseases with 41%, followed by malignant tumours at 26%. In a research conducted in 2013, Cancer was the second most common cause of death after cardiovascular diseases. This shows the importance of maintaining a healthy life.

According to the World Health Organization, Germany's health care system was 77% government-funded and 23% privately funded as of 2005. In 2005, Germany spent 11% of its GDP on health care.

However, prevention is ultimately better then treatment.

Marketing

Our marketing strategies are as follows:

1. Free Trial SessionsWe will have a free trial session for those who are interested for one month. Through this trial session, we will get feedbacks and also at the same time film this session into a video to be promoted. The video will be evidence to show the efficiency for our product.

2. Sponsoring CompetitionWe will sponsor competitions so that people will raise awareness of our product and its usefulness.

3. Buying a watch company in GermanyBy buying a watch company in Germany, we are able to reduce the cost for the watch. This is because the watches can be produced locally and we could hire locals to our factory. This way, we do not have to send our products all the way from Malaysia to Germany and we are able to save the shipping fees. Other than that, the company will have a better understanding towards Germany and the market requirements.

4. Social MediaWe will have social media accounts to promote our product in social media. We will also conduct contests in social media as well as surveys to improve our product.

5. WarrantyOur products are of highest quality; therefore we provide warranty for 2 years. Any malfunction in the system or product will be exchanged with a brand new one.

6. Cleaning servicesWe provide cleaning services to old products. We will clean the rubber strap as well as the watch and device itself.

7. PromotionsDiscounts and packages will be available from time to time especially during festive seasons to attract customers.

Advertisements and PromotionsWe will also advertise our products through newspaper, television channels, radio stations as well as setting up of posters around the city. Attractive promotions such as packages or bundles can be bought at the store during festive seasons to get a lower price.

Distribution ChannelsEarly stageWe will ship our products through cargo ships to ensure quality and also to save the cost. Products will be sorted according to districts and sent to respective harbours. Germany has approximately 20 harbours across the country. Before our products arrive, a Malaysian support team will be sent to Germany to survey the market and set up the online store. Other than that, they will keep track of the products and also arrange for its arrival. Upon arrival our products will be transported to retail shops through cargo trucks using road which the support team is in charge of. Using Autobahn, the federal controlled-access highway system, it connects major cities and is well known as it is the most dense and longest systems with a total length of about 12,917 kilometres. Online orders will be distributed by road as well. Skilled and experienced Malaysian employees will be sent to supervise the distribution of products to the customers.

After buying a local German watch companyWe will hire locals that are experienced in the watch industry as workers and also mangers. This way, we can help the growth of the economy of the country. However, Malaysian supervisors will remain there to ensure the quality and consistency of the production process. Having physical stores around the country, we provide customers a walk-in shop where they can see our wide range of designs available. Online ordering will still be available and will be delivered by road. Customer service team will also be set up to attend to customers needs.

Through the distribution channels stated above, we are able to supervise the production, delivery and also customer service process. To ensure our products reach the customers hands in good conditions. Even with local workers working there, supervisors will be around throughout the process to ensure efficiency.