June 2026. Pearson BTEC Level 3 Nationals in Business/Enterprise and
Entrepreneurship
Unit 2: Developing a Marketing Campaign (31489H)
Technective Smartwatch Launch. Exemplar Response.
Activity 1:
Technective is a well-established technology business that has operated for
over 10 years, has a loyal customer base of businesses and general
consumers, is seen as a high-quality brand and reports steady growth in
revenue and profit. Its owners have spotted a gap in their product portfolio and
want to launch their own smartwatch. They have a campaign budget of
£120,000 and six months (26 weeks) to do it.
Of the 398 respondents who own or have owned a smartwatch, 197 (49.5%)
said their main reason for buying was to monitor health and fitness. This is the
largest single reason, well ahead of keeping up with trends (94, 23.6%) and far
ahead of linking to a phone for convenience (18, 4.5%), which is the reason a
technology enthusiast would give. Fitness monitoring is also the feature most
expected from a smartwatch (422 out of 500, 84.4%). The secondary research
adds that health organisations and fitness clubs widely promote smartwatches,
and that rival brands in this segment have weaknesses Technective can exploit
(see competitor analysis). There is no equivalent evidence about technology
enthusiasts, so choosing them would mean spending a limited budget on a
segment we know much less about.
A significant opportunity for Technective is to develop their ecommerce, 231 of
the 398 owners (58.0%) bought their last smartwatch either direct from the
brand (137, 34.4%) or from an online retailer (94, 23.6%), compared with 93
(23.4%) from a technology retailer. Technective already has its own website,
so it can sell direct without paying a retailer’s margin, collect customer data for
remarketing, let customers personalise their watch on screen, and measure
exactly which adverts produce sales. With a fixed budget, being able to
measure and move spending to what works is a major advantage. The
warehouse shop and independent retailers will continue to sell Technective’s
other products but will not be used for the launch; this is reviewed in the
conclusion.
Option 1: To launch the Technective smartwatch in the UK and achieve
significant growth by selling online to health and fitness enthusiasts aged 25–
44 within the 26-week campaign. The aim is supported by three SMART
objectives. Each one is linked to the research and to a part of the marketing
mix in Activity 2.
1. Increase Sales of smartwatches through the Technective website
Technective smartwatch launch – exemplar response | Page 1
,This is an average of about 115 watches a week, but sales will be weighted
towards Black Friday, Christmas and January, when demand for gifts and
fitness products peaks. 3,000 watches is only around 0.03% of the 9 million
UK smartwatch users, so it is realistic even in a market where global sales
fell 7% in 2024.
It must come from gaining share from larger brands rather than from
market growth, which the research suggests is possible: Scoop expects the
larger brands’ share to reduce as consumers move to smaller independent
brands that offer more affordable, differentiated products, and Apple’s sales
fell by almost 19% in 2024. If the average selling price after promotions is
about £155 (an assumption based on the pricing in Activity 2), 3,000 sales
would bring in about £465,000, and the marketing cost per watch would be
about £40 (£120,000 ÷ 3,000), or roughly 26% of the selling price.
This is a sensible launch investment because buyers also generate
accessory sales, reviews, email contacts and future repeat sales. Hitting this
objective directly achieves the “significant growth” the owners want. At an
assumed website conversion rate of 2.5% (an estimate, not from the
research pack), it needs about 120,000 website visits, which the media plan
is designed to deliver.
2. Increase Awareness and attract new followers across Technective’s
social media accounts
Technective is trusted in phones and computers but is a new name in
smartwatches, and the primary research shows how much awareness
matters: 93.2% of respondents had heard of Fitbit and 80.4% of Apple, but
only 20.8% had heard of Amazfit, even though Amazfit is described as the
UK’s most successful low-cost brand.
Fitbit has 672,000 Instagram followers and Garmin 429,000, so 50,000
followers is about 7% of Fitbit’s audience, which is challenging but
achievable. Influencers typically generate 3–15K new followers per month,
so six influencers working for six months could produce well over 50,000
even at the bottom of that range; the target is set at less than half of that
low-end figure because Technective is less well known than an established
influencer’s own brand.
A larger following also lowers the cost of reaching customers later because
posts, reviews and videos are seen without paying for every impression.
This objective is delivered mainly through the influencer, video and social
media elements of promotion.
3. Objective 3 : Increase retention of existing customer through return
purchase and email interaction
Technective’s loyal customer base is its biggest advantage over a brand-
new entrant. Contacting existing customers by email costs very little and,
as they already trust the brand, they are the easiest people to convert. This
Technective smartwatch launch – exemplar response | Page 2
, gives the campaign early sales while paid advertising builds momentum.
The 8,000 new subscribers (about 6.7% of the 120,000 visits needed) give
Technective a customer list it owns and can remarket to at Christmas,
Valentine’s Day and in spring without paying for each click.
This objective supports the primary aim by lowering the average cost of
each sale, and it uses Technective’s existing strengths of brand reputation
and customer data.
Market size, share and structure
More than nine million people in the UK use a smartwatch and the Part B
research states that 23% of the UK population own one. Globally, over 450
million people own a smartwatch, with 1.3 billion forecast by 2030 (nearly
three times as many) and global revenue expected to reach $62 billion by
2028. This suggests there is still a lot of room to grow, because on the 23%
figure roughly 77% of UK adults and children do not yet own a smartwatch.
However, the market is also under pressure. In 2024 global sales fell by 7% for
the first time, with Apple down almost 19%. The Future Media says the market
has reached maturity with consumers losing motivation to buy new devices,
and the BBC reports market saturation and consumers being bored of seeing
the same products and features. Experts link the fall to the cost-of-living crisis,
boredom with a lack of new features and data protection and privacy
regulations. The structure is dominated by a few well-known brands: Apple has
the largest share with around 20%, and Samsung, Fitbit, Huawei and Xiaomi
also have large shares. Yet no brand has a majority, and there has been a
significant increase in smaller brands launched in the last three years.
The fall in sales and the decline of the big brands means Technective should
not try to beat Apple or Samsung head-on. Instead, it should present itself as a
trusted independent brand that offers something different (personalisation and
reliable health data) at a fair price, aiming at people who are ready to buy but
are dissatisfied with the existing choices. The maturity warning also means the
product and message must feel fresh to avoid the “boredom” the BBC
describes. This is why Technective’s product will focus on personalisation and
accuracy rather than a long list of extra features.
Competitors:
Technective will compete with a mix of premium, mid-range and low-cost
brands. Apple has the largest UK share at around 20% and 80.4% of survey
respondents had heard of it, but its sales fell by almost 19% in 2024, which
shows that even the market leader’s customers are not guaranteed and that
Technective can target people who are put off by premium prices.
Samsung sells the Galaxy Watch 7 at £289 and the Watch Ultra at £599 and
builds loyalty and upselling by promoting connectivity with its other products,
supported by fully digital campaigns, the 2021 Watch4 Challenge that built a
fitness community, and its Earth Day Run sponsorship with special offers.
Technective smartwatch launch – exemplar response | Page 3
Entrepreneurship
Unit 2: Developing a Marketing Campaign (31489H)
Technective Smartwatch Launch. Exemplar Response.
Activity 1:
Technective is a well-established technology business that has operated for
over 10 years, has a loyal customer base of businesses and general
consumers, is seen as a high-quality brand and reports steady growth in
revenue and profit. Its owners have spotted a gap in their product portfolio and
want to launch their own smartwatch. They have a campaign budget of
£120,000 and six months (26 weeks) to do it.
Of the 398 respondents who own or have owned a smartwatch, 197 (49.5%)
said their main reason for buying was to monitor health and fitness. This is the
largest single reason, well ahead of keeping up with trends (94, 23.6%) and far
ahead of linking to a phone for convenience (18, 4.5%), which is the reason a
technology enthusiast would give. Fitness monitoring is also the feature most
expected from a smartwatch (422 out of 500, 84.4%). The secondary research
adds that health organisations and fitness clubs widely promote smartwatches,
and that rival brands in this segment have weaknesses Technective can exploit
(see competitor analysis). There is no equivalent evidence about technology
enthusiasts, so choosing them would mean spending a limited budget on a
segment we know much less about.
A significant opportunity for Technective is to develop their ecommerce, 231 of
the 398 owners (58.0%) bought their last smartwatch either direct from the
brand (137, 34.4%) or from an online retailer (94, 23.6%), compared with 93
(23.4%) from a technology retailer. Technective already has its own website,
so it can sell direct without paying a retailer’s margin, collect customer data for
remarketing, let customers personalise their watch on screen, and measure
exactly which adverts produce sales. With a fixed budget, being able to
measure and move spending to what works is a major advantage. The
warehouse shop and independent retailers will continue to sell Technective’s
other products but will not be used for the launch; this is reviewed in the
conclusion.
Option 1: To launch the Technective smartwatch in the UK and achieve
significant growth by selling online to health and fitness enthusiasts aged 25–
44 within the 26-week campaign. The aim is supported by three SMART
objectives. Each one is linked to the research and to a part of the marketing
mix in Activity 2.
1. Increase Sales of smartwatches through the Technective website
Technective smartwatch launch – exemplar response | Page 1
,This is an average of about 115 watches a week, but sales will be weighted
towards Black Friday, Christmas and January, when demand for gifts and
fitness products peaks. 3,000 watches is only around 0.03% of the 9 million
UK smartwatch users, so it is realistic even in a market where global sales
fell 7% in 2024.
It must come from gaining share from larger brands rather than from
market growth, which the research suggests is possible: Scoop expects the
larger brands’ share to reduce as consumers move to smaller independent
brands that offer more affordable, differentiated products, and Apple’s sales
fell by almost 19% in 2024. If the average selling price after promotions is
about £155 (an assumption based on the pricing in Activity 2), 3,000 sales
would bring in about £465,000, and the marketing cost per watch would be
about £40 (£120,000 ÷ 3,000), or roughly 26% of the selling price.
This is a sensible launch investment because buyers also generate
accessory sales, reviews, email contacts and future repeat sales. Hitting this
objective directly achieves the “significant growth” the owners want. At an
assumed website conversion rate of 2.5% (an estimate, not from the
research pack), it needs about 120,000 website visits, which the media plan
is designed to deliver.
2. Increase Awareness and attract new followers across Technective’s
social media accounts
Technective is trusted in phones and computers but is a new name in
smartwatches, and the primary research shows how much awareness
matters: 93.2% of respondents had heard of Fitbit and 80.4% of Apple, but
only 20.8% had heard of Amazfit, even though Amazfit is described as the
UK’s most successful low-cost brand.
Fitbit has 672,000 Instagram followers and Garmin 429,000, so 50,000
followers is about 7% of Fitbit’s audience, which is challenging but
achievable. Influencers typically generate 3–15K new followers per month,
so six influencers working for six months could produce well over 50,000
even at the bottom of that range; the target is set at less than half of that
low-end figure because Technective is less well known than an established
influencer’s own brand.
A larger following also lowers the cost of reaching customers later because
posts, reviews and videos are seen without paying for every impression.
This objective is delivered mainly through the influencer, video and social
media elements of promotion.
3. Objective 3 : Increase retention of existing customer through return
purchase and email interaction
Technective’s loyal customer base is its biggest advantage over a brand-
new entrant. Contacting existing customers by email costs very little and,
as they already trust the brand, they are the easiest people to convert. This
Technective smartwatch launch – exemplar response | Page 2
, gives the campaign early sales while paid advertising builds momentum.
The 8,000 new subscribers (about 6.7% of the 120,000 visits needed) give
Technective a customer list it owns and can remarket to at Christmas,
Valentine’s Day and in spring without paying for each click.
This objective supports the primary aim by lowering the average cost of
each sale, and it uses Technective’s existing strengths of brand reputation
and customer data.
Market size, share and structure
More than nine million people in the UK use a smartwatch and the Part B
research states that 23% of the UK population own one. Globally, over 450
million people own a smartwatch, with 1.3 billion forecast by 2030 (nearly
three times as many) and global revenue expected to reach $62 billion by
2028. This suggests there is still a lot of room to grow, because on the 23%
figure roughly 77% of UK adults and children do not yet own a smartwatch.
However, the market is also under pressure. In 2024 global sales fell by 7% for
the first time, with Apple down almost 19%. The Future Media says the market
has reached maturity with consumers losing motivation to buy new devices,
and the BBC reports market saturation and consumers being bored of seeing
the same products and features. Experts link the fall to the cost-of-living crisis,
boredom with a lack of new features and data protection and privacy
regulations. The structure is dominated by a few well-known brands: Apple has
the largest share with around 20%, and Samsung, Fitbit, Huawei and Xiaomi
also have large shares. Yet no brand has a majority, and there has been a
significant increase in smaller brands launched in the last three years.
The fall in sales and the decline of the big brands means Technective should
not try to beat Apple or Samsung head-on. Instead, it should present itself as a
trusted independent brand that offers something different (personalisation and
reliable health data) at a fair price, aiming at people who are ready to buy but
are dissatisfied with the existing choices. The maturity warning also means the
product and message must feel fresh to avoid the “boredom” the BBC
describes. This is why Technective’s product will focus on personalisation and
accuracy rather than a long list of extra features.
Competitors:
Technective will compete with a mix of premium, mid-range and low-cost
brands. Apple has the largest UK share at around 20% and 80.4% of survey
respondents had heard of it, but its sales fell by almost 19% in 2024, which
shows that even the market leader’s customers are not guaranteed and that
Technective can target people who are put off by premium prices.
Samsung sells the Galaxy Watch 7 at £289 and the Watch Ultra at £599 and
builds loyalty and upselling by promoting connectivity with its other products,
supported by fully digital campaigns, the 2021 Watch4 Challenge that built a
fitness community, and its Earth Day Run sponsorship with special offers.
Technective smartwatch launch – exemplar response | Page 3
