project of the day on Kickstarter- ZeTime

ZeTime is the name of today’s featured Kickstarter project. This project is about an innovation in which the creators have created a smart watch with the functionality of a conventional watch (MyKronoz Switzerland, 2017). The basic functions of a conventional watch are combined with smartwatch technology in this design. The end result is a watch that might be regarded as a combination of the traditional watch and contemporary smartwatch characteristics.

The device’s manufacturing and development process used Smart movement® technology, which is a patented technology. Due to the combination of smartwatch features, the device is capable of automatically updating time based on its location. Compared to other projects on Kickstarter, ZeTime project has attracted a large number of backers willing to provide the desired support to ensure the commencement. The target goal for the project is $50,000, but while the pledging is still open, the project has already been able to receive well over $3.3 million in pledges presented by over 17,000 backers, with six days to go. The attractiveness of the revolutionary invention to the public can be perceived through the number of pledges received.

Offerings number of backers

>10 21

>139 12861

>159 741

>259 1752

>299 86

>2800 6

>4730 20

>119 1000

>219 500

Analysis of Kickstarter

Many of the backers who have made their offerings have placed pledges of $139 or more. This is the bracket of offering in which many individuals have placed their pledges. This can provide a platform upon which the owners of the project can make their estimation of the price of the project. The amount that many people are offering becomes the indication of the price that the customers would be willing to pay. Based on the offers that have been presented and the number of people providing these offers, the owners can estimate the value of the product as determined by the customer contribution. This estimation, which is based on the pledges made by potential customers, can help in determining the selling price.

The pledges that people make can be critical in providing the entrepreneur with information on the potential figure wold-be clients are wiilling to pay for the product. Such would be essential for ensuring that the selling price of a product is defined at a level which the target market can afford (Prpić, Shukla, Kietzmann, & McCarthy, 2015). Price definition ensures that once the product is completed, a high level of sales can be achieved as it will be offered at an affordable price. The amounts pledge by the public are the source of capital for the entrepreneur, which reduces the start-up risk of the project to the owners.

The owners or developers of a project are required to provide information on the product or project that they are undertaking. The information seeks to communicate and inform the target population of the characteristics of the product. This kind of fundraising is necessary as the information provided can be utilized as part of the marketing process. The fundraising process contains relevant information for the public and creates awareness of the products before they are availed in the market.

The response received from the market through the number of backers and the amount of money that the individuals pledge is an indication of the acceptance given to the product by the market. The concept can be tested within a real market situation based on the response received from the backers. Entrepreneurs can, therefore, continue investing their resources in the project since they have an understanding of the reaction of the target market to the introduction of the product.

Using application like Kickstarter, new entrepreneurs can present their concepts to the market and receive a valuable response that can be critical in the product development process. Within this platform, the popularity of the product under development can be determined by the number backers making their pledges to support the project. Feedback given can help in the improvement of the quality, as a range of ideas can be introduced at the development stage of the product (Djelassi & Decoopman, 2013). The viewers of the product and the backers become partners who provide valuable input that can improve the product. The feedback generated is essential for the development of a product (Knipp, 2013).

Kickstarter is a website that gives the entrepreneurs an opportunity to market their ideas and test them in a real market situation. Project owners are allowed to provide a profound description of their products as they seek funding from the public. When pledges are made, the products can be considered to have begun selling. This is a pre-selling kind of advertisement that can aid entrepreneurs to communicate the message about their product to a wide market. Being an online platform, it provides many advantages such as being easier than the traditional methods. Kickstarter can be used for marketing and advertising of the product as well as getting a cheap source of venture capital.

References

Djelassi, S., & Decoopman, I. (2013). Customers’ participation in product development through crowdsourcing: Issues and implications. Industrial Marketing Management, 42(5), 683-692.

Knipp, K. (2017). Benefits and drawbacks of crowdfunding. Big Commerce, Retrieved from https://www.bigcommerce.com/blog/benefits-and-drawbacks-of-crowdfunding/

MyKronoz Switzerland. (2017). ZeTime: World’s first smartwatch with hands over touchscreen. Retrieved April 21, 2017, from https://www.kickstarter.com/projects/1282890542/zetime-worlds-first-smartwatch-with-hands-over-tou?ref=popular

Prpić, J., Shukla, P. P., Kietzmann, J. H., & McCarthy, I. P. (2015). How to work a crowd: Developing crowd capital through crowdsourcing. Business Horizons, 58(1), 77-85.