Tutorial: You must answer ALL the questions. (Total 100 marks)

Question 1

Apple Watch Series 5 gives an all-round performance

The Apple Watch Series 5 smartwatch (from S$599 to S$2049) looks exactly like its predecessor, the Series 4. However, the Series 5 comes in new case materials - besides the mainstay aluminium and stainless steel, it now has titanium and ceramic versions.

The ceramic watch case, available only in white, is supposed to be very scratch-resistant; while the titanium watch case comes in natural brushed and space black finishes, with the space black finish having a diamond-like coating. A variety of bands are also offered.

Apart from the new case materials, the biggest upgrade in the Series 5 is its always-on display (AOD). With this display, some elements of the watch face will always be visible to tell time, instead of "blacking out" like with previous Apple Watch models and other smart watches or fitness trackers.

The new watch OS 6 has several new watch faces that take advantage of the new AOD. One is the new California watch face, which has a mix of Roman and Arabic numerals. These numerals, along with the hour and minute hands, remain visible when the watch is idle, while the background and second hand disappear. They reappear when you raise your wrist to wake the display up.

Apple said that with the AOD turned on, the series 5 will continue to have an all-day battery life. With the watch paired to an iPhone with notifications turned on, with a 5 km walk and a 500 m swim thrown in, the watch still had around 40 percent battery life left at the end of the day before charging.

Another new feature is the digital compass, which shows direction and elevation. For those who like hiking, this compass app is handy and could keep them from getting lost when trekking. Also new to the Series 5 is a feature that allows international emergency calling (in more than 150 countries) without an iPhone.

The Series 5 has the same health and fitness features - such as heart-rate monitoring and electrocardiogram (ECG) - as the Series 4. Listen to music on the go, pay for stuff, text or call, it lets you go without your phone. The watch OS 6 also introduces menstrual- cycle tracking for women. However, it still does not have the sleep tracking mode.

Though its improvements are incremental, the Apple Watch Series 5 is still the best smartwatch in the market, with its sleek design, useful health features and superb overall performance.

(Adapted for academic purposes from The Straits Times, 25 September 2019)

1. (a)Explain the five (5) product levels of the customer value hierarchy for the new Apple Series 5 smartwatch. (12 marks)
2. (b)Discuss three (3) product or service differentiation that Apple has adopted or can adopt for its Series 5 smartwatch. (9 marks)
3. (c)Examine one (1) social and two (2) personal factors that could influence a consumer to buy an Apple Series 5 smartwatch. (12 marks)
4. (d)Discuss Apple's price setting decision by comparing two (2) pricing methods that could have been adopted by Apple. Suggest, with reasons, which pricing method Apple is likely to have used for its Series 5 smartwatch. (7 marks)

Question 2

Watsons eyes more seamless experience for online shoppers

The drug store business might be a traditional one, but the industry is also looking to remake itself to stay relevant.

Beauty, health and wellness retailer Watsons, which is headquartered in Hong Kong, aims to transform itself by offering online and offline channels to consumers to keep their loyalty.

Its latest move in Singapore is to provide customers with a click-and-collect express option when they buy products online, a process which turns every physical store into a mini-warehouse. General Manager Irene Lau of Watsons feels that the multi-channel shopper is one who has higher value. Even though their online shop has been seeing 100 per cent year-on-year growth, more customers visit their 104 outlets.

Ms Lau said: "We are able to hold a wider range of products online and offer more variety. We also offer premium South Korean and Japanese brands online as well." People who like to buy items in bulk or larger household products prefer to shop online so that the goods can be delivered to their homes.

But just having the online store is not enough. Watsons Singapore wants to move towards making the whole experience more seamless for consumers who shop online and pick up their goods in-store. "With click-and-collect express, the physical stores do the picking of goods for consumers so that consumers do not have to wait 2 to 3 days for the products to be sent from the main warehouse."

Despite the economic downturn and falling retail turnover figures, the drug store industry continues to see many opportunities. Watsons has been enjoying consistent year-on-year revenue growth in the single digits as personal and healthcare items remain necessary. Their customer base is growing steadily, and they noticed that new members are coming from a younger age group.

Watsons has become savvier in stacking its shelves with products that appeal to a new demographic of consumers. The chain now sources brands by looking at their social media reach on platforms such as Instagram. It is also offering more lifestyle products such as sports nutrition and protein powders.

There is also a growing demand for natural, organic and sustainable products. Watsons has pledged not to sell personal care products containing microplastics starting next year; and their house brand tissue paper is also fair trade and sustainable.

(Adapted for academic purposes from The Straits Times, 23 September 2019)

1. (a)Under channel design decisions, discuss any three (3) relevant service outputs that Watsons offers to customers based on "analysing customer needs and wants". (9 marks)
2. (b)Explain the type of channel conflict that could occur between the Watsons' physical stores and its online store. Suggest one (1) way to manage this conflict. (6 marks)
3. (c)Outline one (1) trend each under socio-cultural and technological macro- environment forces that could have an impact on Watsons' business. (8 marks)
4. (d)Analyse and propose two (2) strategies on how Watsons can grow the value of its customer base. (7 marks)

Question 3

Paralympian is Lancome's new face

Paralympian swimmer Yip Pin Xiu is the latest face of French cosmetics house Lancome, becoming the first person with disability to be featured in its advertising campaign here.

Marketing experts and charities who work with disabled people say this is the first time they have seen a major beauty company engage a brand ambassador with a disability to front its advertisements here.

Ms Yip, 26, suffers from muscular dystrophy - which causes progressive weakness and loss of muscle mass - and uses a wheelchair.

A spokesperson for Lancome told The Straits Times that Ms Yip was chosen because she is an inspiration to many. "Pin Xiu is a natural fit as she is a force to be reckoned with. Her story is phenomenal and despite all her success, she remains humble, kind- hearted and so positive in anything she embarks on," said the spokesperson.

At the age of 16, Ms Yip won Singapore's first gold medal at the Beijing Paralympics in 2008. She now has four Paralympics medals - three Golds and one Silver. In September this year, she became the youngest Nominated Member of Parliament (NMP), at the age of 26.

Ms Yip is the face of Lancome's latest Love Your Age campaign to promote its anti- aging serum, Advanced Genifique. With newly tested efficacy, and for all skin types, Genifique is a fast-acting anti-aging skin serum that instantly makes skin feel hydrated, smooth and soft, reduces fine lines and wrinkles, revealing more radiant skin in as little as seven-days.

This Love Your Age campaign encourages women to love and embrace who they are and to live their lives to the fullest, regardless of their age. The advertisements featuring Ms Yip were rolled out last week. They were placed on online sites and used in print.

(Adapted for academic purposes from The Straits Times, 01 November 2018)

(a) (i)

In designing an advertising campaign, a creative strategy needs to be formulated. Compare informational appeal or transformational appeal and discuss which would be more suitable for Lancome's Love Your Age campaign to promote its anti-aging serum, Advanced Genifique. (7 marks)

(ii) Examine the use of Ms Yip as Lancome's message source for their Love Your Age campaign in terms of her credibility. Provide two (2) reasons to support your answer. (6 marks)

1. (b)Analyse and propose two (2) other mass communication tools (besides Advertising) that can be employed by Lancome for their Love Your Age campaign to promote their anti-aging serum, Advanced Genifique. (10 marks)
2. (c)Apply appropriate segmentation variables from at least two (2) segmentation bases to describe one (1) likely target market for Lancome's Advanced Genifique, an anti-aging serum. (7 marks)