LVL
Table Of Contents Introducing LVL Product Company Competitors Marketing Plan Proposal STP Customer Promotion Distribution Pricing
Product Features
Hydration Patented red light scanning technology
Calories
The Story of LVL The LVL band was initially created by Dustin Freckleton. Throughout his life, he had always known the importance of hydration, but never practiced staying hydrated consistently. One day, Freckleton, 24 years of age at the time, was going about his normal daily routine when he suddenly had a stroke. At the hospital, his doctors explained to him that the stroke had been caused by extreme dehydration. After this life-threatening event occurred, he had temporary partial paralysis and had to spend the next three months learning how to walk again. During this time, he questioned what this incident had taught him and how he could translate that experience and the importance of hydration to the rest of the world. Hence, the creation of the LVL hydration monitor.
24/7 calorie tracking Customized recommendations for improvement
Sleep Tracks sleep cycle Auto sleep function Alarm Clock
Heart Rate Tracks Heart Rate and HR zones
Activity
Meet the Team:
Tracks steps, distance, floors climbed, & more Smart coaching
Mood Intuitive input of Mood & Hydration analysis
Availible Now
LVL Hydration Monitor Band of your choice Charging cable Mobile app (iOS and Android) Color & Materials: Silicone Black, Space Cadet Leather Black, Brown Band Length Sizes: Small, Large
The overall design of the LVL hydration wristband is quiet simple and extremely easy to use. The companies designers created an OLED touch screen that displays results in color and additional buttons were included on the side of the screen for any extra information. The company collaborated with world-renown design company, frog, to create the design for the wearable. Currently, LVL provides three different designs for their costumers to choose from; Silicone, Brown Leather and Black Leather. In the future, the company plans on expanding the design options that their costumers can wear to coral (pink-red), aqua haze (blue-grey), uni (yellow-green), and space cadet (navy blue). The physical size of the device is 17MM X 45MM and the screen size is 12MM X 24MM.
The Future for LVL
Red Light Technology In order to obtain the most accurate results for consumer’s hydration levels, LVL spent over four years brainstorming, creating, experimenting, and developing the best possible technology that would be able accomplish those goals. After years of hard work, the company delivered a red light technology, which is a close parallel to infrared light. This technology has the power to measure 10 times deeper into the human body, which greatly enhances the accuracy in comparison to the green light technology that other wearables in the industry use. According to LVL, “the red light shines into the body using specialized and consumer grade LED’s. As the light passes through the body, each wavelength is absorbed and reshaped in a unique way that allows us to generate a spectrographic ‘picture’ of the water content and other physiologic activities happening in the body at that point in time...the accuracy is +/- 2.7 bpm compared to the average 14 bpm in other wearables.” The band is as accurate as urine, body weight and blood tests. Simultaneously, it is able to measure a person’s dehydration levels, as well as accurately assessing ones’ heart rate. In order to obtain this information and validate the technology’s success, the company endlessly tested over 250 subjects in what they call their sweat lab. In this unbelievably hot and dry environment, LVL asked their subjects to workout for 5 hours in an atmosphere of 102-105 degrees F and 60% humidity. The athlete remained dehydrated for over 2 hours of the workout. Once the subject reached a certain percentage in body weight loss, they were then hydrated over 100% of what they lost during the workout session.
BSX exceeded its $50,000 Kickstarter goal on the first day of the campaign.
Mission Located in Austin, Texas and founded in 2012, BSX Technologies is a wearable sensor company with an integrated optical sensor that simultaneously measures the body’s most critical bio signals including hydration, heart rate, respiratory rate, oxygen and more. At BSX we believe that everyone can improve how they feel and how they train. It all starts with measuring what matters.
Before LVL was created, BSX launched their business by selling a separate piece of fitness technology, BSX Insight, that industry experts predict can increase an athletes performance by 25%! Similar to the LVL band, it uses LED lights to look into a user’s muscles and patented lactate threshold technology that has the ability to measure aerobic and anaerobic fitness. The ultimate goal of this product is to allow users to optimize their training and workouts, as well as record improvements.The results have the same accuracy, if not better, as blood tests. The product is target toward both training and racing.
Competing Brands in The Market
HALO The only reason HALO is included as a top competitor is because it is the only other wearable on the market that has hydration monitoring as a feature on the technology. But when a consumer really looks into the overall features and benefits included in the band, there are a very minimal amount of both. Although HALO provides hydration monitoring, the technology lacks smart buttons, call/text notifications, a heart rate monitor, activity tracking, water resistance, and has a short battery life. The price of the band is $149.99, the current price of the pre-sale price of the LVL band. The HALO edge is the only product the company currently produces, there are no current reviews on the band, and the only place to find any information on the wearable technology is on HALO’s website. No fitness or heath companies are currently talking about HALO, which leaves consumers with many unanswered questions, but also a sense of wariness about the overall accuracy and value of the wearable. According to HALO’s website, their hydration monitor system is presented as this: Phase 1:Baseline Calibration Athletes wear the device for a few days during low activity periods to collect baseline data. This allows us to calibrate the initial hydration baseline for each individual. The baseline will refine over time as more data is collected, but this initial calibration gives us a great starting point. Phase 2:Daily Monitoring After the calibration we’ll lock in that baseline range, which will establish three player hydration zones: Euhydration (green) Zone, Hyperhydration (blue) Zone and Dehydration (red) zone. The H1 wearable device will display for your athletes in real-time which hydration zone they are in, allowing players to properly prepare for practices and games, and recover afterwards. Phase 3: Hydration Analytics Over time we can begin to analyze an individual’s overall hydration management. Are they improving or getting worse? How do they best recover, or what conditions cause them to dehydrate more easily? Halo’s hydration experts will help you analyze each of your players to discover their specific hydration needs.
FIBIT Comparing the Competition in the Market This dominating wearable company provides a total of 8 different technologies for their consumers. As quoted from their website, their mission is, “To empower and inspire you to live a healthier, more active life. We design products and experiences that fit seamlessly into your life so you can achieve your health and fitness goals, whatever they may be.” Fitbit offers wellness programs for their users such has, Fitbit Group Health, Fitter Personal Trainer, and PurePulse (heart rate technology). They supply to dozens of retailers such as Best Buy, Target, Walmart, Amazon, REI, Dick’s Sporting goods, and many more. Some of the features on a number of their wearable consist of call, text & calendar alerts, reminders to move (coming soon), up to 5 day battery life, music control, sleep tracking, and activity tracking. Like most wearables in the industry, they offer a phone app to go along with their bands that is updated consistently via bluetooth. Due to the vast popularity and house-hold name that this brand carries, Fitbit is undoubtably our biggest and most intense competitor. With the predication of the growth in the wearable technology industry, Fitbit is expected to continue to thrive and succeed. But the main feature that their technology lacks is the hydration monitor that leaves LVL with an enormous competitive advantage.
Looking at the comparing attributes between companies, it is important the note the highlighted sections that represent the added value the customer can recieve when purchasing the LVL device. LVL and Halo are the only devices on the current market that have hydration monitors. When comparing the two, LVL has an activity tracker, sleep monitor, heart rate monitor, and suffiecient battery life that Halo does not. Althoguh Halo specializes in hydration, the monitor technology is 10x less accurtate than LVL’s and we there for don’t find it to be much of a treat. Fitbit, however, already has the brand awareness and recognition that LVL is not close to. We argue that the additional $50 that LVL charges over both Fibit and Halo is meaningful because it gives the customer greater value through this extreme accurate technology of measuring hydration that no one brand has. According to BSXTechnologies, “A recent survey by the MEMS and the Sensor Industry Group polled 706 US consumers and showed that 63% of respondents believed that accuracy was a highly important feature and 74% would consider buying a new wearable if the accuracy could be shown to help them better manage their health”.
Segmenting the Wearable Market
Marketing Plan Proposal
MarS Insight March 2014
Take Aways: More women buy wearable tech, although more men buy specifically smart watches. The younger baby boomer (ages 35-45) buy the most amount of wearable tech products. Consumers tend to have higher incomes. Consumers tend to already have multiple electronic devices. (5 or more) According to Dan Rosenbaum from Wearable Tech Insider, about 16% of Americans own a form of wearable tech and over half of them are between the ages of 18-34 and 30% make more than $100,00 a year. “Nielsen found that smart watch owners valued functionality (81 percent) and comfort (79 percent). Fitness band owners wanted accuracy (70 percent), and battery life (64 percent). Durability was important to both sets of users.� - Survey conducted of over 2,300. Wearable Tech Insider 2015
Segments in the Market Customer 1: The intense workout fanatic who needs the endurance and energy to keep a workout going. These customers are between the ages of 20-45, have higher incomes, and understand the affect hydration has on physical activity. [The Competitive Athlete]
Customer 2: The Party go-getter who needs a night out from their busy work week, but can’t risk getting hungover the next day. They need to keep in touch with their hydration throughout the night to store energy for the morning. These customers also use this product for exercise and daily routines. Ages: 20-35, Middle to High Income, Urban lifestyle. [The Young Worker]
Customer 3: The 25-45 yr. old women with a higher income who cares about her body and staying healthy. She is a consumer of organic and natural products, exercises rather regularly, watches what she eats, and understands the importance of hydration. [The Health Nut]
Customer 4: The 20-45 year old woman who wants to turn her life around and get on a healthier track. These women are often looking for the easiest solution to get in better physical shape and will likely buy a product as a result. [The Solution Solver]
Customer 5: The 18-25 yeah millienial active student who wants to keep up with the latest technology inventions. This customers sees value in the new Red Light technology. [The Tech Savvy Millenial]
DMN3 July 2015 MarS Insight March 2014 DataMentors 2016
Target Customer Customer 3: The Health Nut
Segmenting Variables: Geographic: USA Demographics: women, parents, have families, 20-45, higher income, well educated, working past retirement (the older one gets, the more they tend to rely on others to stay physically active) Psychographics: balanced and healthy lifestyle, stay active (especially with others), play sports, lead busy lives, more accepting of cultural changes, enjoy traveling, Behavioral: purchase occasion - most likely only one time, research products, brand loyalty, buy products that offer multiple benefits Benefits Sought: convenience - can take wherever, whenever as long as it is charged, status - not a cheap buy, shows interest in health, fitness, success, education, maintain a healthy lifestyle and weight, easy to learn and understand.
Positioning Statement For the active women who cares about managing her health in the most efficient way, LVL is the only fitness monitor that tracks your exact hydration level through a red light technology that scans the amount of water in your body ten times more accurately than any wearable monitor seen before. LVL gives you the immediate analysis of your body’s activity, hydration, mood, sleep, caloric, and HR level with just a touch of the button.
Promotion Mix
How to Reach Baby Boomers
DMN3 July 2015
Baby Boomers and Social Media Usage
Analyzing The Data - Babyboomers are most influenced by search engines when learning about a company. Search engines are the main source og building brand awareness. This stresses the importance of online pressence through company website along with press and article shared online regarding the company. - Aside from search engines, Babyboomers are most effectied by word of mouth and how that is shared in their personal social media platforms (predominately in Facebook). These influencers will give Boomers that extra nudge to look up the brand or even to make the final purchase.
DMN3 July 2015
From a survey of 1,000 people 84.9% of Boomers said they use or belong to Facebook.
Facebook marketing includes sponsoring on sidebars, creating an intreging home page with brand updates, and forming eye-catching videos or articles are can be shared to go viral. According to Larisa Bedgood from DataMentor, “Over 27 million social networking users in the U.S. are over the age of 55, with almost 19 million of them active on Facebook specifically... They also prefer having one-to-one interaction with retailers and will use social sites simply to find contact information to get in touch with retailers through alternate channels such as phone or email�. It is crucial for LVL to make their online pressence on Facebook to be as clean and clear as ever so the target market can find the information the need easily. DataMentor 2016
2016
Facebook Mock Up for LVL
LVL Coupons and Awards Program On Kickstarter
Sales Promotion Mobile Coupon Rewards Mock Up
Coupons in the LVL marketing is crucial. Especially regarding out target market, coupons will give a large incentive to for both new and returning customers to invest in our brand. Many babyboomers are most intrigued with coupons presented on mobile devices especially through email. Accoding to Larisa Bedgood from DataMentors, “Baby Boomers also love coupons and sales and 75% are more likely to purchase if they have a coupon or loyalty discount.� It important to make coupons available to use on a mobile device as it is the fastest and most accessible platform. When giving the customer an incentive it is very important to make that interaction as clear and easy for the customer as possible.Customers should have the avaibility to recieving coupons by a physical copy and/or a mobile copy.
Synchrony Financial 2016
Examples of Special Events
Public Relations
Promotional and Special Events for LVL to Attend Garmin Triathlete Swimmers Promotional Event
Cycling events: Amgen Tour of California, USA Cycling Cyclo-cross National Championships Triathlons: Ironman 70.3 Boulder, Wildflower Triathlon, Chicago Triathlon, Escape from Alcatraz Marathons: Boston marathon, Chicago marathon, New York City marathon Ultramarathon: Badwater Ultramarathon Popular running races: AJC Peachtree Road Race (Already collaborated with Garmin)
Fitbit Marathon Promotional Event
Opinion Leaders The amount of brand and product awareness/recognition that can come out of collaborations and fitness events can cause the success of a business to skyrocket. In this specific example, Fitbit collaborated with the one of the worlds biggest fitness events on the planet, New York City Marathon. Not only does this partnership produce an immense amount of promotion for the company by simply having their name associated with the event, but also by Fitbit actually advertising their brand, products, and services at the race/fitness event. This type of event can get participants thinking about the product and later purchasing it to use while training for an upcoming event(s). By having company vendor booths placed within the race environment it provides them the opportunity to spread word of mouth, but also allows the business to make a substantial amount of sales during the event period. This is extremely important because it gives businesses the opportunity to directly interact with consumers who are interested in their product and want to learn more about it. Not only is sponsoring an event a great opportunity to interact with and meet new customers, but it is also a good way to meet other businesses that are not direct competitors. The best characteristic of being a sponsor is that most likely all of the people at the event are potential target customers. Due to Fitbit’s major success in the wearable industry, they have been able to fund their own fitness event called Tiberon for the past few years. It is a half marathon/5K race that takes place every year in California. They are sponsored by numerous health-promoting companies and donate the event’s proceeds to a handful of charities. This type of event promotes their business and product in an extremely positive manner and enhances the reputation of the company by being associated with these other businesses involved in the health world. In the future, we see BSX being able to create events similar to Fitbit’s Tiberon in order to promote the importance of hydration, staying active, and leading a maintaining a healthy life.
Ronda Rousey, UFC Fighter “People say this all the time and everyone like nods their head and is like ‘Oh yeah, totally,’ but no one ever does it, including myself. I can do better at it, is just drinking a lot of water, like a gallon and a half, two gallons a day, like straight water all day.”
Al Horford, Atlanta Hawks “I drink lots of water. Getting my rest; sleeping is very important. ... Those are things that allow me to work and prepare every day. ... It’s almost like a lifestyle. You have to sacrifice, especially the way that you eat. I think that determines a lot on how you’re going to perform.” Age: 27 Two- time NBA All-Star; two-time NCAA National Champion.
Jose Bautista, Toronto Blue Jays “My muscles get sore the next day if I don’t eat enough protein or drink enough water. Recovery time has a lot to do with diet.” Age: 32 Three-time MLB All-Star; two-time MLB Home Run Champion (2010-2011).
Sponsor Pitch 2016
Buzz Marketing
Distribution
Buzz Marketing is a great way for LVL get the word spread for them about their brand and product. Here is a great example of Buzz Marketing that has already happened to sponsor LVL from Bravo: “The fainting spell that Hillary Clinton experienced at the 9/11 memorial ceremony this year, and that made headlines worldwide, was actually a result of dehydration, not the pneumonia she’s been fighting. What could she have done to avoid it, besides remember to hydrate properly? And how can we remember to water ourselves throughout the day (or a night out), short of tattooing a reminder on both hands? A company called BSX Athletics has an idea: A new wearable hydration monitor called the LVL” - Aly Walansky
Fibit Top Retailers in USA
Retail Intermediaries Tech Stores
Top Tech Retailers for Wearable Devices: Best Buy Amazon REI Wynit Target Khols Best Buy is the second largest distribution retail store for wearable devices. Brands carried include: Fitbit and Garmin. Best Buy has over 16,000 stores across the United States. Already being a tech store with knowledgable sales associates, LVL will be exposed to a wide range of consumers. Amazon is the largest online retailer in the US. All competitors are seen as brands carried on amazon. (Providing over 124,000 wearable products). “For a small fee, Amazon will handle the majority of fulfillment and customer support tasks, which means zero phone calls, no shipping problems and less hassle for you, the merchant.� - Christian Martin from Entrepenuer. (DICKS SPORTING GOODS)
Recreational REI is an outdoor and fitness store that has almost 150 across the US. This store carries Garmin, Fitbit, and Misfit. REI targets a wide range of customers who love activity and the outdoors. By selling to REI, LVL will be introduced to a wide range of customers. WT | Wearable Technologies 2015
Examples of Credentials and Benefits
Retail Intermediaries Fitness Stores
Credentials of Selling to Best Buy: “Product: innovation and something that consumers want Packaging: retail centric packaging that captures the consumers eye and informs them of your product. Logistics: customer service, returns center, Electronic Data Interchange (EDI), forecasting and procurement. Marketing: what is the manufacturer doing to get their product and brand in front of consumers. Many options exist but the following should be highly considered: website, facebook, print, television, twitter, etc.. Financial Stability: selling into retail requires capital to build as well as warehouse and carry inventory for your product. This also includes potential investment required for signage, displays as well as promotions.”
Top Sporting Retailers for Wearable Devices: Dicks Sporting Goods Academy Sports & Outdoors Athleta
D. Landstrom Associates 2016
Benefits of Selling to Amazon: “Add new products to the Amazon catalog Have Amazon handle customer service, shipping, and fulfillment with Fulfillment by Amazon service for Amazon.com order Sell products in the US, Canada, Mexico or all three. Control what you sell and where, and manage your business from a single Amazon seller account. Use bulk listing and reporting tools from Amazon Marketplace Web Service** Customize your shipping rates for products other than Books, Music, Video, DVDs, Software, and Video Games Offer special promotions and gift wrap options for your products (does not apply to Books, Music, Video, DVDs, Software, and Video Games) Eligible for top placement on product detail pages” Amazon Services LLC. 2016
Dicks Sporting Goods’ headquarters is located in Eagle Wood Colorado. Starting in March of this year Dick’s bought over retail chain Sports Authority taking over 450 store spaces in 45 states across the US. Dick’s carries: Apple Watch, FitBit, Garmin with prices ranging from $399 to $34. Academy Sports & Outdoors has over 200 stores mostly in Southern and Western area in the US and has its headquarters in Katy Texas. This retail chain catagorizes merchandise through different exercises and sports. For wearable technology, it carries Fitbit, Garmin, Misfit, and Polar. The store has 137 different smart watches, 37 activity trackers, and 16 hear monitors. Athleta has over 40 stores in the United States with a strong eCommerce pressence. Although Athleta has not started carried any fitness tech, they do pick up other complimentary lines such as Swell water Bottle, POC helmets, eKO yoga mats, Nathan running lights, and Yurbuds headphones. This customer exemplifies LVL’s target market.
Number of Channels
Omnichannel Retailing
Producer
Suppliers
Suppliers
Suppliers
Suppliers
Wholesaler
LVL
LVL
LVL
LVL
Best Buy
Amazon
Dicks Sporting
Academy Sports
Retailer
LVL has a great oppurtunity to combine both ecommerce and instore retail distributions to further deepen the customers knowledge and relationship with the brand as a whole. Presenting the online store as clean and clear about the products we hope to raise interest of testing the product in stores. As this interest is raised, it is encouraged that consumers go to provided tech based stores to have a hands on trial experience with the product itself to increase product value and brand awareness. Awareness: According to ditya Kaul from Tractica, “Over the past few years, mobile has become an important retail channel for brands and stores, with mobile constituting 29% of e-commerce transactions in 2015, according to Criteo. Amazon saw more than 70% of its December 2015 holiday sales coming from mobile. But mobile goes beyond e-commerce, becoming the go-to place for people browsing products, checking prices, and researching products before making the final purchase.” Places to gain LVL brand awareness: Facebook ads, Email, LVL online store, Amazon, Best Buy, Dick’s Sporting Goods, Kickstarter
Consumer
Customer Channel 1
Customer Channel 2
Customer Channel 3
Customer Channel 4
Places to shop LVL on Mobile: eCommerce LVL online store, Amazon, Best Buy, Dick’s Sporting Goods, Tractica LLC 2016
LVL Mobile Channeling Mock Up
Segments Reacting to Different Distribution Channels Scale: 1-5
Segmented Markets Customer 1
Customer 3
Customer 4
$597
Word of Mouth
eCommerce
LVL
Brick & Morder
Amazon
4
3
4
3
3
2
5
4
4
3
4
5
4
2
5 DMN3 July 2015
MarS Insight March 2014 DataMentors 2016
This is an overall analysis of how these market segments will react to the different platforms of channels. Although our focus is on the target market, Customer 3, we can still use distrubution tools to appeal to our top three most profitable segments. Our most important platform of influence is facebook and eCommerce. The babyboomers will be influenced by viral postings, videos, and statuses that friends post regarding the brand to raise awareness. Then the customer will go to onelvl.com to try to understand the brand on a deeper level. With the easy access of online, it is Lvl’s hope that customers are encouraged by the convenience of purchaseing online that they will.
Kickstarter Prices
Original pledge goal was $50,000. Since their pledge, they have accumulated $1, 186,983 Price(s): Super Early Bird Special: $99 Super Early Bird Extended: $109 Early Bird: $119 Regular: $129
Price
Two Band Bundle Super Early Birth Special: $198 Two Band Bundle Super Early Bird: $219 Two Band Bundle Early Bird: $238 Two Band Bundle Regular: $249 Five Band Super Early Bird Special: $495 Five Band Bundle Developers Special: $499 Five Band Bundle Early Bird: $545 Pre-order Special: $149.99 Regular Market Price: $199.99
Value Added Pricing Strategy
Fixed Costs
Executive Salaries, Rent, Heat, Property Taxes , Insurance, Interest Expense
Because the LVL hydration monitor offers consumers an added bonus in features (wristband) and benefits (to their health), we have chosen to include the technology in the value-added price category. The reason we believe that it is associated with value added pricing is because it supplies customers with an entirely new set of health information that no other wearables on the market provide. Companies such as Fitbit, Garmin, and Misfit all present extremely similar features when compared to one another, which is why the hydration monitor puts LVL on a completely heightened “LVL.� This feature is able to differentiate the technology from the rest of the competitors to the point where BSX is able to raise the price of their product. The LVL user is willing to pay more because they know they are receiving more value, but also because they want a greater experience.
Indeed 2016
Appendix Total Economic Value
TEV = cost of the next-best alternative + value of the performacne differential
The next best alternative to the $200 LVL hydration monitor is Fitbit Charge2 at $149.95. The value of performance that makes LVL better than the Charge2 is the hydration monitor and the increased accuracy due to the red light technology. BSX technology claims that this advancement is 10 times more accurate than the competing green light technology. This added value makes up for the $50 extra cost that LVL charges its consumers.
Estimated Future Annual Revenues
Wearable Technology Opens Doors of New Benefits for Channeling
Wearable technology stands as its own emerging channel. Companies have an incredible new opportunity to really get to know their consumer by being with them as they move throughout their day. Not only do wearables create an immensely personal experience because the results are specific to the customer, but the companies are directly communicating with their end users. By these companies developing new features, benefits, and insights into their consumers lives, it throughly deepens that business to customer relationship.
“The sweet spot for wearables today is utility. There’s a stunning range of fitness devices that provide a flood of data like heart rate, calories burned, perspiration, movement, distance, location, and more. While the data itself might be interesting at first, people purchase those products to make a meaningful difference in their lives; to become healthier, fitter, better rested, happier. As Aaron Filner, a product manager at Facebook told me:
Kickstarter revenues since July (4 months) = $1,186,983
‘If a device doesn’t help someone change their behavior, how long will they keep using it? It needs to make a difference to be valuable over the long term.’ ”
One year revenue: $1,186,983 X 3(4 months) = $3,560,949
Artefact 2016
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