ARION

Market

Target market

ARION has potential in a wide variety of markets. To ensure focus we initially targeted more dedicated and experienced runners, establishing common touch points through which we can efficiently reach them, e.g. presence at marathon expos, running clubs and in running focused press, media, and distribution channels.

We expect this niche to be the influencers of the running community, thereby creating a gateway to the broader consumer running market. To leverage this opportunity we are introducing a lower price point product, ARION Lite, a more affordable option intended to appeal to this broader segment. To validate this approach, we plan to launch ARION Lite in September 2018. We feel this will create 3 product price points for the various market segments;

Geographically, our marketing efforts are currently focused on Europe, especially in the UK and the Netherlands. We aim to grow more internationally through engaging distributors and strategic partners, including US and Asian markets.

From the earliest product design stages we worked closely with the running community to ensure ARION meets our customers’ needs. This co-creation process continues today, with regular upgrades delivered via remote software and firmware updates. Via these remote updates ARION’s hardware platform can also be quickly adapted for other applications such as cycling, fitness, other sports and towards new markets such as health and medical. This flexibility means we can respond quickly to changes in the market and provide potential for future expansion and scaling.

We see the consumer running market as a viable business proposition on its own, as well as a stepping stone towards other markets. E.g. injured runners visit physiotherapists & podiatrists, a natural interface through which to introduce ARION. We are currently working with clinics to demonstrate the utility of ARION as a rehabilitation tool.

Characteristics of target market

Market reports consistently project strong growth in the international wearable electronics segment with an estimated CAGR of 35% and the total market expected to grow to $70 Billion by 2022.

Sports, health, fitness & lifestyle applications represent some of the fastest growing sectors, fitting our current focus and future ambitions. More specifically there are an estimated 100 million runners in Europe and USA. This market is broad & diverse with different ages, gender, income, etc. To ensure focus we initially target more dedicated & experienced runners who are typically:. highly educated with above average income, run more than once a week, use running wearables, read running magazines, visit specialist running stores and attend events.

Based on our own market research, runners in this group identify technique advice/tracking as the most missed feature of existing wearables.

We see this focus helps us efficiently target marketing and product development efforts. We think runners in this niche are influencers in the broader recreational market, helping us access a larger market as we scale.

Marketing strategy

We are building a brand associated with high quality & expertise with a vision to make latest exercise sciences accessible to runners through our products & services. With valuable original content and personal interaction we have already begun expanding an engaged community.

To attract leads at scale we use a push strategy driven by powerful marketing automation, tuned towards the appropriate phase of the customer journey:.

1. AWARENESS.
ARION actively generates awareness via touch points common to our target customers at events such as marathon expos, through press & media, and tactics like targeted video ads on social media.

2. CONSIDERATION.
We retarget customers to direct them to valuable content. We attract them to our email list through our newsletter, or encouraging them to try the free ARION app & online dashboard.

3. PURCHASE.
A combination of targeted direct email and advertising with testimonials and product content to encourage conversion.

4. LOYALTY.
We track product usage, provide users with appropriate content, and achieve consistently high customer care ratings. This helps customers remain active, become brand ambassadors and recommend ARION.

Competition strategy

Existing running devices track metrics (e.g. speed, distance, heartrate, etc.) that tell you *what* you do but there are few options that help you understand *how* you run. We believe we address this need with a unique & innovative solution, positioning ARION in a relatively un-competed niche of the running market.

Scientific research and our co-creation strategy means ARION is a product developed by runners, for runners. Our patents, ongoing user engagement and ever-growing database, ensure we continually optimise our product & services and stay ahead of emerging competition.

Key differentiators include:.

• 7+ years of research and 7 patents.
• Ultra-thin printed electronic insoles so ARION fits in any shoe, under a runner’s own insole.
• Real-time feedback and AI coaching engine that helps address *how* you run, guiding technique and adapting training every session.
• The freedom to run without your phone and sync data after each session.
• Comprehensive, ever-growing database creating a platform for future algorithm, service and product development.
• Future proofed, feature-rich hardware, upgradeable remotely, which can be adapted towards multiple applications.

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