Nest Learning Thermostat
The value proposition of the Nest Learning Thermostat states it can improve efficiency and reduce household energy bills up to twenty percent (Nest, 2012). After analyzing the various elements of marketing and their influences, it is clear Nest Labs, Inc. is thoroughly prepared to dominate in the field of smart thermostats. Nets Labs, Inc. has built a solid, differentiated product that aims directly at their target market and demographics. The focus of the Nest Learning Thermostat to be energy and cost efficient is both smart and effective (Nest, 2012).
In today’s society, investing in the Nest Learning Thermostat may prove to be a smart decision. Product Name This paper will focus on the Nest Learning Thermostat which is manufactured by Nest Labs, Inc. Product Description The Nest Learning Thermostat is the first ‘smart’ thermostat on the market created to learn from a person’s lifestyle. During installation, a few behavioral questions are asked and throughout the first week, the homeowner is told to ‘teach’ the Nest when to change temperature settings. By doing so, the Nest ‘learns’ or records the homeowner’s day to day schedule (Nest, 2012).
Nest Labs, Inc. hopes the look of the thermostat will spark interest, become a conversational piece and drive awareness for their product (Levy, 2011). The Nest Learning Thermostat is a small, chic looking thermostat with modern appeal. Some features of the thermostat include: Auto-Away, Nest Sense, Energy History, Airwave, and the Nest Leaf (Nest, 2012). Product & Firm History Nest Labs, Inc. was started in 2010 by Tony Fadell and Matt Rogers. They met at Apple and were key contributors to the creation and software development of multiple generations of Apple’s IPods and IPhones (Nieva, 2012).
Nest Labs, Inc. is based out of Palo Alto, California. The first generation Nest Learning Thermostat was launched in October of 2011. It is available in multiple stores now and is marketed as a ‘do-it-yourself’’ installation unless you prefer not to, then you can also purchase certified installation (Nest, 2012). The Traditional 4Ps Product The Nest Learning Thermometer provides innovative technology through its multiple features. The energy efficient thermometer’s sizing is compact yet modernly attractive. It is circular with an outer diameter of 3. 20 inches and is 1. 44 inch thick.
The outside barrel ring is made of brushed stainless steel which helps it to blend in with its surroundings through reflection of wall coloring. It contains a bright 1. 75 inch diameter LCD screen and is powered by a built-in rechargeable lithium ion battery (Nest, 2012). The Auto-Away feature adjusts the heating and cooling temperatures automatically when no one is home (Nest, 2012). It is able to do this through the Nest Sense feature. The thermostat has two activity sensors, for near and far, which span a 150 degrees wide angle in order to detect movement and know when it can resort to the Auto-Away feature.
This is set to happen about two hours after everyone has left (Pogue, 2011). Energy History provides a breakdown of when heating and cooling was used within the most recent ten days and whether the homeowner’s adjustments, the weather or being away significantly affected energy usage (Roger, 2012). The thermostat can access live weather forecasts through its Wi-Fi connection and determine how the temperature within the home may be affected by this (Nest, 2012). The homeowner may manually set the thermostat to Away mode when they are going to be away from the house for an extended period of time.
The manual Away mode is to ensure the activity sensors do not pick up movement from things such as animals or neighbors tending to the home, which could re-activate the heating and cooling systems (Teaching Nest, 2011). Airwave automatically turns off the heating or cooling a few minutes early when humidity in the home is low (Haque, 2012), but allows the fan to continue running so the air stays at the correct temperature while the unit runs up to thirty percent less. This is possible through the Nest Learning Thermostat’s humidity sensors, which detect when conditions are acceptable for energy saving (Meet Airwave, 2012).
Other features include computer web applications and mobile applications for iPhones and Android Smart Phones to access energy savings reports, adjust temperatures in homes and ensure all systems are in the same mode (Mlot, 2012). Multiple thermostats in one home and up to two homes overall can be controlled under one Nest Account (Teaching Nest, 2011). Place The Nest Learning Thermostat can be purchased from the official Nest website, Amazon. com, the Apple Store, most Lowe’s Hardware stores, as well as some Best Buy and local retailing stores.
Product can be shipped directly to the household via FedEx or UPS dependent upon the retailer you choose. Nest now ships to Canada as well (Nest, 2012). Price Standard pricing for the Nest Learning Thermostat is $249. 00. Installation fees of $119. 00 for the first unit plus $25. 00 for each additional unit can also be added if the homeowner wishes to have certified installation (Nest, 2012). Promotion Nest Labs, Inc. has multiple partnerships with the Apple Store, Amazon. com and Lowe’s Hardware stores to promote the Nest Learning Thermostat.
As the product is growing, multiple Best Buy and local retail store locations are also promoting the sales of this product. The New 4P’s People Tony Fadell, Co-Founder and Chief Executive Officer, earned his Bachelor of Science in Computer Engineering from the University of Michigan, previously worked for Apple and Phillips Electronics as well has authored over 100 patents. Matt Rogers, Co-Founder and Vice President of Engineering, earned his Bachelor of Science and Master of Science degrees from Carnegie Mellon University and previously worked for Apple.
Alongside Tony Fadell and Matt Rogers, many other employees play key roles in the success of the company. Processes The Nest Learning Thermostat is creative, disciplined, and has structure. Nest Labs, Inc. has created a breakthrough product; professionally marketing manages this product through a structured website, and has created mutually beneficial long-term relationships with multiple sources. A few of these relationships include: Google Ventures, Shasta Ventures and intertrust (Nest, 2012).
The company has complied with all of the strategies behind processes mentioned in Kotler and Keller’s book, Marketing Management (Kotler & Keller, 2012, p. 25). Program Kotler and Keller define programs as all consumer-directed activities, encompassing the old four P’s (as described above) and a range of other marketing activities which might not fit as easily into the old view of marketing (Kotler & Keller, 2012, p. 25). Nest Labs, Inc. takes a very Holistic Marketing approach when promoting their product by being very consumer-oriented.
Performance Kotler and Keller define performance as capturing the range of possible outcome measures which have financial, nonfinancial implications as well as those beyond the company itself (Kotler & Keller, 2012, p. 26). One the Nest Learning Thermometer achieves is social responsibility through it economical approach to saving energy, personal costs, and the environment (Nest, 2012). Demographic Trends & the Nest Learning Thermostat Demographic trends expose developments and changes in human population (Myron, 2012).
According to Paul Salmon in his article “Technology for Your Home Energy Management”, home automation is no longer targeted to towards the wealthiest demographics (Salmon, 2012). It is estimated that home energy management is expected to have a market penetration rate exceeding 60 percent by 2022. Making its’ mark within the home automation market segment, the Nest Learning Thermostat is leading the product within home automation with its appeal toward demographics due to economic turmoil and technological advances. Economic Trends & the Nest Learning Thermostat
The recent economic downturn proved that trends affecting purchasing power can have a strong impact on businesses whose products are geared toward high-income and price-sensitive consumers (Kotler & Keller, 2012, p. 77). It may have a price tag over $200; however, Nest Labs, Inc. claims that you can ultimately save over $6,000 over the 20-year life of the household heating and cooling system (Nest Labs, 2012). Regardless of a persons’ given demographic, the current economic turmoil in the United States has spawned a lifestyle change encouraging products that increase efficiency resulting in saving money.
Technological Trends & the Nest Learning Thermostat With a major technological trend such as energy efficiency and conservation, many companies are beginning to invest in ways to save money with everyday home products. The Nest Labs, Inc. took an everyday household product and turned it into a technologically-savvy instrument that is capable of saving thousands of dollars (Nest Labs, 2012). With this innovation in technology, ‘old age’ thermostat providers face a threat for potential decline if the Nest Learning Thermostat and other ‘smart’ thermostat technologies grow quickly.
Currently ‘old age’ thermostat providers have an advantage over the Nest due to initial costs and the United States current economy; however, with innovation in technology comes economic growth and the accelerating pace of change will allow the Nest Learning Thermostat to be a potentially major new technology (Kotler & Keller, 2012, pp. 81-84). Cultural, Personal, & Social Influences Cultural, personal, and social influences can help businesses decide what products consumers will be interested in purchasing.
An example of personal and social influences can be related to reviews that a product will receive based on consumers and social media outlets. Over 70 percent of products or services investigated for online reviews are within the electronic department. It is estimated that 82 percent of people are directly influenced by these reviews when purchasing a product online. When highly popularized and trusted media outlets such as the Wall Street Journal, the New York Times, MSNBC, and the Huffington Post write reviews about a particular product, it can directly influence the product a company produces (Editorial, 2012). Since its launch in October 2011, Nest has earned rave reviews and more than 15 awards – from Good Housekeeping’s VIP Award to CNET’s coveted five-star rating” (Nest, 2012). Social influences are already promoting the Nest Learning Thermostat positively. In today’s society, culture has influenced the United States to become more environmentally and economically friendly. Analyzing the Consumer Market Cultural Factors Nest Labs, Inc. created the Nest Learning Thermostat aiming for an improved efficiency for the household heating and cooling system, resulting with a noticeably lower energy bill.
Their main focus for the Nest Learning Thermostat successfully meets that of the efficiency and practicality dimensions of cultural factors (Nest Labs, 2012). According to the Bureau of Labor Statistics, in a society where unemployment rate is still over eight percent and gas prices fluctuate continuously, it is practical to assume that saving money will appeal greatly to most people (Labor Force, 2012). Social Factors Social factors refer to reference groups, family and social roles as well as statuses that affect buying behavior (Kotler & Keller, 2012, p. 153).
In terms of the Nest Learning Thermostat, the hope is that the social roles the founders play will influence trust and buying behavior in consumers. Personal Factors The personal characteristics variable takes into account how similar a company wants its customers to be to them, consumer’s attitudes towards risks and their loyalty to their suppliers (Kotler & Keller, 2012, p. 230). Nest Labs, Inc. should focus their marketing to those consumers who are similar in beliefs to their own. One marketing focus should be environmental awareness, looking into energy as the main subject. Nest should market primarily to risk-avoiding consumers.
This is because risk-taking consumers are more likely to discover the product and try it with much less persuasion efforts. The risk-avoiding customers may result in the largest quantity of sales once they accept the new technology. Psychological Factors Psychological factors also play a major role in understanding consumer behavior. Freud, Maslow, and Herzberg all theorized about how people are influenced and motivated. Freud’s overall theory is that people are motivated more so by unconscious needs and wants. Maslow’s theory believes that people are motivated by particular needs at certain times.
Herzberg theory is based off dissatisfactions and satisfiers and how they play off one another (Kotler & Keller, 2012, pp. 160-161). Consumer Behavior There are many aspects of consumer behavior that one can consider when developing a marketing plan. Retail chains will have to be explored as well as Business to Business models to explore the true market distribution potential of this product. (Ridell, 2012). Market Segments The primary and secondary target markets Nest Labs, Inc. should pursue are those who are environmentally aware and eco-friendly. Market Variables
Demographic Segmentation is affected by multiple variables such as: age, gender, life stage and cycle, income, occupation, generation, as well as race and culture (Kotler & Keller, 2012, p. 216-225). With Nest Labs, Inc. focusing on one product alone, they have to determine ways to make the thermostat marketable to multiple demographics. Different ages and generation types view products in different manners. Different occupations may expose someone to this product more frequently than others. Those with higher incomes will be able to purchase the product with less consideration than those with lower incomes.
Different races and cultures may require different marketing approaches to reach consumers. Nest Labs, Inc. needs to ensure they do not generalize about people within these different groups or discriminate against them, as most marketers tend to do (Davidson, 2009). Geographic Segmentation breaks the market into multiple regions dependent upon location, sizes according to population, the density in terms of urban, suburban or rural, as well as climate. Geographic segmentation can help a company determine where they have business and the areas they need to focus on marketing with the appropriate marketing approach.
This helps to build personalized relationships with customers and is becoming known as grassroots marketing (Kotler & Keller, 2012, p. 214). Currently, Nest Labs, Inc. only services the United States and Canada (Nest, 2012). While this decreases the number of regions to market to, there are still multiple geographic facets to research and explore. For example, the west and east coasts are much more populated than the Midwest region. New York, New York is considered urban whereas the small country town of Rustburg, Virginia is considered rural.
The climate in the state of Georgia is much different than that in the state of Oregon. Larger populations have the potential to lead to more sales, yet with this, the cost of marketing also increases. The Nest Learning Thermostat’s humidity sensors and Airwave feature may be of better use in the western region where humidity is not as large of an issue (Hovis, 2005). Thus, Nest Labs, Inc. could use geographic segmentation to market the Airwave feature to the western region while determining and focusing on a different feature to advertise to the eastern region of the United States.
Segment Attractiveness Possibly the most effective way for Nest Labs, Inc. to evaluate their most attractive and profitable market is to use a Potential Rating Index by Zip Markets, better known as PRIZM NE. This approach was created by Nielsen Claritas and classifies over half a million United States neighborhoods into 14 groups and 66 lifestyle segments referred to as clusters. The groupings use education and affluence, family life cycle, urbanization, race and ethnicity and mobility as major categories to break each cluster down (Kotler & Keller, 2012, p. 15-216). Nest Labs, Inc. could use this approach to identify which demographics, operating variables, situational and personal characteristics of each cluster best fit their company’s objectives and resources. Product Specialization Product specialization sells a certain product to several market segments. The advantage of product specialization is being able to sell to a larger market range; however, advancements in technology can supersede specific products (Kotler & Keller, 2012, p. 234). Product specialization is possible for Nest Labs, Inc. ut it may not be the best market segment option because they do not want to be replaced by others. In order to avoid this, Nest Labs, Inc. may need to update their product as technology advances. Target Market The target markets for Nest Labs, Inc. Nest Learning Thermostat can range over many different segment types. The thermostat can currently only be shipped to the United States and Canada eliminating numerous geographic segments as potential markets; however, the company still has multiple regional target markets within this nation.
This product is not geared towards segments dependent upon population or density, but climate may have an effect on the success of its marketability. The Nest Learning Thermostat’s humidity sensors and Airwave feature may be of better use in the western region where humidity is not as large of an issue (Hovis, 2005) and thus allowing for larger energy savings. Nest Labs, Inc. provides an installation kit as well as online tutorials to guide consumers through use of the thermostat. Hopefully, this will encourage technologically illiterate consumers to consider the product.
This product costs $249. 00 prior to optional installation, tax and shipping fees (Nest, 2012). This price point plays a large role in the income base of customers the thermostat can or will attract. Though pricing could raise issues, Nest Labs, Inc. does not market towards a certain social class. They try to explain the long-term savings in their marketing and thus target anyone who is willing to pay the upfront cost. With one of the company’s main marketing strategy being saving energy, the product is targeted at those who are environmentally aware and eco-friendly.
Customer Needs The Nest Learning Thermostat addresses multiple needs for the target market(s). Nest Labs, Inc. claims they can save consumers as much as $173. 00 per year and approximately $6000. 00 over a 20 year span. This shows the product will pay for itself in only 2 years and from there save the consumer money (Nest, 2012). Energy History provides a breakdown of when heating and cooling was used within the most recent ten days and whether the homeowner’s adjustments, the weather or being away significantly affected energy usage (Rogers, 2012).
From this, the consumer is able to evaluate their usage and determine ways they can reduce and save more. A company’s positioning is defined as the act of designing one’s offering and image to create a distinctive place in the middle of the target market. In order for a company to stand out their positioning would have to show present and future aspirations, considering the competition’s strength and weaknesses (Kotler & Keller, pp 276-284).
A suitable positioning statement for the Nest Learning Thermostat would be “ For the United States and Canada, Nest is the Innovation that delivers home efficiency both economically and environmentally, focusing on redefining corporate responsibility through social and environmental efforts. ” This would be appropriate because it establishes current deliverables as well as aspirations of redefining corporate responsibility which is a unique difference from competitors. Competition Nest Labs, Inc. as become a market challenger by creating the learning thermostat and with this is testing the lead competitor’s control over this specific market (Kotler & Keller, 2012, pp. 301-303). Nest Labs, Inc. ’s largest competitor is the market leader; Honeywell International, Inc. Honeywell traces its origins back to 1885 in the thermostat market (Honeywell, 2012). Another competitor is Venstar, who is the creator of the Color Touch Thermostat, one which is very similar in traits to Nest.
Although it is comparable in the advancement of technologically produced thermostats, it does not meet the goals and initiatives offered by the Nest Learning Thermostat (Venstar, 2012). Product Branding According to Kotler and Keller in Marketing Management, a brand is referred to as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and differentiate them from those of competitors” (Kotler & Keller, 2012, p. 241). The main goal of branding is to establish noticeable differences between available products within their target market for consumers.
Nest has taken the role of a responsive and anticipative marketer when it comes to thermostats by creating the newest technology in the market. It is responsive to the current United States economy by focusing on costs as a top priority and it is anticipative of the future technology of thermostats as well as the growing focus on being environmentally sound. Services A service is defined as any act or performance, whether tied to a physical product or not, in which one party can offer to another that is basically intangible and does not result in the ownership of anything (Kotler & Keller, 2012, p. 56). Incorporating support services along with a product can improve perceptions of the subject company and its products. Buyers of the Nest Learning Thermostat may want and need installation services and “how-to” support in order to use the product. Nest Labs, Inc. offers installation services at an additional cost to the customer in which a professional will install the product in the consumer’s home and instruct them on the use of the thermostat. The main competitor, Honeywell International, Inc. offers similar support services to that of the Nest Learning Thermostat. Along with professional installation, Honeywell offers product registration to track purchase date and warranty, reminder emails for things such as when to change the battery, as well as Honeywell will help the consumer find their specific model number if it is unknown, the owner’s manual to that model number and replacement parts as needed (Honeywell, 2012). Extra efforts such as these help contribute to Honeywell International, Inc. being the leading manufacturer of thermostats.
A post-sale service or after sales service is a periodic or as-required maintenance of a product by the manufacturer or supplier during and after the product warranty (BusinessDictionary. com, 2012). One post-sale service in which consumers of the Nest Learning Thermostat may want or need is tips on how to save energy and money during the use of the product. Nest Labs, Inc. provides the Nest Energy Report to the consumer, giving specified money and energy saving tips for each home on a month to month basis (Nest, 2012).
Another post-sale service which consumers may need or want in order to handle repair services would be professional repair and check-ins from certified installers. An idea for Nest Labs, Inc. could be to provide a post-sale “check-up” in which the certified installers make a visit to the home between one to two months after installation. During this check-up, the consumer would have the ability to ask questions about their first Nest Energy Report as well as any operational aspects of the actual thermostat and its functions.
The certified installers should also be available for free maintenance and repairs as necessary during the limited warranty of the thermostat. As well as free repairs during the limited warranty, Nest could look into extending their warranty longer than five years (Nest, 2012). This could give them an advantage over competitors because as long as their product can function for the set amount of time, consumers could assume the product quality is potentially better than others. Another idea for Nest Labs, Inc. ould be to add reminders, such as when to change the battery, through either email or the Nest Energy Report as an additional service to the consumer. Repair and additional service efforts from Nest Labs, Inc. concerning the Nest Learning Thermostat could hopefully only increase customer satisfaction. With a one time “check-up” and additional support being available as needed, Nest would be reliable as well as responsive and not set unattainable customer expectations (Kotler & Keller, 2012, pp. 373-375). Pricing
Geographical pricing refers to how a business prices their product to consumers of various geographical locations. These prices include the cost of shipping. The company must first decide whether it is logical for their company to charge higher shipping costs for distant consumers, or allow them a price incentive to help achieve more business (Kotler & Keller, 2012, p. 404). The Nest Learning thermostat has a standard cost of $249. 00. This cost is paramount to every retail store that sells the product including Amazon, Apple, Lowes, and your local certified professional stores.
The shipping costs for Amazon, Apple, and Lowes often vary; however, they come with standard shipping options. For example, the Nest Learning Thermostat website offers three terms of shipping: Ground, Second Day, and Next Day. Ground shipping costs $9. 99. Second Day shipping costs $14. 99. Nest Day shipping costs $19. 99 (Nest Labs, 2012). Pricing discounts offers consumers the chance to buy a company’s product at discounted rate and give additional allowance to people who want to make early payments, volume purchases, or buy a product off-season.
Each company will offer these various discounts for variety of reasons including the ability to appeal and win consumers through a discounted price, and selling the product for a lower price when demand is low and supply is high (Kotler & Keller, 2012, p. 405). Being cautious of the various discounts and allowances given is vital for the success of the company; it can have a negative impact for those who wish not to buy “cheap” products. Since Nest Labs, Inc. created the Nest Learning Thermostat, the company has not been known to give discounted prices or allowances; they let the product save consumers money.
Most recently, however, the company has been working behind the scenes with Reliant, a Texas-based energy provider. The contract gives Reliant customer’s a Nest Learning Thermostat in their home when signing a new two-year contract that compensates for a fixed price rate (Hammond, 2012). Because the company is gaining more and more interest, Nest Labs, Inc. has begun to work with various energy providers to sell their product. In the end, Nest Labs, Inc. will still receive their base price of $249. 00 (Molly, 2012).
Promotional pricing involves a technique that many companies use through giving their product special pricing to appeal to consumers. Some examples include special event pricing, special customer pricing, cash rebates, and warranties and service contracts. Promotional pricing is often very effective as it attracts attention to their product that may not have otherwise existed (Kotler & Keller, 2012, p. 405). The Nest Learning Thermostat does not offer special pricing or rebates; however, you can opt to purchase professional installation when buying from their website.
The cost for professional installation is $119. 00, and $25 for each additional household thermostat. While the cost of professional installation is high, the product price does include a limited 5-year warranty. The company is currently in negotiation with various energy suppliers to offer their product to consumers who wish to sign a contract (Nest Labs, 2012). Many companies choose to differentiate their products’ price against similar products, differences in consumers, locations, etc.
It is important for a company to be careful of price discrimination which can occur when a company “sells a product or service at two or more prices that do not reflect a proportional difference in costs. There are several degrees of price discrimination that can occur including first degree, second degree, and third degree price discrimination (Keller & Kotler, 2012, pp. 406-407). Nest Labs, Inc. does not have any structure that avails to any terms of price discrimination. When purchasing through their company or through a retail company sponsored by Nest Labs, Inc. the price is standard (Nest Labs, 2012). This does not mean that eBay would not offer special pricing from individuals who are selling their current Nest Learning Thermostat. The Nest Learning Thermostat is one of the most advanced thermostats on the market. No other thermostat meets the technology and performance of this thermostat; however, there are several thermostats that are stated to offer similar performance capabilities. One thermostat in particular is the Venstar Colortouch Thermostat (Venstar, 2012). The pricing of this particular thermostat is around $175. 0 when purchased on Amazon, and is variable depending upon which website it is purchased. Although the Nest Learning Thermostat is priced higher, the Nest Labs, Inc. statement of 20 percent energy savings is much higher than that of Venstar (Nest Labs, 2012). Venstar does not state an energy saving percentage (Venstar, 2012). The pricing strategy that is implemented by Nest Labs, Inc. is very promising. Their implementation of stable pricing across all retailers, including themselves, shows that they are confident in their product and its ability to save consumers money.
A one-time fee of $249. 00 can be priceless when compared to thousands of dollars in energy bill savings. There extended 5 year limited warranty on their product even furthers the development of their confidence in their product. Promotions Kotler and Keller defines the definition of integrated marketing communications as “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. Integrated marketing communications combines several communication disciplines such as advertising, direct response, sales promotion, and public relations. These various disciplines are then studied and implemented strategically together to create a strong, clear message (Kotler & Keller, 2012, p. 495). The Nest Learning Thermostat primarily uses the internet as means of marketing their product. They use their homepage to promote the product and the various elements that create the uniqueness of the thermostat. Nest Labs, Inc. lso utilizes a popular video sharing website, YouTube, to advertise their product to the online community. As the Nest Learning Thermostat continues to build its’ company, more internet advertisements can help power the awareness of this product, and help sponsor more prospective consumers. Kotler and Keller in Marketing Management state that social media is a means for consumers to share text, images, audio, and video information with one another and with companies (Kotler & Keller, 2012 p. 546). Some of these examples include online communities and forums, blogs, and social networks.
Utilizing these various media outlets enables consumers to become “engaged” with a particular product, thus producing a more productive consumer. The Nest Learning Thermostat has utilized many forms of social media. For example, there have been many reviews and blogs written about this particular product. Not only does Nest Labs, Inc. provide a blog on their website, but major newspapers have headlined this product in their blogs promoting the creation of a thermostat that is energy efficient, and saves money. Some of these major newspapers include The Wall Street Journal and New York Times.
Nest Labs, Inc. has also advertised with articles written in various magazines, both hard copies and online, that help promote their product. For instance there is an article in Time Magazine, both the physical copies and online editions that promote the Nest Learning Thermostat (Nest Labs, 2012). As stated earlier, Nest Labs, Inc. has incorporated the use of YouTube to help their online marketing. There are various video’s available online that show an extensive overview of the product and its’ capabilities (Nest Labs, 2012).
This allows prospective consumers to easily share the audio and video to other consumers and businesses, promoting a more productive way of marketing. Many retailers are now selling the Nest Learning Thermostat, enabling consumers to purchase this product through their local heating and cooling department store. One store in particular that carries this product is Lowe’s Hardware. If the store does not carry the product in a certain location, a purchase can be made online and shipped to the nearest store (Nest Labs, 2012).
This promotes convenience, which is what inspires many companies to utilize marketing through internet and social media’s. Both the Internet and Social Media powers the promotion of the Nest Learning Thermostat. Each provides beneficial marketing of the product which allows Nest Labs, Inc. to reach a broad spectrum of consumers. As the company continues to grow, the company can then begin to use other media outlets such as television advertisements, and billboards in their marketing and promotion plan; however, they are having huge success with their current marketing plans.
According to Digital Trends, the Nest Learning Thermostat had such huge demand when they began operation in late 2011 that they were sold out through the beginning of 2012, causing the store to temporarily shut down the Nest Learning Thermostat online order page (Duncan, 2011). With the success they have had thus far, the Nest Learning Thermostat proves it can be one of the most life-changing products for consumers. Socially Responsible Marketing It is argued that organizations who adopt the societal marketing concept will e the ones most likely to make long-run profits as well as be beneficial to society as a whole (Abratt & Sacks, 1988). Three main suggestions for Nest Labs, Inc. to address in order for the company to become more socially responsible are: procure from sustainable companies, put emphasis on being ethically compliant in every decision made, and focus their efforts on the environment from the beginning of manufacturing to the end in how the thermostat operates. Nest currently makes many efforts to produce and provide their product not only to help the consumer save energy and money, but to also address the product’s lifetime effect.
Among a few of their efforts, Nest Labs, Inc. is fully compliant with the Restriction of Hazardous Substances Directive (RoHS), outsources supplies from well-known corporations overseas who comply with no child labor regulations, and is developing an auditing process for worker safety (Nest, 2012). In order to be viewed as a socially responsible company, Nest Labs, Inc. will need to continue in these efforts as well as aspire for larger goals. Conclusion & Recommendations In summary, The Nest Thermostat is a technological breakthrough that is setting the standard for the future of ‘smart’ thermostats.