Economic turmoil has influenced a society where saving money is a top priority for every household. It is estimated that over 50 percent of a household energy bill is derived from the heating and cooling system; however, cutting edge technology has produced a heating and cooling system that can improve efficiency and result in a cost reduction in the overall household energy bill. Nest Labs, Inc. believes they have a solution with respect to energy and money conservation. 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.
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
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...