marketing plan

Running head: CASE STUDY 1

CASE STUDY ANALYSIS 5

Case Study Analysis: FitBit

Name

Date

Institution

Case Study Analysis: FitBit

Fitbit

In March 2007, research incorporation that focuses on healthy metrics was started in Delaware, United States. Initially, the company was known for its making of unique wearable devices that served a fitness tracking purpose. In 2015, Fitbit appeared in the media regarding its practical and sophisticated IPO, and by then, the firm had more than six appliances in the American market, including a smart scale, four wriststyle trackers, and two activity trackers that were clippable. The devices served different functions from simple customer needs to broader needs. In this sense, this paper focuses on evaluating how Fitbit can improve its engagement with users, how the firm can secure a leading position in the available market competition, and how it can use its future opportunities.

How can Fitbit Enhance its Engagement with Users?

The case study ‘Fitbit: The Business About Wrist’ presented by Xu and Wang (2016) points out different aspects related to the operation of Fitbit, including its competition, challenges and opportunities, and its future operations. The case study presents that Fitbit explores product differentiation strategy in the move to attract more customers and stand out amidst stiff competition from companies such as Apple. The increasing demand for wrist-worn devices allows Fitbit to grow and expand both locally and internationally. However, Fitbit should deal with the issue of user engagement, competition, and prospects if it is to thrive in the wearable devices market. User engagement is essential for firms in terms of attracting and maintaining a loyal customer base.

In the move to enhance its user engagement, Fitbit has to explore its marketing strategies and analyze the market potential of their products. According to Morton et al. (2017), a market potential evaluation examines the total market magnitude of the products that a firm is preparing to launch in the market. Therefore, before Fitbit launches the products to the users, the incorporation should focus on defining why the targeted users require the product and how it will satisfy the customers’ needs. The first step of Fitbit towards enhancing its user engagement is by taking time to know what the users need and what works for them as this is key to providing products that the customers would stick to given a wide range of similar options.

Secondly, Fitbit needs to increase its social media presence as the platform offers an excellent and active channel for enhancing the firm’s engagement with users from different market regions. Social media is a beneficial channel for any firm to market their brand and find out more about what their customers need and how the firm can improve its products to fit the consumers’ ever-changing demands (McCay-Peet & Quan-Haase, 2016). For example, the constant updates on the firm’s product, such as the 2015 update Smart Track which eliminated the need for manual login, could be let off the leash on social media. The customers on social media will then give feedback to Fitbit regarding their updates hence increased user engagement. In this sense, Fitbit can make use of voicey personas on an online platform such as Twitter to increase interaction, interest, and traction for its products from a wide range of users.

Additionally, by the use of social media platforms, Fitbit should also focus on customer feedback regarding their products. Engaging users does not mean just telling them about a particular product, but it takes more than that. Di Gangi and Wasko (2016) point out that social media represents a modern business framework that allows for the co-creation of value through the exploration, retrieval, and contribution of users on a network. According to the social media engagement theory, presented by Dolan et al. (2016), the experience of users influences user engagement and product usage. In this sense, the positive and negative feedback that comes from users on social media will help Fitbit enhance its user engagement by focusing on the experience of the users giving feedback.

How can Fitbit Maintain its Position in the Market despite of Competition

The case study points out that Fitbit faces competition from several firms, including Apple, Samsung, Nike, Xiaomi, and Garmin, among others. The most notable threat to a business in any industry is rival firms that offer products that serve similar purposes. With the competition, the market share of a company decreases (Castellucci & Podolny, 2017). For instance, from the case study, it is evident that the market share of Fitbit reduced from 35% to 24.3% after Apple’s entry into the market. Nonetheless, there are different strategies and methods that Fitbit can use to secure its leading position in the wearable devices market.

First, Fitbit needs to focus on assessing consumer-based competitive position for core competitors and the incorporation’s offering. Such a procedure will be beneficial to Fitbit since it will help the firm to analyze the strengths and shortcomings of the market’s strong competitors such as Xiaomi and Apple. He and Huang (2017) present that to beat the competition in the market, a firm needs to focus on the weaknesses of the competitor and come up with a way of using them to their advantage. For example, Apple’s partnership with Hermes to produce products meant to attract consumers excited with fashion can be counteracted by Fitbit through defining and positing the firm’s products.

Another way for Fitbit to ensure that it maintains its leading position in the market amidst stiff competition is to focus on the development of a positioning and launching methodology. Simon and Fassnacht (2019) point out that businesses should assess the significance of discovering the optimal price positioning when launching a new product in the market. Firms that position their products at high prices end up losing to firms that offer fair prices that are within range of the consumer society in the available markets. Such a process does not only call for a final analysis of channels of distribution, but it also requires a promotion mix for the Fitbit products. Elements of a promotional mix possess essential importance in influencing the buying decision of customers (Khanfar, 2016). In this market that has significant competition, Fitbit has to choose the right promotion communication instruments that provide effective advertisement and convincing factors to remain the market leader.

Where would Future Opportunities of Fitbit Come from, and where Will Fitbit Find them?

The focus by Fitbit to maintain its leadership in the wearable devices market also requires that the firm exploits its present and future opportunities for growth, development, and prosperity. Three futuristic opportunities can help Fitbit grow and become more successful in the market. To begin with, Fitbit’s Smartwatch can create a channel for doubling the firm’s addressable market. From the case study, most consumers prefer that future wearable devices be able to take and store pictures as an additional service feature. For this reason, Fitbit has an opportunity to exploit is Smartwatch device to offer such a service. The key differentiator of the Smartwatch can help update it to a device that can take pictures that are transferable to other devices such as phones and laptops. The feature can help users capture moments instead of carrying their phones during exercise; hence this creates an opportunity for Fitbit’s future growth.

Additionally, another future opportunity for Fitbit lies in the firm’s corporate health programs. The firm’s focus on keeping people who work daily, healthy is an excellent way to engage more members in the community and increase interaction between Fitbit and the general society. Even though the initiatives do not directly impact the revenue of Fitbit, they positively influence the firm’s image hence increasing the company’s traction from people. The health insurance initiatives can also help Fitbit gain more customers for their trackers in the future since it influences employees to make better choices regarding their health. The Smartwatch enhances the partnerships between Fitbit and business corporations as it makes it easy for the company to implement.

Fitbit can also capitalize on making a device that focuses on other sleep disorders, including hypertension. Such capabilities will increase the consumer market for the firm hence increasing its revenues and contributing to maintaining the leading position in the market. Additionally, coming up with such a device will ensure that Fitbit enjoys a new market with a new device free of competition. The opportunities for growth of Fitbit are within the company’s, and if they wish to grow and develop into the future, Fitbit has to explore these opportunities.

In conclusion, evaluating the ways that Fitbit can enhance its user engagement, how it can maintain its position in the market, and what its future opportunities are, helps gain an understanding of the issues and factors that promote the prosperity of the firm. Fitbit should focus more on using social media and customer feedback to increase its user engagement. To maintain its leading position in the market, Fitbit has to focus on pricing and promotional mix and assessing the weaknesses and strengths of its core competitors. In summary, the utilization of its Smartwatch and health initiatives can help Fitbit steer its future growth and prosperity.

References

Castellucci, F., & Podolny, J. M. (2017). The dynamics of position, capability, and market competition. Industrial and Corporate Change, 26(1), 21-39.

Di Gangi, P. M., & Wasko, M. M. (2016). Social media engagement theory: Exploring the influence of user engagement on social media usage. Journal of Organizational and End User Computing (JOEUC), 28(2), 53-73.

Dolan, R., Conduit, J., Fahy, J., & Goodman, S. (2016). Social media engagement behavior: A uses and gratifications perspective. Journal of Strategic Marketing, 24(3-4), 261-277.

He, J. J., & Huang, J. (2017). Product market competition in a world of cross-ownership: Evidence from institutional blockholdings. The Review of Financial Studies, 30(8), 2674-2718.

Khanfar, I. A. (2016). The Effect of Promotion Mix Elements on Consumers Buying Decisions of Mobile Service: The case of Umniah Telecommunication Company at Zarqa city-Jordan. European Journal of Business and Management, 8(5), 94-100.

McCay-Peet, L., & Quan-Haase, A. (2016). A model of social media engagement: User profiles, gratifications, and experiences. In Why Engagement Matters (pp. 199-217). Springer, Cham.

Morton, C., Anable, J., & Nelson, J. D. (2017). Consumer structure in the emerging market for electric vehicles: Identifying market segments using cluster analysis. International Journal of Sustainable Transportation, 11(6), 443-459.

Simon, H., & Fassnacht, M. (2019). Price Strategy. In Price Management (pp. 29-84). Springer, Cham.

Xu, X.C. & Wang, S. X. (2016). Fitbit: The Business About Wrist. [PDF File]