Running head: MARKETING MANAGEMENT GROUP PROJECT 1
Marketing Management Group Project
Group 2
Lauren Linn, Cameron Patterson, Jonathan Snyder, Paula Zanahuria Santana, and Brittany Jones
Liberty University
MARKETING MANAGEMENT GROUP PROJECT 2
Abstract
The purpose of this assignment is to analyze Fitbit’s current marketing strategies, and pinpoint
new changes that should be implemented to increase profitability for the company. Fitbit is the
leader in the industry of wearable fitness and health tracker devices, and has been in business
since 2007. However, with competition rising in the industry, Fitbit needs to focus in on the
target market’s needs, as well as on the individualized style appeal that drew their customer base
in in the first place.
MARKETING MANAGEMENT GROUP PROJECT 3
Company Description and History
Description of Fitbits
Fitbits are physical activity trackers designed to help individuals increase their overall
well-being by becoming more active, eating a more balanced diet, and sleeping better. These
Fitbit devices were developed to track steps, calories burned, heart rate, floors climbed, along
with many other features. Fitbit device is also sensitive enough to detect how vigorous your
motions are, and the corresponding calories burned between different activities. This allows the
products to be more accurate and reliable by giving better feedback to consumers. The products
were designed to fit seamlessly into people’s lives so that they can achieve their own health and
fitness goals, whatever they may be.
History of Fitbits
The idea of Fitbit came about to them as technology continually advanced and wireless
technology skyrocketed. They realized that the sensors and this kind of technology can bring
products for people to enhance their lifestyle and a have a sense of better well-being. With the
collaboration of each other’s ideas, the company founders joined in with each other to create a
wearable product that would change the way people move. The first of these products was the
Fitbit Tracker. As the years passed, new and improved devices came about that continuously
catches the consumer’s eyes and gains more attention.
Old 4 P’s
Product
The products that are offered by Fitbit vary in price and ability, some of which are worn
on the belt and some are worn on the wrist. On the low end of the spectrum is the Zip, which
MARKETING MANAGEMENT GROUP PROJECT 4
clips onto one’s belt and primarily monitors steps taken throughout the day. On the high end of
the spectrum is a product called the Surge. The Surge is worn on one’s wrist and monitors steps
taken, GPS location, pulse rate and also connects to one’s smartphone to allow them to control
music and see notifications from the Fitbit (Fitbit, 2016).
Place
Fitbit promotes and sells its products online. Fitbit products are also sold online at
Amazon. Fitbits can be found in many department stores, including Walmart, Target and Kohl’s
as well as sporting good and outdoor stores, such as Dick’s, Sport’s Authority, and REI (Fitbit,
2016). Fitbit does not have a Fitbit storefront.
Promotion
Fitbit relies primarily on internet marketing, including search engine and social media
marketing, as well as advertisements and reviews in magazines (Fitbit, 2016). This is largely in
part to not having a Fitbit storefront, and relying on the sales gained through other stores, both in
a brick and mortar setting as well as online.
Price
Sold on Fitbit’s website, the products range in price from $59.95 to $249.95. On the low
end are the Zip and One, both clip on activity trackers, priced at $59.95 and $99.95, respectively.
On the high end are the Blaze and Surge, both fitness watches, priced at $199.95 and $249.95
respectively (Fitbit, 2016). These price points appeal to customers because there are options
available for many different consumer budgets.
MARKETING MANAGEMENT GROUP PROJECT 5
New 4 P’s
People
Fitbit was founded by Eric Friedman and James Park. Friedman and Park are both
experienced software engineers. Though the company is primarily known for producing
wearable hardware, Park believes that the key to Fitbit’s early success is the focus they
maintained on software. Park went on to claim that two thirds of Fitbit’s engineers work in
software, not hardware (Hof, 2016).
Processes
In terms of distribution, Fitbit has differentiated themselves from many other recent,
hardware-driven startups by focusing their distributions on national accounts rather than a focus
on small, locally owned stores (Hof, 2016). Fitbit has sought distribution in nationally
recognized stores such as Walmart, Sports Authority, and Target.
Programs
A new strategy that Fitbit is beginning to implement is referred to as Fitbit local. Fitbit
local is a program run in addition to the apps and videos made available by Fitbit, in which local
trainers lead groups of people through workouts. Fitbit also creates challenges and competitions,
from which they donate to the winning charities. This program is called Fitforgood, and in 2015
one million dollars was donated by Fitbit to charities, including the American Heart Association,
the National Multiple Sclerosis Society, and the American Diabetes Association (Fitbit, 2016).
Performance
As stated previously, Fitbit is the industry leading distributor of fitness monitors and
wearables. Fitbit earned 1.86 billion dollars in revenue in 2015 and they expect to earn between
MARKETING MANAGEMENT GROUP PROJECT 6
2.4 and 2.5 billion dollars in revenue in 2016 (Fitbit, 2016). Fitbit has found success with their
industry leading products, and they continue to find success as they release new products.
Scanning the Market Environment
Demographic Trends
As of November of 2015, Fitbit is sold in over 50 countries, which shows that it is not
just an American demographic that is interested in this technology, even though one in ten
Americans own a fitness tracker. Fitbit can interest people globally. China is now the fastest
growing market for the wearable devices, though Fitbit is not the leader in that country it still has
a strong market presence there. Some users are also athletes. Approximately 36 percent of people
who own fitness trackers in the U.S. are between 35 and 54 years old, and are mostly women
(Gustafson, 2015). James Park, CEO and co-founder of Fitbit states that the primary user is not
very fit, could be slightly overweight, and doesn’t have to be young (Bhattacharya, 2015).
Current Economic Trends and Influences
In 2013, the gross profit of Fitbit was over $60 million and by 2015, Fitbit multiply that
gross profit more than ten times. This increase was due in part to new health trends that society
has experimented with. The presence of health concerns in society has been addressed by
industries offering healthier products such as organic food or vegan food. This change in
healthier choices reflects as well in the profitability of Fitbit, because people are more willing to
spend in devices that will help them live a healthier lifestyle.
Technological Changes
The advances in technology have enabled the emergence of connected devices, like
Fitbits. According to Friedman and Park (2016), better technology has improved the size and
MARKETING MANAGEMENT GROUP PROJECT 7
accuracy of sensors, while lower-power components with longer battery life have helped Fitbit
develop smaller, more power-efficient trackers that fit a wide range of consumer preferences and
needs. The technology utilized in Fitbits give consumers the ability to see and talk to people
while on the move, while also tracking movement and activity that was not previously possible
to track through technological means.
Consumer’s Tastes and Preferences
People’s lifestyles are about becoming more health-conscious. This population consists of
fitness experts as well as the average American looking to lose weight and become more active.
The rising healthcare costs and the costs to employers of workers made unproductive by health-
related issues. Therefore, individuals and employers are helping this market to grow further.
They are doing this by giving employees discounts to fitness centers, paid time to exercise, and
insurance discounts.
Every day, more and more consumers are turning to new products that can monitor and
track various kinds of information to their smartphones, tablets, or other mobile devices. Related
to the rise in smartphones and technology in general, has led people to tools to better improve
their own health and fitness. Ac Fitbits are a current market trend to consumers and the wearable
device is a design that attracts many people.
Social and Cultural Factors
As a company, Fitbit prefers consumers that have the common attribute of being health
and fitness conscious[Fit16]. Fitbit offers devices that can be utilized by the casual exerciser, or
even an athlete. Members of all social classes can find a Fitbit device that meets their budget and
MARKETING MANAGEMENT GROUP PROJECT 8
quality expectations, while also providing the functions that the consumer desires most out of
their product.
Fitbit has recognized the strong importance that social media plays in today’s world, and
has incorporated this value into their products by allowing Fitbit consumers to have social
interactions about their health and fitness activity gathered through use of the Fitbit. This
encourages users to stay motivated and are more likely to continue to use the product [Dav14].
By providing consumers with a way to socially interact with the Fitbit, these consumers will
prefer the product over competitors’ similar health monitoring devices, and provide them with an
easier way of sharing this preference with their friends and family.
Analyzing the Consumer Market
Cultural Factors
Fitbit recognizes that everyone is different, but still embraces these general cultural
factors by creating a multitude of unique products that interact well with each other, your goals,
apps, and budget [Fit16]. Allowing customers to feel that their Fitbit product is individualized to
them and in line with their personal values, they are more likely to use the product habitually
[Dav14]. Fitbit attracts customers by allowing consumers to monitor their fitness and health
information with a product that is goal-centered [Fit16]. Consumers are drawn to products that
are in line with their cultural values, and appeal to an individualized design.
Social Factors
Reference groups, family, social roles, and social status all affect consumers’ buying
behavior because people are influenced by others such as friends, family, and celebrities [Kot16].
The biggest social factor that attracts customers would be the interaction of the Fitbit app that
MARKETING MANAGEMENT GROUP PROJECT 9
allows for consumers to create and compete in challenges with their friends and family [Fit16].
Interaction such as this encourages users to not only purchase the product, but to continue using
the product [Dav14]. In addition, now that Fitbit is targeting the corporate wellness sector, the
company’s social appeal will strengthen due to employees keeping each other accountable to
their fitness goals [Pri15].
Personal Factors
The demand for products like Fitbits is being driven by the “Quantified Self” movement.
This term describes people being interested in “self-knowledge through self-tracking.”
Consumers having regular access to smartphones and a social trend of leading a healthier
lifestyle contributes to this movement. Consumers are also price conscious, and looking for more
cost-efficient options. Consumers purchase products to reflect their personality. It is a
consumer’s mode of living as identified by their own activities, interests, and opinions. Fitbits
have been shown to the public that they can be fashionable and have a positive image about their
products that consumers discuss while conversing and through social media. Just carrying the
Fitbit around can be an incentive enough to make a big difference for users (Dontje, 2015).
Adding motivation to one’s success and with the system of earning incentives and badges
through Fitbit can help motivate one’s desire to meet their goals.
Psychological Factors
Over the past several years, consumers are more concerned with their health, as a result
of more people that are obese and diagnosed with more health-related issues. Self-image is one
of the biggest factors that influences consumers in purchasing a Fitbit. With the image that Fitbit
portrays and how they seek to draw more consumers, matches up with the brand image that
MARKETING MANAGEMENT GROUP PROJECT 10
consumers want to have. The perception that Fitbit has to others leads to motivation to
accomplish daily goals and compete with others to living a more active life (Dontje, 2015). With
the help of employers offering wellness discounts to fitness facilities and some money savings on
health insurance, Fitbit devices are on the rise of attracting more consumers to achieve their
weight loss and fitness goals.
Consumer Behavior
In this marketing plan, the consumer market of the fitness conscious should be
emphasized. The Fitbit is catered to users from all different health and fitness backgrounds, and
this concept should be embraced through all aspects of the marketing plan. Consumers are likely
to be wearing their fitness tracking device on a consistent basis, and will interact socially with
their device to keep themselves accountable to their health and fitness goals.
Market Segments
Variables Used to Segment Target Markets
Examples of marketing segmentation focuses on certain variables such as; demographic
age, generation, psychographic lifestyle, personality, and readiness stage. There are several
variables that Fitbit can focus on such as demographic age, generation, psychographic lifestyle,
and personality. Along with those market segmentation variables; Fitbit should also focus more
on selling specifically to young digerati. Young Digerati is defined as “the nation’s tech-savvy
singles and couples living in fashionable neighborhoods on the urban fringe” (Kotler & Keller,
2016, pg. 248). Although these variables consist of several different categories, Fitbit still needs
to narrow its focus down to specific consumer profiles, so they can realize its target market.
MARKETING MANAGEMENT GROUP PROJECT 11
Keeping consistent with the young digerati demographic, Fitbit should narrow their
marketing focus on younger generation couples that already use wearable technology and are
aware of current fashions and trends, because this demographic group is also already on the
fitness trend that has been occupying the world in response to increasing health risk factors.
Attractiveness of Target Market
Despite the evidence already presented that the millennial generation is portrayed
specifically as the young digerati focus and the current generation of children being raised are
current with technology trends based on socialization factors, there are reasons that these
variables were chosen.
With that in mind, there is significant evidence confirming that for Fitbit to continue
being successful, in the next decade, Fitbit needs to adapt its marketing to these specific market
segmentations. That way Fitbit can reach consumers in its target market. There is compelling
evidence that suggests Fitbit should target their market segmentation to focus on the newest
generation, Millennials, and what is referred to as the young digerati.
Market Segmentation Strategies
Full market coverage
Full market coverage is a strategy utilized by businesses why try to meet the needs of
customers in all customer groups (Kotler & Keller, 2016). Full market coverage would be an
effective strategy for businesses that provide a wide range of products and services needed by a
broad range of individuals, regardless of demographic or psychographic distinctions. The
industries in which firms often adopt full market coverage strategies are the automobile,
MARKETING MANAGEMENT GROUP PROJECT 12
software, phone, and food and beverage industry. Additionally, the full market coverage strategy
is generally only appropriate for large firms (2016).
Selective Specialization
Selective specialization refers to a strategy adopted by many firms in which the firm
choses several market segments that can be targeted by the firms marketing efforts (2016). At
times the segments pursued by firms, even in regard to the same product, may have no
similarities. A single product may appeal to seemingly diverse groups of individuals.
Alternatively, many, diverse products that appeal to a particular market segment (2016).
Market Specialization
Market specialization is a type of selective specialization in which a firm choses to sell
their products to a particular group of customers (2016). In this situation, the customers have
much in common and a firm sets out to meet many different needs for this particular group of
customers. Kotler & Keller (2016), use the example of a firm that sells only to university
laboratories as an example of a company that is utilizing a market specialization strategy.
Product Specialization
Fitbit should focus on a product specialization strategy by meeting the needs of a diverse
consumer based with a specialized product offering. An example of product specialization is that
of a firm that produces microscopes, but will sell too many different types of organizations
including schools, government organizations, and commercial laboratories (2016). Under the
product specialization strategy time and energy are focused on developing a product that can be
sold to multiple market segments.
MARKETING MANAGEMENT GROUP PROJECT 13
Single-Segment Concentration
Single-segment concentration is a specialization strategy in which a firm focuses on a
narrow group of customers with a specific product (2016). The term niche is frequently applied
to this type of marketing. Marketing in a narrow niche allows marketers to focus their energy and
attention on meeting a unique set of needs. Proper niche selection can help a firm to enter the
market with less competition, and many niches, though small, have great potential for increased
profit growth.
Fitbit Market Segmentation
Fitbit has successfully produced a line of products that meet a particular set of needs for a
diverse group of people. Due to pricing differences, some products will not appeal to certain
segments of the population. Fitbit’s products from their cheapest pedometer to their most
expensive watch exist primarily for the purpose of tracking the wearer’s activity throughout the
day. Fitbit is established as the industry leader in wearable activity trackers and should continue
to develop products that meet consumer needs for health tracking through wearable products.
Fitbit’s products meet the needs of a diverse group of individuals throughout all market
segments. Therefore, Fitbit should focus on a product specialization strategy, meeting the needs
of a diverse consumer base with a specialized product offering.
Target Markets
Fitbit products are designed to empower and inspire people “to live a healthier, more
active life” by designing products and experiences to fit into people’s lifestyles so they can
achieve their “health and fitness goals” (Fitbit, 2016). Based on this mission, Fitbit has tried to
target different groups, with its products. These groups include women and men from different
ages, economic and geographic segments. Since its foundation in 2007, Fitbit has sold more than
MARKETING MANAGEMENT GROUP PROJECT 14
20.8 million devices (Dolan, 2015). When Fitbit started, one of the main target groups were
primarily female baby boomers who were concerned about their health and lifestyle, and through
the years Fitbit has expanded its target market to different groups including the Gen X and
Millennials.
Due to the fact that most people on Gen X are raising families they tend to have a
sedentary lifestyle due to work and the multiple family activities in which they have to be
involved (Znaimer & Teitel, 2013). Gen X do not have a lot of time to go to the gym and Fitbit
provides them with the opportunity to keep a healthy lifestyle while keeping their busy
schedules. Millennials control over $200 billion in annual spending in the U.S. (Kotler & Keller,
2016, p. 252). Millennials are characterized by their use of technology and adaptability to new
technological products. In 2016, it was expected that one-third of millennials were going to buy
fitness wearable devices (Pai, 2015). As Fitbit leading the industry of fitness trackers, it is likely
that millennials will invest their money in Fitbit products.
Target Market’s Needs
Each market segment has different needs that Fitbit is aware of and has try to fulfill. The
main need that all segments have in common is that they want a device that helps them to have a
healthier lifestyle and it is easy to use (Fitbit, 2016). Depending on the specific segment, the
needs may defer. Some may want multiple features in their devices, for example millennials tend
to multitask and own multiple devices (Kotler & Keller, 2016, p. 252). Fitbit has already target
the need of millennials by developing Fitbit Surge and Fitbit Blaze that include music control,
text notifications, alarm, caller ID, sleep tracker, among many other features (Fitbit, 2016).
Fitbit products already cover most of the needs of the target segments. Some markets just
need a tracker device that simply tracks their physical activity and steps. For those segments that
MARKETING MANAGEMENT GROUP PROJECT 15
require more than just a tracker, Fitbit has developed products that may increase customer’s
satisfactions. Fitbit products now include different characteristics from heart rate tracker, sleep
tracker, watch, caller ID, alarms, GPA tracking, music control and notifications. Fitbit covers
most of the needs for every market segments but still needs to keep developing on some of the
needs that the segments required to expand to new markets and making the products match each
of the target segments’ personalities.
Positioning
Positioning Statement
Fitbit, specializing in wearable fitness trackers, is leading the market through their
experience in catering to the health and fitness conscious user by offering individualized and
goal-oriented products to all levels of fitness users to help them lead healthier lifestyles.
Current Position in the Marketplace
Fitbit has been in the industry of wearable fitness trackers since 2007, and plans to
continue to use this experience to remain competitive and successful [Fit163]. The company is
currently pursuing efforts to increase growth, while maintaining their focus of catering to users
on an individualized level to encourage them to live healthier lifestyles (2016). Fitbit has
managed to continuously sell an increasing amount of devices, resulting in almost 1 million
additional device sales between the three months ended March 31, 2015 and the three months
ended April 2, 2016 (2016). In addition to an increase in sales, Fitbit’s user reviews have
comparatively dominated the market between June 2014 and June 2015 in relation to other
fitness wearable devices. Although Apple’s wearable device entered the market during this time
MARKETING MANAGEMENT GROUP PROJECT 16
period, Fitbit has still managed to consistently stand out to consumers as a desirable and leading
product (2015, p. 27).
Competition
It is important that marketers understand the competition their firm will face as they enter
the marketplace so that they are informed to make decisions regarding changes to branding and
positioning to increase market share prices and profitability. Understanding the strengths and
weaknesses of opposing firms enables marketers to attack and defend themselves effectively
from others in their industry by watching the outcomes of competitor choices.
Inside the large and rapidly growing wearables market, Fitbit has been established as the
market leader. When looking at the worldwide wearables market, Fitbit leads with 22.2% of the
market share. Approaching in behind Fitbit are Apple with 18.6% of the market share and
Xiaomi, a Chinese company, with 17.4% of the market. With these three firms as leaders of the
industry, Garmin comes in fourth with only 4.1% of the market share (IDC, 2015).
Currently, Fitbit is the market leader and more than half, 58.2% of the market share. It is
evident that Fitbit has effectively established themselves as the early leader in the wearables
market. Specifically, rather than trying to compete with Apple Watch head on, Fitbit should strive
to maintain their position as the go to brand for Americans seek to buy inexpensive, easy to use,
and reliable fitness trackers.
Product Branding
Brand Elements to Create Differentiation
Fitbit has dominated the fitness tracker industry with the mission “to empower and inspire people
to live a healthier, more active life, Fitbit designs products and experiences that fit seamlessly
into people’s life so they can achieve their health and fitness goals, whatever they may be”
(Fitbit, 2016). Fitbit has created brand elements that represent a differentiating element against
MARKETING MANAGEMENT GROUP PROJECT 17
competitors.
In order to differentiate from other competitors, a brand element should be memorable, which
refers to how easily consumers recall and recognize the brand. In addition, a brand element
should be meaningful, this refers to whether the brand element is credible and if it corresponds to
the category of products they are selling. A brand element has to be also likable, meaning that it
should be appealing to the customers. The fourth element states to whether “brand element can
introduce new products in the same of diverse categories” referred to as transferable. The brand
element has to be adaptable meaning that the product should be adaptable or be able to update.
The six element corresponds to protectable, this refers to how legally protectable is the brand
element or how competitively protectable it is (Kotler & Keller, 2016, p. 309).
Based on the previous analysis of the six criteria to differentiate brand elements from the
competition, Fitbit should focus on four of those criteria; memorable, likable, transferable, and
protectable. If Fitbit focuses on those four criteria the company may create a greater presence in
the market and future customers. Fitbit has already created a brand name that includes all the six
criteria presented before. Fitbit is a memorable name that creates meaning by producing products
that are related to the brand name.
Another brand element that is very important for Fitbit to focus on is the “protectable” aspect.
Fitbit products are distinguished against its competitors in the use of technology; hardware and
all the features that each product has. Companies that develop products based on technology
should be aware of the value that their technology represents when creating value and keep
differentiating. Having its technology legally protected makes Fitbit more differentiated against
other competitors because other competitors would not be able to use the same technology or
software as Fitbit.
The company has a big room to keep developing its products and keep leading the fitness tracker
industry. By using the elements previously mentioned, the company could keep creating brand
equity with innovative products that achieve the company’s mission.
Brand Promise
When talking about brand promise, it is essentially about two main topics; differentiation
and design. Differentiation can include things such as features, customization, and services. The
Fitbit product being focused on is the Fitbit Blaze. Differentiation is a selling point with this
product from offering a 45-day money back guarantee and even free shipping if consumers
purchases the Fitbit Blaze from the website. Some other features include heart rate monitoring,
GPS, on-screen workouts, and even call, text, and calendar alerts [Fit164]. The design is just as
MARKETING MANAGEMENT GROUP PROJECT 18
impressive with offering three different initial band colors, color touchscreen, and even different
bands and faces that can be interchanged based of your intended activity for the day (2016).
Packaging and Labeling
The image that brands products is critical to their achievement, and those imageries must be
carried by packaging. Along with other Fitbit products next to one another, consumers are able to
distinguish which product best fits their needs and the features that each product has. These
features that consumers are interested in are likely to be Bluetooth, heart rate monitoring, and the
battery life. The structural design that Fitbit holds is one that is distinct and consistent with each
product that they offer. Each product is in a design that is simple, but with a purpose. The graphic
imagery and photography used enforces Fitbit’s key attributes. The graphics and colors displays
are effective in conveying the appropriate message to the appropriate target audience. The
images displayed are geared for a lifestyle proposition. Product packaging has a direct bearing on
the product cost (Kauppinen, 2014). Therefore, the cost aspect of packaging should be strictly
controlled so that the product may not be overpriced.
The attached label provides customers with information to aid their purchase decision or
help improve the experience of using the product. By Fitbit’s approach of a centralized approach
to labeling, this allows the business to create labels and manage associated label images in a
controlled fashion (Hollis, 2008). The labels on Fitbit products have the care and use of the
product as well as the manufacturer name. For consumer packaging, symbols exist for product
certifications, trademarks, and proof of purchase (2008). The Fitbit logo can be found on all
labels which can assist the buyers to easily spot the product even before reading the brand name.
Creating a logo can be more meticulous compared to simply printing down the company name
and a bunch of words.
MARKETING MANAGEMENT GROUP PROJECT 19
When people see your product, they should think of your brand. When it comes to Fitbit
and their strategic plan for attracting and attaining new customers is a product line that portrays a
positive brand image and a name that is common to the public to be seen and heard of. Well-
designed packages offer a promotional tool and convenience value to the user.
Services
Support Services
Fitbit consumers are in need of better support services for their products due to the
negative reviews left on multiple websites. Fitbit users would benefit from a better product
reliability, and a better customer service experience through use of improved response times,
better trained representatives, and enhanced customer policies. Fitbit products need to be
sturdier, operate with more computer models, have a better warranty and replacement policy, and
should implement improved customer service options to provide. Many customers have asked
for refunds or an equal product exchange, both of which were denied. Half of all of the reviewers
would not recommend this product and business to others (2016).
Fitbit’s customer service options is the area that consumers want and need to be improved
on most. When customers call Fitbit’s customer service phone line, they need to be greeted
promptly and by someone with a vast knowledge of how to help the customer. Fitbit users should
not have to wait a lengthy amount of time only to speak with someone who needs to transfer the
call to someone more qualified. Fitbit could hire more customer service employees, extend their
call center hours, and offer a more vigorous training for their employees.
Competitor Support Services
MARKETING MANAGEMENT GROUP PROJECT 20
Apple is one of the largest firms in the United States by total revenue (Fortune, 2015).
First, Apple’s website provides a large section dedicated to customer service, where customers
can both look through archived information or chat online with customer service representatives.
Apple customers can also call anytime for customer service or go into an Apple store for
assistance, questions, and repairs. In addition, because Apple is a large technology company,
Apple Watch benefits from many of the services offered on Apple’s other products. Chief among
these services is the iCloud and iTunes systems that allow for backup of Apple Watch data
(Apple, 2016).
In order to remain competitive in the wearables market, Fitbit should seek to develop
services that will benefit users of this product. Fitbit should offer services that can enable
consumers to back up information. Fitbit should also place an emphasis on customer service. As
a result, Fitbit should focus on developing customer service channels that are simple to use and
easily accessed by consumers.
Post-Sale Services
Post-sale services are a crucial factor in deciding whether customers will purchase more products
from the same company or they will move to another brand. Companies should be aware that “in
some of the cases after sales services can be almost as important as the initial purchase” (Raj &
Dwivedi, 2012, p.57). Fitbit should focus on some of the after-sale services that customers value
the most and that makes them feel more secure about their purchases. Some of these services
include: customer service support, return policy, warranty policy and option for extended
warranty (After-Sales Service, 2014). This analysis will focus on the previously mentioned
services and it will present a comparison against Fitbit’s major competitors.
The main after sale service that clients care about is a company’s customer service support
(Crandell, 2013). Fitbit, as well as all its major competitors, offer this service free of charge.
Another important post-sale service arrangement that most companies offer is a return policy. In
the case that the product is damaged, or in the case that customers do not like the products or are
not fully satisfied with the purchase, companies offer a grace period for clients to return the
product to get their money back. Fitbit offers 45 days on the return policy; the products can be
return for any reason and the refund gets paid within two weeks after the company receives the
product (Fitbit, 2016). Fitbit is in the middle between competitors return grace period and
company should keep the 45 days the way it is. The 45 days provide sufficient time for
MARKETING MANAGEMENT GROUP PROJECT 21
customers to try their products and see if there is any damage, or they are not fully satisfied with
the product purchased. In order to stand out from competitors return policy, Fitbit should speed
up the refund period to less than a week.
Most of the companies offer one-year warranty in most of the products and in some instances
clients have the option to upgrade the warranty to an extended warranty. Fitbit should consider
offering extended warranties to the customers for a lower price and specify what the warranties
would cover for the products and what does not cover.
Fitbit should maintain a communication channel with recent customers and previous customers
and do a survey about the after sale experience customers have had with the company and how
the company may upgrade the after-sale services. The company should not only focus on current
costumers but the marketing team should conduct a market analysis on the public in general
about their expectation in the after sales purchase. If the company knows what the public wants,
it would be easier to attract new customers and keep the current customers.
Repair and Service Efforts
Directly relating this to Fitbits, the company has a great return policy and warranty for all
of their products. Fitbit offers a 45-day satisfaction guaranteed return policy. In meaning, that a
consumer can return the product for any reason guaranteed and receive a full refund.
It is practically impossible for Fitbit to explain all of the features that each product holds.
There are always both positive and negative features in products and services which could lead
to pleasure or infuriate customers. The final opinion is the sum of overall experiences which a
customer percept. It is also true that more the positive aspects, the more the customer is satisfied.
Hence, the goal of Fitbit products should be always to enhance these positive feelings among all
the customers to increase customer satisfaction (Smith, 2002). As a company, identifying how to
enhance these positive aspects to maximum level by analyzing the customer’s data and
information. The individual liking and disliking of customers differ from customer to customer.
According to Kotler and Keller (2016), it is required to target a customer and identify individual
requirement to make them satisfied.
MARKETING MANAGEMENT GROUP PROJECT 22
Fitbit stands behind their products and has a customer service team that is eagerly waiting
to help resolve customer complaints and make them feel satisfied. The consumers that return
after a bad experience are the ones that voiced their problem and were helped in a fair and
respectable way (Smith, 2002). The replacement warranty that Fitbit offers is a great supporter of
giving customers what they need and make them feel like they are important to the success of the
company. For example, if a consumer’s Fitbit quits working, they can call customer service and
have the representative retrieve their information and explain the issue, in return, most likely will
get a replacement Fitbit at no charge. This is a great way of showing that the needs of the
consumer are important, and the company aims to please the customer.
Understanding customer satisfaction is as much a psychological challenge as a
measurement challenge, and understanding human behavior often means distinguishing between
thoughts, feelings, and behaviors. Customers complain when they are unhappy. On the other
hand, how much they complain, and who they complain to vary by the specific product and price
(Smith, 2002). Unfortunately, customers are more likely to speak about us when things go wrong
rather than when they go right.
If the product is having some problem or compatibility issues and requires frequent
maintenance and support than the customers could get irritated and possibilities of sudden divert
is there which lead to supplier’s financial loss. In the same way, if the product is expecting huge
amount of financial and manual resources then customers could get a feeling of dissatisfaction
and worry (Kotler & Keller, 2016). However, if these aspects are handled efficiently by giving
class services and dealing with complaints effectively then dissatisfied customers could be
converted into long time satisfied customers and retaining them becomes easy.
MARKETING MANAGEMENT GROUP PROJECT 23
Pricing
A company can adapt the pricing of their products through geographical pricing, price
discounts, promotional pricing, and even differentiated pricing. Fitbit should stay away from the
price discounts and differentiated pricing. For example, customers went out and bought the
newer version of the phone and shortly after they dropped the price of the phone by $200. Apple
eventually had to credit consumers that initially bought the phone at the higher price to keep the
consumers happy. This example is the main reason why Fitbit should be careful with offering
different prices for relatively the same product to consumers. Today, consumers can easily price
match and look for the comparable product, and might end up going for the cheaper option of the
two if they are not loyal to the brand. The pricing strategy that is in the best interest of Fitbit to
use would be the promotional pricing strategy. There are two main sub-strategies that Fitbit can
utilize, which is special customer pricing and special event pricing. Since Fitbit has really
positioned the brand as one of the companies that are the best at making activity trackers, they
can use their brand to their advantage.
Fitbit should be able to offer promotional pricing as long as it still is bringing in a target
revenue and competitors are not trying to do the same thing. That being said, outside of the
pricing strategy, Fitbit still has competition from other activity tracking companies, and other
companies known for making wearable technology. For the moment, Fitbit should leave the
prices the way they are, but more example; if Apple decides to lower the price on their Apple
Watch then Fitbit might want to take a look at their pricing strategy again. If that happens, Fitbit
should not immediately follow suit and lower the prices of their products. If Fitbit is following
Apple to look for any price drops Fitbit can already be ready to offer an augmented product when
it happens. By setting the research and development on producing that component in the Fitbit
MARKETING MANAGEMENT GROUP PROJECT 24
products, then the company will not have to be too worried about any price changes in their
competitors.
Promotions
Integrated Marketing Communication (IMC) Mix Components
The Integrated Marketing Communication mix is the holistic approach that a firms takes
to ensure that relevant communication gets to relevant customers in a relevant and consistent
way (Kotler & Keller, 2016). Over the past several years, many firms have been realizing the
potential for marketing in this way. Fitbit is no exception to this trend. There are many facets to
Fitbit’s communication including television advertising, social media marketing, and the
maintenance of a well-designed website.
In Fitbit’s television commercials, they engage customers with a message that
acknowledges that everyone is different, and they proceed to encourage unique individuals to
“find your fit.” The message of their commercials are that even though everyone is different,
have favorite activities, and there is physical activity involved in regularly, and Fitbit is offering
a product that can help individuals track their activity throughout the day regardless of what they
are doing. Additionally, Fitbit has put forward a message that not only do Fitbit’s products track
physical activity throughout the day, but they encourage their wearers to make healthier
decisions, such as walking instead of taking the bus (YouTube, 2016).
Fitbit takes that same message to social media, where they maintain a presence on many
of the largest social media sites, including Facebook, Twitter, Instagram, Pinterest, YouTube, and
Google Plus. These social networking sites allow Fitbit to increase the visibility of their product
in the lives of many interested consumers who frequent the sites. Through social networking,
Fitbit not only seizes the opportunity to promote their products, but also seeks to garner attention
MARKETING MANAGEMENT GROUP PROJECT 25
by providing information that is useful or entertaining to potential customers. This information
includes strategies for healthier eating, workout routines, and studies related to the use of Fitbits.
Overall, Fitbit’s social media strategy provides much incentive for customers concerned with
their own health and fitness to click through links to Fitbit’s website where they will be shown
the range of products that Fitbit has to offer.
Fitbit maintains a website that includes much or all of the information that interested
consumers would want to learn about the company and the products. Not only does the website
include a section dedicated to displaying Fitbit’s product line, but the website also includes links
to other services and products that support the use of Fitbit products. Fitbit’s website also
includes a section entitled, “Fun,” which includes information about local experiences and
groups affiliated with Fitbit, challenges, and the company’s blog (Fitbit, 2016). The
communication and marketing, though it takes place over several different mediums, strives to
communicate the same message to consumers while providing them with useful information that
can help them to reach their fitness goals.
Internet Marketing Possibilities
Fitbit has a big room of possibilities when it comes to Internet marketing strategies. In the
last decade, “the newest and fastest-growing channels for communication and selling directly to
customers are digital,” meaning that internet marketing strategies play one of the biggest roles
when it comes to advertising a product or service (Kotler & Keller, 2016, p. 615). Fitbit should
focus on all the previously mention categories and innovate in the categories Fitbit is currently
using. Almost half of the time spend on the media is spent online, which means Fitbit has a big
opportunity of attracting new customers and retaining the current ones through the use of online
marketing strategies (Kotler & Keller, 2016, p. 616).
MARKETING MANAGEMENT GROUP PROJECT 26
One of the most important categories in which Fitbit should focus on is its website. The
website should be attractive, easy to navigate, interactive and change constantly. After a while,
customers expect to see something new when entering a website they visit often, Fitbit should
constantly change aspects of the website design keeping the main elements that distinguish the
website from competition.
Fitbit has also the possibility of using email as a marketing strategy. Most people who
have a smart phone tend to have their email connected to their smart phone, when they receive
and email they get notified immediately. Fitbit should be careful when using email as a
marketing strategy, Fitbit should only email those customers that approved of the email services.
Fitbit should add in their website a section where visitors could subscribe via email to receive
discounts, new product information, or newsfeed. Search ads and display ads may be a good
strategy to use in social media websites.
Social Media
In the last years, social media has become one of the most important ways of
advertisement and it is expected to keep growing in the following years. Social media allows
consumers to become engaged with a brand in a deeper level than any other type of
advertisement by allowing interaction between the company and the customers. Fitbit should
allow customers to closely interact with the products they constantly use and it would motivate
people to use the products as well and spread the word about Fitbit’s products among other
people. Fitbit should be constantly analyzing new trends in social media to adapt to new changes.
The strategy that used to work for Fitbit when the company started may not be working anymore
and may affect the reviews customers have about the products.
MARKETING MANAGEMENT GROUP PROJECT 27
Current Promotional Offers
Currently, Fitbit has taken the approach of targeting customers based on the style appeal
of their products. People have responded positively to the Fitbit Super Bowl commercial in 2016
(Get fit, stay smart, 2016). The commercial claims the tagline, “Get fit in style,” highlighting the
Fitbit’s ability to be integrated into all aspects of a person’s life. Consumers wear their Fitbit
during their normal work day, while traveling, working out, and even attending formal events
(2016). By showing customers the versatility of the Fitbit, it allows customers to see how easy it
is to wear their device continuously no matter what they are doing that day. This new style
approach to the Fitbit promotions enables customers to find the jewelry-like options that appeal
to them most, which encourages them to keep the device on for longer periods of time and
through many different activities [Ead16]. Fitbit customers could wear a sporty-style band when
at the gym, and a leather or steel version while at work (2016). The options are endless, and
encourages consumers to implement their individualized style wants and needs into their daily
fitness tracking.
Socially Responsible Marketing (SRM)
Socially Responsible Marketing Examples
Fitbit leads the market for fitness trackers. Health insurance companies have latched on to
the possibilities of fitness tracking. Fitbit has deals in place with Vitality, which provides
discounts on your health insurance in return for using a fitness tracker. Thought of as an
employee benefit, they’re handed out along with a company-wide fitness social experience
where teams of workers can club together and compete on daily, weekly and monthly challenges.
MARKETING MANAGEMENT GROUP PROJECT 28
Be it steps, number of calories burned or miles covered, everyone’s personal fitness data helps
with the aim of encouraging more active lifestyles.
Notably, SurveyMonkey is best known for its easy-to-use survey creation software, but
the company's nationwide survey service, Audience, was created as a way to give back to
deserving causes across the country. Instead of offering cash and prizes to survey takers,
SurveyMonkey donates 50 cents per survey completion to the participant's charity of choice. In
2013, the company donated more than $1 million to organizations such as the Humane Society,
Boys & Girls Club of America, and Teach for America. Undertaking socially responsible
initiatives is truly a win-win situation. Not only will your company appeal to socially conscious
consumers and employees, but you'll also make a real difference in the world.
Socially Responsible Marketing Suggestions
Within a SRM business model there are different strategies that Fitbit can adopt such as
cause-related marketing and social marketing. Social marketing has been adopted by nonprofits
and government entities to set forth campaigns based of individual programs or certain causes
the organizations want to support. One example of a social marketing slogan is “exercise more to
better your health”. Cause-related marketing can be used by any company usually when the
company wants to stand behind a specific cause. Suggesting that Fitbit adopts cause-related
marketing, that being considered Fitbit is already aware of the benefits SRM can have for a
company. Fitbit Incorporated has established corporate wellness programs that companies can
sign-up for to help gain a healthier workforce.
MARKETING MANAGEMENT GROUP PROJECT 29
Benefits of Fitbit Corporate Wellness Program
Corporate wellness programs are being used by numerous companies for various reasons.
Some of the reasons a corporate wellness program from increased employee engagement, less
downtime for employees due to illness, and even a reduction in healthcare insurance costs for the
company. That could be a substantial amount of corporate cost that can be reduced no matter if
the professional works for a company with only twenty employees or that has 3 hundred
employees. Fitbit has also established partnerships with other vendors to help companies create a
wellness plan that will help promote healthy behaviors.
Fitbit has a well-established corporate wellness program to help reduce costs for
companies that choose to utilize the program. That is a great start when it comes to SRM with
allowing organizations’ employees to adopt healthier habits and at the same time allow the
company to reduce the amount of revenue that is lost due to employee healthcare costs. Fitbit
should connect with a specific organization to reduce a specific health related disease. For
example, Fitbit can choose to partner with the American Heart Association to help reduce the
amount of money companies have to spend on their employees that have had heart related issues.
This way Fitbit can utilize the social marketing strategy as well as the cause-related marketing
within their corporate wellness program.
Conclusions
The previous recommendations are just some of the main recommendations for Fitbit to
implement as new marketing strategies. The marketing analysis previous presented provides the
overall information of the current marketing strategies the company has as well as the cultural,
demographic, and social analysis of the market. Based on the analysis, Fitbit is a company that
MARKETING MANAGEMENT GROUP PROJECT 30
can expand their market to new market segments and even start expanding to new countries. The
company has potential to stay as the leading company in fitness trackers even with competitors
like Apple, Samsung and Jawbone. The fitness industry is becoming more popular among the
market and it allows Fitbit to position its products as the main option for customers when it
comes to fitness trackers. The marketing management team’s recommendations would help Fitbit
to fix the current problems the company is facing and they will help the company stay as the
number one company in the fitness industry.
Recommendations
Based on the research previously presented, the marketing management team recommends Fitbit
to take into consideration the following recommendations:
Improve customer service. Fitbit customer service has been having some difficulties in
the past with negative reviews. It is important that Fitbit understands the importance of customer
service and how a negative customer service experience can affect long-term customer
relationships and negative word of mouth. As mentioned earlier, some customers’ reviews
describe Fitbit representatives as rude and unknowledgeable about the products so customer
service training can be a recommendation to improve the customer service relationship with
customers. In addition, extending the customer service hours and personnel may benefit Fitbit by
keeping customers satisfied with the services provided. Customer satisfaction should be one of
the key focus points for the company.
Solve and improve current technological problems in Fitbit’s products. Based on the
research previously presented, the marketing management group also recommends Fitbit to fix
some of the problems that the products are facing and that may currently be keeping prospective
customers from buying Fitbit’s products. Some of the improvements in Fitbit devices include
MARKETING MANAGEMENT GROUP PROJECT 31
durability, ensure compatibility with older operating systems, information backup as the one
offered by Xiaomi and Apple, and most importantly develop an internal GPS system for the
current and future Fitbit products. If Fitbit develops an internal GPS system it would establish
the company ahead of competitors including Apple that do not have that capability.
Improve social media presence & internet marketing strategies. Fitbit can improve
social media presence by launching a campaign focusing on consumer’s responses to the
products. The company should encourage customer reviews, and rectify negative reviews timely
and efficiently. This can be done through all social media platforms, including but not limited to
Facebook, Twitter, and Instagram.
Social responsible marketing initiatives. Fitbit should continue on focusing initiatives
around the central idea of improving the health and wellbeing of Fitbit consumers. Fitbit as a
company should also form a partnership with an organization such as the American Heart
Association, as a way to encourage healthy habits of the device users. Fitbit should also continue
pursuit into the corporate wellness sector as a way to saturate the market and improve the health
of people on a larger scale.
MARKETING MANAGEMENT GROUP PROJECT 32
References
(2016). Retrieved from Youtube: https://www.youtube.com/user/fitbitofficialsite
After-sales service. (2014). Qatar Financial Center. Retrieved from
http://ezproxy.liberty.edu:2048/login?
url=http://literati.credoreference.com/content/entry/qfinance/after_sales_service/0
Bhattacharya, A. (2015, June 18). Fitbit stock surges nearly 50% on first day of trading.
Retrieved from CNN: http://money.cnn.com/2015/06/18/investing/fitbit-ipo-stock-
bounce/
Crandell, C. (2013, January 21). Customer experience: Is it the chicken or egg? Retrieved from
Forbes: http://www.forbes.com/sites/christinecrandell/2013/01/21/customer-experience-
is-it-the-chicken-or-egg
Davies, M. (2014, February 22). The three critical factors wearable devices need to succeed.
Retrieved from Gigaom: https://gigaom.com/2014/02/22/the-three-critical-factors-
wearable-devices-need-to-succeed/
Dolan, B. (2015, May 7). Fitbit files for IPO, sold nearly 11 million fitness devices in 2014.
Retrieved from http://mobihealthnews.com/43412/fitbit-files-for-ipo-sold-nearly-11-
million-fitness-devices-in-2014
Eadicicco, L. (2016, February 3). Fitbit is making its most beautiful activity tracker yet.
Retrieved from Time: http://time.com/4205486/fitbit-alta-launch-price/
Fitbit. (2016). Retrieved from Fitbit: http://www.fitbit.com/home
MARKETING MANAGEMENT GROUP PROJECT 33
Fitbit blaze. (2016). Retrieved from Fitbit: https://www.fitbit.com/blaze?
utm_source=bing&utm_medium=cpc&utm_campaign=US_Fitbit_Brand_Blaze_Exact&
utm=fitbit%20blaze&utm_content=Core_Exact
Fitbit. (2015). Fitbit for Corporate Wellness. Retrieved from Fitbit:
http://content.fitbit.com/rs/493-CEF-482/images/FitbitWellness_InfoSheet.pdf
Fitbit, Inc. Quarterly report form 10-Q. (2016, April 2). Retrieved from Fitbit, Inc.:
https://investor.fitbit.com/financials/sec-filings/default.aspx
Fortune 500. (2016). Retrieved from http://fortune.com/fortune500/
Friedman, E., & Park, J. (2016). Need help choosing a tracker? Retrieved from
https://www.fitbit.com
Get fit, stay smart: Fitbit brings on the blaze with a fashion statement for SB 50. (2016, February
6). Retrieved from Super Bowl Commercials 2016:
http://www.superbowlcommercials2016.org/latest-updates/fitbit-2016-super-bowl-
commercial/
Gustafson, K. (2015, January 7). Smartwatch or fitness tracker? Why age, sex matter. Retrieved
from CNBC: http://www.cnbc.com/2015/01/07/smartwatch-or-fitness-tracker-why-age-
sex-matter.html
Hof, R. (2014). How fitbit survived as a hardware startup. Forbes. Accessed on April 2, 2016
from http://www.forbes.com/sites/roberthof/2014/02/04/how-fitbit-survived-as-a-
hardware-startup/#773f43bd4f42
Hollis, N. (2008). Global Brand. Palgrave Macmillan. Retrieved from http://www.ebrary.com
MARKETING MANAGEMENT GROUP PROJECT 34
Jurek, S. (2015). Bio. Retrieved from Scott Jurek Eat and Run: http://scottjurek.com/bio/
Kauppinen, H. (2014). Strategic use of color in brand packaging. Technology(27), 663-676.
doi:10.1002/pts/2061
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Education.
Olenski, S. (2015, December 10). 4 Ways to integrate reviews and ratings into your social media
marketing strategy. Retrieved from Forbes:
http://www.forbes.com/sites/steveolenski/2015/12/10/4-ways-to-integrate-reviews-and-
ratings-into-your-social-media-marketing-strategy/
Pai, A. (2015, September 30). Forrester: 35 percent of millennials will buy a fitness wearable in
the next year. Retrieved from MobiHealthNews:
http://mobihealthnews.com/47134/forrester-35-percent-of-millennials-will-buy-a-fitness-
wearable-in-the-next-year/
Pritchard, C. (2015, October 24). Fitbit Inc (FIT) has found its own fit in the market. Retrieved
from Business Finance News: http://www.businessfinancenews.com/25410-fitbit-inc-fit-
has-found-its-own-fit-in-the-market/
Pritchard, C. (2015, September 15). Fitbit Inc (FIT) to see strong growth opportunities in
corporate wellness sector: Pacific crest. Retrieved from Business Finance News:
http://www.businessfinancenews.com/24226-fitbit-inc-fit-to-see-strong-growth-
opportunities-in-corporate-wellness-sec/
Raj, R., & Dwivedi, H. (2012). Research study on after sales servicesof gas turbines. Journal of
Business Management, 4(5), 54-94.
MARKETING MANAGEMENT GROUP PROJECT 35
Smith, A. (n.d.). The effects of customers' emotional responses to service failures on their
recovery effort evaluations and satisfaction judgements. Academy of Marketing Science
Journal, 30(1), 5. Retrieved from Academy of Marketing Science Journal:
http://ezproxy.liberty.edu:2048/login?
url=http://search.proquest.com/docview/224882766?accountid=12085
Smith, C. (2015, November 9). 12 Amazing fitbit statistics. Retrieved from
http://expandedramblings.com/index.php/fitbit-statistics
Smith, W. A. (2014). Effect of incorporating the Fitbit fitness tracking technology into a
prescribed exercise intervention program to improve long-term function in obese
individuals one year following total knee arthroplasty. Retrieved from
http://ezproxy.liberty.edu:2048/login?
url=http://search.proquest.com/docview/1620835690?accountid=12085
Stern, J. (2016). Fitbit Blaze review: a fitness smartwatch in need of more smarts and style.
Retrieved from Wall Street Journal: http://www.wsj.com/articles/fitbit-blaze-review-a-
fitness-smartwatch-in-need-of-more-smarts-and-style-1455650950
Worldwide wearables market soars in the third quarter as chinese vendors challenge the market
leaders, according to IDC. (2015). Retrieved from IDC: http://www.idc.com/getdoc.jsp?
containerId=prUS4067471
