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Fitbit Introduction

Fitbit has in the recent past been faced by reduced sales. In any organization profits are directly related to the amount of sales; reduced sales therefore imply reduced profits and low business sustainability. Formerly Fitbit enjoyed a monopoly-like before Apple and other companies like Google decided to enter the fitness industry. The customer base for the products was high, since every individual was concerned about their health and the only fitness tracking device available were from Fitbit. Although competition is high currently, the fall in the sales can easily be attributed to disconnect by customers after facing some challenges using Fitbit tracking devices and products. Fitbit does not have proper tracking methodology of the devices they sale to their customers and also they rarely get feedback from the customers concerning the utility from their products. To ensure sustained sales, Fitbit should have a proper feedback system that allows them to improve their products depending on customer needs and changing dynamics of the customer base. The other reason behind the reduced sales is the competition from Apple watch and other new entrants with cheaper devices. Although Fitbit products price is low ranging from $60-$250 depending on the product utility and versatility, the other products in the market serving a similar purpose affect their sales. For instance, Apple Watch which has higher cost than Fitbit products has gained some customer attraction, reducing the customer size for Fitbit due to the reliability of the Apple Watch. The automatic synchronization of the watch with IPhone is desirable for most customers. However, Fitbit can utilize the gap created by Apple, since not all people have IPhones and expand their market share uninterrupted. In addition, entry of new competitors such as Google Fit is another threat to Fitbit sales. Therefore Fitbit should expand its marketing strategy to create more awareness of the importance of wearable for fitness for more customers. Also customizing their products would help great deal in increasing and regaining the market portion.

Fitbit Executive Summary

Fitbit has been the leading fitness tracking product leader for long time with increasing profits until recently when the sales have begun to drop. To understand the reasons behind the reduced sales, this research was undertaken. The team hypothesized entry of cheap fitness product, Apple watch and boredom to fit lifestyle as the major reasons behind the reduced sales of Fitbit fitness tracking devices. The marketing team developed a survey to gain information from the customers why they are less interested with Fitbit products currently. The major objective of the survey was to identify the reason the sales were declining. In addition, the research aimed at updating the target market of the benefits and availability of Fitbit products, identify where the market share was diverted to and establishing ways to keep and gain extensive market share. The research questions were tailored to meet these objectives in its entirety.

The research sampled the target population consisting of individuals above 18 years. The samples were tested to ensure they captured the intended information. The surveyed aimed to find out whether technological advancement was a factor behind reduced market share for Fitbit products. The survey questions also sought to understand the level of awareness of usability and applicability of Fitbit products among its target population. Moreover, the research focused on determining whether repositioning was an alternative to gaining and keeping the market share. The motivation to keep health living was also another factor included in the survey to understand whether the target population still had the motivation needed to stay health.

The research established that the sales volume had declined. Different factors played in the decline of the sales. First, the target market recorded boredom with fitness trackers. Second, the entries to the market by highly innovative brands such as Apple Watch and Google Fit have resulted to many potential customers abandoning Fitbit products. Lack of customer needs and product adaptability measures has seen many of the customers switch to competitors products. Google Fit offers products with similar utility to that of Fitbit at no fee; therefore many customers are switching to Google products. Availability of cheaper products with equal utility has greatly affected the market share that Fitbit used to control. Furthermore, most customers have an inclination to appearance of the products. The products should appear good when the customers put on them. Such appearance of the products is important in attracting customers and gaining new markets. Only 31% of the sampled population acknowledged owning a fitness tracking device and 58% of them are women. 51.6% of the population does not enjoy physical exercise, actually the whole population of individuals owning tracking device do not enjoy working out. Very small population of those who had fitness tracking devices has knowledge on health and fitness.

The team recommends; first, Fitbit should understand the customers and their needs to be in a position to regain the market share. Second, Fitbit should incorporate technological advancement to their products to attract more customers. Third, investment on customer awareness creation should take center stage to attract vast market of potential customers that neither uses any fitness tracking devices. And lastly, customizing the products to meet customers’ needs should be the major focus to regaining the market share.