Fitbit: Marketing Strategy Presentation

Introduction

• Fitbit produces smartwatches, fitness trackers, and accessories (Fitbit, 2018).
• The market is characterized by:
  • high competition;
  • fast development (Statista, 2016);
  • social influences.
• The presentation will seek to:
  • explain the marketing environment;
  • apply the Buyer Behavior Model to explain buyer behavior;
  • propose a marketing promotion mix to improve the success of Fitbit products.

Marketing Environmental Factor 1: Competitive Landscape

• Main competitors include Garmin, Apple, Huawei, and Xiaomi.
• Expedited development of new products.
• Increased bargaining power of buyers.
• Competition influences pricing strategies (Chaudhuri, 2002).
• Fitbit should apply a successful branding strategy and develop competitive advantages.

Marketing Environmental Factor 2: Social Media

• Social media affects the cultural environment.
• Impacts customer needs and expectations regarding product features.
• Creates new marketing opportunities for lifestyle and fitness products:
  • Social media advertisement is highly effective in attracting new customers (Akhlagh, Akbari, & Kasani, 2016).
  • Advertising with popular social media personas can foster brand awareness (Okazaki & Taylor, 2013).

Marketing Environmental Factor 3: Health and Lifestyle

• Body image ideals are transmitted in the popular media.
• Changes to people’s health and fitness goals.
• Health and lifestyle products gained increased attention and popularity.
• People can also use health and fitness devices for enhancing their social image (Asimakopoulos, Asimakopoulos, & Spillers, 2017).
• Health and lifestyle trends create a positive marketing environment for Fitbit.

Buyer Behavior Model: Situational Influences

• Situational influences are market offerings, demographics, and the complexity of the buying task (Burnett, 2011).
• A lot of market offerings from competitors.
• Moderate complexity of the buying task.
• Fitbit is most popular among people aged 25-40, educated and with medium income.
• Target audience is likely to buy the product with minor hesitation.

Buyer Behavior Model: External Influences

• External influences include culture, social class, and reference groups.
• Cultural environment promotes fitness and health.
• Reference group is rather large and includes young people interested in health and fitness.
• Fitbit is aimed at the upper-middle class, which is shrinking (Schwartz, 2017).
• The company would benefit from a broad marketing campaign that would attract more people from the reference group.

Buyer Behavior Model: Internal Influences and Processes

• Socialization leads people to lead healthy lifestyle and try to become more fit (Eadicicco, 2018).
• Lifestyle and motivation are also internal influences that positively impact purchase decisions.
• External, internal, and situational influence cause people to become interested in the product (Perner, n.d.b).
• A comprehensive marketing strategy could increase brand awareness, leading to purchase.

Communications Channel 1: Digital Marketing

• A promising communications channel for Fitbit.
• Social media are particularly popular among the target audience.
• Digital marketing can target people with specific interests, and is thus cost-effective (Hruska & Maresova, 2018).
• Difficult to choose a suitable platform (Klie, 2011).
• Digital marketing strategy could include SMI ads, direct online ads, and the use of corporate social media profiles (Roy, Datta, & Basu, 2017).

Communications Channel 2: Broadcast Advertising (TV, radio)

• Broadcast advertising is effective as it targets various audiences.
• Choosing a particular time of day or channel can make broadcast advertising more targeted (Sandberg, 1999).
• Negative aspects include high cost and lower cost-effectiveness.
• Viewers tend to switch channels to avoid advertisements (Sandberg, 1999).
• Placing short, visually appealing ads could be useful for Fitbit.

Communications Channel 3: Sales Promotion

• Sales promotions can predict purchase decisions and attract new customers (Genchev & Todorova, 2017).
• Appeal to existing customers thus increasing brand loyalty.
• Not all types of sales promotions are equally effective.
• Only a short-term strategy, no long-term effects.
• Fitbit could use discounts and promo codes to encourage customers to buy its products.

Traditional Media Ad 1: Broadcast Advertising (TV)

• Gaudet (2014) says TV ads should address distinctive product features.
• Tagline: “Your Life. Your Style. Your Move.”.
• No voice-over except for the tagline, upbeat music.
• Small clips of different people with different lifestyles using Fitbit products.
• Portrays versatility of products and appeals to most audiences.

Traditional Media Ad 2: Direct Mail

• Use direct mail to deliver promotional offers to existing customers (Perner, n.d.a).
• Tagline “Like Your Life with Fitbit?”, followed by a promo offer.
• Offer discounts for second purchase, friend referral promo code, etc.
• The back of the flyer could be used to promote new product releases.
• Flyers should feature images of people using Fitbit, a calm background, and a readable font.

Electronic Media

• Fitbit should place advertisements with social media influencers (Khamis, Ang, & Welling, 2016).
• Fitness and lifestyle bloggers are popular among the target audience.
• Tagline: “Life Is Better with Fitbit”.
• A blogger could promote Fitbit in their own words.
• The picture and text should be chosen by the SMI to encourage trust.

Conclusion

• Competition is the main threat to Fitbit’s success.
• Social and cultural influences create a favorable environment for marketing.
• Building brand awareness through advertising would attract more customers.
• Fitbit should use TV, social media, and direct mail ads.
• The proposed promotional mix would help the company to earn a larger market share.

References

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Asimakopoulos, G., Asimakopoulos, A., Spillers, F. (2017). Motivation and User Engagement in Fitness Tracking: Heuristics for Mobile Healthcare Wearables. Informatics.

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Chaudhuri, A. (2002). How Brand Reputation Affects the Advertising-Brand Equity Link. Journal of Advertising Research. Vol. 42 Issue 3, p33-43.

Eadicicco, L. (2018). Fitbit Finally Made a Smartwatch I Can’t Wait to Wear. Time. p. 19-19.

Fitbit. (2018). Fitness Tracker of the Year. Web.

Gaudet, C. (2014). How to craft a powerful tagline for your business. Forbes. Web.

Genchev, E. & Todorova, G. (2017). Sales Promotion Activities – Effective Tool of Marketing Communication Mix. Trakia Journal of Sciences. Vol. 15 Issue Supp1, p1818-185.

Hruska, J. & Maresova, P. (2018). Consumer Power and Empowerment in the Context of Marketing on Social Networks. International Multidisciplinary Scientific Conference on Social Sciences & Arts SGEM. p127-132.

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Perner, L. (n.d.b). Consumer Behavior: The Psychology of Marketing. Web.

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Sandberg, J. (1999). The Greed for Speed. Newsweek. Vol. 133 Issue 5, p73.

Schwartz, N. D. (2017). Middle Class Contracted in U.S. over 2 Decades, Study Finds. The New York Times. Web.

Statista. (2016). Fitbit – Statistics and Facts. Web.