Introduction
The marketing mix refers to a company’s selection of promotional channels and attributes used to break into specific consumer niches. Strategic use of the marketing mix requires attention to its six components: product, place, price, promotion, people, process, and physical presence (Goi, 2019).
Fitbit is an American consumer electronics and health technology company based in San Francisco, California. It was founded in 2007 and produces activity trackers and wireless-enabled wearable technology devices that measure data such as the number of steps walked, heart rate, quality of sleep, and other personal metrics (Fitbit, 2020). Fitbit’s current marketing mix encounters various challenges, including quality control issues, low innovative processes, high operational costs, and a lack of product diversity. These can be solved by enhancing its product portfolio, online presence, and key performance indicators.
Company Analysis and Marketing Mix
The Fitbit line of goods and services is focused on assisting users in setting and achieving health and fitness objectives and tracking their progress toward crucial fitness targets. Fitbit is now one of the most well-known names in the fitness and wellness industry, with products sold in more than 85 countries and 45,000 points of sale (Fitbit, 2020). The company sells several devices, such as those that monitor physical activity, weight, and sleep, and a collection of apps and services that compile user data and offer meaningful insights (Fitbit, 2020). Fitbit also offers a premium subscription service with extra features like coaching and tailored recommendations.
Assessing a company’s complete strength can help evaluate its marketing mix. The marketing mix refers to the four essential components of a marketing strategy: product, price, place, and promotion. These elements, often referred to as the “4Ps,” assist businesses in creating a successful advertising strategy (Dorbayani, 2020).
The 4Ps are the most integral in analyzing a business function, but the other three aspects, including process and people, are essential for comprehensive analysis. A detailed analysis accurately illustrates a company’s needs to help create lasting changes. As depicted in Figure 1 below, the 4Ps of marketing mix strategies include a product that includes the primary offering presented to the intended market by an organization; it can consist of tangible and intangible products, such as commodities, services, ideas, and experiences. The price includes the cost of a company’s wares is the sum customers must pay to get the products or services (Dorbayani, 2020).
Place refers to the channels and methods utilized by businesses to reach their intended audience. This may involve physical locations, online marketing, or inventories. Promotion is the other integral aspect, which involves sharing details about a product or service with the intended market.
Current Marketing Mix and Recommendations for Improvement
Product
Fitbit stands out as a leader in the fitness tracker and related product categories in the consumer electronics industry. The company sells a wide range of wearable health and fitness trackers, smartwatches, wireless earphones, smart scales, gear wear, and premium subscription services. Smartwatches have additional capabilities like music playing, mobile payments, and advanced health tracking (Balbim et al.,2021). In contrast, fitness trackers are primarily intended to monitor and record basic activities like steps, heart rate, and sleep.
The quality and longevity of Fitbit products are unmatched in the industry. Products by them also have user-friendly interfaces, ergonomic builds, and features that enhance user experience. For instance, the Fitbit Sense and Bluetooth watches are activity trackers that measure various health and fitness metrics, such as steps taken, calories burned, and sleep quality (Balbim et al.,2021).
The trackers have accurate standard measures that initiate accurate projections of health situations and are even used in medical specialties to analyze patients’ symptoms (Leung et al., 2021). Fitbit products are made to the highest standards and are renowned for their durability. They are also designed with the user in mind, featuring intuitive displays, comfortable fits, and long battery lives. These factors indicate that the company produces products that enhance its competitive edge.
Fitbit dominated the smartwatch industry until recently, when the firm was challenged by rising rival pressure and its quality difficulties. Quality control flaws over the past year also undermined Fitbit’s reputation. In 2017, a Fitbit product exploded under unclear circumstances, leading to a lawsuit by the user (Altaf, 2018). In 2022, the iconic smartwatch was said to have inaccurate projections, leading to a significant drop in purchases (Altaf, 2018). All these issues indicate substantial problems that should be addressed.
The recommended strategies to enhance quality control on Fitbit products involve investment, utilizing customer feedback, and quality audits. One strategy is investing in automated software that detects defects in the early stages of production. Another intervention includes creating high-quality control standards that all Fitbit products must meet before they are released for sale (Goi, 2019). This strategy can include safety standards, usability testing, and process requirements.
Instead of engaging in blame games, the company should use client reviews as a barometer of where the business stands (Goi, 2019). Taking action when negative feedback arises ensures that the production process is monitored to ensure that end products are of high quality, since constant inspection of products helps sustain quality.
Place
Fitbit ensures its services are available in all areas frequented by its ideal customers. As a result of technological developments, Fitbit has broadened the distribution channels for its products beyond traditional stores and into Gyro live stream retail platforms (Fitbit, 2020). Examples of Fitbit’s retail locations include company-operated stores, an online presence such as eBay, and local partner agent stores (Fitbit, 2020). With increasing competition from rivals such as Apple and Samsung, the company must reinforce its presence to enhance visibility.
The first strategy includes focusing on international markets to enhance its presence. To improve its online global presence, the company can engage global influencers to support its products through tailored advertisements. To expand its niche, the company should ensure its products are available at every local supermarket and hypermarket in different countries (Goi, 2019).
They could also establish stores locally and internationally, where their products are displayed to enable them to reach a target audience (Goi, 2019). Additionally, partnering with retail stores or online platforms such as popular media outlets can help reach a larger audience. These recommendations can ensure that the company enhances its strategic location to be accessible to its targeted audience.
Price
Fitbit’s marketing mix uses a hybrid pricing strategy to reach its target market. This strategy involves using both premium pricing and value pricing. Premium pricing is used for the more advanced Fitbit products, like the Fitbit Surge and Ionic. This allows Fitbit to differentiate its products from competitors and target more tech-savvy, health-conscious customers (Fitbit, 2020).
On the other hand, value pricing is used for the less expensive Fitbit products, like the Fitbit Zip and Alta (Fitbit, 2020). This helps Fitbit reach a wider range of customers, who may not be as tech-savvy or health-conscious but are still interested in tracking their activity. Using a hybrid pricing strategy, Fitbit can target a larger market and maximize its profit.
However, this strategy poses significant threats, such as locking out some clients since they consider high pricing to indicate exclusiveness. Value pricing may affect the perception of quality, considering that cheap products are equated with lower quality. Therefore, the company should use the psychological pricing strategy, which persuades the client that they have the best deal.
Psychological pricing is a strategy designed to encourage consumers to make larger purchases. The goal is to satisfy the customer’s desire, which may be to spend less, to purchase an item of the highest quality, or to feel as though they received a “good deal” (Goi, 2019). For instance, instead of $1, the company should consider placing the price at $0.99. This strategy will enhance their premium and value pricing strategy, considering that it does not involve lowering or increasing the prices but working around the values.
Promotion
The primary advertisement strategy for the company includes online adverts, conventional marketing strategies, and bonus programs. One of Fitbit’s more cutting-edge promotional tactics is social media marketing. Facebook and Instagram have frequently used their marketing strategies (Fitbit, 2020). The company also advertises on national television networks and uses local ambassadors to enhance its outreach.
Additionally, the company sponsors the Fitbit loyalty program, which ensures customers gain bonus points for each purchase that can be redeemed. These strategies help maintain their competitive advantage and can be combined with other advanced programs. Examples of improved mechanisms include introducing higher warranties for their products can enhance loyalty to their products due to enhanced customer security (Goi, 2019). Additionally, the company can introduce online challenges that require participants to post their experiences online using the brand image and provide testimonials to promote global awareness.
Customer service is a priority for Fitbit; therefore, the company employs people to field inquiries and offer assistance. The company also has Fitbit-savvy sales associates and band influencers who promote their services online. However, the company can enhance its people’s engagement by promoting social conversations and enhancing the customer service experience (Fitbit, 2020).
Social conversations include social media engagement, enabling conversations beyond the conventional restricted customer support systems (Fitbit, 2020). This strategy allows people to engage freely and provide criticisms that help grow the organization. The strategy can also include live customer support systems that enable them to measure consumer satisfaction (Goi, 2019). These strategies provide key performance indicators integral for assessing results and companies.
Conclusion
The Fitbit Company’s success can be attributed to its average marketing strategy. Its selection of products is what the market needs, and it provides very reasonable prices that are sure to entice clients. It uses both conventional and modern forms of advertising to significant effect. However, to achieve exceptional success, Fitbit needs to put more effort into client interaction, product quality, and distribution. It should also continue investing in digital marketing and exploring methods to differentiate its products from the competition.
References
Altaf, U. (2018). Six mistakes Fitbit should not have made in the market. Crunchy Trends. Web.
Balbim, G. M., Marques, I. G., Marquez, D. X., Patel, D., Sharp, L. K., Kitsiou, S., & Nyenhuis, S. M. (2021). Using Fitbit as a mHealth intervention tool to promote physical activity: potential challenges and solutions. JMIR mHealth and uHealth, 9(3), e25289. Web.
Dorbayani, M. (2020). (PDF) Fitbit marketing analysis & strategy – A Study By: Mosi Dorbayani. ResearchGate. Web.
Fitbit. (2020). Fitbit Official Site for Activity Trackers & More. Web.
Goi, C. L. (2019). A review of marketing mix: 4Ps or more? International Journal of Marketing Studies, 1(1). Web.
Leung, W., Case, L., Sung, M.-C., & Jung, J. (2021). A meta-analysis of Fitbit devices: Same company, different models, different validity evidence. Journal of Medical Engineering & Technology, 46(2), 102–115. Web.