Comparison of Marketing Strategies of Apple and Fitbit

This report compares the marketing strategies of Apple and Fitbit in terms of product, price, place, and promotion. It also discusses their target market and brand positioning. The report highlights that both companies have different perspectives and brand names.

MG412 Principles of
Marketing Coursework
1

Contents
INTRODUCTION .....................................................................................................................................3
MAIN BODY ...........................................................................................................................................3
TARGET MARKET ...............................................................................................................................3
PRODUCT/ BRAND ............................................................................................................................4
PRICE .................................................................................................................................................4
PLACE ................................................................................................................................................5
PROMOTION......................................................................................................................................5
CONCLUSION ....................................................................................................................................6
REFERENCES ......................................................................................................................................7

INTRODUCTION
Marketing standards are the most commonly used ideas which can be round for the reason that
Sixties, these ideas stood the take a look at of time and have remained the same - with a little variant
here and there - for many years. Businesses comply with these concepts for a successful advertising
and marketing strategy. There are 4 unique concepts of advertising and marketing referred to as 4Ps
or 4P advertising Matrix that groups use for his or her advertising approach. These four primary
advertising standards Product, Price, Place, and Promotion are interconnected and paintings
collectively; as a result, they're additionally referred to as Marketing Mix. There some variant of
these 4 principles; moreover, in the 1980s, two extra standards had been delivered to these unique
four principles which might be used by a few companies and referred to as 7Ps.( Hanson. and
Kalyanam, 2020). This report will include the comparison of two companies such as apple and
Fitbit with their price, product, promotion, target market and place strategies.
MAIN BODY
TARGET MARKET
The importance of the Apple Watch is undisputed within the global marketplace of
smartwatches. The astonishing boom of the enterprise is related to manufacturers shipping
twelve million smartwatches in the course of the second one area of 2019, which is a forty
four percent growth as compared with the second zone of 2018, as reported via Strategy
Analytics. Much of the boom is associated with clients following the trend of accessorizing
with clever devices. Within this marketplace surroundings, Apple controlled to maintain its
proportion crown, with the Watch final at the forefront of the rest of the goods. The most
effective feasible competitor of the Apple Watch is the Fitbit, which is suitable for the target
section of customers orientated on health. Apple has a selected target market, at the hobbies
of which it focuses in to reap profitability.
Fitbit versa 2 has unveiled new merchandise and features for better target each type of
customers demographically. The people who wears and health brand has announced the
launch of the Versa and the Ace, a brand-new cutting-edge smartwatch and an approachable
activity tracker for children, respectively. Fitbit additionally showed off new updates to their
custom Fitbit OS, from an updated dashboard to a fitness tracker updated in particular for
females. The Versa is the flagship announcement here for Fitbit, as it is a completely new and
redesigned and glossy look to smartwatches. The business organisation previously had their
Ionic watch, which released in the final year, and this new version was observed to be a extra
approachable version primarily based on lolw rate and easy to usefor the customers. ( Novak,
2017)

PRODUCT/ BRAND
To higher visualise the have an impact on of Apple's flagship merchandise at the
shape of the brand’s lifestyles cycle, a techniqueof graphical representation become utilised.
The records used inthe take a look at comes from Apple's quarterly reports and athorough
evaluation of the literature on the income quantity ofthe three maximum worthwhile
assortment strains and their proportionof overall Apple’s income. The motive of the have a
look at became to determine the have an impact on the life cycles of three of Apple’s
flagship products in shaping Apple's life cycle such as MacBooks, iPads, and iPhones.
Research specializes in 3 strains of cellular merchandise which shows that the together share
is of 81 percent of Apple's profit. Each of the careogry performs a different position in
shaping Apple’s emblem lifestyles cycle. This is due to variations in the cost in their
financing. The differences in concentrated on merchandise to other market segments, beauty,
market competitiveness and dynamics where those products which are sold, as a consequence
the difference in profits from their sales and consequently in the percentage of every line
within the earnings of the company. (Ferrell and Ferrell, 2020)
The analyses of Fitbit as an ‘employer’, and its ‘, can offer us with a clean knowledge of
its cutting-edge middle method. The wearables commercial enterprise has declined; however,
a more integration into the health care machine can revive the enterprise. From the enterprise
factor of view, wearables can standalone as an enterprise with the aid of producing more
habitual sales thru the fitness device. By promoting sponsored gadgets and software program
to groups, Fitbit can facilitate them to control their employee’s well-being software. This
brings approximately an possibility for a more routine circulate of revenue. Furthermore,
moving from fitness to an additional new enterprise surroundings, i.E. ‘fitness’, does now not
suggest Fitbit is leaving its client business. In reality, to negotiate its way into fitness
atmosphere, Fitbit desires to maintain its consumer logo. The contemporary environment of
fitness care surroundings requires enticing customers and merchandise that consumers want
to use; consequently, this is exactly in which Fitbit’s purchaser enterprise and brand come to
affect.
PRICE
Apple makes the use of a MAP (minimum advertised charge) retail strategy. This strategy
regulations prohibit resellers or dealers from advertising and marketing a manufacturer’s
merchandise beneath a sure minimum price. This strategy is normally enforced through
advertising subsidies presented by using a manufacturer to its resellers. According to
Macworld, Apple keeps its pricey merchandise’ popularity by using simplest imparting
outlets such as Walmart organisation or Best Buy a marginal wholesale bargain. This small
percentage in savings was not sufficient of a earnings margin for retailers to offer massive
reductions on Apple’s merchandise. hence, consumers started paying a price near the
manufacturer’s advised retail charge. However, a store may want to give up this small profit
benefit and provide merchandise at a discount to attract extra customers. Apple prevents this
scenario through providing monetary incentives to stores to sell items on the minimum
advertised charge fixed via the enterprise.
Fitbit has implemented using an unusual-even pricing method to draw a huge quantity of clients.
Also, the bizarre-even pricing strategy allows Fitbit to elevate the belief of affordability among
clients. For instance, the list charge of the Fitbit Versa three is $ 228.Ninety-eight and the listing
charge of the Fitbit Sense advanced smartwatch of the organization is $329.Ninety-five which is

obtainable for sale at $299.Ninety-five on Amazon. Thus, the company also adopts a discounting
strategy to attract a massive quantity of clients. Along with this, the organisation additionally has
adopted market-primarily based pricing techniques where the charges of the goods are charged
difficulty to various marketplace factors and aggressive expenses. For example, the Fitbit Inspire
health tracker is sold at a charge of $ seventy-nine. Ninety-nine that's in keeping with the charge of
Amazfit GTS 2 Mini which is also offered at a fee of $ 79.
PLACE
When it comes to distribution channels which means how to deliver the products to the
customers, normally the business organisations use a direct or indirect methods. In many other
orgnisations via a combination of direct and indirect channels make more better and convinient
methods. For example, the Apple commercial enterprise version leverages each on direct and
indirect channels. The Apple company sells its products and services at once through its Apple Stores
which are locatioed in different locations. This is essential to Apple fulfilment as it permits it to
deliver a terrific shopping for revel in for its products wherein provider and training are emphasized.
That is likewise why Apple Inc. maintains expanding its business global. While this is a crucial a part
of Amazon distribution approach, it is also quite steeply-priced. Yet Apple has completed manage
over the customer revel in and control over a distribution approach requires massive sources. With
this technique, Apple can rent skilled and informed personnel capable of provide a large choice of
one third party hardware, software program and other accessories that complement Apple’s
products(Gusai, 2018)
Fitbit Flex is currently using a mixture of channels in selling its electronic products. The image
suggests that this firm is selling its products directly to its clients through its own website. Its clients
can easily visit the website online and make an order for a given product. After making on line
payment, the firm will make an association for the shipping of the product. This company is likewise
using other online vendors together with the Amazon.Com. Customers can purchase any of its
merchandise via this online store. Retail shops which include Wal-Mart and Best Buy also stock
products of this firm. Some of those huge retail stores inclusive of Wal-Mart additionally act as
wholesalers for small distribution retailers throughout the other countries. Using this channel mix
offers Fitbit Flex a variety of alternatives in reaching out to the clients. It ensures that the company is
able to reach each online and brick-and-moter customers.
PROMOTION
Apple Inc. is a organisation that invests large amount of money to promote its products and
ervices through many and different platforms. For example On Television, in specialized
magazines, billboards, by signing agreements with others companies, mobile advertisements
in underground systems, trams and buses, etc. It is always on the search for the right spot
where any promotional activities could have the impact to attract the customers. One of the
fields in which the company has been traditionally very active is in product placement. Today
there many popular American shows in which actors or celebraties are seen using a Mac, an
iPhone or more recently wearing an Apple Watch which means that the company uses the
influencing method for the promotion of its product. Some very famous advertisements
which the company uses such as iconic Apple Macintosh Commercial, which is considered
by many as the best Super Bowl commercial of all time, or it is also oberved that the video
series in which the company ironically mocks Windows disadvantages demonstrate Apple’s
creativity in his quest against the status and his predilection for advertisements and
commercials with a deep impact on consumers mindsets, their opinions and behaviours
regarding the purchasing the product of the company.

Fitbit promotion of Versa is predominantly thru marketing on TV with brief clips or
with commercials in magazines or newspapers. The different channel for selling Versa is by
means of undertaking Fitbit activities for the general public and corporates, where human
beings can come strive the product. Lunch and research sports are organized for corporates,
health centers and hospitals and there are demonstrations addressing worries and questions.
CONCLUSION
From the above report it is concluded that there are various types of marketing principles
such as product, price, place promotion etc which help the marketers to adopt the different
strategies in their company. Apple and Fitbit both uses different strategies in order to grab the new
customers and retain old customers. They both are differentiated as each has different perspectives
and brand name.

REFERENCES
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