Analysis of Marketing Strategy of FitOn

The report analyses the marketing strategy of FitOn smartwatches for their market entry in Australia. It includes market segmentation, target customers, positioning, and marketing mix. The report also suggests an action plan for six months after launch.

Running head: ANALYSIS OF MARKETING STRATEGY OF FITON
ANALYSIS OF MARKETING STRATEGY OF FITON
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ANALYSIS OF MARKETING STRATEGY OF FITON
Executive Summary
The report is based on the analysis of the marketing related plans and objectives of FitOn
smartwatches. The company has its origins in New York and they are planning expand their
operations in Australia. FitOn is a smartwatch which mainly provides health benefits to the
individuals. The workout sessions of the individuals are tracked with the help of this
smartwatch. The aspects related to marketing which are analysed in the report are, the market
segmentation and target market of the product. The marketing mix of the product based on
the two Ps are also analysed in the report. The two Ps are mainly Place and Promotion. The
positioning of the brand in the market and the action plan made for six months is also
discussed in detail.

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ANALYSIS OF MARKETING STRATEGY OF FITON
Table of Contents
Introduction....................................................................................................................3
Discussion related to the market entry of FitOn smartwatch.........................................3
The three objectives related to marketing of FitOn smartwatch................................3
Segmentation of market.............................................................................................4
Target customers........................................................................................................5
Positioning of the brand.............................................................................................5
Marketing strategy related to two Ps..........................................................................5
Placement of the product............................................................................................5
Promotional strategy..................................................................................................6
Action plan for six months after launch.....................................................................6
Conclusion......................................................................................................................6
References......................................................................................................................7

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ANALYSIS OF MARKETING STRATEGY OF FITON
Introduction
The report is based on the formulation of marketing strategy for the market entry of
FitOn smartwatches in the Australian market. FitOn is world’s most affordable smartwatch
which the technology of Blood Oxygen Saturation and it is the first product of its kind. The
major function of the smartwatch is to track the wellness of the individual. The team that was
responsible for the creation of FitOn smartwatch consists of professionals from different
companies. The founder of the organization Roddy Bryan along with co-founder Chiri David.
The manufacturing department was taken care by Andy Zhang and Mark Zheng (Ashley &
Tuten, 2015).
The organization originates in New York City and the FitOn project is a part of the
many projects that have been undertaken by a company known as Kickstarter. Kickstarter is
an independent organization which is under the control of the founder consisting of more than
117 employees who work together in a small factory. The major roles played by the
employees of the organization are, designers, developers, writers, musicians, support
specialists, poets, painters, gamers and robot builders. The aim of the report is to suggest the
marketing objectives of the firm when they enter the Australian market and the different
strategies related to promotions (Kickstarter.com., 2018).
Discussion related to the market entry of FitOn smartwatch
The three objectives related to marketing of FitOn smartwatch
The marketing objectives are related to the goals or targets that are set by an
organization when a they enter a new market area or expand their business opportunities. The
objectives are set in such a way so that a plan is devised to achieve those goals. Marketing is
a major part of the policies that are set by an organization, which helps them in raising the
awareness about the services or products that they offer. The most important goals that are
related to the marketing activities of the organization are, mainly increasing the sales of the
company (Solomon et al., 2014). Creating awareness regarding the brand of the organization
and the products that they offer is another major function of the marketing activity. The
marketing activities of the company help them to establish their brand in the market and get a
competitive edge over the organizations. Managing the brand of a company is also related to
the marketing activities and the efforts that are taken by the marketing managers help the
company to get a unique position in the industry.

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ANALYSIS OF MARKETING STRATEGY OF FITON
The three major marketing objectives of FitOn smartwatch are,
 The first and major objective related to FitOn smartwatch is to track the
activities of the individuals in such a way so that it can help them in managing
their health and fitness related activities.
 The FitOn smartwatch has a tracker which is able to track the workout related
records of a person and provide them the data related to the exercise that they
have performed. The health impacts and benefits of the workout sessions are
also detected the smartwatch. The design of the watch is made in such a
manner so that it can track the accurately track the physical activities of its
owner. The other features of the watch include, Bluetooth connectivity and
GPS systems as well. The watch can act as a partner for the setting of health
goals for an individual (Lee, Kozlenkova & Palmatier, 2015).
 The third and major objective related to marketing that gives a huge
competitive edge to the watch is that it is one of a kind with its unique feature
of “Blood Oxygen Saturation”. This gives the company an edge over the other
organization which manufacture the same kinds of products (Camilleri, 2018).
The three major objectives of the company have been set for the entry of FitOn
smartwatches in the Australian market. The marketing strategy that will be devised for the
market entry of the company will be based on these marketing objectives and the ways by
which these will be fulfilled.
Segmentation of market
Market segmentation can be defined as the process by which a large market area is
divided into smaller segments according to the likes and desires of the customers who belong
to that market. The market is segmented in such a way so that the segments consist of
customers who have similar types of choices and are all like-minded. The market segments
are different from each other and this requires for the organization to formulate different
strategies to fulfil the different needs of the people (Effing & Spil, 2016). The market
segmentation for FitOn smartwatches is done based on the different factors like, gender, age
group, marital status, income, occupation. Market segmentation can be of many types which
are behaviouristic, psychographic, geographic.
The segment of the market where the product can be marketed are the young
individuals of Australia who are the most concerned about the health related implications of

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ANALYSIS OF MARKETING STRATEGY OF FITON
the workout sessions that has been conducted by them. The aged population who are
suffering from any type of chronic diseases are also affected by the product as this will help
them in maintaining their health (Baltes, 2015).
Target customers
Target market can be defined as the process by which the larger market is divided into
smaller segments which are the most related to the product that is being marketed. Target
customers are a major part of the process of market segmentation. The efforts related to
marketing are related to the desires and needs of the customers which match the services or
products offered by the company. The major objective of target marketing is to aim the effort
related to the promotion of a product towards a specific group of customers. This makes the
process of pricing, distribution and promotion much more effective (Cuadros & Domínguez,
2014). The concept of target market is related to providing the focus to the marketing
activities. The target customers of FitOn smartwatches are the young citizens of the country
and the aged population as well. This implies that the product will be suitable for a vast range
of customers in the new market area where they are planning to expand.
Positioning of the brand
The Australian market already has three major brands related to smartwatches which
are, Apple, Samsung and Fitbit. These three organizations have been in the market for quite a
long time and have created their positions in the industry (Doherty, Kearns & O’Rourke,
2015). However, the major competitive advantage of FitOn in the Australian market is the
unique feature that it holds related to “Blood Oxygen Saturation”. The fitness related features
can face competition from the famous fitness watch brand named Fitbit. The organization can
gain a unique position in the market with the help of feature that it comprises and which
makes it better from the other companies (Davcik & Sharma, 2015).
Marketing strategy related to two Ps
Placement of the product
The FitOn smartwatch is planning to expand its operations from New York to
Australia. The major reason behind this decision is the health conscious culture of the citizens
of this country and the acceptance of these types of products. The expansion plan will start
from Sydney which is the most welcoming city for any type of business in Australia
(Kickstarter.com., 2018).

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ANALYSIS OF MARKETING STRATEGY OF FITON
Promotional strategy
The promotional strategy that is undertaken by the organization will be mainly related
to digital methods. Social media marketing can be used as an effective tool for the purpose of
promoting the watch in Australia. The unique features of the watch will be highlighted in the
promotional activities so that they are able create immense awareness regarding the brand in
the minds of the prospective consumers. The process of marketing with the help of digital
platforms has a wide reach so that they can reach more and more people within a small
amount of time (Kasemsap, 2018).
Action plan for six months after launch
A marketing action plan mainly provides an outline of tasks that are required to
accomplish any goal. This is the process which helps in breaking down the steps that are
taken within a provided timeline.
Step 1 - The major goal of the company is to successfully place the product in the
Australian market so that they can establish a successful brand for themselves.
Step 2 - The team that will be involved in the marketing plan are the marketing
managers, the advertising managers and some other employees of the company.
Step 3 - The first step would be to enter the market by opening franchised stores so
that the investment is not high and they can get time to understand the market. This decision
is to be taken by the management of the organization along with the financial advisors.
Step 4 - The next step is related to the promotion of the products in the country with
the help of digital tools and creating awareness (Cacciolatti & Lee, 2016).
Step 5 - The company needs to communicate the whole process with the concerned
people so that the action plan can be made successful within six months.
Conclusion
The report can be concluded with the learning that the FitOn smartwatches can think
of expanding their operations in the Australian market. The product will be able to gain a
huge market share with the help of the unique feature that is possesses. The health benefits
provided by the product is also a major attraction which will help them in gaining market.
The Australian market will therefore prove to be beneficial for the sales and profitability of
the company and the expansion related objectives will also be fulfilled.

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ANALYSIS OF MARKETING STRATEGY OF FITON
References
Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology &
Marketing, 32(1), 15-27.
Baltes, L. P. (2015). Content marketing-the fundamental tool of digital marketing. Bulletin of
the Transilvania University of Brasov. Economic Sciences. Series V, 8(2), 111.
Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing
capabilities and firm performance: The moderating role of market orientation,
marketing strategy and organisational power. Journal of Business Research, 69(12),
5597-5610.
Camilleri, M. A. (2018). Integrated Marketing Communications. In Travel Marketing,
Tourism Economics and the Airline Product (pp. 85-103). Springer, Cham.
Cuadros, A. J., & Domínguez, V. E. (2014). Customer segmentation model based on value
generation for marketing strategies formulation. Estudios Gerenciales, 30(130), 25-
30.
Davcik, N. S., & Sharma, P. (2015). Impact of product differentiation, marketing investments
and brand equity on pricing strategies: A brand level investigation. European Journal
of Marketing, 49(5/6), 760-781.
Doherty, A., Kearns, J., & O’Rourke, V. (2015). Integrating mobile into marketing
strategy. Journal of Digital & Social Media Marketing, 3(3), 279-287.
Effing, R., & Spil, T. A. (2016). The social strategy cone: Towards a framework for
evaluating social media strategies. International journal of information
management, 36(1), 1-8.
Kasemsap, K. (2018). The roles of corporate marketing strategies and brand management in
the global retail industry. Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and
Applications, 294.
Kickstarter.com. (2018). FitOn: World's 1st Blood Oxygen Saturation
Smartwatch. Kickstarter. Retrieved 8 February 2018, from

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https://www.kickstarter.com/projects/567949755/fiton-worlds-1st-blood-oxygen-
saturation-smartwatc?ref=popular
Lee, J. Y., Kozlenkova, I. V., & Palmatier, R. W. (2015). Structural marketing: Using
organizational structure to achieve marketing objectives. Journal of the Academy of
Marketing Science, 43(1), 73-99.
Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R.
(2014). Consumer behavior: Buying, having, and being (Vol. 10). Pearson.