Marketing Mix Analysis of Apple Watch Series 4 and Fitbit 2

This report analyzes the marketing mix of Apple Watch Series 4 and Fitbit 2, comparing their target markets, product features, pricing strategies, distribution channels, and promotional activities.

Principles of Marketing

EXECUTIVE SUMMARY
This report summarized the marketing mix of two brands, that is, Apple Watch Series 4
and Fitbit 2, how the two brands have applied marketing mix to achieve its objectives, why it has
applied the 4 Ps in such a way and what are the ways to improve the use of marketing mix.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
FINDINGS.......................................................................................................................................4
Comparison of target markets......................................................................................................4
Product.........................................................................................................................................4
Price.............................................................................................................................................5
Place.............................................................................................................................................6
Promotion....................................................................................................................................7
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
An effective marketing strategy is very important to make a difference between a product
selling or being ignored by the consumers. To be successful marketing leaders utilize marketing
principles as the business strategies. The aim of this report is to analyse how the marketing
principles have been applied by the well-known brands, Apple Watch Series 4 and Fitbit2. Apple
Watch Series 4 and Fitbit2 are the smart watches designed and sold by Apple and Fitbit. It has
been incorporated fitness tracking and health oriented capabilities while Apple watch is also
integrated with iOS and other apple products and services. Apple watch has a market share of
47.9% whereas Fitbit watch has a market share of 11.3% worldwide in 2019. Also, the sales
trend shows the fluctuations for both the brands, Apple has a sales of 6.8 million units while
Fitbit has 1.6 million units in Q3 2019. This report shows the comparative analysis of these two
brands based on its target market and 4Ps of marketing, how each is successful in
implementation of 4Ps and how each brand can improve it to achieve more success.
FINDINGS
Comparison of target markets
The target market for Apple watch series 4 is the Apple fans and power users, it has
several features which may interest business professionals as well (Misof and Schwarz, 2017). It
is designed for everyone above 18, who wants to show off, are health conscious, to be multi
tasking etc. Its price is approx. £399 which means its target audience is middle and upper income
class people. Whereas Fitbit 2 is only for the people who want to be healthy and fit. Its current
consumers are between the age of 18-34 years. Its price is near to £149.99 which means it has
targeted lower and middle income group.
Product
In this Levitt model of brand has been used to analyse the these two brands. It is method
used to structure the product portfolio to target the customers. It has five product levels, first is
core benefits, it refers to the fundamental needs and wants that consumers want to satisfy through
that product or services (Mandarić and Sekulić, 2018). Apple watch is operates on apple watch
OS5 operating system, with enhanced fitness and health tracking features and other apple

product and services. It also has electrocardiogram (ECG) which can read the heart activity.
Whereas in Fitbit 2, it only takes care of the health and fitness and monitors heart but does not
offer electrocardiogram. Second is generic products, it refers to the attributes required or
necessary for it to function. In Apple watch, it is the fitness which can be satisfied with the other
low end apple products and in case of Fitbit the same applies, some other previous version can be
used to satisfy the same need (Apple Watch Series 4 v Fitbit Versa: Comparing two of the best
smartwatches. 2019). Third is expected product, it refers to the characteristics that a customer
expects and agree to while purchasing. Battery life is the area where Fitbit beats Apple Watch 4
as Fitbit has promises 5+ days of battery life whereas Apple Watch 4 only promises up to 18
hours. Forth is augmented product, it refers to the additional features and benefits that can
differentiate the product from its competitors. Apple watch has multiple features that sets it apart
from its competitors. Fitbit 2 comes in only one size 40 mm while Apple watch come with a two
size of 40 mm and 44 mm. Straps of Fitbit 2 come with silicon or woven, while Apple watch
come with a sport, leather or stainless steel straps. Another point of difference is that Apple
watch 4 comes with a digital crown while Fitbit comes with a standard button. The last is
potential product, it refers to all the future transformation a product may go through. In both the
brands, free software upgrades with new and useful features.
With reference to the Aasker's brand of personality is a framework defined on the sets of
human characteristics associated with the brand (Toldos-Romero and Orozco-Gómez, 2015). It
has 5 core dimensions i.e., sincerity, Excitement, competence, sophistication, and ruggedness.
Based on this Apple watch can be ranked as exciting, competence and sophistication as it is
imaginative, up to date, reliable, and intelligent, successful, charming and upper class. Whereas
Fitbit can be ranked on sincerity and competence as it is down to earth, honest, wholesome,
cheerful, reliable and successful.
Price
Brand Pricing Research
Apple Watch Series 4 Apple set the prices of its products higher to build a luxury
brand. Every firm knows that a higher price is essential to
create a desire for something unique in the customers. Price of
apple watch is no doubt higher than the similar product but it

has confidence in it loyal customers.
Fitbit 2 Fitbit sets its prices in such away to boost the customer loyalty
and sentiments. Even if it can charge higher price, it decides to
set price based on customer interest and what the customer is
willing to pay.
Conclusion: Therefore, Apple is using piece skimming method to price its products but it
follows it at the initial stage of introduction for its products. Fitbit is using value based pricing
policy, where company can set prices of its products based on its customers willingness to pay.
Place
Apple is global company having its watch is easily available in different countries like
India, Canada, UK, South Africa, Indonesia etc. (Marom and Sade, 2016). Apple has its owned
company location and third party to distribute its products. It has a strong distribution network
which helps in making its products available to the customers. Apple has its own outlets and
boutiques tie-up for proper distribution (ROBERTA GREENSPAN, 2019). It stocks its products
based on the demand at different location because it is luxury brand with limited demand. Fitbit
also a worldwide presence. It sells its products through its online website and through retailers
(Rogerson James, 2019). It follows an intensive marketing strategy where it tries provide its
products to as many retailers as possible. It has also partnered with several delivery service
providers to provide timely deliveries.

Promotion
Apple has been promoting its products through television, print media and social networking
sites like Facebook, Instagram etc. It extensively advertised in Vogue magazine, focussing on
band style and body combinations with a 12-page spread (Salo, 2019). Positioning its new
features and luxury attached with it in the mind of the consumers. This how it has created its
brand image. Apple keeps on highlighting its features in every campaign which induce consumers
to have a desire for the product (Gupta, 2017). Fitbit on the other hand, has relied on television
and social media advertising, highlighting the health benefit features to its customers by
increasing health awareness. It also undergoes several sales promotion by taking a part in various
trade exhibition, contests and events. It has over one hundred thousand likes or followers which
are exposed to frequent Fitbit content.
CONCLUSION
From the above analysis it can be concluded that Apple has done far better utilization of
4Ps of marketing mix as compared to Fitbit. Apple watch series 4, has various features which can
be beneficial to an individual as it almost replace mobile phones. Apple should try attract other
consumers by coming up with offers and discounts. Fitbit has to be clear in setting its target
segment and its requirement. Fitbit needs to be innovative to face the competitors and meet the
challenges and consumer demand and preferences.
RECOMMENDATIONS
APPLE WATCH SERIES 4
Illus
tration 1: Fitbit Store (Source:http://www.msasf.com/retail#Fitbit. 2019)

 It should come up with products which can target lower income group which can expand
its business along with an aim of bringing luxury to everyone.
 It should offer discounts and other benefits to its customers when it over its prices for a
short period.
 It should endorse its products through celebrities which will increase the acceptance of
the product by consumers which will help in making it luxury product.
 It should increase its sells through large retailers which can attract large consumers which
in turn increase its sales.
Fitbit
 It needs to come-up with a plan to attract more consumers by working on the needs and
preferences.
 It should start collecting customer data and send them messages through email and SMS
which will help in repeat purchase by customers.
 It should open retail stores where it can offer all its products which would save cost as
wholesalers and retailer margins would be removed.
 It should increase the use of digital marketing techniques to improve online traffic on its
website.
 It should also undergo training for its sales force and customer service which plays a vital
role in delivering value to customers and provide incentives to the employees on the basis
of the performance.

REFERENCES
Books and Journals
Gupta, P., 2017. Innovation in Advertisement Using Technology. Journal of Accounting,
Finance & Marketing Technology. 1(03). pp.41-47.
Mandarić, M. and Sekulić, D., 2018, May. BRAND MANAGEMENT IN THE FUNCTION OF
GLOBAL PROGRESS OF COMPANIES: INVESTIGATION OF THE INNOVATION
AND INFORMATION TECHNOLOGY ROLE. In TISC-Tourism International
Scientific Conference Vrnjačka Banja (Vol. 3, No. 1, pp. 61-78).
Marom, D. and Sade, O., 2016. Angel-Crowdfunding Wearable Technology.
Misof, G. and Schwarz, M., 2017. Innovative Brand Management . Wiesbaden: Springer
specialist media Wiesbaden.
Salo, M. O. I., 2019. Selling and marketing music through digital platforms as an independent
musician.
Silva, D. N. P., Cardoso, A. and Basto, M., Study on the evaluation of the internal value of the
brand Estudo sobre a avaliação do valor interno da marca.
Toldos-Romero, M. D. L. P. and Orozco-Gómez, M. M., 2015. Brand personality and purchase
intention. European Business Review. 27(5). pp.462-476.
Online
Apple Watch Series 4 v Fitbit Versa: Comparing two of the best smartwatches. 2019. [Online].
Available Through: <https://www.wareable.com/smartwatches/apple-watch-series-4-vs-
Fitbit-versa-6524>.
ROBERTA GREENSPAN, 2019. Apple Inc.’s Marketing Mix or 4Ps (An Analysis). [Online].
Available Through: <http://panmore.com/apple-inc-marketing-mix-4ps>.
Rogerson James, 2019. Fitbit Versa 2 vs Apple Watch 4. [Online]. Available Through:
<https://www.techradar.com/in/news/Fitbit-versa-2-vs-apple-watch-4>.