Comparison of Apple Watch Series 6 and Fitbit Versa 2: Target Market, Product, Price, Place, and Promotion

This report compares the target market, product features, pricing strategies, distribution channels, and promotional activities of Apple Watch Series 6 and Fitbit Versa 2.

Principles of marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Target market...............................................................................................................................3
Product.........................................................................................................................................3
Price.............................................................................................................................................4
Place.............................................................................................................................................5
Promotion....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The aim of the report is compare Apple watch series 6’s target market with Fit bit Versa 2’s
target market. Also analysing the product, price, place and promotion mix of both the products.
Apple is an American multinational technology company which was founded in 1976 and has
55% share in the global smart watch market. Over the years this company is adding health
features like heart rate, ECG, cycle tracking and also SpO2 sensor etc. Fit bit is an American
fitness company which was founded in 2007 and has 6% of the global wearable market share.
The company has added many features like oxygen saturation, personalized clock face, 6+ day
battery life, text voice replies etc.
MAIN BODY
Target market
Target market are those end customers to whom the company wants to sell their products.
Target market is segmented and targeted so that it is easy for the organization to make strategies
for different segments to achieve the objective (Ruiz-Pava. and Forero-Pineda, 2018). It means
deploying the techniques of marketing for particular segment and giving direction to the brand.
To define target market is very important as all the strategies will be based on the target market.
Apple watch series 6 – The target market of Apple watch series 6 are generally who are well
informed, brand driven avid technology who are in the income levels of medium, medium-high.
They also targets the people who appreciates innovation. This market segment believes that the
smart watch only have features but also should look beautiful, elegant and trendy. They target
the customers who do not have any budget restriction and loves luxury.
Fit bit versa 2 – The target market of Fit bit versa 2 are the individuals who are above the age
of 30+ and who needs motivation to be active. Even the people who are active but want to
monitor they lifestyle and workouts. They want the targeted people should make activity fun
through collective badges and challenges with others to stay active and fit (Price, 2017). Their
focus was also to create people aware about fitness as from past few years many health issues
were popping up therefore they took this as opportunity and linked fitness with trend.
Product
A product is physical good that is offered in market to consumers and has some value that can
satisfy them. It is simply a bundle of benefits which the marketers offer and charge a price for it
(Mayer, Melitz. and Ottaviano, 2016). These are called product portfolio.
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Apple watch series 6 – The shape of Apple watch series 6 is square shaped which has big and
beautiful screen and also offers two sizes 44mm and 40mm. it has the same thinner and smaller
case which was in series 4 and also low power OLED which was in series 5. The Always-on
display is 2.5 times brighter than series5. It has also added Always-on altimeter which is more
power efficient. The product is also water resistant and also have certain health related feature is
an add on. It also offers faster charging facility (Išoraitė, 2016). It also have an added feature of
black ceramic and sapphire crystal backing and a digital crown with haptic feedback. The
following colour scheme are available in Apple watch series 6 : silver, gold, space grey, blue,
product red, graphite, space black, titanium.
Fit bit verso 2 – The shape of Fit bit versa2 is rounded shaped square and the bezel is smaller. It
has introduced some new features which like amazon’s voice assistant and a sleep tracking
feature. It comes under three colour scheme which are black, rose gold and grey. It is one button
on the left side. It is slightly larger than the previous range.
Price
Price is the value that is put for a product or service and customer are willing to pay that value in
exchange of the product and service. It is the amount of money for which a thing is bought or
sold. Demand for the product, customers’ ability to pay, the cost incurred and also the prices
charged by the competitors are kept in mind by Apple and Fit Bit Company when determining
the price of their smart watch (Argade, 2020). There are various strategies that both the companies
apply to fix the price of the smart watches.
Apple watch series 6 – The price of this product costs around 396 pounds to 479 pounds. The
price of the product is higher than Fit bit versa but then also it is more successful in capturing
customers. They follow a premium pricing strategy for their smart watch. They do not focus on
lowers income category they set the prices for high income group who are in premium category.
Apple has managed to stretch to cover the perception of value for design, material, craftsmanship
and prestige. The price strategy of Apple watch series 6 was structured around advanced
features.
Fit bit versa 2 – The fit bit versa 2 costs around 199 pounds they focus on people who are of
medium income group and want to monitor their fitness (Kienzler. and Kowalkowski, 2017). They
followed aggressive pricing strategy for this product. The smart watch is not only fastest growing
subset of fitness wearable but also company’s aggressive priced smart watch. The price strategy
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they have adopted is also known as undercutting which means they intended to drive out
competitors from the market.
Place
Place is the channel or route or the point of sale through which products move from the source to
end users. The company makes an effort to position and distribute the product in a place which is
accessible to potential buyers. It involves various parties like chain of individuals and institutions
such as distributors, wholesalers, retailers and others who are involved in the network (Argade,
2020). Place mix is concerned with channel management where the company determined various
sales and marketing techniques to reach the customers. The aim is to align the communication
between the customer and the company.
Apple watch series 6 – This product is stocked by the exclusive outlets of Apple stores or
registered distributor of Apple. This product comes in tech brand category in which each product
is serving distinct needs and playing a distinct role in their customer’s life. Some of the brand
values of Apple products are: they build products they believe in, they are here to make a
positive difference in society as well as make a profit. They care about what they do and many
more.
Fitbit verso 2 – This product is stocked in many stores in which distributors have taken the
distributary. This product comes under wearable and premium brand. A brand value are the core
or base for which the company stands. These brand values serves as a guide and gives direction
to the company for further actions. This product have the values of keeping the customer fit and
trendy at the same time.
Promotion
Promotion is raising the awareness about the product. It is persuasive communication done the
organization for the customers. It also involves informing, influencing and persuading the
customers to purchase the products. The main aim of promotion is to increase sales and
maximization of profits and also making long term relationship with the customer (Budianto,
Bastaman. and Herman, 2020). There are various elements of promotion like advertising which is
generally paid, public relations which focuses on building good image of the brand, personal
selling in which salesperson are hired to promote and sell the products of the company.
Apple watch series 6 – for this product the company uses commercials and print ads. When the
new watch is launched commercial ads are flowed and print ads run throughout the product’s life
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(Eisend, 2016). Apple communicates this product through the latest technology or through digital
platforms. Apple watch series maintain a top position.
Fit bit verso 2 – For this product the company uses campaign to launch their watches. They do it
by print media and other means. Fit bit position itself as a premium brand they are also
positioning themselves to be a key digital health partner (Roux, Tafani. and Vigneron, 2017). They
use commercials, billboards and digital platform to convey their brand and product. The
company also indulges in making public relations with the customers.
CONCLUSION
It can be concluded that the target market of apple watch series 6 are the people who are
informed and very aware about the trends and surrounding and also of high income group. The
target market of fitbit verso 2 are people above the age of 30 and are of medium to high income
group. Smart watch of apple watch series 6 have many new and added features and same is the
case with fitbit verso 2. The price of Apple watch is higher as compared to Fit bit as apple caters
to luxury brand and tech brand. Both the brands have applied 4P’s very efficiently and
effectively. These brand applied 4P’s to evaluate products and their brand value, to identify their
pricing strategies, to know the distribution of the brand and product and the way they
communicate it. Apple was more successful in applying 4P’s and to improve their use of 4P’s
various measure must be taken.
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REFERENCES
Books and Journals
Ruiz-Pava, G. and Forero-Pineda, C., 2018. Internal and external search strategies of innovative firms:
the role of the target market. Journal of Knowledge Management.
Price, L.G., 2017. Advertisements based on target market. U.S. Patent 9,646,288.
Mayer, T., Melitz, M.J. and Ottaviano, G.I., 2016. Product mix and firm productivity responses to trade
competition (No. w22433). National Bureau of Economic Research.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Argade, S.L., 2020. Product Mix and Price Mix.
Kienzler, M. and Kowalkowski, C., 2017. Pricing strategy: A review of 22 years of marketing
research. Journal of Business Research. 78. pp.101-110.
Argade, S.L., 2020. Place Mix and Promotion Mix.
Budianto, A., Bastaman, I.D. and Herman, F., 2020. PROMOTION MIX, INDIVIDUAL INTERNAL
ENVIRONMENT, AND PURCHASE DECISION MAKING IN MINIMARKET. Jurnal Bisnis dan
Manajemen. 21(1). pp.27-42.
Eisend, M., 2016. Comment: Advertising, communication, and brands. Journal of Advertising. 45(3).
pp.353-355.
Roux, E., Tafani, E. and Vigneron, F., 2017. Values associated with luxury brand consumption and the
role of gender. Journal of Business Research. 71. pp.102-113.
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