Comparative Analysis: Apple Watch Series 6 and Fitbit Versa 2 Report

This report provides a comparative analysis of the marketing strategies employed by Apple Watch Series 6 and Fitbit Versa 2. The executive summary highlights the key differences in their target markets, with Apple focusing on a luxury market segment and Fitbit targeting fitness-oriented consumers. The report delves into the product/brand strategies, examining the features and functionalities of each smartwatch, and analyzes their pricing, place, and promotional tactics. Apple utilizes a differentiation pricing strategy and direct distribution channels, while Fitbit adopts an affordable pricing model and a mix of online and offline distribution. The report concludes that both companies have successfully established their brand value through tailored marketing approaches, with Apple leading in global market share. The report uses secondary research, including books and journals, to support its findings.

Principles of
Marketing

EXECUTIVE SUMMARY
This report is aimed to conduct a comparison between the top two brands which are
popular in the market for their product smart watch. The Apple offers smartwatch and the Fitbit
offers smartwatch along with tracking feature. Both have their target audience separate and are
leading in their markets. Apple has being leading in the global market share as compared to
Fitbit. After comparing the two brands, both the companies have established their brand value in
their target markets and have adopted different strategies to promote their products. Both the
watches have different features and functions which makes them different from each other. For
completing this report, secondary research has been used in order complete the assignment.
Secondary sources includes use of books and journals.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Target market of Apple watch series 6 and Fitbit Versa 2..........................................................4
Product/ brand of the organisation..............................................................................................5
Price strategies............................................................................................................................5
Place tactics.................................................................................................................................6
Promotional tactics......................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term principles of marketing is an idea of marketing which the companies uses so
that it can build the effective marketing strategy. The companies build their production
promotion strategy on the basis of principles of marketing so that effective promotion is done of
the offering which the organisation is offering. Marketing strategy is the overall game plan of the
company to reach the potential customers and turn it into the actual customer for the product or
service which it is offering (Bonaparte, 2019). This report is in context of Apple watch series 6
and Fitbit Versa 2. these two are the most popular companies dealing in smart watch. This report
shall cover the target market and marketing mix of both the companies.
MAIN BODY
Target market of Apple watch series 6 and Fitbit Versa 2.
Apple Inc is a multinational company of America which deals in technological products.
It is headquartered in Cupertino, California which develop, design and sell the computer
software, consumer electronic and online services. Its hardware products include Apple watch
smartwatch, iPhone, iPad, Macbook, Apple TV digital media player and many other. Its software
includes macOS, iOS, iPadOS, watchOS and many other. Fitbit Inc is a multinational company
in America which deals in fitness and consumer electronics. It is situated in San Francisco,
California. Its products includes smartwatches, activity tracker, technological devices which are
wireless and many other (Eastman and et. al., 2016).
According to the latest reports, the Apple watch has lead in the global market of
smartwatch with a market share of 55% in the first quarter of 2020. on the other hand, Fitbit
smartwatch has a market share of close to 40% after apple takeover the market share.
Apple watch series 6
The Apple company targets the the customers who have no budget restrictions as it deals
in luxury products. It target the people who enjoy the luxury watches. The company mainly
targets men and women across all age and maintain a balance between them with their focus
significantly on the age group of 40+. it mainly focuses on people who can afford expensive
products. It mainly targets audience according to demography with its major concern on age and
the income (Hisrich and Ramadani, 2017).
Fitbit Versa 2

This company mainly target the people who are above 30 years of age. Those people who
need motivation to become active and are overweight and also the active people who wants to be
monitored. The company is mainly focuses on people who needs fitness motivation. It targets its
audience on the basis of demography with age as a major factor.
Product/ brand of the organisation.
The Apple Inc has the unified range of products in terms of software and hardware both.
The company deals in mobile phones, tablets, computers, TV, smartwatches and many other. Its
products stands out due to its innovative design and adds customised possibilities in countless
form through its wristband which matches all taste and style. The company offers different range
of watches which includes Apple watch generation 1, series 1, 2, 3, 4, 5, 6 and SE. The apple
watch includes basic accessories like watch, charging cable and power adapter, instruction
manual and the wristband. In case a customer is willing to pay more, it includes accessories like
additional wristbands, transport cases and many other (Jain, 2019).
Fitbit Versa is also a superior health and fitness tracking device apart from the
smartwatch. It is appealing to health organisations and B2B. The Fitbit Versa is a 24mm tall and
wide watch which is slightly smaller than apple watch which is 33.3 mm tall and 38.6 mm wide.
It has Sp02 sensor which helps in measuring the blood oxygen which is missing in apple watch.
It has 4 days battery life whereas apple has 18 hours of battery life (Tontuș, 2018).
Price strategies
Apple Inc feels difficult to set its price due to demand pressure and competition. It does
not adopt penetration price but usually set the price higher than the competitors in order
maximise its earning with the early adopters. It uses high prices for its product and avoid price
penetration. It uses differentiation pricing strategy to stand out from its competitors as it has ita
loyal customers who are willing to pay more for its luxury products (Palmatier and Crecelius,
2019). The company does market skimming before setting its price so that it can set its price
higer than its competitors.
Fitbit versa has adopted a affordable pricing for its watch. The fitbit Versa cost less than
the apple watch which gives competitive advantage to the Fitbit as it is adopted by the health
organisations the most. Its tracking system has enabled the insurance and health organisations to
monitor the improvement of its patients.

Place tactics
The apple Inc places its product in as many places as it can which are close to its target
customers. It focuses on differentiation so it adopts direct channel to deliver its product. The
Apple company has located its stores in its strategic market which are in major cities and malls
so that customers can directly purchase the product from its store. The stores are instructed to
give good service to its customers. For instance the customer for Gold apple watch edition is
given special treatment where it is invited in a special room separate from store to rest
comfortably so that advice is given to them and special attention is also given to attract potential
customer (Porral and Stanton, 2017).
It has also online stores where company offers complete product portfolio to grow its
sales channel. It also has apple refurnished store where returned products are sold at discounted
price. It also has large network of retailer who sell the apple watch to end customer.
Fitbit versa is available online at the website of Fitbit and other outlets like amazon. It
also has contacted other offline stores in 86 countries which directly sell the products to the end
customer. It does not spend on opening a retail shop as its major target is B2B and health
organisations (Razakova, Bekkulieva and Istaeva, 2019).
Promotional tactics
Apple Inc spends huge funds on its promotion. It uses different platforms like TV,
magazines and billboards to promote its offerings. The company also signs agreement with
different organisations in order to promote its product. For example, Apple has collaborated with
Nike Inc to promote the product of Nike Fitness tracker. The company also uses traditional
promotional activity of product placement where it uses popular shows to promote its product
like American shows were the actors are seen wearing apple watches.
Fitbit versa uses traditional marketing strategy of promoting its product on TV through
short clips and advertisements in the newspaper and magazines. In order to attract its target
customers, it also promote its product on events which is organised by the company for the
corporates and public (Sabaghinejad and et. al., 2018). The company also demonstrate its
product in learning activities conducted in fitness centres, corporates and hospitals so that it can
address the questions and concerns of the people.

CONCLUSION
It is concluded from the above report that marketing strategies help the companies in
communicating its products effectively to the potential and existing customers. The companies
uses principles of marketing in order to effectively promote its promote and services. The target
market of apple watch is mainly high income people and the Fitbit versa has target audience of
30+ age who are willing to become fit. After comparing the market share of both the companies,
apple has been leading the global market share as compared to Fitbit versa. The apple company
adopts differentiation pricing strategy while Fitbit adopts affordable pricing so that its product
can be reached to its target audience in cost effective manner (Steenkamp, 2017). The apple
company has different direct stores and online stores to deliver its product and also has
refurnished store to sell its returned product in discounted rate and on the other hand, Fitbit does
not has its own retail store but has collaborated with other stores to deliver its product. Lastly
apple uses different promotional activities to communicate its offering which includes TV,
newspaper, billboards, signing agreements and many other and on the other hand Fitbit uses TV,
newspaper as traditional marketing strategy and organises event to demonstrate its product to
closely connect with its potential market.

REFERENCES
Books and Journals
Bonaparte, Y.L., 2019. Sustainable outcomes of an experiential learning project in a principles of
marketing course. Journal of Global Scholars of Marketing Science. 29(1). pp.7-14.
Eastman and et. al., 2016. THE BRAND PROJECT: INNOVATIVE STUDENT RESEARCH
IN A PRINCIPLES OF MARKETING CLASSROOM. THE ASSOCIATION OF
COLLEGIATE MARKETING EDUCATORS, p.74.
Hisrich, R.D. and Ramadani, V., 2017. Entrepreneurial marketing mix. In Effective
Entrepreneurial Management (pp. 75-99). Springer, Cham.
Jain, K., 2019. Apple (Social Media Strategy). NOLEGEIN-Journal of Consumer Behavior &
Market Research, pp.43-48.
Palmatier, R.W. and Crecelius, A.T., 2019. The “first principles” of marketing strategy. Ams
Review. 9(1-2). pp.5-26.
Porral, C.C. and Stanton, J.L., 2017. Principles of marketing. ESIC Editorial.
Razakova, D.I., Bekkulieva, B.M. and Istaeva, A.A., 2019. Formation and development of
educational services on the marketing principles. Вестник университета Туран. (4).
pp.278-283.
Sabaghinejad and et. al., 2018. Retracted: A survey of jundishapur medical sciences university
students viewpoints in Ahvaz considering the effective components in the marketing
process of libraries based on the principles of marketing mix (9P's model). Journal of
Fundamental and Applied Sciences. 10(6S).
Steenkamp, J.B., 2017. Global marketing mix decisions: global integration, not standardization.
In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London.
Tontuș, H.Ö., 2018. Promotion of health tourism and evaluation of the principles of marketing of
health services. Journal of Multidisciplinary Academic Tourism. 3(1). pp.67-88.