An Analysis of the Marketing Mix: Apple Watch Series 4 vs. Fitbit 2

This report conducts a comparative analysis of the marketing mix strategies employed by Apple Watch Series 4 and Fitbit 2. It begins with an executive summary and an introduction that highlights the growing market for smart devices and wearables. The report then explores the target markets of both brands, examining their demographic and psychographic profiles. The core of the report focuses on the 4Ps of marketing: product (features, design), price (pricing strategies), place (distribution channels), and promotion (advertising, public relations). The report uses secondary research to analyze how each company utilizes these elements to attract consumers and maintain a competitive edge in the market. It also includes tables and appendices to support the analysis and concludes with a summary of findings and recommendations for both companies to improve their marketing strategies. The report is based on the coursework assignment for MG412, Principles of Marketing, and the assignment brief requested a comparison of the marketing mix for the two brands.

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Marketing Mix
By (Name)
Course
Professor
University
Date

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Executive summary
This report aims at addressing the different elements of the marketing mix. The report
covers the aspect of the 4Ps which include production element, price element, place or
distribution element and lastly promotion element. The report focuses on studying Apple watch
series 4 and Fitbit 2, exploring how both companies have employed the elements of marketing to
attract consumers to their brand. The report has applied secondary research by analyzing already
available data to estimate how marketing mix has been used by the two companies. As a result,
both companies have utilized a fair share of the marketing mix elements. However, Apple watch
series 4 has dominated the market due to their premium brands and additional features of their
smartwatch. The brand has attracted both high class and middle-class consumers due to the
production of entry-level watches and top end watches. However, the comparison cannot be
effectively established since the devices produced by the two companies are totally different.
Apple Inc. produces smartwatch while Fitbit focuses on tracker bands. The elements of the
marketing mix are important as they help brands position themselves in the already competitive
market. Upcoming brands need to first analyze the market in order to come up with an effective
marketing mix that will facilitate the success of the brand.

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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Comparison of target markets.....................................................................................................................4
Table 1: Comparison of shipment by volume..........................................................................................6
Product........................................................................................................................................................6
Price............................................................................................................................................................8
Place (distribution)......................................................................................................................................9
Promotion....................................................................................................................................................9
Conclusion...............................................................................................................................................10
Bibliography..............................................................................................................................................12
Appendices 1.............................................................................................................................................14
Appendices 2.............................................................................................................................................15

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Introduction
The fitbit2 watch is a waterproof device and can be used in track swimming. The tracker
can be worn in a pendant, wristband, and bangle. Apple series 4 is wearable smartwatch device.
It has been noted that the market for smart devices like fitbit2 and Apple has grown to 28.4
percent and basic wearable has declined by 9.2 percent apple has been on the leading pack with 4
million smartwatches shipped (IDC: The premier global market intelligence company, 2018).
This has raised the market share of apple to 16.1% putting the company ahead. Fitbit2, on the
other hand, has managed to ship 28.1% per year. The company has landed in the third place with
8.7% market share. The IDC which is the international data corporation estimated the last quarter
and the last year sales of wearable technology and the sales of the devices were up by 10.3%
over 2016 (IDC: The premier global market intelligence company, 2018). Among the top five
wearable firms are apple and fitbit2. Apple comes in the first position followed by fitbit2. This
report discusses the comparison between the marketing mix of apple series 4 and fitbit2.
Comparison of target markets
Fitbit2 and apple series target customers of both sexes, style, budget, and fitness
conscious and technological adept persons. The demographic factors are put into consideration
such as the age income and occupation (Fan, Lau, and Zhao, 2015, pp.30). Fitbit2 targets
teenagers and early forties adults. This is because the age distribution is more exposed to mobile
app technology compare to older people. Fitbit2 targets this age distribution bracket because it is
in pursuit of achieving fitness targets (Jackson and Ahuja, 2016, pp.180). Additionally, Fitbit2
targets average and above average income earners. Geographically, fitbit2 looks for individuals
who live in Australia and other individual living in rural, central and all types of terrain and

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climate. It also targets psychographic variables like personality, lifestyle, and motive due to its
fitness tracking capabilities. Both targets female and male Apple on the hand targets business
people which help to communicate with clients (Wu and Li, 2018, pp. 100). Both apple and
fitbit2 consider income, fitbit2 targets both middle and high-income earners while Apple targets
only high-income earners (Moradi, Aghaie and Hosseini, 2013, pp.118). The multinational
technology firm positions itself as a premium brand which offers goods and services with
advanced capabilities and functions for additional costs. Apple targets the bachelors, newly
married, full nest 1 and 2 in the life cycle stage. Apple series4 targets people in occupation fields
like professional managers and executives and students while fitbit2 targets people of all
professions.

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Table 1: Comparison of shipment by volume
(IDC: The premier global market intelligence company, 2018)
Product
The apple watch series 4 has been re-engineered to include aspects of curved edges for a
larger display. The watch runs on a new s4 chip making it the first smartwatch to run purely on a
system in package (Apple, 2018). The watch comes in a rectangular box with the watch artwork
on the surface showing different models. The watch has two finishes, the stainless steel and
aluminum model the watch also comes in 40mm and 44mm size. On the other hand, the fitbit2 is
thin and sleek. It is packed in an easy to open box to ease the unpacking process. Additionally,
the watch comes with interchangeable wristbands, pendant, and bangle (Fitbit.com, 2018).
Unlike its predecessor, the Fitbit Flex, fitbit2 is slim and has led lights that light up during

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notifications. It is thin and comfortable to wear on one’s wrist. Additionally, the tracker is
waterproof and has a reminder to notify the user to take at least 250 steps every hour. Apple
functional and emotional strategy is on the winning zone. The company attracts consumers
through its high-quality watch 4 series with new features such as GPS and cellular connections.
Apple watch 4 also connects to the emotional needs by using the motivation rings. Each task has
a ring that fills up as the activity is being done (Lee, et al., 2014, pp.2160). Since the Fitbit2 is
purely an activity tracker, the device can be operated on diverse operating platforms such as iOS,
Android, and windows. The device can also last up to five days on a single charge and it is
perfectly slim for an activity tracker. Apple focuses on delivering a seamless smartwatch.
Although apple watch series 4 is a bit pricey as compared to the Fitbit, the device has a top of the
edge s4 processor. The fitbit2 brand value aims at providing essential activity tracker at an
affordable price. According to Aaker brand personality, Apple watch 4 series comes out as
competent and sophisticated. The Fitbit2, on the other hand, is sincere by being wholesome in its
activity tracking and cheerful.

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Price
Online store Apple
watch series
4 (44mm)
Apple watch
series 4
(40mm)
Fitbit 2 Garmin vivo
active 3
Huawei fit
Amazon $ 519 $ 419 $ 85 $ 264 $ 99
Apple store $ 499 $ 399 n/a n\a n/a
Best-buy $ 515 $ 415 $ 89 $ 268 $ 102
Alibaba n/a n/a $ 80 $ 270 $ 100
Fitbit n/a n/a $ 79 n/a n/a
In its pricing strategy, Apple Inc. uses premium pricing strategy in its Apple
watch series 4. The company has therefore set a high price for the smartwatch with the aim of
maximizing the profit margin. The company has optimized the market by introducing different
models of the Apple watch series 4. There is the 40mm watch and 44mm watch. The 40mm
watch is the entry level watch and 44mm is the top end price watch. This strategy helps Apple in
developing multiple prices set for the watches. The average sale price is therefore maintained as
the watch caters for different markets. Fitbit 2 is primarily a tracking device. The company has
established itself solidly into the market (Russell, Wood, and Previte, 2013, pp.230). Their low
pricing strategy allows the device to attract potential consumers thinking of buying a fitness
device. Fitbit is using the following move in its pricing strategy. For example, the Fitbit 2 costs
20 dollars more than what Fitbit flex originally sold for, and 40 dollars more than its recent
pricing. The pricing of the Fitbit company is based on the features of a device. The more the
features the higher the pricing.

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Place (distribution).
The approach taken by Apple Inc. in selling the Apple watch series 4 is in line with the
company’s marketing mix. The company distributes the product through company-owned
locations and other parties that the company has authorized to sell and distribute its products.
This includes; Apple store locations, company website and online store for mobile and desktop,
authorized sellers and lastly telecommunication companies (Counterpoint Research, 2018).
Apple Inc. considers the watch to be a premium-brand hence it is only sold through the above
distribution channels (Chaffin, 2018). Fitbit’s distribution is widely through the online channel.
The Fitbit2 can be purchased at Fitbit main website and also is found in numerous online shops.
The Fitbit 2 market is open and the distribution focuses on attracting the maximum number of
consumers. The company does not have a shop only selling their brand.
Promotion
Apple Inc. promotes the watch series 4 in numerous ways, involving diverse
communication channels and strategies. Among its strategies, the company employs
advertisement on various platforms such as Google’s digital advertising network and new
websites of technology (Datta, Ailawadi & van Heerden, 2017, pp.19). Apple Inc. has signed
agreements with prominent websites to promote the company’s products. The Apple watch series
4 is additionally advertised through personal selling. The employees at the store provide
information to attract customers to buy the product. Moreover, the company embraces public
relations with aim of optimizing the product’s image. For instance, Apple events, exclusive
interviews, and press releases are critically strategized to promote positive publicity. Apple
presents itself as being socially conscious through initiatives such as ConnectED, aiming at

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improving education and promoting business. Fitbit company promotes the Fitbit2 mainly
through advertisement. This is done through small clips on tv and also ads on magazines and
newspapers. The fitbit2 is further promoted through events organized by the company, where
customers come and try the product (Rahmani, Emamisaleh & Yadegari, 2015, pp. 104).
Through this event, the company further offer demonstrations as to how the tracker works. The
main aim of Fitbit’s promotional strategy is to attract more consumers to their product,
capitalizing mainly on the affordability of the fitbit2.
Conclusion
Apple’s marketing mix is based primarily on the premium image in its Apple watch
series 4. The pricing of the smartwatch is higher due to the innovation and top-notch technology
used in its production. The company also relies on advertisement as key for promoting the watch.
Additionally, the company distribution is based only on authorized sellers and Apple Inc.
subsidiaries. Fitbit 2 marketing mix is more conventional. Fitbit company base its tracker band
on affordability and unique features that aim at maximizing activities tracking. The company is
more open on its distribution by allowing mass distribution. The Fitbit 2 is promoted through
exclusive Fitbit events. The device is also sleek and thin to fit perfectly as a tracker.
Additionally, Fitbit 2 has interchangeable accessories for additional personalization. Both
companies aim at maximizing profit by attracting more consumers to their products. They also
focus on positioning themselves in the smartwatch and tracker industry. The Apple watch series
4 has taken the bigger market share in the smartwatch industry has shown in the appendices.
Apple could improve its elements of market share by tapping more on the distribution channels
by inviting various online platforms to sell the Apple watch series 4. Consequently, Fitbit can

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improve their marketing mix through the production of high-end tracker bands to improve on the
average sale price.

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Bibliography
Apple. (2018). Apple Watch Series 4 - Design. [online] Available at:
https://www.apple.com/apple-watch-series-4/design/ [Accessed 22 Nov. 2018].
Chaffin, B. (2018). Apple Watch Retakes #1 Slot in Wearables in Q3 - The Mac Observer.
[online] The Mac Observer. Available at: https://www.macobserver.com/analysis/apple-watch-
retakes-1-slot-wearables-q3/ [Accessed 22 Nov. 2018].
Counterpoint Research. (2018). Global Smartwatch Shipments Grew 37%YoY in Q2 2018, Apple
Watch Series 1 the Most Popular Model - Counterpoint Research. [online] Available at:
https://www.counterpointresearch.com/global-smartwatch-shipments-grew-37yoy-q2-2018/
[Accessed 22 Nov. 2018].
Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response? Journal of
Marketing, 81(3), 1-20.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence
through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Fitbit.com. (2018). Fitbit Flex 2™ Fitness Wristband. [online] Available at:
https://www.fitbit.com/uk/flex2 [Accessed 22 Nov. 2018].
IDC: The premier global market intelligence company. (2018). Wearable Device Shipments
Slow in Q1 2018 as Consumers Shift from Basic Wearables to Smarter Devices, According to
IDC. [online] Available at: https://www.idc.com/getdoc.jsp?containerId=prUS43900918
[Accessed 22 Nov. 2018].