Comparative Analysis: Apple Watch vs Fitbit Marketing Strategies

This report provides a comparative analysis of the marketing strategies employed by Apple Watch and Fitbit, focusing on the core principles of marketing, often referred to as the 4Ps: product, price, place, and promotion. The introduction defines the principles of marketing and highlights the significance of these elements in creating and maintaining customer relationships. The report then delves into a detailed examination of the product offerings, pricing strategies, distribution channels, and promotional activities of both brands. The analysis reveals that Apple Watch has a more effective marketing mix due to its wider product range, robust hardware and software, cost leadership pricing strategy, extensive distribution network, and impactful promotional techniques. The report also discusses the target markets for both brands, concluding that Apple Watch targets a higher-income demographic, while Fitbit focuses on a more specific audience. Ultimately, the report concludes that Apple Watch demonstrates a more efficient application of marketing principles compared to Fitbit.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Marketing mix of Apple watch and Fitbit(4Ps)-.....................................................................1
CONCLUSION................................................................................................................................5

INTRODUCTION
Principles of marketing consists of the strategies and tactics used to identify, create and maintain
satisfying relationship with the customers that result in value for both the customer and the
marketer. It is a social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging value with others. The principle of marketing
includes the product, price, place and promotion (Eastman, 2017). For creating effective
marketing strategy, these principles are followed for making the comparison between the
marketing mix of different firms so that best company can be chosen by the customers. The
present study is based on two brands that includes Apple watch and Fitbit 2, where Apple watch
deals in smartwatches, fitness trackers and health oriented capabilities with IOS software while
Fitbit 2 deals in heart rate fitness bands and trackers (Flora, Schooler. and Pierson, 2018).
Furthermore, the report describes the marketing mix elements of both the brands.
1. Marketing mix of Apple watch and Fitbit(4Ps)-
Marketing mix elements Apple Watch Fitbit-2
Product This brand operates to satisfy
customer's demand for
customization of smartwatch
in order to enhance the
capability of the smartphone. It
is the product which bring
superior value to the users.
The hardware and software of
this brand turn out to be robust
construction with the use of
fine materials. Outstanding
and innovative designs of
wristbands matching all taste
and styles of the customer. It
has a unified range of product
in which the hardware and
Fitbit-2 focuses on the fitness
trackers and have a wide
variation in the range of
trackers including 11 types of
trackers from which the
customers can choose (4 P’S –
FITBIT, 2019). They also
focus on selling accessories
like small tracker bands. It
provides different trackers that
includes continuous,
automatic, wrist-based heart
rate tracking, Mi band
Bluetooth activity tracker,
waterproof fitness watch with
monitoring heart rate,
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software works seamlessly and
only the screen, back material
are different on the basis of the
version. Diverse range of
watches are offered by the
Apple Watch brand that
includes Sport watch and
Apple watch with exclusive
design and packaging.
Pedometer for determining the
pulse rate.
Price Company adopted cost
leadership strategy as a pricing
strategy by increasing
efficiency and lowering the
cost of production so that high
profit margins are attained and
competitive advantage can be
reached (The Seven P’s of the
Apple Watch’s Marketing-
Mix,2019). Market skimming
strategy is also followed by the
Apple Watch by entering in
the new market with the new
product with high prices to
maximize the initial earnings
from the early adopters.
Company also uses differential
pricing in different countries
as per the income level and
demand for the product.
Different pricing strategies are
adopted by this brand like
skimming pricing which high
prices are charged for gaining
the wants of the customers for
the new product.
Differentiation in the prices is
also followed by the Fitbit 2
where for different range of
trackers different prices are
charged as per their unique
quality. The prices for the
stylish products are high and
for that the entity uses
premium pricing strategy.
Place Apple Watch has covered its Fitbit-2 is available on online
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distribution network at a wide
range (Gilmore and et.al.,
2018). They have direct sales
channel through independent
retailers. Its store care located
at major cities and malls. More
focus and high expenses are
bear for the architectural
design of their stores. Online
stores of Apple has been built
where the enterprise offers the
whole portfolio of the product
and this technique acts as the
fastest growing channel for
sales. Through large logistic
network, facilitates the
customers to buy their product
online with short period of
delivery without the
transportation cost if minimum
order is reached. Another
channel known as Refurbished
Apple store in which it sells
the product at discounted rate
returned products that cannot
be sold as a new product or
replaced product that have
been repaired.
channels at their own website
and various shops are also
selling the product of this
band. They do not have their
own stores, and sells through
different channels such as
retailers, online shopping
websites etc.
Promotion Large amount of investment is
made by the entity in
promoting its product through
They also invest large amount
in promotional activities for
increasing the sales and to
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various platforms (Hammody
and Hussein,2019).
Promotional channels of the
Apple watch includes
Advertisement on television,
magazines, mobile
advertisements, billboards etc.
Some advertisements are very
famous like iconic Apple
commercial, video series
where the enterprise describes
all the disadvantages of the
windows demonstrated by the
creativity of the Apple. These
commercials, ads has a great
impact on the opinions and
behaviors of the customers.
capture the global market.
Advertisement on social media
, magazines, newspaper and on
television. They organize
Fitbit events for promoting
their products to attain large
customer base. In those events
they provide facilities of free
trial where the customers
before purchasing can try the
product. Discount offers are
also provided for the
customers who are buying
through online websites. By
using these sales promotional
tools company has been able to
reach its sales target easily and
the profit margins of the
company are also increased
with a growing rate. The
product of this brand helps the
people in maintaining their
fitness so it leads to a growing
demand for the product.
Comparison between both the brands-
The marketing mix of the Apple watch is more efficient and effective because it offers
various range of products with exclusive styles and features as compared to the Fitbit 2. The
hardware and the software of the Apple watch are better than the Fitbit 2 as it had overcome the
defects that are presented in the windows. Different version are provided by the Apple watch
while Fitbit do not facilitate any of the versions. The product range of Apple watch is more wide
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than the other brand because it offers huge variety and the customer specification product from
which the customer can choose the products to meet their purpose. The cost leadership pricing
strategy is used by the brand A turns out to be more effective against the Brand B where it uses
skimming and differentiation in the pricing strategy. Due to this the Apple watch attains the
economies of scale in their operations and high profits are generated with low cost as compared
to other brand. The distribution network of the Apple watch is more wide than the Fitbit 2 as it
has its own stores and a well known presence worldwide while Fitbit 2 do not have their own
outlets which leads to reduction in their revenue. Apple watch is brand of Apple company which
has their dealing in several products and has achieved a great customer loyalty which the other
brand does not have. The promotional techniques used by the Apple watch are more effective in
comparison with the Fitbit 2 because it uses video series, various online channels while other has
a narrow advertisement channel which results in lack of awareness among the people about their
product.
Target market-
The Apple watch target the high income class group so that high profits can be earned by
charging the premium price. The current users of the iphone and the people buying status quo
products are the major target market of the Apple watch. On the other hand, the target market of
the Fitbit 2 are the particular group of persons and the gym trainers which leads to a narrow
market for the company to grow in the future and to sustain in the competitive world.
CONCLUSION
From the above report it is concluded that marketing principles of the Apple watch and
the Fitbit 2 depicts that Brand A has more effectively managed its principles of marketing
against the Brand B. The more effective the marketing, the more efficiently company can
achieve its objectives. The decision regarding the expansion of the business and the social
responsibilities can be made with these principles. It helps in building the image of the corporate
and resources can be utilized optimally. Wealth maximization and higher profitability can be
reached by the enterprise operating globally.
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4 P’S – FITBIT. 2019. [Online]. Available through
:<https://aeatonsite.wordpress.com/2016/10/28/4-ps-fitbit/>
The Seven P’s of the Apple Watch’s Marketing-Mix.2019. [Online]. Available
through:<https://www.grin.com/document/437674>
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