Marketing Mix and STP Analysis: Apple Watch Series 4 & Fitbit2

This report provides a comparative analysis of the marketing strategies employed by Apple Watch Series 4 and Fitbit2, focusing on their marketing mix and STP framework. It begins with an introduction that highlights the importance of marketing strategies for business success, emphasizing the role of marketing mix (product, pricing, promotion, and distribution) and STP (segmentation, targeting, and positioning) in reaching target audiences. The main body of the report delves into the target markets for both brands, utilizing the STP framework to identify demographic and behavioral segments. It then explores the product offerings of each brand, analyzing their features, augmented services, and brand positioning. The report also examines the pricing tactics, distribution strategies (place), and promotional activities of both brands, providing insights into how they reach their customers. The conclusion summarizes the findings, highlighting the strengths and weaknesses of each brand's marketing approach and offering recommendations for improvement. The report references academic sources to support its analysis, offering a comprehensive overview of the marketing strategies of these two prominent brands.

PRINCIPLES OF
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Target market for concerned business brands.............................................................................1
Product/Brand.............................................................................................................................2
Pricing tactics..............................................................................................................................3
Place (Distribution).....................................................................................................................3
Promotion....................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Each business organisation posses some targets and objectives which helps them in
attainment of expected outcomes. In this context, each business firm uses some strategies and
tactics so that their offerings can be acknowledge and appreciated by maximum number of
people (Allyson Dooley, Jones and Iverson, 2012). In this context, marketing mix strategy is
most popularity used by firms so that strategies related with product, pricing, promotion and
distribution can be performed in a proper manner. In this assignment, two brands i.e. Apple
watch series 4 and Fitbit 2 are considered and their strategies are analysed to compare their
performance in market place. To analyse about these brands, marketing mix and STP framework
are mentioned so that brand with high efficiency can be recognised.
MAIN BODY
Target market for concerned business brands
Apple watch series 4 is a smartwatch that is developed and designed by Apple which is
one of the most recognised and luxurious electronic brand in global context. This watch posses
health and fitness tracking capabilities. Another brand is Fitbit2 that is a product of American
organisation FitBit Inc. which is a subsidiary of Google. This watch is used by customers to track
their fitness activities on regular basis too. Target market is defined as the group of people which
are selected by a organisation to sell their offerings (Lilien, Rangaswamy and De Bruyn, 2013).
Right strategy about target market will help a firm in increasing their sales and profits in a
considerable manner (Blythe and Martin, 2019). In accordance with the target market, a
business organisation performs their marketing strategies. In order to acknowledge the target
market for Apple watch series 4 and Fitbit2, STP framework is used. Information about target
market of both brands is discussed below:
Target market of Fitbit2
In order to identify the target market for the product, an organisation is needed to
segment their customers in different group in accordance with some similarity and likewise
characteristics. In case of Fitbit2, concerned company has divided their market in accordance
with the demography and behaviour of people. Company targets those people which are very
health conscious and indulges in sports activity on regular basis. Mainly, these people prefers to
buy the product of company. Out of the segmented market, company targets the individual which
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are between age group of 15 to 45 years as these people are more enthusiastic about their body
fitness. Also, company is targeting those people which chooses to live a healthy lifestyle so that
they can maximise the sales of concerned product. Fitbit2 is positioned by the company through
retail outlets, distributors and e-commerce so that product will be easily assessable for people
and high sales can be earned by company (Lipsman, Mudd,Rich and Bruich, 2012).
Target market of Apple Watch Series 4
Apple organisation has segmented market for Apple watch series 4 in accordance with
the demography. In case of demographic segmentation, company is additionally segment their
customers according to the age and income. For their product, company is mainly going to target
youth generation as they are more conscious about their standard and prefers to show off their
high living. Apple targets those customers which are in age group of 15 to 50 years and owns
high wealth. This is because products of Apple are expensive and if company will not target rich
class, company will not have expected sales. Apple has positioned their products at online
website of company, e-commerce and retail stores so that maximum number of people can buy
their product (Armstrong and et. al., 2014).
In accordance with the identified information, it can be inferred that both brands have
similar target market and positioning tactics. In order to achieve, competitive advantage against
each other, these organisation is needed to have appropriate product, promotion, distribution and
place tactics.
Product/Brand
With the assistance of Levitt's Model, product of a brand or organisation can be analysed
on the basis of packaging, feature, shape, colour scheme etc. In accordance with this aspect,
concerned products can be categorised into formal product, augmented product, potential
products and formal product.
Apple watch series 4 is basically a fitness band which serves the basic purpose of
customers but due to including of special features like music playing, call feature etc., this
product became augmented as these features of watch are innovative for customers. Other
augmented feature of the product are is high and low rate notifications, activity sharing, alarm,
heartbeat and workout detection etc. other than this, this product offers monthly based challenges
and achievement awards to their users which motivate them to became fit. As per the model of
Aaker, this brand is intelligent, tough, charming, imaginative (Burns, Bush and Sinha, 2014).
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In case of Fitbit2 also, product have some augmented services which are very unique and
new for customers such as reminder, step tracker, heart rate, messaging features and other health
related tracking activities. These aspects make Fitbit2 as augmented product. In accordance to
the Aaker's model, this product holds the dimension of flourishing, honest, sophisticated and
updated.
Pricing tactics
With the help of right pricing tactic an organisation can determine the right price by
which maximum number of customers can be satisfied and business firm can earns high sales
without compromising with the expectation of customers. On general basis, most of the
organisation uses economic pricing so that maximised number of people can purchase their
products in global context (Long and Jerath, 2018). Pricing strategy for Watch series 4 and
Fitbit2 is mentioned below:
Pricing strategy used by Fitbit2 is competitive pricing where rate of product varies in
accordance with the rates which are charged by their competitors so that company can operate
their business in a profitable manner. But the accessories of products are expensive due to which
overall cost of products hikes. Due to this, company sometimes adopt bundle pricing in which
product along with accessories is offered to customers with discount so that high sales can be
achieved. In case of Apple watch series 4, company uses premium pricing strategy as Apple is a
luxurious brand and it targets only rich & high class. Due to standardised quality of products,
rich class purchases watch series 4 even with high charge (Ennew, Waite and Waite, 2013).
Place (Distribution)
With the help of this strategy an organisation can acknowledge the appropriate channel of
distribution so that product can be easily available to customers. Right distribution strategy will
allow the organisations to achieve high profits. Fitbit2 is available to consumers in retail outlets
of company and other shops which deal in similar field. Also, people can purchase this product
via websites like Amazon, Flipkart etc. In case of Apple watch series 4, this product can also
brought at retail outlet of Apple and official website of company (Gillespie and Riddle, 2015).
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Promotion
By using promotional strategy, respective products can be popularised among customers
so that wide advantages can be gained. In this context, promotional strategy of both brands is
discussed below:
Apple promotes their Apple watch series 4 with the help of electronic and social media
like TV,YouTube, Facebook etc. Company do not use print media to popularise themselves as
they offer luxury products which can not be purchased by middle income people. In case of
Fitbit2, company mainly use TV and Newspaper advertisements so that maximum people can
acknowledge about their product and purchase it. Also, company use online advertisements to
grab attention of customers (Kotler and et. al., 2014).
CONCLUSION
In accordance with the above given report, it has been comprehended that an organisation
can adopt different tactics and strategies so that their objectives can be attained in a proper
manner. In this context, marketing mix and STP can be used by a business firm. This will helps
them in formulating right business strategies so that high strategies can be gained. As per the
discussion, it is identified that Apple watch series 4 is more popular and renowned product than
FitBit2 as sales and revenues of company are high due to their robust tactics. As Apple target
rich class, brand loyalty of company is high and average income people are not capable to
purchase products of Apple. Fitbit2 is also an excellent product which is affordable by people
from every income range due to their genuine price but brand equity of Apple surpasses former
organisation due to difference in sales and profits.
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REFERENCES
Books and Journals
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Marketing: culture institutionalized. Journal of Macromarketing. 33(1). pp.78-82.
Burns, A. C., Bush, R. F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson
Ennew, C., Waite, N. and Waite, R., 2013. Financial services marketing: An international guide
to principles and practice. Routledge.
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.Pike, S., 2015. Destination
marketing: essentials. Routledge.
Kotler, P. and et. al., 2014. Principles of Marketing, 4th European edition. Financial
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Long, F. and Jerath, K., 2018. Dynamics in Textual Content and Ratings in Online Product
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Soe, W. P. P., Moritaka, M. and Fukuda, S., 2015. An analysis of the factors influencing
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