Comprehensive Analysis of Fitbit's Marketing and Management Strategies

This report provides a comprehensive analysis of Fitbit's marketing and management strategies. The report examines the product strategy, highlighting the range of fitness trackers and smartwatches offered by Fitbit, and how these products cater to the needs of customers by measuring various health metrics. The pricing strategy is discussed, noting Fitbit's use of a mixed pricing approach, including premium pricing for high-end products and affordable prices for basic models, as well as the pricing of accessories. The promotion strategy is analyzed, detailing Fitbit's use of mass media, digital, and social media marketing to reach a wide customer base and build brand awareness. Finally, the place strategy is considered, outlining the various channels through which Fitbit products are made available to customers, including physical stores, retail stores, and online shopping platforms. The report uses the marketing mix framework, and provides a figure summarizing the key elements of Fitbit's marketing strategy.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
Name of the Student:
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Author’s Note:

1MARKETING AND MANAGEMENT
Marketing Strategy
Product
Product is the most important strategy towards meeting the core needs and demands of
the customers. According to Schmidt, Spann and Zeithammer (2014), Product strategy
incorporates the features and quality of the products towards meeting the specific needs of the
customers. On the other hand, Helm and Gritsch (2014) opined that product strategy also
involves the branding, guarantees and warranties of the products of an organization. While
considering the product strategy of Fitbit Company, it can be seen that the organization has seven
products in the market. These seven products include four wristband style tracker, two clippable
activity tracker and smart scale. The products of the organization are mostly used for measuring
the number of steps walked, steps climbed, quality of sleep, body fat weight, body mass and
many other personal metrics involving fitness (Fitbit.com 2017).
The Fibit Flex of the organization only measures the calories, steps and sleeping cycle of
the customers. Furthermore, the high end model of Fibit Surge covers broader range of functions
like smartwatch and other similar activities. The Fitbit wristwatch effectively track the heart rate
and better track the calorie burns, which helps in maximizing the work out level of the
customers. Moreover, the unique quality of product of the organization helps in right tracking of
the health condition of the customers. The Fitbit watches are used for tracking all day activity,
music control and reminder to move (Fitbit.com 2017). In this way, the unique product strategy
of Fitbit provides the best way to the customers for keeping them healthy.

2MARKETING AND MANAGEMENT
Price
Price strategy refers to the amount, which the customers pay for purchasing a particular
product. According to Chng et al. (2015), effective pricing strategy includes the consideration of
customer perceived value for the products. On the other hand, Borland and Lindgreen (2013)
opined that pricing is an important strategy, which has huge impact on the revenue of the
customers. While considering the pricing strategy of Fitbit, it can be seen that the organization
uses mixed pricing strategy for selling their health metric products to the customers. Moreover,
the organization uses premium pricing for the high end products. However, it uses affordable
prices for the normal quality products. The retail prices for the wristbands of the organization are
ranged from $99.95 to $249.95. On the other hand, the smart devices like Fitbit scale and Aria
are priced at $129.95. The tracker part of the Fitbit Flex can be removed from the wristband and
can be inserted into Tory Burch Bracelet or pendent. In case of pricing the bracelets, the
organization considers the materials used in the bracelets. Moreover, depending on the materials
used in the bracelets, the bracelets accessories costs around $175, $195 and $38 in respect to
leather, metal and silicon materials respectively. Furthermore, the pendent necklaces cost around
$175 (Kumar 2015).
Promotion
Promotion strategy refers to the ways of communication in which the organization
communicates with the customers. According to Öztamur and Karakadılar (2014), effective
promotion strategy helps in increased interaction with the customers towards enhancing the
customer awareness regarding the products and services of an organization. On the other hand,
Helm and Gritsch (2014) opined that effective promotion strategy enhances the brand image of

3MARKETING AND MANAGEMENT
the organization to the customers. While considering the promotional strategy of Fitbit, it can be
seen that the organization uses mass media marketing towards reaching wide customer group.
Moreover, the TV advertisement, radio advertisement, newspaper and magazine advertisement
for reaching wide section of customer group.
Fitbit also uses digital and social media for the reaching large customer bases in shortest
period. Social media like Facebook, Twitter and YouTube media helps in attracting new
generation customers. Furthermore, the organization also uses Fitbit app has formed online
community and social network, which helps the users in sharing and comparing their fitness
achievement with their friends (Fitbit.com 2017). In this way, effective promotional strategy of
Fitbit helps it towards proper communication with the customers.
Place
Place strategy assists in providing effective ways of customer access of the products and
services. As per Borland and Lindgreen (2013), properly constructed place strategy sets direct
and indirect channels for the customers for helping them in accessing the products and services.
While considering the place strategy of Fitbit, it can be said that the organization has its own
physical stores for selling their products to the customers. Apart from that, the customers can
also avail the products of Fitbit in the retail stores. Moreover, retail stores are the most
convenient place for the customers towards accessing the products of Fitbit. Furthermore, the
most flexible and easy access medium of the Fitbit’s product is its online shopping option.
Moreover, the customers can avail the products of this organization through Amazon and many
other online retails (Madhavaram, Granot and Badrinarayanan 2014). Therefore, it can be seen
that effective place strategy of Fitbit helps in better accessibility of products to the customer.

4MARKETING AND MANAGEMENT
Marketing Strategy
Price
Mix Pricing Strategy
Promotion
Mass Media
Digital Media
Social Media
Place
Physical Store
Retail Store
Online Medium
Product
Tracker
Watches
Wristband
Smart Scale
Figure 1: Marketing Strategy of Fitbit
(Source: Helm and Gritsch 2014)

5MARKETING AND MANAGEMENT
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https://www.fitbit.com/au/home
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