Fitbit Marketing Mix Analysis, New Product Plan, and SWOT Analysis

This report offers a comprehensive analysis of Fitbit's marketing mix, focusing on product, price, place, and promotion, and compares it to Garmin's strategies. The analysis explores the elements of the marketing mix and their application to Fitbit and Garmin, highlighting their differences in product portfolios, pricing, distribution, and promotional activities. The report then proposes a detailed marketing plan for a new Fitbit product: a cardiovascular health tracker designed for individuals with heart conditions. This plan includes an introduction, product description, target market identification, SWOT analysis, SMART objectives, and a discussion of the marketing mix for the new product, providing a strategic roadmap for Fitbit's expansion into a new customer segment and addressing market challenges. The report leverages data from various sources including Vannevel (2014), Guerrero (2015), Anna (2016) and Statista (2018) to support its findings and recommendations.

Task 2
The extended marketing mix includes the elements of the classical marketing mix or the 4Ps – product,
price, place and promotion, as well as, there additional factors, such as people, processes and physical
evidence. The role of the marketing mix is to provide stimuli to customers and to differentiate the
company from competitors (Kotler and Armstrong, 2009). The analysis first explores the meaning of each
element of the marketing in general. Then, the specific case of Fitbit is examined in more details together
with the evidence from one of the closest competitors – Garmin. Garmin is a US-based company
specialised in the production of individual fitness and health lifestyle products, similarly to Fitbit
(Vannevel, 2014).
The seven elements of the marketing mix include:
 Product – These are the products offered by Fitbit at the marketplace. In order to attract
customers, the products must have unique characteristics which deliver value and differentiate
the company from competitors (Kotler and Armstrong, 2009).
 Price – Prices strongly influence customer demand and may play an important role for
stimulating customers. Customers often decide whether to purchase based on the value-for-
money proposition; hence, price place a central role as a marketing mix element (Kotler and
Armstrong, 2009).
 Place – Location must be convenient and accessible, so that customers can easily purchase the
products. In today’s marketing, location refers not only to physical stores, but also to the online
medium, as many products can be purchased via the Internet (Kotler and Armstrong, 2009).
 Promotion – Promotion refers to advertising and to the set of additional stimuli which attract
customer attention. In most cases, these might be discounts, paired offers, endorsements, free
gifts, etc. (Kotler and Armstrong, 2009).
 Physical evidence – Physical evidence influences the quality of the final service. Therefore,
companies tend to create a pleasant and attractive environment as a way of attracting customers
(Kotler and Armstrong, 2009).
 Processes – Processes are considered as an important element of organisational performance.
Organisational productivity largely depends on the efficiency of the processes. Often, processes
add important value to the customer experience in service-based organisations (Kotler and
Armstrong, 2009).
1

 People – In modern economy, the availability of smart and competent employees largely
explains organisational performance. In the service sector companies, employees directly
interact with customers; hence, employee performance also determines the quality of the
provided services. As a result, employees are also considered as a key marketing mix element
and a source of differentiation (Kotler and Armstrong, 2009).
It is important to note that Fitbit is a company which offers products to its customers. Hence, it is more
important to focus on the elements of the traditional marketing mix – product, price, place and
promotion. As Kotler and Armstrong (2009) explain, the three additional elements of the extended
marketing mix (process, people and physical evidence) mostly refer to service-sector organisations;
hence, they are inapplicable in the case of Fitbit.
Given these important clarifications, the analysis continues with an examination of the Fitbit’s marketing
mix, as well as, a comparison with the evidence from Garmin, as shown on table 1 below.
Table 1 – Marketing Mix (4Ps) of Fitbit and XXX
Fitbit Garmin
Product - Focus on the segment of fitness trackers (11
fitness trackers to choose from)
-An extensive portfolio of available accessories
- A well-diversified company which produces
navigation and GPS products, as well.
- The fitness tracker is just one segment of the
company’s product portfolio
- Just several variations of the product are made
Place - Products can be purchased on the Fitbit website
and through online retailers, such as Amazon.
- Products available at other physical shops, such as
Walmart, Best Buy, etc.
- Fitbit does not have own store.
- The Garmin products can be accessed through
the organisational website.
- Products offered by numerous online retailers.
- Products available at other physical shops, such
as Walmart, Best Buy, etc.
- Garmin has one physical store in the US
Price - Prices are quite high varying between 59.95 and
249.95 Euros.
- Accessories are also expansive with similar prices
as the core products
- In the majority of cases prices vary between
$129.99 and $169.99.
2

- Premium prices are supported by product quality
and stylish designs unmatched by competitors
Promotion - Focus on advertising (TV clips, printed media
advertising)
- Special promotional Fitbit events
- Social media presence and word-of-mouth effect
referral are prioritised
-There are no discounts for Fitbit products
- Social media presence
- Aggressive promotional campaigns are avoided
due to the already high degree of customer
loyalty
Sources: Vannevel (2014); Guerrero (2015); Anna (2016)
The analysis of the marketing mix clearly shows that both companies have quite different practices. In
terms of product, Fitbit specialises in the production of fitness trackers only and offers a very diverse
portfolio of high quality products. In contrast, Garmin is a differentiated company and most of the
organisational revenues originate from other areas of expertise – GPS and navigation systems. Hence,
Garmin focuses on other areas. As a result, the fitness trackers products are just one of the
organisational segments and the product portfolio is less diverse than the one offered by Fitbit.
In terms of places, both companies have identical strategies – selling products on the companies’
websites, online retail platforms and through physical retailers. Garmin also has one physical store,
whereas Fitbit does not own a physical store.
Prices are quite different. The accessed evidence suggests that Fitbit has a high degree of specialisation.
The well-designed products have very high quality and functionality. Respectively, Fitbit’s prices are
generally higher than the ones offered by Garmin.
Finally, Fitbit also conduct a very diverse portfolio of promotional initiatives which include advertising,
social media presence and special events. Garmin has a very diverse focus, as the company sells GPS and
navigation systems, and the promotional activities in the field of the fitness trackers are very limited and
mainly relying on word-of-mouth referral.
The evidence from the marketing mix shows that Fitbit has a very distinct specialisation in the fitness
tracker segment. The company is quite focused and it has managed to maintain a diverse product
3

portfolio, wide customer base and premium prices. Maintaining this unique market position and
competitiveness requires from the company to be innovative and deliver the best product quality.
Task 3
The analysis continues with a marketing plan for a new product for Fitbit which addresses new customer
preferences in a dynamic marketplace.
1 Introduction
The marketing plan is a road map for Fitbit to be followed when offering new products to selected
customer segments. Thus, the marketing plan creates clear goals and a detailed implementation plan
which increases the likelihood for success. In this case, there are specific tools, such as a SWOT analysis
and S.M.A.R.T objectives, which provide rationale and clarity in the marketing plan process. In addition,
there is a marketing mix for the new product which clearly shows how the target customer segment is
approached.
2 The product
The marketing plan is based on a new product which is proposed by Fitbit – a special tracker for people
with heart problems. The tracker has a capacity of accurately measuring blood pressure and pulse in real
time. The information is collected at a continued basis and presented with charts and graphs. Moreover,
the extensive data are sent via wireless Internet in real time to a specially created database. Customers’
doctors can access the data from the Fitbit tracker device and monitor patients at an ongoing basis. As a
result, doctors can monitor and evaluate patients’ heart health more precisely due to the large data
quantity. Since this is a real-time tracker, doctors and patients (customers) can also react in situations of
too low or high blood pressure or when the pulse is not within normal boundaries. Furthermore, the
large data quantities can be used to conduct additional analysis about the effects of sports on customers,
body performance during sleep, work, stressful situations, etc. In general, the product aims at improving
customers’ self-awareness, as well as, early prevention and treatment of heart conditions.
3 Target market
The current strategy of Fitbit is oriented to specific target customer segments. These are mainly tech-
savvy individuals, people who are dedicated to fitness, individuals with generally higher income, athletes
4

who are very focused on sports and want to closely monitor performance, as well as, individual who
want to improve their motivation (Guerrero, 2015). These are very broad customer segments but in
terms of age, they usually target young individuals who are within the age range of 25 and 45 years
(Guerrero, 2015). Moreover, these segments are to a great extent penetrated and Fitbit has to find new
options to grow (Guerrero, 2015).
The new product is oriented towards individuals with health conditions and to those who want to be
more aware about their health status. The new segment includes people between 50 and 70 years who
have or have not experienced any heart disease or problems in the cardiovascular system, such as
irregular pulse, problems with blood pressure etc. Since Fitbit offers very high quality products, the prices
are similar to the other existing products; hence, individuals with above-the-average purchasing power
are targeted.
This is an attractive customer segment due to several reasons. First, individuals have an increasing
awareness about health and modern technologies are preferred by many in an attempt to improve
performance and evaluation of health status. Second, the ageing population issue suggests that the
cohort of people between 50 and 70 years of age will steadily increase in the advanced Western
countries in the near future. Third, there are fewer competitors in this customer segment which suggests
better profitability opportunities.
4 SWOT
The SWOT analysis focuses on the relevant organisational strengths and weaknesses and the externally-
related opportunities and threats (Worthington and Britton, 2006).
Table 2 – SWOT analysis of Fitbit
Strengths
- Wide product portfolio
- Innovative organisational culture
- High product quality and exceptional design
- User-friendly interface
- Long battery life
Weaknesses
- Lack of physical stores
- Limited personalizing options of products
- Very limited marketing and advertising
- Declining revenue in 2017
Opportunities
- Increasing interest in healthy lifestyle
- Income growth leading to higher purchasing
power and affordability of Fitbit’s products
Threats
- Mature market and very low growth
- Changing customer preferences
- Intensified competition
5

- Ageing population
- Technological progress allowing new product
development
Sources: Guerrero (2015); Anna (2016); Statista (2018)
The SWOT analysis shows that Fitbit has the capacity to produce new high-quality products which satisfy
the needs of the customers from the target customer group. It is also important to note that the new
product takes advantage from the external opportunities where the combination of ageing population,
increasing incomes and the higher interest in healthy lifestyle products stimulate demand.
The product is very personalized which tackles one of the main weaknesses of Fitbit. Furthermore, the
company experienced declining revenues from $2.16 billion to just $1.6 billion for 2016 and 2017,
respectively (Statista, 2018). Thus, the penetration of the new customer segment is seen as a very import
step towards stabilising the financial performance of the company. The new product is also a way of
avoiding heavy competition and responding to changing customer preferences; thereby tackling some of
the external threats.
5 S.M.A.R.T objective
The main objective follows the S.M.A.R.T criteria in order to improve the goal setting process.
 Specific – Becoming the market leader in the segment of cardiovascular health trackers by
establishing leading market share position and high customer loyalty.
 Measurable – Capturing at least 20% market share in the segment and surpassing all competitors
in the segment
 Achievable – Financial resources, expertise and innovativeness are present at Fitbit.
 Relevance – The new segment is necessary to stability organisational performance, meeting
customer demand and avoiding some competition.
 Time-related – The new product should be launched no later than January 2019 and the desired
market share should be achieved by the end of 2020.
6 Marketing mix
The new segment is very specific which requires an adjusted marketing mix, so that the proper
positioning and stimuli are presented.
6

 Product – The product is a high-tech quality tracker which monitors blood pressure, pulse, etc.
and delivers real-time data which can be monitored and analysed by users and their doctors.
Accessories are available, as well as, advanced analytical options.
 Price – The price is similar to the current pricing practices of Fitbit. Premium pricing for high
quality products.
 Place – Similar places: online stores, company’s website and physical retailers. The product may
also be offered by doctors at hospitals and private clinics and doctors will receive a bonus for
every sale.
 Promotion – Special events are organised to promote the product at heart health conferences.
Social media activities are limited and more traditional media are used, since older customers
tend to rely on TV, radio and printed media.
The marketing mix is adjusted and further improvements may be introduced depending on the actual
performance and customer response.
References
Anna (2016) The 4 P’s – Fitbit, Available: https://aeatonsite.wordpress.com/2016/10/28/4-ps-fitbit/
[Accessed: 30 November 2018]
Guerrero, J. (2015) Fitbit Marketing Plan, Available: https://prezi.com/wngo4ex5pyal/fitbit-marketing-
plan/ [Accessed: 30 November 2018]
Kotler, P. and Armstrong, G. (2009) Marketing: An Introduction.9th edition, New Jersey: Prentice Hall
Statista (2018) Fitbit Inc. revenue from 2010 to 2017 (in million U.S. dollars), Available:
https://www.statista.com/statistics/472518/fitbit-revenue/ [Accessed: 30 November 2018]
Vannevel, M. (2014) International Marketing Strategy: the Marketing Mix Policies, Available:
http://www.academia.edu/35590553/International_Marketing_Strategy_the_Marketing_Mix_Policies
[Accessed: 30 November 2018]
Worthington, I. and Britton, C. (2006) The Business Environment, 5th ed., Pearson Education Limited:
London
7