Examining World Market Segmentation And Brand Positioning | Fitbit Case Study

Target Segment

Discuss about the Examining World Market Segmentation And the Brand Positioning.

This report is prepared with the purpose to throw light on the marketing strategy of the Fitbit and its planned new children wearable products. The report will include the targeting which defines the customer segment that the company will target for its new children wearable products. Along with this, there will be recommendation to the positioning of the brand in which the decision will be made to make the brand different from the others. In addition, the recommendation related to the marketing mix strategy of the company is given which helps in analysing the effective way through which the brand can communicate with their target audience. The research and finding of the task is based on the secondary data research which include collection of data from the internet sources.

A target market is a group of people or customers that are present in the business serviceable market that the business has decided to aim its marketing efforts towards (Kotler, 2015). The customer segment, most attractive market and segment attractiveness report has been discussed in the assignment 2 which reflect the target segment of the company. (Refer Appendix A) The market that has been selected to whom the company target is Children within the age group of 9-13 years. This target market has been selected because the company these children’s are highly likely towards the GPS tracker and fitness tracker (Refer Appendix B). Along with this, this group of children can provide the high revenue to the customers.  

The reason behind the selection of the target market is done after considering the medium size and growth in the market is suitable. Along with this, this segment group reflects that there is less number of competitors in the market. The selected market has the best opportunity to grow sales because of the low number of competitors in the markets. This target group achieve the objective and resources of the Fitbit Company. Moreover, targeting this group will provide an opportunity to the company as this is the effective way of enhancing the positioning of brand Fitbit as a quality, trendy, fashionable fitness-tracking wearable. For clear explanation refer appendix C

Brand positioning refers to as the positioning strategy, brand strategy, or brand positioning statement. The brand positioning strategy of the company contribute in making the unique impression on the mind of the customers (Chernev, 2018). The company positioning can be stated with the help of the market share of the company in the market which was explained in the previous assignment. (Refer Appendix D)

Brand Positioning

Considering the current positioning of the company it is recommended to the company to implement the target market strategy in which they will try to set the image of the brand to the specific targeted customers (Hassan and Craft, 2012). The company offer sleek and cool premium fitness wearable for active kids 8+. Therefore, the company should try to form a good image in the eyes of the children’s.

The products of the Fitbit are wearable and the market maps of the fit leading products are discussed below. The below given graph represent the unique selling proposition of the company that is products have simple metrics and simple display which makes it easy for the customers to use it (Srinivasan, 2016). Along with this, there are many competitors who provide the product at the high price and with sophisticated display which make it difficult to use for the customers. The sub-brand of the company is considered as the wearable that is offered by the company.

(Source: Srinivasan, 2016)

(Source: https://www.slideshare.net/JasonBrandner/fitbit-presentation-70650639)

The above image of defines the brand positioning of the Fitbit company on the basis of performance and price. The company offer the products at the nominal prices and with medium performance. The other competitors of the company offer the product either on the high price with effective performance or on the low price with basic features.

Fitbit is positioned as one of the emerging every day fitness tracker brands with a more modern, fashionable, high quality and attractive image compared to its competitors.

The marketing mix is defined as the set of marketing tools that the firm make use to pursue its marketing objective in the target. The marketing mix strategies of the company include product, price, place and promotion strategy (Wilson and Gilligan, 2012). Below given is the recommendation of the marketing mix strategy of Fitbit.

The products that are offered by the company mainly include the wearable and wearable accessories customer product category which includes sleep tracker, watch notification, calorie counter, step tracker and many others. The packaging and the branding of the products is one in a very simple manner and it provides the glimpse of the actual product that is offered by the company.

Considering the product life cycle of the company, the wearable market of the Fitbit is presently at the growth phase. Growth stage is the second stage of the product lifecycle and this phase of the product reflect that the product is improving and position of the product is improving in the market (Cao and Folan, 2012). Along with this, there is rise in the sales and the profit margins of the product that is offered by the company.

Brand Positioning Statement

(Source: Cao and Folan, 2012)

There is a relationship between the diffusion process and the product lifecycle of the company which is discussed with the help of graph below. The company is at growth stage in which the diffusion of the company is in early majority in which they find the rise in the sales and profit of the company.

This growth phase reflects that the company should follow the strategy of expansion in the number of model along with the frequent product modification in Wearable’s. The sub-brand in which modification is accepted is Wearable’s because Fitbit lead in the wearable.

(Source: Richter, 2015)

This will help the company to take the business on heights along with this they will be able to make a strong position in the mind of the target customers as this will enhance the brand positioning in the market.

(Source: Fernandes, Gouveia and Pinho, 2012)

The core product of the company is the Wearable that is offered to the children with 9-13 years as this is the targeted segment. The benefit that the customer gets is the convenience to make use of the product as it is simple to use and simple in display. Actual product includes the features of products it is suggested to offer the high quality, stylish look and fashionable. Augmented product includes the additional services that are offered to the customers. The company offer after sales services, warranty, and delivery services.

This section of the report includes the distribution strategy that should be followed by the company to make the product available to the customers. It is recommended to the company to make use of the intensive distribution strategy in the market as this strategy helps the company in making the product available at the online and in-store retailers (Lovelock, 2011). This helps the company to make the Wearable’s easily available to the targeted customers. To make this strategy effective it is recommended to the company to form the long-term relationships with the wholesales and retails because they are the one who come in the agreement with the customers. This strategy includes the numerous numbers of intermediates which help the company in making the product available at the every location. This helps the company in communicating about their new product and generating awareness about the brand which helps the company in making the effective positioning in the market.

Marketing Mix

(Source: Rushton, Croucher and Baker, 2014)

This image reflects the different number of channel structures for the consumer products. Fitbit brand make use of the wholesale channel which include the distribution through wholesale and retailers.

The promotion strategy includes the way through which the company can generate the awareness in the market. It is recommended to the company to make use of stimulate selective demand and the advertise brand aggressively. The company make use of the innovative message to promote the product such as “A bit for your wrist” which will grab the attention of kids. This message is catch for the kids due to which they can easily get place in the mind of customers. The company can make use of the different promotion tools which include: –

• TV commercial: – Fitbit can make use of the TV commercial for generating the awareness about the products in the market. This is the effective way through which the company can reach to the maximum targeted customers to whom company is willing to offer the product (Hultman, Katsikeas and Robson, 2011). The company can also make use of endorsee for the advertisement as most of the kids get attracted towards the celebrity.
• Digital Marketing: – Another tool that can be used by the company for promoting the product is digital marketing. This tool provided the maximum reach of the message of the company to the customers of Fitbit with the effective use of the social media. The company can make use of the Facebook, Twitter, Instagram and many others to promote the products (Posner, Williams and Posner, 2015).
• Sales promotion: – It is suggested to the company to make use of the sales promotion as one of the effective modes to promote the products. In this, the company can attract the target segment for its new product through discount, coupons, contests, prices and many others.

These advertisement tools are used by the company because this will help the company in enhancing their reach towards the customers and to grab their attention of their target customers. Moreover, this is the effective way through which they can make good positioning in the market. (For the further details please refer appendix E)

It is recommended to the company to make use of the penetration pricing strategy in which an organisation charge relative low price for the product as this is way through which they can reach to the large customers in the market. The company will be able to capture the large market share which will leads to more production and less cost involved with production cost. The low price strategy will allow the more customers to buy the product (Ingenbleek and Van der Lans, 2013).

This pricing strategy is recommended to the brand because in the near future the company will reduce the price after considering the pressure from the competitors available in the market such as Apple, Huawei and Garmin and many others. The decrease in the price of the product will help to increase the sales of the Fitbit.

Summary Table of your Marketing Mix

Conclusion 

In the end, it can be concluded that the brand need to bring some changes in their current strategies which will help them in improving the market position. The recommendation related to the brand strategy has been discussed in the report. It has been recommended to Fitbit to target the children’s with the age group of 9-13 years. Along with this, they should make use of the attractive features in the product which will improve the brand positioning in the market. Moreover, the product range needs to be extended by the company by bringing the innovation. The intensive distribution strategy will help the company in making the products available to the customers. Along with this, the company should make use of catching message while promoting the products in the market. The tools which are recommended to the company for promotion include advertisement, sales promotion and direct marketing. Along with this, the company should reduce the price as the competitors are increasing and this is the time when they can get the benefit of increase in sales and revenue. All these strategies contribute in making the place in the mind of targeted customers.

References 

Cao, H. and Folan, P. (2012) Product life cycle: the evolution of a paradigm and literature review from 1950–2009. Production Planning & Control, 23(8), pp.641-662.

Chernev, A. (2018) Strategic marketing management. Chicago:Cerebellum Press.

Fernandes, R., Gouveia, J.B. and Pinho, C. (2012) Product mix strategy and manufacturing flexibility. Journal of Manufacturing Systems, 31(3), pp.301-311.

Hassan, S.S. and Craft, S. (2012) Examining world market segmentation and brand positioning strategies. Journal of Consumer Marketing, 29(5), pp.344-356.

Hultman, M., Katsikeas, C.S. and Robson, M.J. (2011) Export promotion strategy and performance: the role of international experience. Journal of International Marketing, 19(4), pp.17-39.

Ingenbleek, P.T. and Van der Lans, I.A. (2013) Relating price strategies and price-setting practices. European Journal of Marketing, 47(1/2), pp.27-48.

Kotler, P. (2015) Framework for marketing management. India: Pearson Education.

Lovelock, C. (2011) Services marketing: People, technology, strategy. India: Pearson Education.

Posner, H., Williams, S. and Posner, H. (2015) Marketing fashion: strategy, branding and promotion. Laurence King Publishing.

Richter, F. (2015) Fitbit Fends Off Apple To Retain Wearables Market Lead [Online]. Available from: https://econintersect.com/pages/contributors/contributor.php?post=201508301840 [Accessed on 22^nd May 2018]

Rushton, A., Croucher, P. and Baker, P. (2014) The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Srinivasan, R. (2016) Carving out Market Share – Fitbit Scenario [Online]. Available from: https://iterativepath.wordpress.com/2016/02/16/carving-out-market-share-fitbit-scenario/ [Accessed on 22^nd May 2018]

Wilson, R.M. and Gilligan, C. (2012) Strategic marketing management. New York: Routledge.

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