Fitbit Marketing Plan
FitBit is dedicated to helping people live healthier and more active lives. The company aims to create innovative, inspiring products and online services that combine the power of new technologies to make people more aware of their diets, daily activities and motivate them to do more exercises. FitBit is a wireless health and sleep tracker. The company’s goal is to provide a unique product, rich features at a highly competitive price. Target segmentation includes athletes, students, professionals and other groups in Australia.
The product will be distributed to most of the electronic specialty stores and online. The tiny device will help people taking advantage of their lives by offering different functions. The primary marketing objective is to increase the brand awareness in the Australian pedometer market and achieve an impressive sales performance. Contents Executive Summary15 Offer description1 External environment factors analysis2 Macro- environment2 Political2 Economical2 Social changes2 Technology3 Legal requirements3 Environmental3 Micro environment analysis4 Threat of new competition4
Threat of substitute products or services4 Bargaining power of customers4 Bargaining power of suppliers4 Intensity of competitive rivalry4 Analysis of competition5 SWOT Analysis5 Value Chain Analysis5 Analysis of target market7 Customer’s needs analysis7 Target segmentation9 Perceptual Map of Positioning11 Marketing Objectives12 Marketing Strategies12 Product Strategy12 Positioning12 Pricing Strategy12 Place/ Distribution13 Offer description The FitBit Ultra is a wireless track device that records people’s daily activity including steps walked and floors climbed.
It is well designed which is almost the same size as a flash disk and it can be comfortably clips onto a belt, clothes or keep in the pocket. It is so light and small that it can be barely noticed when you wear all day. The FitBit Ultra offers the following fantastic features: * Only one button, easy to operate * Pedometer records steps taken, distances traveled and stairs climbed * The device can calculate the calories consumed * Sleep mode can analyze the length of actual sleeping time * All the data recorded can be synched with the computer automatically within 15 feet *
The software supports both Mac and PC Data can be uploaded to the online account and visualized clearly in the format of diagrams * Intake calories can be uploaded manually for a more accurate analyze * Performance can be shared with friends through social network * Long life battery can last for over one week without charging * Sell for only $99 each External environment factors analysis Macro- environment Political Australia is a member of APEC and WTO and also has free trade agreements with United States, ASEAN countries, New Zealand and some European countries.
It has positive trading policies with different countries and the trades between countries are in favorable conditions. Therefore, bringing FitBit into Australia would be feasible and there will be a large amount of prospects in the market. FitBit as an innovative product which is designed to improve the health quality of local people shall be warmly welcomed by the Australian government. Economical The Gross Domestic Product (GDP) in Australia increased 0. 4% in the last quarter of 2011, with typical inflation of 2-3% in 2010 and unemployment rate increased to 5. 2% in February of 2012.
In Australia, sales tax rate is 10% and Corporate Tax rate is 30%. The tax rates of Australia seem to be feasible for the FitBit to operate in this market. Because of low unemployment rate in Australia which is approximate to 5. 2%, it would be a barrier for the FitBit to employ some skilled staff. Therefore, it is crucial for the human resource department to take different strategies to recruit skilled and experienced employees.
Social changes There is an increasingly demand for health products and services in as Australian government spending on healthcare is projected to rise from 4. % of GDP in 2009-10 to 7. 1% in 2049-50. Expected technological advancements in health products are likely to contribute to greater spending on health. The FitBit as a technological health device shall greatly meet local consumer’s needs. Technology The number of Australian households using computers and accessing the internet has significantly increased during past a few years. In 2008-09, nearly six million Australian households (72%) had internet access. There are nearly 10 million Facebook users in Australia which takes almost half of the population.
Latest information about products and services can be spread quickly through the social network, which means the FitBit can use it to increase the brand awareness. Legal requirements Australian’s international trade activities are regulated by TRIPS and WTO settlements. Intellectual property is an integral part of global trade which is paid enough attention by the Australian government. In 2009-10, value of intellectual property reached $170 billion. Therefore, FitBit as an innovative product and its crucial technology will be well protected by the local government. Environmental
Australian government issued carbon tax aiming to reduce the emission of carbon dioxide. The FitBit could indirectly contribute to the environment protection by encouraging people to walk instead of driving car to some short distance places. Micro environment analysis Threat of new competition There might be some barriers such as government policies, high costs of entry, promotion or hire skilled employees. Threat of substitute products or services Competitors within the industry could offer better designed devices with more functions. For example, IPod Nano can play radio and music.
Bargaining power of customers FitBit buyer’s power is strong which they demand lower price and better service from the provider, knowing they can switch to another company. Bargaining power of suppliers Suppliers are most powerful when switching costs is high, especially when the products have few or no substitutes. Intensity of competitive rivalry FitBit has high competitive rivals in the retail industry such as Apple, Tech4O, Omron and so on. FitBit and its rivals compete among themselves on price, quality, product and place.