Comparison Of Marketing Mix Of Apple Series 4 And Fitbit2

Comparison of Target Markets

The fitbit2 watch is a waterproof device and can be used in track swimming. The tracker can be worn in a pendant, wristband, and bangle. Apple series 4 is wearable smartwatch device. It has been noted that the market for smart devices like fitbit2 and Apple has grown to 28.4 percent and basic wearable has declined by 9.2 percent apple has been on the leading pack with 4 million smartwatches shipped (IDC: The premier global market intelligence company, 2018). This has raised the market share of apple to 16.1% putting the company ahead. Fitbit2, on the other hand, has managed to ship 28.1% per year. The company has landed in the third place with 8.7% market share. The IDC which is the international data corporation estimated the last quarter and the last year sales of wearable technology and the sales of the devices were up by 10.3% over 2016 (IDC: The premier global market intelligence company, 2018). Among the top five wearable firms are apple and fitbit2. Apple comes in the first position followed by fitbit2. This report discusses the comparison between the marketing mix of apple series 4 and fitbit2.

Fitbit2 and apple series target customers of both sexes, style, budget, and fitness conscious and technological adept persons. The demographic factors are put into consideration such as the age income and occupation (Fan, Lau, and Zhao, 2015, pp.30). Fitbit2 targets teenagers and early forties adults. This is because the age distribution is more exposed to mobile app technology compare to older people. Fitbit2 targets this age distribution bracket because it is in pursuit of achieving fitness targets (Jackson and Ahuja, 2016, pp.180). Additionally, Fitbit2 targets average and above average income earners. Geographically, fitbit2 looks for individuals who live in Australia and other individual living in rural, central and all types of terrain and climate. It also targets psychographic variables like personality, lifestyle, and motive due to its fitness tracking capabilities. Both targets female and male Apple on the hand targets business people which help to communicate with clients (Wu and Li, 2018, pp. 100). Both apple and fitbit2 consider income, fitbit2 targets both middle and high-income earners while Apple targets only high-income earners (Moradi, Aghaie and Hosseini, 2013, pp.118). The multinational technology firm positions itself as a premium brand which offers goods and services with advanced capabilities and functions for additional costs. Apple targets the bachelors, newly married, full nest 1 and 2 in the life cycle stage. Apple series4 targets people in occupation fields like professional managers and executives and students while fitbit2 targets people of all professions.

Product

Table 1: Comparison of shipment by volume(IDC: The premier global market intelligence company, 2018)

The apple watch series 4 has been re-engineered to include aspects of curved edges for a larger display. The watch runs on a new s4 chip making it the first smartwatch to run purely on a system in package (Apple, 2018). The watch comes in a rectangular box with the watch artwork on the surface showing different models. The watch has two finishes, the stainless steel and aluminum model the watch also comes in 40mm and 44mm size. On the other hand, the fitbit2 is thin and sleek. It is packed in an easy to open box to ease the unpacking process. Additionally, the watch comes with interchangeable wristbands, pendant, and bangle (Fitbit.com, 2018). Unlike its predecessor, the Fitbit Flex, fitbit2 is slim and has led lights that light up during notifications. It is thin and comfortable to wear on one’s wrist. Additionally, the tracker is waterproof and has a reminder to notify the user to take at least 250 steps every hour. Apple functional and emotional strategy is on the winning zone. The company attracts consumers through its high-quality watch 4 series with new features such as GPS and cellular connections. Apple watch 4 also connects to the emotional needs by using the motivation rings. Each task has a ring that fills up as the activity is being done (Lee, et al., 2014, pp.2160). Since the Fitbit2 is purely an activity tracker, the device can be operated on diverse operating platforms such as iOS, Android, and windows. The device can also last up to five days on a single charge and it is perfectly slim for an activity tracker. Apple focuses on delivering a seamless smartwatch. Although apple watch series 4 is a bit pricey as compared to the Fitbit, the device has a top of the edge s4 processor. The fitbit2 brand value aims at providing essential activity tracker at an affordable price. According to Aaker brand personality, Apple watch 4 series comes out as competent and sophisticated. The Fitbit2, on the other hand, is sincere by being wholesome in its activity tracking and cheerful.

Price

Online store	Apple watch series 4 (44mm)	Apple watch series 4 (40mm)	Fitbit 2	Garmin vivo active 3	Huawei fit
Amazon	$ 519	$ 419	$ 85	$ 264	$ 99
Apple store	$ 499	$ 399	n/a	na	n/a
Best-buy	$ 515	$ 415	$ 89	$ 268	$ 102
Alibaba	n/a	n/a	$ 80	$ 270	$ 100
Fitbit	n/a	n/a	$ 79	n/a	n/a

In its pricing strategy, Apple Inc. uses premium pricing strategy in its Apple watch series 4. The company has therefore set a high price for the smartwatch with the aim of maximizing the profit margin. The company has optimized the market by introducing different models of the Apple watch series 4. There is the 40mm watch and 44mm watch. The 40mm watch is the entry level watch and 44mm is the top end price watch. This strategy helps Apple in developing multiple prices set for the watches. The average sale price is therefore maintained as the watch caters for different markets. Fitbit 2 is primarily a tracking device. The company has established itself solidly into the market (Russell, Wood, and Previte, 2013, pp.230). Their low pricing strategy allows the device to attract potential consumers thinking of buying a fitness device. Fitbit is using the following move in its pricing strategy. For example, the Fitbit 2 costs 20 dollars more than what Fitbit flex originally sold for, and 40 dollars more than its recent pricing. The pricing of the Fitbit company is based on the features of a device. The more the features the higher the pricing.

Price

The approach taken by Apple Inc. in selling the Apple watch series 4 is in line with the company’s marketing mix. The company distributes the product through company-owned locations and other parties that the company has authorized to sell and distribute its products. This includes; Apple store locations, company website and online store for mobile and desktop, authorized sellers and lastly telecommunication companies (Counterpoint Research, 2018). Apple Inc. considers the watch to be a premium-brand hence it is only sold through the above distribution channels (Chaffin, 2018). Fitbit’s distribution is widely through the online channel. The Fitbit2 can be purchased at Fitbit main website and also is found in numerous online shops. The Fitbit 2 market is open and the distribution focuses on attracting the maximum number of consumers. The company does not have a shop only selling their brand.

Apple Inc. promotes the watch series 4 in numerous ways, involving diverse communication channels and strategies. Among its strategies, the company employs advertisement on various platforms such as Google’s digital advertising network and new websites of technology (Datta, Ailawadi & van Heerden, 2017, pp.19). Apple Inc. has signed agreements with prominent websites to promote the company’s products. The Apple watch series 4 is additionally advertised through personal selling. The employees at the store provide information to attract customers to buy the product. Moreover, the company embraces public relations with aim of optimizing the product’s image. For instance, Apple events, exclusive interviews, and press releases are critically strategized to promote positive publicity. Apple presents itself as being socially conscious through initiatives such as ConnectED, aiming at improving education and promoting business. Fitbit company promotes the Fitbit2 mainly through advertisement. This is done through small clips on tv and also ads on magazines and newspapers. The fitbit2 is further promoted through events organized by the company, where customers come and try the product (Rahmani, Emamisaleh & Yadegari, 2015, pp. 104). Through this event, the company further offer demonstrations as to how the tracker works. The main aim of Fitbit’s promotional strategy is to attract more consumers to their product, capitalizing mainly on the affordability of the fitbit2.

Conclusion

Apple’s marketing mix is based primarily on the premium image in its Apple watch series 4. The pricing of the smartwatch is higher due to the innovation and top-notch technology used in its production. The company also relies on advertisement as key for promoting the watch. Additionally, the company distribution is based only on authorized sellers and Apple Inc. subsidiaries. Fitbit 2 marketing mix is more conventional. Fitbit company base its tracker band on affordability and unique features that aim at maximizing activities tracking. The company is more open on its distribution by allowing mass distribution. The Fitbit 2 is promoted through exclusive Fitbit events. The device is also sleek and thin to fit perfectly as a tracker. Additionally, Fitbit 2 has interchangeable accessories for additional personalization. Both companies aim at maximizing profit by attracting more consumers to their products. They also focus on positioning themselves in the smartwatch and tracker industry. The Apple watch series 4 has taken the bigger market share in the smartwatch industry has shown in the appendices. Apple could improve its elements of market share by tapping more on the distribution channels by inviting various online platforms to sell the Apple watch series 4. Consequently, Fitbit can improve their marketing mix through the production of high-end tracker bands to improve on the average sale price.

References

Apple. (2018). Apple Watch Series 4 – Design. [online] Available at: https://www.apple.com/apple-watch-series-4/design/ [Accessed 22 Nov. 2018].

Chaffin, B. (2018). Apple Watch Retakes #1 Slot in Wearables in Q3 – The Mac Observer. [online] The Mac Observer. Available at: https://www.macobserver.com/analysis/apple-watch-retakes-1-slot-wearables-q3/ [Accessed 22 Nov. 2018].

Counterpoint Research. (2018). Global Smartwatch Shipments Grew 37%YoY in Q2 2018, Apple Watch Series 1 the Most Popular Model – Counterpoint Research. [online] Available at: https://www.counterpointresearch.com/global-smartwatch-shipments-grew-37yoy-q2-2018/ [Accessed 22 Nov. 2018].

Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response? Journal of Marketing, 81(3), 1-20.

Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.

Fitbit.com. (2018). Fitbit Flex 2™ Fitness Wristband. [online] Available at: https://www.fitbit.com/uk/flex2 [Accessed 22 Nov. 2018].

IDC: The premier global market intelligence company. (2018). Wearable Device Shipments Slow in Q1 2018 as Consumers Shift from Basic Wearables to Smarter Devices, According to IDC. [online] Available at: https://www.idc.com/getdoc.jsp?containerId=prUS43900918 [Accessed 22 Nov. 2018].

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Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality function deployment and new product development with a focus on marketing mix 4P model. Asian Journal of Research in Marketing, 4(2), 98-108.

Russell-Bennett, R., Wood, M. and Previte, J., 2013. Fresh ideas: services thinking for social marketing. Journal of Social Marketing, 3(3), pp.223-238.

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