Marketing Case Study Fitbit

These products are being utilized by people looking to monitor or learn to monitor their fitness and health goals. These wearable fitness tracking devices are compatible with most smart phones, pcs and Apple. These products are light, comfortable, with soft plastic straps on the bracelets and adjust to any wrist size. They are water resistant with similar features and come in a variety of colours; the data that is recorded can be retrieved or viewed at any time. The user can see a snapshot of their daily progress with the graphs, tools and charts provided. The Fitbit trackers are also compatible with several popular fitness apps such as Lose it, Run keeper, Map My Fitness, My Fitness Pal and others. Fitbit has a community of users with social and mobile tools, like Fitbit Challenges and food logging, to help everyone reach their health and fitness goals faster. (BloombergBusiness.com)

Old is new again, hopefully not tie tied shirts and flared jeans, the Fitbit One is a 21st century update on the basic and time proven method on how to lose weight and improve your health and fitness.

They have begun to also utilize the fitness tracker fitbit into their wellness program. The fitbit program can help with tracking employee’s fitness in real time. This is a great tool to have to motivate people to get in shape. This is a great way to use new technology and also help people connect with other people who have the same type of goals.

Park and Friedman were able to ship around 5,000 units with a further 20,000 orders on the books. Park and Friedman raised more money for their product from Brad Field and teamed up with Best Buy. Fitbit products are now found in 650 Best Buys and thousands of retail stores worldwide. The first tracker was reviewed as “pretty good”. In 2011 Fitbit was improved by adding an altimeter, digital clock and a stopwatch. In 2012 Fitbit One and Fitbit Zip were the first wireless fitness trackers to use Bluetooth 4.0/ Bluetooth Smart. This model allowed people to sync their Fitbit with IOS and Android as well as the Fitbit website. In 2013 Fitbit created a wearable bracelet: Fitbit Flex. Although the product was not entirely successful. The wristband was irritating people’s skin due to the nickel in the product. This resulted in a recall in 2014 and the irritating factor can still be a problem in some of their products today.

Identifying and evaluating the market would be the best course of action for Fitbit. A global presence is a terrific opportunity. Data surrounding markets which have the capability to leverage the tool would be important. Third world countries may benefit from the product, but not have the electronic capability to support and/or use Fitbit. In addition, the culture and social dynamics of the market would play a factor into how Fitbit is received and would be adopted. A health conscious country similar to the United States dynamics would be ideal. Or segments such as Hong Kong and parts of China may prove as ideal locations, due to the forward thinking

Although personally, I believe Fitbit like yoga pants are more of a fashion accessory than life changing. In our generation, today, we have taken many things related to fitness and have made them a trend. There has been a good amount of research studies that have based their hypothesis on the Fitbit, or use the Fitbit in some compacity during their research. Some of the studies I looked at explained that the Fitbit tracks many aspects of your life, but it is not something to rely completely on. It would be more of a complimentary product than a center stage product. I wasn’t able to figure out who exactly funded these studies, but some were posted in the clinical journal of pain, and the journal of science and medicine in sports. I, myself, didn’t sense or see any forms of quackery. These devices are sold in store as well as online. The claims aren’t definite more motivational. On the website, I didn’t see any testimonials

Health. Fitbit has become a cultural trend. For example, if a person observes someone lose weight by tracking their fitness on a Fitbit, then that person learns that they may also be able to lose weight if he or she acquires a Fitbit and replicates the same behavior. With the upper and middle classes being more health conscious, Fitbit is likely to sell more of its product

The purpose of this essay is to investigate the validity and function of the Apple Watch’s fitness features. This will be determined in two ways. Firstly, the ability of the Apple Watch’s to promote a healthy lifestyle will be reviewed. Secondly, its ability to accurately measure and quantify this lifestyle will be analyzed.

Consumers are becoming health conscious and Fitbit’s is certainly in the right direction to help them with the wellness progress. However, given the fact Apple products crushed many companies and its iWatch is a key competitor for Fitbit Inc. when it comes to wearable products. Garmin also comes with GPS technology that certainly adds more values to its wearables.

At the heart of every Fitbit is an accelerometer that measures a plethora of factors while exercising and even sleeping, depending on the device. They also all contain some form of a vibration motor that acts as an alert mechanism. All bands come in two sizes: small and large to cater to the variety of wrist sizes people have. Fitbit wristbands are composed of a synthetic polymer substance that is soft enough to rub against skin without harming it, yet strong enough to endure a fair amount of force and strain without breaking. Certain premium Fitbits have sections that are made with surgical-grade stainless steel. Fitbit product has been around for a number of years, but the market is just now warming up to the idea of fitness tracking devices. Consumers care more now than ever before about being healthy and that has led to huge spikes in earnings for Fitbit.

According to Free SWOT Analysis, Fitbit is a San Francisco established wearable device corporation who leads the way in connected health/fitness marketplace in 2007 asserting their device’s assistance individuals become more energetic, increase exercise, sleep improved, and control their weight. They have sold over 20.8 million devices as of March 31, 2015 and held a 68% share of the United States market by dollars in 2014, bragging users including the President of the United States. (Free SWOT Analysis, 2015)

It is noteworthy to address the attrition rate of these products, because they influenced my forecast of revenue and choice of terminal value. In Q1 of 2015, Fitbit sold 20 million devices. The amount of paid active users (PAU, defined as someone who has either: registered a premium membership, entered a weight measurement, logged 100 steps, or paired a device with their account, within three months) in that time period was 10 million. This suggests a 50 percent churn rate amongst users. However, Fitbit does acquire more customers than it loses. That being said, unless Fitbit is able to improve its customer retention rate, it will most likely reduce profit margins in order to sell through on existing inventory. I accounted for this in the terminal value (using an exit multiple approach) by reducing their net profit margin from their current, 13 percent to an industry average of 8 percent. Projected earnings for the TV were multiplied by 25, which is below the current industry average P/E.

regarding the company and its strategies, current market segment, market opportunities and the future of wearable technologies.

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.

StayHealthy is a multi-national company renowned for development, manufacturing and sale of fitness equipment, apparels and accessories. One of its flagship products is a fitness band called “BandX 2015” which essentially is a pedometer that also operates as a smart watch which records the number of calories burnt in a day, distance travelled, number of steps taken, measures heart rate, etc.