4BUS1155 Understanding Marketing
Assessment Answer sheet
Chosen product: [Fitbit Versa 3]
Question 1: Macro environment
Word count: 500
Produce an analysis of the macro environment for the core brand and the new product. Do
this by choosing 3 major external factors of the macro environment from the PESTLE
framework. Discuss current influences from each of these 3 factors which could help or
hinder the progress of this business.
Three major external factors of the macro environment for the core brand and new product
are Political, Social and Technological.
Changes in politics with different regulations and laws have had an affect on the progress of
‘Fitbit’ and this stems from the COVID-19 lockdown, where stores and leisure centers were
shut and the public was instructed to stay home. This would have hampered the progress of
‘Fitbit’ due to their products being sold in various stores across the globe such as Argos and
Curry’s, however they also reaped huge rewards, because gyms were shut, many people
were unable to exercise as they would like. However the introduction of daily exercise allowed
people to get exercising and according to Walker (2020) 25% of people in the UK are now
carrying out home fitness workouts while 59% of adults in the UK are using their daily activity
to go for a walk. The ‘Fitbit Versa 3’ allowed people to track their runs, calories, steps and
many more, while also having added benefits of Heart rate tracking, music experiences, calls
and apps on the smartwatch.
Technology has been a massive external factor for the core brand and new product of ‘Fitbit
Versa3’ because developments and underdevelopment can have a big impact on the growth
this business. However current influences such as COVID-19 have helped to progress the
business, this is due to the rise in mental health cases e.g., Marshall (2020) suggests that
mental health has worsened drastically by 8.1% with young adults and women being affected
the most. This has indirectly benefited Fitbit because in August 2020 Fitbit introduced a new
product line, the ‘Fitbit Sense’ which has an electodermal activity sensor which tracks stress
levels of consumers, these findings are then represented on the stress management scale
which ranges from 1-100 with the higher score representing a lower stress level. This
development in technology has appealed to Generation z who have been struck the most by
stress and mental health issues due to COVID-19, and this gives them a way to track their
stress levels plugging a gap in the market for because data from, Mintel’s Trends Driver
Psychological, found that 21% of 16-24 year old’s say the statement’ I am actively looking for
ways to reduce stress’, and the Fitbit have provided this with their new product.
In terms of the social aspect of PESTLE and the macro environment this has also helped to
bolster the progress of ‘Fitbit’ and the ‘Versa 3’, this is due to the change in lifestyle trend.
The social aspect of PESTLE has also helped develop the progress of Fitbit and the Fitbit
Versa 3 again due to COVID-19 and the Lockdown which occurred across the world. This is
because lifestyle trends have changed due to people not being able to go to work or school,
resulting in people turning to hobbies such as exercises to stay sane. Gough (2020) States
that from a survey in USA that more than 17% of people were exercising more than usual due
to the pandemic, and this would have indirectly affected Fitbit, who due to the increased
demand would have made massive progress.
Source 1: Walker, TM, 2020. Coronavirus lockdown transforming people’s exercise habits.
https://www.leisureopportunities.co.uk/news/Coronavirus-lockdown-transforming-peoplesexercise-habits/345282
Source 2: Marshall, LM. 2020. Emerging evidence on COVID-19’s impact on mental health
and health inequalities. https://www.health.org.uk/news-and-comment/blogs/emergingevidence-on-covid-19s-impact-on-mental-health-and-health
Source 3: Gough, CG. 2020. Change in exercise habits during the coronavirus pandemic in
the United States as of April 2020. https://www.statista.com/statistics/1110985/covid-exercisehabits/
Question 2: Target customer
Word count: 500
Identify one customer profile of the core brand. Use secondary research to show evidence
of who the target market is for this new product. Then describe what a typical customer for
the core brand looks like using behavioral, demographic, geographic and lifestyle
segmentation and explain whether the target audience for this new product would be the
same or different from the current customer profile, and in what aspects.
In terms of the target market for the new product ‘Versa 3’ this is described by Pachal (2018)
as the average Jane or Joe, like to keep fit by exercising either in the gym or outside by
running, this has been backed up by ‘Fitbit’ making the ‘Versa 3’ a slimmer and cheaper
model with fewer features. For example, the Versa 3 only has assisted GPS whereas the Ionic
a better Fitbit model has real GPS enhanced with Glonass features. In terms of a typical
customer of the core brand Fitbit, originally it was made for athletes but this has since
changed and according to Sawchik (2016) Fitbit’s target audience are individuals who are 30+
who need to find motivation to stay active, people who are overweight and those who are
already active but need a means to track their activities. In terms of behavioral factors of the
typical customer, Sullivan (2017) suggests it would be those who set goals for themselves and
this links to Fitbit as is provides users with small goals such as taking 250 steps within an hour
and this would relate to the behavioral aspect of the core brand target market. Regarding
demographics according to Jackson (2016) the target audience is between 25 to 40-year
old’s, ranging for married to single individuals who are either college graduates and educated
people, having an expendable income with busy lifestyles. This would link to the target
audience listed above of people who need to find motivation to stay active due to the busy
lives they have causing them to put exercise lower down in the pecking order of objectives in
their lives. Lifestyle segmentation has already been eluded to and this surrounds the 25-40
year old age range with those living very busy lives who are either working, have children or
other commitments which lead to exercise and their physical health being put second, thus
the need for the Fitbit which helps them to stay motivated with features such as reminders to
exercise, tracking software for workouts and dieting and also goals to give its users tasks to
work towards. In some aspects the target audience for the new product the Versa 3 is similar
but in others it is different from that of the customer profile of the core brand, this is because
the new product is generally directed at younger users than that or the core brand, this is
because the core brand focuses on 30+ year old’s while the new product focuses on young
adults who have less income and are simply average exercisers. Where the two customer
profiles are the same is the intended purpose which is to help motivate users, keep them
active and give them a way to track their activities, this is also linked to behavioral and lifestyle
factors as both groups will have busy lifestyles but will also have goals for them selves which
the Fitbit provides for them.
Source 1: Pachal, PP. 2018. Hands on with the Fitbit Versa, a smartwatch for everyone.
https://mashable.com/2018/03/13/fitbit-versa-hands-on/?europe=true
Source 2: Sawchik, JS. 2016. Marketing plan – Fitbit.
https://jacquelinesawchik.wordpress.com/marketing-plan-fitbit/
Source 3: Sullivan, ANS. 2017. Behavior change with fitness technology in sedentary adults.
A review of the evidence for increasing physical activity.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5225122/
Source 4: Jackson, SJ. 2016. Target Audience: Demographics and Psychographics.
https://samanthajacksonblog.files.wordpress.com/2016/05/advwa-final-copy.pdf
Question 3: Perceptual maps
Word count: 500
Produce two perceptual maps that show the positioning of the core brand you have chosen
and at least four other competitors. One map must have the axes ‘price’ and ‘quality’, the
other needs to have different axes of your choice. You cannot do ‘price’ and ‘quality’ again.
Define each of your axes and explain why you have positioned the core brand and its
competitors in the way you have.
3.1. Perceptual map of price and quality
Fitbit has a price in the middle of the road of all its competitors around the £150 price mark as
it finds the balance between a reasonable price for all consumers of different incomes while
offering consistent quality features according to Kozuch: (2020) such as solid battery, training
programs, sleep analysis and others such as goal settings and rewards. Therefore, Fitbit sits
in the middle of the perceptual map in terms of price and quality.
In terms of its competitors, Apple sit at the high price and high-quality region, this is because it
offers more features at a higher quality according to Roux (2020) such as being able to
monitor ECG and heart rate throughout the entire day, water resistance and most
impressively an always on retina display, making the high price mark of £350-£520 a valid
range for the increased features.
Regarding Samsung Galaxy, this sits the closet to Fitbit, due to the fact it is in a similar price
range of £150-£160 and generally has similar features such as health and fitness tracking and
its durable design making it a good alternative to the Fitbit with its similar features and price
range.
Garmin is positioned upon high price and the lower side of quality due to the price being more
expensive than Fitbit and Samsung Galaxy but not adding enough features at a high enough
quality to justify the high price, this is because Roux (2020) suggests, its software updates are
unreliable and its heart rate monitor is not very accurate, however what keeps Garmin above
Fitbit and Samsung Galaxy above in terms of quality is its in built GPS system which is
arguable the best of the bunch. Xiaomi is towards low price and low quality due to it being in
the £23-£31 price mark while have no smart features but simply just having health and fitness
tracking which justifies its low-price mark.
3.2. Perceptual map of technologically advanced/basic and modern/old fashioned
I have chosen the axis’ technologically advanced and basic because in the smartwatch
industry its extremely important to stay up to date with the latest technological improvements
in order to offer consumers the best products and this separates the companies who are using
basic features from those using the latest equipment, this is linked to the next axis’ which is
modern and old-fashioned as due to fashion constantly changing its important companies
adapt to the different trends, coming up with innovative designs to appeal to the modern
consumers.
Fitbit are positioned in the middle due to them creating a sleeker design while having
substantial features which, however, are not comparable to those of Apple or Samsung.
Apple and Samsung are positioned at the upper echelon of technologically advanced and
modern due to Peckham (2020) suggesting Apple have great color options added with new
features such as blood oxygen monitoring and an upgraded chipset, while Samsung have a
premium design with rotating bezels, they also have ECG readings. Making Apple and
Samsung very modern looking while technologically stable products.
Garmin has an old-fashioned look to it going for the casual stopwatch look but it does have
the best in built GPS system according to Roux (2020) which brings its rating up.
Finally, is Xiaomi who have a modern look to their smartwatches with slim bezels, similar to
the Apple watch but they lack in the technological department with no smart features
according to Roux (2020) which knocks them down as they only have basic tracking features.
Source 1: Kozuch, KK. 2020. Best Smartwatch 2020: Top picks for every budget.
https://www.tomsguide.com/uk/us/best-smartwatches,review-2156.html
Source 2: Roux, NR. 2020. Best Fitbit alternatives in 2020. https://www.imore.com/what-arealternatives-fitbit
Source 3: Peckham, JP. 2020. Best Smartwatch 2020: the top wearables you can buy today.
https://www.techradar.com/uk/news/wearables/best-smart-watches-what-s-the-best-wearabletech-for-you-1154074
Question 4: Growth Strategies
Word count: 500
Use Ansoff to show how the new product line fits within one of the growth strategies for the
core brand. Explain, why is this growth strategy the right action for the brand to take.
Briefly explain the marketing mix (4Ps) for this growth strategy and how it will help to
achieve growth.
In terms how the new product Versa 3 fits in the growth strategy of Ansoff’s Matrix, regarding
the market, the Versa is entering a new market due to the target audience changing, however
the product has larger stayed the same, thus making the growth strategy, market
development. This is because in terms of the market, the Versa 3 according to Pachal (2018)
has changed from Fitbit targeting dedicated athletes who could track their statistics and goals,
to the mass audience of the average Joe and Jane. Also the product has more or less stayed
the same and in some cases decreased in product development, this is because the Versa 3
is a cheaper and slimmer model with few features, hence the growth strategy of market
development with the product having similar features, entering a new market This growth
strategy is the right action for the business to take because according to Jackson (2016) Fitbit
are now entering a market of 25-40 year old’s who have busy lives with substantial incomes
but struggle to find motivation to keep fit and track their progress and this is where Fitbit come
into play meeting the needs of this particular group, giving them the initiative to stay active.
This also relates to the Versa 3 appealing to the generation Z target audience with this new
product due to the cheaper price and stress management features according to Emmanuel
(2020) due to mental health difficulties which have occurred due to the pandemic and this
again is plugging a gap for this market.
Regarding, the marketing mix, the price of this new product is vital for this growth strategy due
to them targeting Generation Z members and consumers between the ages 25-40, meaning
the price has to reasonable in comparisons to their consumers and the £200 mark is key to
their development including the value and features available at that price.
The product helps this growth strategy because it offers the basic needs of the customer, to
track their activities and goals but it also offers features such as stress management which is
vital in this day and age which factors such as COVID-19, even more so due to Emmanuel
(2020) suggesting that 21% of 16-24 year old’s are actively looking for ways to reduce stress,
making the Versa 3 key to helping their needs.
Promotion is carried through the entire company through line extension as this is an extension
of a current product, expect being dedicated to the mass with specific features which are
necessary to them.
Finally is the place, the Versa 3 is available across many stores such as Argos and Curry’s
but also across the world online through the Fitbit website and sites such as Amazon making
it very accessible for consumer to attain the product no matter where in the world they are.
Source 1: Pachal, PP. 2018. Hands on with the Fitbit Versa, a smartwatch for everyone.
https://mashable.com/2018/03/13/fitbit-versa-hands-on/?europe=true
Source 2: Jackson, SJ. 2016. Target Audience: Demographics and Psychographics.
https://samanthajacksonblog.files.wordpress.com/2016/05/advwa-final-copy.pdf
Source 3: Emmanuel, ZE. 2020. Technology habits of generation Z: Inc impact of COVID-19 UK – September 2020. https://reports-mintelcom.ezproxy.herts.ac.uk/display/1041501/?fromSearch=%3Ffreetext%3Dfitbit%2520
Question 5: Buyer Behaviour
Word count: 500
Using the new product, you have chosen, describe each stage of the buying process and
how consumers might interact with the core brand. Include relevant sources to support
your analysis of the customer journey.
In terms of need recognition for the Fitbit Versa 3, this comes from the need of consumers to
find motivation to stay active and track their progress in an efficient manor according to
Sawchick (2016), in addition due to the current circumstances with COVID-19 there has been
a surge in stress levels and due to the Versa 3 having stress management features this has
increased the appeal to generation Z consumers as according to Emmanuel (2020) 21% of
16-24 year old say ‘I am actively seeking ways to reduce stress’ and this internal need
recognition will lead consumers to the Versa 3 which can adhere to their needs and problems.
Information search is the next stage in the buying process, this is where consumers are likely
to research alternative products to come to the best buying decision, due to the target
audience being those with busy lives either in school or work, the price needs to be
reasonable which the Versa 3 is and according to Sawh (2020) the Versa 3 is a well rounded
product offered at a sensible price with great battery life and features. This would appeal to
the consumers due to the price range of £200 and the adequate features you get with the
product, and this links to the evaluation of alternatives, such as the Apple watch which
although has more added features than the Versa 3, it comes at the top end of premium
pricing and may not be in the range of the target consumer of people between 25-40, another
example could be Xiaomi, who although they offer their product at a very low price it is
justified for the features they offer and this may not be adequate enough for the target
audience because Xiaomi do not have any smart features and this is where the buyers black
box comes in as certain consumers may have a bias or affiliation with particular brands for
example being in the Apple ecosystem may lead to consumers preferring an Apple watch
rather than a Samsung galaxy watch.
Regarding purchase decision, this entails how consumers buy the product and this can be in
stores such as Argos or Currys or online at the Fitbit website or Amazon, added with this is
how the product is portrayed and its packaging.
Finally is the post purchase behavior, this is about consumers reaction once they have
received the product and whether they are satisfied with it or not and the features it provides.
Source 1: Sawchik, JS. 2016. Marketing plan – Fitbit.
https://jacquelinesawchik.wordpress.com/marketing-plan-fitbit/
Source 2: Emmanuel, ZE. 2020. Technology habits of generation Z: Inc impact of COVID-19 UK – September 2020. https://reports-mintelcom.ezproxy.herts.ac.uk/display/1041501/?fromSearch=%3Ffreetext%3Dfitbit%2520
Source 3: Sawh, MS. 2020. Fitbit Versa 3 review: A potent mix of great battery and top
features. https://www.wareable.com/fitbit/fitbit-versa-3-review-8120