Company Case Fitbit: Riding the Fitness Wave to Glory

1.18
Considering Argo’s commitment towards maximising customer value which is very much
evident through its customer centric strategies such as; high-tech outlets and conveniently
accessible stores, one can surely regard this as providing superior value by Sainsbury to a
greater extent.

1.19
Share of customer refers to the total spending within a product category that your business
captures with the products and services that it offers. If we look closely at this case,
Sainsbury and Argo have captured a higher customer share for themselves by merging
together. Sainsbury has expanded its product portfolio by introducing Argo’s technology
centre which offers thousands of products to satisfy the growing needs of its customers.

1.20
To better understand the situation, we must first define the term marketing management
orientation, it refers to different marketing concepts that focus on various techniques to
create, produce and market products to customer. Now, in order for any organization to be
considered as a follower of market concept it must fulfil certain criteria which include -:
- Focus on being more effective than competitors in creating, delivering and
communicating superior customer value to the target markets.
- To find the right products for customers.
- Focus on customer orientation, company commitment and goal orientation.
If we look closely at the strategies used by Argo, the basic idea is to give superior value as
compared to their competitors. According to the current CEO of Argo, John Rogers, the core
objective of Argo is to ensure not only that the customers are encouraged to shop at Argo but
that they’re motivated to stay loyal even when the competition tries to entice them.
Furthermore, Argos’ commitment to delighting its customers is not only evident in the
increasing range of products it offers its customers and the sleek distribution system, but also
in the various promotional Special Offers programs it offers. This clearly shows about the
approach and commitment of Argo’s management when it comes to putting their customers
above everything and providing superior value to them. Hence, I strongly believe that
Argos’s marketing management orientation is a marketing concept.

1.21
Marketing landscape refers to a complete description of competitors and their relative
position at a particular market.
The key actions are -:
 - Transformation into hi-tech outlets and “digital” stores offering catalog retailing to
satisfy customer through convenience.
- Offering a wide range of products that are categorized on its websites with same day
delivery service.
- reducing the amount of CO2 (carbon dioxide) emissions it produces and to recycling
91 percent of waste from the business.
- Supporting Macmillan Cancer Support as its charity of the year from 2015 to 2017.
-

1.22
I believe, Argon could further strengthen their online presence by introducing food and
grocery items in their online portfolio since only 5 percent of grocery sales in the United
Kingdom are done online which is a great opportunity for Argon to capture more market
share. Furthermore, Argon can increase and enhance the loyalty and promotional programs to
attract the loyalty of more customers. Lastly, they should invest in techniques related to
market research to understand the changing needs and wants of their customers.

Company Case Fitbit: Riding the Fitness Wave to

Glory
3.17
The micro-environment of a business includes the factors in the immediate area of operation
affecting its performance and decision-making freedom. One of the micro environment
factors affecting Fitbit was the customer market. They captured the customer’s hunger for the
various features that Fitbit offered. They also build relationship with other company’s by
selling their product and help the companies enrol their employees into the workforce
wellness program which in return gave Fitbit many loyal users. Another factor that has
affected Fitbit is competitors. Fitbit is surrounded by various competitors which keeps them
on their toes particularly the Apple watch. Although dominating the market, Fitbit still has to
stick to innovation in order to compete well with other growing brands.
Microenvironment: The actors close to the company that affect its ability to serve its
customers = the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics.
Marketing success requires building relationship with other company departments.
This is something Fitbit did very well. By selling their products to company’s Fitbit
could help them to enrol the employees in their workforce wellness programs. In
return Fitbit gained a lot of users.
Another microenvironment factor that have affected Fitbit are competitors. Fitbit
operates in a market with many competitors. The Apple Watch was a big hit for Fitbit.
Therefore it is important for Fitbit to distinguish their selves. Fitbit is hard at work
differentiating its wares and positioning itself as more than just a maker of fitness
trackers. It has already introduced it’s own smartwatch. Even though Fitbit has a
dominant market share, competitors are always there and you have to come up with
something better to make sure they don’t overrule you.

3.18
Macroenvironmental factors consist of economic factors, demographic forces, technological
factors, natural and physical forces. In Fitbit’s scenario, the most important
macroenvironmental factor is the changing technological factors. Fitbit device is heavily
depended upon technology and it needs to embrace the rapidly changing technological
environment and capture the market and the opportunities that arise with the rapid change.
Demographic forces too have an impact on the sales of Fitbit since teenagers and young
adults are more interested in technological products as compared to adults hence it is very
important for Fitbit to evaluate their market and then come up with relevant ideas and
strategies accordingly to better serve their customers.

3.19
A big threat for Fitbit is the Apple Watch. They can face this threat by constantly
improving their technology, that customers will have the ‘wow’-effect. And by making
sure customers will stick by them instead going to the Apple Watch, making sure of
cu
Fitbit greatest challenge and threat is Apple Watch. In order to compete with Apple, Fitbit
has to constantly improve and innovate their technology. This will help them to keep a
greater market share intact with their product and by making sure that the customers stick to
their products instead of Apple health or google fir, Fitbit will have a greater customer
retention.

3.20
Environmental factors could be location and suppliers. Location is important since Fitbit will
be successful in high density urban cities while people living in rural areas may resort to
buying Fitbit. Secondly, Suppliers can form an important link in the company’s overall
customer value delivery network and suppliers’ problems can seriously affect marketing.
Therefore, it is extremely important to develop a strong and positive relationship with the
suppliers.
 Company Case Virgin America: Flight Service for the
Tech Savvy

7.19
The airline Virgin America is a subsidiary of the Virgin Group, owned by Sir Richard
Branson, is comprised of four hundred companies all over the world. Virgin America got
tremendous success in the airline business since it focused on the right target audience and
segmented the market for the airline. Virgin America targeted a segment of frequent fliers
who were young, savvy, influential young people who regularly use social media and
technology to connect with other people and willing to pay just a little bit more for an airline
that by providing exceptional service and amenities that appeal to this particular slice of
airline customers. As a result, Virgin America has been able to charge slightly higher fares
and still establish a growing base of fiercely loyal customers.

7.20
For Virgin America the target audience is young, tech-savvy generation the best way to
interact with them is through social media. The company uses social media to enhance
awareness and emotional bonding with the target audience. The company communicates with
the audience through Twitter and Facebook. Creative videos are shared on YouTube to
educate consumers. Social media campaigns aim to engage the target audience, create
awareness about the airlines, and enhance emotional connectivity. Virgin America does not
utilize TV ads as the target audience utilizes mobile phones and apps more often. The airline
company made unique and creative safety videos for the awareness of customers. As Virgin
America’s target market is young “creative class,” the best way to reach them is social media.
The social media campaigns engage customers; enhance awareness and emotional bonding
with the customers.

7.21
Virgin America offers unique and innovative features to its customers. Custom-designed
leather seats which are roomier and more comfortable than average coach seating. Every seat
has its own power outlet, USB port, and 9-inch video touchscreen with a QWERTY
keyboard/remote control which utilizes the red system. The red system is the most advanced
system of entertainment in the airline industry, which facilitates music, films, and games. For
in-flight WIFI, the airline company collaborated with Google. There are USB plugs, and
Ethernet jacks with every seat in the airplanes as the airline wants the potential customers to
use their mobile phone during the flight as well. Virgin America offers high-tech, low-cost
services to customers while being stylish and trendy. The airplanes have ample legroom and
friendly staff, which raises its appeal for customers. It’s a system designed to give
passengers a feeling of control during an experience that is otherwise mostly out of their
control. These are some of the features which make Virgin America stand apart.

7.22
Despite Virgin America’s huge success, it is difficult to flourish in the airline business due
to the excessive competition. Virgin America strived hard to keep the cost low by purchasing
other small airlines but didn’t succeed in doing so and was acquired by Alaska Airlines,
which is a small airline like Virgin America and offers award-winning services to the
customers. Because of acquisition of Virgin America by the Alaska airlines potential
customers will be slightly affected since they’ll have to use the services of Alaska airlines
after acquisition, but the positive things it that the in-flight high-tech system and
entertainment will be the same as the planes used by both airlines will be the same which was
the basis behind the tremendous growth of Virgin America.