Wearable health technology devices are more important now than ever.

The last five years have seen

an increase in digital wellness wearables that can collect data in real time and reveal the physical and
chemical properties of the body to evaluate wellness. Wearables are small electronic devices that,
when placed on your body, can help measure temperature, blood pressure, blood oxygen, breathing
rate, sound, GPS location, elevation, physical movement, changes in direction, and the electrical
activity of the heart, muscles, brain, and skin.

Fitbit was founded in 2007 and has already established a strong brand name and positioned itself as a
frontrunner in the fitness tracking industry. Although basic pedometers have been around for many
years, Fitbit saw an opportunity to revolutionize this idea by creating a product that is social,
interactive, and stylish. They capitalized on consumer health and wellness trends to appeal to a range
of consumers- from fitness enthusiasts to workout novices. The product strategy of Fitbit is very
effective and aims at meeting the needs of diverse customers keeping in view their happiness. Also,
the Fitbit products lifecycle is in its growth phase as the revenue of the company is rising over time.
Along with this, the company is highly positioned for offering high-quality products and services to
customers. Also, the key products of the company include smartwatches, activity trackers, and other
wearable devices. The main wristbands of the company are Fitbit surge, Fitbit Flex, Fitbit Charge HR,
Fitbit, etc. along with this, the use of the Fitbit bands helps the users to track six different functions
i.e. heart rate, sleep quality, active minutes, calories, counting steps and distance.

1)Target Market:

A demographic covering:

1)Health conscious or aims to become healthier individuals

2) individuals with a know how of technology and usage of smartphones.

2)What features does it have to meet the needs of the consumers?

(https://www.radiotimes.com/technology/tech-reviews/fitbit-versa-3-review/

While Apple and Samsung produce smartwatches that come with plenty of health tracking features –
but those functions aren’t those devices’ raison d'être. Fitbit, by comparison, makes wearables that are
all about your fitness. Its line of wearables cater to pretty much every price point, and the Versa 3 is
very much its mid-range option.

2) Built-in GPS tracking (with an option to switch over to that of your phone)

 Heart tracker with heart rate zone notifications

 20+ exercise modes
 Fitbit Pay for contactless payment
 Built-in voice assistant
 Sleep tracking
 Call, text and email notifications from your phone
 You can receive calls from your phone if it’s in range
  Music connection, including Spotify

Fitness and health tracking (https://www.techradar.com/reviews/fitbit-versa-3)

1) guided breathing exercises with ways to track your mindfulness and the ability to listen to
meditation tracks on the Fitbit app. 

2) monitor blood oxygen level while you sleep (provided you wear the device to bed), and this can be
important in detecting disorders like sleep apnea. 
3)  several workout options to choose from, including circuit training and interval workouts, covering
most people’s needs.

4) Battery life is another thing Fitbit does really well, far better than Apple or Samsung. Like the
Versa 2 before it, the Versa 3 offers up to 6 days of juice on a full charge

PRODUCT - The distinctive characteristics of the product by Fitbit are:

(https://www.case48.com/case/Fitbit-Marketing-Mix-8266)

Quality

 Fitbit maintains the high quality of products

 High product quality is maintained by adding value during different stages of the value chain
 Fitbit procures raw materials from reliable and trusted suppliers only
 These raw materials are processed under carefully maintained environments to maintain high
and consistent quality of the products
 High quality promise and delivery also provides Fitbit with a distinctive competitive
advantage

Ease of use

 The products manufactured and sold by Fitbit are relatively easy to use
 All products come with a user manual, which is easy to understand and which provides
simple instructions for product use
 The consumers can also call the 24/7 helpline to understand details about product usage
 Also, retail representatives provide detailed instructions and explanations regarding the use of
the product at the time of the sale

Portfolio broadness
  Fitbit has a broad portfolio of products
 The broad portfolio helps Fitbit in reaching different target groups in the market
 Also, the broad portfolio allows financial strength to Fitbit
 The broader product portfolio also adds more value for Fitbit

Benefits of product consumption

 Fitbit offers functional benefits to consumers of the product use

 These functional benefits are promised and delivered – however, they are also delivered by
other similar products
 The distinguishing aspect of Fitbit is its delivery of emotional benefits to the consumer
 Products manufactured and sold by Fitbit promise consumers an ego boost, confidence, and
security
 Fitbit also promises fulfilment of psychological needs on product consumption
 These psychological needs include, for example, the need for empathy, the need for
belonging, and the need of feeling loved.

Different SKUs

 The products by Fitbit are available in different sizes

 Fitbit has made use of different SKUs to increase market penetration
 Different SKUs can be brought and used as per the consumption needs of the consumers, and
the target markets
 Through the production of different SKUs, Fitbit has also increased the trial rate
 Different SKUs have also helped Fitbit improve its product accessibility

3) What sets Fitbit Apart from competitors:

1. Strong brand value - Fitbit’s market position among powerful competitors like Apple,
Garmin, and Samsung remains strong. They pioneered a wearable device that everyone
knows, and they have a first-mover advantage.They’ve been able to maintain a 3% market
share since their inception without much fluctuation over time. Fitbit defined the industry
and the brand name is synonymous with wearable fitness and health technology. This strong
awareness continues today.
 2) Open API platform - The Fitbit API allows developers to interact with Fitbit data in
their own applications, products and services.

 Fitbit has a variety of assets, skills, resources and competencies through which, it can exploit
to secure
 a more sustainable competitive advantage:
 - The Brand: Due to its pioneer role and initiative advantage, Fitbit is a leading brand
for fitness
 tracking wearables. Its leading position and name are valuable resources that equip
Fitbit to
 reduce the threat of new entrants. However, the brand is substitutable and similar
premium
 brands like Apple, and a new entrant like Kate Spade offer the same high-quality
products.
 Fortunately, Fitbit is utilizing its brand name to dominant the healthcare system and is using
its
 brand image, to develop B-to-B as a trusted name.

 - The Technology: Fitbit designs both hardware and
 Fitbit has a variety of assets, skills, resources and competencies through which, it can exploit
to secure
 a more sustainable competitive advantage:
 - The Brand: Due to its pioneer role and initiative advantage, Fitbit is a leading brand
for fitness
 tracking wearables. Its leading position and name are valuable resources that equip
Fitbit to
 reduce the threat of new entrants. However, the brand is substitutable and similar
premium
1) brands like Apple, to interact with Fitbit data in their own applications, products and
servic Owned by Google - . Google’s technological ecosystems give Fitbit a strategic
barrier and a better competitive position among other fitness trackers and
smartwatches.
3. Owned by Google - Google provides Fitbit with research and development powers it wouldn’t
normally have, as well as an increased budget and datasets.

4) Fitbit-orientated apps - Beyond fitness, there are plenty of additional apps developed by Fitbit and
third parties that make their smartwatches usable for so much more. They integrate with your
smartphone for messaging, calls, and notifications. Users can download apps like Find My Car or
Calorie Tracker.

5) Due to Fitbit’s constant health monitoring of its userbase, its access to data is second to none.
Through Fitbit’s exceptionally large user database and the nature of the product being worn by the
client, Fitbit has managed to amass a huge amount of data on people wearing its device. This data can
be used in a variety of ways, from risk analysis to disease prevention. This data is proving to be
exceptionally valuable to many industries for companies to better understand their markets and their
markets’ habits.

6) Fitbit’s direct relationship with users through its direct distribution offers the company great
insights into its market.
Fitbit maintains a direct relationship with the individuals who use its products, distributing products
directly to the customer. This offers the company a strong position in maintaining its finger on the
pulse of its market. Fitbit offers retail and direct shipping to service its markets.

7) Fitbit has been already working with insurance companies, other firms and even the
government of Singapore to provide customers, employees and citizens with fitness trackers
in what are likely lucrative deals, for instance.

8) Partnerships with health insurance companies and direct corporate wellness programming

https://www.fiercebiotech.com/medtech/fitbit-launches-connected-healthcare-platform-for-insurance-
plans-and-employers

https://www.studocu.com/pt-br/document/centro-universitario-farias-brito/sap/fitbit-marketing-
analysis-strategy-recommendations/11097679 - sample case study

https://docs.wixstatic.com/ugd/9266cc_2c2372a01d1c4e31aa2b656681ed530f.pdf?
index=true#:~:text=Strategic%20Focus%3A,key%20drive%20for%20Fitbit's%20growth. Sample
case study

http://fernfortuniversity.com/term-papers/pestel/nyse4/3544-fitbit--inc-.php -PESTEL Analysis

https://www.insider.com/guides/health/fitness/best-fitbit#best-fitbit-overall-1

https://time.com/5717726/google-fitbit/ - Reason for acquisition of fitbit

https://libproject.hkbu.edu.hk/trsimage/hp/fitbit.pdf - presentation by a graduate student

https://www.fastcompany.com/40578138/how-fitbit-is-trying-to-transform-healthcare-and-itself
https://healthsolutions.fitbit.com/wp-content/uploads/89116-FB_CareCoreBrochure_0618pm.R2-
PROOF.pdf - fitbit care programme used by insurance companies and corporates

4) Recommendation

Fitbit’s best chance for long-term differentiation and growth is focusing their efforts on
health and wellness through patient data tracking. Fitbit built a trusted brand platform
based on easy and fun fitness tracking, which gives them a natural segue into providing
deeper, more meaningful health insights. Furthermore, their open API enables them to
continue expanding their partnerships with software and hardware providers. Fitbit’s
fashionable and discreet look will help them convert those who currently use monitoring
devices that are bulky or not aesthetically pleasing.

-improving its medical diagnostic capabilities, such as adding the ability to measure a user’s
body temperature or VO2 max -
https://d3.harvard.edu/platform-rctom/submission/fitbit-is-the-current-
market-leader-but-are-its-steps-limited/

Suggestions for Implementation: Fitbit should conduct market research to determine where

the patient needs are and what data should be tracked. Then they should invest in R&D to
learn how to enhance their current products or expand their product lines to meet these needs.
The ultimate goal should be to become a “one-stop shop” for consumers who need to track a
range of health-related data. R&D efforts should focus on how this data can be monitored in a
way that is simple enough for users but provides sufficient feedback. Fitbit should also focus
on enhancing the quality of its data. For example, instead of simply giving heart rate
statistics, Fitbit can provide alerts to their users if their data falls outside of an acceptable
range. Fitbit can use this data to provide personalized recommendations that users can
implement to improve their health (i.e, go for a walk, take 5 deep breaths, set bed time alerts).

Fitbit should also look to partner with insurance companies, doctor’s offices, and medical
device companies. This would further engrain Fitbit into customers’ lifestyles and would
assist doctors with gathering and monitoring patient data. Insurance companies can provide
discounts for customers who own a Fitbit and medical devices like glucose monitors can be
synced through the Fitbit app. By enhancing the features and utility of their product, Fitbit
can further differentiate itself from the competition and sustain their competitive advantage in
the industry. 

(45) FitBit - Strategic Analysis | LinkedIn

5) Competitor analysis:
Apple Watch SE vs. Fitbit Versa 3: Specs compared

Apple Watch SE Fitbit Versa 3

Price $279 $229

Size 40mm x 34mm x 10.7mm 40.48mm x 40.48mm x 12.35mm

Colors Silver, gold, or space gray Black, soft gold

Battery life 18 hours 6 days

Swimproof Yes Yes

LTE option Yes ($50 more) No

GPS Yes Yes

Voice
Siri Alexa, Google Assistant
assistant

Contactless
Apple Pay Fitbit Pay
payment

https://ivypanda.com/essays/apple-watch-vs-fitbit-case-study/
#:~:text=However%2C%20there%20are%20some%20critical,are
%20peculiar%20to%20its%20products. - Apple Watch vs. Fitbit
Report

https://health.usnews.com/wellness/fitness/articles/fitbit-vs-apple-watch-for-fitness-tracking

https://edition.cnn.com/cnn-underscored/electronics/apple-watch-7-vs-fitbit-sense

https://community.fitbit.com/t5/iOS-App/FitBit-vs-Apple-watch/td-p/3017240

https://www.digitaltrends.com/mobile/fitbit-versa-3-vs-apple-watch-se/

https://www.fitandwell.com/features/apple-watch-vs-fitbit
How Fitbit partners with organisations to improve its reach (promotion)

 Fitbit’s ‘FitForFood’ campaign was a strategic partnership with Feeding America, a

charity who focuses on providing food to millions of people across the United States.
More than 106,000 people took part in the campaign, which helped to collectively
burn 1 billion calories amongst users, and consequently provide 1.5 million meals to
people in need.
 Fitbit also partnered with organisations such as Blue Cross Blue Shield (BCBS), to
give more than 60 million members in its health and wellness program access to
Fitbit activity trackers. BCBS also partnered with employers and organisations, to
help them provide Fitbit devices for their staff in aid of promoting a healthy lifestyle
within the workplace. (https://growsurf.com/blog/fitbit-marketing-strategy)

 https://www.marketingweek.com/fitbit-aims-for-the-mass-market-with-the-x-factor-
sponsorship/ - fitbit has partnered with x factor contestants

 https://med.stanford.edu/news/all-news/2020/04/wearable-devices-for-predicting-
illness-.html - Fitbit partnered with Stanford medicine for research on COVID-19.

Google brings the financial clout that Fitbit needs to progress to the next level – and
perhaps the two could take on the might of Apple Health .
(https://www.wareable.com/fitbit/story-of-fitbit-7936 - story of fitbit from its inception
to its buyout)