Fitbit is a company that produces and sells fitness trackers, smart watches, and accessories and develops apps aimed at improving the health and fitness of their users. The company offers a narrow selection of products targeting people interested in maintaining an active lifestyle. The present paper will introduce the three key environmental factors affecting Fitbit’s marketing strategy.
Competitive Landscape
The competitive landscape is the critical environmental factor influencing Fitbit. Given the popularity of devices for health and fitness, Fitbit faces rigorous competition. For instance, Apple is the main competitor for Fitbit, as it had recently started selling iWatch, which has similar features to Fitbit products. Apple also provides a range of accessories that are popular among users. In addition, Fitbit faces a threat from competitors offering similar products at lower prices. Companies such as Huawei, Garmin, and Xiaomi sell fitness trackers at competitive prices.
The general implication of intense competition for the market is expedited development of new products. In an attempt to draw the customers’ attention, companies will seek to design new products with more features and improved looks. Moreover, some competitors might choose to lower the prices of their products to improve sales (Busso & Galiani, 2014). This could have a negative influence on Fitbit if the company fails to stay on track with the overall market development.
Social Media
The increasing popularity of social media is a significant trend that shapes the modern social and cultural environment. People use social media to connect with one another and share information across the globe. For companies operating in the technology or lifestyle sectors, this trend is crucial for two reasons. First of all, it shapes the customers’ expectations and needs. For example, modern customers prefer products and apps that enable them to connect with friends, share their fitness results, and compete with other users.
Secondly, the popularization of social media affects the market by offering marketing opportunities. For example, many companies choose to advertise their products with social media influencers as opposed to using traditional advertising methods. Social media advertisement is highly effective and can help companies in fostering brand awareness (Chu, Kamal, & Kim, 2013). As a result, social media has become another field for brands to compete in, thus affecting the marketing environment.
Lifestyle and Health
In the past decade, consumers have become more concerned with their health, diet, and fitness. This is partly due to the change in body image ideals transmitted via popular media, as well as the governments’ efforts for improving population health. These trends had a significant effect on the tech industry, creating opportunities for developing and selling products or apps aimed at improving health and fitness. This effect is not only profound and long-lasting, but also global, and such products will most likely continue gaining popularity worldwide.
The implications of this environmental factor on the market are mostly positive. First of all, it has generated numerous marketing opportunities for the tech companies willing to develop fitness and health products or apps. Secondly, it promoted the growth of the tech industry overall. A decade ago, most customers only owned a computer and a mobile phone. Today, however, the list of devices that are widely perceived as necessary for the daily living also includes smartwatches and fitness trackers. Finally, as the lifestyle and health trend is global, it also stimulated the growth of the tech market in developing countries.
Conclusion
Overall, Fitbit operates in a complex market environment that is characterized by fast development, a high level of competition, and reliance on social trends. All of the factors discussed above need to be considered in the company’s marketing strategy, as they impact the popularity of its products.
References
Chu, S. C., Kamal, S., & Kim, Y. (2013). Understanding consumers’ responses toward social media advertising and purchase intention toward luxury products. Journal of Global Fashion Marketing, 4(3), 158-174.
Busso, M., & Galiani, S. (2014). The causal effect of competition on prices and quality: Evidence from a field experiment. Web.