The Distribution Strategy of Fitbit Flex - Report Example

Marketing Report on Fitbit Flex Table of Contents Executive Summary 3 Introduction 4 The Target Market 6 Present Scenario of Fitbit Flex 9 Distribution Strategy 13 Advantages of Fitbit Flex 13 Conclusion 14 References 16 Executive Summary The project is a discussion of the fitness gadgets in today’s market. We have considered four major products in this segment, namely Fitbit Flex, Nike plus Fuelband, Motorola MOTOACTV and Jawbone UP. We have looked into each of the products and their respective target markets. . Then at the later part we have looked into the internal and the external environment of Fitbit Flex with respect to its competitors with the help of a SWOT analysis. One done with the discussion of SWOT we have then looked into the distribution strategy of Fitbit Flex across the world. In the next part we have talked about the various advantages of Fitbit Flex over the other product which makes it a better option for the buyers followed by a conclusion to the project. Introduction In the 21st century, we have seen so much innovation in the fields of information and technology. Everything is becoming more and more advanced as the days are passing by. Now days, we have gadget for almost everything. Similarly there has been much advancement in the field of health and fitness. Many gadgets are available in the market that can monitor and guide us to stay healthy and fit. Our topic of discussion is the comparison and analysis of four health and fitness gadgets which are Fitbit flex, Nike +fuelBand, Motorola MotoACTV and Jawbone UP. Out of these four, our primary concern is Fitbit flex so we will look into the market and other areas in the following paragraphs. So which of the new fitness devices is the best? We will be discussing the Fitbit Ultra, Nike+ Fuelband, Motorola MOTOACTV and Jawbone UP and try and come to the conclusion. Our report is about the item Fitbit flex as for its rivals which are Nike Fuelband besides, Jawbone UP, Motorola MOTOACTV. Let us first look into each of the products first and understand their potential (Stern, 2012). Fitbit Flex ($100) The Fitbit Flex is a thin, moderate wristband. It tracks your movement level, rest quality, calories blazed, and separation voyaged; you can program the lights on the band to show ongoing advancement on hitting your objectives. The Flex likewise vibrates to wake you up and remotely matches up to immediately upgrade your details at whatever point it’s in short proximity of the included Bluetooth-empowered remote dongle, which connects to your PCs USB port; you can additionally remotely match up to your iphone, ipad 3, ipad Mini, or Samsung Galaxy. Nike+ Fuelband ($149.00) The Nike+ Fuelband, then again, goes on your wrist. Also its one of the coolest-looking things you can put on your wrist. Covered in an elastic material, the Fuelband has a screen yet it’s made up of an arrangement of hued LED lights. You control the showcase with a little catch on it. Furthermore stowed away in the wristbands fasten is the USB port. The Fuelband does track calories and steps, yet basically tracks your "fuelpoints." Fuelpoints are dependent upon your steps; however this is truly Nikes inspiration money. You set what number of fuelpoints you expect to hit in a day and it tells you when you have arrived at that point. At the beginning of another day, it zeros out the fuelpoints. While Fitbits flower is persuading, I got fixated on getting fuelpoints regular. Id get up and walk more or take the stairs rather than the lift. It is, far and away, the most motivational out of the cluster. The band additionally has Bluetooth inherent so you can match it with your iphone and the application will reveal to you your focuses and steps on the fly - no compelling reason to join with the Internet or be close to a docking station like the Fitbit. (There is no Android application yet, however Nike has been guaranteeing one.) You can additionally connect the arm ornament to your machine to charge it and transfer the information. Nikes programming and applications are loaded with gorgeous sight; charts are brilliant and simple to peruse. On the other hand, it’s not immaculate. The wristband isnt perfect for business gatherings or pleasant occasions, and I discovered it to be flaky, on occasion. After a couple of months of utilization the Fuelband quit enrolling my steps. I needed to reset it a couple times to get it to begin working once more. Motorola MOTOACTV ($249.00) The Motorola MOTOACTV might be cut to your attire or you can wear it on your wrist with the discretionary $30 watch band. Nonetheless, the ACTV is bigger and chunkier than the rest. The gadget looks a considerable measure like the ipod Nano with a full touchscreen, however it’s really thicker than Apples minimal music player. Assuming that you can get over the measure of the ACTV (which I truly would) it be able to really gives a great deal more usefulness than the others. It has all the same fitness following capacities - it tracks steps, how far youve run, and so forth - however it likewise can track height and your running course with its inherent GPS. Theres additionally a heart rate screen and it pairs as a Mp3 player. Motorola even gives some decent looking red earbuds in the crate. The mechanism is more for workouts than commonplace fitness following. However the champion characteristic of the ACTV is the manner by which it combines with your telephone. It just works with Android telephones, not the iphone, yet download the ACTV application from the Google Play Store, combine the telephone with the ACTV through Bluetooth, and you will have the ability to see your quick messages or missed approaches your wrist. Its a smartwatch of sorts yet, once more, the true center of the device truly is on screening your movement. Inside the application, you can additionally see your steps, miles run, and so on. Whats more in light of the fact that it has a touchscreen, it is less demanding to explore on the unit. However, at last, that touchscreen is the mechanisms defeat. Since it has a full 1.6-inch LCD touchscreen, it must be charged at regular intervals or something like that, while the others could a days ago without must be revived. It likewise sets back the old finances more than the others at $250. Jawbone UP ($130) The Jawbone Up is about following your movement — like strolling, pace, separation, and calories smoldered — and keeps following your conduct after youre sleeping soundly. In the wake of connecting your Up to your iphone, ipad, or Android mechanisms earphone jack, you can check all your information through the application. You can additionally program in different details physically, such as workouts, inclination, and suppers (the Up likewise matches up with your Myfitnesspal record). The little arm ornament can additionally be customized to vibrate at an ideal time during we sleep and it can used to remind us to wake up while we sleep. The Target Market Each of the above described products is unique in itself with their in-built features and have a different market segment. Nike is already renowned with its products for sports and they have tried to bring in technology to further enhance the fitness of the athletes. The Nike Fuelband basically focuses on the sports fanatics and individuals who stress a lot on fitness. With the arrival of the Fuelband, Nike anticipated focusing on 18 to 34 year olds who are at present performing in a fitness routine or wish to get in shape and start a standard within a brief period of time, yet require a mite of help and inspiration. Additionally, people that are 18 to 34 years of age for the most part have learning and recognition with mechanically developed items like the Fuelband and advanced mobile phones. On the other hand, acknowledging that the Fuelband will be focused on towards achievers, experiencers, and innovators, this colossal target business will probably therapist to a more reasonable number. Jawbone UP has a very similar when compared with Fibit Flex and Nike Fuelband. It might be established that our target business ought to be working guys and females 24 – 50 who own an iphone or an ipod Touch, they are health cognizant or have objectives to be health cognizant, and have a wage of $35k+ (Mintel, 2010). The UP band is an extraordinary device for individuals who carry on with an occupied life, need inspiration and are innovation sagacious. This target business fits the UP item well in light of the fact that you must be an Apple device to utilize the provision, have the longing to be healthier and be in the work energy which has a tendency to go from 24 – 50 years of age. This is a disadvantage considering the fact that every one using a Smartphone night not necessarily uses an iphone. Jawbone is additionally focusing on the Android business sector to make top of the psyche mindfulness for when the UP band is accessible on different working frameworks. UP band is, no doubt focused to the working singular on the grounds that they have a tendency to invest an incredible arrangement of time sitting and are constantly occupied which fits impeccably without breaking a sweat of-utilization this item makes. Innovators are known for having plentiful assets, modern taste and enhanced need to for highly loaded devices and technology services. The Innovators are liable to possess an Apple item, have a great however occupied lifestyle and longing new innovation, for example, the UP band to enhance their health (Strategic, 2011). Thus it is easy to imagine Nike as best positioned for fitness segment while Fitbit being more aligned with health goals. Jawbone UP on the other hand tries to attract a different segment of market. The fitness device tries to integrate the Smartphone with our everyday routine. At the same time it also acts as a fitness device by giving us information about our diet and sleeping habits. Because of these features is slightly up market product compared to Fitbit Flex and is priced slightly above it. Motorola MotoACTV offers all the above features with some add-ons. From the target market point of view, it would be wrong to place MotoACTV with the above products because Motorola plans to aim a different segment altogether with their product. There are reasons behind Motorola planning to go this way. There are numerous fitness bands available in the market which can pose a lot of competition with their features and pricing. Since Motorola has done a premium pricing for the device it plans to target the fitness market as well as the latest hype of smart watches were they have products from competitors like Samsung with their Galaxy gear smart watch and Sony with their smartwatch (Kim, 2011). The use of MotoACTV can help a user reduce the use of mobile phones as it has interesting features like a music player and an FM radio for regular commuters apart from being a fitness device. So it will be a complete attraction for all the people who are completely fascinated with technology and gadgets. The pricing when compared with the other fitness gadgets is the highest of all. So it has a totally different market segment and concentrates on the high end target market who have enough disposable income to spend on fitness device which costs close to a Smartphone. Each of the units has its inherent focal points and obstacles. Built sports brands have solid brand mindfulness & validity in fitness/athletics, vast showcasing plans & bargains groups to power, and incredible learning of the client. Tech new businesses then again are more agile and have characteristic qualities in engineering learning & enhancement. Programming driven organizations have rich client bases manufactured utilizing freemium model and offer unit skeptic adaptability. As the business develops, there will be a chance for deeper division dependent upon the objectives of the singular & levels of aptitude looked for. Two fundamental classes will exist: 1) Fitness & Wellness 2) Sport Performance Enhancement Fitness & wellness classification addresses people looking to achieve certain individual health & fitness objectives. There are numerous sub-fragments in this class running in objective - weight loss/beginners, easy fitness seekers looking to keep up a sound lifestyle, or progressed fitness aficionados. This fragment could part further into people looking for health/wellness objectives as essential target and those looking for fitness as essential goal. The game execution improvement class is concentrated on particular games and the capability to help a player enhance their aptitudes in that game (e.g. a runner preparing for a marathon attempting to achieve time objective). Over the long haul, division will give a chance to organizations manufacture solid brand partiality and more reliable client groups by focusing on special gatherings with separated quality suggestions that show accurate closeness of these people. Present Scenario of Fitbit Flex Having discussed each of the products in details, we understood each of them separately and what they have to offer. Since our prime focus is towards Fitbit Flex, let us first analyze the product with the help of a SWOT analysis (Armstrong & Kotler et al., 2012). Strengths: Agile –as a tech start-up, Fitbit has an inherent preference of rate, dexterity, and ability to go out on a limb. They likewise will probably have simple access to innovation and ability. As evidence point, they have presented 5 new trackers + a sagacious scale in the course of recent years. First and foremost Mover Advantage –fitbit was one of the first tech new businesses in the fitness following industry. Building a solid client base will be a key to their long haul triumph and with first mover advantage they have colossal leg-up on new participants. Early mover status has additionally given chance to them to construct brand consciousness in what will soon be a gathered field. Incredible Technology & Value –fitbit has driven great starting accomplishment in the business sector by offering heading characteristics, a gorgeous outline, and a magnetic cost. The Fitbit Flex was the least value unit in its class at $99 (vs. $129 & $149 for a few others), had an engaging configuration & client encounter, and giving included characteristics like slumber following and Bluetooth 4.0 synching. Stage Openness –fitbit is accessible on mixed bag stages like ios & Android and any program. Likewise, Fitbit has an open API and has numerous secured associations with other portable fitness/health applications with capability to import results. At last, Fitbit permits clients to fare information (a premium characteristic) Expansive Portfolio –fitbit has wide portfolio of mechanisms (Force, Flex, One, Zip, and Ultra) with numerous color choices that extend in value level characteristics and target client giving great decision. Also, Fitbit as of late presented a canny associated scale, Aria that tracks your weight, muscle to fat quotients, and BMI. At long last, Fitbit has put resources into rich free and paid advanced administrations that incorporate capability to track nourishment and give training/coaching. Corporate Wellness/affiliates Channel –fitbit has fabricated a set of projects to draw in health protection suppliers and organizations. This is astute territory to help fabricate client base and grow it’s arrive at for insignificant showcasing financing. Also, Fitbit has constructed projects for subsidiaries to target coaches and other people who need to exchange the unit. This is an alternate included parkway that obliges insignificant promoting financing however potential to include vast client groups. Retail dispersion –fitbit offers steer on their site, yet has created an expansive set of Retail accomplices to give further gain access to clients who are not acquainted with their brand or need to touch and feel the gadget first. U.s accomplices incorporate Amazon, Best Buy, target, Sports Authority, goods. REI, and Dick’ Weaknesses: Absence of observed fitness/health skill –as tech start-up, Fitbits is ro engineering and not closeness and believability in the fitness & health market. This shortcoming however might be effectively overcome however as it raises its brand and client base. Protecting that its units give brilliant and exactness of information Brand awareness/marketing plan –as little start-up, Fitbit does not have colossal showcasing plan to drive brand cognizance. Rather, they have to depend on building their base through present strategies like incredible worth, channel dissemination, and distribution among various business houses. Opportunities: Fabricate Richer Data Set –to keep on building trustworthiness as a trusted consultant and brand on health/fitness, Fitbit ought to keep on putting resources into front line advances & sensors that improve its information set and exhibit it has the best data. They likewise need to safeguard that these advances give great and precision of the information so they dont hazard trustworthiness with absence of confidence in information. Assemble Dietary Expertise –for the most part, the current business sector is basically kept tabs on activity (calorie blaze) exercises. Nonetheless, most fitness masters will let you know that eating methodology, caloric admission and nature of nourishment you consume are more essential to arriving at your fitness & health objectives. Nobody has an agreeable position as pioneer in dietary following and counsel. Fitbit has chance to fill that space. Fitbit has incorporated some capability for clients to manual track sustenance allow and gives instruction administrations, however they ought to construct this capacity through additional mechanized following utilizing new innovations and fabricate wealthier set of dietary projects and suggestions based of following effects. Associate associations with solid dietary brands like Weight Watchers, Nutrisystems, Advocare, Myfitfoods could help reinforce their position. Permit import of information to sustenance following apparatuses like Myfitnesspal are great begin. Enormous Data Analytics –the fitness following industry is basically concentrated on following today with inspiration through recompenses and accomplishments. Insignificant examination and drilling is given. This is the following wave in this space and will be the way to supporting and locking in a solid client base and group. Given Fit client base, they ought to construct their Big Data investigation competence to give more proactive direction and proposals to clients and further build their soundness as health/fitness master. On top of this, Fitbit ought to cooperate with some heading colleges therapeutic projects for exploration and validity to their stage. This data can likewise serve as incredible hotspot for their social substance promoting effort. Corp Wellness/affiliates Expansion –with the current state of human services industry, Fitbit has immense chance to incredibly develop client base through development of their corporate wellness effort programs. This obliged small showcasing financing and gives substantial client bases to target providing for them enormous scale. Members like coaches and record centers are an alternate significant outlet and a paramount hotspot for creating trusted guide status with clients. In the event that these current trusted consultants use them in their system, it can give moment trustworthiness. Fitbit ought to grow this center focusing on expansive exercise centers like Golds gym, 24hr Fitness, Lifetime, Equinox bare, and so forth. A hefty portion of these may be eager to sponsor expense of the units to their parts as motivating forces to join or as approach to improve their preparation administrations. With their open API, Fitbit could additionally incent these organizations to raise an incorporated application that pulls in Fitbit information. Information Monetization –as Fitbit raises its client base and nature of information, it has potential to make a plan of action adapting the information. The information they gather is an enormous holding. Commercial ventures like health protection, medicinal, fitness, diet, college would likely discovers incredible esteem in the immense astounded totaled daily/hourly information they assemble. This potential chance could even be utilized as approach to sponsor the apparatus cost further developing their client base. Obviously, Fitbit requirements to fabricate strong arrangements for ensuring the security of their clients information through divulgences, pick in, security, and making information nameless is required to be successful. Position as Leader in Wellness –given created sports marks recently own solid brand tenability in the fitness market, Fitbit could move to position themselves as the reasonable pioneer for those looking for health & wellness as their essential objective. This might be much better blue-sea portion. With their solid Corporate Wellness outreach, they are as of now having a great establishment to expand on. Threats: New Tech Start-ups –many new contestants are popping up guaranteeing new innovations that give new following and data like access to hear rate observing, caloric admission screening, and so forth. Fitbit needs to stay on the front line of the innovation to not fall behind in building their validity as fitness expert. Distribution Strategy In terms of the distribution strategy, Fitbit tied up with a reputed logistic service called Brightpoint Inc. It is a worldwide pioneer in giving gadgets life cycle administrations to the remote and cutting edge commercial enterprises. In 2011, Brightpoint took care of more than 112 million remote units universally. Brightpoints 5 key administration regions – Plan, Market, Customize, Move, Recover, offer over 110 creative administrations, for example, conveyance channel administration, obtainment, stock administration, reverse logistics and repair administrations, programming stacking, kitting and modified bundling, satisfaction, item customization, ebusiness results, and other outsourced administrations that incorporate flawlessly with its clients IT frameworks and operations. Brightpoints viable and proficient stage permits its clients to profit from quickly conveyed, adaptable and practical results. Brightpoint has more than 4,000 workers, and also a critical number of makeshift staff, and a worldwide foot shaped impression coating more than 35 nations, including 13 Latin American nations through its financing in Intcomex, Inc. In 2011, Brightpoint created income of $5.2 billion, from clients in over 75 nations. Advantages of Fitbit Flex As per the report across the technology news, Fitbit Flex stands out from all the other fitness due to some major advantages upon other rivals. The 4 major points of advantage of Fitbit Flex have been listed below (Evangelho, 2013). 1) Its waterproof, the advantage being that one can wear it in the shower, take it swimming, or bravely run in a rainstorm. With no motivation to evacuate the Flex, it can all the more faultlessly track your movement 24/7. 2) It has implicit inspiration. Throwing away the clean and useful UI of Fitbits web and cell phone application, the Flex has 5 Leds that show the advancement to your objective (each one light speaking to 20%). The application itself can likewise send you motivational quick messages when youre approaching your objective. The schema of the application side of the Fitbit Flex additionally appears to be exceptionally versatile to specific client objectives. 3) It characteristics a quiet caution. For couples, this may be the Flexs "executioner application." Ill plunge into how the wristband tracks your dozing examples (something which by and by diversions me) in an expected audit, however it’s the noiseless alert that wins the prize. Basically put, the Flex tenderly buzzes you conscious without the necessity for a standard caution — the same alert that arouses your accomplice. 4) It coordinates and allotments information with Runkeeper, Myfitnesspal, and other existing fitness applications. This means the information youve as of recently gathered isnt lost; indeed it’s put to a wealthier, more objective arranged utilization. Conclusion The health & fitness wearable business is still in its ahead of schedule stages. Long haul champs will be the organizations that assemble a complete useful biological community and make solid trusted associations with their group of clients based off a consultative methodology. Though there is intense competition between all these four products, Fitbit still has a leading edge over the rest of the lot. The competitive pricing and the integration of innovative features have enabled this product to stay on the top. In the initial stage it did face lot of obstacles but in the end it successfully came out as a market winner. Nike has opportunity to dominate the sport performance segment as well. Jawbone and Fitbit have great head start as well and are building out a well-rounded complete experience. I expect some further consolidation like the acquisition of MapMyFitness by Under Armour to build an end-to-solution and weeding out of device or app companies that are not able to build a big enough user community fast enough (Hof, 2014). Fitbit has spread widely in these coming years with around 30,000 stores equipped with their fitness devices. This shows that the product and the company has been growing gently compared to the other rivals present in this segment. It is highly popular among the middle class and the upper middle class and especially those who are conscious about keeping themselves fit and healthy. Their continuous innovation in this field will ensure their product is future proof and remains in the market for a longer time. References Armstrong, G., Kotler, P., Buchwitz, L. A., Trifts, V. & Gaudet, D. (2012). Marketing. 4th ed. Canada: Pearson. Evangelho, J. (2013). Best of ces: 5 reasons youll never remove the fitbit flex wristband. 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