Marketing refers to overall activities that are undertaken by organisations in order to appropriately present and communicate their products and services to the customers. It is an essential activity which is necessary to help companies enhance familiarity of their products in the marketplace (Kotler and Armstrong, 2015). The following report is based on Apple watch series 4 and Fitbit 2, which are two of the widest recognised brands in the world. It effectively evaluate the target markets of each brand and 4P's of Marketing which is essential to determine how differently these two companies could apply these principles.
Target Market Profile
For any appropriate brand, it is essential to determine the target market profile effectively in order to channelise marketing strategies appropriately. To effectively achieve this, it is essential that the marketing planning of each brand focuses effectively on finding the most appropriate target market for its product. A detailed target market profile for both the chosen brands are described below:
Apple Watch Series 4:
Customers of Apple seek advanced technology, effective design, quality and most importantly performance in its products. Since 2015, Apple Watch has been one of the most prime choices of customers seeking all these features (Apple Watch release date is April 24th,2018). Since then, the firm effectively has produced the largest selling smartwatches. The company is tactful when it comes to choosing its target market. The STP approach for Apple Watch Series is mentioned below:
- Segmentation: Majorly, there are 3 market segments which are used by Apple. For appropriately establish its brand in the market, the company uses Geographical, Demographical and Behavioural Segments. All these segments help the company in gaining appropriate insight to choose the right type of target market.
- Targeting: Apple Watch Series 4 is a high-end brand and it is of vital importance for its target market to be composed of individuals with appropriate attributes. For the brand, the firm would be choosing general public of Urban UK, of age between 20-45, who are high earners, favourably professionals and managers who are extremely loyal to the brand and are inclined towards using technology (Apple Segmentation, Targeting and Positioning,2018).
- Positioning: Apple uses almost all forms of modern as well as traditional media to effectively make their product and its specification visible to customers.
Fitbit was founded in 2007 and has effectively reached great heights in ways which made it a $4 billion company (The story of Fitbit: How a wooden box became a $4 billion company, 2018). In comparison with Apple, Fitbit applies its market targeting strategies. Its STP approach is analysed below:
- Segmentation: The company as compared to Apple, apply tactical approach towards segmenting the market. Majorly, it consists of just demographical and behavioural segments, however, the firm also considers geographical segments too.
- Targeting: Firbit 2 would be targeting customers who are aged between 18-45, with moderate-income level, belonging to any profession, favourably in sports. In addition, the target customers must be inclined towards fitness and must be specific to use technology as a support for their products.
- Positioning: Fitbit mainly uses social media to attract millennials and use compelling videos that provide information about its specifications.
Thus, both the companies use segmentation, targeting and positioning effectively as per their objectives and nature of their target market (Rowley, 2016). While Apple Watch Series 4 targets customers who are professionally sound and technologically inclined, Fitbit 2 targets customers with more sense of physical fitness. Both companies use an appropriate blend of STP to effectively enhance the scope of targeting customers.
Marketing Mix refers to elements of the marketing which is essential for developing an appropriate strategy by companies to market their offerings to their customers (Kotler and et. al., 2015). It includes 4P's, mainly, Product, Price, Place and Promotion. The strategies used by both brands are evaluated below:
To effectively analyse the product strategy of each brand, Levitt's Model of a Brand is being chosen which would effectively help in distinguish within each brand.
(Source: Levitt's Model of a Brand, 2018)
The model has 4 aspects which are evaluated below:
- Core Product: Currently, people within the market wants a smartwatch to effectively handle all their digital operations appropriately (French and Russell-Bennett, 2015). Apple Watch Series 4 effectively provides all the extensive features and themes which stands out as unique in the market with all essential features as well as a few extra like imagery and touch surface even at the farthest reach on screen. In comparison, Fitbit 2 provides core features essential for fitness, such as pulse and heart rate, calender and call alerts, guided breathing and cardio sessions, etc. However, packaging of both the companies provide effective support to the product and along with necessary manuals for guidance of its use.
- Expected Product: It is expected from Apple Smartwatches to give unique features to customers. To address this, the entire surface of Apple Watch Series 4 has been redesigned in order to provide richer details to customers. For Fitbit 2, the watch provides all day tracking of activities of an individual and provides effective battery life that lasts almost 5 days long.
- Augmented Product: Where differentiation comes to place, Apple makes sure that its products are unique and provide better features than other companies (Seddon, 2015). Apple Watch Series 4 has the largest display of with narrower borders that allow customers to view over areas which are over 30% larger than previous watches. As for Fitbit 2, the watch provides features like tracking of sleeping pattern by using heart beats to help understand the state of sleeping better.
- Potential Product: As for a potential offering, Apple Watch Series 4 has used effective AI along with new technologies like Infograph watch face and Digital Crown which enhances the feasibility of this watch. In contrast Fitbit 2, has multiple sports mode which helps in tracking various different exercises and features like SmartTrack and Cardio Fitness Level that is very feasible for the customers.
Both firms use effective strategies to appropriately enhance their likeliness in the market. However, both are different in a functional and emotional level. While Apple Watch uses a range of features for a range of operations, Fitbit uses each feature related to fitness.
It is also important, however, to effectively determine the personality type of each brand. According to Aaker's Brand Model, there are five personality types which is possessed by companies.
(Source: 5 Dimensions of Brand Personality (Aaker))
As per these types, Fitbit possesses Competence as it is intelligent and reliable, however, personality type of Apple is Excitement as focuses on going along with trend as well as uses up-to-date knowledge.
The pricing strategy adopted by each firm has a huge impact on its success. This is because it helps in influence customers effectively. To help achieve a comparison, it is essential that a uniform platform is chosen to compare pricing. For this, online shopping store Amazon has been used, which gave the following finding on the prices of Apple Watch Series 4, Fitbit 2 and another competitor Samsung Galaxy Watch.
Apple Watch Series 4
£99 - £271
Samsung Galaxy Watch
As per the above research, it was found that Fitbit uses market penetration to attract a huge number of customers. It develops a perception of the company considering customer demand to effectively attain a better market position. However, companies like Apple and Samsung uses Premium pricing considering the kind of services offered by the organisation in their watches.
It is essential for a company to distribute its products as effectively as possible to make them available most conveniently in the market. Where Apple is concerned, the organisation uses direct as well as indirect channels to distribute its product. Apple Watch Series 4 is available at the company store which is situated at effective places within urban countries. To be more appropriate, it has more than 506 stores worldwide and is continuing to penetrate newer markets. It helps the company in enhancing the buying experience of customers (Apple Stores,2019). Where the online market is concerned, the product is available at various big online stores like Amazon. Fitbit on the other hand uses indirect channels too for selling its Fitbit 2 watches. However, the firm has issued a list of authorised buyers which provides assurance of original and quality product available to people. It is a mass-market product, where there are multiple channels as compared to Apple Watch Series 4 which have lesser outlets.
To promote their products, each company must adopt strategies that provide their message appropriately to customers. Where Fitbit is concerned, the company used social media traditionally and had information at its own website. However, the firm soon realised that it had to get past its methods and try different strategies to market the products. Thus, the firm must use other digital channels like television and radio to extensively promote their Fitbit 2. The organisation is positioning themselves as socially conscious manner where they are making compelling advertisements of the wearables and its robust features and how fitness could be managed using their products. Thus, adopting multiple strategies might help the company in gaining a better momentum.
As for Apple, the firm has always used all the types of media available to market their products. With Apple Watch series 4, the firm is continuing with its strategy of creating appropriate and effective advertising which focuses on how the product is different from that in the market. Moreover, the firm has provided outstanding information on each specification of this watch, which would help in developing interest in customers regarding the same. The company has always positioned itself effectively in minds of buyers as a luxury product with amazing features. However, with its premium pricing, the firm must provide specialised and personalised service via promotional methods to help create bigger market share (Atwong, 2015).
Thus, it is concluded from above information that marketing principles are essential to help set up effective target market and develop effective market strategies. Elements of marketing mix help in comparing and contrasting various strategies adopted by different brands. Lastly, Segmentation, targeting and positioning strategies help in acquiring effective target market.
Books and Journals
- Atwong, C.T., 2015. A social media practicum: An action-learning approach to social media marketing and analytics. Marketing Education Review. 25(1). pp.27-31.
- French, J. and Russell-Bennett, R., 2015. A hierarchical model of social marketing. Journal of Social Marketing. 5(2). pp.139-159.
- Kotler, P. and Armstrong, G., 2015. Principles of Marketing-Global Edition. Pearson.
- Kotler, P., and et. al., 2015. Marketing. Pearson Higher Education AU.
- Rowley, J., 2016. Information marketing. Routledge.
- Seddon, J., 2015. The Brand in the Boardroom: How Ogilvy & Mather Reinvented The Marketing Principles of Brand Valuation. Journal of Advertising Research. 55(2). pp.146-161.