Value Proposition Of Fitbit

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Purpose and process of market segmentation The purpose of segmentation is to allow the marketer to be better able to reach the consumer needs and wants which increases the positive responses for the brand. Segmentation is important during the promotion process, this is where the team decided who what and where as well as, age gender and things like buying patterns. Because of this, marketing g segmentation comes before targeting. By dividing the audience, it makes it easier to target exactly who and where to send the devices or what to do with their next model. As Fitbit brand is largely fitness tracking, Fitbit segmentation is easy. Their consumers are people who wish to track their quality of health through an easy device. The purpose…show more content…
This is the comparison of the benefits offered by a company's product to its customers relative to the price it asks customers to pay. To do this, companies can influence the value proposition in one of two ways mainly. This can be done through long term brand building. They can also offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product's merits exceedingly justify its price. Fitbit has stepped up to this by developing the ionic for the youth, with a growing world, largely dependent on technology the Fitbit now offers features like Fitbit pay. This feature comes in handy when you may forget your wallet or need to travel light on a jog. Another product value is being able to track your fitness, Fitbit has been a massive game changer, making fitness into a game, with Fitbit phone application, users can track and earn medals for their fitness. Manage their diets and have challenges with…show more content…
The pricing strategy or pricing policy is one of the most important managers make for a product as it affects the profitable outcome and competitiveness that a product may make. (Toni, 2017). A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market by dropping the price or offering more benefits with the device such as packages. Fitbits pricing strategy needed major improvement, the company suffered major losses in the previous years, the new ionic watch is promising good news for investors with the new smartwatch. The company generated $393 million of revenue in the third quarter, which was near the top end of management's guidance range. This may still be a 22% of sales decline, but it is an improvement from the last quarters 40% slump. This is the first time in the past two years the company sales have not worsened. However, Fitbit still needs to up its game like competitor, Garmin. Garmin offers a wide range of GPS devices for hikers, boaters, pilots, and fitness fans, Fitbit's success is highly dependent on just a few releases in the consumer fitness niche (Kalogeropoulos,
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