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Fitbit options of choosing substitutes such as smartwatches

Fitbit is a relative new company,  founded in 2007. However, it already established strong brand influence and brand awareness. Fitbit positions itself as the leader in the fitness tracking industry. With a primary goal being improvement in people’s quality of life, the products have lead to some people positively changing their lifestyle. For example, with health and fitness becoming a growing trend, an increasing number of people are practicing exercise as well as healthier eating habits, in the attempt to living a healthier lifestyle.

This phenomenon stimulates the development of fitness industry. Analyst at Wedbush Securities mentioned that: “ The fact that Fitbit was arguably the innovator in the space, and the combination of brand awareness, stronger products and impact of the network effect has differentiated them”, (How Fitbit is Staying a Step Ahead in the Race for Wearables, AdAge. com)”. As a result, Fitbit occupies the 77% marketing share in fitness tracking industry in 2015, competing with big companies such as Nike and Apple.

Fitbit’s current marketing strategy is providing the high quality products in order to increase customers’ willingness to pay. Besides, they are also trying to offer high-end, differentiated products for customers in American market. In addition to other fitness tracking devices, users also have the many options of choosing substitutes such as smartwatches and smartphones to track their steps and health data. In other words, the explosion of new competitors has allowed consumers to purchase their fitness tracker at a reasonable and suitable cost.

Besides, more and more users especially the females are not only looking for fitness devices, but also devices that allowed user to have personalizing options. These factors helped devices’ innovation and diversification. For instance, Fitbit cannot rest on providing a quality step tracker, and has since introduced features like text messaging, in-app workouts, and fashion accessories to keep their buyers engaged. What is more, in order to attract more potential customers including people who want to manage weight and adopt a healthier lifestyle, Fitbit will expand its brand awareness by doing charity for the public. For example, Fitbit planned an event in February 2015 called  FitForFood.

For this activity, Fitbit users can burn their calories in exchange for food that used to donate for Feeding America, a hunger relief organization. As a result, more than 106000 users participated in this campaign in less than a month. Furthermore, most users shared and invited their friends to participate this activities. This is useful marketing strategy for brand to expand awareness by engage in meaningful things , like charity which will lead customers be motivated to participate and shared with others.

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