Fashion Institute of Technology Spring 2015 Principles of Public Relations Term Project by: Alicja Fratczak Margaux Bellevallee Brynja Magnusson  

 

 

SITUATION ANALYSIS

Fitbit Inc. is a startup founded in May 2007 in San Francisco by James Park and Eric Friedman.

The two cofounders are respectively CEO and CTO of the company. The company

commercializes wearable wristbands and trackers using sensors and wireless technology

allowing users to have an overview of their physical activity in terms of calories burned, steps

took or heart rate. In addition, customers can download a free application (available on iOs and

Android) or combine their devices with other fitness applications. Many features are also

available on the website to succeed in changing the habits of the users in order to have a

healthier lifestyle.

The brand has a large range of products adapted to everyone’s needs and wants and is

distributed through several retailers such as Best Buy, Target, Amazon, AT&T, Verizon and

Sports Authority. Besides the technological devices customers can also purchase accessories

and apparel. All of Fitbit’s products can be ordered online.

Fitbit’s main competitors on the market are Jawbone (a start up created in 1999) and Nike

(leader in the sport equipment industry). Despite the competition Fitbit is the leader on the

fitness-tracker market with a market share of 69% for the year 2014. Jawbone, second actor on

the market had a market share of 14% for the same period.

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In 2013 FitBit invested $96 million in the company. However we can notice that Fitbit is not

used to advertising a lot and the resources allocated to promoting the brand are very low. Only

last year that the company decided to launch its first global campaign “Find your fit” with a 60

seconds spot to be broadcasted in theaters and another one of 30 seconds to be broadcasted

on TV. This campaign aims to reach a wider range of users from baby boomers to millennials.

The current audience of Fitbit can be described as followed:

-       mostly women

-       either in need for motivation or fit individuals wanting to track their data

-       technology-friendly or early adopters

-       income higher than the average

-       looking for a lifestyle improvement

SWOT ANALYSIS

This is certainly an exciting time for the wearable devices and fitness tracker market. It wasn’t

long ago when availability of such devices was limited and usually reserved for professional

athletes. However, times are changing, and the general public is paying more attention to

health and nutrition than ever before, and the market for fitness trackers is booming,

presenting fitbit with many opportunities for future growth, but also many threats it will have

to face along the way.

STRENGTHS

Big market share: As one of the first companies to introduce wearable fitness trackers, fitbit has

a big advantage in that it has been on the market for a long time, and was able to establish a

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very big market share. In 2014, fitbits market share in the fitness tracker industry was a

whopping 69%, suggesting that it is a company that is here to stay.

Well developed technology and good value: Since fitbit first introduced its first product, the

company has continued to grow and innovate. It is deemed as one of the most accurate

trackers, and has great online and mobile platforms which sync seamless with the devices. Their

products are also valued at the lower end of the spectrum, with devices starting at less than

$100.

Product compatibility: fitbit is known for its compatibility with a wide array of 3rd-party apps. It

is extremely easy to pair up fitbit devices with calorie counting apps, fitness apps, and more.

This allows users to keep their current favorite apps and connect it with the fitbit and receive

an extraordinary range of data from the collaboration.

Broad portfolio: fitbit offers a wide range of products allowing the consumer to pick and choose

based on their needs and wants. They can accommodate those who only wish to measure their

steps, and those who want a complete analysis of their daily routine from heart rate to calories

burned to sleep statistics. Fitbit even offers a scale that is compatible with their other devices

and can sync with their online and mobile platforms.

WEAKNESSES

Rocky product history: fitbit’s reputation has been tainted when cases of rashes and skin

irritations came to light, leading to a wide voluntary recall of one of fitbit products. Users

experienced skin irritation and rash most likely caused by the nickel present in the device, as

well as other materials and adhesives used.

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Limited customization: although fitbit has recently paired up with Tory Burch to offer a more

stylish option for one of their products, the option to customize is still lacking. Color offerings

for most of the devices are very limited, and in a world where the customer expects their

wearable accessories to look a certain way to suit their style, they will certainly expect the same

with their fitness wearables as well.

No brick-and-mortar, low brand awareness: considering that fitbit products are sold mainly

online and in stores like BestBuy and Kmart, they tend to be grouped with all the other fitness

devices and are poorly distinguished from the other brands. Fitbit does not have a brick and

mortar store which furthermore hurts the brands awareness on the market.

OPPORTUNITIES

Expand the product line: Although fitbits product range is fairly big, it does not reach into many

segments of the fitness industry. Fitbit could potentially go into clothing, accessories,

kitchenware (food scales, etc), or even footwear. Since fitbit was one of the first ones to bring

wearables on the market, it would have a high chance of being recognized in a different

category.

Increase the community: fitbit is eager to boast many statistics related to their product. One of

the main ones states that a user who has a friend on the fitbit platform, he or she is much more

likely to reach higher personal goals, such as walk more steps a day. This has potential to grow

into something much bigger, that allows users to connect and interact with each other,

enhancing their fitness experience.

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Collaboration: The Tory Burch collaboration did not branch out enough. It simply put a famous

shiny logo on one of fitbits products. A more expansive and integrated collaboration could

market the fitbit product better and give it the edge that it needs. It could also collaborate with

athletes and influential figures to increase brand equity.

THREATS

Saturated market: Fitbit might have been the first on the market, but it certainly is not the last.

Known brands like Nike and even apple are entering the market, and with the existing follower

base they are very likely to give their products a try before they even consider fitbit as an

option. Some extremely affordable trackers are also beginning to enter the market, some

valued at less than $50.

Growing health concerns: as the wearables market continues to grow in size, so does the

amount of research on the effectiveness and safety of these devices. People are becoming

skeptical about the safety of having an electronic device strapped to their wrists all day long,

and scientists are rushing to provide more evidence for these suspicions. As was the case with

health concerns regarding keeping cellular devices in pockets and near the body for extended

periods of time, wearable tech is experiencing similar scrutiny, which might potentially have a

negative effect on the brand.

Advancing technology: while fitbits fitness trackers are slowly advancing in technology and

allowing for more ways to track data, smart watches that are strikingly similar, yet more

advanced, are entering the market at a rapid pace. Prime example is the Apple Watch which

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was revealed only a couple of months ago. Aside from tracking steps, heart rate, and other vital

fitness information, it can also answer calls, text messages, pay at stores, and much more. This

means, that a consumer that wants a device that aids in fitness tracking might now consider a

smart watch instead, because it offers all of that and more. Fitbit must ensure that its devices

are superior and appealing enough for the consumer to pick it over the ultra talented devices

like the apple watch.

MARKETING OBJECTIVES

Fitbit is the leader on the fitness tracker market with 69% of market share for the past year far

ahead of its two major competitors Jawbone (14% of market share) and Nike. The objective for

the company is to remain in this market share and continue to be a leader in this industry. A

secondary marketing objective that aims at the African American target market, is to increase

sales by 30% by the end of the Public Relations campaign.

COMMUNICATIONS OBJECTIVES

Although Fitbit is the leader on the market, the brand still lacks visibility and a strong brand

image. The main communications objective is to increase brand awareness and recognition

among the target audiences. The PR plan aims to increase social media following by at least

25% and increase and grow the fitbit community (engagement). It is very important for the

brand to be recognizable and be a top-of-mind brand, which it currently is not.

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TARGET AUDIENCES

The overall target market for our campaign is men and women aged 18 to 30 with specific

demographics and psychographics in relation to health and fitness. In our research we found

that in fitbit's recent campaigns have been trying to appeal to 'everyone': the old, the young,

the fit and the lazy. While the Fitbit can and should be used by men and women of all ages and

backgrounds, it is difficult to create a marketing campaign that appeals to everyone. Fitbit's

Spotlight commercial that is currently running features as many different athletes and types of

people as possible. The commercial does its best to be funny and catchy to attract a wide

audience. However, we believe that a more selective and defined target will be more successful

at achieving our goals. Our campaign, both primary and auxiliary, will have a smaller target

market to create a campaign more tailored to the selected demographics.

Consumer Profile (primary):

The demographic we are looking to target are college educated Caucasian men and women

aged 20 to 34. According to the 2010 United States census this age group is approximately 63.8

million. The income range should be between $35,000 and $60,000 annually. Our

demographic will target Americans because this campaign will be running only within the

United States.

The psychographics for our target market are extremely important for the campaign. In our

survey we found that most of our 18 to 25 year olds are interested in sports and more than half

of those who don't use a fitness tracker would be interested in using one. 20% felt influenced

by athlete endorsements and 22% felt influenced sometimes. The lifestyle of our target

consumer is active, pursuing a healthy lifestyle or at least interested in improving their own

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personal health. The target should have some college education (a 2011 study performed by

the U.S. Department of health found that higher education is linked with better health).

Consumer Profile (auxiliary target market):

Our secondary target market includes 18 to 25 year old African American males. In 2010 the

African American population accounted for 12.9% of the total U.S. Population. This target

market should have an income range between $20,000 and $45,000 annually. This

demographic should range from late high school to recent college graduate. This target market

is interested in sports, particularly basketball. We would like to reach this market through

basketball endorsements, so an interest in the sport is crucial.

RESEARCH

In order to develop a successful PR campaign, extensive primary as well as secondary research

has been conducted in order to assess the public’s opinions on the use of fitness trackers, as

well as athlete endorsements, and more. A survey we have conducted asked about whether or

not participants were health and fitness conscious, whether they were proponents of fitness

tracking devices and apps, and what their opinion of these devices was. These questions

allowed us to better understand the public’s overall idea, understanding, and feeling regarding

fitness tracking apps. We have also asked about topics that would allow us to direct the

campaign accordingly. For example, we have asked whether people pay attention to athlete

endorsements and what sports and athletes they were mostly interested in.

The survey was administered to 54 participants both male and female. The participants were

54% female and 46% male, majority of them between ages 18 and 25. The key finding of the

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survey showed that almost everyone is to some extent fitness and health conscious, meaning

that they are in our desired target audience and are to some extent knowledgeable about the

fitness industry. Interestingly, the findings showed that despite the buzz about fitness trackers,

people are still relatively skeptical about their effectiveness. Only 16% of participants have used

a fitness tracker, many of them in the form of a fitness app such as a calorie counter or an

iphone pedometer. The open-ended questions asking about the participants’ opinions about

fitness trackers varied from person to person, although the general pattern suggested that

although many believed that fitness trackers were useful in staying fit, many of them were

skeptical about their effectiveness. Some people have pointed out that they seemed

complicated and hard to set up, and that they are hard to keep up with on a day-to-day basis.

Half of those who have never used a fitness tracker before indicated that they would consider

using one, but many of them had clearly stated concerns as to why they haven’t done it it.

In terms of questions that evaluated sports preferences and athlete favorites, we have received

a wide range of answers, however soccer, football, and basketball were definitive favorites.

There was not much consensus about favorite athletes. One of the key findings showed that

over 50% of participants were not familiar with the FitBit brand. This speaks volumes of the

brands poor brand awareness.

Some of the key findings of the secondary research indicated that athlete endorsement is

incredibly powerful and successful, especially if a lot of money is invested in the deal and the

athlete clearly represents the brand’s identity.

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MESSAGES

The message we want to send to our target market is that Fitbit metrics are quantifiable. We

want to send a message that the stats that come from our products are accurate and lead to a

better understanding of health. We want this message to convey that Fitbit is a scientific

method of tracking health, but in a way that sounds young and engaging. The slogan that we

will use during Alex Morgan's campaign is "Get Accurate. Get Fit. Get Fitbit."

Because the past campaigns have been so vague to target such a large market, there hasn't

been a face or theme associated with the brand. In our more targeted campaign we want to

emphasize on Alex Morgan's athletic physique. We want the consumer to create an association

between health, attractiveness, performance, and vitality with the brand.

The message that we want to send to our African American demographic is based around

competition and comparison. They will be able to see literally how much work their favorite

players are doing. Being able to compare their training and activity to their basketball team will

create self motivation and motivation among friends.

COMMUNICATIONS VEHICLES

Our campaign is focused on reaching our young active demographic by putting a face with our

products. The most popular athlete from our survey was the Swedish born Henrik Lundqvist, a

New York Rangers hockey player. Lundqvist is a highly visible athlete known not only for his

hockey but also for his Olympic gold medal, fashion sense, and lightning fast goalie style.

However, Lundqvist is older than our target market (age 33) and hockey has less visibility of the

wrists to show off the Fitbit bracelet. Even though there was consensus about about Lundqvist

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as an Athlete endorser from our survey we feel that he would not be best to represent the

brand.

For our sponsor we researched athletes within the most popular category of our survey (soccer)

to find a sponsor who would embody our product. The criteria we are looking for is very

attractive, extremely fit, male or female soccer player preferably American, willing to have their

body photographed (abs, legs, back, see sports illustrated body issue).

The athlete we feel would best embody the Fitbit brand is American soccer player Alex Morgan.

Morgan is 25 years old and considered to be one of the most attractive women in soccer.

Morgan is an Olympic, WPS, and NWSL champion. Soccer is the perfect sport for endorsing the

Fitbit because there is so much high instantly cardio involved as well as being our target

market's most followed sport. Alex has 787k followers on Instagram and 1.7 million followers

on Twitter.

In the beginning of the campaign year we want to introduce Alex Morgan as an athlete

endorser with a photo shoot. The photo shoot will be posted on social media, fitbit's website,

and will be used for advertising purposes. Throughout the year Alex will wear the Fitbit during

her soccer season and will promote the brand on social media once a month .

Half way through the campaign year (September) we will launch a back to school college fitness

contest through Instagram and Twitter. The event will encourage college students to register

their Fitbit under their college name. Their progress will be recorded over the course of a

month. The college that has the most cumulative statistics for their registered students will

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take the status as "Fitbit's most Active College" and win a visit from U.S. Soccer champion Alex

Morgan. Ms. Morgan will attend the college to sign autographs and guest speak to the soccer

teams. There is no limit to how many students may join under a college institution.

For our African American demographic our campaign will sponsor several of the division I

college basketball teams to wear Fitbit Charge heart rate bracelets during their games. This will

be a competition based event between the team members. During each game a scoreboard

will keep track of the basketball players Fitbit statistics (calories, heart rate, steps, distance). At

the end of the game the announcers will show the scoreboard to see which player had the

highest stats. The scoreboard should appear on the television program covering the game.

The teams with the highest visibility that we have chosen are the Louisville Cardinals, the North

Carolina Tar Heels, and the Duke Blue Devils. The campaign should only include the games

during the tournament dates in the 2015-2016 season which runs from March 16th until April

4th 2016 or until all three teams are eliminated.

INTERNET USAGE

FitBit benefits from a great presence on social media. The brand can be found on Facebook,

Twitter, Instagram, Pinterest, YouTube and Google +.

Facebook 730,000 likes

Twitter 165,000 followers 7,950 tweets

Instagram 75,100 followers 258 posts

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Pinterest 19,053 followers 774 pins

YouTube 8,369 subscribers 114 videos

Google + 32,211 followers 7,497,370 views

On the social media FitBit is not only promoting its products, the brand is attached to help

people having a better, healthier routine in terms of fitness or food habits. In order to do that

FitBit uses social media as a way to give lifestyle advice that are applicable whether people own

a FitBit product or not. FitBit strategy on social media is very successful and the brand has to

keep going is this way.

Facebook On Facebook FitBit needs to keep on posting lifestyle advice and promote its brand

image. It is also a great strategy to respond to comments of people in order to resolve their

problem and establish a great relationship with people not to make them want to switch from

FitBit to their competitors. Also, the FitBit page does not guide people to the FitBit pages on

other social media. It is really necessary to make people know that FitBit is present on other

media to incite them to follow the brand not only on Facebook.

Twitter On Twitter the brand is very active and post daily #HealthyHabits to encourage the

followers to have a healthy lifestyle. It is very easy with Twitter to encourage people to share

their routine or advice by using a specific hashtag and make the relationship with the brand

very interactive.

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Instagram On Instagram the #fitbit has been used 457,167 times, the #fitbitflex 60,392 times.

The goal is to keep encouraging people to use these hashtags and augment the number of use.

To increase the visibility of the brand on Instagram it could be a great strategy to implemented

monthly or quarterly contests. Contests are very popular and are a great way to reach more

users and improve the brand exposure.

Snapchat Snapchat is becoming more and more popular among millennials and increasingly

used by companies to promote their brand. FitBit is not yet on Snapchat but we highly

recommend that they join this social media to share their stories with the users.

TIMETABLE

MAR APR MAY JUNE JULY AUG SEP OCT DEC JAN FEB

CAMPUS BASKETBALL CAMPAIGN

ATHLETE ENDORSEMENT: ALEX MORGAN “FOLLOW MY JOURNEY” MONTHLY POSTINGS, EVENT APPEARANCES, ETC.

BACK TO SCHOOL CAMPAIGN

MEDIA

The media that will be aware of our primary campaign are sports channels. Alex Morgan's

soccer season will be broadcasted on several channels depending on the viewers tv provider.

Our college basketball Fitbit tournament competition will also be broadcasted on the sports

stations depending on tv provider.

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We want to utilize social media as much as possible for our events. Prior to the event starting

our Twitter and Instagram sites will promote the event. Alex Morgan will also be sending out

monthly updates in her fitness tracker on her social media profiles. We will use the hashtags

#fitbitbasketballchallenge and #fitestcollege to get our event trending on social media. The t

For our two college events we will contact the college radio, newspaper and tv stations to help

promote our events. We will also visit the colleges social media sites and online bulletin boards

to alert students to the event.

BUDGET

The budget for our campaign is $50,000. The budget will be divided between our two

demographics. $25,000 will be allotted to Alex Morgan's endorsement of the brand and events.

The other $25,000 will be divided between the three college basketball teams. Each team will

receive 12 Fitbit bracelets ($1,800 value). Each team will receive $6,533 to wear the Fitbit

charge heart rate bracelet during their tournament games. We will send them the scoreboard

segments that should be broadcasted during the halftime and after the game.

EVALUATION

At the end of our PR campaign we will have to evaluate the result of it and to what extent it has

been a success. To assess the results of this campaign we will use the following indicators:

- sales: how the sales were affected during the year the campaign ran through.

- market share: how is the brand situated towards its competitors. Has Fitbit succeeded in

improving its market share or at least keeping it the same (69%)?

- likes/followers: during the year, how many followers or likes the brand gained during

the PR campaign on their different pages.

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- hashtags: how many times the specific hashtags created for our different events were

used => to know if the different events and contests were followed by a lot of people or

not.

- survey: create a new survey to see how the brand recognition has improved through the

year. How many people are now aware of the brand, how many of them have or

consider to buy a Fitbit product.

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BIBLIOGRAPHY

"There's a Fitbit Product for Everyone." Fitbit Official Site for Activity Trackers & More. N.p., n.d.

Web. 15 Apr. 2015.

"Fitbit Dominates The Wearables Market, But Can It Survive The Coming Onslaught Of Smart

Watches?" International Business Times. N.p., 19 Nov. 2014. Web. 20 Apr. 2015.

"Fitbit Starts First Global Campaign." Advertising Age CMO Strategy RSS. N.p., n.d. Web. 10 Apr.

2015.

"FitBit CEO: What I'm Going to Do With This $43 Million in Funding." Inc.com. N.p., n.d. Web. 20

Apr. 2015.

"Press Release." Centers for Disease Control and Prevention. Centers for Disease Control and

Prevention, 16 May 2012. Web. 10 Apr. 2015.

"ACS Demographic and Housing Data". United States Census Bureau. 2013 survey. 10 Apr. 2015.

<http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_13_5

YR_DP05&src=pt>

"Henrik Lundqvist." - Official Website of New York Rangers Goalie. Henrik Lundqvist, n.d. Web.

15 Apr. 2015.

"AlexMorganSoccer.com." AlexMorganSoccercom. N.p., n.d. Web. 10 Apr. 2015.

"Can Healthy People Benefit from Health Apps?" Hwadmin. N.p., n.d. Web. 20 Apr. 2015.

Morrison, Maureen. "Fitbit Starts First Global Campaign." Advertising Age CMO Strategy RSS. N.p., n.d. Web. 10 Apr. 2015.

Singer, Natasha. "Technology That Prods You to Take Action, Not Just Collect Data." The New

York Times. The New York Times, 18 Apr. 2015. Web. 20 Apr. 2015.

Patrick, Paul. "Fitness Wearables: Who Is Positioned To Win In This Emerging HIoT Market?" Fitness Wearables: Who Is Positioned To Win In This Emerging HIoT Market? (n.d.): n. pag.Www.moorinsightsstrategy.com. Web.

LINK TO SURVEY RESULTS: https://docs.google.com/a/fitnyc.edu/forms/d/1ewMxUFzHZbfST3VB5DDqFFHl0JkYRC4rkWJ4ozoUvhY/viewanalytics#start=publishanalytics

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