Assignment # 1 Case Study: Fitbit's new line to detect illnesses; Smartwatch will tell users if they are running a fever or feeling stressed

Fitbit unveiled a smartwatch enabled to tell you if you may be feeling stressed out or potentially running a fever as the coronavirus pandemic continues to grip the nation. The company announced a trio of health wearables on Tuesday, each with the brand's typical curved edges. At the centre of the lineup is the Fitbit Sense, an innovative smartwatch built with sensors that help you better understand what might be happening to your body.

The high tech wristlet comes with a sweat-reading sensor that detects "small electrical changes" to tell you how your body responds to stress. So if your palms get sweaty when you're feeling anxious the Sense can pick that up, the company claims.

"Our mission to make everyone in the world healthier has never been more important than it is today. COVID-19 has shown us all how critical it is to take care of both our physical and mental health and well-being," said James Park, cofounder and CEO, Fitbit, in a statement.

The $395 (U.S.) smartwatch also is equipped with advanced heart rate and breathing rate tracking technology as well as a skin temperature sensor that measures body heat.

Fitbit claims that during early testing, changes in the metrics occurred simultaneously with the onset of COVID-19 symptoms, "and in some cases even before."

"Wearables may be able to play an important role in the early detection of infectious diseases by acting as an early warning system for our bodies, which is critical to slowing the spread of COVID-19 and to better understanding disease progression," said Eric Friedman, co-founder and CTO of Fitbit, in a statement.

The company worked with researchers at Stanford, Scripps Research and King's College London to determine if wearables can be used to detect potential signs of the coronavirus, Fitbit said.

The battery life on the Sense lasts longer than six days, and you're supposed to keep it on at night so the device can better monitor for trends.

Along with the Sense, Fitbit is rolling out new additions to its Versa and Inspire smartwatch families.

Fitbit Versa 3 The Fitbit Versa 3 comes with baked-in GPS tracking, enhanced pulse-reading technology and a built-in speaker to take phone calls from your wrist. Fitbit added access to the Google Assistant and Amazon Alexa so you can speak to the wearable the same way you would your smartphone.

Fitbit Versa 3 is launching with a $229.95 price tag and is available in black aluminum, pink with soft gold aluminum and navy with soft gold aluminum.

Fitbit Inspire 2 The tech company also revealed a refreshed version of its most popular entry-level step tracker. The Fitbit Inspire 2 adds more tracking features and the longest battery life of any Fitbit device at 10 days.

The Inspire 2 has GPS tracking so you can get real-time pace and distance metrics as you go for a run without having to carry your phone.

It also has over 20 exercise modes and is available for $99.95 in black, white and "desert rose."

Brown, Dalvin. "Fitbit's new line to detect illnesses; Smartwatch will tell users if they are running a fever

or feeling stressed." The Toronto Star. 29 August 2020.

Assignment # 1 Questions:

1Review the five different marketing management orientations discussed in the textbook (chapter 1) that can influence a company's marketing activities. Using only the information provided in the article, identify which one of the marketing management orientations the company, Fitbit, is engaging in. Make sure you provide rationale (evidence) for your choice of orientation or management philosophy. (3 marks)

2aDefine "customer value". (2 marks)

2bDescribe the value proposition provided by Fitbit to its "Fitbit Sense" customers. In other

words, how does Fitbit create value for the customers of this particular product?

Be very specific in your answer.Name at least three benefits "Fitbit Sense" customers receive when buying this product. Do not use any of the six generic points the text uses to illustrate this concept. Don't forget to compare these benefits to the sacrifices a customer makes to receive these benefits. Identify at least one sacrifice customers make to receive these benefits. (4 marks)

3.A marketing strategy identifies a target market and the "4 Ps", also known as the

marketing mix, developed to meet the needs of that target market. Using only the

information provided in the article:

a) Describe the target market for the "Fitbit Sense". That is, which group of customers did

the company creat this product for? What characteristics do these customers share? (3

marks)

b) Describe as much of the "Fitbit Sense" marketing mix as you can, based on what

information is provided to you in the article. Remember to acknowledge the 4 different

"Ps" when writing your answer. (4 marks)

4a. Chapter 3 introduces the concept of "competitive advantage", and describes the three

types of competitive advantage: cost, product or service differentiation, and niche.

Can you identify which type of competitive advantage the Fitbit Sense has? Why or why

not? Explain your answer. (2 marks)

4b. Explain what a "sustainable" competitive advantage refers to. In your opinion, does Fitbit have a sustainable competitive advantage with the Fitbit Sense? Explain your answer. (2 marks)

5. Chapter 3 explains "Ansoff's Strategic Opportunity Matrix", also known as the Product Market Growth Matrix.

a) If you define the broad market as people who want/need wearables, which of the four strategic alternatives is Fitbit engaging in with the launch of these three new products? Explain your answer. (2 marks)

b) You are a marketing manager for the company. Suggest one way in which you could grow the Fitbit business using a "market penetration" strategy. (2 marks)