The Huawei Band 2 Pro is another fitness tracker with a lower price point and similar features to the Fitbit, including GPS, heart rate monitor and activity tracking. It is ranked as the 4^th best fitness tracker on techradar.com. Available for $67.63 on amazon, this tracker, if it performs as well in user compatibility could provide serious competition for Fitbit.

The Tom Tom Spark 3 is another competitor. It has the advantage of reputation for GPS features, includes incorporated music features. Although the price point is higher than the previous two devices mentioned, at $198 on amazon.com, it could still capture a large market share and may be a more direct competitor of Fitbit.

The Polar M430 focuses on being a high quality running watch with all-around fitness capabilities and trackers. Its price point is $179. Finally, the Amazfit Bip hits the lower price market at $64.99 and features a screen, GPS, heart rate and activity tracker, android and apple compatibility and medium-length battery life of one month.

All these trackers, due to high customer satisfaction and a business model driven by appealing to the attitudes and lifestyle of the customer while delivering greatest value, have the potential to grow in market share and compete with Fitbit in coming years.

Market Positioning

Based on this analysis, the logical conclusion is that there are at least four distinct market segments or market shares to be captured, until one wearable manages to deliver in all areas. Different brands and offerings are best capturing each of these distinct market segments, creating a perceptual map of the wearable market as follows: 

1. The high-end, lifestyle watch which focuses primarily on business/personal features like email, text, phone, with fitness features as secondary benefits.

This is currently best captured by Apple Watch and Samsung Gear. They have very similar features, large followings, and have started to be seen as a status symbol. They can approach growth by improving their fitness sensors, fitness integration, and fitness features while building on their smart phone integration and overall technology. They are also beginning to expand by offering other features such as apps for travel, school, and work. 

2. The high-end fitness tracker that has the best quality motion sensors and a small and/or attractive enough casing to be worn all the time. This watch may or may not feature additional elements like email and text mentioned above.

The key players in this category include Fitbit, Garmin, Polar, and Tom Tom. Fitbit currently has a good balance of price and features, but growth and competitive advantage will come through better technology and activity sensors, more attractive and fashionable appearance, better app integration and flexibility of user interface, and enhanced features in the direction of email/text/phone integration. In addition, micro targeting and further behavioral and psychological segmentation will give possibilities for expansion in the market.

3. The high end watch, that happens to have basic fitness features.

This market share has Withings and Fossil as the primary competitors, with Withings approaching a higher-end market. Growth in this area will come through better fitness sensors and heart rate tracker applications, better app compatibility, and better features in the direction of Apple Watch or Samsung, while still maintaining their core ethos. 

4. The low-price point fitness tracker that can reach the largest audience with a, “why not buy it at that price?” approach. This category is marketing towards the increasing health-conscious behavior of the population and focused on the largest reach.

This market share is currently captured by Mi Band, by Xiaomi. Growth in this area will include improved fitness features and app integration, while maintaining or even reducing its price point. Further micro targeting within the Mi Brand band, can also reach larger market segments by targeting women, older people, children, etc. A key competitor in this market segment is also Moov.

Conclusion 

In conclusion, Fitbit has maintained a significant market share for its fitness-specific offerings and ability to reach into other areas such as fashion and corporate fitness. But as different offering such as Apple and Samsung have moved into the arena, Fitbit has predictably dropped to about 25% market share. This is reflective of the four distinct segments of the market and the increasing competition for positioning within the smart watch/fitness tracker market.

The various positions with the market is due to the variety of smart watches and fitness trackers with distinct features that will appeal to a distinct sub-section of the market. While evolving its wellness features, Fitbit is best positioned to continuously adapt to consumers needs, thereby capturing a greater market share. 

This case study of Fitbit serves as an example of how one company is positioned with the information to adapt, thereby reaching more segments of the market and achieving the largest market share. Successful marketing is in delivering maximum value to the consumer, where the customer’s needs are automatically anticipated and the product is seamlessly integrated in the consumer’s lives.