States, 10 percent in Europe/Middle East/Africa, 8 percent in the Asian Pacific, and 4 percent for the Americas excluding the United States (Pritchard, 2016). Fitbit’s global awareness and popularity continues to grow over time.
Demographic Segmentation.
The main demographic factors market reports mention concerning Fitbit are age, gender, income. According to a market report conducted by NPD on Fitbit’s fitness trackers, 36 percent of owners in the United States are between 35 and 54 years of age, 41 percent has an average annual income greater than $100,000, and 54 percent are female (Gustafson, 2015). Fitbit sells devices ranging from $50 to $200, allowing for with varying ranges of incomes are able to purchase them.
Psychographic Segmentation. The lifestyle that Fitbit owners participate in is fitness focused and health centric. As a way to significantly reduce group insurance premium rates, many
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Fitbit continues to remain attractive in the market, even when considering the numerous strong and aggressive competitors and the large number of continued new entrants into the fitness tracker market. According to a report by NPD Group, as of July 2015, Fitbit held a commanding 85 percent market share of wearables, while Fitbit’s closest rival Jawbone held a mere 14 percent (Booton, 2015). Fitbit’s profitability appears to be unthreatened by other competing companies in the market.
Threat of Substitute Products. Fitbit has a low threat of substitute products, mainly since their products are now considered the more cost effective alternative means of tracking fitness activity. Prior to fitness trackers, such as those sold by Fitbit, people that were interested in tracking their activity and progression either purchased space consuming cardio equipment, or monthly fitness club memberships. Fitbit fitness trackers provide a smaller, more cost effective alternative of achieving the same