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Fitbit Premium Digital Health Tracking Subscription Service

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Fitbit Premium Digital Health Tracking Subscription Service

  1. 1. TMPremium Subscription Service Greg, Nathan, Paul, Savio Software Market Dynamics: Foundations for Successful Products Dec. 5 2012
  2. 2. Background “In order to grow revenue, Fitbit needs to develop subscription-based software and services in a way that engages existing customers, and attracts new ones.”
  3. 3. Target Segment & Target CustomerTarget Segment: • Sports & Fitness Apps: $400 million by 2016 • Wearable connected fitness devices: 80 million by 2016Target Customer - All Fitbit offerings: • Mid-Thirties • Professional, Sedentary lifestyle • Looking to maximize time efficiency • Wants to regain, or improve overall health
  4. 4. Target Segment & Target Customer Target Customer – Premium Subscription offering: • Current Fitbit hardware tracker owner/user • Wants to leverage data to achieve greater health & fitness results • Active in online communities and social networks • Places a premium on healthy living
  5. 5. Problem Statement – Fitbit (Free)“I’m a busy, working parent. Between work and family commitments itis difficult to focus on leading a healthy lifestyle,let alone find the time to exercise.All this makes me feel worn down and overwhelmed. Solving theseproblems would help me feel more organized, energetic and healthy.”
  6. 6. Problem Statement – Fitbit Premium “Im a daily Fitbit tracker user. I love seeing my daily steps count, and Im faithfully logging my meals and weight, but Im starting to get bored. Im seeing progress, but Im not sure where Im going. Solving these problems would help me renew my dedication to health and fitness, and hopefully make the journey more enjoyable.” Brand Promise: “Your data belongs to you. Fitbit will always offer a free account.”
  7. 7. Segment Size
  8. 8. Value Proposition and Positioning Interoperability w/ other platforms New! Across All major OS’s
  9. 9. Value Proposition and PositioningOpen, End-to-end Health Tracking System Comprehensive, Easy, Personalized and Fun! • Fitbit PremiumTM “gamified” UI reinforces behavior change • Measurable impact on overall well-being • Syncs/shares data across ALL platforms
  10. 10. Competitive Landscape“Market Leader” for devices(estimated Installed Customer Base)
  11. 11. Competitive LandscapeInterest over time - Google Trends (Jan. „09- Dec. ‟12) Fitbit = 2 x Nike Fuelband Fitbit = 3 x Jawbone UP
  12. 12. Actual Sleep Time Release Theme/DriverStrategy ElementsEase of Use Account setup and login within 7 days Dietary info logged within 7 days Number of failed syncs = less than 1%Motivation Average login frequency = > once per day Average Reward badges = 5 Overall weight reduction over duration of useData Tracking and Analytics User lifestyle adjustment Accuracy – Minimal tech support issues
  13. 13. Vision Molecule . Actionable Metrics* 1. “Take” Rate New Premium Members / # New Device Sales (units)2. Device Soc. Media ROI Device Sales (units) / # FB Likes 3. Premium Members Social Media ROI Premium Sales (units) / # FB Likes 4. Premium Marketplace Conversion Rate # Devices Sold via Premium Marketplace Sales Channel(* Analyzed monthly AND by device)
  14. 14. Block DiagramData Workflow forFitbit PremiumTMMarketplace
  15. 15. TM Fitbit Premium MarketplaceFeaturesExclusive coupons, promotions and deals for subscribersTargeted ad opportunities for health & wellness businesses Grow Ad Revenue model?Earn Marketplace discounts and credits for reaching usage milestonesRecommendation EngineOffers and deals will be targeted based upon usage patterns and preferencesIncreased Offline EngagementAttendance at Premium-only meet-ups
  16. 16. Business Value / The AskSales Channel Revenue Forecast$60 / month  Penetration pricing strategy: Top-Down: $40M by 2016• Gain share : post-purchase revenue streams / network affects associated with market share Bottom-up in 2013:• B2C Direct Sales Channel: entice device Users to $1.2M buy Premium Memberships memberships + Ad Rev-MarketplaceDirect Marketing via O&O / Indirect ChannelsA. Fitbit.com “Free” Community / Facebook The Ask: Drag Race to Market Leader Greenlight to enter RequirementB. Fitbit.com Premium Service: Gathering / Product Development phase 1. Online Community / Facebook for Fitbit Premium Marketplace 2. Marketplace: Cross-sell via Ad partners
  17. 17. Appendix • Target Segment • http://mobihealthnews.com/14884/by-2016-400m-market-for-health-fitness-apps/ •http://mobihealthnews.com/11224/by-2016-80m-wearable-wireless-fitness-sensors/ •http://www.informationweek.com/healthcare/mobile-wireless/10-wearable-devices-to-keep- patients-hea/240000353 • Segment Size •www.census.gov/prod/cen2010/briefs/c2010br-03.pdf •http://www.census.gov/compendia/statab/2012/tables/12s1342.pdf •www.census.gov/compendia/statab/2012/tables/12s0195.pdf •www.census.gov/compendia/statab/2012/tables/12s0212.pdf
  18. 18. Device ComparisonPrice $99.95 $59.95 $129.95Steps, distance, calories burned NAFloors climbed NASleep (hrs, # times woken, sleep efficiency) NASilent Wake Alarm (vibrates on your wrist) NASyncs wirelessly to Macs and PCsSyncs to select Bluetooth Smart/ Bluetooth 4.0devices (iPhone 4s/5, iPod touch 5th & iPad 3rd gen.)Sweat, rain, splash-proofBattery type Rechargeable Replaceable watch battery Replaceable 9 voltFree online and mobile tools(set goals, track trends, log food and more)
  19. 19. Feature Set Comparison Pt. 1
  20. 20. Feature Set Comparison Pt. 2
  21. 21. Competitor /Feature Analysis
  22. 22. Appendix cont.
  23. 23. Appendix cont.
  24. 24. Appendix cont. - Customer PersonaName: Marcy | Job: Office worker | Age: 35 | Sex: F | Married: yes | Children: 1-2Background:- works in a 9-5 job, possible overtime.- most of her time at work is spent stationary at a desk or in meetings- Has a history of exercising. Owns a gym membership that she rarely uses now- Values spending time with her kids and enriching their lives with extracurricular activities (musiclessons, soccer practice)- She finds it difficult to spend time going to the gymGoal:- She would like a way to maximize her fitness but be able to balance her work/family priorities byseeking opportunities that dont require her to go out of her way to excercise. (parking father fromwork, walking up the stairs instead of taking the elevator)- She wants to set a good example for her kids/husband to lead a healthy lifestyle
  25. 25. Appendix cont. - Desired Benefits Benefit Feature Knowledge/ability to take Sleep Monitoring action, correct sleep issues Accountability Community & Social Sharing Self-Awareness on Health Premium Online Tracking (tool for behavior change) System Illustrates opportunities for Analytics and Reporting improvement

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