A paper analyzing Fitbit, its market share, and what it should do to remain competitive.

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FitBit: The Wearable Tracking Device Counting More Than Just Steps
Jazmine Reffke
Department of Advertising, Texas Tech University
ADV 3350
Professor Dustin McDunn
April 20, 2021

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Has someone ever told you they needed to “get their steps in,” or that they were only
1,000 steps away from their goal? If so, it is likely due to the revolutionary modern pedometer
Fitbit, which has changed the way in which people all over the world track their fitness.
According to a study conducted in June 2019 by Pew Research Center, approximately one-in-
five adults living in the United States admit to wearing a “smart watch or wearable fitness
tracker” regularly (Vogels, 2020). Fitbit was essentially the first of its kind, paving the way for
the plethora of wearable devices we see on the market today. However, market competition and
attempt to keep up with the fast-changing and ever-evolving technology of today threaten the
once industry leading product. For this reason, it is important for Fitbit to improve its future
marketing efforts and not only keep up with the competition but stand out from it as well.
A Fitbit is a device that is worn on either the wrist like a watch, or clipped to clothing,
and is used to track daily steps and monitor sleep cycles among other things, such as caloric
intake and heart rate monitoring (Marshal & Stable, 2020). The goal of the product is to reach at
least 10,000 steps per day, which stems from a pedometer made in the 1960s by Dr. Yoshiro
Hatano, a Japanese researcher (Howley, 2021). The research done by Dr. Hatano suggested that
10,000 steps per day was “the right balance between calories ingested and calories burned,”
which has “been a prevailing exercise-for-weight management idea ever since” (Howley, 2021).
Tracking and striving to achieve this goal in addition to other health monitoring factors helps
promote a healthier and more active lifestyle for its wearer. The company’s mission statement
boasts that the company is “building products that help transform people’s lives” while
encouraging its users to reach goals by feeling empowered (Fitbit, n.d.). The design of the Fitbit
itself as well as the app are intended to “fit seamlessly into” the life of those that use it, and has
adapted the technology it offers to do so (Fitbit, n.d.). The app and website also allow users to

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not only track their daily progress and progression over time, but also allows for community
sharing with family and friends (Fitbit, n.d.). Fitbit has a “feed” on its website which allows
users to post questions, interact with other users, and share with family and friends. The goal of
this aspect of their brand is to provide a sense of community as well as friendly competition and
motivation using challenges and an online forum (Fitbit, n.d.). There are currently several
different versions and styles of Fitbit devices, made to fit into the lifestyle of the buyer with
different offerings of features for each. The wide range of devices offered by the brand is also
another feature that gives Fitbit an edge over competitors, as most brands do not have the variety
that is presented by Fitbit. The Fitbit website also has a page dedicated to finding one’s best
match for device by use of survey, giving the buyer the feel of a customized and more personal
approach to their devices. This feel of personalization along with the relatively affordable price
point in comparison to its competitors is appealing to customers. Whichever device the consumer
chooses, however, the goal and impact remain the same: visualize data about their physical
activity levels and overall health, and make adjustments and improvements where necessary to
lead a healthier life.
Beginning as a $400,000 start-up in 2007 by James Park and Eric Friedman, Fitbit
quickly became the leader in wearable fitness tracking (Marshall & Stable, 2020). In its
beginnings, Fitbit led the
wearable market, being sold in
Best Buy and Walmart by
2011 (Curry, 2021). However,
competition from the
launching of smartwatches by

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other brands as well as “an influx of cheaper brands from China” knocked Fitbit of its proverbial
throne. Currently, Fitbit is no longer the industry leader, and consistently is topped by Apple
(Koetsier, 2019). Brand loyalty among Apple users also makes it difficult for Fitbit to compete
with, as vastly loyal Apple customers are inclined to only buy Apple products (Andrew &
Haque, 2020). Fitbit is now faced with not only trying to catch up and surpass its competitors to
stay viable in a challenging market, but also innovating new technology that increases the
brand’s marketability among its target audience. Based on a series of advertisements, it becomes
quite clear the target market of the Fitbit. It seems that the brand mainly focuses its attention on
adults aged thirty to forty, who are of average income and lead busy, professional lives. The
Fitbit customer also may have one or more children and are either already fit and would like to
keep better track of their fitness, or is a person that is not fit but desires to become more active.
Though Apple
remains a competitor for
Fitbit, the brands have
different audiences to which
their products are geared. As
opposed to Apple’s
smartwatch, the Fitbit is
more designed for those that
would like to be more active
and for “getting people
moving” (Howley, 2021).
The brand has also slighted
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
2014 2015 2016 2017 2018 2019 2020
Revenue
in
Billions
of
Dollars
Year
Fitbit has had consistently lower revenue than
Apple Watch
Fitbit Apple Watch
Data collectedfrom
www.businessofapps.com

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Apple in an advertisement by stating that the Fitbit is not “a phone on the wrist,” but more than
that, as it tracks and monitors every aspect of one’s life and health (YouTube, n.d.). While the
ages of both Fitbit and Apple’s target audiences are roughly the same, those in Apple’s target
market are those with “medium to high-income,” while Fitbit has a wide range of prices for
every income level (Andrew & Haque, 2020).
In the past, Fitbit has used celebrity and humanitarian efforts to raise brand awareness.
For example, in 2015 the fitness brand teamed up with comedian Joel McHale and launched the
FitForFood campaign, in which Fitbit users “burned calories in exchange for food that would be
donated to Feeding America” which is an organization dedicated to fighting hunger (Hum,
2020). This type of campaign not only uses star power to reach the fans and followers of a
celebrity, but also show consumers they are conscious and philanthropic adding a positive brand
image. This was an effective campaign because as previously stated, the already growing fitness
tracking brand increased its brand awareness and emphasized its values. The brand successfully
achieved its goal by getting its users to do what they are already doing—counting calories, not
only for the good of themselves but also for the good of others. The campaign garnered over
100,000 participants and donated over 1 million meals to the hungry through Feeding America
(Hum, 2020). The success of this ad campaign is due in part to the way in which Fitbit advertised
the movement. Because Fitbit, Joel McHale, and Feeding America all shared the campaign on
their social media channels, the brand was able to reach more consumers. Users were already
counting their calories, so no extra time, effort, or money was needed from the consumer to be
involved. This was an important factor to note as many people already feel they are too busy or
on too tight of a budget to donate any extra time or money to charity, but with the FitForFood

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campaign, consumers could feel that they were helping others and being a part of a good cause,
without any additional stress.
Currently, Fitbit aims to promote health in more aspects than one with the launch of Fitbit
Care and new and innovative health features on its devices. The brand is making a shift from just
counting calories and steps to a multifaceted view of the user’s overall health as it strives to
“produce products that aid consumers with chronic health conditions such as diabetes and
cardiovascular disease” (Roderick, 2016). There are many new features Fitbit is adding to its
wearables to achieve this shift including monitoring oxygen saturation, body temperature, and
heart rate variability. According to Deborah Leader, oxygen saturation, or SpO2, relates to the
“extent to which hemoglobin is saturated with oxygen” (2020). Hemoglobin is found in the
blood and “binds to oxygen to carry it through the bloodstream to the organs, tissues, and cells”
of the body (Leader, 2020). Normal oxygen saturation is between ninety-six and ninety-eight
percent, with urgent supplementation necessary for any levels lower than those (Leader, 2020). A
decrease in oxygen saturation can lead to cell damage and even cell death. Low SpO2 levels can
also be related to conditions such as anemia, chronic obstructive pulmonary disease, heart
disease, and asthma (Leader, 2020). For these reasons, monitoring one’s SpO2 can be vital for
those suffering from any of these conditions already, as a timely response is crucial when a
decrease in oxygen saturation occurs. The body temperature monitoring feature is another way
Fitbit aims to keep the focus on the health of its user (Fitbit, n.d.). Knowing the temperature of
one’s body at all times is especially valuable due to the COVID-19 pandemic. Being able to
watch the temperature of one’s body can alert the wearer of any changes such as fever, which is
one of the symptoms of COVID-19. Realizing that one’s body temperature is elevated before
other physical symptoms occur, could potentially help stop the spread of the virus. Another

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innovative feature being added to the Fitbit smartwatches is the ability to track heart rhythm via
ECG, or electrocardiogram (Fitbit, n.d.). An ECG is a device that assesses the heart for atrial
fibrillation, also known as AFib (Fitbit, n.d.). Due to irregular contracting of the heart, AFib can
cause an increased risk for diseases such as “blood clots, stroke, and other heart conditions”
(Fitbit, n.d.). Not only can the wearer monitor their heart rhythm from their wrist, but they can
also share the results with their provider, which can be especially helpful as AFib can be hard to
detect (Fitbit, n.d.). With the target audience of the Fitbit being those in their thirties and forties,
it seems that these features would really be of more benefit to those that are at higher risks of
being affected by chronic health conditions, which typically are the older population.
Marketing to the more health-conscious demographic has proven effective thus far, and it
would greatly benefit the brand to continue to market their devices as such. Fitbit Care combines
a new Fitbit app, health coaching, and the wearable device, which has allowed improved
outcomes for “some of the most common and costly conditions in healthcare, such as diabetes
and hypertension” (Neuts, 2019). Additionally, Fitbit has partnered with WellCare of Georgia’s
Medicaid health plan allowing those with type one and type two diabetes to receive a Fitbit after
completing a thorough eye exam (Reuter, 2019). Not only will these people receive a Fitbit
through their health plan, but they will also “receive coaching and educational materials through
Fitbit’s platform” (Reuter, 2019). Because about one in five people in the United States utilizes
Medicaid, the potential reach in this market would “give the company foothold” as well as
increase the reputation of the Fitbit as a “health device” (Reuter, 2019). A small study was
conducted in 2018 by Twine Health (a health coaching platform), which showed the efficiency
of the Fitbit in not only helping its user decrease their blood pressure, but also lowering their
hemoglobin A1C level, a measurement of the average blood sugar levels in the body (Reuter,

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2019). This type of partnership would help the patient in more aspect than one, as it gives the
patient an incentive “to complete their annual eye exam” which is a “critical component of
diabetes management,” and give the patient a better look on the complete health of their body as
it relates to diabetes (Reuter, 2019). The use of Fitbit Care has also allowed its users to meet with
coaches via phone or in person to “support health goals and manage chronic conditions,” outside
of the clinic which is important in achieving successful results in the management of health
(Neuts, 2019). Because “there is a clear need for innovative tools and services” to improve the
lifestyles of people, and because many believe there is great potential for Fitbit Care to “improve
health outcomes,” Fitbit should focus more marketing efforts on acquiring more health care plan
partnerships, as it is a large market that is not saturated (Neuts, 2019). This would not only allow
Fitbit to differentiate itself from other brands, it could also benefit the brand is it would have a
large presence in the health community.
While staying nimble and appealing to consumers in a greatly competitive market can be
a challenge, there is always room for growth. In a study done by the research firm eMarketer, it
was expected that smartwatch users would increase nine percent in the coming year, a number
that is likely to continue its incline (Pressman, 2018). In the age fifty-five and older
demographic, however, this increase would be more than fifteen percent (Pressman, 2018). For
this reason, it is important to create a target audience that is broader than the current. Knowing
that people in the older demographic are now looking at wearable smart devices, it is important
to advertise to them as well as the current demographics, to illustrate to that group that there is a
Fitbit for them and that the purchase of a Fitbit will be beneficial to their daily lives. Because
Fitbit is gearing toward a total health approach, it is important to capitalize on that by creating
advertisements and other media that focus on that aspect of the brand. It is important to showcase

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not only to the fifty-five plus demographic that these wearables will be an asset to them and their
health, but also to their adult children who may suggest their parent purchase a Fitbit as to help
keep a watch on their health. One idea for advertising the new health-conscious advertisements
would be a commercial or series of commercials that demonstrate the benefits of the devices for
those with aging parents who have chronic health conditions, where notification of change in
vitals would be critical for treatment.
Another proposal for future marketing endeavors would be to get Fitbit associated with a
sports entity. A partnership with a team or player in the NFL, NHL, NBA, or MLB as well as
other sports types such as swimming, gymnastics and other cardio-heavy sports, could prove to
be invaluable to increase brand awareness as well as revenue. For example, if the company found
a partnership with an athlete or several athletes across different sports, the marketing campaign
could reach an even wider audience. The advertisements through commercials, social media and
in magazines could demonstrate the benefit the athletes receive from the Fitbit. It would be
important to feature the athlete training, working out, and playing their sport then utilizing the
data from the device to adjust their regimen or to track their progress. Featuring athletes that are
currently in the spotlight would utilize their star power to promote the brand and reach a wide
range of people. Social media would play an important role in this endeavor. Currently, the brand
is active on Twitter, Facebook, LinkedIn, Instagram, and YouTube. According to Dweck, Apple
focuses its social media and advertisement budget almost completely to YouTube and Twitter,
meaning other social media platforms are lacking a wide presence from Apple (2018). While it is
still important to have a large presence on the platforms that Apple uses, it also means that
increasing the presence on other channels would be important for the brand as well to increase
reach without interference from competition. Having a presence on SnapChat by posting branded

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and sponsored ad content featuring celebrities or influencers could also be a way to reach a
younger and wider audience. TikTok is currently the app that is most trending among the
younger demographic, so creating a challenge that is performed or started by a popular TikToker
would be another way to not only engage with consumers, but also reach a wider consumer
audience. It could also be beneficial to feature athletes that have since retired from their sport
and now are even more conscious of tracking their health as they age. Doing so would resonate
with fans of the retired athlete and simultaneously reach and encourage the older age
demographic to do the same. Overall, having a bigger presence on social media coupled with the
star power that comes with top athletes would be advantageous for brand promotion and
awareness, which leads to increase in revenue.
As previously mentioned, the biggest threat to Fitbit is the Apple Watch. Though Fitbit
maintains that it is more fitness and health geared to differentiate itself from the Apple Watch,
the tech giant remains a competitor. Apple continues to dominate the wearable market as it not
only owns twenty-one percent of the market share, but also “became the biggest shipper of
wearables in 2017” (Riley, 2018). Upon launch, Apple set out to also differentiate itself from
being lumped into the fitness tracker category according to Maribel Lopez, an Apple analyst, by
partnering with luxury brands such as Hermes, Kate Spade, and Coach (all high-end fashion
brands) “at high price points” (Riley, 2018). These partnerships have allowed the Apple Watch
to reach consumers who may not have otherwise considered the brand a luxury item as well as
“claim more physical retail space” (Riley, 2018). Like Apple, Fitbit partnered with fashion brand
Tory Burch to make its fashionable bands. When asked if the brand would consider partnering
with sports entities such as Adidas or Under Armour, the response was that they wanted to focus
their partnerships to fashion rather than the fitness space (Ghosh, 2016), Some would consider

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this to be detrimental or at the very least misaligned with their brand values. The Fitbit has
always boasted that it is first and foremost aligned with health and fitness, so it seems the
obvious choice would be to partner with a well-known sports company and embrace its fitness
core. A partnership of this kind would seem to serve the purpose of the wearable company better.
While important to provide stylish bands for their wristwatches, it is equally important to reach
the consumer that they are aiming to target. Because Apple is already associated as an innovative
and higher-end tech company, it makes sense that the brand would partner with luxury fashion
brands. As for Fitbit, their pricing reflects that of a more affordable option for the average
person, so making a partnership with a luxury brand also seems counterintuitive. A collaboration
with a fitness company would make more sense for the brand, and could potentially allow the
company to reach an audience that Apple is not already marketing to, especially since Fitbit has
aligned itself as company that values health, fitness, and function over fashion. The
advertisements of devices would benefit both the sports brand itself as well as Fitbit. If, for
example, Fitbit decided to partner with Reebok, not only would Reebok reach the base of Fitbit
users, but also vice versa. Fitbit would be able to show that the products are able to withstand
sweat, impact, and the elements. This demonstration would be beneficial for the Cross Fit
enthusiasts as Reebok sponsors the sport, and the athletes could see firsthand the advantages of
the Fitbit over other smart watch brands. Also, because Reebok is a trusted sponsor for the Cross
Fit athletes, those same athletes would then trust Fitbit based on the relationship and proximity to
Reebok. Whatever the brand, a collaboration with a sports company would increase visibility as
well as brand image, as Fitbit would be associated with a reputable sports brand known for
quality. This partnership would be advertised on all social media outlets with paid ad
sponsorships on websites such as Facebook. Commercials, print ads in popular health magazines,

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and advertising in sports stores such as Dick’s Sporting Goods would also increase brand
awareness.
Fitbit was essentially the first health tracker on the market and was consistently the
market leader. However, market competition from competitors offering similar technology from
brand names such as Apple, has threatened the Fitbit line of devices. Because many of the
offerings and features of the products are similar, Fitbit struggles to differentiate itself and stand
out to consumers to reclaim its position as most sold fitness tracker. While this may be the case,
Fitbit can improve its standing with a different approach to marketing its devices. Fitbit should
not look to high end fashion companies to do collaborations with but should instead focus its
attention on aligning its collaborations with the core of the brand overall—fitness. In conclusion,
future marketing efforts by Fitbit should be an emphasis on integration of a wide range of health
metrics and acquisition of more health care provider usage, targeting the fifty-five and older
community, beginning a partnership with a reputable sports entity and or athlete, and increasing
social media presence by taking advantage of the multitude of platforms available and
collaborations with influencers with a large social media following.

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