Analysis Of Garmin's First True Smartwatch, The Garmin Vivoactive

Price is defined as “The value that will purchase a finite quality, weight or other measure of a good or service” (Business Dictonary). When growing up your parents always said, this is too much money so you wouldn’t be able to get that candy bar or video game because the price of the product was too high. Whether this be because of high price the person that made this product had to out some research into the idea of how much they should sell this product for, how much profitability am I making at the end of the day after all deductions are taken out. The price is what set’s your product apart but a high price mean’s that you need to market the product very well to get people to buy it and build a quality product to get raving reviews. At Starbuck’s they always advertise giving you incentives and low prices. Summer time they do Ice Blended hour, which from 3 pm to 5 pm they offer their ice blended

Potential or existing customers can consider product prices high, low or fair, thereby regulating the active demand for the products of the company.

Competition within the industry as well as market supply and demand conditions set the price of products sold.

This research proposal explores scholarly journals, internet articles, and my personal thoughts and ideas on the smartwatch, fitness band, and wearable market segment. I am proposing to obtain research on whether or not the Microsoft Band among other smart wrist wearables are currently and, if so, will continue to be desirable technological advancements in the market.

Pricing your products is actually one of the hardest decisions for a new business owner to make. Make the prices too high and no one will want to buy. Make the prices too low and you can't make a profit. Not knowing how to price products properly is a common challenge for new business owner. And it is one that can make or break a company.

Product line options. Fitbit products are continuously evolving as they are finding new ways to offer what consumers desire from an individual product. By continuously adding new products with additional features, Fitbit is expanding their market demand from those who desire this product to track activity during specified periods, such as the gym, to a product that is used daily due to its fashionable look and appeal. This new effort has attracted consumers who prefer a more unique and modern look. Due to new designs, many consumers also feel comfortable using the product at various occasions outside of their physical activity.

Customers should get an Apple Watch because it is more than just a watch on your wrist. When you understand what you can do with the Apple Watch, it becomes a helpful tool throughout your day to be more productive, get into shape, and keep your motivation going. The Apple Watch series one price starts at $269 for the sport edition. The Apple Watch series two is $369 and $399 for the sport version with a thirty-eight millimeter and forty-two millimeter face, respectively. The Nike Plus Apple Watch starts at $369. For those with more money and desire for exclusivity, the Apple Watch Hermes starts at $1,249 for the Ceramic Apple Watch Edition.

Demand-based pricing strategy is important for a company like Fitbit because the fitness tracker market is still a relatively new market and is evolving quickly. Demand-based pricing has several subcategories in order to find the correct value of a product based on customer demand. Two of these subcategories would be beneficial to Fitbit’s marketing plan. The first is psychological pricing (Boundless, 2015). Fitbit could do surveys by explaining the capabilities of the product and then asking the customers what they would pay for the product. The second part of the strategy would be to implement penetration pricing (Boundless, 2015). This would initially allow Fitbit to attract customers to the product be able to receive feedback from the customers as well as analyze the sales of the product. After gaining a customer base and a better value of the asset, Fitbit could move the price point as needed.

a) In the year 2017 Fitbit had two important competitors in the market of wearables. These competitors were Xiaomi and Apple. Fitbit had the biggest market share in the wearable industry since 2014, Xiaomi overtook them in the first quartal of 2017 with a market share of 14.7 % and Apple with a market share of 14.6 % and so had a bigger market share than Fitbit which 12.3 % market share. In the third quartal Fitbit increased its market share again and so achieved a statistical tie with Xiaomi with both 13.7 % market share and even a bigger market share than Apple which had a market share of 10.3 %.1 With the ‘’Xiaomi Mi Band 2” Xiaomi also produces a fitness wearable which is a direct competitor to the wearables of Fitbit. Apples Smartwatch “Apple Watch” has also Fitness

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).

Since the wearable market is not fully matured and new, this is not an end for Fitbit. It should continuously innovate its product features since Apple recent innovation is directly centered on fitness and it is capable enough to challenge Fitbit. Irrespective advanced analytics, will Fitbit be able to provide a full user experience is still a

Moreover, in practice products tend to go through three phases: growth, maturity and decline. At each phase, a different pricing strategy can be used to determine price. In the growth phase of a product, new firms’ are likely to use a price penetration strategy (Redmond, 1989). This is where prices are deliberately set low to gain foothold in the market. Therefore firms’ can attract customers to the product and over time as the firm becomes more established, it is able to raise prices. However incumbent firms’ can also reduce prices as a way to maintain their own market share in competitive markets.

Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).

Competition within the industry as well as market supply and demand conditions set the price of products sold.

Competition-based pricing refers to a method in which an organization considers the prices of competitors’ products to set the prices of its own products. The organization may charge higher, lower, or equal prices as compared to the prices of its competitors.