Polar Electro sees it mission to be able to provide people with the best solution to accomplish their personal well-being, sports, and performance goals. The business exists to boost people's quality of life by creating innovative, high-quality, and user friendly products. The Polar brand's essence is captured in the statement that "Polar is the leading brand and true partner in improving human well-being and health though it's under-standing of personal physiology and environment. " Physiology identifies the monitoring of the heart, and environment identifies the measurement of altitude, direction, speed, distance, and temperature. (Polar Electro Main Website)
CURRENT MARKETING SITUATION
Polar Electro, Inc. develops heartrate monitoring and fitness assessment answers to enable individuals to improve their fitness level and sports performance. It includes Polar Equine heart rate monitors that measure horse's exertion levels during exercise, and monitor resting and recovery heart rates as well. They offer accessories, training software for heartrate monitor users, and training computers for physical education solutions to students and teachers. The company offers Polar contact heartrate systems and Polar wireless heartrate systems for original equipment manufacturers. Its heartrate monitoring and analyzing technology is employed by researchers in the fields of sports, exercise, and health; and then for the activity measurement of walking, weight loss, fitness, weight training, running, cycling, and multisport activities. The business serves fitness facilities, athletic teams, corporate wellness facilities, health insurance providers, and physical education programs about the world. Polar Electro, Inc. markets its products through retail stores. The company is based in Lake Success, New York. Polar Electro, Inc. operates as a subsidiary of Polar Electro Fin. (Company Overview Polar Electro, Inc)
Market Description
The market can be split into two types of fitness monitors: Heart Rate Monitors and Speed and Distance Monitors.
Heart Rate Monitors
The heartrate monitor (HRMs) market is very diverse. For many that you do to keep the body in shape you should consider tracking how your heart performs and using some type of heart rate monitor is a necessary and useful tool. Whether you're a hiker, cyclist, runner, tri athlete, cross fitter, climber or back country skier, there may be an ideal fitness monitor to perform your targets. HRMs help you stay within your target heartrate zone and help you determine the potency of working out conducted. HRMs are wrist mounted information stations offering data inside your eyesight to help you towards your specific goals. They use personal data such as age, gender, weight, and resting heartrate to calculate aerobic heartrate target zones and to help you maintain your optimal training level during exercise. In addition they provide immediate feedback, letting you adjust your training based on your performance. Lastly, most HRMs provide sports watch features to add a stopwatch, countdown timer, water resistance, and also have a clock and calendar.
There are two types of HRMs. One type carries a chest strap and the other is strapless. Strapless HRMs offer touch pads on the monitors to measure heart rate. Users must pause during activity in order to get a proper measurement. They can be estimated to be 95% accurate using some form of finger sensor. Coded chest strap monitors require a separate wireless chest strap to monitor the heart. The chest straps gauge your hearts impulses continuously, providing an extremely accurate reading. The Chest strap sends a coded signal to a sports wristwatch computer using ANT+ technology which ensures the data you receive is from your chest strap.
Speed and Distance Monitors
Speed and distance monitors are specialized HRMs that also measure what lengths and exactly how fast you are moving during training. Most models interface with a pc, letting you go online, get directions, log your experience, and keep an eye on your performance. Various technologies are used to calculate your speed and distance that you've traveled. Most units use a satellite-tracking GPS technology, while some use an accelerometer, which tracks user's movement using varying levels of electrical current within the unit sensor. Tracking the electrical current allows the unit to find different degrees of acceleration, speed and distance which might be in the monitor or the foot pod that attaches to your shoe. GPS technology only works in outdoor training, as the accelerometer and the foot pod are best used indoors.
Product Review
Polar Electro's type of fitness monitors are split into three categories: Getting Active, Improving Fitness, and Maximizing Performance offering the next:
Getting Active products are introductory products offering basic features for new enthusiasts. The merchandise lines goal is to show the owner how well they may be doing, and let them give attention to enjoying being active. (Polar Electro Main Website)
The Polar FT1 is one of Polar Electro's entries in the getting active products. It is a reliable heart rate monitor for the price. It displays average and maximum heart rates in addition to manual target zones, and the chest strap is coded to avoid interference from other exercisers. The Polar FT1 is easy and easy to use, and not as bulky as some units. Though it doesn't track calories burned, consumers say the Polar FT1 provides accurate heart-rate readings without breaking the bank. A downfall: the monitor must be sent to a certified service center for a replacement battery at the consumer's expense. The one-button design, that you've to repeatedly push to navigate the menu, can become annoying over time.
Improving Fitness products are products wanted to those consumers that already believe that fitness is an integral part of their life. These products provide features that will aid them in addressing a higher degree of fit. Whatever the target is: to get fitter, to lose excess weight, or for the self satisfaction that originates from getting faster or moving further. The products are designed to match your weekly routine. They also give you a way that you can see your tracked improvement after each session with polarpersonaltrainer. com. (Polar Electro Main Website)
The Polar FT60 is most likely overkill for some exercisers, however they do more than merely track heart rates. It's has a virtual personal trainer that provides personalized information you can connect with your workouts. The included fitness routine creates target heart-rate zones predicated on your current fitness level, and it lets you know when you are training too hard or not hard enough. The Polar FT60 is difficult to set up initially, however the various training features and reliable monitoring make it a good buy. Consumers say you can review your workout data, and a replaceable battery is another plus. However, even though many other Polar monitors add a way to upload your workout data to your personal computer, you'll have to buy an optional Flow Link device (*Est. $55) to get that functionality with the Polar FT60. The backlit display may also be difficult to learn in certain lighting conditions.
Maximizing Performance products are products offered to those consumers that are seriously interested in their performance. Polar provides these consumers with features to push these to the top of their game; these products are targeted for the elite athletes. These products help make sure the consumers fulfill their potential in every session, challenging the consumer to attain by beating their personal best. (Polar Electro Main Website)
Heart Rate Monitor Features:
Heart Rate Target Zone Settings: Polar HRMs offer the ability to exercise for a sustained period within your target zone. It is strongly recommended that you consult with your physician to determine your optimal training heart rate. Exercising in your target zone maximizes heart conditioning and safety. Polar HRMs keep you in tune via digital display and/or sound alarms if you are above or below your desired zone.
Time in target zone: Tracks how to monitor the effectiveness of your workouts.
Calorie counter: Tracks calories burned during workouts. It is an instrument that pays to to consumers which may have weight loss as an important goal.
Personal computer interface: Some HRMs offer the ability to store training information directly to the computer to download statistics for analysis and storage. Some HRMs offer a wireless interface that supplies the transfer of information through your network.
Fitness tracker: This feature monitors all of your activity through the accelerometer and includes software that permits you to download the data.
Mounting: HRMs can be worn on your wrist or mounted on a bike handlebar.
Speed and Distance Monitor Features:
Target pace and alarm: This feature can help you reach speed and distance goals with a pacing function. Consumers would set an alarm that alerts an individual when his / her pace slows.
Altitude Tracking: Provides an estimate of the peak altitude you have traveled throughout a workout. In addition, it supplies total elevation gain or loss during workout.
Running route/elevation profile: Offers a chart or map showing the ascents and descents of the route traveled during the workout.
Music player: Provides a smart very good music player that allows you to definitely download music offering you individualized soundtracks for your workouts. It understands which songs transform your life speed and increase calories burned. Those tracks are then compiled to form your high-performance playlist. An audio coach informs you of your pace, split times and other performance indicators through the included headphones. You are able to pay attention to your music anytime or tune into a popular local station via the built-in FM tuner.
Competitive Review
Timex
Timex Group designs, manufacturers and markets impressive timepieces and earrings globally. It had been founded in 1854 and has expanded to be Timex Group. For over 150 years, Timex has offered innovative, well designed and reliable timepieces with style among its Fashion, Sports and Outdoor lines, and has sold more than one billion watches. The Timex Group companies market global brands including Timex, Versace, Valentino, Salvatore Ferragamo, Guess, GC, Vincent Berard, Versus, TX, Marc Ecko, Nautica and Opex. Timex has 5000 employees worldwide that are providing watches in more than 100 countries and it includes manufacturing and distribution facilities in 20 countries. Timex manufactures GPS enabled watches, heart rate monitor watches and similar high tech devices. (Case Study on Timex)
Branching out from its original "takes a licking" designs, Timex is strapping on fresh faces so that it can tap new markets worldwide. The nation's greatest watch manufacturer has expanded its lines from simple, low-cost watches to add high-tech tickers with the capacity of paging or downloading computer data. Its sports watches have gone upscale with its Expedition line of watches. Lastly, the Ironman line offers fitness enthusiast many choices and many price points to get started an exercise quest. The company also makes and markets thermostats, pedometers, and weather instruments.
Nike + Product line:
Nike + was a vision almost 30 years in the making. The initial concept was called the Nike Monitor, and it was Nike's first attempt beyond shoes. The monitor would tell runners what lengths and exactly how fast they had run. It was constructed as a brown plastic box, emblazoned with Nike's iconic Swoosh logo. It had been clunky, the size of a thick paperback book, with a waist strap and two ports on the front that look like miniature speakers, lending it the air of an shrunken mid-'80s boom box. (McClusky, 2009)
Fast forward for this, Nike + offers a complete products of Fitness monitors to add The SportWatch GPS, the FuelBand and the SportBand that hook up to your personal computer with the built-in USB or the included USB that automatically sends the info, including start time, duration, and distance, to the Nike+ servers, formatted in a specially structured XML file that may also be read by third-party and open source apps. However, the FuelBand also has Bluetooth pairing to cell phones for use with the Nike+ FuelBand app for iOS 5.
iPhone/iTouch and iPod nano are compatible and used in combination with the Nike + line. The iPhone/iTouch use the iTunes library that can record workouts and the iPod nano needs a additional adaptor sold separately that does the same thru the iTunes library.
Garmin
The No. 1 U. S. navigation device maker has been seeing particularly strong demands because of its fitness products, as athletes and joggers spend more on watches with GPS sensors, golfing accessories with preloaded courses and fitness apps. (Bangalore, 2012)
Garmin Fit can be an app available with your Android phone that turns your phone into a robust training tool. The consumer can easily see their current walking, running or cycling stats at a glance or review them later thanks to automatic uploading to Garmin Connect. It even gives you to select the perfect soundtrack for your workout. (Google Play Apps Store)
Channels and Logistics Review
Polar Electro depends heavily on select sporting good stores to offer Polar Electro HRMs, Speed and Distance Monitors, and Accessories. Polar Electro will also rely on online sales worldwide as the other distribution channel.
STRENGTHS, WEAKNESSES, OPPORTUNITIES, and THREAT ANALYSIS
Polar electro has several strengths that have set them up be successful and some weaknesses that are costing them time as the industry's quality leader. Major opportunities include growing the military/government market and continued education of the consumer market. Threats include limited resources to compete with industry leaders.
Strengths
Polar Electro can rely on the next strengths:
Superior quality: At Polar Electro's core, it is a technology company that conducts research and develops new technology solutions. This background allows Polar Electro to offer well engineered solutions to consumers and businesses concerns.
Superior customer service: After sale service is essential to Polar Electro's success in the fitness business. A lot of the devices are complicated bits of technology, and consumers often need support in installing software updates or establishing data transfer between your devices and the PC. Polar Electro's objective is to provide answers to consumers or retailers questions or concerns within 12 hours.
Centralized research and development: Polar spends 10% of its sales on research and development, which occurs mostly in Oulu, Finland. The business benefits from the supply of high quality engineers from the University of Oulu.
Customer loyalty: Once a consumer purchases polar products they often stay with the polar brand products. When Polar Electro's consumers upgrade to some other HRM or Speed and Distance Monitor those consumers pass the old product to relatives and buddies. Polar counts on its superior customer support to keep customers happy.
Accessories: Polar offers quality accessories that work hand and hand with HRMs and Speed and Distance monitors to add: bike mounts, Flow link Data Transfer Units, and Polar WearLink+ Transmitter Nike+ Strap.
Weaknesses
Discretionary items: HRMs, and Speed and Distance Monitors are not considered essential for survival. As items which are nice to possess, it is hard to justify the purchase of HRMs, and Speed and Distance Monitors during hard monetary times. Consumers spend less on stuff like Polar products in hard economic times.
Centralized research and development: Having most research and development conducted in Oulu, Finland will not allow Polar Electro's local markets to capitalize on opportunities unique compared to that specific market.
Low turnover of products: Polar Electro products are high quality, and rarely replaced. When people that own Polar products purchase services they pass on the old product to relatives and buddies.
Over engineered web site: Polar Electro's PolarPersonalTrainer. com website was made by the engineers in Oulu, Finland. It really is specific to polar products only. If one of Polar Electro's partners' products tries to gain access to this, site they can be denied access.
Opportunities
Target more niches: Polar Electro's success will be judged on what niches it succeeds in establishing. Polar Electro must work out how to expand on its partnership with military because the cultures of most branches in the military are natural partners to Polar Electro.
Growing market: The Fitness market grew 24 % in 2011 and made over 300 million dollars in sales as well. It is predicted for the next 3 years that double digit growth is the norm.
Health trends: As seniors continue to retire and desire to take pleasure from full, healthy, and active lives in retirement, Polar Electro products need to be available. Polar does a congrats in educating all on the advantages of healthy hearts. This effort must continue because Polar products are not marketed on television.
Logical partnerships: Polar Electro should think about partnerships with all brands of shoes a long-term goal. Another partnership that needs to be expanded on is with Apple.
Polar Electro should ensure that the majority of Polar Electro's products work with all major brands of home fitness equipment. This might allow, Polar Electro to follow-up and offer Polar Electro products at health clubs and gyms of Polar Electro's choosing.
Threats
Competition: Nike, Garmin, and Timex start to see the HRM and Speed and Distance Monitor market as market they can dominate. Polar Electro is not big enough to compete with some of them face to face. Polar Electro must continue to do what they do well which is ?. Competitors could make cheaper, simpler devices and capture market share.
Consumer/Social: Products may be too complex for some consumers.
Economic: Personal debts of people coupled with hard times may leave little if any disposable income to get leisure products.
OBJECTIVES and ISSUES
Objectives
Polar Electro needs to adapt its marketing plan regarding the Baby Boomer generation of folks ages 50 to 65. The program must highlight how polar products can assist in maintaining a complete, productive, fit, and enjoyable retirement. A continued investment in educating this target market is required.
Polar Electro must also penetrate the military market further. Introducing speed and distance monitors particularly and HRMs to military personnel would guarantee a lifetime of consumer loyalty. That is a big population whose conditioning is important in their missions and lifestyles. Polar Electro's marketers should think about offering products to active duty military personnel at half price and providing 25% discounts to military personnel's immediate family members. This initial penetration along with Polar Electro's superior after sale customer care would purchase itself in america within three years.
Issues
Polar Electro must defend its brand and image from the patent dispute filed in-may of 2012 against Polar Electro, Strava, Garmin, FitnessKeepers and MapMyFitness. Icon Health & Fitness took legal action against the most notable five developers of mobile and online-fitness related applications, claiming the procedure of uploading and storing exercise data infringes on two of its patents. (Formosa, 2012)
Marketing Strategy
Polar Electro USA's online marketing strategy involves penetrating the discovered niches in more depth. Positioning will stay providing consumers healthy, quality products that help them maintain productive lives. The principal target segments are Baby Boomers and Generation Xers. The Baby Boomer generation is made up of soon to retire and retired adults ages 50 to 65 and the Generation Xers are younger adults ages 30 to 46. Polar Electro will target both segments of these athletes who are health conscious and socially responsible consumers. (Gary M. Armstrong, 2013)
Positioning
Polar Electro USA has established the make of Polar Electro's products as the superior quality products offered offering great after sale support. This positioning strategy must be maintained because Polar has successfully connected with these consumers, nor want to reduce them. Populations in Western Europe, Japan and the USA are aging, and the elderly want to remain active and healthy to lead rewarding lives after retirement. They are their main target. Obesity is also a problem in North America and Western Europe. This is their secondary target.
Product Strategy
Polar Electro products will be sold with varying degrees of the features described in the Product Review section. The three categories: Getting Active, Improving Fitness, and Maximizing Performance cover the whole scope of the HRM and Speed and Distance Monitor market.
Pricing
The pricing strategy at Polar Electro is apparently; quality is expensive. For as long Polar Electro's products continue being engineered with consumers at heart they will get through tough economical times.
Distribution Strategy
Based on the info in the Channels and Logistics Review, Polar Electro will hire a selective distribution strategy with well known sporting goods stores, select health clubs, marathons, tour de France, and other biathlons and triathlons.
Marketing Communication Strategy
The marketing communication strategy for Polar Electro allows polar products to contend with Nike, Garmin and Timex. Polar will not support tv set advertisement. Polar Electro's marketing mix contains digital media and print advertisement. (Jackson, 2012)
Marketing Research
To write this paper on my assessment of Polar Electro USA, I conducted a phone interview with the Vice President of Marketing (Jackson, 2012). I conducted an email survey sent out randomly to 25 people I understand. The results of my email survey provided the next results:
Generation Xers and Baby Boomers desire tools that tell them of progress during workouts.
Generation Xers and SENIORS would prefer to record the results if the data storage offered, was easy to investigate and easy to upload.
Generation Xers that have not practiced fitness constantly recently need a short push to begin with again. I perceive this as an chance to recruit new consumers.
Summary/Action Plan
Because Polar Electro is an exclusive company, creating a concise action plan with no real updated information is not realistic. I can say that Polar Electro has lots of the ingredients to grow and become a really global company. It is a technology company that processes research and development and manufacturing centrally, and it has access to a highly skilled workforce. Polar Electro's biggest challenge is choosing which new business area opportunities to pursue with the limited resources available.
POLAR SURVEY
What is your age (You won't be used against you)?
What is your gender? Male or Female
What is your height in feet and inches?
What is your bodyweight in English pounds?
How much stress is in your daily life? LOW or MED or HIGH
How could you rate your diet plan on a wholesome scale? EXCELLENT or GOOD or OK or BAD
Are you a wholesome, fit, adult (In your opinion)? YES or NO
Do you workout more than three times weekly? YES or NO
Do you log your results for some reason? YES or No
Do you execute a Cardio workout more than twice a week? YES or NO
Why would you workout?
If you track the results of your workout, what do you utilize?
ie: Nike + products, Heart rate monitors, iPods and apps, nothing, etc.
What athletic activities will you do?
ie Basketball, running, biking, spin classes, cardio classes, etc.
If you may see results of your workouts what will you want to see?
What are your goals in training?
Do you think tracking and knowing your heart rate during a workout is a good thing? YES or NO
Do you think tracking and knowing your calories burned throughout a workout is an excellent thing? YES or NO
Do you think developing a spot to see and store all of your workout results easily is an excellent thing? YES or NO
Would you use a site that delivers all the info of all your workout results easily? YES or NO
POLAR PHONE SURVEY
I contacted Polar Electro USA headquarters and conducted a phone interview to try and gleam more insight into Polar's current marketing plan regarding heartrate monitors and with an idea to improve on it. As an exclusive, international conglomerate there isn't a lot of public available information about Polar Electro like it's 2011 heartrate monitor sales figures or any previous years. How much profit was earned? What is there marketing strategy for heartrate monitors, and exactly how flexible could it be? I interviewed Janelle Jackson, the VP of Marketing for Polar Electro USA, on Friday the 13th of July. Here is the question and answer session that lasted thirty minutes.
Do you have an in depth written marketing plan? Yes.
Can I have a copy of your marketing plan? No.
Ok, ma'am I already explained who I am and what I am doing is there a reason why we cannot share information? I am unable to provide you any information that is not already publicly known.
What are Polar Electro USA's strengths regarding heartrate monitors? Our customers are loyal. They will buy a Polar heartrate product and since it is high quality keep it forever. If and when our customers purchase other polar heart rate products, they spread the old stuff to relatives and buddies. Our heart rate products spread by person to person.
What are Polar Electro USA's weaknesses regarding heart rate monitors? There isn't a lot of turnover in our heartrate products as mentioned above.
What is your present marketing mix for polar heart rate products? We use digital media and print advertising. We are incredibly active with our social media i. e. facebook, and twitter, but we found that consumer forums and our forums at polarpersonaltrainer. com provide the most value.
How will you measure success or failure or what metrics are used for evaluation? Regarding facebook advertising the threshold for success is between 0. 2 and 0. 4. Using digital media provides instant feedback and analysis. It is harder to measure success or failure with print advertisements.
How is Polar Electro USA's businesses setup? We've these sections that we focus on: Consumer products, Education, Business to Business, Military, Human Resources, Team Sports, Health Clubs, Other Government, and Biathlons/Biathletes. Each has a particular marketing plan.
How do you really tie the plans together to make a Polar Electro USA marketing plan?
What is your primary online marketing strategy?
