Noor Ul Ann Zaid

 Marketing in a Digitally Connected World Business Report: ‘What makes WHOOP Different’ Executive Summary In this report, we assess WHOOP’s marketing approach to target and build the company’s Gen Z consumer base. It focuses on analysing the market trends, market segmentation, and market positioning while providing recommendations with the help of 7 P’s of the marketing mix. The strategies are more tailor-made, digital targeted and experiential to best appeal to Gen Z consumers. Table of Contents Executive Summary2 1.Introduction3 2.Market Trends Analysis4 3.Segmentation, Targeting and Positioning (STP)5 4.Customer Persona5 5.Recommendations6 7.Customer Journey Mapping9 8.Customer Journey Map – Digital Journey9 9.Conclusion10 1. Introduction This report explores how WHOOP can intentionally market its specific market segment in a proper and efficient way. To identify the segment characteristics, the effectiveness of present-day marketing strategies, as well as to suggest improvements for the WHOOP company’s better positioning within the specified segment, the analysis will be based on the company’s innovative fitness wearable that has a potential to create a high market impact. 2. Market Trends Analysis The wearables specifically in the health and fitness segment has a high growth in recent years because more customers are becoming conscious about their health and fitness (Pizzo, Baker, Jones, and Funk, 2020). In this regard, fitness wearable like WHOOP needs to be embraced by anyone who wants to improve his or her health since they assist individuals in tracking apex health pointers for instance, heart rate, sleep, and activity. This trend is further strengthened, by the current user awareness towards preventive healthcare, where consumers are looking for devices that can give them a real time feedback on the state of their health (Consolvo et al., 2014). It’s the integration of the new fancy technologies like Artificial Intelligence (AI) and Machine Learning (ML) into the wearable devices that can be seen as one of the key trends that define this market (Banerjee, Chakraborty and Rathi, 2020). These technologies improve on the capabilities of fitness trackers so that they provide better information and advice. For instance, the WHOOP technology uses Artificial Intelligence to provide individualized feedback and also assist people to improve their performance besides guiding them on how to rest more effectively (Topol, 2019). This should continue in the future, where the increasing levels of personalization by using AI will be a key factor in the market. Another evident tendency is the blurring of the fitness wearables with the other life-tracking devices. Customers are becoming demanding in a way that they want gadgets in their wearables to not just monitor their health but also perform the tasks they do on other devices. This has resulted in creation of wearable devices with more than one use as seen from the Smartphones which are integrated into the wearables, payment without touch and stress relieving abilities. Due to this, WHOOP fits perfectly within this trend, as consumers are more accordant to a wellness company taking into account the recovery and general well-being of the individuals (Capodilupo and Miller, 2021). Lastly, the effect of the COVID-19 pandemic has made consumers to embrace the use of wearables in remote monitoring of their health (Channa and Popescu, 2020). This shift has broadened the population that is interested in fitness wearables as people aim to healthier lives even if it has to be in a world that is increasingly digitally connected but physically isolated. As a result, the market proposed to WHOOP is broad and the opportunity to meet new trends entails a great potential for the company’s development. 3. Segmentation, Targeting and Positioning (STP) As a specialized organization, WHOOP follow an intensive Segmentation, Targeting, and Positioning (STP) strategy to appeal to a specified customer pool among wearables market. The process of segmentation involves the classification of relevant market segments by means of demographic, psycho-graphic and behavioural characteristics (Larsen, 2010). The primary target market for WHOOP is persons interested in their health, athletes, and anyone who likes to be active and wants detailed tracking of their performance and recovery (Harms, 2018). These types of individuals usually give priority to the scientific methods in enhancing their health and are always ready to spend big cash for quality products that will enhance their performance. Targeting selects appeal on the basis of the segment that has a match with WHOOP’s competence and potential market. Based on the market segmentation strategy, it is evident that the core consumer for WHOOP are the athletes or anybody interested in the high performance in a particular sport, sports clubs or any organization involved in any sport discipline together with any citizen who feels that he or she needs to maintain or improve his or her general health and wellbeing through a-doctor recommended health fitness tracking device (Lundstrom, 2020). They consider the time very important in their activities and they may include competitive athletes, fitness trainers, wellness workers among others. It also targets those conscious with their health seeking universal precautions such as sleep tracking, HRV, and recovery rates in athletes and regular fitness enthusiasts. Place plays an essential role in helping in differentiating WHOOP in the saturated wearables industry. As for WHOOP, the product is all but a high-quality data-driven fitness tracker aimed at serious athletes and health enthusiasts. While others centre their devices on activity tracking, WHOOP focuses on recovery and performance enhancement and provides the users with a paid monthly service that gives suggestions regarding one’s health (Qermane and Mancha, 2021.). That distinctive positioning speaks to the method by which WHOOP enables clients to make choices about their health as opposed to other wearables that simply track action. By keeping its lens tightly aimed at the concepts of recovery and performance, WHOOP cements its position in addressing the high-end and mainly performance-related niche of the fitness wearables market (Lundstrom, 2020). 4. Customer Persona Zoe Martinez; currently 23 years old, digital marketing specialist from Dubai, UAE. Zoe is an overweight, young woman with interest in health and fitness and prefers customized, environment friendly gadgets. Being a busy woman, she is looking for things that will complement her exercise habits and provide information on performance. Moreover, she often uses digital devices and also pays attention to influencers’ recommendations, which makes Zoe a perfect target of the WHOOP’s marketing strategies directed on Gen Z consumers. Figure 1: Customer Persona 5. Recommendations The marketing strategies that have been proposed for WHOOP to market and capture the Gen Z customers as presented in the table below each addresses the 7 Ps of the marketing mix as follows. Product: Achieving design personalization for user defined styles and eco-friendly materials of WHOOP brands reflect Gen Z’s inclination towards the same. While it increases product desirability it also makes consumers develop higher level of identification with the brand (Luchs, Swan, and Creusen, 2016). With new and customized designs and focus on sustainability, WHOOP can avoid being caught in an overly crowded market. Price: The purpose of this strategy is to enable customers to select the plan of their choice regarding price range, while still getting to enjoy some key functionalities, which will in turn lower the barriers to purchase hence enhancing market coverage (Ensor and Cooper, 2004.). Place: It is in tune with Gen Z’s buying behaviour that favours anything to do with the internet and especially the mobile interface for the buying experience. This helps in the continuity of a smooth buying process, which is vital if the firm is to maintain the technologically aware consumers (Narayandas and Rangan, 2004). Promotion: Influencer marketing and targeting social media like TikTok and Instagram actually targets Gen Z and they rely more on word of Mouth rather than the commercial ads (Liu, 2020). Hence, there is the endorsement from influencers who successfully target this type of audience. People: Developing customer service to use social media in an informal manner, where the customer service people will have an opportunity to interact with customers in the same way that Gen Z expects is effective because this helps increase customer satisfaction hence enhancing loyalty (Priporas, Stylos and Fotiadis, 2017). Process: Reducing the complexities of the acquisition process and the initial setup responds to Gen Z’s concern with efficiency as well as with overall satisfaction (Roblek, Mesko, Dimovski and Peterlin, 2019.). Physical Evidence: Sustainability with references to QR codes: applying the ideas of minimalistic and environmental friendly packaging creates a positive stereotype about creating a brand. These recommendations, based on the conceptual model of 7 Ps, make certain that WHOOP has correct kind of advertising techniques which is appropriate to fulfill the new generation of customers, specifically Gen Z. Marketing Mix Recommendations Justification - how does this meet Gen Z customer needs? Academic marketing theory to support the recommendation. Product Design fashionable and appealing WHOOP bands that can have individual style and colour yet be environmentally friendly material Such self-fulfilment needs are highly admired by Gen Z; if a firm provides an assortment of custom-made products and products with environmental benefits it will suit the needs of Gen Z. Product Differentiation Theory to the effect that product differentiation and sustainability help in increasing brand equity and consumers recurrent patronage (). Price Fix a flexible subscription model that will allow users to choose between a basic, standard, and premium package. People from Gen Z like flexibility and pricing that would not burden the pocket but still include the basic needs; tiered pricing met those basic needs. Value Based Pricing Theory embraced the value-based pricing theory based on its assertion that pricing that provide perceived value is very important for reaching out for the cost-conscious segment (). Place Increase engagement and visibility with customers with online sales and marketing through mobile-based tools. Gen Z primarily shops online; therefore, it is necessary to optimize for mobile, have a direct sales channel to make the process easier for the consumer. Omnichannel Marketing Theory - According to Verhoef et al. (), the type of consumer which is the new type of consumer that is more tech-savvy requires that a firm integrates as many digital channels as possible into its marketing. Promotion Engage the use of Influencer marketing on platforms such as TikTok and Instagram. Besides, 48% of children and teenagers rely on peers and word of mouth and are more prone to respond to influencers as an advert tool can influence this group. Social Influence Theory – Solomon et al. () opine that the perceptions arising from social influence and influencer immensely influence the purchase decision in young consumers. Process Make it easier to purchase and onboard your desired account with easy sign-ups and easy access to analytics. Gen Z wants quick and easy things; simplicity increases engagement and im-proves user experience. Bitner et al () note that the focus on up stream processes is critical for improving downstream outcomes (felt by customer). People Educate customer care representatives on how to interact with Gen Z customers through social media in an everyday language. Residents of Generation Z for actuality, amiable conversation; the cultivation in the staff the ability to converse sincerely and naturally promotes their loyalty and affiliation to the brand. Relationship marketing theory of Grönroos () posits that quality and multi-dimensional communicator contact is the primary method to customer relational communication. Physical Evidence The physical evidence should, therefore, be minimalistic and use environmentally friendly packaging with QR codes to various manuals Gen Z wants a brand that supports their environmental consciousness and they are tech-savvy; packaging that is environmentally friendly with technology beats their preference. Green Marketing Theory: The marketing of products in today’s world with consideration for the environment which has been elaborated () 7. Customer Journey Mapping Customer journey mapping then becomes crucial in WHOOP’s marketing strategy for Gen Z as the target audience is a savvy one in terms of technology and everything related to it. Customer journey mapping can be defined in simple terms, as the process of mapping out, the customer – brand relationship top to bottom including the awareness stage and post purchase consumer engagement (Roblek, Mesko, Dimovski and Peterlin, 2019). The majority of its approaches involve identifying the microscope target specifications of Gen Z including the ways that WHOOP interacts with them. Benefits: For WHOOP, customer journey mapping helps to understand at what stage, the Gen Z customers can be more engaged or might be facing problems (Priporas, Stylos and Fotiadis, 2017). In these areas, WHOOP has the potential to improve different aspects of delivering services to customers which will just leave the customers more satisfied and loyal. The mapping process also helps in abating market communication with Gen Z and their digital-first expectations so that WHOOP communicates and delivers its products effectively to this audiences (Bazzini, 2023). Map Overview: The customer journey map of WHOOP would consist of mainly awareness, consideration, purchase, and post-purchase that is, influencer marketing, online reviews, social media, streamlined purchase process, customer-centered products and services with focus on insights and engagement with user community. This will ensure WHOOP meets the demand of this generation’s requirement of the best personalized experiences. 8. Customer Journey Map – Digital Journey Stage Touchpoints Customer Actions Feelings Opportunities for Whoop Awareness Social Media Sees tweets from fitness influencers and ads Interested in new technologies in the field of fitness Interested Use endorsements by influencers to demonstrate the features of WHOOP. Consideration Online Customer Review, Research WHOOP online sample some of the reviews and make comparisons Would like clear product information does not trust Claims This needs to come with engaging and clear information; social proof that showcases the value of WHOOP. Purchase Visit the whoop e-commerce site Elect a subscription plan and complete the purchase Wishing for a smooth and easy purchase process Delivering a flawless, mobile-friendly check out process. Post Purchase WHOOP App, Customer Service Uses WHOOP for tracking, Engages with customer support Values individualized data, reaches out only when necessary Emerges & support customers at their best; produces and dispenses interesting and useful material in the app. Loyalty Email updates, community engagement Receives update and uses forum Appreciates being in a brand community Ensure the brand has a strong community of users and offer updates and privileges. 9. Conclusion In conclusion, the conclusion can be made that WHOO’s plan in earning a Gen Z client audience depends upon the company’s perception of the suppositional target market. It emphasizes the need to match the 7 Ps of the marketing mix: Product, Price, Place, Promotion, People, Process and Physical Evidence with the Gen Z needs, thus the penetration of Gen Z values of customization and sustainability into the WHOOP is possible through creating customizable and environmental friendly product. Their need for a flexible price structure is achieved, together with improving that of digital platforms and direct client sales. Thus, promoting through influencer marketing maximises the previously-discussed loyalty of Gen Z to peers; providing the customer service and making the purchasing process as personal and efficient as possible satisfies their expectations of authenticity, as well as effectiveness. Sustainability regarding using eco-friendly packaging and technology affinity is also in synergy with their choice. All these strategic recommendations are aimed at positioning WHOOP as a superior fitness wearable in the superior end luxury market proposition. In this way, WHOOP can shift its attention to the tailored strategies and increase the appeal to the target audience, namely the Gen Z clients, thus, making them loyal and constantly returning to the subscription. References Banerjee, A., Chakraborty, C. and Rathi Sr, M., 2020. Medical imaging, artificial intelligence, internet of things, wearable devices in terahertz healthcare technologies. In Terahertz biomedical and healthcare technologies (pp. 145-165). Elsevier. Bazzini, F., 2023. A Marketing Plan for an Alternative Method of Workplace Safety in the US Construction, Transportation, and Mining Industries Based on Real-time Impairment Detection (Doctoral dissertation, WORCESTER POLYTECHNIC INSTITUTE). 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