1. State of the Recruiting Market Prepared for: USN, “Calendar for America” Planning Meeting Tuesday, December 9, 2014 For Official Use Only

2. 2 Bottom Line Up Front  Recruiting has become more challenging due to an improving economy and the increased difficulty in converting youth who are not currently interested in joining the Military.  A majority of youth are at least considering military service, but are doing so with an incomplete and inaccurate base of knowledge.  The lack of knowledge most youth have in regards to the Military contributes to a growing unfamiliarity with the benefits of service.  “Brand Ambassadors” can tell rich and personalized stories that both youth and influencers need to understand in order to demystify quality of life misperceptions of the Military. For Official Use Only

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4. Recruiting and the Economy Active Duty Accession Quality and Difficulty in Finding a Job % of New Recruits Indicating Economy Made Them More Likely to Enlist DoD Active Duty New Recruits Source: Youth Poll; Accession Policy (as FY2014 end); New Recruit Survey Note: Youth ages 16–21. 4 Navy: 88.6% For Official Use Only

5. YATS- Q503: “Now, I'd like to ask you how likely it is that you will be serving in the Military in the next few years?” Youth Polls- FPP9: “In the next few years, how likely is it that you will be serving in the Military?” 5 Source: DoD Youth Polls Military Propensity by Academic Quality How likely is it that you will be serving in the Military in the next few years? % Definitely/Probably Note: Youth ages 16–21. Estimates are charted to precise values. Labels are rounded to the nearest whole percent. High Academic Quality Propensed for Navy: 5% Navy Propensity: 8% Low Academic Quality Propensed for Navy: 11% For Official Use Only

6. 6 Question: How likely is it that joining the U.S. Military would allow you to… Respondents were given a 7-point scale where 1 = Extremely Unlikely and 7 = Extremely Likely. Perceptions of Military Benefits Have Declined Source: Youth Poll  Youth have become more negative in their perceptions of the Military. Specifically, youth perceptions that the Military can provide them with the lifestyle they want and prepare them for a future career have significantly worsened over the past decade.  The weak economy has been mitigating the impact of these declining perceptions on recruiting. Responding 5, 6, 7 “Extremely likely” % of Youth Indicating that Joining the Military would Allow them to… (Youth Ages 16 to 21) Have an attractive lifestyle Prepare for a future career* *“Prepare for a future career” began tracking in Dec 07. Earn money for college For Official Use Only

7. 7 Elevating Perceptions For Official Use Only

8. Questions: KW4_Q How knowledgeable are you about serving on Active Duty in the U.S. Military? FPP15_Q Before taking this survey, how much consideration had you given to the possibility of joining the Military? Considered, But With Low Knowledge 8 Note: Youth ages 16–21. How knowledgeable are you about serving on Active Duty in the U.S. Military? “What does being a military officer entail? Is that an office job?” “Pets aren’t allowed on a base, right? Are you allowed to have a dog [in the Military]?” “Do chaplains have to carry pistols? Do they just carry the Bible instead?” In regard to becoming an officer: “I don’t know if you apply for it…or if you’re doing an awesome job [and they] make you an officer.” “Is there a penalty for getting pregnant?” “[Recruiters] are motivated by money. They get a finder’s fee for each one they recruit.” Source: DoD Youth Poll (Spring 2014), In-Depth Focus Groups 8 54% Of youth have considered joining the Military at some time or another. For Official Use Only

9. Estimating the Size of the Youth Market Reports getting A’s and B’s, estimated 50% or higher on AFQT Youth Poll eligibility estimate*  Approximately 2% of the youth market is of high-academic quality, eligible and propensed for military service. Note: Youth ages 17–21. Estimates are the average of the 2013 Youth Polls and are rounded to the nearest 5,000 th. Source: DoD Youth Poll (Spring 2013, Summer 2013, Fall 2013) 9 *Although Youth Poll data used to calculate presented population estimates, QMA is the official DoD metric for eligibility. Questions: FPP9 “In the next few years, how likely is it that you will be serving in the Military?” EDU5 “What grades do you or did you usually get in high school? (MARK ONLY ONE)” For Official Use Only

10. Market Overview: Fence Sitters Fence-Sitters Education Oriented What is the highest level of education you would eventually like to complete? High Academic Quality: % Reporting Mostly A’s/Mostly A’s and B’s in High School Area of opportunity: Most fence sitters (72%) have considered military service but are currently leaning away from military service as an option. Youth Propensity Military Associations % Reporting the Following Outcomes as Likely in the Military (Fall 2013) 10 Note: Youth ages 16–21. Source: DoD Youth Poll (Spring 2014) For Official Use Only

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12. What kind of life will a successful Marine have? What is Our Clear Value Proposition? 12 College Graduate For Official Use Only

13. Desired Path to a Successful Career for Most 13 “What will I need to do to get there?” Active Evaluation “Who do I want to become?” Career Selection Professionally & Personally Fulfilling Lifestyle Future Me  High School  Career  College Me Today For Official Use Only

14. 14 Colleges as a Service-Provider Earning a college education will provide the personal growth for a career that will lead to a more successful, satisfying life. Value Proposition Professionally & Personally Fulfilling Lifestyle Future Me  High School  Career  College Me Today Education Personal Growth Aspirational For Official Use Only

15. 15 The Market’s View of Serving in the Navy Professionally & Personally Fulfilling Lifestyle Future Me  High School  Career  College  Navy service Me Today Who will I become? What will I do every day? Navy Success Tangible Incentives Non-Unique Propositions Altruism ? For much of the market, the answer is “it doesn’t.” They’ll seek other alternatives leaving the Navy as an option of “last resort.” ? ? For Official Use Only

16. The Navy is Inherently about Personal Growth 16 Personal Growth Merit-Based Promotion Core Values International Experiences Personal Development Physical Fitness Professional Development College Money Help Others Serve Country Pride / Honor To Lead Part- Time Camaraderie Management Experience Continuing Education Pay / Salary Work Skills Diverse Teams Career Skills For Official Use Only

17. Serving in the Navy Provides Many Opportunities 17 Personal Growth Aspirational Professionally & Personally Fulfilling Lifestyle Future Me  High School  Career  College  Navy service Me Today Navy Career College Civilian Career Navy For Official Use Only

18. 18 The Navy Value Proposition Serving in the Navy will provide many opportunities for a successful, satisfying life. Value Proposition Navy Personal Growth Success KnowledgeableBelievableCompelling Hurdles to over come to get there… For Official Use Only

19. Challenge: How can the Navy’s outreach help to shed light on the “black box” of service in the Navy? 19 For Official Use Only

20. Importance of Recruiters How important was each of the following on your decision to enlist in the Navy? (% Important/Very Important, Navy New Recruits) Recommended Sources of Information on the Military Youth ages 16-24 Recruiters remain the centerpiece of the decision journey, and our most important prospecting tool. 20 Source: Military Ad Tracking Study (Oct–Dec 2013), New Recruit Survey Fall 2012 Questions: SOCIAL_G If someone close to you wanted to join the Military and was looking for information about ________, where would you recommend he/she look for information? Q41 How important was each of the following on your decision to enlist in the Navy? Official Website Military Recruiter Service Member Veteran Facebook/ Social Media For Official Use Only

21. 58%: Youth who report being connected with a Military member through social media. (2) 66%: Youth who report knowing someone currently serving (1) 57%: Youth who report knowing a friend who has served (1) Brand Ambassadors 21 Note: Youth ages 16–24 Sources: (1) DoD Youth Poll (Spring 2014) (2) Military Ad Tracking Study (Oct–Dec 2013) Quotes are from the New Recruit Study Fall 2012 "I wanted to join because my mentor is a Navy veteran and my friend joined the Marines.” “My father was Navy and he was a huge positive influence in my life and he was a leader and a mentor to others. I want to follow in his footsteps.” “So a current friend of mine started preparing for the Navy and I learned more about the Military through her.” “My brother served in the Navy and motivated me to follow his footsteps.” Questions: MILMEMB2_Q Do you know someone who is currently serving in the U.S. Military? DM21 Have any of the following people ever served in the U.S. Military? SOCIAL_H Are you connected on social media with someone who has served or is currently serving in the Military? “Seeing how my uncle changed in his life in the Navy [prompted me to join].” For Official Use Only

22. 22 1. How can the Navy provide professional fulfillment?2. How can the Navy provide personal fulfillment? 3. What makes the Navy better than other options available to me? Three questions that can be answered through outreach: For Official Use Only

23. What kind of life will a successful Marine have? What is Our Clear Value Proposition? 23 Sailor College Graduate For Official Use Only

24.  What is DMREN? DMREN is an online repository for market research information amassed by JAMRS. It is also a vehicle for communicating with stakeholders about the JAMRS programs.  Who uses DMREN? Advertising and market research staff with varying levels of training and expertise DoD civilians, military personnel (Active, Reserves, Guard) and approved Contractors  How can I create an account? Visit dmren.org Click ‘Register for an account’ Enter work email address and information and follow steps to create an account Accounts are approved within two business days  Questions? Email admin@dmren.org for questions related to DMREN.admin@dmren.org If you have a specific research question, email jeremy.t.hall6.civ@mail.miljeremy.t.hall6.civ@mail.mil DMREN Information and Registration 24 Register for an account For Official Use Only