1. Project Team Arik Ohana Ashley Reyes Hunyong MinYoung Math 110 Final Report – Spring 2012 Survey and Analysis for Fitness Club 1 1© 2012

2. 2 Topics Identify a business or social issue to which surveying will get to the mind of the consumer Addressable Minds… what is it, and how it works Review the study process and the results and conclusions © 2012

3. 3 Business Issue Physical fitness and overall health has become an increased priority for many people. However, there hasn’t been a gym to offer its members all of the qualities needed for a completely healthy and fit lifestyle. Fitness centers need to know what are essential necessities in promoting a completely healthy, fit lifestyle. © 2012

4. About Addressable Minds Addressable Minds is a scientific, actionable form of “predictive consumer intelligence” for business and social issues accurately defining consumer attitudes and preferences both stated and unstated. It has been described by Malcolm Gladwell and others as discovering the “DNA of the Consumers Mind”. This patented science created by Dr. Howard Moskowitz, author of “Selling Blue Elephants” (Wharton Press) and the Wharton Business School has achieved critical acclaim and financial success across: – product design and development, – consumer messaging, – more effective consumer engagement physically and digitally. 4© 2012

5. Dr. Howard Moskowitz. Addressable Minds Inventor, honored by the scientific community,... Is the Chairman of iNovum, a graduate of Queens College and holds a Ph.D. in Experimental Psychology from Harvard University. Won two of the most prestigious awards in market research 2005 Charles Coolidge Parlin Marketing Research Award The “Nobel Prize” of Market Research, received only by the pioneers of market research. Recipients include Arthur Nielsen, George Gallup, Michael Porter, David Ogilvy and Philip Kotler. 2010 Walston Chubb Award for Innovation across all sciences, Sigma Xi, The Scientific Research Society, international Awarded for Mind Genomics: The science underlying the technology used in this Math 110 course. 5© 2012

6. Addressable Minds Psychographic Segmentation - Social Class - Lifestyle Type - Personality Type Behavioral Segmentation - Product Usage - Brand Loyalty - Attitudinal Demographic Segmentation - Age - Gender - Income Addressable Minds Cuts across traditional segmentation & detects hidden preferences 6 6© 2012

7. Create Addressable Minds messaging for Fitness Clubs 7 DEVELOP SURVEY QUESTIONS ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY AREA OF STUDY MARKET SEGMENTATIONSEGMENTATION WIZARD MARKETING PHRASES 10 – 15 minutes 7© 2012

8. Addressable Minds’ underlying science uses standard Science and Mathematics 8 DEVELOP SURVEY QUESTIONS ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY AREA OF STUDY Conjoint analysis Ordinary Least Squares Regression Discriminant Function Analysis Experimental Design – Stimulus/Response 8© 2012

9. 9 A Survey Was Performed by the Team in the area of Fitness Clubs To serve as a learning vehicle for the application Addressable Minds to a practical business or social issue Sufficient to show the power of the method 9© 2012

10. SURVEY OVERVIEW  An Addressable Minds Survey is a survey of key ideas for (Fitness Club) college advertising to prospects  Survey conducted on November 7, 2012 : ◦ Population Ages 18 and over of Males/Females across the US  The team created key marketing and advertising messaging with the intent to entice the survey taker to attend their fitness club 10 © 2012

11. SURVEY OVERVIEW 50 Individuals responded Assess two major aspects of messages – Does it convince a prospect to attend? – How does it make the prospect feel? Data reveals the mind-sets of respondents across the United States, as well as ‘what works, what doesn’t’ 11 © 2012

12. 12 The Survey begins with an orientation screen 12© 2012

13. 13 Each respondent evaluates 48 unique combinations of elements First on overall interest 13© 2012

14. 14 Then selects a single emotion 14© 2012

15. 15 What convinces? What drives feelings? © 2012

16. 16 Total Panel – Interested in a multi-faceted gym that offers a wide range of services to it’s members. 16© 2012

17. 17 The Total Panel’s Interest is Different From That in Each of Three Identified Segments © 2012

18. There are three unique segments Different Students – Different Approach Messaging for one isn’t necessary going to appeal to the other…and could actually hurt 18 Making exercise a sport 12% Making exercise fun and social 22% Making exercise a pampered, healthy fed utopia 66% 18© 2012

19. 19 Making Exercise A Sport(Seg1) – Interested in exercising through sport and recreational activity © 2012

20. 20 Making exercise a sport (Segment 1) Turn-ons Interested in an Olympic size pool Interested in a Boxing ring with classes Interested in full length basketball courts Turn-offs Not concerned with achieving ideal weight Don’t care to join tournaments

21. 21 Making exercise a pampered, healthy fed utopia (Seg2) – Interested in hygienic needs. Not so interested in recreation. © 2012

22. 22 Making exercise a pampered, healthy fed utopia (Segment 2) Turn-ons Want child care Interested in spa Interested in hygienic needs Turn-offs Not concerned with competitions Uninterested in boxing ring

23. 23 Making exercise fun and social (Seg3) – Interested in exercising with people and social aspects. © 2012

24. 24 Making exercise fun and social (Segment 3) Turn-ons Achieving ideal weight Free shuttle bus transportation Classes for gymnastics Turn-offs Not interested in boxing ring Not concerned with basketball courts

25. The “Segmentation Wizard” -- a 30 second shortcut survey, extracted from the 15 minute survey, identifies the segment membership of an individual 25 DEVELOP SURVEY QUESTIONS Potential ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY AREA OF STUDY SEGMENTATION WIZARD 10 – 15 minutes Segmentation Wizard consists of 3 or 4 elements identified in the in-depth 10 – 15 minute survey 25© 2012

26. 26 The Fitness Club Segmentation Wizard– Online example The Segmentation Wizard is a short survey with the questions derived from the full survey to identify segment membership www.mjiweb.com/mjitt/QC_Fall_2012_Fitness/QC_Fall_2012_Fitness.htm © 2012

27. 27 © 2012 The Segmentation Wizard Example

30. 30 Conclusions/Recommendations Three Segments discovered by Addressable Minds point to the need for 3 individual messaging groups You can improve messaging...but you have to – Know the segmentation – Give the right message to the right segment © 2012

31. 31 Recommendations Addressable Minds was able to help identify the immense importance the therapeutic affect can provide to it’s members in a fitness center. Mostly overlooked, due to cardio and weight lifting but equally important to fitness and health is the state of the mind and spirit. The high response rate for the “Spa” and “Organic Food Court” elements demonstrate members are seeking more than just a weight room. Furthermore “Child Care” allows the member to escape some responsibilities for a time to truly focus on strengthening the spirit and mind. Eating the right food along with properly relaxing the mind and body allow members to perform better in the gym thus maximizing the results. Providing these added qualities are crucial to health inside and out but also allow members to get more out of it than a traditional fitness center.

32. © 201232 Recommendations Addressable Minds also illustrated the benefits of having variety with regards to what a fitness center has to offer. No longer are traditional cardio and weight lifting exercises sufficient. Members want new ways to work out and exercise and sports, provide a perfect alternative. Boxing, Basketball, Swimming and Gymnastics are a few alternative methods of exercising that each focuses on a different aspect of physical fitness. They also allow for a new level of fun. It doesn’t even need to be competitive because it’s primary purpose is to make exercise more enjoyable. Instead of having to work out to stay fit, members play the sports and a by product of that is staying fit. Whether sports or working out is more enjoyable the fact that there is a variety simply provides the member with more ways to become or stay in shape, healthy and physically fit.