strategy portfolio | joseph learyjoe@wolfeyecreative.com

Fitness For 10Formerly “Milpitas Health & Fitness”

Business SituationMilpitas Fitness felt threatened by the success of Planet Fitness and its new business model, and so bought a license to a similarly modeled franchise. During the gym’s transition to the new model, members became frustrated at abrupt changes and canceled their memberships. The owner needed to find out what went wrong, and develop a strategy to increase sign-ups and build momentum for future sales.

Strategic InsightPeople do not join a gym because of the features of a facility or the price point, even if it is the lowest in the area. They join because of word-of-mouth reputation and personal invitation, then continue to visit because of familiarity and social bonds. Milpitas Fitness members are a close-knit community, and the gym is like the “Cheers” bar of health clubs in the area. Any campaign must leverage the deep pre-existing community to succeed.

Recommendations1. Focus on brand-building with advertising and reputation by getting feedback and ideas from the existing community, rather than pushing aggressive front desk sales tactics. 2. Implement an incentive system designed to promote word of mouth recommendations to get people working out with their friends and family. Integrate with social media.3. Update brand image to attract younger audiences to compete with 24-hr Fitness.4. Do not base brand name on price point. (Note: not implemented)

case study: Milpitas Health & Fitness

CREATIVE BRIEFPrint Advertising Campaign: Newspaper / Magazine

BackgroundMilpitas Fitness is changing to “Fitness for $10” and will be re-launching the gym Jan. 4th 2010 with a new low membership price.

Milpitas Fitness has been around for 30 years. It is well known in the community, though membership numbers have stagnated. Meanwhile, it faces heavy competition from 24-hour fitness down the street, and future competition from Planet Fitness – which has a $10 model and well-branded presence. Milpitas Fitness has been the “Cheers Bar” of gyms in the area. (“Where everyone knows your name” feel)

ObjectiveTo boost membership numbers for the beginning of the year. Longer term objective is to position Fitness for $10 as the best value fitness center in the area, and to stay competitive if a Planet Fitness opens nearby.

InsightPeople find it much easier to work out with a friend.

Main Point to CommunicateThere is a high-quality gym in your community that your neighbors go to, and it only costs $10 per month. Bring a workout buddy for free.

(cont.)

case study: Milpitas Health & Fitness

Target AudienceThe local suburban Milpitas community. People may be willing to drive a bit further for the affordable membership, and the gym is easy to access from 680.

- MindsetPeople struggling to maintain their somewhat upscale suburban lifestyle due to limited or unstable income after the financial crisis. They are making new years resolutions, and feel they should to do something different or better with their lives but lack a clear solution or push to make it happen. A day consists of Starbucks, driving the kids to/from school in a Honda, Toyota, or Prius, dropping movies off at Blockbuster, and (hopefully soon) hitting up the Fitness for 10 down the street.

- DemographicsAge 25-60Median income $50,000High Asian population(51.81% Asian, 30.87% White, 16.61% Hispanic, 3.66% African American)TA Demographics according to 2000 census (wikipedia)

Creative ConsiderationsThe goal is to create a branded presence rather than sell fear or press peoples’ insecurities. No 19-yr. old supermodels, sweaty chests, bodybuilders, swimsuits, or bench-pressing.

case study: Milpitas Health & FitnessFitness For 10Design Overhaul -- Door Hanger

BEFORE AFTER

case study: Milpitas Health & Fitness

Creative Campaign -- Sticky AdFront page placement on Milpitas Post

Business card hand-outs:

Business card hand-outs:

case study: Milpitas Health & Fitness

Results

After a rocky start in the transition to the franchise model with heavy cancellations and rife with customer complaints, the new Fitness for 10 started implementing features the community was asking for, and began a word-of-mouth incentive program to “bring a workout buddy.” The front desk pushy sales tactics have been cut way back, and members enjoy the more casual atmosphere.

The “grand opening” advertising campaign pulled immediate results with sign-ups spiking during the weeks of publication, while the cost-effective word-of-mouth system is continuing to build momentum.

Slowly but surely, membership numbers have begun to climb back up with regular weekly new sign-ups who say they they heard about the gym from current members.

Better World BooksBusiness Situation

BWB had experienced tremendous growth by selling used books through the Amazon marketplace, and decided to launch its own ecommerce site for direct sales. With a heavy fan base in Amazon, it needed to grow awareness independently.

Consumer InsightThe BWB customers loved buying from them not just for the cheap price on used books, but because of a deep emotional attachment to books themselves. They treated their old books like they would loved pets. They liked the feel of books, the smell of the paper, the warm nostalgia of safety and quiet experienced while reading, a feeling often attached to their love of reading during childhood. They were outraged to learn that unsold used books end up in landfills. Additionally, BWB buyers were not stingy or penny-pinching, but rather empathetic and selfless. They loved to give books as presents, and would prefer to buy from a morally conscious company.

Recommendations1. Brand positioned as not just a responsible book store, but as a campaign for the cause of saving books, growing literacy, and sharing the experience of reading.2. Messaging based on love for reading, love of books, and giving; not cheap price.3. Blog to tell the company’s story and keep up with its myriad philanthropic pursuits.4. Display a ticker of funds raised for charity and used books saved from landfills.5. Full social media participation by all employees, and encourage customers to join.

case study: Better World Books

Blog header & Online Ad Banner TemplateHome page content: betterworldbooks.com

Social media / PR campaign Logo Refresh

case study: Better World Books

case study: Better World Books

Results

BWB was already making waves with their sustainable and ethical for-profit business model, book drives, and charitable donations. By honing their message and efforts like a campaign for a cause rather than just selling inventory with cheap prices, they gained powerful attention from business magazines, green issues, blogs, customers, and media. Customers became evangelists for the cause in addition to being fans of the business.

Or to put the results in other words:

You can visit betterworld.com to see the numbers in real time.

New Venture ChampionshipHosted by the University of Oregon Lundquist College of Business

Business SituationThe Oregon NVC has been a regular annual function hosted by the business school for generations of students. Though the event enjoyed prestige in the entrepreneurship community, organizers wanted higher actual attendance from students and investors.

Strategic InsightPrevious campaigns for NVC had focused on the money involved with winning the competition for the students who came up with the best business concept, and the potential rewards for investment in innovation. However, research showed that investors came to this specific event not for the prospect of profit so much as for a “pay-it-forward” mentality tied to their own experience at business school, or warm feelings toward a mentor who helped them on the road to success, and the desire to become such a figure.

Recommendations1. Brand positioned as a place to put a personal stamp on the next generation of aspiring business innovators, with emphasis on personal investment rather than financial.2. Messaging geared towards unlocking passion in participants and investors.3. Social media integration with blog, video production, and outreach campaign.4. Press kit and media information hand-outs with powerful imagery and copy.

case study: New Venture Championship

press kit / media brochure cover

YouTube short documentary

oregonnvc.com website and blog

case study: New Venture Championship

Results

In the past few years, the Oregon NVC has climbed to the rank of “one of the top 3 competi-tions throughout the world” for MBA business students, and the event was covered in Forbes magazine in an article detailing the “Top 15 Graduate Business Plan Competitions”.

The event’s campaign continues to focus on the “Power in Possibility” to inspire participants, and draws a larger crowd every year.

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