Tread Moves

Tread Moves:

Tread Moves Case Study

The treadmill case:

The treadmill case The most popular exercise equipment. Not being used because consumers got bored with their walking or running routine. “ Treadmoves ” was developed to renew treadmills.

TreadMoves:

TreadMoves A series of four exercise videos for treadmill users. It provides many new moves to exercise on treadmill. It provides workouts for different target market segments.

TreadMoves:

TreadMoves Founder: Meredith Hines, a 24-year-old graduate student. She lacked financial backing to market her videos through traditional retail channels or traditional mass media. Her challenge was to create the look of a professional and credible business on a limited budget.

Certain decisions were critical:

Certain decisions were critical How to conduct marketing research? How to promote the videos to target consumer segments? How to select marketing channels to distribute the products? How to measure the effectiveness of the marketing techniques?

Direct Marketing Techniques:

Direct Marketing Techniques Phase 1: Marketing Research Phase 2: Promotion Phase 3: Database Development and Customer Relationship Management Phase 4: Channel Selection Phase 5: Measurement

Phase 1: Marketing Research:

Phase 1: Marketing Research The Internet provides general market data such as “industry trends”. TreadMoves utilized chat rooms to gather information about segments and demographics. TreadMoves team searched for sites that hosted chat rooms related to fitness, weight loss, and exercise videos. http://www.videofitness.com/ was found, which is dedicated to people who work out at home with exercise videos.

Phase 1: Marketing Research:

Phase 1: Marketing Research TreadMoves team read through discussion threads to gather information. The information heavily influenced the exercise content of the initial set of videos. Once the first two videos were available for sale, TreadMoves was able to read the discussion threads about their videos on VideoFitness.com. The information allowed them to tailor new videos and products to the needs of their targeted segments and create better products.

Phase 2: Promotion:

Phase 2: Promotion Generate awareness of the videos: Direct response brochures. Limited use of brochures. Primarily used in an attempt to gain publicity for TreadMoves .

Phase 2: Promotion:

Phase 2: Promotion Development of a Web site . http://www.treadmoves.com/faqs.html Used for promotion and selling TreadMoves team mailed complimentary copies of the new videos to the chat rooms. Members of the chat rooms tried and loved the workouts, and they bought their own copies. Later, they posted their own discussion threads about TradeMoves .

Phase 2: Promotion:

Phase 2: Promotion Other Promotional Methods: Acquiring lists of e-mail addresses. Placing banners on related Web pages. Buying magazine advertising space. The costs were high, so the TreadMoves team decided to focus on “Database Marketing” activities.

Phase 3: Database Development and customer Relationship Management :

Phase 3: Database Development and customer Relationship Management Customers were sent emails about the second video. The response garnered a 20% return within 2 days. The company developed customer profiles. They sent information about the product offerings, and any news related to TreadMoves . TreadMoves encouraged feedback and provided answers to costumer’s questions about fitness.

Phase 4: Channel Selection :

Phase 4: Channel Selection The Web site was chosen to be the primary channel. As it was the most cost efficient, the easiest, and the fastest to update customer. TradeMoves used selling via multichannel direct marketing which enabled them to reach even more customers. All video orders were fulfilled by mail except for consumers who purchase the videos from retail stores.

Phase 5: Measurement :

Phase 5: Measurement Web site provided statistics such as number of visitors per day and clicks through patterns. Each customer who visits the TreadMoves web site has a unique digital fingerprint that is tracked and monitored. They also would look back and compare the data to provide additional information. The effectiveness of the advertising was measured to see whether it built traffic or increased sales.

Conclusion:

Conclusion As of 2008, TreadMoves sold more than 20,000 videos. It continued to get recognition from top fitness publication. TreadMoves expanded their products offerings to include DVD’s and audio series. TreadMoves ventured into commercial markets offering instructor certifications and license packages. At each clipboard they collect e-mail addresses of interested customers.

Question 1:

Question 1 What was the single most important direct marketing technique that the TreadMoves team employed early on? Using the Internet to gather information and utilizing chat rooms to gather customer segments and demographics. Using the Internet to create a Website.

Question 2:

Question 2 What other ways could the TreadMoves team use the Web site statistics to make their e-mail marketing even more effective? Interactive advertising would increase visitors interaction in the website and might collect more e-mails to include in the marketing database.

Question 3:

Question 3 Given TreadMoves ’ recent entry to the commercial market, in what other ways could the TreadMoves team use their customer database to promote to the commercial market? E-mails could be sent to interested customers to invite them to trade shows and conventions. Registered customers could get a discount in commercial gyms and fitness centers.

Question 4:

Question 4 Taking into consideration the limited budget of the entrepreneur, what else could be done to increase the size of the TreadMoves database? The Website could offer registration to interested customers. The registration can collect specific information about the customers and more e-mails.

Question 5:

Question 5 Overview the various direct marketing methods that have led to the success of this new business venture. Could traditional marketing methods have achieved the same level of success? No, because They had limited budget. Using direct marketing they have customers feedback and they provide them with answers to their questions. The measurability and accountability aspects of direct marketing provide a great advantage over traditional marketing methods.

Thank You for listening:

Thank You for listening Done by: Yara Al Nisani Ghazal al tawil Fatima Al suwaidi Nourhan Ali Leena Kazeez Iman Fawaz