MODULE 7 FINAL REPORT Math 110 Brought to life with Addressable Minds

Project Team Tamar Abeaziz Benjamin Friedman Emily Neuman Math 110 Final Report – Spring 2012 Survey and Analysis for Relaxation Beverage 2 2© 2012

3 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

4 The Market is Flooded with Energy Drinks and High Caffeine Products…

© Why aren’t we promoting slowing down and relaxing?

6 Introducing a New Product The market is currently flooded with energy drinks and other energy promoting products But….there are few products that promote the opposite: relaxation and stress relief What if there was a convenient beverage similar to an energy drink, but designed to promote relaxation and stress relief? Is there a profitable market for a relaxation promoting beverage? What messages will best sell this product? © 2012

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. 7© 2012

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 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. 8© 2012

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 9 9© 2012

Create Addressable Minds messaging for selling a relaxation beverage 10 DEVELOP SURVEY QUESTIONS Potential Consumer ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY TARGET MARKET MARKET SEGMENTATIONSEGMENTATION WIZARD MARKETING PHRASES 10 – 15 minutes 10© 2012

Addressable Minds’ underlying science uses standard Science and Mathematics 11 DEVELOP SURVEY QUESTIONS Potential Consumer 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 11© 2012

12 A Survey Was Performed by the Team in the Area of a Relaxation Drink 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 12© 2012

SURVEY OVERVIEW (1 of 2)  An Addressable Minds Survey is a survey of key ideas for introducing a relaxation product to the market  Survey conducted on November 6, 2011 : ◦ 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 buy the product/service- a relaxation promoting beverage 13 © 2012

SURVEY OVERVIEW (2 of 2) 50 Individuals responded Assess two major aspects of messages – Does it convince a prospect to buy? – 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’ 14 © 2012

15 The Survey begins with an orientation screen 15© 2012

16 Each respondent evaluates 48 unique combinations of elements First on overall interest 16© 2012

17 Then selects a single emotion 17© 2012

18 What convinces? What drives feelings? © 2012

19 Total Panel – Interested in a relaxation/stress relieving product. Not interested in extra features. 19© 2012

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

There are three unique segments Different Consumers – Different Approach Messaging for one isn’t necessary going to appeal to the other…and could actually hurt 21 Indifferent to Product 26% Interested in Concept 40% Interested in Effectiveness 34% 21© 2012

22 Indifferent (Seg1) – Not particularly convinced or deterred by the messages presented. © 2012

23 Effectiveness (Seg 2)- Interested primarily in the effect of a relaxing product. Not particular about form it is delivered in. Extra features are a turn-off. © 2012

24 Concept (Seg3) – Interested in the general concept of this new product. Were influenced positively by messages regarding multiple aspects of the product. © 2012

25 Interested in Effectiveness Turn-ons: Multiple ways to consume the product in addition to beverage: breath strip, gum, pill, etc. They just want something that helps them relax. They don’t care what it is Convenience is a must. They want a quick fix to their problems

© Turn-offs: Extra features such as a website and smart phone apps are a turn off They do not care about anything other than the effect of the product itself They are negatively influenced by unnecessary additions Interested in Effectiveness

© Interested in Concept Turn-ons : This group has a general interest in the idea of the product They respond positively to messages from across the spectrum They want savings, a website, convenience, and most importantly a relaxing product Turn-offs : This group did not have any major turn-offs There were no messages that particularly detracted from their enthusiasm or interest

© Emotions are an important factor when selling a product…

© CURIOUS or SKEPTICAL

The “Segmentation Wizard” is a 30 second shortcut survey that is extracted from the 15 minute survey and identifies the segment membership of that individual 30 DEVELOP SURVEY QUESTIONS Potential Consumer ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY TARGET MARKET SEGMENTATION WIZARD 10 – 15 minutes Segmentation Wizard consists of 3 or 4 elements identified in the in-depth 10 – 15 minute survey 30© 2012

31 The Relaxation Product Segmentation Wizard– Online example The Segmentation Wizard is a short survey with the questions derived from the full survey to identify segment membership RelaxDrink.htm © 2012

32 © 2012 The Relaxation Product Segmentation Wizard– Online example

33 Conclusions/Recommendations Three Segments discovered by Addressable Minds point to the need for 3 individual messaging groups Positive Emotions can be uncovered and subsequently reinforced in the marketing elements Conclusion => You can improve messaging...but you have to – Know the segmentation – Give the right message to the right segment © 2012

34  The results from the survey show us that there are primarily 3 categories of people:  Some are indifferent to the idea of this product. They are not influenced positively or negatively by the messages that were shown to them. This would be a difficult market to target, as their preferences are not so apparent.  Some are primarily interested in the effect of a relaxing beverage. They are more open to the idea of other forms of a relaxation promoter, such as pill or gum. They just want something that will relieve their stress. Things such as websites and promotions were of no interest to them and caused them to react negatively.  The third category of people are interested in the general concept of the product. They reacted positively to messages from across the spectrum, but did not have a specific area of interest.