Bally Total Fitness

F I T N E S S

T O TA L

B A L LY

2010 Advertising Campaign Plans Book

SWOT Team

SWOT Team

TEAM Members Account Executives/ Lauren Hershey Ashley Rosado Account Planner/ Laura Smith Media Planner/ Philip Strang PR & Promotions/ Jenna Gaillard Annie Traux Karli Sanchez Creatives/ Ashley Parker Justin Gaymon

EXECUTIVE Summary...1 SITUATION Analysis...2 RESEARCH Findings...4 TARGET Market...7 BRAND Essence Chart...8 SWOT Analysis...9 MARKETING Objectives, Strategy, & Rationale...11

ADVERTISING Objectives, Strategy, & Rationale...13

SWOT Team

CREATIVE Brief...15 CAMPAIGN Message & Strategy...16 CREATIVE Executions...18 PUBLIC Relations...29 FUTURE Recommendations...35 MEDIA...36 CAMPAIGN Budget...47 EVALUATIONPlan...49

SWOT Team EXECUTIVE

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Summary

he history of Bally Total Fitness can be traced back to the 1930s when it began as a manufacturing company. In 1983 the brand emerged in the fitness industry after acquiring Health and Fitness Corporation and Lifestyle. The company's long standing success was met with financial challenges in 2007 and 2008. During that time, Bally filed for bankruptcy. While their financial instability led to bad publicity, it also gave the company the opportunity to redirect their efforts to improving the quality of their fitness clubs. Bally Total Fitness remains one of the world's largest owned and operated fitness centers with over 270 fitness clubs and approximately 3.5 million members worldwide. Bally strives to relate its brand with quality customer service within the fitness club industry. The SWOT Team accepted the challenge of introducing this new Bally brand to the public, increasing the member retention rate, and attracting the attention of new members.

Bally Total Fitness' widely recognizable name in the fitness industry is one of the brand's positive attributes. Additionally, the company's free week-long trial memberships and affordable monthly rates appeal to students, young adults, and young professionals. Bally's young and sexy clientele tend to be highly conscious about their body images and are interested in the latest workout trends. The fitness club's wide variety of fitness classes and innovative workout equipment also appeal to this demographic.

Students, young adults, and young professionals comprise a highly segmented market, which can be differentiated by interests, workout styles, and social preferences. Therefore, the SWOT Team decided to segment the target market into two groups: tradition-

alists and socialites. Traditionalists prefer solitude when it comes to working out. They use the gym to de-stress and dislike wasting time.

Traditionalists tend to stick to the basic equipment and show little interest in fitness classes.

Socialites, on the other hand, prefer to go to the gym with friends. They enjoy the opportunity to socialize when working out and take advantage of fitness classes that are offered.

Socialites are motivated by group-centered workouts and view exercise as not only beneficial but also fun.

The SWOT Team introduces an integrated marketing communications campaign focused on both maintaining positive relationships with Bally's current members and creating lasting relationships with potential members. The plan incorporates elements to promote Bally's customer friendly environment and diverse workout ...OVER 270 FITNESS experience.

CLUBS AND APPROXIThe campaign MATELY 3.5 MILLION also includes a MEMBERS WORLDvariety of media and innova- WIDE. tive advertising techniques to reach targeted segments of consumers and show how Bally Total Fitness can work on a local level to create a communal experience for each member. The ads convey the message that Bally Total Fitness is a leader in customer satisfaction with necessary professional support, fitness classes, and exercise equipment to suit every lifestyle and workout preference. The campaign's use of differentiated media, messages, and scheduling will compel potential members to seek more information.

The company's quality customer service and superior facilities will lead to increases in the retention of current members and newly contracted members, which ultimately results in increased profits.

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SWOT Team SITUATION

Analysis Company History/

Company Evaluation/

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ith over 270 locations and 3.5 million members worldwide, Bally Total Fitness is one of the most ally Total Fitness has an expansive recognizable names in the fitness history, spanning several industries, industry.

Bally’s success is attributed to its and product categories. Bally's name wide variety of services and accessibility, in dates back to the early 1930s when terms of location and operating hours, comthe brand was known as the Bally Manupared to the average gym. The company facturing Corporation in Chicago, Illinois. has both a national and local presence The company started out building pinball with most of its facilities located in highly machines with its most successful product populated cities. Bally also provides a wide called the Ballyhoo. It then went on to proarray of equipment, personal training, and duce products and parts for slot machines, group fitness classes catering to the needs video games, amusement parks, and the of its members. The fitness club offers a vaUnited States Army and Navy. The company riety of classes ranging from Pilates, Zumba, emerged in the fitness industry in 1983 after cycling, martial arts, and boot camp style the acquisitions of the Health & Fitness Corworkouts. Presently, Bally Total Fitness markets poration and Lifestyle. After the buyouts of itself as the low-cost fitness gym. It boasts these two companies, it only took Bally four zero-enrollment fees, no long-term contract years to become the world’s largest owner and operator of fitness centers. The Bally Total requirements, and a low monthly memberFitness name developed in 1995 as the com- ship fee of $27.99 per month. The company also offers friend, family, and corporate plans pany began to position itself as a leader in along with single, local, and national acthe fitness industry. cess options.

WIDE ARRAY OF Though Bally Bally’s success in the fitness industry did EQUIPMENT, PERSONnot last forever. The company filed for bank- Total Fitness has much to offer, AL TRAINING, AND ruptcy in August 2007 and again in October its status as a gi- GROUP FITNESS 2008. The company emerged from bankant in the fitness CLASSES ruptcy in September 2009 and has been financially stable since. Bally Total Fitness now industry compromises the quality service more members operates over 270 fitness clubs with approxideserve; its members are reporting unsatismately 3.5 million members worldwide. Bally factory experiences with the gym. Consumer is currently headquartered in the city that Reports rated Bally as the lowest among it began in, Chicago, Illinois, and is a major America’s most popular fitness clubs; the competitor in the 18.5 billion dollar fitness publication gave Bally a 66 out of 100. Furindustry. thermore, according to consumer feedback on gothamist.com, the company has also developed a negative reputation with its clients by receiving over 2,700 complaints in just 3 years. The most common complaints were

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SWOT Team related to the gym’s lack of cleanliness and poor service. Customers also accuse Bally of using deceptive advertising tactics to lure consumers into signing long-term contracts, even ruining their consumers' credit.

Competitive Analysis/ Year Founded 1995

Headquarters Chicago

Number of Locations 270+

LA Fitness

1984

Irvine, California

200+

Lifetime Fitness

1992

Chanhas85 sen, Minnesota

Gold’s Gym

1965

Irvine, Texas 600+

Bally Total Fitness

Media Usage Social Media Outdoor Print Television Interactive Promotions Internet Social Media Outdoor Television Internet Social Media Outdoor Print Internet Social Media Outdoor Print Television Promotions

Public/ Private Private

Parent Company Bally Total Fitness Holding Corporation

Revenue 2009 $18.5 Billion

Private, Franchised

LA Fitness Int’l, LLC

N/A

Public

Life Time Fitness, Inc

$770 Million

Public, Franchised

TRT Holdings

N/A

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SWOT Team Consumer & Industry Trends/

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his campaign takes place in an economically unstable market where most individuals in the target market are either choosing to stay in school for postgraduate education or having trouble finding well paying jobs. Consumers in this target market are also more unlikely to commit to long contracts because of the need for constant geographical mobility and uncertainty about the future. Despite the concerns with the financial commitment of joining a gym, however, the target market has more time to dedicate to physical self-improvement.

Seasonal trends give consumers additional pressure to get in shape. One of the most popular consumer yearly fitness trends is for people to make workout commitments at the beginning of each New Year and before beach season. Significant life events such as a weddings, college or high school class reunions, and other holiday events inspire many consumers to make weight loss goals.

Consumers are searching for ways to have more fun while they work out. Female consumers look for classes that incorporate rhythm and dancing. Dance workouts like Zumba offer members the chance to have fun and experience something new while exercising. As well, Consumers are there are an increasing number of mind searching for ways to have more sun and body class enthusiasts who look while they workout for a meditative escape while meeting their fitness goals. One up-and-coming industry trend is the incorporation of new suspension training machines.

These machines offer a more specialized work out than free weights because they have the ability to target more muscles at a

RESEARCH Objectives/

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n conducting research for Bally Total Fitness, the goal was to evaluate the psychographics, demographics, and segmentation of fitness-minded adults ages 18-24. The objective was to discover the needs and desires of gym users from this group. Research was directed at finding more about the target market's normal workout routine and how to design a fitness club to fit their needs. Primary research methodologies were focus groups, interviews, and a survey, whereas, secondary research methods included the Simmons database, blog research, and website analysis.

Simmons Cross-Tabulation/

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onsumer product usage data in Simmons revealed that women ages 18-24 who are members of private fitness clubs are more likely to read Maxim, Cosmopolitan, Fitness, Self, and SHAPE.

Online Research/

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ontent analysis of blogs citing Bally Total Fitness experiences showed mostly negative posts about problems with poor service, difficulty ending membership contracts, and lack of cleanliness in Bally facilities.

An analysis of Facebook.com's content showed negative comments such as, “die Bally die.� Bally’s fan page does not have pictures of the gym, but positive comments did appear on its wall. The fan page also features success stories, information about trainers, and health tips. Bally's competitors Facebook fan pages have more fans and include promotional offers.

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SWOT Team Website/

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ally Total Fitness’ main competitors are L.A. Fitness, Gold’s Gym, and Lifetime Fitness.

L.A. Fitness’ website is simple; however, it neither focuses on a certain target market nor mentions prices and fees. One interesting feature was a virtual tour of the inside of an L.A. Fitness facility.

Gold’s Gym’s website is targeted toward people who are looking for a tough workout.

The site mentions a zero enrollment fee, but does not go into monthly prices.

Lifetime Fitness' website distinguishes themselves from other competitors in the industry by giving specific reasons on "How Life Time Is Different." When entering the site there is differentiated links for members and non-members to simplify the navigation process.

Surveys/

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esults from the survey found that men and women 18-24 are more likely to exercise than other age groups.

Women are inclined to exercise in groups, and they view group exercise as a way to socialize and bond with others. Fitness clubs offer options for both individual and group exercise, and this is a large reason why these clubs stay afloat during economic downturns. Fitness classes and group training allow for camaraderie and prove beneficial to one’s health, and women are more likely to participate in mind- body classes like yoga and Pilates.

most two-thirds of respondents to our survey exercise at home, and 70% would prefer to do so if they had exercise equipment. Approximately 20% work out in a private club, and 40% of participants reported being too embarrassed to go to the gym. Also, respondents age 18-34 are more interested in devices which track and monitor exercise progress. This group is more drawn toward fitness exercises featured online and in magazines.

Interview #1/

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he first interview participant worked at an L.A. Fitness branch and currently works at the YWCO in Athens, Georgia. The participant expressed opinions about who the average member is, what his/her daily workout routine is comprised of, and what influences people to join a gym.

The interviewee said the average member of L.A. Fitness tends to be more affluent (middle to upper-middle class), age 25- 50, and welleducated. Members joined the fitness club because it had a variety of classes, personal trainers, and a kid's care center. The employee also said average workouts at L.A. fitness last for at least forty-five minutes. L.A. Fitness does have an enrollment fee, but members are able to freeze their accounts for a fee.

The peak workout times were in the morning before eight o’clock, lunchtime, and in the evenings from five to eight o’clock. Seasonal peak times were in January and again at the beginning of spring. L.A. Fitness offered a promotion to encourage referrals; for every three friends a member got to join, he or she received some sort of incentive.

Men tend to run both indoors and outdoors and play recreational sports. They also lift weights and use weight-training machines regularly. Men see exercise as a way to compete and improve physical appearance. Al-

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SWOT Team Interview #2/

Focus Group/

n active exerciser in our target market was also interviewed. This participant exercises at the University of Georgia’s private facility or the YWCO. The respondent's average workout consists of forty minutes of cardio, twenty minutes of weights, and ten minutes of abs exercises and stretching. The active exerciser's motivation for exercising is toning and losing weight. Factors like convenient hours, classes offered, and high quality equipment motivated this respondent to join a gym. The interviewee prefers large fitness clubs because they have more equipment and more class options and also believe that fitness clubs differentiate themselves with cleanliness, accessibility, and positive reputation. The participant perceives Bally as more female-oriented club with smaller facilities.

focus group of men and women in the target market was used to learn how a sample group feels about Bally Total Fitness. Six out of ten participants were members of a gym, and the other four were not. Reasons participants did not join a gym were monetary, satisfaction with current weight, and fear of not getting enough use out of the membership. Factors that influenced their decisions to join a fitness club included the desire to stay in shape and lose weight. Participants said other reasons they would join one fitness club over another were lower costs, availability of tanning salons, and less crowded facilities. Other desirable features were televisions on treadmills, saunas, variety of equipment, and friendly employees. Turnoffs at certain fitness clubs are pushy sales people, overcrowding, few class options, and unclean facilities. The majority of participants preferred a big gym and desired to pay between $20- 35 a month. The recent recession has also affected what six out of ten people in our focus group could pay for a gym. Only one participant visited a Bally location. Their description of the gym included comments such as "trashy," "outdated," "impersonal," "intense," and "not a popular fitness club". Many participants saw Bally’s advertisements, but only on television, and they found them to be "cheesy" and "annoying."

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Interview #3/

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he final interview was conducted with an employee of a local gym in Athens, GA who is responsible for the fitness club's advertising and public relations.

The participant believes that aspects of a good fitness atmosphere are cleanliness, color scheme, variety of classes, and equipment. The employee said that the gym's advertising emphasized results and values rather than costs and enrollment fees. The interviewee also said it is better to do advertising focused on a person's head rather than his or her full body. The respondent also stressed the importance of making potential members feel like they can achieve results like the person in the advertisement.

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SWOT Team TARGET Market

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he target market consists of men and women ages 18- 24 with a heavy focus on students, young adults, and young professionals. The individuals within this demographic are highly conscious about their body images and are inclined to work out. According to Mintel research, most people ages 18-24 are more likely to try new workouts found online or in magazines.

The research found in Mintel suggests that people in this demographic are open to new methods of exercise and are willing to experiment when it comes to their fitness routines.

This also implies that people ages 18-24 are heavily influenced by trends and fads in the fitness world including technological innovations. Based on findings about the target market, the target market is divided into two segments: traditionalists and socialites.

Tradionalists/ • Prefer solitude when it comes to working out.

• Use the gym to de-stress.

• Dislike wasting time; they want to be in and out.

• Stick to the basic equipment.

• Show little interest in fitness classes.

Socialites/ • Prefer to go the gym with friends.

• Like the opportunity to socialize while working out.

• Take advantage of the fitness classes offered.

• Tend to be motivated by group-centered workouts.

• View working out as not only beneficial but fun.

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SWOT Team BRAND Essence

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SWOT Team SWOT Analysis

STRENGTHS/ • Featured member success stories on website.

• Recognizable name in the fitness industry.

• Free week-long trial memberships.

• Social media presence.

• Wide variety of fitness classes offered.

• Celebrity endorsements by popular figures in the media • Hundreds of locations nationwide.

• Latest trends in fitness industry shared on the company website.

WEAKNESSES/ • No emphasis placed on target market on website or online media.

• Few success stories that highlight target market. negative perception to public.

• Absence of company history on national website showing no pride in ownership.

• Limited involvement in philanthropic causes.

• Social media scattered among locations and lacking a unified message.

• Little positive word-of-mouth • Negative image due to previous history of bankruptcy.

• Previous negative perception of customer service.

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SWOT Team

OPPORTUNITIES/ • Social media’s low cost to businesses.

• Target highly dependent upon media and Internet.

• Target’s investment in self-image.

• Target’s access to disposable income.

• Time available to work out high among target.

• High concentration of target market in metropolitan areas.

• Age group most influenced by cause-related marketing.

THREATS/ • Competitors’ locations outnumbering the client’s.

• Industry rivals more consistently involved in their philanthropies.

• Current economic times restricting amount of money spent on luxuries.

• Emerging niche gyms.

• Competing gyms currently and consistently successful.

• Technological boom pressuring gyms to constantly update equipment.

• Alternative exercise method, such as Wii, running outdoors, and fitness videos.

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SWOT Team MARKETING Objective,

2. To convert online leads for 7-day guest passes resulting in a 10% increase of new members.

1. To increase membership retention of current clients from 2009 by 25% by the end of December 2010.

Strategy: • Public Relations • Newsletters to current clients, including tips and healthy recipes.

• Membership appreciation events.

• Non-profit sponsorships relative to health and fitness.

• Promotional activities

- Contests and sweepstakes to win

personal training sessions, tickets to

sporting events, and all inclusive trips.

- Free samples of the latest health

products on the market.

- Gift and incentive items to encourage and promote class participation.

• Internal Public Relations

- Initial training programs to ensure

that employee service is uniform

among facilities and of the highest

caliber.

- Ongoing customer service training

using a consulting firm to guarantee

continual customer satisfaction.

• Advertising

-Television

-Print

-Out of home

-Online

Strategy: • Online Public Relations

- Use personal contact information

from those who request guest passes

online to deliver online newsletters.

• In-house traffic from online leads

- Gifts and incentive items for

joining with a seven day pass.

Strategy, & Rationale

Rationale: Consumer and industry feedback shows that Bally must improve the quality of the membership experience before marketing objectives are met. Prioritizing customer satisfaction will enhance Bally’s positive word-ofmouth and encourage both long-lasting and new relationships with their clients. Through personal interviews with fitness industry professionals, the agency learned that in order to increase revenue and maintain the facility with necessary equipment upgrades, there must be a source of guar- Promotional activities anteed income bridge the gap bevia monthly tween employees and contracts. Promembers to ensure a motional activities bridge the level of familiarity and gap between comfort with the club employees and and its staff members to ensure a level of familiarity and comfort with the club and its staff. There are opportunities for members to expand upon their traditional workout routines to encourage the use of the club’s amenities. Most importantly, the agency feels that in order to satisfy current clients, customer service should be of the utmost importance and highest quality. Bally Total Fitness wishes to relay the message that no matter what the location, the experience will be the same. Improvements in customer

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SWOT Team service will help to satisfy expectations of “quality” promised throughout the advertising campaign. In addition, these measures will help retain those who sign up for online guest passes.

Moreover, previous research shows that only 2% of Bally’s website visitors use the 7-day pass and a slim 1% sign up for memberships. Improvement of online leads directly aligns with the campaign’s interactive 3. To maximize membership volume from online channels with a Return on Ad Spend (ROAS) of $4.

Strategy: • Online media selections

- Facebook

- Twitter

- Bally’s corporate website

- Modified to appear on organic

search)

- Fitness Magazine Website

- Cosmo Magazine Website

- Maxim Magazine Website

- SHAPE Magazine Website

- Paid Google search

- E-mail marketing to an existing

mailing list.

• Tracking through eCommerce

- Contact and create new pros-

pect lists for future communication.

- Measure lifestyle choices and rea soning for or against choosing Bally.

that the client’s advertising budget is efficiently and effectively spent throughout the campaign. In order to maximize the volume of contracted members, the campaign will use tracking through the eCommerce services already implemented by Bally. The four magazines chosen have the highest number of subscribers in the target market. The magazines’ readers that tend to be fitnessminded individuals linking to Bally’s goal of promoting healthy living that encompasses all aspects of life, not just a fitness routine.

The social media, media outlets, and public relations implemented will unify the message that Bally values its members and promises to work for them, no matter what their workout preferences.

Rationale: Research findings based on Bally’s current use of social media show that the campaign needs to improve the relevancy and consistency of the various online media selections to the target market. A synergistic message found on Facebook, Twitter, and the corporate website will help to direct visits to Bally’s website, leading to higher traffic into the locations nationwide. This objective ensures

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SWOT Team ADVERTISING Objectives, Strategy, & Rationale

1. To create perceptions of Bally as “quality” in the fitness industry category among 25% of the target market of 18-24 year olds by the end of December 2010.

Strategy: • Magazines

- Maxim

- SHAPE

- Fitness

- Cosmopolitan • Social Media

- Facebook

- Twitter

- Youtube

- Blogs • Paid search

- Key words:

- “Workout”

- “Gym”

- “Fitness club” • Organic search • Affiliate companies’ websites • E-mail marketing with current mailing list.

• Consistent charitable giving through special events.

concentration in metropolitan cities, the key consumer has more contact with non-profit organizations, and consequently has many opportunities to engage in consistent charitable giving. As demonstrated by the success of Gap’s “InspiRED” campaign with college age students, the “18-24 year old market is most influenced by cause-related marketing” (Trey Laird, of Laird + Partners in New York City).

2. To increase purchase intention among the target market by 25% by the end of 2010.

Strategy: • Magazine ads with trial membership coupon cut-outs.

• Local television ads running in concentrated Bally locations.

• Synergy of social media (Facebook, Twitter).

• Guerilla marketing in metropolitan areas.

• Out of home advertising in metropolitan areas.

Rationale: According to Mintel, the target market is most likely to get fitness related information from magazines and online sources.

Through interviews and focus groups the agency found that the target market is likely to receive information from multiple media sources, including fitness trade journals, onRationale: line blogs and forums, and “On Demand” Through qualitative research in focus groups as well as observations and quantitative data television programming. Therefore, the agency chose an expansive array of media outprovided by Mintel and Simmons, the agenlets, including television, print, and Internet. cy feels that the media mix chosen is best suited for the target market. Research shows The target market is also excited to try new services, products, and workouts featured that the target market spends more of its time online and is dependent upon the Inter- in magazines such as SHAPE, Maxim, Fitness and Cosmopolitan, which are a part of the net more than previous generations. When making purchasing decisions, the target mar- campaign’s print media selections. ket relies on the opinions of their peers rather than seeking out independent sources and researching Consumer Reports comparing similar services. Moreover, because of Bally’s

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SWOT Team 3. To build brand loyalty by maintaining long term relationships with current members and limit cancellations to result in increased positive word-of-mouth.

Strategy: • Special promotions for current members to retain memberships.

• Sponsorship of members’ charitable giving by donating to a local charity for signing a new contract.

• Club enhancement fee: members have the opporutunity to suggest how club spends money on improvements through quarterly surveys.

Rationale: The SWOT Team feels that a campaign focused on long-term, sustainable relationships with clients will boost business in the long term.

Reduced cancellations, referrals to family and friends, and overall satisfaction with their Bally Total Fitness experience will phase clients into long term members. These members, in turn, will have a say in future club changes that will benefit them. The agency’s proposed public relations and community involvement efforts will enhance the brand image of Bally as a top contender in the gym industry.

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SWOT Team

CREATIVE

BR IE

F

Key Fact • Bally Total Fitness goes beyond its competitors by offering unparalleled customer service in an environment that appeals to all workout preferences.

Problems • Bally Total Fitness held a previous negative perception in the health club industry.

Objective • To reposition the perception of Bally towards one of quality in the fitness industry category among 25% of the target market of 18-24 year olds by the end of December 2010. To increase purchase intention among the target market by 25% by the end of 2010.

Target Market • Men and women ages 18-24.

Promise • Bally Total Fitness offers an expansive array of fun classes as well as the essentials for a no-frills workout to get you out of your regular routine and into a supportive network of fitness enthusiasts.

Support • Bally has revamped itself from the inside, out. By implementing a more rigorous hiring process and continuous customer service training, Bally guarantees their employees to be knowledgeable, hard working, and enjoyable. Bally is focused on catering to the unique needs of the target market.

Mandatories • http://www.ballyfitness.com • Logo.

Insights • Traditionalists: “I don’t want to be bothered by anyone when I go to the gym. I just want to blow off steam. I’m not interested in the hassle of going to fitness classes. I feel like they are for sissies, anyway. I want to get in, get buff, and get out.”

• Socialites: “I prefer to go the gym with my friends. Hell, I want to be seen. I look good when I’m working out. When I’m taking a class and I look over my shoulder and see my friend tearing it up, I make sure I’m pushing it to the limit.”

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SWOT Team CAMPAIGN Message & Strategy

“B

ally Total Fitness works for you” instills a sense of promise, authority, support, and individualization. Throughout the campaign, the concept is all-encompassing, from the magazine advertisements to the promotional items distributed. This concept directly incorporates addressing both Bally’s biggest problem of a poor perception of customer service and the target market’s unique relationship with the fitness industry. Bally Total Fitness adapts for each individual's workout preference while “Bally Total Fitness providing a network of supportive Works For You” instills fitness enthusiasts a sense of promise, to support each authority, support, member every and individualization step of the way.

The campaign focuses its primary message on the understanding that fitness is a personal choice. Bally recognizes this choice among its members and guarantees a customized workout experience every visit, no matter the location.

The target market consists of young adults, ages 18-24. This group of individuals is typically focused on personalized, interactive, and socially relevant training. Therefore, the campaign caters to that preference by creating a message that will integrate each of these characteristics. The campaign’s emphasis on customization enables the target market to incorporate Bally Total Fitness in their individualistic lifestyles while being reached by the brand at relevant times and in surprising ways. Advertisements will show different ways that Bally works for different people.

The target market for this campaign has a unique set of beliefs and values including minimal responsibilities beyond personal development. During this life stage, most people in the target market have different life goals, primarily bettering oneself holistically with fitness as a major component. People in the target market are often described as selfserving and egocentric, but Bally sees these as positive characteristics, especially when it comes to working out.

Bally offers all the necessary ingredients for members to tailor their workouts to fit their individual needs. Bally’s unmatched customer service and environment facilitates the creation and maintenance of a customized workout plan that can be continued indefinitely or altered in the future. Every person has different workout preferences when it comes to achieving his or her fitness goal.

Bally’s specialized staff and trainers can work with the client to develop a plan to meet each specific need.

The campaign will consist of magazine print ads, online ads, and public relations and promotions. Print ads will be placed in Maxim, Cosmopolitan, Fitness, and SHAPE. Online advertisements will be strategically offered on magazine websites and highvolume social media websites. The ads will cater specifically to the magazine's readership. For example, print ads placed in Maxim will give tips on muscle building exercises, while SHAPE will feature Bally’s mind and body classes.

The campaign depends heavily on public relations and promotions. This includes all social media, internal special events, media events, and membership incentives. The campaign will also use guerilla marketing to creatively reach the target market. Guerilla marketing will include interactive displays in Bally’s most concentrated city markets. One

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SWOT Team display invites people to see how Bally Total Fitness works to relieve their stress by using a punching bag with a generic picture of “the boss.� The punching bags have directions to the nearest Bally location where these stressed individuals can continue to let out their frustrations, whether in a kickboxing class or on their own with another punching bag.

and post daily workout routines provided by members and trainers. Through the use of Youtube videos, Bally will show clips of fitness classes, demonstrate workout routines, and offer health tips that are easily incorporated into the target's lifestyle. For the duration of the campaign, Bally will communicate to the target market that Bally Total Fitness works as a part of their journey toward improvement.

The social network aspects of the campaign will ensure customers develop and maintain their personalized healthy lifestyle plans. Personalization and self-promotion are at the center of maintaining personalized social media. The campaign incorporates Bally into the target market’s network. Twitter will update members about daily workout plans, post fun workout playlists, and to allow members to provide feedback. The Facebook group will also keep followers informed of gym schedules and classes, offer incentives, encourage new member referrals,

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SWOT Team CREATIVE TACTICS Print Ads

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SWOT Team Print Ads

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SWOT Team Print Ads

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SWOT Team Online Banner Ads

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SWOT Team Online Banner Ads

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SWOT Team Out of Home (Bus Stop)

HoweverY

OU

BALLY

TOTAL

WORK OFF the weekday,

F I T N E S S

WORKS FOR YOU.

www.ballytotalfitness.com

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SWOT Team Out ot Home (Bus Stop)

B A L LY

TOTAL

WHEN YOU NEED TO FIND YOUR CENTER,

F I T N E S S

WORKS FOR YOU. www.ballytotalfitness.com

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SWOT Team Out of Home/

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SWOT Team Out of Home/

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SWOT Team Out of Home/

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SWOT Team Television/

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SWOT Team PUBLIC Relations

Club Newsletter -“Bally Buzz”/ Objective: To develop long-term relationships with Bally's current members while giving each Bally location a local touch.

Solution: The SWOT Team plans to design a monthly newsletter, entitled "Bally Buzz," to display in the locker rooms. The template is customizable and can easily be used by each fitness club's local management. The monthly newsletters include a series called "Bally's Bod of the Month." This feature spotlights members' success stories and how "Bally worked for them." It is complemented by Frequently Asked Questions, upcoming membership events, beauty and health advice, and other seasonal information such as New Year's Resolution tips.

B

ALLY uzz

BALLY Bod of the Month Allison Gray

BALLY Health Q&A I work out every day and am having trouble working off the fat?

What do you suggest I do?

Most people think that working out everyday is what our bodies need to get in maximum shape. Studies show that it is actually not beneficial to work out everyday and when we do so we may be hurting our bodies instead of helping our bodies. Instead of working out every day, work out 5-6 days a week and alternate your workout routines. This will keep your workouts interesting and will give different parts of your body a chance to recover.

I run 45 mintues every time I work out and am can’t seem to slim down my thighs. What should I do?

What She Did to Get in Shape: 3 sets of 15 squats 3 serts of 20 lunges 3 sets of 20 bicep curls 5 sets of 20 crunches 30 minutes of cardio

Instead of just doing cardio every time you work out, try to include weight training into your routine. By working with weights our bodies build muscle which helps us burn fat throughout the day.

BALLY’S Top Five Healthy Foods of the Week: 1. Scrambled Egg Whites 2. Whole Weat Pasta 3. Veggie Burgers 4. Soy Milk 5. Fruits and Veggies

Rationale: Since Bally's biggest problem is the perception of poor customer service, a series of monthly newsletters entitled "Bally Buzz" provide the club with an opportunity to reach many members where they are most likely to receive Bally's message.

Scheduling: The newsletter begins in January and continues throughout the campaign in all participating Bally locations throughout the United States.

Cost: The original template design is provided free of charge to each Bally location. 270 locations x $148 printing fee per year = $40,000

Online Newsletter/ Objective: To increase awareness of the classes and specials offered at the gym while providing a personalized feel for members.

Solution: Bally Total Fitness will send out a monthly newsletter via email and post a copy on the main website. The newsletter contains the class schedule for the month, descriptions of each class, featured workouts, healthy eating tips, any special promotions at the gym, as well as “Bally’s Bod of the Month."

Rationale: The newsletter keeps members involved with the gym, which will increase the member retention rate. The health advice and workout exercises give members the opportunity to stay up-to-date with the latest workouts and health trends and give them the option to change up their daily routines.

Scheduling: The newsletter will be sent out via e-mail to all Bally Total Fitness members at the beginning of each month.

Cost: $5,000 for writing and production

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SWOT Team Member Appreciation Night/ Objective: To increase member retention by offering promotions and gifts to members.

members, allowing them to work out, relax in the steam room, and shower without the cost of hiring a babysitter.

Scheduling: Member appreciation days will occur on the last Thursday of January, March, April, AuSolution: gust, September, and October to help memBally Total Fitness plans to hold member bers get through their busy work weeks and appreciation nights during which a special to start their "weekend" a little earlier. The "Member Night" schedule of the club's most popular classes will be taught back-to-back. months chosen coincide with peak rates of newly enrolled members and the busy back Special promotional offers and the latest to school months. health products will be available to sample.

Cost: There is also chance for members to meet with a nutritionist for free consultations and a Most costs would be minimal, as the gifts and promotional items given away will be massage therapist set up to give ten minute mutually beneficial for the products being massages in the men's and women's locker rooms. To conclude their workouts, members promoted as well as the gym. Bally would have to schedule additional workers for the could swing by the smoothie bar area for a complementary "Member's Choice" signature child care center during the Member Night time period and would also incur the cost drink, which will be each club's most popuof free small smoothies. However, since the lar smoothie of the month. Finally, during signature smoothie will be given away, inmember appreciation nights, the child care center will host a coinciding "Date Night" that gredients could be purchased in bulk, thus cutting costs. Additional child care costs= 2 will allow dues-paid members to leave their workers at $8/hour for 3.5 hours = $50 (after children from 5-8:30pm to enjoy a stress free taxes deducted) and free smoothie costs (at workout without the kids. $1.50/smoothie assuming 280 members attend) = $1.50 x 280 = $420 for a total of $470 per month for Member Appreciation Nights x 6 months= $2,820 x 232 of Bally's most popular locations= $654,000

Rationale: Member appreciation days will emphasize the value that Bally places on excellent service. It will also give members an incentive to remain members at Bally Total Fitness.

The "Date Night" aspect is a great reward for

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SWOT Team Promotional Item/ Objective: To reward members for their loyalty and generate positive relationships among members while simultaneously increasing brand awareness.

Solution: Apple iPod Touch and iPhone silicone skins with Bally's brand logo will be distributed to members. Bally Total Fitness and the company Incase will work together to provide these silicone skins. These items will serve as a tangible reminder that Bally appreciates its members.

Rationale: Bally's target market is more knowledgeable and dependent on technology. Moreover, Incase is a company known for providing cases for Apple brand products, which are popular among 18-24 year olds. Research shows that most people in the target market own iPods or iPhone; therefore, this promotional item is a functional gift that gives Bally's name exposure. In return, Incase will advertise with banners in the gyms to reach its customers that use Apple products.

Scheduling: This will be a one-time promotion occurring on one day in the month of November. The date of the giveaway is at the discretion of each Bally location. November is a slower time for using the gym as well as gaining new members, so the most loyal customers will be rewarded with these gifts.

Cost: Each case with the Bally logo printed on the back will cost approximately $35. An estimated 100 silicone skins will be given away at 100 different Bally locations across the country. $35 each x100 silicone skins= $3,500 x 100 locations= $350,000

Online Video Competition/ Objective: To encourage fitness in creative means, supported by Bally’s slogan, “Whatever your jam, Bally Total Fitness works for you� among its current and prospective members.

Solution: Bally will host an online music video competition via their current website. Members will submit their videos online to show off their favorite combination of Zumba moves matched with the tunes that motivate them to "shake it off." Participants will video themselves doing their routines, Bally will judge the videos at the end of the competition, award prizes accordingly, and incorporate the routine in upcoming Zumba classes in Bally locations nationwide.

Rationale: Zumba classes are a current trend in cardiovascular fitness, but sometimes the instructor's music choices are not favorable to everyone. With this competition members can

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SWOT Team show off their creativity and potentially contribute to one of their favorite classes. Bally wants to promote fitness and individuality while encouraging healthy competition.

Scheduling: As some of the routines may take place outdoors, the competition will be held during April, May, and June. Award winners will be notified by June 31, 2010.

Cost: Prizes are donated from the award winner's gym. A free 1-year membership and free training sessions with Bally trainers is the recommended donation. Though online videos are free, this public relations effort will require maintenance by an online professional to ensure that user submissions are appropriate. A fee for this service is priced at $5,000.

expenses associated with the vacation for the three winners and one guest per person.

Rationale: Every once in a while, a vacation is a necessary escape. By offering a fun, competitive challenge, Bally Total Fitness will acknowledge members' achievements with a rewarded break from the daily grind and an opportunity to show off their award winning bods. In addition, the vacations listed are suited for the more physically active traveler.

Bally supports fun and physically challenging activities inside and outside gym locations.

Scheduling: The challenge will take place in March, April, and May. The vacations are scheduled for June.

Bally’s “Burn It� Challenge/ Objective: To give away three all-expense paid vacations to three lucky and devoted Bally members.

Solution: Bally Total Fitness plans to give three free vacations to three members of various gym locations nationwide. Each of the three vacation packages is paired with a fitness goal (most cardio miles logged, most fitness classes attended, and most inches lost off waist in a three month period) to motivate members to keep coming to the gym on a regular basis. Each member wanting to participate in Bally's "Burn It" Challenge will be matched with a trainer to take initial measurements, monitor cardio workouts, and keep track of the member's attendance in group fitness classes. Bally Total Fitness will send winners to Costa Rica on a rain forest excursion, to Hawaii on a surfing vacation, or to British Columbia for a skiing adventure. Bally Total Fitness will pay for airfare, lodging, and dining

Cost: 1. Costa Rica: Airfare, lodging and dining costs total $5,000 2. Hawaii: Airfare, lodging and dining costs total $7,000 3. British Columbia: Airfare, lodging and dining costs total $6,500

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SWOT Team Sweepstakes - Tickets to Local Sporting Event/ Objective: To give away several free tickets to local sporting events throughout the year to reward members with the most workout sessions.

Solution: Bally Total Fitness plans to give out free tickets to local sporting events. Members are eligible to be entered into the ticket sweepstakes after logging fifteen or more workouts per month. Tickets will be distributed through raffles and winners will be contacted.

Rationale: The rationale behind this objective is twofold. First, Bally Total Fitness is an establishment that promotes physical activity of all sorts. Athletes usually exhibit the peak of physical ability, and they use the most intense regimens of physical activity to achieve their goals. The years of toil and practice really show when one athlete defeats another; Bally Total Fitness feels that this kind of performance is inspiring to those looking to get or to stay in shape.

Attendance at sporting events motivates these individuals to stay in shape to work harder in the gym.

Furthermore, Bally Total Fitness is striving to become a nationwide company with a local focus. Giving away tickets to local sporting events is a great way to achieve this goal.

Scheduling: The scheduling of the free ticket giveaways is year-round. Bally Total Fitness locations are most highly concentrated in urban areas with three or more professional teams. The seasons of play for the various teams overlap, so there is ample opportunity for Bally to give away tickets to local sporting events yearround.

Cost: By establishing a partnership with local professional sports teams, such as arena football and baseball, Bally will receive promotional tickets to be given to selected members. In return, the professional sports teams will receive publicity on the Bally website as well as via Bally's social media outlets.

Employee Training/ Objective: To enhance members' workout experiences and improve membership retention through a nationalized employee training program.

Solution: Initial training will teach current managerial employees about proper customer service and how to make a professional impression on potential and current members. These conferences will be held bi-annually in ten regional locations throughout the United States with the highest concentrations of Bally fitness clubs. At these educational summits, the managerial staff will learn customer service techniques to share with their respective staffs. Moreover, ongoing in-service training for each Bally employee will ensure that new employees are taught about updated offers and promotions. Further online training requirements will be used to guarantee that newly hired employees are aware of Bally’s goals and company policies. Each employee must complete a training course online to achieve customer service certification.

Failure to do so will result in dismissal from the company's staff.

Rationale: Research and on-site visits show that Bally needs to take steps to achieve a positive image throughout all of their gyms. Consistent customer service among all Bally locations must be a top priority at all facilities in order to promote a new positive image.

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SWOT Team Scheduling: Initial training for managerial employees will take place in January and July. Ongoing in-service training for staff members will be performed throughout the year, especially before peak seasons. These training sessions will occur in November and December to prepare for the New Year’s resolution influx in memberships. Other training sessions will be held in February and March before the spring break peak season. Online training requirements for newly hired employees must be completed before he or she begins the first pay period.

Cost: • $20,000 x 2 times per year= $40,000 per regional location x 10 conference sites= $400,000 for managerial training • Online ongoing training and certifications for new employees= $30,000 • Total=$430,000

pics t-shirts with the "Bally Works for You" logo on the back.

Rationale: The experience will create a positive buzz about Bally Total Fitness while showing the fun and exciting side of getting in shape. Members' desire to compete at the Olympics will increase gym patronage in the weeks leading up to the competition, and the event may even encourage competitive spirits to purchase a membership in order to participate.

Scheduling: The event will take place annually in each location within the first week of May. Cost: $5,000 for t-shirts for limited distribution in locations nationwide

Bally Olympics/

Annual Charitable Giving/

Objective: To associate the brand with athleticism by giving ordinary people the chance to compete in Olympic events within their local Bally location.

Objective: To maintain an active involvement in philanthropic causes and raise awareness about the importance of cardiovascular health as well as prevention of heart disease.

Solution: Bally Total Fitness will hold annual Bally Olympics using standard gym equipment for several events, including a two-mile run/walk on the treadmills, erg-a-thon, weight lifting contest, plank holding contest, and cycle race on the bikes. The results will be tallied and released through the Bally Total Fitness Website to determine how the locations rank among each other, and event specifications (ie. number of miles to be completed in the bike race, amount of weights available to be lifted, etc.) will be consistent so that results will be easily comparable. All of the participants will be given Bally Total Fitness Olym-

Solution: Bally will donate $10 per new membership contract to The American Heart Association up to the amount of $500,000. Bally will reserve to right to use The American Heart Association's logo freely on all promotional items.

Rationale: According to Trey Laird, CEO of Laird + Partners in New York City, the targeted age group is the most likely to donate and be involved with philanthropic organizations. By establishing a relationship with The American Heart Association, Bally will show a continued

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SWOT Team involvement in the support of physical health and well-being, a cause that both Bally Total Fitness and the American Heart Association believe in.

Cost: $500,000

Future Recommendations • Expand guerilla marketing efforts (punching bags and city graphics) to other highly concentrated cities if the test markets are successful.

• Extend out of home with billboard advertising.

• Sponsor triathlon or half marathon.

• Partner with healthy fast food alternatives (ie. Subway) for discounts and promotions.

• Create a sales incentive plan for employees at high performing Bally locations.

• Collaborate with VH1's Celebrity Fit Club as their official fitness club.

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SWOT Team Media Region

Scheduling

Cost

Television FOX CBS ABC Print

NYC, LA, Chicago, & Philadelphia NYC, LA, Chicago, & Philadelphia NYC, LA, Chicago, & Philadelphia

Jan-May March March-July

$4,020,000 $847,000 $5,600,000

Fitness

National

Comsopolitan

National

SHAPE

National

Maxim Online Affiliate Websites Fitness.com Comsopolitan.com SHAPE.com Maxim.com Weather.com Hulu.com Search Paid Search Organic Search Social Media Websites YouTube.com Facebook.com Twitter.com Blogs Out of home

National

Jan, March, May, & Aug Jan, March, May, & Aug Jan, March, May, & Aug Jan, March, & May,

National National National National National National

Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec

$240,000 $300,000 $240,000 $300,000 $180,000 $180,000

National National

Jan-Dec Jan-Dec

$201,000 $5,000

National National National National

Jan-Dec Jan-Dec Jan-Dec Jan-Dec

$201,000 $150,000 $5,000 $201,000

Staircase ads

NYC, LA, & Miami

City Graphics

NYC, LA, & Chicago Miami, Philadelphia, Washington, D.C., & New York suburbs

Bus transit ads Guerilla Punching Bags TOTAL MEDIA

NYC, LA, & Atlanta

Jan, Feb, March, June, July, & Aug March, April, May, June, & July Nov, Dec, & Jan Nov & Dec

$569,200 $889,600 $648,000 $738,690

$600,000

$180,000

$241,800 $13,125 $16,550,415

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SWOT Team Television Advertising Fox-American Idol/

Rationale: American Idol is a wildly popular talent show with a regular episode pulling in over 30 million viewers. It also runs during the season prior to spring break and appeals to 18-24 year olds nationwide.

Scheduling: American Idol has a 10 week-long season.

The SWOT Team plans to advertise two times for each new Tuesday episode. The season starts in January and ends in May.

Spots per Episode New York Los Angeles Chicago Philadelphia Total Cost of American Idol 30 second spot

2 2 2 2

CBS-NCAA Men’s Basketball Final 4/ Rationale: With an average rating of 13, The NCAA Men's Basketball Final Four is an excellent opportunity to emphasize the tools Bally Total Fitness provides for its customers to get or stay in shape.

# of Weeks Cost 10 $1,280,000 10 $1,240,000 10 $800,000 10 $700,000 $4,020,000

Scheduling: During the Final Four, we will be placing two advertisements during each game. There are a total of two games all taking place in March.

Spots per Game New York Los Angeles Chicago Philadelphia Total Cost of NCAA Men's Basketball Final 4

2 2 2 2

Cost $86,000 $80,200 $56,000 $58,600 $847,000

30 second spot

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SWOT Team ABC-Dancing With The Stars/ Rationale: Dancing with the Stars beat American Idol out for the #1 rated show in the U.S. It is currently drawing 23 million viewers nationwide.

The target market will have ample opportunity to see Bally's television ads since Dancing with the Stars an average rating of 13 in the four television markets listed below.

Scheduling: Dancing with the Stars airs during a ten week time period from late March to its finale in May. The television ads will run twice during each Monday night episode.

Spots per Episode New York Los Angeles Chicago Philadelphia Total Cost of Dancing with the Stars

2 2 2 2

# of Weeks Cost 10 $1,200,000 10 $1,200,000 10 $800,000 10 $600,000 $3,800,000

30 second spot

ABC-The Bachelorette/ Rationale: The Bachelorette is five weeks long including a highly viewed and rated finale episode. Although the contestants are slightly older than the target market, the show is widely popular.

Bally's mission to help their clients achieve desirable physiques is easily associated with the attractive and physically fit contestants.

Scheduling: The Bachelorette is an excellent opportunity to extend the campaign out into “bathing suit season.� The show does not overlap with Dancing with the Stars, and it airs from May to July. This gives regular, Monday night ABC viewers more chances to see our ads

Spots per Episode New York Los Angeles Chicago Philadelphia Total Cost of The Bachelorette 30 second spot

2 2 3 2 3 2 2 2

# of Weeks Cost 4 $360,000 Finale $100,000 4 $360,000 Finale $65,000 4 $360,000 Finale $65,000 4 $400,000 Finale $90,000 $1,800,000

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SWOT Team Print

Magazines/ Objective: To reinforce Bally's presence among healthconscious magazine subscribers.

Campaign Print Strategy: Using 4-color, full-page ads in leading magazines, Bally will reach their target with a coded coupon within the ad for redemption at the reader's location of choice. These advertisements will serve to promote the new image of Bally. From the research findings using Simmons, Bally found Cosmopolitan, Fitness, SHAPE, and Maxim to be the most read by our target market- men and women 18-24. These magazines target people who are invested in their own health and fitness.

Campaign Print Scheduling: Through the incorporation of a flighting schedule of months that span the year, Bally's presence in the print world is steady. Its consistent voice in the media reinforces the climate and temporal changes that affect its current and potential members. January is chosen as a reminder of New Year's Resolutions and fresh starts. March is used to kick-off to bathing suit season. Lastly, print ads in May and August are used to announce the beginning and ending of summer, when people want to flaunt their bodies, whether poolside or on the beach.

Fitness Magazine/ Rationale: As a gender neutral reference for health-conscious, fitness-minded individuals, Fitness is a reliable magazine for those who regularly exercise. The magazine contains the most recent fitness trends and products on the market, appealing to a cutting edge target. Simmons research confirms that among people in the

target market who are members of fitness clubs, 19.6% read Fitness.

Scheduling: January, March, May, and August Cost: $142,300 x 4 months= $569,200

Cosmopolitan Magazine/ Rationale: Cosmopolitan is popular among female readers of all ages looking for advice and humor regarding sex, relationships, and fashion. The target market is Cosmo's main demographic - young, fashionable, sexy. This image complements Bally's desired image.

Research using Simmons shows that among the target market, 16.5% of those who are members of fitness clubs read Cosmopolitan.

Scheduling: January, March, May, and August

SHAPE Magazine/ Rationale: If you are a woman reading a magazine on the treadmill at the gym, chances are it's SHAPE. One of the most popular fitness magazines for women in the target market, SHAPE is known for having young celebrities on the cover and offering new exercise techniques and health advice. Of members of fitness clubs that are in the target market, 19.5% read SHAPE magazine regularly.

Scheduling: January, March, May, and August Cost: $162,000 x 4 months= $648,000

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SWOT Team Maxim Magazine/ Rationale: Maxim is notorious for sexy content. It is the male counterpart to Cosmopolitan without the fashion advice and the gossip. The magazine is popular among heterosexual males, mainly for its covers and lingerie-clad women. Men look to Maxim for advice on toning and bulking, hoping to one day attract a woman like one of the featured models and celebrities. Simmons reveals that 26.4% of fitness club members in the target market (18-24) read .

Scheduling: January, March, and May Cost: $246,230 x 3 months= $738,690

ONLINE

Affiliate Websites/

Online Magazine Strategy: Bally plans to advertise using online magazines' websites during the months that Bally is not advertising in their print forms. In addition, January will be chosen to reinforce the message on two mediums for an added emphasis during the New Year.

Fitness.com/ Scheduling: January, February, April, June, July, and November Cost: $40,000 per month x 6 months= $240,000

Cosmopolitan.com/ Scheduling: January, February, April, June, July, and November

Affiliate Websites Campaign Objective: To reach the target market in their most used medium.

Cost: $50,000 per month x 6 months= $300,000

Online Magazine Rationale: The online magazines' websites correspond with our print selections. It is another way to reach our target audience and possibly increase our frequency by having each of the magazines' websites reinforce their printed versions. Subscribers are often directed to the magazines' websites for additional information and promotional events. This is also a good way to reach those people who might not read the magazine but still look to its website. Moreover, online tracking can be used to see who is visiting the Bally website website and what magazines our target market are reading. The online magazines will use leaderboard or skyscraper format on each website and incorporate ads with a similar theme.

SHAPE.com/ Scheduling: January, February, April, June, July, and November Cost: $40,000 per month x 6 months= $240,000

Maxim.com/ Scheduling: January, February, April, June, July, and November Cost: $50,000 per month x 6 months= $300,000

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SWOT Team Hulu.com/ Rationale: In-stream spots and companion banners give Bally the opportunity to interact with the target market while they are viewing their preferred television programming online. Hulu allows their visitors access to a wide variety of shows 24/7. This medium complements the campaign theme of accommodation and personalization.

Scheduling: Constant throughout the campaign.

Estimated cost: $15,000 per month x 12 months= $180,000

SEARCH

Paid Search/ Rationale: Paid search is an interactive medium used by potential Bally members while they are collecting information and looking to join a gym. GoogleAdWords will include: "workout," "gym," and "fitness club." These keywords will help to drive traffic to the Bally website and encourage 7-day trial passes. The target market is highly likely to use the Internet for purchasing decisions.

Scheduling: Constant throughout the campaign Cost: $16,750 per month x 12 months= $ 201,000

Organic Search/

Weather.com/ Rationale: Weather.com users are 13% more likely to have a college or advanced degree than the average online user in our target market. The website users' household incomes are also likely to be $75,000 more than the average online user 18 and older. Because weather is local, weather.com gives Bally the opportunity to add a local feel to a national brand.

Rationale: With continuing modifications to the current Bally website, the brand will organically become primary search result on search engines such as Google. Outsourcing a webmaster with expertise in this field will eventually yield traffic to the Bally site at no cost.

Scheduling: Constant throughout the campaign Cost: No cost for ad space. Cost for maintenance and re-figuration of Bally website= $5,000.

Scheduling: Constant throughout the campaign.

Estimated cost: $15,000 per month x 12 months= $180,000

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SWOT Team SOCIAL Media Websites Youtube.com/

Rationale: With 71 million users per month, YouTube is the second largest search engine and has the sixth largest audience on the Internet, with a high percentage of viewers in Bally’s target. YouTube interactive ads reach their audience in an environment where consumers are likely to be influenced by a pervasive message. After running advertisements in the form of video, Bally can use YouTube Insight to track its successes as well as its opportunities for change and growth. YouTube Insight tracks online video viewership trends. Its analytical software allows anyone with an account to view detailed statistics about its uploaded videos. The website also provides this service to advertisers to help them better understand their audiences' lifestyles and media consumption trends.

Scheduling: January-December Cost: $16,750 per month x 12 months= $201,000

Facebook.com/ Rationale: Facebook has over 400,000,000 active users.

Through Facebook, advertisers can reach an estimated 28,143,060 young people between the ages of 18 and 24 in the United States.

This vast reach is possible by using Facebook's image and text-based ads that are created quickly to advertise web pages or Facebook events or pages.

3. Make modifications to maximize your results.

Scheduling: January-December Cost: $12,500 per month through the year =$150,000

Twitter.com/ Rationale: Twitter is one of the newest social media sites to be used by working professionals, celebrities, and non-profit organizations. Sharing information in the form of quick, blog-like posts, 80% of its usage is on mobile devices such as iPhones, where people can update and follow anywhere and anytime. Whether sharing new workout tips or healthy eating advice, Bally will constantly be in contact with its members and potential members through its Twitter page.

Scheduling: January-December Cost: No cost for ad space. Cost for maintenance= $5,000

Tracking: 1. Track progress with real-time reporting.

2. Insight into who’s clicking on your ads.

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SWOT Team Blogs/ Rationale: Respected blogs drive traffic, and any blog that says that Bally has improved their customer service is positive word-of-mouth. Bally ads on reputable industry professionals' blogs will help to associate the Bally name with a quality fitness experience.

Scheduling: During peak seasons, after New Years, and during summer months (January, February, March, June, July, and August) Region: New York City, Miami, and Los Angeles Cost: $200,000 x 3 test markets= $600,000

Scheduling: January-December Cost: $16,750 per month x 12 months= $201,000

OUT OF HOME Staircase Ads/

Objective: To use an unique, eye-catching graphics to attract consumers' attention to Bally's newlybranded image.

Strategy: Ads for Bally Total Fitness will be placed on stairs of high-traffic public areas.

Rationale: Placing the ads in public places will enhance visibility by reaching consumers in their everyday routines. Unique positioning and presentation of various shapes and sizes will create a “wow” factor. The ads also allow for extensive creative flexibility. By modifying sizes, shapes, and locations, the impact of each image is enhanced. The ads tell a story through multiple creative executions that improve visibility. These tactics will increase awareness of the Bally brand and make consumers more acquainted with the overall campaign theme. The staircase ads also incorporate the campaign's message with the workout aspect of the stairs themselves.

City Graphics/ Objective: To catch people’s attention and create word-of-mouth about the new Bally image.

Solution: Graphic decals of men and women in various workout positions will be placed throughout the city in eye-catching areas. Examples include an image of a man scaling a brick wall, an image of a man placed on the back of a mobile truck that looks as if he’s pushing the truck forward, an image of a woman in a yoga position on a city bench, and an image of a person doing a push-up along the sidewalk. These images would be surrounded with relevant copy and the Bally slogan. An example would be “Whatever your method, Bally Total Fitness works for you.”

Rationale: The images are eye-catching and unexpected because city-scapes and architectural objects are not usually associated with workout equipment. The decals will draw attention and create word-of-mouth through their strategic placement in high traffic areas of busy cities.

Scheduling: The images would be placed throughout the cities for a specified time period, launching

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SWOT Team in the peak outdoor seasons when people spend more time outdoors.(March, April, May, June, and July)

Guerilla

Region: New York City, New York, Los Angeles, and Chicago

Objective: To encourage consumers to view Bally Total Fitness as a way to "fight" their own personal stress, thus associating Bally with one of the proven health benefits of exercise.

Cost: $60,000 per city x 3 cities= $180,000

Punching Bags/

Solution: Because gym locations are mainly concentrated in major metropolitan cities with highly Bus Transit ads/ trafficked public transportation systems, a common source of irritation for daily comObjective: muters, the SWOT Team will give pedestrians To complement the campaign with an outin these cities a way to let off some steam door medium. while promoting the Bally's logo. Trademarked punching bags emblazoned with the Rationale: When the weather is colder during the winter Bally Total Fitness logo and generic face shots of an individual (labeled "Your Nagging Boss," months more people ride the buses as op"Your Overbearing Mother-in-Law," "Your posed to walking. Therefore, the ad reach Douchebag Ex-Boyfriend," etc.) will be hung and frequency will be higher during these strategically in subway stations that lead to a months. Also, using transit ads during these months will offset and slightly overlap with the Bally Total Fitness location. Guests will be encouraged to "take a punch," and printed on months designated for other media. This will the back of each punching bag will be copy keep brand awareness up throughout the reading, "Stressed? Bally Total Fitness works year. for you," followed by directions to the closest location and web address. Similar punchScheduling: ing bags will be placed at secured airport November, December, and January terminals near shopping and food vendors.

Passengers who have spare time between Region: federally mandated security screenings and Miami, Philadelphia, Washington, DC, and their departure time will have access to the New York suburbs bags.

Cost: • Miami: 21 stations x $12,600 per month= $37,800 (GRP= 80) • Philadelphia: 12 stations x $10,380 per month= $31,140 (GRP= 5) • Washington, DC: 25 stations x $42, 500 per month= $127,500 (GRP= 10) • New York suburbs: 14 stations x $15,120 per month= $45,360 (GRP= 25) • Total Transit Cost in 4 cities for 3 months=

Rationale: As the target market has a million responsibilities, priorities, and deadlines clouding their thoughts on a daily basis, the SWOT Team wanted to use the additional pressure of living in a busy city to emphasize the effect exercise has on reducing stress. The public will be surprised by the change in their monotonous daily commute. The punching bags

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SWOT Team will grab the target market's attention and remind travelers that Bally Total Fitness works for them regardless of their fitness goals.

Scheduling: The tactic will begin in the Thanksgiving/ Christmas holiday season in the first target market, New York City, which has notoriously hectic subways and five Bally locations in the Manhattan district, along with additional gyms in the surrounding Bronx, Jamaica, Brooklyn, and Jersey City areas. Additionally, the interactive displays will launch on the west coast in Los Angeles and in the south with Atlanta by hanging fifteen bags throughout the LAX and Hartsfield Jackson airports. The punching bags will be hung outside the crowded gates. The SWOT Team chose the Thanksgiving/Christmas season because of both the peak in travel and the additional holiday stress. This season also leads up to the New Year's resolution time when fitness goals are on everyone's minds.

If results in the test markets are found to be successful, punching bags will be set up in the New Jersey, Chicago, Philadelphia, and Washington D.C. markets as well by the following summer, another peak travel period.

The displays were chosen for these cities because of their popular transit systems and high concentration of Bally locations.

Cost: About $100/bag (http://www.everlast.com/ products.asp?dept=1281). The cost of purchasing, branding, buying to space to hang, and paying for the labor to put 3 bags in each of the 5 subway stations surrounding Manhattan locations is estimated to be $375 x 5 = $1,875. Additionally, the 30 bags in the LAX and Hartsfield Jackson airport would cost an additional $11,250 (30 x $375) for a total cost of $13,125 for both test markets.

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SWOT Team Campaign Flow Chart Jan Feb March April May

June July Aug Sept Nov Dec

Television FOX NBC CBS ABC Print Fitness Cosmo Shape Maxim Online Affiliate Websites Fitness.com Cosmopolitan.com SHAPE.com Maxim.com Weather.com Hulu.com Search Paid Search Organic Search Social Media Websites YouTube.com Facebook.com Twitter.com Blogs Out of home Staircase ads City graphics Bus transit ads Guerrilla Punching bags Public Relations "Bally Buzz" Online Newsletter Member Appreciation Night Promotional Item Online Video Competition Bally's "Burn It" Challenge Sweepstakes-Ticket Giveaways to Local Sporting Events Employee Training Bally Olympics Charitable Giving

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SWOT Team Campaign Budget Media Television FOX CBS ABC Print Fitness Cosmopolitan SHAPE Maxim Online Affiliate Websites Fittness.com Cosmopolitan.com SHAPE.com Maxim.com Weather.com Hulu.com Search Paid Search Organic Search Social Media Websites Youtube.com Facebook.com Twitter Blogs Out of home Staircase ads City graphics Bus transit ads Guerilla Punching bags Public Relations Club newsletter-"Bally Buzz" Online newsletter Member Appreciation Night Promotional Items Online Video Competition Bally's "Burn It" Challenge Sweepstakes-Ticket Giveaways to Local Sporting Events Employee Training Bally Olympics Annual Charitable Giving Contingency TOTAL IMC BUDGET

$4,020,000 $847,000 $5,600,000 $569,200 $889,600 $648,000 $738,690

$240,000 $300,000 $240,000 $300,000 $180,000 $180,000 $201,000 $5,000 $201,000 $150,000 $5,000 $201,000 $600,000 $180,000 $241,800 $13,125 $40,000 $5,000 $654,000 $350,000 $5,000 $18,500 $0 $430,000 $5,000 $500,000 $1,442,085 $20,000,000

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SWOT Team

Total IMC Budget by Type

Public Relations 10.0%

Contingency 7.2%

Guerilla 0.1%

TV 52.3%

Out of home 5.1%

Online 11.0%

Print 14.2%

Total Media Budget Social Media Websites 3.37%

Out of home 6.17% Guerila 0.08%

Search 1.24%

Affiliate Websites 8.70%

TV 63.24%

Print 17.19%

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SWOT Team Evaluation Plan Social Media: YouTube Insight can be used to track how many people view the YouTube advertisements, which allows anyone with an account to view detailed statistics about his/ her uploaded videos. This also will provide a better understanding of the demographics in Bally's YouTube audience. Facebook allows advertisers to measure the number of clickthroughs on the Bally Total Fitness Group and how people are using Facebook to access information about Bally. Finally, the number of people "following" Bally on Twitter and the number of tweets bloggers post online each day can also help to measure social media's effectiveness.

Webpage Traffic: Pre- and post- campaign hits on the webpage will be tracked to confirm whether advertisements were driving traffic to the Bally webpage. An Excel spreadsheet can organize daily, weekly, and monthly traffic reports to measure against the previous years' reports. These methods will ensure that advertisements led interested consumers to the site in search of more information.

Survey: To see whether Bally Total Fitness has improved its in our target market's minds, the Bally homepage will have a link that offers a free, two week membership for completing a survey inquiring about awareness and perceptions of the Bally brand and campaign advertisements. Also, anonymous surveys and comment cards will be placed in the locker rooms and at the front desk of each location to encourage members to voice their opinions of the "new" gym.

New Membership Inquiries: To determine the most successful vehicles for bringing people in to inquire about memberships, each employee must be trained to probe potential members who ask for a tour of the gym, purchases a membership, and calls for more information. Questions like "How did you find out about this Bally Total Fitness location?" should be reinforced in each training session. This information will help to reallocate more of the budget to media vehicles that seem to be the most popular source.

Newsletter: When people purchase memberships or come in to tour the gym, their email addresses will be collected and compiled for a mass mailing list to send the monthly online newsletter. This publication will allow Bally to track how many individuals receive monthly updates from Bally.

Marketing: To analyze whether the overall campaign was successful in terms of increasing the number of Bally members at each location, the number of memberships at each Bally gym from the previous fiscal year will be compared. Specifically, membership rates during "peak" months (ie. January, Spring Break, etc.) will be compared to see whether the campaign efforts increased Bally sales.

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SWOT Team