About Aerofit
Aerofit is a leading brand in the field of fitness equipment. Aerofit provides a product range including machines such as treadmills, exercise bikes, gym equipment, and fitness accessories to cater to the needs of all categories of people.
Business Problem
The market research team at AeroFit wants to identify the characteristics of the target audience for each type of treadmill offered by the company, to provide a better recommendation of the treadmills to the new customers. The team decides to investigate whether there are differences across the product with respect to customer characteristics.
- Perform descriptive analytics to create a customer profile for each AeroFit treadmill product by developing appropriate tables and charts.
- For each AeroFit treadmill product, construct two-way contingency tables and compute all conditional and marginal probabilities along with their insights/impact on the business.
Feature and Description:
Product Purchased: KP281, KP481, or KP781 Age: In years Gender: Male/Female Education: In years MaritalStatus: Single or partnered Usage: The average number of times the customer plans to use the treadmill each week. Income: Annual income (in $) Fitness: Self-rated fitness on a 1-to-5 scale, where 1 is the poor shape and 5 is the excellent shape. Miles: The average number of miles the customer expects to walk/run each week
Product Portfolio:
• The KP281 is an entry-level treadmill that sells for $1,500.
• The KP481 is for mid-level runners that sell for $1,750.
• The KP781 treadmill is having advanced features that sell for $2,500
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💡 Insights & Recommendations
Insights
- Income Insights:
Male customers tend to have higher incomes compared to female customers.
Married individuals, regardless of gender, generally have higher incomes than their single counterparts.
- Fitness and Income Correlation:
Individuals with higher incomes tend to perceive themselves as in better physical shape.
Older customers show increased concern about their fitness levels as they age.
- Product Preferences:
Married individuals tend to purchase the KP281, possibly due to its lower price point.
The KP281 and KP481 are equally popular among both genders, while the KP781 is more favored by males, likely due to the higher income bracket.
- Correlation Analysis:
A weak positive correlation (0.057) between age and fitness level exists.
A moderate positive correlation (0.38) exists between age and miles run/walked weekly.
Income shows a stronger positive correlation (0.55) with self-rated fitness levels.
- Customer Profiling for Products:
KP281: The most affordable treadmill, popular among both genders in the 25-30 age group. Younger or beginner-level customers favor it with an average fitness rating and an income range of Rs40,000 to $50,000.
Recommendations
- Target Income Segments:
Aerofit should promote the KP281 (₹1,500) to customers with below-median incomes, while the KP481 (₹1,750) and KP781 (₹2,500) should be targeted toward above-median income segments. Specifically, the KP781 could be marketed toward higher-income males to boost sales.
In the meantime, Aerofit should focus on increasing female customers by promoting its brand within this segment to generate more orders from women.
- Special Promotions:
Aerofit can target high-income individuals to drive sales of premium products, while offering seasonal discounts on entry-level treadmills (like the KP281) to attract lower-income customers. Special promotions during festivals may encourage customers to invest in fitness equipment to improve their appearance and health.
- Marketing Campaigns:
Launch fitness campaigns with inspiring taglines to attract customers of all age groups, especially fitness enthusiasts. These campaigns should appeal to a broad demographic to encourage a healthy lifestyle.
- Female Customer Base:
Given the lower percentage of female customers purchasing fitness equipment, Aerofit should run targeted advertisements and campaigns that promote fitness through exercise equipment, focusing on women’s health and wellness.
- KP781 Promotion:
The KP781 (₹2,500) is Aerofit’s premium product, but its higher price point may deter potential buyers. Aerofit should promote the KP781 by leveraging social media and organizing workshops at corporate offices and educational institutions to highlight the treadmill's advanced features.
Encourage existing Aerofit users to upgrade to the KP781 through personalized recommendations and customer support services.
- Product Development:
Aerofit should conduct extensive market research to understand the needs of customers over the age of 50 and develop products or promotional strategies tailored to this demographic.