PRIZM NE Custom Target Analysis Table of Contents Introduction Summary Description of this Analysis Package Project Goals & Methodology Executive Summary Who are the targets? What are they like? Where can I find them? How can I reach them? Who Understanding PRIZMNE Profile Reports Profile Charts & Reports Target Group Profile Charts & Reports 2007 Spring Only Visitors 2007 Summer Only Visitors What Understanding Target Cluster Index (TCI) Reports Demographics & Lifestyles Reports by Target Where Understanding Maps & Reports Market Potential Index Report and Maps Target Group Reports 2007 Spring Only Visitors 2007 Summer Only Visitors How Understanding Target Cluster Index (TCI) Reports Media Usage, Magazine Readership, & TV Viewership by Target Next Steps A More Comprehensive Analysis Appendix PRIZMNE Cluster Narratives PRIZMNE Custom Target Analysis Who are the targets? What are they like? Where are the targets? How can I reach them? Summary Description of this Analysis Package The reports in this analysis help you answer four of the most fundamental marketing questions: Who are the targets that you most want to reach? What are they like? Where do they live? How can you reach them most cost effectively? Answering these questions is an essential step in designing a well-focused target-marketing program that will make the best use of your marketing dollars. The strategy for identifying your marketing targets is based on two tried and true observations: ! The best customers for your product are existing customers. The people who have already used your product or a similar one or other people like your existing customers are most likely your best customers. ! Birds of a feather flock together. In choosing a place to live, people tend to seek out neighborhoods compatible with their lifestyles, where they find others in similar circumstances with similar consumer behavior patterns. Once established, the character of a neighborhood tends to persist over time, even though individual residents come and go. By identifying the types of neighborhoods in which you find your existing customers, you can accurately predict the types of neighborhoods where you will find your customers in the future and develop target-marketing plans that will focus on those areas. The accompanying reports help you identify your targets (your existing and prospective customers) by determining their PRIZMNE Clusters -- the types of neighborhoods where they live. For convenience, a descriptive narrative of each cluster is provided at the end of this analysis. Copyright 2007, Claritas Inc. PRIZM NE Custom Target Analysis 1 Project Goals & Methodology Claritas performed an analysis of 2007 Spring and Summer Visitors from the client files provided to Claritas for PRIZMNE profiling and analysis. This report will examine the lifestyle and profile characteristics of households that have visited the Alabama Gulf Coast. The objectives of this study are to determine: ! The consumer market segments that have high potential to be Alabama Gulf Coast visitors. ! A set of target groups for future marketing efforts. ! The lifestyle preferences of these target groups to make it easier to develop practical marketing strategies. ! The geographic areas that contain high concentrations of Alabama Gulf Coast visitors. PRIZMNE Profiling Claritas received a unit record file of client data and addresses. Claritas geocoded the file - a process that assigns each record to a geographic unit based on the street address and ZIP Code information contained in the file. The household level was used for this analysis. Using the geocoded customer file, each customer record was assigned to one of the sixty-six PRIZM NE neighborhood lifestyle clusters. The customer records in the file were then summarized by PRIZM NE Cluster to produce the following profile: " 2007 Spring and Summer Visitors (97,391) The number enclosed in parentheses indicates the total count for the profile. Determining Base Counts An important step in the analysis is to determine the appropriate base definition for the 2007 Spring and Summer visitors so that the profile can be matched to the correct household base. The base definition is important since the measures of penetration and index are calculated using base area cluster distributions. Overall, the distribution of Alabama Gulf Coast Visitors is not so skewed in its penetration and concentration as to require a regionally specific base. Therefore, household counts for the entire United States were used as the base for profiling. Copyright 2007, Claritas Inc. PRIZM NE Custom Target Analysis 2 Forming Target Groups Target groups are a custom grouping of PRIZMNE Clusters that is relevant to a particular product or marketing objective. Target groups allow marketing activities to be more focused and allow the sixty-six cluster profile to be greatly simplified by collapsing the clusters into fewer groups for use in an actionable targeting strategy. Classifying customers into target groups will help you: ! Concentrate on those customers who have a known predisposition toward using a product ! Identify areas with high concentrations of the target groups ! Tailor direct marketing programs to reach specific target groups ! Determine what percentages of available marketing resources should be allocated to each target group ! Develop creative messages and marketing strategies that will appeal to each target group ! Target advertising programs to reach the specified target groups Copyright 2007, Claritas Inc. PRIZM NE Custom Target Analysis 3 Executive Summary Who are the targets? What are they like? Where are the targets? How can I reach them? This section provides a quick overview of the major findings of the analysis. This section provides a view of the overall results without the need to review all the reports and maps run for the analysis. For more detailed information, the reader can refer to the reports in the individual sections. Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 4 Who are the targets? Determining Base Counts An important first step in the analysis is to determine the appropriate base definition for the 2007 Spring and Summer Visitors so that the profile can be matched to the correct household base. The base definition is important since the measures of penetration and index are calculated using base area cluster distributions. Overall, the distribution of Alabama Gulf Coast Visitors is not so skewed in its penetration and concentration as to require a regionally specific base. Therefore, household counts for the entire United States were used as the base for profiling. PRIZMNE Profiling The following profile was developed for this analysis: " "2007 Spring and Summer Visitors (97,391) The number enclosed in parentheses indicates the total count for the profile. Profile Analysis From profile reports we can quickly see that 2007 Spring and Summer Visitors are predominantly from town and rural areas and span the PRIZM NE roster from the most socio-economically comfortable segments to those segments lowest on the scale. Ranked by index, the first quintile (approximate 20% subtotal) of the clusters includes 47% of the 2007 Spring and Summer Visitors. The second quintile contains 26% of the 2007 Spring and Summer Visitors. This means that if we were to market to base area households indicated by the clusters in the first two quintiles, we’d expect to reach 73% of the 2007 Spring and Summer Visitors - representing an index of 178. (We’d be 1.78 times as likely to reach our audience.) Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 5 Game Plan Categories Expansion Core NonTarget Conversion Index 100 # Percent of 2007 Spring and Summer Visitors 1.51% $ 2007 Spring and Summer Visitors Target Category Number of Clusters Percent of Base Households Percent of 2007 Spring and Summer Visitors Index Core Expansion Conversion Non-Target 22 2 1 41 40.23 2.08 2.10 55.59 72.45 2.68 1.65 23.21 180 129 79 42 Core Social Group S1 T1 T1 C1 T1 C1 C1 T1 T2 T1 T2 T2 T2 T2 T3 T3 T3 T4 T3 T3 T4 T4 Cluster 3 5 9 10 11 12 13 20 23 25 28 32 33 37 38 43 45 48 50 51 58 64 USA Base % Comp 2007 Spring and Summer Visitors % Comp Index Movers & Shakers Country Squires Big Fish, Small Pond Second City Elite God's Country Brite lites, Li'l City Upward Bound Fast-Track Families Greenbelt Sports Country Casuals Traditional Times New Homesteaders Big Sky Families Mayberry-ville Simple Pleasures Heartlanders Blue Highways Young & Rustic Kid Country, USA Shotguns & Pickups Back Country Folks Bedrock America 1.61 1.92 2.26 1.18 1.55 1.50 1.60 1.74 1.44 1.61 2.84 2.01 1.79 2.49 2.30 2.00 1.46 2.00 1.34 1.61 2.18 1.81 1.74 6.08 4.76 1.74 3.91 1.63 2.38 6.52 2.11 5.35 4.08 4.42 4.77 4.51 2.74 2.54 1.62 2.65 1.81 2.95 2.29 1.85 108 317 210 147 253 108 149 375 147 332 144 220 266 181 119 127 111 132 135 184 105 102 TOTAL 40.23 72.45 180 Nickname Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 6 Game Plan Categories (continued) 2007 Spring and Summer Visitors Expansion Social Group Cluster S1 S1 2 6 USA Base % Comp 2007 Spring and Summer Visitors % Comp Index Blue Blood Estates Winner's Circle 0.98 1.10 1.31 1.37 134 124 TOTAL 2.08 2.68 129 USA Base % Comp 2007 Spring and Summer Visitors % Comp Index Crossroad Villagers 2.10 1.65 79 TOTAL 2.10 1.65 79 Nickname Conversion Social Group Cluster T4 56 Nickname Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 7 Game Plan Categories (continued) Non-Target Social Group Cluster S1 U1 U1 S2 S2 S2 U1 S2 S2 S2 S3 S3 C2 U1 C2 U1 S3 U2 C2 C2 S3 S3 U2 C2 T3 S4 S4 C3 S4 S4 C3 U2 T4 T4 U3 C3 U3 C3 C3 U3 U3 1 4 7 8 14 15 16 17 18 19 21 22 24 26 27 29 30 31 34 35 36 39 40 41 42 44 46 47 49 52 53 54 55 57 59 60 61 62 63 65 66 Nickname Upper Crust Young Digerati Money & Brains Executive Suites New Empty Nests Pools & Patios Bohemian Mix Beltway Boomers Kids & Cul-de-sacs Home Sweet Home Gray Power Young Influentials Up-and-Comers The Cosmopolitans Middleburg Managers American Dreams Suburban Sprawl Urban Achievers White Picket Fences Boomtown Singles Blue-Chip Blues Domestic Duos Close-In Couples Sunset City Blues Red, White & Blues New Beginnings Old Glories City Startups American Classics Suburban Pioneers Mobility Blues Multi-Culti Mosaic Golden Ponds Old Milltowns Urban Elders Park Bench Seniors City Roots Hometown Retired Family Thrifts Big City Blues Low-Rise Living TOTAL Copyright 2007, Claritas Inc. USA Base % Comp 2007 Spring and Summer Visitors % Comp Index 1.51 1.23 2.02 0.91 1.05 1.31 1.79 0.96 1.63 1.84 0.92 1.46 1.21 1.17 1.85 2.18 1.31 1.52 1.25 1.30 1.25 1.19 1.18 1.67 1.31 1.50 0.97 1.12 1.01 1.04 1.17 1.71 1.58 1.59 1.32 1.07 1.15 1.11 1.69 1.12 1.43 55.59 1.48 0.35 0.96 0.69 0.69 0.80 0.16 0.86 1.24 0.76 0.63 0.51 0.61 0.49 1.45 0.60 0.59 0.16 0.95 0.48 0.62 0.41 0.22 1.03 1.03 0.23 0.20 0.31 0.36 0.28 0.27 0.26 1.09 1.19 0.04 0.28 0.10 0.38 0.42 0.03 0.01 23.21 98 29 48 76 66 61 9 89 76 42 69 35 51 42 78 28 45 10 76 37 49 35 19 61 79 16 20 28 35 27 23 15 69 75 3 27 8 34 25 2 1 42 PRIZMNE Custom Target Analysis 8 Target Groups Target groups were formed by selecting those clusters that indexed average and above (100+) and grouping those with similar demographic and socio-economic characteristics. The recommended target groups for 2007 Spring and Summer Visitors are: Target Group Clusters Social Group %Comp Index 2 Blue Blood Estates 5 Country Squires 6 Winner's Circle 13 Upward Bound 20 Fast-Track Families 32 New Homesteaders 33 Big Sky Families S1 T1 S1 C1 T1 T2 T2 1.31 6.08 1.37 2.38 6.52 4.42 4.77 26.85 134 317 124 149 375 220 266 241 1 Upper Crust 3 Movers & Shakers 9 Big Fish, Small Pond 10 Second City Elite 11 God's Country 12 Brite Lites, Li'l City 25 Country Casuals S1 S1 T1 C1 T1 C1 T1 1.48 1.74 4.76 1.74 3.91 1.63 5.35 20.59 98 108 210 147 253 108 332 183 23 Greenbelt Sports 37 Mayberry-ville 45 Blue Highways 48 Young & Rustic T2 T2 T3 T4 2.11 4.51 1.62 2.65 10.90 147 181 111 132 147 50 Kid Country, USA 51 Shotguns & Pickups 64 Bedrock America T3 T3 T4 1.81 2.95 1.85 6.61 135 184 102 139 28 Traditional Times 38 Simple Pleasures 43 Heartlanders 58 Back Country Folks T2 T3 T3 T4 4.08 2.74 2.54 2.29 11.65 144 119 127 105 125 Wealthy Families Upscale Couples Midscale Couples Mainstream Families Cautious Couples Targets account for 77% of all 2007 Spring and Summer Visitors customers and 44% of base area households and should be the focus of your targeting strategy. Off-Target households are not the focus of your marketing efforts. However, many will be reached due to unavoidable spillover inherent in any marketing effort. But by focusing your marketing dollars on the highest potential segments, your efficiencies are increased since you are ensuring that the best prospects are being reached with the right message in the right medium. Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 9 !2007!%&r()g!a),!%-..er!0arge12 2007 Spring and Summer Visitors Percent of Profile Wealthy Families Upscale Couples Midscale Couples Mainstream Families Cautious Couples Off Target % Down 26.85 20.59 10.90 6.61 11.65 23.40 100.00 23% Wealthy Families 26% Upscale Couples Midscale Couples Mainstream Families 12% Cautious Couples 21% 7% Off Target 11% Base Area Households 11% Percent of Base Area Households Wealthy Families Upscale Couples Midscale Couples Mainstream Families Cautious Couples Off Target % Down 11.13 11.22 7.39 4.75 9.32 56.19 100.00 Wealthy Families 11% Upscale Couples Midscale Couples 7% 57% 5% Mainstream Families Cautious Couples Off Target 9% 77% of Profile from 44% of Base = 175 Overall Index 10 Target Group Bar Chart 2007 Spring and Summer Visitors 0 100 200 Wealthy Families 241 Upscale Couples 183 Midscale Couples 147 Mainstream Families 139 Cautious Couples Non-Target 125 42 11 Copyright 2007, Claritas Inc. 300 What are they like? Using Target Group reports from the WHO section and Target Cluster Index reports from the WHAT section, we are able to tell a great deal about the 2007 Spring and Summer Visitor Target Groups. The following pages provide descriptions of each of the target groups. Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 12 Wealthy Families PRIZMNE Clusters 2 Blue Blood Estates 5 Country Squires 6 Winner's Circle 13 Upward Bound 20 Fast-Track Families 32 New Homesteaders 33 Big Sky Families Social Group Base Households %Comp 2007 Spring and Summer Visitors %Comp 2007 Spring and Summer Visitors Index S1 T1 S1 C1 T1 T2 T2 0.98 1.92 1.10 1.60 1.74 2.01 1.79 1.31 6.08 1.37 2.38 6.52 4.42 4.77 134 317 124 149 375 220 266 TOTAL 11.13 26.85 241 1) Wealthy Families are a wealthy target group, earning a median income over $78,888, largely comprised of white-collar executives between the ages of 35 to 54 who have earned their Bachelor’s or postgraduate degrees. These exclusive families typically live in homes worth over $500,000 and have the highest index of any target for being Asian background. Wealthy Families tend to balance work and home life, participating in a wide range of activities. For example, they often belong to the PTA and serve on school boards but also enjoy networking at business clubs. Although they often travel on business, they keep fit by playing golf, racquetball and skiing. It would also not be unusual to find them spending over $250 on family cell phone bills and buying soccer and baseball equipment for their children. Wealthy Families are also... More Likely to... Less Likely to... Buy Softball/Baseball Equipment Buy Soccer Equipment,1yr (A) Belong to a local PTA/Parents Association Domestic Business Travel by Airplane,3+,1year Own Racquetball Equipment Gamble at Atlantic City Bght from HSN/QVC/Other,6+ buys (A) Domestic Travel by Railroad Buy from White Castle Belong to AARP Rent Vehicle for Business,5+ Times,1year Buy Play Sports Equipment Buy Tennis Equipment Buy Home Gym Equipment Own Ski Boots/Skis Buy Travelers Checks Belong to a Veterans Club Buy from Papa Gino's Calling/Credit Card Calls,3-5 Buy from Rally's Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 13 Upscale Couples PRIZMNE Clusters Social Group Base Households %Comp 2007 Spring and Summer Visitors %Comp 2007 Spring and Summer Visitors Index S1 S1 T1 C1 T1 C1 T1 1.51 1.61 2.26 1.18 1.55 1.50 1.61 1.48 1.74 4.76 1.74 3.91 1.63 5.35 98 108 210 147 253 108 332 TOTAL 11.22 20.59 183 1 Upper Crust 3 Movers & Shakers 9 Big Fish, Small Pond 10 Second City Elite 11 God's Country 12 Brite Lites, Li'l City 25 Country Casuals 2) Upscale Couples are usually over the age of 35 with a significant population over 55. They are well-educated, white-collar professionals who are likely to work in professional white collar positions in the legal and management fields. These wealthy, highly educated couples (the best of any Alabama Gulf Coast groups) tend to live in homes worth over $500,000 and annually earn the highest income of all targets at $82,750. Travel plays a major role in Upscale Couples lives, typically traveling by plane for business and for pleasure three or more times per year. As would be expected they are members of frequent flyer programs with airlines such as USAir, Delta and United. Favorite destinations include Greece, Australia and Italy and also enjoy taking cruises to Alaska and Europe. When they are not traveling, this cohort enjoys spending time playing golf and tennis at their country club. Upscale Couples are also... More Likely to... Less Likely to... Belong to a Country Club Cruise to Alaska Cruise on Princess Cruise to Europe Travel to Greece Exercise,1 Time/week Buy Travelers Checks Buy from Rally's Buy Electronic Dolls/Animals Visit Any Six Flags Park Travel to Italy Member of USAir Frequent Flyer Program Contribute to PBS,$50+,1year Travel to U.S. Virgin Islands Rent Vehicle for Business,5+ Times a year Calling/Credit Card Calls,16+ Buy from Pizza Inn Belong to School/College Board Join CD/Tape Club Through Magazine/Newspaper Buy Basketball Shoes Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 14 Midscale Couples PRIZMNE Clusters 23 Greenbelt Sports 37 Mayberry-ville 45 Blue Highways 48 Young & Rustic Social Group Base Households %Comp 2007 Spring and Summer Visitors %Comp 2007 Spring and Summer Visitors Index T2 T2 T3 T4 1.44 2.49 1.46 2.00 2.11 4.51 1.62 2.65 147 181 111 132 TOTAL 7.39 10.90 147 3) Midscale Couples are typically under the age of 54 and are the least likely target to be married. Holding a high school education or less you can find them working in sales, blue collar work or in the service industry, which earns them an average of $43,796 per a year. Midscale Couples are a predominately a white target group with a very low presence of children living at home. Some of the activities they enjoy include the rodeo, hunting, fishing, and camping. This cohort will also will be a member of a Civic club or Veterans club. When they aren’t enjoying outdoor activities you can find them doing woodwork, watching NASCAR, or playing billiards. Midscale Couples are also... More Likely to... Less Likely to... Own Personal Watercraft Use Alltel for Cell Phone Service Use US Cellular for Cell Phone Service Own Rowing Machine Stay Days Inn on Vacation Travel to Any Western European Country Rent Vehicle for Business,5+ Times,1year Travel to Australia/New Zealand Travel to Japan Foreign Travel by Railroad Go Hunting Expect to Get Married Buy Flea/Tick Product Use CellularOne for Cell Phone Service Buy Camping Equipment Cruise to Alaska Buy from Arthur Treacher Travel to Central/South America Contribute to PBS,$50+,1year Travel to Ireland/UK Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 15 Mainstream Families PRIZMNE Clusters 50 Kid Country, USA 51 Shotguns & Pickups 64 Bedrock America Social Group Base Households %Comp 2007 Spring and Summer Visitors %Comp 2007 Spring and Summer Visitors Index T3 T3 T4 1.34 1.61 1.81 1.81 2.95 1.85 135 184 102 TOTAL 4.75 6.61 139 4) Mainstream Families is a group is concentrated in lower-middle-class neighborhoods in small towns and rural areas. With median incomes of just over $35,000, they are usually renting homes. With a very low level of education, jobs in farming, the service industry and blue-collar occupations are the norm. Mainstream Families are ethnically diverse with the highest indices of any AGC target for the presence of African Americans and Hispanics. Like many residents of remote communities, these conservative consumers tend to prefer outdoor activities like camping, target shooting, fishing, hunting, and horseback riding. They play the weekly lottery, eat at a variety of fast food restaurants and frequent the bowling alley. It’s also not unusual to find them enjoying an evening out at a night club. Time at home includes watching television or a movie they purchased through a club or playing board games with the family. Mainstream Families are also... More Likely to... Less Likely to... Buy from Mazzio's Buy from Sonic Use Alltel for Cell Phone Service Join CD/Tape Club Through Online Offer Buy from Krystal Hamburgers Cruise to Alaska Rent Vehicle for Business,5+ Times,1year Member of Any Frequent Flyer Programs Gamble on Cruise Ship Travel to Italy Own Rifle/Shotgun Fan of Truck Racing/Pulls Go Hunting Ride Motorcycle Join CD/Tape Club Through Direct Mail Offer Member of Continental Frequent Flyer Member of Delta Frequent Flyer Program Belong to a Human Rights Organization Contribute to PBS,1year Buy from Bertucci's Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 16 Cautious Couples PRIZMNE Clusters 28 Traditional Times 38 Simple Pleasures 43 Heartlanders 58 Back Country Folks Social Group Base Households %Comp 2007 Spring and Summer Visitors %Comp 2007 Spring and Summer Visitors Index T2 T3 T3 T4 2.84 2.30 2.00 2.18 4.08 2.74 2.54 2.29 144 119 127 105 TOTAL 9.32 11.65 125 5) Cautious Couples are the oldest Alabama Gulf Coast group and are mostly married couples (55 years of age and over) whose earnings fall in the mid-range income bracket, at $41,768. This cohort is well represented in nursing homes or in their own homes that are often valued at under $80,000. These comfortable seniors are enthusiastic road warriors who prefer to see the countryside at home or abroad from the windows of their RV’s. As would be expected, it would not be unusual to see this target group at public and private campgrounds. Other pastimes they enjoy include gambling, buying collectibles and gardening. They are also actively involved in clubs of all types, from veterans and church organizations to fraternal and civicgroups. Cautious Couples are also... More Likely to... Less Likely to... Use US Cellular for Cell Phone Service Use Alltel for Cell Phone Service Domestic Travel by Recreation Vehicle Buy Garden Supplies by Mail/Phone Buy from Shoney's Belong to a local PTA/Parents Association Membr of United Airlines Frequent Flyer Gamble at Caribbean Island Rent/Buy Video at Warehouse Travel to Switzerland Use CellularOne for Cell Phone Service Do Bird Watching Belong to a Veterans Club Own Rifle/Shotgun Buy from Hardee's Buy Softball/Baseball Equipment Visit Any Six Flags Park Own/Lease Ericsson Brand Cell Phone Buy Latin Music Visit Any Disney Theme Park in FL Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 17 Where are the targets? DMA Market Potential: The top ten DMA markets in United States ranked by Market Potential Index are: DMA 745 Fairbanks, AK 747 Juneau, AK 523 Burlington et al, VT-NY 705 Wausau-Rhinelander, WI 540 Traverse City et al, MI 743 Anchorage, AK 558 Lima, OH 500 Portland-Auburn, ME 576 Salisbury, MD 760 Twin Falls, ID Households Index 35,709 28,252 335,315 184,443 251,984 148,444 71,617 413,803 150,523 61,905 190 187 151 151 148 148 148 146 145 144 Here is a summary by quintile of the DMA MPI Map: Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 % Comp % Pen Index 26.33 23.97 20.51 18.66 10.53 0.11 .10 0.09 0.07 0.05 132 117 102 86 60 Copyright 2007, Claritas Inc. PRIZMNE Custom Target Analysis 18