Southend Market Segmentation Project How We Did It !
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Southend Market Segmentation Project How We Did It ! Slide 2 Purpose To explain how the Sport Industry Research Centre at SHU approached the catchment area analysis of Southend's Leisure Facilities. The Concept The Tools Needed - Data Resources How to Use Them Local Authority Level - Simple Modelling Techniques LSOA / Ward and Catchment Area Analysis Linking to Active Places Power Slide 3 The Concept Sport England working with Ipsos Mori have developed 19 market segmentation profiles for the adult population (18+) which explains participation in Sport and active recreation. The segments have been developed using data from Active People Survey (1), Taking Part and additional socio economic data from Experian. Because the data has used Mosaic techniques it is possible to assign a sport market segmentation profile to every adult in every household in the UK. Slide 4 The Concept In very simple terms if you know the market segmentation profile of a particular area you can develop an understanding of your local market in terms of:- A breakdown of the numbers in each segment. Motivations, attitudes and behaviours in relation to participation in sport Socio - economic profile Activities likely to attract particular segments Insights into how to "communicate" with them in marketing terms This is held in a raw data file held by Sport England which provides this data down to Lower Super Output level. Slide 5 The Concept Understanding your local market segmentation profile enables you to undertake better targeting and "positioning" of your services Understanding the segments in terms of motivations, attitudes, and potential barriers gives you powerful information to develop a better marketing mix. Slide 6 The 19 Segments - National Profile 6 Segment NameForename (s) %% PopulationMaleFemaleIn million Competitive Male UrbanitesA01Ben6.413.302,521 Sports Team DrinkersA02Jamie5.411.102,127 Fitness Class FriendsA03Chloe6.9013.42,717 Supportive SinglesA04Leanne4.709.11,851 Career Focussed FemalesB05Helena509.71,969 Settling Down MalesB06Tim9.419.303,702 Stay at Home MumsB07Alison4.608.91,812 Middle England MumsB08Jackie407.71,575 Pub League Team MatesB09Kev5.81202,284 Stretched Single MumsB10Paula3.807.41,497 Comfortable Mid-Life MalesC11Philip7.81603,072 Empty Nest Career LadiesC12Elaine5.3010.22,087 Early Retirement CouplesC13Roger & Joy6.2 6.32,442 Older Working WomenC14Brenda407.61,575 Local Old BoysC15Terry3.4701,339 Later Life LadiesC16Norma203.6788 Comfortable Retired CouplesD17Ralph & Phyllis3.752.41,457 Twilight Year GentsD18Frank3.57.101,378 Retirement Home SinglesD19Elsie & Arnold8.32.513.83,269 Slide 7 The Basic Tools Needed The 19 Market Segmentation Pen Portraits Can be downloaded from the Sport England Web Site Provide an overview of the key characteristics of each segment http://www.sportengland.org/research/market_segmentation.aspxhttp://www.sportengland.org/research/market_segmentation.aspx Your Local Profile at Local Authority Level Provides a breakdown of the % in each segment in your LA and compares it to national and regional averages http://www.sportengland.org/research/market_segmentation/geographical_b reakdowns.aspxhttp://www.sportengland.org/research/market_segmentation/geographical_b reakdowns.aspx The Index Tables Can be downloaded from the Sport England Web Site Provides the detailed data about each segment http://www.sportengland.org/research/market_segmentation/our_market_se gments/index_tables.aspxhttp://www.sportengland.org/research/market_segmentation/our_market_se gments/index_tables.aspx Slide 8 Training Resources The Sport Industry Research Centre at SHU has developed a number of training videos to support the use of the Active People Diagnostic and Market Segmentation data These can be found on the Sport England Website http://www.sportengland.org/support__advice/local_gove rnment/apd_training.aspx http://www.sportengland.org/support__advice/local_gove rnment/apd_training.aspx Modules 5 provides an introduction to Market Segmentation and Module 6 takes you through the techniques used in the Southend Case Study Slide 9 Pen Portraits - Example 9 Slide 10 Pen Portraits 10 Slide 11 11 Pen Portraits Slide 12 Local Profiles - Southend Example with Additional Analysis The largest segment group is 19 (Elsie and Arnold) at 9.5% and is above the national and regional average Southend also has a greater proportion of Early retired couples (Roger and Joy ) than the national average 7.6% which is 1.48% above average 60.6 % of Southend's adults population belong to segments which are more likely than average to participate and 39.4% to those less like than average to participate Of this 39.4% less likely than average to participate, 32.7% comes from the 55 and 65+ segments Slide 13 Index Table of Percentages From Sport England Web Site Slide 14 Index Table of Percentages For each segment it gives the % likely to have that particular variable or attribute This is based on National data but the important point is that Ben is a Ben wherever you are! You can use this data with your own local profile to model local demand. For example from the index tables we know that 33.4% of Bens like to play football - if you apply this to your local profile for Be you have a simple demand model. Southend - Bens = 6% of adult population of 124082 (7445) Ben's interested in Football across Southend (33.4%) = 2489 Slide 15 Simple Analysis at Local Authority Level Just using your local authority profile in combination with the index table (of percentages) it is easy to do some simple modelling In the next slides we illustrate how we did this for Southend at a authority wide level We created a spreadsheet which converts the Southend market segmentation profile into real numbers for each segment. Then we applied the AP data from the index table which breaks down participation by zero days, 1 to 11 days and 12 days (in a 4 week period). We also added the data from the index table which gives the % who "would like to do more sport." The purpose of this was to try and develop a better understanding of where future growth in participation might come from and which segments should be targeted. This template is available for you to use with your own local authority profile Slide 16 This illustrates that there are 36903 people doing something and 58344 people who would like to do more. The table to the right illustrates the segments which are significant in size and would seem to have potential for growth (the "Soft Underbelly") Of the segments which are less likely to participate at the moment Jamie and Kev are the largest male segments, Paula and Leanne are the largest female groups and Roger and Joy as a mixed gender segment Philip and Elaine are included for consideration they are higher participating segments, but the size of this group and the % wanting to more make them a target for further market penetration. Whilst Elsie and Arnold are the largest group in absolute numbers - they will provide least return on investment in terms of growth potential. Slide 17 Modelling Swimming Demand In this table we have used the same method - but using the data from the index table on swimming This illustrates actual participation in swimming in the 4 weeks prior to the AP Survey and the % in each segment likely to take part in aquatic activities, in order to help model demand for swimming across the authority In terms of our "potential for growth" segments, swimming is like to be more attractive to Leanne, Paula and Elaine. Whilst the participation rate for swimming is less for Roger and Joy - the size of this segment makes it attractive. Slide 18 Modelling Demand for Other Sports In this example we have modelled demand for the key sports offered by Southend Tennis and Leisure Centre In this example we have treated the catchment as the whole authority as STLC is a major facility Having identified the target markets for growth we have then used the Market Segmentation Pen Portraits to extract key messages for the facility (next slide) Slide 19 Southend Tennis and Leisure Centre SegmentSports most likely to be of Interest (Related to Centre) Key Marketing Mix Issues JamieFootball, Martial ArtsCost, social approach (e.g. 5 a side leagues -Power league) LeanneSwimming gym aerobics classes dance based exercise body pump, Cost of admission and help with childcare (not for all Leanne's). Key Motivations keeping fit and losing weight KevFootball, Boxing, Martial ArtsCost, Better facilities, again football leagues, Lads and Dads activities, PaulaSwimming AerobicsKey motivation is to take children but is price sensitive Philip (46 - 55)Football Racket Sports Gym - Likely to be a significant number of Philips already using the centre, but there are lot of Philips in Southend and a significant proportion want to do more. Opportunity for further market penetration but you are probably competing with the David Lloyd Club Time is a factor, but also will be a key purchaser of children's activities. More likely to take part in organised competitions and likes a "club" approach. Brenda (46 - 55)Swimming, Aerobics, Dance ExerciseSimilar mix to Paula, Likely to walk to centre (Low Car ownership) Cost is an Issue, likely to take grandchildren Elaine (46 - 55)Swimming Gym Aqua Yoga, Pilates - More likely to be a member of a health and Fitness club. Again key market for David Lloyd Losing Weight, Keeping Fit Roger and Joy (56 - 65) Swimming Bowls Aqua WalkingTime is a factor and will be doing other things even though work is reducing - committees and voluntary work ! More likely to be a member of a sports club, motivated by keeping fit. Again target market for David Lloyd Terry (56 - 65)A difficult segment ! - more into fishing, darts, snooker (low intensity social activity) Not participated from a young age and therefore not interested in the sports on offer. Not health focused Cost and someone to go