Presentation on theme: "Southend Market Segmentation Project How We Did It !"— Presentation transcript:
Southend Market Segmentation Project How We Did It !
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
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.
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.
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.
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
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
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
Pen Portraits - Example 9
Pen Portraits 10
11 Pen Portraits
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
Index Table of Percentages From Sport England Web Site
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
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
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.
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.
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)
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 with - exercise referral activities may be a way into to this group - Physical activity based interventions
Next Steps So far we have illustrated how we have used the local authority level market segmentation data to undertake some simple demand modelling It is possible using the MS Raw Data File to drill down to smaller areas of geography to do the same modelling. The Raw Data file is available on request from Sport England and comes in a CSV format which can be imported into geographical information systems. This enables you to undertake detailed mapping of your markets for sport and to also combine it with other GIS based data. At the simplest level it can be imported into an Excel Spreadsheet to enable you to quantify market demand in selected LSOA / MSOA areas. It is possible to extend this to wards if you match your local ward geography to the LSOA's (most LA's have staff able to do this)
This is a screen shot of the Southend raw data - imported into excel with the LSOA's aligned to Wards. Using Filters it is easy then to select wards or LSOA's to develop a more local segment count. This can then be combined with the index table to do local modelling as before. In the absence of GIS you can select specific LSOA or Wards as "catchment areas"
In this example we have applied a filter to the Paula column to display the Top 10 segment counts by Ward and Lower Super Output Area. This gives a focus for projects aimed at reaching Paula giving potential location and supporting communication methods such as direct mail.
Radial Catchment Analysis For the Southend analysis we used GIS Software "Map Info" in combination with the Southend Raw Data file to determine the segment profile within a 2 mile radius. It is possible to do this with drive time catchments if local planners are able to make the GIS road network data available. On the next slide we illustrate the individual MS profiles of the different facilities in Southend For each facility we then provided modelled demand for the core activities offered and used information from the MS profiles to inform marketing mix strategies We have also used the data from the index table which informs us of the segments most likely to have children and those parents interested in taking children to do sport. These segments are a key targets for marketing children's services.
Distribution of Growth Potential by Facility This slide illustrates how this growth potential is distributed across the 4 facilities and starts to introduce local issues. Across Southend 60.6% of the adult populations belong to segments which are more likely than average to participate. In the Belfair's catchment this increases to 65%, Chase has 62% from the higher participating segments and Shoeburyness 57 % from the higher participating groups.
Children's Activities In Southend - Target the Parents ! This slide just quantifies the size of the market for children's activities based on the fact that parent's are the customer and children are the consumers ! Clearly Tim, Alison, Jackie and Philip segments are important purchasers of children's activities. Using the LSOA / Ward data file it is possible to directly market to these parents. Many will be time pressured but may prioritise their children's activities above their own. Many of these segments will be your existing customers Segments to be targeted for growth are also those for whom activities for children will be important (Kev and Paula)
Examples of the Analysis at Selected Facilities Note - Those segments highlighted as Potential for Growth in the following slides are those identified as being strategically significant across Southend as a whole.
Belfairs Catchment By Market Segmentation Profile Belfairs Swim Centre - Segment Count 2 Mile Radius Potential for Growth These area the segments identified earlier because they are less likely than average to participate regularly (three times a week for 30 minutes) or they are the segments with a higher % "wanting to do more sport" 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 being the largest male segments and Paula and Leanne, the largest female groups and Roger and Joy as a mixed group 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.
Belfairs Swim Centre - Catchment Profile and Swimming Participation Potential for Growth Highlighted again these are the segments which generally provide most potential for growth across Southend. In this swimming example however some of the target segments are small in the Belfair's catchment in comparison to others. This is the case for Leanne and Paula in relation to other female segments in their age group. However the Leanne and Paula segments are participating less, a higher proportion of both will be on Zero days and a significant proportion of them want to do more. Jamie and Kev are also targeted segments for growth across Southend but may be less likely to choose swimming
Belfairs Swim Centre - Segments Ranked by Swimming Participation This table ranks the segments by participation in swimming in the previous 4 weeks, illustrating the importance of the female segments of Alison, Chloe, Jackie, Helena and Elaine as likely current users and the potential to develop the Leanne and Paula markets. Getting the offer right for women is crucial. Tim is the biggest male segment - he offers less growth potential for swimming, but will be interested in children's activities Alison and Jackie, will be key purchaser s and influencers for children's activities. Potential for Growth
The Chase Leisure Centre Catchment Area Analysis Potential for Growth
Chase Leisure Centre Size of segments - Rank Order Potential for Growth
Chase Leisure Centre - Gym Participation Rank Order by Segment Size Tim, Helena, Ben and Chloe top for going to the Gym These segments are also target markets for private sector, (also Philip) David Lloyd in St Laurence Ward and Fitness First in Victoria Ward Jamie and Leanne are sizeable markets with potential for growth
Shoeburyness Leisure Centre Shoeburyness has a lower proportion of the higher participating segments (57 %) compared to Southend as a whole (60.6%)
Shoeburyness Leisure Centre Size of Segments - Rank Order High participating Tim is the largest group There are a greater proportion of Kev and Paula's than the Southend average (target for growth) Roger and Joy are a significant group and are targeted for growth potential Philip and Elaine again are significant and have potential for further market penetration Potential for Growth
Shoeburyness - Demand for Key Activities
Activities for 65 + We also did some specific analysis of the 65 + market using the Southend Local Authority Profile This is "Super Group D" (Segments 17 to 19 in the Market Segmentation work) 21,969 in Total Ralph and Phyllis - 4369 (most active in super group) Frank - 5,751 Elsie and Arnold - 11,849 (least active ) and the largest" zero days group" across all segments Participation Data (APS 1)
Top 20 LSOA's for Super Group D Here we have used the Raw Data File in Excel and "sorted" the top 20 LSOA in terms of numbers of adults in Super Group D. This provides the LSOA's which should be a geographical focus for reaching older people Using the market segmentation profile we have again provided the key issues
Key Issues for Super Group D These are the segments with the least potential for growth in terms of NI 8 (only 16 % want to do more) But they are the largest zero days market - which may be more important to target for physical activity interventions The facility with the largest number of SGD within a 2 mile radius is Westcliffe (14,413) and Warriors (11330) The facility with the smallest number of SGD within 2 miles is Shoeburyness (5337) Southend Tennis and Leisure Centre has 6560 SGD within 2 Miles. The closure of Warriors and the redevelopment at STLC may have an impact on local access for SGD.
Marketing Issues for 65+ Segments Ralph and Phyllis Most popular activities –Walking –Swimming –Golf –Bowls Comfortably retired, likely to be sports and social club members and are volunteers Live in Thorpe, Southchurch, West Leigh and Chalkwell Frank Again walking, swimming, bowls and golf Participates less then Ralph and Phyllis Lives in Belfairs. Prittlewell and St Laurence Elsie and Arnold Most sedentary group Mostly single (widows and widowers) and predominantly female Live in Belfairs, Prittlewell, Chalkwell, St Laurence, Southchurch (many in sheltered accommodation) Those who are active - walking, bowls, dancing - light intensity. Safer neighbourhoods - big issue especially for walking
Further Analysis Using Active Places Power Sport England's Active Places Power is an online tool available to Local Authorities It is designed to assist in investment decisions and the development of infrastructure improvement strategies for sport. We used it to determine:- –the number of facilities (of different types) available in comparison to national and regional levels of provision –Facility supply v demand in Southend. Demand is determined by participation and socio economic data within the APP model. –Issues relating to Supply and Demand given our analysis of Southend's Market Segmentation Profile. In other words do we have the facilities to provide the activities that will be needed to grow participation in the targeted groups.
Example Active Places - Provision Indices
Supply v Demand
Active Places Analysis for Southend Key Points: Demand as measured within Active Places Power reflects your local socio - economic profile. Therefore under provision is real and is not a shortfall against a "standard" such as "per head of population" Findings Under provision of golf; Slight under provision of indoor bowls, which is reinforced by demand and supply balance data; Slight under provision of health and fitness facilities; Over provision of indoor tennis facilities; Sport halls and swimming pools more or less as expected and demand appears to be met comfortably by supply; and Under provision of STPs. Overall for the most part the challenge facing the borough is one of programming rather than the availability of mainstream spaces such as sports halls and pools. In terms of potential for growth - we have already noted the attractiveness of football to segments such as Jamie and Kev which underlines the importance of STP provision Golf, bowls and health and fitness are activities which appeal to the older segments
Active Places MS Data and the Marketing Mix Issues Some concluding thoughts and observations :- In Southend, there is sufficient core provision (sports halls and swimming pools. It is important to reflect on the marketing mix of existing provision and using the segment profiles to help understand customer needs and wants to break down barriers to participation. Potential for new products at existing facilities. Product - swimming, health and fitness and football are the most important activities for the groups targeted for growth. Childcare or family friendly activity is a major enabler. Price - Are the current pricing policies effective in relation to the target segments as cost is a major barrier to Jamie, Leanne, Paula and Kev ? Place / Programming -There is a shortfall in synthetic turf pitch provision which could be a factor in improving the football offer. We have identified a shortfall for golf and indoor bowls which will appeal to older segments. Programming of facilities does it reflect local needs - balance and timing.
Active Places MS Data and the Marketing Mix Issues Promotion - Use the catchment data and MS data to help reach target segments more effectively e.g. direct mail. Developing more effective marketing communications in relation to segments targeted for growth People - Do we have the best people in place to work with some of our target groups (coaches, leaders, volunteers) ? Processes - How easy is it for people to engage with the service - booking procedures, purchasing discount cards etc. Physical Evidence - Do we meet customer expectations. Service quality issues are important for growth and retention of users.
Next Steps Local authority level analysis - you can now get started ! Detailed analysis by selected MSOA/ LSOA Individual Local authorities in the East Region must request the raw data file from Sport England and complete the licence agreement Remember when you get the raw data file (CSV format - as a minimum it needs transferring into excel and further work to link ward geography to the LSOA's Importing into GIS makes the data even more powerful
Sport England Market Segmentation Update Sport England are in the process of updating the market segmentation material including adding greater detail to the segments and this will be available in the autumn of 2010 In the meantime the existing data remains current and live on the website. http://www.sportengland.org/research/market_segmentat ion.aspxhttp://www.sportengland.org/research/market_segmentat ion.aspx Don't forget the training resources on the Sport England web site http://www.sportengland.org/support__advice/local_gove rnment/apd_training.aspx http://www.sportengland.org/support__advice/local_gove rnment/apd_training.aspx