1. Customer Insight Report Victoria’s State Owned Cultural Institutions Pacific Micromarketing – August 2010 Disclaimer: Pacific Micromarketing has produced this report using data owned by Pacific Micromarketing and third parties. Whilst every care has been taken by the owners of the data to ensure the accuracy of the data within this report, the owners of the data (including the State, Territory and Commonwealth Governments of Australia) do not make any representations or warranties about its accuracy, reliability, completeness or suitability for any particular purpose and, to the extent permitted by law, the owners of the data disclaim all responsibility and all liability (including without limitation, liability in negligence) for all expenses, losses, damages (including indirect or consequential damages) and costs which might be incurred as a result of the data being inaccurate or incomplete in any way and for any reason.

2. MOSAIC Report for: Nine Government Owned Cultural Organisations in Victoria IN STRICT COMMERCIAL CONFIDENCE

3. Contents Background and Objectives Methodology Key Findings Mosaic Group and Type Profiles Profile Importance Ranking Profiles of Top 3 Variables Growth Areas Household Overlap Appendix A – Mosaic Group Summary Descriptions Appendix B – How to Read a Profile IN STRICT COMMERCIAL CONFIDENCE

4. Background and Objectives Pacific Micromarketing (PMM) and Arts Victoria worked together over 2010 to assist the arts community in building a better understanding of their audiences using Mosaic, a geo-demographic segmentation tool, as the common currency. There is a wider need within the Victorian arts community for audience benchmarking analysis and segmentation: to enable organisations to better understand, diversify and grow audiences to provide a more accurate total market view to inform marketing activities to identify opportunities for collaboration to assist developing partner/sponsorship/philanthropic strategy Pacific Micromarketing was engaged to produce aggregated profile of audiences associated with Government-owned cultural organisations IN STRICT COMMERCIAL CONFIDENCE

5. Methodology Pacific Micromarketing’s full suite of segmentation data was appended to Victorian Government- owned cultural organisations’ audience data. Analysis was undertaken to determine which segmentation variables provide the most effective insight into the audience data. The segmentation variables included in this analysis are: – Mosaic Group and Type– Estimated Income – Mosaic Factors – Affluence – Estimated Age– Length of Residence – Relations– Adults at Address – Lifestage– Children at Address Profiles of the three most indicative segmentations have been included in this report. An overlap analysis of the households associated with each of the organisations was performed for all households in the Greater Melbourne Region. Regionally based households were not included as they fall outside this area. It is IMPORTANT to keep in mind that the databases supplied to PMM are limited to ticket buyers and members whose information is captured, and are not a representation of all visitations or ticket purchases, which means that the analysis is not a complete picture of all those who come through the door. IN STRICT COMMERCIAL CONFIDENCE

6. Non-CBD Influence While the majority of the Victorian Government-owned cultural organisations are in the Greater Melbourne Region, one organisation is based in the Greater Geelong Area. These two base areas were combined for the insights analysis and because of this, the index scores will slightly lean towards any dominant variable within the Greater Geelong Area. This effect however is minimal, with negligible variations in the overall index scores apart from the index score associated with Mosaic Group H. It increased from an index of 64 (with only the Greater Melbourne region included in analysis) to an index of 96 (when the Greater Geelong Area is included in analysis). IN STRICT COMMERCIAL CONFIDENCE

7. Key Findings The key findings for Victorian Government-owned organisations’ ticket buyers and members show that: They are more likely to come from highly educated professional households living in either inner city areas and outer city suburbs. They are more likely to be culturally diverse, socially aware, lead busy lifestyles, and be active. They come from varying family structures and mixed age groups but trends show that there is a strong likelihood for ticket buyers and members to come from households associated with tertiary student home stayers or young and successful inner city households. This indicates that there could be a relationship with younger audience members aged under 25 not picked up through the analysis. Approximately 11.5% of ticket buyers and members are found on two or more Victorian State Owned cultural institutions’ databases, indicating evidence of multi-art form consumption. IN STRICT COMMERCIAL CONFIDENCE

8. Mosaic Group* audience Distribution There are four distinct Mosaic Groups which make up in total 69.4% of the Victorian Government- owned organisations' ticket buyers and members. Mosaic Group C – Young Ambition (19.7%), Mosaic Group F – Metro Multiculture (18.4%), Mosaic Group A – Privileged Prosperity (15.7%) and Mosaic Group B – Academic Achievers (15.5%). * See Appendix A for Mosaic Group Summary information IN STRICT COMMERCIAL CONFIDENCE

9. Mosaic Group Index Scores Mosaic Group C – Young Ambition is the highest ranked Group. An Index* of 234 illustrates an over representation in the databases of nearly two and a half times the base area average. While Mosaic Group F - Metro Multiculture make up a large portion of ticket buyers and members, they are under-represented due to the large portion of these households within the base area. NB: The dotted line in Mosaic Group H represents the Geelong Influence (above the line) * See Appendix B for information on Mosaic terminology IN STRICT COMMERCIAL CONFIDENCE

10. Mosaic Group Table* Mosaic Group C – Young Ambition is the highest ranked Group. An Index of 234 illustrates an over representation in Victorian Government-owned organisations' ticket buyers and members to be nearly two and a half times the base area average. Mosaic Group B – Academic Achievers and Mosaic Group A – Privileged Prosperity are the next two highest ranked groups with an index of 157 and 153 respectively. While Mosaic Group F - Metro Multiculture do make up a large portion of Victorian Government-owned organisations’ ticket buyers and members. They are under-represented due to the large portion of these households within the base area. * See Appendix B for information on how to read Mosaic tables IN STRICT COMMERCIAL CONFIDENCE

11. Mosaic Group Key Findings There are three key Mosaic Groups that are over represented when compared to VIC Metro and Greater Geelong households. These Mosaic Groups are: Mosaic Group C – Young Ambition (19.7% of ticket buyers and members, index of 234)  Educated and high-earning young singles and sharers that live in inner suburbs.  Exercising, going out and technology are common interests. Mosaic Group B – Academic Achievers (15.5% of ticket buyers and members, index of 157)  Wealthy areas of educated professional households.  Enthusiasts of cultural and sporting events, food, wine and national newspapers. Mosaic Group A – Privileged Prosperity(15.7% of ticket buyers and members, index of 153)  The most affluent families in the most desirable locations.  Active lifestyles and keen users of technology. In the VIC Metro and Greater Geelong region there are 424,706 households that fall within these three Mosaic Groups totalling 28.5% of all households. IN STRICT COMMERCIAL CONFIDENCE

12. Mosaic Type* audience Distribution Mosaic Types C09 – Bright Futures (12.2%), B06 – Informed Affluence (8.8%), F20 – Intercontinental Connections (6.8%), A02 – Studied Wealth (6%), F21 – New Wave (5.8%) and B07 – Conscious Consumers (5.7%) represent the top six Mosaic Types of Victorian Arts Agencies' ticket buyers and members. Combined these six Groups make up 45.2% of Victorian Government-owned organisations' ticket buyers and members. * See http://www.mosaicaustralia.com.au/ for further information about Mosaic Typeshttp://www.mosaicaustralia.com.au/ IN STRICT COMMERCIAL CONFIDENCE

13. Mosaic Type Table* (Over 150 Index) There are six key Mosaic Types that are highly over-represented amongst Victorian Government- owned organisations' ticket buyers and members. Mosaic Type A01 – Portfolio Management (Index of 297), Mosaic Type C09 – Bright Futures (Index of 265) and Mosaic Type A02 – Studied Wealth (Index of 222) scored the highest of these six. While Mosaic Types F20 and F21contribute to a large portion of the Victorian Government-owned organisations' ticket buyers and members (12.6%), owing to their large representation of households within the base area these two types didn’t show any significant over-representation. These top six Mosaic Types contain all the Mosaic Types which make up Mosaic Group C – Young Ambition. * See Appendix B for information on how to read Mosaic tables IN STRICT COMMERCIAL CONFIDENCE

14. Mosaic Type - Key Findings The six Mosaic Types that have indices more than 150 (greater than one and half times over- represented) are: A01 – Portfolio Management (2.1% of database, index of 297)  High-spending, established families in the wealthiest suburbs.  Enjoy regular holidays, evenings out and prestige brands.  Comprises mature families with older children in secondary or higher education. C09 – Bright Futures (12.2% of database, index of 265)  Thriving students or professional renting flats and terraces.  Very active, making the most of living in the city.  Generally aged between 20 and 34 with high individual incomes providing plenty of spending money. A02 – Studied Wealth (6% of database, index of 222)  Well educated, maturing families in prime suburbs.  Often enjoy events, nights out or playing sport.  Successful mature baby boomer families with many tertiary students still living at home. IN STRICT COMMERCIAL CONFIDENCE

15. C11 – Rising Wealth (4.5% of database, index of 202).  Educated and affluent young professional couples in inner city areas.  Travel, sport and culture are keen interests.  Take full advantage of all available activities for residents of the most inner city suburbs. B06 – Informed Affluence (8.8% of database, index of 195).  High income families and singles in the attractive middle suburbs.  High concentrations of both younger and older children.  Socially aware, active lifestyles and frequent users of the internet. C10 – Graduating Upwards (3.1% of database, index of 188).  Young high-earning socialites in high-rise apartments often close to water.  High spending on entertainment and travel.  Busy social lives include sport and going out with friends. These six Mosaic Types account for 36.5% of Victorian Government-owned organisations’ ticket buyers and members and 16.3% of all households in the Greater Melbourne and Geelong region. Mosaic Type - Key Findings IN STRICT COMMERCIAL CONFIDENCE

16. Profile Importance Ranking Variable Performance Beside Mosaic Group and Mosaic Type the top 3 most indicative variables for Victorian Government owned cultural organisations' ticket buyers and members are Factor 2 – Prosperity, Factor 4 – Cultural Diversity and Adults at Address. Top 3 variables and Mosaic Lift Score: is a measure of how indicative a variable or segmentation is at distinguishing the target from the base. The higher the number (out of 100) the stronger the variable is. Weighted Deviation: is a measure of how indicative a variable or segmentation is at distinguishing the target from the base and it takes into account the base size of individual classes or groups within the variable or segmentation. Total Score: Combining these two techniques makes the measure of variable strength more robust. IN STRICT COMMERCIAL CONFIDENCE

17. Factor 2 - Prosperity There is a strong over-representation of highly prosperous households indicating that audience members are more likely to be highly educated professionals. This links closely with the Mosaic findings. IN STRICT COMMERCIAL CONFIDENCE

18. Factor 4 – Cultural Diversity This chart shows that there is a tendency for Victorian Arts Agencies' ticket buyers and members to be more associated with cultural diverse households and neighbourhoods where there is a higher mix of individuals born overseas with those born in Australia. This further validates the Mosaic findings. IN STRICT COMMERCIAL CONFIDENCE

19. Adults at Address A large proportion of Victoria’s State Owned Cultural Insititutions’ ticket buyers and members come from single (27.7%) and two adult (47.9%) households. Again, this insight is linked closely with a large portion of ticket buyers and members coming from Mosaic Group C. Due to the large number of two adult households within the base area, this group is actually under-represented (index of 71). Single adult households are significantly over-represented (index of 171) Four adult, three adult and five adult households are over-represented compared to the base area. This is contributed to by the older families associated with Mosaic Groups A, B and F as well as the more populous low income sharer households associated with Mosaic Group G. * See Appendix B for information on how to read Mosaic tables IN STRICT COMMERCIAL CONFIDENCE

20. Growth Areas When looking at the Mosaic Group table we can see that these databases show a considerable penetration into the top three Mosaic Groups. Mosaic Group C (40.5% penetration) Mosaic Group B (27.3% penetration) Mosaic Group A (27.8% penetration) If we remove duplications from the different databases (11.5%) these penetration levels remain high. Mosaic Group C (36.1% penetration) Mosaic Group B (24.3% penetration) Mosaic Group A (23.7% penetration) However, these numbers tell us there is still a high number of potential ticket buyers and members that can be targeted and converted to attenders. IN STRICT COMMERCIAL CONFIDENCE

21. Areas of Potential for Audience Growth Organisations can identify potential growth areas based on two basic principles: 1.Areas where there is a high estimated market potential. That is, areas with high levels of over- represented groups and types. 2.Areas where the customer penetration is below 30%. Moonee PondsHeidelberg/BalwynBox Hill/Carnegie IN STRICT COMMERCIAL CONFIDENCE

22. This table shows a high proportion of households (88.5%) only appear on one of the total nine databases. A further 11.5% of Victorian Government-owned organisations' audiences’ households appear across multiple Victorian Arts Agencies' databases indicating multi art form consumption. The maximum number of databases that a single household is on was 7 databases. Household Overlap IN STRICT COMMERCIAL CONFIDENCE

23. Appendix A – Mosaic Group Summary Descriptions

24. IN STRICT COMMERCIAL CONFIDENCE

35. Appendix B – How to Read a Mosaic Profile

36. 1.The name given to each classification type 2.Number of households/population/adults 18 and over within each classification type 3.Penetration % is calculated based on the target volume divided by the base volume 4.The Normalized index is similar to the index but takes volume into account. 5.The Index compares the percentage of each type in the customer file against the percentage of each type in the base population. The index is the means by which each type is determined to be over- or under-represented within the base profile. An index of 100 occurs where the target % is the same as the base % and therefore the proportion of customers in the profile within this type is said to be average. For the Normalized Index, the average value is zero, so any indices above zero is over represented by the target group and any index less than zero is under represented by the target group IN STRICT COMMERCIAL CONFIDENCE