1533 E. SPRUCE
OLATHE, KANSAS 66061-3646
TELE 913.782.8544
FAX 913.782.0150
EXECUTIVE SUMMARY OVERVIEW The following summary will help to highlight some of the key findings from the analysis Ruf Strategic Solutions performed on your data. The Smart Profile Analysis respects the rigors of statistics, assuring statistically valid numbers of observations as well as high degrees of predictability. The success of the Smart Profile Analysis is due to the expertise and experience needed to not only design an experiment but to evaluate it. Objective statistics are an important element of the analysis, as is subjective interpretation. Kansas Department of Tourism identified a need to answer the following questions to achieve its marketing goals: 1. Determine characteristic traits of Kansas Department of Tourism inquiries with an Inquiry per Household Profile. 2. Segment these inquiries by market penetration. Ruf completed analysis to meet these objectives by utilizing Smart Household clustering technology on 101,385 Kansas Department of Tourism inquiries. Our model appends a cluster code to each unique record on the customer database based on the respective demographic and psychographic traits. The records are grouped together and summarized by cluster code. We then compare the percentage of customers to the percentage of market-area households within each cluster code, and develop an index ((% of inquiries) / (% of households) * 100). Finally, each cluster is ranked from highest to lowest based on the index.
Inquiry per Household Profile TOP PERFORMING CLUSTERS Kansas Department of Tourism penetration reports show strong segmentation opportunities. Below are the top performing household clusters: Cluster Inquiries % of Total % of Index (%I/% Inquiries Total.HH HH) A06 1,830 3.29% .81% 408.37 L10 2,219 3.99% 1.34% 297.91 L12 1,820 3.28% 1.20% 273.90 A07 1,871 3.37% 1.26% 267.62 E06 1,885 3.39% 1.75% 193.93 These top five clusters represent 17.32% of Kansas Department of Tourism inquiry file and only 6.36% of the market area. The lift for these top five clusters is 172.33% (272.33 – 100). Stated differently, the indices show that targeting these top five clusters would generate results 2.72times better than targeting the entire file. The top quintile of Ruf Household Clusters captures 44.79% of the total Kansas Department of Tourism inquiries. This quintile has an overall/cumulative index of 225.71, signifying over 2.25 times the likelihood to become a customer than the average market area household.
Executive Summary – Page 1
Analyzing the demographic and psychographic characteristics of the top ranked clusters, the segments show the following similarities: Strong Demographic Traits Married Householder Max Education Level – High School Occupation - Agricultural
Weak Demographic Traits Female Householder White Collar
Strong Psychographic Traits Own workshop equipment Any civic/public activities in the last year
Weak Psychographic Traits Drinks any type of distilled spirits Bought CD’s, tapes in the last year
MEDIA ANALYSIS Our clustering allows us to segment the client’s data into finely tuned clusters. These clusters have similar traits in several aspects; the chart below highlights the media types most likely and least likely used by Kansas Department of Tourism inquiries: Strong Media Traits
Weak Media Traits
Reads Magazines in Family Circle/McCall’s Group Highly Loyal Reader of Reader’s Digest Read Women’s Seven Sisters Magazines Highly Loyal Reader of Prevention Watch TNN Read Seniors’ Interest Magazines Watch early evening news 3 or more times a week Highly Loyal Reader of Family Circle Listen to country (or western) radio Watch Country Music Television channel
Listen to Spanish radio Read African-American Appeal Magazines Highly Loyal Reader of Ebony Watch BET Listen to urban contemporary radio Watch African-American Appeal Sitcoms Read women’s fashion, beauty & grooming publications Watch Dating/Matchmaking Shows Read Metropolitan/regional/state publications Read Women’s – Bridal Magazines
Lifestyle Analysis The chart below highlights the Strong and Weak lifestyle traits most likely displayed by Kansas Department of Tourism inquiries. Strong Lifestyle Traits Own a riding/tractor-type lawn mower Carry $50,000-$99,999 in home/tenant insurance Carry medical/hospital/health insurance from Medicare; Medigap/Medicare supplement; Medicaid Gardened (outdoor vegetable) in the last year Belong to American Association of Retired Persons (AARP) Obtained home/tenant policy through an agent Ordered from Lane Bryant in last 12 months Own a garden tiller Own a air compressor
Executive Summary – Page 2
Weak Lifestyle Traits Visited South Pacific (Oceania) in the last 3 years Flex Mexicana for travel outside the continental US in last 3 years Rent apartment Attended Disneyland theme park most often in the last year Bought 3 or more formal/cocktail dresses last year Attended Universal Studios (CA) most often in the last year Drink malt liquor Bought men’s tennis clothing (not shoes/socks) in the last year Spent $500 or more on a watch in the last year
DEMOGRAPHIC ANALYSIS The following bar charts show the demographic makeup of Kansas Department of Tourism inquiries. Age Customer 2% 8% 19% 24% 23% 16% 8%
% of Total
19 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ 35% 30% 25% 20% 15% 10% 5% 0%
National 2% 15% 30% 26% 14% 7% 6%
Customer Pct National Pct
19 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74
75+
Age Range
Marital Status Customer
National
75% 6% 19%
51% 25% 24%
% of Total
Married Single Unknown 80% 70% 60% 50% 40% 30% 20% 10% 0%
Customer Pct National Pct
Married
Single Marital Status
Executive Summary – Page 3
Unknown
Homeownership Customer 87% 13%
Own Rental/Unknown
National 64% 36%
100% % of Total
80% 60%
Customer Pct
40%
National Pct
20% 0% Own
Rental/Unknown Homeownership
Dwelling Type Customer 8% 4% 3% 85%
Apartment Multi-Family P.O. Box Single Family
National 16% 11% 4% 69%
100%
% of Total
80% 60%
Customer Pct
40%
National Pct
20% 0% Apartment
Multi-Family
P.O. Box
Single Family
Dwellling
Length of Residence
0 - 2 Years 3 - 5 Years 6 - 10 Years 11 - 15 Years 15 + Years
Customer
National
13% 17% 21% 23% 26%
39% 19% 18% 10% 14%
50%
% of Total
40% 30%
Customer Pct
20%
National Pct
10% 0% 0-2 Years
3-5 Years
6 - 10 Years
11 - 15 Years
Length of Residence Executive Summary – Page 4
15 + Years
Income Distribution $ 1K - $14,999 $15K - $ 24,999 $25K - $34,000 $35K - $49,999 $ 50K - $74,999 $75K - $99,999 $100K - $124,999 $125K - $149,999 $150K+
Customer 10% 11% 15% 22% 24% 9% 4% 2% 3%
National 17% 13% 13% 17% 19% 10% 5% 2% 4%
30%
% of Totals
25% 20%
Customer Pct
15%
National Pct
10% 5%
$1 K
-$ 14 $1 ,99 5K 9 -$ 24 $2 5K ,999 -$ 34 $3 5K ,000 -$ 49 $5 0K ,999 -$ 74 $7 5K ,999 -$ $1 99 00 ,9 K - $ 99 1 $1 24 25 ,9 K - $ 99 14 9 ,9 99 $1 50 K+
0%
Income
CONCLUSION Ruf has been an innovator of market research and decision support tools for over two decades. Our intelligent marketing solutions are the most technologically sophisticated in the marketplace. The analysis performed by Ruf Strategic Solutions for Kansas Department of Tourism delivers extraordinary, actionable intelligence. The reports following this Executive Summary will provide additional detail on your specific data, which was only summarized in this section. These reports include the complete clustering results, from best to worst performing clusters, as well as detailed cluster descriptions for the best performing. In addition, we have provided extensive Smart Targets and Smart TargetsPlus information on all of the analyzed households.
Executive Summary – Page 5
1533 E. SPRUCE
OLATHE, KANSAS 66061-3646
TELE 913.782.8544
FAX 913.782.0150
KEY DEFINITIONS CLUSTER
A group consisting of households that are similar across a wide range of demographic and purchase behavior variables.
CUSTOMERS
Customers of the client, as defined by an individual project.
DECILE
A grouping of ten percent (10%).
HOMOGENEOUS
Similar. Homogeneous customers will have similar characteristics (i.e., families, individuals living alone, or non-related individuals living together).
HOUSEHOLD
Includes all household members – adults and children.
HOUSEHOLDS
Total households in the market area, defined as a comparison to the customers for each individual project.
INDEX
A comparison reflecting the relative degree of the penetration as compared to the overall penetration. Values above or below 100 identify propensities above or below the average, respectively.
LIFESTYLE
A way of life that reflects the attitudes and values of an individual or group. Lifestyle generally describes “what you do” as opposed to “what you are.” A specific activity, interest, or opinion.
MARKET
Customers with needs and/or wants to satisfy, money to spend, and the willingness to spend it.
MARKET AREA
Client-defined target area of study. Market area can be project specific.
MARKET SEGMENT Homogeneous subgroup of a heterogeneous aggregate market which is selected as a target market. PENETRATION
Proportion of customers to households in the market area.
PSYCHOGRAPHICS The study of consumers’ lifestyle traits. Psychographic data is used in conjunction with demographic and geographic data.
Key Definitions – Page 1
QUINTILE
A grouping of twenty percent (20%).
RANK
Sequential ordering of data.
SEGMENTATION
Breaking a large group into smaller parts.
TARGET MARKET
A group of consumers to whom an organization specifically aims its marketing efforts.
UNIVERSE
Client-defined area of total market potential. Universe can be project specific.
Kansas Department of Tourism CLIENT'S DATA SET - FREQUENCY DISTRIBUTION BY STATE State
Count
Percent
State
Count
Percent
State
Count
V5.0
Percent
State
Count
Percent
AK
143
0.14 %
IL
6,070
5.99 %
ND
345
0.34 %
SD
492
0.49 %
AL
1,197
1.18 %
IN
3,035
2.99 %
NE
2,195
2.17 %
TN
1,714
1.69 %
AR
1,752
1.73 %
KS
16,125
15.91 %
NH
253
0.25 %
TX
5,879
5.80 %
AZ
1,308
1.29 %
KY
1,358
1.34 %
NJ
1,224
1.21 %
UT
482
0.48 %
CA
4,055
4.00 %
LA
1,274
1.26 %
NM
461
0.46 %
VA
1,359
1.34 %
CO
2,080
2.05 %
MA
711
0.70 %
NV
418
0.41 %
VI
3
0.00 %
CT
531
0.52 %
MD
920
0.91 %
NY
2,393
2.36 %
VT
131
0.13 %
DC
70
0.07 %
ME
242
0.24 %
OH
3,299
3.25 %
WA
1,270
1.25 %
DE
166
0.16 %
MI
3,391
3.35 %
OK
2,948
2.91 %
WI
3,347
3.30 %
FL
2,717
2.68 %
MN
2,850
2.81 %
OR
758
0.75 %
WV
489
0.48 %
GA
1,620
1.60 %
MO
7,539
7.44 %
PA
2,320
2.29 %
WY
212
0.21 %
130
0.13 %
MS
861
0.85 %
PR
82
0.08 % 2,806
2.77 %
HI
Invalid IA
3,068
3.03 %
MT
250
0.25 %
RI
128
0.13 %
ID
308
0.30 %
NC
1,800
1.78 %
SC
806
0.80 %
Total # of State Codes with Data: Total # of Inquirers:
53 101,385
The data reflected in this report is from the original client data file. Any code that varied from one of the standard state codes has been allocated to "Invalid". Cooperatively Developed by Ruf and Experian.
Please See Frequency Distribution by State Tab for Further Explanation. Frequency Distribution by State - Page 1