Geoscape by Latino Leaders Franchise

Using Data Analytics to Optimize Site Selection, Store Configuration, and Shopper Engagement

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Today’s Objectives

Introduction

Who’s Driving the Growth?

Panera Bread

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Business Case Example

Access the New Mainstream

WHO’S DRIVING THE GROWTH?

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Population groups Asian, Black, Pacific Islander, and Hispanic account for over 36% of the United States 2016 population.

U.S. Population: 2016 By Ethnic Group

12.30%

5.50% 63.70%

36.20%

18.40%

Non-Hispanic Asian & Pacific Islander

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Non-Hispanic Black

Hispanic

Non-Hispanic All Others

120%

100% 13.1%

80% Percent Growth

Population Growth by Cultural Group 1990 to 2016

60%

35.3%

16.6%

14.6%

10.4%

8.9%

18.7%

Hispanic 14.1%

Non-Hispanic Asian & Pacific Islander

13.5%

40%

20%

All Other Non-Hispanic 55.8%

58.4%

2000 - 2010

2010 - 2016

40.7%

0% 1990 - 2000

Growth Source: U.S. Census Bureau for 1990 - 2010 and Geoscape for 2016 projections. Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Non-Hispanic Black

24,662,700 Additional Hispanics –

57% percent of total pop growth

6,244,293 Additional Non-Hispanic Blacks –

During the 16-Year Period: 2000 To 2016

14% percent of total pop growth

7,559,112 Additional Non-Hispanic Asian & Pacific Islanders –

17% percent of total pop growth

43,446,013 More People Overall –

38.5 Million persons from these three groups

–

Contributed 88% percent of total growth

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1990 Hispanic Population Comparison of this map showing 1990 census percent Hispanic population to the following page’s Geoscape projected 2021 population shows large increases beyond the traditional Latino states of Florida and the four states bordering Mexico.

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Hispanic Population Expansion: 2021 The two-decade period will see significant Hispanic population in the Rocky Mountain region, Northwestern U.S., and in the newer Latino growth Midwest and Southeastern states.

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Younger age groups are made up from a more diverse population and vice versa.

Generational Population Shift 2021

100% 90% 80%

7.6% 3.7% 7.7%

10.1%

16.3%

5.0%

24.5%

10.0%

6.1%

70%

31.1%

12.4%

7.6%

60%

5.5%

12.8%

50% 40%

13.7% 80.3%

74.2% 63.4%

30%

51.5%

42.2%

20% 10% 0% Age 75+

Boomer 1946-65

Non-Hispanic White

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Gen X 1966-80

Non-Hispanic Black

Millennial (Gen Y) 1981-97

Non-Hispanic Asian

Hispanic

Age 0-4

It is apparent that the younger groups are disproportionately Hispanic whereas the core workforce population is disproportionately Asian while those facing retirement are disproportionately White non-Hispanic.

Life Stage Population Comparison 2016

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 0-17 Youngsters

18-24 College Agers White

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25-54 Prime Workforce Hispanic

Black

55-64 Pre-Retirees Asian

65+ Retirees

In 2016, the Hispanic share of all New entrepreneurs was 20.8%, compared to 10% a decade ago

The Changing Landscape of Entrepreneurs in the U.S. In 2016, the number of Hispanic-owned businesses grew to more than 4.23 million

Hispanics are 1.5 times more likely than the general population to start a new business Fastest growing states for Hispanic entrepreneurial activity continue to be California, Texas and Florida Hispanic Businesses contributed nearly $668 billion in revenue to the national economy in 2016

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CultureCode® Hispanicity™ Segment Profiles

Americanizado

Nueva Latina

AmBi-Cultural

Hispano

Latinoamericana

HA1

HA2

HA3

HA4

HA5

English dominant (nearly no Spanish) Born in US;; 3rd+ generation, few Hispanic cultural practices

English preferred (some Spanish) Born in U.S.;; 2nd generation Some Hispanic cultural practices;; often “retro- acculturate”

Tendencies: Watch Comedy Central

Tendencies: Students

Single-never married

Bi-Lingual (equal or nearly) Immigrant as child or young adult Many Hispanic cultural practices

Spanish preferred (some English) Immigrant as adult, in U.S. 10+ years Pre-dominant Hispanic cultural practices

Living with parents

Blue collar

Boxing fans

Largest families

Spanish dominant (nearly no English) Recent immigrant as adult (less than 10 years ago). Primarily Hispanic cultural practices Identify with home country more so than U.S.

Tendencies:

Late-night Spanish TV

Tendencies:

Work in sales & marketing

Work in tech Shop at Whole Foods

Least educated

Watch MTV

Migrant laborer

Shop at Costco

Soccer enthusiasts Least internet use

17%

28.90%

HA1

HA2

10%

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20%

25.60% HA3

30%

40% 11

50%

60%

70%

15.50%

12.90%

HA4

HA5

80%

90%

100%

Total Workday Population

Workday Population = Residential Population - Outbound Commuters + Inbound Commuters

The difference between Workday and Residential populations reveals areas where day time population significantly increases and areas desirable for locating retail and service establishments to serve the working population. For example, within the Denver metro area, significant workday population increases in downtown Denver, the Cherry Creek area, the Tech Center, and both 1-25 and I-70 corridors. Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Hispanic Workday Population

Workday Population = Residential Population - Outbound Commuters + Inbound Commuters

The Hispanic Workday and Residential population differential shows significant Hispanic workday population increases in downtown Denver, I-70 corridor, and the portion of the I-25 corridor west of downtown. An increase, but less so than total population for the Cherry Creek area and the Tech Center.

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Business Case Example

PANERA BREAD

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Marketing/Advertising/Research Demographic & consumer spend data

Application by Area of Focus

In-restaurant and Local Area Marketing Targeted consumer databases (Direct Mail/Email)

Real Estate/Development Increase the success of new site locations based on surrounding ethnicity, projected growth, consumer spend and acculturation levels Analyze competitive landscape

Human Resources Staff locations to match local consumer traits Identify locations where bilingual employees are required in order to serve the customers and succeed Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Business Scenario (Panera Bread)

Millennials are a key consumer segment for many industries, especially for fast casual restaurants. Stimulate growth by tapping into other fast growing consumer segments such as Hispanics. Big push to drive lunch sales!

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Business Scenario (Panera Bread)

Developing the My Panera customer loyalty database has been a key focus for the organization. Currently capturing Name, Phone #, and Email;; in addition to sales transactions. Seeking to grow the My Panera database while also driving new customers to stores.

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Why Cook?

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Analyze the My Panera loyalty database to identify key attributes: Proposed Solution

–

Ethnicity

–

Age

–

Household Income

–

Hispanicity Segment (Acculturation)

–

Presence of Children

Track frequency of visits, average sale, store(s) visited, and other KPI’s across these customer segments.

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Understand distribution of 2,000+ stores. Proposed Solution

–

Rank and prioritize stores that are best positioned to capitalize on growth segments.

–

Zero in on stores with high Workday population traffic.

–

Gauge total spend on QSR (lunch) within the trade areas.

Tap HomeBase™ to reach consumers directly @Home. –

Combine offline (direct mail) with online targeted digital display ads.

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

My Panera Customer Database

UniqueID First Name 6044604884 DWIGHT 6043301038 RONALDB 7738202031 SUSAN 7514910790 KIM 7613103769 JAMES 7606302685 DOUGLAS 6080503395 JOSEPH 6043512107 ROLANDO 7709002110 MICHAEL 7603102053 RICHARD 3344211752 FRED 6008905699 RAYMOND 3346210318 PAUL 3342813425 BETH 3306810180 ADAM 6061715507 GERALD 6046211795 MARIE 7523807551 JAMES 3349804719 LARRY 7735406963 SCOTT 7514200005 DAVID 6041903967 PAUL 7703100809 KEHINDE

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Last Name CECIL FRANZEN MCINTOSH RAY HEDLEY DUTTON NASSIN GARCIA POETZ WARREN THORGILSSON JAGERT REINHOLZ MEYER ROSENBERG JOHNSON ANDERSON URBANUS LEVY MCWILLIAMS CONNER ABRAM ABAYOMI

Phone 444-‐444-‐4444 786-‐445-‐5434 444-‐444-‐4445 786-‐445-‐5435 444-‐444-‐4446 786-‐445-‐5436 444-‐444-‐4447 786-‐445-‐5437 444-‐444-‐4448 786-‐445-‐5438 444-‐444-‐4449 786-‐445-‐5439 444-‐444-‐4450 786-‐445-‐5440 444-‐444-‐4451 786-‐445-‐5441 444-‐444-‐4452 786-‐445-‐5442 444-‐444-‐4453 786-‐445-‐5443 444-‐444-‐4454 786-‐445-‐5444 444-‐444-‐4455

Email Annual_Sales customers@abc.com $237 Sample@gmail.com $450 customers@abc.com $1,173 Sample@gmail.com $154 customers@abc.com $622 Sample@gmail.com $670 customers@abc.com $717 Sample@gmail.com $764 customers@abc.com $812 Sample@gmail.com $859 customers@abc.com $907 Sample@gmail.com $954 customers@abc.com $1,002 Sample@gmail.com $1,049 customers@abc.com $1,097 Sample@gmail.com $1,144 customers@abc.com $1,191 Sample@gmail.com $1,239 customers@abc.com $1,286 Sample@gmail.com $1,334 customers@abc.com $1,381 Sample@gmail.com $1,429 customers@abc.com $1,476

#_of_Visits Avg_Sale 2 $118.50 10 $45.00 25 $46.93 2 $77.00 10 $62.22 12 $54.89 13 $55.16 14 $55.40 15 $55.61 15 $55.80 16 $55.97 17 $56.13 18 $56.27 19 $56.40 19 $56.52 20 $56.63 21 $56.73 22 $56.83 23 $56.91 23 $56.99 24 $57.07 25 $57.14 26 $57.21

DirecTarget® Enrichment Segment loyalty file by: •

Ethnicity

•

Country of Origin

•

Acculturation Segment

•

Language Usage

•

Socio Economic Status

•

Presence of Children

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Identify Loyal Customers by Ethnicity, Acculturation, Spending Indices, Socio Economic Status and other key attributes.

DirecTarget® Results

First Name DWIGHT RONALDB SUSAN KIM JAMES DOUGLAS JOSEPH ROLANDO MICHAEL RICHARD FRED RAYMOND PAUL BETH ADAM GERALD MARIE JAMES LARRY SCOTT DAVID PAUL KEHINDE TONY

Last Name CECIL FRANZEN MCINTOSH RAY HEDLEY DUTTON NASSIN GARCIA POETZ WARREN THORGILSSON JAGERT REINHOLZ MEYER ROSENBERG JOHNSON ANDERSON URBANUS LEVY MCWILLIAMS CONNER ABRAM ABAYOMI ZIBERT

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REGION ANGLO EUR_N ANGLO ANGLO ANGLO ANGLO HISP HISP AFR_AM ANGLO EUR_N HISP AFR_AM ANGLO AFR_AM AFR_AM ANGLO BE_NL ANGLO ANGLO AFR_AM AFR_AM EUR_EES

Fast Food Spend Idx: Age 113 128 225 113 107 99 131 158 145 103 175 128 155 69 85 185 225 79 86 245 152 69 83 98

22 35 45 55 65 49 33 28 24 46 39 24 26 22 18 21 24 46 39 24 26 22 18 21

Benchmark Report

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Benchmark Hispanicity™

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Where Do We Start?

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National Snapshot

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Zoom In on Chicago

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Chicago Hispanic Millennials

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Chicago Snapshot

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HomeBase™ Consumer Database

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Targeted Households

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Site Selection Store 720: 51,329 Total Pop. Store 104: 23,601 Total Pop.

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Workday Population Store 720: 35,798 Workday Pop. Store 104: 22,049 Workday Pop.

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Competitive Landscape

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Analyzed the My Panera loyalty database;; –

Matched: •

Ethnicity Age

•

Household Income

•

Presence of Children

•

Recap

– Panera now tracks frequency of visits, average

sale, store(s) visited, and other KPI’s across these fast growing customer segments.

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Ranked and prioritized stores to pinpoint stores best positioned to reach these consumer growth segments. Recap

–

Ran Geoscape’s Workday population and Quick Service Lunch Spend report to identify stores that can drive Lunch sales growth.

Tapped HomeBase™ to build a database of consumers Panera can reach directly @Home –

Driving them to the store with promotional offers;; both offline (direct mail) and online (digital ads).

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com

Using Data Analytics to Optimize Site Selection, Store Configuration, and Shopper Engagement

Tel. 1 (888) 211 9353 / Web. www.geoscape.com / Email. geoscape@geoscape.com