The use of PRIZM to better target an
increasingly diverse consumer base
Doug Norris
Senior Vice President and Chief Demogr...
The use of PRIZM to better target an
increasingly diverse consumer base
Doug Norris
Senior Vice President and Chief Demogr...
Overview of Presentation

 Key demographic Trends

 Overview of PRIZM Segmentation System
 Some applications for digita...
Key Demographic Trends

4
A growing consumer base
More concentrated in large urban areas

5
Population will continue to grow due to immigration
Observed and Projected Population Growth, Canada
Actual

Projected

2....
Population has gradually shifted west for 50 years
Share of Total Population, (%)
1961

1971

34
29 28

26

25

1981

36 3...
Growth concentrated in large urban areas

Canada 2011 Population Estimate– 34,528,000

% Growth 2006-2011
10%

Rural Small...
Many more
older consumers

9
In a few years, more seniors than children;
in 20 years, seniors make up nearly a quarter of Canada’s population
Percentag...
Ready or not here come the Boomers
Boomers Born 1946-1965
 Today


9.5 Million aged 47-66



4.0 Million aged 67-86

 ...
Aging will shift more expenditures to older ages
and slow growth in total spending

Percent of Households
aged 55 and over...
More diversity in families and households

13
Only one in four households is a couple with children under age 25
Households in Canada, 2011

Multiple family
2%

One per...
Percentage of young adults living with parents has leveled off
Young Adults Living with Parents, Canada, 2011

20 to 24 ye...
The mosaic is the new mainstream

16
Source countries for immigration have changed dramatically

Percent of Landed Immigrants by Region of Birth, Canada, 2006
...
Cultural diversity will continue to increase
Projected Concentration of Visible Minority Population

48

Toronto

63
46

V...
Education And Income

19
Women are more highly educated and gap is widening
Percentage of Population with University Degree, Canada, 2012

Males

3...
Males have higher incomes but gap is smaller
Median Individual Total Income, Canada
$45,000
$40,000
$35,000

Male

$30,000...
In terms of income increases
Seniors have fared the best; young households the worst
Index of Median Income (2010$), All F...
How PRIZM can help digital media planning?
PRIZMC2 Segmentation System
• 66 segments or clusters that capture:


Socio-economic status



Urbanity (Urban, Suburban...
Sample Customer Profile Using PRIZMC2
• Based on profile, target groups are
identified
• Typically 3 to 5
• Example of a t...
Coding surveys to PRIZMC2 provides
a wealth of information on population segments
Examples of Surveys that are coded to PR...
Uses of PRIZM



Identify target groups based on PRIZM profile of some characteristic of
interest



Once a target group...
Retail preferences for four sample segments
Social Values

eShopper Behaviour

eShopper Behaviour

Social Values

Need For...
How are Canadians shopping online?
Canadian online purchase preferences
Percent of Canadians stating purchase preference as online via
computer by product ca...
Who are big online spenders?
44% of Canadians spend $100+ on a monthly basis

Spent $100+ once or twice in the past month
...
In which categories do Canadians spend the most?
Percent of Canadians who spent $100 or more
by product category

Vacation...
How has online shopping influenced
the way Canadians gather and share product information?
Where do Canadians gather information before shopping?
87% of respondents consult at least one source online before making...
What information are Canadians looking for?
Information sought:

Mix of urban, exurban, town, rural
Which consumers are making their voices heard online?

Areas of Toronto CMA
with segments that
rate and review
products on...
Emerging trends: Which segments are receptive to a
mobile marketing message? How do consumers combine
channels?
Which segments are receptive to
mobile and social marketing campaigns?
Both Profiles
Likely to share
shopping
deals/produc...
Segments responsive to a call to action
About once or twice a month: Visited website
after seeing an address on TV (53%)
L...
Not all Canadians are eager to adopt
online shopping trends
Why do some consumers resist online shopping?
The eShopper PRIZMC2Link allows marketers to understand who prefers
bricks-a...
Understanding experiential shoppers
Top 10 clusters (by index) that enjoy the experience of shopping in a store vs. online...
Summary
 Key demographic trends mean an increasingly diverse consumer base
 Segmentation can help in identifying and bet...
The use of PRIZM to better target an
increasingly diverse consumer base

Dr. Doug Norris
Senior Vice President and Chief D...
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MIXX 2013: Environics "A Changing Consumer Base"

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This presentation highlights key Canadian demographic trends. Presented by Dr. Doug Norris, Senior Vice President at Environics in March 2013 as part of IAB Canada's MIXX Conference.

The first slide is a video from Jan Kestle, President & Founder of Environics. This may not play for viewers within SlideShare so forward through to the following slides for the data Environics compiled for this presentation.

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MIXX 2013: Environics "A Changing Consumer Base"

  1. 1. The use of PRIZM to better target an increasingly diverse consumer base Doug Norris Senior Vice President and Chief Demographer Presented at IAB Canada MIXX Conference Toronto March 21, 2013
  2. 2. The use of PRIZM to better target an increasingly diverse consumer base Doug Norris Senior Vice President and Chief Demographer Presented at IAB Canada MIXX Conference Toronto March 21, 2013
  3. 3. Overview of Presentation  Key demographic Trends  Overview of PRIZM Segmentation System  Some applications for digital media 3
  4. 4. Key Demographic Trends 4
  5. 5. A growing consumer base More concentrated in large urban areas 5
  6. 6. Population will continue to grow due to immigration Observed and Projected Population Growth, Canada Actual Projected 2.0% 1.5% Immigration 7.5 per 1000 population Medium Projection 1.0% 0.5% 0.0% -0.5% -1.0% 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 Total Population 2051 49 Million Source: Statistics Canada, Population Estimates and Projections 6
  7. 7. Population has gradually shifted west for 50 years Share of Total Population, (%) 1961 1971 34 29 28 26 25 1981 36 35 1991 2001 2011 38 37 38 24 24 20 21 16 10 10 9 9 10 8 Atlantic Provinces Source: 1961-2011 Censuses 7 Quebec Ontario 9 8 8 7 Manitoba and Saskatchewan 23 24 18 7 Alberta and British Columbia 7
  8. 8. Growth concentrated in large urban areas Canada 2011 Population Estimate– 34,528,000 % Growth 2006-2011 10% Rural Small Town 18% 6% 6 Largest CMAs 46% Smaller Urban 13% 9.0 8% 6.0 4.7 4% 3.4 2% 2.3 % Other CMAs 23% Source: Statistics Canada, Population Estimates Adjusted for Undercount Canada 6 Largest Other CMAs CMAs Smaller Urban Rural Small Town 8
  9. 9. Many more older consumers 9
  10. 10. In a few years, more seniors than children; in 20 years, seniors make up nearly a quarter of Canada’s population Percentage of Population, Canada 0-14 65 and over 40 35 30 25 20 15 10 5 0 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 2016 2021 2026 2031 2036 2041 2046 2051 Source: Statistics Canada, Census 2021-2006, Population Projections 2011-2041 10
  11. 11. Ready or not here come the Boomers Boomers Born 1946-1965  Today  9.5 Million aged 47-66  4.0 Million aged 67-86  By 2032  7.9 Million aged 67-86 11
  12. 12. Aging will shift more expenditures to older ages and slow growth in total spending Percent of Households aged 55 and over Percentage of Expenditures Age 55 and Over Percent Change in Total Expenditures 46 41 39 34 29 5 2012 2022 Source: Calculations by Environics Analytics 2012 2022 Households… Households… 12
  13. 13. More diversity in families and households 13
  14. 14. Only one in four households is a couple with children under age 25 Households in Canada, 2011 Multiple family 2% One person 28% Lone parent 10% Source: Statistics Canada, 2011 Census Other 4% Couples with children 26% Couples without children 30% 14
  15. 15. Percentage of young adults living with parents has leveled off Young Adults Living with Parents, Canada, 2011 20 to 24 years old 25 to 29 years old 60% 60% 56 50% 49 40% 57 60 59 50% 51 40% 42 30% 30% 20% 20% 10% 10% 0% 0% 1981 1986 1991 1996 2001 2006 Source: Statistics Canada, censuses of population, 1981 to 2011. 2011 21 15 23 1996 2001 25 25 2006 2011 17 11 1981 1986 1991 15
  16. 16. The mosaic is the new mainstream 16
  17. 17. Source countries for immigration have changed dramatically Percent of Landed Immigrants by Region of Birth, Canada, 2006 25 36 19 3 16 4 11 4 69 8 90 17 11 17 7 11 9 10 6 3 Before 1961 50 40 49 Middle East and West Central Asia* 31 11 1961-1970 1971-1980 Caribbean, South and Central America Africa 7 4 United States and Oceania 7 6 3 8 3 Europe 1981-1990 1991-2000 2001-2006 Asia (except West Central Asia) Period of Immigration * Includes Afghanistan, Turkey, and Central Asian Republics of former USSR Source: Statistics Canada, 2006 Census 17
  18. 18. Cultural diversity will continue to increase Projected Concentration of Visible Minority Population 48 Toronto 63 46 Vancouver 26 Montréal Edmonton Kitchener 39 26 Calgary 38 20 33 Ottawa-Gatineau Winnipeg 59 Abbotsford Windsor % 2011 % 2031 Canada 2011 19% 2031 31% 20 31 Guelph Hamilton London 19 32 18 27 17 28 16 25 15 25 14 22 20 29 Source: Statistics Canada, Projections of the Diversity of Canada's Population, 2006-2031 18
  19. 19. Education And Income 19
  20. 20. Women are more highly educated and gap is widening Percentage of Population with University Degree, Canada, 2012 Males 36 Females 36 30 26 25 24 24 21 20 11 25-34 35-44 45-54 55-64 65 and over Age Groups Source: Statistics Canada Labour Force Survey, May 2012 20
  21. 21. Males have higher incomes but gap is smaller Median Individual Total Income, Canada $45,000 $40,000 $35,000 Male $30,000 Both $25,000 Female $20,000 $15,000 $10,000 $5,000 $0 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Source: Statistics Canada Income Statistics 21
  22. 22. In terms of income increases Seniors have fared the best; young households the worst Index of Median Income (2010$), All Family Units, Canada 170 25-34 35-44 45-54 55-64 65 and over 160 150 140 Index 100 = average 130 120 110 100 90 80 70 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 Source: Statistics Canada, Income Statistics 22
  23. 23. How PRIZM can help digital media planning?
  24. 24. PRIZMC2 Segmentation System • 66 segments or clusters that capture:  Socio-economic status  Urbanity (Urban, Suburban, Exurban, Town, Rural)  Ethnic diversity (13 clusters)  Francophones (15 clusters)  Lifestage (Young, Family, Mature) 24
  25. 25. Sample Customer Profile Using PRIZMC2 • Based on profile, target groups are identified • Typically 3 to 5 • Example of a target group – Affluent Families Affluent Families Young and mature couples living in the centre of large Canadian cities as well as young families with new kids living in the suburban and exurban areas of those same cities
  26. 26. Coding surveys to PRIZMC2 provides a wealth of information on population segments Examples of Surveys that are coded to PRIZM  Private Sector  Environics Research Social Values  Surveys of Consumer Behaviour/Media Use • • • •  Print Measurement Bureau (PMB) Bureau of Broadcast Measurement (BBM) Newspaper Audience Databank (NADBank) Canadian Financial Monitor (CFM) Social Media Use • Delivinia’s AskingCanadians  Government Surveys  Survey of Household Spending  Canadian Community Health Survey (CCHS)  Travel Attitudes & Motivations Survey (TAMS) Environics Analytics 2012 26
  27. 27. Uses of PRIZM  Identify target groups based on PRIZM profile of some characteristic of interest  Once a target group has been defined, make use of survey or other data linked to PRIZM to get deeper understanding of consumer characteristics (demographics, social values, shopping behaviour, expenditure patterns, etc.) Environics Analytics 2012 27
  28. 28. Retail preferences for four sample segments Social Values eShopper Behaviour eShopper Behaviour Social Values Need For Escape Online Purchase Preference: • Financial Products & Services • Media (books, music, videos) • Arts & Entertainment Consumption Evangelism Time Stress Consumption Evangelism • Open to receiving marketing messages via mobile Online Purchase Preference: • Financial Products & Services • Home Electronics/Computers • Household Appliances/Furniture • Media (books, music, videos) • Beauty & Cosmetics • Clothing • Arts & Entertainment Time Stress • Likely to shop on mobile device • Research online frequently • Rate/Review products daily • Share deals through Social Media Saving on Principle Discriminating Consumerism Consumptivity Importance of Brand Pursuit of Originality • Research online frequently • Search online classifieds (i.e. kijiji) daily Education Ethnic Presence Pursuit of Originality Need For Escape Importance of Price Saving on Principle Confidence in Advertising • Open to receiving marketing messages via mobile Job Type Ethnic Presence • Likely to shop on mobile device Social Values eShopper Behaviour eShopper Behaviour Social Values Time Stress Online Purchase Preference: • Household Appliances/Furniture • Beauty & Cosmetics • Clothing Online Purchase Preference: • Low across all categories Financial Concern Regarding • May consult 1 or 2 sources online but tend to gather information via phone more frequently than any online sources Control of Privacy • Want the help of a customer service associate when shopping Brand Genuineness Saving on Principle Importance of Price Consumption Evangelism Need for Status Recognition Confidence in Advertising Consumptivity • Consult from 2 to 5+ sources online when shopping • Share deals through Social Media Enthusiasm for Technology Education Ethnic Presence • Open to receiving marketing messages via mobile Joy of Consumption • Likely to shop on mobile device Concern for Appearance • Above average indicated that they do not own a mobile device the Future Canadian Identity Ethical Consumerism Joy of Consumption Education Ethnic Presence
  29. 29. How are Canadians shopping online?
  30. 30. Canadian online purchase preferences Percent of Canadians stating purchase preference as online via computer by product category Young, educated, urban
  31. 31. Who are big online spenders? 44% of Canadians spend $100+ on a monthly basis Spent $100+ once or twice in the past month High Segments with an index above 120 tend to be urban and educated Index: 120 Above Average A mix of urban, suburban, exurb an and town clusters are above 100 but below the 120 index Note: Results are based on usage in the past 2 months
  32. 32. In which categories do Canadians spend the most? Percent of Canadians who spent $100 or more by product category Vacation (31%) Event Tickets (20%) Gift Card (9%) Beauty and Cosmetics (4%) Home & Garden (3%) Note: Results are based on usage in the past 12 Months
  33. 33. How has online shopping influenced the way Canadians gather and share product information?
  34. 34. Where do Canadians gather information before shopping? 87% of respondents consult at least one source online before making a purchase; 44% consult two or more sources While most Canadians consult retailer and manufacturer websites for information when shopping, a wide range of consumers also consult other sources. Urban, ethnic, young segments High proportion of francophone segments Urban, young segments Ethnic segments
  35. 35. What information are Canadians looking for? Information sought: Mix of urban, exurban, town, rural
  36. 36. Which consumers are making their voices heard online? Areas of Toronto CMA with segments that rate and review products on a daily basis tend to include predominant ethnic presence.  56% of Canadians rate or review products monthly  12% do so weekly  2% do so daily (3% of Torontonians) Top Toronto CMA clusters that rate/review products daily (3%) Note: Results are based on usage in the past 2 months
  37. 37. Emerging trends: Which segments are receptive to a mobile marketing message? How do consumers combine channels?
  38. 38. Which segments are receptive to mobile and social marketing campaigns? Both Profiles Likely to share shopping deals/product information through social media channels (18%) Open to receiving relevant marketing messages on mobile device from trusted retailers (11%)  Urban and suburban ethnic segments  Cuts across all income levels
  39. 39. Segments responsive to a call to action About once or twice a month: Visited website after seeing an address on TV (53%) Likely to be rural and older Note: Results are based on usage in the past 2 months
  40. 40. Not all Canadians are eager to adopt online shopping trends
  41. 41. Why do some consumers resist online shopping? The eShopper PRIZMC2Link allows marketers to understand who prefers bricks-and-mortar retail shopping over e-commerce and why Urban young, upscale and elite High proportion of francophone segments
  42. 42. Understanding experiential shoppers Top 10 clusters (by index) that enjoy the experience of shopping in a store vs. online Social Values Spend Categories for Prefer In-Store Need For Status Recognition Clothing “It is important that people admire the things that I own” Joy of Consumption Men’s Clothing Women’s Clothing “To buy myself something new is always very gratifying for me” Footwear Concern for Appearance Personal Care Pursuit of Novelty Recreation “I always choose my clothes with great care” “I am willing to try new products, places for vacations, or restaurants just for the pleasure of novelty” Non-Athletic Footwear Electric Hairstyling/Personal Care Appliances Children’s Toys/Games Artists' materials/handicraft/hobbycraft kits
  43. 43. Summary  Key demographic trends mean an increasingly diverse consumer base  Segmentation can help in identifying and better understanding the diversity among consumers and Vancouver 43
  44. 44. The use of PRIZM to better target an increasingly diverse consumer base Dr. Doug Norris Senior Vice President and Chief Demographer doug.norris@environicsanalytics.ca 613-592-3402 44

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