Tobacco Documents Online

PRIZM Profiles - Who are the targets? MEZZINA & BROWN SMOKE CAMEL FILTER Copyright 1996, Clsritu Inc. . .. PRIZM Profiles - Who ete the tugets?

PRIZM Profiles - Who are the targets? Table of Contents Introducdon Section I Summary Description of this Analysis Package Who are the targets? Section II Understanding PRIZM Profile Reports Cluster Profile Charts & Reports Next Steps Section III Media Targeting Outdoor Advertising Direct Marketing PRIZM Link Partners PRIZM Cluster Narratives Appendix Copysight 1996, Claitu Inc. . PRIZM Profiles •WTo are the urgets?

• SMOKE CAAEL FILTER (2.03%) The numbers enclosed in parenthesis indicate the percentage of total MRI respondents that use the particular product or service behavior. Claritas geocodes and assigns PRIZM Clusters to the MRI respondent records. Profiles are drawn using a two-year doublebase of approximately 40,000 respondents. The study is sampled and weighted to represent known demographic norms for the U.S. as a whole. Therefore, a national base profile from the weighted study sample is used in the PRIZM Profile analysis. For a more detailed description of the MRI survey methodology please contact MRI directly (212/599-0444) and/or refer to their survey methodology statement, - PRIZM Profiling Each MRI survey participant is assigned to one of the sixty-two PRIZM neighborhood lifestyle clusters. Each PRIZM Cluster represents a distinct consumer market segment comprised of households with similar demographics, lifestyles, and consumer behavior: Survey participants who SMOKE CAMEL FILTER were then summarized and cross-tabulated by PRIZM Cluster and Claritas performed a PRIZM profile analysis of these respondents to identify market segments which have higher propensities to be customers who SMOKE CAMEL FILTERS. k" ol L" W Cnpyright 1996, Clatites Inc. PRIZM Protiles • N'ho are the targeu't

"Over one percent (profile % Comp = 1.13%) of all adults who drink vodka live in Blue Blood Estates neighborhoods." Each percent penetration (% Pen) shows the percent of the universe of potential customers (usually total households or total population) that use your product in a given type of neighborhood. A cluster or cluster group with a higher percent penetration for your product is using your product at a higher rate than one with a lower percent penetration. For example; "Over twenty-six percent (% Pen = 26.19%) of all adults who live in Blue Blood Estates neighborhoods drink vodka. This is higher than the US average for all adults .- twenty percent (total % Pen = 20.34%)." Each index of concentration (Index) shows the extent to which usage of your product is concentrated in a given neighborhood type, in relation to an average of 100. An index very near 100 indicates a type of neighborhood that is no more nor less likely than average to use your product, while a high index indicates a high usage rate. The higher the index above 100, the better the Cluster or Cluster Group is for your product. For example; "Adults who live in Blue Blood Estates neighborhoods are 1.29 (Index = 129) times M likely than the average U. S. adult to drink vodka" or "Adults who live in Blue Blood Estates neighborhoods are 29% (Index 129 - Avg 100 = 29) more likely than the average US adult to drink vodka." and "Adults who live in Greenbelt Families neighborhoods are only .77 (Index = 77) times as likelv as the average US adult to drink vodka" or "Adults who live in Greenbelt Families neighborhoods are 33% (Index 77 - Avg 100 = -33) gss likelv than the average US adult to drink vodka." The index of concentration and percent composition are key indicators of Clusters that represent the best targets for marketing your product. Starting to identify targets for your product We suggest that you start your analysis by examining profile reports of the customers who have already used your product or a similar one, or of people like those customers. Example You are marketing a line of foreign cruise packages, so you analyze the Simmons profile of adults who reported having taken a foreign cruise, compared to a base profile of total adults. Copyfight 1996, Claritae Inc. PRIZM Profiles • Who ue the tugeu7

- Income level . Dwelling type (single family homes, apartments, etc.) - Race or ethnicity -Age - Neighborhood population density (suburban, urban, second city, town or rural) The Target Finder report and PRIZM Cluster Snapshots Guide are invaluable for this type of analysis. 3. Each target group should be of reasonable size (as shown by the product percent composition and base percent composition) - large enough to be statistically stable and to warrant allocation of marketing resources but not so large as to blur differences in behavior. Note: While carefully considered, well-defined target groups can be invaluable in increasing the efficiency and effectiveness of a marketing program, poorly defined groups can significantly reduce the benefits of a targeting effort. PRIZM Target Finder Reports are especially useful when identifying custom target groups because they highlight demographic and lifestyle similarities between Clusters more comprehensively than a regular sixty-two Cluster report. (See forming custom target groups, in the previous section.) This.report is identical to the PRIZM Profile Report, ranked by social group except that it omits the count for the base profile and includes five additional columns of demographic descriptors that explain the general characteristics of each cluster. Clusters are ranked and grouped by social group code in descending socio-economic order. The additional descriptors shown on these reports include: • Income level (SER) - Cluster's socio-economic category (Wealthy, Middle, Low, etc.) with the Cluster's socio-economic rank in parentheses. • Cluster type (density) - Cluster's predominant neighborhood type (Suburb, Town, Farm, etc.) with the Cluster's population density rank in parentheses, where DOO is the least -densely populated and D99 is the most densely populated. ---- • Cluster household composition - Cluster's predominant family type(s), for example; Singles, Couples, etc. • Adult age - Cluster's predominant age group(s), for example; 25-44, 18-34, etc. • Education - Cluster's average level of education, for example; College graduate, Some college, etc. Copyright 1996, Claritae Inc. , PRIZM Proliles • Who ue the targets?

Cluster Pro6le Report, quintiles ranked by index - This report shows the same data as the report above, except that Clusters are ranked by index of concentration and grouped in quintiles (approximate fifths) of the base count. This format allows you to quickly identify the heavy users of your product. In addition, you can size the market by viewing the quintile subtotals percent composition for both the base and the product. For example, you might find that 50% of your customers come from 20% of the total market. Contents oja profile report Most PRIZM Profile Reports include these measures for each Cluster or group of Clusters (social group or target group): e Count and percent composition (or % down) for the base profile -• the profile of the universe against which the product profile is compared (total adults, total households, etc.). e Count, percent composition (or % down), percent penetration (or % across), and index of concentration for the product profile. The folowing figure represents a typical PRIZM Profile Report: Figure 1 Profile of 1. Drink Vodka (20.3%) Versus Base of Total Adults (8immons 1992-93) PRIZM CLUSTERS BASE PROFILE 1 ------------------------------------- ----•-----------.- ------------------------------•- 6rp # Nickname Count % Comp Count t Comp t Pen Index ------ - ------- --------------------- ----------- ------ ----------- ------ ------ -.---- 31 01 Blue Blood Estates 1,619 ~0.88 424 1.13 26.19 129 81 02 uinner'e Circle 5,413 2.93 1,495 3.97 27.62 136 S1 03 Executive Suites 1,510 0.82 365 0.97 24.17 119 S1 04 Poole & Patios 3,646 . 1.97 1,018 2.71 27.92 137 81 05 Ride k Cul-de-Sace 4,191 2-27 1,039 2.76 24.79 122 . U1 06 Urban Oo1d Coast 265 U1 07 Money & Braine 2,178 U1 06 Young Literati 1,540 U1 09 Americsn Dreams 3,071 U1 . . 10 Bobemian Mix . 2,763 C1 11 Second City Elite 3,537 Cl 12 Upward Bound 2.508 C1 13 Gray Power 2,872 T1 14 Country Squires 2,677 T1 15 God's Country 4,716 T1 16 Big Fieh. Small Pond 3,065 T1 17 6reenbelt Families 2.499 Total 184,971 50 0.13 18.87 569 1.51 26.12 375 1.00 24.35 6*4 1.84 22.60 ,. 708 1.88 25.62_ 93 128 120 111 126 1.91 878 2.33 24.82 122 1.36 791 2.10 31.54 155. 1.55 699 1.66 24.34 120 1.45 657 1.75 24.54 121 2.55 1,077 2.86 22.84 .112 1.67 696 1.85 22.56 111 1.35 442 1.04 15.66 77 100.00 37,620 100.00 20.34 100 U W W Copyright 1996. Clsritu Inc. . ~ PRIZM Proliles • Who are the targets? J I J

PR12M Protile Bar Chart Nho are the targets? Profile index bar chart of Smoke Cresl Fitter vs Base of SMRB 1994/95 Total Adults Cluster Nickname Base Profile XCosp %Canp Index 0 Scale • Index 100 200 300 400 500 .... ........................ ..... ..... ..... . ...............t ...............................................t................ Families Sk 41 Bi 1.3 0.3 24 y g 42 Nw Eco-topia 1.2 1.2 104 ~ 43 River City, USA 1.9 1.6 86 ~~ 44 Shotpuns i Pickups 1.9 0.2 10 ~~ Blues l Cit i 45 1 1 2 3 210 e y nS S . . 46 Hispanic Mix 1.3 0.0 0 ~ 47 lrner Cities 2.0 2.7 134 48 Smalltown Downtown 1.7 1.8 107 I - 49 Hometown Retired 1.2 1.6 133 Isomme Scrasible mil 50 f 0 2 3.3 167 Issmass y a . S1 Southside Cit 2 2 3 5 158 I mimso y . . s C3 .. . . ... . . ... 52 Golden Ponds ... . 2.0 0.9 ~••-. Rii 53 Rural Irdustria 1 3 6.0 476 Imemomm . 54 Norna Rae-ville 1.5 0.5 36 mmmmmmm@1 55 Mines i Mills 1 S 2.9 192 ~~ . T3 ............ ........... .. 56 Agri-Business 1.8 2.5 141 ~~ S7 Grain Belt 1.7 0.9 51 ~~ • R2 .. . . - ••• • - •• - 58 Blue Riyhways 1.8 1.9 ~ i ' 59 Rustic Elders 2.7 1.5 54 esssammel 60 Back Country Folks 2.1 1.8 88 1 61 Scrub Pine Flats 1.8 1.2 67 eimossol 62 Hard Scra6ble 2.0 3.6 186 ~~ ~ f'3 ... . . ... . . ... I I i I I Page 2 t opyripht 1996, Clarites, Inc.

P R I 2 M P r o f 1 l e B a r C h a r t Nho are the targets? Profile index bar chart of Smoke Newport vs Base of SMRB 1994/95 Total Adults ~ B Cluster Nickneme - ------ -------- <1 Big Sky Families 42 New Eco-topia ~ 43 River City, USA . 44 Shotguns i Pickups ,R1 ... . . ... . . ... 45 Single City Blues ,. 46 Hispanic Mix - 47 lnner Cities <8 Smelltown Oowntown 49 Hometown Retired 50 Family Scramble 51 Southside City 52 Golden Ponds SI Rural Industria ' 54 Norme Rae-ville , SS Mines & Mills , S6 Agri-Business ,i 57 Grain BeLt R2 ... . . ... . . ... _ 58 Blue Highways '/ 59 Rustic Elders 60 Beck Country Folks 61 Scrub Pine Flats 62 Hard Scrabble ~3 ,.. . . ... I I I I I I ,:opyright 1996, Claritas, Inc. Base Profile Scale • Index XComp %Coap Index 0 100 200 300 400 S00 600 ..... ..... ..... ...........................................a.......................................... 1.3 1.2 91 51 1.2 0.3 29 1.9 1.8 96 ~ 1.9 2.3 118 (~ .. . 1.1 3.1 275 ~ 1.3 5.0 383 ~ 2.0 11.9 600 ~ 1.7 2.0 117 1.2 0.5 39 2.0 2.2 111 2.2 7.6 339 ~ ....................................... 2.0 0.2 10 1.3 0.2 15 1.5 3.1 211 1.5 0.7 45 ....................................... 1.8 1.4 81 ~~ 1.7 1.0 57 ... . . ... . . ... . . ... . . ... . . ... . . ... . . ... . 1.8 0:9 48 emonvol 2.7 0.7 24 2.1 2.0 95 ~ 1.8 3.1 174 2.0 0.7 36 Page 2 I

PBI2M Profile Report . lM aro the targets? Profila of 1. 9iake Csael Fitter Verau Base of StRB 1994/95 Total Adulta RarfCed by Sxial Grotip PRI2M CUSTERS BiISE PROFILE I . ...................................... .................. ................................ Grp R NiClarent Cant % Cmp Cauit X Ccap X Pen Indeu ........ ....... ..................... ........... ...... ........... ...... ...... ...... RI 43 River City, t15A 3,538 1.87 62 1.61 1.73 86 RI 44 Shotpre i Pidaps 3,624 1.92 7 0.18 0,19 10 lp 45 Sirole City Blues 2,112 1.12 90 2.34 4.26 210 L13 46 HiapaniC Mi% 2,483 1.31 0 0.00 0.00 0 td 47 Imx Cltiea 3,762 1.99 102 2.66 2.71 136 p 48 Saelltan Oantan 3,165 1.67 69 1.80 2.18 107 p 49 HarctCrn Retired 2,255 1.19 61 1.59 2.71 133 p S0 Family Scraible 3,741 1.96 127 3.31 3.39 167 C3 51 Southalde City 4,214 2.23 135 3.51 3.20 158 11 52. Golden Pards 3,7L3 1.97 36 0.94 0.97 45 73 53 Rurol Irdatria 2,381 1.26 230 5.99 9.66 476 73 54 Nonm Rarvllle 2,754 1.46 20 0.52 0.73 36 73 55 Mineo & Mitte 2,827 1.49 110 2.86 3.89 192 R2 56 Agrl•B sinas 3,317 1.75 95 2.47 2.86 141 R2 57 Grain Balt 3,216 1.70 33 0.86 1.03 51 R3 58 Blue Hidaays 3,426 1.81 74 1.93 2.16 106 13 59 RuatiC Etders 5,178 2.74 57 1.48 1.10 54 R3 60 Beck Ca mry Potks 3,988 2.11 71 1.85 1.78 88 R3 61 SCnb Pine Ftats 3,404 1.80 46 1.20 1.35 67 R3 62 Hard SCrehble 3,706 1.96 140 3.64 3.78 186 Total 159,149 100.00 3,841 100.00 2.03 100 Cqyri¢it 19%, Claritas, Inc.

Outdoor Advertising Outdoor targeting can be accomplished using Claritas' local maps depicting the presence of key target groups or market potential index (MPI) scoring to locate desirable board locations. In addition, there are several outdoor companies that work with Claritas and can prepare the maps for you directly. Direct Marketing Direct marketing is the most precise way to hit your target -- you are sending your message to a specific household. It is also the most measurable medium available for targeting. Setting up a campaign to maximize your investment is critical; there are many factors to consider such as: • Is the user/purchase profile the same as those who respond to a similar offer through the mail? • Should I use compiled or vertical lists or a combination of both? • Should I vary my creative message by target group? • What is a response rate I should expect? • How do I set up a direct mail test and measure results? The following is some basic information on how you can incorporate PRIZM into your direct marketing effort, however, we strongly recommend the use of a direct mail agency or service bureau to help you set up an effective and efficient campaign. Compiled lists are those derived from sources including telephone books and automobile registrations. Most offer broad coverage (approximately 80-85% of all U.S. households) as well as selectivity by key demographic variables such as age, income and type of dwelling unit. Each of the following lists has been PRIZM coded as well to allow the selection of PRIZM targeted names for direct marketing campaigns: • ADVO (shared, solo & saturation mailings) • Database America • Donnelley Marketing • Metromail • Polk Direct • TRW Target Marketing Services Copyright 1996, Claritu Inc. 00 ko r PRIZM Mdysis 1+