John Rae CACI Limited Purpose dictates the design of a European segmentation www.caci.co.uk Overview Design issues for a European geodemographic Comparing across Europe European Retail Markets Summary Do European birds of a feather flock together? To what extent do all countries Look alike? Have common socio-demographic patterns? Have equivalent purchasing power? And if they don’t, how might we apply geodemographics? Arthur Grosset's Birds Why would we care? Traditional applications of geodemographics Marketing Location Planning Commonly assumed that geodemographics is the same for both these types of application. Equally valid, approaches to European geodemographics Emphasise national targeting with subsequent blending of countries Emphasise international comparability above national targeting Looking alike? The occupants have similar affluence and perhaps family structure. Common socio-demographic patterns? Do the most deprived live in the cities? Do the more affluent commute in from the “home counties”? Is there a North – South divide? Is there a “demographic time bomb”? Cumulative age profiles 0 25 50 75 100 Under 15 Under 30 Under 45 Under 60 Over 60 % EU IE IT SK Demographic variations 0% 5% 10% 15% 20% 25% 30% aged up to 14 aged 15 to 29 aged 30 to 44 aged 45 to 59 aged over 60 United Kingdom Slovakia Poland Hungary 0% 5% 10% 15% 20% 25% 30% aged up to 14 aged 15 to 29 aged 30 to 44 aged 45 to 59 aged over 60 Italy Holland 0% 5% 10% 15% 20% 25% 30% aged up to 14 aged 15 to 29 aged 30 to 44 aged 45 to 59 aged over 60 Equivalent purchasing power? Some countries are much poorer than others No point in a geodemographic that simply says Eastern Europe is poor, Western Europe is not. Variation in disposable income 0 5000 10000 15000 20000 25000 30000 AT BE CH CZ DE DK ES FI FR GR HR HU IE IT NL NO PL PT RS SE SK UK EU Distribution of disposable income 0 5 10 15 20 25 30 35 40 45 50 CZ RS UK EU euroacorn Comparing places Relative to each country – e.g. disposable income Relative to Europe e.g. age & family structure Emphasise cover across Europe Not smallest possible areas Similar data items across countries, including Age bands Size and type of Households singles, couples, couple with children etc. Employment rates Occupation Spending power Type of dwellings 1 Affluent older singles Highest Spenders 2 Well-off families 3 Well-off empty nester couples 4 Wealthy young singles Comfortable Families & Couples 5 Comfortable elderly couples 6 Comfortable working singles & couples 7 Average older couples & families Families with Children 8 Working families with children 9 Large working families 10 Poorer singles & couples Older Poor 11 Poor elderly singles 12 Poorest traditional elderly 13 Poor overcrowded large families Young Poor with Children 14 Poor singles & couples with children 15 Poorest young families Classifies small areas from 25 countries across Europe. It identifies 15 types of area, which fall into 5 groups euroacorn A – Highest spenders 1 Affluent older singles 2 Well-off families 3 Well-off empty nester couples 4 Wealthy young singles © Eks, Stevecadman, Seansie, losmininos http://creativecommons.org/licenses/by-nd/2.0/ D - Older poor 10 Poorer singles & couples 11 Poor elderly singles 12 Poorest traditional elderly © seier+seier+seier ,pokpok313, luigig http://creativecommons.org/licenses/by-nd/2.0/ North South divides European Retail Markets 1. Broad Retail Markets What are Europe’s top 5 markets How big are France’s top 5 markets 2. Detailed Centre Markets What is the catchment for this centre / development What is the likely turnover of this centre 1. Building Retailer Database 4. Modelling & Calibration 2. Amalgamating Markets 3. Market Scoring & Classification €RM Build Process How? The Four Key Stages Map of Barcelona Region Map of Barcelona Region with retailers Retailers create centres Retail Centres amalgamated into larger market Barcelona Market Scores 4,846 2,625 1,179 2,734 Barcelona Market Classification Major City Large Urban Market Small Urban Market Large Urban Market €RM Market Classes Class Class Name 1 Western Capital 2 Western Major City 3 Western Minor City 4 Western Large Urban Market 5 Western Large Rural Market 6 Western Small Urban Market 7 Western Small Rural Market 8 Eastern Capital 9 Eastern Major City 10 Eastern Minor City 11 Eastern Large Urban Market 12 Eastern Large Rural Market 13 Eastern Small Urban Market 14 Eastern Small Rural Market The Paris Retail Market The Paris Market Catchment Parly Retail Centre Bercy Retail Centre Rosny Retail Centre Adding EuroAcorn Rosny Parly Summary Location planning and targeting may require different forms of geodemographics Comparing locations involves both absolute and relative information Outward appearance counts even less in European geodemographics than in UK geodemographics Adjust the scope of retail markets to the needs of your application