Transcript Saarf LSM presentation 2009

SAARF Universal
®
LSM
SAARF Training
• Module 1 - General Overview of SAARF & all
products
• Module 2 - All Media & Products Survey
(AMPS®)
• Module 3 - Television Audience Measurement
Survey (TAMS®) and Radio Audience
Measurement Survey (RAMS®)
• Module 4 - All segmentation tools including
LSM®
• Lone standing LSM®
What information is
available
• Trend Booklet – Shows trended AMPS® data over a
period of 5 years. Provides basic penetration data
and has a section with all data by SU-LSM®
• Main AMPS® CD* – All AMPS® data by detailed
media within each SU-LSM® (SU-LSM 1-4 grouped)
• Branded AMPS® CD – All AMPS® products by
community size, province, literacy, household
purchaser, life stage, metropolitan areas, gender,
age, home language, population group,
employment status, occupation, level of education
achieved, household income, SU-LSM®s & the
product itself
* Available on www.saarf.co.za
What information is
available…
• Segmentation CD - Explains the various
segmentation tools in detail and provides some
interesting cross tabulations
• www.saarf.co.za - History, FAQ, presentations,
press releases, technical reports (has section on
SU-LSM® that indicates variables and their weight
and the corresponding question in the
questionnaire), basic information on print and
radio penetration etc
• Computer Bureaus - Specialised runs available at
a cost from software companies (AGBNMR,
Eighty20, IMS, Infosense, Softcopy & Telmar)
What is Market Segmentation?
• It’s the task of breaking the total market
(which is typically too large to serve) into
segments that share common properties
• A market segment is a gross slice of the
market such as high-income car buyers
• A market niche is a smaller, specially formed
segment, such as high-income car buyers
who want high-performance sports cars
Types of Market
Segmentation
• Demographic
• Geographic
•
•
•
•
•
•
•
•
Life Stage
Behaviour
Usage
Socio-economic
Psychographic
Perceptions
Wants / Needs
Multi-attribute
Over Segmentation on
Sample
Size
Filter
®
AMPS
‘000
Population
Adults
21 090
31 303
Adult Women
10 561
15 704
Adult Women, aged 25-34
2 206
3 599
Adult Women, aged 25-34, LSM 10
177
154
Adult Women, aged 25-34, LSM 10, with
children
108
92
Adult Women, aged 25-34, LSM 10, with
children, divorced/widowed/separated
4
2**
** Highly unstable data
SOURCE: SAARF AMPS 2008A
Need for &
Development of
®
LSM
What is SAARF Living Standards
Measure (LSM®) ?
• The SAARF LSM is not the only type of
segmentation tool
• It is based on access to services and
durables, and geographic indicators as
determinants of standard of living
• LSM is a very stable and dependable
differentiator and the AMPS variables are
particularly suited to this
What is SAARF Living Standards
Measure (LSM®)?...
• The SAARF Universal LSM® is a Target
Marketing Tool that is also used for the
selection of appropriate media, therefore, no
media related variables are used in its
construction
• No personal attributes (except in 1995 and
2000 LSMs) are used
• Income never used
Rationale For Segmentation
• Some people tend to behave in a different
fashion from others
• Some people tend to behave in similar fashion
Thus
• Try to group similar people together
• Try to distinguish between different people
In Statistical Terms
• Maximise variation between groups
• Minimise variation within groups
For Advertising/Marketing
Purposes
• Identify the target market / audience as
accurately as possible
• Aim is to reach 100% of target market, i.e.
Maximise reach
• With 0% (minimum) wastage
Traditional Approach
•
Single variables, usually demographics
(profiles)
Shortcoming ?
•
Useful, but often not strong differentiators on
their own
•
LSM index developed to find the best
combination of variables from AMPS®
Process of Development
• Urban vs. Rural debate
• Community size classification
• Lever Brothers’ experience
• Realisation internationally (UK & US) that
demographics are not a strong
differentiator of behaviour when used on
their own
It’s Not Just About
Demographics
Source: Admap December 1990
Requirements Of The SAARF
LSM®
• It must have broad application across the
total market
• Must be simple to use, easy to link to other
surveys
• Must be stable over time, but sensitive
enough to register changes
SAARF LSM® – National
1993 LSMs
SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 21 090(’08A)
POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 303 000 (’08A)
SAARF LSM® – Gauteng
1993 LSMs
SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 21 090(’08A)
POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 303 000 (’08A)
SAARF LSM® – KZN
SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 21 090(’08A)
POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 303 000 (’08A)
SAARF LSM® – Western Cape
1993 LSMs
SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 21 090(’08A)
POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 303 000 (’08A)
LSM may not be useful
in all instances
SU-LSM® – Monthly Magazines
Femina
Cosmopolitan
50.0
40.0
30.0
20.0
10.0
0.0
SOURCE: SAARF AMPS 2008A
Bona
Caravan & Outdoor Life
2001 LSMs
Age – Monthly Magazines
SOURCE: SAARF AMPS 2008A
Gender - Monthly Magazines
SOURCE: SAARF AMPS 2008A
Cell Phone Penetration Within
SU-LSM®
SOURCE: SAARF AMPS 2008A
% Listenership: SU- LSM® 1-5
SOURCE: SAARF AMPS 2008A
% Listenership: SU-LSM® 1-5
SOURCE: SAARF AMPS 2008A
% Listenership: SU-LSM® 6-10
SOURCE: SAARF AMPS 2008A
% Listenership: SU-LSM® 6 -10
SOURCE: SAARF AMPS 2008A
LSM® Input Variables
• Approximately 70 AMPS® variables selected on
logical grounds
• Analysed multi-dimensionally by applying:
• principle component analysis
• stepwise regression analysis
1993 SAARF LSM® Variables
1. Fridge/Freezer
2. No Water or
Electricity
3. Polisher/Vacuum
Cleaner
4. Non-Supermarket
Shopper
5. No Car in HH
6. TV Set
7. Microwave Oven
Rural dweller (not
PWV & W.Cape)
9. Hi-fi/Music Centre
10. No Domestic
Worker
11. Washing Machine
12. Sewing Machine
13. Metropolitan
Dweller
8.
1995 LSMs
• Non-Household Supermarket Shopper
became Household Supermarket Shopper
• No Water or Electricity was dropped
• The following variables were added:
• Non-Supermarket Shopper (Personal)
• Flush Toilet
• Hot Running Water
• No Financial Services Used (Personal)
• No Insurance Policy (Personal)
• No Credit Facility (Personal)
• Hut Dweller
• Home Telephone
2000 LSMs
• Non-Supermarket Shopper (Personal) became
Supermarket Shopper (Personal)
• No Credit Facility (Personal) became Credit/Credit
Facility including Retail Card (Personal)
• The following variables were dropped:
• Rural Dweller
• Metropolitan Dweller
• Household Supermarket Shopper
• The following variables were added:
• Built-in Kitchen Sink
• Electric Stove/Hotplate
• VCR
• Sedan car
New SAARF Universal
®
LSM
Early LSMs
• Several unforeseen difficulties, challenges and
biases were experienced through the initial
development phases of the LSM’s
Some of these are:
• Each time variables changed the LSM changed
• The personal variables introduced in 1995 created
gender and age biases
• These personal variables also created difficulties
with TAMS (entire household interviewed vs. AMPS
individuals)
• LSM’s did not differentiate sufficiently at the top end
(8 groups to 10)
SU-LSM® Variables
• Of the 20 variables that formed the 2000 LSM ®’s,
only 15 were retained in the SU-LSM®’s
• All the personal variables that created biases
were removed:
• Supermarket Shopper
• No Financial Services
• No Insurance Policy
• Credit Facility including Retail Card
• No car in household was also dropped as it was no
longer a good differentiator
• 14 new variables were added
SU-LSM® Variables (2001)
Old Variables Retained:
1. Electric Stove/Hotplate
2. Microwave Oven
3. Flush Toilet
4. No Domestic Worker
5. VCR
6. Vacuum Cleaner/Floor
Polisher
7. Traditional Hut
8. 1/more Sedan Car
9. Washing Machine
10. TV Set
11. Home Telephone
12. Hi-Fi/Music Centre
13. Built-in Kitchen Sink
14. Hot Running Water
15. Fridge/Freezer
New Variables:
1. Deep Freezer
2. Water in Home/On Plot
3. MNET/DStv Subscription
4. Dishwasher
5. Electricity
6. Sewing Machine
7. Gauteng
8. Western Cape
9. No Cellphone in Household
10. PC in Home
11. Tumble Dryer
12. Less than two Radio Set in
Household
13. Non-Urban outside GP/WC
14. Home Security Service
Naming The New SAARF LSM®
•
As these new improved LSMs are now
universally applicable to all respondents and to
all current and future SAARF surveys they were
renamed the SAARF Universal LSM (SU-LSM®)
PLEASE NOTE:
•
If you need to trend further back than 2001 you
need to use the 1993 LSM®’s
Benefits of New SAARF Universal
LSM®
•
As South African society develops, the groups
can be extended beyond 10. This will obviate
the need for a new LSM every now and then
•
Can be updated and remain trendable
•
The proven stability of the measure will thus be
complemented with a sensitivity to the
changing landscape
SU- LSM® Update 2004
Variables Dropped (4)
• Traditional Hut
• Electricity
• Gauteng
• Western Cape
New Variables (4)
• House/cluster House, Town House
• Metropolitan Dweller
• DVD Player
• One Cell Phone in Household
SAARF LSM® Update 2008A
Variables Dropped (3)
•
•
•
Sewing machine
No cell phone in household
1 cell phone in household
New Variables (3)
•
•
•
Home theatre system
2 cell phones in household
3+ cell phones in household
SAARF LSM® Extension:
•
LSM 7-10 have been split to show high and low
groups for finer segmentation
Current SAARF LSM®
Variables
How to calculate SU-LSM®
• Determine the variables with which the respondent complies
• Sum the weights for the 29 variables for each respondent
• Add a constant -0.442690
• Allocate the respondent to an SU-LSM as follows:
SAARF LSM® Groups
Penetration
Ave HH Income
2006RA
2007B
2008A
2006RA
2007B
2008A
SU-LSM 1
6.1
4.1
3.4
R 999.06
R 1,028.15
R 1,080.45
SU-LSM 2
12.2
9.8
8.7
R 1,214.18
R 1,275.25
R 1,401.29
SU-LSM 3
12.6
10.8
9.4
R 1,521.09
R 1,638.06
R 1,794.81
SU-LSM 4
14.9
13.8
14.6
R 1,939.68
R 2,140.55
R 2,535.68
SU-LSM 5
13.5
14.5
15.5
R 2,681.45
R 2,952.07
R 3,122.33
SU-LSM 6
14.4
17.3
17.9
R 4,404.25
R 5,096.28
R 5,386.00
SU-LSM 7
7.8
9.3
9.4
R 6,840.77
R 8,320.26
R 8,667.33
SU-LSM 8
5.7
6.7
6.9
R 9,251.86
R 11,227.27
R 12,336.69
SU-LSM 9
6.7
7.6
8.1
R 12,557.86
R 14,740.73
R 16,296.05
6
6.1
6.1
R 19,817.03
R 20,902.03
R 23,053.57
SU-LSM 10
Significant increase on 2007B
Significant decrease on 2007B
Number of Adults in each LSM®
Population
Respondents
% Pop
SU-LSM 1
1,062,000
139
3.4
SU-LSM 2
2,732,000
424
8.7
SU-LSM 3
2,953,000
682
9.4
SU-LSM 4
4,557,000
1,526
14.6
SU-LSM 5
4,843,000
2,423
15.5
SU-LSM 6
5,597,000
4,458
17.9
SU-LSM 7L
1,499,000
1,439
4.8
SU-LSM 7H
1,459,000
1,538
4.7
SU-LSM 8L
SU-LSM 8H
1,088,000
1,070,000
1,272
1,245
3.5
3.4
SU-LSM 9L
SU-LSM 9H
1,281,000
1,265,000
1,585
1,657
4.1
4.0
SU-LSM 10L
950,000
1,320
3.0
SU-LSM 10H
948,000
1,382
3.0
SOURCE: SAARF AMPS 2008A
SU-LSM® By Province
Limpopo
Lsm 1- 4
Lsm 5
Lsm 6
Lsm 7
Lsm 8
Lsm 9
Lsm 10
Gauteng
Mpumalanga
North West
Free State
KwaZulu-Natal
Northern Cape
Eastern Cape
Western Cape
% of Province that is Rural
More than 60 %
SOURCE: SAARF AMPS 2008A
31 to 60 %
11 to 30 %
up to 10 %
PLEASE NOTE:
The descriptions of the 10 SU-LSM® groups in
some of the following slides show those
descriptors that are above national average
for each SU-LSM® group.
So for example, African Language Stations are
above national average for LSM® 1-5. This
however, does not mean that LSM® 6-10 do not
listen to ALS.
ALS by SU-LSM®
SOURCE: SAARF AMPS 2008A
Summary Of New SU-LSM®
Groups (AMPS ® 2008A)
LSM 1 (3.4%)
DEMOGRAPHICS
Female
50+
Primary Completed
Rural
Traditional Hut
LSM 2 (8.7%)
DEMOGRAPHICS
Female
16 – 24, 50+
Some High School
Rural
House/Matchbox house
R1 080 ave hh income per month
R1 401 ave hh income per month
MEDIA
Radio a major channel of media
communication - Commercial
radio; mainly African Language
Services (ALS)
MEDIA
Radio: Commercial, mainly ALS
GENERAL
Minimal access to services
Minimal ownership of durables,
except radio sets
GENERAL
Water on plot
Minimal ownership of durables,
except radio sets and stoves
Summary Of New SU-LSM®
Groups (AMPS ® 2008A)
LSM 3 (9.4%)
DEMOGRAPHICS
Male
16 – 24, 50+
Up to some high
Rural
House/Matchbox house
R1 795 ave hh income per month
MEDIA
Radio: commercial mainly ALS
stations, Ukhozi FM, Umhlobo
Wenene FM
TV: SABC 1
Outdoor
GENERAL
Electricity, water on plot
Minimal ownership of durables,
except radio sets and stoves
Activities – lottery tickets
LSM 4 (14.6%)
DEMOGRAPHICS
Male
16 - 34
Schooling up to some high
Rural
R2 536 ave hh income per month
MEDIA
Radio: commercial mainly ALS
stations, Metro fm
TV: SABC 1,2, ETV
Outdoor
GENERAL
Electricity, water on plot, flush toilet
TV sets, hi-fi/radio set, electric
hotplates, fridge
Activities - stokvel meeting,
lottery tickets, eat and buy take away
food
Summary Of New SU-LSM®
Groups (AMPS ® 2008A)
LSM 5 (15.5%)
DEMOGRAPHICS
Male
16-34
Up to Matric
Rural
LSM 6 (17.9%)
DEMOGRAPHICS
Male
25-49
Matric and higher
Urban
R3 122ave hh income per month
R5 386 ave hh income per month
MEDIA
Radio: commercial mainly ALS stations,
Metro fm
TV: SABC 1,2,3, e.tv
Daily/Weekly Newspapers, Magazines
Outdoor
MEDIA
Wide range of commercial & community
radio
TV: SABC 1,2,3, e.tv
Daily/Weekly Newspapers, Magazines
Cinema & Outdoor
GENERAL
Electricity, water, flush toilet
TV sets, hi-fi/radio set, stove, fridge
Activities: started exercising, painted
interior of house, stokvel meeting,
purchase take-away food, lottery tickets
GENERAL
Electricity, hot running water, flush
toilet
Ownership of a number of durables plus
cell phone
Participated in a number of activities
Summary Of New SU-LSM®
Groups (AMPS ® 2008A)
LSM 7 LOW (4.8%)
DEMOGRAPHICS
Female
25- 34 , 50+
Matric and higher
Urban
R7 837 ave hh income per month
LSM 7 HIGH (4.7%)
DEMOGRAPHICS
MEDIA
Wide range of commercial &
community radio
TV: SABC 1,2,3, e.tv, M-Net
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
MEDIA
Wide range of commercial &
community radio
TV: SABC 1,2,3, e.tv, M-Net & DStv
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
GENERAL
Full access to services
Increased ownership of durables plus
motor vehicle
Participation in all activities
GENERAL
Full access to services
Increased ownership of durables plus
motor vehicle
Participation in all activities
35-49
Matric and higher
Urban
R9 540 ave hh income per month
Summary Of New SU-LSM®
Groups (AMPS ® 2008A)
LSM 8 LOW (3.5%)
DEMOGRAPHICS
Male
35+
Matric and higher, Urban
LSM 8 HIGH (3.4%)
DEMOGRAPHICS
R11 148 ave hh income per month
R13546 ave hh income per month
MEDIA
Wide range of commercial & community
radio
TV: SABC 1,2,3, e.tv, M-Net, DStv
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
MEDIA
Wide range of commercial & community
radio
TV: SABC 1,2,3, e.tv, M-Net, DStv
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
GENERAL
Full access to services
Full ownership of durables, incl. DVD, PC
and satellite dish
Increased participation in activities
GENERAL
Full access to services
Full ownership of durables, incl. DVD, PC
and satellite dish
Increased participation in activities
35+
Matric and higher, Urban
Summary Of New SU-LSM®
Groups (AMPS ® 2008A)
LSM 9 LOW (4.1%)
DEMOGRAPHICS
Male
35+
Matric and higher, Urban
R14 536 ave hh income per month
LSM 9 HIGH (4.0%)
DEMOGRAPHICS
Male
35+
Matric and higher, Urban
R18 079 ave hh income per month
MEDIA
Wide range of commercial &
community radio
TV: SABC 2,3, e.tv, M-Net, DStv
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
MEDIA
Wide range of commercial &
community radio
TV: SABC 2,3, e.tv, M-Net, DStv
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
GENERAL
Full access to services
Full ownership of durables,
Incl. PC, DVD and satellite dish
Increased participation in activities,
excluding stokvel meetings
GENERAL
Full access to services
Full ownership of durables,
Incl. PC, DVD and satellite dish
Increased participation in activities,
excluding stokvel meetings
Summary Of New SU-LSM®
Groups (AMPS ® 2008A)
LSM 10 LOW (3.0%)
DEMOGRAPHICS
Male
35+
Matric and higher, Urban
R20 591 ave hh income per month
LSM 10 HIGH (3.0%)
DEMOGRAPHICS
MEDIA
Wide range of commercial & community
radio
TV: SABC 2,3, e.tv, M-Net, DStv
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
MEDIA
Wide range of commercial & community
radio
TV: SABC 2,3, e.tv, M-Net, DStv
Daily/Weekly Newspapers, Magazines
Accessed internet 4 weeks
Cinema & Outdoor
GENERAL
Full access to services
Full ownership of durables,
Incl. PC, DVD and satellite dish
Increased participation in
activities, excluding stokvel
meetings
GENERAL
Full access to services
Full ownership of durables,
Incl. PC, DVD and satellite dish
Increased participation in
activities, excluding stokvel
meetings
35+
Matric and higher, Urban
R25 520 ave hh income per month
Conclusion
• Remember that there are many other powerful
differentiators in AMPS that could be used in
conjunction with the LSM®s, e.g. Lifestages,
Education, Mothers with children, Household
purchaser, Large item purchaser, Occupation,
Gender, Language, Family size and Age
• NB! Do not over segment
THANK YOU!