Overview

1
Overview
Social Compact Neighborhood Markets Drill Down
2
Discovering the Hidden Strengthsof Americas
Emerging Neighborhood Markets
3
Addressing the Issues

• Challenges negative stereotypes
• Offsets poverty-focused data
• Addresses the absence of dependable, current,
  business-oriented data and market analysis models
  designed for the inner city

4
Specifically, what is it?

• 1. New source of current and dependable
  business-oriented information on inner-city
  markets
• 2. Third-party, business-based analysis of market
  strengths
• 3. Market profiling tool that adapts the best of
  the suburban market analysis models to respond to
  the realities of the inner-city

5
Whats
So
Special?
6
Multi-industry Focus Size/Growth Buying
Power Risk/Stability
7
Drill Down Components
1. Tapping into non-traditional information
sources 2. Sizing the market 3. Profiling
the real consumer base 4. Adapting measures to
the realities of the inner city 5. Integrating
proprietary corporate experience 6. Identifying
the broader emerging neighborhood market
opportunities
8
Adapts the best of

• Suburban market models

to the inner city
9
Neutral, independent,

• third party
• business-based analysis

10
Integrating

• Two dozen diverse sources
• 50 information building blocks

11
Beyond Census Upgrades
Suburban Market Methodologies that dont fit the
Inner-City Marketplace

• Use fresh data and capture current, localized
  inner-city market developments

Beyond First Source Data
Capture cash economies and hidden populations
Beyond Modeled Data
Reflect local market realities instead of relying
on modeled data on real estate values,
population, homeownership rates and buying power
12

• Beyond Census UpgradesDont capture hidden
  populations and economies (Chicagos Little
  Village Market)
• Census Upgrade Drill Down
• 13,950 18,489 33
• 585 M 773 M 32

Number of households
Aggregate household Income
Sources Census Upgrade Households,National
Decision Systems Census Upgrade Income Scan/US
1998 Drill Down Social Compact Analysis
13

• Beyond First Source Data Companies Dont
  capture hidden populations and economies
  (Chicagos Little Village Market)
• First Source Data Drill Down
• Under 41,803
• 20,000 household income
• 8,281 18,489
• households

Sources First Source Data, Axciom
Corporation Drill Down Social Compact Analysis
14

• Beyond Modeled dataDont capture real growth
  (Chicagos Little Village Market)
• Modeled Data Drill Down
• 69,000 110,000
• 0.04 growth 15 growth

(1998 median housing value)
(1998 median housing value)
(1998 to 2003)
(1996 to 2001)
Sources Census Upgrade Households,National
Decision Systems Census Upgrade Income Scan/US
1998 Drill Down Social Compact Analysis
15
The Neighborhood Market Drill Down
Insight of 23 diverse brand industry
leaders Two dozen information sources 50
information building blocks
16
Drill Down Four Profiles
Tier 1 The core Drill Down Profile a current
demographic, economic and consumer
profile Tier 2 Proprietary Corporate Data
integrates the on-the- street experience of
diverse businesses in the market Tier 3 Below
the Radar Analysis captures the cash economy
and hidden populations Tier 4 Micro-market
Snapshots drill down to individual block
groups to identify market opportunity and
strength
17

Drill Down Data Sources
Source
Information

• Scan/US NDS
• Department of Buildings
• Tax assessors data
• Lysias NAR First American Real Estate
• Harris/DB Experian
• Consumer Expenditure Survey
• Police
• Schools
• Realtors
• Federal Reserve

Census upgrades Building Permit Activity Real
estate information Real estate information Retail
market experience Market opportunity Crime Enroll
ment and capital improvements Rent/Commercial
lease rates per square feet Regional market
growth and employment data
Tier I Business Market Profile

• Utilities
• Insurance companies
• Cable TV
• Financial institutions
• Telecommunications

Tier II Proprietary Corporate Experience
Bill payments, market growth Loss experience,
disposable income Consumption and bill
payments Refinance activity Disposable income
Tier III Below the Radar

• Intercepts/focus groups - Ethnic market research
  firms
• INS Justice
• Currency exchanges

Economic, demographic data, ethnic behavior
patterns Immigration Cash economy
Credit history Real estate activity Credit
histories Income, household size, wealth

• First source data companies
• Lysias NAR
• First American CREDCO
• Focus groups

Tier IV Micro-market Analysis
18
for understanding and profiling a market
50 information building blocks
Aggregate population Number of households Average
household size Family households Average family
size Family households married Households with
children Percent of households with
cars Percentage foreign born Population by
ethnicity/race English as a primary
language Square miles Acreage Population per
acre Households per acre Age segmentation Median
age
Average household income Median household
income Average family household income Median
family household income Households with incomes
50,000 Number of wage earners Concentrated
average household income per
acre Total number of buildings Total number of
housing units Vacant housing units Owner occupied
buildings Owner occupied units
Average/median housing value Average/median
rent Ownership/appreciation Equity formation and
leverage Housing stock/inventory 1990
population Percent population growth Actual
population growth Public school
enrollment Residential building permits Crime
incidents
19
In the Inner City, Markets are a Function of
1. Identifying the critical mass of consumers
with similar demographic and behavioral
characteristics 2. Determining natural and
man-made boundaries that define a community 3.
Understanding how local community and business
leaders define their trade area
20
Why Suburban Market Models Dont Work in
Inner-City Markets(Chicagos Little Village
Market)
3 Mile Ring
Drill Down
Zip Code

• Household Size

3.4
5
4.1

• Population Growth (1990-1998)

1.5
5
59
48
71
98

• Hispanic

Sources 3-Mile Ring, Zip Code Scan/US
1998 Drill Down Household Size, Sanchez Healy
Population Growth, Social Compact Hispanic,
Strategy Research Corporation
21
Understanding

• The Real

Consumer
22
Consumer Research Methodologies That Dont Work
23
Connect through the community
People and Institutions that are trusted

• Intercepts
• Focus Groups

Drill Down
24
Below the Radar Critical consumer characteristics
that you cant effectively get using standard
market data sources
Cash economy
Assimilation
Hidden population
25
The Consumer

• Hispanic Community
• 98 MexicanA
• 72 are foreign-bornB
• 60 communicate primarily in SpanishC
• 40 are age 18 or younger (Chicago 26)D

SOURCE ASanchez Healy BSRC 1998 CNielsen Media
Research 1998 DScan/US 1998 IScan/US 1998