Harry & David

Market Segments

Actionable, Predictive Segmentation Model•PRIZM describes every U.S. Household in terms of 66 distinct lifestyle types, called “segments”•Every segment gives extremely detailed quantifiable data on consumer markets, including travel, eating out, shopping, demographics, media consumption and psychographics•RDA can plan H&D campaigns and media strategies for targeted market segments using PRIZM to answer: Who are the targets, What are they like, Where can I find them, How can I reach them in direct response, online, on TV, in print, out of home and near stores.

Harry & David Core Consumer Stats

• 21 Market Segments make up the H&D Core Consumer Profile

• The Core Consumer Profile entails about 35.7 million households around the country

• 68% of the core consumer segment comes from 31% of United States households

• The average order of the Core Consumer is 1.6 items• The average amount spent by the Core Consumer is

$134.51

Harry & DavidCore Consumer Segments

• The Drivers (5.13% comp)• The Ready but Steadies (6.22% Comp)• The Good Life's (7.2% Comp)• The Gatsby’s (6.6% Comp)• The Jones (5.89% Comp)

The Drivers• The Drivers consist of:

– Beltway Boomers (0.97% Comp)– The Cosmopolitans (1.15% Comp)– New Empty Nests (1.06% Comp)– Money and Brains (1.95% Comp)

• The Drivers always have their foot on the pedal. Whether it is traveling to a different part of the world or taking a trip down to the local wholesale store, these older individuals know what they want and will not stop until they get it. The car brand of choice to get around the city and suburbs for The Drivers is Lexus. Their generous paycheck is spent at department stores like Nordstrom's and Bloomingdales.

(5.13% Comp) (196.25 Index Average)

The Drivers Stats• Beltway Boomers

– Index: 136– Average item order: 1.53– Average amount spent: $104.12

• The Cosmopolitans – Index: 175– Average item order: 1.5– Average amount spent: $144.10

• New Empty Nests – Index: 152– Average item order: 1.37– Average amount spent: $139.54

• Money and Brains – Index: 322– Average item order: 1.48– Average amount spent: $118.81

The Drivers

• Consumer Behaviors– Buys classical music– Contributes to NPR

• Media Behaviors– Watches 60 Minutes– Reads the Sunday Paper

• Demographics– 45+ age group

Ready but Steadies• The Ready but Steadies consist of:

– Middleburg Managers (2.00% Comp)– Second City Elite (1.28% Comp)– Pools and Patios (1.32% Comp)– Brite Lites, Li’l City (1.62% Comp)

• Do not be fooled by the name Ready but Steadies. They might enjoy where they are in life now, but can always move on to something different. Hailing from second cities this middle aged artsy group is climbing to the peak of success. Mostly without kids the Ready but Steadies enjoy theater dance productions as well as books on tapes. It would not be uncommon to find someone in this group in a store like Crate and Barrel or Pottery Barn.

(6.22% Comp) (173 Index Average)

Ready But Steadies Stats• Middleburg Managers

– Index: 121– Average item order: 1.5– Average amount spent: $101.62

• Second City Elite– Index: 214– Average item order: 1.59– Average amount spent: $134.64

• Pools & Patios– Index: 176– Average item order: 2.17– Average amount spent: $219.04

• Brite Lites, Li’l City– Index: 181– Average item order: 1.58– Average amount spent: $188.71

Ready but Steadies

• Consumer Behaviors– Shops at Talbots– Owns Timeshares– Drives a Subaru Forester

• Media Behaviors– Reads Macworld

• Demographics– 35-64 age group

The Good Life

• The Good Life consist of:– Big Fish, Small Pond– God’s Country– Country Squires– Fast Track Families

• The Good Life is the high life. High powered jobs with laid back leisure is the name of the game. The Good Life's enjoy days at the country club playing golf or spending quality family time on the power boat. These mid-age, upscale, town dwellers love cruising around in their BMW or Cadillac and making a stop at the local L.L. Bean. Wholesale websites such as Zappos.com, Amazon.com and Buy.com are among some of their favorite shopping sites.

(7.2% Comp) (243.75 Index Average)

The Good Life Stats• Big Fish, Small Pond

– Index: 203– Average item order: 1.88– Average amount spent: $132.61

• God’s Country– Index: 283– Average item order: 1.57– Average amount spent: $166.95

• Country Squires– Index: 362– Average item order: 1.6– Average amount spent: $155.21

• Fast Track Families– Index: 139– Average item order: 1.69– Average amount spent: $164.66

The Good Life

• Consumer Behaviors– Rents Pay-Per-View movies– Business Travel by airplane– Takes golf vacations

• Media Behaviors– Netflix– Watches the Masters

• Demographics– Mostly 35-54 age range

The Gatsby’s

• The Gatsby’s consist of:– Kids and Cul-de-sacs– Upward Bound– Young Digerati– Winners Circle– Blue Blood Estates

• The Gatsby’s are the epitome of the “American Dream”, young, wealthy, diverse, suburban families that pride themselves on education and fun. Taking family vacations, being a soccer mom and having a high level business executive job would all describe how The Gatsby’s operate. Million dollar homes filled with top of the line Thomasville furniture and closets decked out with Neiman Marcus department store suits is just one of the ways The Gatsby’s stay trendy and on top. Do not let the money fool you though. The Gatsby’s know what is important and that is their family/children. That is why the Disney Store, Nickelodeon and ToonDisney are Gatsby household names.

(6.6% Comp)(249.6 Index Average)

The Gatsby’s Stats• Kids & Cul de Sacs

– Index: 131– Average item order: 1.66– Average amount spent: $114.52

• Upward Bound– Index: 176– Average item order: 1.5– Average amount spent: $111.57

• Young Digerati– Index: 205– Average item order: 1.29– Average amount spent: $89.73

• Winners Circle– Index: 416– Average item order: 1.46– Average amount spent: $136.79

• Blue Blood Estates– Index: 320– Average item order: 2.12– Average amount spent: $224.19

The Gatsby’s

• Consumer Behaviors– Shops at Target.com– Shops at Expedia.com– Takes ski/snowboarding trips

• Media Behaviors– Orders Video-On-Demand

• Demographics– Majority is 25-44 age range

The Jones

• The Jones consist of:– Movers and Shakers– Executive Suites– Home Sweet Home– Upper Crust

• There is no point in trying to keep up with these middle age and wealthy people. The Jones take full advantage of not having any children by starting their own businesses, working at home and chilling at the country club. If they are not shopping at Saks 5th Ave, IKEA or J-Crew, most likely The Jones will be at home watching Saturday Night Live or The Office. To get around the suburbs this group likes to ride in style so, Mercedes, Acuras and Range Rovers are all common.

(5.89% Comp)(226 Index Average)

The Jones Stats• Movers & Shakers

– Index: 339– Average item order: 1.46– Average amount spent: $172.14

• Executive Suites– Index: 177– Average item order: 1.56– Average amount spent: $78.23

• Home Sweet Home– Index: 110– Average item order: 2.3– Average amount spent: $146.99

• Upper Crust– Index: 278– Average item order: 1.45– Average amount spent: $152.614

The Jones

• Consumer Behaviors– Has in home exercise equipment– Owns Pets– Rents or buys exercise videos

• Media Behaviors– Reads Wired Magazine– Watches the Style Channel

• Demographics– White collar jobs downtown– Between 35-55 years old

Harry & David Opportunities for the Future

• We found 8 consumer segments that have potential for Harry & David. If marketed to more, these 8 consumer segments have the possibility to increase sales for Harry & David. With research, we found that these 8 segments, averages do not differ from the core consumer segments that much. Lastly, we broke those 8 segments in to 2 groups.

• Introducing:– Team Adventures– The Renaissance

Team Adventures

• The Adventures consist of:– Red, White, and Blues– Greenbelt Sports– Big Sky Families– Mayberry-ville

Segment Urbanicity Income Age Kids? Race % Comp Index Avg. OrderAvg. $ Avg. $ Index% IndexRed, White and Blues Town Lower-Mid 35-54 w/o kids W 1.08 28 2.66667 227.333 163.5492 27.7Greenbelt Sports Town/Rural Upper-Mid 35-54 w/o kids W 1.39 80 1.18182 178.078 128.7738 79.8561Big Sky Families Rural Upper-Mid 25-44 w/ kids W 1.86 54 1.7 155.782 112.0734 54.3Mayberry-ville Town/Rural Upper-Mid 35-54 w/o kids W 2.41 50 2.08333 164.098 118.0564 50.207Adventures Total= 212.0631Adventures Average= 53.01578

Team Adventure

• Team Adventures are young, rural adults who love to be outside in the wilderness. You name it, hunting, fishing and canoeing are all pleasures for these midscale income people. Four Wheeling or riding in their diesel pick up truck is the easiest way to get around to the local Lowes store. Partaking in a bidding war on ebay.com or watching the lottery numbers on TV sum up these once blue collar workers turned service industry employees.

The Adventures

• Consumer Behaviors– Drives a Subaru Legacy– Orders from Lands End

• Media Behaviors– Watches the Daytona 500– Reads Bass Master Magazine

• Demographics– 6.74% of the potential market

The Renaissance

• The Renaissance consist of:– Family Thrifts– Bohemian Mix– New Beginnings– Multi-Culti Mosaic

Segment Urbanicity Income Age Kids? Race % Comp Index Avg. OrderAvg. $ Avg. $ Index% IndexFamily Thrifts Second City Lower-Mid <45 w/ kids W,B,H,Mix 1.82 22 1.5 365.935 263.2626 21.97Bohemian Mix Urban Midscale <55 Family Mix W,B,A,H,Mix 1.79 90 1.375 160.532 115.4906 90.502New Beginnings Suburban Downscale <45 Family Mix W,B,A,H,Mix 1.4 36 1.75 153.78 110.6331 26.84Multi-Culti Mosaic Urban Lower-Mid 35-54 Mostly w/ kids W,B,A,H,Mix 1.68 24 1.25 184.163 132.491 23.8Renaissance Total= 163.112Renaissance Average= 40.778

The Renaissance

• The name says it all. The Renaissance is the rebirth. Diverse in all aspects, The Renaissance group is up on all the latest trends and movies. Not the richest group but they do well with what they have. Express clothing store and the fuel efficient Volkswagen allow them to save for premier items. These adults in transition have kids and live a faster paced life in the city and suburbs. Mostly Immigrants, The Renaissance group is like a baby and wants to see what America has to offer.

The Renaissance

• Consumer Behaviors– Shops at Walgreens and CVS– Drives Kia and Suzuki brand cars

• Media Behaviors– Watches:

• Univision• Telemundo• Premios Juventud

• Demographics– Entry level jobs– 6.69% of the potential market