FALL 2015MARKETING ANALYTICS 310

EXCEL ANALYTICS Jan GemmerIzmir Vodinaj

THE DATASET Detailed information on a total of 34051Premium TV channel subscriptions and their subscribers 1. Subscribed channels by each subscriber2. Household demographics, containing information on

household size, differences in age between members, consumer preferences and financial and social status

3. Personal interests of subscribers

TV SUBSCRIBERS: SPORTS CHANNELS VS. OTHER CHANNELS

TV Sports Pack - Premium Sport Channel Total Subscribers: 3,872

05000

10000150002000025000300003500040000

3872

30179

TV SUBSCRIBERS

Sports Pack SubscribersOther TV Channel Subscribers

Data in regards to sports pack subscribers who buy from catalogs or respond to them indicates that sports channels and the rest of the channels* have similar catalog buying and responding frequency rates. Those frequency rates can be considered as low in general, which may be an indication for a more sophisticated audience among Premium Channel subscribers that tends to shop in a more direct fashion, e.g. via Internet. Besides that, the low rate of responding to promotional offers suggests that there is little upside to investing in commercials for catalog promotions. Overall, a marketing team has to analyze if Premium Channels really target the right audience for catalog shopping and if the rather high costs for printing and distributing the catalog are worthwhile.

Oc-ca-

sional45%Frequent

28%

Other27%

Frequency of Sports Channels Cata-log Buyers

SPORTS CHANNELS: FREQUENCY OF BUYERS AND RESPONDERS WHO RESPOND TO AND/OR PURCHASE THROUGH CATALOGS

Oc-ca-

sional54%

Frequent16%

Other30%

Frequency of Sports Channels Cata-log Responders

*Check Appendix A for All Channels Catalog Respondents or Purchase Frequency Graphs

Sports Pack Responders BuyersOccasional 2084 1739Frequent 617 1082

TV SUBSCRIPTION: SPORTS & MOVIES

Sports Pack HBO Starz0

2000

4000

6000

8000

10000

12000

14000

3872

10426 11534

TV Subscriber Comparison

Sports Channels HBO Movie Channels

Starz Movie Channels

3872 10426 11534

CATALOG FREQUENT BUYERS IN SPORTS AND MOVIES

Series10.2620.2640.2660.2680.27

0.2720.2740.2760.2780.28

0.282 27.94%

26.91%

28.08%

Catalog Frequent Buyers in Sports and Movies

Sports Pack HBO Starz

BUYERS/CHANNELS

SPORTS

HBO STARZ

FREQUENT 1082 2806 3239TOTAL 3872 10426 11534FREQUENT/TOTAL

27.9% 26.9% 28.1%

While HBO Catalog Frequent Buyer % is lower than Sports and Starz, the percentages of all three categories are very close to each other. This means that catalogs as a promotional tool bring almost the same results in different channel categories, in our case sports and movies. Depending on what price the marketing team pays for catalogsas a promotional channel, they could potentiallydecrease the number of catalogs if the ROI is low.

INTERESTS OF TV SPORT CHANNELS SUBSCRIBERSSports Pack/Interests Golfing Health Motorcycle Outdoor Sports FanNon-Subscribers 11% 52% 3% 31% 6%Subscribers 12% 49% 3% 28% 7%

Subscr ibers Non-Subscr ibers0%

20%

40%

60%

80%

100%

120%

11% 12%

52% 49%

3% 3%

31% 28%

6% 7%

Life interests of Sports channels subscribers

and non-subscribers

Golfing Health Motorcycle Outdoor Sports Fan

There are no significant differences in interests. This indicates that a lot of people buy Sports Pack as part of a bigger Pay TV subscription and that they are not particularly interested in the Sports Pack itself. Looking at the details, one can see relatively sharp differences in Outdoor and Health. People with a high awareness for Health will watch less TV due to the ramifications for eyes and other health issues. Also, people with a preference for Outdoor activities will only subscribe to basic TV channels, as they spend more time outside. Finally, we see slight preferences for sport activities from Sports Pack subscribers. All of this information is very valuable for target marketing and choosing the right market segment.

SPORTS CHANNEL SUBSCRIBERS AND THEIR HOBBIES

Frequency/Interest Health Golf Outdoor Sports Fan Motorcycle

Infrequent 22% 6% 12% 4% 3%Occasional 44% 9% 22% 7% 3%Moderate 51% 13% 31% 7% 4%Frequent 72% 18% 44% 10% 2%

Infrequent Occasional Moderate Frequent22%

44% 51%72%

6%

9%13%

18%

12%

22%31%

44%

4%

7%7%

10%

3%

3%4%

2%

Hobbies of Catalog Sport Subscribers

Health Golf Outdoor Sports Fan Motorcycle

Data here tells us that the Frequent Catalog Sports Subscribers are the most interested in health and outdoor activities. This could be a strong indicator when it comes to targetingthe customer. For example, now channels can focus less on those who like motorcycles and spend more time on those who are interested in health and outdoor activities.

BUYER FREQUENCY RELATIVE TO INTERESTS

Golf Outdoor Motorcycle Health Sports fan0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2.48 2.382.54

2.202.51

2.94 2.95

2.43

2.88 2.80

AVERAGE BUYER RATINGS FOR DIFFERENT INTERESTS

Not Interested Interested

The data suggests that there is a positive correlation between interests and Buyer Ratings. Expect for an interest in Motorcycles, average Buyer Ratings are significantly higher, when a subscriber shows interest in one of the categories.Potential reasons are greater wealth among those interested (all interests are “luxury goods”) and the good fit of catalog shopping to the the different interests. As a result, a marketing team may want to create very specific catalogs in order to target the relevant audience more easily. Additionally, a catalogue should focus on products that do not require a high involvement during the purchase decision (see “Motorcycle”).

APPENDIX A

Oc-ca-sional

44%

Fre-quen

t29%

Other27%

Frequency of All Channels Catalog Buyers

Oc-ca-

sional

53%Fre-quent18%

Other29%

Frequency of All Channels Catalog Respondents