Geodemographic classifications

Introduction

Geodemographic classifications - sometimes called discriminators - use 1991 Census and other data to classify local neighbourhoods in an attempt to:
  • create a series of clusters which provide the most powerful possible discrimination of consumer behaviour, lifestyles and attitudes
  • build types which are as recognisable and meaningful as possible to marketers
  • ensure that each of the types contain sufficient numbers of households to be statistically reliable for most analyses
  • ensure that each of the types are reasonably homogeneous in terms of demographics and consumer behaviour
  • avoid an excessive concentration of individual types within particular regions, except where absolutely necessary

    (CCN, 1993, MOSAIC Handbook, Nottingham.)

    • Classifications are particularly useful for direct marketing, targeting and demand modelling applications. Geodemographic classifications also offer a mechanism for using survey research data such as the Target Group Index (TGI) to produce product purchasing estimates.

    Prices are in UK Sterling and refer to single-user licensing on a personal computer.

    MOSAIC

    MOSAIC is the latest in a series of neighbourhood classification systems built by CCN, whose UK experience stretches back over four generations of Censuses; 1966, 1971, 1981 and the most recent, 1991.

    MOSAIC classifies each of the 1.5 million unit postcodes in the UK, each postcode containing on average just 15 addresses. The classification is updated periodically in line with changes to the Royal Mail's POSTZON file.

    The postcodes have been classified using information at three levels of geographic detail: unit postcodes, Census enumeration districts and pseudo enumeration districts (the latter comprising sets of postcodes belonging to a common postcode sector). Sources of information used in the 'iterative relocation' cluster algorithm include:

  • Census Statistics
    Age
    Marital status
    Recent movers
    Household composition
    Household size
    Employment type
    Travel to work
    Unemployment
    Car ownership
    Housing tenure
    Amenities
    Housing type
    Socio Economic Group

  • County Court Judgments
    This information is calculated at postcode level using over 11 million records covering the last 6 years. It indicates differing levels of financial stress.

  • Credit Activity
    This information is derived from CCN's searches database and is calculated at postcode level. It indicates the degree of financial activity based on levels of demand for credit.

  • Electoral Roll
    Household composition and years at address information is derived from the electoral roll and calculated at postcode level.

  • Postal Address File (PAF)
    The incidence of farms, flats and named addresses are derived from the Post Office Address file. This information is also calculated at postcode level.

  • Directors
    The proportion of addresses with company directors is being introduced as a new measure for MOSAIC. This information is used both at postcode and at enumeration district level.

  • Retail Accessibility
    Accessibility to shopping centres is another new measure for MOSAIC. It adds a new dimension which directly relates to consumer behaviour.

  • Age
    'Stage' is a system developed by CCN that makes an informed prediction of the age of each of the 40 million adults on CCN's electoral roll. By overlaying information such as christian name, years at address and the names of other household residents, Stage uses the electoral roll to make accurate age profiles of individual postcodes.

    • On the basis of this information, CCN has produced a series of 52 labelled cluster portraits (such as Clever Capitalists, Problem Families , and Rootless Renters) and 11 MOSAIC lifestyle groups ranging from High Income Families to Institutional Areas.

    MOSAIC directories are available at a number of geographic levels. 

    Unit postcode:                £6,000 pa for 2 years
Postcode sector:              £5,500 pa for 2 years
Pseudo-enumeration district: £10,000 pa for 2 years

    Conditions covering the number of records that may be MOSAIC-coded and the use of directories in certain software products are attached to the use of this data.

    Super Profiles

    Super Profiles is a geodemographic system from CDMS which categorises households according to the characteristics of the neighbourhood in which they are located. The assumption is made that those households within a neighbourhood are likely to have similar lifestyles and buying habits.

    Super Profiles is a three tier system which at the most detailed level consists of 160 Cluster groupings. Each Cluster relates to a single Target Market (40 types), which in turn relates to a particular Lifestyle (10 groups). The discriminator is available as either a unit postcode or enumeration district level directory, or can be aggregated to form a postcode sector level database.

    Sources of information used in the classification include:

  • 1991 Census data
    At the core of Super Profiles is the 1991 Census data, a vast source of research information which covers the whole of Great Britain. Uniquely the Census is comprehensive, consistent and compulsory. No other data source can give such a complete and reliable description of all areas within Great Britain.

  • Credit Information
    Credit information, such as credit scores and other risk assessment factors are very useful in reinforcing the accuracy of the affluence ranking within the classification.

  • Electoral Roll
    The electoral roll enhances the classification system with specific data at individual household level. This includes valuable information on such factors as household structure and length of tenure.

  • Market Research Information
    Information from the Target Group Index (TGI) survey of household purchases and lifestyles, produced by BMRB, has been used in the latter stages of the development process. The data on readership, leisure pursuits, financial products and car buying, for example, has been used to derive the Lifestyle and Target Market level income ranking and finally to enhance their descriptions.

    • On the basis of this information, CDMS has produced a series of Clusters and 40 labelled Target Markets (such as Very High Income Professionals in Exclusive Areas, Blue Collar Families in Council Properties, Young Families Renting Basic Accomodation in Multi-Racial Areas) and 10 Lifestyle groups ranging from Affluent Achievers to Have Nots.

    Super Profiles directories are available at a number of geographic levels. 

    Unit postcode:                £8,000 pa for 2 years
Postcode sector:              £3,000 pa for 2 years
Enumeration district:         £4,500 pa for 2 years
Ward:                         £3,000 pa for 2 years

    There are no conditions covering the number of records that may be coded and the directories may be used in any software product.

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