Diver Acquisition Project - Phase I

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• Diver Acquisition Project - Phase I
• Profile of the Most Active Divers in the US
• Lifestyle and Demographic Study

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Project Methodology

• Part of the study used actual diving customer
  lists to determine their lifestyles and certain
  demographic characteristics. The N totaled
  more than 300,000 divers which were geo-coded to
  determine their US Census block.
• From this information, DEMA determined Lifestyle
  (ie attitudes and beliefs) and some demographic
  information (ie income and marriage status) FROM
  THIRD PARTY SOURCES (No customers were contacted
  directly in this part of the study)
• In addition, diver activity levels were
  determined using a web-based activity survey with
  more than 3,000 responding divers. These were
  also compared for lifestyle, demographics, and
  diving activity level.

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Data Obtained

• Self-reported data Age, Gender, Geographic
  Location (using postal code), Diver Activity
• Appended Demographic Characteristics These were
  NOT reported by the individual but were
  determined from third party, verifiable databases
  (used name and postal code identifier)
• Household Income
• Occupation
• Home ownership
• Mortgage amount
• Marital Status
• Presence and age of children

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Population and Sample Comparisons

• Geographic Location Geographic distribution of
  the study participants residence is remarkably
  similar to that for entry-level certifications as
  measured by DEMAs Certification Census

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Population and Sample Comparisons

• Surveys 3,815 divers in the US (varied
  activity levels)
• Customer List 308,000 (diving activity levels
  unknown)
• There was strong correlation between the
  Lifestyle Segmentation Characteristics of the
  survey respondent and the customer list

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Characteristics of Active Diver From The Study

• Age Between 38 53 years old Mean 45
  Median 46
• 76 are male
• Household Income 56 make between 75,000 and
  100,000
• Occupation 80 are White Collar/ Professional/
  Technical/ Management
• Home ownership 93 own their own home
• Mortgage amount Median of 148,000
• Marital Status 71 married
• Presence and age of children 17 have kids
  under 18

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Measuring Lifestyle

• Lifestyles attitudes, beliefs as measured by
  their purchase and other pertinent behavior
  (psychographics). DEMA used a methodology
  involving Lifestyle Clusters which reflect
  actual purchase behavior
• Two variables were used to determine which
  customer lifestyle clusters should be
  approached for the most valuable micro-target
• Activity level of the diver
• Median House Hold Income Gives the greatest
  potential value of the customer to the industry

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Active US Diver Diving Activity Level

• DEMAs recent US marketing study shows
• No one single activity causes a diver to remain
  active
• By definition an active diver participates in a
  SERIES of activities which varies with the
  customer
• Nine different diving activities help determine
  the MOST active among those in the survey

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Active Divers Activity Types

1. Number of additional certification courses after
   initial certification
2. Number of overnight dive trips made in the 12
   months preceding taking the survey
3. Number of days spent on most recent dive trip
4. Number of dive trips (no overnight stay) made in
   the 12 months preceding taking the survey
5. Number of lifetime international dive trips
6. Number of scuba dives made in 2005 and 2006
7. Number of visits to local dive store made in the
   12 months preceding taking the survey
8. Amount spent on scuba equipment in diving
   lifetime
9. Amount spent on scuba equipment in the 12 months
   preceding taking the survey

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Understanding the Customers ExpectationsUsing
Income Lifestyle

• DEMA used median income to indicate customer
  value in combination with lifestyle (attitudes
  and beliefs) this provides the best
  possibilities for potential buying power
• Top Five Lifestyle Clusters Using Most Active
  PLUS Highest Median Income
• Cluster 9 Suburban Wave - US76,499
• Cluster 13 Sierra Snuggle - US72,952
• Cluster 2 Executive Domain - US124,295
• Cluster 6 Balancing Acts - US91,612
• Cluster 3 Nouveau Manors - US97,584
• These five clusters collectively represent about
  10 of the US population and 18 of survey
  respondents

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Cluster 9 Suburban Wave

• 2.1 of the US population
• HHI 2.0x the US median
• Geographic locations shown
• Vehicle preferences (2005)
• Isuzu Rodeo
• Saturn LS
• Ford Explorer
• Median HH Income 76,499
• Age 54 are 35 to 54 years
• 67 married
• 84 HH have 2 persons
• 35 College (up to Masters)
• 73.5 White Collar

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Cluster 13 Sierra Snuggle

• 2.6 of the US population
• HHI 1.35x the US median
• Geographic locations shown
• Vehicle preferences (2005)
• Isuzu Rodeo
• GMC Yukon
• Toyota RAV4
• Median HH Income 72,952
• Age 55 are 35 to 54 years
• 63 married
• 85 HH have 2 persons
• 30 College (up to Masters)
• 68.5 White Collar

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Cluster 2 Executive Domain

• 2.4 of the US population
• HHI 2.3x the US median
• Geographic locations shown
• Vehicle preferences (2005)
• Audi TT
• Mercedes Benz CLK
• Hummer Hardtop
• Median HH Income 124,295
• Age 57 are 35 to 54 years
• 85 married
• 53 HH have 2 persons
• 42 College (up to Masters)
• 86.2 White Collar

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Cluster 6 Balancing Acts

• 1.7 of the US population
• HHI 1.7x the US median
• Geographic locations shown
• Vehicle preferences (2005)
• Ford Explorer
• Ford Windstar
• Honda Civic
• Median HH Income 91,612
• Age 61 are 35 to 54 years
• 70 married
• 89 HH have 2 persons
• 38 College (up to Masters)
• 75 White Collar

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Cluster 3 Nouveau Manors

• 0.9 of the US population
• HHI 1.81x the US median
• Geographic locations shown
• Vehicle preferences (2005)
• Ford Explorer
• Honda Accord
• GMC Yukon
• Median HH Income 97,584
• Age 60 are 35 to 54 years
• 74 married
• 88.5 HH have 2 persons
• 49 College (up to Masters)
• 82 White Collar

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Notes on the Lifestyle Results

• Each lifestyle cluster requires different tone
  and type of communication (ie NY Times is
  appropriate in the Northeast, but wouldnt
  necessarily work for Illinois)
• The message can be relatively consistent across
  all within the lifestyle segment across the US
• The message will generally only be effective
  within the cluster itself. Neighborhoods with
  different lifestyles (even those next to each
  other) will not be likely to respond to the same
  message or media vehicle

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Notes on the Lifestyle Results

• The benefit of clustering is that it can provide
  the opportunity to focus marketing on
  neighborhoods with similar lifestyles
  (micro-targeting) down to 500 households.
• More effective targeting will eventually help the
  industry use limited resources more efficiently

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Analysis Who is the Most Active Diver?

• This is the Baby Boomer An individual with an
  extremely high value set and corresponding high
  expectations.
• This individual is highly sought after by all
  marketers, but especially marketers of luxury
  products in search of individuals with high
  disposable income.
• This target is comfortable with and demands the
  trappings of wealth and luxury consistent with
  his/her profile.
• From a destination and lifestyle experience
  perspective, this is the same target sought after
  by Four Seasons and W Hotels alike.

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• Diver Acquisition Project - Phase I
• Profile of the Most Active Divers in the US
• Lifestyle and Demographic Study