Marketing Report for Ethan Allen Furniture

March 2002

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Zip Code Community 2001 Furniture No. of ExpenditureID Expenditures Households per HHld

Indiana46303 Cedar Lake $2,857,604 4,309 $663.1746304 Chesterton $6,385,290 8,036 $794.5946307 Crown Point $13,768,057 17,219 $799.5946310 DeMotte $2,472,264 4,205 $587.9346311 Dyer $5,372,726 5,732 $937.3246312 East Chicago $5,422,627 11,908 $455.3846319 Griffith $5,385,792 7,786 $691.7346320 Hammond $2,428,881 6,104 $397.9246321 Munster $7,621,391 8,070 $944.4146322 Highland $7,572,931 9,933 $762.4046323 Hessville $5,401,180 9,107 $593.0846324 Hammond $4,892,407 9,024 $542.1646327 Hammond $2,066,814 4,690 $440.6946341 Hebron $2,620,565 3,336 $785.5446342 Hobart $7,994,885 11,478 $696.5446347 Kouts $951,992 1,348 $706.2346348 LaCrosse $288,911 446 $647.7846349 Lake Village $552,655 975 $566.8346356 Lowell $3,411,594 5,009 $681.0946368 Portage $9,755,706 13,114 $743.9246373 St. J ohn $3,032,041 2,831 $1,071.0146375 Schererville $6,389,968 7,424 $860.7246376 Schneider $104,449 170 $614.4146383 Valparaiso $9,577,429 12,307 $778.2146385 Valparaiso $10,289,842 11,343 $907.1546390 Wanatah $597,673 1,013 $590.0046391 Westville $1,490,123 2,278 $654.1446392 Wheatfield $1,169,663 2,057 $568.6346393 Wheeler $186,072 207 $898.9046394 Whiting $2,771,070 5,388 $514.3046402 Gary $1,006,254 3,128 $321.6946403 Gary $3,197,292 5,412 $590.7846404 Gary $3,939,609 7,251 $543.3246405 Lake Station $2,702,587 4,640 $582.4546406 Gary $1,933,853 3,956 $488.8446407 Gary $2,256,525 6,732 $335.1946408 Gary $3,535,064 6,753 $523.4846409 Gary $1,879,218 3,443 $545.8146410 Merrillville $8,742,973 12,478 $700.67

Illinois60409 Calumet City $8,336,367 14,234 $585.6760438 Lansing $8,449,920 11,146 $758.11

Totals: $178,812,264 266,020 $26,872 Source: Information compiled by The TIMES Marketing Dept. Claritas, Inc., 2001

2001 Furniture Expenditures in The TIMES Market

The market for furniture is good. Consumer expenditure on furniture is

going up every year.

$178,812,264

Source: NAA 2002

U.S. Average Household Furniture Purchases in 2000

$58 $61$66

$62$67 $65 $66 $69

$65 $66$73 $76

JanuaryFebruary

MarchApril

MayJune

JulyAugust

SeptemberOctober

NovemberDecember

$0

$10

$20

$30

$40

$50

$60

$70

$80

Source: NAA 2002

Percent of 2000’s Sales Done Each Month by Furniture Stores

7.37.7

8.47.8

8.4 8.2 8.38.7

8.2 8.39.2 9.5

JanuaryFebruary

MarchApril

MayJune

JulyAugust

SeptemberOctober

NovemberDecember

0

1

2

3

4

5

6

7

8

9

10

% o

f Fu

rnit

ure

Sale

s

Source: 2001 NAA National Report: Newspaper Advertising of ROP—Inserts & Coupons. Margin of error +/-1.7%

Advertising Source Consumers Most Likely

to Check When Thinking of Buying Furniture:

Newspapers59%

TV8%

Radio1%

Magazines5%

Internet6%

Direct Mail15%

Yellow Pages7%

NewspapersTV

RadioMagazines

InternetDirect Mail

Yellow PagesBillboards

Newspapers are the #1 source for consumer information on furniture.

Source: Information compiled by The TIMES Marketing Dept. Claritas, Inc., 2001

Household Income in The TIMES Market is High!

There is money to be made in the furniture market now and in the future…

especially in Ethan Allen’s own backyard, Lake County. But there is

even a greater need for Ethan Allen to market itself efficiently and

aggressively to the different consumers in the Northwest Indiana market.

Ave. HhldZip Code Community Income

Indiana46303 Cedar Lake $60,78146304 Chesterton $66,79246307 Crown Point $79,23746310 DeMotte $52,15146311 Dyer $87,15846312 East Chicago $36,35646319 Griffith $61,24746320 Hammond $33,85546321 Munster $99,05046322 Highland $68,11546323 Hammond $48,68246324 Hammond $45,46546327 Hammond $39,04246341 Hebron $65,10846342 Hobart $59,27646347 Kouts $61,14946348 LaCrosse $59,78746349 Lake Village $50,04046356 Lowell $65,39246368 Portage $59,80746373 St. J ohn $88,87346375 Schererville $87,13646376 Schneider $63,77846383 Valparaiso $66,95446385 Valparaiso $89,45646390 Wanatah $53,70546391 Westville $74,90446392 Wheatfield $50,76546393 Wheeler $76,74646394 Whiting $42,18146402 Gary $27,64346403 Gary $51,33946404 Gary $40,16746405 Lake Station $44,56046406 Gary $39,92446407 Gary $24,39546408 Gary $42,82646409 Gary $39,72746410 Merrillville $60,789

Illinois60409 Calumet City $48,25960411 Chicago Heights $62,09360417 Crete $92,07460419 Dolton $62,73160425 Glenwood $80,74060426 Harvey $49,31760438 Lansing $67,91860473 South Holland $83,88760475 Steger $44,83360476 Thornton $61,15760617 Chicago E. Side $53,65160633 Burnham/Hegewisch $55,712

10 highest average household incomes in Indiana are highlighted in yellow. Top 4 are highlighted in Illinois.

Source: Information compiled by The TIMES Marketing Dept. SBP, a division of Claritas, Inc., 2001

Buying Power in The TIMES Market is Good!

Of these 27 communities with high medium effective buying incomes, The TIMES is the dominant circulation in all but two of them,

(DeMotte and Merrillville).

Zip Code Community MEBIIndiana

46373 St. John $60,16246385 Valparaiso $53,02546321 Munster $52,38046393 Wheeler $51,01646341 Hebron $49,20546375 Schererville $48,36246322 Highland $48,05846383 Valparaiso $47,61346311 Dyer $46,06846307 Crown Point $44,51846323 Hammond $43,62846368 Portage $43,02146356 Lowell $42,67946376 Schneider $42,67946347 Kouts $41,41546310 DeMotte $41,09546410 Merrillville $40,232

Illinois60417 Crete $65,67660473 South Holland $54,55960425 Glenwood $51,34560476 Thornton $49,76860438 Lansing $46,85160419 Dolton $44,04160411 Chicago Heights $41,77960633 Burnham/Hegewisch $40,650

Communities with $40,000+ MEBI in Indiana & Illinois

$167,770

$161,908

$143,403

$140,923

$126,291

$124,274

$113,762

$107,659

$101,216

$99,473

St. John

Crete

Munster

Schererville

Dyer

Crown Point

Valparaiso

Lansing

Highland

Chesterton

$0 $50 $100 $150 $200Thousands

Source: Information compiled by The TIMES Marketing Dept.Claritas, Inc., 2001

Communities with the Highest Median Home Values in the TIMES Market

1568

2118

2709

1967

1240

3354

1666

1176

2249

716

St. John

Crete

Munster

Schererville

Dyer

Crown Point

Valparaiso

Lansing

Valparaiso (5)

Portage

0 1 2 3 4Thousands

Source: Information compiled by The TIMES Marketing Dept.Claritas, Inc., 2001

Communities with $150,000+ Home Values

Source: Information compiled by The TIMES Marketing Dept. Audit Bureau of Circulations’ 12 Month Audit Reports: The TIMES, June 30, 2001

Ethan Allen can reach more households in these high medium home value communities with The TIMES than any other newspaper

17481881

334346

52935718

37744351

31643491

67777277

60166322

34766372

4615468047004883

St. John

Crete

Munster

Schererville

Dyer

Crown Point

Valparaiso (3)

Lansing

Valparaiso (5)

Portage

0 1 2 3 4 5 6 7 8Thousands

DailySunday

The TIMES reaches 39,897 households daily in these

communities, and 45,321 on Sunday.

Source: Information compiled by The TIMES Marketing Dept. Internal Revenue Service, Statistics of Income

Migration Trends 1998-1999

Migration into Lake County, Indiana

From Cook County, IL: 37.6%

From Porter County, IN: 13.3%

Migration into Porter County, Indiana

From Lake County, IN: 42.4%

From Cook County, IL: 9.4%

The migration trends appear to be that more

people are moving from west to east.

Broadcast: a good medium for building image and frequency because viewers can relate their own real-life experiences to what they see on television.

Newspaper: the first place consumers turn to for product and shopping information, this medium offers the integrity of a reliable news source, timeliness, and tangibility because consumers can easily refer back to it. Customers look forward to the daily newspaper, and they’re willing to pay each day to get the information in contains. Your customers regularly read the daily newspaper for buying information about your products—and those of your competitors.

Online: people use this medium to do their research on big-ticket items. Then they refer to local advertising to seek sales, promotions, etc. With an average of 550,000 page views per week, nwitimes.com is a sought-after information source in Northwest Indiana.

A multimedia mix of electronic and print allows your business to reach maximum buyers!

Source: Information compiled by The TIMES Marketing Dept. NAA 2002; TIMES Online Dept. 2002

The Furniture Store Equation

Objectives:

To create positive brand awareness among consumers

To drive traffic into your store

To increase furniture sales

Continuous Advertising + Aggressive Media Mix = Reached Objectives

 

Aggressive Marketing: (Media Mix)

Newspaper Inserts: Advertisers have a growing need for newspapers because consumers read the preprints they carry. More than 8 in 10 adults regularly use newspaper inserts for information about what’s happening in stores!

Newspaper TMC: Advertisers can reach 100% of the households in the market with this vehicle. This is affordable direct mail without the high direct mail cost!

Continuous Advertising:Maintaining continuity to sustain awareness. People forget rapidly without frequent reminding.

The Thin Market: because on any given day there are only so many people in the market for new furniture, your advertising messages must be out there consistently in order to reach those people.

Frequent advertising helps you beat your competition. If you’re not advertising as much as your competitor, who is more likely to reach the consumer who is ready to shop?