Marketing Research Assignment on Customer Segmentation

Kishalay Datta(D012) Arihant Jain(D024 Abhishek kumar(D032) Sagnik Niyogi(D043)

Problem Statement
Segmentation of Customers Of Durr so as To Target and Position their three products based on some identified Parameters

Hierarchical Clustering

Fig. Vertical Icicle

Optimal no. of segments to be considered = 2(to prevent considerable loss of data). Also between stage 28 and 29 coefficient change is maximum)

K-means Clustering(1)

Conclusions: Cluster 2 focuses on Efficiency specifications and Delivery norms Cluster1 focuses on Price and Service terms

K-means Clustering(2)

Conclusion: Parameters for which the two clusters have different preferencesEfficiency Specifications: Exceeds 9%, Exceeds 5% Delivery Time: 6 months, 9 months Cost: 600k,700k,800k Dollars Service Terms: Installed with 2-year warranty, Installed with 1-year warranty

Conclusion: Parameters for which the two clusters have different preferencesCompanies in Cluster 1 give preference to Finance, Purchasing, Tech Leadership when taking decisions more than Companies in Cluster 2(based on Mean and Level of Significance)

Companies in Cluster 2 give preference to Top Management, Engineering, Corporate Citizenship and Environmental regulation more than Cluster 1 companies 2(based on Mean and Level of Significance)

Decision parameters
Cluster 1 Cluster 2 Exceeds 9%, Exceeds 5% 6 months, 9 months 600k,700k,800k Dollars Installed with 2-year /1-year warranty

Product Parameters:
Efficiency

Delivery Time Price Delivery Terms

Market environment parameters:

Technological Leadership Corporate Citizenship Government Regulations Decision Makers Finance, Purchasing Yes Yes Yes Top Management, Engineering

Inferences
Product Target segment(Cluster) Reasons Servair_ Dx

CLUSTER 2

For the customers who concentrate on efficiency and delivery terms. If we want to improve delivery time to 9 months then profit is (900K-500K300K+70k+10K-30K=150K),Sales Price=900K and Cost Price=750K For the customers who concentrate on efficiency and delivery terms. If we want to improve delivery time to 9 months then profit will become (900K500K-170K-20K=$210K) and sales price is $ 900K and Cost price:-$690K) For the price conscious cluster, but we need to improve delivery time here. From 12 months it should come to atleast 9 months . So here the company needs to spend (20K) to get the product ready before time. So sales price will be $700K(Profit:- 1,80,000, Cost Price:-520K)

Premair LX

CLUSTER 2

Base Product

CLUSTER 1

No New Product
After

analyzing the existent products of DURR we have come to a conclusion that by slightly modifying the existing products DURR can compete with its competitors. A totally New Product designing is not so much important as the company will again incur further costs. DURRs existing products are competitive enough. Just slight modifications within it can make it competitive in the market.