Case Studies

Segmentation

Business objective:

Create a behavioral segmentation model to capture consumer needs so that new products and services could be developed that were more closely aligned to these needs.

Approach:

Gathered information on personal attitudes and current behaviors. Statistical techniques were used to determine key relationships to formulate groups with common characteristics. Factor analysis was used to identify the most important issues driving their purchasing decisions and cluster analysis was used to group the factors into clusters which make up the segments.

Impact:

A small number of clusters were identified (five is an optimal number) so that the marketing plan can practically and efficiently target them.