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Marketing

ResearchAssignment on

Customer

Segmentation

Kishalay Datta(D012)Arihant Jain(D024

Abhishek kumar(D032)

Sagnik Niyogi(D043)

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Problem Statement

Segmentation of Customers Of Durr so as ToTarget and Position their three products

based on some identified Parameters

7/27/2019 Marketing Research Assignment(D012,D024,D032,D043)

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Hierarchical Clustering

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

maximum)

Fig. Vertical Icicle

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K-means Clustering(1)

Conclusions:Cluster 2 focuses on Efficiency specifications and Delivery normsCluster1 focuses on Price and Service terms

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K-means Clustering(2)

Conclusion:Parameters for which the two clusters have different preferences-Efficiency Specifications: Exceeds 9%, Exceeds 5%Delivery Time: 6 months, 9 monthsCost: 600k,700k,800k Dollars

Service Terms: Installed with 2-year warranty, Installed with 1-year warranty

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Conclusion:Parameters for which the two clusters have different preferences-Companies in Cluster 1 give preference to Finance, Purchasing, Tech

Leadership when taking decisions more than Companies in Cluster2(based on Mean and Level of Significance)

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

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Decision parametersCluster 1 Cluster 2

Product Parameters:Efficiency Exceeds 9%, Exceeds

5%

Delivery Time 6 months, 9 months

Price 600k,700k,800kDollars

Delivery Terms Installed with 2-year/1-year warranty

Market environment parameters:

Technological Leadership Yes

Corporate Citizenship Yes

Government Regulations Yes

Decision Makers Finance, Purchasing Top Management,

Engineering

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InferencesProduct Target

segment(Cluster)

Reasons

Servair_Dx CLUSTER 2

For the customers who concentrate on efficiencyand delivery terms. If we want to improve deliverytime to 9 months then profit is (900K-500K-300K+70k+10K-30K=150K),Sales Price=900K andCost Price=750K

PremairLX

CLUSTER 2

For the customers who concentrate on efficiencyand delivery terms. If we want to improve deliverytime to 9 months then profit will become (900K-500K-170K-20K=$210K) and sales price is $ 900K andCost price:-$690K)

BaseProduct

CLUSTER 1

For the price conscious cluster, but we need toimprove delivery time here. From 12 months itshould come to atleast 9 months . So here thecompany needs to spend (20K) to get the productready before time. So sales price will be$700K(Profit:- 1,80,000, Cost Price:-520K)

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No New ProductAfter analyzing the existent products of

DURR we have come to a conclusion thatby slightly modifying the existing products

DURR can compete with its competitors.A totally New Product designing is not so

much important as the company willagain incur further costs.

DURRs existing products are competitiveenough. Just slight modifications within itcan make it competitive in the market.