Europe-based retailer operating across 15 countries.
The client’s existing product and outreach strategies were not working well, as sales of flagship products had seen a volume decline for three consecutive quarters. The company wanted to understand the major factors that drove/inhibited purchasing and accordingly improve the focus on marketing and sales initiatives.
SG Analytics involved its industry experts to design, test, validate, and conduct a survey in the client’s most important market to gauge the attributes that drive consumers’ buying decision:
SG Analytics' team performed MaxDiff scaling on the data received from the survey. SG Analytics then conducted Principal Component Analysis (PCA) using Correlation Matrix and Varimax Rotation. The team then finalized the Factor Solution after selecting emotional and functional factors on the basis of the Scree Plot and Maximum Variance Explained.
Using the factor scores obtained and the least correlated contextual variables, the team identified the statistically-best discriminating variable (the variable that best splits occasions into groups of responses with shared needs) using a two-step Cluster Analysis.
We repeated the process to identify multiple such descriptors that fully segmented the survey data, and created the Driver Tree with unique and discrete micro-spaces. We profiled the micro-spaces in detail, which became an input to the client’s product development and marketing strategy teams.
Deeper understanding of consumer needs that improved the efficacy of the product strategy.
Improved focus of marketing efforts, customized as per the needs of various micro-spaces.