ME case 1 PDA

Topics: Cluster analysis Pages: 6 (750 words) Published: May 16, 2014
Jian
 Cui
 
Marketing
 Engineering
 Case
 #1
 
4-­‐26-­‐14
 
MKTG
 490
 
Conor
 Henderson
 

 
Background
 
Conglomerate
 Inc.
 worked
 on
 PDA
 (Personal
 Digital
 Assistant)
 and
 target
 diversity
 
markets.
 Its
 product
 called
 ConneCtor
 is
 a
 new
 brand
 and
 the
 firm
 desire
 to
 know
 the
 
PDA
 market
 and
 prepare
 to
 gain
 some
 market
 share.
 The
 face
 is
 there
 are
 5
 main
 
competitors
 in
 the
 market.
 They
 are
 Palm,
 Handspring,
 Casio,
 Hewlett
 Packard
 and
 
Compaq.
 Through
 these
 competitors,
 Palm
 occupied
 72.1%
 market
 share.
 However,
 the
 
PDA
 market
 is
 a
 rapidly
 changing
 market,
 so
 Conglomerate
 Inc.
 still
 has
 some
 
opportunity
 to
 obtain
 profits.
 After
 study
 diversity
 segment
 of
 customers’
 life
 styles,
 
PDA
 design
 has
 4
 types
 of
 users:
 innovators,
 professionals,
 technically
 sophisticated
 
user
 and
 college
 students.
 These
 different
 types
 of
 users
 have
 multifarious
 needs
 for
 
PDA
 products.
 Briefly,
 Conglomerate
 Inc.
 faces
 a
 high
 competitive
 market,
 and
 the
 best
 
choice
 to
 compete
 in
 this
 market
 is
 that
 satisfy
 diversity
 requirement
 by
 product
 
segment.
 
 

 
Survey
 
The
 market
 research
 firm
 called
 HVC
 (Happy
 Valley
 Consultants)
 hired
 by
 the
 manager
 
to
 design
 and
 analysis
 development
 of
 market
 segmentation.
 The
 market
 team
 target
 
PDA
 products
 potential
 customers
 as
 the
 survey
 respondents.
 Then
 the
 team
 
determined
 a
 bunch
 of
 objectives
 for
 discriminant
 analysis.
 These
 objectives
 are
 all
 
related
 with
 customers’
 demographic
 characteristics
 and
 life
 style
 elements.
 For
 
example,
 one
 question
 in
 the
 questionnaire
 asks
 how
 often
 does
 customer
 make
 phone
 
calls.
 This
 question
 try
 to
 collect
 data
 of
 the
 frequency
 that
 customer
 will
 use
 PDA
 to
 
make
 phone
 call.
 The
 question
 like
 this
 one
 designed
 to
 classify
 customers
 by
 using
 
preferences.
 The
 data
 will
 help
 me
 clarify
 which
 cluster
 is
 probably
 a
 kind
 of
 customer
 
segment
 later
 by
 Marketing
 Engineering
 tool.
 
 
 

 
Segmentation
 analysis
 
Using
 the
 segmentation
 and
 classification
 tool
 by
 ME>XL
 on
 the
 data
 is
 a
 clarify
 way
 to
 
identify
 the
 number
 of
 distinct
 segment
 in
 recent
 PDA
 market.
 Then
 following
 the
 step:
 
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