Segmentation exercise
Spend a little time analyzing the data provided in the Excel spreadsheet (make some graphs, count frequencies, etc.) and use your insight to help create a simple segmentation scheme based on the bases identified below. Choose the segment with the most “customers” and write a short segment profile based on information about that segment.
Deliverable
· Memo to Me (Add Appendix if Needed)
Exploration (1)
1 Paragraph + 3 Bullets
Explore the data and make some general observations.
· Make three (3) observations about the data.
Simple Segmentation (2)
1 Table + 1 Short Paragraph Explaining your Scheme
Create a segmentation scheme and describe the segment bases. Should include a least the following:
· One or more psychological variables. i.e., High or Low Materialism
· Demographic: Two demographic variables. i.e., Age Cohort and Income
· Demographics: FLC
· Psychographic: PRIZM or VALS (Choose one)
Preset
· Pacific NW
· MBA Students
Profile (2)
Descriptive Label +
Estimate +
Segment Bases/Characteristics and Consumption Habits
Choose the segments with the largest number of people (ideally > 1) you created as a result of your segmentation scheme.
· Create a descriptive label for your segment.
· Estimate the size of the population (in the US) and explain your approach.
Things to think about:
· Review the clustering of the
ands for the segment you selected – do you see if there are commonalities? Does it provide you insight into the segment?
· Do some research on the segment base: i.e., What does the Pew Research group say about Gen X, Millennial, etc.? What are the lifestyles of Single I today? Etc. Roll these ideas into your segment profile.
Resources
Real Data
Data590.xlsx
A3 Tips and Tricks - Starting Out
If you are starting out A3 and are having difficulties getting a handle on all that data, the first step is to do exploratory data analysis. You can try the following:
1. Use "Sort" in Excel (or Sheets) by column and get a count of individual segment bases (each column is a segment base).
2. Once you have a general sense of the distribution and range of each base, try using "Pivot" tables in Excel to look for relationships between two or more segment bases. Look for the ones with the greatest frequency/count and maybe target those for your segment variables. For example, if I was going to use PRIZM for my psychographic typology, and the most frequent count was for "Young Digerati," - I would perhaps choose that as one of the segments bases, I choose for creating my segment profile: PRIZM - Young Digerati.
3. If you have access to more sophisticated tools like SPSS or Tableau, you can use it to quickly generate tables and crosstabs to gain insight into the data.
What you will want to do after exploring the data is to create a simple table of a segment that you can find in the data. For example,
Category
Criteria
Group
Psychographic
PRIZM
Young Digerati
Demographic
Age Cohort
Gen Y
Demographic
Income
$100,000-$149,999
Demographic
FLC
Single I
Psychological
NFC
High NFC
...
Based on the requirements I outlined for you (# of Psychographic, demographic, psychological, etc), choose the criteria (column) and the specific "group" -- to help describe a segment. There must be a least a few customers that fit these criteria for you to do further analysis.
This is the first task. You can simply describe the target market at the highest level (using the above example):
The [YOUR DESCRIPTIVE LABEL HERE] is a Gen Y Young Digerati with an annual income of $100,000-$149,999, single, with a high need for cognition, etc. etc.
This is usually the starting point for describing a target market. We generally assign a descriptive label at this point (Young Digerati is an example of a descriptive label but we are using it as part of our segment base) so come up with something new.
A3 Tips and Tricks – “Profile” Research and Persona Creation
The next step after creating the top-level description (see the last post) is to conduct research on each of the individual groups you identified and make some notes of common traits, behaviors, and characteristics of each grouping.
· For example, if you chose PRIZM Young Digerati – read the profile from the PRIZM ALL file I provided. It will give you a sense of lifestyle, media consumption, behaviors, and preferences.
· Since I specified Gen Y, it may make sense to go to Pew Research Center and look up information Gen Y; you may also want to go to Mintel to look up the consumption habits of that specific group.
· Do some research on High NFC people, Single people today, and people that make $100,000-$149,000, etc.
Once you have completed research on ALL of the groups you selected, take a step back and look at your notes. Blend all of the information you have together to create a Persona. Think of the persona as a character description you would write for a novel or a movie. How would you describe them, how they act, how they think, how they behave? This is the heart of the target market profile.
Your profile description would read like something like this:
Brandon Digerati (this is the label I created - not very creative but just to give you an example) is a young executive living in the Pacific Northwest. He is cu
ently seeking his MBA at a local university. He aspires to...
Brandon drives a BMW 3-series, visits Sta
ucks at least once a day including weekends, and frequents local micro
ewery with friends and colleagues.
...
And so forth.
ToExcel
CustID NFC HUSV BAS CE MVS CSI CPS VALS2 Tapestry PRIZM FLC AGECOHORT Gender LatinxYN LatinX Ethnicity EthnicityM INCOME EMPLOY INDUSTRY OCCUPATION Brand 1 Item 1 Brand 2 Item 2 Brand 3 Item 3 Brand 4 Item 4 Brand 5 Item 5 Brand 6 Item 6 Brand 7 Item 7 Brand 8 Item 8 Brand 9 Item 9 Brand 10 Item 10 Brand 11 Item 11 Brand 12 Item 12 Brand 13 Item 13 Brand 14 Item 14 Brand 15 Item 15 Brand 16 Item 16 Brand 17 Item 17 Brand 18 Item 18 Brand 19 Item 19 Brand 20 Item 20
customer01 3.43 3.80 4.00 4.00 4.00 3.75 5.00 Thinkers 1B- Professional Pride 04- Young Digerati Full Nest III Generation Y/Millenial Male None of these Asian $150,000 or more PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Professional, scientific or technical services Management, professional, and related Apple Iphone Lenovo Intel Core i5 based laptop Lundberg Organic short grain
own rice Atta Deep multi-grain Costco 2% kirkland organic milk Costco Kirkland
own eggs Netflix streaming service Amazon Prime membership Nike Running Shoes Dove soap Acura MDX AWD technology and entertainment package Telsa Model 3 LG 70" 4K TV Samsung Refrigerator Danon Plain yogurt Cascade dishwasher All laundery detergent Lee jeans Amazon Fire Stick 4K Microsoft Xbox one
customer02 3.14 4.00 4.20 1.83 2.60 2.75 4.50 Innovators 1D- Savvy Subu
anites 29- White Picket Fences Childless Couple Generation X Female None of these White $150,000 or more PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Professional, scientific or technical services Management, professional, and related Apple Iphone X ISP Wave Dell XPS 13 laptop Apple Airpods Pro Asus 168B+ 2 Travel Moniters Dell 43" Ultra HD 4K 2 work/home moniters Keurig K-Café Coffee Maker Aeron Chair by Herman miller Desk Chair Target, Walmart and Fred Meyer Grocery Pick Up services Ray Ban Glasses Phillips Sonicare Diamond Clean Smart 9500 Kitchenaid Multidoor Refrigerator Samsung washer and dryer with app/wireless Lego Creato
Expert/Architect series and all modulars Zipsnip Glass cutters CRL Revolution XT glass saw Glastar G14 Diamond grinder glass grinder Nordic Track Rower Amazon prime membership Samsung QLED TV
customer03 3.43 1.00 3.40 1.00 2.80 3.75 4.50 Innovators 11B- Young and Restless 22- Middleburg Managers Young Couple Generation Y/Millenial Male None of these White $150,000 or more PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Finance or insurance Service Apple Iphone X Frontier FIOS Honda 2016 Honda CR-V EX-L Costco Fuel amazon prime membership Apple Macbook Pro LA Fitness Gym Membership Lems Mesa Coastal Shoe Smasung 65" Q90 OLED TV Netflix streaming service Theragun G3 Phillips Sonicare FlexCare Whitening Edition tooth
ush Crest 3D whitening toothpaste Perch Hoyt Sectional Forest Green Beats Studio 3 headphones Cutler Nutrition supplementation Neutrogena Rainbath Wilcox Family Farms Omega 3 free range eggs Great Notion Big Papaya Mountain Hardwear Supe
DS stretchdown hooded down jacket
customer04 3.29 2.40 3.60 1.83 3.40 3.25 4.00 Innovators 2D- Enterprising Professionals 34- Young and Influential Young Couple Generation Y/Millenial Male None of these White $100,000 to $149,999 PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Manufacturing Sales and office Apple Iphone X Hulu Streaming service Apple Airpods Nike Nike Free Tennis shoes Acura 1998 Acura Cl MSI GS65 Laptop Netflix streaming service Youtube Streaming service Riot Games League of legends Microsoft Xbox one PEScience Vegan Protein Puma Sweatpants Mighty paw Dog leash Amazon Prime membership Chipotle Bowl Reddit NBA Costco membership Yeti 20 oz Tumblers Samsung TV Portland Trail Blazers n/a
customer05 3.14 2.60 3.80 2.33 4.20 3.75 5.00 Experiencers 13A- International Marketplace 31- Connected Bohemians Young Couple Generation Y/Millenial Male None of these White $60,000 to $69,999 PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Professional, scientific or technical services Sales and office Apple Iphone X Honda 2016 Black honda civic ex Apple Macbook pro Optifree contact solution Microsoft Xbox one Netflix Streaming service Amazon prime subscription Hulu streaming service ESPN streaming service Apple Airpods 24 hour fitness membership Hydroflask wate
ottle Trader joes Grocery shopping Costco gas and groceries United airlines flights Chase bank checking account and credit cards Gmail primary email account Instant pot pressure cooker casper queen sized mattress spotify music streaming service
customer06 3.14 3.60 3.60 2.00 2.80 3.75 4.00 Innovators 3B- Metro Renters 31- Connected Bohemians Single I Generation Y/Millenial Female None of these White $60,000 to $69,999 Local GOVERNMENT employee (city, county, etc.) Professional, scientific or technical services Government Netflix Streaming service Apple Iphone Google Gmail, chrome, maps Dell Laptop Comcast xfinity cable Tervis Tumbler Hydroflask water bottle Columbia down jacket Cole Hann Oxfords Adobe InDesign Fitbit Slim Alta HR Mazda Mazda 3 Delta Airlines flights Bose Noise cancelling headphones Hilton hotel rooms Keen hiking boots REI Day packer backpack Adidas Sambas Tillamook French vanilla yogurt Lotte unsweetened green tea
customer07 3.14 2.40 4.20 3.17 3.60 4.00 3.50 Experiencers 6A- Green Acres 44- Country Strong Full Nest II Generation Z Female None of these White $10,000 to $19,999 PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Educational services Management, professional, and related Apple Iphone 8s Nike nike pro spandex shorts Breg Polar care Kodiak cold therapy unit Toyota 2006 Toyota corolla SE netflix streaming service Apple 2014 Apple MacBook Air Nike 2018 Nike light purple Air Force Shoes Instagram social media Rubiks cube game NFL Walter Payton home jersey Listerine Essential care toothpaste Dove soap TRESemme Botanique Nourish and replenish shampoo and conditioner KC Masterpiece Origin BBQ sauce 40oz Aleve Arthritis 220 mg Pain reliever andfever reducer caplets , 100 count Sta
ucks Venti Peppermint mocha VIZIO 40" Class LED D-series 1080p smart HDTV Google Gmail Wells Fargo Online Banking Amazon prime subcription
customer08 3.14 4.60 4.20 5.00 3.20 3.00 2.75 Survivors 8C- Bright Young Professionals 25- Up-and-Comers Single II Generation Y/Millenial Female Yes American Indian or Alaska Native PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Health care or social assistance Service Apple Iphone X Apple Macbook Air Jeep Wrangler Unlimited Ford Fusion Oakley Pink Aviator sunglasses- Breast cancer edition Harley davidson n/a Folgers coffee Ninja Foodi Titos Vodka Amazon Amazon prime Skin Medica Ha5 Skin Medica Lytera Paul Mitchell Skinny serum EltaMD Sunscreen Jane Iredale Cosmetics Dial Body wash DoTe
a Essential oils Netflix Streaming service n/a Blue Light blocking screen protector n/a Blue light blocking glasses
customer09 3.14 2.20 3.00 2.50 3.80 2.50 4.50 Innovators 3B- Metro Renters 31- Connected Bohemians Young Couple Generation Y/Millenial Male None of these White $100,000 to $149,999 PRIVATE-FOR-PROFIT company, business or individual, for wages, salary or commissions Health care or social assistance Management, professional, and related Xfinity Internet service Kenmore gas range and oven Microsoft Xbox One Samsung S8 Toyota 1998 4runner Spotify Music app Amazon Amazon prime Tillamook Ice Cream Netflix Movie streaming Sony Speaker Keurig Coffee Maker Hulu Streaming service Sharpie Markers Yeti mug Hydroflask water bottle Brita water pitcher Franz 9 grain
ead Dockers Khaki jeans Marvel socks Disney+ Streaming service
customer10 3.14 2.40 4.00 3.17 3.60 3.25 5.00 Achievers 8B- Emerald City 22- Middleburg Managers Full Nest I Generation Y/Millenial Female Yes Latino Other Mexican American $100,000 to $149