▪ Performed focused customer segmentation using regressions to analyze data on which segment of diners pick Denny’s over IHOP. ▪ Filtered and transformed the data from categorical to numeric variables in statistical software using python, R studio and Excel. ▪ Interpreted comparisons for each segmentation using strategic metrics suggesting business recommendations.

1. Customer
Segmentation
Prepared By: Tanishq Mishra, Akshita Jain, Hequn(Greta) Huang, Kena Rathod,
Parth Raichur

2. Group F
Akshita Jain Kena Rathod
Hequn (Greta)
Huang
Parth Raichur Tanishq Mishra

3. 1
Situation &
Problem Statement
Agenda
2
3
5
4
6
Data Analysis &
Model Result
Model Selection &
Research Method
Results
Conclusions Recommendations

4. Situation & Problem Statement
Situation:
We would like to know the difference in preference for Denny’s over
IHOP to understand who is the target audience for Denny’s? Are they
price sensitive?
Problem Statement:
In order to understand the growth aspects of Denny’s in comparison to
its competitors, we will try to analyse what segment of diners preferred
Denny’s over IHOP

5. Model Selection
Competitive advantage:
Segmentation techniques provide
tools to succeed in the market even
when there is high competition.
Niche Marketing:
Denny’s has identified a specific
segment - “America’s Diner is always
open” that was not provided by
existing brands.
Distinct Segment
responds
differently to
marketing efforts
General
Market
Distinct Segment
responds differently
to marketing efforts
Unique
Needs
Segmentation

6. Research Method - Primary Research
Primary research delivers accurate, relevant, and up-to-date information, enabling you to
identify emerging trends in customer behavior, discover unmet needs, and close gaps across
the experience journey.
● Surveys are a great way to reach a target market and collect relevant data at scale
● Easy to create & distribute
● Cost-effective
● Gathers significant data
Sample size = 29
A survey was conducted to understand the age group, gender, dining behaviour, brand
preference for Denny’s

7. Solution Process
Goal Tasks Tools
R studio
Excel
Market
segmentations
● Run cluster analysis on the
processed data
3
Excel
● Filter/Transform the data
● Categorical to numeric variables
2 fi
l
Data usability
R studio
Excel
Results
interpretation
● Interpret each segmentation
● Use market strategic metrics
4
● Design a survey
● Spread it to particular
respondents
1
Gather data
Qualtrics
SURVEY
DATA ANALYSIS
SEGMENT
INTERPRET

8. Survey

9. Research Analysis
● Food_Quality and Dining 24/7
option have the most positive
impact on Dining experience.
● Priced_menu and Preference are
negatively correlated.

10. Research Analysis
● Most of the
respondents are
Female in the age
range of 18-25
● Majority of the
respondents are in
the age range of 26 -
34

11. Research Analysis
● Respondents who visits
Denny’s once a month
spends <$20 per visit
● Respondents who visits
Denny’s 4-5 times a
month spends between
$20 and $40 per visit

12. Research Analysis
Most of the respondents had a good dining experience and all the
respondents believe 24/7 dining option as a positive aspect

13. Research Analysis
Most of the respondents believe Denny’s has a convenient location
and good food quality

14. Model Results and Visualizations

15. Results Interpretation
No. of visits
Spend per
visit
Denny's
preference
Priced
menu 24/7 Dining Food Quality
Convenient
Location
Dining
Experience
cluster 1 2.00 35.70 1.43 3.71 4.71 3.71 3.86 3.57
cluster 2 2.25 26.90 1.38 4.00 4.38 3.62 4.12 3.62
cluster 3 1.14 15.00 1.79 3.14 3.71 3.36 3.79 3.21
Segmentations Characteristics
Cluster1: Premium Late Diners
Spends more money, prefer denny's because of 24*7 dining option &
food quality
Cluster 2: Outgoing Breakfast Lovers
Frequent Visits, they believe menu is rightly priced, Denny’s has a
convenient location and they had good dining experience
Cluster 3: Brand Loyalists Have a high loyalty to Denny’s

16. Recommendations
Premium Late Diners:
● Diversify their menu with more food options
● Make more brand campaigns
Outgoing Breakfast Lovers:
● Carefully consider about the selection of store locations. Be closer to the center of
transportation.
● Decorate stores’ interiors and make it more ambient for diners
● Train the employees. Provide good service
Brand Loyalists:
● Set up membership system. Provide coupons and gifts periodically
● E-mail marketing to existing customers to provide latest information & upcoming
events
Statistical recommendations: Due to the low sample size of 29, it is difficult to make any
statistically significant recommendations

17. Situation Comparison-McDonald's
Country Chicken “burger” types Beef “burger” types Other (fish/veggie)
U.S 2 (17%) 9 (75%) 1 (8%)
China 3 (23%) 8 (62%) 2 (15%)
Brazil 3 (18%) 14 (83%) 0 (N/A)
Egypt 12 (43%) 14 (50%) 2/1 (7%)
India 4 (50%) 0 (N/A) ⅓ (50%)
Germany 3 (23%) 7 (54%) 2/2 (23%)
Australia 5 (25%) 13 (65%) 2/1 (10%)
● Chicken “burger” types: Types of burger available in countries
● Percentage: % of meat burger present in each country

18. Conclusion
● Brand Loyalists segment prefers Denny’s over IHOP
● Outgoing breakfast lovers segment believe Denny’s menu
is rightly priced
● Denny’s 24/7 dining option has outperformed even during
pandemic

19. Thank You!
Any Questions?