An Indian FMCG company wants to map profile of its target audience based on lifestyle, attitude & perception. The marketing research team has prepared a set of 15 statements. The respondents had to agree or disagree on a 5 point rating or Likert scale (Note: 1= Strongly Agree; 2=Agree; 3=Neutral; 4=Disagree; 5=Strongly Disagree) with each statement

2.  An Indian FMCG company is looking to launch a value for money product
 The company wants to map profile to identify the target group(s)
 Parameters for profiling: Lifestyle, attitude & perception
 The marketing research team has prepared a set of 15 statements
 The respondents had to agree or disagree on a 5 point rating or Likert scale
[Note: 1= Strongly Agree; 2=Agree; 3=Neutral; 4=Disagree; 5=Strongly Disagree]

3. Variable NO.
Description
1
Email is preferred over letters
2
Quality products are always high priced
3
Think twice before buying anything
4
Television is a major source of entertainment
5
Car is a necessity rather than a luxury
6
Prefer fast food & ready to eat products
7
People are most health conscious today
8
Entry of foreign companies have increased the efficiency of Indian companies
9
Women are active decision makers in purchases
10
Politicians can play a positive role
11
Enjoys watching movie
12
I would like to settle abroad
13
I always buy branded products
14
Frequently go out on weekends
15
Prefer to pay by credit cards than cash

4. Step-1
 Running hierarchical clustering
 Using agglomeration schedule to fix the number of clusters to be formed
Step-2
 Running the k-means clustering
 Using the final cluster centers for interpretation

5. Clusters/Variables
Cluster-I (Mean)
Cluster-II (Mean) Cluster-III (Mean) Cluster-IV (Mean)
email over letter
2.20
2.40
2.20
1.50
Qlty products_high price
2.20
3.66
2.00
2.40
Think twice_buy
2.60
3.66
2.25
3.60
TV_Entrtnmt
3.20
3.50
3.00
2.20
Car_need_luxury
3.42
3.60
3.75
2.20
Fastfood_preference
4.40
3.30
3.25
4.20
People_health_conscious
2.80
4.50
1.75
1.60
Foregin Comp_eff_Indian
2.40
1.50
3.50
4.40
Women_Active_Purchase
3.42
2.50
3.25
2.20
Pol_+ve_Role
2.20
3.60
4.75
2.80
Movie_Enjoy
3.80
3.66
2.50
1.80
Abroad_Settle
2.40
3.50
2.00
2.20
Pref_Branded_items
2.40
4.16
1.25
3.00
Weekend_hangout
3.20
3.67
2.75
2.40
CreditCards_over_Cash
4.00
2.50
3.25
2.40

6. The relative score for degree of ‘agree or disagree’ over different factors are derived by
statistical means. Since 5-point rating scale has been used, the interval for the range in
measuring each service was calculated as : (5-1) / 5 = 0.8 , as below
Score
Degree(Agree)
1 to 1.8
Most
1.81 to 2.6
High
2.61 to 3.4
Neutral
3.41 to 4.2
Low
Above 4.2
Least

7.  Prefer email over letters & feel quality comes at price
 Very careful spenders & don’t feel that TV is a major form of entertainment
 Don’t feel that car is a necessity
 Don’t like fast foods
 Not sure about the health consciousness of people
 Not sure whether entry of foreign companies have made Indian companies more efficient
 Disagree that women play active role in decision making
 Feel that politicians can play an active role
 Don’t enjoy watching movies or going out on weekends
 Prefer buying branded products
 Don’t prefer credit cards & may consider staying abroad

8.  Prefer email over letters & don’t feel quality comes at price
 Likes to spend freely & feel that car is a luxury
 Don’t feel that TV is a major form of entertainment
 Not very fond of fast food

Don’t think that people are health conscious
 Strongly feels entry of foreign companies have made Indian companies more efficient
 Feels that women play active role in purchase decisions
 Don’t believe in politicians; don’t like movies
 Don’t want to settle in abroad; don’t stress on branded products
 Don’t like to go out on weekends; prefer using credit cards for payment

9.  Prefer using email & feel that quality is measured by price
 Careful spenders & indifferent towards television
 Car is a luxury to them ; not too fond of fast food
 Believe that the people are health conscious today
 Don’t think that entry of foreign companies have made Indian companies more efficient
 Don’t believe in women power; don’t like politicians
 Prefer buying branded products
 Enjoy watching movies& willing to settle abroad
 Go out on weekends & moderately prefer credit card for payments

10.  Regular email users & strongly feels that quality by price
 Free spenders & enjoy watching television
 Car is a necessity for them; Not too fond of fast food
 They believe that the people are health conscious today
 Disagree that entry of foreign companies have made Indian companies more efficient
 Highly believe in women power & enjoy watching movies
 Indifferent towards politicians & willing to settle abroad
 Likes to go out on weekends & prefer credit card for payments

11. Cluster- I
•Exhibits traditional values except the adaption of emails
•Likes to use credit cards, spends freely & believe in woman power
Cluster- II
•Feel quality products can be cheap & also have a patriotic streak
•Not very outgoing; believe in economics rather than politics
•Not a free spender, but health conscious
Cluster- III
•Prefer branded products
•Comparatively outgoing in nature& even willing to settle abroad
•Don’t Believe in woman power; indifferent towards TV
•Optimistic in nature & free spenders
Cluster- IV
•Very good target for TV advertisements
•But don’t get influenced by brands & may prefer value for money
•May decide to spend a lot if they see value

12. Targeting market
segment(s)
Designing the marketing
mix based on the
targeted segment(s)
Effective positioning
through marketing mix
**Marketing Mix: Product, Price, Place & Promotion

14. Variable No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Label
email over letter
Qlty products_high price
think twice_buy
TV_Entrtnmt
Car_need_luxury
Fastfood_preference
People_health_conscious
Foregin Comp_eff_Indian
Women_Active_Purchase
Pol_+ve_Role
Movie_Enjoy
Abroad_Settle
Pref_Branded_items
Weekend_hangout
CreditCards_over_Cash

15. References
 http://bit.ly/18KER2g
 http://www.cs.uu.nl/docs/vakken/arm/SPSS/spss8.pdf
 http://ibm.co/1alAffd
Source
 http://bit.ly/1ewAlYR
Detailed Analysis
 http://bit.ly/184k8s1