MARK 2010 Marketing Analytics
Delicious Pty Ltd (“The Client”) plans to grow its brand in the confectionary category. In the confectionary category, there are six brands of chocolate that compete with each other, and Delicious Pty Ltd owns Brand D.
You have been given a data set of 2,000 shoppers (refer Data for Task 1), which reports for each shopper his/her purchases of a set of brands over one year.
To generate an informed report for The Client, your team need to:
1) Calculate the observed market share (%), penetration (%), and purchase frequency.
2) Describe the Double Jeopardy (DJ) Pattern and use tables and/or graphs to discuss whether the DJ Pattern is evident in this category?
3) Fit the Dirichlet Model to the observed measures to generate theoretical brand performance benchmarks and answer the following:
(a) Discuss the overall fit of the Dirichlet Model to the data.
(b) Define niche brands. Are there any niche brands in this category?
(c) Evaluate Brand D’s performance in this category.
(d) What marketing strategy would you recommend for The Client to increase the market share of Brand D?
In other words, should The Client focus on selling more to existing customers or attracting new and light customers?
[Use theories covered in your UniSA Marketing Analytics course as well as the results of data processing to support your recommendations]
To generate an informed report for BMW, your team need to:
(a) Calculate the partworths and covert the partworths to dollar values for a 4 door Beaut family sedan that is priced at $85,000. Comment on your results.
(b) Estimate the market shares (choice probabilities) for all eight alternatives.Comment on your results.
(c) Explain the limitations of conjoint analysis to estimate market shares.
(d) Re-estimate the market shares, given that in the current market there are only four alternatives (2, 4, 6, and 7)*
(e) Given that BMW are considering to add to this market, one of the remaining alternatives (1, 3, 5 or 8), determine which alternative is the best for BMW to add to the market by re-estimating the market shares after the addition of each new alternative.
(f) Based on the re-estimated market shares in part (e), provide informed recommendations to the best of your marketing knowledge about potential consumer trade-off based on attributes of the recommended new alternative.
In other words, should BMW:
(1) keep the current four alternatives and not introduce the new alternative
(2) introduce the new alternative to replace one of the existing alternatives
(3) introduce the new alternative in addition to the current four alternatives