Segmentation, Targeting and Positioning in the Diaper Market

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1 Segmentation, Targeting and Positioning in the Diaper Market mothers of infants were surveyed. Each was given a randomly selected brand of diaper (,, ou Huggies) and asked to rate the diaper on 9 attributes and to give her overall preference for the brand. These ratings were obtained on 7-point scales. The study was designed so that each of the three brands appeared times. The 9 attributes were: VARIABLE ATTRIBUTE MARKETING OPTIONS X Count per box Desire large counts per box? X Price Pay a premium price? X Value Promote high value X4 Unisex Unisex versus separate-sex diapers X5 Style Prints/colors versus plain diapers X6 Absorbency Regular versus super absorbency X7 Leakage Narrow/tapered versus form-fitting gathers X8 Comfort/Size Extra padding and form-fitting gathers X9 Taping Resealable tape versus regular tape Which attributes are most important in a diaper? a Model (Constant) Count per Box Price Value Unisex Style Absorbency Leakage Comfort Taping Unstandardized a. Dependent Variable: Brand Peference Standardized B Std. Error Beta t Sig. -,458, -,84,,54,9,69 4,45,,9,9,56,84,4,6,76,,5,8,47,9,6 5,88, -,65, -,44 -,64,5,4,57,4,7,,5,65,48,5,6,6,85,65,5,,,69,,8,778 R =.7

2 What are the underlying dimensions of consumer choice? Factor analysis on attribute ratings KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.,8 44, 6, Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative % 4,97 55,54 55,54 4,97 55,54 55,54,66 4,6 4,6,54 7,4 7,97,54 7,4 7,97,54 8,6 6,,5,66 8,959,5,66 8,959,947,68 8,959,556 6,8 9,4,6,6 9,76,7,5 96,787,5,5 98,9,99, 99,9,55,68, Extraction Method: Principal Component Analysis. What are the underlying dimensions of consumer choice? Count per Box Price Value Unisex Style Absorbency Leakage Comfort Taping Rotated Component Matrix a Component,4,865,5,9,89,4,8,86,5,44,66,9,7,,96,85,,56,879,8,57,86,77,57,768,45,79 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations. 4

3 Which factors/dimensions are the most important for consumers? Regression of brand preference on the factor scores Model (Constant) Funcional factor Economic factor Styling factor B a Unstandardized a. Dependent Variable: Brand Peference Std. Error Standardized Beta 4,,6 65,6,,9,6,59 6,47,,9,6,465 4,767,,9,6,47 4,9, t Sig. R =,76 5 How do consumers evaluate the three brands on each factor? Average factor scores of all brands on each factor Funcional factor Styling Economy,5,5,5,4 9,4,4,,,,4, -, -,74, -, -,4 -,79, -,, -,5 - -, ,4 - -,4 -,5 -,5 -,5 For eachfactor, are there significant differences between the consumers evaluations of the brands? 6

4 ANOVA of the factor scores on the brands Null Hypothesis: For each factor, the mean ratings of the brands are equal ANOVA Funcional factor Economic factor Styling factor Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Sum of Squares df Mean Square F Sig. 9,9 9,55,9, 79,97 97,94 99, 99 4,74,87,5, 94,66 97,99 99, 99 5,48 7,74 8,9, 8,59 97,955 99, 99 Conclusion: the positioning of the brands does not differ significantly in the economic factor 7 Perceptual Map,5,4, Styling, -,5 -,4 - -, -,,,,4,5 - -,4 -,5 Functional 8 4

5 Perceptual Map Economy,5,4,, -,5 -,4 - -, -,,,,4,5 - -,4 -,5 Functional 9 How important are the factors? a Model (Constant) Funcional factor Economic factor Styling factor Unstandardized a. Dependent Variable: Brand Peference Standardized B Std. Error Beta t Sig. 4,,6 65,6,,9,6,59 6,47,,9,6,465 4,767,,9,6,47 4,9,. revealed levels of importance. Declared levels of importance (nd sample) Data: importance ratings for the three factors: funcionality, style and economy IMP_FUNC IMP_ECON IMP_STYL Valid N (listwise) Descriptive Statistics N Minimum Maximum Mean Std. Deviation, 7, 4,9,4, 7, 4,5,46, 7, 4,,97 Which is the most important factor? 5

6 Segmentation according to product benefits Can we identify homogeneous segments of consumers? Final Cluster Centers IMP_FUNC IMP_ECON IMP_STYL Cluster,6 4,5 4,9,6 4,79,98 4,5 5,,9 Cluster analysis on the importance ratings ANOVA IMP_FUNC IMP_ECON IMP_STYL Cluster Error Mean Square df Mean Square df F Sig. 66,8, ,848, 57,47, ,69, 4,4, ,59, The F tests should be used only for descriptive purposes because the clusters have been chosen to maximize the differences among cases in different clusters. The observed significance levels are not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster means are equal. n = 89 n =6 n =5 Benefits sought by each Cluster,8,6,4, -,4 -,6 -,8 - -, Cluster Cluster Cluster Funcional Styling Economy 6

7 Which targets and which Positioning?,8 Styling - -,8 -,6 -,4,,4,6,8 brands clusters -,7 -, Funcional Which targets and which Positioning?,8 Economy - -,8 -,6 -,4,,4,6,8 brands clusters -,7 -, Funcional 4 7

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