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MarketResearch DURRcase Group12 PDF
MarketResearch DURRcase Group12 PDF
MarketResearch DURRcase Group12 PDF
MARKET RESEARCH
Assignment
Submitted By:
Sujatha Gnanasekher (D018)
Sarthak Mohanty (D039)
Tushar Nayanam (E034)
Vineet Jeyendranath (E062)
Overview
Durr Environment Controls is a German conglomerate which had existing industrial operations
in the US. It was considering an option to launch one more product i.e. Air Emission Control
System. It had existing well structured distribution system in the US which was an edge for
them to grow their business.
Agglomeration Schedule
Stage Cluster Combined Coefficients Stage Cluster First Appears Next Stage
1 11 12 195.000 0 0 10
2 10 22 201.000 0 0 18
3 24 26 203.000 0 0 13
4 29 30 235.000 0 0 9
5 1 9 248.000 0 0 12
6 23 25 312.000 0 0 17
7 4 27 350.000 0 0 14
8 14 16 426.000 0 0 14
9 7 29 429.500 0 4 16
10 11 20 442.500 1 0 20
11 6 28 445.000 0 0 15
12 1 15 464.000 5 0 25
13 24 31 469.500 3 0 20
14 4 14 557.500 7 8 21
15 6 18 570.500 11 0 23
16 3 7 637.667 0 9 19
17 17 23 664.000 0 6 21
18 5 10 686.500 0 2 24
19 3 13 763.250 16 0 28
20 11 24 767.667 10 13 23
21 4 17 788.833 14 17 24
22 2 19 923.000 0 0 26
23 6 11 935.278 15 20 26
24 4 5 1077.762 21 18 27
25 1 21 1312.000 12 0 28
26 2 6 1601.167 22 23 27
27 2 4 1869.645 26 24 29
28 1 3 2138.700 25 19 30
29 2 8 3132.429 27 0 30
30 1 2 3462.419 28 29 0
There’s a stark change in coefficients between stages 28 and 29 which implies the set of two
groups together has changed the dynamic of the group since they are dissimilar. Hence we
fixed on the number of clusters as 3. Using this output we perform a K-Means clustering
analysis to segment the market into three different clusters with similar preferences each.
Below are the number of cases in each cluster and the list of companies/cases under each
cluster.
Number of Cases in each Cluster
1 12.000
Cluster 2 11.000
3 8.000
Valid 31.000
Missing .000
Attribute Utility
So cluster 1 is the least price sensitive of the lot but they need quick delivery and excellent
service which means that they would not mind paying a premium if those two attributes are
satisfied. With respect to delivery time Advanced Air has the least delivery time of 6 months.
Here additional utility required to charge a premium of $200,000 is 23 units. Hence based on
the utility values and the trade off values the following product offering is suggested for Cluster
1. The offering is referred Cluster 1 customization as described in the below table.
In this case by offering the above mentioned attribute level for cluster 1 cases, Durr can achieve
the following advantages:
Cluster 2
Efficiency > Delivery Time > Price > Delivery Terms
Cluster 2 considers efficiency and delivery time as the most important attributes. Price and
delivery terms are the next important ones with price edging delivery term slightly. Since
delivery term is the least priority we can provide FOB service while providing the highest
efficiency and delivery time. With respect to efficiency Thermatrix exceeds 9%. Hence based on
the utility values and the trade off values the following product offering is suggested for Cluster
2. The offering is referred Cluster 2 customization as described in the below table.
CLUSTER 2 - Customization based on Competition, Utility and Profit
Thermatrix Cluster 2 customization
Attribute Level Utilit Attribute Level Utilit Additional
Attribute y y Revenue ($)
Efficienc Exceeds 9% Exceeds 9%
y 73.88 73.88 -170000
Time 9 months 15.24 6 months 52.82 -40000
Price 900000 -23.4 900000 -23.4 200000
Terms FOB, with service FOB, with service
contract -21.7 contract -21.7 100000
Total 44.06 81.64 90000
In this case by offering the above mentioned attribute level for cluster 2 cases, Durr can achieve
the following advantages:
Cluster 3
Price > Delivery Terms > Delivery Time > Efficiency
Cluster 3 is highly price conscious and at the same time wants high service levels too. It’s not
that conscious about delivery time and efficiency. With respect to price Advanced Air has the
least price of $700,000. Hence based on the utility values and the trade off values the following
product offering is suggested for Cluster 3. The offering is referred Cluster 3 customization as
described in the below table.
In this case by offering the above mentioned attribute level for cluster 3 cases, Durr can achieve
the following advantages:
Can be on par with the competitors’ offering. Hence less chances of losing this customer
segment/cluster
Additional revenue of $30,000
Conclusion
Thus after creating the product offerings for each cluster, it can be concluded that Clusters 1
and 2 look the most attractive in terms of both earning revenues and providing value to the
customer.