Electric Grower

How Does a SECURITY DEVICES COMpany expand
it's market share?

Working towards the solution by framing questions we want to answer

As a junior data analyst working in the marketing analyst team at Electric Growers, what are the key questions that I want to answer.

• How are we using the data to identify the top 3 customer segments?

• What are the attributes of the customers that wish to install an advanced high tech security system as well as attributes of customers that wish to switch security system brands?

• Through what avenues can the marketing team utilize to boost brand and product awareness?

• What data attributes are we using to identify the top potential cities in order to focus our marketing efforts?

Based on the customer survey data and customer household survey, both data sets has 12 customer segments

Via another query, we can see that each of the 169 questions have been answered by the 12 customer segments.

We shall create a tabular structure of the survey data by restructuring the data so that it is in a proper matrix form. This will be helpful in understanding the data to define features (i.e. variables) for potential use in our statistical analysis. We will create derived variables from the raw data to calculate the overall propensity that will help in assessing the top customer segments.

The survey questions covers a wide range of questions which gives a good overall picture of the general profile and consumer habits of the 12 customers segments. As there are 169 questions recorded, we will have to group our customer segments via the following questions that are most pertinent to find our top 3 customer segment to target. (Questions are ordered in priority order)

a) Most importantly, do they need a security devices installed in their homes and are they looking at changing their current brand?

1.Would like to buy Security Devices
2.Own Burglar Alarm

b) Are they willing to pay for quality devices?

3.I am Willing to Pay More for Top Quality Electronics- Agree

c) Are they willing to switch brands?

4.Will Switch brands to use a cents -off coupon -Agree

d) Are they keen to adopt the latest technology?

5.I am Among First of my Friends to try new Technology Products- Agree

Once these 3 customer segments are identified, we will then be able to

A) Find out their profile e.g house value, household income, marital status, family size etc

B) Find out their consumer habits e.g Ad preferences, shopping preferences

A) Identify the top 3 ideal customer segments to target.

Let us now calculate the propensities of segments to determine our top 3 customer segments to target. This is done by calculating the percentage of each customer segment's indication in the survey from the total household count per customer segment from the American Housing Survey.

Survey Questions are in order of priority and results of each survey questions are ranked in Descending order to see the highest propensity %.

Propensity of segment to switch brands can be judged from having an existing burglar alarm yet wanting to buy new security devices. (Top 2 questions)

From the table above, we determined that the top 3 customer segments based on penetration % of intentions (survey answers) in relation to total household count per segment to be : Well-heeled Affluents, Prosperous Achievers and Elite Households.

B) What are the attributes of the 3 customer segments identified?

C) How should these targeted customer segments be approached to maximize the sales of home security systems?

D) IdentifyING the top 5 cities of each segment with the highest potential, in order to focus our marketing efforts.

Above query results are the cities which have the highest count of the top 3 customer segments. However this is just a preliminary analysis. We need to factor in additional attributes from the US census data on population estimates to obtain a more detailed analysis of the cities to target rather than absolute numbers alone as household count do not tell the entire story.

Instead of identifying our top cities via segment household count or via crime rate alone, we identify the target cities based on a few attributes (from the survey) related to the top 3 segments household figures as these are the customer segments that have expressed the most desire to purchase security devices although already owning one.

In order of priority of attributes, the following are ranked:

1) Penetration % of top 3 customer segments based on overall household counts in the city

2) Total absolute number of top 3 household segments in the city

3) Total city population absolute numbers

4) Property crime rate % based on the city's population absolute numbers

Top 5 cities identified for Well-heeled customer segment are :

1) Kenilworth from State of Illnois
2) Los Altos from State of California
3) Weston from State of Massachusetts
4) Atherton from State of California
5) Weston from Connecticut

Top 5 cities identified for Prosperous Achievers customer segment are :

1) Grantham from State of New Hampshire
2) Barnstable from State of Massachusetts
3) Corrales from State of New Mexico
4) Sugar Hill from State of New Hampshire
5) New London from State of New Hampshire

Top 5 cities identified for Elite Households customer segment are :

1) Sergeant Bluff from State of Iowa
2) Newfields from State of New Hampshire
3) Pembroke Pines from State of Florida
4) Helotes from State of Texas
5) Litchfield from State of New Hampshire

overall conclusions and recommendations based on analysis of data

A) The data analysis has shown that Electric Growers should focus on the top 3 customer segments of:

1. • Well-Heeled Affluents

   • Prosperous Achievers

   • Elite Households

These segments have been identified as the profiles that are most likely to change / buy security devices and try out top quality new technology products based on the survey results obtained.

B) These 3 customer segments are often exposed to a variety of traditional and non-traditional forms of advertising and preferred info gathering mainly from the Internet, Television and Newspapers. These customer segments are also frequent visitors to retail malls / brick and mortar shops to do their shopping.

For a start, Growers Electric can focus on advertising campaigns to raise brand and security devices awareness via the following avenues in the targeted cities media landscape through a combination of the

1. • 1. • Internet

        • Television

        • Newspapers

Product display booths @ or near malls and retail outlet locations which according to the survey are most frequented by the customer segments e.g

1. • 1. • Best Buy

        • Costco

        • Home Depot

        • Ace Hardware

        • Target

The Marketing department can also tap on utilizing billboards on routes towards the retail outlet locations as a form of brand presence and visual reminder / reinforcement.

C) The best geographical location for Electric Growers to embark on their marketing efforts will be the North-Eastern part of the United States notably in the New England region. The states within New England of New Hampshire, Massachusetts & Connecticut comprises of a good mix and density of the 3 targeted customer segments. This is not surprising due to the segments which are considered wealthier than the average American and the 3 states being amongst the richest in the country. By focusing on a region rather than cities spread out over America, marketing efforts can be thus be more targeted and focus.