Makeup Case Situation Analysis

Fall 2020

You will need to download and install SPSS on your computer from the KSU software download page.
This assignment requires the licensed version so that you have access to the Discriminant Analysis.
Data and a step-by-step PowerPoint are provided so that you can do the analysis. In addition to the
primary data I have given you, you will have to do some secondary research to understand the
competitive landscape and market attractiveness.

1. (10pts) Submit a PDF of your SPSS output with your name typed in at the beginning.
2. (10pts) Based on the information obtained from the Cluster Analysis, interpret and describe
what each segment wants. Focus on the aspects that make each segment unique from the
others.
The one thing cluster one seems to desire is to have higher household income. At a mean of 5.68 it’s
the thing they most care about, and they are completely disagreeing that they just grab their food and
go. They rarely stop during daily commute because they want to reach their destination early. They
highly prefer nutritious food event if they are not good in taste. What makes cluster one different is
they do not like to waste time during traveling due to eating reasons or habits.
Cluster two wants the most travelling. They are willing to spend more than 70% on fuel on average to
travel regularly. Cluster two eat out a lot even they buy snacks, candies and bars during the travelling.
They don’t care about nutrients of food. These people do not care about time during the traveling.
They do not bother to reach their destination on time. 76.2% people have job for this they require
traveling and 80% of the people eat a lot while traveling to their workplace. They consider convenience
stores are friendly and safe even in the night. As they compress by the time so they just grab food and
go away.
Cluster three is mostly having jobs that do not require travelling. On the average they purchase the fuel
for their car twice in a month. As they spend least time on travelling so they do not spend more on
eating and thus do not eat a lot while traveling. They associate convenience stores with selling coffee,
tea and hot beverages.

a. Assuming the sampling was random, what percentage of the market is represented by
each of the clusters?
Cluster 1 represent the 40.7% of the market, cluster 2 represents the 46.8% of market and
cluster 3 represent the 12.4% of the market.
 3. (10pts) Based on the information obtained from the Discriminant Analysis, interpret and
describe each of the segments. Who are these people and how would you identify them?
b. Come up with a unique name for each of your segments that captures their relevant
differences.
Cluster one: Health conscious
The majority of cluster one belong to people who want to live healthy and really care about nutrients
of food even in the travelling. 53.5% people prefer nutrients food so they prepare it home if they don’t
get it from outside. On the average they do not eat a lot so 50.7% people rarely stop and go for their
destination. They don’t compromise on nutrition; they buy or eat healthy even if do not taste good.
Cluster two: Traveler
The people in cluster two are those who do remote jobs. More than 70% of the people have job that
require travelling. As the travel a lot so, they eat a lot. They buy snacks, bars and candies to eat during
travelling. They stop to eat and do not eager to go to the destination early. 81.2% people prefer to grab
food and let’s go. 55.5% people found convenience stores are friendly and safe even in the night. They
highly purchase fuel for their cars more than once in a month.
Cluster three: Lazy
These people are very less in amount. They do not travel a lot and eat a lot. 16.8% people purchase
fuel for their cars six times in a month and only 6.8% people think they eat a lot. Cluster three belongs
to a people who do not have remote jobs so they do not travel regularly. They spend less on eating
during travelling and not have enough experience to purchase from convenience stores. They can be
identify as low income people.

4. (10pts) Competitor Analysis: Find the top competitor for each of the segments discussed
above. Evaluate their offering using the template below. How good of a job are they doing on
delivering what the segment wants?
a. Competitor name:
i. Strengths of their marketing mix for the segment.
ii. Weaknesses of their marketing mix for the segment.
5. (10pts) Evaluate Market Attractiveness of Each of the segments using the template below. This
is just an overly simplified way to quantify the attractiveness of the segments. Based on the
analysis you did and additional secondary research online, come up with these four ratings for
each of the segments and don’t forget to explain what you based it on. Please provide a
sentence explaining each evaluation making sure to refer to your research.
a. _________________
i. Size of the segment: 1 (tiny) to 10 (huge). Explain
ii. Potential profit margin (price-costs): 1(low profits) to 10 (large profits). Explain
iii. Competitive Intensity: 1(highly competitive) to 10 (no competition). Explain
iv. Overall market Attractiveness: Sum the numbers: ______
a. Do you agree or disagree with these numbers and why? Use critical
thinking here…sometimes numbers don’t tell the whole story.