MARKETING

ANALYTICS
ASSIGNMENT 2
K-MEANS CLUSTERING

GROUP NUMBER - 5
ASSIGNMENT BRIEF
BACKGROUND

To understand the method of K-Means clustering using the SPSS tool,

understanding the derivation of clusters from a provided data set. In our
exercise, K = 3 as we are looking to get 3 clusters.

OBJECTIVES

• To critically analyse the derived clusters and

• Segment them according to their psychographics
• Delve into the demographics of the clusters derived
• Relate brands which could be marketed to the clusters

DATA DESCRIPTION
• Sample size of 972 records
• Size of cluster 1 - 440 records
• Size of cluster 2 - 258 records
• Size of cluster 3 - 274 records
 CLUSTERING PROCESS
In SPSS
• Load the data to SPSS & analyze using K-means clustering.
• K=3, because we have to form 3 clusters, iterations set to 99 to ensure clustering doesn't stop before
convergance.
• Observe the SPSS output for cluster size & the final cluster table

In Excel
• Perform row, column normalization to ensure consistency across clusters
• Apply conditional formating for better understanding of differentiation
• Group the records according to clusters
• Derive demographic data & psychographic insights for each clusters and summarize
OUTPUT
The Diva Lazy Artist Perfectionist

SHANAYA KAIRA ANANYA

from Student of the Year from Dear zindagi from 2 states

IMPULSIVE LETHARGIC CALCULATIVE

FASHIONISTA CREATIVE FITNESS ORIENTED
NETIZEN HOMELY NOT ACTIVE ON SOCIAL MEDIA
SHOPAHOLIC OLD-FASHIONED SOBER DRESSER
LEAST IMPULSIVE
Demographic Summary
 PRODUCT OWNERSHIP
• Cluster 1 is associated with impulsive buying, being with the latest trend and tech savvy. Going
by the summary table, Apple and OnePlus, belonging to the premium segment and sharing
the mentioned attributes, converges well with cluster 1.
=> 42% from cluster 1 uses the premium segment phones

• Cluster 3 has been attributed as a fitness enthusiast. Fitness enthusiast mostly

avoid soda drinks in general. Same has been observed, with higher ratio not
consuming, lower ratio in other soda drinks, but comparatively high for fruit juices.
=> 49% from cluster 3 avoid soda based drinks.

• Cluster 2 has been attributed as lethargic. The Motivation to exercise table has been
predominant on low score by cluster 2. This supports the insight the lethargic nature of
cluster 2.

=>89.52% of candidates from cluster 2 has rated fitness motivation less than 6
 GROUP MEMBERS IN CLUSTERS
MANIK MITTAL ANKIT NAG AKSHAYA SARTHAK SIDDHANT
SRIVASTAVA MUKHERJEE MOHAPATRA

CLUSTER-1 CLUSTER-3
CLUSTER-1 CLUSTER-2 CLUSTER-3

50
65 92 85 70
%
% % % %
JUSTIFICATION
JUSTIFICATION JUSTIFICATION
• I am a fitness freak, who prefers Netflix and
• I relate myself more of a Mathematics and • I am a person who loves to talk, moderately
chill and ordering from zomato.
• Not an imousive buyer , always do analysis Science guy fitness freak, and sometimes prefer dark
• Not a fashion oriented person, colours
and read online reviews before buying
• I prefer ordering food than eating outside
BRAND RECOMMENDATIONS

01 02 03
THE DIVA THE LAZY ARTIST PERFECTIONIST
DOLCE & GABBANA STORYTEL BOAT SMARTWATCH
TOMMY HILFIGER ZOMATO PRO PLUS TURTLE
MEMBERSHIP
Thank You