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Cluster

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MARKETING ANALYTICS ASSIGNMENT
Cluster Analysis of Godrej India Limited Case

Submitted to:
Prof. Sreedhara Raman

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Step 1: Agglomeration Schedule:
The first step in Cluster Analysis is to find out the number of clusters that should be made. From the below table we observe that the difference between 16th and 15th value is the highest =4.5. Thus, the number of cluster taken is 4.

Agglomeration Schedule | Stage | Cluster Combined | Coefficients | Stage Cluster First Appears | Next Stage | | Cluster 1 | Cluster 2 | | Cluster 1 | Cluster 2 | | 1 | 1 | 19 | 11.000 | 0 | 0 | 12 | 2 | 11 | 20 | 15.000 | 0 | 0 | 11 | 3 | 8 | 9 | 15.000 | 0 | 0 | 8 | 4 | 6 | 10 | 17.000 | 0 | 0 | 11 | 5 | 5 | 13 | 18.000 | 0 | 0 | 12 | 6 | 14 | 18 | 19.000 | 0 | 0 | 15 | 7 | 7 | 15 | 20.000 | 0 | 0 | 15 | 8 | 2 | 8 | 20.500 | 0 | 3 | 14 | 9 | 16 | 17 | 22.000 | 0 | 0 | 14 | 10 | 4 | 12 | 23.000 | 0 | 0 | 16 | 11 | 6 | 11 | 24.000 | 4 | 2 | 13 | 12 | 1 | 5 | 24.000 | 1 | 5 | 13 | 13 | 1 | 6 | 26.750 | 12 | 11 | 16 | 14 | 2 | 16 | 28.000 | 8 | 9 | 17 | 15 | 7 | 14 | 28.000 | 7 | 6 | 18 | 16 | 1 | 4 | 32.500 | 13 | 10 | 19 | 17 | 2 | 3 | 32.800 | 14 | 0 | 18 | 18 | 2 | 7 | 36.250 | 17 | 15 | 19 | 19 | 1 | 2 | 44.300 | 16 | 18 | 0 |

Step 2: Final Cluster Centers:
From this table we identify the major characteristics of the respondents belonging to different clusters, which will help us to create a Cluster Profile.

Final Cluster Centers | | Cluster | | 1 | 2 | 3 | 4 | v1 | 4 | 4 | 3 | 4 | v2 | 3 | 4 | 2 | 4 | v3 | 2 | 4 | 4 | 4 | v4 | 3 | 4 | 4 | 2 | v5 | 2 | 4 | 3 | 3 | v6 | 3 | 4 | 2 | 4 | v7 | 4 | 4 | 4 | 5 | v8 | 3 | 4 | 2 | 3 | v9 | 4 | 4 | 2 | 3 | v10 | 3 | 4 | 4 | 4 | v11 | 2 | 4 | 1 | 4 | v12 | 3 | 4 | 3 | 5 | v13 | 4 | 4 | 4 | 4 | v14 | 4 | 4 | 4 | 3 | v15 | 2 | 4 | 2 | 4 |

Step 3: Cluster Profile

Cluster: 1
The respondents belonging to this cluster believes that foreign made products are of superior quality and prefer ready- made clothing over tailored clothes. They enjoy surfing on the net. However, they give high importance to women education for the overall development of the country. Also, they prefer to take food outside every weekend.

Cluster: 2
The respondents belonging to this cluster are conscious about the quality of products they purchase and believe in buying ready-made clothes also, they believe that foreign goods are of superior quality. They enjoy surfing on the net, for them computer is a necessity and prefer payment over credit cards , they listen to old music, major source of entertainment is movies and believes that TV are an integral part urban households. They prefer vegetarian food however they eat outside every weekend. They believe that women education and computer education at primary level is important. They also think that liberalization has increased the efficiency of Indian firms and that economic status of India will improve.

Cluster: 3
The respondents belonging to this group believes that liberalization has increased the efficiency of Indian companies. They are web surfers and believe that computer is a necessity. However, their main source of entertainment is movies. They eat food outside every weekend. They prefer ready-made clothes over tailored clothes however they are not very conscious about the quality of products.

Cluster: 4
The respondents belonging to this cluster believes that foreign goods are better in quality, they are very conscious about the quality of the products they purchase and prefer ready- made clothes. They give a lot of importance to computer education in primary education, for them computer is a necessity; they enjoy surfing on the net and prefer credit cards as a mode of payment because of convenience. They consider vegetarian food to be more nutritious and for them movies is a major source of entertainment. However, they believe that economic status of India will improve.

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