For my Marketing Predictive Analysis using SAS class, I worked on a group project with five other members to analyze transaction and customer data on facial tissue brands in the U.S. We used SAS to perform customer segmentation (RFM) and built multinomial logit models to predict customers’ preferences for the top four brands.
Here are some insights we found:
- Customers prefer Kleenex over Puffs, Scotties and Private Label.
- Households with higher education level prefer Kleenex and Puffs over Private Label.
- Surprisingly, price has a positive effect on probability of choosing a brand => Customers purchasing from grocery store are brand sensitive.
- A bigger family size would purchase Private Label than other brands.
- Household who own a house prefer Kleenex over the other 3 brands.
- Households with higher education level prefer Kleenex and Scotties over Puffs and Private Label.
Based on the insights, we came up with some recommendations for the different brands:
- People who shop in grocery stores and own a house, prefer buying Kleenex.
- Puffs can target drug stores as opposed to grocery stores to increase their sales (especially people with higher education level)
- Scotties should target people with high incomes and high education level who shop in grocery stores.
- Private Label Brands
- Private Label brands should focus on targeting middle class families with large household size in grocery stores.