Marketing Analytics- Perceptual Maps Tanvi Mehrotra -80012020109 Eashaa Saraogi - 80012020070 Vyom Vyas - 80012020025 Virali Sanghvi-80012020074 The Aim of the study- The aim of the study was to understand the similarity between brands and how consumers perceive the brands present in the market. The study was conducted for the brands which are present in the e-commerce space. Data collection- a list of 9 brands present in the e-commerce space was made which included Amazon, Flipkart, Nykaa, Myntra, Snapdeal, Ajio, Tata Cliq, Swiggy and Zomato. A questionnaire was prepared the purpose of which was to understand the similarity between the brands. The respondents were asked to rate how similar these brands were on a scale of 1-10. The survey was floated to people belonging to all age groups and backgrounds. Sample size- The sample size for the survey was 106 respondents who varied in age from 20-40. Outcome Based on the data collected, a mean value of the ratings was calculated and a cumulative table of all the ratings for each brand was reached at. Based on the data available using the SPSS software, the outcome was reached at. >Warning # 14654 >The total number of parameters being estimated (the number of stimulus >coordinates plus the number of weights, if any) is large relative to the >number of data values in your data matrix. The results may not be reliable >since there may not be enough data to precisely estimate the values of the >parameters. You should reduce the number of parameters (e.g. request fewer >dimensions) or increase the number of observations. >Number of parameters is 18. Number of data values is 36 Iteration history for the 2 dimensional solution (in squared distances) Young's S-stress formula Iteration S-stress 1 2 3 4 5 6 .02822 .01936 .01703 .01556 .01447 .01349 1 is used. Improvement .00886 .00233 .00147 .00109 .00097 Iterations stopped because S-stress improvement is less than .001000 Stress and squared correlation (RS Q) in distances he scaled data (disparities)ntire data) which nding distances.ss formula 1. RSQ values are the proportion of variance of tin the partition (row, matrix, or eis accounted for by their correspo Stress values are Kruskal's stre Stress = For matrix .04895 RSQ = .9946 Configuration derived in 2 dimensions Stimulus CoordinatesDimension Stimulus Number Stimulus Name 1 2 1 Amazon .7637 -.4165 2 3 4 5 6 7 8 9 Flipkart Nykaa Snapdeal Myntra Ajio Tata_Cli Zomato Swiggy .8496 .8628 .7690 .7448 .6483 .4898 -2.5542 -2.5739 -.4113 -.1950 .0370 .1345 .5025 .5606 -.0518 -.1599 After 6 iterations, the improvement needed came down to less than 0.001 which can be considered as non-significant, so the iterations stopped after 6th iteration Stress Level Stress means how much problem arises when we try to fit our data into two dimensions and hence it should be close to zero Stress value- 0.4 RSQ The RSQ value is the squared correlation coefficient between the distances and the data, and it is the variance accounted for in the solution. The RSQ and Kruskal’s stress index are used as the measures of goodness of fit of the solution. RSQ- 0.99 As Stress is close to zero and RSQ is above to 70%, this model is a perfect fit. Since our RSQ level was 99%, it passed the Goodness of fit test. Thus, based on this our data was fit to be applied for the Multi-dimensional Perceptual map study. Interpretation Dimensions Y axis- Membership X axis- Retailers The dimension on the X-axis will be Retail and Non Retail wherein Swiggy and Zomato fall in the category of Non-retail whereas all the other brands fall under the retail category. • The largest distance is seen between Zomato, Swiggy with Tata CLiq, Ajio, Nykaa, Myntra, Amazon, Flipkart, Snapdeal. This can be attributed to Zomato, Swiggy being delivery partners vs the rest of the brands are online retailers for multi brand and multi-assortment products. • The perception in the minds of the consumers is that Swiggy and Zomato only tie up with different restaurants and food joints to deliver their food, whereas the other brands like Flipkart and Amazon carry not just different brand lines but also have their own in-house brands. • Swiggy and Zomato only deliver food items whereas the other brands carry products in a wide variety ranging from lifestyle to electronics to beauty and even FMCG. The dimension on the Y-axis will be Membership availability vs Non- Membership. Wherein Snapdeal, Tata CLiq, Myntra, Ajio do not offer membership services whereas the other brands do offer it and provide pro membership benefits. • The major distance is seen between Tata Cliq, Ajio and Flipkart, Amazon, Zomato, Swiggy. This is because Amazon has Prime membership which provides added benefits like free and one day delivery options to its prime members and so and so forth for the other brands. Whereas Tata CLiq and the others which fall to the other side of the Y-axis do not provide any such benefit or services. Differences between brands lying in all 4 quadrants of the map. • We see a large difference between Tata CLiq, AJio and Amazon, Flipkart. This is because Amazon, Flipkart offer products which do not fall in the category of luxury products whereas the others cater to a luxury segment and offer high end brands to its customers. • Another reason we see this difference is because Amazon, Flipkart have their own logistics system and they do not tie up with any delivery service, whereas all the other brands do and they outsource their logistics. • Tata CLiq, Ajio, Myntra majorly cater to lifestyle and home décor whereas Amazon and Flipkart carry a vast assortment ranging from lifestyle to electronics to décor and also books. • Nykaa in the map does have a cluster with any other brand and remains isolated as it caters solely to the beauty and fashion community. • Amazon, Flipkart are a house to verified third party sellers and allow them to connect to their audiences directly and provide them a platform to sell their products and services, whereas this is not the case with any other brand and hence we see the distance between them. Suggestions • • • • Amazon, Flipkart and Myntra have an opportunity to enter into the segment of high end brands and premium products. Like Tata Cliq and Ajio they can offer a separate section of luxury items to the customers that wish to shop for brands like Burberry or Kate spade and Coach. This will give them the edge as they can cater to both segments of the audiences the price sensitive that look for discounts and the ones that want luxury products. Zomato and Swiggy can introduce their own product lines wherein they can use the concept of cloud kitchen to help them introduce their own food line which can be called Zomato food or Delicacies by Swiggy. This will ensure an increase in revenue and better brand image and value. In a similar manner they can introduce a line of packed products. Brands like Tata Cliq and Myntra can increase their revenue through subscription services that other brands provide. This will increase customer retention and increase revenue options. Other brands can introduce their own product lines like Amazon basics which will give them an advantage and can reduce the distance between them.
