Identify Business Objective
Being in the competitive beverage industry, Jones Soda Company has focused on creating a farfetched brand that has an emotional connectedness with the customers in impressing and positive way. The company also aims to be a significant part of the carbonated soft drink and premium soda categories of the beverage industry. However, since the main aim of the business is to increase profitability, Jones Soda Company has targeted to increase revenue through increasing sales with 20%. The company also aims in developing stable channels distribution and advertisement communication with an objective to maintain its current consumers and increase its customer base.
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In addition, enhancing customer services is another objective of the business aiming to establish a perception that the company is easy to transact with and have low response time to consumer complaints. The customer perception is enhanced through unique package design and great tasting products that provides unique personality of then business. The company also aims to sponsor Seattle Seahawks as a company’s aims to attain trial purchase and targeting communities.
Get Raw Data
Different methods of data collection such as interviews, survey and observation will be used to acquire the raw data concerning needs and preferences of the consumers. After data collection, the data will be sorted based on the rationality of the data. This will help to remove and review any data that will be skewed in any way. For instance, those consumers that do not consume carbonated soft drink and premium soda will be removed from the data.
Identify Relevant Variables
In order to be able to analyze and predict the effectiveness and sustainability of the data collected, various transformations and aggregation will be required to achieve the appropriate customer-centric data format. As a result various types of attributed will be used to assist in attaining an absolute picture of the company’s consumer preferences and behaviors. The consumer attributes are discuses below:
- Product ownership. In this attribute the product portfolio that is held by each consumer will be identified. The derived variables based on the consumer’s tenure are such as maximum tenure of the owned product.
- Product usage. This involves the customer’s frequency of consuming the product such as during the summer when customers tends to consume more beverages.
- Demographics: this category involves the gender, age, marital status, financial status, address, membership card, and profession among other attributes. Breaking down the consumer network into this group will effectively help the company to identify consumer tastes and preferences.
Gain Customer Insights
The data acquired will be analyzed to help the company know what motivates the customers to buy their products and what creates loyalty. This will determine the competitiveness of the company since the data mining team will be having full understanding of their current and potential consumer’s expectations and desires. For instance, those customers that have been identified as being favored by low sugar carbonated drinks will help the company to adjust their level of sugar in their beverage for the satisfaction of their consumers. Gaining information in areas such as product price, demand, and promotion can help optimization of the product mix, and also enhance buying positions with consumers.
Act
The analyzed data would help Jones Soda Company to formulate strategies that would increase consumer perception such as inducing brand loyalty and repeat purchase. The company will also use this data to develop new package design of the soda bottles and launch low sugar, and a zero-calorie soda with an aim of attracting potential customers as well as maintaining the current ones.
Works Cited
Han, Jiawei, and Micheline Kamber. Data Mining: Concepts and Techniques. Amsterdam: Elsevier, 2006. Print.
