070220 - BDI_CDI.xlsx - Basic marketing metrics BDI_CDI M=U={S1,S2.Sn where S1,S2.Sn is the number of individual segments Segments are small atomized

070220 - BDI_CDI.xlsx - Basic marketing metrics BDI_CDI...

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Unformatted text preview: Basic marketing metrics - BDI_CDI M=U={S1,S2,......Sn} where, S1,S2,......Sn is the number of individual segments Segments are small atomized markets. The collection of such atomized markets is called Universe. A market can be defined as need where collection of such needs represented as segments define the market. The division of the market on certain similar characteristics is the process of segmentation which is the first level of market cl In Analytics, 3 things matter :1. Classification 2. Regression 3. Clustering Clustering is a process of Classifying by Segmentation. Atomic value of market is a segment. The smallest value of market is a segment. Soap is a product which can have a large number of segmentations in the market. Two metrics to measure brand performance in marketing Sales of the brand to the buyer type "A" / No. of type buyers "A" Brand Development Index = -----------------------------------------------------------------------------------------Total sales of the brand / No. of total buyers (All types) Total sales to the buyer type "A" (all types) / No. of type buyers "A" Category Development Index = ------------------------------------------------------------------------------------------Total sales (All brands) / No. of total buyers (All types) Problem B BRaun, a surgical equipment company sells "A" Sharp guided laser scissors to population of surgeons in Mumbai. However, team is of the opinion that the scissors should be primarily sold to cardiac surgeons. The total sales of all scissors in this mark and the total number of surgeons in the city are 2000. Out of these the cardiac surgeons number 200. Purchase of any type o surgeons is around 600. The company has sold about 500 of its "A" sharp scissors to cardiac surgeons. The company's annual sale of all scissors is 100 B BRaun, a surgical equipment company sells "A" Sharp guided laser scissors to population of surgeons in Mumbai. However, team is of the opinion that the scissors should be primarily sold to cardiac surgeons. The total sales of all scissors in this mark and the total number of surgeons in the city are 2000. Out of these the cardiac surgeons number 200. Purchase of any type o surgeons is around 600. The company has sold about 500 of its "A" sharp scissors to cardiac surgeons. The company's annual sale of all scissors is 100 Total sales of all Scissors Total no. of Surgeons No. of Cardiac Surgeons Total purchase of Cardiac surgeons (any type) 5000 2000 2000 600 BDI BDI Delhi Mumbai Kolkata Chennai Pune Bengaluru Nagpur Bhopal 1.02 CDI 0.95 1.35 1.27 0.75 0.85 1.1 1.2 0.7 1.02 Bengaluru Bhopal 0.1 5 2 2 1.2 0.9 0.1 0.5 1.48 Mumbai 1.48 CDI Basic Brand Metrics Customers who have purchased a Product in the Category (#) Market Penetration (%) = ------------------------------------------------------------------------------------------------Total Population (#) Customers who have purchased the Brand (#) Brand Penetration (%) = --------------------------------------------------------------------------------------Total Population (#) Brand Penetration (%) Penetration Share (%) = --------------------------------------------Market Penetration (%) Customers who have purchased the Brand (#) Penetration Share (%) = ------------------------------------------------------------------------------Customers who have purchased a Product in the Category (#) Brand Penetration (%) = --------------------------------------------------------------------------------------Total Population (#) Brand Penetration (%) Penetration Share (%) = --------------------------------------------Market Penetration (%) Customers who have purchased the Brand (#) Penetration Share (%) = ------------------------------------------------------------------------------Customers who have purchased a Product in the Category (#) Market and brand penetration The surgeons who purchased any scissor at least once a year = 1500 The surgeons who purchased our company's brand at least once this year was = 650 Total number of surgeons in Mumbai = 2000 Calculate: Brand Penetration, Market penetration and penetration share NOTE: Market penetration and Brand penetration ratios allow us to decompose the market share calibrated which means that the analytician would be in a position to explain the resultant market share due to the force applied by Product category acceptance and brand acceptance given category acceptance. Calculate relevant ratios and comment Brand A Brand B Brand C Total Customer population BDI = Customer_Type 1 ₹ 250 ₹ 250 ₹ 500 ₹ 1,000 150 Customer_Type 1 Brand A Brand B Brand C Customer_Type 2 ₹ 550 ₹ 550 ₹ 300 ₹ 1,400 350 Customer_Type 3 ₹ 300 ₹ 900 ₹ 200 ₹ 1,400 400 Customer_Type 2 Customer_Type 3 1.36 1.29 0.61 0.88 0.83 1.19 3.00 0.77 0.45 Max. 3.00 1.58 CDI = This matrix is the composite matrix Brand A Brand B Brand C Rankings 1.19 0.83 Customer_Type 1 Customer_Type 2 Customer_Type 3 2.15311004784689 1.21804511278196 0.50867224880383 1.39318885448916 0.78814683768244 0.9874226006192 4.73684210526316 0.73082706766917 0.37302631578947 Customer_Type 1 Brand A Brand B Brand C 1.29 0.95 Customer_Type 2 2 3 1 Customer_Type 3 4 6 7 8 5 9 the market. s the first level of market classification. --- ---- eons in Mumbai. However, the company's marketing s of all scissors in this market is around 5000, anually 200. Purchase of any type of scissors by cardiac ual sale of all scissors is 1000. BDI = 5 eons in Mumbai. However, the company's marketing s of all scissors in this market is around 5000, anually 200. Purchase of any type of scissors by cardiac ual sale of all scissors is 1000. --- CDI = 1.2 Brand Penetration = Market Penetration = Penetration Share = 0.325 (650/2000) 0.75 (1500/2000) 0.433333 (650/1500) calibrated which force applied by Brand C has the largest Brand Development Index of 3 for Customer 1 , but, does not seem to do well for Customer 2 & 3 However, the Category Development Index, the importance attached to customer 1 by the market is 1.58 which is the highest as compared to customer 2 & 3 Brand B has got the highest BDI with Customer 3 at 1.19 However, the importance of this customer segment is the lowest among all the customer segments at 0.83 Customer A seems to be doing better than Customer C , since, it has got a high Brand Development Index of Customer 1. Min. 0.61 0.83 0.45 Also, Brand seems to be not focusing on Customer C where BDI at which is in alignment with marketing logic. Also, Brand seems to be not focusing on Customer C where BDI at which is in alignment with marketing logic. Loss Matrix 2.2 0.6 0.733333 3.4 0.927273 0.377778 0 0 0 Min. Min.-Min. Loss Matrix Min. 0.94902 0.415686 0.891503 0.415686274509804 1.648485 0.824242 0.297643 0.297643097643098 0.249554 0.915033 1.336898 0.249554367201426 0.249554 0.415686 0.297643 Loss Matrix 0.647059 0.647058824 0 0 0.294118 1.078431373 (500/200)/(1000/2000) (600/200)/(5000/2000) Customer e highest as owever, ong all ce, it has BDI at BDI at Loss Matrix 1.94117647058824 0 2.64705882352941 Loss Matrix 0 0 0 1.545455 1.545455 0.515152 0.454545 1.666667 1.363636 ...
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