Calculate clv and total segment value

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Reference no: EM131235682 , Length: word count:1500

Assignment

Background

This is an individual assignment, which requires you to analyse a given data set, interpret, draw conclusions from your analysis, and then convey your conclusions in a written report to a person with limited knowledge of Customer Analytics.

Case Study

Tesco PLC is a British multinational supermarket chain headquartered in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK, Ireland, Hungary, Malaysia, and Thailand. The company currently offers products in nine different categories including Apparel, Bakery, Deli, Dairy, Fresh Produce, General Merchandise, Grocery, Liquor, and Meat.

Tesco launched its customer loyalty scheme, the Tesco Clubcard, in 1995, with two levels (Silver and Gold). It has been cited as a pivotal development in Tesco's progress towards becoming the UK's largest supermarket chain and one that fundamentally changed the country's supermarket business. Cardholders can collect one Clubcard point for every £1 they spend in a Tesco store, or at Tesco.com. This enables the company to collect data on purchase behaviour of customers and utilize it to design customized offers and conduct targeted retention campaigns.

Data

Transactional Data

The transactional data of this assessment task relates to a random sample of 10,000 customers from Tesco Clubcard in a period from 1 January 2014 to 31 December 2015. The variables in the data table are described below:

Variable Name	Description
ID	Unique ID of customers
AP.spent.2014	Total spending on Apparel category in 2014
BH.spent.2014	Total spending on Bakery category in 2014
DL.spent.2014	Total spending on Deli category in 2014
DY.spent.2014	Total spending on Dairy category in 2014
FV.spent.2014	Total spending on Fresh Produce in 2014
GM.spent.2014	Total spending on General Merchandise in 2014
GR.spent.2014	Total spending on Grocery category in 2014
LQ.spent.2014	Total spending on Liquor category in 2014
MT.spent.2014	Total spending on Meat category in 2014
AP.spent.2015	Total spending on Apparel category in 2015
BH.spent.2015	Total spending on Bakery category in 2015
DL.spent.2015	Total spending on Deli category in 2015
DY.spent.2015	Total spending on Dairy category in 2015
FV.spent.2015	Total spending on Fresh Produce in 2015
GM.spent.2015	Total spending on General Merchandise in 2015
GR.spent.2015	Total spending on Grocery category in 2015
LQ.spent.2015	Total spending on Liquor category in 2015
MT.spent.2015	Total spending on Meat category in 2015

Survey Data

The data set also contains customers' response to the following statements on a scale from 1 (completely disagree) to 4 (completely agree), collected via a survey in December 2014:

1- When shopping , I always look at the price per ounce or price per unit information 2- When shopping , quality is the most important factor for me

3- I think it is important to purchase products that are made locally 4- I carefully consider the health benefits of what I eat

Task 1
- Use the survey data to create four customer segments Hint: use K-Means algorithm in IBM SPSS Modeler

Task 2
- Calculate CLV and ‘Total Segment Value' for each segment from Task 1 (discount rate = 3%)
Hint: use Microsoft Excel

Task 3
- Analyze and interpret your findings from Tasks 1 and 2
Hint: Start by identifying appropriate labels for the four customer segments created in Task 1.
(The "relative distribution" tab under "View: Clusters" option of your K-Means model nugget can help you with this task).

Task 4
Develop recommendations for TESCO using your findings from Tasks 1, 2, and 3.

You are required to submit both your written report (approx. 1500 words) and analysis files (conducted in Excel and IBM SPSS Modeler).

Analysis

Students are expected to complete the first analysis task in IBM SPSS Modeler and the second analysis task in Microsoft Excel. Both files are expected to be a part of your submission.

Before submitting your analysis make sure it is logically organised and any incorrect or unnecessary output has been removed. In your Excel file all calculated figures are expected to be tied to appropriate Excel functions.

Report

The report should be written based on your analysis output. As a general guide, you are expected to start your report with a brief introduction and after explaining your methodology and interpreting your analysis findings, conclude the report by a recommendations section.

Reference no: EM131235682

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Reviews

len1235682

10/8/2016 5:06:55 AM

Develop management recommendations - Provides outstandingly authoritative and expert guidance as to how novel solutions might be skilfully and creatively implemented in a manner that excellently addresses multiple contextual factors of the problem.Report: Quality of writing, Report formatting & Table & Figures to support conclusions Consistently and effectively uses appropriate, relevant, and compelling content to illustrate a mastery of the subject or topic and generates original knowledge, making a very substantial contribution to a discipline or area of professional practice.

len1235682

10/8/2016 5:06:29 AM

Analysis: Analytical results - Uses most suitable data analysis techniques independently, efficiently and effectively, and demonstrating a consistently high levels of expertise and specialised skills.Report: Selection of analytical techniques and evaluation of the methodology for improving marketing decision-making - Proposes an exemplary creative, novel solution to existing and/or new situations in professional practice and/or further learning that indicates a deep comprehension of a complex problem and reflects an expert and authoritative judgement of the pros and cons of the proposed solution Solutions reflect an exceedingly high level of intellectual independence. Report: Interpretation of analysis output from a business perspective - Provides an excellent interpretation of the analysis output and insightful interpretations from a marketing stand point

len1235682

10/8/2016 5:05:39 AM

Report The report should be written based on your analysis output. As a general guide, you are expected to start your report with a brief introduction and after explaining your methodology and interpreting your analysis findings, conclude the report by a recommendations section.

len1235682

10/8/2016 5:05:26 AM

• Analysis Students are expected to complete the first analysis task in IBM SPSS Modeler and the second analysis task in Microsoft Excel. Both files are expected to be a part of your submission. Before submitting your analysis make sure it is logically organised and any incorrect or unnecessary output has been removed. In your Excel file all calculated figures are expected to be tied to appropriate Excel functions.

len1235682

10/8/2016 5:05:03 AM

ULO1: To apply analytics models to a wide range of marketing activities ULO2: Use computer software to analyse consumers’ data and understand the strength and limitations of each software ULO3: Analyse and interpret the output of a range of Customer analytics models in order to improve the decision making process ULO4: Demonstrate comprehensive understanding of Customer analytics models

len1235682

10/8/2016 5:04:55 AM

GLO1: Discipline-specific knowledge and capabilities: appropriate to the level of study related to a discipline or profession. GLO3: Digital literacy: using technologies to find, use and disseminate information GLO5: Problem Solving: creating solutions to authentic (real world and ill define) problems.

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