Open Chipotle.xlsxLinks to an external site. and Chipotle Data Key.docxLinks to an external site., the same files used for the Chipotle assignment. Download this answer sheetLinks to an external site.; all items below in bold should be answered there. For a tutorial on how to perform cluster analysis in Excel, go hereLinks to an external site..
List and classify each variable in the Chipotle dataset as the following (or “none”). :
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Outcome
Marketing mix (product, price, place, promotion)
Decide on a distinct number of clusters (3 or 4), discussing whether there is a marketing reason for this number of clusters.
Open Chipotle.xlsx to run a cluster analysis. Segment the data using the K-means method. Choose whatever variables you think are best for segmentation: demographic, psychographic or behavioral variables. State which you chose and why.
Save cluster membership in the data.
Check to see the number of people assigned to each cluster.
Repeat Steps 4-6 until you have created clusters that you like (each of the clusters should have at least 20 people per cluster).
Describe the clusters quantitatively using means (e.g., Cluster 1 the age mean was 34; it was 74% female and income was high at 3.4 on a four point scale).
Profile each cluster qualitatively based on the data from Step 8 (e.g., Cluster 1 is “middle-age, wealthy cluster,” etc.)
Discuss outcome variable means for each cluster. For example, show the past frequency of Chipotle patronage for each of the clustered segments.
Which cluster would you recommend as a primary target, and why? Use numbers/charts to justify your point.
What would you recommend for the marketing mix (e.g., product, place, promotion and price strategy) for the primary target, in terms of creative input?
Submit your cluster analysis in Excel format and your answers to the questions in a Word document.