Case Abb Essay

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Case 1 ABB Electric Segmentation Group 7C Context ¡ ABB is a producer of electrical equipment. ¡ ABB established a new marketing strategy based on analytical techniques (MKIS)to improve its results. ¡ ABB management segmented its marketing into 4 categories using Choice Modeling : Loyal, Competitive, Switchable and Lost. ¡ ABB has been given a budget for a supplementary direct marketing campaign aimed at 20% of the companies in the region composed of 3 districts. Outline 1. Customer targeting with limited data 2. Choice-based model 3. Limits of the model and suggestions I. Customer targeting with limited data • Introduction to the market • Limited data targeting : no geographical distinction • Limited data…show more content…
¡ Customers targeted represent an annual purchase of $68 388, of which 19% are ABB’s share Customer 35 43 44 66 32 11 84 17 74 20 53 47 12 26 16 33 23 27 Ann_Purchase $14 798 $12 514 $10 997 $9 793 $6 270 $1 722 $1 404 $1 364 $1 219 $1 009 $989 $956 $928 $899 $894 $890 $871 $871 District 2 2 2 3 1 3 3 3 1 2 2 2 1 2 3 3 2 1 Firm_Chosen D C A B C A B B B B C B D D B D D D II. The choicebased model • • • • • Key drivers of choice Segmentation criteria Focus on new campaign efforts Before/after marketing analysis Sales productivity improvement The choice-based model Confusion matrix ¡ After running the choicebased analysis, a lot more data can be interpreted. ¡ The model is accurate since 74% of the data is correctly predicted. KEY DRIVERS of CHOICE ¡ Running the analysis, we can highlight 6 variables that are key drivers in the process of choosing a supplier: Price, Energy loss, Warranty, Ease of Installation, Problem Solving support and Overall Quality of products. ¡ The standard deviation for each driver is well below the coefficient estimations, and each t-statistic is above 2. Thus the key drivers are validated. Segmentation criteria ¡ Identifying the 4 segmentation criteria of ABB known as loyal, competitive,

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