Automotive Industry Cluster Analysis

Project Description

In the first phase of our project to learn more about the automotive industry and its customers, we performed a survey by posting on social media to find out what consumers looked for when in the market for a new vehicle. In our analysis of the results, we had about equal numbers of male and female respondents (52.8% and 47.2% respectively) with ages ranging from 18 to 60. Income for our respondents ranged from $50000 to $350000 per year. This mix of demographics gave us a great set of data to analyze in our cluster analysis.

We used the SPSS software to perform our cluster analysis. We decided on using three clusters as this gave us the best representation of our data. We named our clusters based on the characteristics the survey results in each cluster represented. Our three clusters were named "non-horsepower/luxury reliant", "safety/luxury dependent", and "least price dependent". We chose cluster 1 - "non-horsepower/luxury reliant" for further analysis and marketing strategy. Cluster 1 seemed more interested in the functional aspects when in the market for a car. These consumers were usually college students or families who did not care for performance or luxury features. Cluster 1 consumers valued saving money while still having a safe and functional vehicle. We used all of this information to create a basic mock marketing campaign using the 4 Ps of marketing.

Skills

Teamwork

Market Research

Marketing Strategy

Cluster Analysis

IBM SPSS

Industry Analysis