BUSINESS NEED

A luxury leather goods company sought to identify distinct segments within the luxury consumer market. The goal was to enable targeted product development and marketing strategies. Analytics was used to perform market segmentation, reducing risks by highlighting promising products and optimal marketing channels. By focusing on specific segments rather than the entire market, management could refine their strategy for a more cost-effective and precise approach.

METHODOLOGY

The Analytics Arts Team proposed a comprehensive market research study using CAWI methodology for a luxury brand. A custom questionnaire was developed to address all project requirements, covering target group verification, brand awareness, purchase behavior, lifestyle habits, media consumption, and demographics. The survey focused on the top 20% income bracket, with specific quotas for age and geographic representation. A key component explored shopping behavior and sustainability attitudes. This data-driven approach aimed to provide deep insights into luxury consumer segments, enabling more targeted product development and marketing strategies.

OUTPUT

Our analysis revealed distinct market segments by using cluster analysis based on respondents’ ratings of specific statements. These segments exhibited strong internal similarities and significant differences from one another. By examining the sociodemographic traits and behaviors of each group, we provided the company with valuable insights that enabled them to develop targeted strategies tailored to engage and attract each unique market segment more effectively.

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