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    ABB Electric Segmentation Case TEAM 4

    Uploaded by

    Rohini Runfola
    This document discusses ABB Electric's segmentation strategy to target specific customers. It outlines how ABB Electric used a Marketing Information System to conduct behavior-based segmentation of customers based on key attributes like price, quality, warranty and more. The analysis showed District 2 had the highest potential purchase volume, so ABB Electric targeted that district and its companies for their direct marketing program.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    ABB Electric Segmentation Case TEAM 4

    Uploaded by

    Rohini Runfola
    3K views11 pages
    This document discusses ABB Electric's segmentation strategy to target specific customers. It outlines how ABB Electric used a Marketing Information System to conduct behavior-based segmentation of customers based on key attributes like price, quality, warranty and more. The analysis showed District 2 had the highest potential purchase volume, so ABB Electric targeted that district and its companies for their direct marketing program.

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    This document discusses ABB Electric's segmentation strategy to target specific customers. It outlines how ABB Electric used a Marketing Information System to conduct behavior-based segmentation of customers based on key attributes like price, quality, warranty and more. The analysis showed District 2 had the highest potential purchase volume, so ABB Electric targeted that district and its companies for their direct marketing program.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    3K views11 pages

    ABB Electric Segmentation Case TEAM 4

    Uploaded by

    Rohini Runfola
    This document discusses ABB Electric's segmentation strategy to target specific customers. It outlines how ABB Electric used a Marketing Information System to conduct behavior-based segmentation of customers based on key attributes like price, quality, warranty and more. The analysis showed District 2 had the highest potential purchase volume, so ABB Electric targeted that district and its companies for their direct marketing program.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11
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    ABB Electric previously supplied electrical equipment but saw declining sales. They have launched a new direct marketing program (MKIS) to help increase market share.

    The MKIS program uses a Marketing Information System to support decision making and help ABB Electric determine customer needs, do behavior-based segmentation, and target customers to increase market share.

    Critical customer attributes considered include invoice price, energy losses, overall product quality, availability of spare parts, clarity of bid documents, knowledgeable salespeople, maintenance requirements, ease of installation, and warranty.

    ABB ELECTRIC SEGMENTATION

    Team 4

    Case Background

    ABB Electric created, supplied and distributed electrical equipment. Industry sales declined significantly in 1974. Increasing competitions from large companies.

    MKIS Program

    New Direct Marketing program using Marketing Information System (MKIS) to support decision making.

    In order to increase market share:


    Determine

    client needs Behavior Based Segmentation Target

    Customer Needs

    Critical Attributes:

    Invoice price Energy losses Overall product quality

    Availability of spare parts


    Clarity of bid document Knowledgeable salespeople

    Maintenance requirement
    Ease of installation Warranty

    Supplier Choice

    ABB Electric Loyal Segment (Loyal) Competitive Segment (Competitive) Switchable Segment (Switchable) Competitor Loyal Segment (Lost)

    Choosing a District

    Purchase Volume
    Thousands 60

    Summed the purchase volume. District 2 is our targeted district.

    50

    40

    1
    2 3

    30

    20

    10

    0 1 2 District 3

    District 2
    Companies Customer ID Purch. Vol.($) Choice Price Energy_Loss Warranty pare_Parts Prob_Solvuality District Maintenance S Ease_Install Q
    A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 3 13 15 20 22 23 25 26 29 31 34 35 37 38 43 44 46 47 48 52 53 55 56 59 62 63 76 77 78 81 87 88 643 466 696 1009 518 871 800 899 290 37 355 14798 767 182 12514 10997 251 956 335 787 989 728 216 65 289 198 760 777 226 618 395 207 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 6 4 6 3 4 6 5 6 1 3 4 7 5 5 4 6 5 2 5 5 5 4 5 4 4 4 6 5 5 5 6 5 6 5 6 4 5 6 6 6 3 4 4 6 6 5 5 6 4 3 6 6 5 4 3 4 4 5 6 4 6 5 6 5 7 8 6 5 6 6 5 6 5 3 4 7 5 5 6 7 6 5 6 6 4 4 5 4 4 5 6 5 6 7 7 5 7 9 4 6 7 7 5 4 6 2 5 6 6 4 7 9 4 2 7 5 2 5 3 5 1 5 7 5 6 5 7 4 6 9 5 5 9 8 2 5 7 1 3 4 4 6 7 8 4 4 3 5 3 3 6 3 3 7 7 6 7 5 7 4 7 8 5 9 8 4 9 7 4 9 5 5 2 9 8 6 7 2 4 5 7 3 5 5 8 2 8 6 7 5 6 5 7 7 4 5 7 6 5 5 4 4 6 7 7 6 7 8 5 5 6 6 5 5 5 6 4 6 7 6 6 6 7 5 6 5 6 4 6 6 7 6 3 4 4 7 5 6 5 7 5 3 5 5 5 5 5 4 4 4 6 5 6 5 5 3

    Customer Loyalty Based Segmentation

    Key drivers of choice

    Important variables:

    Firm Selection

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