Pizza Market Segmentation

Prepared for Mr. Client

February 15, 2012
Executive Summary
This presentation is in response to a request from Pizza
Inc. to execute a segmentation of the pizza market

The results are based on data from 60 respondents
Cluster analysis was used to identify the segments in the
data

Results show that there are 5 segments of the pizza
market: meat lovers, vegetarian, price conscious, pizza
lovers
Summary Figures
Table 1 below shows the average responses to select survey questions for each
segment and for the entire set of respondents
Table 2 provides a summary measure of the segment averages relative to the
overall average
For example, the average response on the I Love Meat question was 18 for the
meat lovers segment vs. 10 overall. This translates into a relative measure of 80%
[(18-10)/10=.8 or 80%]

{Notes: Get both tables on one page.
No unnecessary numbers after the decimal place
Commas for numbers greater than 999
See checklist }
Meat Lovers Segment
Figures relating to segment one are shown in the table below.
The relative percentage for I Love Meat was 80%. This
segment also had a reading of 45% for Number of Meat
Toppings and -30% for cheese only pizza. As a result this
segment was named Meat Lovers
Vegetarian
The figures for the second segment are shown below. This
segment has below average figures for number of meat
toppings (-60%) and above average for vegetable toppings
(45%) and
As such we named this segment Vegetarian
Etc.
Etcetera, Etcetera, Etcetera
You may be more brief as you go through each
segment because the reader will become
more familiar with the method
Summary
Results of Cluster Analysis based on 60 survey
responses showed 5 segments in the pizza
market
Meat Lovers
Vegetarian
Etc.

Technical details regarding the cluster analysis
are contained in the Appendix

Appendix
Methods
The previous analysis executed using K-means
cluster analysis
Hierarchical cluster analysis was not used
because

The inputs to the cluster analysis were
These were chosen rather than X because

Multiple Iterations
The K-means algorithm was executed 10 times
for number of clusters X through Y
Each iteration had a _____ random starting
point
Two important metrics for selecting the
correct number of clusters are _____ and ___
because .
Pseudo-F By Size of Smallest Segment
The graph at left shows the
___ and ____ for each of the
10 iterations for 4 through 8
segments
We eliminate the X, Z and Y
segment solutions because .
as demonstrated by their
lower ________
We can also eliminate the U
segment solution because of
inferior _____ as
demonstrated by the _______
The A and B segment solutions
are examined in more detail
on the next slide
Detailed Analysis of A and B

The table on the left shows the
figures for the Pseudo-F and size of
smallest cluster for the A and B
segment solutions
The A segment solution has greater
discrimination vs. the B segment
solution
The A segment solution has higher
Pseudo-F scores vs. the B segment
solution (xxx vs. yyy)
The A segment solution is more
stable than the B segment solution
Discuss number of occurrences of the
same Pseudo-F score (site actual
numbers and how many times they
occur)
Discuss difference in largest vs. smallest
size of smallest cluster (site actual
numbers and show calculation of
difference)
You will probably need multiple pages
to fill-in this analysis.
Remember, dont be afraid to repeat
the table and dont make your
reader turn pages to find numbers