Market Share Optimization through Conjoint Analysis for Philips Coffee Makers
Achieved a projected market share increase from 13.2% to 61.8% by analyzing consumer preferences for coffee maker attributes such as price, capacity, auto-grinder, and water filter. Utilizing conjoint analysis and a Mixture Multinomial Logit Model, Philips identified optimal products tailored to two distinct market segments, leading to significant improvements in product utility and market potential.
This project addressed the challenge of increasing Philips' market share in the coffee maker segment by optimizing product features to align with consumer preferences. The study utilized 1480 consumer observations and analyzed key product attributes, including brand, capacity, price, auto-grinder, and water filter. The goal was to recommend product configurations that would maximize Philips' market share across two identified market segments.
Using GLIMMIX and a Mixture Multinomial Logit Model (MMLM), we segmented the market into two distinct groups based on their preferences. The dependent variable was product utility, while independent variables included price, capacity, and optional features. Statistical criteria such as BIC and CAIC confirmed a two-segment model as the optimal fit.
Skills and Tools Utilized:
Software: SAS, Excel
Techniques: Conjoint Analysis, Mixture Multinomial Logit Model, Predictive Analytics
Analytical Skills: Market segmentation, consumer behavior analysis, product optimization, statistical modeling
Power in Numbers
Stores Analyzed
Optimal Price($)
% sales drop for a $1 price increase without promotions