Denny's Segmentation.pdf
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The document analyzes customer preferences for Denny’s over IHOP, focusing on target audience characteristics and price sensitivity. It identifies three key segments: premium late diners, outgoing breakfast lovers, and brand loyalists, each with specific dining preferences and recommendations for improving customer engagement. Primary research through surveys indicates that the 24/7 dining option and food quality significantly impact customer satisfaction.
Denny's Segmentation.pdf
- 1. Customer Segmentation Prepared By: Tanishq Mishra, Akshita Jain, Hequn(Greta) Huang, Kena Rathod, Parth Raichur
- 2. Group F Akshita Jain Kena Rathod Hequn (Greta) Huang Parth Raichur Tanishq Mishra
- 3. 1 Situation & Problem Statement Agenda 2 3 5 4 6 Data Analysis & Model Result Model Selection & Research Method Results Conclusions Recommendations
- 4. Situation & Problem Statement Situation: We would like to know the difference in preference for Denny’s over IHOP to understand who is the target audience for Denny’s? Are they price sensitive? Problem Statement: In order to understand the growth aspects of Denny’s in comparison to its competitors, we will try to analyse what segment of diners preferred Denny’s over IHOP
- 5. Model Selection Competitive advantage: Segmentation techniques provide tools to succeed in the market even when there is high competition. Niche Marketing: Denny’s has identified a specific segment - “America’s Diner is always open” that was not provided by existing brands. Distinct Segment responds differently to marketing efforts General Market Distinct Segment responds differently to marketing efforts Unique Needs Segmentation
- 6. Research Method - Primary Research Primary research delivers accurate, relevant, and up-to-date information, enabling you to identify emerging trends in customer behavior, discover unmet needs, and close gaps across the experience journey. ● Surveys are a great way to reach a target market and collect relevant data at scale ● Easy to create & distribute ● Cost-effective ● Gathers significant data Sample size = 29 A survey was conducted to understand the age group, gender, dining behaviour, brand preference for Denny’s
- 7. Solution Process Goal Tasks Tools R studio Excel Market segmentations ● Run cluster analysis on the processed data 3 Excel ● Filter/Transform the data ● Categorical to numeric variables 2 fi l Data usability R studio Excel Results interpretation ● Interpret each segmentation ● Use market strategic metrics 4 ● Design a survey ● Spread it to particular respondents 1 Gather data Qualtrics SURVEY DATA ANALYSIS SEGMENT INTERPRET
- 8. Survey
- 9. Research Analysis ● Food_Quality and Dining 24/7 option have the most positive impact on Dining experience. ● Priced_menu and Preference are negatively correlated.
- 10. Research Analysis ● Most of the respondents are Female in the age range of 18-25 ● Majority of the respondents are in the age range of 26 - 34
- 11. Research Analysis ● Respondents who visits Denny’s once a month spends <$20 per visit ● Respondents who visits Denny’s 4-5 times a month spends between $20 and $40 per visit
- 12. Research Analysis Most of the respondents had a good dining experience and all the respondents believe 24/7 dining option as a positive aspect
- 13. Research Analysis Most of the respondents believe Denny’s has a convenient location and good food quality
- 14. Model Results and Visualizations
- 15. Results Interpretation No. of visits Spend per visit Denny's preference Priced menu 24/7 Dining Food Quality Convenient Location Dining Experience cluster 1 2.00 35.70 1.43 3.71 4.71 3.71 3.86 3.57 cluster 2 2.25 26.90 1.38 4.00 4.38 3.62 4.12 3.62 cluster 3 1.14 15.00 1.79 3.14 3.71 3.36 3.79 3.21 Segmentations Characteristics Cluster1: Premium Late Diners Spends more money, prefer denny's because of 24*7 dining option & food quality Cluster 2: Outgoing Breakfast Lovers Frequent Visits, they believe menu is rightly priced, Denny’s has a convenient location and they had good dining experience Cluster 3: Brand Loyalists Have a high loyalty to Denny’s
- 16. Recommendations Premium Late Diners: ● Diversify their menu with more food options ● Make more brand campaigns Outgoing Breakfast Lovers: ● Carefully consider about the selection of store locations. Be closer to the center of transportation. ● Decorate stores’ interiors and make it more ambient for diners ● Train the employees. Provide good service Brand Loyalists: ● Set up membership system. Provide coupons and gifts periodically ● E-mail marketing to existing customers to provide latest information & upcoming events Statistical recommendations: Due to the low sample size of 29, it is difficult to make any statistically significant recommendations
- 17. Situation Comparison-McDonald's Country Chicken “burger” types Beef “burger” types Other (fish/veggie) U.S 2 (17%) 9 (75%) 1 (8%) China 3 (23%) 8 (62%) 2 (15%) Brazil 3 (18%) 14 (83%) 0 (N/A) Egypt 12 (43%) 14 (50%) 2/1 (7%) India 4 (50%) 0 (N/A) ⅓ (50%) Germany 3 (23%) 7 (54%) 2/2 (23%) Australia 5 (25%) 13 (65%) 2/1 (10%) ● Chicken “burger” types: Types of burger available in countries ● Percentage: % of meat burger present in each country
- 18. Conclusion ● Brand Loyalists segment prefers Denny’s over IHOP ● Outgoing breakfast lovers segment believe Denny’s menu is rightly priced ● Denny’s 24/7 dining option has outperformed even during pandemic