DEAKIN BUSINESS SCHOOL DEPARTMENT OF INFORMATION SYSTEMS AND BUSINESS ANALYTICS MIS784 Marketing Analytics Assignment One Background This is an individual assignment, which requires you to analyse a given data set, interpret, draw conclusions from your analysis, and then convey your conclusions in a written report to a person with limited knowledge of Marketing Analytics. Percentage of final grade 30% Due date Monday 21st August 2017 6:00pm The assignment must be submitted by the due date, electronically, via CloudDeakin. When submitting electronically, you must check that you have submitted the work correctly by following the instructions provided in CloudDeakin. Please note that we will NOT accept any hard copies or part of the assignment submitted after the deadline or via Email. Extensions of time are not permitted. The following marking penalties will apply if you submit an assessment task after the due date: 5% will be deducted from available marks for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. 'Day' means calendar day for electronic submissions. The assignment uses the file SONY.xlsx which can be downloaded from CloudDeakin. Assurance of Learning This assignment assesses following Graduate Learning Outcomes and related Unit Learning Outcomes: Graduate Learning Outcome (GLO) Unit Learning Outcome (ULO) GLO1: Discipline-specific knowledge and capabilities: appropriate to the level of study related to a discipline or profession. GLO3: Digital literacy: using technologies to find, use and disseminate information GLO5: Problem Solving: creating solutions to authentic (real world and ill define) problems. ULO1: To apply analytics models to a wide range of marketing activities ULO2: Use computer software to analyse consumers’ data and understand the strength and limitations of each software ULO3: Analyse and interpret the output of a range of Customer analytics models in order to improve the decision making process ULO4: Demonstrate comprehensive understanding of Customer analytics models Feedback Prior to submission Students can seek clarification via CloudDeakin, email or in-person. After submission Your assignment feedback will be returned in a rubric via CloudDeakin with an overall mark together with comments. In order to understand any areas of improvement, students are expected to refer, and compare, their answers to the suggested solutions. Case Study The latest development in the home entertainment industry is curved TVs. Though the market for curved TVs is a small portion of the overall TV market, it is growing at a healthy rate of 20% and has the potential to become the ‘next big thing’ in the TV industry. The product is still in early stages of its lifecycle and Samsung and LG are the current dominant players in the market. SONY is planning to introduce its brand in the coming months and get a share of this promising market. As a first step, SONY has conducted a conjoint analysis to identify the product profile which is most likely to succeed in the market. In a pre-test conducted among 100 participants, screen resolution, screen size and refresh rate were identified as the main attributes that consumers look for when buying a curved TV. Other attributes such as brand names (only leading brands have curved TVs) and price (curved TV consumers are less price sensitive) were found to be less important in this market. SONY’s engineering team can offer 3 different levels in each of these 3 important attributes as given below. Attribute Levels Resolution 1080/2160/4000 pixels Screen size 55/65/105 inches Refresh rate 100/120/240 Hz Assume that customers do not necessarily prefer higher levels of any of these attributes over a lower level (i.e. 2160 pixel TV is not necessarily better than 1080 pixel TV for a consumer because better attribute comes up with some other form of limitation such as higher weight, higher heat generation etc.). After identifying the attributes and their levels, SONY has collected the preference ranking of different product profiles using full factorial design among 20 participants (assume that they are representative of the population of Australia). The product profiles used for data collection are given below and the preference data is given in the SONY.xlsx file. Table 1 Product Profiles Profile Resolution Screen Size Refresh rate 1 1080 105 240 2 1080 55 240 3 1080 65 240 4 2160 105 240 5 2160 55 240 6 4000 105 240 7 2160 65 240 8 1080 105 120 9 4000 55 240 10 4000 65 240 11 1080 105 100 12 1080 55 120 13 1080 65 120 14 2160 105 120 15 1080 55 100 16 1080 65 100 17 2160 105 100 18 2160 55 120 19 4000 105 120 20 2160 65 120 21 2160 55 100 22 4000 105 100 23 4000 55 120 24 2160 65 100 25 4000 65 120 26 4000 55 100 27 4000 65 100 SONY has also collected attribute information for two existing curved TVs in the market place, one from each of its competitors: 1. Samsung curved TV with 2160P, 105 inches and 120 Hz 2. LG curved TV with 4000P, 55 inches and 120 Hz SONY’s objective in this conjoint analysis is to identify the product profile(s) which is/are likely to give the highest market share and profits. SONY is considering offering a maximum of 2 products based on one of the following strategies: 1. Offering the product with the highest potential market share 2. Offering the top two products with the highest potential market share You have been hired as SONY’s marketing consultant to help analyse the conjoint data and identify the most profitable product strategy for SONY. Your tasks are specified below. Task One Identify the product profile which is likely to get the highest market share. Using Multinomial Logit model (MNL), estimate how much market share these products can obtain? Task Two If SONY decides to offer the top two product profiles based on the market share calculated in Task 1, how much market share can SONY get? (use MNL) (Hint: Note that the category now will have four products instead of 3 in the first question). Task Three SONY has estimated that potential size of its market in Australia next year is 50,000 consumers and each consumer buys one unit on average. SONY gets a margin of $400 from each of its product. SONY will incur an additional fixed cost of $5 Million every year if it decides to offer two products instead of one. Under this scenario, evaluate the profit potential of the two product strategies. (Hint: Profit = Sales * Margin. If there is additional cost involved, then Profit = Sales*Margin – Additional cost). Task Four Present your recommendations to SONY. a. Discuss which of the two strategies gives highest market share and why b. Discuss which of the two strategies offers best profitability c. Discuss which product strategy would you recommend to SONY and why. Submission The assignment consists of two parts: Analysis and Report. You are required to submit both your written report (approx. 1500 words) and analysis (in Excel). • Analysis The analysis should be submitted in the Excel file. Before submitting your analysis make sure it is logically organised and any incorrect or unnecessary output has been removed. All calculated figures are expected to be tied to appropriate formulas. Note: Give the Excel file an appropriate name such as MIS784_A1_studentID.xlsx. • Report The report should be written based on your analysis output. As a general guide, you are expected to start your report with a brief introduction and after explaining your methodology and interpreting your analysis findings, conclude the report by a recommendations section. Note: Name the report with an appropriate file name such as MIS784_A1_studentID.docx. Criteria Unsatisfactory Satisfactory Good Very Good Excellent Analysis: Analytical results (Marks: 12) GLO1 and GLO 3 2.9 No analysis is presented or Irrelevant/inappropriate techniques have been used to analyse the data with many errors in the analysis 0-5.9 6.5 Consistently, independently and skilfully uses appropriate data analysis techniques, demonstrating some expertise and specialised skills 6-7 7.7 Consistently, independently and skilfully uses appropriate data analysis techniques, demonstrating good expertise and specialised skills 7.1-8.2 8.9 Uses appropriate data analysis techniques independently, efficiently and effectively, and demonstrating a consistently high levels of expertise and specialised skills. 8.3-9.4 12 Uses most suitable data analysis techniques independently, efficiently and effectively, and demonstrating a consistently high levels of expertise and specialised skills. 9.5-12 Report: Selection of analytical techniques and evaluation of the methodology for improving marketing decision-making (Marks: 5) GLO1 and GLO5 1.2 Proposes no or inadequate solutions to existing and/or new situations in professional practice and/or further learning that indicate comprehension of a complex problem. Solutions do not consistently reflect any intellectual independence, adaptability and integrity. 0-2.4 2.7 Proposes an acceptable creative solutions to existing and/or new situations in professional practice and/or further learning that indicates satisfactory comprehension of a complex problem and reflects proficient judgement of the pros and cons of the proposed solution. 2.5-2.9 3.2 Proposes a good creative solution to existing and/or new situations in professional practice and/or further learning that indicates comprehension of a complex problem and reflects expert judgement of the pros and cons of the proposed solution. The proposed solution reflect a high level of intellectual independence and autonomy. 3-3.4 3.7 Proposes a very good creative, novel solution to existing and/or new situations in professional practice and/or further learning that indicates a comprehension of a complex problem and reflects an authoritative judgement of the pros and cons of the solution The proposed solution reflect a very high level of intellectual independence. 3.5-3.9 5 Proposes an exemplary creative, novel solution to existing and/or new situations in professional practice and/or further learning that indicates a deep comprehension of a complex problem and reflects an expert and authoritative judgement of the pros and cons of the proposed solution Solutions reflect an exceedingly high level of intellectual independence. 4-5 Report: Interpretation of analysis output from a marketing perspective (Marks: 5) GLO1 and GLO5 1.2 Provides no or a limited interpretation of the analysis output and no logical interpretations from a marketing stand point 0-2.4 2.7 Provides an acceptable interpretation of the analysis output and satisfactory interpretations from a marketing stand point 2.5-2.9 3.2 Provides a good interpretation of the analysis output and reasonable interpretations from a marketing stand point 3-3.4 3.7 Provides a very well interpretation of the analysis output and thorough interpretations from a marketing stand point 3.5-3.9 5 Provides an excellent interpretation of the analysis output and insightful interpretations from a marketing stand point 4-5 Report: Develop management recommendations (Marks: 5) GLO5 1.2 Provides no or limited guidance as to how solutions might be skilfully and creatively implemented in a manner that addresses multiple contextual factors of the problem. 0-2.4 2.7 Provides satisfactory guidance as to how solutions might be skilfully and creatively implemented in a manner that satisfactorily addresses multiple contextual factors of the problem. 2.5-2.9 3.2 Provides expert guidance as to how solutions might be skilfully and creatively implemented in a manner that adequately addresses multiple contextual factors of the problem. 3-3.4 3.7 Provides very good authoritative and expert guidance as to how novel solutions might be skilfully and creatively implemented in a manner that addresses sufficiently multiple contextual factors of the problem. 3.5-3.9 5 Provides outstandingly authoritative and expert guidance as to how novel solutions might be skilfully and creatively implemented in a manner that excellently addresses multiple contextual factors of the problem. 4-5 MIS784 - Marketing Analytics Assignment 1 – Trimester 2, 2017 Page 7 Report: Quality of writing, Report formatting & Table & Figures to support conclusions (Marks: 3) GLO1 0.7 Always or mostly uses inappropriate and/or irrelevant content to develop and explore basic ideas and presents an unacceptable exposition of complex knowledge and ideas. 0-1.4 1.6 Moderately uses appropriate, relevant, and compelling content to illustrate mastery of the subject or topic and presents a clear, coherent, independent and professional exposition of complex knowledge and ideas 1.5-1.7 1.9 Mostly uses appropriate, relevant, and compelling content to illustrate mastery of the subject or topic and presents a clear, coherent, independent and professional exposition of complex knowledge and ideas 1.8-2 2.2 Consistently uses appropriate, relevant, and compelling content to illustrate a mastery of the subject or topic and generates original knowledge, making a substantial contribution to a discipline or area of professional practice. 2.1-2.3 3 Consistently and effectively uses appropriate, relevant, and compelling content to illustrate a mastery of the subject or topic and generates original knowledge, making a very substantial contribution to a discipline or area of professional practice. 2.4-3 Overall Score Fail (N) 0 – 14.7 Pass (P) 15-17.7 Credit (C) 18-20.7 Distinction (D) 21-23.7 High Distinction (HD) 24 - 30 MIS784 - Marketing Analytics Assignment 1 – Trimester 2, 2017 Page 8