Objective

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Brewnola, a food-based consumer packaged goods (CPG) startup, plans to launch a commercial product early in the summer of 2016.  The management wants to identify those bars and pubs most likely to be interested in selling this new snack product.  The company has discovered in their own research that bars and pubs tend to reflect the interest and preferences of their customers. The objective in this analysis is to identify unique customer segments, recommend appropriate segment(s) to target with this new product, and give recommendations on how the company can position the product within the market based on survey data.

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Recommendations

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1. Based on analysis from 126 responses in terms of distance, size of each cluster, and their characteristics, three segments are sufficiently different for Brewnola to more easily develop targeting strategies around the most receptive segment.

2. The company should focus on cluster number two.  Cluster two was the best of the identified clusters in terms of size, purchase intention, and preference for the product features most closely embodied in Brewnola’s product.

3. The company should target customers in the American South, focus on working class individuals instead of students, and develop engagement strategies for the Asian and Non-Hispanic White populations.  These two racial/ethnic groups seemed to be well represented in the survey and generally showed the greatest inclination to prefer products similar to Brewnola’s.

4. The company should conduct additional surveys to reach a more representative end-user population.