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Kirin Usa

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Submitted By adamcarlin
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Kirin USA

Q1. Run “Segmentation” from the Segmentation and Classification tool (do not enable the Discrimination) to find the optimal number of segments in the market. Explain where you decided to cut the dendogram and why?

When we ran the segmentation a dendogram was created and this provided us with information regarding the amount of lost information when we clustered the data together. The top of the dendogram is where all clusters are grouped together and most information is lost. The bottom of the dendogram is where all the clusters are not grouped together and the information is most similar. According to the first dendogram that was created, we determined that the optimal number of segments is four. This is the optimal number of segments because at this point the first significant jump occurs from .55 to .89. Four clusters is the best approach because you lose information from 4-3 and when going from 4-5 the information is too scattered and becomes irrelevant and unfocused. This is why 4 clusters is the best approach.

Q2. Use the number of the segments you determined in Q1 and re-run “Segmentation” from the Segmentation and Classification tool (enable the Discrimination). This time, in the Dendogram sheet, instead of 9 segments you should see the specific number of segments you determined. What are the key segments of import beer drinkers? How can you label them? Explain the profile of each segment according to the segmentation (not discrimination) variables used in the analysis.

After determining that four segments would be the best choice for Kirin USA we are left with four clusters. The first cluster we called “immature drinkers” and the attributes for this segment are; they don’t care much for the quality or taste of their beer and are the youngest segment in comparison to the others, they also enjoy acquiring a “buzz”. The second segment we

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