GP individual Research the Library and provide at least 1 example of how a real company has used each of the following multivariate techniques: factor analysis, multi-dimensional scaling, and cluster...

Case Study- Cluster Analysis- Brand Audit of a leading brand House in UAE.
Cluster Analysis is used to divide the data in meaningful/useful groups. There are many
practical aspects of Cluster Analysis. Almost all the retail companies can utilize this
analysis to understand the behavior of their customers. There are various types of
clusters algorithm as well as tools and techniques available to divide the whole data in
meaningful groups.
Case- Here we are taking a case of a leading fashion brand house who wants to do an
audit of brand as well as customer segmentation (grouping) based on brand positioning.
The objective of this exercise from brand factory is to assess the existing 8 brands in
outlet, Identify the target audience for each of the existing brands and understanding the
consumer behavior for each brand as well as competition between the each brand.
Approach
The data used for cluster analysis was collected by following 3 approaches-
 Market Survey
 Depth Interview
 Exit Interview
The data collected by above means required deep drive to profiling the various
segments of the consumer, a perception mapping have been done to find the gap in the
perception as well as to identify the new opportunities. The image of each brand has
been analyzed through the analysis of correspondence. The various outcome of the
analysis are further analyzed to drive the root cause of the nature. A correlation analysis
has also been done to predict the grouping of products.
CONCLUSIONS
Consumer segmentation has been done for each brand as well as for the grouping of
brands with different probabilities. The demographic behavior has also been taken in
the account while driving the cluster. There are clear cut indications about the
association of choice of brand with the age and sex of the consumer. The derived
conclusions were useful for the brand factory to define the future strategies of sales,
offering discounts as well as bundling the brands to attract the consumers.
The upper management had opted to go with cluster analysis because they want to
bundle the products of different brands to offer it to consumer. This will enable them to
get better price deal with the brands also as bundling of product will increase their sales
volume hence they may get advertising deals with less popular brands. It will be a win-
win situation for consumer and brand house both as brand house will pass some of it’s
cost advantage to the consumers.
The same analyses have been done by many FMCG companies to bundle their
products. A live example is Future group.
Case Study- Failure of Banks using multidimensional scaling
Multidimensional scaling is one of the mathematical models which can be used to
predict the financial health of any company. This technique is well established and user
friendly as it represents the output in pictorial form which is easy to understand, use and
decision making. This technique is very robust in nature and produces a map based on
the distances between points. It can manage highly correlated as well as bulky unusual
data.
Case- Spanish private Banking system was in deep crisis between the year 1978 and
year 1983. This analysis technique is now applied on the available data...