Assignment Task:
Assignment one is an individual assignment with two tasks. The first task is to analyse the given dataset and draw conclusions.
Specific Requirements:
Case Study: Zenn Design
You work as a Market Insight Analyst for Zenn Design - a furniture retailer in Australia operating over 120 stores. The CMO wants you to analyse the company's performance and identify opportunities for growth. She expects you to analyse the data given and develop a set of recommendations to consider.
In recent years, increased competition has reduced its profitability and the retailer is working on a significant investment plan aimed at increasing its market share. As the first step, CMO would like deeper insights into the Zenn Design customers, their attitudes and spending habits. Two other retailers - Fantastic Furniture and Amart have been identified as the major competitors of Zenn Design.
Your colleague surveyed 500 randomly selected customers in Melbourne metropolitan area asking them about their furniture purchases. The survey started with a question about the name of the first brand that comes to mind when they think of furniture retailers measuring the 'Top of mind brand recall' metric. The survey then included questions about respondents' spending in Zenn Design and its two major competitors, in the past year.
The survey also measured customer perception of Zenn Design and its competitors regarding three main attributes - price, service quality and range of products. These three factors were identified as the most important determinants of consumers' furniture purchases. The customer responses were collected on a 5-point scale for the following survey questions.
CP1. On a scale of 1 (very unattractive) to 5 (very attractive), how attractive is the price charged by each of the three furniture retailers?
CP2. On a scale of 1 (very bad) to 5 (very good), how would you rate the in-store and post-purchase service provided at each of the three furniture retailers?2
CP3. On a scale of 1 (very bad) to 5 (very good), how would you rate the product variety (products and brands) carried by each of the three furniture retailers?
Out of 500 survey questionnaires, 322 responses were obtained at a response rate of 64%.
Your tasks:
1. Analyse the market position of Zenn Design relative to its competitors. Hint: Market share analysis.
2. Identify the drivers of Zenn Design's performance relative to its competitors. Hint: Market share decomposition.
3. Considering your findings, identify opportunities for increasing Zenn Design's market share.
4. Develop recommendations for Zenn Design using your findings from the market share analysis as well as the other aspects of the survey. Hint: Use the survey data to uncover any difference between the three retailers regarding awareness, and/or perceptions of price, quality, or assortment. You can compare the average perception of each attribute (price, quality and assortment) across the three retailers.