You are the data analyst for a home grocery delivery service. Your marketing tea

Question

You are the data analyst for a home grocery delivery service. Your marketing team is trying to decide between two different types of customers that your company may cater to. The first is young professionals, who might be too busy to do their own shopping. The second, is young families who might be busy managing their jobs and children. Your job is to collect data and to analyze which group is more profitable to cater towards and what differences exist between these two groups. Describe three variables that you would want to analyze and why they are relevant to this market analysis.

Explanation / Answer

The market research should be based on following variables -

1) Average Monthly Expenditure on Grocery -

The young families with kids are likely to spend more on groceries than just the young professionals. So, if we get the data for average spending on groceries per month, we can target the right consumer for home delivery services.

2) Frequency of visiting the Grocery Store (in days) -

This would give us a better idea of more frequent buyers who can then be turned into permanent customers by offering them suitable discounts or privileges. This would bring more revenue and hence more profit. Frequent buyers are more profitable.

3) Expected Delivery Time (in hrs).

This would be a very significant factor as far as the customer satisfaction is concerned. Customer expecting a short delivery time are more vulnerable as they might get frustrated with a delayed service. So, the company should focus on the group which has high expected delivery time.

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