Analyzing a Toy Horse Conjoint Experiment

• Performed conjoint analysis (including the cluster analysis and modified market simulation software) with teammates using R
• Analyzed raw data to evaluate market share profitability and provided executive summary, including key insights and recommendations
• Compared the market segmentation and competitor’s response for 5 combined scenarios; presented to the management team using PPT

Data Profiles

• Attribute: price, height, motion, and style. These 4 attribute will provide us 16 profiles we can work with and we will reference these profiles throughout our presentation.
• The breakdown of the experimental sample is: 35% of children are 2 years old, and 75% of children are between 3 - 4 years old.
• The gender for these children is split down the middle, 50% of girls, and 50% of boys.

Insights

• We have taken many factors into consideration for our market analysis.
• We have seen a distinct market segmentation in age groups. This is a very clear untapped market for EarlyRiders and we believe it is imperative this be taken advantage of with the introduction of your new product.
• When simulating the market we have considered many factors: the combination of scenarios available, the possible competitor response, the projected margins, and the profitability in the short and long-run given projected market shares. These simulations have ensured we are taking many factors into consideration and considering multiple scenarios.
• This analysis has led us to recommend the second scenario which was derived from our A Priori Segmentation. While economics play a big role in deciding the best scenario, we believe finding a scenario with a balanced asset & margin mix is equally as important. Supply chain considerations are often overlooked and we believe we have found a scenario which is both economically and operationally beneficial.