Aruna Beauty Salons: Identifying Loyal Customers through Discriminant Analysis
Established in 2010, Chennai-based Aruna Beauty Salons (ABS) offered head to toe beauty care services. Over the few years, its prestigious clientele included local celebrities – from TV industry, films, sports and public life. Quite a few suggestions offered by regular clients were implemented gaining their trust. ABS’ Founder-Owner, Aruna Kumari (Aruna) always ensured that the customers were provided with quality service and products at affordable price. Since inception, Aruna kept on adding services and product varieties, improvising the ambience every now and then based on the suggestions and feedback from her customers.
Aruna married Manoj Kumar (Manoj), who was working as Regional Marketing Manager with an Agrochemical company in Chennai. As Manoj’s job demanded excessive travelling Aruna was left alone at home. To keep herself busy she started providing beauty services from home. Initially, she started with only few services but with word-of-mouth publicity, she quickly gained popularity in her area in Velachery, one of the busiest locations in the city. Aruna opened a full-fledged beauty salon and named it as Aruna Beauty Salons (ABS), which grew leaps and bounds with its quality services and products.
In 2012, Aruna decided to expand the salon. She recruited three more girls who were certified in beauty course from National Skill Development Corporation (NSDC), a Government of India’s wing, which helps youth to increase employability skills. Over the years, Aruna added many more services to her salon. However, Aruna was not able to grow her store beyond a point as the city has many private beauty salons, national and international brands like Mythili’s, Anoo’s, Naturals, Vasundhra’s, VLCC, Shahnaz Hussain, etc.............
Assignment Questions
I. What is discriminant analysis? What are the procedures for conducting discriminant analysis? How do you think discriminant analysis can help ABS’ marketing research problem?
II. Explain multiple discriminant analysis. How do you conduct multiple discriminant analysis in the context of ABS’ marketing research problem?
III. ...........
Exhibits
Exhibit I: Customer Classification at ABS
Exhibit II: New Customer Classification at ABS