We have been hired by our client, a reputed FMCG conglomerate, Unilever as data mining consultants. Our client has a range of products in the Personal Care Category that comprises of soaps etc. One of the brands that our client happens to own is the Dove brand of soap. For the first time the client is formulating a Valentine mai-in-coupon scheme to be rolled out in the month of February (next year). The scheme has the following business objectives:
1) Understand the customer profile of those customers who buy Dove soap.
2) Based on the customer profile understanding, predict for next year, new customers who are most likely to buy Dove.
3) Send out a mail-in-discount coupon to those respective customers of Hypermarket.
4) Client will be conducting a promotional campaign for which it will be incurring substantial costs thus it wants to ensure that next year when the campaign is rolled out, the coupons are sent out to customers who are most likely to avail them.
5) Client wants to increase customer loyalty towards Dove soap, considering the intense competition and low switching costs in the category. Our client believes that executing this promotion would boost sales of Dove in February.