Final Project – MKT562 Advanced Marketing Analytics
Author: Ayush Trivedi (MS-BA, Arizona State University)
Date: February 26, 2025
This project analyzes the market positioning and customer segmentation of Bath & Body Works in the U.S. personal care and home fragrance market. Using perceptual and preference data collected via surveys, we benchmark Bath & Body Works against major competitors and provide strategic recommendations for improved market alignment and growth.
The analysis was conducted using Enginius, a marketing analytics platform for perceptual mapping and segmentation. Key steps:
- Collected survey responses from ~70 participants using Google Forms
- Measured perceptions of 4 brands across 5 key attributes
- Captured overall brand preferences, loyalty, and shopping behavior
- Applied Principal Component Analysis (PCA) to derive positioning maps
- Ran K-means clustering to segment the market based on customer preferences
- Fragrance Quality
- Price Value
- Packaging Appeal
- Product Variety
- Brand Image
Positioning maps were generated in 2D and 3D to visualize brand positions based on perceptual data.
- Dimension I (Product Variety & Brand Image)
- Dimension II (Fragrance Quality & Packaging Appeal)
- Dimension III (Price Value)
- Bath & Body Works ranks high on Product Variety and Packaging, with a strong brand image.
- Fragrance Quality, although critical, is not strongly owned by any brand—offering an opportunity for BBW to differentiate.
- Victoria’s Secret scores high on Packaging Appeal but suffers on Value for Money.
- Lush owns the Sustainability & Quality space but is niche due to premium pricing.
- The Body Shop leads on Price Value and ethical positioning.
Using K-means clustering, three distinct customer segments were identified:
- Focus on value and promotions
- Lower brand loyalty
- Threat from Victoria’s Secret’s offers
- Moderate emphasis on variety and packaging
- Open to switching if value is aligned
- Overlaps with The Body Shop’s ethical mid-tier positioning
- Strong loyalty to quality and fragrance
- Preference for premium packaging and exclusivity
- Competes with Lush’s artisan, sustainable appeal
Bath & Body Works is well-positioned for Segment 3, but lacks price-value appeal for Segment 1.
Simulated using preference data and first-choice decision rules:
- Bath & Body Works leads due to strong perception in variety and brand loyalty
- However, lacks dominance in Fragrance Quality, a key driver across segments
-
Strengthen Differentiation in Fragrance Quality
- Enhance fragrance R&D and exclusive scent collections
- Own the "signature scent" space with storytelling
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Introduce Sustainable Premium Lines
- Compete with Lush and The Body Shop on sustainability
- Reduce packaging waste; highlight eco-conscious initiatives
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Segmented Promotion Strategy
- BOGO deals for price-sensitive shoppers
- Loyalty rewards and bundled luxury kits for premium buyers
-
Improve Emotional Branding
- Reinforce mood-based marketing (e.g., “Feel Your Best with BBW”)
- Collaborate with influencers and wellness communities
- Sample size is limited (~70), mostly students and young adults
- Geographically skewed toward Tempe, Arizona
- Results are based on stated preferences, not actual purchases
- Arizona State University – W. P. Carey School of Business
- Dr. Christian Kim – MKT562 Instructor
- Enginius by DecisionPro for analytical tools
- All survey participants for their valuable input
Ayush Trivedi
📧 LinkedIn
🎓 Master’s in Business Analytics, ASU ’25