Market Segmentation

The process of market segmentation is crucial for businesses to understand their customers and tailor their marketing strategies accordingly. By dividing customers into groups based on their characteristics and behavior, companies can identify patterns and trends, and develop more effective and efficient marketing campaigns.

The K-Means algorithm is a popular method for market segmentation, as it is easy to implement and computationally efficient. In this project, first the data was cleaned, and then performed exploratory data analysis (EDA) to understand the distribution and relationships of the variables. Next, the data was scaled the data and applied principal component analysis (PCA) to reduce the dimensionality. Then, used the elbow method to find the optimal number of clusters, and finally, performed the clustering using K-Means.

In conclusion, market segmentation is an important process that helps companies to understand and target their customers more effectively. By using the K-Means algorithm, I was able to segment customers into 4 different groups based on their characteristics and behavior, which can help companies to develop more effective marketing strategies.