Problem: To increase the MER of DRTV from the current level

on the given dataset.

Outline of Issues: I am assuming that our data set is exhaustive and our
inferences are only based on those 532 data points. This case study
identifies a scenario which is supposed to give a higher MER (greater than 2)
based on the findings from given datasets.
Theory Used: We find the correlation between the 11 variables which are
assumed to affect our MER, using graphical inference methods and K-means
clustering.
Understanding of Data: In the data set we have 532 entries with 11
variables so if we classify data with respect to each and every variable the
distinctiveness factor would be high so predicting a pattern would be
improbable so we into cut down the factors . While interpreting data it could
be seen that I have omitted few variables (e.g. time, order). The same is
done because when I considered the Time,slot and day. The frequency
wouldnt change when we exclude the Time.slot.
Method: Firstly, I glance the data set and found that MER is the ratio of sales
versus spends. As MER ranges from 0-6.46, I chunked them into 5 groups
( which are 0-0.5,0.5-1.0,1.5-2.0 and greater than 2).Now, I plot the
histograms of MER v/s day, MER v/s month, MER v/s Time.Slots and MER v/s
Content of the infomercials (CREATIVE).

MER V/s Monday

On X-axis, we have the chunks (0.5 denotes the range of MER from 0-0.5 and
1 denotes the range of MER from 0.5-1.0 and so on) of MER and on Y-axis,
frequency of these MER on Monday. Similarly the other plots are plotted for
rest of days.

MER V/s October

On X-axis, we have the chunks (0.5 denotes the range of MER from 0-0.5 and
1 denotes the range of MER from 0.5-1.0 and so on) of MER and on Y-axis,
frequency of these MER on October. Similarly the other plots are plotted for
rest of months.

MER V/s Timeslot1

On X-axis, we have the chunks (0.5 denotes the range of MER from 0-0.5 and
1 denotes the range of MER from 0.5-1.0 and so on) of MER and on Y-axis,
frequency of these MER on Time.slot1. Similarly the other plots are plotted
for other 7 Time.slots.

MER V/s CREATIVE

On X-axis, we have the chunks (0.5 denotes the range of MER from 0-0.5 and
1 denotes the range of MER from 0.5-1.0 and so on) of MER and on Y-axis,

frequency of these MER on CREATIVE.A. Similarly the other plots are plotted
for rest types of infomercials.
In MER v/s Time.slots plot, I found that for Time.slot 4, 7 and 8 frequency of
MER (greater than 2) is 0. I removed those Time.slots data points from the
datasets and again plot the above graph to find some pattern in the data.
Up till now we interpreting data on excel to look further, we used K-means
clustering to recognize the cluster with MER greater than 2. To implement Kmeans clustering we need to find numbers of clusters for that we calculated
the value of within groups sum of squares, to find value=4 to be optimum.
Clusters we found after K-means clustering is as follows:
Day
3.5124
3.4889
3.9138
2.9886

Time.Slot
4.0187
3.6933
2.1034
3.000

Area
31.1062
28.4578
7.2069
28.2977

Channel
12.5188
41.9822
76.8276
72.8864

MER VALUE
0.8141
0.9031
0.8710
0.6978

For the second cluster MER value seems to highest but I further applied the
K-means clustering within this clusters because the variance of this clusters
could be large due to which the values we got wouldnt make any sense. On
application of K-means clustering in second clusters we get.

Day
3.9
3.5227
3.556

Time.Slot
3.4
4.1477
3.2889

Area
35.1
35.9091
19.533

Channel
53.2500
36.6705
49.2334

MER VALUE
1.2515
0.8496
0.8529

2.7436
3.9394

2.7949
2.2727

14.9231
32.7273

35.4615
47.12

0.9262
0.8867

In the above clustering methods we have assumed that although the

elements are discreet .We can assign nearest integer value.
Reason to choose to particular method:
Our objective was to increase the MER for which we see how MER co-varies
with other variables. For that I plotted histograms of MER v/s day, MER v/s

month, MER v/s Time.Slots and MER v/s Content of the infomercials
(CREATIVE). These helped us to infer the factors that are inversely
proportional to MER.
Recommendation:
1. Advt. that is being broadcasted in the Time.slots of 4, 7 and 8 should
be terminated. As after removing these points the MER increased
significantly.
2.