The goal of this case analysis was to determine how to position a product to the appropriate customer segment, to offer value to their direct and indirect customers using quantitative data.
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdf
Ontela PicDeck (B): Case Analysis
1. ONTELA PICDECK B
Customer Segmentation,
Targeting and Positioning Using
Quantitative Data
Julissa Duran | Deanna Mansueto | Chris Ortiz | Marco Mosquera
2. MARKETING PROBLEM
Ontela needs to determine how to position PicDeck
to the appropriate customer segment to offer value
to their direct and indirect customers.
2 Julissa
3. WHY IS ONTELA DOING THIS RESEARCH?
• To perform the STP Marketing Process
• Goals
• Properly identify the best segment to target that will maximize growth opportunities
• Present Ontela’s PicDeck technology as an attractive investment
3 Julissa
SEGMENTATION
• Identifies a firms
potential customer
TARGETING
• Selects which
customers a firm
should pursue
POSITIONING
• Formulates its value
proposition for its
target customers
4. ONTELA’S CUSTOMERS & WHAT THEY VALUE
WIRELESS CARRIERS
• Increase in ARPU
• Decrease in churn rate
• Increase in sales of
high-margin data
services
END USERS
• Convenient mobile
imaging experience
• Easy photo sharing
• Secure photo saving
• Quick photo transfer
4
DIRECTCUSTOMERS
INDIRECTCUSTOMERS
Julissa
5. WIRELESS CARRIERS & THEIR CUSTOMERS
A valuable customer in this context is one that:
1. Uses data service frequently
2. Is loyal
3. Pays monthly bill on time
4. Uses the internet often
5 Julissa
7. QUANTITATIVE CUSTOMER SEGMENTATION STUDY
• Cluster Analysis Target: End Users
• 2,000 Respondents
• Ages 15+
• Method: Random Sampling Approach
7 Julissa
8. EXHIBIT 2: SURVEY QUESTIONS Q1 It is easy to upload phone photos
Q2 Would take more phone photos if transfer were easier
Q3 Would take more phone photos if quality were better
Q4 Would replace digital camera if phone transfer were
easier
Q5 Would replace digital camera if phone photo quality were
better
Q6 I value saving phone photos so they are not lost
Q7 I value sending photos by email
Q8 I value having photos on my desktop
Q9 I value sharing photos on Facebook, etc.
Q10 When deciding on new tech, easy setups is a factor
Q11 When new technologies emerge, I’m first to adopt
Q12 When buying new tech, I search for best price
Q13 Monthly Fee
• Customer Preference/Attitudinal Data
• Based on customer answers to the questions
reported in Exhibit 1
• Six clusters identified
8 Julissa
9. EXHIBIT 4: SURVEY QUESTIONS
Z1 Median Age
Z2 Age > 55
Z3 Age < 25
Z4 Sex (% male)
Z5 Married %
Z6 Children %
Z7 DataPlan %
Z8 MessagePack %
Z9 Family Plan %
Z10 Interest in Tech Magazines/Websites
Z11 Interest in Celebrity Magazines/Websites
Z12 Interest in Fashion Magazines/Websites
Z13 Interest in Women’s Magazines/Websites
Z14 Interest in Homemaking Magazines/Websites
Z15 Interest in Sports Magazines/Websites
Z16 Internet Usage in Hours
Z17 Pay Own Bill %
• Demographic and Media
Preferences/Product Space Data
• Based on customer answers to the questions
reported in Exhibit 3
• Same six clusters used
9 Julissa
22. CONSUMER CHARACTERISTICS
Characteristics Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6
Median Age 42 41 22 30 39 55
Sex Male Female Female Male Female Female
Marital Status Single Married Single Single Married Married
Children No Yes No No Yes Yes
Data Plan Yes No No Yes No No
Family Plan No Yes Yes No Yes No
Tech Mags Yes No No Yes No No
Saving Photos Yes Yes Yes No No No
Share Photos Yes Yes Yes No No No
Easy Transfer Yes No Yes No Yes No
Internet Usage High Low High High Low Low
Price Sensitive Yes No Yes Yes No No
Pay Own Bill Yes Yes No Yes Yes Yes
1st Adopt Tech Yes No Yes No No No
*Cut offs based on weighted average of each characteristic Deanna22
23. ATTITUDINAL VARIABLES
Exhibit 1
Questions
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6
Q1 Y Y N Y N N
Q2 Y N Y N Y N
Q4 Y N N N Y N
Q6 Y Y Y N N N
Q7 Y Y Y N N N
Q8 Y Y Y N N N
Q9 Y Y Y N N N
Q11 Y N Y N N N
Q12 Y N Y Y N N
Q13 – Monthly
Fee
About Average > Average > Average < Average > Average < Average
Y = Yes, N = No
*Cutoffs based on weighted average of each preference Deanna23
24. DEMOGRAPHICS & MEDIA USE
Exhibit 3 Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6
Median Age 42 41 22 30 39 55
Sex Male Female Female Male Female Female
Marital Status Single Married Single Single Married Married
Children No Yes No No Yes Yes
Data Plan Yes No No Yes No No
Family Plan No Yes Yes No Yes No
Tech Mags Yes No No Yes No No
Celebrity Mags No Yes Yes No No Yes
Fashion Mags No Yes Yes Yes No No
Women’s Mags No Yes Yes No Yes Yes
Homemaking No Yes No No Yes Yes
Sports Mags Yes No No Yes Yes No
Internet Use High Low High High Low Low
Pay Own Bill Yes Yes No Yes Yes Yes
*Cut offs based on weighted averages of demographic and media use information Deanna24
25. DIFFERENT INFERENCES WHEN REVIEWING
RESULTS INDEPENDENTLY
Initially, Cluster 5 was the most attractive when looking at Attitudinal Data
• Low Q1 score – indicated a need for a technology like PicDeck
• High Q13 number – indicated a willingness to spend the most money for such a service
However, once Product Space Data was reviewed, Cluster 5 was no longer attractive
• Low Z7 score – indicated low data usage, which is a key element
• Low Z16 score – indicated low internet usage
25 Deanna
26. ONTELA’S CHOICE BASED ON CASE A FACTS
Photos Are Safe
Automatic Transfers
Simple To Share
Easy To Use
Data Plan Needed
Q6 – 4.60
Q7 – 4.53
Q9 – 3.95, Q6 – 4.60
Q1 – 3.07, Q2 – 4.33,
Q4 – 4.11
Z7 – (72%)
PicDeck Features Cluster 1 Attitudes & Demo
26 Marco
27. USING CASE A ONLY – WHICH SEGMENT IS BEST?
Tech Savvy Value Seekers - U.S. mobile phone service industry suggests money in data usage
• Highest for having data plans (72% - Z7)
PicDeck can only be used with data
• Highest for internet use (3.85 – Z16)
• Desire all features that PicDeck offers the most
27 Marco
28. POSITIONING STATEMENT – C1:
TECH SAVVY VALUE SEEKERS
28
Ontela Picdeck is the service for tech
savvy value seekers. At a reasonable
price, PicDeck provides an easy and
convenient way to transfer pictures from
your cellphone to your PC - automatically.
PicDeck sends your pictures to your
desktop, email or any social media site of
your choice; reliably and seamlessly
bridging the gap between phone and PC.
Marco
29. 29
Capture cherished moments of your
family and friends on your mobile
phone without worrying about manually
moving pictures to your computer.
Ontela PicDeck promises to provide an
automatic transfer of your photos to
your computer, with no extra buttons or
tangled wires. Share your photos and
keep them safe with PicDeck.
POSITIONING STATEMENT – C2:
THE BUSY MOM
Marco
30. 30
For connected trendsetters sharing photos
across multiple social media profiles,
Ontela’s PicDeck is a service that does this
instantly. Finally, skip the tedious step of
uploading your pics to your PC and be the
first of your friends to share images of your
day on Myspace and Facebook.
PicDeck; share your memories as they
happen!
POSITIONING STATEMENT – C3:
TRENDY MILLENNIAL
Marco
31. 31
For the fan with far ranging interest in
quality, technology and sports; Ontela
Picdeck is an easy-to-use photo sharing
service that automatically sends your
photos to any networked location of your
choice, like your PC, email or any social
media sites, without degrading the quality
of your photo. Snap shots at your favorite
sport games and know that they’re safe
and organized.
POSITIONING STATEMENT – C4:
THE MULTIFACETED FAN
Marco
32. 32
Ontela PicDeck is an easy-to-use service
for convenience seekers that hate using
wires and cables to transfer photos from
their phone to PC, email or social
networking site. The process of saving
photos becomes completely effortless with
Ontela’s PicDeck service, which provides
an automatic transfer of photos, with no
extra buttons or tangled wires.
POSITIONING STATEMENT – C5:
THE CONVENIENCE SEEKER
Marco
33. 33
Ontela Picdeck is a photo
transferring service that
automatically sends your pictures as
you take them on your phone; to
your computer or email. Picdeck
ensures the safety of your photos
and allows you to relive your
moments whenever and wherever
you’d like.
POSITIONING STATEMENT – C6:
THE MODERN TRADITIONALIST
Marco
34. Segmentation
• Cluster 1:
• Tech Savvy Value
Seekers
• Cluster 3:
• Trendy Millennials
Targeting
• Cluster 1:
• Large group (24%)
• Value seeking
• High profit potential
• Cluster 3:
• Small group (19%)
• Emerging
• High long-term/future
potential
Positioning
• Cluster 1:
• Low Cost
• Easy Transfer of photos
• Share and save photos
to any pre-designated
destination
• Cluster 3:
• Low Cost
• Transfers photos right to
your email and favorite
websites
• Share photos with your
friends instantly and
effortlessly
SEGMENTATION, TARGETING AND POSITIONING
Deanna34
35. 35
Ontela PicDeck is the service for tech savvy
value seekers. At a reasonable price,
PicDeck provides an easy and convenient
way to transfer pictures from your cellphone
to your PC - automatically.
PicDeck sends your pictures to your desktop,
email or any social media site of your
choice; reliably and seamlessly bridging the
gap between phone and PC.
For connected trendsetters sharing photos
across multiple social media profiles,
Ontela’s PicDeck is a service that does this
instantly. Finally, skip the tedious step of
uploading your pics to your PC and be the
first of your friends to share images of your
day on Myspace and Facebook.
PicDeck; share your memories as they
happen!
POSITIONING
STATEMENTS FOR
TARGET SEGMENTS
Cluster 1:
Tech Savvy
Value Seekers
Cluster 3:
Trendy
Millennials
Marco
36. REVENUE ANALYSIS
Variables Cluster 1: Tech Savvy
Value Seekers
Cluster 3: Trendy
Millennials
Average
Drive Immediate Profits Long-Term Skills -
Competition Intense Competition Strong Competitive
Advantage in the Future
-
Cluster Size Large (24%) Small (19%) -
Growth Potential High/Immediate Low/Emerging -
Growth Rate Rapid Slow -
Potential $ Value per % of
Respondents in Cluster
$1.38 $1.51 -
% of Cluster on Data Plan 72% 22% 36%
Internet Usage per Cluster
(Scale of 1-5)
3.85 3.12 2.78
Sharing Photos to Websites
(Scale of 1-5)
3.95 3.83 3.36
1st to Adopt New Emerging
Technology (Scale of 1-5)
3.13 3.52 2.69
Deanna36
37. CONCLUSION
37
• Highest
Revenue
• High Growth
Potential
• High Influence
Effect
• Long-term
Profit and
Success
• Emerging
Group
Cluster 1:
Tech Savvy
Value Seekers
Cluster 3:
Trendy
Millennials
Deanna
