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VERMINION RESEARCH AGENCY
Team Introductions
Paolo Mazza
Team and Presentation Lead
Melanie Andres
Conjoint Analysis Expert
Marzena Marciniec
Demographics and
Behavior Consultant
Ben Tucker
Lead Perceptual Mapper
Table of
Contents
▸Overview
▸Behavior and Demographics
▸Perceptual Mapping
▸Conjoint Analysis
▸Recommendations
Overview
▸Increase market share of
YouTube Red for college
students
▹1.5 million paid subscribers
▹Available in only 4 countries
▸Determine most valuable
characteristics of YouTube
Red to college students
Behavior and Demographics
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
Perceptual Mapping
Perceptual
Mapping
- Formed from focus groups
- Their responses are the
basis for surveys
- Send surveys to college-age
students
- Collect data from surveys
- Process and graph data to
analyze results
Perceptual
Mapping-
Attributes
- Convenient
- Affordability
- Commercials
- Stream Quality
- Ease of Use
- Good Content
- Original Content
- Mainstream
- Relevant
- Personalization
- Personalization
- Security
- Boring
- Family Friendly
- Advertising
- Sports
- Social Media
- Audience
- Preference
Perceptual
Mapping:
TVE=81.59%
What’s this mean?
- “Total Variance Explained”
- We have captured nearly
82% of the target market’s
opinion from our surveys
- In other words, we have 82%
data capture
Perceptual
Mapping-
Brands
Being
Analyzed
- Amazon Prime
- CBS All-Access
- Crunchyroll
- Fox Now
- HBO Go
- Hulu
- MLB.tv
- Netflix
- WWE Network
- YouTube Red
Grand
Map
Name the
Axes Map
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
MKT315 - YouTube Red Analysis
Perceptual
Mapping-
Quick
Summary
- YouTube Red is not in a
prime position but there is
opportunity for change
- Top attributes
- 1. Good Content
- 2. Affordability
- 3. Ease of Use
Conjoint Analysis
Conjoint
Analysis
Problem:
YouTube Red holds 26% of the
market share - significantly
lower than the market leader,
Amazon Prime, holding 40% of
the market share.
YouTube Red would like to
increase their market share.
Features and
Levels
Statistical
Quality
▸Orthogonal Design
▹Created Profiles
▸Survey
▹Profiles ranked
Statistical
Quality
▸Regression Analysis
▹97% Confidence Interval
Results not due to luck
▹More than enough data captured
▹Utility = Happiness
Column chart
Bar Graph
Linearity
with
affordability
and cost
● Non-Linear
○ Not rational
YouTube
Red vs
Amazon
Prime
TPU = Customer Satisfaction
YouTube
Red vs
Amazon
Prime
TPU = Customer Satisfaction
MKT315 - YouTube Red Analysis
Current
Market
Share
Market
Simulation
Market
Simulation
Recommendations
Recommendations
▸Decrease the price for
subscriptions
▸Focus on developing high-
quality content
▹Original Content is preferred
level
▸Security and Ease of Use are
also characteristics with
high potential
THANK YOU!

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MKT315 - YouTube Red Analysis

Editor's Notes

  1. When YouTube Red launched a 2 years ago the plan was for the service to grow into a competitor against the likes of Netflix and Hulu. Now, less than a year later, subscriber totals show that YouTube still has a long way to go before the public will accept paying a monthly fee for YouTube.
  2. Conjoint analysis, in other words, is figuring out how a person values a particular product in order to understand the utility, or happiness, certain attributes of the product brings to them.
  3. Focus groups were held and in these focus groups we found that these were the top 7 attributes individuals valued in streaming services. Each of these 7 attributes were then broken down into three levels.
  4. In order to arrange the levels of attributes into profiles, data was coded using orthogonal design. The profiles created were then given as as survey, where we asked individuals to rank them.
  5. Regression analysis showed a 97% confidence interval, meaning that the results we obtained were not due to luck. Also, more than enough data was captured. Regression analysis also provided us with coefficient numbers which resemble utility, or happiness. These numbers were then used to make a column chart.
  6. From the data obtained in the surveys, we were also able to find the utility, or level of happiness, individuals felt towards different levels of the 7 attributes. The higher these numbers are, the more favored they are by customers. These numbers represent happiness, so the bigger the number, the happier the customer is. The intercept, being one, means that this market is mature and would be very difficult to penetrate.
  7. When taking a closer look at affordability, we see that it is non-linear, meaning that customers are not rational when taking price into consideration
  8. Here, the attributes of YouTube Red and Amazon Prime are shown. The TPU, or Total Product Utility shows customer satisfaction. As you can see, customers are more satisfied with Amazon Prime than YouTube Red.
  9. Here, the attributes of YouTube Red and Amazon Prime are shown. The TPU, or Total Product Utility shows customer satisfaction. As you can see, customers are more satisfied with Amazon Prime than YouTube Red.
  10. Although customers said that content was the most important attribute to them under behavior and perceptual mapping, we found that affordability was the most important attribute to customers,
  11. Based on PM and behavioral, content was the #1 feature, but it was second in CA. Still great recommendation that content is a driver for customer driver/satisfaction,