Essay About Appropriate Customer Segment And Average Price

To Determine the Most Appropriate Customer Segment to Be Targeted by ontela
ONTELA PICDECK –ACase Analysis Objective: To determine the most appropriate customer segment to be targeted by Ontela. Case Facts:In April 2008, Joe Levy, Director of Career Marketing for Ontela was considering how to position the company’s first offering, “PicDeck.” PicDeck is a technology service that allows wireless subscribers to seamlessly transfer pictures from their mobile devices to their computer, email, inbox and other networking devices and services. It has two ranges of customers- 1. Direct customers –The wireless carriers, who will be branding, pricing and marketing the service.2. Second being the end users- who will be paying monthly fees to the carriers.Customer segmentation:Sarah42 female, married/housewifeMinimum technological knowledge.Value for customer: minimum and easy learning, no extra learning required.Benefit for customer: less time consuming, quicker. Steve27 years, male, Unmarried, working professional.Real estate agent.Technology usage is minimumUses emailing mostly for work.Value for customer: Pictures can be emailed directly to the customers.Benefits for customer: Awareness of market        Gets closer to the clients                             Simple        ConvenientRegina:16 years, femaleStudent/ teenager.High technological knowledge and more interested in new technologies.Value for customer: pictures can be directly shared to the social media.Benefits: hep value increases, can be easily connected with peers. Inference: Based on the above qualitative analysis, Ontela should target the “young professional segment” represented by Steve, the real estate agent. He has no time to use computers and prefers everything on the phone. He is continuously doing road shows and even on weekends, at times he is working. He will be using it as a business tool. Since he is always on the go and because of the timing issue he needs wireless connectivity more. He will be able to click pictures of apartments and buildings for sharing directly to his customers, which will make his work quicker and more convenient.Based on these findings, targeting the young professional segment can be the most beneficial for the company.ONTELA PICDECK -BEXHIBIT 2: CLUSTER ANALYSIS OF CUSTOMER PREFERENCE DATACLUSTERCHARACTERISTICS1.Ready to adapt to new technology if the quality is good.They are ready for it, if it is easy and simple to use. They value saving pictures and sharing them.They are willing to pay the average price for a value product.They already have data subscription in their phones.They look for products which are at a reasonable price along with quality.VALUE BASED CUSTOMERS2.Less interest in camera phone. More inclined towards digital camera.They have a desire to have access to pictures from PC and sharing them via email, but not on social networking.They are not inclined towards change in technology and seek easy to use products. They are willing to pay at a price level slightly above the overall average price for PicDeck.PIC SHARING GROUP3.They are quick to adopt new technologies and are seeking out the best price when making the purchase.They are ready to adapt to new technology, even if the set up is difficult. People in this segment allocate greater value to photo sharing via email or social media, and backing up or accessing the photo on PC. They are willing to pay a high price for the service.TECHNOLOGY ADOPTERS4.They do not want to upgrade to new technology.Interest in photo sharing is average.They are willing to click photos and upgrade to camera phones if the quality seems superior.Will be paying a relatively low price.QUALITY CONCERNED5.Least inclined towards new technology and are the slowest to upgrade to new technology.They are not into photo sharing but want pictures backed up.They are willing to upgrade to camera phone if the quality is good and easy to use.Highest paying cluster for PicDeck.EASE OF USE6.Average inclination towards new technology.Average inclination towards saving and sharing pictures.Not interested in upgrading to phone camera even if they find quality better.They will be paying a very low price.LOW INTEREST GROUPEXHIBIT-4: DEMOGRAPHIC AND MEDIA PROFILE OF CLUSTERS.CLUSTERCHARACTERISTIC1This group is more technology oriented. High internet and data usage.Professional, self-sufficient group.2Less data/internet usage.Not technology oriented.Internet use for profession is less- they are into family data plan.3Less self paying capacity (dependant group- mostly students).Not inclined towards technology (more interested in celebrity magazines).4Average usage of internet and data plan.Can afford, but not willing to spend on technology.More interested in messaging and less in photos.More interested in sports magazine. 5Can afford but not interested in data and internet usage.Inclination towards technology is average6More paying capacity but very less internet and lowest data plan usage among all clusters.Technology inclination is average.TARGETING STRATEGY: Based on above segmentation, it is inferred that the segment represented by cluster one shows high inclination towards adopting new technology provided the quality is good and the product is easy to use. Almost 72% of this cluster show highest internet usage and data plan. The group is also more inclined towards tech magazines and since 91% of them pay their own bills, spending on new technology won’t be an issue.