Essay About Substantial Differences Clusters And Needs Of Potential Customers

Conglomerate Inc.’s New Pda
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Conglomerate Inc.’s New PDASegmentation                                                 BackroundConglomerate Inc. and a PC manufacturer teamd up to form a joint venture to develop and sell a hybrid product integrating a PDA with a cellular phone. Its first product was tentatively called “ConneCtor” . The company Netlink hired HVC to collect information about the needs of potential customers, identify segments within the market for PDAs, target relevant segments and position “ConneCtor” in the segment.ConneCtors’  main functionsDirectly transmits and receives both data and voiceAccess to standard tools of PIMPerforms as a cell phone Send and receive faxes and e-mail Access the InternetRecord voice messagesInfrared port and USB for direct data transferWireless links to other ConneCtors for voice and data transfer Segmentation by 9 clustersSegmentation by 4 clustersSegmentation- Hierarchical * kmean did not show any substantial differences Clusters 1&4 show most potential for productCluster 4- Innovators using cell phones and with high willingness to pay  Cluster 1 – Need to manage their personal information and collaborate via email   Fit well with ConneCtor’s featuresThe only segment that uses PIM in relatively high frequencyPhone usersImportance of web, e-mail and multimedia capabilitiesPay average price, settle for moderate ergonomics & monitor, and have moderate need for info sharingNo “unfit” indicationsClusters 2&3 are not the best match even though they show potential in certain areas Cluster 2 – Basic Frequent Users   Discrimination AnalysisAfter Discrimination clusters 1&4 still show most potential Cluster 4- Educated and professionals, already use PDA’s as well as cell phones    Cluster 1 – Sales people, often away   Mainly Sales professionalsHeavy cell phone use45% own a PDAOften work away from the officePrice sensitiveCluster 4 is the one to target Based on the ConneCtor’s analysis for segmentationConcerns Procedure Sampling – was it random or from specific target audience ? Social desirability bias (people want to appear smart & advanced)Is 160 participants enough ? (cluster 3 has only 16 members)AnalysisCluster 3: not innovators, no cell & massages no features, low income, low experience with PDA usage. but willing to pay high price?!Focus on cluster 4 and amend features accordinglyTarget this segment and offer the ConneCtor as an additional product to their already existing PDA and Cell phone productsWhile emphasising the value of having both in one product instead of carrying bothAlso emphasizing the innovation in such a productLet this cluster or portion of it to serve as the early adopters and perform further research on the missing media features that will probably care about as per the analysis and gradually add those into the product next versionsImprove ergonomics of product after further feedback from the usersBackupCluster 1 needs analysisCluster 1 – PIM, Email & Web users    Cluster 2 needs analysisCluster 2 – Basic Frequent Users   Cluster 3 needs analysisCluster 3 – Information time sensitive users, old schoolCluster 4 needs analysisCluster 4 – Innovators