ONTELA PICDECK

MARKETING ASSIGNMENT

Akshat Gupta (B17005)

Avishek Jena (B17013)

Mahesh Venkatasubramanian (B17027)

Mary Subhash Vetticaden (B17029)

Swathi Kalyani (B17056)

 ONTELA PICDECK

SEGMENTATION AND TARGETING: CASE ONTELA PICDECK B

Q1. Which preference/attitudinal variables in Exhibit 1 are most useful for segmentation? Which
are least useful?

A: Least Useful Variables:

 Q3 and Q5 – Services offered by Picdeck are related to the transferring of the pictures and
not pertaining to the quality of pictures. These questions only talk about the quality factor
which is not relevant to Picdeck.
 Q10 – Easy setup is not a useful parameter based on the cluster analysis, as we can see that
this question does not give us a significant differentiability between clusters.
 Q12 – Searching for a lower price is a general customer mentality. All the 6 clusters have a
similar answer for this and this has less differentiability.

Most useful variables:

 Q4 – This question talks about the seamless transfer attribute of the product. Wireless
carriers would also be more likely to adopt Picdeck if it leads to more usage of mobile
phones.
 Q11 – Early adopters would be preferred so that the company is able to create a customer
base early on.
 Q13 – This is the only question that talks about the willingness to pay which will eventually
lead to revenues.
 Q6, Q7, Q8, Q9 – These questions are directly related to the significant features of the
offered product. They talk about the value each segment prefers and hence can be used in
targeting different segments by positioning the product based on the value each segment
prefers the most.

Q2. To what extent does demographic and media usage data line up with our earlier analysis?

A: Ontela’s earlier analysis was based on insights on qualitative research on end-user behaviour in
mobile devices.

Based on the demographic and media usage, we can see the following alignment with our earlier
analysis-

Cluster 2 – This cluster closely resonates with Sarah, the parent.

 Cluster’s Median Age – 41; Sarah’s Age – 42

 % with Children is 46%. Sarah also has 3 children.
 Maximum number of married people (71%) in this category. Sarah is also
married.
 Data Plan(15%) and Internet usage(1.66) is low for this cluster which
resembles Sarah
Cluster 3 – This cluster closely resonates with Regina, the teen.

 This cluster has the highest number of people with age<25(55%) and with
the least median age, of 22. Regina’s age is 16.
 Regina being a student might not be able to afford her own bills. Only 45% in
this cluster pay their own bill.
 Regina is a heavy internet user which is similar to this cluster (3.12).

Cluster 5 and 6 have most attributes which resemble Steve, the young professional.

 Both these clusters score low on tech enthusiasm like Steve who is always
the last person to update to the latest technology. Cluster 5 has 2.68 while
cluster 6 has the score of 2.18.
 Both clusters score low on internet usage as well like Steve who is not a
hard-core user of internet. Cluster 5 has a score of 2.01 while cluster 6 has
1.42
 Steve, being an employed person will pay his own bill. Both these clusters
have very high percentage on this parameter.
 The median age of 39(Cluster 5) and 55(Cluster 6) seem to be very off from
Steve’s age. This can be attributed to the fact that he is a very old fashioned
person who is almost always the last person to upgrade to the latest
technology.

Thus Steve can fall in either cluster 5 or cluster 6.

Q3. Based on the analysis so far, what are the benefits and drawbacks of doing persona
development before quantitative cluster analysis versus vice versa?

A:

Scenario 1: Persona development before Cluster analysis

 Benefits: We will be able to ask pertinent and more useful questions in the questionnaire
used for cluster analysis, after getting to know about the persona of each segment. It will
also give us an idea as to which question will be the most useful for each segment.

For example, the persona of Sarah, the parent, wants things like picture to be easy and to
just appear on her computer. So for this persona, Q1, Q2 and Q8 of Exhibit 1 addresses this
point and hence are more useful.

Whereas for the persona of Steve, having a camera phone must translate to not always
having to carry a digital camera and therefore Q4, Q5 and Q11 of Exhibit 1 are more useful.

This scenario increases the identification and differentiability of the segments.

 Drawbacks: We will tend to only look for the personas in the clusters and might lose out on
other segments that can be targeted.
 Here, Cluster 1 in Exhibit 4 does not fit any of the three personas, but it is the most
targetable segment with high action-ability. By this scenario we would have not looked into
that cluster and would have missed it.

Scenario 2: Cluster analysis before Persona development

 Benefits: We can identify wider range of personas and better personas in terms of
identification and differentiability. Cluster 1 of Exhibit 4 does not have a persona in the
previous scenario. That will not be the case in this scenario as they would have the cluster
analysis along with the qualitative analysis to predict personas, and that will make sure that
Cluster 1 has a persona.
 Drawbacks: We might not ask the most useful questions in the cluster analysis because we
do not know the different quirks of each persona and what is the driving motive for each
one of them.

We might also tend to not visualize personas that do not come up in the form of clusters,
maybe due to sampling issues etc. We then might limit the range of personas to only the
clusters and might not take into account the qualitative research aspects.

Q4. Which clusters would you choose based only on the demographic data?

A:
The questions/parameters that are important and useful/pertinent to Picdeck are

 Z7- Data Plan

 Z10- Tech mags and/or websites
 Z16- Internet Use
 Z17- Pay own bill

Based on these questions, Cluster 1 is the most preferred one to target followed by Cluster 4.

The logic behind choosing these questions is as follows,

Availability of data plan will make it easier for us to target the product to the customer because
they can easily relate to the difficulties that the product is solving and that they will be more inclined
to use the product than the customers who do not have a data plan.

People reading tech magazines will be the trendsetters for the Picdeck and hence we need to target
them effectively. They can easily resonate with the idea of the product, and will mostly be quick in
adopting new technologies. Hence these people are more likely to use Picdeck.

Internet usage tells us the amount of time a person spends in social media and this is directly related
to the person’s activity in terms of sharing pictures on social media. It also tells us how modern and
advanced the customer is and these people will be more willing to buy the product because the
product addresses their needs effectively. This might not be the case for someone who’s not using
the internet much.

Paying their own bill makes them the target customers. Personas like Regina are Influencers and do
not generally pay their own bills due to them being too young, with her parents being the target
customer for the company. Paying their own bill makes it easy for marketers to target that particular
segment rather than targeting influencers also.

Paying their own bill broadly states the financial independency and viability of the cluster. A low
percentage will make the cluster less attractive because attracting those customers will not directly
translate into sales and hence margins will be less. This is not directly related to willingness to pay
but is indirectly related to it as this talks about their ability to pay.