Hu 1 Yinping Hu Marketing Management 2101 Professor Stefan Lippert 18 April 2014 Ontela PicDeck Case Study Project Goal To determine the most appropriate target customer segment in order to maximize growth opportunities for both Ontela and its direct customers—wireless carriers, who wants to decrease churn and increase average revenue per user. Qualitative Study Persona Analysis Persona Age Gender Household Occupation Tech. Aptitude Sarah 42 Female Three children Parent LOW (Email, Google, and occasionally IM that were set up for her) Mindset Product Usage Customer Needs No interest in new technologies Move pictures to free up camera memory • Simplicity • Speed Steve 27 Male Single Real Estate Agent MEDIUM (Uses email at work but prefers the traditional way in doing business) Passive in updating technologies Send pictures directly to clients • Simplicity • Convenience Regina 16 Female Single Student HIGH (Actively uses social media and email to share information) Used to new technologies Share pictures with friends • Greater Control • Convenience & Speed

Hu 2 Target Customer Segment Based on the comparison of three personas, as detailed in the table above, Ontela should target the segment represented by Steve, the young professional, based on considerations for both the company itself and the wireless carriers, who are its direct customers. Since the goal is to provide the biggest opportunities for both parties, who have different goals for their businesses, Steve proves to be the most appropriate target in that as he becomes a customer for Ontela by using the service to simplify communication with his clients, he will also need to upgrade to a wireless handset and subscribe to data services that has higher margins, essentially presenting a win-­‐win situation for both Ontela and carriers. Secondly, the simple and convenient service offered by PicDeck accommodates the target’s level of acquaintance with new technologies and satisfies their needs; combine that with the target segment’s ability to afford such services, it is logical to target young professionals. Although this segment will likely be less frequent users of the service compared to teenagers because they have very little time to themselves and do not take and share pictures as often as teens do, their desire to stay competitive in the professional field through technology is a great motivator for them to become as technologically acquainted as the younger segment. Since wireless carriers are who Ontela’s direct customers are ultimately, targeting a segment that is less saturated with wireless technology but possess both the ability to afford and a desire to upgrade will help both expand the carriers’ businesses and Ontela’s opportunities. Product Positioning Key Values Since the target group is not very well acquainted with many of the recent technologies and desire simplicity and convenience as core features, such must be clearly conveyed to the

Hu 3 target segment by means of stressing the effortlessness of PicDeck in that it automatically delivers pictures to designated locations and that this service is convenient in that it can be accessed anytime, anywhere. Additionally, extra motivational factors that target young professionals should also be conveyed in order to add perceived value to the product. So factors such as reliability of the delivery and the ability to monitor photos sent right on the handset would appeal to someone who wishes to use PicDeck for professional purposes rather than personal tasks. Positioning Statement No matter where you are or how busy you are, trust Ontela PicDeck for a simple and accessible imaging solution that allows you to seamlessly and reliably transfer pictures on your camera phone to any networked location you designate—computer desktop, email inbox, ANYWHERE!—without pressing any extra buttons. Risks Selecting target customer segments from only qualitative personas is risky in several ways but first and foremost in that one assumes the persona to be representative of the entire segment and ignores those misrepresented by their respective personas, e.g. a young professional who is a frequent user of the newest technologies and actively seeks better technology solutions to improve his life or a teenager who is not as active as his/her peers on social media or in sharing photos. This leads the company to overestimate demand in their target segment while missing opportunities by neglecting potential customers in other segments. Secondly, the lack of quantitative data also undermines the estimate of the potential market and may direct the company to invest in a small portion of the population, from whom the returns might be low, e.g. the smaller group of teenagers in an aging society.

Hu 4 Quantitative Study Cluster Analysis In order to identify and evaluate the segments based on preference data, variables such as technology aptitude (Q1), potential usage of the service (Q2, Q4), main reason for using the service (Q6-­‐Q9), deciding factor in making the purchase decision (Q10), and the acceptable price level (Q13) are useful whereas variables that reveal wireless handset usage in relation to technology specifications (Q3, Q5) are less useful.

Descriptive Profiles People in this segment are relatively apt at uploading photos from their phones and (1) Value Seekers are the most willing to switch to use phone cameras if the quality is high and process to transfer pictures is easy because of their activity in sharing photos and accessing photos from different devices. They are relatively quick to adopt new technologies and take into consideration the simplicity of setup process when deciding to buy a new tech product. This segment is willing to pay at a price level close to the overall average for PicDeck. People in this segment are averagely apt at transferring pictures out of phones but (2) Neo-­‐Traditional show a commitment to digital cameras even if phone camera improve in quality or is Photo-­‐sharer more convenient. They do demonstrate a desire to have access to pictures from PC and sharing them via email. They show passiveness in upgrading to the newest technology and seek out easy to use products while also looking for the best prices around. They are willing to pay at a price level slightly above the overall average for PicDeck service. (3) Trend Follower People in this segment experiences some troubles in uploading phone pictures but do not consider the ease of the setup process when deciding on new tech products. They are quick to adopt new technologies and seek out the best price when making the purchase. People in this segment allocate greater value to photo sharing via email or social media and backing up or accessing photo on PC. They are also willing to pay a high price level for PicDeck service.

Hu 5 People in this segment have the easiest time uploading pictures from phones but (4) Quality-­‐driven refrain from rushing to upgrade to newer technologies. Take into consideration the Techie Seekers ease of setup and prices in the market when deciding on new tech products, people in this cluster do not show much passion for photo sharing although they seem willing to switch to or increase their use of phone camera on basis of higher quality. This group is only willing to pay a relatively low price for PicDeck. People in this segment have the most challenges in using new technology products (5) Convenience and are the slowest to upgrade to newest technologies. They do not show much zeal for photo sharing but would like to have their pictures backed up. They also show the willingness to switch to phone camera if it means simpler process and better quality results. The least price sensitive out of all 6 clusters, people in this segment accept PicDeck at the highest price level. People in this segment are relatively apt at uploading pictures from phones but are (6) Traditionalist passive in keeping up with new developments and when they do, they put in efforts to search for the best price. They do not intend to use phone camera as an alternative to digital cameras and show minimal interest in transferring pictures between phone and PC or sharing them over Internet. They are only willing to pay at a very low price level for PicDeck services.

Data from this survey goes to demonstrate the variances in values and objectives that transcend demographic segments represented by personas and divides the customer base into finer segments. The information presented also challenges the assumption that those who are acquainted with technology developments are also quick to adopt new ones (e.g. cluster 4 is familiar with imaging technology but takes time in adopting new tech) and points out the possibility that those who may not be too familiar with recent technology can be quick to take up the new products without taking into consideration how difficult the setup will be (e.g. cluster 3 does not think it is easy to upload pictures but is quick to adopt new tech).

Hu 6 Revised Profiles People in this segment demonstrate the highest internet use and strongest Value Seeking Techie Photo-­‐sharer interest in tech magazines/web sites. Majority of male, aged between 25 and 40, the segment contains a high percentage of individuals who has data plans on their cell phones. Nearly half of the segment also has message pack subscription on their phones. People in this segment are relatively apt at using phone photo technology and are the most willing to switch to phone cameras if quality and mobility of photos are ensured since they are active in photo sharing and value the ability to access photos from various platforms. They are relatively quick to adopt new technologies and are willing to pay at a price level close to the overall average for PicDeck. The majority of people in this segment are between ages 25-­‐40 and married with children. Over half of the segment has family plan for their cell phone and only (2) Neo-­‐Traditional 15% have subscriptions to data plans. Having one of the lowest Internet usages, this group does not show much interest in following technology developments or upgrading to the latest gadgets. People in this segment are averagely apt at transferring pictures out from phones but they show a commitment to using digital cameras. They seek out easy to use products while also looking for the best prices around. They are willing to pay at a price level slightly above the overall average for PicDeck service. Consist of mostly people younger than 25, over half of this segment has message (3) Trend Follower pack subscriptions and is part of family plan for cell phone; less than half pay their own cell phone bill. Mostly single without kids, people in this segment demonstrate strong internet usage and photo sharing desires. People in this segment experiences some troubles in uploading phone pictures but do not consider the ease of the setup process when deciding on new tech products. They are quick to adopt new technologies and seek out the best prices. They are willing to pay at a high price level for PicDeck service, however.

(1) Value Seekers

Hu 7 The majority of this segment is male and between ages 25 and 40 but only about (4) Quality-­‐driven Techie one-­‐third is married. Many people in this segment are subscribers to message Moderate Blogger pack and almost half of the cluster has data plans on their cell phones. Showing heavy Internet use, this group also expresses strongest interest in sports-­‐related channels. People in this segment have the easiest time uploading phone photos and do not rush to upgrade to new technologies. Take into consideration the ease of setup and the prices in the market when purchasing new tech products, people in this cluster do not show much zeal in photo sharing. They are willing to pay at a relatively low price for PicDeck services. Over half of the segment is between ages 25 and 40 and about two-­‐thirds of them (5) Convenience Seekers married. Only about one-­‐third has data plans on his/her cell phones and about 40% are subscribers of message pack and enrolled as part of family plan. People in this segment have the most challenges in uploading pictures from their phones and are the slowest to upgrade to newest technologies. They do not show much zeal for photo sharing but would like to have their pictures backed up. They also show the willingness to upgrade if it means simpler and better quality results. The least price sensitive out of all, people in this segment also accept PicDeck at the highest price level. This segment contains the highest percentage of those over 40 and the lowest percentage of those who are subscribers of either data plans, message packs, or (6) Traditionalist family plans. Having minimal interest in technology, this segment has little desire to keep up with new developments. People in this segment are relatively apt at uploading pictures from phones and search for best prices when buying new tech. Showing minimal interest in transferring pictures between devices or sharing photos, this group remains committed to use digital cameras even if phone camera is of higher quality and more convenient. They are only willing to pay at a very low price level for PicDeck services.

For the most part, the initial profiles created based solely on preference data are confirmed and supplemented by additional data on demographics and media usage. For cluster one and cluster four segments, however, the initial profiles did not accurately reflect the nature

Hu 8 of the groups. For cluster one, the segment’s interest in technology developments was not visible in the preference data and so they were assumed to seek easy to use products that satisfy their needs whereas segment represented by cluster four was assumed to be tech-­‐ savvy because they agreed mostly strongly with the statement that uploading photos from phone is easy but shown to have minimal interest in technology developments.

Target Segment Based on the cluster analysis, segment represented by cluster one (“Value Seeking Techie”) should be targeted for PicDeck because they demonstrate demands that can be fulfilled by PicDeck service, such as transferring pictures from phone to other devices or to share them via email and social media, and adopt new technology at a relatively high speed in addition to the fact that the simplicity of PicDeck easily satisfies cluster one’s desire for an easy-­‐to-­‐ use tech product. Their interest and following of technology magazines/websites also make them easy to reach to promote PicDeck. Furthermore, 91% of this segment pays cell phone bill independently, indicative—to some extent—of this segment’s ability to afford this service. Seeing that 72% of the group already has data plan on cell phones, PicDeck will be used as a potential tool to decrease customer churn for carriers rather than to increase the number of customers in this segment. This also coincides, in a large part, with the target customer segment determined based on personas in the first half of this case. Positioning Statements For Target Customers For a reasonable price, Ontela PicDeck promises an easy and reliable transfer of pictures from mobile devices to any networked locations, such as computer desktop, email, or any social networking sites, without the need to press any extra buttons. Capture moments of

Hu 9 your life on your mobile phone and share them, organize them, keep them safe, without having to deal with the troublesome process of manually moving pictures to desired network locations by means of USB connection or as attachments in emails or in messages. For Wireless Carriers For wireless carriers who are striving to deliver unique and high-­‐value services to your subscribers, Ontela PicDeck is an innovative and user-­‐friendly mobile service that adds value to your proposition by providing a simple and seamless image transfer experience that your customers desire. Allow your subscribers to move their pictures out of their handsets and to any designated locations without any hassles as PicDeck automatically delivers users’ pictures to wherever they want, whenever they want.