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Ontela PicDeck B Customer Segmentation Targeting and Positioning Case Solution

Solution Id Length Case Author Case Publisher
2729 2499 Words (10 Pages) Mohanbir Sawhney, Kent Grayson, Patrick Duprss, Christine Hsu, Ryan Metzger, Fuminari Obuchi, Arum Sundaram, Kari Wilson Kellogg School of Management : KEL451
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PicDesk, a new tool from Ontela that sends photos from mobile devices to computers and over the internet, was just released. For client segmentation and targeting, Ontela conducted qualitative research. Based on this research, three segments—parent, teen, and professional—were created. This segmentation, however, is ambiguous since it does not adequately capture the behaviour and preferences of the individual. Therefore, if the corporation uses the most recent data to create marketing plans, it will underestimate the market's size and perform less targeting than the market's potential. As a result of this targeting, sales will decline, opening the door for rivals to seize the initiative and engulf the untapped market. Ontela ought to conduct a quantitative survey to acquire a precise assessment of the market size. Better estimates will be provided by this analysis, and Ontela should launch the marketing campaign using the updated information.

Following questions are answered in this case study solution

  1. Based only on the cluster analysis data, which preference-related variables are most useful for segmentation identification and evaluation? Which variables are least useful? 

  2. Keeping in mind what you know about each cluster before you look at Exhibit 3 and Exhibit 4, create descriptive profiles for the customer segment represented by each cluster. Label each segment with a title that best describes that cluster. To what extent does this new information reinforce or challenge your previous assumptions about the segments in this market? 

  3. Now, use the profiling information in Exhibit 4 to create a revised profile for each cluster. Is this profile different from what you "guessed" based only on the preference data? 

  4. Which segment(s) would you recommend as a target for PicDeck? Explain the logic behind your choice. 

  5. Develop a positioning statement for your selected target customer(s) that defines the key benefits of the picDeck service and how the service is differentiated from alternatives that customers might consider. 

  6. Develop a positioning statement for wireless carriers that Ontela can use to communicate the value of the PicDeck service for wireless carriers. 

  7. Suggest a media plan that you feel would be most effective in promoting the PicDeck service to your selected target customer(s) and to convert them to paying customers.

Case Analysis for Ontela PicDeck B Customer Segmentation Targeting and Positioning Case Solution

1. Based only on the cluster analysis data, which preference-related variables are most useful for segmentation identification and evaluation? Which variables are least useful? 

This qualitative study attempts to discover and assess PicDeck's potential clients in order to establish a clear target. The interviewees were asked to respond to inquiries using a scale that rates from 1, i.e., strongly disagree, up to 5, which is strongly agree. We assume that those who claim the current uploading process is difficult but who would also prefer to take more photos from their phones if the uploading process were easier would attract people to Ontela. Additionally, we see a latent urge among those wishing to keep their photos to transfer them somewhere safe, like a PC or a mailbox.

We learn about their attitudes toward advances, such as whether they will rush out and acquire the newest technology or if they will wait till it is reasonably priced. Since every client wants to get the best deal when buying new technology, it doesn't seem like the right variable. However, analysing the customers' willingness to purchase is still a valuable strategy. 

For those who desire convenience with technology, 24% of Young professionals: people are interested in good quality phone cameras that provide swift photo-sharing services. In the future, they would be keen to utilise simply the camera on their phone as a digital gadget. They see the use of new technology, such as photo storage on computers, photo sharing on social media, and photo mailing to friends, as a method to better their lives.

The best price for new technology, the monthly fee for using it, the superior quality of digital camera photos over phone photos, the privacy of photos, sending them by email, and having photos on a desktop are some of the preference-related variables that might be useful in segmentation and identification. The convenience of uploading phone images and the replacement of a digital camera if phone transfer was easier are the least helpful preference-related variables for segmentation identification and evaluation.

2. Keeping in mind what you know about each cluster before you look at Exhibit 3 and Exhibit 4, create descriptive profiles for the customer segment represented by each cluster. Label each segment with a title that best describes that cluster. To what extent does this new information reinforce or challenge your previous assumptions about the segments in this market? 

C1: Digital camera users: Customers in this group place a high value on photo quality. This implies that while they mostly use digital cameras for business, their hobbies can also generate some income. Customers can be divided into groups according to their lifestyle, employment, level of consumption, and personality.

C2: Desktop photo organisers. This consumer group doesn't like to spend much time learning about new technological advancements and views their PC as their primary photo storage device. They favour taking the quickest route to the things they need.

C3: Those looking for the best deal on modern technology: This group of customers has a predetermined income level, occupation, set of values, justifications for the purchase, and predetermined advantages when deciding on a good or service.

C4: People who upload mobile image files: Customers in this group tend to be practical and desire to have active lives. They don't have time to repeatedly second-guess themselves or waste time on pointless tasks like manually downloading fresh images from their phone to their computer. Such clients respect their own time as well as the time of their friends, family, coworkers, etc. They are fairly young and active.

C5: “Lazybones”.: Because they find it difficult to upload images from their phones to their computers, this group of customers prefers to utilise a digital camera. Customers are not frequent technology users. This primarily applies to Baby Boomers and Generation X, who were born between 1946 and 1964. (1965-1982). They are at an age where it is challenging to get new jobs because every employer wants candidates who are youthful, active, and ambitious. Such people have vast experience in their respective fields, and can never let the company down. 

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