Ontela designed a revolutionary product which allows wireless subscribers to seamlessly transfer data from the consumer’s wireless phone and send it to an email inbox, PC, or website. This allows consumers to use their wireless device more frequently, which generates more revenue for the industry in mobile phone services. Joe Levy, Ontela’s director of carrier marketing, assisted with PicDeck’s segmentation in determining the appropriate target audience. Below you will find an analysis on PicDeck’s choices regarding customer segmentation and evaluation on their data; supporting that research proves their target audience are primarily middle-aged married women and men.
Issues Short-term •Best way to determine the right target audience •Making PicDeck more conceptually-friendly so consumers can better understand it user-friendly functions Long-term •How could Ontela balance the needs of the subscribers with the carrier’s goals of decreasing churn and increasing ARPU? •What is the next big idea to keep company ahead of the game (please help rephrase) Problem Statement: For future growth, the industry will need to continue being creative and innovative in seeking out added services such as data and wireless Internet use to increase yearly revenue; how can Ontela and their counterparts target the right consumers which will utilize both without compromising ARPU?
Case Response: Section A
1. Based on the three customer personas, which customer segment should Ontela target? a.Ontela’s objective was to increase the use of wireless carrier service and increase average revenue per user (ARPU). In order to do this the organization conducted a segmentation research to select the right Personas, which will determine how to allocate their resources and time for consumers who use their cell phones and cameras the most. Based on this criteria Sarah, the parent should be considered as the primary target. It is important to consider that women control or influence the purchase of 80% of all consumer goods, including such items as stock for investments, personal computers, and others (2011, Boone). This will automatically include Regina, the teen into the equation, which will automatically boost both revenue and data usage.
According with some cell phones statistics from the Defakto Company: •55% of mobile social networks usage that is female. •42% more likely working moms are than average cellular users to download content to their cell phones •42% of women post photos on Facebook (2010, Vermon) Therefore, for this specific scenario, the target should be a female from age 15 to 45 years old, which are the ages for the generations that have lived through the technological changes. In order to narrow more of the target audience, a psychographic segmentation will be necessary. The organization would need to know the typical values and lifestyle of the women who use cell phones cameras, for this purpose we can use tools as VAL which classify consumer by psychological characteristics.
2. Create a positioning statement for your chosen persona and identify the key themes that should be emphasized in the messaging for the PicDeck service to this segment. a.Positioning statement for PicDeck:
For the wireless subscribers who want to transfer picture to their computers, email inbox, and mobile devices, the PicDeck provides the most effective way to download and manage pictures. Unlike the currently complex and limited methods we have today, the PicDeck allows the transfer of pictures to any pre-designated destination without the need to press any extra buttons.
3. What are the risks of using qualitative personas to select target customer segments? a.The customer personas and the goal of the organization should be aligned with one another to ensure the company’s cohesiveness and allow them to determine their target customer. The use of personas is useful in marketing to understand the customer behavior, so the personas should represent attributes of the target audience that we want to reach. In using qualitative personas we are assuming that the people represented have similar expectations and goals, and we are not considering important issues as culture and race; and that’s when it becomes risky for the business. This can cause the company to lose revenue because a product of this caliber is universal and therefore the company has no need lock themselves to a certain type of customer when all types of customers can utilize the product. Section B
4. Which segment(s) would you recommend as a target for PicDeck? Explain the logic behind your choice. a.Using demographic segmentation has been a useful tool in determining which customers to target in promoting their product. According to exhibit 4 in section B the strongest response in the surveys came from middle aged married consumers and/or male wireless subscribers. There is additional statistical research supporting this data from the customer personas; which a middle-age married woman with a teenager has the need for this produce and the purchasing power to attain it.
In addition, Exhibit 2 consistently illustrates that the middle age consumer wants a device that is easier to transfer photos to their PCs, email, or social website. By continuing using demographic segmentation they can place more focus on income, education, and occupations within middle aged married consumers and males; which this may address Mr. Levy’s concerns regarding the increasing and/or maintaining ARPUs.
5. Develop a positioning statement for your selected target customer(s) the key benefits of the PicDeck service and how the service is differentiated from alternative that customers might consider. a.For the up-to-date Mom and professional savvy male who is looking for timeless convenience the PicDeck Mobile provides fast and clear pictures of your loved ones or Power Point to your boss. Unlike archaic digital cameras the PicDeck can seamlessly send that memory or great idea before you can say cheese. In conclusion Ontela’s Picdeck was definitely on the right path. Looking at today’s society people are using this product every day.
Whether it’s a person taking pictures with their smartphone, and instantly sending it to their Facebook page or a fellow student snapping a shot of the groups contact sheet and sending the document via email to the group members; everyone values the product for its convenience and accessibility. It has now become the “norm” function of a phone. Therefore, Levy’s positioning strategy to ensure the solvency of his company; in addition, addressing carriers’ goals seems as a success with the continuing growth of this industry.