Tutorial 1 - Ontela PicDeck

Customer segmentation, targeting and positioning

© Imperial College Business School

Tutorial 1: Ontela PicDeck

1

Strategic Marketing – SUMMER SCHOOL 2014 2

• Who’s who?• Lecture Revision• Reading Time• Case Discussion


Overview for today


• PhD student in ‘inclusive innovation’ - new products and services that benefit the base of the economic pyramid.

• Workwith UNAIDS on the delivery of PMTCT treatments in India and the Bill & Melinda Gates Foundation on adoption behaviours in developing countries.


Who’s who?

• Spillovers relevant to multinationals such as Unilever (Project Shakti) and Nestlé (PPPs).

• Previously worked in the digital arm of WPP Group

© Imperial College Business School Strategic Marketing – SUMMER SCHOOL 2014 4

SEGMENTATION TARGETING POSITIONING

Three key strategic marketing concepts

Lecture Revision


SEGMENTATION

- Divide broad target market into subsets of consumers,

- Common needs and priorities.

Socioeconomic status• Age, Gender• Demographics• Social status A1, C3

TARGETING

- Point at which you start to design and implement strategies to target those subsets identified.

- Understand their needs, wants, habits

e.g. What do they eat for breakfast?

POSITIONING

- In the minds of consumers… using supporting data

- vs competitors… Product differentiation strategies vs. undifferentiated approach

Three key strategic marketing concepts

What did you learn?


Porter’s Generic Strategies

The Ansoff Matrix

Two key strategic marketing concepts

What did you learn?


Two key strategic marketing concepts

What did you learn?

Strategic Marketing – SUMMER SCHOOL 2014 8© Imperial College Business School

Icebreaker Exercise

• Turn to your neighbour and introduce yourselves.

• Ask each other three questions:1. In spite of the risks, if you were

given a free ticket, would you take the first Virgin Galactic flight?

2. In general, do you prefer eating at McDonalds, GBK or Burger & Lobster?

3. Which social networks do you use? How frequently do you post compared to how often you check your newsfeeds?


Where are you on the adoption curve?


Roger’s Adoption Curve


• Classification of consumer on the basis of their degree of readiness to try a new product.

• Five categories that exist in every market segment:1. Innovators: venturesome people and risk takers who are the

very first users; comprising about 2.5 percent of target market

2. Early adopters: prestige oriented opinion leaders, about 13.5 percent of the target market,

3. Early majority: the leading segment of the mass market, about 34 percent of the target market,

4. Late majority: followers of the early majority, also about 36 percent of the target market,

5. Laggards: conservative, price conscious segment, about 14 percent of the target market

Classification of consumers

Adopter Categories


1. If given a free ticket, would you take the first Virgin Galactic flight?• Awareness; willingness to try new things; aversion to risk

2. In general, do you prefer going to McDonalds, GBK or Burger & Lobster?• Price sensitivity; taste for luxury; preference on value

3. Which social networks do you use? How frequently do you post compared to how often you check your newsfeeds?• Opinion leaders or followers; level of connectedness

What are we trying to uncover?


Icebreaker Exercise


Case Study

READ THE ONTELA PICDECK CASE (15 MINUTES)


• PicDeck Service: “helping bridge the gap between phone and PC”

• ARPU Average Revenue Per User is critical success factor to the wireless carriers

• Minutes to Bits: Need to increase use of data services• April 2008: Fannie Mae & Freddy Mac collapsed in

September 2008

Some things to think about…

Ontela


Some things to think about…

Ontela

OntelaEnd users (mobile)

Carriers (Cel South, Cinc Wireless,

Alltel)

Technology Platform

Branding and Pricing

Customer retention + subscription

Lock-in & fee

• Increases data consumption

• Offers value added service


• Goal = seamless integration of picture taking and image transfer to pre-designated destinations– “product is complicated to understand and

needs to be explained” (Matt Phillips) – “it’s easy to make people understand what the

service is” (Jim Richmond)• Targeting the right “personas”

PicDeck Service


Personas


• Married, 42• Mother of three• Works part-time from home• Not a ‘computer whizz’ /

scared of social media• Uses camera for family pics,

asks her children to transfer the pictures.

• Would love the idea of an automatic transfer

Sarah “the parent”

Persona 1


• 27 years old • Borderline digital native• Successful real estate agent• On the road a lot, uses his

camera to take pictures of client houses.

• Old model cellphone, hesitant to upgrade (what if I lose my contacts?)

• Sees value in the product.

Steve “the yuppie”

Persona 2


• 16 years old• Middle class• Likes taking spontaneous

pics with friends, but can’t be bothered to load the pictures to the PC.

• Wants to manage and monitor what is uploaded onto her PC

• Plug-ins for social media?

Regina “the teen”

Persona 3


• Different customers require– Different positioning statements– Different marketing techniques

• Useful for general strategy but tough for building a solid business case..– Subjective interpretation, based on judgment.

• But sometimes using quantitative information is useless– “If I had asked people what they wanted, they would have

said faster horses”

PicDeck Service


Based on the three customer personas…

Case Study Questions

1. Which customer segment should Ontela target? Why?

2. Create a positioning statement for your target persona. What are the key themes that should be emphasized?

3. What are the risks of using qualitative personas to select target customers?


Positioning Statement

When coming up with your positioning statement:

1. Identify the customer2. Define the service3. Identify the benefit(s)4. Communicate why the service and benefit(s) are

different from what is currently available.

How likely are the personas to be interested in PicDeck?How much value would the group matching this persona generate?


Positioning Statement


Case Study

BREAK INTO GROUPS OF THREE

(20 MINUTES)


What happened next?

• Bought by PhotoBucket in 2009 • Same platform used by Twitter to enable photo sharing

Education

Tutorial 1 - Ontela PicDeck