Rupesh Kumar Gupta-1421229 (Conglomerate Inc Case Study)

Rupesh Kumar Gupta
Conglomerate Inc.s New PDA (2001)

Case Background
Conglomerate Inc., a major U.S. wireless carrier, has teamed up with a PC manufacturer to form
a joint venture, Net link, to develop, produce and market a hybrid product integrating a Personal
Digital Assistant (PDA) with a smart cellular phone. It is lightweight but heavier than a cell
phone whose shape it emulates. It comes with a backlit gray scale LCD screen of moderate
resolution. Its operating system is the Palm OS, which is common in PDAs. ConneCtor can send
and receive faxes and e-mail, access the Internet, and record voice messages. The key features of
ConneCtor are:
Instant communication for voice and data

Cell phone, pager, fax and e-mail, and instant messaging
PIM functions
Digital voice recorder
Enabled voice commands
Palm OS application base.
Entries must make trade-offs between features. Customers want easy portability, but with more
functions the PDA becomes heavier and bulkier. PDA users needs are heterogeneous. Those who
are looking for a high-tech way to store contact and appointment data may be satisfied with the
basic models that cost $200 or less. They also are likely to prefer to keep a PC and cell phone
separately rather than having an integrated PDA system that could do both. Users who plan to
use the PDA as an extension of a PC by creating and accessing documents, sending e-mail, and
doing basic Web surfing, might consider a Pocket-PC in the range of $350$600.
For the targeting task, Net link recognized that it had to develop criteria for segment selection.
Using the items in Exhibit 1 as a starting point, Net link identified two sets of key targeting
criteria:
Product-target market fit, in terms of Conglomerates technical strengths, market needs
and the ability of the current (or future) ConneCtors to meet those needs.
Segment size and growth expectations, including both first purchases and
upgrade/replacement buys.
Rupesh Kumar Gupta
Solution Methodology
According to the case, based on the customer survey conducted we have to divide the respondent
into different clusters, in which separation within cluster is minimum and separation in between
cluster is maximum and also high value of Silhouette Coefficient is desired(ranges from -1 to
+1), which will ensure the above two criteria. For clustering the data we follow TWO STEP
CLUSTER method and let the software decide how many clusters to be made. The values from
x1 to x15 will be used to segment the customers or for clustering and z1 to z17 will be used to
create profile of the customers which will fall in the target cluster.
Result of Cluster Analysis

After running the initial two step cluster method, we get
The algorithm creates two cluster for the customer data available with fairly well (Silhouette
Coefficient=0.4), indicating both the condition for optimal cluster is fairly satisfied.
Rupesh Kumar Gupta
This graph shows that from a total of 160 respondents, 40.6% (65) fall in one
cluster, while rest 59.4% (95) fall in another category, the ratio of largest to
smallest cluster is 1.4612.
Rupesh Kumar Gupta
Rupesh Kumar Gupta

From the above analysis of cluster we find that the distinguishing feature between
the clusters are
Email Access- cluster1 requires frequent or high email access as compared

to cluster2.
Multimedia Feature- cluster 1 reqires the PDA to have high multimedia
feature like playing of music, video and games.
Innovator- the respondent of cluster 1 are more of technology freek and
come under early adopters of any new twchnology launched in the market
as compared to cluster 2
Web-Access- the respondents of cluster 1 require high or frequent internet
access though which they can access their mails and other internet facilities.
For cluster 1 this feature holds the top priority for PDA to hold,
PIM Tools- cluster 1 respondent are a frequent users of internal facilities of
PDA eg scheduler, contact-management tools, to-do list
Rupesh Kumar Gupta
From the predictor importance graph the top six distinguishing factors for the clustering:
1.
2.
3.
4.
5.
6.
Web-Access
Email-Access
Multi Media Feature
PIM usage
Innovators
Remote access
By analyzing the cluster comparing data and the features available with the PDA, we figure out
that CLUSTER 1 is our target audience.
Now we have to see what are the features of respondents segment 1 and though which medium
we can target respondents of cluster1
Medium to Target
Business Week
Rupesh Kumar Gupta
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
No
59
62.1
62.1
62.1
Yes
36
37.9
37.9
100.0
Total
95
100.0
100.0
PC Magazine
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
No
74
77.9
77.9
77.9
Yes
21
22.1
22.1
100.0
Total
95
100.0
100.0
Field & Stream

Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
No
92
96.8
96.8
96.8
Yes
3.2
3.2
100.0
Total
95
100.0
100.0
Modern Gourmet
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
No
92
96.8
96.8
96.8
Yes
3.2
3.2
100.0
Total
95
100.0
100.0
From the above data comparison we find that we can target the respondents of cluster
1 via two media i.e.
1. Business week (37%)
2. PC Magazine (22%)
Rupesh Kumar Gupta
From the analysis of the descriptive statistics we conclude that

The key features of the respondents of cluster 1 are they are majority of
college graduates, who already have a PDA and working as sales, software
engineer or professional and have cell and personnel computer.

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Rupesh Kumar Gupta

Conglomerate Inc.s New PDA (2001)

Instant communication for voice and data