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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

Sarah

Steve

Regina

42

27

16

Female

Male

Female

Household

Three children

Single

Single

Occupatio
n

Parent

Age
Gender

LOW

Tech.

(Email,

Aptitud

and

IM that were

Mindset
Product
Usage

Real Estate Agent

MEDIUM

Google,

occasionally
set

for her) in new

Noup interest

(Uses email at work

HIGH
(Actively

uses

but prefers the

social media and

traditional way in
Passive in updating

email to share
Used to new

technologies
Move pictures to
free

Student

technologies
technologies
Send pictures
directly

Share pictures

with

Custome

up camera memory
Simplicity

to clients
Simplicity

friends
Greater

r Needs

Speed

Convenience

Convenience &
Speed

Control

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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 targets level of acquaintance
with new technologies and satisfies their needs; combine that with the target
segments 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 Ontelas direct customers
are ultimately, targeting a segment that is less
technology

but

possess both the ability to afford

saturated
and

with wireless

a desire to

will help both expand the carriers businesses and Ontelas

Product

Positioning

Key Values

upgrade

opportunities.

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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

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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 designatecomputer 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
of the newest technologies

is a frequent

user

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

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potential market and may direct the company to invest in a small portion 6
of the
population,
from whom the returns might be low, e.g. the smaller group of teenagers in an
aging society.

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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.

(2) Neo-Traditional

(1) Value Seekers

Descriptive Profiles
People in this segment are relatively apt at uploading photos from their
phones and
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
People in this segment are averagely apt at transferring pictures out of
phones but
show a commitment to digital cameras even if phone camera improve

(3) Trend Follower

Photo-sharer

in quality or is 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
People in this segment experiences some troubles in uploading phone
pictures but
do not

consider

tech products.

the ease of the setup process when deciding on new

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

(4) Quality-driven
Techie

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People in this segment have the easiest time uploading pictures from
phones but
refrain from rushing to upgrade to newer technologies.

(5) Convenience
Seekers

consideration the
on new tech

Take

into

ease of setup and prices in the market when deciding

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
People in this segment have the most challenges in using new
technology products
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

(6) Traditionalist

if it means simpler process and better quality results. The least price
sensitive out of all 6 clusters, people in this segment accept PicDeck
People in this segment are relatively apt at uploading pictures from
phones but are

at

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
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
consideration
it is easy to

how difficult the setup

upload pictures but

new

products without taking

will be (e.g.

cluster

into

3 does not think

is quick to adopt new tech).

(1) Value Seekers

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Revised Profiles
People in this segment demonstrate the highest internet use and
strongest

Techie

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
People in this segment are relatively apt at using phone

phones.
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
platforms. They are relatively quick to adopt new technologies
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
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
Consist of mostly people younger than 25, over half of this segment
has message

(3) Trend Follower

sharer

(2) Neo-Traditional Photo-

photo sharing and value the ability to access photos from various

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
process

phone pictures but do not consider

when

deciding

on

new tech

the ease of the setup

products. They are quick to

adopt new technologies and seek out the best prices. They are

(4) Quality-drive

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The majority of this segment is male and between ages 25 and 40
but only about
one-third is married. Many people in this segment are subscribers to

(5) Convenience Seekers Moderate Blogger

message pack and almost half of the cluster has data plans on their
cell

phones.

strongest

Showing heavy Internet use, this group also expresses

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

setup and the prices in the market when purchasing

of

new tech

products, people in this cluster do not show much zeal in photo

Over half of the segment is between ages 25 and 40 and about two-
thirds of them
married. Only about one-third has data
and about

plans on his/her cell phones

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

(6) Traditionalist

willingness to upgrade if it means simpler and better quality results.

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 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

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,
reflect the nature

however,

the initial profiles did not

accurately

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of the groups. For cluster one, the segments 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

ones 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,
indicativeto some extentof this segments 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

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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

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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
services to your

and high-value

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.