Marketing Management - II

ONTELA PICDECK CASE

Group-1
Anushree Ghosh B19126
Apoorva Rastogi B19127
Rishabh Lohia B19158
Shekhar Singh B19167
Sourav Raha B19173
Ontela Case A
1. What does it mean to be a “Valuable Customer” in the context of Ontela?

In the context of Ontela a valuable customer should be:

● Profitable to the company (i.e. he should generate higher revenue for the company so as to
ensure higher ARPU).
● The customer should provide sustainable growth to profits.
● Customer should be loyal to the company such that the churn rate becomes lesser
● The customer should give continuous feedback on product features.
● An ideal customer would conduct advocacy or engage in positive Word of Mouth about the
company and the product

2. What is the purpose of “persona” in segmentation?

Personas are characters created by a marketer wherein an attempt is made to mimic a real
customer. The persona is based on real-life demographic information & other kinds of data
collected through market research. The creation of personas helps in visualising a segment and
in identifying a typical consumer’s behavior. They enable marketers to understand the
motivations and actions of persons of that segment. This can help in making a customer benefit
ladder and constructing a customer journey map. Marketers can easily identify the important
touchpoints for a customer.

3. What criteria would you use to decide which segment to target?

Given below is the data we infer from the case:

Persona Spending Customer Uses Customer Degree of Potential

potential need satisfaction usage Profitability
with
existing
technology/
product

Sarah High Ease of use Family Very low Moderate Moderate

event

Steve High Keeping up Business Moderate High High

with the times
as to not lose
business
Regina Low Speed and Social Low High High
convenience media

Given the data available in Case (a) Ontela PicDeck, we believe that the following parameters
can prove to be useful criteria for selecting a target segment:

A. Degree of usage: On the basis of the qualitative data given, Regina and Steve have relatively
higher rates of usage as compared to Sarah. While Regina uses it to interact with her friends
and family; Steve has a steady but stable usage in his real estate business.
B. Loyalty: As Steve would be a regular user of the data, with a relatively low need for innovation,
we deduce he would be more apprehensive to switch to probable competitor in the long run.
Regina being a teen would be highly price sensitive and would look for innovation. Sarah looks
forward to ease and has a steady income and would stick to using the service until the new
technology provided is drastically different.
C. Pays own bill: As Steve is a working professional with a stable source of income, we believe
that he will be more capable of paying his own bills. Sarah, who works part time does not have
a constant source of income and Regina, a student, does not have any source of income. So,
both of them might find it hard to pay the bill on time.

Based on the above discussion, we can form the following BCG Growth Share Matrix:

Low Growth High Growth

Low X Regina
profitability

High Sarah Steve

Profitability
Ontela-PicDeck Case B

4. Which preference/attitudinal variables in Exhibit 1 are most useful for segmentation? Which
are least useful?

Most Useful Least Useful

Ease of uploading pictures Comparison of picture quality of the digital

camera and mobile camera

Ease of transferring pictures Customer would take more photos of

transfer was easier

Ease of setting up the product

Monthly Fee and willingness to pay

5. To what extent does demographic and media usage data line up with our earlier analysis in
Case A?

From our earlier analysis, we can map the persona of Steve with the given demographic data.
We can map him roughly to cluster 4 based on the following characteristics:
● Age: The median age of the cluster is close to that of Steve.
● Data plan: Given the reluctance of Steve to switch to data, 42% of people in cluster
opting for data plan closely lines up with Steve’s persona.
● Pay own bill: 93% of the people pay their own bills in this cluster. Steve is an earning
individual and probably pays all his bills on his own.
● Message Pack: Since Steve uses an old phone, he might be using more text message
packs. Cluster 4 has the highest message-pack usage.

However, Steve is not a perfect fit for this cluster as some characteristics do not fit:
● Internet Usage: While internet usage score is the second highest in this cluster, Steve
is not a heavy internet user.
● Tech Magazines and websites: Steve does not seem too interested in technology, but
this cluster generally is

Many of our assumptions in constructing a persona are proved correct, but many aren’t.
Therefore, a qualitative persona should not be taken as absolute truth unless backed up by hard data.
 6. Based on our analysis so far, what are the benefits and drawbacks of doing persona
development before quantitative (Cluster) analysis versus vice versa?

Persona development before quantitative analysis -

Benefits -
● Less effort as the number of parameters considered are lesser in number.
● Lower costs as the analysis is done over a short period of time with limited resources.
● Simplicity brings clarity to the segmentation.

Drawbacks -
● Decision is made on the basis of interacting with a smaller subset of people.
● No scientific proof to substantiate the claims.
● Preconceived notions of people constructing the personas can adversely affect the output.

Quantitative analysis before persona development -

Benefits -
● Human bias has lesser influence as the data is there to back the research.
● More parameters can be considered to identify the human behavior pattern.
● Helps in identifying the segmentation model.
● Correlations might be inferred which would have been difficult to identify quantitatively

Drawbacks
● Time consuming and results from previous steps might act as an input for the next step.
● Need specialized skill sets to analyze the data gathered through the research.
● Output will depend on the input questions, hence subjectivity is not completely eliminated.
● The results might give us an output that is not feasible to implement.

7. Which clusters would you choose based only on the demographic data?

We will target Cluster 4 due to the following reasons:

● The median age is 30, meaning mostly working professionals.
● The age range is 25-55, meaning millennials, working professionals and mid-aged people are
all involved.
● Percentage of children is less which is not our target audience as they won’t be using our
product.
● 66% of the population is unmarried and they tend to travel, hang out with friends and use
their mobile phones extensively for taking pictures.
Exhibits

The data has been color-coded with green being high and red being low. This will help visualize the
overall tendencies.

This is the original data in spreadsheet form

Weigh
ted
Survey Avera
Question 1 2 3 4 5 6 ge

It is easy to
upload phone
Q01 photos 3.07 3.19 2.65 4.06 2.29 3.00 3.04

Would take
more phone
photos if
transfer were
Q02 easier 4.33 3.37 3.96 2.43 3.86 2.36 3.49

Would take
more phone
photos if
quality were
Q03 better 4.67 4.28 4.21 4.20 4.12 2.75 4.11

Would replace
digital camera
if phone
transfer were
Q04 easier 4.11 1.72 2.06 2.31 3.24 1.58 2.66

Would replace
digital camera
if phone photo
quality were
Q05 better 4.69 1.81 3.10 3.76 3.59 1.89 3.34

I value saving
phone photos
so they are not
Q06 lost 4.60 3.57 3.75 3.20 3.04 2.42 3.55
 I value sending
Q07 photos by email 4.53 3.94 4.02 3.22 3.02 2.25 3.61

I value having
photos on my
Q08 desktop 4.55 4.07 3.92 3.18 2.94 2.31 3.60

I value sharing
photos on
Q09 Facebook, etc. 3.95 3.69 3.83 3.00 2.98 2.22 3.36

When deciding
on new tech,
easy setup is a
Q10 factor 3.84 3.44 2.71 3.27 3.37 2.83 3.27

When new
technologies
emerge, I am
Q11 first to adopt 3.13 2.07 3.52 2.65 1.96 2.17 2.69

When buying
new tech, I
search for best
Q12 price 4.45 3.76 4.40 3.98 3.06 3.58 3.95

Q13 Monthly fee $5.75 $6.64 $7.93 $3.90 $8.31 $1.67 $6.07

Percentage of
respondents in
each cluster 24% 12% 19% 16% 15% 14% 100%

Weighted
Willingness
to Buy 101.72 81.73 86.27 80.32 76.75 62.27

Z1 Median Age

42 41 22 30 39 55 37.53

Z2 Age > 55
25% 27% 12% 19% 28% 43% 25%
Z3 Age < 25
23% 18% 55% 31% 16% 12% 27%

Z4 Male
52% 48% 43% 58% 49% 41% 49%

Z5 Married
48% 71% 22% 34% 64% 67% 49%

Z6 Children
27% 46% 11% 21% 35% 39% 28%

Z7 DataPlan
72% 15% 22% 42% 27% 11% 36%

Z8 MessagePack
45% 35% 61% 65% 39% 18% 45%

Z9 Family Plan
26% 54% 66% 17% 37% 12% 35%

Z10 Tech Mag

4.17 1.46 1.26 3.70 2.68 2.18 2.71

Z11 Celebrity Mag

1.77 3.33 4.54 1.39 2.50 3.80 2.82

Z12 Fashion Mag

2.12 2.65 3.65 2.51 1.89 1.25 2.38

Z13 Women’s
Mag 2.34 2.64 2.85 2.10 2.57 2.90 2.55

Z14 Homemaking
Mag 1.38 2.57 1.55 1.32 1.99 2.62 1.81

Z15 Sports
Magazines 3.00 2.57 2.10 4.47 2.91 1.90 2.85

Z16 Internet Use

3.85 1.66 3.12 3.50 2.01 1.42 2.78

Pay Own Bill

Z17 91% 84% 45% 93% 92% 95% 82%

Does not Lower

have Middle
children Married Young Aged Married Old

Low
Middle Family Unmarri Has Internet
Aged oriented Trendy ed Children use
 High Average
Has Internet Family Fashion
Tech savy children Usage Person concious

Pays
Bill=> Sports
Professio Homemak enthusia
nal ers st

Follows
High Fashion
Internet and
Usage Celebrities