Conglomerate Inc.’s New Pda

Conglomerate Inc.’s New PDA

Segmentation

Backround

Conglomerate Inc. and a PC manufacturer teamd up to form a joint venture to develop and sell a hybrid product integrating a PDA with a cellular phone. Its first product was tentatively called “ConneCtor” .

The company Netlink hired HVC to collect information about the needs of potential customers, identify segments within the market for PDAs, target relevant segments and position “ConneCtor” in the segment.

ConneCtors’  main functions

• Directly transmits and receives both data and voice

• Access to standard tools of PIM

• Performs as a cell phone

• Send and receive faxes and e-mail

• Access the Internet

• Record voice messages

• Infrared port and USB for direct data transfer

• Wireless links to other ConneCtors for voice and data transfer

Segmentation by 9 clusters

Segmentation by 4 clusters

Segmentation- Hierarchical

* kmean did not show any substantial differences

Clusters 1&4 show most potential for product

Cluster 4- Innovators using cell phones and with high willingness to pay  

Cluster 1 - Need to manage their personal information and collaborate via email   

• Fit well with ConneCtor’s features

• The only segment that uses PIM in relatively high frequency

• Phone users

• Importance of web, e-mail and multimedia capabilities

• Pay average price, settle for moderate ergonomics & monitor, and have moderate need for info sharing

• No “unfit” indications

Clusters 2&3 are not the best match

even though they show potential in certain areas 

Cluster 2 - Basic Frequent Users  

Discrimination Analysis

After Discrimination clusters 1&4 still show most potential

Cluster 4- Educated and professionals, already use PDA’s as well as cell phones    

Cluster 1 - Sales people, often away   

• Mainly Sales professionals

• Heavy cell phone use

• 45% own a PDA

• Often work away from the office

• Price sensitive

Cluster 4 is the one to target

Based on the ConneCtor’s analysis for segmentation

Concerns

Procedure

• Sampling - was it random or from specific target audience ?

• Social desirability bias (people want to appear smart & advanced)

• Is 160 participants enough ? (cluster 3 has only 16 members)

Analysis

• Cluster 3: not innovators, no cell & massages no features, low income, low experience with PDA usage.... but willing to pay high price?!

Focus on cluster 4 and amend features accordingly

• Target this segment and offer the ConneCtor as an additional product to their already existing PDA and Cell phone products

• While emphasising the value of having both in one product instead of carrying both

• Also emphasizing the innovation in such a product

• Let this cluster or portion of it to serve as the early adopters and perform further research on the missing media features that will probably care about as per the analysis and gradually add those into the product next versions

• Improve ergonomics of product after further feedback from the users

Backup

Cluster 1 needs analysis

Cluster 1 - PIM, Email & Web users    

Cluster 2 needs analysis

Cluster 2 - Basic Frequent Users  

Cluster 3 needs analysis

Cluster 3 - Information time sensitive users, old school

Cluster 4 needs analysis

Cluster 4 - Innovators