Case Number: 5-309-505(B), Year Published: 2009
HBS Number: KEL451
Segmentation, Targeting, Positioning, Wireless, Technology
Ontela, a technology start-up company, has introduced an innovative service called PicDeck that improves the mobile imaging experience for wireless subscribers. Ontela sells PicDeck to wireless carriers, who in turn private-label the service to their subscribers. Ontela must decide which customer segments it should target for the service and how to create a positioning strategy and a marketing communication plan to promote it. It must also consider the value proposition of the PicDeck service for wireless carriers (its direct customers), who need to be convinced that the service will lead to higher monthly average revenue per user (ARPU) and/or increased subscriber loyalty. Part A of the case provides qualitative information on customer personae that represent different customer segments. Students are asked to develop a targeting and positioning strategy based on this qualitative information. Part B provides quantitative data on customer preferences that can be used to identify response-based customer segments, as well as demographic and media habits information that can be used to profile the segments. Students are asked to revise their recommendations based on the additional quantitative data.
The case has three learning goals:
The case gives students a chance to roll up their sleeves and deal with the data produced by segmentation studies. It also illustrates how data-driven segmentation can produce results that may run counter to approaches that rely on “gut feel” or qualitative information alone.
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