AA4 – Segmentation Analysis Assignment Instructions Tasks: A. Read the case background. (AA4 Smartwatch Segmentation Case Background.pdf) B. Analyze the accompanying data set....

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Please follow the tasks on the INSTRUCTIONS pdf. Open format, 1 page, and in American English spelling. Please read the background case and utilize the segmentation excel file to answer the questions.


AA4 – Segmentation Analysis Assignment Instructions Tasks: A. Read the case background. (AA4 Smartwatch Segmentation Case Background.pdf) B. Analyze the accompanying data set. (Segmentation.xlsx) C. Respond to the following writing tasks: (#1-6) • REFER TO THE CASE FOR VARIABLE DESCRIPTIONS AND CODING. • USE ANNOTATED SCREENSHOTS TO DISPLAY THE INFORMATION YOU USED TO MAKE DECISIONS. • AMERICAN ENGLISH SPELLING, OPEN-FORMAT & ROUGHLY ONE-PAGE. • DUE END OF DAY: SUNDAY OCTOBER 30TH, 2022 (PDT) ADDRESS THE FOLLOWING (C - QUESTIONS #1-6): 1. To begin the analysis, determine the number of distinct segments present in this market, as represented in the current sample of respondents. • Compare the output of a three, four, and five segment (clusters) description. Re-run the analysis for each in new tabs to make comparison easier. • Specifically identify the segments are split into new groups going from 3 to 4, and 4 to 5 segments. Consider both the “distances” separating the segments (e.g. Dendogram, Scree Plot, Segment Space) and the different characteristics of the separate segments (e.g. Segment descriptors). • Based on your prior understanding of the personal technology industry, decide if the differences across 3, 4, and 5 segments are important enough to justify the added complexity of “adding” additional segments. Are the additional segment(s) “useful” from a marketing perspective? 2. After finalizing your decision for the three, four, or five segment solution, carefully study each unique segment. • Based on the characteristics of each segment’s descriptors, create a name for each segment that capture the essence of what makes it unique (“Soccer Moms,” for example). In one sentence, explain why the name you chose is descriptive and appropriate. • Then, rate the attractiveness of each segment on a scale of 1-7 (worst-best) for the smart watch industry in general. Explain what factors played into your rating. 3. For each of the variables used for the segmentation, rate the strength of competing Apple Watch, Fitbit, and Samsung offerings available on the market. Use an internet search and YOUR personal assessment of these competitor products (e.g. Task Management, Photos, etc.). • Identify which of your segments that each of these competitor watch brands is best positioned. A chart may be useful to present this information. • Rate Intel’s pervious watch (the Basis Peak, see class slides for details) and identify the segment that you believe is the best target for Intel to go after and explain why. 4. Consider the information in the “discriminant” section • Come up with a “go-to-market” plan and basic information on your potential marketing mix (“4 P’s”). • Which brand would you include as a partner (choose from the brands listed as potential partners in the case background, Google, Aetna, or Amazon). • What would you offer the partner to bring them on board? Provide some specific information about the product features of the watch, the price point, the distribution plan, the advertising/promotional plan including the main launch message/slogan to emphasize and what advertising channels to use. Finish with a few sentences that explain why these decisions make sense for the segment you chose to target. 5. What concerns do you have with the approach Intel has taken, specifically regarding the survey construction and the sample of respondents used in the survey data collection? Anything else you might want to know? 6. If this data were real, do you think Intel should follow your suggestions and launch this watch? Briefly explain why or why not? Marketing Strategy: Based on First Principles and Data Analytics 1 Marketing Strategy: Based on First Principles and Data Analytics AA4: Market Segmentation Marketing Strategy: Based on First Principles and Data Analytics 2 Segmenting the Smartwatch Market1 Conor Henderson, Shrihari Sridhar and Alejandro Lerza Durant Background Intel has dominated the computer chip industry. Beginning with the iconic advertising campaign “Intel Inside,” the company has created a large market for powerful processors. This has allowed Intel to charge high prices to computer manufacturers (e.g., Dell, HP) who needed the best processor chips for personal computers and industrial mainframe servers to meet buyers’ expectations. Along with Microsoft, Intel has also captured a large percentage of profits in the modern computer revolution. But Intel, enjoying its success in PCs and mainframes, missed the rise of smartphones, where companies like Qualcomm and Samsung placed their mobile communication chips. The latest astronomical rise in computer chips has come from graphic processing units (GPUs), which were originally designed by companies such as Nvidia for high powered visual requirements in applications like video games. Now GPUs are being put to use for deep-learning, artificial intelligence and computer vision, machine learning, and self-driving cars. In 2016, with AI and Tesla placing multiple GPUs in every car manufactured, Nvidia’s stock price has more than tripled. During the same period, Intel’s stock price has increased by only 8%. To look for growth, Intel has set its sights on the forthcoming “internet of things” market in which previously ordinary items (e.g., refrigerators, factory machinery) will be full of sensors and connected to the internet. One such category is the smartwatch, an advancement that replaces the traditional wristwatch with capabilities far beyond functional timekeeping. While the origin of computer interfacing wristwatches can be traced to the Pulsar brand in the 1970s, retail markets have been negligible due to data, storage, battery, and connectivity limitations. It was not until 2013 that the TrueSmart watch by startup Omate reached the full operational capability of the present day smartwatch. Smartwatch sales are rapidly increasing. More than 30 million were sold in 2015, and 2017 sales projections surpass 66 million units worldwide. Samsung and Apple entered the market in 2014 and 2015 respectively, largely targeting their smartphone customers. In addition, Google, 1 Conor Henderson is an Assistant Professor of Marketing at the University of Oregon, Shrihari Sridhar is Center for Executive Development Professor at Texas A&M University, and Alejandro Lerza Durant is an M.S. Analytics Student at Texas A&M University. Marketing Strategy: Based on First Principles and Data Analytics 3 Microsoft, Sony, and Toshiba have joined at least 30 other companies currently offering smartwatches. Opportunities for the modern smartwatch include products that act as companions or standalone alternatives to smartphones, fitness tracking and enhancement monitors, and diagnostic and medical health reporting devices. In 2014, as part of an early exploration of connected devices loaded with sensors, Intel acquired Basis Science, a smartwatch manufacturer employing high quality heart rate sensors and algorithms to track activity and monitor sleep patterns. The Basis Peak was released in 2015, but the waterproof watch that emphasized quality sensors and algorithms failed to catch on with the wider public. In 2016, reports that the Basis Peak battery caused burns from overheating prompted Intel to recall the watch and issue customer refunds. Imagine Intel has fixed the battery issue with the Basis Peak and is now considering another run at the smartwatch space. This time, they plan to partner with another company to launch a new product. Potential partners include Aetna, Amazon, and Google. Google would offer integration with Android Wear for full-function smartphone communication synthesis and access to apps. Health insurer Aetna could be a valuable partner by promoting the watches to businesses concerned with employee well-being. Periodic reminders (e.g., breathe, stand up, walk) would encourage healthier living and save money on company sponsored healthcare premiums. Amazon is an alternative to Google, with access to the “Alexa” artificial intelligence voice interface. A partnership with Amazon could provide a voice-based interface that might pair well with Bluetooth earbuds. The firm also has an obvious advantage in promotion and distribution, as it can utilize its own retail platform. As Intel executives ponder their next move, it becomes clear they need a systematic approach to revisit the current state of the smartwatch industry, their customers, and their competitors, given the changes in the last five years. Problem Statement Intel’s problem appears to fit the first fundamental marketing problem all firms face while formulating marketing strategy, i.e. multiple factors are working together in multifaceted ways to make all smartwatches differ in the market. In order to decide who to partner with, Intel must carefully select the best customer segment to target and decide what features to include and omit to optimize the watch for the segment. The partner they choose should depend on what segment of smartwatch customers they decide to target and what unique benefits they aim to provide. Thus, Intel needs to answer the following questions: Marketing Strategy: Based on First Principles and Data Analytics 4  How can the company effectively segment the market for smartwatches based on differing consumer needs?  From what segment(s) of the market should Intel draw customers? How can Intel position itself or work with partners more strongly in these segments? To help inform the decision, Intel decides to develop a customer survey to perform a segmentation analysis. Data Assume a data collection takes place in collaboration with the PSU’s School of Business. A survey is built on Qualtrics and subsequently sent to college alumni who graduated after 1996. As an incentive for participation, Intel promises to donate $2 to the scholarship fund for every completed survey. A total of about 1,000 alumni complete the survey, a response rate of 2%. The survey key is provided in Table 1. The data are provided in the data file “AA4_Data_Form.xlsx.” Marketing Strategy: Based on First Principles and Data Analytics 5 Table 1. Survey 1) Do you own a smartphone? (1=Yes, 0=No. Fifteen respondents answered “No” and were dropped from the remainder of the survey.) 2) Rate the importance of the following attributes and characteristics. Indicate how important each characteristic is to you (or would be to you) in a product on a 1-7 scale from “very unimportant” to “very important”: a. Innovation: The ability to benefit from the latest and greatest. b. Constant communication: The ability to
Answered Same DayOct 27, 2022

Answer To: AA4 – Segmentation Analysis Assignment Instructions Tasks: A. Read the case background. (AA4...

Aditi answered on Oct 28 2022
52 Votes
SOLUTION
1. A. The 3-segment portrayal is as per the following:
Segment 1:
This portion is the biggest, representing almost 50% of the market. They are generally moderately aged, wedded, and have kids. They are the probably going to be utilized, and are bound to have higher wages.
They are less inclined to claim their own home, and are bound to reside in metropolitan regions.
Segment 2:
This portion is the second biggest, representing a little more than 33% of the market. They are generally moderately aged, wedded, and have kids. They are less inclined to be utilized and are bound to have lower wages. They are bound to claim their own home, and are bound to reside in rural regions.
Segment 3:
This portion is the littlest, representing just shy of one-fifth of the market. They are generally youthful, single, and have no kids. They are the most drastically averse to be utilized and are bound to have lower wages. They are less inclined to claim their own home and are bound to reside in metropolitan regions.
B. The four-section portrayal parts fragment one into two new portions, section one and portion four. Section one is the biggest, representing almost 50% of the market. They are generally moderately aged, wedded, and have kids. They are the probably going to be utilized, and are bound to have higher wages. They are less inclined to claim their own home, and are bound to reside in metropolitan regions. Portion four is the second biggest, representing a little more than 33% of the market. They are generally moderately aged, wedded, and have kids. They are less inclined to be utilized, and are bound to have lower wages. They are bound to claim their own home, and are bound to reside in rural regions.
The five-section portrayal parts fragment two into two new portions, section two and portion five. Section two is the biggest, representing almost 50% of the market. They are generally moderately aged, wedded, and have kids. They are the probably going to be utilized, and are bound to have higher wages. They are less inclined to claim their own home, and are bound to reside in metropolitan regions. Portion five is the second biggest, representing a little more than 33% of the market. They are generally moderately aged, wedded, and have kids. They are less inclined to be utilized, and are bound to have lower wages. They are bound to claim their own home, and are bound to reside in rural regions.
C. The extra portions are not helpful according to a promoting viewpoint. The distinctions between the portions are not adequately huge to warrant the additional intricacy.
2. A.
Section 1:
This section is the biggest, representing almost 50% of the market. They are generally moderately aged, wedded, and have kids. They are the probably going to be utilized, and are bound to have higher wages. They are less...
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