8/10/2010

By Paninee Putwanphen

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 8/10/2010

Yikes, the
iPad is
killing our
The market’s growing
Kindle Where are we and
and we’re seeing intense
what do we want to
competition
do ?

We need a model to
identify our current
positioning and find
opportunities in the
market

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Answers:
 Where are the gaps in the market?
"Where are we?" and "Where do we want to be?"

 Sales opportunities? Gap?

 Who are our competitors? v

v

 How do we differentiate?

 Do we communicate differentiation well?

The model has two sources of input:

1. a Competitive Landscape of product
Data characteristic
Input 2. Survey data of likely customer base
To define model background

Model calibration through the creation of

Define/ multiple perceptual maps based on the
refine survey data

Overlay perceptual maps to find the “white

Find
space” based key performance indicators or
Position attributes

Interpret
Evaluate opportunities and reposition

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Annual Sm.
Income Annual Adopter Facebook Screen Portable Color MultiMedia Applicati Web Preference Usage/
Names Range Gender Income Age Stage Usage Size Device Importance Capabilities on Usage Browsing Price Scale Importance
Susan A F $ 150 65 2.1 1.1 3.6 3.8 3.1 2.1 0.4 2.3 3.9 4.5-5 High
Kiki A F $ 150 60 2.7 1.3 3.2 3.5 2.3 3.4 1.7 2.8 4.3 3.5-4.4 High Medium
Mike A M $ 150 65 3.4 1.5 4.9 2.4 2.6 3.1 2 4.2 3.8 2.5-3.4 Medium
Bill A M $ 120 70 0.5 1.1 4.2 3.3 2.1 2.4 1.3 3.2 3.6 1.6-2.4 Low Medium
JG A M $ 100 70 5 4.7 3.4 4.9 4.3 4.5 3.9 4.8 2.5 0-1.5 Low
Phil A M $ 100 48 4.6 4.1 3.6 4.7 4.7 5 4.8 5 2.2
Henry B M $ 90 40 3.1 2.5 1.2 3.7 4.1 5 4.4 4.3 2.2 Adopter Status
Jackson B M $ 90 35 4.1 3.7 4.9 2.3 4.5 4.4 4.3 4.2 0.8 4.5 - 5 Innovator
Jason B M $ 80 30 4.9 4.8 3.1 4.1 4.5 4.8 4.7 4.9 2.2 3.5 - 4.4 Early Adopters
Russell B M $ 80 60 3.5 1.1 3.5 2.1 3.2 2.3 3.5 3.7 4.8 2.5 - 3.4 Early Majority
Pat B F $ 75 52 2.6 2.3 3.2 4.1 3.3 2.3 1.5 4.3 3.6 1.6-2.4 Late Majority
Judy B F $ 70 35 2.2 2.5 3.1 3.4 2.1 2.4 2.7 3.2 4.1 0-1.5 Laggards
Alex C M $ 60 45 3.5 2.1 4.5 2.2 3.2 4.1 2.1 3.5 3.8
Kate C F $ 60 40 2.3 2 3.7 4.6 2.1 2.3 2.6 2.8 4.3 Annual Income Range
Kasey C F $ 60 55 4 3.7 4.7 2.3 4.7 3.4 4.8 4.5 2.3 A $100K+
Phyllis C F $ 60 40 2 2.5 2.2 4.3 3.2 4.3 2.7 3.4 3.8 B $99-70K
Louise C F $ 60 80 1 0.5 4.3 2.1 1.4 1.8 1.1 1.6 4.5 C $69-60K
Jason M C M $ 60 32 3.4 2.1 4.7 3.1 3.7 2.4 3.5 3.8 4.7 D $59-50K
Linda D F $ 55 45 2.1 1.5 3.4 4.9 3.3 2.3 0.7 0.8 4.6 E $49-40K
George D M $ 55 47 4.1 1.3 3.6 2.4 2.3 3.6 2.5 2.8 4.7 F $39-30K
Brad D M $ 50 57 4.7 4.9 3.1 3.8 4.3 4.4 3.6 2.6 3.5 G $29-20K
Danny E M $ 45 58 2.1 0.5 2.1 2.2 2.3 2.3 3.1 2.3 5
Robert E M $ 40 55 2.5 2.5 3.1 3.4 3.1 3.5 3.2 3.4 4.9
Marilyn E F $ 40 55 2.6 2.1 2.8 4.6 2.7 2.9 1.2 2.4 4.6
Tommy E M $ 40 60 2.5 0.5 3.1 3.5 3.6 2.5 3.7 3.5 4.3
Lyn E F $ 40 43 1.1 1.1 2.1 3.7 3.8 3.9 3.2 3.8 4.9
Maureen F F $ 35 54 0.5 1.1 3.1 3.2 2.8 2.1 2.1 2.4 4.4
Bridget F F $ 30 28 4.6 3.8 3.1 4.2 4.5 4.1 4.6 5 2.1
Michael F M $ 30 58 2.7 2.1 3.4 4.1 5 4.3 2.6 3.5 3.7
Mari F F $ 30 47 2.5 2.6 4.2 2.3 3.2 3.4 2.1 3.2 4.2
Sue G F $ 24 21 4.5 4.9 4.2 2.3 4.9 3.9 2.9 3.6 4.7
Alexander G M $ 20 18 3.2 3.7 4.1 1.7 3.2 2.1 2.7 4.6 4.8
Harrison G M $ 20 16 3.5 2.1 2.1 4.7 4.5 2.3 2.7 3.7 3.5

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Display Size (inch/reading area)

12.0 Que
iPad Que 3G
KindleDX
10.0
Low price with bigger screen ?
iPad 3G
Entourage
8.0
eSlick iRex iLiad
Sony 505 Nook
6.0

Kindle 2Alex
4.0 Sony 300
High price with smaller screen ?
NO
2.0

0.0
$0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 $900.00

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Price and Display Resolution

(expressed in Mpixels)
$900

Que-3G
$800

$700 Que-WiFi
iPad 3G
$600

iPad Entourage Edge iRex iLiad

$500

$400 KindleDX
Alex

$300 Nook
Sony PRS-505 Kindle
eSlick
$200

$100 Sony PRS-300

$0
0 200000 400000 600000 800000 1000000 1200000 1400000

Price and Storage Capacity

(Expressed in Gbytes)
$900
Que-3G
$800
Que-WiFi
$700 iPad 3G Margin vs. Price
$600
iRex iLiadEntourage $900
$500 Edge Que-3G
KindleDX $800
iPad
Sony PRS-
$400 Alex
505 $700 Que-WiFi
$300 Nook
iPad 3G
eSlick Kindle $600
$200
Sony PRS- iRex iLiad
iPad
$500 KindleDX
$100 300 Entourage
$400 Edge Alex Sony PRS-
$0
0 5 10 15 20 Nook 505
$300
eSlick
$200
Kindle Sony PRS-
$100 300
$0
0% 10% 20% 30% 40% 50% 60% 70% 80%

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$900.00
Que 3G

$800.00

Que
$700.00 iPad

$600.00 Entourage
iPad
$500.00 iRex iLiad Kindle DX

$400.00

Sony 505
$300.00
alex Nook
eSlick
$200.00 Kindle 2 Us only Connection
Sony 300 Global Connection
$100.00

Did we communicate differentiation well ?

$0.00
0 1 2 3 4 5 6 7

Wifi+Btooth

Technology Adopter Status vs. Facebook Usage

G D
5 B
Facebook A

4 F
G C B

Adopter Status C B E B
F
B
0 1 2 3 4 5
F C C G
C
2
E

D A
A D
A F E A B

C E E

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Screen Size vs. Portability

A D
5
Portability
G A
E C

C
F
B F
B
4 D A
B E

E A
B
A
E
C
F
3

Screen Size
D A
F
G
0 1 2 E 3 4 C 5
B C
C B
2
G

Adopter Status
E
vs. Price
E E
5 G B
Price
C D G
D E
C
F
C E A
F
B
A
C 4 A C
F
A B
G D

Adopter Status A
C
0 1 2 3 B 4 A B 5
F

1 B

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Older, affluent Middle aged,

Younger
customers are financially
consumers tend to
most interested in comfortable
be early adopters
display size and consumers are
but they’re cost
less concerned early adopters and
conscious. Might
about price. are more likely to
gravitate towards
(Supporting data gravitate towards
Kindle if it were
suggests older the iPad for
more suitable for
readers drawn to applications, color
students.
Kindle) screen.

 The Kindle suffers in price comparison against

products with better/more features
 Reduce price of existing models to better compete
 The Kindle has an advantage in its wireless capabilities
 Amazon Kindle 2 : Improve Communication about
differentiation in Low price with International
Connection
 Consider software only approach including Kindle app
for Android.
 Highlight Kindle’s wireless advantages

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• Perceptual maps provide a visual model useful in evaluating a great

deal of seemingly disparate data.

• Survey data provides additional information to understand customer

preferences and to create useful segments. Survey data provides a
quantitative measurement to a qualitative preference.

• Model still need human judgment to validate business decision.

 Increase and improve the variables on survey

 Increase the sample size
 Explore additional models that might expose different opportunities
for segmentation and positioning

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