8/10/2010

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By Paninee Putwanphen

8/10/2010

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The market’s growing and we’re seeing intense

competition

Where are we and what do we want to do ?

We need a model to identify our current

positioningand find opportunities in the

market

Yikes, the iPad is

killing our Kindle

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Answers:

Where are the gaps in the market?

"Where are we?" and "Where do we want to be?"

Sales opportunities?

Who are our competitors?

How do we differentiate?

Do we communicate differentiation well?

Gap?

vv

Interpret

Find

Position

Data Input

Define/refine

The model has two sources of input: 1. a Competitive Landscape of product characteristic2. Survey data of likely customer baseTo define model background

Model calibration through the creation of multiple perceptual maps based on the survey data

Overlay perceptual maps to find the “white space” based key performance indicators or attributes

Evaluate opportunities and reposition

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Names

Annual

Income

Range Gender

Annual

Income Age

Adopter

Stage

Facebook

Usage

Screen

Size

Sm.

Portable

Device

Color

Importance

MultiMedia

Capabilities

Applicati

on Usage

Web

Browsing Price

Preference

Scale

Usage/

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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iPad

iPad 3G

Kindle 2

KindleDX

Sony 300

Sony 505 Nook

Alex

iRex iLiad

Entourage

eSlick

QueQue 3G

0.0

2.0

4.0

6.0

8.0

10.0

12.0

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

Display Size (inch/reading area)

Low price with bigger screen ?

High price with smaller screen ?NO

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Alex

Entourage Edge

eSlick

iPad

iPad 3G

iRex iLiad

Kindle

KindleDX

Nook

Que-3G

Que-WiFi

Sony PRS-505

Sony PRS-300

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

0 200000 400000 600000 800000 1000000 1200000 1400000

Price and Display Resolution(expressed in Mpixels)

Kindle

KindleDX iPad

iPad 3G

Nook

Entourage Edge

eSlick

iRex iLiad

Que-WiFi

Que-3G

Sony PRS-300

Sony PRS-505

Alex

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

0 5 10 15 20

Price and Storage Capacity(Expressed in Gbytes)

Kindle

KindleDXiPad

iPad 3G

Nook

Entourage Edge

eSlick

iRex iLiad

Que-WiFi

Que-3G

Sony PRS-300

Sony PRS-505

Alex

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

0% 10% 20% 30% 40% 50% 60% 70% 80%

Margin vs. Price

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$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00

0 1 2 3 4 5 6 7

Sony 300

Sony 505

eSlick

iPad

iRex iLiad

alex

Que

Kindle 2

Entourage

Que 3G

Kindle DX

Nook

iPad

Us only Connection

Global Connection

Wifi+Btooth

Did we communicate differentiation well ?

A

A

A

A

A

A

B

B

B

B

B

B

CC

C

C

C

C

D

D

D

E

E

E

E

EF

F

F

F

G

G

G

0

1

2

3

4

5

0 1 2 3 4 5

Adopter Status

Facebook

Technology Adopter Status vs. Facebook Usage

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A

A

A

A

A

A

B

B

B

B

B

B

C

C

C

C

C

C

D

D

D

E

E

E

E

E

F

FF

FG

G

G

0

1

2

3

4

5

0 1 2 3 4 5

Screen Size

Portability

Screen Size vs. Portability

A

A

A

A

A

AB

B

B

B

B

B

C

C

C

C

C

CD

D

D

EE

E

E

E

F

F

F

F

GG

G

0

1

2

3

4

5

0 1 2 3 4 5

Adopter Status

Price

Adopter Status vs. Price

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Older, affluent customers are

most interested in display size and less concerned

about price. (Supporting data

suggests older readers drawn to

Kindle)

Middle aged, financially

comfortable consumers are

early adopters and are more likely to gravitate towards

the iPad for applications, color

screen.

Younger consumers tend to be early adopters but they’re cost

conscious. Might gravitate towards Kindle if it were more suitable for

students.

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

8/10/2010

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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