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Mobileyes

Team #3 – 9:35 AM Jeff Cregg Niall Fitzgerald Elizabeth Metz (Captain) Marc Anthony Rosa Anne Reilly Kelly Yuen Danny Zebrowski

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Table of Contents Chapter 1: Can We Win With This Product? 1.1 Introduction……………………………………………………………………………………………………………5 1.2 Criteria and Product Selection………………………………………………………………………………….7 1.3 Product Scorecard………………………………………………………………………………………………….12 1.4 Utility Bundle…………………………………………………………………………………………………………14 1.5 Linear Evolution……………………………………………………………………………………………………..16 1.6 Industry Life Cycle………………………………………………………………………………………………….18 1.7 Conclusion……………………………………………………………………………………………………………..19 1.8 Summary………………………………………………………………………………………………………………...20

Chapter 2: Can We Win in This Industry? 2.1 Introduction……………………………………………………………………………………………………………22 2.2 Comparative Trend Analysis……………………………………………………………………………………22 2.3 Core Trend Analysis………………………………………………………………………………………………...24 2.4 Competition…………………………………………………………………………………………………………….27 2.5 Consumer Preferences…………………………………………………………………………………………….28 2.6 Legislative Impact Analysis……………………………………………………………………………………...29 2.7 Conclusion………………………………………………………………………………………………………………30 2.8 Summary………………………………………………………………………………………………………………...31

Chapter 3: Where to Play the Game 3.1 Introduction……………………………………………………………………………………………………………33 3.2 Industry Profile – Pyramid……………………………………………………………………………………….34 3.3 Industry Profile – Pie Chart……………………………………………………………………………………...36 3.4 Industry Life Cycle Profile………………………………………………………………………………………..38 3.5 Linear Evolution……………………………………………………………………………………………………...40 3.6 Target Geographical Locations…………………………………………………………………………………41 3.7 Retail Outlets…………………………………………………………………………………………………………..43 3.8 Conclusion………………………………………………………………………………………………………………44 3.9 Summary…………………………………………………………………………………………………………..........45

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Chapter 4: Why is Our Product Bought? 4.1 Introduction……………………………………………………………………………………………………………47 4.2 What’s Wrong…………………………………………………………………………………………………………47 4.3 Decision Map…………………………………………………………………………………………………………..49 4.4 Type of Decision……………………………………………………………………………………………………...51 4.5 Trends and Hooks…………………………………………………………………………………………………...53 4.6 Attitude Scale………………………………………………………………………………………………………….54 4.7 VALs Segmentation Demographics…………………………………………………………………………...55 4.8 Maslow’s Hierarchy and Utility Bundle……………………………………………………………………..57 4.9 Conclusion……………………………………………………………………………………………………………...59 4.10 Summary: 5 W’s…………………………………………………………………………………………………….60

Chapter 5: Selection of Target Niche 5.1 Introduction……………………………………………………………………………………………………………62 5.2 Possible Niches……………………………………………………………………………………………………….62 5.3 Evaluation of Possible Niches…………………………………………………………………………………..63 5.4 Primary Niche Analysis……………………………………………………………………………………………64 5.5 Adapted Micro Analysis…………………………………………………………………………………………...66 5.6 Niche Selection………………………………………………………………………………………………………..68 5.7 Conclusion………………………………………………………………………………………………………………72 5.8 Summary………………………………………………………………………………………………………………...72

Chapter 7: Product Plan 7.1 Introduction…………………………………………………………………………………………………………… 7.2 Goals………………………………….…………………………………………………………………………………… 7.3 Strategies……………....………………………………………………………………………………………………... 7.4 What’s Wrong List……………..……………………………………………………………………………………. 7.5 Maslow’s Hierarchy of Needs..…………………………………………………………………………………. 7.6 Utility Bundle Analysis……...……………………………………………………………………………………... 7.7 Competitive Reaction Analysis………………………………………………………………………………… 7.8 Product Life Cycle……………..…………………………………………………………………………………….. 7.9 Adoption Process……………..…………………………………………..…………………………………………. 7.10 Conclusion……………..……………………………………………………………………………………………... 7.11 Summary…………………………………………………………….……….………………………………………..

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Chapter 8: Distribution Plan 8.1 Introduction……………………………………………………………………………………….. 8.2 Goals and Strategies…………………………………………………………………………….. 8.3 Needs Analysis…………………………………………………………………………………….. 8.4 Selection of Distribution Channel Structure………………………………………….. 8.5 Distribution Channel Type……………………………………………………………………. 8.6 Distribution Policies…………………………………………………………………………….. 8.7 Geographic Niche…………………………………………………………………………………. 8.8 Conclusion……………………………………………………………………………………………. 8.9 Chapter Summary…………………………………………………………………………………

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Chapter 1: Can We Win With This Product?

Table of Contents 1.1 Introduction……………………………………………………………………………………………………………5 1.2 Criteria and Product Selection………………………………………………………………………………….7 1.3 Comparative Product Scorecard Summary……………………………………………………………….11 1.4 Product Scorecard………………………………………………………………………………………………….12 1.5 Utility Bundle…………………………………………………………………………………………………………14 1.6 Linear Evolution……………………………………………………………………………………………………..16 1.7 Industry Life Cycle………………………………………………………………………………………………….18 1.8 Conclusion……………………………………………………………………………………………………………..19 1.9 Summary………………………………………………………………………………………………………………...20

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1.1 Introduction In the current struggling U.S. economy, AsTec Reading Systems, a company based in Cincinnati, is at a crossroads. The Board of Directors has decided the company needs a new, fresh start, and they looked to their marketing team in order to help them do just this. The primary goal of AsTec Reading Systems is to select a winning product. In doing so, the company hopes to generate $10 million in sales revenue with at least $4 million in profit within the first year of production. In order to select such a product, the marketing team at AsTec Reading Systems was given a number of different guidelines. The product must be new and innovative. Moreover, there must be the opportunity to improve the product in the future. It must also have a high differential advantage that will distinguish it from competitors’ products. Furthermore, it must be part of a mature industry that has a high growth rate. By entering such an industry, AsTec Reading Systems can target companies that are in maturation, and hence, obtain a share of the market that will allow them to meet their goal of $10 million in sales. This chapter chronicles the process that the marketing team went through in selecting a product. A number of steps were taken to ensure a winning product. First, the marketing team identified several innovative products, and determined the qualities they must have in order to be successful. They were then compared using a Comparative Product Scorecard that included characteristics such as affordability, ease of use, and rate of technological change. Once the team completed this scorecard, it was evident what product was most likely to be successful and meet the sales goals of the company: the one with the highest comparative score.

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Once the product was selected, AsTec Reading System’s marketing team compared it to four other similar products in the industry that were competitors. This was done with Competitive Product Scorecard. The same characteristics were compared, and it was determined that AsTec Reading System’s chosen product had a differential advantage over its competitors.

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The Mobileyes is a phone that is specifically tailored towards the visually impaired. It is a new product that will change the lives of many people due to the advantages it has over the competitors. The phone functions like any other standard phone on the market with the added feature that its menu is set up to be easier for visually impaired people to access. Unlike regular phones the Mobileyes is automatically setup to read the details that are displayed on the screen. However, that feature is not what truly sets the Mobileyes apart. The best feature of the Mobileyes is its ability to take pictures of text and then read that text aloud. The Mobileyes can read most printed documents, such as letters, magazines, books, receipts, and menus.2 It can also recognize U.S currency easily. Not only does it read the text off of photos, 1

http://www.sightandsound.co.uk/images/Mobileyes_mobile_face_small.JPG

2

"knf bReader Mobi l e." knf b Readi ng Technol ogy Inc. . N ov 2009. knf b Readi ng Technol ogy In c., We b. 25 Feb 2010. <ht t p:/ /w w w.knf breader.co m/ product s-mobi l e.php >.

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but it can store thousands of pictures in its flash memory. It is also easy to transfer files to and from computers. Along with these capabilities, the Mobileyes has the ability to use programs such as calendar, GPS, Adobe PDF, voice recorder, and music player. Also the Mobileyes highlights text as it reads the words so if it needs to, it can act as a learning tool or a translator. The Mobileyes is also customizable to best fit the person utilizing it as it the user can choose the reading speed and whether it saves photos automatically or manually.

1.2 Criteria and Product Selection Before selecting the Mobileyes as the final product, AsTec evaluated the pros and cons of a handful of products, including the four additional products listed on the Product Scorecard. In a world of technological marvel, green technology, and renewable resources, AsTec discovered a diverse, potentially selectable group of products with which to work. The five final products which were evaluated include: a solar watch, a micro filter bottle, an energy saving washing machine, a solar powered garbage compactor, and finally the Mobileyes, a product created by KNFB Reading Technologies to revolutionize access to print for anyone who has difficulty seeing or reading print, including the blind and learning disabled. The solar powered watch is a great product to sell thatâ&#x20AC;&#x2122;s energy effective and practical to use for many people. Using solar panel technology to power its multifunctional watch interface, the solar powered watch is a great product to use that has a high durability quotient. In a world of recyclability, the microfilter bottle made itself known to our group. The microfilter bottle uses a built-in filter cartridge that is attached to the cap of the bottle. This filter removes chlorine, bad taste and odor, as well as significant amounts of heavy metals such as lead, mercury and copper. Quick, renewable, and a fantastic product for the health 8


trend seen today, the microfilter bottle has potential. The third product, a take on an energy efficient washing machine, is engineered to drastically reduce electricity consumption and water waste, while improving the quality of the wash for the user and on the clothing. Our fourth product chosen is called the â&#x20AC;&#x153;Big Belly Trash Collector,â&#x20AC;? a solar powered trash collector used for cities, large buildings and shopping malls, that uses solar technology to power its compactor. The Big Belly Trash Collector compresses the trash to utilize more space for future garbage dumps. This product saves 80% space in its compartment compared to the conventional trash collector, and likewise saves 80% of trash pickup expenses due to a reduced need for pickups. In the end, the Mobileyes is the product selected. The Mobileyes, a software product engineered by KNFB Reading Technologies, revolutionizes access to print for anyone who has difficulty seeing or reading print, including the blind and learning disabled. The Mobileyes uses world-renowned reading software especially designed for and paired with the Nokia mobile phones to create a small text-to-speech reading device. The Mobileyes scores a higher average percentage on the comparative product scorecard summary, specifically within the first six primary criteria used to assess the value of the products. These criteria include (1) the value/cost ratio, (2) product protection, (3) the ease of use, (4) differential advantage, (5) the rate of technological change, as well as (6) the type and degree of competition. High Value in Use/Low Cost to Make The Mobileyes is a functional and practical product that satisfies the specific needs of the assistive technology industry consumers. Those who are visually impaired use this product to interpret text on paper though cell phone camera technology, rendering the user to

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comprehend the words written on any given paper. As the Mobileyes is integrated into Nokia mobile phones, itâ&#x20AC;&#x2122;s easy to see how this is an easy buy for individuals with visual impairment and a need for both visual and verbal communication, patterns seen consistently with other niche groups who have purchased cell phones. Aside from the language translation capabilities, the Mobileyes has unbelievable value for multiple niches, including, but not limited to, the busy on-the-go executives who wish to make documentation audible during virtually any moments, as well as the casual traveler who wishes to translate foreign text. The Mobileyes satisfies a specific need while competitively priced with other cell phones, let alone out-competing the other products selected on a value/cost basis alone. 3 Protection Both Nokia and knfbReading Technology brands, ensuring that the product has legal protection against outside copyright and patenting infringements, protect the Mobileyes through patents and patent pending. Relative to the other four products selected, especially when faced against the solar watch, the Mobileyes has more securable protection leverage against competition.4 Ease of Use The Mobileyes is extremely easy to operate. Considering the problems that would arise for the visually impaired, the Nokia cell phone is very user friendly in navigation. As the Mobileyesâ&#x20AC;&#x2122;s website information explains, the Mobile Reader products can be activated and ready to use with the touch of a single button on the phone. The user takes a photo of the print to be read and the character recognition software in conjunction with high quality text-tospeech will read the contents of the document aloud. At the same time, it can display the print 3

http://www.knfbreader.com/products-kreader-mobile.php

4

http://www.knfbreader.com/doc/6.1.9/Licensing%20Agreement.txt

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on the phone's built-in screen and highlight each word as it is spoken. This is very easy to use for anyone, especially those with disabilities that impair their ability to navigate ordinary technology.5 Differential Advantage At the present time, the Mobileyes has the first mover advantage as a breakthrough product. The Mobileyes has virtually no competition in light of the Mobileyes’ abilities, which include easy text-to-speech cell phone technology, translation and multilingual interfaces. This niche has barely seen any activity from the assistive technology industry for these product uses. The Mobileyes’ differential advantage can be seen through the nature of the industry itself – the text-to-speech camera phone technology industry is virtually brand new, and the Mobileyes is defining the industry one update at a time. 6 Rate and Technological Change The Mobileyes is software that is innovative, patented, and easily updatable. It’s the first of its kind to intertwine cell phone technology with easy-to-use text-to-speech capabilities geared towards the visually impaired. Because the Nokia Mobileyes is the industry giant at this point, the company will be able to rapidly learn what needs to be changed, and update the currently popular Mobileyes for maximum change efficiency. Type and Degree of Competition As mentioned earlier, the Mobileyes dominates the industry and has virtually no competition compared to the other selected products. From water bottles to washing machines, these industries have titans that can outsell any attempt made at improvement with stealth and ease. The Mobileyes is an up-and-coming product that already dominates the 5

http://www.knfbreader.com/doc/6.1.11/Mobile%20Reader%20User%20Guide.txt

6

http://www.knfbreader.com/doc/6.1.9/Mobile%20Reader%20Installation.txt

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newly created visually impaired assistive technology industry. The Mobileyes welcomes any competition â&#x20AC;&#x201C; the more products created, the better the Mobileyes can adjust their product to suit their usersâ&#x20AC;&#x2122; needs. Following is a summary of the Comparative Product Scorecard that explains how each

Mobileyes

BottleMicrofilter

Washing Machine

Garbage Compactor

High Value in Use/low cost to make Protection (patents, special knowledge) Ease of use Differential Advantage Rate of technological change Type and degree of competition

Solar Watch

of the six products fared when evaluated according to the criteria.

9

10

8

8

8

5 10 8 9 7

8 10 10 9 8

6 10 8 9 6

7 9 9 9 8

8 10 8 9 8

Table 1.4 Comparative Product Scorecard

Mobileyes

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Table 1.5 Comparative Product Scorecard Analysis

1.3 Product Scorecard

1. High Value in Use/low cost to make 2. Protection (patents, special knowledge) 3. Ease of use 4. Differential Advantage 5. Rate of technological change 6. Type and degree of competition 7. Unique and Trendy 8. Shelf Space at Retail 9. Prior Use Patterns 10. Affordable 11. Newness 12. Divisibility 13. Rate of Use 14. Durability 15. Life Cycle 16. Bankable 17. Fundamental Trends 18. Size of market for like products 19. Consumer purchase patterns 20. Web Friendly Total Average

Mobileyes

Intel Reader

BEYO CBS

Text Scout

eText Reader IGT

10

8

8

8

7

8 10 10 9 8 9 7 7 8 10 10 8 10 10 10 9 9 8 10 180 9

6 8 6 9 6 7 6 4 4 9 8 8 10 9 9 9 9 8 10 153 7.65

6 7 7 9 6 7 7 6 7 8 8 8 10 8 9 7 7 8 10 153 7.65

6 6 6 8 5 6 7 6 6 7 7 8 10 8 8 7 5 8 10 142 7.1

6 9 4 4 4 5 1 7 10 5 9 8 10 6 8 8 4 8 10 133 6.65

Table 1.1 Product Selection

To ensure that the chosen product, the Mobileyes, is the best product out there, it is necessary to complete a Competitive Product Scorecard. This scorecard, as shown above, compares the chosen product against the top competitors. In this case, the competition

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includes the Intel Reader, BEYO CBS, the Text Scout, and eText Reader IGT software 78910. The competitive product scorecard, through careful analysis of the products, shows where the Mobileyes has the differential advantage, as well as how and where to attack the competition with the marketing plan. The Scorecard illustrates Mobileyes’ immense competitive advantage over the competition. The Intel Reader is big and bulky, which creates a much less appealing product. Its large size makes it harder to use and harder to market. The BEYO CBS is interesting because it is being marketed as a cheap alternative. This is misleading however, for there are strings attached. The BEYO CBS’s interface is essentially inaccessible to blind users unless they also purchase a screen reader for the product such as Mobile Speak. This easily adds another $300 to the product. The Text Scout would be a good product if it were not for the fact that one needs a network connection at all times in order for it to properly function. Without an network connection (which means more money), it is useless. Finally, the eText Reader IGT is a software only product. One needs to buy an interface to run it on, which can never be as portable as the Mobileyes. The Competitive Product Scorecard shows the tremendous differential advantage over competitors that the Mobileyes has. It also shows the weaknesses of the competitors’ products, as well as highlights the strengths of the Mobileyes. These numbers will also be used later on in further analyses to show Mobileyes’ advantage.

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Beyo CBS reader: http://www.beyocbs.com/en/

8

E Text Reader IGT 5.1: http://download.cnet.com/E-Text-Reader-IGT/3000-2279_4-10285673.html

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Intel Reader: http://www.intel.com/healthcare/reader/about.htm

10

Text Scout: http://www.textscout.eu/en/

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1.4 Utility Bundle After completing the Competitive Product Scorecard analysis, a Utility Bundle analysis was performed to determine how well each of the products meets Maslowâ&#x20AC;&#x2122;s needs. The purpose of the Utility Bundle analysis is to determine the areas in which the Mobileyes has the greatest competitive advantage so that AsTec can successfully attack its competitors. The results showed that the Mobileyes has a large advantage over its competitors. Mobileyes Form Time Place Possession Image Information Total: Average:

8.75 9.40 8.50 9.50 8.60 9.17

Intel EReader 6.13 8.60 8.00 7.63 4.20 8.83

Beyo CBS Reader 7.38 8.40 4.50 7.88 7.60 4.67

53.92 0.90

43.38 0.72

40.42 0.67

TextScout 6.88 8.00 4.00 7.38 7.00 4.83

E-Text Reader IGT 5.38 7.60 8.00 7.88 5.20 4.83

38.08 0.63

38.88 0.65

Table 1.2 Utility Bundle

The Mobileyes has such a solid lead against the other products because it has a strong differential advantage as seen on the Competitive Product Scorecard as well as ranking the highest out of each utility type.

Form Utility The Mobileyes, Beyo CBS, and TextScout are all cell phones using pre-installed software, but the Mobileyes offers many more features and higher quality software than the other two. For example, the Mobileyes can read PDF formats and save large amounts of files. 11 11

http://www.knfbreader.com/products-Mobileyes-mobile.php

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The Intel Reader is large and bulky compared to the size of the cell phones. There have also been complaints that the Intel Readerâ&#x20AC;&#x2122;s interface has too many buttons. 12 These two factors detracted from the form utility of the Intel Reader. The E-Text Reader is software for the computer, thus compared to the other products, it lost a lot of competitiveness because it was not portable. Therefore the Mobileyes has a strong advantage in form utility. Time Utility All of these products work in real time, meaning when the information is received there is no delay in outputting it. The Mobileyes also manages to save the user the most time because of its multifunctional uses, such as being able to make and receive calls, retrieve saved data, and translate languages. 13 When a user of the Mobileyes saves time with the product, that person is able to compete with the rest of the world. All the other products do not have the same multi-functional features of the Mobileyes or the user must go through more screens and steps in order to do the same things. Nobody wants to waste their time switching between devices or doing more than they have to. Information Utility Compared to similar products, Mobileyesâ&#x20AC;&#x2122; technology and features stand out as the best on the market.14 Therefore the Mobileyes can provide the user with high information utility, after all the purpose of the product is to provide information to the user. With the use of its translation abilities and high quality text to speech software 15 the Mobileyes trumps the competing products because they cannot provide the same ease of information gathering. For example, the TextScout requires the user to be connected to the Internet in order for optical 12

http://blog.serotek.com/2009/11/what-i-think-about-intel-reader.html http://www.knfbreader.com/products-Mobileyes-mobile.php 14 http://www.gizmag.com/blind-and-illiterate-users-can-outsource-reading-and-translation-with-kurzweilsMobileyes/10867/ 15 http://www.knfbreader.com/products-Mobileyes-mobile.php 13

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character recognition (OCR), or reading, to take place. 16 The CBS Reader requires the additional purchase of a screen reader in order to access the interface of the phone. 17Thus Mobileyes can provide the user with the most information through its high quality software and no gimmicks product.

1.5 Linear Evolution AsTecâ&#x20AC;&#x2122;s goal is to have Mobileyes in the marketing phase with the competition in the production or selling phases. It is a huge advantage for the Mobileyes to be in the marketing phase so they can deliver what the consumer wants and satisfy their needs. Using the Trend Ratios found in the comparative scorecard the company can show which phase each product falls under.

Mobileyes

Table 1.3 Linear Evolution

1.6 Industry Life Cycle

16 17

Goff, Tom. Email interview Goff, Tom. Email interview

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Industry Life Cycle Profile ATTACK HERE!

Maturation and Decline

Introduction

.91 - Mobileyes

.47 - TextScout

Legend:

.44

- Intel Reader

.44 - Beyo CBS

.35 - EText

IGT

Table 1.6 Life Cycle

After further research in the Assistive Technology Services, our team studied the major competing firms and their respective industry life cycle stages. We looked at the various industry trends and determined how well each competitor’s product fit in the industry. As can be seen by the above Life Cycle Profile, all of Mobileyes’ competition is in the maturation stage. Not a single one of the Mobileyes’ competitors’ had a trend ratio above .5. The Mobileyes’ trend ratio was a .96, showing that is would enter the market in the growth stage. Companies in the maturation stage, such as Intel in this case, will have much different goals than companies in the growth stage, such as Mobileyes. Our company has decided to attack the large companies in maturation because of their large market share (69%) and

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relatively inactive or unaggressive role in expanding market share. They are simply looking to hold onto their customers, which should be difficult considering our productâ&#x20AC;&#x2122;s qualitative advantages and lower price tag. Companies in our stage of the Life Cycle (Introductory/Growth) will be able to take more aggressive steps in securing new customers. Once we find our way into the blind community, marketing strategies and the highly interconnected blind community will allow our company to actively build up a base of dedicated and satisfied customers.

1.7 Conclusion After a great deal of analysis, it is clear that Mobileyes will be a very successful product and the one most likely to meet the goals of AsTec Reading Systems. Its score was much higher than all of its competitors on the Competitive Product Score Card, and it stood out as the best in the other analyses as well. While the other products are adequate, the Mobileyes combines a number of features and comprehensive technology that make it the superior choice. Most importantly, it will significantly help the blind and visually impaired by allowing them to â&#x20AC;&#x153;readâ&#x20AC;? documents and texts used in everyday activities. The marketing team recommends that AsTec Reading Systems choose and develop the Mobileyes. This product features new text to speech technology and is able to be used on a small, handheld phone. Its competitors, while they may attempt to do what the Mobileyes does, are held back by either high price tags or inferior technology. Furthermore, the aging of the US population gives this product a larger customer base and contributes to the growth of the assistive technology industry. These factors will allow AsTec Reading Systems to make $10 million in sales and $4 million in profit within the first year of production. Furthermore, Mobileyes also allows for a number of improvements. If competitors ever catch up to 19


Mobileyes, AsTec Reading Systems will have already moved forward with new innovations to the product that will allow it to keep a competitive edge. Such innovations may include a solar battery charger or turning the actual technology into an application for smart phones like the iPhone. In conclusion, AsTec Reading Systemâ&#x20AC;&#x2122;s marketing team strongly believes that the Mobileyes is the best product for the company to win with.

1.8 Summary

Competitive Product Scorecard

Utility Bundle Linear Evolution Criteria and Product Selection

Life Cycle

In this analysis all the competitors of Mobileyes and the Mobileyes were tested to see which product had the competitive advantage. The Mobileyes was the highest scorer easily with a 180. It far surpassed the Intel Reader and the Beyo CBS, which tied for second at 153. The purpose of the utility bundle was to figure out which of the products best fit Maslowâ&#x20AC;&#x2122;s needs. Mobileyes came out as the top scorer as the Mobileyes has the most features, saves the most time, and has the best technology Mobileyes is the only one of its competitors that is in the marketing phase, which is important because they have to fit the consumersâ&#x20AC;&#x2122; needs. Mobileyes was selected because of its patent protection, ease of use, differential advantage, technological advantage, and the type of competition. All of the other products are in the maturation stage and therefore have different goals then the Mobileyes, which is in the growth stage. Mobileyes must attack the products in maturation

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Chapter 2: Can We Win in This Industry?

Table of Contents 2.1 Introduction……………………………………………………………………………………………………………22 2.2 Comparative Trend Analysis……………………………………………………………………………………22 2.3 Core Trend Analysis………………………………………………………………………………………………...24 2.4 Competition…………………………………………………………………………………………………………….27 2.5 Consumer Preferences…………………………………………………………………………………………….28 2.6 Legislative Impact Analysis……………………………………………………………………………………...29 2.7 Conclusion………………………………………………………………………………………………………………30 2.8 Summary………………………………………………………………………………………………………………...31

2.1 Introduction Based on the previous chapter, AsTec has concluded that Mobileyes has the potential to be a very successful product. However, the company needs to do further testing and

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research in order to determine if the company can reach the goal of $10 million in revenue through sales of Mobileyes. In order to do this, AsTec needs to better understand the industry as a whole, as well as which competitors provide the best opportunity for attack. In this chapter, AsTec compares Mobileyes to several competitors. These products represent the biggest competition and hold a significant portion of the market share. This will allow the company to go after them in a somewhat discrete way. Various methods of comparison, including the Trend Analysis, Linear Evolution analysis, and the Product LifeCycle will be used to evaluate the competitors in relation to Mobileyes. With these tools, AsTec hopes to be able to answer the question â&#x20AC;&#x153;Can We Win in this Industry?â&#x20AC;?

2.2 Comparative Trend Analysis AsTec made a list of thirty-four trends that the marketing team believes will have a significant impact on the success of Mobileyes. These trends can be grouped into eight larger categories: economic, social/cultural, technology, demographics, geographic, competition, legal issues, and consumer preference. Mobileyes and its four competitors that the team previously identified were evaluated according to whether or not they followed the trend. These evaluations were totaled and used to calculate a trend ratio. Products that have a trend ratio between 0.4 and 0.6 indicate that their company is in selling mode. Ratios below 0.4 suggest that the company is in the production mode and ratios above 0.7 indicate that the company is in the marketing mode. The Mobileyes scored a 0.91. Mobileyesâ&#x20AC;&#x2122; high trend ratio shows that it follows the current market trends, and hence, has a high chance of success. This is largely due to the fact that it is multifunctional, has strong

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technology and can be used internationally. The competitor products scored an average of 0.425. This suggests that they are in selling mode, or, in the case of one product, they are in the production mode. This suggests that they are unable to follow current market trends and they lack innovation. Their unwillingness or inability to capitalize on these trends means that they will not have significant growth in the market. The areas where Mobileyes is vulnerable center around the fact that it does not allow for web browsing and hence does not offer the use of social networking sites. Both of these trends fall under the general category of technology. AsTec will need to focus on improving these areas to ensure that Mobileyes can earn $10 million in profits during the first year.

Comparative Trend Analysis

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Mobileyes kReader

TextScout

Intel Reader

+ +

+ -

+ -

+ +

+ +

+ + + +

+

+ +

+ + -

+ +

+ + + -

+ + -

+ -

+ + -

+ -

+ + + +

+ + +

+ +

-

+ + -

+ + +

+ +

+ +

+ +

+ +

-

-

-

-

-

+ + +

-

-

-

-

+ + +

+ + -

+ +

+ -

+ + -

+ + + + + + + + + 31 0.91

+ + + + + 16 0.47

+ + + + + 15 0.44

+ + + 12 0.35

+ + + + 15 0.44

Trends Economic 1) Need vs Want 2. Cost Effectiveness Social/Cultural 3. Convenience 4. Instant Gratification 5. Environment 6. Time Saver Technology 7. Multifunctional 8. User Friendly 9. Development Potential 10. Internet Browsing Capability 11. Portability 12. Social Networking 13. GPS 14. Size 15. Memory Space Demographics 16. Aging Population 17. Globalization 18. Gender Equality Geographic 19. Use on Multiple Media Competition 20. Substitute Products 21. Differential Advantage 22. Accessories Legal Issues 23. Vehicle Safety Laws 24. Disability Laws 25. Safe Patents Consumer Preferences 26. High Quality Text to Speech 27. Value and Reuse 28. Aesthetic Value 29. Customizable 30. Reduced Eye Strain Screen 31. Customizable Preferences 32. Rechargable 33. Accessible Upgrade 34. Ease of International Use Total (out of 34) TREND RATIO Figure 2.2 Trend Analysis

E Text Beyo CBS Reader Reader

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2.3 Core Trend Analysis After analyzing the trends in the industry, AsTec decided that it needed to identify and predict the core trends driving the industry. The current core trends in the assistive technology industry are size, customization, and multifunctional ability. The projected future trends in this industry are globalization (universal trends) and upgrades.

Size: Assistive technology products can be separated into two use categories, portable and non-portable. In order to keep up with the dynamic environment requiring independent living, portable products have been in higher demand.18 The eReader is big and bulky, weighing about one pound whereas the Mobileyes is a small and light Nokia cell phone. The size and weight of Mobileyes makes it much more attractive compared to the competing products.

Customizable: Each user has his or her own unique needs and AsTec recognizes that with assistive technology products most perfectly fit their users in order to get high utility and ultimately succeed in the market. Mobileyes can not only adjust text read back speed and voice, but it can also read in different languages and saves user preferences in settings, making memory card switching easy as possible.19 Instead of the user fitting the product, AsTec will make the product fit the user.

Multifunctional: Mobileyes is more than a reader for the visually impaired, it can be used as a phone, 18

http://www.eschoolnews.com/2009/12/03/five-key-trends-in-assistive-technology/

19

http://www.knfbreader.com/products-Mobileyes-mobile.php

25


contact and calendar manager, basic translator, and reading aide. 20 As Mobileyes reads the text, it highlights each word being read so users with dyslexia or those learning how to read can focus better. One of the main goals of Mobileyes is to allow its users to live independently, and it can do just that.

Globalization: The world is becoming increasingly integrated, and AsTec knows that its core users will want the same thing. As a first step to that process Mobileyes comes with a translator. Users can take pictures of texts in different languages and Mobileyes will read it back into any supported language of choice. Currently, optical character recognition technology works with Romanized characters, so Mobileyes supports 17 languages ranging from Spanish and French to Turkish and Norwegian.

Upgrades: Unlike the eReader and other competing products, Mobileyes can be updated without having to purchase another form of the product, like newer generations of iPods. Technology is constantly being updated and improved, and AsTec wants to provide its customers with the best technology possible. AsTec knows that in order to succeed in the market, companies and products must be able to adapt to changes in technology and trends.

2.4 Competition21 20

http://www.knfbreader.com/products-Mobileyes-mobile.php

21

Beyo CBS reader: http://www.beyocbs.com/en/

26


2.5 Consumer Preferences When determining whether or not AsTec can win in this industry it is essential to

E Text Reader IGT 5.1: http://download.cnet.com/E-Text-Reader-IGT/3000-2279_4-10285673.html Intel Reader: http://www.intel.com/healthcare/reader/about.htm Text Scout: http://www.textscout.eu/en/

27


explore consumer preferences. In order to gain a greater understanding of consumer preferences AsTec searched through some consumer reviews of Mobileyes and its competitors.22 The first thing the company must look at is ease of use. Mobileyes, unlike its competitors, is extremely easy to use and has easy to follow, thorough instructions. This was a major concern for many consumers who either own or have sampled the competitor’s products such as the TextScout of the Beyo CBS Reader. This is certainly an area where Mobileyes can beat the competition. Many consumers stressed concerns about the size and portability of their reading systems. With Mobileyes being roughly the same size as a standard cell phone, mobility and size is not an issue. Some of the competitors’ products are very much on the large and heavy side. Many consumers also felt that the TextScout, BeyoCBS and Intel Reader’s screen was too small and difficult to read. Whilst Mobileyes is similar in size to a cell phone, it still has a large and easy to read screen. Some other features which consumers were interested in were: the ability to take a clear picture of the text, the quality of the voice and battery life. Again, Mobileyes, unlike the competition, has long battery life, takes a clear picture and has a high quality voice playback. Through this research AsTec has found out exactly what the consumers like and dislike about the product and its competitors. With this information AsTec is confident that Mobileyes has the ability to satisfy the consumer’s needs and preferences.

2.6 Legislative Impact There are many social and legal forces that will help propel Mobileyes to the forefront 22

http://www.nfbnet.org/pipermail/reader-users_nfbnet.org/2009-November/009238.html

28


of the market. Many laws are already in place that support the disabled and are created to make life normal for the disabled. One important federal law is the one mandating that the telecommunications industry create ways for the blind to communicate between states. 23 It is important that the visually impaired have access to nationwide communication, which is where Mobileyes can benefit. Federal regulations mandate that the National Library service must provide sound reproductions for use by the visually impaired. 24 This is important because it shows the trend towards making things more accessible to the visually impaired. One of the biggest social forces that is making products like Mobileyes more accessible to the public is the Association of Blind Citizens. The association operates the Assistive Technology Fund, which is a grant that pays 50% of the retail price of a piece of assistive technology. The equipment must cost between $200 and $6000 and people must apply for the grant. 25 These show that society is putting an emphasis on letting the blind live a normal life by giving them the assistance they need.

Americans with Disabilities Act of 1990 • Forces telecommunications networks to accommodate visually impaired Title 36 Code of Federal Library Regulations

9 6

Forces libraries to have sound reproductions of books for blind Assistive Technology Fund 9 • Allows for the purchase of assistive technology at half price 23 " Ameri cans wi t h Di sabi li t i es Act of 1990." Fl ori da Di vi si on of Bl i nd Servi c es . 02 Mar 2009. Fl ori da Di vi si on of Bl i nd Servi c es, We b. 26 Feb 2010. <ht t p:/ / dbs.myf l ori da.com/ l aw s/ ADA.php >. 24

" Ti t l e 36 C ode of Federal Regul at i ons." Fl ori da Di vi si on of Bli nd Ser vi ces . 02 Mar 2009. Fl ori da Di vi si on of Bl i nd Servi c es, We b. 26 Feb 2010. <ht t p:/ / dbs.myf l ori da.com/ l aw s/ l i brary-regul ati ons.php>. 25

" Assi sti v e Technol ogy Fund." Associ ati on of Bl i nd Ci t i zens . Associ at i on of Bl i nd Ci t i zens, We b. 26 Feb 2010. <ht t p:/ / ww w.bl i ndci t i zens.org/ assist i ve_t e ch.ht m>.

29


2.7 Conclusion

After analyzing the life cycle, industry structure, trend rations, and linear evolution, AsTec is sure they can succeed in this industry. It is clear that Mobileyes has significant advantages over the competition. In all aspects, it appears that Mobileyes is poised to enter the industry and do well. Therefore, one can conclude that Mobileyes can in fact win in the Assistive Technology Industry.

2.8 Summary

30


Comparative Trend Analysis Core Trend Analysis

-

Competition

Consumer Preferences

Legislative Impact

-

Competitor products scored an average of 0.425 Mobileyes scored 9.1 Current core trends: size, customization, and multifunctional ability Projected future trends: Globalisation Intel Reader BeyoCBS TextScout E-Text Reader IGT Easy to use Mobile Large Screen Voice Quality Long Battery Life Americans with Disabilities act 1990 Title 36 Code of Federal Library Regulations Assistive Technology Fund

31


Chapter 3: Where to Play the Game

Table of Contents 3.1 Introduction……………………………………………………………………………………………………………33 3.2 Industry Profile – Pyramid……………………………………………………………………………………….34 3.3 Industry Profile – Pie Chart……………………………………………………………………………………...36 3.4 Industry Life Cycle Profile………………………………………………………………………………………..38 3.5 Linear Evolution……………………………………………………………………………………………………...40 3.6 Target Geographical Locations…………………………………………………………………………………41 3.7 Retail Outlets…………………………………………………………………………………………………………..43 3.8 Conclusion………………………………………………………………………………………………………………44 3.9 Summary…………………………………………………………………………………………………………..........45

3.1 Introduction

32


With its use of innovative technology, clear differential advantage, and customizability, Mobileyes can win in the assistive technology industry and earn $10 million in sales in its first year on the market. In order to do that, AsTec Reading Systems must decide where to market Mobileyes, or figure out â&#x20AC;&#x153;where to play the gameâ&#x20AC;?. The goal of this chapter is for AsTec Reading Systems to determine where Mobileyes should be marketed and who are its major competitors. AsTec will attack the large sized firms who hold 69% of the industry market share in this $2 billion industry.26 The competitor companies manufacture products similar to Mobileyes but are in the maturation stage and thus vulnerable for attack. This chapter will also employ the use of several other market analyses, including an industry pyramid, industry pie chart, industry life cycle, linear evolution analysis, geographical analysis, and a retail market sales analysis to further explore the target industry. These analyses will help reveal the best market for Mobileyes. The graphical interpretations in this chapter are designed to describe and define the Assistive Technology market, as well as identify the location in which AsTec should enter. The first two charts describe the make up of the Assistive Technology industry and the major companies in this market. The third graph is a Life Cycle Industry Profile, showing the varying levels of maturation for Mobileyes main competitors, The fourth graph is a Linear Evolution, which separates the companies into different life stages. Lastly, this chapter uses a map of the United States to geographically show where AsTec can optimize marketing strategies to gain the most sales. Using these and other compiled market analyses, assembled using Mintel and IBISWorld business databases, AsTec Reading Systems should be able to 26

http://www.bis.doc.gov/defenseindustrialbaseprograms/osies/defmarketresearchrpts/assisttechrept/7_salesreve nues.htm

33


locate the most marketable areas for Mobileyesâ&#x20AC;&#x2122; market entry.

3.2 Industry Profile â&#x20AC;&#x201C; Pyramid

Figure 3.1 Industry Pyramid

Industries can usually be separated into three segments when it comes to company size: large, medium and small. The industry can essentially be thought of as a pyramid. The top tier is composed of large companies, the middle section contains mid-sized companies, and the base is made up of small companies. Therefore, as the number of companies increases, the 34


actual size of the company decreases. The Assistive Technology Industry follows this pattern. According to an overview of the industry by the U.S. Department of Commerce 27, the industry is not cohesive and is made up of hundreds of companies. Most of these companies are small with 60% of them reporting that they have ten or fewer employees. However, 69% of the profits of the industry are concentrated at the top of the pyramid among 11 firms. The mid-sized companies account for 20% of the profits while small companies control the remaining 11%. Although the large companies control the majority of industry profits, the report suggests that the income that these companies receive from the sale of assistive technology, such as Mobileyes, is a very small percentage of their total income. An example of such a company would be Intel, which makes and sells many products that are not part of the assistive technology industry. Furthermore, the report also suggest that the large companies that control the majority of industry profits mostly engage in the manufacturing and assembly of products. This means that they are not in the marketing mode of business and hence are in maturation. This is a perfect opportunity for AsTec Reading Systems to attack the upper tier of the pyramid. The marketing team believes that targeting the large companies in the assistive technology industry will be the best way to achieve our goal of $10 million in profits within the first year. These companies make a great deal of money and do not concentrate all of their resources in the assistive technology industry. Therefore, if AsTec Reading Systems were to take away $10 million in revenue, it would go relatively unnoticed, and would not provoke unwanted attention from these giant companies.

27

Technology Assessment of the US Assistive Technology Industry. US Department of Commerce. http://www.icdr.us/atreportweb/index.htm

35


3.3 Industry Profile â&#x20AC;&#x201C; Pie Chart The Industry Pie is an incredibly important tool to use in assessing how the company should address competition. The Industry Pie is comprised of a visual chart, split up into several categories based upon the market distribution of products similar to the

Figure 3.2 Industry Pie

36


Mobileyes. In this instance, the Industry Pie addresses the market distribution in the assistive technology industry, dividing the market between Intel, AssistiveWare, Connective Technology Solutions, Claro Software, Elumo GmbH, Beyo CBS, and Premier Assistive Technology. The research made shows that the Industry Pie contains three major pie slices to consider when attacking a particular distribution. Based upon research, Connective Technology Solutions and Claro Software share 20% of the market, Elumo GmbH, Beyo CBS and Premier Assistive Technology share 11% of the market, and most importantly, Intel and AssistivWare combined share a staggering 69% of the market 28. It’s this large subset of the industry where AsTec will attack with Mobileyes. As suggested in the Industry Pyramid section, it’s important to note that attacking a large company with a large market ownership will be extremely important for AsTec Reading Systems. Because such large companies distribute their product interests over many different product niches, attacking this section of the industry will not crush the companies’ primary interests. As a result, Mobileyes will most likely not be a recognizable threat. On top of this, it is important for AsTec Reading Systems to address a sizably large industry percentage to 28

Technology Assessment of the US Assistive Technology Industry. US Department of Commerce. http://www.icdr.us/atreportweb/index.htm

37


jumpstart sales and reach the widest possible customer pool. As a result, AsTec Reading Systems will attack this 69% market slice.

3.4 Industry Life Cycle Profile After further research in the Assistive Technology Services Industry, the AsTec marketing team studied the major competing firms and their respective industry life cycle stages. After looking at the various industry trends, it is obvious

Mobileyes

Figure 3.3 Industry Life Cycle Profile

38


how well each competitor’s product fits in the industry 29. As can be seen by the above Life Cycle Profile, all of Mobileyes’ competition are in the maturation stage. Not a single one of Mobileyes’ competitors’ had a trend ratio above .5. Mobileyes’ trend ratio was a .96, showing that it will enter the market in the growth stage. Companies in the maturation stage, such as Intel in this case, will have much different goals than companies in the growth stage, such as the Mobileyes. AsTec Reading Systems has decided to attack the large companies in maturation because of their large market share (69%) and relatively inactive or unaggressive role in expanding that market share. They are simply looking to hold onto their customers, which will become difficult considering Mobileyes’ qualitative advantages and lower price tag. Companies in our stage of the Life Cycle (Introductory/Growth) will be able to take more aggressive steps in securing new customers. Once we find our way into the blind community, marketing strategies and the highly interconnected blind community30 will allow our company to actively build up a base of dedicated and satisfied customers.

3.5 Linear Evolution The linear evolution chart depicts whereabouts in the marketing stage the Mobileyes and its competitors lie. The chart shows that the Intel Reader 31, Beyo CBS32 and the E-text 29

"Technology Assessment of the U.S. Assistive Technology Industry." <Bureau of Industry and Security U.S. Department of Commerce. http://www.bis.doc.gov.> Accessed 1/31/10 30

American Association of the Deaf-Blind. <http://www.aadb.org/deaf-blind_community/2008-1219_spotlight.html> 31

http://www.intel.com/healthcare/reader/about.htm

32

http://www.beyocbs.com/en/

39


reader IGT33 are all in the selling phase with the TextScout 34 still in production. These companies appear to have failed to engage in any aggressive

Mobileyes Figure 3.4 Linear Evolution

marketing strategy and are essentially hoping for their individual products to sell themselves. Aside from Intel, this strategy has faired poorly. Despite the fact that the Intel Reader occupies a large majority of the market, because Intel is such a large and successful company, it is not a main priority for the company. Mobileyes is our main priority and a correct marketing strategy coupled with our superior product will lead to a successful attack on Intelâ&#x20AC;&#x2122;s share in the market.

3.6 Target Geographical Location In the assistive technology industry, the amount of sales in a given area tends to depend on the number people in need of that particular technology. Certain states, for example, have higher percentages of people with visual impairments. Hawaii, California, 33

http://software.techrepublic.com.com/abstract.aspx?docid=738677

34

http://www.textscout.eu/en/

40


Florida, Minnesota, and Ohio are five of the states with the highest percentage of visually impaired residents.35 Within these 5 states, California, Minnesota, and Ohio have the highest current total sales for assistive technology with California leading the pack at $447,807,000. The Midwest is by far the leading region in percentage of assistive technology

Figure 3.6 Geographical Pie

sales with 54% of the market. 36 The high sales totals will allow AsTec Reading Systems to quietly take a part of the market share. Therefore, these are the three states we have chosen to focus our resources on.

35

http://www.preventblindness.net/site/DocServer/VPUS_2008_update.pdf?docID=1561

36

<http://www.bis.doc.gov/defenseindustrialbaseprograms/osies/defmarketresearchrpts/assisttechrept/7_salesrevenue s.htm>

41


Figure 3.7 Geographical Map

3.7 Retail Outlets Selling electronic products for the visually impaired is different from selling other electronics. While most electronics can be sold through any type of reseller, an â&#x20AC;&#x153;Assistive Technology electronic productâ&#x20AC;? is mainly sold through individual retailers who specialize in selling products for people with disabilities. Therefore, Mobileyes will be sold through individual retailers and websites dedicated to visually impaired technologies. In order to present Mobileyes to all potential customers, the Internet must be utilized because of its wide use as a product research tool. Much of product recognition will be through word of mouth in the blind community. This makes it vital to work through the major resellers in each identified state. Also, the reader will be placed in stores in and around the centers for the visually 42


impaired of each state37.

3.8 Conclusion In order for AsTec to succeed in marketing Mobileyes, the large sized firms in the Assistive Technology industry should be targeted. The industry is in need of an innovative and technologically advanced product like Mobileyes that assists in independent living for the visually impaired. Mobileyes not only will fulfill that need but also generate enough buzz to create interest in other industries. Those products that are in some way similar to Mobileyes are all in the “maturity” stage of the Product Life Cycle and have failed to gain any significant market interest. The competitors’ market shares are vulnerable to new products in the introduction stage of the Life Cycle, such as Mobileyes. Competing companies and their products are in the selling and production mode, therefore they have not made an active attempt to gain more attention to their individual products. This weakens them in the fight for market share. Mobileyes is in the “marketing” stage of development and is ready to attack this segment of the market. AsTec should market the Mobileyes in the Ohio, Minnesota, and California. Market research shows that a cross-reference between the states that spend the most on assistive technology products as well as have the largest percentage of the blind community will make up the majority of the market. Since the visually impaired do not pay much attention to visual advertisements, AsTec will market through word of mouth, at conventions, and at trade shows. Finally, AsTec should plan to sell Mobileyes through reputable resellers, specialty 37

"Vi sAbi l i t y." Vi sAbi l i t y St ore . 25 Feb 2010. Vi sAbi li t y, We b. 25 Feb 2010. <ht t p:/ / ww w.vi sabil i t yst ore.org/ i ndex.ht m >.

43


stores for the visually impaired, and online.

3.9 Summary Industry Pyramid

Industry Pie

Product Life Cycle Linear Evolution Analysis

Geographical Map

Retail Outlet

69% of the market is dominated by the large companies in the Assistive Technology industry. AsTec Reading Systems should attack this market segment. Large companies will not notice if we take part of their sales, particularly Intel because this is not their main industry. Attack companies in maturation. Most competing firms are in the selling mode and one is still in the production mode. AsTec will easily dominate because AsTec is the only one in marketing mode. Ohio, Minnesota, California make up the biggest potential market. This is known through cross-referencing demographics on the assistive technology market and the blind community. Assistive technology is best advertised by word of mouth since the visually impaired community is very well connected

44


Chapter 4: Why is Our Product Bought?

Table of Contents 4.1 Introduction……………………………………………………………………………………………………………47 4.2 What’s Wrong…………………………………………………………………………………………………………47 4.3 Decision Map…………………………………………………………………………………………………………..49 4.4 Type of Decision……………………………………………………………………………………………………...51 4.5 Trends and Hooks…………………………………………………………………………………………………...53 4.6 Attitude Scale………………………………………………………………………………………………………….54 4.7 VALs Segmentation Demographics…………………………………………………………………………...55 4.8 Maslow’s Hierarchy and Utility Bundle……………………………………………………………………..57 4.9 Conclusion……………………………………………………………………………………………………………...59 4.10 Summary: 5 W’s…………………………………………………………………………………………………….60

4.1 Introduction If AsTec wants to properly market the reader, the company must understand what the

45


consumer thinks when they go out to buy a product like ours. This chapter will provide the information needed to understand why the product would be bought. AsTec will evaluate the buying decision process as well as the type of decision made in the buying process. They will also analyze what is wrong with the existing products, how they can take advantage of these flaws, why Mobileyes is bought, the “hook”, the VALS profile, the Maslow/Utility bundles, and a summary on buying behavior. This chapter will provide an in-depth look at all of these factors and how they relate to each other.

4.2 What’s Wrong In order to compile the What’s Wrong List for Mobileyes and its competitors, AsTec used information from both professional and consumer review sources. 38 These provided the criteria used to analyze all four competitor’s products. It is important to know where the competitors are lacking in order to make Mobileyes the best product that it can be. There are several areas where Mobileyes satisfies customers and the competition does not. For example, consumers that have tried the other products, such as the TextScout or Beyo CBS Reader, complain that it is difficult to use and navigate. This is not the case with the Mobileyes. Similarly, the size of competitive products like the Intel Reader is a concern for some consumers. They believe that it is too large and heavy. Mobileyes is the size of a small cell phone and hence, is quite mobile. Through analysis of this list, it became clear that Mobileyes does have a few weaknesses. One area in which it falls short is the fact that it does not have a WIFI connection. With the growing trend of Internet on the go, consumers expect their technology to be able to 38

"Intel Makes Leap in Device to Aid Impaired Readers" Wall Street Journal. "Reader Users-Anyone Tried This?" http://www.nfbnet.org/pipermail/reader-users_nfbnet.org/2009November/009238.html "VIPhone." http://groups.google.com/group/viphone/browse_thread/thread/51638754e81b58f6.

46


connect to the Internet. This is certainly a feature that AsTec could explore adding to Mobileyes in order to make it better. Another weakness of Mobileyes is that it is only sold in specialty stores as of now. However, AsTec plans on selling it over the Internet so that concern is fairly minor. Evaluating each criterion is very valuable in AsTec’s quest to make a stronger product. What's Wrong? 1. Does not read all text 2. Does not read handwriting 3. Not cost effective 4. Does not have WIFI 5. Screen is too small 6. Short battery life 7. Learning curve 8. Large 9. Difficult to use 10. Poor voice quality 11. Slow WIFI connection 12. Privacy Issues 13. Poor instructions 14. Only available from specialty stores 15. Difficult to take clear photo Total Percentage

Mobileyes

TextScout Reader

Beyo CBS Reader

X

X

X

X

X

-

X

X

X

X

-

X

X

X

-

X

-

X

X

X

-

X

X

X

-

-

X X X

X X X

X X X X

X X X

-

X

X

-

X

-

X X

-

-

X

-

-

X

-

X

X

X

X

X

-

X 73.33%

-

20.00%

X 80.00%

X 80.00%

Intel Reader E Text Reader IGT

60.00%

Figure 4.2 What’s Wrong Chart

4.3 Decision Map 47


When AsTec considers selling Mobileyes, it must carefully evaluate the consumer’s buying decision process. Consumers don’t just buy random products for no reason. Consumers go through a entire problem solving process in order to decide what products they want or need. This problem solving process is the consumer’s buying decision process. AsTec Reading Solutions must understand the buying decision process that goes into buying Mobileyes. The company will evaluate the factors that most affect this process for consumers that purchase products similar to Mobileyes. It is important to identify who initiates the purchase of Mobileyes, who influences the consumer in their buying decision, where the consumer can interact with Mobileyes, and who the gatekeepers are. When these factors are applied to Mobileyes it is apparent that Mobileyes has a different set of factors than normal products. The initiators for Mobileyes are mainly the visually impaired. Mobileyes is specifically geared to the visually impaired but the other main qualities of the initiators are that they are Caucasian, can be male or female, and are in the middle class income bracket.39 These people are mainly located in Minnesota, California, and Ohio. The influencers are the associations for the visually impaired such as the American Foundation for the Blind and the National Association for the Visually Handicapped where people can find out about Mobileyes from other members. Product Reviews online will definitely influence the consumer’s decision on which product to purchase. Sellers will also influence the consumer in buying the product as well as the consumer’s peers. Consumers can have interactions with Mobileyes by noticing one of their association members or one of their peers using it and wanting to try it out for themselves. The big gatekeepers are the consumers themselves 39

" Fact s and Fi gures on Adult s w i t h Vi si on Loss." Ameri can Foundat i on f or t he Bl i nd . 2008. Am eri can Foundat i on for t he Bl i nd, We b. 25 Feb 2010. <ht t p:/ / ww w.af b.org/ Sect i on.asp? Se ct i onID=15 &Topi cID =413 &Do cum ent ID =4900>.

48


because ultimately they decide what they want or what is best for them. The other gatekeepers are brand pressure, which would mean buying the big name brand such as Intel, and spouses can play a role in gate-keeping as well. The chart below breaks these factors down into the simple four categories. Initiators

Influencers

Interactions

Gatekeepers

Figure 4.3 Decision Map

• • • • • • • • • • • • • • • • • •

Male and Female Caucasian Married or with Partner Minnesota, California, Ohio Visually Impaired 35 – 55 $25,000 - $99,999 American Foundation for the Blind National Association for the Visually Handicapped Product Reviews Sellers Peers Association Members Sellers Peers Spouse Brand Pressure Self

4.4 Type of Decision The potential consumer base for Mobileyes can be divided into four classifications. The first section is divided into consumers who own and use competitors’ products. Intuitively, this first group of consumers is not AsTec’s main target group as they will more than likely not be interested in purchasing Mobileyes. They have made a pre-programmed decision to purchase the competitors product. This coupled with a low cognitive dissonance suggest that these consumers will be unwilling to try new products such as Mobileyes. AsTec should not target

49


these consumers as they are happy with an alternative product and are unwilling or perhaps do not need to try new products. However, since there is no product with a strong foothold in the industry, AsTec will not face many consumers falling into this decision category The second group of consumers will be a better target market for AsTec. This second group is comprised of consumers who own and use a competitors’ product but are unsatisfied with its performance. Mobileyes which is vastly superior to its leading competitors’ can help this consumer group by providing them with a product that will satisfy their needs. Mobileyes out performs its competitors’ and also excels in areas where its competitors’ fail. The other section of consumers is comprised of those who do not own a competitors product. Within this section, there is the first group, that was mentioned above, consisting of those who are interested in such a product or those who need assistive technology. This group has a high cognitive dissonance and so will search for the best product that most fits their lifestyle. AsTec will heavily target this group in order to get them hooked on Mobileyes. The Type of Decision chart below illustrates this process and the two categories, which AsTec will target.

50


Figure 4.4 Type of Decision Chart

4.5 Trends and Hooks Trends and Hooks can have an enormous influence on the overall success of a product. AsTec is confident that this will be the case for Mobileyes. The growing trend of the need for mobile technology on the go in todayâ&#x20AC;&#x2122;s busy lifestyle will boost the success of our product. Similarly, people are growing more and more education conscious. This trend will also have a positive effect on Mobileyesâ&#x20AC;&#x2122; sales.

51


4.6 Attitude Scale The attitude scale is a combination of the Trend Ratio and the What’s Wrong Ratio. The attitude scale is primarily concerned with the level of satisfaction customers have with the product as opposed to the competitors’ products. If a product falls on the negative end of the scale, it generally indicates that customers are, on the whole, unhappy with it. Conversely, if a product falls on the positive end, it generally indicates that customers are mostly happy with it. Therefore, AsTec’s goal as a company is to have Mobileyes fall as far on the positive end as possible. As one can see from the scale, customers are for the most part unhappy with Mobileyes’ competitors. All four fall on the negative side of the scale. Mobileyes, however, earned a positive rating. In particular, the Intel Reader’s low score, combined with its large stake in the market share, make it a good competitor for Mobileyes to attack.

52


Mobileyes

Mobileyes

Figure 4.6 Attitude Scale

4.7 VALs Segmentation Demographics The VALs Segmentation framework is a psychographic segmentation developed to place adult consumers into one of eight segments. VALs, which stands for “Values, Attitudes, and Lifestyles,” is a framework that define consumers’ behaviors based upon primary motivation and resources. Through these analyses, the VALs Segmentation framework divides the consumer into eight different segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, and survivors. The VALs Segmentation Framework is an important tool for helping individuals

53


address what types of consumers they are, but more importantly, for helping companies and industries pinpoint their specific customer type. Applied to the AsTec Reading Systems’ demographic and behavior analysis, the eight different types of VALs Segmentation consumers are ascribed a ranking from 1 – 8, 1 representing “most likely a consumer” and 8 representing “least likely a consumer.” Through subjective analyses conducted by the AsTec’s team compared to the descriptors, Mobileyes would most likely fit into the “Innovator” demographic. The VALs Segmentation framework defines an Innovator as a sophisticated, in charge and curious person. More specifically, the Innovator’s primary use for the product is too quickly and efficiently process news, emails, and information primarily for work. Because Mobileyes is a tool made not for any specific hobby or occupational niche, but as a very specific niche necessity, the VALs Segmentation framework is a tool used to address the other niches outside of the blind community. The Innovators are busy, multi-tasking individuals who need tools to help optimize productivity and reduce information noise. The Innovator’s specific use for Mobileyes is to use it as a reading tool when on-the-go, when overwhelmed with email, and when needing to consolidate work information in an audible fashion. After concluding our assessment, we’ve found that the Innovator is the primary demographic according to the VALs Segmentation framework.

54


Demographic Innovator Thinker

Believers

Descriptors Sophisticated, in charge, curious Informed, reflective, content

Experiencers

Literal, loyal, moralistic Goal oriented, brand conscious, conventional Contemporary, imitative, style conscious Trend seeking, impulsive, variety seeking

Makers

Responsible, practical, self-sufficent

Achievers Strivers

Uses of AsTek Product Quickly and efficiently process news, emails, information primarily for work Listen to books and news anywhere Listen to messages, Bible, and other information when driving, picking up family

Ranking

Process work-related information to gain the upper hand in work Remember certain articles and pieces of information when on-thego Translate languages and assist during travel Read off instructions and information when working and creating Get vital information without having to read it; make processing information easier to do

Nostalgic, constrained, Survivors cautious Figure 4.7 VALs Segmentation Demographics/Behavior Analysis Applied to the AsTec product

1 2

7 4 5 3 8

6

4.8 Maslow’s Hierarchy and Utility Bundle Mobileyes scored highest in meeting consumers’ safety and esteem needs. Mobileyes is aimed at helping the visually impaired navigate their way through society. With such high safety and esteem ratings, it seems that this product does just that. Consumers and family members will be able to rely on Mobileyes’ assistance, which will allow them to live more independently. For example, users will be able to tell which prescription bottle is the correct one to take. As shown by Maslow’s Chart, a higher degree of independent living results in higher self-esteem. Users of Mobileyes will be able to do more things than they originally could, such as being able to read memos, product labels, and even brand names. Consumers

55


and their families can count on Mobileyes to provide a higher quality of life with more safety and independence. Mobileyes is small, durable, unique, and lightweight. It is a sleek and easy to use computer with high functionality. Although the product has very high value utilities in all categories, it has the highest in Information and Time utilities. Itâ&#x20AC;&#x2122;s extremely high utility in Time is because of the time it saves users. No longer will blind members of the community need to find someone to help them read something. No longer will they need to rely on Braille to read objects. This easy to use product puts an end to time inefficiencies. In terms of Information utilities, this product rates very high as well. This is because of its high differential advantage. No other product can do what Mobileyes can without a connection to a WiFi network, or a big bulky machine. It is a unique and valuable product. Maslow's Hierarchy Physiological Needs 8.85

Safety 9.8

Social 8.67

Esteem 9.3

Product Rating Ease of use Rate of use Web friendly Divisibility Shelf space at retail Size of Market for Like Products Durability Type and Degree of Competition Newness Web friendly Bankable Differential advantage Unique and trendy Affordable Divisibility Life cycle Shelf space at retail Web friendly Prior use pattern Life cycle Differential advantage Newness Consumer purchase patterns

10 8 10 8 7 9 10 8 10 10 10 10 9 8 10 10 7 10 7 10 10 10 8

Utility Bundle Time 10 Possession 9.8

Information 10

Place 9.8

Image 9.5

56


Self-Actualization 9.17

Affordable Fundamental Trends Unique and Trendy Protection Durability High Value in use/low cost to make Divisibility Rate of technological change

9 9 9 8 10

Form 9.8

9 10 9

Figure 4.8 Maslow’s Hierarchy

4. 9 Conclusion This chapter was dedicated to researching why Mobileyes will be bought and what the consumer thinks about when purchasing such a product. It was important that every aspect of the consumer’s thought process was accounted for or else a vital aspect could have been overlooked. Through the utilization of the evaluation of the consumer buying decision process, the decision making process used in the purchase, the what’s wrong analysis, the selective perception strategy, the key decision factors, the hooks, the VALS profile, and the Maslow/Utility bundles. Now AsTec can craft a marketing strategy towards the chosen target area with a complete understanding of the consumer and the competitors This will help the company ensure that consumers will realize the advantages of Mobileyes and will purchase it.

4.10 Summary: Five W’s5

57


What?

Mobileyes allows the blind or visually impaired a greater amount of independence. They simply take a photo of text and the Mobileyes reads it back to them while simultaneously highlighting words as it reads. This technology, which works on a Nokia cell phone, can translate text into over 15 different languages. The device also comes equipped with GPS.

Who?

• Male and Female • Caucasian • Married or with partner • 35 - 55 • $25,000 - $99,999

When?

AsTec Reading Systems will launch Mobileyes in October or November since the holiday season (November and December) witness the highest sales for eReaders.

Where?

• California, Ohio, Minnesota • Resellers (individual retailers) • Online (www.AsTek.com) • State stores at Centers for visually impaired

Why?

Mobileyes is superior to its competitors in the following areas: • Ease of use • More accurate • Size • Technological Advantage

58


Chapter 5: Selection of Target Niche

Table of Contents 5.1 Introduction……………………………………………………………………………………………………………62 5.2 Possible Niches……………………………………………………………………………………………………….62 5.3 Evaluation of Possible Niches…………………………………………………………………………………..63 5.4 Primary Niche Analysis……………………………………………………………………………………………64 5.5 Adapted Micro Analysis…………………………………………………………………………………………...66 5.6 Niche Selection………………………………………………………………………………………………………..68 5.7 Conclusion………………………………………………………………………………………………………………72 5.8 Summary………………………………………………………………………………………………………………...72

5.1 Introduction

59


Now that AsTec has identified why Mobileyes will be bought, the company needs to narrow down who they will market the product to. In this chapter, AsTec will use a variety of methods to determine which hobbies and occupations will benefit the most from Mobileyes. In order to do this, AsTec must first come up with a list of 15-20 possible hobbies and occupations as well as a list of Mobileyes’ attributes that are likely to affect the buying decisions of these groups. With that information, AsTec will be able to tailor its marketing program to fit that particular niche.

5.2 Possible Niches In order to find the ideal niche for Mobileyes, AsTec compiled a comprehensive list of possible hobbies and occupations. It was vital that the company start off with a long list in order to guarantee that no possibilities were overlooked. After consulting hobby and occupation databases online, the following list was finalized. Although it contains a large number of niches, each could apply to Mobileyes. A number of the hobbies/occupations listed have to deal with helping those who are visually impaired. Others on the list focus on travelers and language enthusiasts that could utilize Mobileyes’ translation capabilities. And most of the rest are hobbies or occupations that require a good amount of reading. 1. 2. 3. 4. 5. 6. 7. 8. 9. 40

Potential Hobbies and Occupations4041 Blind Readers 10. Traveling Enthusiasts CEOs/Business People 11. Children Learning to Read Language Students 12. Commuters Disabled Students 13. Older Generation Church-goers Veterans 14. Lawyers Cooking Enthusiasts 15. Fishermen Book Club Members 16. Tutors Professors/Teachers 17. College Students Classroom Aids 18. Food Critics

“List of Hobbies” http://www.notsoboringlife.com/list-of-hobbies/

41

“Occupational Employment Statistics” US Bureau of Labor Statistics http://www.bls.gov/oes/current/oes_alph.htm

60


Figure 5.1 Potential Hobbies and Occupations

5.3 Evaluation of Possible Niches It is necessary to narrow this list down in order to focus on and further evaluate just 15 hobbies and occupations. In order to determine which hobbies and occupations AsTec Reading Systems could successfully target to best ensure the success of Mobileyes, the company evaluated each hobby and occupation according to six different criteria that are listed below. The 15 hobbies and occupations with the highest scores were then put into the Master Matrix and evaluated further. Criteria 30-40 Hours of Use per Week License Clubs/Union Specialty Magazines Annual Conventions Importance of Hobby in Personâ&#x20AC;&#x2122;s Life

Purpose The person must use the product for 30-40 hours per week in their particular hobby or occupation Allows the company to obtain a list of those with a particular hobby/occupation and better target them Can market at club or union meetings Provides a place to advertise the product Allows easy access to consumers The more important, the more likely success is for the product

Figure 5.2 Hobby and Occupation Criteria

5.4 Primary Niche Analysis AsTec took the list of 18 potential hobbies and occupations and whittled it down to the top 5 to target. By doing this, AsTec will be able to focus on the hobbies and occupations that are the most closely associated with Mobileyes. The following chart contains the variables AsTec used to evaluate the hobbies and occupations. This list includes specific attributes of Mobileyes. 1. 2. 3. 4.

Protections Cost/Value Differential Advantage Shelf Space

List of Variables 9. 10. 11. 12.

Optimization Utility Bundle Web Use Ease of Use Large Screen

61


5. Use Pattern 6. Divisibility 7. Market Size 8. Access Figure 5.3 Product Variables

13. 14. 15. 16.

Clear Instructions Portability Long Battery Life Storage

AsTec used the above criteria to evaluate the potential hobbies and occupations. Below is the Optimization Analysis macro matrix that takes these factors into consideration.

62


Portability

Protection

Shelf Space

8

8

9

8

8

7

8 10

4 131

8

8

8

8

8

8

8

7

7 10

4 128

9

8

6

8

8

8

8

5

6

7

7

7

6

8

9 119

9

7

6

8

8

8

8

6

6

6

7

8

6

7

7 116

8

8

6

6

7

8

8

5

6

6

5

5

5

6

5 102

8

4

5

6

8

8

8

6

5

6

7

5

6

5

6 101

8

5

5

5

8

8

8

5

5

6

7

5

6

5

6

99

8

4

6

7

7

8

8

5

6

5

5

5

5

5

6

98

8

6

5

4

7

8

8

5

5

5

6

4

4

6

6

95

6

6

5

6

4

8

8

6

5

5

5

5

5

4

4

91

9

5

4

4

5

8

8

5

4

4

6

6

6

4

5

91

9

4

2

5

6

8

8

4

2

5

6

4

5

4

5

85

4

6

4

3

3

8

8

7

4

4

3

3

3

4

1

70

5

3

7

2

2

8

8

4

7

4

7

2

3

2

2

69

7

1

8

2

2

8

8

3

8

3

2

2

2

1

1

64

8

6

6

6

6

8

8

5

6

5

6

5

5

5

5

97

Total

Market Size

8

9

Web Use

Long Battery Life

8

8

Use Pattern

Large Screen

9

9

Storage

Ease of Use

Optimization Utility Budel

Differential Advantage 9

9

Divisibility

Cost/Value

8 10

Clear Instructions

Access

Blind Readers 9 Disabled Students 9 CFOâ&#x20AC;&#x2122;s/Business People 9 Language Students 9 Traveling Enthusiasts 8 Professors/Teachers 8 Classroom Aids 7 Lawyers 8 Commuters 8 Veterans 9 Cooking Enthusiasts 8 Book Club Members 8 Children learning to read 5 Older generation churchgoers 3 Fishermen 6 Average 8 Figure 5.4 Optimization Analysis

The Master Matrix is an important tool to help compare specific groups of consumers with product characteristics, and rate these characteristics according to their use value. For example, when veterans, lawyers, and fisherman are compared to one another, AsTec uses characteristics like access, ease of use, and use pattern to help organize the customer types and prioritize them accordingly. Creating this matrix helps to give objective number values to each consumer type, and help AsTec Reading Systems understand how to better spend assets for marketing purposes. From AsTec Reading System closer evaluation, the team found that the fourteen customer types that best apply to Mobileyes are: blind readers, disabled students, CEOâ&#x20AC;&#x2122;s and

63


business people, language students, traveling enthusiasts, professors and teachers, classroom aids, lawyers, commuters, veterans, cooking enthusiasts, book club members, children learning to read, older generation churchgoers, and fishermen. The Master Matrix has been used to evaluate these customer types by 16 characteristics. As a result, the AsTec Reading Systems team has found that the top three niches are blind readers, disabled students, and CEO’s and Business People. Blind readers have a total of 131 matrix points, compared to disabled students with 128 and CEO’s and business people with 119 matrix points. Compared to the average score of 97, these statistics reveal that these three customer types are extremely relevant to the AsTec Reading System client base, and likewise, marketing base. These three customer types scored extremely high on access, cost/value, differential advantage, and optimization utility bundle. Relative to the averages, this places perspective on the total speculative customer types and helps the marketing team focus energies according to customer and according to use.

5.5 Adapted Micro Analysis After looking at things on a macro level, AsTec performed analysis at the micro level in order to find out the top three hobbies, and eventually the top hobby. AsTec used the five top variables that pertained the most to Mobileyes. Those five variables were selected based on their scores in the earlier optimization analysis. The top five variables selected were: • • • • •

Differential Advantage Ease of Use Portability Clear Instructions Storage

64


Storage

8 8 8 8 7 8 8 7 7 4 5 6 3 2 2 6.07

8 8 7 6 6 6 6 5 5 5 4 5 4 4 3 5.47

8 7 6 6 5 6 6 5 4 5 6 5 3 3 2 5.13

Total

Portability

9 8 6 6 6 5 5 6 5 5 4 2 4 7 8 5.73

Clear Instructions

Ease of Use

Blind Readers Diabled Students CFO's/Business People Language Students Traveling Enthusiasts Professors/Teachers Classroom Aids Lawyers Commuters Veterans Cooking Enthusiasts Book Club Members Children Learning to Read Older Generation Church-goers Fishermen Average

Differential Advantage

Micro Matrix

8 41 9 40 9 36 9 35 8 32 8 33 8 33 8 31 8 29 6 25 9 28 9 27 4 18 5 21 7 22 7.67 30.07

Figure 5.5 Micro Matrix

This micro matrix shows that the top 3 scoring hobbies/occupations on the macro matrix also scored the highest on the micro matrix. The hobbies that scored the highest were blind readers with a score of 41, disabled students with a 40 and CEOâ&#x20AC;&#x2122;s/Business People with a 36. Similar to the macro matrix, language students were close behind business people with a 35. The purpose of this micro matrix was to identify the most important trends in the industry in order to make sure the niche fits in with the most important trends. This is vital because a niche may score high on the macro matrix but may rank lower on the micro matrix due to its relevance to the other important criteria. If a niche scores highly on both the macro and micro matrices then it is most likely the correct niche in which the product should be placed. This analysis shows that the target niches of blind readers, disabled students, and business people are the top niches in which to place Mobileyes.

65


5.6 Niche Selection With the scores of each of the hobbies/occupations from the Master Matrix, AsTec Reading Systems can determine the top five. These top five are blind readers, disabled students, business people, language students and traveling enthusiasts. While all of their scores vary, they are undoubtedly the highest scoring hobbies/occupations based on the variables in the master matrix. Hence, these are the hobbies and occupations that would most benefit from using Mobileyes. Traveling Enthusiasts The fifth highest scoring hobby is traveling enthusiasts. As their name suggests, these are people who enjoy traveling and who spend a good amount of time traveling. People who take trips to foreign countries would be able to use the Mobileyes as a translator in many situations. For example, they could take a picture of a sign or menu that is printed in a foreign language and have the Mobileyes translate it. They would then be able to understand what it meant. However, this hobby does have a number of weaknesses when it comes to the variables on the Master Matrix. While they do travel a lot, traveling enthusiasts are not always traveling. Hence, they would only need to use the Mobileyes as a translator at certain points throughout the year. Furthermore, they would only really need the Mobileyes if they were traveling in a foreign country. The value compared to the cost would not be very high. Similarly, Mobileyes would not have as high of a differential advantage for traveling enthusiasts as they could find other translation services. Language Students

66


Language Students are the fourth highest scoring niche on the Master Matrix. Language students would be able to use Mobileyes as a translation device as well. They could use it as a homework aid by taking photos of their textbook or worksheets and having the Mobileyes translate them. There are a lot of language students in the US as well. According to a survey by the Modern Language Association, there are over 1.5 million college students enrolled in foreign language students. 42 And the number of foreign language students is growing throughout the United States. However, the language student niche also has a number of weaknesses that does not make it the ideal group to target. One such weakness is the use pattern. Previous to Mobileyes, language students have not often relied on text to speech technology to help them with their work. This lack of experience with the technology could cause problems. Similarly, Mobileyes, although it has a good deal of storage space, probably does not have enough storage to hold an entire textbook or a semesterâ&#x20AC;&#x2122;s worth of materials. This could cause problems for language students. Business People Business people are the third highest scoring occupation on the Master Matrix. They are often on the go. They may be commuting, going to business lunches, visiting different offices or going on business trips. They could use Mobileyes in a number of different ways as they go about their business. For example, as they commute, they could listen to a document being read to them instead of doing nothing on their drive to work. Similarly, they could snap quick photos of necessary documents before they head out to a meeting or on a trip. And finally, they could use the translation technology if they engage in international business and

42

â&#x20AC;&#x153;Language Learning Trends in the United States.â&#x20AC;? Vista World: World Languages and Cultures. 24 Feb. 2010. http://www.vistawide.com/languages/us_languages.htm

67


travel. Furthermore, CEOs, CFOs and other powerful business people would have the disposable income to spend on Mobileyes. In fact, in 2005, the average CEO salary in the US was $300,000.43 However, there are a number of weaknesses to targeting this particular occupation. The market for high end business people is not huge. Furthermore, with all the high tech devices available to business executives today, including the iPhone and all the different versions of Blackberry, Mobileyes does not have the differential advantage that it does for other niches. Mobileyesâ&#x20AC;&#x2122; most dominant technology, the text to speech feature, is not as valuable to executives as it would be to other groups.

Disabled Students The second highest scoring niche was that of disabled students. Similar to blind readers, disabled students could use the Mobileyes as a form of assistive technology. Since Mobileyes reads text out loud and highlights the words as it reads them, it could be particularly valuable to students with learning disabilities, such as dyslexia. It is estimated that dyslexia has a 15%-20% prevalence rate, which would give AsTec Reading Systems a good niche to target.44 However, one weakness of targeting disabled students is that they are mostly young. These students are not the ones with the buying power when it comes to consumer products. And learning disabilities tend to be either less prevalent in adults (because they do not realize they have one) or those adults that do have a learning disability

43

â&#x20AC;&#x153;Who Rules America: Income, Wealth, and Power.â&#x20AC;? http://sociology.ucsc.edu/whorulesamerica/power/wealth.html 44

LD Online http://www.ldonline.org/article/How_Many_Adults_Really_Have_Learning_Disabilities%3F

68


are more likely to have not finished school. 45 These individuals most likely do not have the disposable income to pay for a Mobileyes. AsTec Reading Systems would also run into some of the same problems with disabled students that it would with foreign language students. Mobileyes may not be able to provide enough storage space, and there could be a significant learning curve when using it. Blind Readers The niche that AsTec Reading Systems decided to target is blind readers. This group scored the highest on the Master Matrix when evaluated according to the most important variables. Blind people that wish to remain independent by reading their own everyday documents will make an excellent target niche. They will use Mobileyes at least 30-40 hours a week. Blind people are also a very specific group, but they are a large enough population. In the US, there are about 25.2 million blind or very visually impaired people. 46 The value that blind people will gain from using Mobileyes is worth the cost since it is essentially providing them with a certain level of independence. Furthermore, the blind are used to working with assistive technology and therefore have prior use patterns with such devices. Mobileyes also provides a high differential advantage when compared with other assistive technology because it offers a number of different technologies such as GPS and translation services. The following chart displays the top five hobby/occupation optimization matrix. This optimization matrix rearranges the Master Matrix in order to focus on just the top five niches. They are arranged in descending order with the highest scoring niche at the top.

45

LD Online http://www.ldonline.org/article/How_Many_Adults_Really_Have_Learning_Disabilities%3F

46

American Foundation for the Blind. http://www.afb.org/Section.asp?SectionID=15

69


9 9 9 9 8

8 9 9 9 8

10 9 8 7 8

9 8 6 6 6

9 9 8 8 6

8 8 8 8 7

8 8 8 8 8

8 8 8 8 8

8 8 5 6 5

9 8 6 6 6

8 8 7 6 6

8 8 7 7 5

7 7 7 8 5

8 7 6 6 5

10 10 8 7 6

Total

Web Use

Use Pattern

Storage

Shelf Space

Protection

Portability

Optimization Utility Bundle

Market Size

Long Battery Life

Large Screen

Ease of Use

Divisibility

Differential Advantage

Cost/Value

Clear Instructions

Access Blind Readers Disabled Students CFO's/Business People Language Students Traveling Enthusiasts

4 4 9 7 5

131 128 119 116 102

Figure 5.6 Hobbies and Occupations Matrix

5.7 Conclusion One of the most important decisions facing AsTec is who to market Mobileyes to. Therefore, it is important for the company to use as many tools as possible to help select the right niche to target. By using analysis techniques such as the niche optimization matrices, AsTec was able to come up with five good niches for Mobileyes. Furthermore, through detailed study, it became clear that there was a solid front runner: blind readers.

5.8 Summary Possible Niches Evaluation of Possible Niches Niche Optimization Selection of Target Niche

AsTec researched possible niches that would benefit from Mobileyes and then compiled a list of the top candidates. AsTech evaluated the list of possible niches using specific criteria and other trends. AsTec used an optimization matrix, product benefit matrix, and top five criteria matrix to evaluate the list of possible niches. AsTec used the niche optimization matrices to pick the top niche for Mobileyes. The niche selected was blind readers.

70


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Mobileyes Marketing Project  

Marketing report on an e-reader

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