The objective of this presentation is to demonstrate how well we understand the marketing research practices taught by Prof. David Rice at Schulich School of Business, York University in Toronto, Canada.

1. New Mobile Phone Device for
the Elderly
Dec. 6, 2011
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2. Agenda
1. Background
2. Proposal
3. Marketing Research Technique
4. Features Tested in the Study
5. Conjoint Analysis Results
6. Simulations (‘What-if’ Analysis)
7. Product Features Recommendation
8. Market Segmentation Analysis
9. Target Market Recommendation
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3. Background
• July 2011: Japanese cell phone manufacturer, Kyocera,
launched the “Mi-Look” in Japan
 cell phone specifically designed for the elderly
 GPS tracking system, movement sensor , emergency
buzzer & notification system
 highly visible large font sizes and easy to use color-
coordinated buttons
 Changing social conditions in Japan
have created a need for this type of
product - 23% of the total
population over the age of 65
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4. Background
• Similar changing social conditions here in Canada
 In 2006, a record 14% of the total population was over the
age of 65
 Seniors make up the fastest growing age group
• High growth potential in the Canadian mobile phone market
 The value of the mobile phone market increased by 16%
from 2005 to 2009
 The % of Canadian households that have mobile phones
increased from 64% in 2005 to 79% in 2009
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5. Proposal
• We are proposing the introduction of a new mobile cell phone
device for the elderly, similar to the Mi-Look
 Mobile phones have become increasingly complex
 Elderly people, especially those who live on their own,
should be able to stay connected with their
families/friends
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6. Market Research Technique
• To determine the optimal product with the best features/attributes,
we used the conjoint analysis technique
 A complete profile of 16 potential products (cards) was shown 1
at a time to respondents in a survey
 Respondents were asked to rate their likelihood of purchase on
a scale of 1 to 7
• To determine our target market, we conducted a segmentation
analysis
 11 demographic type questions were asked at the conclusion of
the survey
• We conducted mall intercepts in order to administer the survey  a
sample of 560 was received
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7. Product Features Tested in the Study
Features Levels
GPS Tracking Yes/No
Emergency Notification Buzzer Yes/No
Movement Sensor Yes/No
Button Type Keyboard Type/Touch Screen
Battery Life 18 hours/24 hours
Voice Recognition Yes/No
Call Functions Automatic answer with
speakerphone/Must be
physically answered
Price $200/$250/$300
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8. Conjoint Analysis Results
Utilities
• A measure of the relative value or worth that consumers place on a
feature and level
Feature Highest Utility Placed on...
GPS Tracking Having GPS capabilities
Emergency Notification Having an Emergency Notification
Buzzer Buzzer
Movement Sensor Having a Movement Sensor
Button Type Having a Touch Screen
Battery Life 24 hours (as battery life goes up, utility
goes up)
Voice Recognition Having Voice Recognition
Call Functions Automatic answer with speakerphone
Price $200 (as price goes up, utility goes
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down)

9. Conjoint Analysis Results
Importance Values
• A larger range of utilities means that customers put more value on that feature
Importance Values
gps 22.3
emergency 13.9
movement 10.6
buttons 8.7
voice 9.6
call 9.3
battery 7.5
price 18.1
• Higher value was given to those features that can ensure safety (GPS,
emergency, movement) rather than those that are more there to make
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the device “fancy” (buttons, voice, call)

10. Conjoint Analysis Results
• A mean was calculated for each card
 The card with the highest mean of 5.4 was:
GPS Tracking: Yes
Emergency Notification Buzzer Strap: Yes
Movement Sensor: Yes
Button Type: Keyboard type
Battery Life: 18 hours
Voice Recognition: Yes
Call Functions: Automatic answer with speakerphone
Price: $200
• These combinations of features are not feasible at a price point
of $200  this is the “Ideal” product choice
• Therefore, simulations must be conducted to determine how changing
different features of the device will affect demand – share-of-
preference is calculated
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11. Simulations (“What-If”) Analysis
Base Case : Mid-Priced, Mid-Featured
Features Base Case
GPS Tracking No
Emergency Notification Yes
Movement Sensor Yes
Button Type Keyboard
Battery Life 18 hours
Voice Recognition No
Call Functions Physically Answered
Price $250
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12. Simulations (“What-If”) Analysis
Which single features increase demand?
Share-of-prefernece % for Changes to a Single Feature
Base Case 50%
Call Functions 52.8% (+2.8%)
Movement Sensor 47.4% (-2.6%)
Emergency Notification Buzzer 47.4% (-2.6%)
Battery Life 50.2% (+0.2%) Yes
Button Type 50.7% (+0.7%) to
No
Voice Recognition 52.9% (+2.9%)
GPS 59% (+9%)
0 10 20 30 40 50 60 70
• GPS increases demand most!! 12

13. Simulations (“What-If”) Analysis
Which multiple combinations of features increase demand?
• GPS + Touch Screen
 Increases demand significantly
• GPS + $300
 People will pay more for the GPS capability
• Voice Recognition + $300
People will pay more for the voice recognition function
• Movement Sensor + $200
People prefer price that is $100 less vs. movement
sensor function
• Call Functions + $200
 People prefer automatic answer function vs. a price
that is $100 less
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14. Simulations (“What-If”) Analysis
Alternatives:
Features Alternative 1 Alternative 2 Alternative 3
Premium Base Case Cost Leadership
GPS Tracking Yes No Yes
Emergency Yes Yes No
Notification
Movement Sensor No Yes No
Button Type Touch Screen Keyboard Touch Screen
Battery Life 18 hours 18 hours 18 hours
Voice Recognition Yes No No
Call Functions Automatic Physically Physically
with Answered Answered
speakerphone
Price $300 $250 $200 14

15. Product Features Recommendation
Features Alternative 1 • Market is not saturated
Premium
• Higher potential than in
GPS Tracking Yes
Emergency Yes Japan
Notification
• Create new niche market
Movement Sensor No
• The features are consistent
Button Type Touch Screen
Battery Life 18 hours with the findings of the
Voice Recognition Yes analysis
Call Functions Automatic with
speakerphone
• Capture a large market share
Price $300 • Charge the premium price
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16. Market Segmentation Analysis
Which group is more likely to purchase?
• Men vs. Women?
 There is no significant difference
•1 or 2 person household vs. 3 or more person households?
 1 or 2 person household – slightly
• Young (<35) vs. Older (>35)?
 Older people – slightly
• Single vs. Married/common law?
 Single people – slightly
• Has an elderly person in their lives vs. does not?
 With an elderly – tremendously
• With elderly caregiver experience vs. with none?
 With experience - moderately
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17. Market Segmentation Analysis
Which group is more likely to purchase?
• Income: Low vs. Mid vs. High
• Household: Small vs. Medium vs. Large
• Age: Young vs. Mid-aged vs. Old
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18. Market Segmentation Analysis
Which group is more likely to purchase?
• Income: Low (<$20K) vs. Mid vs. High
Most Likely No Difference
• Household: Small (1-2) vs. Medium vs. Large
Most Likely No Difference
• Age: Young vs. Mid-aged vs. Old (55+)
No Difference Most Likely
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19. Market Segmentation Analysis
Who are more likely to be what?
Who Likely to
1 Men Women Have caregiving experience
2 Single Married Have caregiving experience
3 Young Old Have a smartphone
Have an elderly person in their
4 Young Old lives
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20. Target Market Recommendation
Recommendation
 Young people (less than 35) are more likely to have a
smart phone
 + older people are more likely to purchase the product
 + don’t necessarily have a smart phone themselves
= the device should be as simple and easy to use as
possible
Primary target: 35+ and Female
Secondary target: People with caregiver
experience
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21. Thank You!
Questions?
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