UMC Report 8

SHEFFIELD HALLAM UNIVERSITY

The UK Tablet Computer Industry

Group: Jack Rowbotham, Matt Pierre, Charlotte Smith, Vakas Ramzan

Tutor: Garry Gresham

Date: 01/05/2023

Word count: 2476


ContentsManagement Summary............................................................................................................2

Introduction............................................................................................................................. 3

Market Dynamics.....................................................................................................................3

1.1 Size and value of the Market.....................................................................................3

2.1 Growth Forecast.............................................................................................................4

3.1 Trends and Developments..............................................................................................5

4.1 Main competitors...........................................................................................................7

Customer Dynamics.................................................................................................................9

5.1 Customer Segmentation.................................................................................................9

6.1 Pen Pictures of Two Major Target Customer Groups....................................................10

7.1 Targeted Advertising.....................................................................................................15

8.1 The Stages of Consumer Decision Making....................................................................16

Recommendations................................................................................................................. 19

Conclusion..............................................................................................................................19

Works Cited............................................................................................................................20

Appendix................................................................................................................................ 23

Appendix 1 – Segmentation tables.....................................................................................23

Appendix 2 – Potential segments.......................................................................................35

Group work............................................................................................................................ 40

Page 1 of 40


Management Summary This report provides clients with information on the UK Tablet market and whether there is potential for new clients or existing clients to operate effectively within the market.

Detailed analysis of the market dynamic has been performed to show the sales potential. The market has increased in size year on year thus provides evidence of a growing market. Although forecasts indicate a short term cooling down period, further growth in sales is anticipated from 9.1 million in 2013 to 20 million tablets in 2017.

From the market share analysis, there is a growing trend with smaller competitors squeezing Apple’s market share (39%) which shows the growing potential for clients to operate within the market.

Tablets have become a trend in itself due to the number of situations in which it can be used, home, education and Business.

The customer dynamics research identifies eight customer segments are currently being used by the two dominant firms (Apple and Samsung). These include Technology children, Media/Artist, Business professional. Middle aged achiever, Youthful gamer, Young academic, Value for money, Silver surfer.

All segments show potential but the ‘Business Professional’ and ‘Silver Surfer’ segments are highlighted for particular growth. The needs of all of the customer segments are not completely met by Apple and Samsung which suggests that there is potential for smaller firms to operate within the market.

An advertisement (via You Tube) is used within this document as an example of targeting a major customer segment. This advertisement aimed at ‘Business Professional’ customers encourages replacing laptops with tablets. This had been used to show that even firms with less market share can target the major segments and still remain profitable.

Customers may use complex decision making processes when buying a Tablet. This is partly because of the purchase costs involved. Clients can directly influence the customers’ decision through effective advertising aimed at a particular customer segment. By providing pre sales information and after sales service there is an opportunity for business growth.

Recommendations provide clients with an action plan on how to operate effectively within the UK Tablet market and take advantage of the growing opportunity

Page 2 of 40


IntroductionA tablet is a wireless, portable personal computer with a touch screen interface (Tablet-PC).

It is a multipurpose device and can be used in Homes, Education and Business.

This report will provide an in-depth analysis of the UK Tablet computer market involving the

market dynamics and the customer dynamics. This report will provide clients wishing to

operate with the tablet market the relevant information to whether they should or

shouldn’t enter the market.

Market Dynamics1.1 Size and value of the Market

In 2013 the tablet market was valued at £1,820,000,000 with 9,100,000 tablets being sold.

(Gee 2014). Tablet manufacturers introduced new models of tablets into the market to

compete with Apple who dominate the market.

In 2014, the size and value of the Tablet UK market was estimated at £2,047,500,000 with

sales of 11,700,000 tablets (Gee 2014). Actual figures for 2014 are not yet been released by

Mintel who provide the trusted data. Figure 1 shows recent figures of the size of the market.

Page 3 of 40

610,000

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Figure 1 - Value and Volume of the UK Tablet Market (Gee 2014)


2.1 Growth Forecast To assess future growth it is important to look at value of sales in previous years. In 2011,

the market for tablets in the UK was at £610,000,000 with 1,500,000 tablets being sold. As

shown in Figure 1 the market size was relatively small compared to 2013.

By 2012, the value of sales had increased 134% in value with a 273% increase in number of

tablets sold. Manufacturers had introduced a range of new tablets to the market.

Continued growth in 2013 increased the value by 28% and sales by 63%. Latest data

indicates slower growth as existing users are not yet in a position to replace their existing

tablets.

The 2014 estimate indicates an increase in value by 13% and in sales by 29%. Mintel had

predicted the market increase at a slower rate. Sales increased by a higher proportion

compared to the value because the unit price had begun to fall due to competitive pricing,

shown in Figure 2.

Other

perspectives such as a Telegraph article argue that the UK tablet market is expected to

slump in 2014 (Curtis 2014). Figure 3 shows the expected cool down period forecasting a fall

of 3 million units but sales are expected to pick up again increasing to 20 million by 2017. It

also shows the total number of tablets in use is anticipated to reach 55 million by 2017.

Page 4 of 40

Figure 2 - Average Selling Price for Tablets Globally (Pettinger 2013)


3.1 Trends and DevelopmentsTablet computers have become an increasing trend. Mary Meeker claims that tablets are

growing faster than PC’s ever did (Wong 2014). Tablets are speeding up the process of

technology. Their broad use provides enormous potential.

Home

Tablets in the home are used to check emails, play games and surf the internet. The

lightweight, portable and convenient tablet has attracted a particular type of consumer who

likes to use the tablet in the living room (Guglielmo 2012)

Business

By 2016, 30% of all mobile computing devices will be tablets and corporate purchases will

account for 18% of the global market (Marshall 2013).

Tablets deliver a productivity boost because home use allows for checking office emails and

keeping up to date with other activities (Marshall 2013). Retailer Argos is replacing its

catalogues in stores with tablets. John Walden, Managing Director of Argos said of the

transformation “We are seeking to reposition our stores to support a digital future” (Martin

2013).

Page 5 of 40

Figure 3 - Total UK Tablets sold and currently in use (Curtis 2014)


Education

A Cornish school had invested in £100,000 in a tablet for each of its 900 pupils and reported

a success. (Tablet school: pupils do better at Mounts Bay Academy 2013). There was a

significant improvement in achievement through electronic reading and learning based

games.

Tablets are transforming the educational process and this is inevitable (Karadag 2013).

However overuse of tablets can mean a reduction of pen writing skills.

Developments

The competitive market structure acts as an incentive for manufacturers to product

differentiate. Apple is the dominating firm within the industry. Apple has introduced an iPad

‘Mini’ which offers a full range of features (Kelion 2014).

Recent developments include (Kelion 2014):

• Touch ID fingerprint sensor

• Anti-reflective coating

• A8X - a faster version of the processor

• Eight megapixel rear camera that can now capture slow-mo videos at 120 frames per

second

• Wi-Fi chip that supports faster data speeds

Page 6 of 40

Figure 4 - Range of Apple iPad models (Compare iPad models 2015)


4.1 Main competitorsIn 2012, the market was dominated by Apple with over 70% share. By 2013 Apple’s share

was falling as firms became more competitive such as Samsung, Google Nexus and Kindle

Fire (Arthur 2013). This is illustrated in Figure 5.

In 2014 Mintel

provided UK data of ownership of tablets (Gee 2014). This source indicates the 2014 market

share with Apple (39%) and Samsung (19%) dominating.

Amazon (8%), Google (7%) and Tesco (3%) are the smaller suppliers.

Page 7 of 40

Figure 5 - UK Tablet ownership by market share (Arthur 2014)

Figure 6 - Ownership of tablet computers by brand, July 2014 (Gee 2014)


The sales graph below (Guardian) (Arthur 2014) shows that by the end of 2013 Apple have

24 million tablets with Samsung having 15 million.

Apple

Apples innovations and strong brand image (Elmer-DeWitt 2013) has allowed them to

differentiate from the rest of their competitors by creating many complimentary goods such

as accessories and the ‘App Store’ (The Apple Store 2015). They have full control over the

way the product performs as they run their own operating system which they developed

themselves (OS X Yosemite 2015).

Apple was the first tablet manufacturer to be successful in the market. This experience of

the industry has given them first mover advantage (Richmond 2011) and the well-developed

iPad provides the edge over other competing firms.

Apple is seen as expensive. It can be cost prohibitive and excludes some customer segments

from buying.

Samsung

The second largest competitor competes mainly through price. This attracts the market

segment that Apples pricing excludes. The ‘Android’ operating system is a strong point to

Samsung because of its highly customisable nature (Pros And Cons Of Android 2015). The

weaknesses include security concerns leading to worries of threats of malicious software.

Page 8 of 40

Figure 7 - How the tablet market has grown (Arthur 2014)


Customer Dynamics5.1 Customer Segmentation

Market segmentation divides the market into distinct subsets of consumers with common

needs or characteristics (Lancaster 2009). This allows companies to identify the customers

they sell to. Market segmentation is one of the most important concepts in marketing

(Cooil, Aksoy and Keiningham 2015)

There are eight customer segments each with differing needs and requirements. Each

segment is identified from eight common segmenting factors. These are:

1. Demographics

2. Geographic

3. Psychological

4. Psychographic

5. Sociocultural

6. Use related

7. Usage situation

8. Benefit

From research, a number of segments were identified which both Apple and Samsung

appear to be using (Ali 2014). These are listed below and are explained further in Appendix

1.

1.Technology Children 5.Youthful Gamer

2.Media / Artist 6.Young Academic

3.Business Professional 7.Value For Money Customer

4.Middle Aged Achiever 8.Silver Surfer

Clients can use these segments to adapt their marketing and appropriately target the

segments with the aim to maximize tablet sales.

Page 9 of 40


Three further potential segments that exist that are not being utilized in the industry

include:

Compulsive/emotional buyer

Expensive Gifter

The Tourist

These are explained further in Appendix 2.

6.1 Pen Pictures of Two Major Target Customer Groups A pen picture is an informal description of a person or group of people which will include

age and other ‘hard’ variables, but will focus on their softer dimensions such as attitudes,

appearance and lifestyle (Lect 9 Customer Behaviour 1 2015). Table 1 has been used to

develop detailed pen pictures.

Four characteristics are used to identify the two major customer groups that could be

targeted (Lancaster 2009):

Substantial: Considerable importance on size of the segment.

Sustainable: Ability to maintain a good level of sales of tablets

Accessible: Selling the tablets to the segment with no barriers

Profitability: Potential for firms to make good level of profits

Page 10 of 40

Table 1 - Lifestyle Dimensions


The Business professional - Ben Harrow

A pen picture (Table 2, Figure 8) has been developed to create a person within the business

professional segment. He is named Ben Harrow.

This segment is of substantial size with 62% of adults aged in between 25-34 have access to

a tablet in the household (Gee 2014) . 19% of all tablet buyers are within this age range with

57% of these being male (A Portrait of 2012). The segment is accessible as other firms have

sold to this segment such as Apple and Samsung. It is sustainable as the population

continues to grow by 0.54% (United Kingdom Demographics Profile 2014). There is potential

for more profit from this segment.

Table 2 - Ben Harrow (Pen Portrait)

Demographic:Age 26Sex MaleRelationship SingleIncome £50,000Occupation AccountantGeographic:Country EnglandCity LondonClimate MixedPsychological: Needs motivation – Sense of self-worth, shelter, securityPersonality Competitive, aggressivePerception Moderate riskLearning- involvement MediumAttitudes PositivePsychographic: Technology enthusiastsSocio-cultural: Social class – Middle/upper

Family lifecycle –BachelorUse-relation: Usage - Medium usage

Awareness status - Interested, awareBrand loyalty – some

Usage- situation: Time: Leisure, work, weekendsObjective – Personal, funLocation – Home, WorkPerson: Self

Benefit segmentation: Convenience, social acceptance, economy.Activities: Busy life, always doing something

Work = Full timeHobbies = Socialising, browsing the internet, Newspaper,

Page 11 of 40


MagazinesSocial life = weekend meet ups in the pubHoliday = 1-2 times a year abroad with his friendsEntertainment = Tablets and other technologyMemberships = Guardian, GymShopping = Typical food shopping plus occasional premium itemsSports = Gym to keep in shape

Interests: Technology = keeping up with the latest releasesJob = They enjoy their job and want to climb the career ladderMedia = Following social media and the newsAchievement = Succeeding in their careerFamily = Future full nestCars = sports cars

Opinions: Business = Views on how he would run a businessEducation = Believe in a good educational backgroundFuture = what they feel the future will be like, opinion on technologyProducts = Higher quality and luxury goods

The Silver surfer - Dorothy Pearson

Page 12 of 40

Figure 8 - Ben Harrow (Moodboard)


There is an increasing trend with new buyers being female (52%) Those aged between 55-64

years represent 18% of new buyers (A Portrait of 2012). With life expectancy increasing to

81.50 in the UK (Life expectancy in the UK 2012), this segment will continue to grow and be

sustainable.

A pen picture (Table 3, Figure 9) has been developed to create a person within the silver

surfer segment. She is named Dorothy Pearson.

Table 3 - Dorothy Pearson (Pen Portrait)

Demographic:Age 65Sex FemaleRelationship WidowIncome State Pension and Work PensionOccupation RetiredGeographic:Country EnglandCity Market HarboroughClimate MixedPsychological: Needs motivation – Shelter/SecurityPersonality IntrovertPerception Moderate riskLearning- involvement LowAttitudes PositivePsychographic: Active, in and outdoors personSocio-cultural: Social class –Middle

Family lifecycle –Empty nest/WidowUse-relation: Usage: Light to medium users

Awareness: InterestedBrand loyalty: Some

Usage- situation: Time: Leisure, weekdays, weekends, nightsObjective – Personal, fun, gift, reading, communicationLocation – HomePerson: Self, visiting family members

Benefit segmentation: Value for money, long lastingActivities: Hobbies – Reading, Outdoor activities

Social life – Bingo, other clubsHoliday – Coach trips abroad once a year with her friend BeatriceEntertainment – Books, TV’s, Tablets, Gardening, CookingMemberships: Magazines, LibraryShopping: Food primary.Sports: Limited, bowls club

Page 13 of 40


Leisure: Walking, outdoor activitiesInterests: Family – Regular contact with love ones

Home – Keeping it up to dateCommunity – involved with community improvementsRecreation – Things done in spare time, what they can get involved inSelf – Looking after themselves

Opinions: Themselves – General views about themselvesSocial issues – YouthsPolitics - Liberal / ConservativeProducts – Value for moneyPast – History, What they think about their experiencesFuture – Concerns about what will happen in the future

Figure 9 - Dorothy Pearson (Moodboard)

Page 14 of 40


7.1 Targeted Advertising

https://www.youtube.com/watch?v=CTo5DfBtWkY

This advertisement is a demonstration of how smaller firms in or looking to enter the

market can try to compete with the dominating firms by also targeting the same major

segments.

The target audience includes existing laptop owners. It is suggesting a move to tablets for

flexibility. This is supported by the narration which lists the beneficial features. Looking at

the characteristics of the targeted consumer, this indicates advertisement towards the

business professional segment.

This advertisement suggests that the primary use would be for work. Benefits outlined

include mobile working, good functionality and compatibility. Users may be commuters who

work in a city or similar environment. There are many articles that argue that Microsoft

deliberately target both laptop and MacBook Air users (Saran 2014). The advert refers to

features that existing Microsoft customers will recognise, such as ‘Microsoft Office’ making

the move to a new device more appealing.

8.1 The Stages of Consumer Decision Making Consumer decision making is based on two dimensions:

Page 15 of 40

Figure 10 - (Surface Pro 3: The tablet that can replace your laptop. Commercial 2014)

https://www.youtube.com/watch?v=CTo5DfBtWkY%20


Decision making or habitual process

Degree of involvement in the decision

This is illustrated in Figure 11.

The

decision making involved in buying a tablet is complex. This includes high involvement and

extensive information searching with alternative products evaluated. (Red box in Figure 11)

The decision is influenced by the large financial risk involved. As a one off purchase the

consumer will research the options to choose the right product for them. (Lancaster 2009)

The decision making process for purchase of a tablet computer includes five stages.

Problem recognition

This is when an individual senses a difference from what they perceive to be ideal state of

affairs compared to the actual state of affairs at any moment in time (Lancaster 2009).

One problem is the limited portability of IT equipment such as laptops. Consumers may feel

it’s difficult to carry, therefore affecting their ability to work thus looking for an alternative

that can fix this problem.

Firms can advertise the faults of existing products of which they provide a solution to.

Page 16 of 40

Figure 11 - Types of decision making (Shuspace 2014)


Information search

This involves extensive researching to find the appropriate information to make an informed

decision.

The consumer may identify that a tablet can perform most of the functions a laptop can do.

In addition to this, based on the advertisement analysed, a tablet is more portable.

Firms can influence the quality and availability of information about their tablets to

influence the decision. For example they can state that their tablet is the lightest on the

market thus having an impact on the customer’s opinion.

Alternative evaluation and selection

The buyers will examine the different options including different brands of tablets and

assess them based upon their specifications and standards. Consumers will weigh up the

positives and negatives to see which the best solution is.

Samsung can use this stage to develop their tablets further so they can compete with the

high specifications of other tablets including Apple. They will develop the tablets so they

appeal to their chosen target market.

By developing a high quality website, it is easier to view their selection of tablets and

prompt delivery will influence the prospective buyer.

Offers will be used to improve the rating of their tablet when being evaluated in comparison

to other tablets. This will increase the number of tablets being sold - especially to the ‘value

for money’ customer segment mentioned previously.

Store choice and purchase

This stage determines is the tablet will be purchased at a store or online.

Although purchases will often take place in a shop, tablet purchasing online is becoming

increasingly popular. Some customers will always like to speak with salespeople. For

example the Apple store staff can discuss needs – but many can go away and buy on line

seeking a better price.

Page 17 of 40


Stores are in convenient locations where they have employees selling tablets. Staff can

deliver a quality of the service that will attract new customers to buy.

Post-purchase processes

This stage involves an evaluation of the effectiveness of the decision making process. The

quality of the post-sale service has become increasingly important as continued satisfaction

could lead to repeat purchases in the future. Suppliers will offer excellent after sale service

to develop brand loyalty. By improving the customer experience advertising by ‘word by

mouth’ will impact on sales growth.

Overall, firms need to be take account of the consumer decision making process and

attempt to influence the decisions at each of the stages to gain customers either on line or

in store.

Page 18 of 40


RecommendationsI. The average price of tablets is beginning to fall and they are moving away from being

a premium product as they become more affordable. Firms should consider this

when deciding upon their pricing strategy.

II. To compete effectively with the current competitors, new tablets must provide a

standard specification and features.

III. Clients looking for sustainable sales should produce a tablet that aims to target the

two major segments identified within the market. This area offers strong profit levels

for a number of firms.

IV. Three customer segments have been identified that have not been targetted; these

provide an opportunity for a new area of growth within the industry.

V. Consider the decision making process when producing a marketing campaign to

influence consumers.

VI. It is important that the client is able to be innovative to maintain competitive into

the future.

ConclusionIn conclusion, there is potential for clients to enter the market and take advantage of the

opportunities beginning to show.

This high value market is expected to grow after the potential cool down period in 2014. An

increasing number of firms are now taking advantage of this opportunity.

The market is led by innovation in technology that allows the market to remain competitive.

Apple's market share is being squeezed by firms such as Samsung showing there is still an

opportunity to enter the market and be successful.

The recommendations provide clients with an action plan on how to enter and operate in

the market effectively.

Works Cited

Page 19 of 40


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http://ondigitalmarketing.com/textbook/foundations/5-customer-segments-technology-adoption/

http://ondigitalmarketing.com/textbook/foundations/5-customer-segments-technology-adoption/

http://store.apple.com/uk


[online]. http://www.flora.com/get-involved/tubs4tabs

United Kingdom Demographics Profile. (2014). [online]. http://www.indexmundi.com/united_kingdom/demographics_profile.html

WONG, Marisa (2014). Tablets Growing Faster Than PCs Ever Did: Mary Meeker’s 2014 Internet Trends. [online]. Last updated 28 May. http://blog.slideshare.net/2014/05/28/tablets-growing-faster-than-pcs-ever-did-mary-meekers-2014-internet-trends/

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http://www.flora.com/get-involved/tubs4tabs

http://www.indexmundi.com/united_kingdom/demographics_profile.html

http://blog.slideshare.net/2014/05/28/tablets-growing-faster-than-pcs-ever-did-mary-meekers-2014-internet-trends/

http://blog.slideshare.net/2014/05/28/tablets-growing-faster-than-pcs-ever-did-mary-meekers-2014-internet-trends/


AppendixAppendix 1 – Segmentation tables

Segmentation characteristics

Young children who use these tablets for

games and learning. This segment is

becoming increasingly large as children are

starting to use technology at younger ages

showing potential for firms to sell to them

in the market. 60% of children aged 6 to 11

years have access to a tablet each week,

more than those aged 12 or more. (Gee

2014). However this segment involves the

parents buying the tablets for birthdays

and other gift bearing events.

Technology children

Demographics

Age 5-13

Sex Both genders

Family cycle Single in Full Nest 1

Income Parents income, Medium to high

Education Primary school, High school

Geographic

Region England

City size City or rural village

Climate English weather, cold

Psychological

Needs Safety, security, affection

Personality Extrovert, Energetic

Perception Moderate risk

Learning involvement High

Attitude PositivePage 23 of 40


Psychographic

Lifestyle Learner, explorer

Sociocultural

Social class Middle to upper class

Family life cycle Full nest 1

Use related

Usage rate Medium to high

Awareness status Enthusiastic and interested

Brand loyalty None

Usage situation

Time Leisure, school

Objective Personal, fun, learning, enjoyment

Location Home or school

Person Self, family members

Benefit Long lasting, learning tool


A teenager who uses the tablets

predominantly for gaming and having fun.

Also reliant on their parents buying them.

However these may in higher education

and may part time job income to fund the

purchase of the tablet.

Youthful gamer

Demographics

Age 13-21

Sex Male

Family cycle Single in Full Nest 1, Full nest 2

Income Parents income, Medium to high, Part time

work

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Education High school, high school graduate

Geographic

Region England



Psychological

Needs Safety, security, sense of self worth

Personality Introvert

Perception High risk

Learning involvement High

Attitude Positive

Psychographic

Lifestyle Housebound

Sociocultural

Social class Middle

Family life cycle Full nest 1/2

Use related

Usage rate High

Awareness status Aware, interested

Brand loyalty Strong

Usage situation

Time Leisure, night

Objective Personal, fun

Location Home

Person Self

Benefit Gaming device, convenience


This segment involves the young

Media/Artist

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student, probably a girl studying at

school media or art. They would use the

tablet for applications like Photoshop

and create art via the tablet. They are

likely to fund these tablets from parent’s

income or via a part time job. They are

likely to use the tablet regularly for their

work

Demographics

Age 13-21

Sex Female

Family cycle Single

Income Reliant on parents income, part time

Education School, College

Geographic

Region England


Climate Climate – rainy and cold

Psychological

Needs Creativity, affection

Personality extrovert, eccentric

Perception moderate risk

Learning involvement Medium/High

Attitude Positive

Psychographic

Lifestyle Learner, Creative mind

Sociocultural

Social class Middle class

Family life cycle Full nest 1, Full nest 2

Use related

Usage rate Heavy to medium users of tablets

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Awareness status Enthusiastic and interested

Brand loyalty Some

Usage situation

Time Leisure

Objective Personal, enjoyment, Art

Location Home or school

Person Self or family members

Benefit Convenience, tool for art


A typical student who uses the tablet at

work or home. Within a full nest or leaving,

typically a higher income earning family.

Often a technology enthusiast and tend to

be early adopters of technology e.g. new

releases of tablets.

Young academic

Demographics

Age 15-25

Sex Both genders

Family cycle Single or couple

Income No income, parents or part time

Education Full time education, college, school or

university

Geographic

Region England

City size City

Climate Rainy, cold

Psychological

Needs safety, shelter, security

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Personality extrovert


Learning involvement Medium to high

Attitude Positive

Psychographic

Lifestyle Technology enthusiasts

Sociocultural

Social class Middle/upper

Family life cycle Left Full nest, Bachelor

Use related

Usage rate Heavy to medium users of tablets

Awareness status Enthusiastic

Brand loyalty Some

Usage situation

Time Leisure, work, weekends


Location Home, university , friend’s home

Person Self, friends and peers

Benefit Social acceptance, fashion item


The business professional has differing

needs to the previous segments as they

become more independent. They are on a

high income working full time and use the

Business professional

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tablet predominantly for work but in their

spare time use it for leisure such as

catching up on social media.

Demographics

Age 25-35

Sex Male

Family cycle Single bachelor

Income £40,000

Occupation Full time job

Geographic

Region England

City size City

Climate Rainy and cold

Psychological

Needs Sense of self-worth, shelter, security

Personality Competitive, aggressive


Learning involvement Medium

Attitude Positive

Psychographic


Sociocultural

Social class Middle/upper

Family life cycle Bachelor

Use related

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Usage rate Medium users of tablets

Awareness status Interested, aware

Brand loyalty Some

Usage situation

Time Leisure, work, weekends


Location Home, Work

Person Self

Benefit Convenience, social acceptance, economy.


The value for money customer tends to be

on a lower income. They will look for offers

or cheaper and better value for money

products. Likely to buy, for example a tablet

which does similar functions but at a lower

price.(e.g. Tesco Hudl)

Value for money customer

Demographics

Age 30-50

Sex Both

Family cycle Full Nest 1, Full nest 2

Income Low to medium income

Geographic

Region England

City size Town or village


Psychological

Needs Safety, security

Personality Normal

Perception Medium

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Attitude Positive

Psychographic

Lifestyle Family orientated, economy minded

Sociocultural

Social class Low to middle


Use related

Usage rate Low to medium

Awareness status Aware

Brand loyalty None

Usage situation

Time Leisure, night, work, day


Location Home, Work

Person Self, family

Benefit Convenience, value for money, economy, long

lasting


The middle age achiever segment involves

customers within full nest families on

higher incomes. They use the tablet for

leisure and possibly work reasons as well as

sharing it with the rest of the family. They

have already achieved in their career and

are at the top levels of the organisation

Middle age achiever

Demographics

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Age 35-45

Sex Male

Family cycle Single bachelor

Income £60,000


Geographic

Region England

City size City


Psychological

Needs Sense of self-worth, shelter, security

Personality Competitive, aggressive



Attitude Positive

Psychographic


Sociocultural

Social class Upper


Use related

Usage rate Medium users of tablets

Awareness status Unaware

Brand loyalty Strong

Usage situation

Time Leisure, work, weekends, nights

Objective Personal, fun, gift

Location Home


Benefit Value for money, long lasting

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Technology adaption Late majority


The silver surfer involves the elderly. As the

life expectancy increases more female

customers are purchasing tablets. This

segment aims at the 65+ females who

would use the tablet for contacting family

and looking on the internet for their own

interests such as gardening and cooking.

Silver surfers

Demographics

Age 60+

Sex Female

Family cycle Empty nest/ Widow

Income Pension

Occupation No job (Retired)

Geographic

Region England

City size Rural town/village


Psychological

Needs Shelter/Security

Personality Introvert


Learning involvement Low

Attitude Positive

Psychographic

Lifestyle Indoors and outdoors, active

Sociocultural

Social class Middle

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Family life cycle Empty nest/Widow

Use related

Usage rate Light to medium users

Awareness status Interested

Brand loyalty Some

Usage situation

Time Leisure, weekdays, weekends, nights

Objective Personal, fun, gift, reading, communication

Location Home


Benefit Value for money, long lasting

Appendix 2 – Potential segments


This segment involves the customer who finds it

difficult to control their buying habits. They buy

the tablet based on desirability rather than actual

need. Used as a fashion item and to show off to

others. This segment has also began to show due

to the price of tablets becoming more affordable

thus more acceptable to buy because the

consumer wants it.

Compulsive/ Emotional buyer

1.

Demographics

Age 25-40

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Sex Female

Family cycle Young couple/ Full nest

Income High income

Occupation Full time job or stay at home mother

Geographic

Region England

City size City


Psychological

Needs Acceptance or Security

Personality Extrovert



Attitude Positive

Psychographic

Lifestyle Busy life style either through work or

family, enjoys time by theirself

Sociocultural

Social class Upper

Family life cycle Young couple or Full nest

Use related

Usage rate Light user, mainly for fashion item

Awareness status Not too interested

Brand loyalty None

Usage situation

Time Leisure

Objective Personal, fun, show to friends

Location Home, friends' houses


Benefit feel good factor

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This involves the high income relative such

as an Uncle to the consumer. Purchasing

the tablet as a gift for their birthday or

other gift giving situations. This segment is

becoming increasingly popular due to the

price of tablets beginning to fall and

becoming more acceptable as a present.

Expensive Gifter

2.

Demographics

Age 30-50

Sex Male

Family cycle Bachelor

Income High income


Geographic

Region England

City size City eg London


Psychological

Needs Acceptance

Personality Normal / Extrovert



Attitude Positive

Psychographic

Lifestyle Busy working life, small amount of free time

Sociocultural

Social class Upper

Family life cycle Bachelor

Use related

Usage rate Light user although tablet not bought for Page 36 of 40


himself


Brand loyalty None

Usage situation

Time Leisure


Location Home

Person Relatives

Benefit Gift, feel good factor


The tourist involves the customers who use

the tablet predominately as the function of

a camera. This segment has a wide age

range however mainly male. Due to the

innovation of camera within the tablet, this

segment has become increasingly popular

and shows potential

The Tourist

Demographics

Age 30-60

Sex Male

Family cycle Full nest/ Empty Nest

Income Income depending on job below

Occupation Full time job or retiredPage 37 of 40


Geographic

Region England

City size City


Psychological

Needs Shelter/Security

Personality Extrovert



Attitude Positive

Psychographic

Lifestyle Indoors and outdoors, active

Sociocultural

Social class Middle/Upper

Family life cycle Full nest/ empty nest

Use related

Usage rate Light to medium users


Brand loyalty Some

Usage situation

Time Leisure, weekdays, weekends, nights, holidays

Objective Personal, fun, memories

Location Home and Holidays


Benefit Bought for purpose

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Group work

The Group held a series of one hour sessions in the library

The Group focused on two aspects each which required researching and bringing the data to the meetings. The meetings were then used to produce the presentation and report based on the work that the members had worked on. Each member supported each other in the meetings.

Meetings were held on the following dates:

1. 14th October2. 28th October3. 7th November4. 16th November5. 23rd November6. 3rd February7. 10th February8. 17th February9. 23nd February10. 5th March11. 11th March

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UMC Report 8

Documents

Transcript of UMC Report 8