Strategic Marketing Management - Assignment 1

Please read the case "SEGMENTING THE SMATWATCH MARKET" (pages 90-92).

After reading the case, please go through the figures and tables and answer the following questions.

1. Determine the number of distinct segments present in the market as represented in the current respondent sample (20 points).

2. After determining the number of segments, describe each using the segmentation and descriptor variables. (30 points)

3. Based on the characteristics, create a name for each segment that captures the essence of what makes it unique. (10 points)

4. Use the market size (size of the cluster) and other variables and rank the segments by their attractiveness. (20 points)

5. Based on the top selected segment(s), please select 1) a product type(s) and 2) partner from the following options and explain the launch strategy.

a. Product type: 1) companions or standalone alternatives to smartphones, 2) fitness tracking and enhancement monitors and 3) diagnostic and medical health reporting devices.

b. Partners: 1) Aetna, 2) Amazon or 3) Google. (20 points)

Table 1: Averages of key variables across different clusters

Cluster	1	2	3
Number of Responders	461	218	321
Constant Communication (1-Very unimportant, 7-Very important)	4.7	4.45	5.02
Timely Information (1-Very unimportant, 7-Very important)	4.09	4.26	4.46
Task Management (1-Very unimportant, 7-Very important)	4.29	3.81	4.67
Device Sturdiness (1-Very unimportant, 7-Very important)	4.42	3.58	3.82
Well-being (1-Very unimportant, 7-Very important)	5.5	3.38	3.1
Athlete (1-Very unimportant, 7-Very important)	5.57	2.86	3.99
Style (1-Very unimportant, 7-Very important)	5.02	3.7	4.67
Have Amazon Prime Account (%)	75%	45%	60%
Female (%)	70%	51%	56%
Degree (1-undergraduate, 2-Masters and Higher)	1.29	1.29	1.41
Income (1-below $40k, 2-$40-$70k, 3-$71-100k, 4-$101-$175k, 5-Greater than $175k)	3.52	3.06	3.47
Age	26.76	40.73	33.97

Please refer to page 92 for a detailed description of each variable