Marketing Strategies in the Digital Photo Frame Industry for

Marketing Strategies in the Digital Photo Frame Industry for Young Adults in the United States

Consumer Segment

Recommendations for Marketing a New Digital Photo Frame

Cassie Foxx and Armaan Sheriff

MK 212B

March 19, 2015

Ohana Simplifies User Experience

Ohana's Promotion Relies on Emotion

WiFi enabled device that displays pictures sent from supporting app

Easy for the elderly to use, and convenient for young adults to update content

Young, Tech Savvy, Connected

Facebook and Youtube: emotionally appealing ads

Peak advertising during holiday seasons and crucial junctures in academic calendar

Our Purpose

Simple Yet Advanced Product Features

Ohana is Much Cheaper than Competition

HD touchscreens ranging from 7 to 15 inches

WiFi capabilities

In-built motion sensor

4 GB storage

Intuitive User Interface

1 year warranty and refund policy

Direct to consumer pricing:

8 inch screen

• Nixplay: $80
• Ohana: $50

15 inch screen

• Nixplay: $200
• Ohana: $125

Direct Distribution Through Personal Website

Potential for expansion after growth

Indirect distribution through retailers in the future

30,672,088 men and women between the ages of 18-24 in the United States.

These young adults, who use technology on a daily basis, have a strong desire to share day-to-day activities and events with their grandparents scattered across the country.

We believe that elderly individuals today feel alienated from the lives of their loved ones due to varying degrees of technological literacy that make seamless communication problematic. We will present marketing strategies for a simple, intuitive digital photo frame that will keep families connected better than ever before.

Attachment to Technology and Grandparents

A Mutual Problem

Consumer Needs Stem from Relationships

Young adults: negative attitudes due to irrelevance of technological features

Elderly: negative attitudes due to lack of technological familiarity

These young adults want to keep grandparents in the loop but recognize that their elderly relatives may struggle with the usage of technology.

These consumers are highly involved with technology and have a strong commitment to their families.

79% of these consumers own a smartphone and are actively using them for 2 hours and 57 minutes a day.

72% of these consumers fully utilize social media sites.

This segment is incredibly loyal to their smartphones, as they are to the relationships with their grandparents.

http://www.bloomberg.com/bw/articles/2014-11-19/we-now-spend-more-time-staring-at-phones-than-tvs

http://www.pewinternet.org/2013/06/05/smartphone-ownership-2013/

http://www.census.gov/prod/cen2010/briefs/c2010br-03.pdf

http://www.pewinternet.org/2013/06/05/smartphone-ownership-2013/

Agenda

Consumer Segment

Industry Analysis

Recommendations for

Marketing Strategies

Conclusion

Questions

Conclusion

Industry Analysis:

Digital Photo Frames

Ohana satisfies the specific needs of a consumer segment that has been unsatisfied since the introduction of digital tablets. An accompanying app, optimum technical features, and an overall enjoyable user experience, make Ohana a revolutionary force in the Digital Photo Frame industry, and the perfect gift for young adults away form home to gift their elderly loved ones.

Competition's Sales Have Suffered

Potential to Exploit Growing Market Opportunities

Sales dropped from $159.6 million in 2011 to $88.6 million in 2012

Digital Photo Frame models decreased by 77% since 2010

Percentage of American households that owned DPF's grew from 19% in 2010 to 26% in 2011

Digital Photography Market is forecast to grow at 6 percent annually

http://www.consumersdigest.com/electronics/article/digital-photo-frames-fading-from-view/digital-photo-frames

Competition's Features are Selectively Useful

Technological and Conceptual Problems in the Industry

88% of digital photo frames are not Wi-Fi enabled

Competition from digital tablets and smart phones

Nixplay and Pix-Star

• Motion sensor

• Website and cloud support

• Multiple apps and video capabilities

http://www.capv.com/public/Content/INFOSTATS/Articles/2012/04.11.12.html

Race to Innovate Technical Features

Focused More on Distribution than Promotion

Prices Vary According to Specifications

Recent industry trend aimed at improving technical capabilities of Digital Photo Frames

More features introduced at the expense of increasing complexity

Brands use direct and indirect methods of distribution

Existing promotional methods are informative, but passive

http://www.consumersdigest.com/electronics/article/digital-photo-frames-fading-from-view/digital-photo-frames/P2

Ranges from $80 for a 8 inch frame, to $200 for a 15 inch screen with Wi-Fi

Variations in price are also caused by varying storage capacity