Identification of the Need-Set and Clustering of Market

A need set is all about recognizing your consumer’s needs. If a customer is not satisfied with
a product, it states that their needs are/were not met and the product in question is no
longer productive to the consumer. This leads to decrease in the value of product’s
profitable venture.

We released a questionnaire which had questions structured to identify the target market
from the segmented market. Thus, the responses aided us to create a need set for the
consumers and their expectations from the product.
To judge the consumer’s interest for the new product we used few parameters such as –
a. What genre of games they like to play?
b. Do they see themselves getting into AR/VR games?
c. Which brand would they prefer?
d. Would they be willing to spend a little extra for the same?

The questions were structured based on parameters as listed with source –

A. What consumers want.
B. When they want it.
C. What gets in the way.
D. Would they do it again.

https://www.forbes.com/sites/nikkibaird/2019/03/20/what-consumer-adoption-of-
augmented-reality-means-for-retail/#30991a074624

Snippets of the questionnaire can be viewed below.

Here’s a visual representation of the customer demographic based on the responses
Gender –

What gender are you?

87 responses What gender are you?

0.02

0.24

0.74

The income categories of the respondents is also a part of demographic segmentation can
be used to target a particular income category for the product marketing or it can act as a
base to judge the possible response of the product.

Considerable number of females were also considered as consumers in order to gauge the
product traction. Following clusters were created on basis of cohorts –
a) Generation Z
b) Generation Y
c) Generation X
d) Baby boomers
 During our research we also found that Generation Z is more excited about the
experience of AR/VR as Generation Y (73%), Generation X (70%) and baby boomers
(64%) lost to the majority of Generation Z (79%).
https://singularityhub.com/2015/12/17/vr-consumer-insights-for-2016-provided-by-
greenlight-vr/

The most liked genre of the game was Sports followed by Online Multiplayer. Both of these
genre have support in AR/VR and will be the first focus as most of the content for
developing these games can be found in open source libraries. The interesting thing is
Combat was expected to be the genre that could have utilized the augmented reality
environment however it ranked as an unpopular genre in our respondents.
Psychographic Segmentation
Respondents were asked about their intention for getting into AR/VR games into the future
and a little over than 72% were inclined, with close to 40% affirmative.

Majority of people were willing to buy the foreign brand as compared to a new Indian
brand. This was useful to determine that a company with the same product outside India,
can launch their product which is new for Indian operations and still gain traction.

Which brand are you most likely to trust and prefer when it
comes to video-gaming?

An established and expensive

foreign brand
A new Technologically
adequate, less expensive 41%
Indian Brand.
59%

In our survey we found that 40% of people agreed to buy an expensive foreign product to
experience the extended reality games.
25% of respondents were still not sure so they were considered as potential consumers.
The parents were also focussed on as consumers because they were potential buyers of
AR/VR products for their children. 28% of parents agreed to buy the consoles for their
children and close to 50% were deemed as potential consumers.
The Consumers Segmentation and Characteristics

1. Gen Z: “
Generation Z”, refers to people who were born after 1995. Gen Z can also be seen as the
current generation and the originators of this generation are in their mid-twenties. The
grownups from this segment have recently entered or are starting to enter the workforce.
Although the working members are earning their own income, most members of this
generation aren't adults yet and are therefore dependent on their parents for monetary and
lifestyle needs.

Characteristics and Insights

According to the Isobar-Ipsos #MeetTheZ survey, 55% of the Gen Z was of the opinion that their lives
run on tech and 66% believe that technology helps them learn new skills.

Thus we can say that gen z is more technologically driven and thus is more probable to try out new
technological products being introduced in the market and adapt to changes.

Even at a young age they have a great grasp on social media and they look for authenticity and
purpose when they engage with brands. Traditional marketing doesn't work for them. They need
something that holds their interest and involves them in various ways. That's why brands are
increasingly shifting towards new ways storytelling by embracing the meme culture and emoji, gif-
based youth lingo.

52% of this generation trust online reviews and influencer marketing. They idolize their favourite
influencers and are more possible to buy the products that those influencers recommend, according
to Morning Consult's recent influencer report

Even the youngest members in this cohort have an access to technology and know how to use
gadgets. Thus, the toy companies catering to children between 5-10 years have started incorporating
technology in their products.

Gen z Shows an increased eagerness for personalized and new products which have a novelty factor.
According to a survey conducted by McKinsey, 58% of gen z respondents stated that they would be
willing to pay more for products that are in sync with their individual personalities.

2. Gen Y (millennials):

Many brands make the mistake of thinking that most millennials are shallow and superficial. They
are complex customers who value a lot of different things and take many factors into consideration
before making a buying decision. They were born at a time when the technological landscape was
changing and therefore easily adapted to the use of technology.

Characteristics and Insights

They are highly social, but their social lives are also driven by technology. They prefer to use mobile
applications for meeting their shopping needs, but also visit brick and mortar stores.

Apart from being hard workers, they also value work life balance and invest time in relaxation and
leisure activities. They also give importance to pursuing their hobbies and passion.

When it comes to gaming, they are avid and serious gamers. theirs is the first generation to grow up
with widespread access to video games. Millennials believe in trying out new products and
experiences and therefore we anticipate that the VR/AR technology would be a big hit with this
gaming cohort.

they make most of our target segment and thus will play a major role in the marketing strategies
that Sony as a brand would have to come up with to sell their new offering.

Gen X

Also known as the “middle child” amongst all generations, it includes people born between the years
1965 and 1980.The first generation to experience the world of computers, they know enough about
technology to get the job done. They might not know the latest advancements in the world of
technology, but they understand its importance.

Characteristics and insights:

Their era was one of hardship and they focused more on saving money instead of spending it, so any
product they buy should have a high utility value.

The technology that they have been exposed to and are used to is one which was necessary for their
job, and they did not care much about leisure.

They are more likely to save money or invest and use it for future occasion or their children’s
education, rather than impulse or frivolous buying.

Their likes and dislikes are rooted in traditions and they value integrity, loyalty and nostalgia. So,
marketing campaigns that focus on family and emotions are the ones they are more drawn to.

They are more probable to buy the latest games to gift to their younger family members.

Baby Boomers :

Refers to the people born between the years 1946 and 1964, it comprises of people in their late 50s
to 70s.he people from this generation are not adept at using technology because most of them were
born at a time when not much technological advancements had been made. Their lives do not run
on technology and they prefer doing things the old fashion way.

Characteristics and Insights

The elder members of this generation have reached the age and even surpassed the age of
retirement and have a generous amount of disposable incomes.

Family is their most important asset and they would willingly spend money on their children and
grandchildren.

Television, Newspapers and Radio are the best advertising mediums to reach this population,
although some members are active on social media sides-Majorly Facebook.

For their own personal enjoyment, they are more drawn towards traditional games like board
games, card games, etc. and the chances odd them adapting to novel technologies like VR and AR is
minimum.

https://www.google.com/amp/s/www.businessinsider.in/advertising/ad-agencies/news/indian-gen-
z-spends-an-average-of-8-hours-per-day-online-isobar-ipsos-meetthez-
survey/amp_articleshow/74833473.cms

https://www.kasasa.com/articles/generations/gen-x-gen-y-gen-z

The conclusions which can be drawn from the ordering of features of the product are as follows:

1. The features which play station with AR satisfies: The PlayStation with AR offers easy access
to the best gaming and entertainment available. Whether one wants to enjoy online
multiplayer gaming with PlayStation Plus, stream movies and TV shows, Sony got you
covered. Capture and Share Your Biggest and Best Moments feel them with help of AR.
2. Price: It is well suited to upper middle class or higher-class income customers to carry the
product as the price of the product ranges from 40000- 55000 social gamer, addictive
gamers, problem solvers or achievement-based gamers will be ready to invest this much
amount of money in PlayStation with AR.
(Cost in Rs. per Piece)

Cost of Production
Particulars Price
Play station 35000
Console (glasses+ play stick+ projector) 15000
Charger 1000
Cards 800
Marketing/Packaging/Transportation 500
Total 52300
 a. Playability: We will furnish directions of use in the form of a manual with the product to
ease its usability. A manual will be provided to help the customers for setting up the play
station and console and detailed guide about the system software and how to use it will
also be provided. The guide will also be updated as there will be changes in the software
and technology. Manual will explain both the hardware and software features.
b. Virtual and Audio Aesthetics
The play station with AR emits rays which transform the place into a real battle field. It is
also equipped with features to produce sound effects and create visuals with digital
transformation to send the consumer in the most motivating state of mind and rather
than experiencing objects as two dimensional, AR will give them a 360-degree tour.
c. Personal Gratification: It refers to the incitement that the product is capable to arouse.
Our product being a differentiator is worthy enough to heighten blood rush in players
and create the excitement within them. It will give them the real life experience of
gaming which they can’t have normally. It will allow audience experience gaming they
wouldn’t normally experience. It will be a another world for the hard core gamers.

3. The features which play station will not be able to satisfy to the fullest
a. Creative Freedom: The PlayStation will be developed to let consumers perform certain
gestures while in action. However, the range of moves will not be able to perform . The
product can be innovated further by introducing certain software that can let the
consumer perform any kind of moves.
b. Social Connectivity: The game involves a battle between two players. The demand of the
society is however, far more in terms of networking. We will thus plan the evolution of
the product in a manner that will engage many individuals in a round of the game.
c. Hardware and internet connectivity: Crucial hardware elements like cameras, screens,
motion sensors, processors and lastly, high speed internet connectivity can be problem
and AR will not be able to provide fullest. The space call also be the issue because it can
create harm if they are not playing it in the safe area.

4. Features of PlayStation with AR that are yet to be tested

a. The productivity of the product can be accurately measured once the product will
progress to the testing phase. There can be some limitation with regard to human factor
in the use of AR.