Conjoint Analysis for the Launch of a New Mobile Phone

Tools Used: Python (Jupiter Notebook)

Refer to portfolio_task6.ipynb or portfolio_task6.html for a detailed report of the analysis.

Introduction

This report presents a conjoint analysis study to determine consumer preferences for a new mobile phone. By evaluating key product attributes such as price, battery life, number of cameras, and storage capacity, we aim to identify the features that influence purchasing decisions.

Key Findings

Price:

• The most important attribute of the new phone that affects customer's puchasing decision is Price.
• As price increases, customers' perceived value steadily declines. Therefore, it is essential to balance affordable pricing with the most desirable features to align with customer preferences while maintaining profitability and competitiveness.

Features:

• The second-most important attribute is Memory Storage, the higher the storage, the higher customer's preference.
• Consumers are more willing to pay for the larger storage upgrade when moving from a mid-tier option (256 GB) to the highest capacity (512 GB). Thus, we can introduce deals or payment plans for the 512 GB versions to encourage customers to opt for the larger capacity.
• As larger screens do not significantly enhance customer's interest, position the large-screen product as a premium or niche offering, targeting specific customer segments that value larger displays instead of the majority of customers.

Recommendations

Based on the utilities derived from the conjoint analysis, the proposed product pricing strategy aims to maximise customer preference with two product models:

Model	Display Size	Number of Cameras	128 GB	256 GB	512 GB
Standard	5.5 Inches	3	£399	£599	£799
Pro	6.1 Inches	3		£799	£999

• The Standard model is the primary version, designed to appeal to a larger customer base who prefer a portable-sized phone at a lower price. With storage options of 128 GB, 256 GB, and 512 GB, this model is expected to produce and sell more units, as the analysis shows the significant customer preference for affordability and compact size.
• The Pro model aims to cater to customers seeking more larger phones, only offering 256 GB and 512 GB storage options.
• Both versions include 3 cameras, a feature that the analysis indicates moderate customer's preference.