Services: Strategy

Strategy: Case Study 1

Determine if there is a market for in-flight internet access, and if so, target segments, important product attributes, and price points.

Client

Largest U.S. airplane manufacturer

Business Challenge

Explore interest for and potential profitability of designing and installing an in-air Internet access system in its aircraft.

  • Facing increasing global competition, the company wanted to pursue adding end–customer desired services that would both differentiate itself from competitive vendors and potentially provide new revenue streams.

The Solution

Interviewed key executives and managers to surface hypotheses about the product and strategy.

  • Conducted secondary research on current and projected Internet usage patterns and projected market trends of electronic communication devices to help frame primary research.
  • Prioritized issues to be studied in detail.
  • Developed recommended research design.
  • Conducted both quantitative (conjoint analysis survey) and qualitative research (focus groups) to determine air traveler preferences, potential usage and price sensitivities to various configurations of airborne Internet delivery systems.
  • Developed final recommendations for product design attributes and pricing.
  • With client, met with major airlines to share the research and pitch the service.

Business Benefits

Consumer research–supported product design decisions for the launch of a branded Internet access service, including:

  • Air traveler communication behaviors, expectations, and usage patterns today.
  • Access–device preferences at that time and expected in the future.
  • Likely usage rates for in–flight Internet and remote access services:
    1. Differences across demographic segments.
  • The degree to which bandwidth can be conserved through an onboard portal.
    1. Content or connectivity as the key ingredient?

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