Segmentation Approach Dropbox Bases: Descriptors Psychological: Demographic, Lifestage, Geodemographic Profile: Psychographic (lifestyles), Benefits sought Behavioral:

al: Purchase/transaction, Product usage, Media usage

Very attractive market segment. Innovators, Early adopters, and many of the Early Majority will have means and aptitude to build upon as a customer base to grow the business.

Diffusion of Innovations Framework Overall, Dropbox has great mass appeal and has done a very effective job of capturing market share and creating awareness among individuals who may not even have been aware of the benefits of their need for such a service. These individuals are likely operating highly mobile, using multiple applications and devices, and creating/sharing large sized files via DVDs, USB, SharePoint, or other shared folders in the workplace or school. Dropbox demonstrates a clear relative advantage replacing the need for some of these more cumbersome methods in the simplicity and ease to which it can be incorporated within present activities. Compatibility extremely good fit within the present behaviors, desires and needs of segments Dropbox is targeting. Given the function of the product, it replicates existing practices and does not introduce any new aspects. For example, saving files to folders that are ones hardrive is something most computer users do multiple times on any given day. The beauty of Dropbox is how the folder is and program icon is instantly integrated with existing systems. Further, the mobility features of the program thoroughly allow for multiple device integration across several platforms any one individual user might be using. Complexity The simplicity of Dropbox is clearly one of its major benefits. It is extremely intuitive and through the simple process of installation of the software, one can be up and running and utilizing the value added aspects of this application. Trialability Dropbox has executed an excellent model of triability through its offering of instantly granting users 2GB of free space to demo the product and become more familiar with it. In many cases, users needs are more than sufficiently met with only this allotment of storage space. Observability Generally speaking, the observability of Dropbox and products of this nature is in the medium range. Adoption of Dropbox or similar products is high when discovered, but the discovery

process is not necessarily rampant. Much of Dropboxs success has been through the viral word of mouth benefits stemming from Innovators and Early Adopters. Moreover, there has not been widespread formalized adoption of this type of application among companies. Much of the usage had initially stemmed from rogue behavior among individuals who identified Dropbox and products of the like to solve an existing need.

While SharePoint is utilized in many companies, it is not the most intuitive product to serve the individual users needs beyond document sharing within the workplace. Dropbox allowed users to share documents with themselves or others to view or work on using various personal and company issued devices that did not readily support software such as SharePoint.

Among the Categorization of Innovation Adopters, I would contest that present Dropbox customers, for the most part, are falling within the first three categories: Innovators; Early Adopters; and, Early Majority. Where the company may have more difficulty will be individuals who fall within those last two categories: Late Majority and Laggards. For example, many older individuals might be less trusting about the idea of their information/data sitting in a cloud. These individuals also tend to be ones less inclined to conduct routine activities online such as banking or file taxes that are readily accepted and practiced among the typical Dropbox user. Detail Rob example and lawyers. Victim of their own success Current business model might hinder expansion of paying customers because some users needs are adequately met with the free 2GB of space. Why by the cow when you are getting the milk free? Will not apply to the power user types sharing, storing or moving larger files, but those looking for simple replacement to avoid carrying around a DVD or USB drive, have accessibility and sharing capability to files across multiple platforms (mobile devices, computers, tablets, etc.).

New Positioning Enhanced compatibility with common software in the workplace. Alliances with mobile phone and device companies for instantaneous integration of backing up things stored on ones mobile device. Interfaces supporting not only the access to, but the playing of music stored in the cloud on mobile devices. Benefits to SMB about savings in capital expenditures related to hardware.

Security it will be a concern among IT Managers, older consumers who less trusting and comfortable with anything stored or transferred across the cloud, and particular industries being more resistant to adoption (culture and punitive aspects when things go awry: e.g., healthcare).

Lifestyle appeal convey the value of the mobility and seamless ease of its use to those who are not apprehensive to adoption, but may not be early adopters and part of the segment within the viral wave related to Dropbox.

Website Dropbox Peripheral: Friendly, unintimidating, and whimsical. Geared very much toward the individual consumer. Box Central: Friendly, unintimidating, and more geared toward the business user. Immediate impression of security conveyed. Detailed training. Meticulous.