Mobile Snapshot.pdf

Mobile Market Snapshot © March 2011

Mobile Market Snapshot

March 2011 Net Advocates (Scaled)


Contents

Introduction to Usurv’s Mobile Market Snapshot .................................................................................. 3

Methodology ....................................................................................................................................... 3

Sample................................................................................................................................................. 4

Objectives ........................................................................................................................................... 4

Executive Summary ................................................................................................................................. 5

Main Findings .......................................................................................................................................... 7

Mobile Phone Usage ........................................................................................................................... 7

Net Advocacy Scores ........................................................................................................................... 8

Consideration Set .............................................................................................................................. 10

Growth Potential ............................................................................................................................... 12

Repurchase ....................................................................................................................................... 13

Market Perceptions .......................................................................................................................... 15

Appendices ........................................................................................................................................ 16

Questionnaire ............................................................................................................................... 16


Introduction to Usurv’s Mobile Market Snapshot

Usurv set down a challenge; to set up a survey, collect data and report on a snapshot of the mobile

market in the UK, all within 24 hours.

The mobile phone market in the UK is changing on an almost daily basis with the introduction of

new models and new brand entrants. Marketing initiatives / product launches and online and

offline advertising campaigns have had a dramatic effect on consumer behaviour. Usurv’s

approach to collecting consumer feedback has enabled clients to see changes instantly (all data

was collected during a single day).

Nine brands were covered by the Mobile Market Snapshot – Nokia, iphone, Blackberry, Samsung,

HTC, Sony Ericsson, Motorola, LG and Sagem. Motorola and Sagem were subsequently removed

from analysis due to low incidence in the UK market.

Methodology

Usurv has an established network of broad based member sites. Our innovative technology

enables us to sample according to a specific demographic profile from these sites. Currently

Usurv achieves a high 43% average completion rate across our surveys.

For the March 2011 snapshot 2,000 interviews were conducted on March 14th

. Results were

available within three hours.

Five questions were asked and the interview lasted less than 40 seconds. The questionnaire is

contained in the appendix.


Sample

Respondents were recruited from partner sites and adhered to the following demographic profile:

Objectives

The objectives of Usurv’s Mobile Market Snapshot were to assess at a single moment in time

consumer behaviour in the mobile phone category:

• Mobile Phone Usage

• Net Advocacy Score

• Consideration set

• Growth Potential

• Repurchase

• Market Perceptions

Gender %

Males 58

Female 42

Age %

18-29 20

20-39 21

40-49 33

50-59 19

60+ 7


Executive Summary

Nokia has the highest penetration in the mobile phone market and along with Samsung and Sony

Ericsson accounts for 60% of all brands owned by consumers.

This dominance may change as many of the behavioural measures indicate strong challenges by

the main three Smartphone brands – iphone, Blackberry and HTC.

The iphone is, perhaps not surprisingly, the brand with the greatest potential. The iphone’s Net

Advocacy Score, the proportion who are likely to repurchase and low level of churn all indicate a

brand in the ascendency.

Blackberry is also a strong brand with considerable potential, however, Blackberry has a large

proportion of Ambivalent current users who are only “fairly likely” to repurchase the brand.

These should be investigated by Blackberry with a view to converting them to Advocates.

HTC, though having comparatively fewer current users is a brand that is likely to gain market

share. Behavioural indicators all show growth potential for the brand. HTC could capitalise on

this position by increasing its brand awareness to bring it to the attention of more mobile users.

It looks likely that the number of users Nokia has will remain stable. Their Net Advocacy Score is

below average, indicating a brand that does not have a particularly loyal group of users. The level

of repeat purchasers is also comparatively low.

Out of the brands investigated, LG is in the worst position in the category. LG’s negative Net

Advocacy Score is the lowest in the mobile market and significantly below average. Likely churn

levels for LG are high and as a result LG will need to spend a substantial part of their marketing

budget attracting new customers to replace those who churn. Given it costs a significant multiple

to attract new customers rather than retain existing ones this is not a positive finding for LG.

The reasons for the above findings are likely to relate to how the brands are perceived by users.

Perceptually the mobile phone market divides itself along two main dimensions. These two

dimensions are characterised by:

Dimension 1: Latest Features and Functions / Fun / Helps me with my work

Dimension 2: Reliable / Has all the features I need / Easy to use / Value for money

The main Smartphone brands (iphone, Blackberry, HTC) dominate the first dimension and the

older established brands (Nokia, Samsung, LG and Sony Ericsson) dominate the second dimension.

Net Advocacy Scores / Repurchase rates and Growth Potential are highly correlated with the two

dimensions.

The brands that currently dominate the first dimension and are seen as fun, helpful for work and

having the latest features and functions should strive to remain there.


The brands that reside within the second dimension need to assess how to incorporate a more

aspirational “fun” and leading edge positioning into their communications / products. LG should

capitalise on its position as the “value for money brand” whilst incorporating more of an

aspirational positioning.


Main Findings

Mobile Phone Usage

Nokia still leads in terms of overall penetration, however compared to the market pre the

introduction of Smartphones, this dominance has declined. Slightly over 60% of the sample had

either a Nokia, Samsung or Sony Ericsson mobile phone.

The penetration of the iphone within the sample is slightly higher at 12% than Blackberry with 9%

and the comparatively new entrant HTC standing at 6%.

Main Mobile Phone

Base: All respondents - 2000

.0 5.0 10.0 15.0 20.0 25.0 30.0

None of these

Motorola

Sagem

LG

HTC

Blackberry

iphone

SonyEricsson

Samsung

Nokia


To calculate the Net Advocacy Score (NAS), the percentage of customers who are Antagonists are

subtracted from Advocates.

Companies / brands / services with a high NAS Score outgrow competitors.

The chart below shows the proportion of current customers that fall into the three categories.

Though HTC has more advocates than Blackberry, it has a lower NAS as it has twice as many

Antagonists as Blackberry.

The iphone and Blackberry have broadly similar numbers of Antagonistic users. Blackberry could

further improve its NAS if it were to understand why it has a disproportionately large group of

Ambivalent users. If Blackberry were able to convert half of these Ambivalent customers to

Advocates they would have a similar NAS to iphone.

Net Advocacy Score

Base: All current users of mobile phones –

Nokia 544, iphone 231, Blackberry 188,

Samsung 404, HTC 114, Sony Ericsson 284, LG 102

0%

25%

50%

75%

100%

Advocates (9-10)

Apathetic (7-8)

Antagonists (1-6)


Growth Potential

The table below compares current usage “this is my main mobile phone” with future consideration

“I would consider this mobile if I changed phones tomorrow” and creates a growth index to show

the brands with the greatest potential.

The iphone, Blackberry and HTC have an extremely high growth potential. If they are able to

convert even a small proportion of the customers who would consider them then they are likely

to grow substantially.

Conversely, the remaining brands in the sample may decrease as their growth potential is low.

Growth Potential

Base (Current Usage): All current users of mobile phones –



Base (Consideration): All respondents – 2000

Brand Current Usage Consideration Growth Potential

iphone 12% 34% 195%

Blackberry 9% 25% 164%

HTC 6% 14% 145%

Nokia 27% 29% 6%

LG 5% 5% -3%

Sony Ericsson 14% 13% -5%

Samsung 20% 17% -14%


LG has an extremely high level of current users who are very unlikely to purchase the same phone

again. If all these customers churn, as could be expected, LG will have to spend a substantial part

of their marketing budget just to replace lost customers. By comparison iphone can spend all their

marketing budget attracting new customers.

Likelihood of repurchasing current mobile phone




0%

25%

50%

75%

100%Very Likely

Fairly Likely

Neither Likely nor

Unlikely

Fairly Unlikely

Very Unlikely


Market Perceptions

A correspondence map has been produced to show the relative position of brands and associated

perceptions. The closer a brand is to a word / phrase the stronger it is associated with that word /

phrase. Two brands positioned in the same quadrant of the map have similar characteristics.

The map has a scale on the x and y axis - 79% and 13%. The scale is used to show that the map

should be interpreted as six times as wide as it is high. The map places a complex grid of data in a

single picture with all the distances between the data being kept relative. The scale helps in the

interpretation showing that the map is long and thin, rather than tall and wide.

The Mobile Market Snapshot Map has two basic dimensions:

• The dimension to the right of the map is dominate by the Smartphone brands (iphone,

Blackberry and HTC) which are more strongly associated with fun, the latest features and

functions and helps with my work.

• The dimension to the left is dominated by the established brands (Nokia, Samsung, LG and

Sony Ericsson) and more strongly associated with value for money, reliability, and ease of

use.

LG distinguishes itself as offering value for money, though given its NAS, this is not an aspirational

place for the brand to be.

Correspondence Map




Nokia

iphone

Blackberry

Samsung

HTC

Sony Ericsson

LG

Easy to use

FunReliable

Has the latest

features and

functions

Is a phone I trust

Has all the features

I need Feels good in my

hand

Offers value for

money

Helps me with my

work

13

%

79 %


Appendices

Questionnaire


For more information contact:

[email protected]

Mobile Snapshot.pdf

Documents

Transcript of Mobile Snapshot.pdf