Mobile Snapshot.pdf
Transcript of Mobile Snapshot.pdf
Mobile Market Snapshot © March 2011
Mobile Market Snapshot
March 2011 Net Advocates (Scaled)
Mobile Market Snapshot © March 2011
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
Mobile Market Snapshot © March 2011
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.
Mobile Market Snapshot © March 2011
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
Mobile Market Snapshot © March 2011
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.
Mobile Market Snapshot © March 2011
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.
Mobile Market Snapshot © March 2011
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
Mobile Market Snapshot © March 2011
Mobile Market Snapshot © March 2011
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)
Mobile Market Snapshot © March 2011
Mobile Market Snapshot © March 2011
Mobile Market Snapshot © March 2011
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 –
Nokia 544, iphone 231, Blackberry 188,
Samsung 404, HTC 114, Sony Ericsson 284, LG 102
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%
Mobile Market Snapshot © March 2011
Mobile Market Snapshot © March 2011
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
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%Very Likely
Fairly Likely
Neither Likely nor
Unlikely
Fairly Unlikely
Very Unlikely
Mobile Market Snapshot © March 2011
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
Base: All current users of mobile phones –
Nokia 544, iphone 231, Blackberry 188,
Samsung 404, HTC 114, Sony Ericsson 284, LG 102
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 %
Mobile Market Snapshot © March 2011
Appendices
Questionnaire