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How To Reach New Segments Segmentation
1.
Developing markets for
smartphones and how to reach new consumer segments Mauri Metsäranta Mobile Software Sales and Marketing Nokia 1 © 2007 Nokia Corporation
2.
• Growth market
opportunities • Where are they • Who they are • How consumers use S60 smart devices • Usage profiles • Data usage drivers • Comparison to Europe • Successes and challenges in driving smartphone adoption • Why would they buy a smartphone • How to sell 2 © 2007 Nokia Corporation
3.
Where are the
largest growth markets? Russia China Mexico India Egypt Thailand Indonesia Brazil Chile South Africa 3 © 2007 Nokia Corporation
4.
Who are they? 4
© 2007 Nokia Corporation
5.
Broadly Speaking, Consumers
Fall Within 4 Quadrants High Involvement Mobile Mobile Communication Communication as trend leaders empowerment tool Rational Aspirational Mobile Mobile Communication Communication only when trend followers necessary Low Involvement Source: Nokia consumer research 2006-2007 5 © 2007 Nokia Corporation
6.
Focus into “high
involvement“ segments HIGHER Technology Leaders INVOLVEMENT Technology Stylists Pragmatic Leaders Young Explorers Life Builders Life Jugglers Style Leaders RATIONAL ASPIRATIONAL Image Seekers Mature Acceptors Style Followers Family Providers LOWER Simplicity Seekers INVOLVEMENT Source: Nokia consumer research 2006-2007 6 © 2007 Nokia Corporation
7.
Young Explorers
Life Builders Very social people and Aiming to make something of living life to the full themselves What do they look for in mobile What do they look for in mobile communications? communications? • Immediate connectivity to friends for organizing • Convergence is a key purchase criteria social lives • Data services for personal productivity • All-in-one handset with computer functionality • Digital content such as gaming, watching, music • Music • All-in-one handset with computer functions, large • Advanced communications functionality number of features • Mid-high to high handset and services value • High-quality camera Source: Nokia consumer research 2006-2007 7 © 2007 Nokia Corporation
8.
Europeans spent 48
minutes a day using their smartphone EUROPE 2007 Other Messaging 31 % Smartphone usage minutes increased 33 % 60% in Europe in a year! Voice minutes have not increased, but other functions have acquired much more time Voice calls (multimedia, navigation, browsing, email, 12 % Multimedia/ MMS, SMS)… Infotainment PIM 13 % 11 % EUROPE 2006 Other 20 % Messaging 31 % Voice calls 24 % Multimedia/ Infotainment 11 % Source: Nokia Smartphone 360 studies 2006-2007 PIM 14 % 8 © 2007 Nokia Corporation
9.
Chinese spent 82
minutes a day using their smartphone! Number of minutes spent per application category CHINA 2006 S60 Browser 40 File Manager 35 Other Dictionary 15 % 30 Minutes / Day Messaging 38 % S60 Messaging 20 Voice calls QQ 22 % 12 Pica 11 XRose… 10 6 5 4 3 2 2 1 1 0 Multimedia/ PIM Infotainment y ce es M ng f ig ng 15 % ia n ity t en r/U tilit w PI ed i am 10 % t iv si on gi Vo no m t im U w sa uc in C G nk ro es ta ul od B fo M M Contacts Pr In e Gallery th Log O Camera Calendar… QQPlayer… * Source: Nokia, 360 Smartphone study/China 2006 9 © 2007 Nokia Corporation
10.
Internet services drive
data service usage Source of data traffic in China* • 40% from connected add-on Multimedia / Other infotainment applications 0,3% 19 % • Multimedia data nearly all from internet services • Nearly half of the messaging data Messaging from add on IM applications Browser 19 % 62 % Contacts QQ Groups Information Friends List QQ Show * Source: Nokia, 360 Smartphone study/China 2006 10 © 2007 Nokia Corporation
11.
They are after
style and features • Features that are relevant • Brand • Design with personalization • Affordable price • Internet services and add-on applications • Growth market differ from developed markets in three aspects • Word of Mouth • Budgeting • Trust 11 © 2007 Nokia Corporation
12.
65% of the
decisions are made in-store • Build on the device brand • Provide on-line to support for pre- purchase decisions and to increase loyalty • Utilize social influencers and communities • Use and train promoters to sell value and excite the customers in retail • Affordability through re-fresh campaigns • Differentiate from feature phones with partner innovations • Right balance with Global and local features 12 © 2007 Nokia Corporation
13.
Examples
China India 13 © 2007 Nokia Corporation
14.
Nokia E50 re-fresh
campaign in India 14 © 2007 Nokia Corporation
15.
Nokia N72 travel
campaign in India 15 © 2007 Nokia Corporation
16.
Nokia 6120c launch
with applications in China 16 © 2007 Nokia Corporation
17.
Stock application
campaign with S60 device portfolio in China 17 © 2007 Nokia Corporation
18.
Challenges
• Distribution and retail experience • Cost and speed of data traffic • Availability of local applications and content • Competence and technical support • Developer business case • Discovery, distribution and billing 18 © 2007 Nokia Corporation
19.
Thank You!
Please visit www.s60.com or www.s60.com/cn www.blogs.s60.com 19 © 2007 Nokia Corporation
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