Table of Contents
Issues in the Market
-
- Key themes
- Definition
Insights and Opportunities
-
- Is the current number of operator’s set to fall?
- High-speed mobile broadband becomes a reality
- Google could shake up the market
- Increasing penetration to lower socio-economic groups
- Increasing integration into home
- Are MVNOs becoming increasingly disposable?
Fast Forward Trends
-
- Back to the future
- Marketing implications
- Customise this!
- Marketing implications
Market in Brief
-
- Increasingly saturated market
- Consumers want value
- Technology moves on
- Competition increasing for all
- Many consumers remain conservative towards manufacturer and operator efforts to drive the market
Internal Market Environment
-
- Key points
- We’re all mobile these days
-
- Figure 1: Mobile phone ownership, 2003-07
-
- Figure 2: Outbound call minutes, by fixed and mobile line, 2002-06
- Mass ownership brings troubling consequences for networks
-
- Figure 3: Who pays mobile phone bill, 2005 and 2007
- Are networks really suffering?
-
- Figure 4: Real cost of mobile voice and SMS per month(1), 2002-06
- Figure 5: Average monthly expenditure, by fixed and pay-as-you-go, 2003-07
- But a mature market does present networks with challenges
- Triple play
-
- Figure 6: Summary of multi-service operators offering mobile and other services, 2007
- Increasing network loyalty
- Networks want to focus on handset manufacturing
- Established handset makers are moving into new markets, too
Competitive Context
-
- Key points
- Social networking
- Fashion handsets
- Advertiser-funded networks
- Fixed line
- The lure of the iPod
Strengths and Weaknesses in the Market
-
- Strengths
- Weaknesses
Who’s Innovating?
-
- Key points
- Faster mobile Web
- 3.5G
- WiMAX
- Handset innovation
- The ‘smartphone’ lives up to its name
Market Size
-
- Key points
- Mobile subscriber numbers continue to rise…
-
- Figure 7: Mobile phone subscribers, 2002-07
- ...boosting mobile revenues
-
- Figure 8: Total mobile phone revenues, 2002-07
- Handset sales also record strong growth
-
- Figure 9: UK retail sales of mobile phone handsets (including contract), by volume and value, 2002-07
Market Value Forecasts
-
- We predict the development in the mobile market on basis of the following assumptions:
-
- Figure 10: Monthly fixed contracts, average annual % change, 2003-07
- Consumer groups used in analysis
-
- Figure 11: Monthly fixed contracts, average annual % change, 2003-07 applied to consumer groups
- Average annual expenditure of consumer groups
-
- Figure 12: Number of subscribers within consumer groups, average monthly expenditure, 2007
- Three scenarios
- Static scenario
-
- Figure 12: Static scenario – forecast of subscribers, value sales and monthly expenditure by consumer groups, 2007-11
- Figure 13: Static scenario, Past market’s growth rates per annum and forecast value sales
- Stable scenario
-
- Figure 14: Stable scenario – forecast of subscribers, value sales and monthly expenditure by consumer groups, 2007-11
- Figure 15: Stable scenario, past market’s growth rates per annum and forecast value sales
- Growth scenario
-
- Figure 16: Growth scenario – forecast of subscribers, value sales and monthly expenditure by consumer groups, 2007-11
- Figure 17: Growth scenario, Past market’s growth rates per annum and forecast value sales
Market Segmentation
-
- Key points
- Prepay remains main market for new handset sales...
-
- Figure 18: UK retail sales of mobile phones, by volume and type of package, 2004-06
- Contract is increasing its share of the subscriber market...
-
- Figure 19: Total network subscribers, by type of agreement, 2004-06
- As is the profile of the MVNO sector…
-
- Figure 20: Total network subscribers, by type of operator, 2004-06
- 3G sector begins to show growth
-
- Figure 21: Total network subscribers, 3G v other, 2004-06
Market Share
-
- Key points
- Handset market
- Sony Ericsson outperforms all others
-
- Figure 22: Estimated mobile phone handset brand share, by volume, 2002-06
- Major brands win out against new upstarts
- Operator market
- Fragmented market with O2 and MVNOs gaining share
-
- Figure 23: Total network subscribers, by network operators, 2002-06
- Shift between prepay and contract presents a more complicated picture
-
- Figure 24: Mobile phone subscribers, by network operator and payment type, 2004 and 2006
- MVNOs – what future do they have in the market?
- 3G – 3 facing increased competition
-
- Figure 25: Estimated share of 3G subscriptions, 2004 and 2006
Companies and Products
-
- Handset manufacturers
- LG
- Motorola
- Nokia
- Samsung
- Sony Ericsson
- Network Operators
- 3
- O2
- Orange
- T-Mobile
- MVNOs
- Tesco Mobile
- Virgin Mobile
Brand Elements
-
- Brand map
-
- Figure 26: Attitudes and usage of mobile phone brands, september 2007
- Nokia
- Brand background
- Brand performance
-
- Figure 27: Attitudes towards the Nokia brand, September 2007
- T-Mobile
- Brand background
- Brand performance
-
- Figure 28: Attitudes towards the T-Mobile brand, September 2007
- Motorola
- Brand background
- Brand performance
-
- Figure 29: Attitudes towards the Motorola brand, September 2007
- 02
- Brand background
- Brand performance
-
- Figure 30: Attitudes towards the O2 brand, September 2007
- LG
- Brand background
- Brand performance
-
- Figure 31: Attitudes towards the LG brand, September 2007
- Siemens
- Brand background
- Brand performance
-
- Figure 32: Attitudes towards Siemens brand, September 2007
- Orange
- Brand background
- Brand performance
-
- Figure 33: Attitudes towards the orange brand, September 2007
- Samsung
- Brand background
- Brand performance
-
- Figure 34: Attitudes towards the Samsung brand, September 2007
- Sony Ericsson
- Brand background
- Brand performance
-
- Figure 35: Attitudes towards the Sony Ericsson brand, September 2007
- BlackBerry
- Brand background
- Brand performance
-
- Figure 36: Attitudes towards the BlackBerry brand, September 2007
- Brand qualities of mobile phone brands
- Nokia is most affordable, BlackBerry least.
-
- Figure 37: Consumer usage of various mobile phone brands, September 2007
- Experience of various mobile phone brands
- Nokia’s popularity is dominant.
-
- Figure 38: Consumer usage of various mobile phone brands, September 2007
- Brand consideration for various mobile phone brands
- BlackBerry and LG have best recruitment prospects.
-
- Figure 39: Consideration of various mobile phone brands, September 2007
- Brand satisfaction for various mobile phone brands
- Nokia and Sony Ericsson make a point of excellence
-
- Figure 40: Satisfaction of various mobile phone brands, September 2007
- Brand commitment to various mobile phone brands
- BlackBerry isn’t used alone.
-
- Figure 41: Commitment to various mobile phone brands, September 2007
- Round up
Brand Communication and Promotion
-
- Key points
- Network expenditure rises while investment on handsets stalls
-
- Figure 42: Main monitored media advertising expenditure on mobile phone handsets and advertising as a percentage of sales, 2002-07
- Figure 43: Main monitored media advertising expenditure on mobile phone networks and advertising as a percentage of sales, 2002-07
- Investment by manufacturers is concentrated in the hands of a few companies
-
- Figure 44: Total main monitored media advertising expenditure on handsets, by manufacturer/other company, 2004 and 2006
- Big four invest in their fight for market share
-
- Figure 45: Total main monitored media advertising expenditure on networks, by operator/other company, 2004 and 2006
- Use of low-cost mass media is popular with handset manufacturers...
-
- Figure 46: Main monitored media advertising spend on mobile downloads, by channel, 2003-07
- ...with television remaining popular with network operators
-
- Figure 47: Main monitored media advertising spend on mobile downloads, by channel, 2003-07
- Advertising strategies
- Operators – looking to maximise opportunities in a crowded market
- Manufacturers – heavily focused on the promotion of specific models
Channels to Market
-
- Key points
- Independents lose out as new channels strengthen share
-
- Figure 48: Retail volume sales of mobile phone handsets, by outlet type, 2002-06
- Support and integrated approach vital
- Network operators tighten grip on specialist sector of the market
-
- Figure 49: Principal specialist retailers of mobile phones, by number of outlets, 2002-06
Consumer – Purchasing
-
- Key points
- Traditional retail outlets remain main purchase channel
-
- Figure 50: How last mobile phone was purchased/upgraded, 2007
- MP3/Radio proving popular as a feature
-
- Figure 51: Which of the following mobile phones do intend to buy or currently own?, June 2007
Consumer – Mobile Handset Usage
-
- Key points
- Text services and camera features proving most popular
-
- Figure 52: Features have and features used on mobile phones, 2007
- Basic phone functions are the most used every day
-
- Figure 53: Which of the following do you do with your mobile phone? And how often do you do it? June 2007
The Consumer – Mobile Network Decision-making and Usage
-
- Key points
- Price, price and price again
-
- Figure 54: Important factors when choosing mobile phone network, 2007
- Healthy network market exists although some operators perform better than others in customer retention
-
- Figure 55: Please indicate your service provider and plan type. Please can you also indicate if you have ever been with another service provider and switched, June 2007
The Consumer – Attitudes and Motivations
-
- Key points
- Value always comes out top
-
- Figure 56: Thinking about mobile phones, which of the following statements do you agree with?, June 2007
- Four end-user segments identified within the market
- Group 1: Unconcerned
- Group 2: A Necessary Burden
- Group 3: Mobile-mad
- Group 4: Forever Turned On
Appendix
-
- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Consumer – Additional Data
-
- Figure 57: Features have and features used on mobile phones, 2003-07
- Figure 58: Important factors when choosing mobile phone network, 2003-07
- Attitude cluster analysis
-
- Figure 59: Consumer typologies, by gender, age, region, socio-economic group, household income, media usage, presence of children, supermarket usage and TV reception, June 2007
- Attitude clusters and cross-tabs
-
- Figure 60: Consumer typologies, by attitudes towards mobile phones, June 2007
- Figure 61: Consumer typologies, by interest in features, June 2007
-
- Figure 62: Consumer typologies, by network operator and target group, June 2007
- Figure 63: Consumer typologies, by interest in features and number of features used, June 2007
-
- Figure 64: Monthly fixed contracts, average annual % change, 2003-07
- Figure 65: Numbers of features on a mobile handset used
- Figure 66: Breakdown of payg and fixed contract mobile users, 2007
Back to top