SMART: V1 who to serve for the Telenor Group ?
Distribution in market (% / #)
Revenue share (%)
Total value in lifetime (DKK)
Churn propensity (%)
Mobile data users (%)
18% / 1 mill. 38% 6927 22% 58%
13% / 0,7 mill. 7% 2273 13% 25%
13% / 0,7 mill. 6% 1913 12% 34%
12% / 0,7 mill. 8% 1059 31% 49%
17% / 1 mill. 30% 3611 39% 84%
19% / 1,1 mill. 11% 2175 25% 48%
2
Introducing the six consumer segments initially points to the fact that only two segments stand for two thirds of revenue in the market…
SMART STEER CO. MEETING || INTRODUCING THE SEGMENTS
SOURCE: MAP, Telenor GroupNOTE. Distribution in market is based on 5,6 mill. people
1
2
3
4
5
6
Recommended segment mix in Telenor portfolio will cover 90 % of the market and overlap on the most exposed segment
SMART STEER CO. MEETING || STRATEGIC RESOURCES & SUM UP
3
SOURCE: Team analysis
1
5 4
6
NONE
3
4
The Quality oriented segment don’t mind spending a little extra
SOURCE: Telenor MAP
SMART STEER CO. MEETING || TELENOR; WHO TO SERVE
1SEGMENT
Family with older children
52YEAR-OLD
DEMOGRAPHICS
Middle/high income38 % of market
VALUES
• I´m oriented towards nature and happy pay more for environmentally friendly products
• I place high importance on elegance and aesthetics
• Good customer service is significantly important
LATEST PHONE
10%
54%Retail
WEB 25%
Mobile data 58%
Voice 22 min/day
SMS 7/day
BEHAVIOR
PSTN 68%
High involvement 18%
Province/city
47% 53%
18 % of the population
5
Strong match between Telenor´s profile and the Quality oriented top drivers of choice makes a solid base for attracting the segment
SOURCE: Telenor MAP
SMART STEER CO. MEETING || TELENOR; WHO TO SERVE
1SEGMENT
• Especially in service areas Telenor has a solid base to match the segments needs
Attribute importance (relative to market) is listed clockwise – starting at 12 0’clock
6
Although Telenor has a fair share of segment one, competitors profiles have even stronger fits on hygiene factors
SOURCE: Telenor MAP & Data from Pricing project, 2012
NOTE: * Measured in sim share
SMART STEER CO. MEETING || TELENOR; WHO TO SERVE
1SEGMENT
8%
28%
14%
30%
Quality oriented
21%
TDC
Telia
3
Other
Telenor
Segment one attribute score on hygiene factors (share of customers). Attribute absolute importance is listed clockwise – starting at 12 0’clock
According to complementary data from Pricing project Telia has build stronger NW perception. Supposable due to massive media spend and communication of 4G NW
7
The youngest segment, called Cost and image has a distinct profile in terms of price focus and online shopping behavior
SOURCE: Telenor MAP
SMART STEER CO. MEETING || CBB; WHO TO SERVE
6SEGMENT
Young family / single
29YEAR-OLD
DEMOGRAPHICS
Low income11 % of market
LATEST PHONE
3%
23%Retail
WEB 59%
Mobile data 48%
Voice 8 min/day
SMS 7/day
BEHAVIOR
PSTN 36%
High involvement 13%
City
49% 51%
19 % of the population
VALUES
• Social status is important to me and I like when others look up to me
• I'm first with the latest and I always know what is new and hip
• I will always go for the cheaper product cause price is most important
8
Price is the only significant telecom driver of choice; Due to strong attractive value profile and large share in customer base the segment will serve as the target segment
SOURCE: Telenor MAP
NOTE: * Measured in sim share
SMART STEER CO. MEETING || CBB; WHO TO SERVE
6SEGMENT
Cost & image
24%
36%
28%
3%10%
Other MVNO`s
Other MNO´s
Telmore
Onfone
CBB
Segment one attribute score on hygiene factors (share of customers). Attribute absolute importance is listed clockwise – starting at 12 0’clock
9
The Image & quality segment is immensely data and handset oriented
SOURCE: Telenor MAP
SMART STEER CO. MEETING || CBB; WHO TO SERVE
5SEGMENT
Before / young family
30YEAR-OLD
DEMOGRAPHICS
Low income30 % of market
LATEST PHONE
6%
39%Retail
WEB 44%
Mobile data 84%
Voice 20 min/day
SMS 10/day
BEHAVIOR
PSTN 32%
High involvement 37%
City
56% 44%
17 % of the population
VALUES
• Products with technical innovations are exciting and important to me
• I like when others look up to me and being the centre of attention
• Thrills give me the feeling of living more intensely
10
Gaps on important attributes initially addressed in the rebranding of Bibob. Attributes reflects former Bibob brand strategy before March 2012
SOURCE: Telenor MAP
SMART STEER CO. MEETING || BIBOB; WHO TO SERVE
5SEGMENT
• Implemented web shop in October 2012
• Introduced instalment plans in October
• Introduced content bundling in June
• Introduced CRM program in April
• Followed Oister on data price most of 2012
• Increased data speed to 32 Mbit/s
Attributes relative importance is listed clockwise – starting a 12 0’clock.
11
No single competitor owns the segment in terms of segment market partly due to the extreme switch probability (~37%)
SOURCE: Telenor MAP
NOTE: * Measured in sim share
SMART STEER CO. MEETING || BIBOB; WHO TO SERVE
5SEGMENT
16%
Image & quality
19%
14%
15%
2%
15%
17%
Telia
TDC
Telmore
3
BiBoB
Other MVNO´s
Telenor
Segment one attribute score on hygiene factors (share of customers). Attribute absolute importance is listed clockwise – starting at 12 0’clock
With recommended segment mix the Telenor brand portfolio targets ~80 % of revenue share; Covering a broad mix of consumer values
12
SMART STEER CO. MEETING || STRATEGIC RESOURCES & SUM UP
SOURCE: MAP, Telenor Group
Fair
Nature
Purism Tranquil
Prestige
Vitality
Classic
Thrill &Entertainment
Carefree
Clanning Cool&Trendy
ServiceInnovation/
Protech
Personalefficiency
Customized
Proven
QualitySmart
shopping
Total cost
E
C̶ +Security
R
6
1
5
SHARE OF REVENUE
STRONGEST COMPETITORS
38 %
30 %
11 %
TDC
SEVERAL
TELMORE