how to reach new segments segmentation

1 © 2007 Nokia Corporation

Developing markets for smartphones and how to reach new consumer segments

Mauri MetsärantaMobile Software Sales and Marketing

Nokia


• 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


Where are the largest growth markets?

Brazil

Egypt

China

India

Russia

Indonesia

Mexico

ChileSouth Africa

Thailand


Who are they?


Broadly Speaking, Consumers Fall Within 4 Quadrants

Rational Aspirational

High Involvement

Low Involvement

Mobile Communication

as empowerment

tool


trend leaders

Mobile Communication trend followers


only when necessary

Source: Nokia consumer research 2006-2007


Young Explorers

Technology Stylists

Style Leaders

Style FollowersFamily Providers

Life Jugglers

Pragmatic Leaders

Life Builders

Image Seekers

HIGHERINVOLVEMENT

Simplicity Seekers

Mature Acceptors

Technology Leaders

LOWERINVOLVEMENT

RATIONAL ASPIRATIONAL

Focus into “high involvement“ segments



Young Explorers

Very social people and living life to the full

What do they look for in mobile communications?• Immediate connectivity to friends for organizing

social lives • All-in-one handset with computer functionality

• Music

• Advanced communications functionality

• Mid-high to high handset and services value

Life Builders

Aiming to make something of themselves

What do they look for in mobile communications?• Convergence is a key purchase criteria

• Data services for personal productivity

• Digital content such as gaming, watching, music

• All-in-one handset with computer functions, large number of features

• High-quality camera



Other31 %

Multimedia/ Infotainment

13 %

Messaging33 %

PIM11 %

Voice calls12 %

Smartphone usage minutes increased 60% in Europe in a year! Voice minutes have not increased, but other functions have acquired much more time (multimedia, navigation, browsing, email, MMS, SMS)…

Other20 %


11 %

Messaging31 %

PIM14 %

Voice calls24 %

Europeans spent 48 minutes a day using their smartphone

EUROPE 2006

EUROPE 2007

Source: Nokia Smartphone 360 studies 2006-2007


Chinese spent 82 minutes a day using their smartphone!

512

46

11

132

12

35

0

10

20

30

40

Browsin

g

Config

Games

Info

tain

men

t

Messa

ging

Multim

edia

PIM

Product

ivity

Other

/Unkn

own

Utility

Voice

Min

ute

s / D

ay

ContactsLogCalendar…

GalleryCameraQQPlayer…

S60 MessagingQQPicaXRose…

S60 BrowserFile ManagerDictionary Other

15 %


10 %

Messaging38 %

PIM15 %

Voice calls22 %

CHINA 2006 Number of minutes spent per application category

* Source: Nokia, 360 Smartphone study/China 2006


Internet services drive data service usage

• 40% from connected add-on applications

• Multimedia data nearly all from internet services

• Nearly half of the messaging data from add on IM applications

* Source: Nokia, 360 Smartphone study/China 2006

Source of data traffic in China*

Friends List QQ Groups QQ Show Information Contacts

Browser62 %

Other0,3%

Multimedia / infotainment

19 %

Messaging19 %


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


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


Examples

China

India


Nokia E50 re-fresh campaign in India


Nokia N72 travel campaign in India


Nokia 6120c launch with applications in China


Stock application campaign with S60 device portfolio in China


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


Thank You!Please visit

www.s60.com or www.s60.com/cnwww.blogs.s60.com

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