Webchutney Digital Mobile Handset Report 2010

Inside the Mind

of the‘Wired’

Mobile PhoneBuyer

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consumers online.

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ContentsContents

Note: The term ‘Intender’ denotes respondents who are online mobile phone owners and intend to purchase a mobile phone

Introduction ........................................................................................... 2

Executive Summary ................................................................................. 4

THE ‘CONNECTED’ INDIAN MOBILE PHONE USER .................................... 6

Substantial Mobile Phone Usage among Online Indians........................... 7

Internet is a Predominant Medium in Online Mobile Users’ Daily Lives ..... 10

PURCHASE INTENT AMONG ONLINE MOBILE OWNERS .......................... 13

Purchase Intent is Strong Despite High Level of Ownership ...................... 14

Replacement Demand Drives High Purchase Intent .................................. 15

DRIVING PURCHASE DECISIONS FROM THE LIVING ROOM ...................... 16

Internet is Most Reliable Medium to Research Information....................... 17

Perception of Internet among Online Mobile Intenders ............................ 19

Search Engines and Consumer Review Sites Enable In-Depth Research for Online Mobile Phone Intenders .......................................................... 20

Rationale for Preference of Online Channels for Mobile Related Research. 22

LEVERAGING ONLINE INFLUENCERS FOR GREATER BRAND VALUE ........... 23

Online Significant in Influencing BrandPreferences and Consideration...... 24

Consumer Review Sites are an Important Tool for Information Exchange.. 25

Potential to Create Positive Brand Impact through the Net is Immense ..... 26

IN CONCLUSION: SEIZING THE OPPORTUNITY ........................................ 28

Final Takeaways for Mobile Phone Marketers ........................................... 29

Methodology.......................................................................................... 32

About the Authors.................................................................................. 33

2

Introduction

The Indian telecom sector has reached a watershed moment with the world's second largest mobile network (over 635 million wireless subscribers) and telecom subscriber base (671 million connections, growing

1each month with 16 million subscribers) . Boasting of the lowest tariffs and cell phone rates in the world coupled with the recent launch of third generation mobile services (3G) across 9 Indian states, this sector plays a pivotal role in the world's fastest growing Information and Communications

2Technology (ICT) market. With its contribution of 1.5% to India's GDP and the massive interest evinced by international players in the Indian telecom market, the high growth trajectory of this sector is an important milestone in the socio-economic development of India.

From the time when India's first mobile phone was launched for Rs 40,000 approximately, and an outgoing call would cost a hefty Rs. 16-17 per minute, the rise and evolution of India’s telecom and mobile phone sector has been exponential. Privatization, technological innovations, rise in disposable incomes and pro-industry policies undertaken by the government have put the sector on the superhighway of growth. At the same time, cut throat competition amongst an increasing number of players has given birth to price wars resulting in aggressive slashing of call rates and advent of per second billing. In a fiercely cluttered and competitive market where the Indian consumer is spoilt for choice amongst mobile handsets and network service providers, generating visibility, catering to consumer preferences and creating top-of-mind recall have become formidable and eminent challenges for marketers.

In such a scenario, rather than counting on traditional, one-way mediums of communication to influence existing and prospective consumers, a different approach towards cutting through the clutter and leveraging influencers with breakthrough innovation summon immediate attention. Indian consumers curate information from multiple sources which is typically product-related research and the internet has emerged as a prominent resource. In an industry where technological innovation is rapid, the need to provide accurate and timely information about the latest

handset/plan becomes crucial for consumers to choose one brand over another. The internet, with its innate ability to provide access to a reservoir of information in various forms, is becoming the preferred choice for consumers using social platforms to compare, cull and voice their opinion to influence each other while sourcing relevant information.

Evidently, while some mobile and telecom players have started taking note of the untapped potential of the medium and are investing their marketing efforts online, the scale and depth of these measures remain limited to a great extent. Brands that haven't looked beyond traditional media are losing out on potential access to 50 million Indians online and the opportunity to expand existing/acquire new consumer base. The online consumer base in India is a discerning lot which has significant experience in usage of this medium. Their consumption of media and information is more active than passive and most of them already own a mobile phone and intend to purchase another one soon. Mobile and telecom marketers have the opportunity to harness the power of this group to convert them as self-serving evangelists through tactical and meaningful brand engagement.

Inside the Mind of the 'Wired' Mobile Phone Buyer takes a close look at the growing influence of Internet in driving purchase intention/decisions among online mobile users in India, while mapping their preference, attitude and usage of the medium. It equips mobile phone marketers with deep insights to existing and prospective consumers' online behaviour, which will guide and help them determine the way forward in adopting the digital medium at the core of their future branding/marketing efforts.

31 Department of Telecom (DoT)2 Minister of State (Communication & Information Technology), Shri Gurudas Kamat

Executive Summary

It remains a fact that mobile has emerged as an effective interactive avenue blurring socio-economic and geographical boundaries across the urban-rural chasm as more than 50% of India's population are mobile

3subscribers . While access to smart phones may not have taken the country by a storm, access to basic and upgraded models of handsets is a reality before us. Affordability of telecom products and services in India are reasons for their widespread prevalence and ownership amongst upper echelons of society as well as middle classes and now to a large extent amongst lower socio-economic classes too.

43IAMAI*Refer Methodology

5

Year On Year Increase in Wireless Subscriber Base (Urban & Rural) (in Millions)

Source: IAMAI *Figures do not include Rural Wireless Base

Online mobile users are young with maximum in the 19-35 years age group*, prosperous and possess disposable income as well as desire to purchase newer and more number of mobile handsets. In a market like mobile phones, where clutter exists in terms of competition as well as marketing strategies, new media emerges as a relatively clutter-free and engaging choice for the marketers to interact with customers and gather visibility.

Our report highlights the growing impact of the internet with a whopping 89% online mobile intenders relying on this medium as the primary source of information for mobile-related research. Brand/company websites, search engines and consumer review websites are popular avenues to conduct this research. 71% indicate they have shared mobile related experiences online and 63% admit to have been influenced by such online reviews, opinions and experiences.

Added to this, out of all online mobile owners, 80% intend to purchase another mobile phone. What does this mean for a mobile phone marketer looking to consolidate and expand its user base in a fiercely competitive and cluttered market? Based on survey results, it is abundantly clear that there exists a strong prospective customer base online which is opinionated, does not hesitate to share positive or negative experience among online peers freely and is an extremely critical resource for mobile phone marketers to help reach and influence target audiences effectively.

The onus of engaging this discerning customer base online lies with marketers who need to create immersive and customized experiences that are appealing and help promote positive buzz and brand image. Websites and display ads are just the first step in achieving this end, and it is time for marketers to expand the scope of their digital marketing strategies to grab attention and a larger market share.

Year Subscriber Base

Mar-07 165

Mar-08 261

Mar-09 392

Mar-10 584*

Apr-10 601*

The ‘Connected’ Indian MobilePhone User

Substantial Mobile Phone Usage among Online Indians

There are a whopping 47.5million online mobile phone owners in India today. While the overall national-level penetration of mobile phones in India is at 26.5%, the relative penetration of mobile phones amongst online Indians is at 95% indicating that this group is highly mobile phone savvy. Accessing internet through mobile phones is increasingly on the rise and a vast variety of online activities are being pursued through it.

7

81% online mobile users own a GSM phone and a whopping 98% use prepaid connection over a postpaid one. With Mobile Number Portability in the offing, the cost of switching from one telecom service provider to another would be completely eliminated allowing users to hop freely among competitors while retaining the same number. This will intensify the war among mobile and telecom service providers to retain their current consumer base apart from increasing it further, and the need to create stronger recall value, increase brand consideration and maintain differentiation could become a formidable challenge in this saturated category.

Penetration of mobilephones amongst online Indians

Penetration of mobile phonesamongst Indians 26%

95%

Source: Juxt Consult India Online Report 2010

8

Source: Juxt India Online & India Mobile 2010 Report

4Juxt Consult India Online and India Mobile Reports 2010

Entertainment in the form of social networking features as a significant activity pursued online through mobile phones. The launch of iPhone and a deluge of other technology intensive smart phones has given birth to a vast variety of applications that provide users' information and entertainment to keep them hooked and engaged. It is safe to say that online mobile users in India is a matured, discerning group which is exceptionally aware and conscious of trends in the mobile segment.

9

Most online Indians use their mobile phones as a 'communication' as well as an 'entertainment' device, and 1 in 4 online Indians access the internet

4through their mobile phone. 'WAP enabled' data services and 'GPRS activated' direct browsing are the most popular mode of mobile internet usage.

While 77% online mobile users access internet through their mobile phone for emailing, 60% use it for social networking and 54% for chatting. Increasing mobility of online Indians and enabling technologies such as smart phones with internet access helps them stay connected while on the move.

Type of Connectionused amongst

Online Mobile Users

Prepaid

Postpaid 2%

98%

CDMA

GSM

19%

81%98% Online Mobile Phone Users’ Frequency of

Pursuing Various Activities on their Phones

Daily 4-5 times/week 2-3 times/week Fortnightly/Monthly

Source: Webchutney Digital Mobile & Telecom Survey 2010

33% 23% 21% 23%

25% 23% 24% 29%

38% 21% 18% 23%

45% 23% 17% 15%

52% 19% 17% 11%

56% 17% 15% 11%

65% 13% 12% 10%

Watching videos

Downloading music

Chat

Email

Gaming

Search for information(products/services)

Social Networking

For mobile phone marketers, mere online presence cannot push sales or ensure an entry into consumers' consideration set, typically when both features and services are easily replicated by competing forces. A conscious and sustained effort to engage consumers using the interactive medium can go a long way in informing and influencing online audiences about the presence, service offerings and efficacy of a brand.

Type of Mobile Phoneused amongst

Online Mobile Users


Activities Pursued through Mobile Internet among Online Mobile Users

Em

ail

Soci

alN

etw

ork

ing

Sear

ch f

or

Info

rmat

ion

60%77%

Wat

chin

gV

ideo

s

53%48%53%

Gam

ing

Oth

ers

4%

Dow

nlo

adin

gM

usi

c

48%

Chat

54%

11

72% online mobile users have been using the internet for more than 2 years. This indicates maturity and valuable experience in the use of the medium specifically with respect to ease in searching/looking for information online conveniently.

Experience in Internet Usage of Online Mobile Users

10

Internet is a Predominant Medium in Online Mobile Users' Daily Lives

The number of online mobile users spending 2 hours or more on the net on a weekday is almost double the number of those watching television for a similar duration. Maximum online mobile users spend time on the net in comparison to other traditional media forms like radio, magazines and newspapers which trail far behind. Heavy internet usage can be attributed to the possibility of engaging in a vast variety of activities and unlimited interaction across demographies that can be pursued online.


87% online mobile users access the internet at least once daily while immersing themselves in a variety of online activities. This frequency is indicative of how internet forms an integral part of this group’s lives and explains their consequent reliance on it.


Frequency of Internet Access amongst Online Mobile Users

Once in more than a month

1-3 times a month

Once a week

Once in 2-3 days

Once daily

2-5 times a day

Over 5 times a day

1%

3%

1%

7%

30%

31%

26%

Comparative Usage of Traditional Media Vs Internet* (Weekdays)

Internet TV Magazine

26%

51%

Newspaper

15%4%7%

Radio

*Data indicates media usage of 2 hours of more

More than5 years

Up to 2 years

2-5 years

47%

28%

25%


PURCHASEINTENT AMONGONLINE MOBILE

OWNERS & INTENDERS

13

Search

Purchase Intent among

Online Mobile Owners

With a large number of online mobile intenders logging onto search engines and social networking websites for more than an hour daily, it is a clear reflection of their online habits, behaviour and preferences. Online mobile intenders are on a constant lookout for information and with rapid launch of newer models of mobile phones, the search for information, particularly comparison of desired features and models becomes important.


Usage of Online Channels among Online Mobile Intenders

In a cluttered market like telecom, new media such as the internet emerges as a relatively clutter-free choice for the marketers to interact with customers and gain enhanced visibility. The medium offers inimitable avenues for interactive, personal and measurable engagement with relevant audiences, unlike any other media.

Upto 1 hour daily More than 1 hour daily

Around 2-3 times a week Once a week

Once a month or as and when required

SocialNetworking

Sites

ConsumerReview

Websites

Company/Brand

Websites

OnlineCommunities/

Blogs

SearchEngines

34%

20%

6%7%

32% 8%

19%

41%

13%

19%

20%

39%

21%

19%

36%

2%

45%

37%

6%

11%

14%

18%

9% 12%

12%

12

14

Replacement Demand Drives High Purchase IntentAmong online mobile phone owners, a vast majority have owned their device for a year or more. We also observe 77% online mobile intenders expressing desire to purchase a new phone within a short span of just 6 months.

One of the major reasons for high repeat/replacement demand could be attributed to the

entry and appeal of smartphones and transition from traditional handsets to new-age devices like PDAs, touchscreen and QWERTY mobiles. These have become major factors in influencing a discerning online mobile phone user to trade-up their old handsets for new ones.

An attractive opportunity exists for mobile phone marketers to tap this segment online through unique engagement while adding brand value and increasing brand consideration.

growing tide of low-cost mobile phones, enhanced product categories,

Purchase Intent is Strong Despite High Level of Ownership According to Gartner, an estimated 117 million mobile phones were sold in 2009-10 in India while the expected figure for 2010-11 is 138.6 million. With low cost mobile brands competing with market leaders by providing perceived high-end features for less, the demand for mobile phones has increased exponentially across rural and urban India.

At the same time, the trend of owning multiple mobile phones is catching up fast in India which could be linked with the growing desire to keep official and personal communication separate. Our survey indicates 80% of online mobile phone owners intend to purchase a cell phone. Rise in disposable income as well as monthly household incomes, along with the influx of devices to suit every pocket in the 15 years of existence of this market could be a reason for such high repeat/re-purchase demand. For many Indians, mobile is the 'first screen' they are exposed to, even before television or internet.

Purchase Intentionof Online Mobile Users

Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 2028)

Owner Non-Intender

Current Owner plus Intender

80%

20%

34%

25%22%

11%

Less

than

Rs

62

50

Rs.

62

50

- R

s 1

25

00

Rs

25

00

0 -

Rs

40

00

0

Rs

40

00

0 -

Rs

80

00

0

5%

Rs

12

50

0 -

Rs

25

00

0

2% 2%

Rs

80

00

0 -

Rs

10

0,0

00

More

than

10

0,0

00

Monthly Household Income ofOnline Mobile Users

15Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626)

Time period within which MobilePhone Purchase is Intended

Within 3months

3-6months

9-12months

7%

6-9months

46%

31%

10%

After 1year

6%

Less than3 months back

6 monthsback

1 yearback

6-12 monthsback

More than1 year back

14%23% 20%

14%

30%

Duration of Mobile Phone Ownership

Driving Purchase Decisions From

The Living Room

Survey results indicate a whopping 89% mobile intenders online vouch for internet as the most reliable medium to look for information on mobile phones. The shift from dealers and mobile phone showrooms as the conventionally trusted source of information is evident with only 53% indicating preference for information through this source.

Owing to the vast variety in mobile phone models and features, coupled with rapid technological upgradations, mobile phones fall high in the involvement product category, necessitating considerable time and energy spent in researching about them to make a final decision.

Another aspect for consideration is the fact that today discussions and conversations that used to take place offline have started taking place over the net, typically with the rise of social networking sites and other platforms enabling exchange of news, views and reviews, including those on mobile phones.

Internet is Most Reliable Medium to Research Information

17

Driving Purchase Decisions From

The Living Room


Internet Friends& Family

Dealer/MobilePhone

showroom

Newspaper/Magazine

Ad hoardingson roadsides/bus

stop

53%

89%

62%55%

38%

Preferred Source of Information for Mobile PhoneRelated Research among Online Intenders

Radio Other

20%13%

2%

TV

18

With 53% preference, clearly the role of mobile phone dealers in influencing consumers' purchase decisions has diminished, more so as the zeroing in on the mobile handset brand and model today takes place much before a consumer enters the dealer's place. Rise in preference towards internet as a mode of research indicates evolution of empowered consumers, who are more in control of pre-purchase research, thereby making informed purchase decisions for themselves.

Online mobile users’ preference towards internet over traditional media could be attributed to the vast engagement opportunities provided by the medium. Also, internet scores over other media in terms of variety of forms and topics on which information can be sourced, accessed and hunted from the comfort of one's home. Its interactive nature helps draw responses from people, making them an integral part of brand's communication and campaign.

There is a strong link between online mobile intenders' preference for internet as an information source and inherent characteristics of the medium making it popular. 82% mobile intenders believe internet helps them get a better idea about all the mobile handsets/service providers in the market, while 71% are of the opinion that it entails access to updated information, which is critical for this category.

Scope for in-depth research (50%), third party view (47%) and easy and convenient access to information are other reasons in favor of this medium.

(46%)

19

Perception of Internet amongOnline Mobile Intenders


Owner Intenders' Reasons forPreference Towards the Internet

Helps give an idea about the cell phonemodels/service providers in the market 82%

71%

50%

47%

46%

Access to updated information on new technology/features/services for mobile handset/service plan

Provides scope for in-depth research

Offers a third party view as well

It is easy to access and convenient to use

16% 18% 8%26% 33%Internet Access

Price

Brand Name

Design/Looks

Features

8% 27% 9%30% 26%

11% 20% 6%40% 23%

10% 18% 5%49% 18%

15% 23% 8%33% 22%

2120

A substantial number of online mobile phone intenders look for mobile-phone related information on brand/company websites. Information on price, credibility of the brand, design or visual appeal of the device preferred/intended for purchase, along with a careful scrutiny of various features packed in the device, are often searched for on mobile brand/company websites.

Consumer review websites follow as the next most preferred source of information online. These offer independent, third party views, opinions, experiences shared by existing/prospective mobile users and include facility to compare various aspects of mobile phones.

At the same time, search engines emerge as online mobile intenders' easiest tool to access to information and compare various brands, features, price and other factors critical for evaluating consideration for a particular brand.

For mobile phone marketers, this becomes a unique opportunity to increase visibility through search engine optimization/marketing tactics and make their presence felt among prospective consumers where they most flock to in search of relevant information to determine their choice of brand.

Search Engines and ConsumerReview Sites Enable In-Depth Research for Online Mobile Phone Intenders

Similar preference for various online channels is observed among online mobile intenders searching for network service provider related information. While most prefer to search company websites to determine the best telecom operator suitable to their needs, they actively look for information related to call rates/tariffs, discounts/schemes, value added services and overall opinion and experiences about network connectivity on review websites too.

Being the first and most easily accessible information source before consumers, it is imperative for mobile brands to register a noteworthy presence online and create engaging experiences for consumers looking for mobile phone related information.


Attribute wise Preference for Online Channelsto Conduct Research for Network Service Providers

Attribute wise Preference for Online Channels to Conduct Research for Mobile Phones

Consumer Review Websites Company Websites

Search EngineOnline Communities/Blogs

Social Networking Sites

12% 27% 7%43% 22%Services provided online

by network service provider

Network connectivity

VAS

Cost/quality of internet access

Call rates/discount offers/schemes

13% 23% 11%34% 19%

10% 14% 6%53% 18%

12% 30% 8%31% 19%

14% 19% 5%47% 16%

Search EngineOnline Communities/Blogs

Consumer Review Website Company WebsitesSocial Networking Website


22

A majority of online mobile users employ the medium to cater to their information needs. The online domain is teeming with information from various kinds of sources with users actively contributing to and sharing mobile related content and experiences in usage.

With a majority of online mobile users/intenders trusting social networking websites for gathering views and feedback from their peers and social circle for mobile phones, these emerge as viable substitute to the traditionally popular word of mouth publicity. Consumer review websites emerge as a one-stop-shop for information on mobile phones; including experts' comments and platform for feedback.

Our survey indicates various reasons for preference for one online channel over another as a valuable source of information, among which the ability to conduct cross-product comparisons, opportunity to share feedback and provision of genuine/authentic information are predominant.

Rationale for Preference of Online Channels for Mobile Related Research

Preference for Characteristics of Online Platforms

Online Communities/BlogsConsumer Review Website

Company WebsitesSocial Networking Website

39% 17% 19%26%Helps gather views/opinions/

feedback from friends & relatives

Offers scope to compare prices/features/utility

Provides space for experts’/users’ comments

Serves as a platform to give feedback

Helps gather relevant and genuine information

15% 31% 18%36%

19% 24% 22%36%

19% 25% 15%41%

24% 31% 13%32%

Leveraging Online Influencers For Greater Brand Value


25

Consumer Review Sites are an Important Tool for Information Exchange

With mobile related conversations gaining momentum online, the need for mobile phone brands to monitor these conversations, map the source of their origin and place of sharing, and make themselves strategically visible in these domains is more than ever.

Survey results indicate 50% preference for consumer review websites and 47% preference for social platforms for sharing mobile related experiences.

Online Significant in Influencing Brand Preferences and Consideration

Survey results highlight 63% mobile phone intenders admit to being influenced by mobile related information accessed online in the form of reviews, posts, recommendations, videos, audios etc. At the same time, 71% mobile owners online indicated that they share experiences about mobile phones and service providers on the net. This suggests that online channels are not just a source for 'curating' relevant mobile related information, but also help 'influence' mobile users' attitude and preferences for various products, and brands. Considering mobile phones are high involvement products, this is not too surprising as every single opinion shared leads to a deluge of useful insights and experiences posted by many others.

Online Mobile Intenders Influenced by Mobile Phone Related Views Online

37% 63%Yes

No

Online Mobile Intenders sharing Mobile/Telecom Related Experiences Online

29%

71%

Yes

No


Online Mobile Intenders' Preferred Medium to Share Information on the Internet


ConsumerReviewWebsite

SocialNetworks/Platforms

CompanyWebsite

34%

OnlineCommunities/

Blogs

50% 47%39%

Other

1%

24

27

Potential to Create Positive Brand Impact through the Net is Immense

81% online mobile intenders admitted to discussing the price of mobile handset, while 67% exchanged information on features of various mobile phones online.

Online platforms and forums facilitate a ripple effect around conversations, inviting more opinions, thoughts and insights on them. Largely, experiences shared online about mobile phones are positive (62%), showing vast possibilities for marketers to become more active online and get consumer-generated publicity for themselves, thus influencing and building a positive brand image.


Experiences Shared on the Net by Online Mobile Intenders about Mobile Attributes

26

Type of Experience Shared by Online Mobile Intenders

34% 62%Positive

Negative

Neutral

5%

Sharing positive experiences could in some ways be attributed to the 'pride of ownership' of a certain mobile phone brand and model. Considering mobile phones are associated with 'status symbol' for many, it is time for marketers to revise their traditional approach and formulae towards brand-building and embrace the online medium whole-heartedly in creating compelling hooks for existing/prospective consumers.

Price of handset

67%

57%

81%

53%

52%

49%

38%

33%

27%

Mobile phone accessories

Call rates/discount offers/SMS plans

Brand Name

Network connectivity

Value Added Services (VAS)

Design/looks of phone

Access to internet

Features


29

With success stories and positive predictions for India's mobile phone sector afloat, it is substantially clear that the future of the category will no longer be in providing mere communication through the device alone, but would become a part of the overall bouquet of services that will be offered, particularly with the launch of 3G services in India.

Mobile handset players need to pay immediate attention to the mobile user online today, who is more aware, conscious and thoughtful about making a handset purchase. QWERTY keyboards, voice recognition tools, highest megapixel cameras fitted in Android/Symbian enabled systems- are all becoming least common denominators provided by all handset makers. Consequently, the battle to differentiate between handset brands would no longer be fought on grounds of feature differentiation, but on basis of media used to strike a chord with consumers looking forward to mobile purchase.

While next-generation-ready mobile phones armed with latest features and specifications are becoming a part of the product offering of all manufacturers, like telecom service providers, handset manufacturers must also realize that embracing the internet and creatively using the interactive medium to fortify meaningful relationships with consumers online is the way forward. In conclusion, we highlight the following observations to help marketers gear up to this challenge:

With an addition of 16 million mobile subscribers monthly, the phenomenal growth rate of Indian telecom sector including mobile phones is unknown to none. Mobile penetration is 26% in a billion strong population and a breakthrough 95% amongst online Indians. 50% of India’s population is below 30 years of age and raring to go, with rocketing multi tasking abilities and a constant need and desire to stay connected with their friends, family and peers. Mobile phones are ‘enablers’ that help this group achieve their goals, thanks to their ability to let them stay ‘mobile’.

High Penetration of Mobile Phones amongst Online Indians and Increasing

Final Takeaways for Mobile Phone Marketers

In Conclusion:Seizing

The Opportunity

31

Internet has become the Primary Resource for Research on Mobile Phones

High Replacement Demand for Mobile Phones among Online Indians

Harnessing the Power of Social Media to Increase Brand Value and Consideration is Important

On one hand India has a 50 million strong online population actively looking, securing, browsing and hunting for information over the medium. On the other, it has more wireless devices than all televisions and computers put together, of which mobile phones form a major chunk. Both segments are growing at a phenomenal pace, which must now be channelized in the right direction through collaboration. Handset marketers must realize that unlike TV and other traditional media, the internet enables contextual targeting and provides access to third party views and opinions, clearly supplementing any marketing strategy. With 89% mobile phone intenders referring to internet as their preferred source for researching about mobile phones, it is evident that the stronghold of friends and family, mobile phone dealers and newspapers/magazines is gradually diminishing over the more demanding and more exacting, ‘connected’ Indian mobile phone intender.

The demand for mobile phones amongst current online mobile owners remains robust with an astonishing 8 out of 10 current owners expressing desire to purchase another mobile phone and 77% wishing to purchase it within next 6 months. These numbers bear testimony to the opportunity before handset marketers, to evangelize the medium and tap potential audiences. The time is ripe to attract, invite and engage audiences online by providing them compelling experiences.

63% mobile phone intenders online admit being influenced by mobile phone related reviews posted online and 71% share mobile phone related experiences on the net. 30-second spots with a tagline do not entice online consumers as much as immersive experiences customized to suit their interests. Consumers have become active contributors to media online, and share information around price, features, accessories, brand names of 30

mobile phones across a vast spectrum of platforms including consumer review websites, social networking websites, blogs and company websites.

Marketers must match pace with their fast-moving ‘elusive’ online audiences who are hunting and contributing to gadget/mobile phone reviews across various online destinations before they completely disengage themselves from mobile brands.

The future of the device is headed in a direction that calls for a change in the way it has been marketed so far. The choice is clearly between banking on harnessing traditional methods to reach target audiences, or scale for promotion and contextually use the interactive medium to target audiences who are willing, capable of making informed decisions and more significantly harbor strong intent to purchase. It is now simply do-or-die for mobile phone marketers to embrace digital at the core of their marketing strategies.

32

The primary purpose of this study was to understand and analyze the current usage patterns and attitude of an average customer towards the online medium, and its impact on mobile phone marketers' perception and usage of the medium to influence purchase decisions.

To this effect, a sample of 2028 respondents was taken from a panel of consumers belonging to different demographics- age groups, socio- economic classes, locations etc. Primary data was collected by means of a questionnaire. The consumer panel was further classified into current and prospective consumer mobile phone owners and intenders and their attitude towards the use of internet was mapped. The period of the study was August to October 2010.

Furthermore, credible secondary data sources were used to compile all facts and figures used in the study.

Gender-wise Break up ofTelecom Users Online

Female

25%

75%

Male

7%3%

26%

37%

26%

Age Distribution ofTelecom Users Online

33

Methodology About the Authors

Sidharth Rao is the Chief Executive Officer and

Co-Founder of Webchutney, India’s leading and

most awarded web services company.

With over 12 years of industry experience,

Sidharth has made a significant contribution in

shaping the interactive marketing industry in

India. Sidharth leads the 150 people strong

organization assisted by an excellent management team across New

Delhi, Mumbai and Bangalore.

He can be reached at [email protected]

Sidharth Rao

Shweta Bhandari leads the research team at Webchutney, which publishes thought provoking reports on the state of online in India.

She carries a diverse business profile including blue-chip companies like American Express and GE. At Webchutney, she has contributed in writing several research publications such as The Digital Vote Bank, Viral Marketing and more recently the Digital Media Outlook 2009. Her passion for discovery and thirst to engage in new challenges lend immense scope and dimension to this field.

She can be reached at [email protected]

Shweta Bhandari

17%

19-24 Yrs

25-35 Yrs

36-45 Yrs

Above 45 Yrs

13-18 Yrs

46-55 Yrs

Base: 2028Base: 2028

34

Ankita Kapoor is a Research Analyst at Webchutney.

She has completed her MBA in Marketing from ICFAI Business School, Hyderabad. Prior to this, she graduated in Journalism from Lady Shri Ram College, Delhi University. She has interned with 'HPCL-Mittal Energy' (HMEL) and 'Business Standard' during her post graduation and graduation respectively. Her strong analytical and communication skills and deep interest in the field have lent new perspectives to the report.

She can be reached at [email protected]

Ankita Kapoor

A special thanks to for conceptualisingand executing the report design.

Sushil Kumar

Webchutney Digital Mobile Handset Report 2010

Documents

Transcript of Webchutney Digital Mobile Handset Report 2010