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Value &

Pricing Solutions
for Mobile

Web 2.0
Paradigm

14 Mobile Megatrends
1. From mega-portals to me-portals.
2. Content is aging; Content communication is king.
3. The internet is reaching into the phone.
4. The war of the application environments.
5. Value in mobile software is bubbling up.
6. OEMs go for services and vertical propositions.
7. Brand as the new form of equity in handsets.
8. Network operator strategies are shifting.
9. Browsing is out; engaging experiences are in.
10. Browser proxies bring the internet to the masses.
11. Open source is disrupting the status quo.
12. Nokia is now a tier-0 OEM.
13. Mobile is transforming to a FMCG business.
14. Channel ARPU: a new source of revenue.

Source: Andreas Constantinou, Ph.D. Research Director, VisionMobile

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07 1 + 17% 516 698 1.289 3.629 o t he r n o n m u sic p e rs o na liz a t io n ga m e s o t he r in fo rm a t io n & e n t e rt a in m e n t + 38% 2.197 409 + 24% 2006 2 0 11 source : Jupiter Research (11/2006) . 86 8 C AGR v id e o / TV / in t e ra c t ion m u s ic .054 + 1% 1.054 677 + 21% 415 1.w estern european* mobile content sales (in M€) Western European mobile content sale (in M€) 7. rin g t o n e s & rin g ba c k t o n e s 2.

So What ? •New Customers •New Business Models •…. .

0? The whole world in my hands = My Device is Me .Mobile 3.

Networked Customers .

2 Way Value / Pricing Model Service Providers Brokers / Intermediaries Telco Broking services Retailers VAB2B Services VAS Millions of Channel Partners Government Customers $ Telco $ Platform Advertisers Thousands of Distribution Distribution Segments Content Owners Telco Retail .

New Business Models emerging Ad subsidized Free Mobile Voice Service Telephony Wi-fi Community Ad subsidized with Innovative Internet Revenue Model Access .

So What ? •New Customers •New Business Models •…. •New activities •New challenges •… .

Location based services .

number. Calendar. Videos. porting. profile & settings QR codes read MY IDENTIFIERS MY STUFF MY CONTEXT Digital Lifestyle Identity and persona creation for user Aggregators & PIM User real-time activity Pictures. Number. school. USIM. Customer centric MY PERSONAL DATA Contextual MY RELATIONSHIPS Core customer data Knowledge of Name. personal and Gender. address or ID provisioning. avatars and environment History. National ID. Address. business interactions Profile & Preferences My bank. To Do. Roaming. In-call . Location. Bookmarks. On/Off. Notes Temperature.mobi domains. SoftSIM. web SIM. Files . Address Book. Motion. serial browsing history. friends MY DEVICES MY INTERACTIONS User ID linked to Naming and tracking physical device or non-human resources token. configuration . workplace.

•New activities •New challenges •… •A new Vision •… .So What ? •New Customers •New Business Models •….

high-capacity. personal Personal Broadband broadband communications platform . ever-present. far-reaching.The Vision A seamless.

•New activities •New challenges •… •A new Vision •… …. .So What ? •New Customers •New Business Models •…. But….

we have a problem •ARPU is stagnant •Data represents less than 15% of revenues •Threats on Voice traffic •New Competitors flocking in •Consumers perceive Telco offers as undifferentiated .Houston.

To Whom ? ….What are you selling ? …. .

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Value Proposition What are your product ratings vs competition? Product Quality Service / Convenience / Experience Availability Perceived Value Brand/Image What drives Consumers’ Value Perception? .

User Content Experience Handsets Network / Coverage Price/ Promotion .

Little Analysis 2006 .Buying criteria for mobile customers in % (Germany) 25% customer customer customer 24% customer customer 20% 19% 17% 15% 13% 10% 10% 10% 9% 5% 5% 0% Qos/Coverage Pricing Handsets Community First tier MNOs Second tier MNOs Source: Arthur D.

Feel you’re not getting enough return on your marketing investment?… .

Value & Raising price …increases by 1%… profit 12% Pricing are the largest 101 9 8 Profit levers… Operating 26 profit 100 • COGS 66 Sales Fixed costs .

Visibility Experience Quality Brand Value / Price Pricing Solutions can help you Find the right Balance .

Value & Pricing strategy Research Actions Results Attitudes / Value Drivers Pricing & Value levers  Sales growth  Segment share Convenience Experience Quality Brand  Value Proposition Consumption funnel  Marketing Spend  Profitability / ROI  Price %  Product quality % % % repeat  Promotion trial use awareness .

How do you Stand out ? .

Pricing Solutions can help you •Understanding Customers’ Value Drivers •segment & fence Market •Develop Targeted Value Propositions •Define Effective Business Models •Select the right Price level •Evaluate Potential & Target price for new products •Optimize Clients’ Lifetime Value .

Experience / Brand Advocacy .

that difference 9.30 translated into a trebling of new client acquisitions & over €300Mio in extra profit 20 000 60 000 . Bottom Line Impact CompX acquired an average of 20 000 new clients per month Pricing research showed that a different client focus and lower 9.95 upfront fees should greatly enhance new client acquisitions Indeed.

Implementation Thought leader + state of the art tools Contact: llecorre@pricingsolutions.com clients include . Pricing & Value Consultancy Created in 1993 Present in 10 countries Research. Strategy.

• Development / Reinforcement of Pricing Capabilities Process • Redéployment of Pricing Processes • Management & optimization of ‘client conditions ’ • Multi-Channel Pricing / Pricing Corridors • Change Management • Value Propositions / Design to Price • Pricing Software implementation • …. Advisory • Value Based Pricing • Pricing Strategies & Tactics • Competitive Pricing / Price Wars Solutions • Implementing Price Increases Pricing • Channel Pricing • New Product Launch • …... . • Sales Force Training / Motivation • Support/ Training of Pricing / Marketing teams Support • Decision Suppoirt Systems • Deplyment & management of ‘Test Platforms’ Management • Product/Service Full Cost Analysis • Pricing Process deployment • Pricing & Competitive Intelligence & Pricing Benchmarking • ….Pricing Solutions – Range of services • Client/Consumer Value Drivers research Research • Price change impact research • Transactional analysis/ Modélling • Client Value & Satisfaction studies • Product potential & ‘Willingness to pay’ Strategy • Client/Consumer segmentations Pricing • …..