Proposal for BU1 Part

Contents
Back to glory history Where is our target market

Who are our customers

Next product line direction

Target to top 3
Worldwide mobile phone market share
(Unit:%)
40.0%

Nokia

Motorola

Samsung 34.7%

SEMC 36.2%

LG 37.1%

1
36.50%

33.1%
35.0%

33.0%

32.1%
30.0%

25.0%

21.8%
20.0%

2
21.1% 21.5% 18.5% 14.40%

20.3% 17.7%

15.0%

12.5%
10.0%

12.8% 11.1%

12.0% 7.8% 6.5%

11.3% 9.0%

14.2% 8.9%

13.80% 9.60% 7.30%

6.7%
5.0%

6.9% 5.8%

6.6% 6.4%

6.2%
0.0%

6.3%

6.4%

2005

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07
Source : company data 3

More choices than Walkman and Cyber-shot

Music

imaging

Entry

Design
4

Market Profile
New buyers may be an opportunity in future emerging market

WW mobile phone market: new &replacement ratio(%)

Source: MIC June 2007

ULC phone grow in emerging market

Emerging Market Handsets Plan (EMH plan

Major Mobile phone manufacturer attempt to replace basic phone with middle and low-end feature Phone.

1100 series
1100 1600

W series
W220 W375

C series
C140 C188

J /K series

EMEA market

Chindia market

Consumers Profile
Target Group Benefits (Why)? Selling & Value Proposition (What)?
Volume driver to secure market Strategy & share in entry level market for ULC market History Prepaid segment: entry level

Best ergonomics design and ease to use UI & software features Long battery life & dust resistant Localized content or application
I can keep in touch with my family & friends or outside world It is easy to use and manage my daily life convenient I can save my time & money

Target Group (Who)?

Price conscious, entry level users of the market. Conservative values and mainstream lifestyle. Low willingness to take risks, rational consumers

Functional Emotional Lifesyle Demographics

Selling prop.

a durable color phone to guarantee your connection to family or friends and more opportunity with long battery life and ergonomic design, making your lives easier and more convenient.

Mainly Emerging market Age from 18+, focus on 26 to 55 years old Mainly low education, low family income

Vivid color display help you fly into colorful outside world Best ergonomics design and ease to use UI & features provide great comfort and convenience Dust resistance provide best durability and low cost of ownership Consumer Big capacity battery keep you stay connected Value prop. Localized content or application gets your life easily organized Voice airtime alert helps you manage your Communication economically

Consumer Positioning

Trend: Low Cost Ownership Category: Affordable Qty Quality Life

Frame of reference

37

10

70

(WSJ) Flint2007 FM6 Flint

SEMC-20074W200i Hrithik RoshanW200i

Indian lifestyle

Indian operator mobile service reference

10

Fact the challenge

SEMC Fact Nokia

SEMC Think

Action

Arimacomm

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SEMC 2007Q2 HOT sale models for emerging market

It is not about features!

W200 Data Size GPRS 101x44x18mm / 85 grams UBC,65K colors 128x160 pixels 1.8 inches VGA, 640x480 pixels, video No M2/27 MB Stand-by :Up to 300h Talk time :Up to 7h FM radio with RDS USD$118 W300 GPRS /EDGE 90 x 47 x 24 mm /94 g TFT, 256K 128 x 160 pixels VGA, 640x480 pixels (interpolated to 1.3 MP) YES M2/20 MB Stand-by :Up to 400 h Talk time :Up to 9 h FM radio with RDS USD$224 Z310 GPRS /EDGE 87 x 46 x 24.5 mm /90 g STN, 65K colors 128 x 160 pixels VGA, 640x480 pixels YES 14 MB internal memory Stand-by :Up to 300h Talk time :Up to 7h NO USD$120 K310 GPRS 101 x 44 x 17 mm /82g UBC,65K colors 128x160 pixels VGA, 640x480 pixels, video No 15 MB memory Stand-by :Up to 360 h Talk time :Up to 6 h NO USD$134 12

Screen

Camera: Bluetooth Memory card Battery FM Street Price

UBC (Ultra Bright Color)


2007 5.9%20096.4% 200747.2%

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Product extension study for current models

Model A B C D E Type Bar Bar Bar Platform TI Calypso TI Locosto TI Locosto Memory Size 128M/32M 256M/128M 256M/64M Camera VGA 1.3M VGA Radio No FM AM/FM Bluetooth IrDA No Yes Yes Yes No No RTL wk738 wk810 wk818

Bar
Slider

TI Locosto
TI Locosto

256/128M
256/128M

1.3M
1.3M

FM
FM

Yes
Yes

No
No

2008 Q3 wk825

Elegant design & localization UI/SW

2005 2006 2007

2008

J200 J210

J220

Z300

J230

K300

K200

K220 T250 14

Low cost W200 key features list

W200 compact version Entry walkman phone

Street price Size

USD$118 101x44x18mm UBC,65K colors 128x160 pixels 1.8 inches VGA No M2 / 27 MB Stand-by :Up to 300h Talk time :Up to 7h FM radio with RDS

Street price

below USD$80

Size

101x44x13mm TFT,65K colors 176x224pixels 2.0inches 1.3 MP YES

Screen

Screen

Camera: Bluetooth Memory card Battery FM

Camera: Bluetooth

Memory card M2/27 MB Battery FM Longer than left FM radio with RDS
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Classic walkman series style

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18

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Mobile a lifestyle product for Indians

Ignacio Germade, director design, Motorola talks about tastes of Indian consumers on designs (Wednesday, August 29, 2007) Just cite some dialogue as follows:

CMN: You have a design team at Bangalore, which develops products for the India market. Does the design studio carry out studies on user experience and the taste of Indian consumers? IG: Our design team has been working hard to meet the demand of the Indian market with innovative products. Unlike other markets the Indian consumer seek for more features on their mobile phones rather than just a voice centric device. They demand for better design and features on the phone. Yes, our design team is closely eyeing the consumer market in India on the user tastes. It has been noticed that the Indian consumers are somewhat conservative, as they do not accept anything radical.
source: http://www.ciol.com/content/2980799431.aspx
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Market news
Mobile companies tune in to beat iPhone's India entry
17 Jul, 2007, 0222 hrs IST,Writankar Mukherjee & Sreeradha D Basu, TNN

The vendors expect to consolidate their market share in India with next-generation music-enabled handsets and innovative marketing activities. These include launching music editions for popular handsets, pre-loaded exclusive songs, music-oriented features and setting up music kiosks. Latest research data, provided by Sony Ericsson, suggests over 76% of mobile users prefer listening to music on their cellphones, making it the most popular choice. Last fiscal, about 10 million music phones were sold in India and the numbers are expected to reach 24 million by 2007. This segment accounts for about 20% of the total handset sales in India. Cellular Operators Association of India has projected the size of the mobile music industry will rise to $250 million by year-end from the present $170 million.
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What magic product we can create ?

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