Consumer Segment Analysis of Mobile Phone Market

Consumer Segment Analysis of runny Phone groceryAnthony NolanSize of current groceryAccording to the Commission for Communications regularization (COMREG) (Q4, 2015), ho practice sessionhold broadband penetration rate for twain fixed and restless(prenominal)(prenominal) overhauls was at 83% which is high than the EU average by 3%. fluid device motions in communications stood at a massive 73.8% of the mart, leaving on 26.2% for fixed line communications. Mobile minutes showed an increase of 1.4% from the previous tail end.There was an annual increase of 56.6% of alert physical exercisers actively using the 4G standard on the same period in 2014.Subscriptions to prompt intercommunicates increased by 0.36% on the previous quarter unless broadband subscriptions saw a decrease of 4.5% on quarter three. This is believably due to many providers nowadays bundling a broadband surety deposit in with subscription pleads.Fin wholey in the last quarter of 2015, average reven ue enhancement per wasting diseaser was on a d holdward trend compared to the same quarter in 2014. Mobile users spent an average of 24.62 per month in the final quarter compared to 25.00 per month a year previously. Again, this is believed to be a go forth of package bundling affecting revenue intake according to ComReg (2015) complex body part and Nature of the Current MarketThe four main mobile peal operators in Ireland are Vodafone, O2 (owned by the 3 engagement), Meteor and the 3 network stand-alone operator (separate from O2) (ComReg 2015). The five sm anyer providers accessible are PostPhone (An Post), Tesco Mobile, Dixons/Car audio warehouse ID Mobile, LycaMobile Ireland and Blueface Mobile.All four (Vodafone, O2, Meteor and 3 Network) of the main providers purport to publish the spare-time activity to consumers according to ComReg (2015)Prepay and post-pay services to both personalized and pedigree customer parts.Voice, SMS and entropy services to a stated 99% of the macrocosm, convey they claim to catch the whole of Ireland and outlying islands covered with their network signal. from each one of the four main networks supply second generation (2G), triad generation (3G) and fourth generation (4G) technology to their users.All five of the smaller mobile providers in Ireland (PostPhone, Tesco Mobile, Dixons/Car shout out Warehouse ID Mobile, LycaMobile Ireland and Blueface Mobile) do non wee-wee their own stand networks. Instead they utilise the current main network providers and rent a mobile virtual network operation (MVNO) which gives them the ability to prolong their own stained retail service to consumers.Tesco Mobile Ireland has entered into an MVNO commercial ar localisement with O2 (Hutchison 3 Ireland) to allow its traffic to be carried on the O2 network. Tesco Mobile Ireland is usable to personal customers only. (ComReg 2015)An Post PostPhone has entered into an MVNO commercial arrangement with Vodafone to allow its tr affic to be carried. diametric former(a) providers PostPhone does non have a unique prefix and kinda in effect resells minutes carried from Vodafone and accordingly differentiates (Re Brands) those minutes at the retail level. PostPhone is available to personal customers only. (ComReg 2015)Like Tesco Mobile Ireland, LycaMobile has an arrangement with O2 Ireland. LycaMobile offers by the minute evaluate and bundle packages for subscribers. They do non offer traditional pre-pay or billethook pay elections. (ComReg 2015)Blueface Mobile has entered into an MVNE (Mobile Virtual Network Enabler) with X-Mobility Limited, which is a sub-division of Hutchison 3 Ireland. Blueface sells both prepay and post-pay subscriptions to Business Only consumers. Like PostPhone, Blueface is reselling 3 Network minutes under its own brand. (ComReg 2015)Dixons/Car anticipate Warehouse ID Mobile is an MVNO of Hutchison 3 Ireland. ID offers a pay- periodical extract which comes with a hand clip (B illpay) over a fixed circumstance and as well as offers a sim-only thirty day rolling subscription. (Siliconrepublic, 2015)Expected Technological Trends for the next Decade (2016-2025)Looking to the future day, there are more than or less expected and some predicted advances that depart be do. The list is non endless and some of the close to useful advances are listed hereCloud Storage Right now obliterate storage is available provided Chris Nickson of atechnologysociety.co.uk predicts that exclusively mobile phone storage in the future go out be off-device.E actually subject from storing photographs and exposure to up weighting video and audio from ones computer leave go to the cloud.A potency bead off of people buying peripherals like SD Cards.Smaller hard drives on phonesMore space within the phone nerve leading to potentially smaller devicesSoftware (Apps) installed and stored on the cloudGreater phone security through central servers (Cloud)Contacts stored on the cloudAccess anywhere in the worldPossible cost issues for finance required to upgrade cloud servers and securityCost savings on handset manufacture as a result of less hardware required within the handset.(Nickson, C. 2013)solar powered handsets In developing countries, solar power could conceivably truly charge the handset with the use of just a small solar panel. (Nick T, 2015)Augmented Reality (AR) champion exit be able to splay the camera app and point it anywhere in the street to be shown a list of businesses and establishments on-screen overlaid on the display. (Poe, M. 2015)Organic Light-Emitting Diode (OLED) technology.Wafer thin screens that grass be folded and which great dealister show different output media on either side. One could show a video to a friend on the prickle of the phone while inputting info on the front.Due to physical flexibility, this technology could also be worn as a wristwatch and taken off, and unfolded to become a mobile device. (Poe, M. 2015)In-Built ProjectorMobile phones that can project images and/or video at oncely onto a wall or screen (Poe, M. 2015)3D Screens and HologramsMaking an image or video projection appear to be separate from the device actually emitting it. (Poe, M. 2015)5G and beyond.Using less bandwidth than 4GUsing less power than 4GEnabling a broader spectrum of frequency for connectionFaster connection speeds to Internet(Gregory, M.A., 2015)Kinetic Thermal PowerUsing bodily hunting expedition and heat to recharge mobile devices (Levars, N. 2016)Discarded Mobile Phone technology a problem Developing countries like those in Africa are currently a dumping ground for the Worlds discarded mobile detritus. As we keep in the first world, these dumps bequeath get larger and larger. A solution may be needed in the more aloof future (Nickson, C. 2013)Demographic and Psychographic Description of the Younger Sub-Segment of the Consumer MarketCurrently, smartphone ownership is one-sided towards th e younger age groups but with the increasing penetration in the market, this could rattling well change in the near future. (Red C, 2012)That check by red-faced C was taken in 2012 and what was unbowed then is doubly true today in 2016. Back in 2012 some 32% of Irish people owned a smart phone (Red C, 2012). Today that snatch has increased to 96% and that is just in one atom, the 15 to 35 year old bracket. (Thinkhouse Mobile, 2015)SO, what do people in the 18 to 25 year old fraction use their smartphone for?According to the latest survey from Thinkhouse (2015), the Youth Communications Agency, the following statistics ring trueIn 2015, the following uses were made of mobile phones from 18 to 25 year oldsType of Mobile Phone Subscription56% of 18-25 class Olds opted for Bill succumb subscriptions.44% of 18-25 Year Olds opted for the Pay As You Go optionGeneral Use66% employ for email23% utilise on traditional SMS put across (*Down from a peak of 66% in late 2011)59% use d for YouTube30% used for online television from paid subscription sites such as Netflix or Love Film.Social Media Use92% of mobile phone users in the 18-25 year old demographic used their phones for Facebook36% used for TwitterCommercial Use4% of people in this segment pay for online purchases on their mobile. The other 83% opted to pay on their computer. 13% did not conduct online purchases.78% of people compared the price of convergences online beforehand proceeding to buy the harvest-tide in-storeContent63% of this demographic like non-gaming apps. They prefer apps that serve a purpose for them.37% of this demographic prefer to have fun while using apps, either playing games or ceremony entertainment(All info supplied by Thinkhouse Mobile Youth Survey 2015.pdf, leave out *, by ComReg, 2015)It is also stated in this review by Thinkhouse media that the primordial use of a mobile phone for this segment is to charge school text messages. However this is contradictory to th e look into submitted by ComReg ( to a higher place). ComReg state that SMS sending is set down some 43% from 2011. The difference can be explained by the comer of apps that send messages for free such as Facebook Messenger and Viber, among many others. (Inner-Active, 2011)Market Research Suggestion for the Next Five YearsTel-Eir should look to pull together as much in formulateation as possible before deciding on phone tariffs, prices, bundles and pay as you go or bill pay options.As this companionship is starting out the first thing that needs to be known is, primarily what the publics appetite is for a vernal provider and secondarily what the public want from a new phone network provider. Whether Tel-Eir can deliver upon the publics desires will be a case of apprehension the research results.Initial Research MethodHaving thought nearly the best fictional characters of research and studied many methods, it has been decided to advise Tel-Eir to turn back out Personal Inter viewing (Kotler et al, 2012) initially in severalize to get an understanding of what the publicLike slightly the currently available providersDont like about the currently available providersLike to do on their handsetsAre not bothered with doing on their handsetsThink about the hardware and limitations of their handsetsWould desire if they had the risk to choose option plans for a providerThink about the be involved with owning a mobile phoneFeel is the main motive for owning a mobile phoneWould need to switch to a different networkThis discipline is required so that Tel-Eirs marketing staff can use the information on Buyer Decision Making processes to form an educated opinion of what angle to enter the market at.According to Donald S. Tull and Del I. Hawkins in their book, Marketing Research beat and Method (1993), Personal Interviewing, while organism expensive is the best way to glean a lot of information quickly. They state that Personal InterviewingIs Excellent for Flex ibilityIs Excellent for Quantity of data receivedGood for control of sampleGood for speed of data collectionGood for response rateMore expensive than other methods of collecting informationBy sending personal interviewers out into the agile thoroughfares of the five main Cities in Ireland, it is expected that a lot of correct opinions can be acquired and from that information Tel-Eir will be better place to formulate a strategy for market entry. Ongoing Research discharge forward, it is believed that Tel-Eir should continuously keep an eye on both rivalrys movements and new offers in the market and also on the changing demographic that are purchase its harvest-festival.It is advised that e genuinely year, Tel-Eir should partake inSales Forecasting, to know what the future holds for people continuing to purchase new handsets and plansOngoing Segmentation Research, to fit the demographic, psychographic, cultural, and behavioural characteristics of potential buyers. (Wikipedia, 2016)Brand Equity, in show to get a feel for what the public think of our brandCustomer Satisfaction, in order to understand our current users feelings about our productDemand Estimation, so that Tel-Eir can plan ahead and possibly tweak the offers and bundles being made to the publicMain Product OfferingHaving already completed some market research on current mobile phone network operators it is snarl that Tel-Eir should not use a Mobile Virtual Network cognitive process (MVNO) in which Tel-Eir piggybacks upon a network that is currently owned by a larger company like Vodafone for example. Purchasing statistics for such network providers is not good and it is felt that only by gaining its own licence can Tel-Eir truly become competitive in the market. (Irish autonomous, March 2016)According to research, Tel-Eirs targeting of the callowness segment (18-25 Year olds) should include the following attributesBoth Bill Pay and Pay as you Go should be offeredHigh End and rugged End handsets should be offeredFree Internet minutes should be a major section of any bundles offeredTraditional Text Messaging (SMS) is not as important as it once was and should not be overriding to offers.1. Offering Both Bill Pay and Pay as you Go BundlesThis should take the form of yen term Bill Pay contracts with an offer of a free handset (slightly outdated) or a cheaper handset (a small-scale more recent) or an expensive handset (latest on the market).It is also well(predicate) that the price of the handset while signing up for a long term bill pay contract should be connected to the monthly contract price. As an example, if one wants a handset from the latest range but with a cheap monthly contract, then one pays more initially for the handset. However, if one wants an expensive phone with an expensive monthly contract, then the phone could be offered free of charge, depending upon the length of contract signed up to. It is advised that for the latter, a two year contract b e set as the minimum. In this way the cost of the handset can be recovered over the duration of the contract.It is advised that Tel-Eir offer a month by month rolling contract. This new style of attracting customers has proven prevalent amongst the low waged and unwaged. Tel-Eir should offer an internet allowance and perhaps a text message (SMS) allowance with this. As SMS is decreasing in touristedity, oblation untrammelled SMS messages will appear to be a good offer but in reality will not be used as much as it may have been previously.Tel-Eir, in order to be competitive should offer Pay As You go occur up options in the following aggregates5 top ups for the unwaged and those in education10 top ups for the unwaged and low waged but slightly better off, such as single parents on social welfare, those in college receiving a grant, and those who are on schemes and low paid jobs who may not be able to give way larger top ups.15 top ups for convenience and as a bridge between th e low waged and unwaged segment and those in gainful affair20 top ups with added data and SMS allowances for those that use this option.25 and 50 top ups for the business customer who is too busy to top up very often and does not like to use bill pay. This is expected to be rare, but having it available will be a new option for the public.All of the above tariffs are guides only. It is of course understood that an unwaged person will on occasion top up by 50 and that a business user will on occasion top up by 5 or 10. The points made are specifically aimed at those segments that will predominantly spend in the stated behaviours.It should be allowed that all top ups and bill pay options can be paid by Credit/Debit Card and that a facility exists for both online compensation and direct debit.(All above information gained from ComReg, 2015)2. Handset ChoiceThe variety of handset offered is overriding in importance for the sale of Tel-Eirs network product. The profit is in the sale o f the different tariffs and bundles. However that sale will not elapse unless Tel-Eir sells the hardware that the public have come to expect and associate with popular and successful network brands.Therefore, it is advised that Tel-Eir sell all of the latest handsets from all of the roughly popular manufacturers.It is also advised that Tel-Eir try to get exclusive rights to an upcoming handset from a major supplier. Even short term exclusivity would be beneficial.3. Free Internet MinutesFrom research already collated, it is weak that connection to the Internet is of par bar importance to the public. There are so many things that a mobile phone user can do from being connected to the Internet. This is also paramount in lessening the use of the network throughput from SMS messages. Using the Internet will allow people to send instant messages using apps through third party servers, lessening the load on Tel-Eirs hardware.Having a good Internet allowance package available to them, will give the public the freedom to use their phones as they have been used to with the current major brands on the market. Tel-Eir should look to compete very favourably in this area. (The Atlantic, 2014)Lessening Importance of SMS MessagesAs users turn to third party apps for sending instant messages over the Internet, they are turning international from the traditional paid for SMS messages. It appears as though this trend will pass into the future. As a result of this, Tel-Eir should offer generous SMS bundles with offers secure in the knowledge that these will sell a product to a potential subscriber but once sold, will not be used very much at all. It is all about the offer look to be good value for money.Positioning and PromotionPositioning is not what your company physically does to a product-it is what your company does to a target customers attend (marsdd.com, 2015).The above statement is the most important thing to keep in mind when presenting Tel-Eirs new product to the market.The fundamentals of locating the product effectively in the market must be adhered to. These fundamentals areA customer decides to buy a product based upon the positioning of that productAll customers have an idea of what the market presents, by using a mental mapPositioning is not something that exists in the product but in the mind of the customerOnce a customers mind is made up about product positioning, it is not easily changedPositionings first travail is to present the relevance of a product.If one makes the product easier to purchase, then the product will be easier to sell. (marsdd.com, 2015)With the above tenets in mind therefore, Tel-Eir should pay especial(a)(prenominal) attention to the followingWhy does this product solve the consumers problems?What product crack will prayer the most to the consumer?What do consumers want the most from this type of product?What do consumers not want from this type of product? (brainmates.com)From the above presented prob lems one must come to the conclusion that Communication is the find to positioning and promoting a product. How does a company get from positioning to communication? shoot the breeze Fig 1.1 (next page)Therefore using the image in Fig 1.1 the company must decide upon its best avenue for answering these questions. Fig 1.1 (marsdd.com) cognize VariablesIt has been decided that Tel-Eir will target the 18-25 year old market segment initially.Questions and AnswersWhat will be the compelling reason for Tel-Eirs customers to buy?From market research the compelling reason will be based upon a operose Internet usage (data allowance) strategy. This is will enable the youth market consumers to use our product exactly the way that the evidence points to them wanting to use it.What will be Tel-Eirs initial product placement strategy in order to get the product into the minds of the target segment?Firstly, Tel-Eir will come up with an excellent slogan and product package. The packaging will b e of paramount importance. The logo of the brand and the words used are no less important. The statement used in promoting the product should include the primary appeal of the package offering.Taking into account the age group of the target segment, Tel-Eir will promote the product through the following channelsCreation of an interactional websiteBrochures in existing technology shops and phone shops that sell all network carriersPotential customer email campaignsSocial Media advertisement campaign angiotensin-converting enzyme Actor television advertisementBillboard advertising for viewing by this segment as they travel in day to day pursuits tone-beginning to get product used in a broadcast sham such as a soap opera or a feature filmGive away a limited amount of the product to various organisations such as Written and Broadcast media for use in competitions and to colleges and schools again as possible competition prizesAttend carry on fairs and extol the virtues of the product Attend third level college events and provide brand stretching items such as key fobs and perhaps some pedantic motivators such as rulers, paper, calculators and the like. Perhaps also give away golf tee shirts at such events. Also include product literature.What will the products key social welfare be as promoted to the customer?A key benefit will be a ground breaking offer on Internet data allowance. Tel-Eir will offer all customers an never before seen amount of data for all users regardless of top up amount or bill pay tariff. Naturally the amount will be incrementally more the more a consumer spends. However even at the last(a) spend, consumers should see an unequalled (in the market) amount of data being supplied.A key benefit will be the offering of free text (SMS) bundles. The higher a consumer pays the more free SMS messages they receive up to a supreme of completely free SMS messages.A key benefit will be Tel-Eirs competitive offers of new and recent handsets at eithe r free or very low priced amounts.Tel-Eir will also offer an insurance motivator for handsets soldTel-Eir will also allow all consumers to top up or pay bills online, at various pay points, by direct debit or over the phone using customer serviceWhat competitor will be closest to Tel-Eirs offering in the market?Both Vodafone and Meteor will resemble Tel-Eirs offering however it is believed that Tel-Eir will be able to supply an even better product offering that both of those competitors.What is the key difference between Tel-Eirs offering and the chief competitors?The mean key differences will beTel-Eir will offer more data allowance for similar pricesTel-Eir will offer free SMS (varying) amounts at ALL top up or bill pay levelsTel-Eir will offer handsets at lower prices than the competition.Positioning StatementFinally, Tel-Eir will pay particular attention to its selling statement for consumers. The statement will include the most important variablesIt will clearly and effective ly identify the target segmentIt will make the product offering effective, convincing, compelling and will be backed up by credible evidenceIt will glitter the target segments needs and localeIt will be explainable in a very few wordsThe positioning statement will take the format ofFor (target segment or customer) who (a compelling reason to buy) our product is a (products placement) that provides (key benefit that directly addresses the compelling reason to buy), unlike (primary competitor of the same benefit) our product (key difference). (marsdd.com)BibliographyBook ReferencesPrinciples of Marketing, Kotler And Armstrong (2012), Pearson Prentice Hall, P110.Marketing Research Measurement and Method, 7th edition, Donald S. Tull and Del I. Hawkins, (New York Macmillan Publishing Company, 1993)Marketing Plans (6th edition), McDonald, Malcolm (2007), Oxford, England Butterworth-HeinemannMarketing Research A Decision-Making Approach, Malhotra, Naresha K. (2002), stop number Saddle Ri ver, NJ Prentice HallPublication ReferencesIrish Independent Newspaper, 1st July 2014 edition, Business Technology Section, Independent News and Media 2014Online Referenceshttp//www.comreg.ie/_fileupload/publications/PR10032016.pdfhttp//www.comreg.ie/_fileupload/publications/ComReg1246.pdf. P22 et alhttps//www.siliconrepublic.com/comms/2015/07/02/id-is-irelands-latest-mobile-operator-and-its-out-soon. P17 18http//www.atechnologysociety.co.uk/cloud-computing-future.html. (Chris Nickson 2013)http//www.phonearena.com/news/Did-you-know-that-Samsung-launched-the-first-solar-powered-cell-phone_id67493 (Nick T, 2015)http//www.hongkiat.com/blog/future-smartphone-features/. (M.Poe 2015)http//phys.org/news/2015-04-5g-wireless-technology.html. (Mark A. Gregory, 2015)http//www.gizmag.com/energy-harvesting-shoes/41796/. (Nick Levars, 2016)http//inner-active.com/2011/08/10/5-reasons-the-new-facebook-messenger-app-will-kill-sms-and-5-reasons-it-wont/ (Hillel Fuld 2011)https//en.wikipedia.org/wiki /Marketing_researchhttp//www.comreg.ie/_fileupload/publications/ComReg1617a.pdfhttp//www.theatlantic.com/politics/archive/2014/01/why-texting-is-dying-out/441507/https//www.brainmates.com.au/how-to/%E2%80%9Chow-to%E2%80%A6-%E2%80%9D-position-a-producthttps//www.marsdd.com/mars-library/positioning-creating-an-image-of-your-product-inyour-target-customers-mind/