(mobileYouth) The 2011 SMART index: Handset Brands

ThemobileYouth®SMARTindex:

HandsetBrandsandYouth2011

Measuring youth influenceand

advocacy to predict future

handset brand strength and

marketshare.Keyfindingsfrom

the3marketpilotMobileYouth

SurveybymobileYouth®

ThePowerofInfluenceWhichhandsetbrandsareyouthrecommendingthemost?

Wherecaneachbrandfinditsbeachheadofvocalfans?

Howdoesinfluencevarybybrand,age,genderandlocaDon?

Full Survey Data Available

http://www.MobileYouthReport.com

SmartphonesneedSMARTbrandsWinningtheinfluenDalyouthsegmentmeansusingtherightmetrics,

that’swhywepioneeredthemobileYouth®SMARTindex–asimple

measureofyouthadvocacythatstronglycorrelateswithprofitability



1.KeyQuesHonsAnswered



Blackberry:AppstoreorBBM?WhydoesBlackberryneedtofocus100%onBBMandlessontheapp

store?WhydoesBBneedtostartinvolvingyouthinitsproduct

developmentprocesstostayaheadofthecurve?



Apple&Teens:Pandora’sBoxWhyarethenext3yearsgoingtobearealtestofApple’scontrolbased

businessmodelasanincreasingnumberofteensgetholdofIphones?



Samsung:ReliabilityorInnovaHon?WhyisSamsung’sfuturebrandstrengthwithyouthdependantonits

abilitytobecomethemostreliablehandset?Whyisaheavyfocusonthe

appstoreandhightechadistracDonforSamsung?



MotorolaorSonyEriccson?Whyisthesurvivalofthesebrandsdependantonwhichonewinsthe

20‐24yroldmalestudentmarket?Howcantheyturncashless

innovatorsintotheirleadingsourceofbrandappeal?Whywillonlyone

ofthesemobilebrandssurviveintact5yearsfromnow?



Nokia:GameOverorLastLife?Whydo25‐29yroldsrepresentthebridgebetweentheNokiabrandand

thelostteenagegeneraDon?WhyisNokia’sposiDoninemerging

marketsunderthreatfromtheBig3?WhatdoesNokianeedtodonow?



2.AbouttheMobileYouthSurvey



ThisDocument:

Youarereadingasummarizingthekey

findingsandrecommenda6onsfromthe

2011mobileYouthSurvey(2011MYS).

Allchartsareavailablefordownloadat

www.MobileYouthReport.com

The Survey was conducted by

mobileYouth with the Youth Research

Partners in 3 markets (Mr Youth USA,

Rlabs SA and Youthworks Malaysia) to

testandshareourfindings.

MYS2011Contains3elements:

1)SMARTIndexscores

2)ThemobileYouthBrandHeatmap

3)Recommenda6ons

MYS contains key implica6ons about

marke6ngandproductdevelopmentfor

handsetbrandsglobally.

Ifyouarefocusedonyouthyouwillfind

data and recommenda6ons that will

both challenge your assump6ons and

placeyouaheadofthecurve.

Whatisthisdocumentand

whyshouldIreadit?WhitePaperonyouthinfluenceandhandsetbrands



BehaviortoAXtude:

Companies need to move from relying

onbehaviorbasedmetricstoaQtude.

Behavior is historical, aQtude future‐

facing. In the table we compare the

qualita6ve differences. What value, for

example,anothersurveythatshowsUS

youth use 3,000 texts a month? We

believe such data simply adds to the

noise.Wecreatedthe2011MYStohelp

brandsfocusontheonekeymetricthat

maWersnow:recommenda6on.

Behavior AXtude

Example SMSUsage Brand

Recommenda6on

Timeframe LastQuarter NextQuarter

Use Repor6ng Predic6on

Comparing Behavior and AXtude

BasedResearchDatainYouthMarket

Whydidwecreatethe2011

mobileYouth®Survey?APowerfulTooltoMeasureandForecastBrandStrength



Forecasts&ImplicaHons

Apple: Market share will increase in

15‐19 year olds. App store piracy and

hacking to increase. Poten6al legal

issuestoApple’scontrolbasedmodel.

Blackberry: Con6nued strength in 20‐

something females esp. Emerging

Markets. Focus less on Appstore more

ondoingonethingwell(BBM).

Samsung: Recommenda6on driven by

reliability&durabilitynoapplica6ons.

SonyEricsson &Motorola: Both occupy

samebehavioralnichewhenitcomesto

recommenda6on.Onlyonecansurvive.

Support beachhead of 20‐24 yr old

males.

Nokia: Broad appeal eroded by niche

players–Apple(innova6on),Blackberry

(social badge) and Samsung (cost).

Needstoleverage25‐29yroldstoactas

marke6ngrolemodelsto15‐19yrolds.

2011mobileYouth®

SurveyResultsASummaryofFindingsfromthe2011MobileYouthSurvey



3.MeasuringInfluence



RecommendaHonDrivesProfit:

65% of youth handset purchases are

driven by word of mouth. What youth

sayisfarmoreimportantthanwhatour

marke6ngdepartmentssay.

The challenge ismoving fromoutdated

marke6ng models to more effec6ve

oneswithoutfindingsuitablemetricsto

measure performance. That’s why we

developed the SMART index – a

powerful tool to help mobile brands

becomepartofyouthconversa6ons.

BadMetrics=BadResults:

TheoldMcKinseysaw“Whatmeasures

gets done” holds true in every

organiza6on. Widely used does not

meansuccessful.Bewarefalsewisdom.

Most agency metrics are too

complicated to ac6on requiring a

reliance on the agency itself to both

interpretand implementmeasurement.

That’s why we’ve kept it simple – the

Simple Mobile Advocacy and

Recommenda6onTracker.

WhatisthemobileYouth®

SMARTIndex?SimpleMobileAdvocacy&RecommendaDonTracker



ASimpleYES/NOQuesHon:

Survey1000youthaskingasimple

ques6on“Wouldyourecommendthis

brandtoafriend?”

RecommendedBrands(+%SMART)

650youthrecommendedthebrandand

350didn’t,theSMARTindexis

(650‐350)/1000=+30%

IgnoredBrands(‐%SMART)

375youthrecommendedthebrandand

625didn’t,theSMARTindexis

(375‐625)/1000=‐25%

HowdoesthemobileYouth®

SMARTIndexwork?SoSimpleYouDon’tNeedanAgencytoTellYouYourResults

‐30%

‐20%

‐10%

0%

10%

20%

30%

40%

RecommendedBrand IgnoredBrand



65%ofYouthBuyHandsets

BecauseofPeerInfluenceAreyoufocusingonPaidorEarnedMedia?



Whyshouldyoumake

RecommendaHonthe#1metric?ChangeinprofitstronglycorrelatedtochangeinSMARTindex



AppleBlackBerry

Samsung

MotorolaSonyEricsson

Nokia

CHANGEIN

SHAREOF

MARKETPROFIT

SMARTINDEX

60% -60% -40% -20% 20% 40%

20%

60%

40%

-60%

-40%

-20%

Handset brands that have successfully

increased their recommenda6on scores have

alsoseenanincreaseintheirshareofmarket

profit as a % share. For example, Apple’s

SMART index recommenda6on score for

youth has increased nearly 50% while its

share of total markets has increased nearly

50%

Source:mobileYouth2011

SMARTindexscorescomparedRecommendaDon:Thesingleyouthmetricthatdrivesallmetrics

WordofMouthMulH‐Dimensional

ToplevelSMARTscoresonlytellpartof

the story. Nokia, for example, has a

youth SMART score of ‐20% sugges6ng

poor performance. But focus only on

25‐29 yr olds and the score rises to

+10%. Consider males and it rises

furthers6ll.

SMARTTargeHng

Sell to the sold. It’s the sold that

par6cipateinproductdevelopmentand

generate EarnedMedia for your brand.

It’s the sold that forgive youwhen you

screwup. It’s thesold thatare thefirst

to buy the new products. SMART tells

youwhereyourfansare.



SMARTindexcomparison2011Whichbrandsareyouthrecommendingthemost?




+45% +40% +33% +11% +2% ‐12%

mobileYouthSMARTindexscores

Our2011Surveyiden6fiedtheBig3ofYouthEarnedMedia:Apple,BlackberryandSamsung.

Theyarealsothe3mostprofitablebrands.AnalyzingSMARTscoresbyage,genderandregion

revealseachbrand(fromAppletoNokia)hasitsownkeyBeachheaditneedstofocuson

4.SampleBrandHeatmaps





Ifyoudon’tknowwhoyourfans

are…youonlyhavecustomersWhereisyourBeachhead?Howdoyoumeasureyourimpactonthem?

Key

RedHot

Hot

Warm

Cold

IceCold

NoData

USA SouthAfrica Malaysia

Apple

Blackberry

Samsung

Motorola

Nokia

SonyEricsson

HTC

LG 15‐19 20‐24 25‐29

Moto‐

rola

Male Female

Sony

Ericsson

ThemobileYouth®2011SMARTbrandheatmapwherearethehotspotsforyouthwordofmouth?

Moredata&insights:www.MobileYouthSurvey.com

Source:

mobileYouth2011

15‐19 20‐24 25‐29

Black‐

berry

ExtensiveDataAvailableat


Preview



SampleSMARTindexdataFemalesdriveBlackberryEarnedMediainSouthAfrica

SouthAfrica

Apple

BlackBerry

Samsung

Motorola

Nokia

SonyEricsson

HTC

LG

KEY

REDHOT

HOT

WARM

COLD

ICECOLD

NODATA




USA

Apple

BlackBerry

Samsung

Motorola

Nokia

SonyEricsson

SampleSMARTindexdataSurveyrevealskeyMotorolabeachheadin20‐24yrmales

KEY

REDHOT

HOT

WARM

COLD

ICECOLD

NODATASource:mobileYouth2011



20‐24yrolds

recommend

Motorolathe

most

15‐24yrs

failto

recommend

Nokiaatall

but25‐29yr

oldsare

posi6ve

Moredata&insights:www.MobileYouthSurvey.com

Source:

mobileYouth2011

SMART:MotorolaandNokiaAcloserlookatthedatarevealskeybeachheadsoverlooked

MoreHeatmaps,ChartsandDataAvailableat


Preview



BEHAVIOR DEMOGRAPHIC BRANDs

PIRACY 15‐19yrmales Apple

ACCESSORIZATION 20‐29yrfemales Blackberry

ASSURANCE Allages Samsung

SELF‐DISCOVERY 20‐24yrmales Motorola,SonyEricsson

NOSTALGIA 25‐29yrm&f Nokia

5YouthBehavioralTrendsWhichtrendswillimpactwhichbrandandwho’sdrivingthem?



5.5KeyQuesHonsYouNeedtoAsk





1.ArewetargeHngcustomersorfans?



2.WhereisourBeachhead?Where

arehotspotsonourBrandHeatmap?



3.Whataretheirkeydrivers?Howcan

wewinshareofcustomernotmarket?



4.WhatisourSMARTindexscore?

DoesourmarkeHngincreaseor

decreaseit?Whatisourtargetscore?



5.Howdoweknowwe’rehalfway

there?

6.MoreInformaHon



TechnicalData

abouttheSurvey

Methodology:

• The research was conducted across 3

countries:UnitedStates,SouthAfrica&

Malaysia.

• 2011 MYS covered 3638 respondents

acrossthe3countriesbetweentheages

of15‐29.

• A mix of both offline and online

method was adopted to collect

responses.

• Handset brands included: Apple

iPhone,BlackBerry,Samsung,Motorola,

Nokia,SonyEricsson,HTC,LG



Partners

mobileYouth

MrYouthUSA

RlabsSouthAfrica

YouthworksAsia

To access detailed data and insights

specific to your market or to discuss

howtheseinsightscouldalsobeapplied

to your company/market then refer to

thenextslide:Ac6onPoints.

Getthefullversion&charts




MobileYouthReport:

Youareviewingapreviewversionofthe

Mobile Youth Survey without the

extendedbrandheatmapsordatasets.

Our exis6ng clients have full access to

the 2011Mobile Youth Survey, the full

downloadable file, insights and

recommenda6onshere:


The site also gives you access to over

400 charts for 65 countries detailing

youthmobileculture.

Downloadthe2011SurveyData

To access the data and downloadable

chartsyouneedtosignupat


If you’d prefer to talk to a youth

specialistthencallmobileYouth:

UK:+442032863635

NorthAmerica:+16468673635

SouthAfrica:+27110836351

Asia:+85281763650

MOBILEYOUTHyouth marketing mobile culture since 2001

THE MOBILEYOUTH 2013 REPORT

Want more trends?

http://www.mobileYouth.org




http://www.mobileyouth.org




youth marketing insights for handset brands,



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(mobileYouth) The 2011 SMART index: Handset Brands