How To Reach New Segments Segmentation

• Growth market opportunities • Where are they • Who they are • How consumers use S60 smart devices • Usage profiles • Data usage drivers • Comparison to Europe • Successes and challenges in driving smartphone adoption • Why would they buy a smartphone • How to sell 2 © 2007 Nokia Corporation

Broadly Speaking, Consumers Fall Within 4 Quadrants High Involvement Mobile Mobile Communication Communication as trend leaders empowerment tool Rational Aspirational Mobile Mobile Communication Communication only when trend followers necessary Low Involvement Source: Nokia consumer research 2006-2007 5 © 2007 Nokia Corporation

Focus into “high involvement“ segments HIGHER Technology Leaders INVOLVEMENT Technology Stylists Pragmatic Leaders Young Explorers Life Builders Life Jugglers Style Leaders RATIONAL ASPIRATIONAL Image Seekers Mature Acceptors Style Followers Family Providers LOWER Simplicity Seekers INVOLVEMENT Source: Nokia consumer research 2006-2007 6 © 2007 Nokia Corporation

Young Explorers Life Builders Very social people and Aiming to make something of living life to the full themselves What do they look for in mobile What do they look for in mobile communications? communications? • Immediate connectivity to friends for organizing • Convergence is a key purchase criteria social lives • Data services for personal productivity • All-in-one handset with computer functionality • Digital content such as gaming, watching, music • Music • All-in-one handset with computer functions, large • Advanced communications functionality number of features • Mid-high to high handset and services value • High-quality camera Source: Nokia consumer research 2006-2007 7 © 2007 Nokia Corporation

Europeans spent 48 minutes a day using their smartphone EUROPE 2007 Other Messaging 31 % Smartphone usage minutes increased 33 % 60% in Europe in a year! Voice minutes have not increased, but other functions have acquired much more time Voice calls (multimedia, navigation, browsing, email, 12 % Multimedia/ MMS, SMS)… Infotainment PIM 13 % 11 % EUROPE 2006 Other 20 % Messaging 31 % Voice calls 24 % Multimedia/ Infotainment 11 % Source: Nokia Smartphone 360 studies 2006-2007 PIM 14 % 8 © 2007 Nokia Corporation

Chinese spent 82 minutes a day using their smartphone! Number of minutes spent per application category CHINA 2006 S60 Browser 40 File Manager 35 Other Dictionary 15 % 30 Minutes / Day Messaging 38 % S60 Messaging 20 Voice calls QQ 22 % 12 Pica 11 XRose… 10 6 5 4 3 2 2 1 1 0 Multimedia/ PIM Infotainment y ce es M ng f ig ng 15 % ia n ity t en r/U tilit w PI ed i am 10 % t iv si on gi Vo no m t im U w sa uc in C G nk ro es ta ul od B fo M M Contacts Pr In e Gallery th Log O Camera Calendar… QQPlayer… * Source: Nokia, 360 Smartphone study/China 2006 9 © 2007 Nokia Corporation

Internet services drive data service usage Source of data traffic in China* • 40% from connected add-on Multimedia / Other infotainment applications 0,3% 19 % • Multimedia data nearly all from internet services • Nearly half of the messaging data Messaging from add on IM applications Browser 19 % 62 % Contacts QQ Groups Information Friends List QQ Show * Source: Nokia, 360 Smartphone study/China 2006 10 © 2007 Nokia Corporation

They are after style and features • Features that are relevant • Brand • Design with personalization • Affordable price • Internet services and add-on applications • Growth market differ from developed markets in three aspects • Word of Mouth • Budgeting • Trust 11 © 2007 Nokia Corporation

65% of the decisions are made in-store • Build on the device brand • Provide on-line to support for pre- purchase decisions and to increase loyalty • Utilize social influencers and communities • Use and train promoters to sell value and excite the customers in retail • Affordability through re-fresh campaigns • Differentiate from feature phones with partner innovations • Right balance with Global and local features 12 © 2007 Nokia Corporation

Challenges • Distribution and retail experience • Cost and speed of data traffic • Availability of local applications and content • Competence and technical support • Developer business case • Discovery, distribution and billing 18 © 2007 Nokia Corporation

How To Reach New Segments Segmentation

by inkeunsong on Jun 12, 2008

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How To Reach New Segments Segmentation — Presentation Transcript