Optimising positioning
to combat new
entrants
Telecoms Service Provider
Background and sample

This study demonstrates the analysis benefits and output of an Optima approach in the
telecommunications market

The data has been de-branded to ensure confidentiality and fictional brands created

Sample = 1300 men and women aged 16 – 50 who currently subscribe to a mobile phone
service provider and are the main decision maker on which service provider to subscribe to

Questionnaire scope:
 Behavioural: experience of network providers (7 providers)
 interest in subscribing in the future
 length of time of subscription
 ranking of providers
 number in household using
 source of purchase of provider
 services used
 value-add services used
 Attitudinal:
 reasons for choice of providers use regularly and occasionally
 reasons for choice of providers may use in the future
Service Provider Study 1
Objectives

Market characterised by many new entrants in recent years. Most
have very small foothold but 2 providers (HelloHello and Extra Mobile)
have grown to reasonable share. CurrentPhone is the largest provider
by a considerable margin.

The analysis in this case study focuses on PhoneAll. This brand is No.
2 in the market – it was originally government owned and has been
available for over 15 years. Recent entrants have significantly impacted
on its market share. These competitors entered the market offering
competitive rates and alternative options/ plans.

The case study investigates the position of the brands in terms of usage
and brand image and uncovers drivers of choice in the service provider
market. PhoneAll‟s objective is to develop stronger brand/ product
credentials to re-inforce its position in an increasingly competitive
environment. In addition, we are simulating potential positioning
options to focus resources.

The focus of the analysis is on the top 4 providers.
What is the current usage situation?
The core behavioural information:

Usage behaviour – awareness, incidence, length
of time, source of purchase, number of users

Repertoire/ competition levels

Likely future subscription

Provider profiles

Subscriber profiles

Service and value-add services used
Service Provider Study 3
Usage behaviour – awareness, incidence, likelihood
In essence, 4 key brands in the market, with ConnectPhone the clear brand leader. PhoneAll and HelloHello on equal
footing as second brands in the market. PhoneAll suffers from high „unlikely to subscribe‟ while Extra Mobile has
positive future intention
ConnectPhone
41
PhoneAll
25
HelloHello
23
Extra Mobile
15
TA Phone 3 3
11
11
4
5
ConnectPhone
62
10
2
66
72
39
Roamer 3
RingMe
47
9
43
PhoneAll
25
HelloHello
23
Extra Mobile
57
58
41
15
TA Phone 3 3
38
51
10
10
23
2
15
42
17
35
47
51
47
13
50
18
Roamer 3 4
RingMe
36
27
47
42
50
Use nowadays
Ever used but not using nowadays
Currently subscribe
Might subscribe
Heard of but have never used
Never heard of
Unlikely to subscribe
Definitely not subscribe
Usage behaviour – length of subscription, source of purchase
PhoneAll been in market the longest; HelloHello is recent entrant and gained considerable share
Length of time of subscription
ConnectPhone
13
PhoneAll
6 12
HelloHello
18
Extra Mobile
20
15
29
29
20
25
41
90
63
6 mths or less
Over 6 - 12 mths
Over 2 - 4 years
Over 4 years
11
2.7
ConnectPhone
3.2
PhoneAll
5 1.6
HelloHello
13 2 1.3
Extra Mobile
5 5 0.4
Roamer
5 0.7
TA Phone
17
30
32
24
Roamer
TA Phone
26
23
Place of purchase
Ave. no.
years
21
Over 1 - 2 years
38
37
49
10 4 11
30
45
8 2 11
33
11
59
25
67
60
10
9
24
13
20
6
5 4
7
Mobile service provider store
Individual service provider store
Teleco store selling handsets
Electronic retailers
Other
Brand profiles – age and region
New entrants stronger amongst younger subscribers
Extra Mobile has strength in the west – a function of launch strategy and distribution
User age
ConnectPhone
10
PhoneAll
7
HelloHello
17
12
Extra Mobile
15
16
18
25
16
41
14
5
18
19
19
Roamer
TA Phone
22
Region
16
16
10
13
11
43
33
11
24
47
16 - 20 years
21 - 25 years
26 - 30 years
36 - 40 years
41 - 45 years
46 - 50 years
9
7
8
13
PhoneAll
11
HelloHello
8 6 6
14
ConnectPhone
5
5 5 5
31 - 35 years
54
18
TA Phone
28
25
Extra Mobile
Roamer
9 3
27
29
5
11
19
14
12
29
16
5
5
12
13
42
8
13
19
43
11
17
9
17
13
11
20
10
10
9 4
10
Capital City
Second City
South Regional
East Regional
North Regional
West Regional
Usage behaviour – number of users
Connect Phone
39%
PhoneAll
29%
HelloHello
23%
27%
Extra Mobile
6%
5%
Most often
provider
Total no. users
of provider
45%
21%
ConnectPhone, as market
leader, collects almost half of all
users;
PhoneAll obtains relatively less
users than its
competitors, therefore concern on
volume share as well as
penetration
More than one user may occur per subscriber and hence used as “volume” surrogate. The
market is generally characterised by a low incidence of sharing, due to availability of
affordable, second-hand units
Service Provider Study 7
User profiles – provider use most often
Clear strength for PhoneAll amongst white collar households
All
respondents
Farmers
Blue collar
households
White collar
households
Students
%
%
%
%
%
ConnectPhone
39
33
33
46
28
PhoneAll
29
13
28
26
37
HelloHello
23
26
32
17
27
Extra Mobile
6
25
5
9
6
Roamer
2
2
1
1
1
TA Phone
1
1
1
1
2
Shaded cells are significantly above the total, at 90% level
Service Provider Study 8
Usage behaviour – services used
More recent entrants have higher proportion using SMS/ MMS
Voice Call
71%
72%
SMS/ MMS
26%
25%
67%
65%
31%
34%
HelloHello
users
Mobile Extra
users
76%
22%
Data Services
Total Sample
ConnectPhone
users
PhoneAll
users
Service Provider Study 9
Usage behaviour – additional services used
Connect Phone users use more value-add services on average; Extra Mobile and PhoneAll have lowest
proportion (less than 3)
ConnectPhone
users
91%
SMS
72%
Check account
PhoneAll
users
HelloHello
users
Mobile Extra
users
91%
88%
93%
94%
70%
75%
72%
71%
Ring tones
24%
32%
21%
24%
12%
Mobile Operator Customer
Service
23%
21%
25%
29%
17%
28%
16%
20%
10%
24%
11%
15%
10%
19%
9%
14%
20%
Songs
Music downloads
Games
21%
17%
15%
Downloads (pictures/ graphics)
12%
17%
8%
13%
6%
Top-up account
12%
13%
12%
12%
10%
Ring back tone
11%
15%
8%
10%
7%
MMS
10%
14%
10%
9%
5%
The situation so far …

The usage understanding tells us much about the current market and the brands:
 While there is a clear market leader, the more recent entrants are making in-roads in terms
of current subscribers as well as future intentions
 PhoneAll appears to have been „left behind‟, i.e. older age profile, higher unlikely to
subscribe, lower number of users per household and low use of additional services

We need to investigate brand attitudes and perceptions to identify the opportunities and
barriers to growth

We will also look at possible brand message options to strengthen the appeal of PhoneAll for
current users (to minimise migration) and attract new users
Service Provider Study 12
What are current providers strengths and weaknesses?
What is driving provider choice in this market?
How do we use the „Attitude‟ information?

Brand strengths and weaknesses and
differentiation

Opportunities and barriers

Main drivers of choice in the market

Fit of brands with drivers

Potential for strengthening positioning
Service Provider Study 13
Top reasons for choosing provider
Top 5-6 reasons similar except price aspect relatively stronger for HelloHello and Extra Mobile; this weaker for
PhoneAll
Nationwide coverage
ConnectPhone
1
PhoneAll
1
HelloHello
1
Extra Mobile
4
Good indoor coverage
3
2
2
5
Reliable company
2
4
5
9
Good outdoor coverage
4
3
4
3
Good promotions/ deals
6
6
6
2
Superior reception/ clarity
5
5
7
15
More/ lower voice charges
10
15
3
1
Competitive top-up bonus
7
10
9
6
Vouchers/ pre-paid always available
8
8
10
8
No dropped calls
9
7
11
Many denominations of call cards
11
13
12
12
Prompt SMS delivery
12
9
13
13
Popular in the market
13
12
14
Good customer service
14
14
15
14
8
7
More/ lower SMS charges
15 = Long history
in market
11 = Long history
in market
Ranking of reasons for choice by provider reported (top 15)
Green shaded cells are higher ranking than the market in total; blue shaded cells are lower ranking
10 = Frequent offers/ promotions
11 = Wide range of phones
Service Provider Study 14
Brand strength and weaknesses and differentiation
Extra Mobile clearly differentiated on lower charges/ offers; PhoneAll has relative strengths in „long history‟
and „coverage‟ aspects
Reliable company
9
Long history in market
9
Superior reception/ clarity
7
Nationwide coverage
6
Dynamic brand
6
2
8
Wide range of phones
3
Good indoor coverage
2
Customise phone number
2
-9
Good promotions/ deals
1
-8
-1
Free calls within call time
-1
Free starter pack (talk bonus)
More/ lower voice charges
-1
-6
More/ lower SMS charges
-7
-24
-12
-23
-1
-30
5
4
Extra Mobile
0
13
First to launch new features
Good outdoor coverage
HelloHello
PhoneAll
ConnectPhone
5
-1
-2
-2
-1
-7
-24
-8
-4
-4
3
8
3
-15
1
8
3
5
3
-6
-3
-15
-19
Deviations above and below the market average reported
2
-8
3
6
-1
8
17
18
15
17
Service Provider Study 15
… and if know this, can develop SWOT analysis to highlight
opportunities for and barriers to growth
Importance in market
Weaknesses
Opportunity
Key
strengths
Opportunities are attributes that are important
to the market and the brand is positive –
therefore indicates potential areas for growth
Weaknesses represent threats to the
brand – these are attributes that are
important to the market but where the
brand does not deliver
Niche
strengths
Key strengths are attributes
that are important to the market
and also a strength for the
brand.
Promoting on the key
motivators will attract both
present and new buyers to the
brand as well as increase
differentiation from
competitors.
Niche strengths are attributes
that are a strength for the
brand but only important for a
minority of the market.
Strength to brand
Service Provider Study 16
PhoneAll – opportunities and barriers
Opportunity to promote coverage aspects or service . Prompt delivery/ efficiency also an option Value
aspects are not positive versus other providers
Market
Average
Weakness
Strength (relative to other brands)
Significant Weaknesses
Significant strengths
Importance (% of sample with a positive attitude)
100%
Having nationwide coverage
Reliable company
Has good indoor coverage
Has superior reception/clarity
Has more/lower charges for voice
Has good promotion/deal/offer
Key Brand Drivers
Niche Brand Drivers
Opportunities
Threats
Weaknesses
Not important to
market or brand
Has good outdoor coverage
Offer competitive Top-up bonus
Reload vouchers/pre-paid cards are always available
No dropped calls
Offers many denominations of call cards
Prompt delivery of SMS
Frequent launch of offers and promotions
Has good customer service/reliable
Branded telco store is readily accessible
Popular in the market
Is quick to resolve problems and complaints
More plans to choose from
Keeps me informed with its products, services and promotion
Has 24 hours 7 days a week customer service that can be contacted from the mobile phone
Having good coverage in nearby areas
Ability to connect first time when making a call/easy to connect with no busy signal
Has rate/plans packages that caters my need
Has advertising that is relevant to me
Prompt delivery of voice mail
Has more/lower charges for SMS/texting
Starter packs are easily available
Has a wide range of mobile phones/handsets to choose from
Service Provider Study 19
ConnectPhone – opportunities and barriers
As brand leader, ConnectPhone is positive for many attributes
Market
Average
Weakness
Strength (relative to other brands)
Significant Weaknesses
Significant strengths
Importance (% of sample with a positive attitude)
100%
Has more/lower charges for voice
Has good outdoor coverage
Having nationwide coverage
Reliable company
Has good indoor coverage
Has superior reception/clarity
Has good promotion/deal/offer
Key Brand Drivers
Niche Brand Drivers
Opportunities
Threats
Weaknesses
Not important to market or brand
Offer competitive Top-up bonus
Reload vouchers/pre-paid cards are always available
No dropped calls
Offers many denominations of call cards
Prompt delivery of SMS
Frequent launch of offers and promotions
Has good customer service/reliable
Branded telco store is readily accessible
Popular in the market
Is quick to resolve problems and complaints
More plans to choose from
Keeps me informed with its products, services and promotion
Has 24 hours 7 days a week customer service that can be contacted from the mobile phone
Having good coverage in nearby areas
Ability to connect first time when making a call/easy to connect with no busy signal
Has rate/plans packages that caters my need
Has advertising that is relevant to me
Prompt delivery of voice mail
Has more/lower charges for SMS/texting
Starter packs are easily available
Has a wide range of mobile phones/handsets to choose from
Image that is relevant to me
Good store design
Offers the best products and services
Has service provided in handsets
Has more services/applications/features
Its show rooms/shops are conveniently located
Has presence in handsets
Offers high speed data/mobile Internet
Always the first to launch new features
Customer orientated company/values its customers
Dynamic and progressive brand
Offer lower off-peak rates
Offer longer off-peak hours
Has loyalty program that rewards long term customers
Has loyalty program that rewards based on usage level
Handset (stocks) are readily available
Offer longer Grace period (can receive incoming call, SMS & FREE emergency calls)
Service Provider Study 20
HelloHello – opportunities and barriers
Lower charges are strengths but good coverage and customer service aspects also positive
(similar to PhoneAll)
Market
Average
Weakness
Significant Weaknesses
Strength (relative to other brands)
Significant strengths
Importance (% of sample with a positive attitude)
100%
Key Brand Drivers
Having nationwide coverage
Reliable company
Niche Brand Drivers
Has good indoor coverage
Opportunities
Has more/lower
Has superior reception/clarity
Threats
charges for voice
Weaknesses
Has good promotion/deal/offer
Has good outdoor coverage
Not important to
Offer competitive Top-up bonus
market or brand
Reload vouchers/pre-paid cards are always available
No dropped calls
Offers many denominations of call cards
Prompt delivery of SMS
Frequent launch of offers and promotions
Has good customer service/reliable
Branded telco store is readily accessible
Popular in the market
Is quick to resolve problems and complaints
More plans to choose from
Keeps me informed with its products, services and promotion
Has 24 hours 7 days a week customer service that can be contacted from the mobile phone
Having good coverage in nearby areas
Ability to connect first time when making a call/easy to connect with no busy signal
Has rate/plans packages that caters my need
Has advertising that is relevant to me
Prompt delivery of voice mail
Has more/lower charges for SMS/texting
Starter packs are easily available
Has a wide range of mobile phones/handsets to choose from
Image that is relevant to me
Service Provider Study 21
Mobile Extra – opportunities and barriers
We know this provider operates on a value proposition but also positive for being “personal/ local”
Market
Average
Weakness
Strength (relative to other brands)
Significant Weaknesses
Importance (% of sample with a positive attitude)
100%
Significant strengths
Having nationwide coverage
Reliable company
Has good indoor coverage
Has superior reception/clarity
Has good promotion/deal/offer
Has good outdoor coverage
Offer competitive Top-up bonus
Reload vouchers/pre-paid cards are always available
Has more/lower
charges for voice
Key Brand Drivers
Niche Brand Drivers
Opportunities
Threats
Weaknesses
Not important to
market or brand
No dropped calls
Offers many denominations of call cards
Prompt delivery of SMS
Frequent launch of offers and promotions
Has good customer service/reliable
Branded telco store is readily accessible
Popular in the market
Is quick to resolve problems and complaints
More plans to choose from
Keeps me informed with its products, services and promotion
Has 24 hours 7 days a week customer service that can be contacted from the mobile phone
Having good coverage in nearby areas
Ability to connect first time when making a call/easy to connect with no busy signal
Has rate/plans packages that caters my need
Has advertising that is relevant to me
Prompt delivery of voice mail
Has more/lower charges for SMS/texting
Starter packs are easily available
Has a wide range of mobile phones/handsets to choose from
Image that is relevant to me
Good store design
Offers the best products and services
Has service provided in handsets
Has more services/applications/features
Its show rooms/shops are conveniently located
Has presence in handsets
Offers high speed data/mobile Internet
Service Provider Study 22
Main drivers of choice in the market
6 drivers of choice identified, which cover both functional and service aspects
Each of the sectors are described by attributes that significantly apply
Lower
charges,
23%
Coverage

Coverage,
16%



Reliable, 13%



Flexibility,
14%
Popular, 18%

Good coverage in nearby areas
Ability to connect first time
No dropped calls
Prompt delivery of SMS
Superior reception/ clarity
Better international roaming
Good outdoor coverage
Good indoor coverage
Customer
focus, 16%
The size of the sectors are based on the % of brand choices
Attributes which are significantly positive at 90% level and more strongly associated with this
sector reported
Service Provider Study 23
Profile of choice drivers
Lower
charges,
23%
Lower
charges,
23%
Coverage,
16%
Reliable,
13%
Flexibility,
14%
Reliable,
13%
Flexibility,
14%
Popular,
18%
Customer
focus, 16%
Popular









Show rooms conveniently located
Long history in the market
Choice of most people
Popular in the market
Branded store easily accessible
Leading pre-paid card brand
Has 24 hours, 7 days a week customer service
Handsets readily available
Offer many denominations of call cards
Coverage,
16%
Popular,
18%
Customer
focus, 16%
Customer focus









Customer orientated company/ values its customers
Quick to resolve problems and complaints
Has better security
Has good customer service/ reliable
Keeps me informed of products, services, etc.
Has loyalty program that rewards long term customers
Contributes to the progress of the nation
Has more service/ applications/ features
Cares about welfare of society
Profile of choice drivers (cont’d)
Lower
charges,
23%
Lower
charges,
23%
Coverage,
16%
Reliable,
13%
Reliable,
13%
Popular,
18%
Flexibility,
14%










Customise mobile phone number service
Offer number selection
More plans to choose from
Offers longer „grace‟ period
Has rates/ plans to cater for my needs
Wide range of mobile phones to choose
More/ lower charges for SMS
Offer long active period
Prompt delivery of voice mail
Offers longer off-peak hours
Popular,
18%
Flexibility,
14%
Customer
focus, 16%
Flexibility
Coverage,
16%
Customer
focus, 16%
Reliable





Reliable company
Has foreign partners
Best for business users
Image that is relevant for me
Has high technology
Profile of choice drivers (cont’d)
Lower charges





More/ lower charges for voice
Offer free on-net
More/ lower charges for data
Offers free calls within limited period
Has good promotions/ deals
Lower charges,
23%
Coverage,
16%
Reliable, 13%
Flexibility,
14%
Popular, 18%
Customer focus,
16%
Service Provider Study 26
How are the main brands positioned?
Lower
charges,
23%
Coverage,
16%
PhoneAll occupies the same space as
ConnectPhone, with relatively stronger
association with „coverage‟. This
aspect is PhoneAll‟s core strength.
Extra Mobile strongly associated with
„lower charges‟ and also „flexibility‟;
while HelloHello relatively stronger for
„customer focus‟.
Reliable, 13%
Flexibility,
14%
Popular, 18%
Customer
focus, 16%
ConnectPhone
PhoneAll
HelloHello
Extra Mobile
Service Provider Study 27
Competitive understanding
Which brands are associated with the market drivers?
Many providers have some association with „lower charges‟.
Few have any positive association with „customer focus‟ – is this a potential area for PhoneAll?
In addition, is it worthwhile for PhoneAll to strengthen further its association with „coverage?‟
Popular
Customer
focus
Flexibility
Reliable
Lower
charges
Coverage
ConnectPhone
0.48
0.07
-0.15
0.36
-0.60
0.13
PhoneAll
0.60
-0.08
-0.46
0.35
-0.68
0.50
HelloHello
-0.50
0.21
0.05
-0.18
0.39
-0.11
Extra Mobile
-0.46
-0.08
0.43
-0.43
0.67
-0.41
TA Phone
-0.36
-0.18
0.20
-0.08
0.50
-0.23
Roamer
-0.48
-0.27
0.29
-0.27
0.62
-0.16
RingMe
-0.08
0.09
0.12
-0.28
0.13
-0.07
This table reports the association (correlation) scores [which were plotted on the previous slide]. An
association score of 1 means perfect association, i.e., all reasons for this brand were the attributes defining that
driver. The closer to 1 a brand achieves, the stronger it is delivering to that driver. Significantly positive and
negative association scores are indicated.
Service Provider Study 29
Evaluation of positioning strategies for PhoneAll

Based on current understanding, consideration is being
given to three alternative strategies for promoting the
brand further. These are:
 Customer service
 Coverage
 Prompt/ efficient service
A „value‟ proposition is also to be evaluated

Via simulation of the promotion of specified attributes for
PhoneAll, guidance is provided on which strategy is likely
to be most beneficial for the brand

The simulation evaluates the effect of promoting on the
best attribute, the next best and so on. It takes into
account the interaction effects between the
attributes, and the extent to which they support each
other or cancel each other out etc. for that brand
Service Provider Study 30
Alternative future positioning strategies for PhoneAll
Option i:
Customer service
Has good customer service
Has 24 hr, 7 days a week
customer service
16%
Cumulative
potential
increase
16%
15%
34%
Quick to resolve problems
14%
52%
Potential
increase
Has good indoor coverage
28%
Cumulative
potential
increase
28%
Has good outdoor coverage
25%
60%
Good coverage in nearby areas
12%
79%
Potential
increase
Option ii:
Coverage
Option iii:
Prompt/
efficient service
No dropped calls
23%
Cumulative
potential
increase
23%
Prompt delivery of SMS
20%
48%
Prompt delivery of voice mail
13%
67%
Potential
increase
Relative to the other scenarios,
a „coverage‟ message has the
potential for the largest increase.
Indoor and outdoor coverage is
stronger combination than
breadth of coverage.
Potential increase = potential increase in share from new statement after previous statement has been promoted.
Cumulative potential increase = combined potential of the statements. This illustrates how messages can
combine to be more (or less) than the sum of their parts
Note: „Potential increase‟ is relative to other messages
Service Provider Study 31
What about promoting on ‘value’ aspects?
Has good promotions/ deals
More/ lower voice charges
20%
11%
Cumulative
potential
increase
20%
33%
More/ lower SMS charges
7%
42%
Potential
increase
„Value‟ platform
Option ii: ‟Coverage‟ platform
A „value‟ message would not be
as advantageous for PhoneAll
relative to the other strategies
suggested
Cumulative
potential
increase
79%
Option iii: ‟Prompt/ efficient‟ platform
67%
Option i: ‟Customer service‟ platform
52%
Service Provider Study 32
Where to go next?

We have now understood the drivers of choice in the market
overall, how the brands deliver to those drivers and the specific
strengths, weaknesses and opportunities for PhoneAll

The challenge for PhoneAll is to strengthen perception and
offerings versus competitors, especially against the new
entrants of Extra Mobile and HelloHello

Promotion of the „coverage‟ message would reinforce current
users and leverage against ConnectPhone

Both „efficiency of service‟ and „customer service‟ messages
are positive for PhoneAll and offer the potential for attracting
new users, particularly against HelloHello

Mobile Extra is positioned clearly as a value brand, but we
suggest PhoneAll does not promote directly on this aspect, but
rather focus on current strengths and opportunities
Service Provider Study 33

Any U &A study needs to be able
to understand the present and
provide direction for the future

Optima approach does that by
delivering:

a rigorous in-depth
understanding of current
brands and competitors

insight into future brand growth
and direction to strengthen
positioning against competitors