1. Developing markets for smartphones and how
to reach new consumer segments
Mauri Metsäranta
Mobile Software Sales and Marketing
Nokia
1 © 2007 Nokia Corporation

2. • 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

3. Where are the largest growth markets?
Russia
China
Mexico India
Egypt
Thailand
Indonesia
Brazil
Chile
South Africa
3 © 2007 Nokia Corporation

4. Who are they?
4 © 2007 Nokia Corporation

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Examples
China
India
13 © 2007 Nokia Corporation

14. Nokia E50 re-fresh campaign in India
14 © 2007 Nokia Corporation

15. Nokia N72 travel campaign in India
15 © 2007 Nokia Corporation

16. Nokia 6120c launch with applications in China
16 © 2007 Nokia Corporation

17. Stock application
campaign with S60
device portfolio in China
17 © 2007 Nokia Corporation

18. 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

19. Thank You!
Please visit
www.s60.com or www.s60.com/cn
www.blogs.s60.com
19 © 2007 Nokia Corporation