Professional Documents
Culture Documents
Orange Africa Consumer Segmentation 1
Orange Africa Consumer Segmentation 1
February 2010
1
France Telecom Group Restricted 1
2
France Telecom Group Restricted 2
Project Objectives and approach
Research methodology
Segmentation overview
– Mobile usage
– Attitudes
Conclusion
3
France Telecom Group Restricted 3
We have developed a pan-AMEA market segmentation
4
France Telecom Group Restricted 4
2010 Usage in marketing and communications
Tools Marketing & Comms
required Objectives
Marketing
MICRO data base • One to One marketing & sales Not
MARKETING • Customer Base Management applicable
Customer
tagging • Up-sell / retention / CRM-A today
5
France Telecom Group Restricted 5
Project Objectives and approach
Research methodology
Segmentation overview
– Mobile usage
– Attitudes
Conclusion
6
France Telecom Group Restricted 6
The Process Of Segmentation:
From a common framework to a survey based segmentation
The segmentation process moves from macro-segments based on official statistics to defining a
sample frame and creating final segments from consumer survey data
Define first Size first macro- Survey in 6 Define Define & size
macro-segments segments and set AMEA segments from macro-segments
(expert view) survey sample countries survey results across AMEA
Purchasing
power (1) Yo un g Ro ug h Urban Heal th y
Ro y al s Diamo n ds Auth en ti cs Hed g ers
Af f luent &
Wealthy Age/
T he Socially Expenditure 15-19 20 - 29 30+
Elite s ,foc us T op-o f-t he- Been th ere,
on high-end heaps cons cious
connec ted
d one th at.
> 150 $PPP Well Off Age/
st atus s ymbols N o w delight Expenditure 15-19 20 - 29 30+
Life Ho us e me!
Famil y (per month) Self (4%)
> 150 $PPP Well Off
Man ag er Ho l d er en ri chers employed
Mul ti-c hannel Dig ital Ho me
(13%)
(per month) (10%)
Upp er
Tex p erts Rin g master CIO 150 $PPP Young
mid dle inco me - (19%) Student 150 $PPP Young
F amily T he F amily 1 st-t imeTw ilight
first pers on C o nsumers 60 & young - Middle class
(19%)
Gett ing D evice -happ y ‘uber’- Your (per month) Householders (17%) 60 (28%)
C onnec ted is co nnect ed. H elpde sk, but active (7%)
th e Goal Tren d Fres h f or ‘H ot’ T ech (per month)
Mo men t Only
Seeker Starter
Maxi mizer
e15 existing framework Official statistics and surveys Survey in 6 countries to Define segments based Define macro-segments
consolidation refine segments and on survey results and based for all AMEA
Interviews with AMEA countries Segmentation rules definition profile usage/needs proximity between micro- countries and calculate
and external experts (World Bank, 2nd round of feedback with groups their weight
OECD,CNRS, ENST, Ubifrance) countries to share quantified -Socio-demo-eco
segments - Telecom usage
- Attitudes
Macro Survey
7
France Telecom Group Restricted 7
A survey conducted in 6 countries with 1,000 interviews per country
Focus on teens :100 teens from 10 to 14 interviewed with a shorter questionnaire to get insight on
their behavior and needs
8
France Telecom Group Restricted 8
A questionnaire designed in collaboration with countries,
with pilots in Senegal & Kenya
Purchase / refill:
Top up & methods and channels
Handsets Handsets channels
Handsets brands owned
General (socio-cultural)
Attitudes, Attitudes towards techno
Lifestyle, media Telcos barriers & triggers
habits Leisure (TV, radio, sport…)
Main TV & radio channels
Brand awareness
Brand ownership
Brands Brand image
9
France Telecom Group Restricted 9
Survey coverage
• Survey results are presented at global level (6 countries) and weighted based on country size
in total population of the survey scope
Country weight in global results
Kenya 44%
Cote d'Ivoire 20%
Madagascar 15%
Mali 7%
Senegal 13%
Guinea Bissau 1%
• In order to analyze the addressable target, the survey scope covers the population over 15
years old covered by mobile (over representation of users)
This means that the survey gives different figures than national statistics we are used to
Research methodology
Segmentation overview
– Mobile usage
– Attitudes
Conclusion
11
France Telecom Group Restricted 11
6 segments based on survey results
Survey in Senegal, Ivory Coast, Mali, Guinea B., Kenya, Madagascar
Age/
Expenditure* 15--19
15 20 - 29 30+
> 150 $PPP Premium
(per month) Self (8%)
Employed
150 $PPP (13%)
Young
- (19%) Student /
60 Young
(per month) Householder (15%)
Active
(6%)
Student / Young
Entrant Householder Young Self Employed Premium
Active
20-
20-29 inactive Student or active 20 20 y.o + 20 y.o +
20 y.o + or >30 y.o to 29 y.o Own a small The upper income
Low expenditure 15 to 19 y.o
Middle Class Daily expense business group
Daily expense ($ppp) : All Social Classes
Daily expense ($ppp) : ($ppp) Daily expense ($ppp) Daily expense ($ppp)
<$2 $2 to $5 $2 to $5 >$2 >$5
Calls SMS @ Calls SMS @ Calls SMS @ Calls SMS @ Calls SMS @ Calls SMS @
13
France Telecom Group Restricted 13
Our AMEA consumer segmentation (2/2)
the 6 segments in Africa, global survey
Student / Young
Entrant Householder Young Self Employed Premium
Active
Age 39 (avg.) Age 41 (avg.) Age 17 (avg.) Age 24 (avg.) Age 35 (avg.) Age 32 (avg.)
33% > 2nd educ 53% > 2nd educ 28% > 2nd educ 55% > 2nd educ 64% > 2nd educ 71% > 2nd educ
72% Rural 59% Female 56% Urban 61% Rural 72% Urban
66% Own 75% Own 53% Own 84% Own 86% Own 94% Own
89% Use 86% Use 92% Use 98% Use 95% Use 97% Use
9% Use 18% Use 22% Use 38% Use 28% Use 56% Use
Basic services Financially Aspire to Similar attitudes Highest usage of Techno addict
restrained technology to young with more mobile for business
- Price conscious money High spend client
Utility prevails High potential Bargain and
Key target (high target as they will Early techno quality searchers Opportunity to
% of population) Large section of turn into young adopters turn them into fixed
the lower income actives Key segment line and internet
urbans Prime target (high mobile value) customers also
14
France Telecom Group Restricted 14
Segment size by volume and mobile value share
40% of the population are Entrant, which can be sub-divided into 3 groups.
Despite being the lowest income group they still have 30% of all mobile spend within this group.
Premium are only 8% of population, but represent 18% of value
15
Base: All Base: All 15
France Telecom Group Restricted
Segment size by volume by country
ENTRANT
29%
44%
Rural 53%
60% 56%
61%
71%
73%
56%
Urban 44% 47%
40% 39%
28%
Countries vary quite significantly in terms of average household size, with highest sizes above 12 people in Mali, followed by
Western African countries, and lowest in Kenya and Madagascar around 5. 5
However the pattern across segments is similar between countries , and showing sensible variations :
Households for the Premium are smaller than average. On the opposite side, 55% of the Young live in large households. The
situation is similar for Entrant where 52% of households have 6 or more members
16
14
12
Kenya
Senegal 10
Madagascar
Guinea Bissau 8
Cote d'Ivoire
Mali 6
Total
4
0
All Entrant Householder Young Student / Self Premium
Young Active Employed
18
Q14 Household Size - Base: All
Project Objectives and approach
Research methodology
Segmentation overview
– Mobile usage
– Attitudes
Conclusion
19
France Telecom Group Restricted 19
Mobile usage and SIM ownership (mobile used in Last 3 months)
Thepenetration of mobile usage is very high amongst all segments,
segments especially for Young Active,
Active Premium and Self Employed.
Employed
Young and Entrant have a significant gap between usage of mobiles and ownership of SIMs,
SIMs while the Self Employed and
Premium use their own SIM. Multiple SIM appears among all segments, except quite rare among Entrant and Young.
Own Multiple SIMs Own at least one SIM Used Mobile in Last 3 Months
97%
PREMIUMPremium 92%
43%
SELF 95%
Self Employed
EMPLOYED 94%
29%
STUDENT & 98%
Student / Young
YOUNG Active
ACTIVE 89%
35%
92%
YOUNG Young 65%
16%
86%
HOUSE-
Householder
HOLDER
81%
27%
89%
ENTRANT Entrant 73%
13%
91%
All 78%
22%
20
France Telecom Group Restricted 20
SIM cards and handsets
Non ownership of either handset or SIM is quite frequent in 3 segments with lower income, although their
claimed mobile usage is quite high, suggesting other access method to use mobile.
Only among Premium have a very high proportion have both SIM and handset, Self Employed and Student /
Young Active slightly behind.
9% 2%
4% 4%
20% 16% 2% 10% 3%
Non Owner 25% 7%
3% 32%
2% 9%
9% 2%
8% 3%
Own phone but no SIM
14%
84% 89%
Own SIM but no phone 82%
69% 72%
64%
51%
Own Phone and SIM
21
France Telecom Group Restricted 21
Number of SIMs owned
22
Q. 31 Number of SIM cards / Base: all respondants France Telecom Group Restricted 22
Number of SIMs on average
(amongst owners of SIM card)
2,5
Global
2,1
Kenya
2,0
Senegal
1,5
Madagascar
1,0
Guinea Bissau
Mali
-
Total Entrant Householder Young Student / Self Employed Premium
Young Active
23
Q14 Household Size - Base: AllTelecom Group Restricted
France 23
Why multiple SIMs?
Student / Young Active have multiple SIMs to take advantage of price offers, while the Premium have
more SIMs to allow different usage
Student /
House- Young Self
Reason for having Multiple SIMs All Entrant holder Young Active Employed Premium
% with multiple SIMs 22% 13% 27% 16% 35% 29% 43%
To make or receive calls from other people
59.0% ++ - -- -
on the same network
Network coverage for different areas 8.0% +++ --- --- --- +++ ++
24
Base: Respondents with more than one SIM (Q31) France Telecom Group Restricted Q32: Why do you have more than one SIM card? 24
Total household spend vs. spend on mobile
For most segments but Premium, mobile spend accounts for a large share of household spend. Young may have a
low spend even if live in a middle or high income household.
Spend on Mobile ($PPP)
$25 average
$102
average
25
Total Household Spend Per Person ($PPP)
Q35: How much is spent on SIM? France Telecom Group Restricted Q12: Total spend per month 25
Mobile Communication services usage (ever)
Gap vs mean
SMS / Text Message Beeping / Call me back MMS (Photo or Video Message)
22%
PREMIUM
Premium 2%
18%
6%
SELF
Self Employed
EMPLOYED 4%
14%
14%
STUDENT &
StudentYOUNG
/ Young Active
ACTIVE 13%
18%
-,5%
YOUNG Young 15%
12%
-1%
HOUSE-
Householder
HOLDER -9%
2%
-8%
ENTRANTEntrant -8%
-17%
Airtime transfer Mobile Money Transfer / Payment Downloading (ringtones/ games, etc)
24%
PREMIUM
Premium 20%
21%
SELF 8%
Self Employed
EMPLOYED 28%
22%
Research methodology
Segmentation overview
– Mobile usage
– Attitudes
Conclusion
28
France Telecom Group Restricted 28
Fixed line vs. internet usage
High internet usage is primarily among Premium and Student / Young Active. Young will probably adopt this usage when growing up.
Daily + Fixed line Usage
7% average
16%
average
PREMIUM 58%
Premium 48%
19%
SELF 32%
Self Employed
EMPLOYED 21%
7%
STUDENT & 50%
StudentYOUNG
/ Young Active
ACTIVE 33%
6%
27%
YOUNG Young 17%
6%
HOUSE- 19%
Householder
HOLDER 13%
3%
10%
ENTRANTEntrant 6%
1%
24%
All 16%
5%
31
Base: Internet users (Q84) Q90: And where do you access the internet?
France Telecom Group Restricted 31
Project Objectives and approach
Research methodology
Segmentation overview
– Mobile usage
– Attitudes
Conclusion
32
France Telecom Group Restricted 32
General attitudes to telecom
Student / Young
Entrant Householder Young Self Employed Premium
Active
Student / Young
Entrant Householder Young Self Employed Premium
Active
Prefer evening at home to Pay more for quality Be seen to be trendy / Enough money to look Pay more for quality
Connected to community
party / pub products cool after self / family products
Be seen to be trendy / Pay more for quality Pay more for quality Important to feel part of
cool Same brands & products products group
products every time
Enough money to look Prefer evening at home Be seen to be trendy / Be respected by friends
after self / family to party / pub cool / colleagues
Be respected by friends
/ colleagues
Seek advice before Prefer evening at home to Connected to
Be successful in life Retain cultural traditions
making purchase party / pub community
Save money for the
future
Enough money to look Important to feel part of Prefer evening at home
Family is most important Retain cultural traditions
after self / family group to party / pub
Connected to
community
Q98: I am going to read some statements other people have made about technology and technological products More important to segment than average
(e.g. mobile phones, digital cameras, games consoles, laptops & computers, etc). Please could you tell me the Less Important to segment than average
34
extent to which you agree or disagree with each of them? France Telecom Group Restricted 34
Project Objectives and approach
Research methodology
Segmentation overview
– Mobile usage
– Attitudes
Conclusion
35
France Telecom Group Restricted 35
Conclusion
- When young have low usage, it is mainly due to budget constraint, telecoms being very aspirational for them.
- Advanced mobile services and strong internet usage is mainly concentrated in 2 segments, with potential
linked to generation effect
All social levels are resourceful in their telecom usage to optimize their budget (i.e. : SIMs
management), and therefore find access and solutions to satisfy their needs
Differentiated services (beeping, credit transfer, payment, etc) have appeal in a varied pattern
depending on the segment. Their development require targeted efforts and marketing
Global results allow to share cross-country insights about segments. Some key characteristics with
local differences will further be analyzed at country level.
36
France Telecom Group Restricted 36
Macro-planning for deployment
2010 2011
Jan Feb Mar Apr May Jun
Appropriation
Group (LoBs, TechnoCentre)
Countries (CMO, CEO, Zone VP)
Roadshow segmentation
AMEA
Madagascar Feb 16/17
37
France Telecom Group Restricted 37
Segmentation across AMEA zone (all 16 countries)
a i l a b le
oo n av
i e w s
ove rv
l ob a l
38
G
France Telecom Group Restricted 38
Project team and contact
Project Co-leadership
– Group Marketing: Isabelle HERBERT-COLLET
– AMEA: Isabelle LEON
Executive sponsors
– Jean-Philippe VANOT
– Marc RENNARD
Contacts
– Sandrine FRONVAL (Group Marketing) sandrine.fronval@orange-ftgroup.com
– Valérie PERNELLE (AMEA) valerie.pernelle@orange-ftgroup.com
39
France Telecom Group Restricted 39
Thanks
40
France Telecom Group Restricted 40
Appendix
41
France Telecom Group Restricted 41
AMEA is developing its first Pan AMEA segmentation, while Europe
is applying its new individual segmented marketing
Mature markets, relatively comparable (Still 2 Huge disparity of markets maturity and wealth
groups W Europe & E Europe) No experience of multi-country Consumer
Context
From selling access (Mobile, PSTN, Internet) to From selling access (Mobile, PSTN, Internet) to
Segmentation evolution
selling access and leveraging individual usages selling access and leveraging socio demo and
based on convergence (services, handsets..) and economic discrepancies to differentiate on the
new usages market
Individual
Mobile segmentation 360°
360° Individual
No common socio/demo
socio/demo/
demo/eco
+ usages/attitudes
Segmentation and telco
Household segmentation segmentation
segmentation
42
France Telecom Group Restricted 42