SKOPOS - Internet research / panels



Mobile Phone Marketing Becomes Tougher
23/6/01



Thomson Intermedia has published a detailed investigation into the marketing and advertising strategies of mobile phone operators in the UK.

The report aims to deliver an insight into the branding, positioning and targeting strategies employed by mobile phone companies in the UK. Illuminating the market drivers, it compares product and service offerings, as well as providing analysis of the communications spend. Utilising Thomson Intermedia's own in-house media monitoring capabilities as well as its consumer panel of Internet users, the report gives access to intelligence on consumer perception and brand awareness, and implications for the future.

Some of the key findings include:


  • Advertising expenditure is large, with each operator spending an average of nearly £15 million on press advertising alone during 2000, presenting a barrier to entry to new entrants that do not have established brands in the UK.
  • During 2000, there was a shift towards strengthening the emotional brand values of traditionally business-orientated and functional brands such as Vodafone and BT Cellnet. These operators attempted to promote the benefits of products and services rather than the technological features, leading to a more customer orientated market.
  • Orange and One 2 One have consistently positioned their brands as consumer-friendly, although each has distinct target audiences and branding strategies.
  • Branding is strong in the market, with brand awareness over 98% for key players.
  • Advertising is positively rated for all mobile network operators, although the newest market entrant, Virgin Mobile, is rated most positively.
  • The impact of technology, changing pricing structures and market penetration levels is likely to drastically change the mobile network operator sector in the next decade. This will lead to increased emphasis on building relationships with customers and creating and maintaining strong, elastic, emotional brands within the mobile network operator sector.


According to Charles Ilsley, Research Director at Thomson Intermedia's Research Division, "The UK's mobile phone market is becoming increasingly competitive with branding, positioning and targeting becoming important differentiators. From the research that we've conducted it is evident that with the advent of new technologies and new competitors to the market this trend looks set to continue, with the power of the brand becoming all the more important."