University of Teesside
Teesside Business School

Integrated Communication Plan
- for the UK mobile phone market -

Team members:

Alex Gillett
Femi Ajasafe
Harry Lovell
Stephen Holmes
Volker Schmid

Submitted for the MSc in Marketing Management
Module/ Tutor: Integrated Marketing Communication, Alan Smith et all
Word length: app. 9,500

January 2005

Executive Summary

This report outlines a new IMC strategy for the ‘Siemens Mobile’ brand, which, despite being a well recognised brand, has yet to make a strong impact within the 16- 24 year old age group. It also contains an in depth analysis of the target market, and as well as a breakdown of the current position and image of Siemens Mobile.

The target market for this segment has many unique attributes, which make it unusual, but one which is potential very profitable. The 16-24 year old group is very fashionable, sociable, and concerned with social acceptance, but at the same time wishing to display a degree of ‘individualism’.

Siemens mobile is currently has an image of a focused, efficient, technologically advanced company with a reputation for quality engineering. They are currently positioned towards the ‘older’ business class clients, who value quality and engineering excellence.

In order to appeal to the 16-24 year old market, a re-branding and re-positioning of the ‘Siemens Mobile’ brand will need to occur. A new, fun, trendy, fashionable, energetic, and youthful brand of ‘Sie Mobile’ (pronounced ‘see-mobile’) will be introduced which will appeal to younger people. This new brand will be closely correlated to the attitudes and values identified within the 16-24 age group.

‘Sie Mobile’ will be introduced in several stages, based on the customer’s buying process (Holder and Watson’ pyramid model; IDM, 2004). It will utilise both established and new marketing techniques including television, radio, magazine, internet, SMS, and billboard campaigns. This strategy will emphasise the fun, fashionable, and technological features of the brand, and will cost approximately £8,750,000 to launch.

Table of contents

Executive Summary ... i
Table of contents  ... ii
List of Figures  ... iii
List of Tables  ... iv

1 Target Market Analysis  ... 1
1.1 Socio-demographic Characteristics ... 1
1.2 Psychographic Analysis  ... 3
1.3 Behavioural Aspects ... 4
1.4 Needs of the Target Audience ... 7
1.5 Market Development  ... 7
1.6 Summary ... 8

2 Market Analysis  ... 9
2.1 Payment Options ... 10
2.2 New Generation Models ... 11
2.3 Advertising and Promotion  ... 11
2.4 Challenges  ... 13
2.5 Corporate Assessment ... 14
2.6 Summary ... 15

3 Problem Identification ... 16
3.1 Sub-Problems  ... 16

4 Problem Resolution: Marketing Strategy  ... 18

5 IMC Drivers  ... 20
5.1 Direct Marketing Mediums ... 21
5.2 Mobile-Marketing ... 23

6 Recommended IMC Strategy ... 27
6.1 Introduction to ‘Sie Mobile’  ... 28
6.2 Evaluation Procedure  ... 35
6.3 Flexibility  ... 36

7 Pricing  ... 37

8 Conclusions ... 41

9 Bibliography  ... 42

Appendix  ... 44

List of Figures
Figure 5.1 Direct Marketing by Media.  ... 22
Figure 5 Yearly totals of chargeable text messages, 1999-2003.  ... 24
Figure 5.0.1 customer’s buying process pyramid.  ... 27

List of Tables
Table 1.1.1 Population growth.  ... 1
Table 1.1.2 Income statistics of the UK.  ... 2
Table 1.1.3 Target market accommodation.  ... 3
Table 1.3.1 Reasons for buying a mobile phone.  ... 6
Table 2.1 Estimated mobile phone handset brand share, by volume, 2000-02.  ... 9
Table 2.1.1 UK retail sales of mobile phones, by volume and type of package, 1999-2000.  ... 10
Table 2.4.1 Total main monitored media advertising expenditure on the mobile phones market, by media type, 2001 and 2002.  ... 12
Table 2.4.2 Top five advertisers - mobile phone handsets, 2001 and 2002.  ... 13
Table 5.1 Information sources of the target audience.  ... 21
Table 5.2 Telephone penetration among Mintel′s sample of 15-29-year-olds, July 2000. Telephone penetration among Mintel′s sample of 15-29-year-olds, July 2000.  ... 23

1 Target Market Analysis

This section analyses the target market audience in regard to their sociodemographic, psychographic, and behavioural characteristics,. Furthermore, it considers the market development targeted at 16 to 24 years olds, In addition to their personal needs.

1.1 Socio-demographic Characteristics

The UK market for mobile phones has a market volume of approximately 3,400 million pounds in 2004 (Datamonitor, 2003). This relates to a population of 59.6 million people in 2003 (UK Statistics, 2004). The population accounts for 51.5 percent female compared to 48.5 percent male (Datamonitor, 2003). Mgain (2003) states that there is a difference between both genders in terms of mobile phone usage patterns, for example, females use the SMS function more often than males. The UK population is growing by approximately 0.4 percent per year (UK Statistics, 2004), and with it the mobile phone market. Table 1.1.1 abstracted from Mintel (2003) shows the population increase of the target market between the years of 1997 and 2007.

Table 1.1.1: Population growth.

[...]

Source: Mintel 2003

Much is said about the concentrated marketing strategies on the young, particularly in an ageing society. However, in the short to medium term and based purely on head counts, this is not necessarily an ineffective strategy. The number of young adults aged 15-29 is set to rise by over half a million in the next five years, with all five-year bands in this group increasing. Given the fact that this sector of the population is often establishing lifelong consumertrends, or at least this is what marketers should set out to establish, Mintel (2003), believes that these 11.6 million consumers are well worth the effort.

However, Turnbull (2000) investigated the target audience of 16 to 24 year olds, and statistics showed a negative trend in the two decades, as the birth rates in the UK are falling. In around 20 years the population size of the target group will decline by approximately 10 percent. The target audience accounts for 29 percent of mobile users in the UK and show the highest grades of market knowledge.Furthermore a Mintel (2003) study into educational status shows that 30% of the target audience is in full time education. The report also shows that 38% of the target audience are in full time employment and that 10% are in parttime employment. The report also suggests that men aged 15-29 are considerably more likely than women to be working full-time. Similarly, socioeconomic groups, middle-earning C2 and C1 categories are most likely to be full-time workers. The least affluent E and affluent AB consumers are most likely unemployed. Table 1.1.2 illustrates the average income of the target market in full time employment.

Table 1.1.2 Income statistics of the UK.

[...]

Source: Mintel 2003

Residential status of 16-24-year-olds is very important as this enables identification of the current disposable income of the target group. Mintel (2003), states that those youngsters living with their parents are likely to have a greater proportion of disposable income than those living elsewhere. Table 1.1.3 shows that 98% of 16-17 year olds live with their parents compared to the 21-24 year olds, where 55% do not live with their parents.

[....]