Orange Retail Review Q1.ppt

RetailReview,February27,2010,Agenda,Thescienceofretailing:multi-sensescommunicationsGeneralThairetailtrendsChannelreview:whatweexperiencedTelecomshops&ourcompetitorsDealers/DistributorsDownlinetradeHongKongVisit:wherethemarketmightbegoingWhereandhowwecoulddomore,RetailReviewParameters,Includesvisitstoover10differentshoplocations,shoppingoutlets,mallsandtechmallsintheBangkokmetropolitanarea.Unliketraditionalmedia,theresnowaytotracktelecomretailexceptviastorevisitations.Itislikelythatsomethingwasmissed.Doesnotincludeup-countryretailersCustomer/Consumerinterviewsarerandomandstatisticallynotrepresentativeofourtargetaudiences.,Research:multi-sensesapproach,Sight:Howdoesthestore/POSlook?Whatsthevisualeffect?DoIclearlyunderstandtheproductorservice?AmIenticedtolearnmoreandbuy?Sound:Doestheretailerclearlyhelpsupportandorselltheproducts?Istheinformationclear?Cantheyclearlyexplainthedifferences?Feeling:DoIliketheenvironment?AmIbeingtreatedspecial?DoIfeelIwanttobrowseorjustkeepmoving?,Whatareconsumerslookingforonashoppingtrip?,Discovery:consumerslovetheunexpectedTalking:storesthatencouragecouples,friendsorgroupsofshoppersusuallydowell.,Whatareconsumerslookingfor?,Recognition:peoplewanttoshopwheretheyfeelwantedBargains:obvious,evenintheposheststoresTouch:werelivinginatactile-deprivedsocietyBuySomething:bydefinition,Examples,StoresThatDeliver:NokiaEmporium,Propaganda,SiamDiscovery,StoresThatDeliver:OakleyEmporium,BuildingConsumerBonds,GeneralRetailTrendsAndThailand,Design,Minimalistlookisstillverypopularbutitsgettingoldquickly.Storeswilleventuallymovemoretowardscleanbut“cluttered&busy”Premium:consumersexpectstoresclean,organized&modernDumpydisorganizedwillsoonlosepopularity,Hybrids,TraditionalserviceandproductsectorsnowcombiningwithestablishedbrandstobuildimageOrangecouldexploitthisopportunity,Hybrids,Tesco-LotusFactor,Nowwith56stores,Tesco-LotusdominatesThairetailingthewayCentralusedto.Over2millionconsumersshopTescoamonthTescoisnowexpandingintomini-supermarkets,itcouldeasilygointothetelecombiz.,ChannelReview:WhatWeExperienced,OverallObservations,Smallscalemom/popretailersareenteringandleavingthemarketatalarmingrates.Afteropenphonestandards,majortelecomsshowverylittleinterestorskillinphonesalesValueaddedcontentandservicesisstillbig,althoughnoonehasproveditsuccessfulOrganizedchain-dealerssuchasBlisstel&Jaymartcontinuetoexpand,pushingdownlinetradeinto2ndhandphonesandaccessories.,MajorTelecomShops,OrangeAISDTAC1-2CallHutch,OrangeShop,Comments:BestdesignofalltelecomshopsCurrentPriorities(inorder):Cashier,Service,VASStrongonmarketing,weakonsalesNointeractionwithphones,difficultbecausespreadoutamongstoval&walldisplays,littlephoneinformation,featuresorcomparisonsLimitedvalue-addedsalespromotionsotherthanshirtforSimsSalespromosoftenleftuptostorestaffLongwaits(upto6mininSiamDiscoveryduringlunch)withlittletodo,letaloneacomfortableseat,Shelvestoocluttered,notforshopping,CompareToNokiaShopBlockMerchandising,CompareToNokiaShopBlockMerchandising,ShopWindowsNotInControl,AIS,Totalservicemorelikeabank-verylittlebrandingeffort,butthiscouldchangeVASMobileLifemerchandisingseemedabandonedfromlastyearslaunch,nointerestfromconsumerPhonesales/demonstrationsnoteveninthepictureServicegood,butnotasfriendlyordirectasDTAC,OrangeorHutch,1-2Call,Purebranding,notreallyastoreasweknowitbecausetherewasnothingtosellFreeinternetuseneverworks:1MainlandChinesetouristdoingbusinesscorrespondence&1ThaichattingonMSN.,1-2Call,Reasonableselectionofpremiumsforsale,butnothinguniqueTieinmerchandisewithmovielaunches(butnobrandconnection)InconsistentmallshopsaremuchbetterbutlacktrafficForcefedyouthculture,1-2CallMallShop,DTAC,Servicecounterbanklook,veryformalandoutofdate,NoPOSinmainshopsSmallershopspre-myDTAC/DPromptre-brandingStrongservicefeeling,freejuice,waterandcandyLongerwait,butcomfortableseatandnewspaperNofestivemarketingmaterials,Hutch,Excellentyouth,modernandfunlookStrongCIinallsectorsStaffwelltrainedandveryknowledgeableaboutVASofphoneandveryconvincingofbenefitsClearandfocusedmessagethroughoutshop,ChainDealers,ChainDealers,GrowinginnumbersthroughoutthecountryMainplayers:Blisstel,JayMart,MShop,etc.Havelatestphones,offergooddealsonphones,financingandsimpackagesfromallmajornetworksOccasionallydotie-inpromotionwithtelecombutusuallysmallornotexclusiveBiggestthreattothesmallmom&popsandtelecomshops,J-Mart:MerchandisingByBrand,StrongNokiaPresence,DownlineTrade,MainObservations,Movingawayfromnewphonestousedphones,accessoriesandpre-paidSIMcardsastherearebetterprice&serviceoptions.Witheasybarrierstoentrytheresahugeturnover.Product/Serviceknowledgeisinconsistentthiswillhurtthemaschaindealersgetmoresophisticated.POS:Bottomline,amess,andcontrolledbywhomeverispromotingatthattime.Conflictingconsumermessagessurelymeansthatconsumersarentgettingit.,Whoscurrentlywinningthebattle?,DTAC(DPrompt)rulesindownlinetrade.Theyareextremelyaggressiveandhavemadeitoneoftheircoremarketinginitatives.OrangeisemergingasastrongsecondAISisfallingbehind.Hutchnowentersthemess.,WhatsDpromptsSuccessFormula?,HungerforthebusinesswithlotsofpromotionsandproductoptionsSingle,consistentmessage,repeatedoverandoveragainineasytounderstand(butdeliberatelyunclear)visualsRecently:“BabySIM”usedasentrypointforundecidedconsumers,OtherObservations(Orange),Genericphonebackingcardslookabitlonely.RetailersshouldbegiventoolstopromotephonesManyretailerscomplainedabouttariffsonpostersasbeingdifficulttoread.,Howcanweimprovehere?,CreateinnovativePOSthatsintrusiveandinthefaceoftheconsumerinadifferentway.AvoidtheposterbombunlessyouhaveaDTACbudgettocombatit.Focusonthekeysellingshopsandavoidthelittleguys.YoucouldsavemillionsonwastedPOS.Runmonthlysalespromotionsthattippossiblecustomerstoourside.,Thelikelyresult:POSrejection,HongKongMarketComparison,Similarities/Differences,HongKonghas6telecomplayersfor6millionpeopleConsumerscanfreelychangetelecomswhilemaintainingtheirphonenumberMajoritypost-paidsubscribers,sotelecompaymentplanspushout3rdpartyphonedealersHutchs“3”justlaunchedMorephonebrowsersthanThailand,CSLShop,Goodphonemerchandisinginwindow,Goodproductdescription,ColorScreenWindowDisplay,Modern,CleanInterior,SmarTone,3,OrangeHK,OthersMcDonalds,Premiumasbothbrandpromotionandcharity,TheFutureTelecomShop,Recommendations,GetHungry!,RunBTLtacticalsalespromotionsinallchannels.MemberGetMemberPrograms:Freephone,freeSim,freemerchandisemakeitincrementaltothenumberofconsumersyoubringin.“SwitchToOrange”Campaign:bringinyouroldsimandgetarealupgrade!Giveasimple,compellingreasonwhyyoushouldswitchandgiveanincentiveanddeadline.TrialSIMGivefreeSIMcardstogetpeopletotryourservice.UseOrangeShopaspremiumdistributionpoint.,GetRealHungry!,Useglobalpos