a brave new world: using anywhere as a competitive differentiator for consumer markets

© Copyright 2008. Yankee Group Research, Inc. All rights reserved. Month and YearTitle of Presentation© Copyright 2008. Yankee Group Research, Inc. All rights reserved. www.yankeegroup.com

The Anywhere Consumer

Joshua Martin

October 2008

© Copyright 2008. Yankee Group Research, Inc. All rights reserved. Month and YearTitle of Presentation

What Is Anywhere?

Our vision for how the emergence of ubiquitous connectivity transforms consumers, enterprises and the world we live in.

Navigating this transformation is Yankee Group’s sole focus.


Connectivity Sparks

• A common network

• Broadband demand

• Wireless ubiquity

These are forming theAnywhere Network


The Global Scope of Anywhere’s Impact

New kinds of consumers

New kinds of connections

New kinds of devices

New ecosystems


Agenda

• The Importance of Anywhere• Anywhere Consumer Segmentation• The Rules of Anywhere• The Evolution of Anywhere• Marketing to the Anywhere Consumer• Conclusions and Recommendations


We Live in a Converged World

Devices to Watch Video On Sources of Content


Methodology

• Source:– Yankee Group Anywhere

Consumer: Penetration and Usage Survey

• Fielded:– April 2008

• Conducted:– Online with phone

supplements• Respondents:

– 4,000+• Segments:

– Created through SPSS Cluster Analysis


The Road to Anywhere


The Segments

An Overview• Actualized Anywheres are the

most Anywhere.

• Outlet Jockeys are Anywhere on the go, but not at home.

• Digital Shut-ins are somewhere at home.

• Technophytes are later adopters driven by price cuts.

• Analogs are uninterested in technology and will grudgingly be pulled along—eventually.


Meet the Segments


Anywhere’s Real World Impact


A Day in the Life…

Actualized Anywhere Analog

7:00




7:00

8:30




7:00

8:30

10:00




12:00




12:00

3:00




12:00

3:00

5:00




6:30




6:30

8:30


Why the Segments Matter

Technophytes tend to adopt technology 3 to 4 years after the early adopters.

Analogs present a long-term solution for aging subsidized pay-TV technology.

Digital Shut-ins are poised to increase their at-home ARPU by subscribing to advanced services.

Actualized Anywheresare the highest ARPU subscribers but are also the least loyal.

The segmentation provides an opportunity to determine the perfect gift for each segment.


The Future of the Segments

Actualized Anywheres

Outlet Jockeys

Digital Shut-ins

Technophytes Analogs

WiMAX/LTE Bring Anywhere home

Lower smart phone prices

Make them thought leaders

Subsidize, subsidize, subsidize

Embedded connectivity in CE

Better bundles

Lifestyle enhancements

Price cuts Let them disperse


Device Ownership by Segment

AA: 60%OJ: 45% DSI: 35% Tech: 18% Analog: 7%



Own BuyAA: 82% 5%OJ: 95% 4%DSI: 75% 6%Tech: 45% 8%Analog: 18% 4%



AA: 92%OJ: 89%DSI: 83%Tech: 82%Analog: 48%



AA: 67%OJ: 48%DSI: 51%Tech: 33%Analog: 24%


Intention to Buy by Segment



AA: 5.0% OJ: 1.5%DSI: 0.5%Tech: 2.2%Analog: 0.8%



AA: 7.3% OJ: 1.0% DSI: 0.2% Tech: 0.3% Analog: 0.1%



AA: 8% OJ: 5% DSI: 4% Tech: 4% Analog: 1%


Identifying, Understanding and Selling Anywhere


Getting the Message Right


Outlet Jockeys

Digital Shut-ins


You can’t buy a paperback when you’re sitting on a bus

Fit hundreds of paperbacks in your backpack

Bring your entire library anywhere

The newest way to read books and newspapers

No need to clutter up your house with many books!


Getting the Message Right


Outlet Jockeys

Digital Shut-ins


You can’t buy a paperback when you’re sitting on a bus

Fit hundreds of paperbacks in your backpack

Bring your entire library anywhere

The newest way to read books and newspapers

No need to clutter up your house with many books!

For your many devices

To replicate the portable experience at home

For the ultimate at-home convenience

Your new laptop is useless without it

Use your laptop anywhere


Ye Rules of Anywhere Consumers

1. Anywhere Consumers carry several intelligent connectable devices.

2. Anywhere Consumers use broadband wherever they go, through a variety of means.

3. Anywhere Consumers use technology to get their entertainment wherever they are.

4. Anywhere Consumers define community for themselves, regardless of geography, and they join communities.

5. Anywhere Consumers choose technology based on task scenario, not the subscriptions they happen to have.

The Five Commandments


Ye Rules of Anywhere Consumers

1. Anywhere Consumers carry several intelligent connectable devices.

2. Anywhere Consumers use broadband wherever they go, through a variety of means.

3. Anywhere Consumers use technology to get their entertainment wherever they are.

4. Anywhere Consumers define community for themselves, regardless of geography, and they join communities.

5. Anywhere Consumers choose technology based on task scenario, not the subscriptions they happen to have.

The Five Commandments

6. Anywhere Consumers are Anywhere, even at home.

7. Anywhere Consumers use their devices to the fullest.

8. Anywhere Consumers pay to play.

9. Anywhere Consumers value Anywhereness.

Now Four More


Recommendations

• CE Manufacturers– Start embedding connectivity into devices– Expand the ecosystem beyond or into the home– Offer a unified experience

• Carriers– Open up networks– Make connectivity easy

• Content Owners– Put Content onto all devices– Loosen restrictions on content


Q&A


Thank You

Joshua Martin Vice PresidentSenior Analyst [email protected]

For schedules, please visit our web site:

www.yankeegroup.com

Come and visit us at one of our upcoming events or tune in to one of our free webinars.

a brave new world: using anywhere as a competitive differentiator for consumer markets

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