minutrade - presentation @ mmf ny june 2008
TRANSCRIPT
Perspectives from BrazilMinutrade Case
Daniel R. Costa
Co-Founder
MobX / Minutrade
Corporate Sponsors
Media & Association Sponsors
Brazilian Economy
Population: 189 million – fifth largest in the world
Brazil: Investment Grade country (Stand and Poor’s and Fitch Ratings)
GDP growth - total 1,551 USD trillion / the eighth in the world / 5.4% growth over
2006 figures
Increase in M&A
Status of external debt (foreign currency credits outweigh foreign debt)
Stable economy (system of inflation targets, primary surpluses of public
accounts, and the floating exchange rate)
Consumer spending boom – growth of 6.5% over 2006, more than the GDP
growth
Class C growth (in the last two years, more than 20 million Brazilians migrated
from classes D and E to Class C)
About Mobile Market
About Mobile Market
Digital TV / Triple / Four play
Number portability
27 million SMS daily, against 28 million connections by Post
3x more mobile phone users than Internet users
1,656 new acquisitions per hour in Brazil
180% increase in web portals
access via mobile (August to December 2007)
About Mobile Market"Brazil and Mexico represent the largest
opportunities in the Latam mobile market"
"'BRIC' countries, will have an estimated 645m new
subscribers – 42% of the world total"
"A recent study of wireless subscribers across the
'BRIC' countries showed that Brazilians are the most
interest in using wireless data services"
BRIC – Brazil, Russia, India and China
Sources: Pyramid Research
Mobile Marketing and Media Market
Mobile Marketing and Media Market
Operator: provides and controls the Environment
Lack of a well-defined policy
Operators: different levels of understanding and priorities
Advertisers: planning to market via mobile phones
Media Market budget in 2007: USD 15.76 billion
Trend: money migrating to new media
Budget for Internet media in 2007 was 2 times as high as in 2006
Budget of billboard media fell 16.33%
Launch of MMA in LATAM, operators, agencies, and advertisers together
for sustainable growth of the market
Minutrade is a solution for the acquisition, management, and
distribution of mobile minutes and messages through
incentive and reward programs.
Every expenditure may generate mobile minutes;
Immediate value/discount perception
Easy opt-in generation; open channel for new relationship
with consumer;
Measurable results
Zero logistic costs compared to traditional loyalty programs
product rewards
Win-win situation for the entire value chain
Own platform, easy to be integrated using few operator
resources
Minutrade
Product Assumptions
Product Assumptions
127 million mobile phones
Low ARPU and large prepaid base
Average minimum salary is approximately USD 290/month
Class C reached more than a quarter of the consumption capacity in the
country (the largest share in the social pyramid)
Mobile spending exceeds 30% of a person’s expenditures (mainly classes C, D,
and youth)
Airline Company and Credit Card loyalty plans offer miles/free tickets….
Value perception of mobile minutes is huge (one prepaid minute can cost over
USD 60 cents!)
Minutrade promotional video
Inserir vídeo
E x a m p le : D r in k a n d W in ! P r o m o t io n
A n o t h e r e x a m p le : M in u t r a d e ’ C a r d ( s in g le a n d c o - b r a n d in g )
A n o t h e r e x a m p le : lo y a lt y p r o g r a m s p r o d u c t r e w a r d s
Rewarding the ENTIRE Value Chain
Consumer – Enhanced consumer experience,
instant and tangible discount perception, “Mobile
inclusion”;
Brand – Brand awareness; new media and
relationship channel;
Publicity Agency/Minutrade – New and
innovativing marketing tool, broker fees;
Operator – New revenue stream (access to
new budget sources, such as credit card
rewards – 2007 budget exceeded 200 MUSD)