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‘Wired’
Mobile Phone
Buyer
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Contents
Introduction ........................................................................................... 2
Executive Summary ................................................................................. 4

THE ‘CONNECTED’ INDIAN MOBILE PHONE USER .................................... 6

Substantial Mobile Phone Usage among Online Indians........................... 7
Internet is a Predominant Medium in Online Mobile Users’ Daily Lives ..... 10

PURCHASE INTENT AMONG ONLINE MOBILE OWNERS .......................... 13

Purchase Intent is Strong Despite High Level of Ownership ...................... 14
Replacement Demand Drives High Purchase Intent .................................. 15

DRIVING PURCHASE DECISIONS FROM THE LIVING ROOM ...................... 16

Internet is Most Reliable Medium to Research Information....................... 17
Perception of Internet among Online Mobile Intenders ............................ 19
Search Engines and Consumer Review Sites Enable In-Depth Research
for Online Mobile Phone Intenders .......................................................... 20
Rationale for Preference of Online Channels for Mobile Related Research . 22

LEVERAGING ONLINE INFLUENCERS FOR GREATER BRAND VALUE ........... 23

Online Significant in Influencing BrandPreferences and Consideration...... 24
Consumer Review Sites are an Important Tool for Information Exchange.. 25
Potential to Create Positive Brand Impact through the Net is Immense ..... 26

IN CONCLUSION: SEIZING THE OPPORTUNITY ........................................ 28

Final Takeaways for Mobile Phone Marketers ........................................... 29

Methodology .......................................................................................... 32

About the Authors.................................................................................. 33

Note: The term ‘Intender’ denotes respondents who are online mobile
phone owners and intend to purchase a mobile phone
 Introduction
The Indian telecom sector has reached a watershed moment with the
world's second largest mobile network (over 635 million wireless
subscribers) and telecom subscriber base (671 million connections, growing
each month with 16 million subscribers)1. Boasting of the lowest tariffs and
cell phone rates in the world coupled with the recent launch of third
generation mobile services (3G) across 9 Indian states, this sector plays a
pivotal role in the world's fastest growing Information and Communications
Technology (ICT) market. With its contribution of 1.5% to India's GDP2 and
the massive interest evinced by international players in the Indian telecom
market, the high growth trajectory of this sector is an important milestone
in the socio-economic development of India.
From the time when India's first mobile phone was launched for Rs 40,000
approximately, and an outgoing call would cost a hefty Rs. 16-17 per
minute, the rise and evolution of India’s telecom and mobile phone sector
has been exponential. Privatization, technological innovations, rise in
disposable incomes and pro-industry policies undertaken by the
government have put the sector on the superhighway of growth. At the
same time, cut throat competition amongst an increasing number of
players has given birth to price wars resulting in aggressive slashing of call
rates and advent of per second billing. In a fiercely cluttered and
competitive market where the Indian consumer is spoilt for choice amongst
mobile handsets and network service providers, generating visibility,
catering to consumer preferences and creating top-of-mind recall have
become formidable and eminent challenges for marketers.
In such a scenario, rather than counting on traditional, one-way mediums
of communication to influence existing and prospective consumers, a
different approach towards cutting through the clutter and leveraging
influencers with breakthrough innovation summon immediate attention.
Indian consumers curate information from multiple sources which is
typically product-related research and the internet has emerged as a
prominent resource. In an industry where technological innovation is rapid,
the need to provide accurate and timely information about the latest
1
2 Department of Telecom (DoT)
2
Minister of State (Communication & Information Technology), Shri Gurudas Kamat
handset/plan becomes crucial for consumers to choose one brand over
another. The internet, with its innate ability to provide access to a reservoir
of information in various forms, is becoming the preferred choice for
consumers using social platforms to compare, cull and voice their opinion
to influence each other while sourcing relevant information.
Evidently, while some mobile and telecom players have started taking note
of the untapped potential of the medium and are investing their marketing
efforts online, the scale and depth of these measures remain limited to a
great extent. Brands that haven't looked beyond traditional media are losing
out on potential access to 50 million Indians online and the opportunity to
expand existing/acquire new consumer base. The online consumer base in
India is a discerning lot which has significant experience in usage of this
medium. Their consumption of media and information is more active than
passive and most of them already own a mobile phone and intend to
purchase another one soon. Mobile and telecom marketers have the
opportunity to harness the power of this group to convert them as self-
serving evangelists through tactical and meaningful brand engagement.
Inside the Mind of the 'Wired' Mobile Phone Buyer takes a close look at the
growing influence of Internet in driving purchase intention/decisions among
online mobile users in India, while mapping their preference, attitude and
usage of the medium. It equips mobile phone marketers with deep insights
to existing and prospective consumers' online behaviour, which will guide
and help them determine the way forward in adopting the digital medium
at the core of their future branding/marketing efforts.
3
 Executive Summary
It remains a fact that mobile has emerged as an effective interactive Our report highlights the growing impact of the internet with a whopping
avenue blurring socio-economic and geographical boundaries across the 89% online mobile intenders relying on this medium as the primary source
urban-rural chasm as more than 50% of India's population are mobile of information for mobile-related research. Brand/company websites,
subscribers3. While access to smart phones may not have taken the country search engines and consumer review websites are popular avenues to
by a storm, access to basic and upgraded models of handsets is a reality conduct this research. 71% indicate they have shared mobile related
before us. Affordability of telecom products and services in India are experiences online and 63% admit to have been influenced by such online
reasons for their widespread prevalence and ownership amongst upper reviews, opinions and experiences.
echelons of society as well as middle classes and now to a large extent
Added to this, out of all online mobile owners, 80% intend to purchase
amongst lower socio-economic classes too.
another mobile phone. What does this mean for a mobile phone marketer
looking to consolidate and expand its user base in a fiercely competitive
Year On Year Increase in Wireless Subscriber Base and cluttered market? Based on survey results, it is abundantly clear that
(Urban & Rural) (in Millions) there exists a strong prospective customer base online which is
opinionated, does not hesitate to share positive or negative experience
among online peers freely and is an extremely critical resource for mobile
Year Subscriber Base phone marketers to help reach and influence target audiences effectively.
Mar-07 165 The onus of engaging this discerning customer base online lies with
Mar-08 261 marketers who need to create immersive and customized experiences that
are appealing and help promote positive buzz and brand image. Websites
Mar-09 392 and display ads are just the first step in achieving this end, and it is time
Mar-10 584* for marketers to expand the scope of their digital marketing strategies to
grab attention and a larger market share.
Apr-10 601*

Source: IAMAI *Figures do not include Rural Wireless Base

Online mobile users are young with maximum in the 19-35 years age
group*, prosperous and possess disposable income as well as desire to
purchase newer and more number of mobile handsets. In a market like
mobile phones, where clutter exists in terms of competition as well as
marketing strategies, new media emerges as a relatively clutter-free and
engaging choice for the marketers to interact with customers and
gather visibility.

3
4 IAMAI 5
*Refer Methodology
 Substantial Mobile Phone Usage
among Online Indians
There are a whopping 47.5million online mobile phone owners in India
today. While the overall national-level penetration of mobile phones in

The ‘Connected’ India is at 26.5%, the relative penetration of mobile phones amongst
online Indians is at 95% indicating that this group is highly mobile phone

Indian Mobile savvy. Accessing internet through mobile phones is increasingly on the rise
and a vast variety of online activities are being pursued through it.

Phone User
Penetration of mobile 95%
phones amongst online Indians

Penetration of mobile phones

amongst Indians 26%

Source: Juxt Consult India Online Report 2010

81% online mobile users own a GSM phone and a whopping 98% use
prepaid connection over a postpaid one. With Mobile Number Portability in
the offing, the cost of switching from one telecom service provider to
another would be completely eliminated allowing users to hop freely among
competitors while retaining the same number. This will intensify the war
among mobile and telecom service providers to retain their current consumer
base apart from increasing it further, and the need to create stronger recall
value, increase brand consideration and maintain differentiation could
become a formidable challenge in this saturated category.

7
 Entertainment in the form of social networking features as a significant
Type of Connection Type of Mobile Phone activity pursued online through mobile phones. The launch of iPhone and a
used amongst used amongst deluge of other technology intensive smart phones has given birth to a vast
Online Mobile Users Online Mobile Users variety of applications that provide users' information and entertainment to
Postpaid 2%
keep them hooked and engaged. It is safe to say that online mobile users in
CDMA India is a matured, discerning group which is exceptionally aware and
19% conscious of trends in the mobile segment.

98% Prepaid Online Mobile Phone Users’ Frequency of

81% GSM
98% Pursuing Various Activities on their Phones
Daily 4-5 times/week 2-3 times/week Fortnightly/Monthly
Source: Juxt India Online & India Mobile 2010 Report

Most online Indians use their mobile phones as a 'communication' as well as Watching videos 33% 23% 21% 23%
an 'entertainment' device, and 1 in 4 online Indians access the internet
Downloading music 25% 23% 24% 29%
through their mobile phone.4 'WAP enabled' data services and 'GPRS activated'
direct browsing are the most popular mode of mobile internet usage.
Gaming 38% 21% 18% 23%
While 77% online mobile users access internet through their mobile phone Search for information
for emailing, 60% use it for social networking and 54% for chatting. 45% 23% 17% 15%
(products/services)
Increasing mobility of online Indians and enabling technologies such as smart
Social Networking 52% 19% 17% 11%
phones with internet access helps them stay connected while on the move.
Chat 56% 17% 15% 11%

Activities Pursued through Mobile Internet Email 65% 13% 12% 10%
among Online Mobile Users
77% Source: Webchutney Digital Mobile & Telecom Survey 2010
60% 54% 53%
53% 48% 48%

For mobile phone marketers, mere online presence cannot push sales or
4% ensure an entry into consumers' consideration set, typically when both
features and services are easily replicated by competing forces. A conscious
Email

Social
Networking

Gaming

Watching
Videos

Others
Chat

Downloading
Music
Search for
Information

and sustained effort to engage consumers using the interactive medium

can go a long way in informing and influencing online audiences about the
presence, service offerings and efficacy of a brand.

Source: Webchutney Digital Mobile & Telecom Survey 2010

8 9
4
Juxt Consult India Online and India Mobile Reports 2010
 Internet is a Predominant Medium
Frequency of Internet Access amongst
in Online Mobile Users' Daily Lives Online Mobile Users

The number of online mobile users spending 2 hours or more on the net on Once in more than a month 1%
a weekday is almost double the number of those watching television for a 1-3 times a month 1%
similar duration. Maximum online mobile users spend time on the net in
comparison to other traditional media forms like radio, magazines and Once a week 3%
newspapers which trail far behind. Heavy internet usage can be attributed Once in 2-3 days 7%
to the possibility of engaging in a vast variety of activities and unlimited Once daily 30%
interaction across demographies that can be pursued online.
2-5 times a day 31%
Over 5 times a day 26%

Comparative Usage of
Source: Juxt India Online & India Mobile 2010 Report
Traditional Media Vs Internet* (Weekdays)
*Data indicates media usage of 2 hours of more
72% online mobile users have been using the internet for more than 2
years. This indicates maturity and valuable experience in the use of the
51%
medium specifically with respect to ease in searching/looking for
26% information online conveniently.
15%
7% 4%
Experience in Internet Usage of Online Mobile Users
Internet TV Radio Magazine Newspaper

Up to 2 years
Source: Juxt India Online & India Mobile 2010 Report More than
5 years 28%
47%
87% online mobile users access the internet at least once daily while
immersing themselves in a variety of online activities. This frequency is
indicative of how internet forms an integral part of this group’s lives and 25%
explains their consequent reliance on it.
2-5 years

Source: Juxt India Online & India Mobile 2010 Report

10 11
 With a large number of online mobile intenders logging onto search
engines and social networking websites for more than an hour daily, it is a
clear reflection of their online habits, behaviour and preferences. Online
mobile intenders are on a constant lookout for information and with rapid
PURCHASE
launch of newer models of mobile phones, the search for information,
particularly comparison of desired features and models becomes important.
INTENT AMONG
ONLINE MOBILE
Usage of Online Channels among
Online Mobile Intenders OWNERS &
Upto 1 hour daily
Around 2-3 times a week
More than 1 hour daily
Once a week
INTENDERS
Once a month or as and when required

n t a m o n g
e I n t e
Purchas obile Owners
7% 6%
2%
6% 11%
41% 36%
39%
20%

Online M
45%
19% 19%
34% 19%

18% 20% 21%

32% 8% 9% 12% 37%

14% 13% 12%

Social Consumer Company/ Online Search
Networking Review Brand Communities/ Engines
Sites Websites Websites Blogs

Source: Webchutney Digital Mobile & Telecom Survey 2010

In a cluttered market like telecom, new media such as the internet emerges
r c h
as a relatively clutter-free choice for the marketers to interact with
customers and gain enhanced visibility. The medium offers inimitable
avenues for interactive, personal and measurable engagement with relevant
audiences, unlike any other media.
S ea
12 13
 Purchase Intent is Strong Despite Replacement Demand Drives
High Level of Ownership High Purchase Intent
According to Gartner, an estimated 117 million mobile phones were Among online mobile phone owners, a vast majority have owned their device
sold in 2009-10 in India while the expected figure for 2010-11 is 138.6 for a year or more. We also observe 77% online mobile intenders expressing
million. With low cost mobile brands competing with market leaders by desire to purchase a new phone within a short span of just 6 months.
providing perceived high-end features for less, the demand for mobile
One of the major reasons for high repeat/replacement demand could be
phones has increased exponentially across rural and urban India.
attributed to the growing tide of low-cost mobile phones, enhanced product
At the same time, the trend of owning multiple mobile phones is categories, entry and appeal of smartphones and transition from traditional
catching up fast in India which could be linked with the growing desire handsets to new-age devices like PDAs, touchscreen and QWERTY mobiles.
to keep official and personal communication separate. Our survey These have become major factors in influencing a discerning online mobile
indicates 80% of online mobile phone owners intend to purchase a cell phone user to trade-up their old handsets for new ones.
phone. Rise in disposable income as well as monthly household
An attractive opportunity exists for mobile phone marketers to tap this
incomes, along with the influx of devices to suit every pocket in the 15
segment online through unique engagement while adding brand value and
years of existence of this market could be a reason for such high
increasing brand consideration.
repeat/re-purchase demand. For many Indians, mobile is the 'first
screen' they are exposed to, even before television or internet.
Duration of Mobile Phone Ownership
30%
23% 20%
Purchase Intention Monthly Household Income of 14% 14%
of Online Mobile Users Online Mobile Users
Owner
Less than 6 months 6-12 months 1 year More than
Non-Intender 34% 3 months back back back back 1 year back
25%
22%
20%
11%
Time period within which Mobile
5% 2% 2% Phone Purchase is Intended
80% 46%
Less than Rs 6250

Rs.6250 - Rs 12500

Rs 12500 - Rs 25000

Rs 25000 - Rs 40000

Rs 40000 - Rs 80000

Rs 80000 - Rs 100,000

More than 100,000

31%
Current Owner
plus Intender 10% 7% 6%

Within 3 3-6 6-9 9-12 After 1

months months months months year
14 15
Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 2028) Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626)
 Internet is Most Reliable Medium
to Research Information
Survey results indicate a whopping 89% mobile intenders online vouch
Driving Purchase for internet as the most reliable medium to look for information on

Driving Purchase mobile phones. The shift from dealers and mobile phone showrooms as
the conventionally trusted source of information is evident with only 53%
Decisions From indicating preference for information through this source.
Decisions From Owing to the vast variety in mobile phone models and features, coupled
The Living Room with rapid technological upgradations, mobile phones fall high in the

The Living Room involvement product category, necessitating considerable time and
energy spent in researching about them to make a final decision.
Another aspect for consideration is the fact that today discussions and
conversations that used to take place offline have started taking place
over the net, typically with the rise of social networking sites and other
platforms enabling exchange of news, views and reviews, including those
on mobile phones.

Preferred Source of Information for Mobile Phone

Related Research among Online Intenders
89%

62%
55% 53%
38%
20%
13%
2%
Internet Friends Newspaper/ Dealer/ TV Ad hoardings Radio Other
& Family Magazine Mobile on road
Phone sides/bus
showroom stop

Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626) 17
 With 53% preference, clearly the role of mobile phone dealers in
influencing consumers' purchase decisions has diminished, more so as the
zeroing in on the mobile handset brand and model today takes place
much before a consumer enters the dealer's place. Rise in preference
towards internet as a mode of research indicates evolution of empowered
consumers, who are more in control of pre-purchase research, thereby
making informed purchase decisions for themselves.
Online mobile users’ preference towards internet over traditional media
could be attributed to the vast engagement opportunities provided by the
medium. Also, internet scores over other media in terms of variety of
forms and topics on which information can be sourced, accessed and
hunted from the comfort of one's home. Its interactive nature helps draw
responses from people, making them an integral part of brand's
communication and campaign.
18
Perception of Internet among
Online Mobile Intenders
There is a strong link between online mobile intenders' preference for
internet as an information source and inherent characteristics of the
medium making it popular. 82% mobile intenders believe internet helps
them get a better idea about all the mobile handsets/service providers
in the market, while 71% are of the opinion that it entails access to
updated information, which is critical for this category.
Scope for in-depth research (50%), third party view (47%) and easy and
convenient access to information (46%) are other reasons in favor of
this medium.
Owner Intenders' Reasons for
Preference Towards the Internet
Helps give an idea about the cell phone
models/service providers in the market 82%
Access to updated information on new technology/
features/services for mobile handset/service plan 71%
Provides scope for in-depth research 50%
Offers a third party view as well 47%
It is easy to access and convenient to use 46%
Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626)
19
 Search Engines and Consumer Attribute wise Preference for Online Channels to
Conduct Research for Mobile Phones
Review Sites Enable In-Depth Social Networking Sites Consumer Review Websites
Online Communities/Blogs
Company Websites
Search Engine
Research for Online Mobile Internet Access 16% 18% 26% 8% 33%

Phone Intenders Price 8% 27% 30% 9% 26%

Brand Name 11% 20% 40% 6% 23%

A substantial number of online mobile phone intenders look for mobile- Design/Looks 10% 18% 49% 5% 18%
phone related information on brand/company websites. Information on
price, credibility of the brand, design or visual appeal of the device Features 15% 23% 33% 8% 22%

preferred/intended for purchase, along with a careful scrutiny of various Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626)
features packed in the device, are often searched for on mobile
brand/company websites. Similar preference for various online channels is observed among online
mobile intenders searching for network service provider related information.
Consumer review websites follow as the next most preferred source of While most prefer to search company websites to determine the best
information online. These offer independent, third party views, opinions, telecom operator suitable to their needs, they actively look for information
experiences shared by existing/prospective mobile users and include facility related to call rates/tariffs, discounts/schemes, value added services and
to compare various aspects of mobile phones. overall opinion and experiences about network connectivity on review
At the same time, search engines emerge as online mobile intenders' websites too.
easiest tool to access to information and compare various brands, Being the first and most easily accessible information source before
features, price and other factors critical for evaluating consideration for a consumers, it is imperative for mobile brands to register a noteworthy
particular brand. presence online and create engaging experiences for consumers looking for
For mobile phone marketers, this becomes a unique opportunity to mobile phone related information.
increase visibility through search engine optimization/marketing tactics
and make their presence felt among prospective consumers where they Attribute wise Preference for Online Channels
most flock to in search of relevant information to determine their choice to Conduct Research for Network Service Providers
of brand. Social Networking Website Consumer Review Website Company Websites
Online Communities/Blogs Search Engine
Services provided online
by network service provider 12% 27% 43% 7% 22%

Network connectivity 13% 23% 34% 11% 19%

VAS 10% 14% 53% 6% 18%

Cost/quality of internet access 12% 30% 31% 8% 19%

Call rates/discount offers/schemes 14% 19% 47% 5% 16%

20 21
Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626)
 Rationale for Preference
of Online Channels for Mobile
Related Research
A majority of online mobile users employ the medium to cater to their
information needs. The online domain is teeming with information from
various kinds of sources with users actively contributing to and sharing
mobile related content and experiences in usage. Leveraging Online
With a majority of online mobile users/intenders trusting social networking
websites for gathering views and feedback from their peers and social Influencers For
circle for mobile phones, these emerge as viable substitute to the
traditionally popular word of mouth publicity. Consumer review websites
emerge as a one-stop-shop for information on mobile phones; including
Greater Brand Value
experts' comments and platform for feedback.
Our survey indicates various reasons for preference for one online channel
over another as a valuable source of information, among which the ability
to conduct cross-product comparisons, opportunity to share feedback and
provision of genuine/authentic information are predominant.

Preference for Characteristics of Online Platforms

Social Networking Website Consumer Review Website

Company Websites Online Communities/Blogs
Helps gather views/opinions/
39% 26% 17% 19%
feedback from friends & relatives
Offers scope to compare
prices/features/utility 15% 36% 31% 18%

Provides space for

19% 36% 24% 22%
experts’/users’ comments
Serves as a platform
19% 41% 25% 15%
to give feedback
Helps gather relevant and
24% 32% 31% 13%
genuine information

22
Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626)
 Online Significant in Influencing Consumer Review Sites are
Brand Preferences and Consideration an Important Tool for
Survey results highlight 63% mobile phone intenders admit to being
Information Exchange
influenced by mobile related information accessed online in the form of
reviews, posts, recommendations, videos, audios etc. At the same time, With mobile related conversations gaining momentum online, the
71% mobile owners online indicated that they share experiences about need for mobile phone brands to monitor these conversations, map
mobile phones and service providers on the net. This suggests that online the source of their origin and place of sharing, and make
channels are not just a source for 'curating' relevant mobile related themselves strategically visible in these domains is more than ever.
information, but also help 'influence' mobile users' attitude and
Survey results indicate 50% preference for consumer review
preferences for various products, and brands. Considering mobile phones
websites and 47% preference for social platforms for sharing
are high involvement products, this is not too surprising as every single
mobile related experiences.
opinion shared leads to a deluge of useful insights and experiences posted
by many others.

Online Mobile Intenders Influenced

by Mobile Phone Related Views Online

Yes
Online Mobile Intenders' Preferred Medium
37% 63% to Share Information on the Internet
No
50% 47%
39%
34%

1%
Online Mobile Intenders sharing
Mobile/Telecom Related Experiences Online Consumer Social Online Company Other
Review Networks/ Communities/ Website
Website Platforms Blogs

29% Yes

71% No

Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1154)

24 Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1626) 25
 Potential to Create Positive Brand
Impact through the Net is Immense
81% online mobile intenders admitted to discussing the price of mobile Experiences Shared on the Net by
handset, while 67% exchanged information on features of various mobile Online Mobile Intenders about Mobile Attributes
phones online.
Online platforms and forums facilitate a ripple effect around conversations,
inviting more opinions, thoughts and insights on them. Largely, experiences
shared online about mobile phones are positive (62%), showing vast Price of handset 81%
possibilities for marketers to become more active online and get consumer-
generated publicity for themselves, thus influencing and building a positive Features 67%
brand image. Mobile phone accessories 57%

Call rates/discount offers/SMS plans 53%

Type of Experience Shared by Brand Name 52%
Online Mobile Intenders
Network connectivity 49%

Value Added Services (VAS) 38%

Positive
34% 62% Design/looks of phone 33%
Neutral
Negative Access to internet 27%
5%

Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1154) Source: Webchutney Digital Mobile & Telecom Survey 2010 (Base: 1154)

Sharing positive experiences could in some ways be attributed to the 'pride

of ownership' of a certain mobile phone brand and model. Considering
mobile phones are associated with 'status symbol' for many, it is time for
marketers to revise their traditional approach and formulae towards brand-
building and embrace the online medium whole-heartedly in creating
compelling hooks for existing/prospective consumers.

26 27
 Final Takeaways for
Mobile Phone Marketers
With success stories and positive predictions for India's mobile phone sector
afloat, it is substantially clear that the future of the category will no longer
be in providing mere communication through the device alone, but would
become a part of the overall bouquet of services that will be offered,
particularly with the launch of 3G services in India.
Mobile handset players need to pay immediate attention to the mobile user
online today, who is more aware, conscious and thoughtful about making a
handset purchase. QWERTY keyboards, voice recognition tools, highest
megapixel cameras fitted in Android/Symbian enabled systems- are all
becoming least common denominators provided by all handset makers.
Consequently, the battle to differentiate between handset brands would no
longer be fought on grounds of feature differentiation, but on basis of media
used to strike a chord with consumers looking forward to mobile purchase.
While next-generation-ready mobile phones armed with latest features and
specifications are becoming a part of the product offering of all
manufacturers, like telecom service providers, handset manufacturers must
also realize that embracing the internet and creatively using the interactive
medium to fortify meaningful relationships with consumers online is the
In Conclusion: way forward. In conclusion, we highlight the following observations to help
marketers gear up to this challenge:

Seizing High Penetration of Mobile Phones amongst

The Opportunity Online Indians and Increasing
With an addition of 16 million mobile subscribers monthly, the phenomenal
growth rate of Indian telecom sector including mobile phones is unknown
to none. Mobile penetration is 26% in a billion strong population and a
breakthrough 95% amongst online Indians. 50% of India’s population is
below 30 years of age and raring to go, with rocketing multi tasking
abilities and a constant need and desire to stay connected with their
friends, family and peers. Mobile phones are ‘enablers’ that help this group
achieve their goals, thanks to their ability to let them stay ‘mobile’.
29
 Internet has become the Primary Resource for mobile phones across a vast spectrum of platforms including consumer
Research on Mobile Phones review websites, social networking websites, blogs and company websites.
Marketers must match pace with their fast-moving ‘elusive’ online
On one hand India has a 50 million strong online population actively
audiences who are hunting and contributing to gadget/mobile phone
looking, securing, browsing and hunting for information over the medium.
reviews across various online destinations before they completely disengage
On the other, it has more wireless devices than all televisions and
themselves from mobile brands.
computers put together, of which mobile phones form a major chunk.
Both segments are growing at a phenomenal pace, which must now be
channelized in the right direction through collaboration. Handset
marketers must realize that unlike TV and other traditional media, the
internet enables contextual targeting and provides access to third party
views and opinions, clearly supplementing any marketing strategy. With
89% mobile phone intenders referring to internet as their preferred source
for researching about mobile phones, it is evident that the stronghold of
The future of the device is headed in a direction that calls
friends and family, mobile phone dealers and newspapers/magazines is
for a change in the way it has been marketed so far. The
gradually diminishing over the more demanding and more exacting,
choice is clearly between banking on harnessing
‘connected’ Indian mobile phone intender.
traditional methods to reach target audiences, or scale
for promotion and contextually use the interactive
High Replacement Demand for Mobile Phones medium to target audiences who are willing, capable of
making informed decisions and more significantly
among Online Indians harbor strong intent to purchase. It is now simply do-or-
The demand for mobile phones amongst current online mobile owners die for mobile phone marketers to embrace digital at the
remains robust with an astonishing 8 out of 10 current owners expressing core of their marketing strategies.
desire to purchase another mobile phone and 77% wishing to purchase it
within next 6 months. These numbers bear testimony to the opportunity
before handset marketers, to evangelize the medium and tap potential
audiences. The time is ripe to attract, invite and engage audiences online
by providing them compelling experiences.

Harnessing the Power of Social Media to Increase

Brand Value and Consideration is Important
63% mobile phone intenders online admit being influenced by mobile
phone related reviews posted online and 71% share mobile phone related
experiences on the net. 30-second spots with a tagline do not entice online
consumers as much as immersive experiences customized to suit their
interests. Consumers have become active contributors to media online, and
30 share information around price, features, accessories, brand names of 31
 Methodology
The primary purpose of this study was to understand and analyze the
current usage patterns and attitude of an average customer towards the
online medium, and its impact on mobile phone marketers' perception and
usage of the medium to influence purchase decisions.
To this effect, a sample of 2028 respondents was taken from a panel of
consumers belonging to different demographics- age groups, socio-
economic classes, locations etc. Primary data was collected by means of a
questionnaire. The consumer panel was further classified into current and
prospective consumer mobile phone owners and intenders and their
attitude towards the use of internet was mapped. The period of the study
was August to October 2010.
Furthermore, credible secondary data sources were used to compile all facts
and figures used in the study.
About the Authors
Sidharth Rao
Sidharth Rao is the Chief Executive Officer and
Co-Founder of Webchutney, India’s leading and
most awarded web services company.
With over 12 years of industry experience,
Sidharth has made a significant contribution in
shaping the interactive marketing industry in
India. Sidharth leads the 150 people strong
organization assisted by an excellent management team across New
Delhi, Mumbai and Bangalore.
He can be reached at sidharth.rao@webchutney.net

Gender-wise Break up of Age Distribution of

Telecom Users Online Telecom Users Online
Shweta Bhandari
Female 3%
7% 26% Shweta Bhandari leads the research team at
13-18 Yrs
Webchutney, which publishes thought provoking
25% 19-24 Yrs reports on the state of online in India.
17% 25-35 Yrs
26% She carries a diverse business profile including
36-45 Yrs blue-chip companies like American Express and GE.
75% At Webchutney, she has contributed in writing
37% 46-55 Yrs
several research publications such as The Digital Vote Bank, Viral
Above 45 Yrs
Marketing and more recently the Digital Media Outlook 2009. Her
Male passion for discovery and thirst to engage in new challenges lend
immense scope and dimension to this field.
Base: 2028 Base: 2028 She can be reached at shweta.bhandari@webchutney.net

32 33
 Ankita Kapoor
Ankita Kapoor is a Research Analyst at
Webchutney.
She has completed her MBA in Marketing from
ICFAI Business School, Hyderabad. Prior to this, she
graduated in Journalism from Lady Shri Ram
College, Delhi University. She has interned with
'HPCL-Mittal Energy' (HMEL) and 'Business Standard' during her post
graduation and graduation respectively. Her strong analytical and
communication skills and deep interest in the field have lent new
perspectives to the report.
She can be reached at ankita.kapoor@webchutney.net

A special thanks to Sushil Kumar for conceptualising

and executing the report design.

34