1 Telenor MAP, SMART and BrandTracker 2.0 Telenor ASA | Group Industrial Development | Markets | Brands 2013

2 One basic questionnaire with local adaption Values, needs, behavior Brand specific, market and comp. Media and channel usage Telecom usage behavior and buying criteria Socio demographics + Extensive market research CONSUMERBUSINESS What are the important needs and values What are the distribution of the needs/values How do we match the needs and values of our customers A unique value and need framework CONSUMER BUSINESS 20 consumer values Describe the core needs of people 15 Business values Describe the core needs of businesses Telenor MAP - an extensive market research with a unique value framework, within both consumer and business market

3 Fundamental hypothesis of Telenor MAP – the link between customer and brand values BUYFIT The Moment of Truth = Fit between perception and projection CUSTOMER Values, needs Preferences Desires Aspirations PERCEPTION The individual absorbs a brand's promises and projections, tests it (unconsciously) against his/her individual value and need profile BRAND Brand Communication Functional attributes Brand name, symbols Users (peer group) PROJECTION By all marketing activities, esp. communication and design, or by its user peer group a brand addresses a certain set of values and transports a brand promise NOT BUY NO FIT

4 Fundamental hypothesis of Telenor MAP – the link between customer and brand values BUYFIT The Moment of Truth = Fit between perception and projection CUSTOMER Values, needs Preferences Desires Aspirations PERCEPTION The individual absorbs a brand's promises and projections, tests it (unconsciously) against his/her individual value and need profile BRAND Brand Communication Functional attributes Brand name, symbols Users (peer group) PROJECTION By all marketing activities, esp. communication and design, or by its user peer group a brand addresses a certain set of values and transports a brand promise NOT BUY NO FIT

5 The Telenor MAP value framework indicates whether a person, group or brand does or does not stand for a specific value Example “Peter”: 25 years old Male Single Medium income Medium level of education Works full time MAP is the sum of individual Consumer Profiles INTERPRETATION Peter is a very modern, progressive person He finds new, innovative technology very thrilling and demands customized, service-oriented and top- quality products Money is not an issue for Peter – he is ready to spend Classical or ethical values do not matter for Peter – he is open to new things and does not worry about society or the environment RED = Values that Peter disagree with, or that is not important to Peter BLUE = Values that Peter agree with, and that are more important to him

6 The brand profile “comes to life” when we summarize all the brand users – the total customer base Degree of sharing the same values Blank profile No clear common values Customers “all over the place” Brand is purchased by “all” Natural start is to define a clear target segment A very distinct profile The brand or service is purchased by people with distinct and similar needs Weak profileA more distinct profile Completely different strategic challenges

7 Let us “target” the mobile broadband users as handset providers.. These are the customers These are the brands ABCD

8 Let us “target” the mobile broadband users as mobile operators.. These are the customersThese are some of the brands TDC TELMORE TELENOR TELIA 3

9 On an overall level, we have identified five segments The Maximalist

10 MAP identifies the “global” mobile broadband user… Sweden Hungary Thailand Denmark Norway Telenor MAP clearly shows that the mobile broadband users have the similar value and need structure Across markets

11 But, what about the Telenor Brands… Telenor Telenor SwedenDTAC ThailandHappyThailand Telenor HungaryTelenor NorwayTelenor Denmark

12 A brief look at the competitive landscape Sweden TelenorTeliaTele2 Hungary TelenorT-MobileVodafone Denmark TelenorCBBTelmore Norway TelenorNetcomTele2ChessDjuiceTalkmore Thailand HappyOne2CallDTAC

13 Telenor MAP – Experiences so far

14 Experience 1: A clear benefit to have one common approach across markets Going from this… … To this.. … Providing benefits like.. Higher efficiency Higher quality A common language Best practice sharing A defined method Benchmarking

15 Experience 2: The same principle/model across segments The consumer framework … The business framework … Providing benefits like.. Same visual design Same methodology and principle Different content Easy to understand

16 Experience 3: One holistic approach to provide locally relevant segments The unique 360’ approach segmentation … Providing benefits like.. A global approach to create locally relevant segments Same principle, comparable across markets Full transparency in method and approach … Holistic approach to segmenting the market Providing clear and distinct locally relevant segments Holistic approach

17 Experience 4: Segment attractiveness simplify core target selection Segment economical attractiveness … Providing benefits like... A guide to the target group selection Input to business plan development And starts a new set of relevant discussions

18 Experience 5: Telenor MAP is well suited to drive strategic discussions Quote from one CMO: “the most business near insight provided so far” … Market insight Band insight Segmentation Segment attractive- ness Opportunities in market and base Input to strategy Existing insight New insight Refined strategy One of several building blocks..

19 Telecom behavior Marketing mix Segmentation Need/ Behavior MAP Brand KPI Whom to serve What to offer How to deliver Need/ Behavior MAP Brand pillars Customer centric - NPS Must win battles Brand KPI Segment link questions REPORTING Online reporting Data-warehouseSurveysReporting Identify segments to be used for other purposes Anchoring the segments in surveys/datawarehouse INSIGHTSTRATEGYFOLLOW-UP A holistic perspective and measurement system

20 Telenor MAP is developed to provide input to SMART

21 SMART is the Telenor way of translating business strategy and customer insight into effective marketing actions. Direct input Indirect input via segment choice Direct input

22 Mobile phone users and non users Fixed line phone users and non users Mobile data users and non users Fixed line internet users and non users Conversion Dynamics Postpaid usersPrepaid users Mobile users Mobile data/Internet users Mobile data internet users TOPICS INCLUDED Market insight

23 Provider brands of mobile services Provider brands of fixed line services Brand importance and fulfillment Brand KPI’s and key driver analysis Brand KPI’sKey driver analysis Brand positioning/footprint TOPICS INCLUDED Brands insight

24 Segmentation of market Economic relevance of segments Description of all segments Distribution in customer base Brand and market distribution Economic relevanceSegment descriptions TOPICS INCLUDED Segments Insight

25 TOPICS INCLUDED Capabilities to Serve

26 TOPICS INCLUDED Deciding Priority Segments A strategic decision process based on segment insight from MAP, internal assessment of capabilities to serve, projections of financial impacts, historical data – and market knowledge