Understanding the

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Understanding the Super Consumers in Central
Eastern Europe Polly Carter, KMR Group
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Agenda

• Background
• Context and the CEE Super Consumers
• The research solution
• TGI Regional Socio-Economic Levels
• Getting to know the Super Consumers
• T-Mobile case study
• Summary

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Background
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A huge opportunity!

• Over 300 million people
• Increased purchasing power
• Changing consumption habits
• EU accession

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What does this mean?
Source TGI
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Many citizens are fulfilling dramatically
expanded roles as consumers This is who we
mean when we talk about the Super Consumers
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Why target the Super Consumers?

• Theres nothing new about companies wanting to
  target
• heavy spenders with their products and services
• Engage with the big spenders
• Establish your brand
• Understand national and regional trends

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Ownership of DVD players amongst Super Consumers
The opportunitieshere
Source TGI
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Defining the Super Consumers

• TGI Regional Socio-Economic Levels (SEL)

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Background to TGI Regional SEL

• Marketers in many countries rely on social grade
  classifications
• but
• Most systems are conceived differently
• Education
• Occupation
• Income
• Occupational sector
• Household durables
• Growing requirement for harmonised approach to
  aid international marketers

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Background to TGI Regional SEL

• TGI Regional SEL has been developed
• to offer a classification scheme that links
• together 11 CEE markets, but can also
• work alongside existing national
• social grading systems

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The markets

• Bulgaria Russia
• Croatia Serbia
• Czech Republic Slovak Republic
• Hungary Slovenia
• Poland Ukraine
• Romania

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How is TGI Regional SEL derived?

• Based on the individual there is no assumed
  status from the Head of Household
• Points-scoring system based on educational
  achievement and selected consumer durables

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The data source TGI
Demographics
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How is TGI Regional SEL derived?

• The 13 items and their points values
• University Degree (Bachelors ) 17
• Car in household 17
• Personal Computer at home 10
• Dishwasher 8
• Washing Machine 7
• Video Cassette Recorder (VCR) 6
• Video Camera/Camcorder 6
• Mobile phone owner 6
• Internet user 5
• Credit Card holder 5
• Air Travel in the last 12 months 5
• Compact Disc (CD) Player 4
• Satellite/Cable/Digital TV 4

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How is TGI Regional SEL derived?

• Socio-economic stratification is applied within
  countries not across them
• Levels of durables penetration vary but in all
  countries individuals with greater socio-economic
  power record the most points
• Higher-level groups are by definition Super
  Consumers consequently well worth targeting
  based on their consumer behaviour too!

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The Groups

• The population is divided into four levels
• Reflects relative status of individuals within
  their own society
• Provides marketers with a practical analysis tool

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Variations by country
Source TGI
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How well does SEL correlate with national
classification systems?
Source TGI Czech Republic
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Why use a regional socio-economic classification
system?
Whilst income provides a measure of spending
power, it does not account for social
influences For example
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Why use a regional socio-economic classification
system?
Serbia Personal Monthly ownership Income
24,000 din. Digital camera 13 Coffee
machine 18 MP3 player 17 Camera
phone 17
SEL Group 1(Top 10)23 25 27 19
Source TGI Serbia
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Getting to know the Super Consumers

• T-Mobile case study

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Case Study T-Mobile

• T-Mobile is the market leader for mobile
  communications in Central Eastern Europe
• The marketing function is managed centrally, but
  T-Mobile still needs to understand the
  differences between individual markets and
  cultures
• The CEE Super Consumer has been identified as a
  key target for T-Mobile, but will a pan-regional
  campaign work?

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Case Study T-Mobile

• We profiled the Super Consumers in five markets
  in terms of category behaviour, media consumption
  and attitude, in order to identify the
  commonalities and differences that might inform a
  regional marketing strategy

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Category behaviour
In all five markets, the Super Consumers are
more likely than average to use features such
as WAP and e-mail
Source TGI
Base Mobile phone owners Target Super Consumers
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Category behaviour
The Super Consumers are consistently more likely
to choose fixed contracts over pre-pay for their
mobile phones, despite the fact that pre-pay is
a more popular option for the population in
general
Base Mobile phone owners Target Super Consumers
Source TGI
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Category and brand usage
In terms of penetration, Nokia is a strong
brand in each of the five markets
Base Mobile phone owners Target Super Consumers
Source TGI
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Category and brand usage
but the SuperConsumers have greatest affinity
with the Sony Ericssonbrand
Croatia
Base Mobile phone owners Target Super Consumers
Source TGI
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Media consumption
In terms of communicating a message to the Super
Consumers, some media perform consistently well
across the region, whilst others may work better
for local campaigns Consistently
efficient Newspapers Cinema Internet
Varying levels of efficiency Magazines Tele
vision Radio
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Media consumption
Source TGI
Base Women
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Attitudes

• Universal Values
• Brand loyal
• Quality driven
• Technology savvy
• Interested in other cultures
• Fashionable
• Opinion leading

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Universal values
Once I find a brand I like I tend to stick to it
Slovakia
Croatia
Czech Rep
Poland
Hungary
Source TGI
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Attitudes

• Universal Values
• Brand loyal
• Quality driven
• Technology savvy
• Interested in other cultures
• Fashionable
• Opinion leading

• Divergent Values
• Advertising receptivity
• Carefree spending
• Price sensitivity

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Divergent values
Source TGI
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Case Study Findings

• In terms of the Super Consumers behavioural and
  attitudinal profiles, we have seen examples of
  local differences and some key unifying themes
• Regarding mobile phone usage, Super Consumers are
  fairly homogenous across markets
• There are several key media and individual titles
  that would work well for T-Mobile across the
  region
• We have identified some universal values that are
  upheld by Super Consumers across the region, and
  could well inform a regional marketing strategy

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Understanding New Markets

• Analysing the Super Consumer target can also
  offer key insights to help facilitate marketing
  decisions when entering new markets
• For example, the same common target could be used
  if T-Mobile were to expand into other countries
  in the region, thereby enabling them to profile
  consumers in a consistent manner and understand
  the commonalities and differences

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Summary

• Changes in the markets of Central and Eastern
  Europe have resulted in significant opportunities
  for companies both within and outside of the
  region
• The Super Consumers represent a very attractive
  target for marketers
• If a brand or product is successfully established
  amongst the Super Consumers, it will subsequently
  diffuse down into the mass market
• TGI Regional SEL offers a practical solution to
  understand and effectively target this group on a
  local and regional basis

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Understanding the Super Consumers in Central
Eastern Europe Polly Carter, KMR Group