About Bloobble

Random Presentation

.: Try it :.

NEW! CATEGORIES

I am just starting this, but I wanted to share before getting all categories done. Thanks to send me your feedback and comments.

Global Consumer Behavior Study

Enjoy this presentation?

You are not logged in. You will be automatically directed to the login screen if you want to download, bookmark or share this presentation.

These are available as part of the subscription package
May be the time to ckeck out a subscription!

These are the first of many nice features we plan
on adding to save your time ::

Get links

Just push the Select button corresponding to your choice, CTRL + C to copy and then use Paste in your target application.

Link to this presentation:

Embed in your web site:

Presentation Transcript:

Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
2009 Consumer Electronics Products and Services
Usage Report
Copyright © 2009 Accenture All Rights Reserved. 2Copyright © 2009 Accenture All Rights Reserved.
• About Accenture
• Executive Summary
• Survey Highlights, Key Themes & Implications
Agenda
Copyright © 2009 Accenture All Rights Reserved.
About Accenture
Copyright © 2009 Accenture All Rights Reserved.
• US$23.39 billion for fiscal 2008 (12
mos. ended Aug. 31, 2008)
• More than 177,000 (including more than
4,800 senior executives) in 52 countries
Accenture is one of the world’s leading providers of
management, outsourcing and technology consulting
services and solutions
• In addition, of our top 100 clients in fiscal 2008, based on revenue,
• 99 have been clients for at least 5 years
• 87 have been clients for at least 10 years
Accenture deliver high performance solutions tailored to our clients’
industry
Value PropositionAccenture
• Integrated global competitive
advantages
• US$2.98 billion for R&D investment
• US$0.68 billion for employee training
• Best customer solutions and elites
• In past 5 years, 18,000 projects with
more that 4,000 clients
• Global company with the advanced
tools and best service
• Include 96 of the Fortune Global 100
and more than 75% of the Fortune
Global 500
• Align the consulting capabilities
with customer needs to achieve
the best value and effectiveness
• Healthy and energetic company
grows with client’s success
Copyright © 2009 Accenture All Rights Reserved. 5Copyright © 2009 Accenture All Rights Reserved.
Services We Offer
• At Accenture, we use our industry and business process knowledge, our service
offering experience and our insight into existing and emerging technologies to
identify new business and technology trends. We help clients work toward:
− Identifying and entering new markets
− Increasing revenues in existing markets
− Improving operational performance
− Delivering their products and services more effectively and efficiently
• Services we offer include:
− Management consulting
− Technology consulting
− Systems integration
− Application outsourcing
− Infrastructure outsourcing
− Business process outsourcing
Copyright © 2009 Accenture All Rights Reserved.
Accenture delivers its services and solutions through
focused industry groups in five operating groups
Communications
& High Tech
Financial
Services
Health & Public
Service
Products Resources
Customer Relationship Management
Finance & Performance Management
Strategy and Business Architecture
Talent & Organization Performance
Technology Research & Innovation
Supply Chain Management
Operating Groups and Industries Groups
Solution Engineering
Solution Operation
• Banking
• Capital Markets
• Insurance
• Communications
• Electronics &
High Tech
• Media &
Entertainment
• Border Management
& Public Safety
• Defense
• Health
• Human Services
• Postal
• Revenue & Customs
• Automotive
• Consumer Goods &
Services
• Industrial
Equipment
• Pharmaceuticals &
Medical Products
• Retail
• Transportation &
Travel Services
• Chemicals
• Energy
• Natural
Resources
• Utilities
Consulting
Executive Summary
Copyright © 2009 Accenture All Rights Reserved. 8Copyright © 2009 Accenture All Rights Reserved.
Research Objectives
The research focused on the following objectives:
• Develop an awareness of consumer preferences for digital
products and services
• Understand technology purchasing and usage behavior across
age groups
• Project future technology trends based on current behavior
• Identify key “lifestyles” emerging from behavioral changes
Copyright © 2009 Accenture All Rights Reserved. 9
Executive Summary:
8 Key Themes Emerge from the Latest Survey on
Consumer Electronics and Services….
Theme Impact
• New growth drivers play a role to capture
Boomers
• Reexamine consumer marketing strategy
1. Consumer Electronics and services grow up -
Boomers are the fastest growing segment in adoption
of Consumer Electronics and related services
2. Possible fatigue - Gen Y usage of CE & related
applications plateaus indicating end of phenomenal
growth rate
3. Mobility gains steam however challenges remain –
Significant growth in usage of data services for
connecting laptops and mobile phones but legacy
phones, price perception hinders growth of usage
4. Diverse preferences - Gen Y strongly prefers Gaming,
Mobile phones, Texting, Social networking and
contributing (blogs, posting videos etc.) while
Boomers prefer Computers, Emailing, Home Internet
service, E-commerce (shopping, trading etc.) and
consuming (e.g. online news)
• Bundled offerings becomes attractive
• Trickle down phenomenon
• Mobile is a critical touch point to reach
Gen Y
• Understanding needs and managing
attention determines success
• Opens opportunities for niches that better
align with interests
• Significant opportunity in mobile
broadband connectivity of devices, laptops
• Mobile and laptop will converge as mobile
hardware capability increases
• Mobile software platforms might reduce to
3 or 4 as application developers and
device makers align resources for financial
gain
Copyright © 2009 Accenture All Rights Reserved. 10Copyright © 2009 Accenture All Rights Reserved.
Executive Summary:
8 Key Themes Emerge from the Latest Survey on
Consumer Electronics and Services
Theme Impact
5. Usage of Digital Home concepts lacks traction -
Majority still don’t value connectivity among digital
home devices
6. New means of media consumption continues to grab
market share – Purchase of CDs, DVDs and reading
print continue to loose ground across all consumers
while on-demand entertainment and online video gain
share
7. Convergence and Divergence of devices happening at
the same time – Some categories (mobile phones) are
successfully converging while strong sales of vertical
products (iPod) and innovations (eBook reader) show
specialization and divergence
8. Economic climate amplifies changes in consumer
behavior and payment preferences – Significant
change in consumer spending plans for first half of
2009
• Consumer centric convergent, focused pure-
play products and services will be successful
• Brand convergence has to be explored by
companies developing convergence
products
• Increased convenience and choice due to
online and on-demand will further erode
physical format demand
• Interoperability of platforms, devices,
content, applications is critical
• Companies that adeptly reallocate dollars
released in cost cutting to fund development
of new capabilities and products will thrive
when the economy rebounds
• Opportunity to experiment different revenue
models
Copyright © 2009 Accenture All Rights Reserved. 11Copyright © 2009 Accenture All Rights Reserved.
Survey Highlights, Key Themes and
Implications
Copyright © 2009 Accenture All Rights Reserved. 12Copyright © 2009 Accenture All Rights Reserved.
1. Baby Boomers Averaging 20x Faster Annual Growth
rates in Adoption of New Consumer Electronics–
Related Services Compared with Gen Y
Adoption of New Services by Generation
(% change from 2008 study)
27%
59%
2%
25% 22%
52%
3%
20%
17%
35%
-2%
11%
24%
67%
10%
1%
30%
49%
27%
12%
Overall Baby Boomers Gen X Gen Y
Watching/posting
videos on the
Internet
Listening to music
on iPod or other
portable player
Play video
games on the
go (via mobile
device)
Connect on social
networking sites
Read blogs or
listen to podcasts
67x faster growth 30x faster growth 18x faster growth 4x faster growth
Copyright © 2009 Accenture All Rights Reserved. 13Copyright © 2009 Accenture All Rights Reserved.
1. Potential Implications of Consumer Electronics
and Services Growing Up
• Untapped Boomers will drive future growth and increase Consumer
Technology market potential since they have more disposable income to spend
than Gen Y
– Rational reasons (wanting to remain technologically literate, versatile and competitive in the job
market) and emotional reasons (staying connected with family) will influence Boomers choice of
products and services
– Boomer growth will benefit existing Consumer Technology brands due to better recognition
– High-Performing Consumer Technology companies will reexamine their consumer base as it
evolves and adapt to the needs of Boomer audience such as ease of use, privacy policies, trust,
familiarity, word of mouth and habits
– Marketers across the board have to identify most effective sales and marketing mediums for
reaching customers given the shift in demographic behavior
– Opportunities exist to further penetrate the segment by bundling device and service offerings (e.g.
Triple, Quad play) with other lifestyle choices
Copyright © 2009 Accenture All Rights Reserved. 14Copyright © 2009 Accenture All Rights Reserved.
2. Gen Y showing widespread plateauing and some
declines in consumer electronics and related
services usage….
Among Gen Y the survey exposed an annual slow down and, in some cases, a
flattening or decline in consumer electronics and related services usage
compared with Boomers.
Connect with People on
Social Networking
Websites
80% 82%
Gen Y
Participate in Communities
of Interest on the Internet
(e.g. Yahoo Groups)
48%
47%
Gen Y
Read Blogs and/or Listen
to Podcasts
45% 45%
Gen Y
2008 2009Going into:
23%
19%
Gen Y
Virtual world
participation
Trends in Gen Y’s Consumer Technology Applications usage
Copyright © 2009 Accenture All Rights Reserved. 15Copyright © 2009 Accenture All Rights Reserved.
2. Gen Y showing widespread plateauing and some
declines in consumer electronics and related
services usage (Continued)
87%
75% 73%
37%
86%
70% 70%
33%
DVD Player Digital Camera Game Console Portable Gaming
Device
Gen Y Gen Y Gen Y Gen Y
2008 2009Going into:
Trends in Gen Y’s Consumer Electronics ownership
Flattening and some declines can be noticed in Gen Y’s device ownership in
some categories as well. However, Smart Phones and Portable Music Players
show 20+% year over year growth
14%
26%
Gen Y
Smart Phones
60%
72%
Gen Y
Portable Music Player
Copyright © 2009 Accenture All Rights Reserved. 16Copyright © 2009 Accenture All Rights Reserved.
2. Gen Y showing widespread plateauing and some
declines in consumer electronics and related
services usage (Continued)
Home Internet
Access
Satellite or
Cable TV
Satellite
Radio
Phone calls
using VoIP
Gen Y Gen Y Gen Y Gen Y
2008 2009Going into:
Trends in Gen Y’s Services usage
Survey reveals some declines and flattening in services usage. However
Mobile data and Pay per view show 20+% year over year growth
Gen Y
Mobile Phone
Service
Gen Y
Mobile Data
for Mobile
Phone
75%
66%
10%
74%
62%
7% 9%
87%
9%
88%
14%
16%
26%
21%
Pay per view /
Video on
Demand
Gen Y
Copyright © 2009 Accenture All Rights Reserved. 17Copyright © 2009 Accenture All Rights Reserved.
2. Potential Implications of Possible Fatigue Among
Gen Y Users
• Plateauing and some declines in Gen Y’s consumer electronics and related services
usage indicates end of phenomenal growth rate, importance of product life cycle
management and potential market share fragmentation
– Consumer technology companies need to innovate on new services or rapidly evolve the products
as novelty has possibly worn off for the early adopters
– Some applications with no broad appeal have to consolidate functionality and integrate into other
applications
– Over commercialization and reduction in sense of exclusivity associated with primary social
networking communities such as Facebook or MySpace opens opportunities for niches that better
align with Gen Y’s interests
– Understanding Gen Y’s desires, why they use services and applications and managing their
attention determines future success for Consumer Technology companies
– Innovation opportunities exist to fuse social networking with Mobile phones and develop “Socially”
oriented Consumer Electronics and services
– Consumer technology companies need to generate awareness towards responsible use of
technologies, communities and discretion needed in its use
– Companies have to be more strategic in product or service portfolio management and life cycle
management (e.g. line extensions) for categories that are still showing growth
Copyright © 2009 Accenture All Rights Reserved. 18Copyright © 2009 Accenture All Rights Reserved.
11%Mobile Data for
Laptops
Mobile Data for
Mobile Phones
Smart Phones
Mobile Phones
8%
9%
7%
3. Mobile devices and services category has
tremendous potential but challenges exist as well …
Usage of data services growing at 60+% and preference as the most important
device increasing at 10+%. Preference as the most important service rose from
0 to 3% in a single year!
2008 2009Going into:
79%
17%
18%
84% 32%
29%
5%
1%
3%
0%
1%
0%
Numbers outside horizontal bars
indicate percentage of users rating it
as the most important device or
service
Percent of users owning a mobile phone and using mobile data services
9%
8%
7%
11%
Copyright © 2009 Accenture All Rights Reserved. 19
3. Mobile devices and services category has
tremendous potential but challenges exist as well
(Continued)
Primary reason for not using mobile phone for sending email or
watching downloaded videos or streaming content
Don’t need
additional
capabilities
Current
device
doesn’t
support
additional
functionality
Not sure how
to use it
Cost of a phone that
can support
those services is too
expensive
Additional
services are
too expensive
Other
54%
8%
4%
9%
14%
3%
Survey also reveals that more work needs to be done to realize the full potential
of the category as majority (>50%) don’t use device for entertainment or beyond
the well established features such as voice calls and SMS
Top 3 applications that are of most value to users on mobile phone
outside of making phone calls
Don’t
own
mobile
Just
make
phone
calls
18% 18%
15%
13%
10%
7%
6%
4% 4%
2% 2% 1%
Checking
email
Text
messaging
Browsing
on the
web
Watching
videos
Listening
to music
Playing
games
Taking
photos
Video
Calling
GPS Other
Copyright © 2009 Accenture All Rights Reserved. 20Copyright © 2009 Accenture All Rights Reserved.
3. Implications of Mobility Concept
• A general trend towards uptake in mobile data services will continue but services
providers and device makers should fix issues to increase adoption of multimedia and
other advanced services
– Service providers have to upgrade legacy phones that don’t support advanced services, sharpen
segmentation, improve mobile phone plans, explain benefits to resolve poor price perception and
communicate value proposition effectively to drive adoption of mobile entertainment and other
advanced services
– Consumer adoption of Mobile broadband connectivity of devices and laptops presents significant
growth opportunity for Service providers, Retailers in the Consumer Technology industry
– To drive mass market consumer adoption of advanced features and applications, mobile device
makers should find acceptable price points for devices by leveraging open platforms
– Number of mobile software platforms might consolidate to 3 or 4 strong contenders as 3rd party
application developers and device makers best align their resources for maximum financial gain
and to remain competitive
– Mobile devices will converge with portable computers that provide consumers with “good enough”
experience due to increase in software platform capabilities, reduction in hardware costs and
closing of performance gap (e.g. battery, MHz, Display size, Storage) between mobile and
portable devices
– Companies across the value chain should collaborate to enhance 360 degree consumer
experience covering pre-purchase stage, ownership (device usage, user interface, service, billing,
support experience) and disposal stages
Copyright © 2009 Accenture All Rights Reserved. 21
4. Boomers and Gen Y have diverse preferences for
Consumer Electronics, Services
Survey exposes diverse preferences – Gen Y is a Mobile generation where as
Boomers are Computer generation.
Baby Boomers – Preferred Consumer Services
7%
15% 13%
1%
37%
22%
HD
cable or
satellite
TV
Local
phone
service
(not
VoIP)
Cable or
satellite
TV (not
HD)
Mobile data
service for
my mobile
phone
Home
Internet
access
Mobile
phone
service
Gen Y – Preferred Consumer Services
1%
3%
6% 7%
25%
54%
HD
cable or
satellite
TV
Local
phone
service
(not
VoIP)
Cable or
satellite
TV (not
HD)
Mobile data
service for
my mobile
phone
Home
Internet
access
Mobile
phone
service
Baby Boomers – Preferred Consumer ElectronicsGen Y – Preferred Consumer Electronics
Computer
(desktop or
laptop)
28%
51%
6%
Mobile phone TV
50%
23% 22%
Computer
(desktop or
laptop)
Mobile phone TV
Copyright © 2009 Accenture All Rights Reserved. 22
4. Boomers and Gen Y have diverse preferences for
Consumer Electronics, Services
Survey exposes diverse preferences – Gen Y is a Mobile generation where as
Boomers prefer computers
Gen Y – Preferred Consumer Services Baby Boomers – Preferred Consumer Services
Baby Boomers – Preferred Consumer ElectronicsGen Y – Preferred Consumer Electronics
Mobile phone
51%
Computer
28%
Smart Phone
9%
HD/LCD TV 4%
Game console 3%
Regular TV 2% Other 4%
Computer
50%
Mobile Phone
23%
Regular TV
13%
HD or LCD TV
7%
Smart Phone 2%
Digital Camera 1% Other 4%
Mobile phone
service 54%
Home Internet
access 25%
Mobile Data for
phone 7%
Cable or satellite TV
6%
Local phone service 3% Other 5%
Home Internet access
37%
Mobile phone service 22%
Local phone service
15%
Cable or satellite TV
13%
HD cable or satellite
7%
Other 5%
Copyright © 2009 Accenture All Rights Reserved. 23
4. Implications of Diverse Preferences Across
Demographics
• Diverse preferences across demographics shows that one size doesn’t fit all
and presents as many opportunities and challenges for Consumer Technology
companies
– Boomers will continue to move up the online activity pyramid by gradually evolving
from passive activities such as information seeking (search, email), e-commerce
(shopping, finances) to more complex pursuits such as entertainment (blogging,
online video) and social connectivity
– Companies across the spectrum should incorporate mobile into strategy and
marketing planning processes and use mobile as a touch point to increase customer
interaction, whether it’s for mobile marketing or for providing services through mobile
– Mobile phone will continue to gain status alongside other in-home screens (TV and
Computer) offering opportunities for Mobile Devices and Services companies to
focus on innovative experiences
– A future device that merges specific needs of Boomers and Gen Y’ers would be a
small, portable mobile handset/computer hybrid with wireless connectivity
– Gen Y’s preference for technology-mediated communication (IM, Mobile, Texting,
Social networks and Status updates via social networking sites) compared to face-to-
face exchange will become norm in terms of their consumer preference
Copyright © 2009 Accenture All Rights Reserved. 24Copyright © 2009 Accenture All Rights Reserved.
5. Adoption of Digital Home Concept still Don’t Gain
Traction
29%
44%
24%
51%
32%
42%
46%
29%
32%
42%
Television Game
Console
Mobile
Phone
Digital
Camera
Portable
music player
Important Unimportant
Importance of consumer electronics products
having the ability to connect to the Internet either
directly or through a home network
Survey exposes consumer preferences for advanced concepts in Consumer
Electronics and Services such as Connected Home, mobile multimedia
Copyright © 2009 Accenture All Rights Reserved. 25
5. Potential Implications of Lack of Traction for
Digital Home Concepts
• Digital Home is not yet a lost-cause but overcoming barriers such as proprietary
standards, lack of integrated approach is key to capturing Converged Consumer
– Digital Home Consumer Technology manufacturers should offer complete solutions to
consumers, even when certain products and services fall outside their core business
by developing partnerships
– Digital Home uptake can be accelerated by developing an integrated value proposition
of network, service, devices and applications and marketing efforts around them
– Ecosystem evolution (open standards, partnerships and open platforms) and
interoperability amongst devices and applications are cornerstones for future success
of Digital Home and main stream adoption
Copyright © 2009 Accenture All Rights Reserved. 26
6. New means of media consumption continues to
grab market share
Survey shows the decline in sales of CDs, DVDs and time spent on print formats
across all demographics while watching videos online and DVR ownership
shows increase
59%
53%
Gen Y Boomers
45% 43%
Purchased DVDs in the last 6 monthsPurchased CDs in the last 6 months
2008 2009Going into:
Watch / post videos online
84%
75%
Gen Y Boomers
56% 56%
69%
65%
Gen Y Boomers
85%
78%
Watch TV at scheduled time
16%
21%
Gen Y Boomers
14%
21%
Gen Y Boomers
29%
36%
68%67%
Pay-Per-View / Video on Demand
26%
29%
Gen Y Boomers
23%
29%
DVR ownership
Copyright © 2009 Accenture All Rights Reserved. 27
6. Implications of increase in market share of new
media consumption
• Increased convenience and choice due to online and on-demand entertainment
will further erode physical format (DVDs, CDs, Books) sales
– Anytime, Anywhere convenience offered by on-demand will result in greater adoption
of DVR services and also act as a major driver for moving content across three
screens (TV, PC, Mobile)
– Social networks will play an increasingly important and controlling role in distribution,
viewing, listening of video and music (e.g. user ratings, recommendations)
– Consumer Technology companies have new opportunities in developing Filters, Tools
and Technologies that connect consumers with relevant content that appeals to their
interests
– Established brand names and Content Aggregators (e.g. Hulu, YouTube) will act as a
filter for consumers to sift through endless availability of free online content
– Economic downturn offers an opportunity for labels and studios to come up with new
business models and partnerships to syndicate content to Aggregators and Social
networks
– Further innovation opportunities exist as more and more physical formats move to
digital (e.g. Kindle)
Copyright © 2009 Accenture All Rights Reserved. 28Copyright © 2009 Accenture All Rights Reserved.
7. Convergence and Divergence Coexist at the Same
Time
Survey also reveals that consumers wishing for a convergence device and
usage of convergence device such as smart phones is on the rise. At the same
time, ownership and usage of divergent pure play devices such as music
player and portable gaming devices is also on the rise
2008 2009Going into:
21%
9%
35%
8%
24%
17%
40%
18%
Portable Gaming Device ownership
Portable Music Player ownership
Consumers wishing to have
single device to replace
individual devices
Smart Phones ownership
Copyright © 2009 Accenture All Rights Reserved. 29
7. Potential Implications of Convergence and
Divergence Coexistence
• Successful convergent products will lower entry barriers, continue to blur
industry boundaries and are consumer centric, while technology limitations,
stripping away the non-value added functionality lead to successful pure-play
services or products
– For convergence products and services, Consumer Technology companies need to
evaluate the viability of co-branding or Brand convergence (ingredient branding) where
partnering with other brands (e.g. iPod + Nike) or Category specialists (e.g. Motorola +
Kodak, Nokia + Carl Zeiss for imaging oriented phones) makes it easy for consumers
to associate benefits and leads to higher value creation
– Consumer Technology companies have to monitor and respond to the pace at which
convergence is moving from experimental to essential in consumers preferences
– Power is converging at consumer level as the attention scarcity increases due to
content explosion and more device choices are available
– Developing targeted and better divergent product or service by identifying different
consumer segments and tailoring products to their needs by stripping away the non-
essential features is the key to achieving adoption and success
Copyright © 2009 Accenture All Rights Reserved. 30
8. Economic Context Amplifies the Changes in
Consumer Spending and Payment Preferences
Survey highlights that average spending on Consumer Technology products and
services decreased by 30%
5%
1%
0
1%
0
54%
0
3%
6%
9%
21%
Increased by more than 80%
Increased by 61-80%
Increased by 41-60%
Increased by 21-40%
Increased by 1-20%
Stay the same
Decreased by 1-20%
Decreased by 21-40%
Decreased by 41-60%
Decreased by 61-80%
Decreased by more than 80%
Change in spending plans for first half of 2009 before and after economic crisis
Copyright © 2009 Accenture All Rights Reserved. 31
8. Implications of Macroeconomic context
• Increased focus on critical areas such as customer acquisition and retention,
strategic and sustained cost reduction, operational excellence and effective
M&A will fuel future growth
– To acquire customers and manage churn, Consumer Technology companies need
to reevaluate the value equation through effective propositions, right pricing
strategies, aggressive point of sale tactics and retraining sales force
– Strategic cost reduction can provide companies flexibility to experiment with
innovative ways for financing consumer purchases and experiment with different
revenue models such as pay-per-view, subscription, rental, software-as-service and
advertising-in-lieu-of-charge
– Consumer Technology companies should evaluate opportunities to consolidate and
acquire new capabilities and products that will fuel future growth through effective
M&A
– Consumer Technology companies should focus on operational excellence to bring
right products and services to market at the right price and right time