Tchibo mobil - MVNO Dynamics

Tchibo mobil
Sustainable Success for more than 8 years
Maria Mehrens
Hamburg & Munich, April 2012
Titel | TT.MM.JJJJ | Abteilung | Name
Content
¾ Tchibo mobil – how it started
¾ Who is Tchibo ?
¾ Tchibo Mobil, the First MVNO in Germanyy
¾ What happened since the launch of the first Tchibo mobil product?
¾ How are Tchibo mobil‘s products presented und communicated
¾ What‘s next
Maria Mehrens, Tchibo mobil
2
Tchibo Mobil has two strong partners: Tchibo and Telefonica Germany
Tchibo is one of Germany‘s leading Retailers
>7.000 employees
3.5 b EUR Revenues (in 2010)
Integrated Operator offering Mobile & Fixed
telecommunication services for consumer and
business
Key Products:
Coffee and „Non Food“
Main Non Food Divisions:
-Tchibo Mobil
- Green Energy
-Tchibo Travel
- Flowers
•~ 5.000 employees
•>5 b EUR Revenues (2011)
•~25 m customers
•No. 4 in the market
POS
>800 own shops (500 with integrated coffee bar)
„Tchibo Corner“ at leading retailers „Depots „
~ 29.000, thereof 8.400 POS with Non Food Products
5th strongest German Online Shop (in visits)
•Other wholesale partnerships of Telefonica in Germany
− Schlecker
− Kabeldeutschland
− Netzclub
− Türktelekom
− Unity Media
− ….
•
-
Key Facts
•World’s fourth-largest coffee roaster (ranked behind Nestlé,
Kraft & Sara Lee)
•Market
a e leader
eade in Co
Coffee
ee in G
GER,, PL,, A,, C
CZ
Maria Mehrens, Tchibo mobil
3
“Tchibo mobil” is set up as a Joint Venture
B th partners
Both
t
give
i access to
t their
th i key
k assets
t and
d expertise
ti
Telefonica provides
Network Access and
Capacity
Product Knowhow
Wireless services
Voice, SMS, Data
Premium Serv.
Support
Tchibo mobil Joint Venture
Creating an
innovative wireless
offer to address
needs of Tchibo
customers
Entrepreneurship
Product proposition
Marketing
Hardware sourcing
CRM, Customer Service,
Logistics
Finance & Analysis
Tchibo provides
Brand
B
d
Shelfspace
Communication
Channels
Catalogues
POS
O li
Online
Sales
Outlets
O li
Online
Depot
S
Support
t
Seit
Maria Mehrens, Tchibo mobil
4
Facts about Tchibo – History
From coffee mail-order firm to major multi-channel supplier of consumer goods
1949 1955 1963 1973 1987 1991 1996 1997 2002
Tchibo is
established by
the merchants
Max Herz and
Carl Tchiling,
Tchiling
Mail-order sales
of roasted
coffee in
Germany
Depots
introduced in
bakeries and
pastry shops
The first
Tchibo coffee
specialist retailer
opens in Hamb
Hamburg,
rg
featuring on-site
tasting
The traditional
coffee range
is enhanced
with a
regularly
changing
range of highquality Non
Food items
Expansion to
Central and
Eastern
Europe
Tchibo
q
acquires
the Eduscho
group of
companies;
Online sales
launched
Tchibo
mail-order
arm Tchibo
direct
established,
Travel
Entry into the
range
p
supermarket
launched
sector with the
depot system
2005 2006 2007 2008
2004
Shop openings
in
Czech
Republic
and launch of
Tchibo Mobil
Market entry
and shop
openings in
Turkey
Shop openings
in Hungary
2002:
Shops
introduced in
Switzerland
2010
Shop
openings in
Slovakia
Launch of
sustainable
coffee range
/
1.3 million
Private Card
owners
Launch of Tchibo
Single Portion
Capsule System
Cafissimo
Cafissimo,
Shop openings in
Poland
5
Maria Mehrens, Tchibo mobil
5
The Tchibo Business Model – Overview
Tchibo with a unique selling proposition (USP) built on three key pillars
Coffee (incl. Coffee Service)
Coffee Bar
Unique
U
i
Business
B i
Model
Non Food
Maria Mehrens, Tchibo mobil
6
The Tchibo Business Model – Non Food
Weekly changing product themes
•
Tchibo offers 52 weekly changing product themes, each with 50-80 products – over the year,
Tchibo covers more than 75% of all non-food product categories
•
The themes of this impulse-driven business model are selected based on seasonal needs
and consumer trends
•
Serving
S
i customers
t
by
b pre-selecting
l ti the
th best
b t products
d t from
f
various
i
categories
t
i such
h as
Clothing (e.g. women’s wear, men’s wear, etc.), Living (e.g. home textiles, kitchen products,
etc.) and Lifestyle (e.g. sport products, etc.)
7
Maria Mehrens, Tchibo mobil
7
Facts about Tchibo – The unique multi-channel distribution system
Overview
Tchibo Stores
Special Tchibo stores with their renowned friendly
Tchibo staff
Depots
Shop-in-stores / concessions in supermarkets,
bakeries, drugstores, etc. – Tchibo branded shelfspace (no
( own Tchibo
T hib staff
t ff or cashier
hi system)
t )
Mail order
• E-commerce
E
T hib di
Tchibo
directt
• Monthly catalogue (mailing)
• Special catalogue for Tchibo club card members
B2B
“Product + Service” – Coffee Service packages for
business clients such as hotels, offices, coffee bars,
gas stations
t ti
etc.
t (out-of-home
( t fh
coffee
ff business)
b i
)
8
Maria Mehrens, Tchibo mobil
8
Backup
The Tchibo Business Model – Non Food
Kids & Active: “Kids wear”
9
Maria Mehrens, Tchibo mobil
9
Tchibo mobil started with a groundbreaking innovation….
Tchibo mobil
ƒ Launch of Tchibo mobile tariff in October 2004
ƒ First 24/7 tariff in the German market (one price at any time to
any destination within the German network) – 20% below
average market prepaid price/minute
ƒ First German offer with easy and transparent tariff structurecopied from every discounter since launch
Win-Win-Situation for both partners
ƒ 50%
50%-50%
50% JV ensures value
l creation
ti ffor b
both
th partners
t
and
d
dedicated resources for new tariff development, marketing and
inlife management
ƒ O2: new gross add and revenue potential in a special
market/customer
k t/
t
segmentt with
ith very loyal
l
l customers
t
– average
customer is ~ 45 years old
ƒ Tchibo: Profit-Share in a growing and very profitable business
area, expansion of brand image, CRM-know-how
Maria Mehrens, Tchibo mobil
10
Development of “MVNOs” in Germany
O2 started
t t d with
ith Tchibo
T hib an amazing
i d
development
l
t
Market Split (estimate)
market
penetration
„New
brand“
b
a d
offers
127% 130% 132% 133%
1%
2%
4%
5%
6%
7% 10%
15% 18% 21%
MNO
Direct
Share
E-Plus followed
with Aldi, than 2
second brands
Si
Simyo
and
dB
Base
Sep
New
brands
in m CB
O2 started
t t d the
th
MVNO market in
Germany with
Tchibo in 2004
Dec
Mar
2005
1
June
Sep
Dec
2006
2
3
4
2007 2008
5
6
10
16
2009 2010
20
22
Source: teltarif, E-Plus results, Market Intelligence estimates, press articles
Maria Mehrens, Tchibo mobil
11
New brands market development
N
New
b
brands
d continuously
ti
l growing
i with
ith E
E-Plus
Pl as clear
l
market
k t lleader
d
Number off new brands
absolute figures
117
103
82
63
New
brands 59
99
New brands market development
in mn SIMs/ EOP*
New
brands
in % of
total
New Brand market shares Dec 2011*
in %
O2
14% 18%
21%
23%
Telekom
18%
19%
Vodafone
New
brands
15
19
22
26
MNOs
92
89
87
88
17%
113
78
47%
E-Plus
MNO
4
4
4
2008 2009 2010
4
2011
• Slow down of new brand
growth
2008
2009
2010
2011
• New brand segment with
increasing share in customer
base, adding 3,5 mn new brand
customers in 2011
Basis: 25,8 mn
• E-Plus is clear market leader in
new brands
*Note:
New
Brands market
smaller
due to integration of Alice customers into O2 core brand. New brand figures retrospectively altered.
Source:
Homepages,
Market
Intelligence
Maria Mehrens, Tchibo mobil
12
New Brands
Th 8 llargestt b
The
brands
d ttaking
ki almost
l
t ¾ off th
the ttotal
t l new brands
b d market
k t
New Brands Market Shares Dec 2011
in %
Aldi
Fonic
9,0%
Simyo
8,5%
1&1
8,4%
Congstar
Klarmobil
Tchibo
Blau
7,9%
6,7%
5,9%
5,2%
Comment
22,9%
• Market mostly
distributed among 10
major brands, which
are taking together
more than 75%
market share
• Aldi has been the
most powerful retail
brand in the discount
segment for many
years
• Fonic very successful
through online and
retail presence
Basis: 25,76
, mn customers
Source: Market Intelligence estimates; Strategic Insight Study
Maria Mehrens, Tchibo mobil
13
New Brands – Market Definitions
Th new brand
The
b d market
k t iis di
divided
id d iinto
t 3 main
i categories
t
i
Description
Discount
New
Brands
2nd brands &
b
branded
d d
reseller
(BSP)
Service
Provider
Discount
Infrastructure (ISPs)
Examples
MNO p
partner or subbrands
brands
Discount brands from classical
service providers and their
subsidiaries (Freenet,
Vi t
Victorvox)
)
Mobile offers from DSL and
cable providers
Maria Mehrens, Tchibo mobil
14
Development of the Tchibo Partnership
G
Growing
i Product
P d t Portfolio
P tf li and
d Growing
G
i Customer
C t
B
Base
9 Ct.
Tariff
Free
Community
Promotions
-Postpaid Flat
-Prepaid Flat
-Community Flat
Smart
Phone
Bundles
Data Stick
Offers
Mobile
Data
T iff
Tariffs
>1.5 m
Postpaid
launch
Profitable growth for
both partners
through innovative
and flexibile product
developments
Relaunch
P t id
Postpaid
Community
launch
Prepaid
launch
2004
2005
2006
2007
2008
2009
2010
2011
Maria Mehrens, Tchibo mobil
15
Presentation of Tchibo Mobil in Tchibo Shops
Tchibo mobil – own shelf with permanent presence in all Tchibo shops – was a key
achievement in the course of the partnership
Category and Tariff are highlighted in most shops
Window - Integration
Focus Space
Standard
Presentation
In Tchibo Shops
Pedestrian
stopper
Maria Mehrens, Tchibo mobil
16
Tchibo Mobil at Tchibo „Depot“ Distribution (Retailers)
Integration in the Tchibo Non-Food-Shelf with own permanent Tchibo Mobil Presence
Clear Focus on Category and Tariff
Shelf-Integration in current Sales-Phase
Promotion as 2.Communication
2 Communication Space
Maria Mehrens, Tchibo mobil
17
Online Communication & Distribution
www.tchibo.de with permanent presence of our mobile shop
www.tchibo-mobil.de with high flexibility for testing new products and showing fast changing offers
Maria Mehrens, Tchibo mobil
18
Strategic Link to Tchibo Loyalty Programme
Permanent Link between Tchibo Loyalty Card „PrivatCard“ and exclusive Tchibo
mobil offers via their „Bean collection programme“
Targeting PrivatCard - Customers
Aktuelles Beispiel für PC-Angebot mit exklusivem PC-Vorteil
Maria Mehrens, Tchibo mobil
19
Lessons Learned
•Clear committment to achieve MVNO targets from both sides
•Alignment of targets – common target for both partners!
•Become relevant for your retail partner
•Understand retailer needs fast and help them to sell your product
•Consider the processes of your partner before designing new products
•Concentrate on the most important needs for your partner: e.g. customer satisfaction
•Don‘t neglect a winning tariff model
Maria Mehrens, Tchibo mobil
20
Strategy for Tchibo mobil
Develop
CRM Mgt.
ARPU Up
Develop
Value
Customers
Capitalise
on
Customer
Loyalty –
highest CSI
Combine
Prepaid Cost
C
Control with
Postpay
Payment
Convenience
Help
customers to
understand
new
technologies
g
in mobile
Maria Mehrens, Tchibo mobil
21
Thank you
….
Any burning questions?
Maria Mehrens, Tchibo mobil
22