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