Recently, the UK mobile market has witnessed several key developments in relation to the deployment of multi-brand strategies. In August 2017, Vodafone launched a new youth-orientated sub-brand and Three announced a new ‘no-frills’ UK sub-brand. Furthermore, in July 2017, BT revealed that it would merge the BT and EE consumer functions as part of its ongoing integration efforts.
This report rounds up the multi-brand strategies of each UK MNO, analysing the implications of these new developments on their respective consumer strategies. The report will also discuss the rationale of multi-brand strategies, and their advantages and disadvantages.
- It has become the industry norm for telcos to operate a multi-brand strategy.
- Sub-brands can be created in-house, but can also be added as a result of acquisitions.
- Operators leverage sub-brands to appeal to a particular market segment. This strategy is particularly prominent in saturated markets, where operators must turn to previously underserved segments to increase revenues.
- A second reason for adopting a sub-brand is to protect the main brand from increased price competition. However, this can still result in some degree of ARPU erosion.
- To reduce the likelihood of ARPU erosion, a sub-brand must be a distinct proposition.
- Sub-brands have a more limited impact in fragmented markets where there are already several successful MVNOs.
In this report:
- Vodafone introduces youth-orientated sub-brand.
- TalkMobile struggled to gain traction in the ‘no-frills’ segment.
- VOXI is part of Vodafone’s wider consumer segmentation strategy.
- Three’s launches SMARTY sub-brand to compete with MVNOs.
- Three has deployed sub-brands in Denmark and Sweden.
- BT remains committed to a multi-brand strategy, despite the need to achieve cost synergies.
- Telefónica has successfully deployed a multi-brand approach in the UK for several years.
List of Tables and charts:
- Vodafone UK: Subscribers (000s)
- Three UK: Subscribers (000s)
- Three Denmark: Subscribers (000s)
- UK: Mobile Market Share (%), Q2 2017
Number of Pages: 7
Number of Tables and Charts: 4