Mobile Internet

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1. Introduction of the company

1. Executive Summary

Hi is one of the leading telecom providers in the Netherlands and they tend to be even bigger, in terms of mobile services. They are aiming to be the market leader in Mobile Internet provider in the Netherlands for the ‘young' and ‘trendy' people. As you can see, Hi (and KPN) are innovative members of the industry. They are patriots . They come up with new and different gadgets and aspects of mobile telephone. Customers (existing and new ones) are the most critical factor within a company. They decide whether a company goes up or down. Hi's rising like never before. We need to do something with it. Therefore we make special offers to new and existing customers. Offers will contain a special price, speed and package deal in order to attract and keep customers. We tend to increase revenues, reduce costs, increase speed, expand reach, eliminate inefficiency and increase effectiveness by means of above stated.

2. Abstract

Cell phones have fast become common place and rarely do you find a person without one. In June of 2002 62% of Europe owned a cell phone, up from 55% in 2000. As competition increases among phone manufacturers, they continue to add options in hopes to increase their market share. A phone is no longer a phone as manufacturers add features like cameras (with video) and mobile internet. Even something as simple as the ring tone is becoming ornate as you download your favourite songs to create a personalized ring. But what features of the future will find success and more importantly, as these features increase the cost of the phone, what will people be willing to pay for these new features and do they want this? The technology lifecycle shows us that there are different segments of the buying public each adapting to new technologies at a different time and price. The future of revenue for cell phone makers will derive from being able to satisfy a new market of tech savvy consumers who are interested in specific high tech features. As a product manufacturer investing in these new features, marketing to the correct segment at the correct price can mean the difference between success and failure. Some analysts believe the growth in mobile entertainment will be fueled, in part, by content providers putting more sophisticated applications -- everything from GPS navigation tools to streaming DJ beats -- on handsets.

2. Introduction

No technological advancement since the introduction of electricity has had a greater impact on society than the cell phone. While cell phone service is not available everywhere cell phones are used for everything from talking to watching television. By the end of 2006, nearly 2.7 billion people around the world subscribed to cell phone services according to a study by London-based Informa Telecoms & Media. The market research firm predicts that 2007 will see more than three billion cell phone subscribers – almost half of the global population. While telephones have been used in virtually every household for decades people were tied to the telephone and the telephone was tied to a specific location. Telephone booths were a common sight. With cell phones, the phone goes with the user, everywhere. No longer do teens have the excuse “I couldn't find a phone” when they are late for curfew even though telephone booths are almost non-existent. If the teen does not have a cell phone you can bet one of the people they are with does. Cell phones have evolved from just a means of making a telephone call while away from the house or office. Cell phones have become ingrained into our daily lives. Cell phones today are miniature computers. Cells hold data including addresses, phone numbers, date books, and a calculator. Cells phones have an alarm clock built in to wake people up when traveling or napping on the job or to alert people when it is time to leave for an appointment. Of course the cell phone remembers the appointment as well. Cell phones allow people to do more than chat the hours away. Cell phones entertain people with games or internet access while waiting in traffic or waiting in line to get a driver's license. Not only is cell phone use growing for adults, teens and younger children are using cell phones today. According to Sue Marek (2005) in The Growing Tween Market “The pre-teen or tween market – loosely defined as kids between ages 8 to 12 – was once considered to be a demographic too young for cell phone ownership, but this is changing”. The reason most parents give for providing cells phones to children is keeping in touch. Parents want to know where their children are and they want to know they can reach them in case of an emergency. However, Elisa Batista (2003) states, “The cell phone has become a primary mode of socializing for teens and they will often avoid contact with peers that don't have cell phones”. Undoubtedly the cell phone has become ingrained in society. Cell phones are so ingrained people who have them use them all the time. Cell phones are used at home, at work, on vacation, even while driving. Technology has provided us with television, computers, the internet and countless medical and scientific devices. However, no technological device in use today is as constant a companion as the cell phone.

3. Problem definition

Hi wants to dominate the mobile broadband industry in the Netherlands. Therefore it needs to examine the options available.

    1. Problem description

In today's world technology can't be disregarded. Everybody from every age uses mobile communications. Therefore it is essential to keep up with the latest technology and current (consumer) trends.

    1. Problem definition

(how) Do we get students to use the mobile internet? Related sub questions:

    • How big is the mobile internet market regarding cell phones ?
    • How many people use internet on their mobile phone?
    • Is the usage of mobile internet related to age?
    • What's the average of people using internet on their mobile phone?

4. Planning

In order to be organized and up to date with our report an efficient planning was needed. To plan our project we looked at the different tasks that had to be done and started dividing them between the team members according to their skills. We calculated the time needed for each tasks and set ourselves some deadlines, that helped us to keep organized and keep track of our progress. Overall the planning was not that hard because we had a good overview of the things that had to be done and the time needed to complete them.

Changes in the planning

Many modifications had to be done to the original planning since there were a few unexpected changes. At the start of the project we made a planning that was designed so that all the tasks were divided equally between the team members, but after several weeks two of our team members got out of the group. This obviously left us other team members with a lot more work to do and so we had to re-design our whole planning. Once the new planning was made there were also other things that did not go as planned; the primary research for example took way longer than we thought it would, the questionnaire design, as mentioned earlier in the report, was more difficult than expected and we therefore had to read through the book chapters on how to design a well structured questionnaire, which took us quite some time. Overall, except for a few minor changes we followed the plan fairly well and we mostly stayed up to date throughout the whole project.

Action Plan


Time-frame Lead Date Achieved

Hi - Research

1. Divide tasks. Febr ‘08 all Febr ‘08
2. Establish meeting with Hi initiators Febr ‘08 all Febr ‘08
3. Draft Action Plan and publicise it to members Febr ‘08 all Febr ‘08
4. Forward draft Action Plan to Initiators Febr ‘08 leader Febr ‘08
5. Read study case(s) and search for digital information Febr ‘08 researcher Febr ‘08
6. Appointment with Hi Initiators Febr ‘08 all Febr ‘08
7. Revise the Action Plan with feedback from members and initiators Febr ‘08 all Febr ‘08
8. Revise and deliver the Action Plan to management team and initiators Febr ‘08 all Febr ‘08

Exchanging Information and Research

9. Gain insights within Hi by means of case-studies and presentations March ‘08 all March ‘08
10. Discuss findings and prepare documentation for final case study March ‘08 all March ‘08
11. Execute formulas, chi square, pivot, quartiles etcetera March ‘08 all March ‘08
Integrating learnings outcomes into document      
12. Integrate formulas, conclusion, recommendations, confidence intervals etcetera March ‘08 all March ‘08
Action Time-frame Lead Date Achieved

Hi - Improvements

13. Changes made to calculations Febr ‘09 all July ‘09
14. Action plan adjustments July ‘09 all July ‘09
15. Document adjustments (layout) June ‘09 Yorick June ‘09

4.1 Scope of the project

The aim of this project was to make recommendations to KPN Hi on how they could improve their performance in the mobile internet business. The final report was put together over a period of roughly three month, the most time was put into the primary research and its analysis that led to the conclusion.

4. 2 Deliverables

The deliverables of this project were the individual tasks put together to form a formal report with a valid conclusion. To come to that conclusion we used the data analysis that we got through primary research. The multiple phases of this report are the deliverables that had to be completed for this project.

5. Research Design

3. Methodology The sample of our research was 118 respondents of different age groups, backgrounds and professions. We had a response rate of 91%. We conducted the survey through a delivery and collect method. it can be assumed that we had a very high response rate because of that. We conducted the survey in different areas. (School, the gym, hometown, colleague workers of our parents, friends of our parents, friends) We did the field research to determine whether our desk research was correct and we wanted to gather some primary data to confirm the findings of our secondary research. Methodology refers to devising an approach to a research that will work efficiently, it should be feasible and reliable. The choice of methodology is not an easy one to make because you can produce valid results in a number of different ways. The methodology is determined through the type of sampling method, the type of surveys used and the tools used for data analysis. The sampling method that is going to be used for our project is a quota sampling. Quota sampling is the most usual form of non-probability sampling where various characteristics of the population are identified as important, we did not choose a probability sampling method because our project aims at a specific part of the population. The collection of primary data on a research usually takes time and costs money, but using the quota sampling method there is only a specific part of the population that we need to get information from and so reduces the cost and time. The type of surveys that will be used are interviewer-administered surveys. The advantages of this method is that longer and more detailed questions can be asked, more sensitive topics can be included, the respondents can check details if they want and extra information can be collected. The disadvantages of this method is that it is more expensive, can limit the sample design geographically, can take time and can be subject to interviewer bias. But due to our quota sampling method the cost and time decreases. For the data analysis a nominal level of measurement should be used since our responses are classified into a number of distinct categories where no order or value is implied. Using this method of measurement, no measure of amount or importance can be assigned and therefore can not calculate statistics like the mean or standard deviation, but we can make percentages comparisons. The methodology used for this research takes an inductive and phenomenologist approach. As opposed to deductive, an inductive approach is based on the collection of empirical evidence in a specific situation and then making a general statement to cover all situations. A phenomenologist approach as opposed to posivitivist, is based on the way people experience and understand the world, it concerns the understanding in depth of the social processes.

4. Objectives

6. Organization

5.1 Name


5.2 Core business

Mobile Telephone service provider

5.3 Description

Hi, a trendy Young new brand. Sold through every possible channel. HI is owned by KPN, the decent and boring brand that couldn't sell its products towards a younger generation. Back in 2004, HI introduced cheap sms rates. A true hit amongst the youth, SMS became very popular. Hi's marketing campaign is city like, fresh and lively. This attracts the main cities and the Northern part of the Netherlands. Hi's target group is shifting towards relatively older people, who settle down and earn more.

5.4 History

First we would like to give you a brief introduction of mobile telephones and their networks in the Netherlands. We will especially focus on the role of KPN in this concept. The mobile telephone is a concept that have been worked on for a very long time. In the Netherlands, the first mobile network was introduced by PTT in 1992; the so-called green hopper. The first GSM-network was introduced by PTT in 1994. By 1999 the technology had been improved a lot and more modern and better cell phones came on the market. Hi is part of the KPN company. To understand more about Hi, we will give you a short introduction about KPN. Koninklijke KPN N.V. was incorporated under the laws of The Netherlands on January 1, 1989. On June 28, 1998 our name was changed from Koninklijke PTT Nederland N.V. to Koninklijke KPN N.V. KPN markets a big portfolio of quality products. Separate brands serve different target groups. Consumers in the Netherlands can choose from KPN (fixed and mobile telephony for families), Hi (mobile telephony for young people), Telfort (no-frills mobile telephony and Internet) and XS4ALL (the innovating Internet provider). The Netherlands, Germany and Belgium have the mobile telephone services of Simyo (competitively priced SIM card) and Ay Yildiz (focused on the Turkish community). BASE and E-Plus are the third mobile telephony brands in Belgium and Germany, respectively. For all their service requirements, the Dutch and international business community can rely on the KPN, Getronics, XS4ALL, Gemnet, Newtel and CSS brands. For mobile communication services for business there is Sympac. I-Basis is one of the world's largest carriers of international voice traffic. The brand Hi as a sub-brand of KPN started 10 years ago. At first, they where relatively cheap and therefore attracted many student customers. The brand Hi developed quietly during the first 5 years and became part of KPN. At first Hi targeted a broad target group but when they found out that most of their customers where students they narrowed down their target group. 5 years ago, KPN had to decided whether to go on an boost their sub brand Hi, or let it go. They decided to give the company a boost and therefore Hi is what it is right now.

5. Market

At year-end 2007, KPN had more than 35.3 million customers across the Netherlands, Germany and Belgium. They include 27 million with a mobile phone, 5.4 million with a wire line, 2.4 million with broadband Internet access and 0.5 million with TV. The number of FTEs at KPN stood at 25,500 at year-end 2007, plus another 18,000 at Getronics. KPN made a profit of €2.5 billion in 2007 on annual sales of €12.6 billion. The Netherlands has experienced solid growth in the mobile sector during the last two years, despite market saturation. Relatively stagnant growth from the main operators in 2006 has since been compensated by strong performances from MVNOs and by network operators focussing on upgrading networks to capitalise on mobile data services. SMS remains the most popular data service, while i-mode is also available. Vodafone and T-Mobile are the main network operators, following the acquisition of Orange by T-Mobile in late 2007. All provide wholesale services to MVNOs and resellers. The low-cost MVNO Telfort was bought out by KPN in 2005. Five 3G licences were auctioned in July 2000 with services launched by KPN and Vodafone in 2004, followed by T-Mobile and Orange in 2006. This report provides statistics and analyses on the Dutch mobile market in 2008, including a review of the key operators and regulatory issues. It also assesses emerging mobile data services such as mobile TV, EDGE and HSDPA in the Dutch market.

5.6 Customers

Hi is the mobile brand aimed at young people in the Netherlands that offers a mobile voice, data and messaging services. Hi is especially for the younger people in Holland ranging from 15 to 30 years of age. Hi is the Dutch mobile provider in the domain of messaging and is in close contact to its target group through its communication style. Through its applications and services Hi aims to strengthen social contacts between young people. Recently Hi established Hi Society for this purpose. The Hi Society is the platform for all Hi customers who are “completely connected” or for those who can identify themselves with this lifestyle. The amount of mobile phone users have been increasing since mobile phones were introduced. The diagram below shows how many customers get a cell phone each quarter. Holland is a great market for Hi because Western European customers spend much more money on mobiles compared to others. There is still a rising trend in mobiles as seen in the diagram below. The target group form Hi are the younger people from 15 to 30 years old. And as seen on the table below we can see that this is the most popular group under working with cell phones. Hi's target group is the most profitable market for the Mobile Industry, people from 18 to 24 are the top users of their mobile phone and right after that 25 to 34 years of age. These are exactly the people that Hi wants to reach. In the following diagram it is shown that 39.1% of the teens are using their cellphone while they are online. That's a big percentage if you take in that watching TV and movies is only 33,8, while we would expect that that would be the main problem. Hi is the Dutch messaging brand. They have by far the most people who use text messaging a lot. This is logical because youngsters Text more than elderly, and that is exactly the target group from Hi. KPN HI Telfort Vodafone T-Mob Orange MVNO Total

5.7 Competition

The competition in the mobile internet market is high. Over the years many new providers have entered the market and because of the globalization and the virtual world, the entry barriers are lower than before. The biggest providers of mobile internet are KPN (Hi) and Vodafone. Because of the entry of many other, smaller companies KPN (Hi) and Vodafone are losing market share.

Operator share 2003 2002 2001
KPN 39,0% 41,8% 43,5%
Vodafone 24,4% 27,1% 26,9%
T-Mobile 15,1% 11,8% 9,2%
Telfort 12,1% 10,7% 10,7%
Orange 9,3% 8,5% 9,6%
Users (Millions) 13,2 12,1 12,0

(source: As you can see, while KPN had a market share of 43,5% in 2001 it dropped to 39% in 2003. Vodafone dropped as well while other, smaller companies gain in their market share. To give you a more specified idea of mobile internet and the market shares, market value etc. we will give you some more examples. There are two different ways of paying for you mobile telephone; postpaid and prepaid. We would like to start with the postpaid telephone users because that is the majority of the users. Also the postpaid market we would like to divide. Because it is important to differentiate between the short term differences and developments, and the long term differences and developments. We will start with the short term developments. As you can see below, Hi provided us with some information about the market share, market value and other aspects concerning the mobile telephone market. This information is short term related (quarterly) We also have the long term related information which will be showed below. (one year) Because the words are in Dutch, we will give you an explanation of what they actually mean. Marktaandeel = Market share Marktwaardeaandeel = Market shared value Marktaandeel Fun = Market share fun Marktaandeel Family = Market share family Marktaandeel Career = Market share Career Marktaandeel SoHo = Market share Soho These are the translations and now we will provide you with the explanation of the signs. ++ : >=1% + : >=0,3%, < 1% = :> -0,3%, < 0,3%

  • : <=-0,3%, >-1%
  • - : <= -1%

As you can see, Hi has a long term planning of increasing their market share in the Fun and SoHo market while they are not actually performing well on the short term. For the prepaid market, there is a difference. Hi also provided us with some information on the prepaid market and this information you can see below. Again we will do the short term first which then will be followed by the long term plans. Short term: And the long term:   As you can see by the graphs, Hi is not performing very well on the prepaid market and Telfort is their biggest competition there. The same counts for the post paid market. To see the market share of Hi and their competitors, we can have a look at the next graphs:   As you can see the share of Hi in the market is around 13% but does not necessarily grow or stay steady. KPN and Hi together have the biggest market share followed by Vodafone and T-Mobile. When looking at the prepaid market we can see the following:   Here we can see that the market share of hi is around 14 percent but does not necessarily inclines or declines. On the prepaid market, Telford is a strong competitor together with Vodafone. And again, KPN and Hi together have the biggest market share. When looking at the market as a whole, so without making any differences between pre and post paid we can see this:   The total market share is owned by KPN and Hi together but Vodafone and Telford are also big competitors while T-Mobile and Hi own around the same amount of market shares. If you want to really compare Hi to their competitors, you should look at the average revenues per month of the different companies. Therefore we have the next table.   Although T-mobile makes the most revenue, Hi is a serious number two with a steady 19. As we can conclude from this slides, in every area Hi has it own competitors. Though KPN and Hi together still have the biggest market share in all the area's, other providers like T-Mobile, Telford and Vodafone are some of the serious competitors.

5.8 Recent developments

1. Mobile banking, which uses mobile devices for self-service functions. Several major banks, including Citibank, Wachovia, and Bank of America, have launched mobile applications that will allow customers to view their account balances, pay bills, transfer money, and even call customer service reps with one click -- all using a cell phone or smartphone. 2. Contactless payments, which enables cell phones to be used as payment devices instead of credit cards. As a separate effort, top credit card issuers MasterCard and Visa are paving the way for "contactless" payments, where cell phones serve as electronic wallets for purchases that can be made at CVS, McDonald's, and many other retailers. The phones use Near Field Communication, or NFC, a wireless technology for short-range communications between electronic devices. 3. Mobile marketing, which includes things such as loyalty programs, ads, and electronic coupons. MasterCard plans to offer rewards and special offers via text messages that customers can redeem when they visit stores, as an incentive for using its mobile services. Similarly, Visa will provide customers with electronic coupons on their cell phones as part of its payment-related services. Other companies have similar mobile marketing efforts under way.

6 Primary Research.

After the secondary research, primary research was conducted in the form of a questionnaire. The results of the questionnaire are analyzed and shown in this chapter.

Research objectives and design.

The secondary research was conducted especially to analyze the industry. Strengths and weaknesses of the industry are shown but the for the customer behavior primary research was conducted. With the primary research we tried to find out the customers wants and needs in order to give a better advise to KPN Hi. The primary research was conducted in the form of a questionnaire. We distributed the questionnaires at several different locations in order to reach a broad target group and be able to make the research as reliable as possible. The collected data was entered in excel which made it possible to analyze the date. We conducted a survey to 118 people with different backgrounds, ages, and professions. We asked questions about their mobile phone usage and their opinion on internet on mobile phones. We took a random sample and we conducted the survey either by email or personal. We had a response rate of 85%, in our opinion because of the personal touch we gave the survey.


The hypothesis we had by doing research on literature and our own common sense was that the information on internet on mobile phones towards our customers was insufficient and therefore our customers did not really see the advantages of the usage of internet on their mobile phone. The second hypothesis we had was that our customers though it was too expensive and therefore did not see the advantages of internet on their mobile phones. A third hypothesis was that our customers thought internet on their mobile was too expensive compared to the usage of internet at home or elsewhere. We expect the usage of internet on mobile phones to increase in the future as more advantages and better technology will be developed. The usage of internet on mobile phones is just at the beginning of its development.


Analysis of the questionnaire:

The network used. As can be seen in the graph above, Vodafone has the biggest market share in the telecom market (38%). Vodafone is a little ahead compared to KPN/Hi who has a market share of 23%. The majority of the people by which we held this questionnaire do not use internet on their mobile phone (58%). The reason behind the behaviour of not using internet on their mobile phones can be found in the next graph. Most of the people do not use internet on their mobile phones because they found it too expensive (36%) followed by the people who are just not interested (29%) Another thing that was mentioned was that the internet on the mobile phones was too slow. Would people be more interested in internet on their mobile phone when it would have been cheaper? This can be seen in the next graph. As can be seen there is just a small amount of people who still would not be interested in the use of internet on their mobile phone when it would have been cheaper. (31%) Along with cheaper go other advantages, the next question therefore was whether the interest would increase when there would be more advantages. The results can be seen in the next graph. Putting more advantages along with the usage of internet on your mobile phone would increase the popularity of it. Where is the internet on mobile phones mostly used for? E-mail and news are the functions that are mostly used. What are the disadvantages of internet on your mobile phone? The slow connection is the main disadvantage of internet on your mobile phone. We asked the question whether there where other functions that would be desirable in combination with the use of internet on your mobile phone. An unlimited account is the most popular function that customers would like to have in addition to their usage of internet on their mobile phones. We asked a question whether our sample would be interested in internet on their mobile phone when it would be cheaper and there would be more advantages coming along with the usage of internet on their mobile phones. It would be a good idea to improve the usage of internet on your mobile phone because a significant amount of people would be interested in the use of internet on their mobile. Above you can see the gender of our sample. And next the average age will be shown:

Compared Data.

We calculated the percentage of users in every age group because that is important to know for marketing purposes. In the age group of 20 years and younger 30% of the servants used internet on their mobile phone while in the age group between 20 and 30 years old 44% of the servants made use of internet on their mobile phone. The age group with the highest percentage was the age group of people between 30 and 40 years old, 50% of the people we questioned used internet on their mobile phone. In the age group of 40 years and older only 14% used internet on their mobile phone. Our calculations can be seen in the following table.

Age Groups Frequency Sample Relative Frequency Sample Cumulative Relative Frequency Sample Frequency Yes Within Sample Relative Frequency Yes Within Sample
20 years or younger 30 30/118=0,26 0,26 9 9/30=0,30
Between 20 an 30 years old 63 63/118=0,53 0,79 28 28/63=0,44
Between 30 and 40 years old 18 18/118=0,15 0,94 9 9/18=0.50
Over 40 years old 7 7/118=0,06 1,00 1 1/7=0,14

Frequency of users in different age groups.

Pivot table of the frequencies of users within the age groups of our sample.

age in years count %
<25 15 23,0769
25<=..<50 20 30,7692
>=50 30 46,1538
total 65 100

More marketing should be conducted to the age groups of 20 years and younger and the age group of 40 years and older. As Hi is a youth brand, they should target the young group more.

Pivot table and Chi square age/usage mobile internet

Man/Woman (All)          
Sum of Total Age          
Yes/No Under 20 years old Between 20 and 30 years old Between 30 and 40 years old Over 40 years old Grand Total  
Do use internet on mobile phone 9 28 9 1 47  
Do not use internet on mobile phone 22 34 9 6 71  
Grand Total 31 62 18 7 118  
Age (Alles)    
Sum of Total Yes/No    
Use of internet 1 2 Total
1 17 32 49
2 30 39 69
Total 47 71 118
  17 32  
  30 39  
p-value 0,17729        

The Chi Square out of this Pivot table is 0,17729 whereas we used a confidence interval of 95% (significance = 5% = 0,05) the p-value is 0,17729 > 0,05 which means that the variables are independent. There is no relation between the age and the usage of internet on mobile phones.

Confidence Intervals.

Would you use internet on your mobile phone if it was cheaper? Yes: 69% No: 31% Yes = p = 69 No = q = 31 N = 118 Reliability = Z = 95% = 1.96 P – Z * V(p * q / n) < II > P + Z * V(p * q / n) 69 - 1.96 * V(69*31/118) = 60,7% 69 + 1.96 * V(69*31/118) = 77,3% 60,7% < II > 77,3% The confidence interval for people who would use internet on their mobile phones if it was cheaper lies between 60,7 and 77,3 percent. (based on a 95% confidence interval) Would you use internet on your mobile phone if it had more advantages? Yes: 60% No: 40% Yes = p = 60 No = q = 40 N = 65 Reliability = Z = 95% = 1.96 P – Z * V(p * q / n) < II > P + Z * V(p * q / n) 60 - 1.96 * V(60*40/65) = 48,1% 60 + 1.96 * V(60*40/65) = 71,9% 48,1% < II > 71,9% The confidence interval of people who would use internet on their mobile phones if it offered more advantages lies between 48,1 and 71,9 percent. (based on a 95% confidence interval) Critics. As we only took a small sample compared to the customer database of Hi, our research may not be as reliable as it could be. Though our response rate was high, their might be some people who just filled in the questionnaire to keep us from asking. Although maybe not everyone took the survey as serious as we did, we think we can say that the people to whom we conducted the survey where serious when it came to the questions of price, quality and reasons why. Our advise and conclusions are based on our findings of the research and it therefore may be not as reliable as it could be whereas we do not have as sufficient knowledge on the subject as you have.

7. Conclusion and recommendations

We have come with a couple of advices that we like to give to Hi. The advices we made are conclusions from the data that we have collected. These advices can be used to create a better atmosphere around Hi, and that they will remain the market leader in Mobile Internet. The first advice that we came up with is to aim for a wider public, we know that Hi stands for students and younger people but once they are aiming for people below 20 years and above 30 they will get a much bigger response rate on their mobile internet. As we could see, the age groups of 20 years and younger and 30 years and older had the lowest percentages of users of internet on mobile phones. When Hi wants to gain more market power, they should target more on those groups in order to gain customers. This can be seen in the confidence intervals and the pivot table analysis. Furthermore, as a second advice we came to the conclusion that there are a lot of people that do not apply the mobile internet, who think that it is too expensive. We therefore advice to make the usage of the mobile internet cheaper. Once it gets cheaper people will use the mobile internet a lot faster. From our data we concluded that a lot of people would us mobile internet on their cell phone if it was just cheaper to use it. Our third advice was to improve the browsing / downloading speed. The speed of the internet is in great importance for the people that are willing to use it. This would probably mean that the technology of this mobile internet has to be updated so that the browsing and downloading speed can be improved. We found out in our questionnaire that 48% of our respondants who used internet were annoyed of the connection being too slow. The range (reception of network) delivers a critical part to having a fast connection. The quality of the internet on mobile phones is not sufficient in relation to the price. The quality of the internet on mobile phones is not sufficient in relation to the price. So the quality needs to be improved and the price needs to decrease in order to gain more market share and gain market power. The fourth advice that we came up with is that Hi has to show off the advantages that they offer, we all know the commercials but Hi has to let the public know what their advantages are. If they can in one way or another compare themselves with their competitors so they can really show their advantages. This will definitely increase its usage. By offering certain advantages along with the usage of internet on mobile phones the amount of customers can increase. (78%) When customers can actually see and feel the advantages of using the internet of Hi instead of another company, the market power will increase significantly. It is important for Hi to make sure the customers are able to relate themselves to the product. This can be done by special offerings, extra tools and advantages, and personalized advertisement. (of course not for every single individual, but for certain groups of people) The fifth and last advice that we made is offering the customers special offerings. Hi has to treat them as a customer that has to be proud to have a subscription with Hi. Hi could also offer extra tools and advantages. Even personalized advertisements will reach to the public that Hi wants and even further. To be conclusive, Hi needs to offer their clients (new and existing ones) a new deal for the usage of Internet on their mobile. The price of the usage should be lowered and includes more advantages (portal wise, speed, Benelux special, EK special). Also different marketing approaches have to be made in order to target specific age groups and therefore gain more customers. This would significantly increase the amount of customers.

8. Reference List

Wright, Patrick. Answering the Call: Del Mar Company Markets Simple, Easy-to-Use Cell Phones. 18, Nov. 2006. North Carolina Times Online. 13 April 2008. Sue Marek. WirelessWeek - May 01, 2005 The Growing Tween Market. WirelessWeek Website. 25 April 2008. Lilley, Ernest. The Latest Things. Jan 2005 EBSCO Database. University of Oklahoma Libraries, Norman, OK. 11 April 2008 Kpn Hi. Graphs & Figures.



To interpret the market and being able to have a good overview of the customer needs and wants, research is necessary. There are different types of customers whereas they are have different needs and wants when it comes down to the usage of internet on mobile phones. The figure out these needs and wants of our customers we conducted a research. We also wanted to find out why customers, do not use internet on their mobile phones. Our research also conducts to the why of the no usage of internet on their mobile phones. The mission was to find what could be improved in the concept of internet on mobile phones in order to expand our market when it comes to internet on mobile phones. We conducted a survey to 119 people with different backgrounds, ages, and professions. We asked questions about their mobile phone usage and their opinion on internet on mobile phones. We took a random sample and we conducted the survey either by email or personal. We had a response rate of 85%, in our opinion because of the personal touch we gave the survey. The hypothesis we had by doing research on literature and our own common sense was that the information on internet on mobile phones towards our customers was insufficient and therefore our customers did not really see the advantages of the usage of internet on their mobile phone. The second hypothesis we had was that our customers though it was too expensive and therefore did not see the advantages of internet on their mobile phones. A third hypothesis was that our customers thought internet on their mobile was too expensive compared to the usage of internet at home or elsewhere. With the analysis of our survey we hope to be able to answer the questions around the usage of internet on mobile phones. We hope to find the ability to expand the market when it comes to users of internet on mobile phones. 10. Questionnaire Product Development We are performing a research about internet on your mobile. We would like to know what could be improved and why people use or do not use internet on their mobile phone. This questionnaire will take around 3 minutes of your time. You would help us a lot!. 1. Which mobile network do you use?

  1. Orange
  2. Telfort
  3. Vodafone
  4. Debitel
  5. KPN
  6. Other: ____________

2. Do you use internet on your mobile? A Yes (go to question 6) B No 3. What is the reason you do not use internet on your mobile? A Not interested B Too expensive C Don´t have the time D Did not know about it E Other: 4. Would you be interested in internet on your mobile if it would be cheaper?

  1. Yes
  2. No

5. Would you be interested in internet on your mobile if it had more options and advantages?

  1. Yes (go to question 9)
  2. No (go to question 9)

6. What is the main reason for using the internet on your mobile ?

  1. E-mails
  2. News
  3. Weather
  4. Research
  5. Chat
  6. Entertainment
  7. GPS / Traffic
  8. Other:

7. What disadvantages do you see in internet on your mobile?

  1. Slow connection
  2. Expensive
  3. Not reliable (connection problems)
  4. I see no disadvantages
  5. Other:

8. Is there anything else you would like to have on internet on your mobile?

  1. Be able to use it in other countries at a reasonable price
  2. Pay per quantity of data you use instead of per minute you use
  3. An unlimited account
  4. A fast connection
  5. Other:

9. If a new deal was to be offered with unlimited access to internet on your mobile at a low price and with many other advantages, would you be interested?

  1. Yes
  2. Maybe
  3. No

10. What is your gender? Male/Female 11. What is your age group?

  1. Under 20 years old
  2. Between 20 en 30 years old
  3. Between 30 and 40 years old
  4. Over 40 years old

Individual Learning outcome of Eva Wijdeveld.

Before starting on this project I had no real idea about how to conduct a research for a company. The start of the project therefore was a little difficult. We had no clear task division due to the lack of interest of some of the project members but after some weeks we finally got started and things went better. Doing the project was a really educative experience because I learned to conduct a real desk research accompanied with a real field research. Before the product development course we only had to researches that where fiction but this, accompanied with the Business Decision Making course, was a real research. It was really interesting to process the data and making recommendations after analyzing the data. To see what respondents actually thought about the services of Hi (especially the internet on mobile phones services). Furthermore I would like to include a summary of all the different things I did within the report and with the individual learning outcomes of those different aspects of the report.

The Competition.

The part in the report about the competition was the first research I did in relation to this research. It was really interesting to find out what the positions in the market is for all the different suppliers of mobile telephone services. I had some difficulties finding the information on the World Wide Web though after a while I ran into some real interesting figures. The email we received from Hi was also very helpful because it contained a lot of interesting information related to the research.

The Questionnaire.

The questionnaire was designed by Quinten and myself, we at first thought that it would be really easy to design this survey but while trying to design it we ran into many problems. We thought it would be a good idea to actually read the chapter about the questionnaires before designing something that would not be useful at all. After reading the chapter it was easier to design the survey. Surveys always seem easy when you are filling in the questionnaire but when designing one, you run into the difficulties of the questionnaire. Afterwards, many things in the survey could have been improved. We only made questions for nominal data while it would have been easier to also have some questions containing ordinal data.

Data Analysis Results.

During the analysis of the data, some problems occurred. As I am not really familiar with the use of excel it took me a really long time to eventually come to the results as stated in the report. The graph eventually went well and with some prior knowledge of Confidence Intervals I was able to calculate the confidence intervals of the data we found accurate. Alex calculated the part of the pivot tables as I was not able to produce the pivot tables in my excel version. After the calculations, we also had to make some recommendations with respect to the data. Recommendations and conclusion of the report. Quinten and I wrote the recommendations and conclusion together based on the findings of the field research. This was, from my point of view, the most fun part to do. We could actually see the results of all the work we produced. It was not that hard and I think in the end we did a good job.


After doing the field research, we encountered some aspects that we could have done better. This, we stated in the critics and was not very difficult. After all I think we did quite a good job on the project considering the circumstances of our group. (We lost two group members along the way) although we made many mistakes related to work division, mathematical knowledge, and survey design, we did quite a good job on the report. I hope you enjoyed reading it as we put a lot of effort in it.


Overall, the project went reasonably well, we had an organized team, we did not encounter any major problems or reach any dead ends and we came to valid conclusions and recommendations based on our primary research. The analysis of the competition, the market and the customers was not hard since we had very easy access to all the information we needed. The calculations were not easy, at certain moments we could not come up with the right answer or solution so we used some help of teachers and fellow students, but it was fun to apply the formulas that we only studied in theory into a real-life situation, that way we could really see the usefulness of these mathematical tools. The primary research that was carried out was well structured and organized but the initial sample we got at the end of the research was not very large, at least not as large as we thought it would have been, so following there were some questions raised concerning the reliability of our primary research but since that in our repliers we had a wide range of different ages and that most of them took it very seriously there is no doubt that our results reflect a good image of a true public. During this project we mostly used computer programs that were not very advanced containing not so many tools, such as Excel, we now were made aware of a computer program named SPSS that is a bit more complex but offers many more mathematical calculations and useful tools and is a lot more adapted to our kind of project, if we would have known SPSS at the start of the project and been able to use it, it would have saved us quite some time.

Personal reflection Quinten Swartberg

This project taught us many things such as choosing a valid and reliable methodology, how to construct a good questionnaire and how to analyze the collected data using appropriate mathematical tools. Applying knowledge of books and lectures to a real life situation of a business is always a bit difficult because there are often unforeseen challenges that you have to go through during the project, to cope with those challenges we used our own knowledge to determine the best decisions to take. This project was also the one with the most group members so we had to adapt to how we normally organize ourselves in smaller groups and learn how to work with a bigger team, once we planned everything it came clear that more members offers significant advantages. What could have been improved in this project was the size of the sample, we could have collected more responses from questionnaires if we would have started a bit sooner. What was good in this project was the communication among the team members, that helped a lot to keep up to date on the overall work that was done and the work that still had to be done.

Personal reflection Yorick Reintjens

The general process concerning the HI project's objectives were reasonable. Most of the objectives were vague and a ‘to follow' grid was missing. Therefore we downloaded a grid ourselves, which proved to be insufficient for this matter. All final remarks (including comments) showed that we needed to change the report at the last minute while dealing with exams. This was obviously hard to accomplish but we gave it our best shot. Another issue is the compatibility of software, especially concerning Microsoft Word and Excel. We created the documents using Word and Excel 2007 but as soon as people opened it with the 2003 version the graphs would then disappear. This is obviously frustrating for both parties, this means extra work in a busy schedule. My coach (Graeme) was also a great help to me. He helped me through difficult times (course related of course). Introduction This part was fun to write because the ´global´ trends, wants and needs of customers. Executive summary Writing the executive summary was already completed while writing the report, therefore the executive summary was already finished. Problem definition This subject needed clear thinking looking at our main question (how do we get (students) to use the mobile internet?).

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