VybeMobile Launches in Germany
E-Plus, part of KPN, has announced the launch of VybeMobile. Vybe Mobile will be a youth focused phone brand aiming to capture the youth market.
For those of you that don't know - KPN and its subsidiaries are following a multi-brand strategy in Europe to assist growth in extremely competitive market conditions. Its multi-brand strategy includes other brands such as Aldi Talks, Ay Yildiz and BASE. Each brand latches on to niches in the market (Aldi - supermarket shoppers: Ay Yildiz - the Turkish Community and BASE - the cost conscious trendy user).
VybeMobile willnot be the voice of the music loving youth in Germany. This is not E-Plus's first music brand - it also boasts a JV with MTV called Viva Mobile.
It might come as surprise - but the multi-brand strategy has not only completely radicalised KPN - its acutally working. Users aren't taken by big brands such as E-Plus or KPN. They have little meaning and despite years of trying - and spending on brand creation - mobile brands in general command little brand awareness or appeal.
Earlier this year - I attended BREW 2006. I was shocked that Qualcomm had actually created a RAP song around BREW. The European market is more conservative and this multi-brand strategy from KPN is actually quite radical.
So - will Vybe Mobile work. Well, I met Thorston Dirks from E-Plus early on in the year. He gave a compelling presentation on MVNOs. But since then E-Plus has virtually closed its doors on the MVNO market to focus on the multi-brand. (At that time - I was trying to sell my Expat Mobile concept to the operator - now I know why they didn't respond!)
This decision was wise. With an increase of about 3 million users since the launch of the multi-brand strategy - little E-Plus is finally fighting back against rivals Vodafone and T-Mobile in Germany. Two years ago when I was still at Current Analysis I predicted that O2 would beat E-Plus in the market and win the number 3 spot.
I was wrong. At that time, O2's collaboration with Tchibo looked impressive and then Tesco mobile jumped in on the game too. But, for O2, these JV's haven't gone far or "cheap" enough.
Basically. It is and ALWAYS will be about PRICE. I remember at CeBIT - competitors laughed at E-Plus saying that they got it wrong and they would allow E-Plus to create and host its own price and SMS war and not get involved. This didn't happen and in some way or another every operator in Germany has dropped prices as a direct result of E-Plus.
Back to the point - Vybe Mobile. My only concern with the new brand is the pricing. It basically mirrors Viva and all the other multi-brands out there. EUR 19.95 start-up; EUR 0.25 per minute calls and EUR 0.09 SMS.
I hope that the WAP site and the music service of the offer is more impressive than this "me too" pricing.
By the sounds of it - it might be. There will be a special new WAP site - with music as the main focus. I am eager to test it and will report back. If its only a catalogue of Universal Music's collection with no white label search aspect or music recommendation tool attached... I will be disappointed. The service launches on October 2nd and will test it then.
bena
For those of you that don't know - KPN and its subsidiaries are following a multi-brand strategy in Europe to assist growth in extremely competitive market conditions. Its multi-brand strategy includes other brands such as Aldi Talks, Ay Yildiz and BASE. Each brand latches on to niches in the market (Aldi - supermarket shoppers: Ay Yildiz - the Turkish Community and BASE - the cost conscious trendy user).
VybeMobile will
It might come as surprise - but the multi-brand strategy has not only completely radicalised KPN - its acutally working. Users aren't taken by big brands such as E-Plus or KPN. They have little meaning and despite years of trying - and spending on brand creation - mobile brands in general command little brand awareness or appeal.
Earlier this year - I attended BREW 2006. I was shocked that Qualcomm had actually created a RAP song around BREW. The European market is more conservative and this multi-brand strategy from KPN is actually quite radical.
So - will Vybe Mobile work. Well, I met Thorston Dirks from E-Plus early on in the year. He gave a compelling presentation on MVNOs. But since then E-Plus has virtually closed its doors on the MVNO market to focus on the multi-brand. (At that time - I was trying to sell my Expat Mobile concept to the operator - now I know why they didn't respond!)
This decision was wise. With an increase of about 3 million users since the launch of the multi-brand strategy - little E-Plus is finally fighting back against rivals Vodafone and T-Mobile in Germany. Two years ago when I was still at Current Analysis I predicted that O2 would beat E-Plus in the market and win the number 3 spot.
I was wrong. At that time, O2's collaboration with Tchibo looked impressive and then Tesco mobile jumped in on the game too. But, for O2, these JV's haven't gone far or "cheap" enough.
Basically. It is and ALWAYS will be about PRICE. I remember at CeBIT - competitors laughed at E-Plus saying that they got it wrong and they would allow E-Plus to create and host its own price and SMS war and not get involved. This didn't happen and in some way or another every operator in Germany has dropped prices as a direct result of E-Plus.
Back to the point - Vybe Mobile. My only concern with the new brand is the pricing. It basically mirrors Viva and all the other multi-brands out there. EUR 19.95 start-up; EUR 0.25 per minute calls and EUR 0.09 SMS.
I hope that the WAP site and the music service of the offer is more impressive than this "me too" pricing.
By the sounds of it - it might be. There will be a special new WAP site - with music as the main focus. I am eager to test it and will report back. If its only a catalogue of Universal Music's collection with no white label search aspect or music recommendation tool attached... I will be disappointed. The service launches on October 2nd and will test it then.
bena
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