Reclaimed is a new series of presentations aimed at mobile handset manufacturers. In this series we explore the key social drivers of today’s youth and how the mobile phone fits into their daily social lives. Indonesia Reclaimed looks at how mobile phones form a composite element of daily influence, peer group interaction and social status for youth in Indonesia. Who are the key customer segments that BlackBerry, Nokia, Sony Ericsson, Motorola and Apple should target and why. Download the entire presentation at http://www.MobileYouthReport.com/Reclaimed

1. Mobile Youth:Indonesia ReclaimedThe story of one generation and their quest to find lost social space

2. What’s Inside? Indonesia Reclaimed by mobileYouthA 40 slide presentation detailing changing Indonesian youth behavior and how mobile technology fits into that change. We identify the 3 key change agents and the implications for handset brands.

3. Download this presentation Find out how http://www.MobileYouthReport.com/Reclaimed Reclaimed is a new series of presentations aimed at mobile handset manufacturers. In this series we explore the key social drivers of today's youth and how the mobile phone fits into their daily social lives. Reclaimed looks at how mobile phones form a composite element of daily influence, peer group interaction and social status for youth. CONTRIBUTORS GRAHAM BROWN FREDDIE BENJAMIN GHANI KUNTO

4. PROLOGUE: A story of change How did Indonesian youth lose their Social Space and what acts of Positive Deviance help them reclaim it?

5. The Disconnected Generation Jakarta – a city of 5.5 million people aged less than 30. Each one their own story. Each story one of a generation leaving their comfort zone – home towns and families - to find a better life and a better social network in a city of strangers.This is one generation’s quest to reclaim their lost Social Space and how mobile technology is a key tool in the story.

6. The Disconnected Generation 2. POSITIVE DEVIANCE 1. LOSS OF SOCIAL SPACE 3. RELCAIMED

7. The loss of social space Indonesian villagers have been practicing a tradition of mutual cooperation called gotongroyong for thousands of years. It helps create a communal space where people come together to achieve a common goal. As young people migrate to urban centers, they lose that communal space. Urban life is disjointed with a lack of space. But the innate tendency to be social drives them to seek gotongroyong in new spaces. FLICKR: DANUMURTHI MAHENDRA

8. The quest to reclaim social space When Ramadhan ends, millions of migrants take part in Mudik - a mass exodus from urban centers like Jakarta to reunite with their families. Mudik brings the migrant community together to help each other return home by collective booking of buses, trains and rented cars. The journey itself is a social space where migrants get an opportunity to reclaim the gotonroyong experience. FLICKR: JENAPH SS

9. Beachheads: 3 heroes on a quest In their search for new social spaces, 3 distinct heroes have emerged among the youth of Indonesia. Disruptive divas Cashless innovators Teenage pirates They use different tools but are united in their goal to reclaim their right to socialize with peer networks. They are the ones who drive widespread change in culture. We call them Beachheads. FLICKR: MISTER JO

10. The 3 Heroes: The 3 Drivers of Change

11. ACT I: The disruptive divas 25-29 year old Indonesian females driven by emancipation. An emerging generation of change agents.

12. Encroaching male territory The traditional image of a football fan in Indonesia is a Bonek - fanatic men with painted faces and a level of passion that nears hooliganism. In 2011, Boneks were joined by young girls at the football stands to support local and national teams. We call them Disruptive Divas. So what made them shift from a mall to a football stadium while still wearing branded apparel?

13. Disruptive Divas and Blackberry 25-29 year old females are key bridge for BlackBerry in Indonesian market

14. Freedom to hijack With economic development comes female emancipation. Disruptive Divas in Indonesia who have tasted freedom at home, school, college & workplace in the last ten years are now looking for the same in all other social spaces of everyday life. Football is one such space. Beachheads are driven to seek new social spaces and football is not the first unconventional space the divas have found and hijacked. FLICKR: UGGBOY UGGGIRL

15. FLICKR: M LOBO One man’s loss is another girl’s gain Another social space that was traditionally dominated by men but got hijacked by young Indonesian girls is BlackBerry ownership. They discovered BBM as a space to host and connect with their peer networks . Corporate men who were heavy users of BlackBerry had ignored BBM for years. Today Indonesian girls are the most influential customer segment driving BlackBerry’s growth in Indonesia.

16. FLICKR: DANIEL GIOVANNI What next for Blackberry? BlackBerry in return has focused on applications store and done very little for its beachhead of young Indonesian girls. It needs to nurture the highly influential beachhead community by co-creating new features for BBM. Beachheads have been known to abandon brands when they stop getting the required social currency. Just ask the people over at Sour Sally – an Indonesian yogurt chain.

17. Divas queue up for yogurt Sour Sally is a yogurt chain that had successfully targeted young Indonesian girls when it first started and built a beachhead community. The beachheads helped spread the good word about Sour Sally through word-of-mouth recommendations. Soon enough, large groups of Indonesian girls were lining up outside the yogurt joint! So what drove young girls to Sour Sally outlets? FLICKR: QUEENBEEDIARIES

18. It’s not the yogurt In those early days, young Indonesian girls perceived Sour Sally as a social space where they could hang out and share gossip with friends. It was more than just a yogurt outlet. Sour Sally was a space for their social networks to come together and nurture relationships with each other. Youth are social by nature. They are driven to look for spaces that allow social interactions. FLICKR: LITTLEBOWGIRL

19. Beachheads influence the mass market Sour Sally became an overnight success as its customer base grew rapidly. Young boys wanted to meet girls. Older women wanted to be seen as young girls. Sour Sally catered to the niche – young Indonesian girls – by providing them a social space. The beachheads in turn were able to attract a wide range of customers bringing Sour Sally to the masses and making the chain a success. FLICKR: TODAYSMOTHERHOOD

20. How Beachheads Work Sell to the Sold. Focus on the 10% of the market that will influence the 90% Influence(Earned Media) Beachhead Customers Marketing Focus

21. FLICKR: AVOCADOLOPHS When you forget about beachheads Sour Sally has gone from being a niche brand to an everyday yogurt seller. Their undoing was the lack of attention towards their beachhead community. The yogurt joint started catering to the mass market and lost its appeal as a social space. It became just another yogurt place. Young girls no longer saw it as their space. Remind you of someone else who has suffered the same fate?

22. Nokia’s Indonesian challenge Nokia - the biggest global handset brand has also lost touch with its beachheads. It used to be the most preferred handset among young Indonesians about ten years ago. Today it faces tough competition from BlackBerry and Apple. The reason: it has ignored its beachheads and been catering to the mass market. So who are Nokia’s beachheads and what should Nokia do? FLICKR: FRANK

23. The Indonesian Roadmap for Nokia There still is opportunity for Nokia to engage its beachhead community of 25-29 year olds. Female members within that age group need a space for their Arisans – a regular social gathering where friends and relatives exchange gossip and hold lotteries. Arisan groups offer belonging and significance to its members. Nokia should become an enabler of the Arisan tradition among Indonesian women? FLICKR: BRYAN VILLARIN FLICKR: ANITA

24. ACT II: The cashless innovators 20-24 year old males. Student lifestyle. Few resources but plenty of ideas. Significance driven by innovation not status symbols.

25. In search of social tools While divas hijack football stands, 20-24 year old men have gone after fixie bikes. They buy the oldest possible fixie bikes, paint them bright and ride around with friends. Lack of money and a constant need to explore one’s identity drives them to discover affordable social tools. We call them Cashless Innovators. So what is it that makes fixie bikes appealing to the cashless innovators? FLICKR: CYCLONESIA

26. The innovation hotspot The Innovation Hotspot lies in the intersection of 3 drivers – TIME, STATUS and DEMAND.20-24yr males occupy this hotspot. They have the TIME to explore and make mistakes, few available STATUS symbols to offer alternatives and a growing DEMAND for social tools from both numerous daily interactions and a growing sense of independence. Innovation Hotspot

27. Reclaiming the playground For cashless innovators in Indonesia, fixie bikes are an extension of childhood toys they used to bring to the playground and play with friends. They have outgrown the playground as a social space. Using fixie bikes, they have created a social space to reclaim the same sense of fun, adventure and discovery. So what drives this group of beachheads to look for new toys and playgrounds? FLICKR: THECYCLEHELL

28. Space to explore and discover Cashless innovators are constantly looking to claim social spaces where they can explore identities and discover themselves. The space needs to be affordable to fit their budgets but offer social currency by allowing them to innovate. Cashless innovators are also beachheads for two major handset brands: Sony Ericsson & Motorola. So what can the handset brands do about it? FLICKR: ADAOVERSEAS

29. Sony Ericsson Vs Motorola Sony Ericsson and Motorola need to identify their beachheads i.e. 20-24 year old men who are already using their handsets as tools to explore and discover social spaces. These beachheads will in turn help the brand win the rest of the Indonesian market. The brand that successfully activates its beachhead community will emerge successful. The other will be pushed out of the market. VS FLICKR: WARREN ROHNER & STEFANOS KOFOPOULOS

30. ACT III: The Teenage Pirates Teenage Indonesians. More time than money. Cultural Hackers

31. Hacking the wardrobe Indonesian teenagers prefer international branded clothes. But they cannot afford the latest Gucci in the malls of Jakarta. However, they can raid their parents old wardrobe for a Gucci from the bygone era which is then modified to fit their needs and they are ready to go. We call these re-designers of vintage apparel Teenage Pirates. So how are they finding new social spaces for themselves? FLICKR: RETAILTHERAPYJAKARTA

32. Bending the system Teen pirates are driven to create social spaces just as much as cashless innovators and disruptive divas. Their methods, however, tend to bend the system. This is because they are very much removed from the elements of the system – sales, marketing, and product development. Teen pirates gave us digital music (Napster) and social networking (Facebook). Should companies be afraid of them? FLICKR: USB

33. Apple Vs the Indonesian teenager It hasn’t happened yet but it’s around the corner. It will begin with older siblings and parents handing down out-of-warranty iPhones to teen family members.Unbridled by warranty restrictions and without the resources to pay for Apps or update their OS this generation will hack their way to a solution. Apple’s model is built on control but teens see the world differently. Apple’s troubles have yet to manifest fully in Indonesia. Pressure

34. Grassroots innovators Teenage pirates don’t understand design and technology. But they understand their own needs and that of their social networks better than anyone. As grassroots innovators, they search for tools to fulfill that need and create a social space. Companies need to help them find the right tools. One company that should partner with teenage pirates in creating social spaces is Apple. FLICKR: UNCLE CAPUNG

35. iPhone is the new treasure chest The biggest challenge for Apple in the Indonesian market will be teenagers jailbreakingiPhones handed down to them by their parents. For them, the iPhone is equivalent to a treasure chest. They need to break it open to see what they can get. Apple needs to involve teen pirates in the product development and marketing process to find out what apps they need so that they won’t have to jailbreak. FLICKR: MARC FLORES

36. EPILOGUE: A change in mindset “The way you see the problem is the problem” - Einstein

37. Apply social thinking VS SOCIAL THINKING BIG IDEA THINKING

38. Are you facilitating dialogue? Young beachheads in Indonesia are already talking to each other about their passions and values. Earned media is when your brand facilitates the on-going dialogue between young people instead of interrupting it. This leads to sustained growth in revenues and margins for your product. DIALOGUE SALES EARNED MEDIA

39. Earned media drives handset sales What influences youth smartphone sales? Paid Vs Earned Media Indonesian youth smart phone sales driven by Earned Media

40. Next steps - Indonesian handset brands

41. Beachheads make brands profitable Our new metric, SMART Index, measures Beachhead activity for each handset brand and shows its relation to brand profits SMART INDEX 60% BlackBerry Apple Samsung Sony Ericsson Motorola CHANGE IN SHARE OF MARKET PROFIT -60% 60% Handset brands that have successfully increased their SMART scores have also seen an increase in their share of market profit as a % share. For example, Apple’s SMART index recommendation score for youth has increased nearly 50% while its share of total markets has increased nearly 50% Nokia Source: mobileYouth 2011 -60%

42. Find out more about beachheads BRAND HEAT MAPS BRAND RANKINGS BRAND BEACHHEADS A CROSS CULTURE STUDY ON THE EFFECTIVENESS OF BRAND BEACHHEADS AND HOW THEY AFFECT FUTURE PROFIT FOR MOBILE BRANDS LIKE BLACKBERRY, NOKIA, APPLE, SONY ERICSSON, SAMSUNG & MOTOROLA HTTP://WWW.MOBILEYOUTHREPORT.COM

43. Download this presentation Find out how http://www.MobileYouthReport.com/Reclaimed Reclaimed is a new series of presentations aimed at mobile handset manufacturers. In this series we explore the key social drivers of today's youth and how the mobile phone fits into their daily social lives. Reclaimed looks at how mobile phones form a composite element of daily influence, peer group interaction and social status for youth. CONTRIBUTORS GRAHAM BROWN FREDDIE BENJAMIN GHANI KUNTO