getmobile’s business model

getmobile operates as a direct marketing company selling primarily via the internet and TV advertising.

Its retail business is based on the sale of a mobile phone contract or contracts and bundle of attractive consumer goods to the end user at nil up front cost to them. For example getmobile’s bestselling bundle in 2007 was a petrol scooter plus 2 mobile phone contracts and -phones for free. The attraction of these bundles is enhanced by getmobile’s ability to deliver the product to the customers’ location of choice and to handle the associated bureaucracy (ID checks etc) as part of its delivery process.
 
getmobile does not own or operate physical stores, warehousing is carried out by an associated company in which it currently has a minority stake. Logistics and in bound call centre activity are outsourced. Media acquisition is handled by getonTV GmbH a wholly owned subsidiary which also supplies third party customers.
 
In the earlier years of its operation getmobile developed a sophisticated proprietary software platform which integrated its systems and logistics with those of the network operators and service providers own operations enabling immediate credit checks and facilitating the activation of SIM cards. The system continues to be updated and developed.
 
As a significant purchaser of mobile phone handsets from manufacturers and distributors to satisfy customer contracts getmobile has developed a substantial level of sales of handsets to third parties operating in the German market.

Management’s current strategic focus is on

  • Further growing getmobile’s presence on the internet channels with new web stores to be launched combined with search engin optimisation
  • Leveraging the opportunities presented by our TV Audience

The getmobile.de and preiswerthandy.de internet brands already have high customer recognition beeing among the most known brands. In Germany the getmobile brand awareness has risen to 6% on a non supported basis and 40% on a supported basis (Goldmedia study 2007).

As a significant proportion of getmobile’s TV audience may not be prepared to buy from a direct marketer and would prefer to buy from a retail store we have started to offer smaller mobile phone retailers the capacity to sell our bundles of a mobile phone and consumer contracts on the back of our TV advertising in October 2008 without cannibalising our own sales.