Hutchison Whampoa Limited

Hong Kong, 10 March 2003 - An independent study conducted by Visa International and Hutchison Telecom reveals the popularity and success of mobile-based marketing campaigns in Hong Kong. According to the survey results, mobile-based promotions have successfully generated high level of recall rate, brand awareness and redemption rate. Overall, consumers express that wireless marketing enhance their emotions and lifestyles.

Among the study findings, the following illustrate favorable feedback on mobile-based promotions:

• A significant 79% of consumers who participated in mobile-based promotions were able to recall the promotions.
• Consumers who are exposed to wireless marketing are up to 53% more inclined to patronize the advertise merchants.
• Over 50% of consumers who received m-coupons redeemed the offers intentionally.
• Consumers have about 30% higher brand awareness of mobile phone promotions than radio, leaflet and email forms of delivery.
• 73% of OrangeClub members surveyed expressed interest in location-based service.

Other highlights include:

Convenience and attractiveness of offers are top motivators

The study reveals that convenience and attractiveness of offers are important factors affecting coupon holders' desires to redeem their coupons. When asked what motivates them to redeem or download the offers sent to them on their mobile phones, 75% of respondents ranked convenience as the primary driver while 65% considered the attractiveness of the offers as an important driver.

Familiarity determines choice of delivery mechanism

The study also shows that consumers' preference for either a push or pull delivery of m-coupons largely correlates to their trust and familiarity of their mobile operator. Sixty-one percent of Hutchison's OrangeClub mobile subscribers prefer to have the marketing offers to be automatically 'pushed' to their phones while 45% of non-OrangeClub subscribers prefer the push method. Experience is a strong influencer of user acceptance. Once the consumers have tried m-coupons, they are receptive to further services such as location-based offers.

Mark Burbidge, Senior Vice President and General Manager, e-Visa, Visa Asia Pacific said, "We are certainly thrilled by the high consumer acceptance and appeal of wireless marketing. In Asia Pacific, high mobile penetration rates, and the increasing reach and richness of telecom services are contributing to the interest in using the mobile phone as a consumer marketing and payment channel. Our experiences have shown that the mobile phone has a high potential for everyday commerce. The survey shows that 86% of consumers preferred using Visa for mobile marketing payment. As the market leader and preferred payment brand, we will continue to advance and shape mobile services for the benefit of our members, merchants and cardholders."

Agnes Nardi, Managing Director of Hutchison Telecom, said, "It is encouraging to see from this survey that mobile-based marketing is well received by Hong Kong mobile users. Projecting this into future mobile marketing development, we believe that the response will be even better. With the introduction of 3G mobile multimedia services, m-coupon will offer mobile users a new wonderful experience when they can view the products via their 3G mobile handsets before making a purchase decision. Colorful m-coupons incorporating voice, image and video can certainly arouse greater user interest. The success of m-coupon will help further promote m-shopping in Hong Kong."

The study covers joint marketing campaigns launched by Visa International and Hutchison Telecom in which Orange users who possess a Visa card can download or receive m-coupons in the form of SMS or MMS via their handsets. The m-coupons can then be used for redemption at a range of participating merchants who provide special offers and discounts for entertainment, shopping and dining. To date, the campaign has attracted about 100 merchants. Six hundred consumers were asked questions that evaluate the effectiveness, attractiveness and the potential of mobile-based marketing service. An equal split of male and female, Orange and non-OrangeClub subscribers, aged 18-35 participated in this survey.

Visa has been leading the payments industry in developing standards and technologies to promote mobile commerce, from proximity specifications to wireless payments. Through these advances, Visa member banks will be able to offer Visa cardholders the ability to use mobile devices to securely purchase products and services. This is a key element of Visa's wider vision of u-commerce, the ability to offer consumers access to a broad range of services and products using Visa - anytime, anywhere, anyway, through the device of their choice.

Hutchison Telecom is the largest mobile operator in Hong Kong, providing superb network quality and innovative services, with a leadership position in 2.5G wireless data market. The Company is now forging ahead towards 3G mobile communications as an integral part of the Hutchison Whampoa Group's global 3G footprint. It is firmly committed to building a world-class 3G network to provide a full range of compelling multimedia services in Hong Kong.

Visa International

Visa is the world's leading payment brand with more than one billion cards in circulation worldwide. Visa-branded cards are used to purchase over US$2.4 trillion worth of goods and services every year and are accepted at more than 30 million merchant locations and over 810,000 ATMs in more than 150 countries. Visa is a leader in Internet based payments and is pioneering the creation of universal commerce - the ability to conduct commerce anywhere, anytime, and anyway.

Visa Hong Kong

In Hong Kong, there are currently about 7 million Visa cards in circulation, generating a card sales volume of US$13 billion. Visa cards are accepted at over 81,400 merchant outlets in Hong Kong. Visa Hong Kong's Internet address is www.visa.com.hk

Hutchison Telecommunications (Hong Kong) Limited

Hutchison Telecommunications (Hong Kong) Limited ("Hutchison Telecom") is the operating unit for managing Hutchison Whampoa Group's wireless communications operations in Hong Kong, Macau and Mainland China. Hutchison Telecom is the largest mobile operator in Hong Kong, providing superior GSM Dualband and CDMA services with superb network quality and the widest international roaming coverage under the "Orange" brand. With the award of a 3G license in Hong Kong in October 2001, the Company is currently developing a world-class 3G network in Hong Kong and extending its 2G/2.5G technical and service excellence into the 3G era. Hutchison Telecom forms an integral part of Hutchison Whampoa Group's global 3G footprint with a vision to lead Hong Kong to stay at the forefront of the mobile multimedia arena. For more information about Hutchison Telecom, please visit the Company's website at www.orangehk.com.

For more information, please contact:

Donald Cheung
Director, Corporate Communications, Greater China Region
Visa International
Tel: (852) 2842 2320
Email: dcheung@visa.com

Frances Ng
Public Relations Department
Hutchison Telecommunications (Hong Kong) Limited
Tel: (852) 2128 6739
Email: frances.ng@hthk.com

INTRODUCTION

• A survey on mobile-based marketing campaigns was conducted by DN Acorn Research, appointed by Visa International.

OBJECTIVES

• To evaluate the effectiveness, consumer behaviour and market potential of mobile-based promotions

SAMPLE SIZE & CHARACTERISTICS

• 600 mobile users, 300 being Hutchison Telecom's OrangeClub members
• equal split of male and female
• aged 18 to 35

SURVEY METHOD

Over the phone

FINDINGS

A. Awareness of Promotions

• 79% of consumers who participated in mobile-based promotions were able to recall the promotions
• 51% of consumers who received m-coupons redeemed the offers intentionally
• higher awareness of mobile-based promotions, at 75%, when compared with:

  radio - 57%
  email - 53%
  leaflet - 51%

B. Incentives to Download M-coupons

interest in merchants -	57%
interest in offers -	51%

C. Motivators to Redeem Offers

1. Convenience

coupon portability -	75%
download convenience -	73%

2. Attractiveness

a novel way to enjoy offers -	65%
more & better discounts -	57%

D. Brand Awareness

• A higher degree of patronage, up to 53%, was recorded for consumers exposed to mobile-based promotions

E. Interest in location-based marketing

OrangeClub members -	73%
Non OrangeClub members -	57%

CONCLUSION

According to the above survey results, mobile-based promotion as a new marketing initiative is successful and popular among consumers. High levels of recall rate, brand awareness and redemption rate were generated. Mobile-based promotion sees great potential in view of the high penetration of mobile phones in Hong Kong.

Under the mobile-based promotions by Hutchison Telecom and Visa International, Orange users, who possess a Visa card, can download or receive m-coupons in the form of SMS or MMS via their handsets. They can use the m-coupons to redeem special offers or discounts for entertainment, shopping and dinning at designated merchants.

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