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The International Journal of Case Studies in Management is published on-line (www.hec.ca/revuedecas/en), ISSN 1911-2599.
This case is intended to be used as the framework for an educational discussion and does not imply any judgement on the
administrative situation presented. Deposited under number 9 40 2012 018 with the HEC Montréal Case Centre, 3000, chemin de
la Côte-Sainte-Catherine, Montréal (Québec) Canada H3T 2A7.
Volume 10
Issue 3
September 2012
Proud to Be Distinctively Different: Peter Bonac and His Mobiado
Luxury Mobile Venture
Case prepared by Professor Ken Kwong-Kay WONG1
Introduction
It all comes down to risk and return, and I want to do things on my own.
– Peter Bonac
Mobiado’s founder and CEO, Peter Bonac, was delighted. After six months of hard work, his
Vancouver-based luxury mobile phone company announced on April 5, 2011 that it would
collaborate with Aston Martin to launch a special edition of the Mobiado phone. “There is a good
fit between the two brands,” said Bonac. “Like Aston Martin, Mobiado prides itself on design
innovation and technological excellence.”2, 3 This brand licensing agreement caught the attention
of industry players because Mobiado is a small market entrant. Unlike Vertu, which is financially
supported by Nokia, the world’s largest telecommunications equipment maker, Mobiado was
founded in 2004 by a 28-year-old Engineering Physics graduate using his own savings.4 Without
a strong financial background and a long history in business, signing a global licensing deal with
a British luxury sports car brand was a milestone for Bonac, a Canadian entrepreneur who had
aimed to do things differently from the beginning.
1 Ken Kwong-Kay WONG is an Assistant Professor of Retail Management at Ryerson University, Canada.
2 Aston Martin, “Mobiado Brand Licensing Agreement,” Press Release, April 5, 2011,
http://www.astonmartin.com/thecompany/news?a=57fd0e4e-50fc-42a0-90a2-d0a01afe8c08, accessed April 20, 2011.
3 Mobiado, “Aston Martin Set to Launch with Luxury Phone Partner Mobiado,” Press Release, March 23, 2011,
http://www.mobiado.com/PRESS_RELEASE_Aston_Martin.pdf, accessed April 17, 2011.
4 Unless otherwise mentioned, the information presented in this case study was obtained during an interview with Peter Bonac
conducted by the author at Daly’s restaurant at The Westin Ottawa, Canada on April 13, 2011.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 2
Origin of Mobiado
You need to learn the manufacturing process in order to design things.
– Peter Bonac
Bonac Innovation Corporation turned profitable soon after. These successes were driven
by the fact that Bonac had produced a very unique product in the market: the world’s first
mobile phone produced through Computer Numerically Controlled (CNC) machining
from aircraft aluminum.1 Bonac decided to brand his luxury mobile phone the
“Mobiado,” a conversion of the word “mobile” to give it a European flare reflecting his
background and family heritage. His desire to produce the finest and most
technologically advanced telecommunication product did not happen overnight. The
origin of Mobiado could be traced back to the late 1990s, when Bonac was still a student
at the University of British Columbia (UBC). He studied Engineering Physics with a
specialty in mechanical engineering, a niche field that usually attracted about 30 students
to a class. At UBC, Bonac was exposed to a variety of mechanical engineering
techniques. He developed a strong interest in design and participated in several
interesting school projects with his classmates during the fourth and fifth years of
undergraduate study.
As the son of a wood engineer who operated his own machine shop, Bonac had been
given the opportunity to learn about various CNC machining techniques from his father.
The process of turning a simple-looking aluminum block into sophisticated
manufacturing parts excited him. During his fourth year of undergraduate study, Bonac
was working on a project on chip recycling. He had an idea to design a product that
would help machine shops recycle aluminum waste chips and reduce harmful chemicals
during the recycling process. Working with his classmates Jeffrey Chang, Vincent
Kwong, David Moffat and Craig Wilkinson, Bonac’s concept was brought to life. Their
design was so appealing that it won not only the first prize in the PATSCAN
Environmental Innovation Contest, but also the Molson Prize for best recycling concept
in 1997.2 The success of these school projects encouraged Bonac to become a great
designer. After graduating from UBC, he did a brief stint at his father’s machine shop to
sharpen his mechanical engineering skills. In the late 1990s, Nokia’s launch of a luxury
mobile brand called Vertu caught Bonac’s attention. Sensing a great market opportunity,
he became interested in the luxury mobile phone market. His desire to develop innovative
design and become distinctively different from others led him to establish Bonac
Innovation Corporation in Vancouver. Acting swiftly to enter the market, Bonac
launched his first product, the Mobiado Professional, in 2004. Mobiado became the
world’s second commercially available luxury mobile phone brand after Vertu (see
Appendix 1 for Luxury Mobile Phone Launch Timeline).
1 Mobiado, “About,” Inside Mobiado, 2011, http://www.mobiado.com/Inside_mobiado.htm, accessed April 19, 2011.
2 Stephen Forgacs, “Students solve waste problem inexpensively,” UBC Reports, April 3, 1997,
http://www.publicaffairs.ubc.ca/ubcreports/1997/97apr03/chips.html, accessed April 28, 2011.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 3
Market Overview
In the luxury mobile phone business, you develop great external
around current or even obsolete internal. – Peter Bonac
In the years since the first mobile phone was commercially launched in 1983, it had
evolved quite a bit.1 The mobile phone had become smaller, lighter and more
fashionable, and it was no longer merely a business communication device. Although a
few jewellers started to decorate their clients’ mobile phones with diamonds and precious
stones in the 1990s,2 the commercial luxury mobile phone sector did not really exist until
Vertu launched its £5,350+ Signature series in 2002.3 In addition to Vertu, companies
such as Mobiado, GoldVish, GRESSO, Givori and Aesir subsequently entered the market
to target the urban rich who are willing to spend a fortune on their mobile phones (see
Appendix 2 for Mobiado Competitive Matrix).
High-end fashion brands such as Christian Dior, Giorgio Armani, Prada and Versace also
took advantage of this niche market by launching their own luxury mobile phones via
brand extension.4, 5, 6 A premium wristwatch maker, TAG Heuer, introduced a luxury
mobile phone with the help of a Customized Design Manufacturer (CDM) called
ModeLabs in France.7 The market is a small yet highly lucrative one; famous designers
such as Peter Aloisson8 and Stuart Hughes9 are well known for their phone customization
customization service, helping clients to decorate their mobile phones with diamonds and
gold. Institutional investors were also betting on the market by funding start-ups such as
Celsius X VI III of France. “The intersection between technology and luxury is one of
our investment themes in the coming years,” said Olivier Sichel, a partner at venture
capital firm Sofinnova, “We are well placed to capitalise on this trend.”10 The luxury
mobile phone market has grown rapidly not only in the oil-rich Middle East region, but
1 “Motorola DynaTAC 8000x,” Retro Brick, http://www.retrobrick.com/moto8000.html , accessed April 2011.
2 BBC, “When a phone call is a luxury,” BBC News – Sci/Tech, January 23, 2002,
http://news.bbc.co.uk/2/hi/science/nature/1775496.stm, accessed April 2011.
3 Guinness World Records, “Most expensive mobile phone (cell phone) series,” Telecommunications – Mobile phones,
2002, http://www.guinnessworldrecords.com/search/Details/Most-expensive-mobile-phone-(cell-phone)-
series/63638.htm, (broken link) accessed April 2011.
4 Modelabs, “Diorphone,” Press Release, 2008.
5 Modelabs, “Versace teams up with ModeLabs Group to create and distribute its first luxury mobile phone,” Press
Release, January 19, 2010, http://ww2.modelabs.com/download/ARTICLES/EN/Versace_ModeLabs_UK.pdf,
accessed April 2011.
6 Modelabs, “Signature d’un contrat de licence mondial avec LACOSTE S.A pour le développement d’une gamme de
téléphones mobiles,” Press Release, June 15, 2009,
http://ww2.modelabs.com/download/ARTICLES/FR/CPAnnoncelicenceLacosteDE.VF.pdf, accessed April 2011.
7 Modelabs, “Modelabs Group et Tag Heuer signent un contrat de licence mondiale exclusive pour la création et la
distribution d’une gamme de téléphones mobiles sur mesure,” Press Release, November 26, 2007,
http://www.modelabs.com/download/cp_presse/fr/cp_tagheuer_creation_gamme.pdf, accessed April 2011.
8 Peter Aloisson, “Pictures and Biography,” 2007, http://www.aloisson.com/peter+aloisson.html, accessed April 2011.
9 Stuart Hughes, “Diamond Nokia e71,” Luxury Mobile Phones,
http://stuarthughes.com/newdawn/product_info.php?products_id=40, accessed January 17, 2012.
10 Leila Abboud, “Corrected – Start-up Gets Backing for Luxury Mobile Venture,” Press Release, January 21, 2010,
http://www.reuters.com/article/2010/01/21/celsius-idUSLDE60J29C20100121, accessed April 2011.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 4
also in emerging markets such as Russia, China, and Vietnam. In 2009, the annual sales
revenues of the global luxury mobile phone market had reached US$11 billion.1 Vertu,
the pioneer and leader of this market, sold about 300,000 phones from 2002 to 2010.2
Beginning the Mobiado Journey
From day one it has always been Mobiado’s goal to make a phone
that is unique and to use innovative manufacturing techniques to
build a superior, quality product. – Peter Bonac3
Unlike typical start-ups that rely on angel financing, bank loans, or investment from
family members, Bonac Innovation Corporation was funded by Peter Bonac himself
using his own savings. “I was very lucky to become profitable soon after launching the
first Mobiado phone to the market,” said Bonac, “My phone was unique at that time and
distributors around the world came to seek my products.”
When other luxury phone makers were busy encrusting their phones with precious
materials such as diamonds and gold, Bonac took a different approach to differentiate his
phones from the crowd. The Mobiado phones did not share any “bling-bling effects” like
others. Instead, Bonac focused on innovative design, superior craftsmanship and
advanced production processes to differentiate his Mobiado phones. CNC machining, a
production process that Mobiado is famous for, is the same technology used by aerospace
and car racing industries for producing parts with precision up to 0.001mm.4 Bonac’s
insistence at being unique had paid off. He achieved a few world firsts, including the use
of exotic wood, mother-of-pearl, meteorite and mechanical watch pieces for phone
production (see Appendix 3 for Mobiado Product Highlights).
Filling a Pricing Gap
The general public often perceives the luxury mobile phone as a very expensive item that
most cannot afford. This is not surprising considering that GoldVish’s Le Million Piece
Unique5 and Peter Aloisson’s diamond-encrusted smartphone6 sold at over US$1 million
million each. According to Bonac, his phones are priced strategically to fill a pricing gap.
1 “Luxury Brands Aim for Multi-Billion Dollar Revenues from the Mobile Handset Market,” ABI Research, August 5,
2008.
2 Marshall Heyman, “A Cellphone With a $7,900 Price Tag,” The Wall Street Journal, October 22, 2010,
http://online.wsj.com/article/SB10001424052702304023804575566502752294876.html, accessed April 2011.
3 Mobiado, “CNC Machining,” Inside Mobiado, http://www.mobiado.com/Inside_mobiado_manufacuring.htm,
accessed April 2011.
4 Ibid.
5 Guinness World Records, “Most expensive mobile phone (cell phone),” Arts and Media – Valuable Items – Retail
prices, 2006, http://www.guinnessworldrecords.com/world-records/1000/most-expensive-mobile-phone-(cell-phone),
accessed April 2011.
6 Aloisson.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Mass-produced mobile phones are usually sold for a few hundred dollars (excluding
wireless carrier subsidies) while an entry-level Vertu phone begins at US$5,000; this
creates a price gap that Mobiado can take advantage of. The first Mobiado phone was
priced at US$1,200 before tax and it was well received by the market. The current
product line of Mobiado phones is priced in the US$2,000 to US$5,000 range, with the
exception of some top models such as the 105GMT Gold, whose selling price is around
US$10,000. The relatively affordable price point, together with the fact that most
Mobiado phones are produced in limited editions, made Bonac’s creation a highly
sought-after product in the market.
Satisfying Demanding Customers
Defined by its distinctive straight lines, perfectly flat surfaces, and
circular buttons, Mobiado phones are regarded as an icon of
modernism. – Mobiado1
To a certain extent, Mobiado is competing in a totally different segment of the luxury
mobile phone market. While GoldVish targets the ultra-luxurious customers who like to
be admired with their diamond-encrusted phones, and Vertu targets the high-profile
celebrities and busy professionals, Mobiado targets those who simply want to stand out
from the crowd with a unique phone. “People who buy my phones are repeat customers
mainly in the 25 to 45 age group,” said Bonac. “They appreciate our engineering
excellence and view Mobiado as a piece of modern art. The fact that our mobile phones
are ‘Made in Canada’ also appealed to them” (see Appendix 4 for Mobiado Product
Portfolio).
Mobiado follows the approach of other luxury mobile phone manufacturers by acting as a
packager, making mobile phones with commercially available wireless chipsets and
circuit boards. Mobiado phones are often produced in limited quantity, with just a few
hundred units made over the product life cycle. The phone’s external metal frame is
uniquely designed by Bonac and individually handcrafted in Mobiado’s workshop in
Vancouver, while the internal electronic parts that cannot be made locally are sourced
from overseas suppliers. The phone’s software is customized to reflect the Mobiado
branding elements.
Bonac pays careful attention to quality control and product design. “The way people look
at your brand is all about the quality. Our customers are extremely picky,” said Bonac.
When asked if Mobiado should launch phones with stitched leather like those of
GoldVish and Vertu, he replied “No” confidently and without any hesitation. “I’m not
interested in copying others. My Mobiado phones are unique and my customers like it
that way.” It seems Bonac has figured out a successful formula and he is satisfied with
the way Mobiado is growing.
1 Mobiado, “About,” Inside Mobiado.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 6
Promoting the Mobiado Brand
If your product is different enough, they will write about it.
– Peter Bonac
With limited financial resources, Bonac made use of several marketing tactics to promote
his luxury mobile phone brand. In the early days of Mobiado, Bonac mainly promoted his
brand online. His first step was the establishment of a company website in 2004 to
showcase his mobile phone collection and design philosophy. On his site, a section titled
“mobiadoMUSEUM” was created to display his early product prototypes. To help people
better understand Mobiado’s unique CNC production process, detailed explanation and
video clips are provided on the website. Following the branding approach of its
competitors in the luxury mobile phone market, black and white colours are used for the
Mobiado livery.
Bonac maintains good relationships with 300-400 journalists who have experience in
reporting on the luxury goods market; this is often helpful in getting the word out about
his new Mobiado innovations. By distributing press releases directly to these journalists,
Bonac is able to create a “win-win” situation because the launches of his Mobiado phones
are often newsworthy. These journalists in turn write articles about Mobiado in their own
magazines, online discussion forums and blogs. For example, the announcement of
Mobiado’s concept phones in 2010 and 2011 garnered a lot of media attention because of
their unique design and the material used (see Appendix 5, Mobiado Concept Phone).
For the seven years since 2004, Bonac successfully gained free press coverage in
12 languages, in over 112 magazine articles.1
Similar to other luxury consumer brands, Bonac participated in major industry events
such as Baselworld, the Golden Globes, Art Basel Miami, and Couture Fashion Week to
promote his brand.2 These events gave Bonac the opportunity to promote his products
and express the Mobiado brand values (see Appendix 6). In addition, Bonac also made
use of other marketing tactics, such as product placement, to promote his brand. In 2011,
his phone was seen on CBS’ popular TV series CSI: NY and this became a hot topic for
discussion among Bonac’s fans on Facebook (see Appendix 7 for Product Placement on
TV).
Presence on Social Media
To build a successful brand, it takes a lot of time and money.
– Peter Bonac
1 Mobiado, “In the Press,” Inside Mobiado, http://www.mobiado.com/inside_mobiado_in_the_press.htm, accessed
April 2011.
2 Mobiado, “Events,” Inside Mobiado, http://www.mobiado.com/Inside_mobiado_events_golden_globes.htm,
accessed April 2011.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Social media users engage in a wide range of online activities such as blogging (e.g.,
Wordpress), microblogging (e.g., Twitter), media sharing (e.g., YouTube), news
aggregation (e.g., Digg), social bookmarking (e.g., Delicious), and social networking
(e.g., Facebook). Prior study has shown that having a presence in the social media not
only helps companies to reduce marketing expenses, but also increases their sales leads
due to higher visibility on search engines.1 Through the use of the “Like” button on social
networking platforms and the “re-tweeting” function on micro-blogging services, product
information can be distributed to hundreds, if not thousands, of people in a matter of
seconds. With the increasing presence and global acceptance of social media, many
organizations have established Facebook and Twitter accounts to better interact with their
customers.
Although Bonac relied heavily on the Internet to promote his brand, the company has not
actively participated in the social media world and there is no discussion forum or blog
available on Mobiado’s company website. Sensing a need to build a better relationship
with his customers and friends, Bonac set up an official YouTube channel,2 Facebook
page,3 and Twitter account4 for his Mobiado brand in January 2012, approximately a year
after its rival Vertu established the same (see Appendix 8 for Mobiado’s Social Media
Presence).
Channel Development
A good advertisement for Russia may look terrible in France. Let
the distributors do their job to market the products in their region.
– Peter Bonac
Mobiado’s luxury mobile phones can be sourced not only directly from its Vancouver
head office, but also through Mobiado’s exclusive distributors around the world. By
2012, Bonac had established distribution agreements with companies in 12 countries. All
of these distributors operate on an “exclusive” basis, meaning that they are responsible
for all sales and marketing initiatives within a particular country or region. Some of these
distributors work with upscale retail stores to promote the phones, while a handful of
them operate Mobiado-branded boutiques themselves. As of February 2012, there were
two Mobiado boutiques in Russia (Moscow and Ekaterinburg), one in Vietnam (Hanoi)
and two in China (Beijing and Kunming)5 (see Appendix 9 for Mobiado Boutiques).
Bonac firmly believes that his distributors in foreign countries are the people who know
the market the best. For example, his entry into the fast-growing Chinese market was
1 “The Global Social Media Check-up,”
www.burson-marsteller.com/Innovation_and_insights/blogs_and_podcasts/BM_Blog/Documents/Burson-
Marsteller%202010%20Global%20Social%20Media%20Check-up%20white%20paper.pdf.
2 See http://www.youtube.com/mobiadoHQ.
3 See http://www.facebook.com/mobiado.
4 See http://twitter.com/mobiado.
5 Mobiado, “Distributors,” http://www.mobiado.com/distributors.htm, accessed April 2011.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 8
made possible in 2010 with the help of his distributor, Shanghai Qi-Hao Industrial
Company. By partnering with a Chinese company that is well known for having
marketing expertise in serving the high net worth individual (HNWI) market, Bonac was
able to get his products mentioned in 13 Chinese magazines,1 giving Mobiado a good
start for its entry into China.
Creating trust with channel partners is essential to growing one’s business. Bonac
empowers his distributors to come up with proposals on sales and marketing initiatives.
His distributors are responsible for developing creative briefs, choosing the media outlets
for advertisement, and organizing local sales events. The distributors also look after the
interior design, site selection, and day-to-day operation of the Mobiado boutiques. Bonac
maintains a good relationship with the distributors and lets them participate in key
decision-making. In order to maintain a consistent global image for the Mobiado brand,
Bonac is ultimately responsible for approving all sales and marketing materials before
they go out the door.
Combatting the Counterfeiters
Only qualified experts from Mobiado company after detailed
phone’s analysis can find out that this model is a replica. Nobody
else will know about your small secret.
– An online store promoting fake Mobiado phones2
The counterfeit mobile phone market has proliferated in recent years, increasing from
37 million units in 2005 to 145 million in 2009. According to research firm IHS/iSuppli,
replica phones amount to approximately 12.9% of legitimate mobile phone shipments
worldwide.3 Despite efforts made by the Chinese government to crack down on these
illegal manufacturers, the counterfeit market is estimated to be growing at an
unprecedented rate, reaching 225 million units in 2011.4 Contrary to belief, replica
phones are no longer cheap plastic phones that can be distinguished from the real ones
easily. On the Internet, one can find fake Mobiado phones selling for just a few hundred
dollars. Many of these phones carry the official Mobiado logo, personal serial numbers,
and unique IMEI phone identification codes.5 Some even have the exact same
1 Mobiado, “http://www.mobiado.com/inside_mobiado_in_the_press.htm,” Inside Mobiado – In the Press, accessed
January 30, 2012.
2 Mobiluxury.com, “Mobiado Professional 105GMT Antique Hi-End replica,”
http://mobiluxury.com/index.php?productID=121, (broken link) accessed April 2011.
3 Kevin Wang, “Cell Phone Industry’s Dirty Little Secret: China’s 145 Million Unit Gray Market,” November 3, 2009,
http://www.isuppli.com/China-Electronics-Supply-Chain/News/Pages/Cell-Phone-Industrys-Dirty-Little-Secret-
Chinas-145-Million-Unit-Gray-Market.aspx, accessed April 2011
4 Kevin Wang, “China Gray-Market Cell Phone Shipments Slow in 2011,” December 16, 2010,
http://www.isuppli.com/China-Electronics-Supply-Chain/News/Pages/China-Gray-Market-Cell-Phone-Shipments-
Slow-in-2011.aspx, accessed April 2011.
5 Luxmobiles.com, “Mobiado Professional 105EM Red,” Mobiado Professional replica,
http://www.luxmobiles.com/index.php?productID=396, (broken link) accessed April 2011.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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dimensions and weight as the genuine Mobiado phone.1 “We offer the finest quality
Mobiado replica mobile phones at an affordable price. Our Mobiado replicas feature 99%
original markings and are carefully crafted by our engineers in our factory,” claimed one
of the Mobiado sellers.2 The counterfeiters even put up press releases to give an
appearance of legitimacy to their replica phones and online operations3 (see Appendix 10
for Mobiado Replicas).
Faced with these growing concerns, Mobiado took several measures to fight back against
the counterfeiters. First of all, with the assistance of the World Intellectual Property
Organization (WIPO), Mobiado was able to shut down a few fake Mobiado websites that
were hosted in China. Second, Mobiado adopted the VeroPass online service in 2010 to
help users verify the authenticity of their Mobiado phones.4 “With VeroPass, a user is
required to enter the phone’s IMEI number and also a serial number, as found in the
Mobiado package, during the product registration process,” said Bonac. “This solution
helps us to identify the problematic geographic area immediately, so that appropriate
investigation and legal actions can be taken” (see Appendix 11 for VeroPass).
Furthermore, Bonac launched a new Mobiado logo in 2011 as a means to increase
production costs for counterfeiters5 (see Appendix 12 for Mobiado Logo).
Partnership with Aston Martin
Like Aston Martin, Mobiado prides itself on design innovation and
technological excellence. – Peter Bonac6
The year 2010 marked the beginning of a business partnership between Mobiado and
Aston Martin, a luxury sports car manufacturer based in the United Kingdom.
Appreciating the unique design of Mobiado mobile phones, a licensing agent of Aston
Martin approached Bonac in late 2010 to see if he was interested in becoming an Aston
Martin brand licensee. “There is a very good match between the two brands,” said Bonac.
After nearly six months of back-and-forth negotiation, a licensing deal was finally inked
allowing Bonac to design some exciting phones with Aston Martin. The first co-branded
product, a QWERTY-type smartphone called “Grand 350 Aston Martin” was launched in
1 Luxmobiles.com, “Mobiado Professional 105EM White,” Mobiado Professional replica,
http://www.luxmobiles.com/index.php?productID=397, (broken link) accessed April 2011.
2 Mobiado Replicas, "Shopping SEO Directory", http://directory.owntruth.com/shopping/Mobiado-Replicas-
l16356.html, accessed January 17, 2012.
3 Sergio B, “Mobiado – Buy replica Mobiado phones,” Luxurious Press Release, February 26, 2010, http://www.free-
press-release.com/news-mobiado-buy-replica-mobiado-phones-1267162912.html, accessed April 2011.
4 Mobiado, “veroPass authentication website gives Mobiado complete control over counterfeiting issues,” Press
Release, April 15, 2010, http://www.mobiado.com/application_story%20VEROPASS.pdf, accessed April 2011
5 Mobiado, “Mobiado Unveils New Logo. – Tradition Continues,” Press Release, June 27, 2011,
http://www.mobiado.com/press_release%20New%20Logo.pdf, accessed January 19, 2012.
6 Mobiado, “Aston Martin Set to Launch with Luxury Phone Partner Mobiado,” Press Release, March 23, 2011,
http://www.mobiado.com/PRESS_RELEASE_Aston_Martin.pdf, accessed April 2011.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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August 20111 (see Appendix 13 for The Aston Martin Collection). This product
generated a lot of interest among journalists, and the product received wide press
coverage. Subsequent models on the road map include a touch-screen smartphone and a
bar-type feature phone. These co-branded products were planned for a global launch in
2012.
The Fight to Stay on Top
As an entrepreneur, Bonac’s ability to convert the Mobiado concept into reality can be
considered a great achievement, particularly given the high rate of failure of start-up
companies in general.2 However, these successes did not come easily. Although the
global economic downturn of 2008-2010 had little impact on Bonac’s luxury mobile
phone business, and he was busy keeping up with the demand for his phones, competition
has intensified as other high-profile brands have entered this fast-growing market. As
Mobiado’s spokesperson, Bonac spends a significant amount of time attending trade
shows and meeting business partners across the continents. Working together with a team
of dedicated employees who share his vision, Bonac is busy designing the next Mobiado
phone, managing supplier relationships, approving creative briefs, and handling press
enquiries.
The collaboration with Aston Martin provided Bonac with a great opportunity to take his
brainchild forward in this niche luxury mobile phone market. However, deep-pocketed
luxury brands and venture capital-funded start-ups are eager to grab their share of this
lucrative market. Can Bonac handle the growing pressure without getting himself burnt in
this competitive market? Does he have the right marketing mix to take Mobiado to the
next level? How fast should Bonac scale up his business? Now is the right time for Bonac
and his team to answer these questions.
2012-08-27
1 Mobiado, “Mobiado Launches the Grand 350 Aston Martin – Power Beauty Soul,” Press Release, August 29, 2011
http://www.mobiado.com/press_release%20Grand%20350%20Aston%20Martin.pdf, accessed January 19, 2012.
2 John L. Nesheim, High Tech Start Up, Revised and Updated: The Complete Handbook for Creating Successful New
High Tech Companies, New York, Free Press, 2000.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 11
Appendix 1
Luxury Mobile Phone Launch Timeline
Source: Created for this case study
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 12
Appendix 2
Mobiado Competitive Matrix
Mobiado
Vertu
GoldVish
Gresso
Givori
Candy bar design
Yes
Yes
Yes
Yes
Yes
Fold (clam-shell)
design
No
Yes
No
No
No
QWERTY keyboard
design
Yes
Yes
No
No
Yes
Has gold-plated models
Yes
Yes
Yes
Yes
Yes
Uses crystal
Yes
Yes
Yes
Yes
Yes
Uses wood
Yes
No
No
Yes
No
Uses mechanical watch
pieces
Yes
No
Yes
Yes
No
Uses leather
No
Yes
Yes
Yes
Yes
Uses diamonds
Yes
Yes
Yes
Yes
Yes
Uses titanium
Yes
Yes
Yes
Yes
Yes
Uses ivory
No
No
No
No
Yes
Uses sea-shell
Yes
No
No
No
Yes
Uses vintage glass
No
No
No
No
Yes
Special software
applications
No
Yes
No
No
No
Online data backup
service
No
Yes
No
No
No
24/7 global concierge
service
No
Yes
No
No
No
Digital camera
Yes
No*
No
Yes
Yes
Has branded boutiques
Russia,
Vietnam,
China
90
boutiques
Switzerland,
Hong Kong,
Vietnam
No
No
Has special edition with
other luxury brand
Yes
Yes
No
No
No
Country of
manufacturing
Canada
UK
Switzerland
Unknown
UK
Distribution channels
12
countries
70
countries
12 countries
5 countries
3 countries
*except selected models
Source: Created for this case study
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Appendix 3
Mobiado Product Highlights1
Year
Mobiado Model
Product Description
2004
Professional
The world’s first CNC machined phone to be
created from aircraft aluminum
2005
Professional EM
The world’s first exotic wood phone
2007
Luminoso
The world’s first phone to use sapphire crystal
buttons and the first 3G luxury phone
2008
Professional 105ZAF
The world’s first phone to have its entire front
and back created from sapphire crystal
2008
Professional 105GMT
The world’s first mechanical watch phone
2009
Grand 350PRL
The world’s first 3.5G, full QWERTY
keyboard luxury phone, and the first phone to
use mother-of-pearl
2009
Grand 350 Pioneer
The world’s first phone to use meteorite
2010
Classic 712MG
The world’s first phone to be created from
Mokume Gane
2010
Classic 712MG Angular
Momentum Edition
The world’s first phone to incorporate verre
églomisé, as well as the first phone to be sold
with matching wristwatch
2011
Grand 350 Aston Martin
The first phone in its new Aston Martin
collection
1 Adapted from “Inside Mobiado,” http://www.mobiado.com/Inside_mobiado.htm, accessed April 2011.
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Appendix 4
Mobiado Product Portfolio1
Classic Line
Professional Line
Grand Line
Model: 712 Mokume Gane
Model: 105GMT
Model: 350PRL White
- 712ZAF
- 712GCB
- 712EM
- 712 Stealth
- 712MG
- 105ZAF
- 105EM
- 105GCB
- 105CLB
- 105 Damascus
- 105GMT
- Touch
- Touch GCB
- 350PRL
- 350 Pioneer
- 350 Aston Martin
1 Mobiado, “Mobile Collections,” http://www.mobiado.com/mobile_collections.htm, accessed January 15, 2012.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Appendix 5
Mobiado Concept Phone
Concept Phone (CPT001) – A marble-framed mobile phone designed in 2010.1
Concept Phone (CPT002) – A transparent mobile phone designed in 2011.2
1 Mobiado, “Mobiado CPT001 Concept Phone: Design in Mobility,” Press Release, April 6, 2010,
http://www.mobiado.com/press_release%20CONCEPT001.pdf, accessed January 16, 2012.
2 Mobiado, “Mobiado’s Vision of a Possible Future – The CPT002 Concept Phone: Design in Mobility,” Press
Release, April 5, 2011, http://www.mobiado.com/PRESS_RELEASE_Aston_Martin_CPT2.pdf, accessed January
16, 2012.
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Appendix 6
Events Attended by Mobiado
Mobiado at the Golden Globe Awards Week1
Mobiado at Couture Fashion Week2
1 Mobiado, “Mobiado Presents at the DPA Gift Suite: Golden Globe Awards Week,” Press Release,
http://www.mobiado.com/Golden_Globe_2011.pdf, accessed January 17, 2012.
2 Mobiado, “Couture Fashion Week,” Inside Mobiado,
http://www.mobiado.com/Inside_mobiado_events_couture_fashion_week.htm, accessed January 17, 2012.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Appendix 7
Product Placement on TV1
1 Peter Bonac, “Mobiado in TV series CSI: NY,” Facebook Photo, January 17, 2012,
https://www.facebook.com/media/set/?set=a.10150587133115616.441489.523205615&type=1, accessed January 19,
2012.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Appendix 8
Mobiado’s Social Media Presence
Official Mobiado Facebook Page1
Official Mobiado YouTube Channel2
Official Mobiado Twitter Page3
1 See http://www.facebook.com/mobiado.
2 See http://www.youtube.com/mobiadoHQ.
3 See http://twitter.com/mobiado.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Appendix 9
Mobiado Boutiques
Mobiado Boutique in Moscow, Russia1
Mobiado Boutique in Beijing, China2
Mobiado Boutique in Kunming, China3
1 Mobiado, “Canadian company Mobiado opens its first boutique in Russia,” Press Release,
http://www.mobiado.com/press_release%20July23rd08.pdf, accessed April 2011.
2 Peter Bonac’s official Facebook page, “Mobiado – China Boutique and SIS,”
https://www.facebook.com/media/set/?set=a.10150573979500616.439472.523205615&type=1, accessed January 17,
2012.
3 Ibid.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
© HEC Montréal 20
Appendix 10
Mobiado Replicas
Fake Mobiado GrandTouch with missing sapphire crystal at the corner.1
Online seller promoting a wide range of fake Mobiado phones.2
1 See http://www.vertureplica24.com.
2 DTBAK Industrial, “Mobiado Cell Phones,” http://www.taobaoauction.com, accessed January 17, 2012.
Proud to Be Distinctively Different: Peter Bonac and His Mobiado Luxury Mobile Venture
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Appendix 11
VeroPass
VeroPass authentication key that comes with a Mobiado package.1
VeroPass online authentication system.2
1 NDHMoney, “Mobiado công bố giải pháp Veropass,” http://ndhmoney.vn/web/guest/s56/-/journal_content/mobiado-
cong-bo-giai-phap-veropass, accessed January 17, 2012.
2 VeroPass website, http://www.veropass.com, accessed January 17, 2012.
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Appendix 12
Mobiado Logo1
Logo used by Mobiado from 2002 to June 2011
Logo used by Mobiado starting July 2011
1 Mobiado, “Mobiado Unveils New Logo – Tradition Continues,” Press Release, June 27, 2011,
http://www.mobiado.com/press_release%20New%20Logo.pdf, accessed January 19, 2012.
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Appendix 13
The Aston Martin Collection1
Mobiado 350 Aston Martin – Black
Mobiado 350 Aston Martin – Silver
1 Mobiado, “Mobiado Launches the Grand 350 Aston Martin. – Power Beauty Soul,” Press Release, August 29, 2011,
http://www.mobiado.com/press_release%20Grand%20350%20Aston%20Martin.pdf, accessed January 19, 2012.