FUNDAMENTALS OF MANAGEMENT
COMPREHENSIVE RESEARCH ANALYSIS OF RESEARCH IN MOTION (RIM)
Submitted By:ARUSHI SHARMA | HISHAM A RIZVI DIVIK GIRDHAR | DRISHTI RANA
THE COMPANY BEHIND
BLACKBERRY
Research In Motion
Research In Motion
- A Brief History
Two engineering students - Mike Lazaridis (University of Waterloo) and Douglas Fregin (University of Windsor) - co-found Research in Motion. The company was set up as an electronics and computer science consulting business based in Waterloo.
1984
The company becomes the first wireless data technology developer in North America. The technology is mainly used for business communications, such as processing credit-card sales.
1988
The focus shifted to two-way wireless communication when the research staff found a way to send messages back as well. Jim Balsillie joins RIM, putting $250,000 of his own money into the company.
1992
RIM introduces its first wireless handheld, the Inter@ctive Pager.
1996
RIM is listed on the Toronto Stock Exchange as a publicly traded company - and raises more than $115 million from investors.
1997
RIM introduces its first BlackBerry, a wireless handheld computer. It offered a six-line display and allowed basic e-mail and two-way paging. RIM is ranked as one of Canada's fastest-growing technology companies.
1998
RIM is listed on the NASDAQ exchange. The company raises another $250 million to develop its BlackBerry technology.
1999
RIM raises another $950 million through a share offering.
November 2000
RIM upgrades the BlackBerry to include voice and data transmission. E-mail capabilities are improved so users can access multiple e-mail accounts.
2002
RIM announces that its BlackBerry subscriber list has passed the 10-million mark.
2007
Alcatel-Lucent announces an agreement to distribute BlackBerry smartphones in China. The news sends RIM shares up eight per cent, making RIM the most valuable company in Canada, based on market capitalization
October 2007
GROWTH OVER THE YEARS
Year
2002 2003 2004 2005 2006 2007 2008
Sales
294,000,000 307,000,000 595,000,000 1,350,000,000 2,066,000,000 3,037,000,000 6,009,000,000
Operating Income
58,000,000 64,000,000 78,000,000 386,000,000 617,000,000 807,000,000 1,731,000,000
Net Income
28,000,000 149,000,000 52,000,000 206,000,000 375,000,000 632,000,000 1,294,000,000
2009
2010 2011
11,065,000,000
14,953,000,000 19,907,000,000
2,722,000,000
3,507,000,000 4,639,000,000
1,893,000,000
2,457,000,000 3,444,000,000
SELECTED PRODUCT LINE
RIM’s most notable product is easily a mobile device dubbed the “BlackBerry”. This revolutionary smartphone has implemented itself into the everyday lifestyle of millions of individuals in over 140 countries.
THE SMARTPHONE MARKET -THE CURRENT SCENARIO
A smartphone was defined as a mobile phone that offers more advanced computing ability and connectivity than a contemporary basic featured phone. For e.g.: Apple iPhone, Blackberry, Nokia’s high-end series.
PRIMARY RESEARCH
• As part of our project, a survey was conducted on a sample of 56 individuals, from the age group 15-55, comprising 21 males and 25 females. • The survey, although conducted on a small scale, shows some emerging trends and demographics. The results were as follows:
PRIMARY RESEARCH
OUR ANALYSIS
OF THE SURVEY
• Smartphones are still a niche market, though there is huge scope for expansion.
• Nokia and RIM (BlackBerry) are dominant players in the Indian smartphone market, while Apple is a core competitor. • Indian smartphone users spend more time on the Internet than on traditional voice calls and SMS of that time goes into gaming, entertainment, and Internet. • Traditional voice calls and text messaging take a mere 8% of the time, and the rest of the time is spent on social networking and instant messaging.
• The common user considers BlackBerry’s BBM service to be its core competence, and a differentiating factor from other smartphones available in the market. • The smartphones manufacturing companies’ target market is slowly shifting from ‘professionals-only’ to a mix of professionals and general users. • The given mix of responders agreed to the fact that if given a chance, and if their financial status permits, they would buy a BlackBerry device without hesitations. • Though Nokia is a dominant player even now, its numbers over the years are fast declining, and competitors like RIM and Apple are catching up very fast.
• Nokia is still preferred by buyers with a purse of below 10,000 rupees. But when the limit goes beyond that a drastic shift is seen towards smartphones from Apple and BlackBerry devices.
Secondary research
STUDY OF THE SELECTED PRODUCT LINE
Introduction
• Research In Motion (RIM) is a global leader in wireless innovation, which revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. • It is a Canadian global telecommunications company headquartered in Waterloo, Ontario, that designs, manufactures and markets wireless solutions for the worldwide mobile communications market. • RIM provides platforms and solutions for access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. • RIM’s portfolio includes the BlackBerry wireless solution, the RIM Wireless Handheld product line, software development tools and other software and hardware. • The BlackBerry product line includes the BlackBerry® PlayBook™ tablet, the award-winning BlackBerry smartphone, software for businesses and accessories. BlackBerry products and services are used by millions of customers around the world on a daily basis.
Marketing Mix: The 4 Ps of Blackberry
THE PRODUCT
BlackBerry is a line of wireless handheld devices developed by the Canadian company, Research In Motion (RIM). The BlackBerry Smart Phone supports the following features: • • • • • • • • Push e-mail Mobile telephone Instant messaging features: BlackBerry Messenger (BBM) Text messaging Internet faxing Web browsing Multi-touch interface Other wireless information services
• Blackberry models in India include:
? ? ? ? ? BlackBerry 8300 Series (Curve) BlackBerry Pearl BlackBerry Bold BlackBerry Torch BlackBerry Bold 3G, etc.
• BlackBerry holds the world's second highest market share in the smart phone platform. The consumer BlackBerry Internet Service is available in 91 countries worldwide on over 500 mobile service operators using various mobile technologies.
• As of September 2011, there were seventy million BlackBerry users.
BLACKBERRY MESSENGER
BlackBerry devices use the proprietary BlackBerry Messenger, also known as BBM, software for sending and receiving instant messages via BlackBerry PIN. Blackberry Messenger is one of the fastest messengers on a smartphone.
PRICE
• • • • • • BlackBerry Bold 9900 BlackBerry Pearl 8120 BlackBerry Pearl 3g 9100 BlackBerry Curve 9300 3g BlackBerry Torch 2 9810 BlackBerry Curve 8520 – – – – – – Rs.32,290 Rs.24,229 Rs.16,333 Rs.13,597 Rs.25,000 Rs.9,199
(As on October 2011)
BlackBerry has strategically placed smartphones in all price ranges, as well as with different features to suit different needs. They have given people the option to choose from a variety of models according to their need and budget, while maintaining the availability of signature features like BlackBerry Messenger and Push-Mail service in all the brands so that the essence of having a BlackBerry can be experienced by all the users across different budget ranges. • “A variety of flexible tariff plans to choose from, thus making it easy for young fans to turn BlackBerry loyalists. We have built up a portfolio at different price points to target different segments of consumers,” Krishnadeep Baruah, • Director (Marketing), RIM India.
PLACE- The Global Perspective
BlackBerry is currently available for sale in the following countries:
American Virgin Islands Anguilla Antigua and Barbuda Argentina Aruba Australia Austria Bahamas Barbados Belgium Bermuda Brazil British Virgin Islands Canada Cayman Islands Chile China Colombia Cyprus Czech Republic Denmark Dominica Ecuador Estonia French Guiana Malaysia Finland Malta Former Yugoslav Martinique Republic of Mexico Macedonia (FYROM) Moldova France Monaco Germany Montserrat Greece Netherlands Grenada Netherlands Antilles Guadeloupe New Zealand Guam Norway Guyana Panama Hong Kong Paraguay Hungary Peru Iceland Poland India Portugal Indonesia Puerto Rico Ireland Romania Isle of Man Russia Italy Saint Eustatius Jamaica Saint Martin Japan Saint Pierre Latvia Saint-Barthelemy Liechtenstein Saba
San Marino Serbia & Montenegro Singapore Slovakia Slovenia South Africa Spain St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Sweden Switzerland Trinidad and Tobago Turkey Turks and Caicos Islands United Kingdom Ukraine United States Uruguay Vatican City Venezuela
The Indian Perspective
• As per data released by IDC, Nokia holds a strong 45.8% market share in smartphone shipments, followed by Samsung’s 21%. Research in Motion, the maker of Blackberry phones has a 15% market share. The top 3 manufacturers together, have a 81.9% market share, leaving a paltry 18% to the likes of Apple, LG, Motorola and Sony Ericsson.
• When we analysed the Indian market, we found that Blackberry sales are restricted to the high-end urban market. This may be due to varied demands of a differentiated society. But in the college space as well as the corporate sector, BlackBerry has become a rage, with students and professionals alike preferring Blackberry over most other brands. • The reason for the paltry numbers for brands like Apple is the heavy pricing which renders most customers unable to buy them. Various other brands like Motorola and Samsung still suffer from lack of customer confidence and loyalty, which Nokia strongly leverages and enjoys. • Excellent after sales services have been a strong point for Nokia, which BlackBerry is fast catching up with. • The Indian market can be broadly divided into two sectors; the urban and rural markets. Both these markets differ drastically in terms of needs, demands, financial orientation and necessity of the consumers.
THE DIFFERENTIATED INDIAN MARKET
Urban Users
• Business uses • Latest applications for the business user • Advanced features and applications • Lifestyle • Status symbol • • • • • • Affordability Connectivity Battery Life Network expansion Low tariffs Lucrative Offers
Rural Users
PROMOTION
• TARGET MARKETS BlackBerry has divided its target market into two basic segments:
Enterprise customers BlackBerry was a "company decision". Enterprise customers High end users Aged 25+ years Mainly mid to senior level management professionals Cosmopolitan Professionals who use it for office purpose Both males and females Tier I cities Non-Enterprise customers BlackBerry was a “personal decision”. Non-Enterprise customers Aged 15-25 years Mainly students Individuals who use it for personal or entertainment purposes Youth which will have financial power tomorrow Both males and females Tier I cities
? ? ? ? ? ?
? ? ? ? ? ?
BlackBerry has already established leadership Today, it has a range of models targeted at every position in this segment. possible consumer segment—senior management professionals, young executives, women, and even those who have barely crossed their teens.
MARKETING STRATEGY OF BLACKBERRY
Youth Marketing Strategy
• BlackBerry has been quick to understand the needs of its young customers.
• In the last 8-10 months, this segment has grown phenomenally. This segment comprises the youth who do not have the financial power today but will have so tomorrow. This segment, which has a huge need to be connected, is growing for smartphones and specifically for BlackBerry. • So, while it has a range of pink, pearl and crimson models to entice women, there’s also a variety of flexible tariff plans to choose from, thus making it easy for young fans to turn BlackBerry loyalists.
Repositioning of The Product through advertising
‘Love what you do’ This ad showcases every function of the Blackberry handset, inserting the tagline ‘love what you do’ on each one.
‘We’re the BlackBerry Boys’ The ‘BlackBerry’ Boys advertisement created by Ogilvy and Mather in 2010 said it all—this smartphone brand wasn’t meant only for stuffy corporate suits—the young and the savvy in India were naturally inclined to this high-end gizmo.
CONCLUSION All the above ads seem to have a common theme. Black Berry has set out to target a younger, more fun-focused consumer. It can be concluded that the BlackBerry brand is repositioning itself, as its primary audience is no longer corporates.
Use of Digital Media
• BlackBerry has been working hard over the last one year on the BlackBerry India website. The Blackberry India fan page on Facebook has 900,000 fans. Its India Twitter page allows people to get updates on the brand and stay connected with the latest news.
BlackBerry’s marketing strategy for the near term
• BlackBerry will continue to address the high-end consumer segment and the youth. They plan to launch some new features and products catering to a more diverse group of individuals. • Beyond that, BlackBerry is also working on enhancing the product experience for the consumer. Its idea is that people should be able to walk into the nearest store and experience the product.
CHALLENGES BlackBerry has contended with being pigeonholed as a strictly business and professional product since its early roots. This stereotype has helped to define BlackBerry as a stable, reliable and practical tool. On the other hand, it has limited its own target market by keeping the static business image.
Nokia was the 1st foreign player to enter the Indian market in 1995.
• It gained its foothold by offerings basic mobile phones in affordable price ranges. • Brand Focus: • Gaming options • Multimedia • GPRS • Faster Internet options
2001 – Sony Ericsson enters the Indian market
Introduced affordable Smartphones in the market such as hi-tech multimedia features, camera phones, design phones, music phones, and web and email phones.
Why BlackBerry Won Against APPLE
Sales for the world’s biggest company by market value, APPLE, are hindered by RIM. Apple shipped 62,043 iPhones to India in the quarter ending June 30, or fewer than to Norway, Belgium or Israel, according to estimates by Framingham, Massachusetts-based researcher IDC.
Why BlackBerry Won Against APPLE
Reasons • Apple products aren’t as accessible in India. • The poor sales figures for Apple smartphones has been attributed to Indian wireless carriers. • Blackberry users have defended its utility over the iPhone. • Moreover, Blackberry has a price range which appeals to wider range of customers
SUGGESTIONS
Problem To Develop a balance between business use and recreational use
• • • •
Causes
• No carrier is owned by RIM • Carriers are concerned with their own profit • No ownership of their stores
Solutions Diversification of the product Product Depth Market Development Aggressive Promotion
SWOT ANALYSIS
Strengths
World’s largest wireless design group Credible organization High product value of the BlackBerry line QWERTY keyboard feature on the smartphones BlackBerry messenger SureType and SurePress feature
Weaknesses
Limited product line; only carries smartphones Risky foreign operations Weak launches of different phone types, eg. The BlackBerry flip phone Restrictive image of a product for professionals. Faces a “strictly businesss” stereotype, hence issues in repositioning. Limited market reach due to initial branding of RIM as “a business professional tool,”
Opportunities
Expand product breadth Grow on international expansion Expanding depth in the smartphone line Develop and diversify marketing strategies Appeal to new markets
Threats
Weakened economy due to the recession Possibility of becoming a passing trend Competition, more smartphone options, for example, the iPhone vs. BlackBerry Storm Reliance on retailer carriers alone to promote their products
RECOMMENDED PLAN OF ACTION
• Taking all alternatives into account, we have made the decision to implement a more concentrated and aggressive marketing development strategy. • RIM BlackBerry’s plan of action will target their already existing client i.e. senior executives and young professionals, alongside a younger and more recreational based consumer, known as Generation Y. By aiming their sights on up and coming consumers, RIM can build upon relationships with their target market from a young age and develop their sustainability as a company simultaneously. • RIM will actualize a new promotional campaign to address these potential consumers and attract them with the use of advertisements through television, viral marketing, radio, billboards and magazines. Though these sources are already used to promote the BlackBerry, RIM can revamp how they advertise. • RIM must generate commercials that are brighter, more energetic, and most importantly, more memorable, thus appealing to a fresher audience. Another option for BlackBerry is product placement on television shows or films that appeal to the target audience. RIM will adopt a new way of thinking, and by cultivating an improved marketing development strategy, RIM can evolve as a brand and a corporation.
Thank You
doc_932725913.pptx
COMPREHENSIVE RESEARCH ANALYSIS OF RESEARCH IN MOTION (RIM)
Submitted By:ARUSHI SHARMA | HISHAM A RIZVI DIVIK GIRDHAR | DRISHTI RANA
THE COMPANY BEHIND
BLACKBERRY
Research In Motion
Research In Motion
- A Brief History
Two engineering students - Mike Lazaridis (University of Waterloo) and Douglas Fregin (University of Windsor) - co-found Research in Motion. The company was set up as an electronics and computer science consulting business based in Waterloo.
1984
The company becomes the first wireless data technology developer in North America. The technology is mainly used for business communications, such as processing credit-card sales.
1988
The focus shifted to two-way wireless communication when the research staff found a way to send messages back as well. Jim Balsillie joins RIM, putting $250,000 of his own money into the company.
1992
RIM introduces its first wireless handheld, the Inter@ctive Pager.
1996
RIM is listed on the Toronto Stock Exchange as a publicly traded company - and raises more than $115 million from investors.
1997
RIM introduces its first BlackBerry, a wireless handheld computer. It offered a six-line display and allowed basic e-mail and two-way paging. RIM is ranked as one of Canada's fastest-growing technology companies.
1998
RIM is listed on the NASDAQ exchange. The company raises another $250 million to develop its BlackBerry technology.
1999
RIM raises another $950 million through a share offering.
November 2000
RIM upgrades the BlackBerry to include voice and data transmission. E-mail capabilities are improved so users can access multiple e-mail accounts.
2002
RIM announces that its BlackBerry subscriber list has passed the 10-million mark.
2007
Alcatel-Lucent announces an agreement to distribute BlackBerry smartphones in China. The news sends RIM shares up eight per cent, making RIM the most valuable company in Canada, based on market capitalization
October 2007
GROWTH OVER THE YEARS
Year
2002 2003 2004 2005 2006 2007 2008
Sales
294,000,000 307,000,000 595,000,000 1,350,000,000 2,066,000,000 3,037,000,000 6,009,000,000
Operating Income
58,000,000 64,000,000 78,000,000 386,000,000 617,000,000 807,000,000 1,731,000,000
Net Income
28,000,000 149,000,000 52,000,000 206,000,000 375,000,000 632,000,000 1,294,000,000
2009
2010 2011
11,065,000,000
14,953,000,000 19,907,000,000
2,722,000,000
3,507,000,000 4,639,000,000
1,893,000,000
2,457,000,000 3,444,000,000
SELECTED PRODUCT LINE
RIM’s most notable product is easily a mobile device dubbed the “BlackBerry”. This revolutionary smartphone has implemented itself into the everyday lifestyle of millions of individuals in over 140 countries.
THE SMARTPHONE MARKET -THE CURRENT SCENARIO
A smartphone was defined as a mobile phone that offers more advanced computing ability and connectivity than a contemporary basic featured phone. For e.g.: Apple iPhone, Blackberry, Nokia’s high-end series.
PRIMARY RESEARCH
• As part of our project, a survey was conducted on a sample of 56 individuals, from the age group 15-55, comprising 21 males and 25 females. • The survey, although conducted on a small scale, shows some emerging trends and demographics. The results were as follows:
PRIMARY RESEARCH
OUR ANALYSIS
OF THE SURVEY
• Smartphones are still a niche market, though there is huge scope for expansion.
• Nokia and RIM (BlackBerry) are dominant players in the Indian smartphone market, while Apple is a core competitor. • Indian smartphone users spend more time on the Internet than on traditional voice calls and SMS of that time goes into gaming, entertainment, and Internet. • Traditional voice calls and text messaging take a mere 8% of the time, and the rest of the time is spent on social networking and instant messaging.
• The common user considers BlackBerry’s BBM service to be its core competence, and a differentiating factor from other smartphones available in the market. • The smartphones manufacturing companies’ target market is slowly shifting from ‘professionals-only’ to a mix of professionals and general users. • The given mix of responders agreed to the fact that if given a chance, and if their financial status permits, they would buy a BlackBerry device without hesitations. • Though Nokia is a dominant player even now, its numbers over the years are fast declining, and competitors like RIM and Apple are catching up very fast.
• Nokia is still preferred by buyers with a purse of below 10,000 rupees. But when the limit goes beyond that a drastic shift is seen towards smartphones from Apple and BlackBerry devices.
Secondary research
STUDY OF THE SELECTED PRODUCT LINE
Introduction
• Research In Motion (RIM) is a global leader in wireless innovation, which revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. • It is a Canadian global telecommunications company headquartered in Waterloo, Ontario, that designs, manufactures and markets wireless solutions for the worldwide mobile communications market. • RIM provides platforms and solutions for access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. • RIM’s portfolio includes the BlackBerry wireless solution, the RIM Wireless Handheld product line, software development tools and other software and hardware. • The BlackBerry product line includes the BlackBerry® PlayBook™ tablet, the award-winning BlackBerry smartphone, software for businesses and accessories. BlackBerry products and services are used by millions of customers around the world on a daily basis.
Marketing Mix: The 4 Ps of Blackberry
THE PRODUCT
BlackBerry is a line of wireless handheld devices developed by the Canadian company, Research In Motion (RIM). The BlackBerry Smart Phone supports the following features: • • • • • • • • Push e-mail Mobile telephone Instant messaging features: BlackBerry Messenger (BBM) Text messaging Internet faxing Web browsing Multi-touch interface Other wireless information services
• Blackberry models in India include:
? ? ? ? ? BlackBerry 8300 Series (Curve) BlackBerry Pearl BlackBerry Bold BlackBerry Torch BlackBerry Bold 3G, etc.
• BlackBerry holds the world's second highest market share in the smart phone platform. The consumer BlackBerry Internet Service is available in 91 countries worldwide on over 500 mobile service operators using various mobile technologies.
• As of September 2011, there were seventy million BlackBerry users.
BLACKBERRY MESSENGER
BlackBerry devices use the proprietary BlackBerry Messenger, also known as BBM, software for sending and receiving instant messages via BlackBerry PIN. Blackberry Messenger is one of the fastest messengers on a smartphone.
PRICE
• • • • • • BlackBerry Bold 9900 BlackBerry Pearl 8120 BlackBerry Pearl 3g 9100 BlackBerry Curve 9300 3g BlackBerry Torch 2 9810 BlackBerry Curve 8520 – – – – – – Rs.32,290 Rs.24,229 Rs.16,333 Rs.13,597 Rs.25,000 Rs.9,199
(As on October 2011)
BlackBerry has strategically placed smartphones in all price ranges, as well as with different features to suit different needs. They have given people the option to choose from a variety of models according to their need and budget, while maintaining the availability of signature features like BlackBerry Messenger and Push-Mail service in all the brands so that the essence of having a BlackBerry can be experienced by all the users across different budget ranges. • “A variety of flexible tariff plans to choose from, thus making it easy for young fans to turn BlackBerry loyalists. We have built up a portfolio at different price points to target different segments of consumers,” Krishnadeep Baruah, • Director (Marketing), RIM India.
PLACE- The Global Perspective
BlackBerry is currently available for sale in the following countries:
American Virgin Islands Anguilla Antigua and Barbuda Argentina Aruba Australia Austria Bahamas Barbados Belgium Bermuda Brazil British Virgin Islands Canada Cayman Islands Chile China Colombia Cyprus Czech Republic Denmark Dominica Ecuador Estonia French Guiana Malaysia Finland Malta Former Yugoslav Martinique Republic of Mexico Macedonia (FYROM) Moldova France Monaco Germany Montserrat Greece Netherlands Grenada Netherlands Antilles Guadeloupe New Zealand Guam Norway Guyana Panama Hong Kong Paraguay Hungary Peru Iceland Poland India Portugal Indonesia Puerto Rico Ireland Romania Isle of Man Russia Italy Saint Eustatius Jamaica Saint Martin Japan Saint Pierre Latvia Saint-Barthelemy Liechtenstein Saba
San Marino Serbia & Montenegro Singapore Slovakia Slovenia South Africa Spain St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Sweden Switzerland Trinidad and Tobago Turkey Turks and Caicos Islands United Kingdom Ukraine United States Uruguay Vatican City Venezuela
The Indian Perspective
• As per data released by IDC, Nokia holds a strong 45.8% market share in smartphone shipments, followed by Samsung’s 21%. Research in Motion, the maker of Blackberry phones has a 15% market share. The top 3 manufacturers together, have a 81.9% market share, leaving a paltry 18% to the likes of Apple, LG, Motorola and Sony Ericsson.
• When we analysed the Indian market, we found that Blackberry sales are restricted to the high-end urban market. This may be due to varied demands of a differentiated society. But in the college space as well as the corporate sector, BlackBerry has become a rage, with students and professionals alike preferring Blackberry over most other brands. • The reason for the paltry numbers for brands like Apple is the heavy pricing which renders most customers unable to buy them. Various other brands like Motorola and Samsung still suffer from lack of customer confidence and loyalty, which Nokia strongly leverages and enjoys. • Excellent after sales services have been a strong point for Nokia, which BlackBerry is fast catching up with. • The Indian market can be broadly divided into two sectors; the urban and rural markets. Both these markets differ drastically in terms of needs, demands, financial orientation and necessity of the consumers.
THE DIFFERENTIATED INDIAN MARKET
Urban Users
• Business uses • Latest applications for the business user • Advanced features and applications • Lifestyle • Status symbol • • • • • • Affordability Connectivity Battery Life Network expansion Low tariffs Lucrative Offers
Rural Users
PROMOTION
• TARGET MARKETS BlackBerry has divided its target market into two basic segments:
Enterprise customers BlackBerry was a "company decision". Enterprise customers High end users Aged 25+ years Mainly mid to senior level management professionals Cosmopolitan Professionals who use it for office purpose Both males and females Tier I cities Non-Enterprise customers BlackBerry was a “personal decision”. Non-Enterprise customers Aged 15-25 years Mainly students Individuals who use it for personal or entertainment purposes Youth which will have financial power tomorrow Both males and females Tier I cities
? ? ? ? ? ?
? ? ? ? ? ?
BlackBerry has already established leadership Today, it has a range of models targeted at every position in this segment. possible consumer segment—senior management professionals, young executives, women, and even those who have barely crossed their teens.
MARKETING STRATEGY OF BLACKBERRY
Youth Marketing Strategy
• BlackBerry has been quick to understand the needs of its young customers.
• In the last 8-10 months, this segment has grown phenomenally. This segment comprises the youth who do not have the financial power today but will have so tomorrow. This segment, which has a huge need to be connected, is growing for smartphones and specifically for BlackBerry. • So, while it has a range of pink, pearl and crimson models to entice women, there’s also a variety of flexible tariff plans to choose from, thus making it easy for young fans to turn BlackBerry loyalists.
Repositioning of The Product through advertising
‘Love what you do’ This ad showcases every function of the Blackberry handset, inserting the tagline ‘love what you do’ on each one.
‘We’re the BlackBerry Boys’ The ‘BlackBerry’ Boys advertisement created by Ogilvy and Mather in 2010 said it all—this smartphone brand wasn’t meant only for stuffy corporate suits—the young and the savvy in India were naturally inclined to this high-end gizmo.
CONCLUSION All the above ads seem to have a common theme. Black Berry has set out to target a younger, more fun-focused consumer. It can be concluded that the BlackBerry brand is repositioning itself, as its primary audience is no longer corporates.
Use of Digital Media
• BlackBerry has been working hard over the last one year on the BlackBerry India website. The Blackberry India fan page on Facebook has 900,000 fans. Its India Twitter page allows people to get updates on the brand and stay connected with the latest news.
BlackBerry’s marketing strategy for the near term
• BlackBerry will continue to address the high-end consumer segment and the youth. They plan to launch some new features and products catering to a more diverse group of individuals. • Beyond that, BlackBerry is also working on enhancing the product experience for the consumer. Its idea is that people should be able to walk into the nearest store and experience the product.
CHALLENGES BlackBerry has contended with being pigeonholed as a strictly business and professional product since its early roots. This stereotype has helped to define BlackBerry as a stable, reliable and practical tool. On the other hand, it has limited its own target market by keeping the static business image.
Nokia was the 1st foreign player to enter the Indian market in 1995.
• It gained its foothold by offerings basic mobile phones in affordable price ranges. • Brand Focus: • Gaming options • Multimedia • GPRS • Faster Internet options
2001 – Sony Ericsson enters the Indian market
Introduced affordable Smartphones in the market such as hi-tech multimedia features, camera phones, design phones, music phones, and web and email phones.
Why BlackBerry Won Against APPLE
Sales for the world’s biggest company by market value, APPLE, are hindered by RIM. Apple shipped 62,043 iPhones to India in the quarter ending June 30, or fewer than to Norway, Belgium or Israel, according to estimates by Framingham, Massachusetts-based researcher IDC.
Why BlackBerry Won Against APPLE
Reasons • Apple products aren’t as accessible in India. • The poor sales figures for Apple smartphones has been attributed to Indian wireless carriers. • Blackberry users have defended its utility over the iPhone. • Moreover, Blackberry has a price range which appeals to wider range of customers
SUGGESTIONS
Problem To Develop a balance between business use and recreational use
• • • •
Causes
• No carrier is owned by RIM • Carriers are concerned with their own profit • No ownership of their stores
Solutions Diversification of the product Product Depth Market Development Aggressive Promotion
SWOT ANALYSIS
Strengths
World’s largest wireless design group Credible organization High product value of the BlackBerry line QWERTY keyboard feature on the smartphones BlackBerry messenger SureType and SurePress feature
Weaknesses
Limited product line; only carries smartphones Risky foreign operations Weak launches of different phone types, eg. The BlackBerry flip phone Restrictive image of a product for professionals. Faces a “strictly businesss” stereotype, hence issues in repositioning. Limited market reach due to initial branding of RIM as “a business professional tool,”
Opportunities
Expand product breadth Grow on international expansion Expanding depth in the smartphone line Develop and diversify marketing strategies Appeal to new markets
Threats
Weakened economy due to the recession Possibility of becoming a passing trend Competition, more smartphone options, for example, the iPhone vs. BlackBerry Storm Reliance on retailer carriers alone to promote their products
RECOMMENDED PLAN OF ACTION
• Taking all alternatives into account, we have made the decision to implement a more concentrated and aggressive marketing development strategy. • RIM BlackBerry’s plan of action will target their already existing client i.e. senior executives and young professionals, alongside a younger and more recreational based consumer, known as Generation Y. By aiming their sights on up and coming consumers, RIM can build upon relationships with their target market from a young age and develop their sustainability as a company simultaneously. • RIM will actualize a new promotional campaign to address these potential consumers and attract them with the use of advertisements through television, viral marketing, radio, billboards and magazines. Though these sources are already used to promote the BlackBerry, RIM can revamp how they advertise. • RIM must generate commercials that are brighter, more energetic, and most importantly, more memorable, thus appealing to a fresher audience. Another option for BlackBerry is product placement on television shows or films that appeal to the target audience. RIM will adopt a new way of thinking, and by cultivating an improved marketing development strategy, RIM can evolve as a brand and a corporation.
Thank You
doc_932725913.pptx