Marketing Strategy Presentationon“BlackBerry”

Presented by – Group 4• B002 AMDEKAR, ASHUTOSH• B003 ARU, ROHIT• B005 BANDEKAR, VAIBHAV• B016 GUPTA, RUPALI• B034 PATIL, SEEMA• B041 SAHASTRABUDHE, ARCHANA

To present & study the past and existing marketing strategy of Blackberry.

Objective & Scope

• Strategic Marketing• Competition Analysis & Strategy • Product & Branding Strategy• Price Strategy• Marketing Communication & Channels used

Founder of Smartphone Industry•1984: founded by Canadian company Research in Motion•1999: came into the market as a two way pager•2002: Featured emails, text messaging, web browsing, voice communications and internet faxing functionality•2003: first cooler model•2004: first packing wi-fi•It positioned in government and enterprise target markets. •QWERTY pad and scroll ball for easy access•PTT: push to talk device aka walkie-talkie•Easy connection worldwide•Document viewing software allowing to easily view and edit all import files.

Background History

BlackBerry in India

• Started its operations in 2004 and currently has presence in 80 cities and 4000 retails

• It has currently three distributors–Redington India, Brightpoint India, and Ingram Inc– in India.

• The company succeeded to grow up its customers more than 75 million worldwide last year—up by 35% year-over-year.

• The intrusion of Android devices like Samsung galaxy in India has eaten BlackBerry’s major market share last year.

• Smartphone's Sector account for over 30% of total volumes and over 75% of total industry revenues

• BlackBerry’s share of the Smartphone market fell from 15% to 9% in the final quarter of 2011

• Worldwide Smartphone sales grew by 47% year-on-year to reach with 147 million units during the quarter.

• Rise of iPhone and Android based phones and their acceptance in both consumer & enterprise market led to challenge BB product.

• Introduction of PlayBook Tablet in April 2011

Current Scenario – Smartphone Industry

Marketing Channels

• They sold the devices through larger carriers AT&T, TMobile, Verizon worldwide.

• It has currently three distributors–Redington India, Brightpoint India, and Ingram Inc– in India.

• Blackberry moved from the Carrier Retail Outlets (eg. Vodafone, Airtel etc – 10% ) to a mix of multi-brand outlets. (65 %)

• Organised Retail Outlets (25 %).• It has also opened 800 exclusive retail outlets across 35

cities.• Good experience of the product at the point of decision

making is an important part of reaching out to the consumers.

Marketing Process

Customer Segmentation

Market Selection & Focus

Value Positioning

Choose the Value

Strategic Marketing

Started with targeting•Successful Professionals & Entrepreneurs•Young, Social professional & students•Mobile Workers

• Smartphone category • Tablet category – New Entry• Focus on innovative & advance technology

•To help in secure & speedy communication

Marketing Process - Consumer Profile

Product-Oriented versus Market-Oriented Definitions of Blackberry

CompanyCompany Product DefinitionProduct Definition Market DefinitionMarket Definition

BlackBerryBlackBerry

We develop integrated hardware, software and services that support multiple wireless network standards.

RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, text messaging (SMS and MMS), Internet and intranet-based applications.

We help people to We help people to effectively connect & effectively connect & communicate in a secure communicate in a secure and faster way.and faster way.

ConnectCommunicate Converge

94%of users improved their ability to manage their Inbox

93%of users converted down-time into productive time

63 minutesaverage down-time recovered daily = 250 hrs annually

38%average increase in team efficiency

238%average ROI: solutions turn profit in < 5 months

BlackBerry Benefits

Peak time of BlackBerry sales

Marketing Strategy

Product:

RIM has revolutionized mobile communication devices with the BlackBerry smartphone.

Blackberry is a device which supports Push Email, Text messaging, Internet faxing web browsing etc.

They enhanced the product depth • By adding a new BlackBerry to the product line by creating a multi-media device to better

satisfy consumer needs.

• By enhancing the Smartphone features and ultimately redesigning the BlackBerry, the product attracted consumers.

• The shape was different and the instrument had a QWERTY keypad with its iconic TrackWheel + Click feature which grabbed attention & comfort of youth.

Emotional Connect: Black berry became a status symbol, a way to stay connected to work at all times. The brand became a symbol of the user. Emotion selling was the key.

Marketing Strategy

Product:

BlackBerry Messenger

BlackBerry devices use the proprietary BlackBerry Messenger, also known as BBM, software for sending and receiving encrypted instant messages, voice notes, images and videos via BlackBerry PIN.

Some of the features of BBM include groups, bar-code scanning, lists, shared calendars, BBM Music and integration with apps and games using the BBM social platform.

Benefits• BBM is used as a strategic tool by corporate companies to save costs and enhance internal

and external communications.• BBM service is the reason why young executives, youth is switching to Blackberry• BBM features of instant connectivity with social networking sites, Instant messages has gained

popularity and cost saving

Ansoff’s Product-Market Expansion

Marketing-penetration strategy

Low Price Product Eg.-BlackBerry Curve

Product-development strategy

Introduction of BlackBerry OS 10

Market-development strategy

Low Price Product Eg.- India, China

Diversification strategy

PlayBook – New Market –India & China

• Globally, RIM holds 9% of the Smartphone market share• Smartphone competitors are:

– Apple – Samsung– Nokia – HTCCompetitive Advantage– Solution Depth– Advance security– Superior wireless performance– BB Smartphone experience– Award wining

Competitive Analysis

Perceptual Map

Business Use

Personal Use

Polished Use

Rough Use

S3 RIM BlackBerry

S1 Apple i-phone

Tinkerers:

People wanting to enhance functionality

through tweaks.

Enterprise:

People wanting a mobile device tailored to company

work.

S2 Google Android

Design Elite:

People wanting to express their sense of style.

Direction less:

Stuck in the Middle. No distinct position.

S4Nokia

SWOT Analysis

Strengths Weaknesses

Internal -Comprehensive offering and portfolio-Growing brand image and brand loyalty-Strong financial performance-Strong research and development

-Dependence on few customersin the business and governmentsegments-Issues with product supply

Opportunities Threats

External Expanding portfolio of offerings andapplications-Positive outlook for Smartphones-Fastest growing company in the world

-Declining average selling price-Increased competition insmartphone segment-Involvement in legal issues / Govt. objections

(Datamonitor, 2009)

Price:

To enter into the consumer youth market Blackberry introduced products with affordable price range

• Launched with Rs. 68,000/- in year 2004 targeting the entrepreneurs today Blackberry has introduced models like Blackberry Curve 9199 priced at Rs. 9000/- with basic of features.

Marketing Strategy & Mix

Promotion:

• In 2004 RIM introduced BlackBerry in India

• Airtel was the first service provider to enter into contract with BlackBerry

• In India, the service provider has advertised the Blackberry connectivity.

• Initially BlackBerry was positioned on its email feature. The brand was positioned as a pure play email device.

• The tagline says " Small Smart and Stylish" which reflects the look and design of the device.

Marketing Strategy & Mix

Promotion:

RIM communicates benefits of the BlackBerry to consumers through following communication tools

Marketing Strategy & Mix

Print Ads Online Ads Viral Marketing Social Media Direct Marketing

Communication Tools

Print Ads

Print Ads

Print Ads

Billboards

The main reason for the success of Blackberry in smartphone category is:

• Blackberry’s ability to shift when necessary to meet the market’s changing needs.

• Blackberry’s ability to respond quickly to opportunities

• Blackberry’s most powerful brand tool is that “a product does what it is supposed to do”. People got passionate about what it does. They wanted to associate their device, what they hold in their hand with the brand name.

• Blackberry’s marketing strategy was based on a status appeal.

Marketing Strategy

• Blackberry shifting brand strategy reflected the change that happens in many technology and device companies who start of selling features, and then become aware of the brands heart & soul as the brand gains credibility.

– In the beginning Blackberry marketed its features – then the message shifted to become about Business success– That campaign merge into one about life success

• The value promise of Blackberry became that it’s a tool to let you live your life.

Marketing Strategy

• Growth Strategies:- market penetration through brand awareness and place of distribution- market development through further globalizing BlackBerry products- product development through adding to BlackBerry product depth and brand extension by introducing a new product under the BlackBerry brand

• Product Life Cycle: BlackBerry is in the maturity phase of the life cycle and is heading towards the decline stage. The company must develop strategies accordingly.

• Brand loyalty: Enhanced when implementing product strategies to exceed customer expectations

Marketing Strategy

Blackberry & iPhone Lifecycle

2008-2009 2010-2011

Challenges

• Technology plays a very important role in the smartphone market

• To match the multimedia and consumer aspects that were evident in the iPhone and Android based operating systems in BB Torch handset it ended up being a mismatched phone that couldn’t decide if it was touch screen or keyboard orientated.

• RIM clearly wanted to preserve their keyboard targeted audience, but also tried to attack the touch screen audience with the same phone. By trying to do both within the same piece of hardware, BlackBerry failed on both fronts.

Challenges

• Increased Competition – – Samsung's Android-based Galaxy series has become a huge success. – The country's largest phone maker Nokia too has introduced its first Windows-

based phone in an aggressive bid to regain its share in the smartphone market

• RIM's strongest differentiator-push mail--may have lost its appeal as other mail and social networking apps gain traction.

• Initial launch of table PlayBook flopped.• The launch of its new line of smartphones was delayed, a massive

service outage hit its brand image, and, it cut some 2,000 jobs in June.

Does Blackberry have a distinctive market position?

• Blackberry is a very popular device among youth (BBM). • Gold Standard for emailing.• Device management Security lock down.• Relaunch of Playbook at lower price lead to gain market share

(45%) in tablet market.• “convert downtime into productive time”

Thank You!

Connect Communicate Converge