Marketing Strategy Presentation on BlackBerry

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

Objective & Scope

To present & study the past and existing marketing strategy of Blackberry.
Strategic Marketing Competition Analysis & Strategy Product & Branding Strategy Price Strategy Marketing Communication & Channels used

Background History
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.

BlackBerry in India
Started its operations in 2004 and currently has presence in 80 cities and 4000 retails It has currently three distributorsRedington India, Brightpoint India, and Ingram Inc in India. The company succeeded to grow up its customers more than 75 million worldwide last yearup by 35% year-over-year. The intrusion of Android devices like Samsung galaxy in India has eaten BlackBerrys major market share last year.

Current Scenario Smartphone Industry

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

Marketing Channels
They sold the devices through larger carriers AT&T, TMobile, Verizon worldwide. It has currently three distributorsRedington 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
Choose the Value Customer Segmentation Market Selection & Focus Value Positioning

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

Strategic Marketing

Marketing Process - Consumer Profile

Product-Oriented versus Market-Oriented Definitions of Blackberry

Company Product Definition
We develop integrated hardware, software and services that support multiple wireless network standards. RIM provides platforms and solutions for seamless access to timesensitive information including email, phone, text messaging (SMS and MMS), Internet and intranet-based applications.

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

BlackBerry

Connect Communicate Converge

BlackBerry Benefits

94%
of users improved their ability to manage their Inbox

93%
of users converted downtime into productive time

63 minutes
average down-time recovered daily = 250 hrs annually

38%
average increase in team efficiency

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

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

Ansoffs Product-Market Expansion

Marketing-penetration strategy
Low Price Product Eg.BlackBerry Curve Market-development strategy Low Price Product Eg.- India, China

Product-development strategy Introduction of BlackBerry OS 10

Diversification strategy PlayBook New Market India & China

Competitive Analysis
Globally, RIM holds 9% of the Smartphone market share Smartphone competitors are: Apple Samsung Nokia HTC Competitive Advantage Solution Depth Advance security Superior wireless performance BB Smartphone experience Award wining

Perceptual Map
Polishe d Use

Direction less:

S4 Nokia

S1 Apple i-phone
Design Elite:

Stuck in the Middle. No distinct position.

People wanting to express their sense of style.

Business Use
S3 RIM BlackBerry
Enterprise:

Personal Use

S2 Google Android
Tinkerers: People wanting to enhance functionality through tweaks.

People wanting a mobile device tailored to company work.

Rough Use

SWOT Analysis

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

Weaknesses
-Dependence on few customers in the business and government segments -Issues with product supply

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

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

(Datamonitor, 2009)

Marketing Strategy & Mix

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

Communication Tools

Print Ads

Online Ads

Viral Marketing Social Media

Direct Marketing

Print Ads

Print Ads

Print Ads

Billboards

Marketing Strategy

The main reason for the success of Blackberry in smartphone category is:
Blackberrys ability to shift when necessary to meet the markets changing needs. Blackberrys ability to respond quickly to opportunities Blackberrys 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.

Blackberrys 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 its 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

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 couldnt 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 Windowsbased 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

Connect Communicate Converge

Thank You!