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Executive Summary:
BlackBerry is hoping that the revenue from sales of its new smartphone, the BlackBerry
Z10 will help reverse six quarters of declining sales and years of market-share losses to rivals
Apple Inc, Nokia and Samsung. The decline began in the winter of 2011 when the Blackberry
Bold, a higher-end model smartphone failed to connect in emerging markets due to the price.
Other reasons cited for the decline was Blackberry’s inability to provide a smooth mobile
browsing experience. The main challenges for RIM is how many new subscribers the new Z10
phone can harness into the Blackberry customer base.
The Z10 offers new features such as touchscreen, enhanced and well organized learned
user’s writing style, and a feature called Balance which separates personal from professional life.
This would differentiate them from other top phone companies such as the IPhone or the Galaxy
line from Samsung. According to the LA times, RIM has been touting the superiority of its
touchscreen, and believes "they will be able to convert some people". RIM says BlackBerry 10
will be the new name for its next-generation system after the company loses a trademark ruling
on its previous name, BBX.
RIM changed its name to BlackBerry in order to improve their marketing strategy with
regard to brand recognition. We plan on finding ways for RIM to advertise their new product so
that it will appeal to the target market of smartphone users. Blackberry is hoping that this new
product will reverse the downward spiral and restore faith back into their investors and
stakeholders. They only have one more chance to get this right and they are hoping that this
phone will help regain the lost market share during this fiscal year. The Z10 phone has already
launched in Europe and the preliminary reports revealed a surprising lack of marketing support
and poor positioning of the product. We will provide the data and research information by
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comparing Blackberry’s weaknesses and strengths. We will also perform a SWOT analysis of the
current marketing strategy and will provide recommendation including a projected marketing
mix.
Company History
BlackBerry is a Canadian company that was initially founded as Research in Motion
(RIM), by Mike Lazaridis, a university dropout, in 1984. The head office and manufacturing
facility is located in Waterloo, Ontario. BlackBerry also has offices in Ottawa, Mississauga, and
the United Kingdom. The Ottawa facility houses the Research and development division. During
its inception, RIM was known for producing the Electronic Content Pagers. The company then
became the market leader in wireless enterprise email before expanding its portfolio into broader
business wireless solutions and the smartphone industry.
Here is a brief timeline of RIM’s corporate milestones.
● 1884- RIM is founded by University of Waterloo engineering student Mike Lazaridis.
● 1988- RIM becomes the first wireless data technology developer in North America.
● 1996- RIM introduces the Interactive Pager, the first two-way messaging pager.
● 1997- RIM becomes a publicly traded company on the Toronto Stock Exchange.
● 1999 RIM introduces the data and voice BlackBerry 5790. First handheld to bear the
name “BlackBerry”.
● 2004- BlackBerry reaches over 2 million subscribers worldwide and surpasses 4 million
in 2005.
● 2011- A global BlackBerry outage disrupts service for millions of RIM customers.
● 2012- Mike Lazaridis steps down as BlackBerry co-executive.
● 2013- RIM changes company name to BlackBerry
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BlackBerry we have a problem
In September 2011, the BlackBerry service suffered a massive outage, which impacted
millions of customers for several days. This cause feared and made loyal customers question
their stability. Although, the number of active BlackBerry subscribers has increased from 2002
to the present, BlackBerry is still faced with company failure. The fate of BlackBerry Z10 will
either make or break them.
According to Chitika, a web traffic research company, BlackBerry devices were used for
just over one percent of mobile web browsing in the US in July 2012. The smartphone market is
dominated by their competitor, Apple and Samsung. Reports by Nielsen claimed that in 2012,
BlackBerry held seven percent of the smartphone market share compared to the Android at fifty
six and Apple at twenty three. In January 2013, there are 67.68 million smartphones in the
United States running Android compared to 7.63 million running BlackBerry. BlackBerry is
considered outdated and unappealing compared to the competition.
What should be implemented in order to succeed?
There are several ideas, strategic thinking, and marketing strategies that can be brought
up when working to improve a specific product or service for a company. Our team has
narrowed it down to three best actions we believe will help market the new BB Z10 to maintain
Blackberry’s company on its standing ground and possibly increase its revenue. First, action is to
adopt a new and improved marketing strategy that Blackberry’s current existing strategy could
not execute. It is always best to move forward and up on ideas of improvements. Blackberry’s
current strategy is weakened to target its customers and is still empowered by their top tier
competitors. The second action is to provide incentives and improve the overall user experience
of BB Z10. Their lack of new features and access to popular apps that current smartphone users
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use are unable to access on the new mobile. Perhaps we can identify some companies or
contracts that will help access the most populated applications used today by Apple or Android.
For example, Blackberry’s World may need to sign with Instagram or Netflix. The last action is
to increase the number of carriers and authorized providers. However, these actions may seem
too easy to be stated, critical research and action is needed to construct at the corporate level.
This may be a difficult task to pursue but, it is what we believe Blackberry should invest in.
Having more retail dealers will help customers to purchase at more locations and provide an
easier access to obtain.
Identifying Blackberry’s complications
Blackberry marketing strategy faces stiff competition from those of rival smartphone
makers. The existing marketing strategy is currently not operating at its maximum potential
because the lack of ideas they have promoted. Blackberry seems to focus too much on their
weaknesses instead of focusing on their potential strengths. The company needs to look at the
assets and power they already have in hand and learn to grow from within. This will distinct
them from other competitors, allowing what the Z10 differs from the top tiers. Another weak
point is that Blackberry had planned the new Z10 for a little over 3 years to release this product.
This long aging gap gave other providers the advantage to rapidly release new products and ideas
within the time span. Also, allowing competitors to improve their branding structure and
concrete a motive marketing strategy.
Our plan to success
How can Blackberry successfully market their new Z10 smartphone to increase their
profits and regain the lost market share? Although our actions are at the corporate level, we
narrowed our options down to adopt new marketing strategies that will help specify and target
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their customers. Blackberry was not able to identify its customers, permitting their top
competitors to roar past them. This allowed the top tiers such as, Apple or Samsung, to be
dominant and gain more users. By creating or improving a new marketing strategy for the new
Z10, we hope our plans will lift Blackberry get back on its competitive ground and be consider
with the top tiers.
The company must precisely identify its customers to help brand Blackberry company
main consumers when advertising their new BB Z10. Without having to identify their
consumers, current smartphone users may lose interest due to current 21st centuries mobile
features. Blackberry should construct and direct its market message to both middle and upper
class so BB Z10 can classify itself universal. Having more billboards plant in city suburbs and
downtown will help increase this message to all travelers. They should also be placed near
border lines within city limits so that it will be more effective. Having hot charted celebrities to
advertise is another plan to marketing success. By having them using the Z10, fans will trend the
use of the mobile having to spread the popular demand across others countries. For example,
young teen fans of popular artist Justin Bieber will consume the new BB Z10 if advertise by him.
Stats wise will show fans are more influential to their role model actions and behaviors.
SWOT Analysis:
As a team we executed a SWOT analysis on Blackberry and the results were as follow.
Blackberry’s strengths which include brand image and innovative product have allowed them to
stay in business for a long time and build their reputation as one of the main companies in the
cell phone world. They became very well known after being the first company to come up with a
smartphone. The Z10 and many of their previous devices have also been known for their
innovation and technological advancement.
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Blackberry’s weaknesses include poor marketing and lack of competitive prices. As we
see throughout the report, one can observe that poor marketing is one of the main reasons why
Blackberry is relying on this new phone for their resurrection. It has been a few years since they
last came out with a phone; therefore the marketing has to be better than the competitors. Their
prices run for about the same as other competitors who make consumers wonder if investing on
this phone is actually worth the investment.
Opportunities for Blackberry include great features and great product with advanced
technology. Blackberry’s phones have always included great features such as blackberry
Messenger, great camera features, and their keyboards. Main threat for Blackberry’s current
market is mostly competition. Phones such as Apple and Android have been on the market with
great innovations in the past couple of years while blackberry has been in the planning stage of
this new device. This has allowed these phones to take over the market and take over smartphone
sales.
Marketing Mix: (4Ps)
Product: The BlackBerry Z10 is an exceptional new smartphone that runs on the re-engineered
BlackBerry 10 platform. It is set to deliver a smooth and seamless operating experience. It also
includes a gesture-based responsive interface which is well supported by numerous features like
BB Hub, Messenger and BB10 browser. The Z10 offers a fantastic experience that surpasses
those offered by IPhone and the Samsung Galaxy line.
Price: Suggested Retail Price is $199.99 with a two year contract but, prices will vary
depending on the carrier.
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Place: Blackberry worked very closely with Best Buy to make sure they had product knowledge
but, other carriers that will sell the phone are T-Mobile, AT&T, and Verizon. Sprint on the other
hand will not be selling the Z10, but will the Q10.
Promotion (Target Market):
BlackBerry needs to have opinion leaders in marketing communication. This will involve
featuring opinion leaders in their advertisements as well as promoting social media awareness.
They also need to differentiate their target consumer base by their specific needs from the
business users and the non-business users. To achieve top brand status, they will also need to
ensure that all the major carriers agree to offer both the Z10 and the Q10 phones.
Conclusion:
As aspiring business majors we wanted to achieve and understand what is takes to turn
things around in order to save a company. To come up with different approaches we may
encounter when we become manager/ employees in the business world. Finding ways in order to
distinguish products than those of the ones offered by the competitors. We expect to increase the
Blackberry’s marketing sale for its product and help mature their business by encountering their
weaknesses and imputing our skill to improve this issue.
With their struggles and the money invested, Blackberry can turn their revenue around if
they change their marketing strategy around. Even though our ideas were at a more corporate
level the representative did not take our ideas seriously. She was excited in informing us all
about the new phone and how different and better the new phones were but, her excitement
ended there. If our ideas were a mockery to them we still believe that our ideas are accurate
because we as college students are always on the lookout for new devices. We follow what is in
style and always want to be the first to get a hold of them. I am guilty in admitting that our needs
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for name brand items are because of commercials and celebrities sporting the latest sensations.
We have noticed that Blackberry has been able to capture the attention of their regular business
consumers, but are lacking in the younger age group.
Hopefully, Blackberry will understand that we as a group were trying to help them
become a hit like IPhone and Samsung Galaxy. We were trying to help them to become the top
three again in the market share and save the company. We will continue to follow up with the
launch and hope that these phones are everything our representative told us they were.
Pyramid
Three investments that BlackBerry must
undertake to increase their Z10 Smartphone
sales to reverse six quarters of declining sales
and market share losses.
Adopt new marketing
& advertising strategies.
The existing
marketing
strategy is
not operating
at its
maximum
potential.
The current
advertising
2.
does not
compete
head on with
rivals. E.g.
Apple.
Provide incentives
To improve the overall
user experience.
Limited
accessories
&
1.
lack of pairing
support to
other BB
devices.
There are
limited apps
available at the
BB App world
store.
Increase the number
Of carriers & authorized
providers.
The current
amount of
carriers
1.
limits access
for new
users.
Lack of a
universal
smartphone
for the
authorized
carriers.
2
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Work Cited
"Android Leads in U.S. Smartphone Market Share and Data Usage." Newswire. The Nielsen
Company. Web. 03 05 2011.
<http://www.nielsen.com/us/en/newswire/2011/android-leads-u-s-in-smartphone-market-shareand-data-usage.html>.
Research in Motion, . N.p.. Web. 1 May 2013.
<http://www.blackberry.com/select/get_the_facts/pdfs/rim/rim_history.pdf>.
NP "RIM Web Usage Down 25% in the Past Year." Chitika. N.p.. Web. 16 August 2012.
<http://chitika.com/insights/2012/rim-annual-report>.