Case Assignment:
Marketing Strategies
RIM versus Apple
Team Members:
Maninder Badial
Kyle McIntosh
Thomas Ngo
Gary Ginn
Harvard Sung
Jas Sanghera
Introduction:
In 1984, a small entrepreneurial business called Research in Motion (RIM) was
created by three engineering students at Waterloo University in Ontario, Canada. At the
time, the business' purpose was to fulfill the needs of their friends. But as time passed,
they slowly climbed from a two way pager to competing with the world to be the
number one provider of mobile internet telecommunications and entertainment devices.
Problem Identification (Objectives):
The issues are to determine the appropriate strategy for marketing BlackBerry
Smartphones, to promote new products and determine a reasonable yet profitable
selling price.
Facts & Assumptions:
Facts
 BlackBerry isn't only competing with apple, but with the whole world
 More than just a product, brand inspires extreme loyalty and interest among
consumers worldwide.aka “Crackberry.”
 Known for their traditional QWERTY keyboard
 BlackBerry to release the BlackBerry Storm2
 Apple recently released its iPhone 3GS
 iPhone users:
 15-24
31%
 25-34
32%
 35-49
31%
 50+
6%
 The following values are only approximates:
 Estimated World Population: 33.5 million (33,492,822) 100%
 Symbian OS users: ~17 million people (16,846,889.466) 50.3%
 RIM OS users: ~7million people (6,999,999) 20.9%
 iPhone OS users: ~4.6 million people (4,588,516.614) 13.7%
 Windows Mobile: ~3 million people (3,014,354) 9%
 Google Android: ~1 million people (937,799) 2.8%
 Other: ~1.1 million people (1,105,263) 3.3%
Assumptions
 Different strategies have different target market
 The pricing will continue to be competitive with the BlackBerry products (due to
other phone companies)
 In the case BlackBerry/RIM has not started large scale expansions into the Asian
markets
 RIM has the necessary funding to support upgrades and research to the new
BlackBerry as well as the costs of advertising and be able to implement the plan.
Key Findings:
Value Proposition of BlackBerry:
 Focus on E-mail
There was a sizable target market of corporate users for whom e-mail access on
the go was very important.
 Keyboard vs. Pen based Input
The keyboard approach has led many to buy the BlackBerry because many
people prefer the feeling of a keyboard rather than a pen based input.
 Innovation of the trackwheel
It made navigation through the BlackBerry menu more easily accessible and it
was also conveniently located.
 Push E-mail
This was the key RIM innovation that led to many addictive qualities because
you were able to start an instant messaging style conversation with someone
far away. It made the BlackBerry standout from its competitors for a very long
time.
 Bullet Proof Security
RIM focused on building an enterprise server by providing an end-to-end
security based on triple DES encryption. Allows corporate IT to control and
manage the large number of BlackBerry’s being deployed to throughout their
workforce.
iPhone OS Key Information
 Apple has its own mobile operating system
 The iPhone OS, previously known as OS X iPhone, is the operating system
developed by Apple Inc. for the iPhone and iPod touch.
 iPhone is popular for its downloadable applications.
 As of September 28, 2009, there are over 85,000 applications officially available for
the iPhone and 2 billion downloads had been achieved.
Nokia - Symbian OS Key Information
 Adopted the Symbian mobile operating system
 Symbian OS was created with three systems design principles in mind:
 the integrity and security of user data is paramount,
 user time must not be wasted
 all resources are scarce
Windows Mobile OS
 Windows Mobile is a compact operating system developed by Microsoft, and
designed for use in smartphones and mobile devices
 It is the 4th most popular smartphone operating system, with a 9% share of the
worldwide smartphone market.
 Most Windows Mobile phones come with a stylus pen, which is used to enter
commands by tapping it on the screen.
BlackBerry Storm 2 Specifications:
Cost Breakdown
 BlackBerry Bold
Bill of Materials (BOM)
Manufacturing cost
Production cost
= $158.16
= $11.25
= $169.41
 Apple iPhone
Touchscreen
= $33.50
Touchscreen controller
= $1.15
Production cost 4GB model
= $245.83
Production cost 8GB model
= $280.83
 Apple iPhone 3G
Production cost - $174 (dropped to $148 in 2009 and expected to drop to $126
in 2012)
 BlackBerry Storm
Qualcomm communication processor
= $35
3.2-megapixel camera
= $13
Production cost
= $203
The good: The iPhone 3G S finally adds common cell phone features like multimedia
messaging, video recording, and voice dialing. It runs faster; its promised battery
life is longer; and the multimedia quality continues to shine.
The bad: The iPhone 3G S' call quality shows no improvements and the 3G signal reception
remains uneven. We still don't get Flash Lite, USB transfer and storage, or
multitasking.
SWOT Analysis:
Environment
Internal
External
Positive
Evaluation
Strengths:
 Brand Loyalty
 Good Brand Awareness
 92% of sales are international
(global brand)
 Diverse business- award
winning products, services
and embedded technologies
(variety of phones)
 Battery Life
 Endorsements- popular
people that use BlackBerrys
(ie: U2 commercial)
 Can’t wire tap a BlackBerry
(more privacy)
 BlackBerry App world
Opportunities:
 Rhapsody
 Run more Apps
 Google Apps
 Video calling
 4G/5G Networks
 Asia/Eastern markets
Marketing Mix:
Product:
 BlackBerry
 Different Models:
 Storm, Pearl, Curve,
7100, 7200, 8700, 8800
Promotion:
Verizon Wireless' back to school
promotion:
 Offered a Buy One Get One
Free (aka BOGO, side note:
expired Oct 10)
Negative
Weaknesses:
 Navigation System
 Slow web browsing and overall
functionality
Threats:
 Other companies taking market
share
 Apple- iPhone, OS
 Palm OS Pre
 HTC, Google Android, Mytouch
 Symbian OS- Nokia and NTT
DoCoMo
 Windows Mobile
Price:
 Ranges from $399.99 - $649.99 CDN (with no
contract)
 Ranges from $9.99 - $249.99 CDN (with a
contract)
Place:
 Worldwide
 Especially in business-filled locations (for
example, downtown New York City,
downtown Toronto, downtown Vancouver)
 High distribution intensity
 Corporate market
Target Market:
The original objective of BlackBerry phones was to aid business professionals.
The functions like the mobile trial version of Microsoft Office and wireless connectivity
ability on the go for faster paced Internet Connection are just some of the reasons why
business professionals have decided to purchase the BlackBerry.
In recent news, BlackBerry has begun to target younger generations through
style and function. In the recent BlackBerry models, it comes with a camera, preloaded
series of games and applications such as Facebook. It has also launched its BlackBerry
App World with applications of all sorts to target many different types of people
Differentiated Segmentation Strategy:
A strategy through which a firm targets several market segments with a different offing
for each.
 BlackBerry Pearl and Pearl Flip : Teen market
 BlackBerry Storm: Consumer segment
 BlackBerry Tour and BlackBerry Curve 8900: Enterprise customer
Competitive Analysis:
WINDOWS MOBILE (BlackBerry vs. Windows Mobile)
 It is the 4th most popular smartphone operating system, with a 9% share of the
worldwide smartphone market.
 Windows Mobile's share of the Smartphone market has fallen year-on-year,
decreasing 2.7% in 2009
Market Share:
 In 2004, Windows Mobile accounted for 23% of worldwide smartphone sales.
By 2008, its share had dropped to 14%
 In February 2009 Microsoft signed a deal with the third largest mobile phone
maker, LG Electronics, to license Windows Mobile on 50 upcoming LG smartphone
models
 But in September, 2009, Palm, Inc. announced it would drop Windows Mobile
from its smartphone line-up
 The Samsung Omnia Pro B7330 runs the Windows Mobile operating system.
 An October 2009 report in DigiTimes said that Acer will shift its focus from
Windows Mobile to Google Android.
Identify the current/potential competitors & relevant products
 Symbian
 BlackBerry (RIM)
 iPhone (Apple)
 Others: Google Android, Palm Pre, etc
Other companies versus your company
 Symbian, Apple, and BlackBerry blow Windows Mobile away.
Distribution:
 Windows Mobile comes installed in many different phones, which are available
worldwide.
 Most Windows Mobile users are located in North America.
What do you need to consider with regards to the competition for each case?
 Other operating systems user interface
Cell Phone companies that use Windows OS:
 HTP
 HP
 I-Mate
 LG
 Motorola
 Palm
 Pantech
 Samsung
Value proposition of Windows OS
Feature
Windows Mobile 6.5
Standard Pro
Updated lock
X
screen
Updated Today
Screen
X
Updated Start
Screen
X
Internet
Explorer Mobile
X
X
Windows
Marketplace for
Mobile
Windows Media
Player Mobile
X
X
X
X
Microsoft My
Phone
X
X
Social
Networking
Apps
X
X
Designer
themes
X
X
MSN Widgets
X
X
The new lock screen displays new
messages and appointments without
requiring that you enter a PIN when the
phone is locked.
You can easily customize your Today
screen to display and access new emails, text messages, and other highlevel information with a simple tap
The new Start screen provides ultimate
access and control: quickly browse and
open programs; easily customize
program order (move the most used
apps to the top) and add your favorite
web sites
Internet Explorer Mobile 6 provides a
full, rich web viewing experience similar
to the experience on your PC
With Windows Marketplace for Mobile
you can find and download the latest
apps for your phone
The improved Windows Media Player
Mobile lets you view full-screen video
and provides audio and video playback
enhancements, like pausing a song or
video when you receive a call
Use the new My Phone Service to sync
your phone and data to the web so it’s
backed up and accessible
The Facebook Mobile and My Space
Mobile apps, now included on several
phones, let you manage your accounts
and add content while you’re on the go
Express your sense of style with
designer-theme-based phones (like the
new Halo design) or create your own
custom themes
The new MSN Widgets provides realtime information on weather and stocks
Symbian OS
Symbian is the leading OS in the "smart mobile device" market. The only
company that adopted this OS was Nokia, it isn’t a bad OS, but many of the
other competing companies prefer the other OS’s.
What



do you need to consider with regards to the competition for each case?
Other companies can provide better service mobile operating system
Other companies can provide a more user friendly OS
Popularity of other OS’s
Identify the current/potential competitors & relevant products
 RIM – BlackBerry OS
 Apple – iPhone OS
 Microsoft – Windows CE and Windows Mobile
 Others: Palm OS, Qualcomm’s BREW, Google Android, SavaJe, Linux, MontaVista
Are they strong versus your company?
 Symbian is the world's most popular mobile operating system, accounting for
~50% of smart phone sales which makes Symbian strong in terms of market
shares.
How do they compare?
 About 50% of the worlds Smartphone sales is serviced by Symbian
 RIM BlackBerry services is just under 21% of the worlds Smartphone sales
Value proposition:
Symbian’s Value proposition is to create an unparallel open software
platform for converted mobile devices and allow accelerated innovation across the
whole mobile market. Also provides a set of productivity tools (Spreadsheet, word
processor, etc) which allow business professionals on the go to work while moving
around.
Market Share:
 Symbian owns 50.3% of the world market almost 17 million users
Distribution:
Since Symbian is currently only being used by the Nokia company, the
Symbian OS is distributed wherever Nokia distributes its cell phones which would be
worldwide, in many parts of Asia and in North America. Nokia is more of an Asian
based company thus most of its products are focused on Asian stores.
Apple Inc. (OS X iPhone)
Apple is most likely the most well known to North Americans by teens and young
adults. Its iPhone OS is currently the third largest in the world behind the RIM
BlackBerry OS. Apple has launched many other products related to its i____ theme. It
has an application store where apps can be purchased or downloaded for free.
Comparable products:
 iPhone
Market share:
 13.7% of the market share (only for smartphone)
Has a Comparable price:
 Is a substitution for the BlackBerry Storm
Distribution:
 Apple Stores
 Cell Phone retailers
 Stores like Future shop or Best Buy
 The internet www.apple.com
 Almost any other channels where consumers can purchase iPods or Macbooks
Target market:
The market that apple began with when it created its iPhone was for a part of
the market called “creative people”. This target market is very general, but apple
has been able to get people all around the world to notice their products. Also,
MobileMe formerly called .Mac or iTools was collection of online services and
software offered by Apple through paid subscription service. It was designed for
users of Mac OS X. On July 9, 2008, Apple has recent re-launched this service
but it is now targeted at Mac OS X, Windows, iPhone and iPod Touch users.
Apple's Value Proposition:
 A lot for a little
 An Iphone is marketed as a do everything device
 It has compressed many popular products into one small device. (E.g. GPS,
Ebook Reader, handheld gaming) giving the consumer the greatest bang for
buck ratio.
 With the Apps store the possibilities are endless
Comparison Chart of BlackBerry Storm and Apple iPhone 3G S:
BlackBerry Storm
Apple iPhone 3G S
Multi-tasking
Yes
No
Storage (internal)
1GB
16GB/32GB
Removable battery
Yes
No
GPS
Yes
Yes
SMS/MMS
Yes
Yes
Expandable Memory
Yes
No
Wi-Fi
No
Yes
Video Camera
Yes (3.2 MP)
Yes (3 MP)
Screen Size
3.25-inch
3.5-inch
Battery (Standby time)
356 hours
300 hours
Battery (Talk time 3G)
6 hours
5 hours
Media Player
Yes
Yes (integrated iPod)
(Audio, Video)
Bluetooth
Yes
Yes
Touchscreen
Yes
Yes
Growth Analysis:
Market Penetration: employs the existing
marketing mix and focuses the firm’s efforts
on existing customers.
Market Development: employs the
existing marketing offering to reach new
market segments, whether domestic or
international.
Product Development: offers a new
product or service to a firms current target
market.
Diversification: introduces a new product
or service to a market segment that is
currently not served.
Current Market Penetration:
 Global Market (92% of revenues comes outside of Canada)
 Fastest growing company in the WORLD (According to Forbes)
New Product development:
 Implement the 4G network as soon as possible which would make BlackBerry the
only smart-phone device solution with this network.
 Having an HD capable phone with a network faster than your current internet at
home, would most likely put RIM ahead of Apple.
 One of the main advantages that 4G technology will have over 3G is higher data
rates. This will benefit the user by allowing faster access to multimedia and video
while on the move.
 4G:
 A spectrally efficient system
 High network capacity
 A nominal data rate of 100 Mbit/s
 A data rate of at least 100 Mbit/s between any two points in the world
 Smooth handoff across heterogeneous networks
 Seamless connectivity and global roaming across multiple networks
 High quality of service for next generation multimedia support (real time
audio, high speed data, HDTV video content, mobile TV, etc)
 Implement Rhapsody service
 Implement live video conferencing system
Market Development:
 Continue penetrating market of BlackBerry Storm users
 Get into large demographic areas with lots of teens, consumers, and business
professional markets
Diversification:
 BlackBerry LED/LCD Monitor
 BlackBerry LCD/Plasma TV’s
 BlackBerry PC (business computers) and Computer Accessories
 BlackBerry Home Phones
 Offer free media (audio, video, applications, etc) to current customers for a limited
time.
 Offer discounts to current customers if they need to upgrade to a new model.
Strategies/Alternatives
(Alternative Marketing Solutions)
A. Global Expansion & Market Domination Strategy
Goal: to increase Global market share by at least 15%
Expand into Eastern (Asian) market and convert customers from Symbian OS / NTT
DoCoMo, Inc. / Nokia which has over half of the market share for smart phones and
operating systems (OS).
Increase Breadth of RIM and BlackBerry. Also, increase the depth by adding the Omni
Implementation plan:
BlackBerry will increase its Market Diversification by surveying or Data mining what
features are popular in Japan, China, etc and then incorporating them into our new
super phone called the "Omniscient" or Omni, for short.
Advantages:
1. Larger Market with different country culture (learn many new things)
2. Increased Depth: more products available to the customer
3. Can use phone created in Asia and sell it in the Western Nations
4. Increase global Brand Awareness
Disadvantages:
1. Could waste resource - a lot more costs
2. Might be hard to decode information and implement different aspects
3. BlackBerry could change their phones too much and ruin customer loyalty (Brand
dilution: occurs when a brand extension adversely affects consumer perceptions
about the attributes the core brand is believed to hold)
B. Event Promotion Strategy
Goal: To expand the BlackBerry market and promote the reputation of RIM to the whole
world.
Implementing plan:
 Sign a contract with VANOC supporting the 2010 Olympics in Vancouver
 Offer support to athletes and make ads with BlackBerry to promote the phone.
 **Special Olympic event: including door prizes of BlackBerrys.(Special design on
BlackBerry to commemorate the 2010 Olympics in Vancouver Limited Edition only
100 available) will be distributed evenly between events** (99 BlackBerrys /15
events with 7 BlackBerry hand outs will be in the more major events.)
 Update the BlackBerry so that it is looks more sleek and high-tech (more appealing
to new target market)
 Unveiling of the new updated version of the BlackBerry and the Olympic edition
BlackBerry will occur during the opening ceremony on Feb 12, 2010. (One Olympic
limited edition BlackBerry will be given to the mayor of Vancouver.)
 T-shirts (two types: white and black with BlackBerry text across the chest) will be
handed out during the opening ceremony. They will be shot out of t-shirt cannons
into the audience at random.
Why will it solve the problem?
We are introducing BlackBerry to a different target market (younger age group: 1625) thus allowing RIM to compete with Apple head on (in which Apple dominates in)
How would a change in pricing and store operations deliver more sales?
 Lowering the price would influence consumers’ decision making. A cheaper price or
markup for any product will always draw more attention. If the lowered price is
cheaper than the products of its competition, it will sell more.
 Quote: "A change in price will inversely affect the demand of that product"
How/why will the target market respond?
 BlackBerry provides new and improved BlackBerry which draws more consumers’
attention. Consumers enjoy new products and innovations
 People will learn about the new updates and upgrades to BlackBerry's products
during the promotional event held at the Vancouver 2010 Olympics. From this,
they will become curious and begin looking into the products.
Advantages:
1. A lot of people will see the advertisements, Global event- high traffic which leads to
increased number of potential customers
2. Change in target market since BlackBerry will be featured with athletes, hopefully this
will target younger ages from 16-25. This will allow BlackBerry to compete against
iPhone's domination in that target market
3. Promote the good reputation of RIM BlackBerry; North Americans will think of RIM
when someone says Smartphones and less of Apple. This will also show the Canadian
side of RIM since it is a Canadian company after all.
Disadvantages:
1. Going to cost a lot for the contract with VANOC/athletes and setting up ads for
BlackBerry. Also cost of the BlackBerry for the door prizes and upgrades.
2. Advertising space is probably limited due to the fact that we're proposing to sign up
with the Olympics this late.
3. Major risks to the company reputation especially if there are complaints about the
BlackBerry from consumers during Olympics. There will be a big dent in the
reputation of BlackBerry and RIM in the world's eyes. If this occurs, it would take
years to regain their image.
C. Promotional Savings Strategy
Goal: to target lower income bracket individuals and persuade them to buy a BlackBerry.
Implementing Plan:
 Promotion: refer a friend get 20BB (BlackBerry) Bucks- this will appeal to people
with large networks
 Receive a free gift card when signing up for a new contract
 Gift card money value depends on the number of years the contract is signed for
e.g. 1 year = $50
2 years = $100
3 years = $150
 Offer free media (songs, videos, ring-tones, etc) and applications for a limited time
after signing a new contract with the cellular company
Advantages:
1. Potentially attract a number of new customers
2. Refer-a-Friend program, free advertising and gain publicity
3. Long-term customers, gain profit in the long run
Disadvantages:
1. High risk involvement
2. Needs finance for the promotion
3. Short-term: Lack of customers may risk of having no profit
Recommended Solution
The recommended solution is Strategy A to promote global expansion and strive towards
market domination. BlackBerry will implement a Concentric Market Diversification
strategy by surveying or Data mining what features are popular in Japan, China, etc and
then incorporate them into our new super phone called the "Omniscient" or Omni, for
short.
Implementation Plan:
1. Begin Research Process
2. Find what appeals to consumers in the Asian Smart phone Market. Such as, features,
design, pricing information, and demographic information.
3. Design the BlackBerry "Omni"
4. The Phone will incorporate features from the previous models, such as the QWERTY
keyboard, and features that are popular in the new market, such as the E-money
services and "Gyaru-moji" texting options.
5. Select an Asian cell phone service provider
 The provider should be reliable and popular so BlackBerry phones can be
available to as many new customers as possible
 SoftBank service provider is very popular in Asia
6. Set up an overseas BlackBerry production plant
 With a local production plant it will cut down on transportation costs therefore
allowing BlackBerry to offer their phone at a lower price making it more
appealing to the market.
7. Create Media Buzz
 Show the BlackBerry "Omni" at this year’s Consumer Electronics Show in Las
Vegas
 This will create all sorts of hype that will be good for the sales of a product.
8. Open discount BlackBerry Stores in major cities all over Asia
 This is where consumers can come and purchase products at lower prices.
Plan B
The backup solution is Strategy B where RIM strategizes in advertising projects during
events. It is a solid alternate solution since the advertising project will be held during the
Vancouver 2010 Olympics and there will be millions of people attending to promote the
product.
Plan of Action:
1. A new design project which will update the previous BlackBerry phones so that it will
look more sleek and high-tech in order to be appealing to the new target market.
2. Then RIM will sign a contract with Vancouver Organizing Committee (VANOC), the
committee that is responsible for organizing and supporting the 2010 Olympics in
Vancouver.
3. Once a contract is signed and approved, RIM begins contacting the athletes to offer
support. In return for RIM's support, the athletes will agree to be in BlackBerry
advertisements (televised commercials, posters and billboards) to promote BlackBerry
phones.
4. RIM will begin modeling the Olympic 2010 Limited Edition BlackBerry. Will include a
special design on them to commemorate the 2010 Olympics. There will only be 100
Vancouver Limited Edition available that will be distributed evenly between events.
5. RIM will also promote a "Special Olympic event." This special event includes door
prizes of BlackBerry phones.
6. The BlackBerry's will have a 7 Limited Edition BlackBerry's will be handed out in each
of the 15 events (99 total). The one remaining BlackBerry will be given to the Mayor
during the opening ceremony.
7. An unveiling of the new updated version of the BlackBerry and the Vancouver
Olympic Special Edition BlackBerry will be held during the opening ceremony on
February 12, 2010.
8. There will be two types of T-shirts available. A white and black shirt with text with
BlackBerry text across the chest. These T-shirts will be shot out of t-shirt cannons
into the audience.
Course Concepts
 Marketing Mix (4 P's) - We used marketing mix to analyze the type of product is
being marketed, how much the product is retailed for, what type of advertising
and marketing strategies are in place, and the location of where the product is
marketed and sold.
 SWOT Analysis - We used this concept to form out alternatives and used to
compare with the competition
 Growth Analysis - Growth Analysis helped us in determining possible solutions to
RIM's/BlackBerry's problems. This concept also contributed to the opportunities
part of SWOT analysis
 Segmentation-targeting-positioning - We used this concept to find the target
market of the BlackBerry and iPhone
 Market research process - We used this when comparing the competition
 Consumer decision process - This is used to see why consumers bought the
competition's products over BlackBerry's.