BlackBerry's Rise in Brand Power

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BlackBerry’s Rise in
Brand Power
The Dueling Marketing Strategies of
RIM versus Apple
The Associates
Damara Forcan, Danny Modhgill, Laticia Fitzgerald,
Samantha Small, Stephanie Murao
Set H
MKTG 1102
Tom Jopling
October 22, 2009
Table of Contents
Case Situation ............................................................................................................................................... 3
Problem ......................................................................................................................................................... 3
Causes ........................................................................................................................................................... 3
Promotion ................................................................................................................................................. 3
Branding .................................................................................................................................................... 4
Diversity of Product .................................................................................................................................. 4
Environmental Scan (SWOT): RIM ................................................................................................................ 4
Strengths ................................................................................................................................................... 4
Weaknesses .............................................................................................................................................. 5
Opportunities ............................................................................................................................................ 5
Threats ...................................................................................................................................................... 5
Alternative Solutions..................................................................................................................................... 5
Product Depth ........................................................................................................................................... 5
Co-Branding .............................................................................................................................................. 5
Market Development ................................................................................................................................ 6
Solution ......................................................................................................................................................... 6
Action Plan .................................................................................................................................................... 6
Concepts Used From the Course .................................................................................................................. 7
Co-Branding .............................................................................................................................................. 7
Corporate Social Responsibility ................................................................................................................ 7
Brand Awareness ...................................................................................................................................... 7
Diversification Strategy ............................................................................................................................. 7
Innovation ................................................................................................................................................. 7
Marketing Development Strategy............................................................................................................. 7
Product Breadth ........................................................................................................................................ 7
Product Depth ........................................................................................................................................... 7
Product Development Strategy ................................................................................................................ 7
Product Placement.................................................................................................................................... 7
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Bibliography .................................................................................................................................................. 8
BlackBerry’s Rise in Brand Power
The Dueling Marketing Strategies of RIM versus Apple
Case Situation
Research In Motion (RIM) is a software technology business which focuses mainly on
voice and data transmission. First established in the late nineties, the Toronto-based company
has progressed into a force within the technological business world. RIM has created a name
for itself by consistently producing award-winning products and services, as well as bringing
forth technologies unique to the corporation. RIMs’ most notable product, a mobile device
dubbed the “BlackBerry” has implemented itself into the everyday lifestyle of individuals in
over 140 countries. BlackBerry has already proven itself as a product and a brand, and although
it has maintained its sales and reputation, rival competitors are beginning to improve their own
brands and are making advances, posing a serious threat.
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. Other organizations are breaking the mould by releasing
entertainment-based technology. For example, the iPhone which is produced by Apple, could
be considered BlackBerry’s stiffest competition yet. The rival phone sets out to target a
younger, more fun-focused consumer. Because of the demand for a less serious, less business
orientated mobile device, RIMs’ challenge is to harmonize the product it already has with the
upcoming demands of a client concerned with leisure. In short, RIM needs to harmonize work
and play.
Problem
After reviewing and acknowledging all aspects of our case, it is understood that our
problem is to develop a balance between business use and recreational use of RIM products for
our consumer target market.
Causes
Promotion
Throughout the past RIM has almost solely relied on its carriers to promote their
products. No carrier is owned by RIM, and no carrier only offers BlackBerry as its product. Each
and every carrier sells multiple brands and phones, which in turn leaves BlackBerry on the same
platform as everyone else. Carriers are concerned with their own profit. If they have the
opportunity to make more revenue from brands other than RIM (BlackBerry), than those
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phones will receive preference and be promoted more heavily. RIM does not exercise control
over its’ carriers. Without ownership of their own store, RIM loses the opportunity to interact
with clientele on a more personal level. Other companies, such as Apple, have had major
success with store branches. BlackBerry should also take note of its successful competitor and
invest in promoting itself through other avenues, such as commercials, viral marketing,
magazines and product placement.
Branding
RIM has done an excellent job of establishing the BlackBerry brand. Whether you live in
North America, Asia, or Timbuktu, the majority of society is aware of what a BlackBerry is. RIM
has relied on their solid reputation in place of effective promotion, such as catchy slogans, eyecatching magazine ads, and famous product placement. That is not to say that RIM has not
made any effort toward branding, however, the attempts at a fresher brand have been
forgettable. BlackBerry has fallen into a “strictly business” stereotype, and is having a hard time
heading in a new direction. In divergence to other smartphones, whose campaign successes are
rising, BlackBerry’s advertisements are anything but unique; they lack memorable brand
association. BlackBerry’s slogan, “BlackBerry Love” or “Life on BlackBerry” is virtually unknown
by even its most committed consumers. Furthermore, because RIM has initially branded itself
as “business professional,” they have lost the entire share of the market that does not fall
under the business category.
Diversity of Product
Since the establishment of RIM, BlackBerry devices have been targeted solely toward
corporate and business persons. BlackBerry products predominantly possess work and
business related applications and features. Therefore, BlackBerry is mainly thought of as a
corporate and work-related purchase, which reduces potential for revenues and successes. In
contrast, iPhone has had mass success due mainly to recreational and entertainment based
features. RIM needs to tap into these niches and include them alongside their business
orientated BlackBerry devices. By doing this, RIM and BlackBerry could become a mobile device
powerhouse. Developing a “best of both worlds” attitude would result in progressive and
positive advancement. Though RIM has made some changes in direction by releasing some
trendy, more fun-related features and applications, there is still much room to grow. In order to
compete in a new target market, BlackBerry must make a consolidated effort in producing a
device that holds major appeal to a new type of consumer outside of their Wall-Street loyalists.
Environmental Scan (SWOT): RIM
Strengths
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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
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
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GPS enabled
Media player
Weaknesses
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Limited product line; only carries smartphones
Risky foreign operations
Weak launches of different phone types, eg. The BlackBerry flip phone
Opportunities
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Expand product breadth
Grow on international expansion
Expanding depth in the smartphone line
Develop and diversify marketing strategies
Appeal to new markets
Threats
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Weakened economy due to the recession
Possibility of becoming a passing trend
Competition, more smartphone options, for example, the iPhone vs. BlackBerry Storm
Rely on retailer carriers alone to promote their products
Alternative Solutions
Product Depth
People all over the world are becoming increasingly environmentally responsible. Being
environmentally friendly is a trend in new markets; therefore it only makes sense for BlackBerry
to capitalize on the “Green” opportunity. Studies report that 55% of consumers base their
purchases on how environmentally friendly a product is. RIM has the opportunity to reduce
their carbon footprint by manufacturing a line of eco-friendly BlackBerry’s, which would not
only target this market share, but pertain to social responsibility. The “Green” BlackBerry would
carry out the same tasks as the original model. Phones would be made with bio-plastic
materials that are biodegradable and recyclable. Packaging for such a phone would also be
made with recyclable materials. Furthermore, we would also insist upon the use of a more
energy efficient adaptor.
In general, an eco-friendly phone is positive, however there are disadvantages. Ecofriendly target market consumers may not hold much value for devices such as BlackBerry. An
environmental launch would be a risk. False perceptions and misunderstandings of what being
eco-friendly actually consists of could lead to an unsuccessful product.
Co-Branding
To enhance consumers’ perceptions of a product, the practice of cobranding can be
highly beneficial. If RIM were to take the co-branding direction, they would need to be smart
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about who they select to do business with. An excellent company that RIM should form a
connection with is the popular television network The CW Network. As America’s fifth
broadcast network and the only network targeting women ages 18-34, RIM can reach a new
audience. Although tit may seem like a small demographic, studies have shown that women are
more likely to use social media than men. Both Facebook and Twitter report that 57%, of their
users are women. This demographic of 18-24 year old women present the opportunity to
develop a more personal client connection. BlackBerry and the CW Network can have a mutual
reciprocation, where each company grows and expands with the assistance of the other. Cobranding does have some drawbacks, such as creative differences or weak identity as a dual
brand, however, the opportunity to combine two successful organizations could lead to major
success if executed properly.
Market Development
BlackBerry is already a proven device and it is primarily known as a business tool. RIM
can continue to produce their product, but build upon their empire with market development.
Opening up to a new target market other than the business professionals of the world,
BlackBerry can reach a new audience. This will give RIM the chance to attract the recreational
users that have written off BlackBerry as nothing more than a business tool. Market
development will allow BlackBerry to stay true to its product while building upon itself. RIM
must be focused and distinct with their marketing. Changing an individual’s perception of a
product can prove to be difficult, with the proper promotions and unique advertising, it can be
accomplished.
Solution
Without any adjustments to the BlackBerry products, RIM must exert more effort into
its promotion. RIM must aim to communicate a more equal and balanced manner with regards
to business mentality vs. recreational lifestyle to their target market.
Action Plan
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, 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
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thinking, and by cultivating an improved marketing development strategy, RIM can evolve as a
brand and a corporation.
Concepts Used From the Course
Co-Branding

Teaming up with CW network to promote BlackBerry
Corporate Social Responsibility

The “Green” BlackBerry addresses ethical, social, and environmental concerns
Brand Awareness

The familiarity of BlackBerry with consumers all over the world; recognized by their name and
logo
Diversification Strategy

Using the “Green” phone to appeal to a new segment.
Innovation

Using the latest technology to transform your products and adapt to increasing consumer
demands and trends
Marketing Development Strategy

Extending our target market to include a younger, entertainment-based crowd.
Product Breadth

Developing new products to add to RIM’s resume, just as Apple has phones, computers, iPods,
etc.
Product Depth

Introducing the “Green” BlackBerry for environmentally friendly users.
Product Development Strategy

Redesigning your product to better suit the needs of your consumers
Product Placement

Partnering with the CW Network, placing BlackBerry products in popular TV programs and
commercial ads.
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http://www.cwtv.com/thecw/privacy-policy
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http://www.mobilemarketer.com/cms/news/manufacturers/4414.html
(2009). In L. Grewal, Marketing: Canadian Edition (p. 65). McGraw-Hill Irwin.
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http://gedblog.com/2008/10/15/rim-what-me-worry/
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