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 2 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 3 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 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 4 GPS enabled Media player Weaknesses Limited product line; only carries smartphones Risky foreign operations Weak launches of different phone types, eg. The BlackBerry flip phone Opportunities Expand product breadth Grow on international expansion Expanding depth in the smartphone line Develop and diversify marketing strategies Appeal to new markets Threats 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 5 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 6 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. 7 Bibliography Chen, G. (2009, October 5). Women use social media more than men: what’s news orgs’ response? Retrieved October 21, 2009, from Nieman Lab: http://www.niemanlab.org/2009/10/women-use-socialmedia-more-than-men-whats-news-orgs-response/ CW, T. (n.d.). Privacy Policy. Retrieved October 2009, 2009, from The CW: http://www.cwtv.com/thecw/privacy-policy Butcher, D. (2009, October 15). Manufacturer . Retrieved October 20, 2009, from Mobile Marketer: http://www.mobilemarketer.com/cms/news/manufacturers/4414.html (2009). In L. Grewal, Marketing: Canadian Edition (p. 65). 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