Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
Introduction
Research In Motion (RIM) is a company that has been around since 1984. They have created
and developed the well-known Blackberry Smartphone chain. With the increasing demand for
Smartphone’s, RIM has many openings to increase their sales and popularity. The company is looking to
expand its market share to consumers by taking over its opponent’s share of the market.
Problem
Research In Motion (RIM) is looking to increase their market share of the consumer market for
Smartphones while they hold on to their business market share.
Facts/Assumptions
RIM is a trustworthy company that has been around since 1984. Their head office is located in
Waterloo, Ontario with other offices located in Slough, Berkshire, United Kingdom; Ottawa, Ontario,
Canada; Mississauga, Ontario, Canada; and Irving, Texas, United States. RIM’s main product, Blackberry
was released in 1999. Jim Balsillie and Mike Lazaridis (CO-CEO and President) wanted to create software
technology for businesses that answered to their friends’ needs at the time. Now that RIM has
developed this software, they intend to compete with top competitors such as Apple’s iPhone and
Google’s Android who have the market share of consumers. Our assumptions are that RIM is going to
keep the BlackBerry brand name and develop it. Also, RIM has recently introduced the new BlackBerry
Torch smartphone, which caters to the consumer market. Since RIM has an excellent platform to work
from, their numbers have increased over the last couple of years.
Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
Research
In the first quarter of 2010, RIM has sold 54.7 million units worldwide, which is up 56.7% from
2009. This shows that RIM is already making progress in the consumer market. RIM currently has 50
million loyal customers worldwide and it is only going to grow. The BlackBerry Torch is the newest
smartphone that RIM has produced. The Torch includes a new upgraded web browser, an 8.1 cm touchscreen with a slide out QWERTY keyboard and a 5 megapixel camera. There are eight BlackBerry models
compared to only three iPhone models. Some advantages about having a BlackBerry include the option
of a replaceable battery, more security, and an overall higher call quality compared to its competitors.
RIM has shipped 115 million Blackberry Smartphones to date and subscribers have grown over the last
year, which accumulates to RIM having 55% of the market share in North America.
Competitive Analysis
RIM’s major competitors are Apple and Google’s Android. For the purpose of this case study, we
will focus mainly on Apple smartphones. Apple’s competing products include the iPhone 3GS and their
latest model, the iPhone4. Apple and the iPhone4 are successful because they have a solid base in the
consumer market. They are strong in the consumer market because they position their products to
attract the everyday consumer. This market consists of strivers, innovators, and early adopters whom
are trendy, yet active consumers that favour stylish products. Since Apple doesn’t position their
products towards the business community, they have little impact on the business oriented market. This
factor is what RIM can exploit. RIM and BlackBerry has always catered to the business community, so it
is only necessary that they position their products to target these potential consumers.
With the BlackBerry Torch, RIM is challenging Apple by offering a product that is playful enough
to satisfy the everyday consumers, while still staying true to their business roots by including business
Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
applications within. The price range between RIM’s BlackBerry and Apple’s iPhone are relatively close,
so it allows RIM to stay competitive. This multifunctional product allows RIM to have the competitive
advantage in applications that is well suited for the business world, but also includes social
media applications for the average consumer.
SWOT
Strengths
- BlackBerry is a strong brand name
- Brand loyalty – people are addicted/ dependent
on their BlackBerry
- Good reputation of the BlackBerry brand for
being efficient, good quality, and secure
- A lot of people are aware of the BlackBerry
brand
- RIM is growing in the global market
- RIM is a diverse
- RIM is well establish in its industry for 20 years
- RIM has over 7000 employees
- RIM has a strong research and development
team with lots of innovative ideas
Opportunities
- There is a growing demand for smartphones
- People are becoming more dependent on
technology
- Brand awareness is growing
- Globalization – people can buy a BlackBerry in
Canada and use it in any of the 135 countries
with a supporting network
- The economy is getting stronger so people are
able to afford a BlackBerry
Weaknesses
- Not particularly good at marketing to the
consumer market
- RIM is dependent on enterprise market for too
much of their revenues
- RIM doesn’t portray a clear message of what
their products are all about to the consumer
market
-
Threats
- Google Android and Apple products are
becoming popular
- Rapidly changing technology
- Economic downturn causing decline in the
- Decline in reputation due to lawsuits and
countries banning the BlackBerry technology
Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
Target Market
RIM intends to reinforce and solidify its Canadian upstart brand by innovating for the Canadian
urban consumer smartphone market because it believes its customer base will help build a
Canadian product that is attractive internationally, while already acknowledging that it holds a
strong market share of the enterprise applications internationally.
We will focus our product strategies on Canadian students age 15 – 35, which is 27% of the
Canadian population. This Generation Y and lower end of Generation X student will be most
responsive and reachable because they are likely to share the similar learning institution and
extracurricular spaces requiring them to take part in high learning curves situations – meaning
that they will be desiring and requiring the convenience of an all in one device that gives them
intuitive savvy interfaces that are ready work applications and social networking and lifestyle
management applications.
It is believed that this demographic has a dual psychographic characteristic where they possess
consumer behaviours belonging to both the innovators and the strivers categories of the VALs
Framework. They are innovators because they are young Canadians prescribing the BlackBerry
message: “What happens when fun meets business? Fun with business, business with fun.” and
that they are an entitlement generation psychologically and cognitively ready to become
change leaders with the purchasing power for “cultivated taste and finer things”. The life
stages of the demographic in question is young and posses a complex buying behaviour and we
expect our product marketing strategy answers their need for trendy and fun loving activities,
Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
value based and stylish products that define success and status, usage rates of products, their
user status, and loyalty satisfied by the products benefits
Solution
In order to for RIM to successfully expand into the consumer market while staying firmly
attached to its business market share, they should emphasize product excellence through the
branding and positioning of their new BlackBerry Torch 9800 smartphone. The Torch satisfies
the needs of the target market as it allows for easy access to a variety applications intended for
both business and entertainment. Product excellence is the most cost-effective means of
developing brand loyalty within the desired target markets as it accentuates the BlackBerry
technology, which is attractive to both innovators and early adopters. Focusing on product
excellence will improve the customer opinion of the Torch and RIM’s entire smartphone
product line. Constantly reinforcing the image of the Torch and other BlackBerry products will
keep the BlackBerry brand strong and further solidify its position in the marketplace. Focusing
on the vast abilities of BlackBerry products will keep RIM at the leading edge of the smartphone
industry. Investment in the BlackBerry brand will strengthen the competitive advantage of the
company by exploiting the increasing demand for smartphones in Canada and around the
world. The implementation of the product excellence macro strategy is the most appropriate
for the selected target market as it brands BlackBerry products as multifaceted tools which can
be used for business, entertainment, and connecting to social networks. All these options are
important to the target market as they provide convenience, speed and quality to their mobile
device. Developing product excellence also engages the target market, a group that are active
consumers and the emerging business leaders. Emphasizing product excellence will build a wall
Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
around the position of BlackBerry and RIM in the marketplace as it develops a sustainable
competitive advantage by allowing BlackBerry to expand into the consumer market while
holding on to its large share of the business market.
Implementation Plan
To implement the macro-strategy of product excellence to our target market, we will
first introduce a series of television ads promoting the BlackBerry brand satisfying the needs of
the consumer market and the enterprise market. The ads will be broadcasted during primetime
television slots where we will be able to expose our product to a majority of our target market.
We will then transition into using product placement in popular television shows to further
promote the BlackBerry brand. This will expose the audience to the adaptability and
accessibility of the BlackBerry products. Finally, we will develop web based ads that will appear
on social networking sites, which will showcase the BlackBerry’s social networking capabilities.
Product: show the full capabilities of the BlackBerry product without the targeted consumer
having to purchase it. These ads will provide a clear distinctive brand image to the target
market.
Price: These ads will be value based in that they show the target market the benefits and value
of the product before they make their purchasing decision.
Place: The ads will communicate to the target market that the BlackBerry products are available
across Canada in all major retailers.
Networth - Group B: David Jones, Edward Yuen, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
Promotion: These promotions will effectively communicate the value of the BlackBerry product
to our target market. This communication will allow for a closer relationship with the target
market.