Marketing Re search Group Research Project Blackberry Group Members Preeti Chaudhary Dipendra Dhankhar Aman Prabjyot Singh Sergii Naboka Aakash Patel 10/10/2014 BlackBerry CONTENT LIMITATIONS STATEMENT…………………………………………………….……………………..……2 RESEARCH PROPOSAL……………………………….………………………….……………………………2 INTRODUCTION………………………………………………………………….………………………………3 SITUATION ANALYSIS………………………………………………………….…………………..…………3 Marketing Problem/Opportunity……………………………………...….……………………………4 Marketing Research Problem ……………………………………………………………………………4 Research Objective ……………………………………………………………………………………………4 Research Design…………………………………………………………………………………………………4 Project Budget …………………………………………………………………………………...………………5 Project Schedule……………………………………………………………………………...…………………5 Category Segmentation………………………………………………………………………………………5 Market Share……………………………………………………………………………………...………………6 Recent product innovations……………………………………………………………….………………6 SWOT Analysis……………………………………………………………………………………………………7 FOCUS GROUP REPORT………………………………………………………………………………………8 Conclusion & Recommendations……………………………………………………………..…………9 ON-LINE SURVEY REPORT………………………………………………………..………………………10 Conclusion & Recommendations …..…………………………………………………………………12 APPENDIX A – SCREENER…………………………………………………………….……………………13 APPENDIX B – DISCUSSION GUIDE……………………………………………….……………………17 CITATION…………………………………………………………………………………….……………………20 1 BlackBerry LIMITATIONS STATEMENT This project is limited by conditions of providing proper focus group research, where participants could not be filtered by screener that might give flawed results. Also there were no BlackBerry users among participants, and the focus group was done once and not repetitive, as well as online survey. As a result conclusions are considered directional, but not statistically predictable and accurate. RESEARCH PROPOSAL BlackBerry (Formerly known as Research in Motion) There is Considerable dip in the demand of blackberry. In this Market research we will try to figure out why there has been a dip in the demand and suggest a solution to revive the sales. Category – Wireless handheld devices Store - Best buy Downtown, Future Shop, Wireless wave, Sources and all the mobile service providers. Predominant Brands - Nokia, Samsung, HTC, Sony, LG, and I-phone. Blackberry - The distinguishing feature of this brand over the other is The QWERTY Key pad. It is designed to help the people who need access to their Emails, Massages and Text for their work on the run. I-phone – The brand Apple Inc. is great in term of “User Interface” and has been successful in tacking the experience of using a touch screen phone to a different level. Samsung – Samsung has also been in great competition with I-Phone on the “User Interface” that is android. Sony – Sony has been known for its great on the go music and the best cameras on the phone. Nokia – Windows just bought the entire segment of mobile market from Nokia so I think it is best to suggest that Windows User interface is the key distinguishing factor. 2 BlackBerry Price Range: The lowest Model starts from $89.99(Blackberry Q5) and goes up to a range of $969 (I-Phone 6). Availability: The category is extremely easy to shop as the availability and the comparability of the product is Very high. Strengths – The fact that the product has no direct Competition in this field. Blackberry as a brand is known for making SMART phones with QWERTY key pads, since not too many companies are coming in to the section of the market. Secondly the Blackberry Messenger is the USP for this brand. Weakness- The weakness of the brand stands the same from the very beginning that is a bad app store. The functionality of the app store is not that great. INTRODUCTION BlackBerry Limited, formerly known as Research In Motion Limited (RIM), is a Canadian telecommunication and wireless equipment company best known to the general public as the developer of the BlackBerry brand of smartphones and tablets. It is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. (hugo, 2013) SITUATION ANALYSIS Blackberry was thought to be a pioneer in versatile cell phone market. Initially a predominant organization in the cell phone market for business and government utilization, with 43% US piece of the overall industry in 2010. In late few years Blackberry's cell phone market has fundamentally declined crosswise over Canada and the US, to a limited extent due to extreme rivalry primarily from the current high US piece of the overall industry of Google's Android brands furthermore from the lower impart that Apple's iPhone has of the business sector. Weight from Android and Apple cell phones has fundamentally dissolved Blackberry's offer of the business sector over the recent years. Loss of shopper bid and the relative disappointment of its most recent working framework. Blackberry 10, have brought about falling equipment incomes and generous 3 BlackBerry misfortunes. This has prompted a circumstance where the organization has needed to roll out noteworthy operational improvements (McQueen, 2013) Marketing Problem/Opportunity Blackberry’s smartphone market has significantly declined across Canada. Marketing Research Problem Why is there a decline in blackberry sales in Canada? Research Objective To study the factors responsible for the declining sales of Blackberry phones. To study the customer preferences in choosing a smart phone. Research Design Information requirements – Exploratory Field Methodology – Focus Groups & In-depth interviews will be conducted to collect the data. Targeted respondents – We will be interviewing current mobile smartphone users in Toronto who are working professionals, between the age group of 28 to 60, both males and females. We are targeting this population as Blackberry Smartphone is majorly popular and used by working professionals. Number of focus group interviews: 1 Number of participants per Interview: 6 Estimated Length of interview: 1 Hour 4 BlackBerry Project Budget BUDGET Amount $ SALARY FOR 3 EMPLOYEES (Desk + Field research) 6240 TRANSPORATION 500 PARTICIPANT REIMBURSEMENT 390 RENTAL SPACE 400 OFFICE SUPPLIES 500 TOTAL 8030 Project Schedule S.NO 1 2 3 4 6 7 9 10 STEPS INVOLVED IN CONDUCTING RESEARCH FOR BLACKBERRY IDENTIFYING A RESEARCH QUESTION REVIEWING THE LITERATURE DEFINE THE OBJECTIVE DEFINE THE SCOPE OF THE RESEARCH WORK DEFINING THE POPULATION DEFINING THE RESEARCH METHODOLOGY COLLECTING THE DATA/INTERVIEWS/SURVEYS ANALYZING THE DATA DURATION (DAYS) 1 2 1 1 1 1 10 3 START DATE 06-10-2014 08-10-2014 13-10-2014 14-10-2014 15-10-2014 16-10-2014 17-10-2014 31-10-2014 FINISH DATE 07-10-2014 10-10-2014 13-10-2014 14-10-2014 15-10-2014 16-10-2014 30-10-2014 04-11-2014 Category Segmentation Blackberry is regarded as a business phone and is not targeted towards a particular segment of age group and is targeted towards the business segment. There is no social class for the blackberry because it targets the whole business segment. Blackberry offers business features like access to e – mail wireless internet and many other but the most remarkable feature it has is the blackberry messenger by which a person can send and receive text anywhere, anytime in the world free of charge. Market Share 5 BlackBerry Operating System 2012 Market Share 2013 Market Share Google, HTC, Samsung, LG, Sony 69.0% 78.6% I phone 18.7% 15.2% Nokia 2.4% 3.3% BlackBerry 4.5% 1.9% Others 5.4% 1.0% Brands using Android operating system has been benefited the most from the rapid growth of the smartphone market over the last two years. Not only has it eaten into the market share of BlackBerry, but also that of Apple. Android ecosystem encompasses handsets from a wide range of leading manufacturers, including Samsung, LG, Sony and HTC. By way of contrast, the iOS and BlackBerry operating systems rely on a much more limited number of handsets that are exclusively manufactured by the owners of each respective system. Blackberry's global market share has fallen to less than one percent in the second quarter, while iOS and Android both made gains during the three month period. Recent product innovations: Pressure from Android and Apple smartphones has significantly eroded Blackberry's share of the market over the past couple of years. Loss of consumer appeal and the relative failure of its latest operating system. BlackBerry 10, have resulted in plummeting hardware revenues and substantial losses. This has led to a situation where the company has had to make significant operational changes. SWOT Analysis 6 BlackBerry BlackBerry Limited (formerly Research In Motion Limited) (BlackBerry or “the company”) is engaged in the research, design, manufacture and sale of wireless communications products, services and software. The company has leadership position in the enterprise market that will facilitate competitive advantage. STRENGTHS Enterprise niche provides a favorable WEAKNESSES competitive environment Strong focus on product design, Delayed product launches could negatively impact business Declining financial performance engineering and research and development Diversified geographic presence OPPORTUNITIES Positive outlook for smartphone and THREATS tablet markets Partnership with Foxconn to provide strong volume growth Robust growth in enterprise mobility management market to drive sales 7 Technological changes and short product-life cycles Declining average selling prices may strain margins BlackBerry FOCUS GROUP REPORT Introduction This focus group was conducted to discuss the current thoughts and opinions about the quality improvement program for Mobile Devices and their functioning. The focus group discussion was held with 6 students on 18th November 2014. The focus group was conducted as part of the College’s Market Research Project. The participants provided information in two ways: written responses and group discussion. What Operating Systems do they prefer mobile device and what primary features do they consider while ranking mobile OS? Blackberry brand positioning Would they buy Blackberry and how do they make the purchase decision? What features do they like or dislike about Blackberry Phones? Which other brand do they prefer over Blackberry and why? Which characteristic drive them Price, Status Symbol or Features? Participant Demographics Six male students, 4 students were 18-21 years old; 2 were 22-24 years old; 1 was 25-30 years old. Evaluation Importance Cellphones are very important for day to day life and has become a necessity, and has played important role in bridging the gap between people. It helps us to connect with people and communicate, at the same time smartphones are used for other purposes like sending emails, clicking pictures or for entertainment and listening to music. Comparison Most of the participants prefer android as it is easier to download applications and it is user friendly as well. Whereas what they don’t like about IOS is that there are very limited applications that can be used and few of them are paid. 8 BlackBerry A few like IOS for the fact that the software is updated more often whereas this doesn’t happen on other OS that regularly, whereas, Android for its open source code and its easy accessibility. Each has its own strengths like IOS for its user friendliness; Blackberry for its security features and professional use and Android for its applications. While making their buying decision some just prefer brand image they don’t care about IOS, and few look at the price and the user benefits. Positioning Blackberry used to a market leader but over the last few years it has failed to impress the masses. It has only concentrated on its niche market forgetting the new generation and their needs. They defined Blackberry in words like: BBM machine, outdated, business phone. Blackberry used to stand out for its BBM but recently WhatsApp has captured that market. Conclusion Mostly people won’t prefer buying a Blackberry at this point of time. They would rather prefer Samsung, apple and HTC. Recommendations Blackberry needs to reposition itself and create a different Brand image. Redefining its target market and understanding consumer demands. 9 BlackBerry ON-LINE SURVEY REPORT Introduction This online survey was conducted to discuss and assess the current situation and customer perception about Blackberry mobile phone and also assess that what is customer’s overall expectation when planning to buy a mobile phone. BlackBerry brand is facing decline in sales over time and this survey is an attempt to establish the factors contributing to it in terms of consumer’s expectation from a mobile phone brand. The online survey was created on November 18th 2014. In total 20 participants have responded to the survey. The online survey was conducted as part of the College’s Market Research Project. Following questions were asked as part of the survey BlackBerry brand perception? Which brand’s products do you currently own? If you had to buy a new mobile phone/smartphone/PDA today, which brand would you prefer? What kind of keypad you prefer? Approximately how much money do you estimate spending on your mobile phone (per month)? What is the primary feature you will consider while buying a mobile phone? What factor do you consider most while purchasing a mobile phone? Price, Brand name, Design or Features? What is the primary feature you will consider while buying a mobile phone? Mention any advantages or disadvantages of BlackBerry Phone? Participant Demographics 20 participants, 10 males and 10 females. Out of 20, most of the respondents were from under 25 age group, some from 25-30 and few from 31-40 age group. Findings We tried to capture the BlackBerry brand perception in consumer’s mind to establish what consumers think about BlackBerry as a brand. As a result only few agree that it is an innovative brand and a fun brand. Most participants agree that it is a brand for business. Some participants agree that is all lifestyle brand and some of them says it is a brand for status. 10 BlackBerry Apple IPhone is the most popular brand as most of the respondents currently own Apple IPhone, Second most popular is Samsung and rest of the participants have Nokia, Motorola and LG. None of the respondent own BlackBerry Mobile. When asked which mobile phone will respondents prefer to buy if they have to buy a new phone, most of them wants to buy an IPhone, some of them wants buy Samsung, few said Sony Eriksson, Nokia and Motorola and only very few said they want to buy a BlackBerry? In terms of Key pad preferences most of the respondents wants to buy a mobile phone with touch screen and only very few prefer to buy QWERTY key pad phone. In terms of approximate per month spend on mobile phone, Most of the respondents spend $50-$100, some spends $30-$50, few spends less than $30 and very few spends more than $150 Out of 20 respondents most of the respondents prefer a better functionality as a primary feature in phone when looking to buy a new phone, some chooses battery life, quality & reliability, and some respondents prefer brand name and few respondents prefer Camera as a feature in mobile phone. In terms of primary deciding factors to buy a mobile phone, 52% respondents consider features as primary factor, 42% consider design, and 37% consider price and 21% brand. Following are the responses when asked for advantage and disadvantage of Blackberry Mobile Phone: NEGATIVE POSITIVE Not many native applications Nice battery life, good OS Security is a concern Blackberry is great It does not have any good apps on it. It is good phone for business use So suggest you to get them. Keyboard is disadvantage Weak app support Out of date Found it stylish earlier not anymore 11 BlackBerry Conclusion As per the report findings BlackBerry is strongly positioned as a brand for business. Some of the preferred features are good battery life and operating system. But on the contrary, it is not considered as fun brand to have and a brand which suits all lifestyles. It lacks innovation in its products. Today’s young generation do not prefer to buy BlackBerry mobile and they rather prefer IPhone, Samsung and other available brands. One of the biggest disadvantage BlackBerry has its QWERTY key pad. Majority of consumers prefer touch screen mobile phones these days which most of the BlackBerry phone models lack. Also BlackBerry Phone lacks good applications to support it. Consumers find it out of date due to lack of innovation. Looking at survey findings, majority of consumers prefer Mobile phone features and design of a Mobile phone as a deciding factor. Recommendations BlackBerry is considered only as a brand for business which is now outdated and lacks product innovation. BlackBerry needs to reposition itself and create new Brand image. BlackBerry needs to come up with new innovative products considering the changing needs for its target market and understanding changing consumer demands. 12 BlackBerry Appendix A SCREENER Current mobile smartphone users focus group respondent specifications: All to be between the ages of 28 and 60 years old. All to be current mobile users. All to have annual household earnings above $25000. A mix of genders. A mix of racial and ethnic groups as defined by screener. All to be technologically sophisticated as evidenced by owning and using at least one mobile All to spend at least five (5) hours a week using cellphone for calls. All to spend an average of at least $35 per month for mobile operator’s services. All to be professional workers, who use mobile phone for calls, messages, e-mails, office documents apps. Security / past participation: Non to have family members employed in the following industries: market research, marketing, advertising, mobile communications, mobile services. None to have participated in more than five (5) focus groups ever. None to have participated in any focus groups in the past year. None to have participated in focus group research on the topic of mobile smartphones using and preferences. 13 BlackBerry Screening questionnaire – working professionals focus group Interviewer: Date: Time: : Name: Address: Day phone: Evening phone: E-mail: Initial screening Reduction: Hello, this is (name) with (company). This is not a sales call. We are conducting a brief survey about uses of mobile smartphones. Would you please help me by answering a few questions? All your responses during our phone conversation today and during the interview will be kept strictly confidential. 1. Do you currently use mobile smartphone? No = Terminate 2. Describe how you use your mobile phone. response = Terminate 3. Approximately how often are you involved with the use of mobile phone? roximately 25% of total participants 4. Approximately how much money do you estimate spending on your mobile smartphone? 14 BlackBerry - $30 = Terminate - $50 = Approximately 25% of total participants - $100 = Approximately 25% of total participants - $150 = Approximately 25% of total participants 5. What is your profession? ________________________________ ents above = Continue 6. Which of the following categories includes your present age? -30 = -40 = 41-50 = Equal distribution of all interested age groups -60 = 7. Have you participated in any market research projects in the last year? 8. Do you or any of your family members work for mobile communications services? 15 BlackBerry 9. Invitation and Schedule Thank you for answering my questions. I am pleased to invite you to participate in a group discussion with about five other individuals to brainstorm on the future of mobile smartphones usage. The group will last approximately 90 minutes. In return for your efforts, you will be rewarded. Can I schedule you for a meeting? need 16 BlackBerry Appendix B DISCUSSION GUIDE Welcome, Introduction and instructions Welcome and thank you for volunteering to take part in this focus group. You have been asked to participate as your point of view is very important to us. This focus group discussion is to assess your current thoughts and opinions about the quality improvement program for Mobile Devices and their functioning. The focus group discussion will take about one and a half hour. I will keep the record of opinions for quality improvement purposes. The discussion will be anonymous. The transcribed notes of the focus group will contain no information that would allow individual subjects to be linked to specific statements. You should try to answer and comment as accurately and truthfully as possible. I and the other focus group participants would appreciate it if you would refrain from discussing the comments of other group members outside the focus group. If there are any questions or discussions that you do not wish to answer or participate in, you do not have to do so; however please try to answer and be as involved as possible. Ground rules There are no right or wrong answers in this discussion The most important rule is that only one person speaks at a time. There may be a temptation to jump in when someone is talking but please wait until they have finished and note down if you forget it often. You do not have to speak in any particular order When you do have something to say, please do so. There are many of you in the group and it is important that I obtain the views of each of you You do not have to agree with the views of other people in the group Does anyone have any questions? OK, let’s begin 17 BlackBerry Warm up First, I’d like everyone to introduce themselves. We can start from my left. Can you tell me what your name is? Introductory question We are going to discuss about different mobile device. Can anyone give any overview of usage of mobile phones these days? Guiding questions What Operating Systems do you prefer for the mobile device? Can you rank them according to your liking? (Gives Ranking from iOS, Android, Blackberry, Windows & Symbian) What is the primary features you consider while ranking mobile OS? What do you think when you hear ‘Blackberry Mobile Phone’? Do you prefer using Blackberry Mobile phones? (Yes/No) If the answer for the previous question was “NO”, than name brand you prefer. Mention any good and bad features of Blackberry Phone, if any If, you are preferring mobile phone other than Blackberry, then which one is that? Why do you prefer another phone over blackberry? Would you buy Blackberry phone if it had the same features as your favorite phone? What do you consider the most while purchasing the mobile phone? Price, Status Symbol or Features? Concluding question Of all the things we’ve discussed today, what would you say are the most important issues you would like to express about mobile phones? Conclusion Thank you for participating. This has been a very successful discussion Your opinions will be a valuable asset to the study 18 BlackBerry We hope you have found the discussion interesting If there is anything you are unhappy with or wish to complain about, please speak to me later I would like to remind you that any comments featuring in this report will be anonymous Before you leave, please hand in your completed personal details questionnaire Please, write your report based on the results of the focus group. Please remember to maintain confidentiality of the participating individuals by not disclosing their names. 19 BlackBerry CITATION "Blackberry Limited." Blackberry Limited - Does It Have A Future In The Consumer Market (2014): 1-26. Business Source Complete. Web. 10 Oct. 2014. "Blackberry Limited (Formerly Research In Motion Limited) SWOT Analysis." Research In Motion Limited SWOT Analysis (2014): 1-9. Business Source Complete. Web. 10 Oct. 2014. Song, Ian. "Blackberry 10: The New BYOD Superstar." Network world Asia 10.1 (2013): 39. Business Source Complete. Web. 10 Oct. 2014. Hugo, m. (2013, january 30). RIM Changes Company Name to BlackBerry. Retrieved from http://www.bloomberg.com/: http://www.bloomberg.com/news/2013-01-30/rim- changes-company-name-to-blackberry.html McQueen, M. (2013, september 24). Smartphone Wars: 5 Things BlackBerry Could Have Done to Stay Competitive. Retrieved http://www.entrepreneur.com/article/228549 20 from http://www.entrepreneur.com/: