2. Mobile phone industry(Globally)
• $ 1.18 trillion industry – 14% from handsets sale
• 6 billion mobile phone subscribers at end of
2011 – 76% of them in developing world
• Expected to rise to 8 billion by end of 2013
• 87% percent - Global market penetration rate
• 3.2 billion - Unique mobile phone subscribers
• China world’s largest market. Followed by India
and US
3. Mobile Handsets
• Expected sales of 1.8 billion handsets in year
2012. Up from 1.7 million in 2011
• 38.8% of sales will be from smartphones. A
10% increase YoY
• Android accounted for 75% of smartphones
sold in Q3 2012 – 91.5% YoY growth
• Market growth rate for smartphones is at
46.4%
4. Mobile handset market in 2011
Market Share Nokia
Samsung
23.80% Apple
33.70%
LG Electronics
ZTE
17.70% RIM
HTC
1.80% Huawei
2.30% Motorola
2.30% Sony Ericsson
5.00%
4.90% Others
2.40%
2.90% 3.20%
5. Mobile Handset Market Share
40.0%
35.0% Samsung
Nokia
30.0%
Apple
25.0% ZTE
LG
20.0%
Huawei
15.0% TCL
10.0% RIM
Motorola
5.0% HTC
0.0% Others
Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
8. Industry Overview
In 2012 ,
• Market size in units 80000 – 100000 mobile phones per month
• In value : Rs 6 – 8 billion per annum
• Market is mainly dominated by 3 key brands while Samsung is the market leader.
Brand %
Samsung 21%
Nokia 20%
Apple 8%
ZTE 4%
Others 47%
• Within Past 2 – 3 years Samsung became the market leader taking the pole
position from Nokia
9. • Market is mainly segmented by the income level while lower income
group contributes around 70% of total revenue
• Market penetration in north and east is around 10% and expects to boost
up with the government heavy investment on infrastructure in those
areas.
• Income level growth , technology development & population growth are
the key demand driven factors in any market segment.
• With the new rules and regulations which are introduced by TRC it is
expected to shrink gray market while the demand for branded phones
increase.
• Recent Change of tariff structure and the increase of government
investment on technology results for favorable future of mobile industry.
North and East
Potential Penetration Under
Market Penetration
Under
North & East 693169 72200 620979 Penetrati Potential
on Market
45% 50%
Penetrati
on
5%
10. Target Market
Basic Users
The cell phone is just another communication device for these consumers.
Mobirati Users
The mobile generation that has grown up with cell phones and can't imagine life without
them. Cell phones are a central part of their everyday lives.
Paragmatic Adopters
Cell phones emerged in their adult years and they're now learning to use them for things
other than talking. Cell phones are more a part of their everyday life than ever before, but
still mainly functional.
Social Connectors
Communication is central to their lives and cell phones allow them to keep up to date
with friends and social events. The mobile device is the bridge to their social world.
Paragmatic
Adopters
Social Connectors
11. Segmentation Strategy
Potential Market
Lower income Top Income
Middle Income
group Group
Group
Features Base Features Base Features Base
12. Customer Buying Behavior :
Basic Users Lower and Middle Income Top Tier
Groups
3G
Features
Camera
Law &
Middle Top Tier
Office
Price
Wi-Fi
BUY
13. Research in Motion History
• Founded 1984
‡
• 1996 - Introduces the RIM 900Inter@ctivePager
‡
• 1999 - Launches BlackBerry service
‡
• 2004 - 1 million BlackBerry subscribers
‡
• 2007 - 10 million subscribers
‡
• 2010 Revenue: $14.9 billion
‡
• 2010 Net Income: $3.46 billion
14. BlackBerry
• Started out as a two-way radio pager called
the Inter@ctive Pager in the research labs of
RIM in 1996
• Pager was the fist pocket-sized two-way
messaging pager and the predecessor to the
BlackBerry
• First phone-capable device was introduced in
2004 as the BlackBerry 7100t
15. Push technology & QWERTY
• Email services serves as one of the main
differentiating points
• Push technology allows emails to
automatically show up on the device without
the lag time of having to refresh a web-
browser to view new emails.
• RIM designed and patented the now
ubiquitous QWERTY keyboard
16. Purpose and Features of RIM
• Providing access to communication and important
information all across the globe
• Build industry standards and improve performance of
internationally mobile companies and their personnel.
• BB smartphones have supports for
Email, text, IM, Social networks, Web access, GPS etc.
• Many offerings with variation in features
• International support on CANTEL and BellSouth
network as well as nationwide network coverage on
Ericsson’s Mobitex.
• Addon BlackBerry Enterprise Server for centralized
administration ands support for laptop users
17. RIM vs. Google vs. Apple vs. Twitter
Followers
Following
18. RIM in News
Keith Pardy (CMO) quit before launch of Playbook
2011 Q4: - Shares Price plunged 11%
20. Blackberry - Evolution
• The RIM 850 was the first device which
became popular. It had a six line
monochrome display and could send
messages, emails and had
calenders, address book, task
list, calculator and alarm function
• The company followed it up with the first
Blackberry branded device, the 5810. It
had a bigger monochrome screen and
also allowed voice calls with the use of an
external headphone and microphone
• Blackberry 6710 was the first proper
phone from the company with am inbuilt
microphone and speaker
21. Blackberry Evolution – Contd.
• The 7210 was the first smartphone from the
company. It had a colour screen and had a browser on
board for internet surfing. It could also open MS
Word, Excel and Powerpoint files.
• The 7100t launched during the was a slimmed down
version aimed at the consumer market
• The Pearl 8100 was the first to include a camera and
media player applications
• The 8800 was the first to include a GPS allowing
making real time mapping a possibility.
22. Blackberry Evolution – Contd.
• The Curve 8300 was launched with a
front facing camera which allowed video
calls and also Wifi
• Bold 9000 started offering expandable
memory for data use and a large colour
display
• Joined the touchscreen bandwagon with
the Storm. It had no physical keypad.
• The Playbook tablet was launched to
meet the growing demand for tablets.
24. • BBM encouraged the entry of younger customers
and the prepaid segment into BlackBerry services
in India.
• BlackBerry Services – historically targeted at the
corporate market – had a proven track record in
commanding high ARPUs.
• With BBM, the impact is a lot more personal as
compared to facebook and twitter with a one-on-
one and group communication possible.
• They introduced the single interface point where
multiple applications (like FB, Twitter) are
integrated to enhance user experience.
25. • To tap into the young ‘BlackBerry Boys' generation,
RIM had launched models such as Curve 8520.
• Although pre-paid commanded the lowest ARPU,
research found that the youth liked to be seen as
affluent, tech-savvy and constantly in touch with
friends.
• Vodafone decided to tap into BBM’s attraction as a
free alternative to more expensive text messaging and
introduced pre-paid BlackBerry Services.
• The add-ons include colourful skins and packaging,
while services were being added o at the back end for
the ‘always connected' generation.
26. • Vodafone's Rs 5 per day or Rs 129 per month
BlackBerry Messenger plan were introduced to
attract more youngsters.
• The objective of the campaign was to increase
the appeal of BlackBerry services on Vodafone to
a larger audience with special emphasis on the
younger generation.
• Results: Vodafone increased its share of
BlackBerry users by 96%, nearly double its 50%
target and within the first four months of the
campaign it signed up nearly 154,000 additional
subscribers (of which 35,000 were pre-paid)
• Its post-paid customer base grew 74% from
160,000 pre-campaign to 279,000 post-campaign
29. Strategic Issues
• Operating Performance Declined
• Lost Product Innovation
• Changing Business Environment
• Increasing Competition
30. Operating Performance Declined
New Subscribers Per Quarter turn
down
New Subscribers Added Per Unit Sold
continue drop
Device Gross Margin Percentage get
thinner
Revenue Per BlackBerry Device Sold
declined
31. Lost Product innovation
Full Qwerty Touch Screen Playbook
- Classical BB Strength - Response to iphone - Response to iPad2
32. Changing Environment
Mobile Trends
1/3rd of Americans access mobile browser and socialnetworking sites on
mobile phones
Mobile Application
Touch User Experience
Web Trends:
Email
Social Media
Traditional portals, Online leisure Activities
Changing Customers
Enterprise Mass market
Shifting Age Profile
Twitter
Facebook
35. Strategic Issues Analysis
RIM
Operating
Innovation Competition Environment
Performance
Device User
Subscriber Talent New Trend Customer
Margin Experience
36. Root Cause Analysis
• Root Causes
– Shift Ageing Mobile activities
– Customer Satisfaction
– Web experience shift Email to Social mobile App
– Touch screen pricing strategy
– Recruit talent corp culture
37. Sales and market share
Gartner’s figures shows
BlackBerry sales which
is increasing until the
second half of 2010.
This year, BlackBerry
sales seem to be in free
fall.
40. Share of mobile web browsing
• A smart phone is a
mobile
powerhouse, and
many are used to
browse the web-
BlackBerry devices
were used for just
over 1% of mobile
web browsing in the
US in July 2012.
