MBA Brand Management Assignment


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BlackBerry Brand Analysis using Keller Framework

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MBA Brand Management Assignment

  1. 1. Research In Motion (RIM): BlackBerryBrand Analysis<br />By Josh Sackman<br />IAE MBA 2010<br />
  2. 2. RIM/BlackBerry Brand Analysis<br />A pioneer in the mobile phone market, BlackBerry’s dominance is weakening due to increased competition and innovation in the market. With Apple and Google Android-powered smartphones emerging, BlackBerry has to decide whether to focus on their original target market of government and business enterprise or capture the younger, mainstream consumer who has different demands<br />This is an analysis of the BlackBerry brand in 2010 using the Keller framework to assess where the brand is today and the direction it should go in to maintain it’s strength in the market<br />
  3. 3. RIM Background<br />Research in Motion (RIM) pioneered the development of the Smartphone market in 1998 with the BlackBerry, positioned in government and enterprise target markets.<br />14 million BlackBerry users in over 135 countries<br />2009 Revenue: $11.1 billion<br />2009 Net Income: $1.89 billion<br />Employees: 12,000 <br />Based in Canada<br />
  4. 4. Mission/Vision<br />RIM’s current mission statement:<br />Deliver rich user experiences to our customers through the design and engineering of BlackBerry smartphones and services that are scalable and sustainable on our partners’ wireless networks<br />Create a digital community to serve the needs of small business professionals, giving them the insight they need to maximize the benefits of Smartphones<br />Vision Statement:<br />To build groundbreaking wireless technology<br />“BlackBerry is a smartphone platform that you can run your life on”<br />Official BlackBerry brand promise:<br />Reliable, best-in-class mobile connectivity so you can live large and achieve more<br />* and BlackBerry 10-K report<br />
  5. 5. Target Segment<br />Professional and tech savvy men and women with high incomes, mid-twenties to early-fifties<br />Original target segment (1998-2008)<br />Enterprise and Government Users<br />Provides all-in-one mobile device to suit a professional’s enterprise needs<br />Next generation target segment (2009+)<br />Younger, more social, professionals<br />Provides touch screen enterprise technology with additional multimedia, social media, and mobile applications components to satisfy the consumers interactive lifestyle<br />
  6. 6. BlackBerry Products<br />BlackBerry Curve<br />BlackBerry Bold<br />BlackBerry Pearl Flip<br />BlackBerry Storm<br />BlackBerry Torch (2010)<br />
  7. 7. Values<br />The BlackBerry brand is…<br />Rational:<br />Alert and well-informed: street-smart<br />Approachable: an ally, a helpmate and a resource you can depend on<br />Simple, straight-forward<br />Emotional<br />Confident: focused on the task at hand. It knows it can deliver everything you need it to<br />Be first<br />Compete<br />Bold, clever<br />*Official BlackBerry Branding Guidelines 4.0<br />
  8. 8. Upcoming Generation of BlackBerry<br />To compete with the increasingly popular touch-screen smartphones, such as the iPhone, BlackBerry has announced the launch of the BlackBerry Torch for 2010/2011<br />
  9. 9. Smartphone Market Overview<br />
  10. 10. Global Market Growth 2010 Q2: Phone Sales based on Operating System<br />Smartphone market is up 64 percent from the previous year. <br />Growth rates of sales:<br />RIM/BlackBerry: +41%<br />Apple iPhone OS: +61 %<br />Google Android: +886%<br />Nokia: +41%<br />
  11. 11. Facing the Competition<br />In 2010, the #1 and #2 top innovative global companies* are Apple and Google, with Research In Motion behind as #14<br />Interbrand Top 100 Brands (2009)<br />BlackBerry #63<br />Google #7, Apple #20<br />With branding and innovation as leading forces in the smartphone market, BlackBerry has to assess the current state of the brand make some key decisions<br />*2010 BusinessWeek’s Top Innovative Companies<br />
  12. 12. 4- Relationships<br />How much of a connection do consumers want to have with BlackBerry?<br />Generate active and intense relationships<br />Resonance<br />3- Responses<br />¿What do consumers think or feel about BlackBerry?<br />Provoke positive and accessible responses<br />Feelings<br />Judgments<br />2- Meaning<br />What is BlackBerry?<br />Positive and exclusive associations<br />Performance<br />Imagery<br />1- Identity<br />Who is BlackBerry?<br />Awareness and deep knowledge<br />Salience<br />Rational Route Emotional Route<br />Analysis: Keller Model<br />
  13. 13. Keller Model: Salience<br />CategoriesPenetration<br /> Smartphones Smartphone<br /> Mobile Devices (many models) Unaware of models<br />Although 97% of respondents are familiar with the BlackBerry brand, only 64% can recall specific models of the product<br />
  14. 14. Keller Model: Performance<br /><ul><li>Highly functional all-in-one smartphone
  15. 15. Small product line: 6 devices
  16. 16. Enterprise functionality for business
  17. 17. Tactile keyboard, easy to type emails
  18. 18. Available on a wide range of networks globally
  19. 19. Price: $150-400</li></ul>Attributes and Performance: Highest Ratings<br />“Functional”<br />“Expensive”<br />“User-Friendly”<br />“Quality”<br />“Tactile”<br />“Limited”<br />“High-tech”<br />“Multi-Tasking<br />
  20. 20. Keller Model: Imagery<br />Imagery of BlackBerry<br />Situation of Use<br />Personality/Values<br />Evolution<br />Consumer Profile<br />1999-2005: Enterprise Device<br />2006: Blackberry Pearl – Small Flip Phone by BlackBerry<br />2008: “Be Bold” –<br />3G Phone with Entertainment features<br />2010: Love What You Do –<br />Re-launch of Touchscreen<br />ABC1 – Age 25-50<br />Male & Female<br />Highly educated: <br />Bachelor/Master Degree<br />PC Computer User<br />Professional: <br />IT, Sales, Finance<br />Before, mostly for work.<br />Now, personal or mixed use.<br />Current trend to use as social device for media, games, entertainment<br />Successful<br />Hard-working<br />Tech-savvy<br />Solution-oriented<br />Passionate<br />Bold<br />
  21. 21. Keller Model: Judgments<br /><ul><li>Highly business oriented, but can be used by everyone
  22. 22. Conservative
  23. 23. Although the device has entertainment features, the device is seen as mainly functional</li></ul>Judgments of BlackBerry products and brand:<br />
  24. 24. Keller Model: Feelings<br /><ul><li>Although BlackBerry may be seen as conservative, professional and functional, consumers still feel connected to the brand seeing BlackBerry as a brand that they would be proud to own, that fits in with all areas of their lifestylesand is a brand that they would recommend.
  25. 25. Even with flip phone and touch screen devices on the market, BlackBerry has yet to achieve the feeling of a fun brand for the majority of consumers.</li></li></ul><li>Keller Model: Resonance<br />Resonance<br />“A brand I’m proud of and that I will always consider, but it’s not the only brand for me”<br />77% of BlackBerry users surveyed are proud to own the brand and they feel like part of a community, using exclusive services such as BlackBerry Messenger.<br />With product innovation and an increased offering in the market, consumers are tempted to experiment with new brands. Only 26% of consumers strongly agree that they stay loyal to brands when purchasing new technology. <br />39% of current BlackBerry users are considering an iPhone or other smartphone as their next device <br />
  26. 26. Keller Model: Resonance<br /><ul><li>75% of current BlackBerry users consider themselves loyal to brands when making technology purchases
  27. 27. However, 39% of BlackBerry users intend to purchase another brand for their next phone</li></li></ul><li>Conclusions<br />Reflecting on BlackBerry’s Vision: <br />“BlackBerry is a smartphone platform that you can run your life on … so you can live large and achieve more”<br /><ul><li>Considering:</li></ul>Only 40% of consumers surveyed believe BlackBerry is a device that “helps me live life how I want”<br />53% of consumers respond that they would purchase an iPhone as their next smartphone<br />Growth rate of 886% with Android devices and 61% for iPhone devices<br /><ul><li>it’s time to reassess the BlackBerry brand </li></li></ul><li>Conclusions (Continued)<br /><ul><li>Although sales and market share are strong, there is a growing detachment of brand loyalty among consumers
  28. 28. Features are becoming universal on devices (touch screen; internet; media player; gaming; social media), therefore it’s tougher for rationality to differentiate between brands.
  29. 29. Thus, imagery is becoming more important for a company in branding their product in the smartphone market</li></li></ul><li>Conclusions (Continued)<br />Companies must find ways to differentiate their brand beyond the physical product<br />In addition to focus on image, companies must also offer exclusive,value-added products/services with their device<br />One great example is Apple’s App Store, with exclusive free and paid content for the iPhone<br />BlackBerry did a great job with BlackBerry Messenger, creating exclusivity and community around a value-added service. There needs to be more innovation building upon what already exists<br />
  30. 30. Recommendations<br />Don’t lose brand identity with the business enterprise users! Maintain the strong position in the market protecting the interests of the target customer. Keep improving the devices, but there is no need to re-design ALL devices based on the iPhone and Android<br />BlackBerry needs to encourage content to be developed for their own BlackBerry App World – the more attached current users are to BlackBerry content, the tougher it is for them to switch brands<br />
  31. 31. Recommendations: Innovation/New Products<br />At the same time, BlackBerry can launch new devices to help target the new segment of the Web 2.0 generation user. The BlackBerry Torch is a step in the right direction. They can also launch other product lines to compliment it, such as the recently announced BlackBerry PlayBook tablet<br />These devices help bridge the gap, giving the core BlackBerry user the business functionality they need, while also offering value-added social components, that are product qualifiers these days, to attract new customers<br />Have a wider product line tied together with a common operating system which allows developers to focus on content for BlackBerry devices. Apple has shown the importance of their App Store and how important content is<br />
  32. 32. Recommendations (Continued)<br />BlackBerry must focus on its image and sense of community to strengthen brand resonance and loyalty<br />BlackBerry has recently been sponsoring live events, BBM Lounge, where users need to register their BlackBerry “PIN” at the door to gain entry. They must continue to “think outside the box” to develop more ways to integrate the brand into people’s lives<br />This is a good move to create an identity of BlackBerry for the next generation to compliment the business segment users, who are already satisfied and loyal<br />
  33. 33. Appendix: Sources<br />Sackman, Josh (2010). Survey: BlackBerry Brand Survey<br />Keller, Kevin Lane (2001) “Building Customer Based Brand Equity: A Blueprint for Creating Strong Brands”<br />“Top Innovative Companies 2010.” BusinessWeek 15 April 2010<br />“Best Global Brands 2009.” <br />“Smartphone Market Trends Report 2010.”<br />BlackBerry Official Sources<br /><br />RIM 10-K report<br />Official BlackBerry Branding Guidelines 4.0<br />
  34. 34. Appendix: Survey Questionnaire (1/2)<br />
  35. 35. Appendix: Survey Questionnaire (2/2)<br />