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Bs Vs I P
Bs Vs I P
Bs Vs I P
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Bs Vs I P


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  • Product line depth: Number of categories within a product lineProduct line breadth: Number of product lines or variety offered by the firm.
  • Transcript

    • 1. 1
      Storm Vs. Iphone
      By UBAM Hammerheads
    • 2. 2
      Case Background
    • 3. 3
      Research in Motion Ltd. (RIM)
      Rim the parent company of Blackberry founded in 1984
      Founders were 3 engineering students from Waterloo Uni (Mike L, Doug F, and Mike B )
      Originally the company was meant to answer friends tech needs but later blew up into what it is today
    • 4. 4
      Rim’s Early Years
      First Product was the inter@ctive 950 which was a two way pager (developed with Ericcson)
      Was meant to be a direct competitor with SkyTel which was developed by motorolla
      Many other products followed including the first Blackberry in 1998
      A year later (1999) the Blackberry 850 was released and featured the first QWERTY keyboard
      Source: BlackBerry 850)
    • 5. 5
      Later Years
      After the release of the BlackBerry 850 many different models of followed
      More recently, the Storm has been released
      The Storm is now seen as a direct competitor to the Iphone and has many similar features such as a touch screen, applications, built in camera and more
      Storm wishes to overtake the Iphone in the smartphone Market
    • 6. 6
      The Iphone, developed by apple, has revolutionized the way consumers think about phones
      It features and innovative interface that’s both friendly and easy to use
      Apple has been dominating the smartphone market ATM with $19,000,000,000 (billion) in sales in 2007 alone
      This number is triple that of its sales revenue three years earlier.
    • 7. 7
      Iphone:4GB model = $499
      8GB model = $599
      Blackberry Storm:$469.75 to $699.90
    • 8. 8
      The Big Question!
      The current market situation poses us with the question:
      What can Blackberry do to compete with Apple and other contenders in the consumer market?
    • 9. 9
      Key Findings
      • Apple’s iPhone has similar features as the Blackberry Storm, but Iphone’s dominate the consumer market, and Blackberry’s dominate the industrial market.
      • 10. Other companies are trying to grasp a part of the market share
      • 11. From 2005-2007, Apple’s sales triple and reached $19 billion – direct competitor of Blackberry
    • 10
      Case Assumptions
      We are only considering the Blackberry and iPhone based on no-contract prices
    • 12. 11
      Key findings
    • 13. 12
      Goals and Values of RIM
      Our focal marketing value is Customer Relationship Management (CRM).
      Our marketing plan should be flexible enough to be prepared for the best and worst case scenarios
    • 14. 13
      Research: Comparison between Blackberry Storm & iPhone
    • 15. 14
      Target Markets
    • 16. 15
      Target Market
      • We used demographic segmentation to determine age as one of our target markets. The majority of current Blackberry users are between the ages of 25+.
      • 17. We also used psychographic segmentation to determine lifestyles as our second target market.
      • 18. The majority of current Blackberry users are business professionals, who are very busy and enjoy the efficiency of Blackberry’s.
      • 19. However, more recent blackberry sales have been represented by the consumer market.
    • 16
      Marketing strategy
      We will be using the mass marketing strategy because we are offering the same product to different groups: the age group of 25+, business professionals, and the consumer market. We are offering the same benefits for all these target markets.
    • 20. 17
      SWOT Analysis
    • 21. 18
      Award winning Products for every need
      Excellent customer support
      (technical phone support open 24 /7)
      Highest sales for smart phones
      Worldwide sales and production
      (made in Hungary ,Mexico and Canada)
      Loyal supporters
    • 22. 19
      RIM has only one product brand - Blackberry 
      RIM is limited in market, since RIM is not a cell phone company like NOKIA, nor a electronic complex like Apple.
    • 23. 20
      Diversify the products – increase the product line’s breadth or depth
      Learn from Apple, increase the accessory market
      Work on the mobile network, find a new mutual-benefiting way with a network provider
      Expand in other areas, e.g. PDA, PC telecommunicating.
    • 24. 21
      RIM might not be able to defeat Apple by lowing the price
      Other threats:
      There will be more competitors entering the Smartphone market
    • 25. 22
      Competitive Analysis
    • 26. 23
      Identification of Alternatives
    • 27. 24
      Cost Management (Production plan)
      Moving production and manufacturing to a developing country
      Which lowers of operation costs so we can reduce the price, which will increase sales
      May lose profit/ or generate revenue
    • 28. 25
      Design your own Blackberry- Customize (DiY Blackberry)
      Having the option of customizing the exterior
      Creating variations to your satisfaction
      ROYGBIV, silver, gold, white, and transparent
      Customizable prints by sending in orders to
    • 29. 26
      Change the Camera
      Upgrade the camera from 3.2 MP to 5.0 MP
      Improve the flash
    • 30. 27
      Evaluation of Alternatives
    • 31. 28
      Alternative 1: Cost Management (Production Plan)
    • 32. 29
      Alternative 1: Advantages
      Blackberry’s will be sold for a cheaper price, keeping the profit constant
      Production costs will be cheaper
      Cheaper shipping costs
    • 33. 30
      Alternative 1: Disadvantages
      Unethical because it may involve child labor
      Start-up costs to open a brand new production would be really big
      Operating costs may be larger than profit for the first few years
    • 34. 31
      Alternative 2: DiY Blackberry
    • 35. 32
      Alternative 2: Advantages
      Appeal to a larger, and multiple target markets
      Giving customers multiple options
      Adds style & personality to the phone
    • 36. 33
      Alternative 2: Disadvantages
      It will costs more to make different templates
      Extra labor & training
    • 37. 34
      Alternative 2: Change the Camera
    • 38. 35
      Alternative 3: Advantages
      More clear and vivid pictures
      Clear video recording quality
      Eliminates the need for consumer to purchase an actual camera
    • 39. 36
      Alternative 3: Disadvantages
      Upgrading camera pixel would increase production costs
      May not be a significant improvement to the blackberry storm
      Battery life will be shorter
    • 40. 37
      Solution: Blackberry DiY
    • 41. 38
      Blackberry DiY
      We chose this solution to expand our target market and include Generation Y.
      Trying to compete in consumer market with iPhone with a more significant and practical change
      Though marketing expenses would increase to advertise the new option,
      The labour and production costs will be cheaper than creating a whole new smart phone
    • 42. 39
      Plan of Action
    • 43. 40
      Product Development
      The RIM design team will create visual images of the products
      Step 1
    • 44. 41
    • 45. 42
      Market Testing
      We plan to use the Test Marketing method to introduce our new product to a small geographical region (Vancouver, BC)
      We will estimate the demand for the entire market based on results we receive
      Although this is time consuming, we are able to study actual consumer behavior
      Step 2
    • 46. 43
      Product Launch
      To ensure our product launch is successful we will have a marketing team who will be advertising Blackberry DiY:
      Train our technical support staff to be able to answer consumer questions, and education them as well
      Ensure that there are products available at convenient and popular locations
      We will start with a high price, and lower the price when sales drop
      We are choosing November 1st as a date to launch the product because it is near Christmas season (gifts)
      Step 3
    • 47. 44
      Marketing Mix
    • 48. 45
      Evaluating our Results
      We will review if the product launch was a success or failure
      We will analyze the performance of the product, customer acceptance, and if the product satisfies our financial requirements
      Step 4
    • 49. 46
      If Plan of Action fails
    • 50. 47
      Plan B
      If Test Marketing fails, the project will be terminated
      But since the product isn’t launched worldwide, we won’t lose that much money
      Collect feedback and complaints
      Go back to design team and modify the plan accordingly.
    • 51. 48
      Course Concepts Used
      The Strategic Marketing Planning Process- Chapter 2
      Segmentation, Targeting, and Positioning- Chapter 8
      The 4 P’s: Marketing mix
    • 52. 49
      For more info . . .
      List location or contact for specification (or other related documents)
    • 53. 50