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  • http://money.cnn.com/2009/06/18/technology/rim_blackberry_earnings/index.htm
  • 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: wikipeida.org(Left: 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
    Iphone
    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
    Prices
    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
    Strengths
    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
    WEAKNESSES
    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
    Opportunities
    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
    Threats
    RIM might not be able to defeat Apple by lowing the price
    Other threats:
    Sony
    Microsoft
    Palm
    HP
    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 BlackberryDiY.ca
  • 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
    Time
  • 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
    Schedule
    http://www.blackberrycool.com/2008/10/05/blackberry-storm-product-positioning-document-leaks/
    www.youtube.com/watch?v=XvMITVn41LA&feature=PlayList
    For more info . . .
    List location or contact for specification (or other related documents)
  • 53. 50