Rebecca VanDeCasteele Adver2sing 335 March 22, 2010
BrandBacked by Research in Motion (RIM), BlackBerry is one of the leading producers of smart phones. BlackBerry once held the top market and category shares, but has seen a decline in both in recent years. Smart phones were once appealing to mostly business owners and were seen as complicated devices. With greater consumer interest, competitors began offering smart phone product lines. The engineers at RIM think innovatively to produce new BlackBerry products that are both user friendly and powerful. This strategy appeals to normal consumers as well as business owners.
ProductThe first ever BlackBerry touch screen PDA (Personal Digital Assistant) was introduced to the market in November of 2008. The release of the Storm was very highly anticipated and BlackBerry has since released two new models. New BlackBerry Storm handsets are sold for around $500 and are sometimes offered at a lower price depending on contracts offered through Verizon Wireless in the US and other carriers in Canada. This is currently the average pricing for PDA sales.
Compe2torsThe Apple iPhone and the Palm Pre are both full touch screen PDA’s that have BDI’s of 162 and 126 respectively. These are the Storm’s biggest competition because of the similarity of capabilities and features. The Apple iPhone is only offered through the AT&T wireless carrier whereas the Pre is offered through Verizon Wireless, the same carrier Samsung as the storm. This may sway consumer behavior. manufactures touchscreen cellphones that have similar features but are not considered PDA’s. With a BDI of 112, Samsung is a competitor to BlackBerry.
Current Adver2singBlackBerry is currently print spots highlighting the functionality of the phones. These spots target everyday cellphone users by explaining how useful and user friendly the devices are. The “All You Need is Love” campaign includes a number of television spots that position the brand as passionate and personable by portraying “real- life” scenarios of people utilizing their BlackBerry phones.
Goal and StrategyThe goal of this campaign is to increase and defend market share for BlackBerry by stealing shares from competitors and maintaining brand loyalty. Specific consumers that already purchase within the category will be targeted. We will use the Internet as a cost-effective medium which will be effective in reaching the target. Many category users view our selected vehicle on a regular basis and consumers will also have the ability to purchase the product by clicking the ad they view.
Geographic TargetAccording to MRI data, the North East region indexes at 118 in comparison to the US for BlackBerry owners. This is a fairly high brand loyalty strength and it will be easier to maintain market share in a North Eastern city. According to the 2000 US Census, Boston is home to 124,762 people in the target age group of 25-34. This makes up the largest age group of the city or 21.2% of the total population. The dense population of the target age demographic makes Boston an ideal geographic location.
Demographic TargetThe demographic target for this campaign is men ages 25-34 with post graduate education levels and business or management occupations. The MRI data below defends that PDAs and the features they offer are most helpful to business owners and executives. CDI BDI (PDA owners) (BlackBerry owners)Educ: post graduate 184 185Men ages 25-34 115 130Occupation: Management, Business and Financial 187 220OperationsThis shows that the category has a very high potential and that BlackBerry is a very strong brand.
Reach and FrequencyReach: 70Frequency: 4GRPs: 280Goal reach is 70. This is about average, we are using a very targeted vehicle so this will not be overly hard to obtain.Goal frequency is 4. This is slightly above average because of the high impression amount and the medium we are using is very concentrated. There is high loyalty and this is a dominant brand, but the product is used daily.CPM: $53Internet CPM usually ranges from $20-70. This price falls within the average range and will ensure that the campaign budget will be stretched effectively.
TimingCellphones are mostly purchased based on when contracts expire because discounts are often offered. This makes it difficult to decide upon an exact time to market to consumers that are already within the category.This campaign will run from October to December because of the Christmas shopping season. Many cellphones are purchased out of contract at this time, and we will be targeting consumers who may not necessarily wait for their contract to expire before purchasing a new product.
MediumThe Internet is a very cost efficient medium for supplemental advertising. With the ability to target specific demographics based on geography and browsing history, it is as versatile as print, outdoor or broadcast. The Internet is also the only medium in which consumers can actually interact with the ad they are exposed to. Consumers can view the ad, then “click-thru” to the company website to learn more or make a purchase.Educ: post graduate 19,136 1,761 9.2 10.0 117Age 25-34 40,028 4,617 11.5 26.3 147Occupation: Management, Business and Financial 2,158 62,187 10.1 12.5 129Operations The MRI data above describes how likely the consumers in our demographic are to purchase their PDAs online. The education level, age range and occupation index at 117, 147 and 129 respectively. The target is likely to purchase online, therefore it should be easily and effectively reached online.
Vehicle BusinessWeek.com “engages global professionals” that are “affluent, business decision making, information- hungry, web-savvy active online consumers” (“web visitors” www.mediakit.businessweek.com. 2010.) The audience comprises business professionals that are 58% males and 65% post college graduates, making this an effective vehicle to reach our target.BusinessWeek online has the ability to segment their user base according to IP addresses on computers and geographic region (including city or state). This will help to target consumers only in the Boston area. The website can also break down the user base by channels of the website users have visited and article keywords they have viewed. This will help to target users who are interested in the category and help the overall goal of increasing market share.
BudgetOverall, $82,040 of the $100,000 was used for this campaign. The budget was effectively stretched in order to get a lot of impressions and gain a lot of exposure in the market. This plan should increase the market share and maintain the brand loyalty of the existing customers.