Anthonyaccording to RIM’s annual report, its total revenue in 2011 was $20 million dollars. That’s a $5 million increase from 2010. Meanwhile, U.S. revenue, which represents 40 percent of RIM’s total revenue, was down $800,000 versus 2010.
AnthonyAbout 80 percent of RIM’s total revenue is from the sale of its BlackBerry handset devices. That translates to almost 20.5 million devices sold in the U.S. in 2011 – a flat number (-375k devices) versus 2010. But this isn’t good news for RIM’s BlackBerry brand.
AnthonyThe smart phone category has experienced explosive growth since October 2010, when just 29% of the total U.S. population owned a smart phone. According to a Nielsen mobile insights study from February 2012, that number has ballooned to 50 percent.
AnthonyAnd rather than capitalizing on this growth, BlackBerry’s once dominate 40% share of the marketplace has slipped to just 10% as competitors like Apple and Google’s Android platform have entered the category.
Anthony hands off to Amanda
AmandaTo compete, RIM is trying to go head-to-head with iPhone and Android on phone features. And this “me too” approach is trying to appeal to a younger demographic by associating the brand with hip and cool. Here’s an example of this communication, a video that features the Martinez Brothers, who are said to be “global DJ and music producers. The description of this video on YouTube reads: “Christian and Steve's BlackBerry® Bold™ smartphones ensure their schedules stay in sync with BBM™ and travel apps as they DJ around the world”. The trouble with this, and the rest of BlackBerry’s communication, is that it’s clinging to features like BBM and apps that are no longer differentiators for the brand. Not to mention, they are trying too hard to be “cool”. And it’s coming off as very inauthentic. Instead of an inspirational or aspirational message, it feels as though they’re talking down to consumers. Like a “cool dad” who just doesn’t get that he’s embarrassing his son or daughter.
AmandaEven more concerning is how inconsistent some of BlackBerry’s communication is versus the message in the previous video of The Martinez Brothers. Take, for example, this January 2012 blog post about “the bold team”. It was created after asking its fans/followers on Twitter and Facebook to share how they plan to “be bold” in the new year. The consumer responses were turned into this cartoon infographic with the following names and personalities: GoGo Girl (The Achiever), Trudy Foreal (The Authentic) , Justin Steele (The Advocate), Max Stone (The Adventurer).
AmandaIt’s not shocking to see RIM focus its communications toward a younger audience since they are more likely to purchase smart phones than older consumers.
AmandaAnd although a majority of consumers are familiar with the blackberry brand name – it’s second to the iPhone in name recognition – less than a quarter of people surveyed will consider buying the device. For 18-34 Demo, the results are even worse. Only 18% said that they’d consider buying a BlackBerry.
AmandaI’m sure everyone remembers Mr. Pine’s 2x2 matrix from his Ted Talk on “what consumers want”. Does anyone want to take a guess at where RIM’s BlackBerry messaging might fall? We think it’s in the “real fake” box. It is a smart phone. And in most cases, can do everything it says it can do. But it isn’t true to itself – it’s brand heritage and character by trying to be the “hip, cool brand of smart phones”. And consumers can see right through this.
AmandaThe youthful immaturity of the Martinez brothers and Bold Team promotion are in conflict with how consumers perceive the brand’s personality. BlackBerry is supposed to be serious, mature, the grown up in the crowd. But
Amanda hands off to Anthony
AnthonyBlackberry occupies a very distinct place in people’s minds – that is unique from other smart phones: its professional, mature, productive, and successful. Rather than fighting to be something blackberry isn’t – cool, fashionable, and hip – it should embrace this heritage.
Anthonyaccording to U.S. census data, we know that there are 234 million adults 18+ living in the United States.
AnthonyOf which, 89% own a cell phone according to Mintel
AnthonyAnd a March 2012 Pew institute study said that 53% of all cell phone owners own a smart phone. So, this means there are about 110 million current smart phone owners.
AnthonyThis also means that there are 98 million non-smart phone owners. They’re already committed to the idea of owning a cell phone. And with the continued rapid growth of smart phones, its likely that these owners will *have to* trade up. We also know from our primary research, that a third of non-smart phone owners said that they’re very/somewhat likely to purchase a smart phone in the next 6 months. That’s 29 million consumers on the cusp of purchasing a new smart phone.
AnthonyPeople without smart phone look like BB owners
AnthonyAdd animation by color
Anthony hands off to Christine
ChristineAccording to Mintel, mobile handset devices in the U.S. are expected to grow from 155 million in 2011 to 190 million in 2014, which is a projected growth rate of 22 percent.
ChristineFor RIM to keep pace with the category, it will need increase the number of U.S. blackberry devices sold by 4.5 million over the next three years. That equates to about 1.5 million devices per year. For a total increase to 25 million devices by 2014.
Christine hands off to Amanda
In thinking about this campaign, we found an interesting tension to build BlackBerry’s messaging around – the idea that we are living a new connected life, but are challenged by being in the moment vs. distracted by all our devices. Sherry Turkle highlighted this fact in her February 2012 TED talk – Connected, But Alone. She tells several stories about the struggles we’re having in this new connected life. One story was of a business man who lamented to methat he feels he doesn't have colleagues anymore at work.When he goes to work, he doesn't stop by to talk to anybody,he doesn't call.And he says he doesn't want to interrupt his colleaguesbecause, he says, "They're too busy on their email."But then he stops himselfand he says, "You know, I'm not telling you the truth.I'm the one who doesn't want to be interrupted. And this led us into our idea…
AmandaTo be successful is not always having your head down in your email. Being successful is being in the moment, having the tools you need to get things done. It’s not the thing you need to always be on and play games.Success means having a balanced life – not having your phone be your friend to play games, chat but rather a device to get work done – that’s reliable and efficient.Your phone should be there when you need it, but you don’t need it to be there all the time. Don’t let your phone control you. Get work done so you can live in the momentBlackBerry = enabler, toolSome phone manufactures might have some people believing that you can’t live without your phone. We’re here to say that’s not true. You don’t need the latest & greatest to be great/successful. You need a tool that helps you get the job done.
AmandaWhen you have things to get done, you have it, it works, it’s efficient, but when you don’t have things to get done, you can stand on your own, live in the moment.
In Search of Insights BLACKBERRYChristine LeeAmanda PowersAnthony Martinez
RESEARCH IN MOTION (RIM) Company behind BlackBerry smart phone Founded 1984 Headquarters in Waterloo, Ontario (Canada) Launched first BlackBerry in 1999 Business customers
FEATURE PHONEA cell phone that… contains a fixed set of functions beyond voice calling not a smart phone may offer web browsing, but cannot download and install applications from an online marketplace - PC MAGAZINE
SMART PHONEA cellular telephone… with built-in applications and internet access provides digital voice service plus text messaging, e-mail, web browsing, still and video cameras, MP3 player, video viewing and calling turns the once single-minded cellphone into a mobile computer - PC MAGAZINE
THE ASSIGNMENT What do we say? Who do we say it to?
FOUR STEP PROCESS 4 QUANT SURVEY 3 FOCUS GROUP 2 SOCIAL MEDIA LISTENING1 DESK RESEARCH
METHODOLOGY QUALITATIVE QUANTITATIVEWhat? Focus Group Online SurveyWho? Adults 18+ Adults 18-59 • current smart • Must currently own a smart phone, have phone owners one through work or plan to buy one in the next 6 months.How many? 8 participants 567 respondents • 280 female • 296 maleWhen? 2/15/2012 3/24 – 3/25Where? New York City National
THEY’RE TARGETING Millennials Young Professional 20 to 30 years old Cool, hip, urban
YOUNGER CONSUMERS ARE EMBRACINGSMART PHONES 80% 60% 40% 20% 0% Likely to purchase in next 6 months 18-34 35-44 45+ Q6: How likely are you to buy a smart phone for yourself in the next 6 months? Very/somewhat
BUT, THEY’RE LESS LIKELY TOCONSIDER BUYING A BLACKBERRY 80% 70% 60% 50% 40% 30% 20% 10% 0% seen or heard would consider 18-34 Q. 18 which of the following smart phone brands have you seen or heard of Q33. If you were in the market to buy a new smart phone tomorrow, which brands, if any, would you consider
THE PROBLEM Right message, poor execution lack authenticity wrong target audience
“Authenticity is the new consumer sensibility, thebuying criteria by which consumers are choosingwho to buy from and what to buy.” ~ Joseph Pine Source: Joseph Pine Ted Talk, “what consumers want”, February 2004
BLACKBERRY’S ISN’T BEING AUTHENTICis what saysit is REAL FAKE REAL REALisn’t what FAKE FAKE FAKE REALsays it is isn’t true to self is true to self Source: Joseph Pine Ted Talk, “what consumers want”, February 2004
CURRENT EXECUTIONS DISONANT WITHHOW CONSUMERS PERCEIVE BRAND AMBITIOUS DAD COOL FRIEND SENSIBLE NEIGHBOR Q37-Now we’d like you to think about smart phone brands a little differently than you normally might. We’d like you to think about these brands as if they were people that you knew. So, based on everything you’ve seen or heard about these “people”, please indicate which of these “people” are described by each statement. You can select none, one, some or all of the cell phones for a particular statement. There are no right or wrong answers - we’re only interested in your opinions. (Select as many as apply across for each statement)
BLACKBERRY OCCUPIES UNIQUE BRAND SPACE Q:36 Words people use to describe different brands of smart phonesQ:36 Words people use to describe different brands of smart phones
CURRENT OWNERS MOST LIKELY TOCONSIDER 70% 60% 50% 60% 40% 30% 20% 10% 18% 0% "Yes" would consider purchasing BlackBerry Current owners Non-owners Q:33. If you were in the market to buy a new smart phone tomorrow, which brands, if any, would you consider?
YET ONLY A THIRD ARE LIKELY TO BUY 2% 8% 25% 34% 31% Android BlackBerry iPhone Windows None of these Q21. Currently own a BlackBerry Q:34. If you were in the market to buy a new smart phone tomorrow, which ONE of these brands would you buy.
FIRST PRIORITY… Give current owners a reason to stay
MOST BLACKBERRY OWNERS ARE 35-49YEARS OLD 14% 33% 53% 18-34 35-49 50+ Q2: Which of the following describes your age? Q21. which of these brands currently own – BlackBerry
BUT, TO MAINTAIN (and grow) ITSFAIR SHARE, ADDING NEW CUSTOMERS ISCRITICAL But who?
208MMown a cell phone source: Mintel U.S. mobile phones February 2011: 89% of U.S. adults 18+ own a cell phone
110MMown a smart phone source: Pew Institute, March 2012, 53% current cell phone owners own a smart phone
98MMdon’t own a smart phone source: Pew Institute, March 2012, 53% current cell phone owners own a smart phone
NON SMART PHONE OWNERS ARE MORELIKELY TO BUY BLACKBERRY non smart phone owners 123 likely to buy BlackBerry smart phone owners likely to buy BlackBerry 88 0 50 100 150 INDEX Q.35 If you were in the market to buy a new smart phone tomorrow, which ONE brand, if any, would you most likely buy.
AND THERE ARE MEMBERS OF THEBLACKBERRY TRIBE AMONG NON SMARTPHONE OWNERS THAT HAVEN’T BEENACTIVATED
A MAJORITY OF NON SMART PHONE ANDCURRENT BLACKBERRY OWNERS ARE 35-49 Non SP Owners BlackBerry Owners 14% 22%35% 33% 53% 43% 18-34 35-49 50+ 18-34 35-49 50+
THE 35-49 YEAR OLD CONSUMER IS MORELIKELY TO CONSIDER BLACKBERRY 60% 50% 57% 40% 30% 20% 27% 10% 16% 0% 18-34 35-49 50+ Would Consider Blackberry Purchase Q:33. If you were in the market to buy a new smart phone tomorrow, which brands, if any, would you consider?
NON SMART PHONE OWNERS WHO ARE 35-49YEARS OLD ARE THE LOWEST HANGING FRUIT 35-49 Smart Phone Ownership BLACKBERRY’S OPPORTUNITY 52% 48% Yes No Q.5 Are any of the mobile phones you currently have a smart phone – that is a phone?
NON SMART PHONE OWNERS HAVE SIMILARATTITUDES TOWARD CATEGORY AS BLACKBERRYOWNERS Non Smart Phone BlackBerry Would Consider Owners Owners BlackBerry 1) Laptop/Desktop 1) Car 1) Car 2) Car 2) Smart Phone 2) Laptop/Desktop 3) Toothbrush 3) Toothbrush 3) Toothbrush 4) Shoes 4) Shoes 4) Smart Phone 5) Smart Phone 5) Laptop / Desktop 5) Shoes Q.12 If you could have ONLY THREE of the following for the next 2 weeks (all other would be taken away) which three would you choose. Showing top 5 of 10 responses
AND THEY VIEW THE BLACKBERRY BRANDIN THE SAME WAY AS OWNERS Non Smart Phone BlackBerry Owners Would Consider Owners BlackBerry1) Taken seriously 1) If lost, want him/her 1) If lost, want him/her2) If lost, want him/her 2) Captain of debate 2) Taken seriously team3) Know what expect 3) Do well on Jeopardy 3) Know what expect4) Hard time 4) Know what expect 4) Do well on Jeopardyunderstanding5) Do well in chess 5) Taken seriously 5) Knows besttournament restaurants Q.37 We’d like you to think about these brands as if they were people you know. Based on everything you’ve seen or heard about these people, please strongly agree / disagree
SECOND PRIORITY Activate the tribe of like-minded non smart phone owners to consider the BlackBerry brand
22% HANDSET CATEGORY GROWTHEXPECTED BY 2014 U.S. mobile handset volume (million units)200190180170160150140 2011 2012 2013 2014 source: Mintel, table 1.0 mobile phone handsets, GMN Estimations
THE GOAL 25.0MM 2014 devices 20.5MM 2011 devices
STRATEGIC IMPERATIVE Need a single message that appeals equally to both audiences Activate like- Give current minded non owners a smart phone reason to owners to stay consider
CURRENT SMART PHONE OWNERS HAVE A MUCHSTRONGER CONNECTION TO DEVICE THAN NONOWNERS Organize my life Turn phone off when on vacation SP is part of me Extension of personal identity Features are confusing Use it to decide where go/what do Rather use it over a computer Use it to get info I need Texting as meaningful as conversation Need to be connected 0% 20% 40% 60% 80% 100% Non Owners Current SP Owners Q.13 Listed below are a number of things people have told us about smart phones. Please indicate how much you agree or disagree with each.
NEWEST TECH IS LESS OF A MOTIVATORTO BUY FOR OLDER CONSUMERS Purchase before others do Buy newest one availableLike buying latest smart phone 0% 10% 20% 30% 40% 50% 45+ 35-44 18-34 Q.14 Top 2-Box. Please indicate how much you agree or disagree that each of the following statements describes you.
NON-SMART PHONE OWNERS WANT TOOLSNOT A TOY High Importance · Ease of Making Phone Calls · Battery Life · Keyboard Ease of Typing · Security Toy Tool · Internet Browsing · Touch Screen · Instant Messaging · Operating System · Many Applications · Weight of Phone · Latest Device Low Importance
BLACKBERRY = SUCCESS “We are a group of people who didnt go to the artistic, granola route…BlackBerry reminds me of my father and business….now I’m in a class that gets up everyday and you go to work.” - Zack (focus group participant & Blackberry owner)
Positioning Statement For accomplished adults age 35-49 who are ambitious, yet practical. They want a mobile device thats more than a phone, but isnt overcomplicated with todays many frivolous distractions. BlackBerry is the only brand of smart phones that helps you quickly get done what you need so that you can get back to what really counts professionally and personally.
OBJECTIVE FOR COMMUNICATIONS Current Behavior Desired BehaviorPicking a smart phone other Get them to choose BlackBerry than BlackBerry instead ROLE FOR COMMUNICATIONS Current Thinking Desired Thinking There’s so many different BlackBerry isSmart Phones with so many smart, professional, and it has different features exactly what I need
CULTURAL TENSION “We’re getting used to a new way of being alone together. People want to be with each other, but also elsewhere – connected to all the different places they want to be” ~Sherry Turkle