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Blackberry New Product Developments


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Final Project for New Product Development and Branding course at USC

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Blackberry New Product Developments

  1. 1. PukkyChiraguna • Sean Dennis • Melissa Gish <br />Justin Guerrero • Anatashia Lewis<br />
  2. 2. Mental Map of BlackBerry<br />Positive<br />Negative<br />
  3. 3. Brand Mantra<br />
  4. 4. Perceptual Map<br />EASY TO USE<br />Digital Community:<br />BlackBerry has a strong digital community with respect to BlackBerry Messaging (BBM). <br />BBM is instant messaging which is only available to BlackBerry users. Thus, this unique feature creates a sense of community and belonging. <br />Often times consumers try to convince their friends to buy a BlackBerry so that they can “BBM” each other. <br />DIGITAL COMMUNITY<br />
  5. 5. Positioning Statement<br />BlackBerry is the only Smartphone that offers the largest and most efficient array of messaging features for those who value connectivity. <br />Target Market: College Students between the ages of 18 and 25<br />Nature of Competition: Smartphone’s / Integrated Digital Platforms<br />
  6. 6. Group Goals and Ideas<br />BlackBerry Sol<br />Capitalize on green trend<br />Introduce a completely new technology to the Smartphone industry<br />Address complaints on short battery life<br />BlackBerry Capture<br />Leverages BlackBerry’s integrated digital platform<br />Leverages how consumers use BlackBerry to share content online within their community<br />Create a Smartphone with the highest quality functions<br />BlackBerryME<br />Increase loyalty and purchase consideration<br />Increase pride and engagement with the brand<br />Allow users to differentiate themselves within their BlackBerry community<br />
  7. 7. Research Methods<br />Focus groups:<br />Two focus groups with a total of 9 participants<br />Three boys and six girls, ranging from ages 18-23<br />Focus Group Content (1h and 15m duration each)<br />Three concept discussions<br />Written response<br />Discussion<br />Online survey<br />Questions<br />Content<br />Brand positioning<br />New product development ideas and consumer responses<br />Brand Audit Survey<br />Consumer demographics and psychographics; CBBE models<br />Opportunities for new product developments<br />
  8. 8. CBBE Model<br />Resonance<br />Attachment: BlackBerry users felt greater attachment than non-users. <br />Loyalty: 77% of BlackBerry users said they were Somewhat Loyal or Very Loyal to the BlackBerry brand. <br />Community: BlackBerry users feel a strong sense of community among each other. Most of those surveyed wrote BBM and the sense of connection they feel to family, friends and other BlackBerry users as their favorite thing about their Smartphone. <br />Engagement: ~25% of both users and non-users described BlackBerry consumers as “Addicted” and ~20% described them as “Social.”<br />Feelings<br /><ul><li>Among non-users, BlackBerry scored lower than both competitors in almost all categories. Most respondents felt that these words mostly did not describe their feelings towards the BlackBerry brand.
  9. 9. However, BlackBerry users felt a greater sense of security towards BlackBerry though they still ranked iPhone higher in many categories, most notably “fun.”</li></ul>Judgments<br /><ul><li>BlackBerry ranked the same or lower than competitors in every category (Credibility, Quality, Superiority, Uniqueness)</li></ul>Imagery<br /><ul><li>User Profiles: College Students, age 18-25. We asked respondents how they spend their time and the results are in the table to the right.
  10. 10. Purchase and Usage Situations: 100% of those surveyed said they use their BlackBerry for social purposes, 80% said they use it for school and 60% said they use it for their job.</li></ul>Performance:<br /><ul><li>BlackBerry was ranked least stylish of all its competitors.
  11. 11. Users and non-users both chose iPhone as the most reliable phone, NOT BlackBerry.
  12. 12. Users chose the connectivity to others and sense of community as the most favorable characteristics of the BlackBerry.
  13. 13. Consumers who have not used a BlackBerry before are under the impression that the device is difficult to navigate. However, it is clear that those who have learned to use a BlackBerry believe that is easy to use.</li></ul>Salience:<br /><ul><li>When asked how likely they would be to purchase a BlackBerry when next purchasing a cell phone, 70% of Non-BlackBerry users said they were Unlikely or Very Unlikely.
  14. 14. 76% of BlackBerry users said they would purchase a BlackBerry again and 82% said they would recommend it to family/friends.</li></li></ul><li>Concept Preview<br />BlackBerry Sol<br />BlackBerry Capture<br />BlackBerryME<br />
  15. 15. BlackBerry S o L<br />
  16. 16. Concept 1 – BlackBerry S o L<br />Concept Explanation<br />Solar Powered BlackBerry <br />Features include:<br /><ul><li>2 WATT solar panel, capable of charging phone for up to 4 hours of talk time
  17. 17. Integrated social feeds (twitter, facebook)
  18. 18. Wired charging capability still available
  19. 19. 5 MP Camera with HD video capabilities
  20. 20. 8 GB Memory
  21. 21. Enhanced multimedia with up to 8GB of memory
  22. 22. Touch screen and Keypad capabilities</li></ul>Type of Extension: Line Extension<br /><ul><li> BlackBerry Sol is extending the market share by using a new type of technology while retaining the BlackBerry function that has attracted users in the past.
  23. 23. BlackBerry is slightly repositioned with new green consumers.</li></li></ul><li>3 & 4 Factor Models – S o L<br />
  24. 24. POG Model – S o L<br />Social: 6 out of 10 people worldwide have cell phones that need to be wired and charged.<br />Consumers are gravitating towards a more sophisticated green trend.<br />-They want affordable green products that achieves sustainability.<br />-They like electronic gadgets, but energy-saving ones to help curb bills.<br />-Being green is being established as the new status symbol.<br />-There are more conscious, informed shoppers.<br />Product Opportunity Gap: An affordable Smartphone with a continuously charging battery that is derived from green alternative solar energy.<br />Technology: -Solar powered energy is continuously being researched and is becoming increasingly effective.<br />-There are currently no mobile phones that have pioneered in solar-powered products.<br />Economic: -Electricity costs continually rise on an annual basis.<br />- Products using alternative energy will save costs on a long-term basis.<br />-The global recession has pushed people to spend wisely and save costs.<br />
  25. 25. Value Opportunity Chart – S o L<br />Emotion: These results are based on our survey results. For the Sol, nothing scored more than medium and power was ranked the lowest. It is unclear why since the Sol provides the BlackBerry with more power; however, consumers may be skeptical about the technology.<br />Ergonomics: The BlackBerry Sol ranked medium for Comfort and Safety because of the backup battery it would provide for consumers. If they had forgotten to charge their phone, the consumer could rely on the solar-powered backup battery to prevent missed calls, e-mails and BBMs, which would be more comforting. Ease of use is high for the Sol because to use this technology you simply have to expose the BlackBerry to light.<br />Aesthetics: Visual, auditory and tactile are ranked as high because BlackBerry is an entirely visual, auditory and tactile experience.<br />Identity: This product is high in personality on the VOC because it is still a Smartphone with new technology to add a POD from its competition and still maintains BlackBerry’s core personality. The Sol ranks high for point-in-time because it capitalizes on the green movement while solving one of the main concerns BlackBerry users have: low battery life. The Sol also ranks high for sense of place because it is designed to fit into the context of use as it will charge the phone when placed in light.<br />
  26. 26. Value Opportunity Chart – S o L<br />Impact: The Sol ranks high in both Environmental and Social impact because it is new, green, cutting-edge technology. It both saves energy and increases awareness about solar-powered technology.<br />Core Technology: This technology will be both very reliable and enabling, therefore it ranks high on the VOC.<br />Quality: This product will be high in both craftsmanship and durability. <br />Overall Impact: <br />Profit: The profit would be somewhat significant as 50% of survey respondents and a majority of focus group participants said they would purchase this product. 63% of survey respondents also said they would or probably would pay more for this product.<br />Brand: The Sol is high on the VOC chart because this product has the opportunity to increase brand awareness and purchase consideration with this new and important technology.<br />Extendable: The Sol ability to be extended is a high value opportunity because the technology can be extended to all phones and BlackBerry products.<br />
  27. 27. Consumer Response<br />
  28. 28. BlackBerry Capture<br />
  29. 29. Concept 2 – BlackBerry Capture<br />Concept Explanation<br />“Capture your moments "This BlackBerry is the first phone to incorporate Canon imaging technologies, resulting in an easy and immersive mobile imaging experience that will help you seize inspiration, capture precious memories and share images and videos with family and friends. Putting image capture first, this BlackBerry features a 10-megapixel auto-focus imager, high-resolution landscape screen, a Xenon flash, and the innovative Canon glass lens for stunning images and HD movie recording.<br />Type of Extension: Line Extension through Ingredient Branding<br /><ul><li> BlackBerry is partnering with Canon to leverage their expertise in cameras in order to create a new credible 2-in-1 product.
  30. 30. BlackBerry Capture will appeal to the same target market.</li></li></ul><li>3 & 4 Factor Models – Capture<br />
  31. 31. POG Model – Capture<br />Social: -People enjoy taking pictures to record them as valuable memories and as a mean for ‘storytelling’.<br />-People enjoy sharing their photos with their families and friends in various occurrences, including on social networking sites.<br />-More people are making use of video and picture messages (MMS).<br />Product Opportunity Gap: A Smartphone with a high quality built-in camera to capture and share precious moments.<br />Technology: -Camera phones are more portable and efficient in functions as ever.<br />-Camera phones provide faster connection to the Internet to immediately share the captured content.<br />- Camera technology is continually advancing picture and video quality.<br />-Digital camera products of Canon has high brand equity. <br />Economic: -People have higher disposable income.<br />-A multiple feature electronic product is seen as a cost-saver.<br />
  32. 32. Value Opportunity Chart<br />Emotion: These results are based on our survey results. For the Capture, nothing scored more than medium and security was ranked the lowest. This is probably due to the fact that the Capture does not provide any added security with the new digital camera feature.<br />Ergonomics: In terms of ergonomics, the BlackBerry Capture ranks high on the VOC because it will be easy to use and not create physical or mental stress during usage.<br />Aesthetics: Visual, auditory and tactile are ranked as high because BlackBerry is an entirely visual, auditory and tactile experience.<br />Identity: The Capture ranks medium for personality because the partnership with Canon will add a POD but may take away from BlackBerry’s personality slightly in order to successfully mesh with Canon. For point-in-time and sense of place, Capture ranks high on the VOC because it captures these opportunities because they allow the user to create memories and share them instantly with friends and family.<br />Impact: The Capture ranks high in both Environmental and Social impact because it is combines two products into one, which decreases the need for multiple chargers and therefore requires less energy. In addition, it would allow BlackBerry to increase it’s sense of community by allowing users to share digital camera quality pictures with the push of a button.<br />
  33. 33. Value Opportunity Chart<br />Core Technology: This technology will be both very reliable and enabling, therefore it ranks high on the VOC.<br />Quality: This product will be of the highest craftsmanship and durability.<br />Overall Impact: <br />Profit: The profit ranks low in terms of profit because this technology would cost more and many focus group participants were not willing to pay more for this product.<br />Brand: The Capture is medium because it has the opportunity to make the BlackBerry brand younger and more stylish in our target market’s eyes. Both survey respondents and focus group participants responded positively to the idea of having both a Smartphone and a fully-functional digital camera in one product. However, it is unclear whether consumers agree that this product fits in with their original perceptions of BlackBerry.<br />Extendable: The technology in the Capture has the ability to extend into different types of BlackBerry’s however it will still be contained as it’s own separate type of Smartphone.<br />
  34. 34. Consumer Response<br />
  35. 35. BlackBerryME<br />
  36. 36. Concept 3 – BlackBerryME<br />Concept Explanation<br />BlackberryME (BBMe) offers BlackBerry users the chance to customize the colors of their BlackBerry.  They can also choose whether they would like a track pad or trackball and pre-install apps of their choice. <br />Type of Extension: Line Extension<br /><ul><li>BlackBerryME is extending the market share by introducing new options, while retaining the BlackBerry function that has attracted users in the past.
  37. 37. BlackBerry is slightly repositioned for more trendier, self-expressive consumers.</li></li></ul><li>3 & 4 Factor Models –BB Me<br />
  38. 38. POG Model – BlackBerry Me<br />Social: -People like to be differentiated and have their own unique identity.<br />-Consumers feel empowered when using customized products.<br />-People already customize their phones by using cases and phone bags for both protective and aesthetic values.<br />-Color influences consumer decisions.<br />Product Opportunity Gap: A Smartphone personalized to meet individual tastes and upcoming trends.<br />Technology: -Most Smartphones are only available in black or white colors.<br />-Manufacturing capabilities allow facilitation of mass customization.<br />-The Internet provides a platform to preview and choose customization options, along with offering convenience and accessibility.<br />Economic: -More people are willing to pay more to acquire a personally customized product.<br />
  39. 39. Value Opportunity Chart<br />Emotion: These results are based on our survey results. For BlackBerryME, nothing scored more than medium and security and power were ranked the lowest. This is probably due to the fact that this product does not provide any added security. Consumers also don’t feel any sense of superiority or power towards the BBMe. <br />Ergonomics: In terms of ergonomics, the BlackBerryME ranks low in all categories because focus group participants perceived this product/service as difficult and frustrating to use, although the actual BlackBerry would still be easy to use. <br />Aesthetics: Visual, auditory and tactile are ranked as high because BlackBerry is an entirely visual, auditory and tactile experience.<br />Identity: BlackBerryME ranks high in personality because it allows consumers to create their own unique design causing BlackBerry’s perceived style and individuality to increase. However, sense of place ranks low because this does not necessarily fit into the context of use for a BlackBerry. Point-in-time ranks as medium because this product will attempt to make users feel current and stylish.<br />
  40. 40. Value Opportunity Chart<br />Impact: BBMe ranks medium on Social Impact because it has the opportunity to increase BlackBerry’s style among the target market and allow users to express themselves in a new way. It ranks low on environmental because it does not offer any features that would be perceived as environmental.<br />Core Technology: This technology will be enabling due to the control the consumer has over the service, therefore it ranks high on the VOC. It does not have the opportunity to increase the reliability of BlackBerry so it ranks low.<br />Quality: This product will be high in both craftsmanship and durability.<br />Overall Impact: <br />Profit: The profit ranks low in terms of profit because survey and focus group participants did not express much interest in using this product. Only 20% of survey participants said they were likely to purchase this product.<br />Brand: Consumers ranked BlackBerryME the lowest in terms of overall fit with their current perceptions of BlackBerry.<br />Extendable: This product/service cannot really be extended beyond it’s original purpose. <br />
  41. 41. Consumer Response<br />
  42. 42. ATAR - Market Share Estimate<br />ATAR Projections:<br />Assume:<br /><ul><li>80% of definitely buy actually buy
  43. 43. 33% of probably buy actually buy
  44. 44. 90% brand awareness
  45. 45. 67% availability</li></ul>BlackBerry Sol<br /><ul><li>Definitely buy: 7%
  46. 46. Probably buy: 43%</li></ul>Forecasted Market Share= (80%)(7%)+(33%)(43%)=19.79% x 90% x 67%= 11.93%<br />BlackBerry Capture<br /><ul><li>Definitely buy: 10%
  47. 47. Probably buy: 33%</li></ul>Forecasted Market Share= (80%)(10%)+(33%)(33%)=18.89% x 90% x 67%= 11.39%<br />BlackBerry Me<br /><ul><li>Definitely buy: 0%
  48. 48. Probably buy: 20%</li></ul>Forecasted Market Share= (80%)(0%)+(33%)(20%)=6.6% x 90% x 67%= 3.97%<br />
  49. 49. Final Recommendation<br />BlackBerry Sol:<br /><ul><li>BB should move forward with product development because:
  50. 50. 11.93% Market Share is valuable opportunity.
  51. 51. 53% of iPhone users said they would purchase if available, indicating the possibility of taking away market share from rival competition.
  52. 52. BUT more research needs to be done to see how the following are effected, especially in the areas of battery life, phone lifetime, and overheating.</li></ul>BlackBerry Capture:<br /><ul><li>BB should start negotiations with Canon and research right away.
  53. 53. BB Capture showcases the ‘integrated digital platform’ ideology in the brand mantra.
  54. 54. Its function that allows high quality photo and video sharing also ideally reflects BB’s ‘community’ ideology.
  55. 55. BB Capture should be able to attract new customers.
  56. 56. 40% of iPhone users from the survey were likely and very likely to purchase the product.</li></ul>BlackBerryME:<br /><ul><li>BB shouldNOTlaunch BlackBerryME at this time.
  57. 57. This product does not currently fit with BB’s personality and consumers felt little interest in product.
  58. 58. However, we feel that this idea has great potential for BB, thereby recommending more market research and further modifications to fit mantra.
  59. 59. If executed correctly, BlackBerryME could elevate BlackBerry’s perception among our target market to that of iPhone’s; however, our research was unable to return positive results. </li></li></ul><li>