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- 1. THE RETURN OF BY- LSM ID: 203300 / ARU ID: AA1804
- 2. CONTENTS INTRODUCTION – The Client Problem OBJECTIVES – SMART Objectives STRATEGIES – STP Strategies TACTICS – The 4Ps of Marketing Mix ACTION PLAN – The Gantt Chart CONTROL – Balanced Score Card CONCLUSION – Overcoming The Competition BIBLIOGRAPHY
- 3. INTRODUCTION Blackberry Limited is a Canadian organization that develops various softwares and mobile phones. Once ruling the smart phone market with a howling 70% market share, it has now shrunk to 0.3% only. There have been a series of failed attempts to regain the fallen position but thriving competition and lack of reinvention has led the company to its rapid demise. Period Android iOS Windows Phone BlackBerry OS Others 2015Q2 82.8% 13.9% 2.6% 0.3% 0.4% 2014Q2 84.8% 11.6% 2.5% 0.5% 0.7% 2013Q2 79.8% 12.9% 3.4% 2.8% 1.2% 2012Q2 69.3% 16.6% 3.1% 4.9% 6.1%
- 4. OBJECTIVES SMART Objectives: • Increase global sales to at least 10 Million units a year increasing the smart phone market share to 1% from 0.3% • Developing a product that incorporates the core competences of the company with the most popular OS to customer satisfaction. • Extensive marketing campaigns to penetrate through the existing competition & ensure targeting the right market for the campaigns.
- 5. LAUNCH OF BLACKBERRY PRIV – PRIVilege & PRIVacy Key Features: -The famous QWERTY keypad is back -Touch & Type - First blackberry with Android OS - DTEK privacy controls - Blackberry Hub -Popup Widgets -Dual-curved UHD Display -18 MP Rear & 2MP Front Camera -5.40 inch Display -3GB RAM , External Storage – 2TB, 3410 mAh Battery
- 6. Age Groups - Teenagers - Young Adults - Matured Adults - Instant connectivity via BBM on all platforms - Access to all apps of android play - Blackberry Hub managing communication Life Style & Personality - Businessmen - Employees - Enterprise customers - Ease of access to emails, spreadsheets, reports, etc. - Highly secure device with special features to maintain privacy - Blackberry hub to make communication easier. Loyalty - Keypad addiction - Reliability on secure services - Ease of typing and working over the phone -Trust on security and privacy provided Region US, Europe, Asia & Middle East - Positioning as one of its own kind touch-type phone addressing the one main issue suffered globally – lack of privacy of smart phone users STRATEGIES STP Analysis:
- 7. 4 Ps of Marketing Mix TACTICS PRODUCT: •Blackberry is the developer of the most secure softwares. • Its hardware developments include a tablet and various mobile set series e.g. the 10 series, bold, curve, torch, pearl, etc. (blackberry.com, 2015). Its latest launch is the Blackberry Priv. PLACE: •Selective distribution strategy is used wherein the chosen distributors like AT&T and Verizon sell the products. Currently they should try to ensure that the they are choosing the right distributors who would make sure they give their products the space they deserve in the market. PRICING: •Since blackberry’s main target is the corporate market, it uses the premium pricing strategy which hasn’t worked out well for it. The new Priv has been priced as $749. However, it might be causing them a problem in achieving their sales target. As blackberry is trying to penetrate the market right now it should be using promotional pricing i.e., initially the pricing should be reduced under a marketing scheme and later on increased if the product performs well in the market. PROMOTION : •Blackberry has been using various advertising and public relation strategies to promote its brand which has been failing because the haven't targeted their markets correctly. Currently the marketing for blackberry Priv hasn’t been spectacular either. It needs to use trendy and innovative methods of marketing its products that would captivate the youngsters and indulge the businessmen as well.
- 9. ACTION PLAN - THE GANTT CHART - ESTIMATED BUDGET FOR MARKETING: $34.52 Million •Advertising: $20 Million •Publicity: $5 Million •Promotional Offers: $2Million •Online Marketing: $0.5 Million •Social Media: $5 Million •Direct Marketing: $200 Thousand •PoS Marketing: $ 2 Million
- 10. CONTROL STRATEGY OBJECTIVES MEASURES TARGETS INITIATIVES FINANCIAL Making a more efficient budget Cost saving by streamlining business processes 20% cost saving by Q3 2016 Use cost benefit analysis to make smart decisions CUSTOMER Increasing market share Identifying customer needs and building relations 1% by Q4 2016 Studying consumer behavior and increase customer contacts and communication INTERNAL BUSINESS PROCESSES Develop new products Extensive study of current market conditions and predicting future demand forecasts 1 new smart phone by Q4 2016 Reviewing the current issues being faced by consumers and developing technology to rectify those issues LEARNING & GROWTH Implementation of Cross Training Evaluating employee performances Enhancing productivity rates by 15% by Q3 2016 On the job training sessions BALANCE SCORECARD
- 11. CONCLUSION Blackberry has been struggling for a very long time to have its comeback in the smart phone market. Only after the hiring of new CEO John Chen has the company been able to stabilize since he has been focusing on the strengths of the organization by capitalizing on the security and software demands of the market. This has allowed the firm to take their time to develop the new Priv. The company has assured it will not be quitting the hardware production and is determined to penetrate through the competition. It is too early to determine the success of the product but the Priv will surely be a very crucial factor in deciding the fate of blackberry
- 12. BIBLIOGRAPHY • Betters, Elyse. "Blackberry Priv Official: Release Date, Price, Specs And Everything You Need To Know - Pocket-Lint". Pocket- lint.com. N.p., 2015. Web. 19 Dec. 2015. • AndroidPIT,. "Blackberry Priv Review: A Very Sophisticated Test Piece - Hardware Reviews - Androidpit". N.p., 2015. Web. 19 Dec. 2015. • Kastrenakes, Jacob. "Blackberry’S First Android Phone May Cost More Than The Best Android Phones". The Verge. N.p., 2015. Web. 19 Dec. 2015. • berryflow.com/2015/11/priv-marketing-on/ • frank-ok.blogspot.com • Strategicmanagementinsight.com. N.p., 2015. Web. 15 Dec. 2015. • Managementstudyguide.com,. "SWOT Analysis Of Blackberry". N.p., 2015. Web. 15 Dec. 2015. • Shah, Agam, and Agam Shah. "Blackberry Plans To Renew Enterprise Focus To Lure Back Customers". PCWorld. N.p., 2015. Web. 15 Dec. 2015. • The Globe and Mail,. "How Blackberry Blew It: The Inside Story". N.p., 2013. Web. 15 Dec. 2015. • Tsai, Allen. "The True Story Behind The Rise And Fall Of Blackberry.". 2machines. N.p., 2015. Web. 15 Dec. 2015. • www.idc.com,. "IDC: Smartphone OS Market Share". N.p., 2015. Web. 15 Dec. 2015. • TechRadar,. "Techradar | The Home Of Technology | Techradar". N.p., 2015. Web. 19 Dec. 2015. THANK YOU!
Editor's Notes
- This presentation highlights the key contents of the marketing strategy developed for Blackberry’s come back in the market.
- The key contents of the presentation.
- Blackberry Limited is headquartered in Waterloo, Canada since 1984. Although Blackberry has been doing well in the software business, its mobile phone market has been dwindling severely. In 2007 it owned a howling 70% market share; it has now dwindled to 0.3% according to reports of IDC in the Q2 of 2015 while its competitor’s holdings are as follows: Apple- 13.9%, Android- 82.8%, Windows Phone- 2.6% & others – 0.4% (IDC, 2015). Blackberry has to ensure that it introduces a product that can penetrate through this competition and stand out as a unique product.
- SMART Objectives: SMART objectives stand for Specific, Measurable, Accurate, Reliable, Time-bound. The smart objectives for blackberry are that they must increase their global sales by 10 million units a year and have their market share raised up to 1% at least. Their next launch should be a product that addresses to the rising concerns of the public which blackberry can deal with very well because they are experts in it: Security & Privacy. Also it needs to ensure that this product is run on a platform that is user-friendly and widely accepted by consumers. Extensive marketing strategies need to be carried out to increase the brand awareness and enhance the brand image of blackberry that has tarnished over the past couple of years. These campaigns need to be different for different market segments ensuring they capitalize on all the targeted audiences.
- The new Blackberry Priv is the latest model developed to hit the market by the end of this year. This model has been developed keeping in perspective all the key issues consumers have been facing. It has a QWERTY keypad which has been the biggest selling point for blackberry because of the ease of typing on it. It also provides a complete touch screen of 5.40inch with curved edges which brings it in the league of phones like iPhone6s and Samsung Edge. This phone is the first to work on the android platform which addresses to the issues consumers were facing using the QNX developed OS before. It has special app called DTEK built-in that helps the users in controlling and managing their privacy by reviewing all the apps and showing ho much information is being accessed by them. The Blackberry hub clubs all the connectivity app and provides ease of access as well as communication management. A stunning 18 MP camera Schneider-Kreuznach certified designed to deliver professional photos High end specs with extendable storage up to 2 TB enable swift processing.
- A right product might fail if it is not brought to the sector where it is demanded. In order to target the right consumers, STP analysis have been conducted that clearly indicate the segmentation, targeting and positioning for the marketing campaigns. Each segment has a target market where the product has to be positioned in a unique manner. In the segment of age groups, the targeted market is of teenagers, young adults and matured adults and the products is positioned as the keypad is fun and easy to use, can have instant connectivity via BBM, access all kinds of apps and use the BBM Hub for managing their networking. In the segment of life style and personality, the consumers to be targeted are businessmen, employees and enterprise consumers and the brand can be positioned to them with the accessibility to emails, spreadsheets, reports, etc. with a security assurance using the DTEK functions. Loyalty is another segment which targets the existing customers and the brand loyal consumers of blackberry who are addicted to the keypad and find it reliable. The positioning strategy would include showing appreciation to their loyalty along with proving them that all their needs are being addressed. The segmentation of region targets the US, Europe, Asia & Middle East where it unanimously positions itself as the most secure android smart phone and one of its kind touch-type input systems.
- The 4Ps of marketing mix enables us to individually the study the most crucial factors that when at balance provide the best marketing strategy. Product: Blackberry has a wide variety of softwares and hardware production. It has developed man mobile phones and the latest launch is the Blackberry Priv. Place: Selective distribution strategy is used to ensure that the products are distributed in the areas where the targeted market can access them. The distributors are AT&T, Verizon, T Mobile. Rogers, Bell, Telus, Wind, Sasktel, etc. Pricing: The premium pricing strategy is used by blackberry which is also implemented on the newly launched Priv. it is priced at $749. The product has top notch features, but it must be considered that blackberry is still trying to penetrate through the market and has a large sales target to achieve. It would be a much wiser strategy that a promotional pricing strategy is used i.e. the initial pricing will be cheaper under a limited time promotion and once the product does well it can be increased. This will also allow the early buyers to spread the word of mouth which is the best way of building brand image. Promotion: Promotion has always been weak at blackberry. Earlier it has used several advertising and publicity relation strategies like appointing Alicia Keys as the creative director of blackberry. But they haven’t worked out very well. The recent promotion strategies of blackberry for Priv have also received a lot of criticism. Blackberry needs to come up with bright and creatively captivating promotional strategies that can attract the younger generation as well as bring the status of classiness to all the businessmen who would be targeted.
- The recent blackberry promos for Blackberry have been as shown above highlighting the privacy feature.
- The GANTT chart enlists the activities to be carried out in the action plan in order to implement the objectives of sales and marketing along with highlighting the time period in which they have to be carried out. Press Conferences: these need to be carried out by the senior management executives where they talk in detail about the launch of the new product and release statements on the current strategy of the organization. Pre-orders and bookings: this helps in speculating in the market and creating anticipation among consumers who like to buy the latest phones the earliest and also by all bloggers and analysts who can have to review the phones and update the media. Launch of Blackberry Priv: this event marks the launch of blackberry in the market in all major distributing outlets. Advertising: releasing advertisements at TVs, occupying major billboard spaces and radio. Publicity: Having a celebrity endorsement to bring the brand into news and attract the young consumers. Promotional Offers: Having price concession\freebie offers with the launch of the product to capture the attention of the customers Online Marketing: Publishing on the websites and online advertising. Social Media: This is one of the most important sources of promotion wherein the official account of blackberry can have contests on sharing the news of blackberry and the one with most likes are rewarded. Direct Marketing: Sending emails to existing and potential consumers about news and promotions on Priv’s launch. Point of Sales Marketing: This is also one of the most important kinds of marketing as the direct interaction with an individual has more affect in convincing the buyer to make his decision. After Sales Analysis: These analysis help in evaluation of the achievements of target and the success of failure of strategies.
- A balance scorecard helps in taking control of the activities. Financial Strategy: In order to make a more efficient budget, the business processes will be streamlined to save 20% of the cost by Q3 of 2016. Cost benefit analysis can be used to make smarter decisions in budgeting and costing. Customer Strategy: Increasing the market share to 1% by Q4 of 2016 through identifying customer needs and building up relations with them. Study of consumer behavior and having more customer interaction can help in achieving this. Internal Business Processes: Development of more technologically enhanced and secure smart phone by Q1 of 2017 which will require extensive study of the current market conditions and analysis of future market trends. Reviewing the current issues of consumers will help in rectification of those problems. Learning and Growth: Implementation of growth training to enhance employee productivity by 15% in the Q3 of 2016 through evaluation of employee performances and providing them on the job training.