RIM-vs.-Apple-Case-Study11 by pengtt

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									blackberry Samsung Apple iPhone
Samsung Omnia Samsung Behold
LG Dare HTC G1 HTC Dream HTC
Blackberry Tour Blackberry Curve
        Case Study: BlackBerry’s Rise In Brand Power (RIM


Apple iPhone 3G Blackberry Storm
                           vs. Apple)

               OPMT 1A

Blackberry 8830 Palm Pre Palm RIM
                               10/20/2009

        Team D.A.N.N- Neil Raj, Adriana Ng, Dave Clason, Nike Kim


Treo Pro Palm Treo 755p Apple Ap
                         Instructor: David Wan




iPhone 3Gs Samsung Apple iPhone
Samsung Omnia Samsung Behold
LG Dare HTC G1 HTC Dream RIM
Blackberry Tour Blackberry Curve
Apple iPhone 3G Blackberry Storm
Blackberry 8830 Palm Pre PalmTreo
Pro Palm Treo 755p Apple IPhone
3Gs Samsung Apple iPhone HTC
Samsung Omnia Samsung Behold
Problem:

RIM does not currently have the product strategies in place to keep a consistent hold upon the
Smartphone market. With the competition significantly intensifying recently, the potential to take
some of RIM’s key clientele is present. RIM already relies heavily on a small customer base for a
major portion of their revenue, and this could lead to devastating effects from the company as
competitors have the ability to grab a piece of this market.

Key Findings:

RIM BlackBerry

       Research and development is a key tool for the success of RIM.
       RIM 850, 950, and 957 products have a software package that allows the user to access email
        ―anytime, anywhere.‖
       RIM and Intel were considered ―The Most Successful Alliance in North America.‖ in 1999 by
        receiving the Canadian American Business Achievement Award.
       RIM has relationships with community software, technical support, and discussion forums with
        its ―Developer Zone‖
       Leads in market share, Best Email/device combo offering.


Apple iPhone (Key Competitor)

       The iPhone users we surveyed report very high levels of satisfaction with the product.
       E-mail is the #1 function. The most heavily used data function on the iPhone is reading (but
        not writing) e-mail.
       The iPhone increases mobile browsing... More than 75% of iPhone users say it has led them to
        do more mobile browsing.
       Has their drawback. About 40% of iPhone users say the iPhone has trouble displaying some
        websites they want to visit
       28% of iPhone users surveyed said strongly that they often carry their iPhone instead of a
        notebook computer.
       About half of iPhone users are under age 30 and about 15% are students
       At least 75% of US iPhone users are previous Apple customers
       The iPhone has increased its users' monthly mobile phone bills by an average of 24%, or
        $228 extra per year.




                                                                                          MKTG 1102
                                                                                          David Wan
SWOT Analysis:

Strengths

      RIM offers a unique strategy by selling their model to the business sector.
       RIM was the pioneer company to understand that mobile applications need to be sold as part
       of an integrated package, including hardware, software and services, that is both
       complete and simple to use.

      Their software is well designed to be easy for use and organize day to day
       plans. They offer simple enterprise server or desktop software integration solutions
       which allows users to upgrade as requirements increase and this is without placing
       a higher price for the product. Their solution is to remove excess software which
       is something that customers have come to appreciate.

      RIM's brand is now more famous than ever with 5 million subscribers, and has
       influenced many larger device and software vendors; BlackBerry is
       basically another word for ―wireless email.‖

      RIM offers small and user friendly sizes of product which can be carried
       anywhere with you. Also the product, Blackberry, performs well in terms of
       speed, and capacity requirements.


Weaknesses

      The problem with RIM is they are sold only through operators, in another
       words they are dependent on them to launch the Blackberry’s service.
       This takes time, and the cost associated with launching can
       be high for smaller operators.

      Another weakness in the market today is the network operating
       centre that controls all information sent and received by Blackberry
       subscribers’ which is a security issue. The campaign has not
        affected sales to security-conscious organisations in key
       sectors such as government and finance. However, the need for organisations
       to let data transit via a third-party server, and sometimes abroad, in order to
       use BlackBerry is in some respects a weakness.

      BlackBerry is now perceived as a high-end product and lets you
       flaunt high value ownership of the product. Perhaps as a result, almost all RIM’s
       competitors now position themselves as cheaper equivalents of the famed
       BlackBerry. Claims made by competitors can easily be squashed today,
       because there is no data supporting them. However, in the future RIM should
       respond to such claims with smarter pricing and marketing strategies. Ideally,
       RIM should aim to price and package its products for different categories of
       workers as well as for different segments of the market as it does today.

Opportunities

      RIM has the capability to expand their market to a wider range of mobile workers
       due to enterprises looking to position mobile email across their diverse mobile
       workforce.



                                                                                           MKTG 1102
                                                                                           David Wan
       By licensing its software through the BlackBerry Connect and BlackBerry
        Built-In programs, RIM is able to expand its presence with users who
        favour other form factors and device platforms. Connect and Built-In extend
        RIM’s addressable market and improve acceptability of BlackBerry’s products
        in certain markets, such as in the Nordic countries.


Threats

       Tougher competition. RIM is facing tougher competition than ever before,
        from a range of suppliers. Until now, competitors have been small niche or
        vendors, but going forward RIM will compete with large global players such as
        Nokia and Apple, as well as with operators, many of which have launched
        their own branded email services. It is unclear what impact the newcomers will
        have on the market, but many enterprises are willing to consider them as valid
        alternatives to BlackBerry today.


Competitive Analysis:

Apple iPhone 3GS

The good: The iPhone 3GS adds common cell phone features like multimedia messaging, video
recording, and voice dialing. It runs faster then the previous model; its promised battery life is
longer; and the multimedia quality is exceptional.

The bad: The iPhone 3GS' call quality shows no improvements and the 3G signal reception remains
uneven. Doesn’t have Flash Lite, USB transfer and storage, or multitasking.

HTC Touch Pro2

The good: The HTC Touch Pro2 features a sharp, spacious touch screen and an easy-to-use full
QWERTY keyboard. The Windows Mobile smart phone also includes conference call management
tools for business users and offers good call quality. It also has 3G support, Wi-Fi, Bluetooth, and GPS.

The bad: The smart phone is heavy and bulky. Onboard memory is low, and poor quality camera.
More expensive than others in the same.

Nokia E71x

The good: The Nokia E71x is affordably priced and offers a long list of features, including 3G, Wi-Fi,
Bluetooth, GPS, and a 3.2-megapixel camera. Also includes QWERTY keyboard made with high-
quality construction.

The bad: Slow GPS. The keyboard layout is somewhat cramped.

Palm Pre

The good: The Palm Pre's multitasking capabilities and notifications system are excellent. The smart
phone features a vibrant display with multitouch functionality as well as a solid Web browser and
good multimedia integration. The Pre offered good call quality and wireless options include 3G, Wi-
Fi, Bluetooth, and GPS.


                                                                                            MKTG 1102
                                                                                            David Wan
The bad: The Pre's keyboard is cramped. Battery life drains quickly and the smart phone can be
sluggish at times. Lacks expansion slot, video-recording capabilities, onscreen keyboard, and Flash
support. The Pre App Catalogue is still in beta with a limited number of titles.

Target Market:

As a group we chose to target the American and Canadian mass-consumer market but more
specifically the 20-29 year old crowd that live in or within 50 km. of an urban setting. The consumers
are an equal split of male and female individuals, with the majority being students in post secondary
institutions.

Those that are employed are working have careers in professional and scientific services, arts,
entertainment, and the information industries. The consumer comes from middle to upper middle
class families with a combined household income of $70,000 – $150,000 per year.

The consumer will spend the majority of their disposable income on travel and entertainment. You
can often find these people at movies, playing video games, on vacation or in school at the library or
coffee house. Their primary mode of transportation is mass transit.

They are technologically savvy people who prefer online banking and use the internet at least once a
day. Common websites that these individuals visit include networking sites like facebook, online
streaming media sites like YouTube, and online retail sites like Ticketmaster, Expedia, and the iTunes
store.




         Consomers that are in our
               age range
                                                Total US/Canada
                                                population
                                                20-29 years of age



Stats care of the US Census Bureau, Statistics Canada.

Alternatives:

A) Sign contracts with major companies in Asian Markets.

It is predicted that 50% of the mobile subscribers will be in Asia so we would plan to sign
Blackberry’s contract into highly populated China and Indian cell phone market. This way, we can
place more Blackberry’s advertisements in Asian entertainment (i.e. stars holding the blackberry in

movies, TV dramas, Game shows etc) while also targeting the larger businesses in giving them the
option of mass supply of Blackberries for their employees at a fair rate.

   Pro: Large population, many businesses, can target both business and consumer

   Con: Lots of smart phones already in this market, technology is already more advanced, other
   competitors can also target same area.

                                                                                          MKTG 1102
                                                                                          David Wan
B) Sponsorships:
Another alternative for Blackberry is that Rim should attempt to get sponsors similar to the Motorola
approach. For example, Motorola has extended their contracts with the NFL (National Football
League) for 5 years. Therefore, Motorola will continue to be the NFL’s exclusive telecommunication
sponsorship. This means coaches from every team are using Motorola headsets which would be
shown on television, also each player is going to wear their uniforms which Motorola logs on.

For Rim, they need to find their own sponsorship to create positive exposure and enhance its image.
This would assist in creating recognition of RIM’s products and services. At the same time, enhancing
the image helps reach the target markets.

    Pro: Further expose image, can advertise in specific places, can advertise with sponsor in
    advertisements.

    Con: Risky as image could depend on sponsor, could be excluding part of target market if going
    with certain sponsors, have to find an available sponsor.

Solution:

Our solution for keeping the Blackberry ahead of the smart phone share will be to venture into the
consumer market.

Increasing competition and dwindling price points may make for a rough few months in the ultra
competitive smart phone market. Apple and RIM approach the smartphone marketplace from very
different perspectives. Apple's device is entertainment based and, sells to young people. RIM's
devices are communications based and have traditionally sold to business people in a higher age
bracket. There has been a lot of media assumption of a smart phone war between RIM and Apple, but
actually they target very distinct territories in a vastly segmented market and this where we believe
RIM can makes its move over and target the consumers. Rim has thrived in the business market as
many business professionals rely heavily on the Blackberry for everyday use, although RIM’s long-
term prospects will hinge on whether or not the Blackberry can makes its way successfully into the
consumer market. The BlackBerry must morph its brand from being a business-focused device to a
multi versatile product that is both efficient in business but can also provide entertainment for the
everyday consumer. The idea is to get people who intend to buy a smart phone for use other then
business to consider the Blackberry first beyond all others.

There are numerous ways in which RIM could enter the consumer market but we believe that the most
efficient ways would be to firstly strategically advertise in places of high traffic of where we believe
our target market would be and secondly to reduce the prices of the applications in App World
(Blackberry’s official application store) to match Apple’s Application Store. While Apple has built its
territory largely on the strength of free or cheap gimmicky applications, we assume RIM has a real
opportunity to market App World as a high-end retail for on-the-go users — allowing the company to
enhance its image as it creates a profitable new revenue stream with premium mobile applications.

Implementation Plan:

As a group, we have decided that RIM’s Blackberry is competing against many stiff competitors so
there is an opportunity to capture the competition’s clientele and influence them toward our brand.
Our aim is to focus on the younger age group.




                                                                                           MKTG 1102
                                                                                           David Wan
Our plan is as follows:

1) Strategic Advertising:
     Placing Blackberry advertisements in popular areas of our target market
               - Prime time television (90210, Hills, House, Vampire Diaries, CSI etc.)
               - Hockey Arenas/Sport Attractions
               - Concert Venues (putting advertisements on the back of tickets from Ticketmaster)
               - 2010 Olympic Games in Vancouver (use sponsors to advertise Blackberry, in
                   Olympic Venues and on Billboards)

2) Reducing prices:
       Reduce application fees for the Blackberry APs from $2.50 to similar or cheaper prices from
       the Apple iPhone. One of the strategies, in order to challenging with Apple to grab their
       consumer base is to improve Blackberry’s applications so they are entertaining and modern.
       We understand that iPhone applications contribute to a large part of their sales so RIM can
       take a lesson from this and replicate the success.

Plan B:



If the Plan to promote the blackberry into the consumer market further is not efficient then we would
redirect the company’s attention to penetrating other markets in India and China.


Target the emerging markets of India and China;
   In early 2009 there were over 400 million 3G subscribers worldwide despite the financial crisis.
   One of the largest emerging 3G markets is China, which hopes to benefit from huge investments
   in 3G network deployment. India is also emerging as a major market in Asia. It has been
   predicted that by 2010 more than 50%of all mobile phone subscribers in the world will be in Asia,
   up from a 35% share in 2000. In mid 2007, Asia had just over 39% of the world’s 2.8 billion mobile
   subscribers. Below is the main Asia mobile Operators (by subscribers) in December – 2007. So
   we feel there is an added opportunity here if Plan A proves unsuccessful.


             Company                       Main Markets                  Subscribers
                                                                         (in millions)
           China Mobile              China, Hong Kong, Pakistan       499.5 (August 2009)
           China Unicorn                        China                  140.4 (June 2009)
          Vodaphone Essar                     India, UK               302.6 (March 2009)


    Information care of Wikipedia




                                                                                          MKTG 1102
                                                                                          David Wan
References:

      http://blogs.zdnet.com/blackberry/?p=323

      http://www.pcworld.com/article/143118/blackberry_dominates_enterprise_but_iphone_user
       s_happier.html

      http://www.bloggingstocks.com/2009/04/02/will-rims-deep-dive-into-consumer-market-
       yield-treasure/

      http://macdailynews.com/index.php/weblog/comments/22610/

      http://reviews.cnet.com/best-smartphones/


      http://www.blackberry.com/select/get_the_facts/pdfs/vendor/OVUM_RIM_in_the_mobile_e
       nterprise_market.pdf#3


      http://lowendmac.com/inews/08inews/0404.html


      http://www.budde.com.au/brochures/content/2008_Asia_Client_brochure.pdf


      http://en.wikipedia.org/wiki/List_of_mobile_network_operators


      http://www40.statcan.gc.ca/l01/cst01/demo23a-eng.htm


      http://factfinder.census.gov/servlet/STTable?_bm=y&-r_name=ACS_2007_1YR_G00_S0101&-
       geo_id=01000US&-ds_name=ACS_2007_1YR_G00_&-state=st&-_lang=en&-redoLog=false




                                                                                 MKTG 1102
                                                                                 David Wan

								
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