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Team Zebra – Marketing Case Analysis 1

                       Blackberry’s Rise in Brand Power
         The Dueling Marketing Strategies of RIM vs. Apple

Team Name:                               Team Zebra

Team Members:                            Tyler Blair
                                         Sandeep Rakkar
                                         Edith Szikinger
                                         Zack Li
                                         Ajay Randhawa
                                         Kevin Nguyen
                                         Nellie Zheng

Set:                                     1K
Course #:                                MKTG 1102
Instructor:                              Jeff Collier
Presentation Date:                       Tuesday October 20, 2009
Team Zebra – Marketing Case Analysis 1


Research In Motion, creators of the Blackberry product line are aware that in-order to maintain their
success, the company will have to continue to compete over the dominance in the market place for
mobile Smartphones.


What new strategies can RIM come up with in-order to continue growing their market share, both in
North America and worldwide?

Key Findings

Product: Inter@ctive Pager, Java Based Models (5000/6000 series), Colour Models (7000 series), Sure-
Type Models (7100 series)- Charm, Consumer Models (8000/9000 series)- Electron-Pearl-Pearl Flip-

Blackberry Storm

Features include: Wi-Fi® Enabled, 1 3.2 MP Digital Camera, Video Camera Capabilities, Supports
BlackBerry App World, Bluetooth Enabled, Multimedia Player, SMS/MMS, Wireless Email, Organizer ,
Browser, Phone, Corporate Data Access

Size and Weight: Height is 112.5 mm, Width is 62 mm, Depth is 13.9 mm and the weight of the
Blackberry Storm is 155g

Display: High resolution 480 x 360 pixel color display, 3.25” (diagonally measured), Transmissive TFT
LCD, Supports over 65,000 colors, Dynamic hardware brightness

Data Input and Navigation: Sure-Press touch screen, portrait Sure-Type and multi-tap, landscape
QWERTY, dedicated keys: Send, End, Menu, Escape, Left/right convenience keys, 2X Volume/Zoom,
Power/Lock, Mute (Play/Pause)
Team Zebra – Marketing Case Analysis 1

Voice Input & Output: 3.5mm stereo headset capable, integrated speaker and microphone, hands-free
headset capable, Bluetooth headset capable, integrated hands-free speakerphone

Media Player : video format support, MPEG4 H.263, MPEG4 Part 2 Simple Profile, H.264, WMV Audio
format support: MP3, AAC, AAC+, eAAC+, WMA, WMA ProPlus

Ringtones and Notifications: tone, vibrate, on-screen or LED indicator, user configurable notification
options, 32 polyphonic ringtones – MIDI, MP3

GPS & BlackBerry Maps: includes BlackBerry maps, stand-alone and assisted GPS

Security: password protection, screen lock

Memory: 1 GB Embedded Multimedia Card, 128 MB Flash memory

Battery and Battery Life: Standby time is 15 days (356 hours), talk time is 6 hours, battery type 1400
mAhr removable/rechargeable cryptographic Lithium cell

Price: The price of the Blackberry storm in Canada is $599.99. Other Blackberry products range from
$429 - $649.00 on a 0 term contract. The Storm on a: 1 year contract is $549.99, 2 year contract is
$499.99, 3 year contract is $99.99. Monthly package rates vary depending on the carrier and the
services used by the consumer.

Place: RIM headquarters is located in Waterloo, Ontario Canada. There is currently one Blackberry store
in Farmington Hills, Michigan. Blackberry products can be purchased from electronic retailers and
through the following carriers:

Airtel, Vodaphone, T-mobile, O2 Wireless, Nextel, Telus, Southern LINC, Verizon, Sprint, Alltel, Bell,
AT&T, Rogers, Telefonica Moviles, US Cellular, NTT Docomo, Orange, TelCel, TIM, Essar, Mobily,
Mobilink, MTN, Ufone, Proximus, Bouygues, Telecom, SFR, LUXGSM, Telenor, Turkcell, Sure Mobile,
BeeLine, Mobistar, British telecom, Lusacell, Etisalat.

Products are sold in over 135 countries worldwide.

Promotion: Service providers often have term contract promotions with Blackberry products.
Consumers are encouraged to usually sign a one, two or three year contract and in return they receive a
discount on the Blackberry. Verizon Wireless is offering a “Buy one get one free” promotion in the US.
Promotional Videos are available at to show the features and designs of
different Blackberry models.
Team Zebra – Marketing Case Analysis 1

Assumptions: Prices for the Storm and other models in the key findings are from the Telus website, it is
assumed that other carriers across Canada have similar prices.


         Blackberry is a establish name around the world
         Most customers are loyal to Blackberry
         Most common used PDA by business executives
         Their products are very well established
         Blackberry’s are available in over 130 countries


         The phones only appeal to business people
         There is not a lot of advertisement in North America for blackberry, it is more word of mouth
         All phones are similar to a certain extent


         Expand their products to countries who don’t have their phones
         Try to make different models that appeal to not just business people but to the average person
         Bring out more applications for the phones
         More advertising to let people know about different features on the phones


         Many different competitors in different countries
         Some consumers are loyal to one brand, so if competitors brings out a PDA that appeals to the
          consumer they wont consider blackberry
         People are coming out with knock off’s ( The blueberry)

Competitive Analysis
Current Competitors
Nokia: Currently as the largest share of the market, selling phones in 125 regions worldwide.
Team Zebra – Marketing Case Analysis 1

        64% share in Europe, the Middle East and Africa
        Global sales went from 72% in 2006 to 50.3%,
                o Nokia N97 ($599.99)
                         Released June 9, 2009
                         Reported sold two million in 3 months
                         resistive Touch screen + qwerty keyboard
                         Sold to 75 countries
                o Nokia X6
                         Expected release November 12,2009
                         Music centered

Palm Inc.: Originally manufacturing PDA’s, has been selling Smartphone’s since 2005
       Announced that they will no longer be manufacturing PDAs
       Currently only has 3% of market share
                 o Palm Pre($149.95 CDN on 3 year contract )
                         Released June 6, 2009 (Sprint Nextel)
                                       August 27, 2009 (Bell Mobility)
                         Capacitive multi-touch screen + qwerty keyboard
                                 Available in Canada USA and Europe
                 o Palm Pixi
                         Announced September 8, 2009
                         Capacitive multi-touch screen + qwerty keyboard
                 o Palm Treo Pro
HTC: manufactures Microsoft Windows Portable and Google-Android products
       Currently has 2.8% of market share
                 o HTC Magic / T-Mobile myTouch 3G (599.99)
                         Released June 2, 2009 (Canada)
                                       July 28, 2009 (United States)
                         Capacitive touch screen+ trackball
                         Available in Spain, Taiwan, USA, Singapore, Hong Kong, Canada,
                 o HTC Hero / T-Mobile G2 Touch
                         Released October 11, 2009
                         Capacitive multi-touch screen
                         First android based device to Support Adobe Flash

Apple: RIM’s fastest growing competitor. Very well know for the iPod product line. Started selling the
original iPhone in the summer of 2007
Team Zebra – Marketing Case Analysis 1

       Now holds 13.7% of the global market share, 13.6% in Europe, the Middle East and Africa and
       23% in North America

                 o Apple iPhone 3G / 3GS ($599)
                           Released 3G: July 11, 2008
                                      3GS: June 19, 2009
                         Capacitive Multi-touch screen
                         Now in handheld gaming market
                         Largest Apps store

Global Market Share / Sales
  Other (Palm
 WebOS), 3.30%   Global Smartphone Sales by Operating
                           System Q2 2009
    Android, 2.80%
 Windows Mobile,
       9%                                                          Nokia Symbian
                                                                   RIM BlackBerry
                   iPhone,                                         Apple iPhone
                   13.70%           Nokia Symbian ,                Microsoft Windows Mobile
                         RIM                                       Google Android
                        20.90%                                     Other (Palm WebOS)
Team Zebra – Marketing Case Analysis 1


Target Market

         In the past BlackBerry had generally targeted the professional world. These people would most
likely use the Blackberry for email and other business related subjects that other Smartphone’s cant do
         Number of employees for Business, finance, administrative, and Management positions
                 Canada:         3,757,200
                 USA:            12,288,170
                 Total in NA:    16,045,370

        With the newest BlackBerry on the market, the Storm, RIM appears to now be targeting the
general populace rather than just the business professionals. As the Storm, and soon storm2, is more
than just business phone, it would appeal to high school students and young adults
Team Zebra – Marketing Case Analysis 1



Alternative #1

Based on the rapid growing demand of the consumers, Blackberry develop new product to enlarge its
market share and increase its revenues.


-Release of new product can catch consumers’ eyes on the company

- Opportunity to fix up the bugs of old ones and re-brand business

- Open new market through promoting its new products

-Innovation gives consumers good impression on the company and lead to the development of every
department in the company. (Potential chances to seek partners, etc)


- cost of developing new product

-cost of advertisement

-Tend to make the company focus on the new product whereas neglects old ones

-Competition between new product and old ones

Alternative #2

Increase Market Share in other developing countries and penetrating into new markets

Developing countries like China and India are to be discovered by RIM

These countries have high GDP growth rate and new Industrial development

Growing goods market, specifically phones


    -   Increased sales
    -   Opening doors to new markets
Team Zebra – Marketing Case Analysis 1


   -   Large amount of investment needed to make impact in new markets
   -   Risks in terms of consumer acceptability
   -   Government Regulations may limit access to markets or prevent profitability

Alternative #3

      Development a marketing strategy to increase it’s visibility and popularity in china /asia

      Innovate new function for daily business professions.

      Add new function or provide a platform for customer to interact or social networking through

      Add video/voice recording function

      Develop new clients in Asia market or gain more market share in china

      Improve the external design of blackberry serious—lighter ,thinner ,fancier


      Integrated All-In-One Device – These days the BlackBerry is a phone, email, sms, organizer,
       address book, arcade, media player, picture taker, navigator, chat messenger, calculator, alarm
       clock, best friend and more all-in-one device

      GPS navigation system

      Longer standby hours

      USB Ports :Micro USB port allows charging and data synchronization of the device with a USB
       "A" to Micro-USB "B" cable

      Expandable memory :MicroSD located under battery door cover (up to 16 GB)

      Enhanced Bluetooth

      Accessibility to different network

Software Advantages:

      View attachments You can open some of the most popular documents and graphic attachments
       even when you are on the go. That includes JPEG, Adobe PDF, Microsoft Word, Microsoft Excel
       and Microsoft PowerPoint Files.5
Team Zebra – Marketing Case Analysis 1

      Edit Microsoft Word, Microsoft Excel and Microsoft PowerPoint files Enjoy the flexibility of
       working on most Microsoft Word or Microsoft Excel and Microsoft PowerPoint Files from just
       about anywhere. You will also enjoy many of the same features you do on your computer - copy
       and paste, change font sizes and colors, adjust bullets and numbering, and more.


      Less popular in comparison to iphone

      Less flexibility of apps

      Speed of internet access is much slower than iphone

      There’s no multi-touch function on blackberry

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