rim vs. apple presentation

VS

A Battle of Brand Dominance

Presented By

Briana Cowan

Mike Luo

“Munny” Berar

Parker McMullin

Raminque Sahota

Sarah Henderson

Susan Kelly

Mosaic Marketing Corp.

Outline of the Research

The Problem

Market Identification

SWOT Analysis

Key findings from Research

Outline of the Solution

Alternative 1

Alternative 2

Alternative 3

Solution and Implementation Plan

Course Concepts

The Problem at Hand

How can RIM reassert themselves as the greatest innovator ?

Problem at hand goes far beyond blackberry versus iPhone products.

SWOT Analysis

Strengths

1.Blackberry brand and reputation

2. Blackberry Enterprise Server (BES)

3. Innovative and strong foundation of technological assets

4. Dominance in the business Sector

5. RIM has its own wireless transmission network/equipment

Weakness

1.Limited Product breadth

2.Market Target is limited

3.Network is not as strong as competitors

Opportunity

1. Develop new target market (eg. Younger generation)

2. Globalization the target markets

3. Develop new products to deepen the market penetration

4. Possibility to establish RIM’s own Mobile wireless network (like AT&T)

Threats

1. RIM’s encrypted email system may be banned in certain countries

2. Apple offering business-look cell phones can result in significant reduced sales of Blackberry

3. Competitors developing similar application/interface that takes away RIM’s software advantages.

4. Competitors reverse engineering RIM’s innovative products.

Current Target Market

SEGMENT BREAK DOWN Men and women with

high incomes Tech savvy individuals Organized individuals Time constraints Innovators

Age: Early 20s – Late 40s

POPULATION

Population

Other AgeTarget Age Unquali-fiedTarget Age Qualified

Numbers and Details of Research

SMARTPHONE MARKET SHARE APPLE VS. RIM

40.8

19.5

10.7

4.3

4.2

20.5

Nokia

RIM

Apple

HTC

Samsung

Other

Revenue

Apple 4.2 Bil-lion

RIM 1.3 Billion

Other Findings and Research

Facts on sales

Blackberry Curve overtook Apple’s iPhone RIM’s share of smartphone market

boosted from 15% to nearly 50% in the first quarter of 2009 (May 2009)

RIM’s current mission statement: Create a digital community to serve the

needs of small business professionals, giving them the insight they need to maximize the benefits of Smartphones.

Alternative SolutionNumber One

Build up RIM’s Brand image

Re-design/ improve the Logo

Physical Expansion

Improve Company Website

Advantages

More logos and slogan helps brand recognition

Employs more skilled and innovated workers

Attracts more Generation Y and Tweens to the website

Disadvantages

May confuse existing customers

May cause unrest to the brand loyalty

Increased in administrative cost

Alternative SolutionNumber Two

Target New Market

DIVERSITY

Create Blackberry that suits various segment groups

Increasing brand awareness

Colors Designs Environmental

friendly

Website renovation Expand App store Support Focus on Media such

as Facebook/GPS

Campaign for Brand Awareness

DESIGN CONTEST

RIM website promotes a event for helping Blackberry with a new design from participants.

With incentives

PROS AND CONS

Disadvantages:▪ Drifted away Professional

outfit▪ Developing customized

product could be risky▪ Possible threat of

competitive retaliation (reverse engineering)

Advantages:▪ Increased Brand

Awareness▪ Word of Mouth

advertisement▪ Increased Target market

The Chosen Solution

Alternative Three: Increasing the Breadth of RIM’s Strategic Product Lines

Developing a new RIM laptop Blackberry - Work

Blackberry Work

Diversifying of RIM’s Strategic Product lines

Advantage Create hype for the product and company

boost the sales of blackberry

Captures new market and increase brand awareness

Reduced introduction stage of product life cycle

Disadvantages Initial investment can be costly

Takes time to develop a completely new product

Can be risky when it’s launched against an established competitor.

Target Segment

Existing Blackberry users▪ Business professionals ▪ Mainly Generation X and portion generation Ys▪ Help saturating the entire business market which

Blackberry smartphones had unable to monopolize

Underdeveloped Market▪ Other technology reliance individuals (eg.

Students)▪ Most of the Generation Ys and Tweens▪ Targeting the market which the Professional images

of Blackberry has not penetrated to.

Implementation Plan

Step-by-Step Implementation

Announce Blackberry Laptop to PublicBegin Concept Testing through Surveys and

other Media.Use this information to begin long development processHype Begins to Build (implement Alternative 2 solution to capture new

markets)Begin test marketing in select cities with limited supply.Use feedback and Launch Blackberry

Work to the public

Financials and Pricing

Creating a new department and employee expense = 22million Human resource 17 million Equipment and material cost 5million

Marketing material expense = 5.5 million Overhead expenses = 1.2million  Research cost to develop new Software for the laptop = 4

million ----------------------------------------------------------- Total Cost 32.7 million for 2 years

Price will be in the high-end range in the initial stage of launching with limited supply and distribution (comparable to Macbooks)

May reduce its price as it reaches maturity and when new products come out

Major Course Concepts

Developing market strategies

Segmentation, targeting and positioning

Market mix

Works Cited

Cnet news. Lance Whitney. BlackBerry Curve outsells the iPhone 3G. Last viewed October 21, 2009

http://news.cnet.comWikie-Invest. Last viewed October 18, 2009

http://www.wikinvest.com/Intomobile. Will Park. Smartphone gains boost Apple and RIM at Nokia’s expense.

Last viewed October 20, 2009http://www.intomobile.com

Research in Motion. Investor – Research in Motion. Last viewed October 20, 2009http://www.rim.com/

Rim Case Study. Last viewed October 21, 2009.http://rimcase.blogspot.com/

Telecom.com. James Middleton. Apple, RIM poised to lead smartphone market. Last viewed October 18, 2009.http://www.telecoms.com

TechGeer.com. Tara Marriot. Blackberry VS iPhone: The Browse Wars. Last viewed October 19, 2009.http://techgeer.com/

Thank you for listening

Any Questions?