blackberry market strategy

8/11/2019 Blackberry market strategy

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BLACKBERRY

BY-

MITUSHA KUMARI

PRIYADARSHINI KUMARIPUJA KUMARI

VARSHA AMBASTA



Mobile Phone Sector in India

India is one of the fastest growing markets for the mobile industry.

India witnessed sales of 69 million handsets, doubling from the32million mark reached in last year . (Source: The Times of India Jan‟13)

India added close to 20 million cell-phone subscribers in secondquarter 2012, taking the total to close to 185 million. (Source: Telecom

Regulatory Authority of India) Major players in India:

• Nokia

• Sony Ericsson

• Motorola

• Reliance• Tata Indicom

• Samsung

• LG



Smart phone Sector in India

What is a „Smartphone‟?

Mobile +Personal Computer=Smartphone

• 2006 – IDC‟s Multi-Client study and survey of Smartphonesubscribers across five countries revealed:

o Top global brands are in demand not only in developed countries,

but also in emerging countries like India and China.o The relative influence of brand on product choice suggested that

many consumers seek out global brands and the prestige that theycarry.

o High-end products like the iPhone , BlackBerry, etc. do well becausethey show off how wealthy and successful an individual is.

o Users tend to be loyal to the Smart phone brands they carry.

o 69% of respondents in India are likely to recommend theirSmartphone brand to others. (Source : IDC Survey)

• 2009 - Worldwide mobile sales declined by 6%, but Smartphonescontinued to rise with an escalating growth of 27%.



Major Smartphone Brands inIndia• Nokia Corporation

• Apple Inc.

• BenQ-Siemens

• HTC

• LG Mobile

• Mitsubishi

• Motorola

• Panasonic

• Philips

• Research In Motion (RIM)

• Samsung • Siemens

• Sony Ericsson

• Toshiba



Situation Analysis

The leading Smartphone manufacturestogether share more than 75% of theSmartphone market in India.

25 % is shared by smaller players andShanzhai manufactures, whose presence issignificant in this region.

More than 5% of the phones sold areSmartphones.



APPLE

Apple iPhone is a revolutionary mobile device One of the most hyped devices in history

o Complete web experience, wi –fi

o Creative appso iTunes marketplace

o Slick UI, Touch screen



MOTOROLA

Motorola Smartphones are mainly focussed ondata communication and mobile entertainment

features with its new range that includes the Aura,A1600andWXseries.

SONY ERICSSON

2001 –SonyEricsson enters the Indian market

Introduced affordable Smartphones in themarket such as hi-tech multimedia features,camera phones, design phones, musicphones, and web and email phones.



Company profile

Name Research In Motion,BlackBerry

Industries served equipment Telecommunications

Geographic areas served Worldwide

Headquarters Canada

Current CEO Thorsten Heins

Revenue $ 18.435 billion (2012)

Profit $ 1.164 billion (2012)

Employees 12,700 (2013)

Main Competitors Apple Inc., Google Inc., Nokia OYJ,Samsung Electronics Co., Ltd.



Blackberry- The Brand

BlackBerry is a line of wireless handheld devices developed by theCanadian company, Research In Motion (RIM).

1999 – Introduced as a two way pager.

2002 - The more commonly known Smart Phone BlackBerry was

released. The BlackBerry Smart Phone supports the following features:

• Push e-mail

• Mobile telephone

• Instant messaging features: BlackBerry Messenger (BBM)

• Text messaging

• Internet faxing

• Web browsing

• Multi-touch interface

• Other wireless information services



BlackBerry first made headway in the marketplace by concentrating on e-mail.

BlackBerrys can message each other using

the PIN directly or by using the BlackberryMessenger application.

BlackBerry holds the world's second highestmarket share in the smart phone platform.

The consumer BlackBerry Internet Service isavailable in 91 countries worldwide on over500 mobile service operators using variousmobile technologies.



Target Market Segment

25+ years

Both males and females

SEC A1 and A2

Tier I cities

Cosmopolitan Professionals

Attracts attention from diverse range of businesses including, butnot limited to:

o Finance

o Legal

o Professional services,

o Retail

o Construction

o Manufacturing



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Problem Identified in India

The Indian government is likely to temporarilystop BlackBerry services in the country asResearch In Motion (RIM), the maker of theBlackBerry smartphones is not able to addressNew Delhi's security concerns.

Indian security officials are willing to cease itsoperations in the country as it failed to

adequately address security concerns overBlackBerry's encrypted data that can bemisused by terror groups and cannot bemonitored.



Cont…

India, however, is an important market forBlackBerry. According to a Facebook group for

its users in India, the country has some400,000 of them, and BlackBerry haspositioned itself nicely with models priced wellfor both the entry-level consumer and high-endbusiness user.



Problem Details

RIM has so far said it cannot unscramble data of itsenterprise customers because it does not possess the keysneeded to do so.

BlackBerry security is based on a system where thecustomers create their own key and the company neither has

a master key nor any "back door" to allow RIM or any thirdparty to gain access to crucial corporate data.

The encrypted traffic is delivered through its networkoperating centres, based mostly in Canada, though corporateclients can choose to host their BlackBerry EnterpriseServers (BES) elsewhere.

RIM can only identify the senders and recipients of emailsand log items such as when they were sent or whether theyhad attachments.



Solutions so far

After several meetings, RIM proposed it couldshare the IP address of BlackBerry EnterpriseServers, and the PIN and IMEI numbers ofBlackBerry mobiles. India says that is not enough

because it doesn't provide access to mails. The smartphone maker has assured Indian

authorities it will provide manual access to itsinstant messenger services which bypasses theBlackBerry Enterprise Server.

Company has assured for developing a tool thatwill help to provide fully automated realtimeaccess to Messenger services by November thisyear.



Impact of a possible ban

India has one mobile connection for every twoof its 1.2 billion people and adds 16 millionnew subscribers a month.

A shutdown would affect about 1 million usersin India out of a total 41 million BlackBerryusers worldwide, allowing them to use thedevices only for calls and Internet browsing.

Analysts say a ban would definitely impactsales of BlackBerry services in the country.



A possible need for BlackBerryrevival? The uncertainty created results in

push a growing number of its telecom partners, businesscustomers and

consumers to abandon the platform.

The consequences is the nine tenths of reality and the customer

and supplier confidence continues to fall even if it doesn‟t matterhow much cash they have on the balance sheet

Also resulted in quarterly loss of close to $1 billion and slash morethan a third of its workforce.

Blackberry still has a substantial subscriber base – 72 million usersglobally at the end of June, though that did decline from 76 million

three months earlier. The company has struggled ever since Apple Inc‟s iPhone and

Samsung Electronics Co Ltd‟s Galaxy phones, using Google‟s Android software, grew to dominate a market that was previouslyBlackBerry‟s and had once made it highly profitable.



Strategies

Building strong relation with the suppliers Blackberry is company which relies on outsourcing, so its

very important to have a good relations with the suppliers. If the supplier's confidence fall, it will have a negative

impact on the market share.

Developing a tool to help provide fully automatedaccess, for solving the mails server problem.



Focusing on the customized and standardproduct to facilitates the customer satisfaction.

Companies must find ways to differentiate their brand

beyond the physical product. In addition to focus on image,companies must also offer exclusive, value-addedproducts/services with their device. One great example is Apple‟s App Store, with exclusive free and paid content for

the iPhone. BlackBerry did a great job with BlackBerryMessenger, creating exclusively and community around avalue-added service. There needs to be more innovationbuilding upon what already exists



Innovation/New Products

At the same time, BlackBerry can launch newdevices to help target the new segment. TheBlackBerry Torch is a step in the right direction.They can also launch other product lines to

compliment it, such as the recently announcedBlackBerry Play Book tablet. These devices helpbridge the gap, giving the core BlackBerry userthe business functionality they need, while alsooffering value-added social components, that areproduct qualifiers these days, to attract newcustomers.

Have a wider product line tied together with acommon operating system which allows

developers to focus on content for BlackBerry



Strengthen the brand identity

Maintain the strong position in the marketprotecting the interests of the target customer.

Keep improving the devices, but there is no need

to re-design all devices based on the iPhone and Android.

BlackBerry needs to encourage content to bedeveloped for their own BlackBerry App World



Direct Marketing

Set up kiosks in the technical fairs and workshopsto display the Blackberry new features andarrivals

and even create a database of the attendees.Reach the prospects on the database through

various direct marketing channels such as DirectMailers, Catalogues, Direct Response TV

commercials, Direct Response Print ads, etc.



Social Media

Communities and forums on social networkingsites like Orkut, Twitter & Facebook.

Invite the users to suggest adds through it.



Public Relations and Publicity

Engage a youth icon, Ranbir Kapoor, as theSpokesperson and endorser for the brand. Thetarget audience would be able to relate to a

young endorser and this would leverage thepositioning of the brand.

RIMs young officials would also serve as thespokesperson for the brand.



Action Plan

Beleaguered gadget maker BlackBerry said that it‟s signed atentative agreement to be purchased by a group led byCanadian holding company Fairfax Financial in a $4.7 billiondeal.

The transaction, in which BlackBerry would become a private

company, represents a turning point for a once high-flyingtech giant that played a key role in the mobile-devicerevolution only to be eclipsed by Apple and Google.

Fairfax, which already owns 10% of BlackBerry, will pay $9per share for the company, about 3% more than its closingprice.

BlackBerry still has the flexibility to accept a better offer in amanoeuvre known as a “go-shop” process, but it‟s hard toimagine that a sweeter overture will be forthcoming.



BlackBerry announced that it would cut 4,500 jobs asit prepares to absorb nearly $1 billion in losses relatedto unsold-device inventory, sending its stock priceplunging by 20%.

Since last month, BlackBerry‟s “special committee”has been evaluating strategic alternatives (like a sale)for the company.

BlackBerry and Fairfax are expected to complete theirdue diligence by Nov. 4.

By going private, BlackBerry (until recently known asResearch in Motion) can continue to attempt aturnaround without the Wall Street pressure thataccompanies public companies

At th d



At the end

RIM need to:

Diversification of the product

Product Depth

Market Development

Aggressive Promotion

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