Overview Emerged in the early 2000s as one of the first smartphones in the market, BlackBerry was widely used by companies for business purposes. Later on, it became a leader in the smartphone industry as people started to use it for personal purposes; leading BlackBerry to own nearly a quarter of the marketshare in the U.S. However, over the past 10 years, BlackBerry have not been able to keep up with rising competition from Apple, Google and Samsung. As a result, its marketshare makes up at a mere 1.5%, as reported in 2013. Its most recent phone, the BlackBerry 10, has not been successful, leading to hardware sales falling from 61 percent of total revenue to little more than one-third. Even though BlackBerry claims to provide more advanced operating system and more seamless user experience, it has not been able to regain consumers’ interest due to delayed release of new phone and lack of effective marketing communication. In addition, many companies nowadays have moved to a BYOD (Bring-Your-Own-Device) philosophy for employees, creating more competition for BlackBerry in its core market of the business sector. As a business-oriented company with a strong root in technology and security, BlackBerry has the opportunity to reposition itself in order to stay in the market and revive its success.
BlackBerry provides wireless hardware, software, and service worldwide. Its revenue breakdown is 49% for hardware, 46% for service, and 5% for software and other revenue (as reported in 2013).
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Swot Analysis STRENGTHS • Established brand name globally • High reputation for security and advanced technology • Great phone for business professionals that focus on maximizing productivity • Narrow target segments: tailor marketing strategies • Loyal user base • New board of management to redirect the company
opportunities • Existing needs for BlackBerry’s high security and advanced technology • Targeting niche market sectors that competitors have not tapped into • Positive outlook on market trends for smartphone, tablet, and software
weaknesses • Delayed release of new phone to keep up with competitors • Lack of effective marketing promotions • Decline in sales performance • Loss of consumers’ interest: BlackBerry is not perceived to be “cool” anymore
threats • Constant technological updates and massive marketing promotions from competitors • Saturated consumer market • Bring-Your-Own-Device policy becoming more popular in businesses
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Competitor Analysis APPLE’S iPHONE As the leader in the smartphone industry, Apple’s iPhone is BlackBerry’s biggest competitor. Having incredible carrier support and strong loyal consumer base, Apple currently has the largest marketshare of 41.6% in the U.S. Primarily position its iPhone as a lifestyle smartphone, Apple has recently been making its move in adapting its iPhone 5S for businesses.
SAMSUNG’S GALAXY Samsung has been on the rise to compete directly with Apple for the first place in the smartphone market with its Galaxy phone series. Currently holding 26.7% of the marketshare, Samsung is the second biggest smartphone manufacturer in the U.S. Its Galaxy phone is known for innovative features and design. Recently, Samsung focuses on developing more lifestyle features for users with its latest Galaxy S5.
HTC’S SMARTPHONE Currently the third largest smartphone maker in the world after Apple and Samsung, HTC accounts for 9.3% of the U.S. smartphone market. Its phones are powered by the Android and Windows phone operating systems. With its latest HTC One phone, the company has focused its strategy on appealing to the younger segment of smartphone users (age 18-34), who seek alternatives from mainstream smartphones such as iPhone and Galaxy.
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Competitor Analysis product attributes
company attributes
Attributes
iPhone 5S
BlackBerry Z30
HTC One (M8)
Galaxy S5
Attributes
iPhone 5S
BlackBerry Z30
HTC One (M8)
Galaxy S5
Battery Life (day)
2 (10 hrs stand-by)
4 (16 hrs stand-by)
3 (12 hrs stand-by)
5 (20 hrs stand-by)
Awareness
5
5
4
5
Camera
4
4
3
5
Brand Equity
5
2
3
4
Brand Loyalty
5
4
3
4
Industry Reputation
5
3
4
5
Marketshare
5 (41.6%)
2 (1.5%)
3 (9.3%)
4 (26.7%)
Total
77/90
72.5/90
70/90
79.5/90
Consumer Apps Design/ Display Durability
(8MP, 1080 HD)
(8MP, 1080 HD)
(Duo Camera)
(16MP, 1080 HD)
4
2
5
5
4
5
(900,000 apps) (130,000 apps) (4” Retina)
(5” AMOLED)
5 (Gorilla Glass) 5 (Gorilla Glass) 4 (16 or more)
(1 million apps)
(1 million apps)
5
5
(5” HD LC3)
(5” AMOLED)
5 (Gorilla Glass)
5 (Gorilla Glass)
5 (32 or more)
4 (16 or more)
Memory (GB)
3 (16, 32, 64)
Music
5 (iTunes)
Operating System
5 (iOS 7)
5 (BlackBerry
5 (Android 4.4)
5 (Android 4.4)
Price (full retail)
3 ($649.99)
5 ($499.99)
4 ($599.99)
4 ($599.99)
Professional Apps
4
5
3
3
Reliability (carrier)
5 (All)
4 (Verizon &
5 (All)
5 (All)
Security
4
5
4
4
Warranty (1 year)
4
4
5
4.5
4.5 (MediaSync) 4 (SyncManager) 3 (Memory Card) 10.2)
AT&T)
Note: rating system consists of a number scale from 1 (lowest/worst) to 5 (highest/best)
BlackBerry scores highest on product attributes that would greatly benefit business professionals, such as high security, strong operating system, great durability, long battery life, and numerous professional apps, proving that it is a great phone for the business sector. In addition, the integration of BlackBerry Balance with the BlackBerry Hub allows users to seperate personal applications and files from corporate data, and seamlessly switch between personal space and work space on the phone. This adds a great value to BlackBerry users who can use the phone for both professional and personal purposes, without worrying about protecting their data. On the other hand, BlackBerry scores rather low on brand equity, marketshare, and industry reputation, which indicates that the firm needs to implement promotion strategies that utilize its strong product attributes, in order to help them increase positive brand perception and sales performance.
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Current Positioning Since day 1, BlackBerry has always been known as the phone for business professionals, and it has stayed true until today. During the booming era of smartphones, BlackBerry also rolled out several phone models targeting the consumers; however, it has not been successful in the consumer market, with the most recent sales loss of the BlackBerry 10. Ever since, BlackBerry suffers from an identity loss and has not been able to find its differentiation against competitors such as Apple, Google and Samsung. Rather, it is trying to catch up with the newest technology that competitors have devised and claims to provide slightly better smartphone (such as the recent Z30). However, that simply is not enough to impress the consumers, who were already wowed by its competitors. In this everchanging market for technology, Blackberry failed to capitalize on timing in order to stay on top of the market.
The BlackBerry Z30
With the introduction of the BlackBerry Hub and BlackBerry Balance to help users easily switch between work mode and personal mode without breaching their data, it seems like BlackBerry’s current positioning is: a phone that offers a balance between professional and lifestyle features, allowing users to multitask and increase productivity. The positioning is strong; however, is it strong and different enough to beat other smartphone juggernaults like Apple and Samsung? In the business sector, which has been BlackBerry’s biggest territory for a while, Apple and Samsung have started to invade and take over, as more companies are allowing their employees to use their own devices at work. So consumers have already been using their current smartphones for both professional and personal purposes.
The BlackBerry’s newest operating system and user interface
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Repositioning BlackBerry strengths lie in its high security and efficient operating system that best support users in increasing productivity. BlackBerry needs to target more niche markets that would want and need to utilize its highly secured data storage and advanced technology to get their job done more quickly and easily - a target audience that will not only see Blackberry as a phone, but also an essential tool at work. Therefore, BlackBerry has the opportunity to appeal most to regulated spaces like healthcare, financial services, and even governments, where the demand for its technology still exists. That is why in our repositioning strategy for BlackBerry, we will focus on promotional activities in three specific sectors within its B2B business: healthcare, public safety, and government, making BlackBerry a specialized phone for each sector. This will be a rather bold move for BlackBerry to focus on niche markets, but at the same time, those are where BlackBerry has the most potential to make a strong presence and generate revenues.
Repositioning statement:
BlackBerry is a specialized business phone that has incredible data security and specialized business features to support business professionals maximize productivity at work, at the same time provide added values as a personal smartphone.
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Repositioning healthcare sector
government sector
public safety sector
With a recent investment in NantHealth, the accessibility of excessive data and computing possibilities to doctors is now a reality compatible with BlackBerry smartphones. Nant Health has installed a cloud based clinical operating system, which integrates approximately 16,000 medical devices based out of 250 hospitals that are now all connected by the Internet. The extensive data that is being collected and now easily accessible, is extremely private and maintaining this aspect is pivotal. Blackberry is known for their high security and reliability, which are key characteristics that will make this innovation a reality.
The BlackBerry solution for the Government sector, is all about the design created around agency or department to further encompass improvement in the tools and methods in order to increase productivity and response. BlackBerry is known for supporting performance without compromising security and privacy measures, which is implemented in their technology software. By focusing on faster response to disaster situations, immediate access to important content, and improved collaborations and efficiencies of process, BlackBerry can differeniate itself from the rest.
The BlackBerry solution for the Public Safety sector encompasses the importance of communication. Being able to access police data via BlackBerry smartphones, police officers can utilize this advantage while being on duty. The BlackBerry solution has created a more productive and reliable medium of communication that will ultimately benefit officers, agencies, and staff.
“BlackBerry solutions enable clinicians to collaborate effectively and access patient data (EMR) securely at the point of care, reducing costs and delivering better clinical outcomes for patients.” (from www.blackberry.com)
“The end-to-end BlackBerry® solution helps government workforces meet even the most rigorous expectations—all on a wireless platform that has receivedmore security accreditations globally than any other wireless solution.” (from www.blackberry.com)
“By using the BlackBerry smartphones in the field our officers have police data at their fingertips while meeting stringent requirements for security.” (from www.blackberry.com)
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Target Profile Since our repositioning strategy for BlackBerry focuses on the three sectors - healthcare, government, public safety, our primary target consumers are businesses in those three fields that can integrate the use of BlackBerry at work to increase productivity. Specifically, in the healthcare sector, we aim to target clinics and medical centers with the BlackBerry solution. Similarly, government agencies and public safety departments are the ideal consumers as we move further in this direction. Professionals working in these sectors all share the same desire for a device that allows them to access real-time data while on the go to increase productivity at work, at the same time, ensures their extremely confidential data are highly secured. The BlackBerry phone is an essential tool for them to get their work done more quickly and efficiently. While they are using their BlackBerry phone primarily for working purposes, at the end of the day, they can easily switch from work space to personal space for other use, assured that their work data are highly secured and seperated from personal data.
Meet Eric!
Meet aaron!
Meet connor!
As a primary care physician, Eric loves being able to access patients’ information on the fly through his BlackBerry phone, allowing him to make decision quicker and provide better patient care.
As a policeman, Aaron loves being outdoor and serve the community. He loves that his BlackBerry phone allows him to streamline workflow and complete tasks on the go, knowing that all highly sensitive data are kept secure.
As a government worker, Connor fully trusts his BlackBerry phone to access confidential data from anywhere, so that he can collect data, submit reports and perform inspections on the spot.
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Consumer Promotions To achieve the goal of increasing sales by 5% and marketshare by 10%, we will implement two types of consumer promotions to motivate the consumers to make purchase and boost short-term sales.
Premium
Direct sampling
Goal: Entice consumers to make purchase and enhance the company’s image, as well as reinforce brand loyalty.
Goal: • Expose BlackBerry products and solutions to targeted sectors. • Generate interest and increase consideration for using BlackBerry at the workplace
How: Provide a number of pre-installed apps that are industry specific for free with purchase of BlackBerry device. For instance, healthcare firm will receive healthcare applications that will assist its doctors and physicians with the workflow, collaboration, and electronic health record solutions at the point of care. This will add more beneficial values to the consumers at no extra cost, giving them an incentive to buy the BlackBerry device. Evaluation: • Compare sales outcome against goal • Rate efficiency of providing free apps within each sectors
How: Provide desinated companies within each sector with specialized product samples for a period of time. Currently, BlackBerry has successfully implemented its BlackBerry solution at the University of Pittsburgh Medical Center; therefore, other similar health centers could greatly benefit from direct sampling of the BlackBerry solution. At the end of the sampling period, we will evaluate whether or not those companies can become potential customers of BlackBerry. Evaluation: • Gather feedback on how the sampling has influence those companies’ bottom line • Identify if there is any sales increase after the implementation of direct sampling
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Trade Promotions BlackBerry’s resellers range from small to big enterprise reseller throughout the U.S., who serve as a very important liaison between BlackBerry corporate and its end consumers. It is key to keep them up-to-date with our new positioning direction and technology. Overall objectives: to inform current resellers of the change in direction and gain new distributors for BlackBerry.
the blackberry expo/training Goal: • To inform current resellers about BlackBerry’s new positioning and keep them upto-date with BlackBerry’s products • Generate interest of prospective BlackBerry’s resellers How: The BlackBerry expo is an all-day informal training that is open exclusively to BlackBerry’s current and prospective resellers. At the expo, resellers can attend keynote speakers and seminars to learn more about the new BlackBerry solutions for the three sectors, and ask questions about how they are applicable to each business. The expo will be led by BlackBerry’s senior management, technicians and sales representatives. Evaluation: • Evaluate sales figures after the expo to see whether it helps reinforce sales performance • Track number of new registered resellers
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Trade Promotions buy-back program Goal: • Minimize failure risk for resellers and motivate them to buy more inventory • Get better understanding of demand for BlackBerry in the three sectors How: Resellers have the opportunity to sell back their unsold inventory or swap old with new products. BlackBerry will buy back inventory at 70% of original price, making sure that resellers’ benefits are maximized. Evaluation: • Track number of buy-backs from each sector in relation to sales performance
BUY-BACK PROGRAM
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Trade Promotions trade shows Goal: Help resellers establish network with prospective buyers from each sector How: Trade shows are specific to industry and a great way to reach out directly to potential buyers. BlackBerry will help resellers participate in selected trade shows specifically for technology solutions in healthcare, public safety, and government industry, together with providing promotional and training resources to help them capture participants’ interests. Example of trade shows are as listed below: • The American Medical Group Association Annual Conference (healthcare) • The GovSec Conference & Expo (government) • The International Association of Chiefs of Police Annual Conference & Law Enforcement Education and Technology Expo (public safety) Evaluation: • Track number of prospective customers • Compare and analyze sales figures before and after the trade shows
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Sales Force Promotions The sales force plays an significant role in the success of BlackBerry, therefore it is also very important to inform the sales force of this change in direction and motivate them to perform strongly in order to boost BlackBerry’s sales and make a strong comeback in the market.
Blackberry sales meeting & retreat Goal: • Motivate BlackBerry’s sales force and reward outstanding performance • Increase sales performance by 20% How: BlackBerry corporate will send its sales employees to a sales meeting and retreat at the Ritz-Carlton Coconut Grove in Miami, Florida. During the sales meeting, the management board will inform the sales force of the company’s new direction, answer any questions, and reward outstanding performance at the banquet. Sales reps will also have the opportunity to relax and enjoy offerings from the Ritz-Carlton, as a gesture of appreciation from BlackBerry’s management team. Evaluation: • Track sales performance after the meeting
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Other Promotions keynote event Goal: • Inform the public about BlackBerry’s change in direction • Increase positive perception about the company How: BlackBerry will hold an event where its new CEO John Chen will publicly announce the new direction in which BlackBerry is progressing to and explain how the BlackBerry solutions will greatly benefit the healthcare, government and public safety sector. BlackBerry will invite the press and industry influencers to join this event, which will help creating buzz for BlackBerry. It is important to inform the public about BkackBerry’s new move in order to regain trust in positive perception about the company, which will help increase sales in the long run. Evaluation: • Track media impressions and public opinions about BlackBerry after the event • Measure BlackBerry’s stock performance after the event
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Budget Summary Consumer Promotions Premium $80,000 Healthcare apps $40,000 Government apps $20,000 Public Safety apps $20,000 Direct Sampling $140,000 Healthcare sample $60,000 Public Safety sample $40,000 Government sample $40,000 Sales Force Promotions Sales meeting & retreat trip $170,000 Hotel accommodation $130,000 Airfare $30,000 Performance reward $10,000 Trade Promotions BlackBerry Expo $65,000 Buy-back program $200,000 Trade shows $55,000 Other Promotions Keynote Event $40,000 TOTAL $750,000
blackberry’s promotion budget
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