BRAND MANAGEMENT

BlackBerry Brand Strategy

Presented By -Shankit Agarwal Roll Number -2011176

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INTRODUCTION TO THE BRAND

BlackBerry is a line of smartphone devices developed and designed by Research In Motion (RIM). The first BlackBerry smartphone was released in 1999.The latest BlackBerry 7 devices were announced in the Fall of 2010. BlackBerry devices are smartphones, which are designed to function as personal digital assistants, portable media players, internet browsers, gaming devices, cameras and much more. They are primarily known for their ability to send and receive (push) email and instant messages while maintaining a high level of security through on-device message encryption. BlackBerry devices support a large variety of instant messaging features, with the most popular being the proprietary BlackBerry Messenger service. BlackBerry accounts for 3% of mobile device sales worldwide in 2011, making its manufacturer RIM the sixth most popular device maker (25% of mobile device sales are smartphones). The consumer BlackBerry Internet Service is available in 91 countries worldwide on over 500 mobile service operators using various mobile technologies. As of October 2011, there were seventy million subscribers worldwide to BlackBerry. At present the Caribbean and Latin America, have the highest penetrations of BlackBerry smartphones worldwide with up to about 45 per cent in the region having a RIM device. Modern GSM-based BlackBerry handhelds incorporate an ARM 7, 9 or ARM 11 processor, while older BlackBerry 950 and 957 handhelds used Intel 80386 processors. The latest BlackBerry models called "Torch" (Torch 9850/9860, Torch 9810, and Bold 9900/9930) have a 1.2 GHzMSM8255 Snapdragon processor, 768 MB system memory, and 8 GB of onboard storage. All BlackBerry smartphones after OS 5 support up to 32 GB microSD cards. The first BlackBerry device, the 850, was introduced in 1999 as a two-way pager in Munich, Germany. The name BlackBerry was coined by the marketing company Lexicon Branding. In 2003, the more commonly known smartphone BlackBerry was released, which supports push email, mobile telephone, text messaging, Internet faxing, Web browsing and other wireless information services. It is an example of a convergent device. The original BlackBerry devices, the RIM 850 and 857, used the DataTac network.
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BlackBerry first made headway in the marketplace by concentrating on email. RIM currently offers BlackBerry email service to non-BlackBerry devices, such as the Palm Treo, through its BlackBerry Connect software. The original BlackBerry device had a monochrome display, but all current models have color displays. All models, except for the Storm series and the all-touch Torch 9850/9860 had a built-in QWERTY keyboard, optimized for "thumbing", the use of only the thumbs to type. The Storm 1 and Storm 2 include a Sure Type keypad for typing. Originally, system navigation was achieved with the use of a scroll wheel mounted on the right side of phones prior to the 8700. The track wheel was replaced by the trackball with the introduction of the Pearl series which allowed for 4 way scrolling. The trackball was replaced by the optical track pad what people now use as thumb pad with the introduction of the Curve 8500 series. Models made to use iDEN networks such as Nexteland Mike also incorporate a pushto-talk (PTT) feature, similar to a two-way radio. The advanced encryption capabilities of the BlackBerry Smartphone make it eligible for use by government agencies and state forces alike. President Barack Obama's use The President of the United States, Barack Obama, became known for his dependence on a BlackBerry device for communication during his 2008 presidential campaign. Despite the security issues, he insisted on using it even after inauguration, becoming the first President of the United States to use mobile email. This was seen by some as akin to a "celebrity endorsement," which marketing experts have estimated to be worth between $25 and $50 million. Competition The primary competitors of the BlackBerry are smartphones running Android, the Apple iPhone and Windows Phone. BlackBerry has struggled to compete against Android and Apple and its market share has plunged in recent years, leading to speculation that it will be unable to survive as an independent business. However, it has managed to maintain significant positions in some markets.

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4P ANALYSIS

PRODUCT Blackberry has always had a large range of products to offer. Starting from the early pagers to the phones they have on offer today, they have always been providing a unique value proposition to their consumers. Blackberry has unique products which stand out in the market and deliver superior performance.

PRICE The price of Blackberry products is comparatively lesser volatile than that of the competition. Also, the brand does demand a premium for its product. The consumers do get the value for money put in by them and the pricing, according to me is popular.

PROMOTION The brand has always been an underdog when it comes to advertising. The company has a good web presence and the word of mouth publicity is good. Also, there have been print ads in the relevant media to target the right segment. Now, with an entry into a new segment i.e the youth, they have also resorted to TVCs.

PLACE Blackberry has clearly more presence in the urban market. As of now, there is still a lot of gap as far as the rural sectors are concerned. However, the brand is continually gaining ground in the lesser explored regions.

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BRANDING STRATEGY

The branding strategy of blackberry had always been to target the business executives. The brand used to stand as the perfect business phone and laid the very base for the launch of the business segment phones by other companies. RIM initially launched its products in the market keeping in mind that they would be aiming to capture the business segment and their promotional campaign was designed on the same lines. All the ad campaigns were also aligned to this goal of the organisation. An example is as under

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Thus, it is clearly seen that the initial consumer segment that the brand wanted to target was the business population. All the campaigns and resources of the companies were also used in a manner to achieve this segments attention. The major features that attracted the desired segment are Ease of use. Easy connectivity to the internet. On the go Business. Dependability. Instant Messaging (BBM).

Recently, the company has totally revamped its branding strategy. A very smart move to deal with the declining and competitive business segment was to start positioning the brand towards the youth as well. They understood that the brand needed to extend its purview and catch the consumers early. So, they have come up with new features and ad campaigns where it is clearly shown that the users of these phones are not restricted to business class but now are dominated by the younger generation.

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Understanding the limitations in one segment i.e only the business segment, RIM has, at the right moment made the necessary changes in the following parameters to attract a younger crowd Enhanced Music Features. Ad Campaigns (BB Boys, Join the conversation) Instant Messaging to stay connected (not only for business) On the go accessibility and email.

Blackberrys world-wide success in the smart-phone category may seem like a premier example of brand planning but it is really a story about Blackberrys ability to shift when necessary to meet the markets changing needs. A key element for RIMs success in building the Blackberry brand was being able to respond quickly to opportunities The key to the BlackBerry Brand is it does what it promises. BlackBerry wasnt afraid to let the customers own the brand. The basic cornerstones of the brand strategy of blackberry are as under 1. Emotional Selling Matters. That became the essence of the brand. Blackberry became a status symbol. A confirmation for Type As that their lifestyle works. A way to stay connected to work at all times. The brand became a symbol of the user. Emotion selling was the key. That is important to remember in B2B. Emotional selling should not be overlooked. The message to sales managers was: What does it say about your organization if you dont have one? What image does it give you? The marketing strategy was based on a status appeal. 2. Leverage the Channel. Blackberry was also careful to play the channel card well. They sold the devices through the larger carriers, AT&T, TMobile, Verizon, and let the carriers do the marketing. Carriers had the budgets, so Blackberry leveraged that. Blackberry put the brand almost entirely in the carriers hands for 5-6 years.

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3. Unify the Message Blackberry invested in the channel to provide sales training. They realized it was essential to teach retailers how to sell the product and carry out the brand message. 4. Shifting Brand Strategy Blackberrys shifting brand strategy reflected the change that happens in many technology and device companies who start off selling features, and then become aware of the brands heart and soul as the brand gains credibility. In the beginning, Blackberry marketed its features. Then the message shifted to become about Business Success. That campaign merged into one about Life Success. The value promise of BlackBerry became that its a tool to let you live your life. 5. Global Strategy Shifted Again As the device went global, Blackberry again learned and adapted to its market. In the UK, the message that was similar to the US message about gaining status by having a Blackberry worked well. However, is some European countries, the status image didnt resonate. The message became about taking control of time. Work and Life balance. In Asia, and Latin American the message was about efficient use of time. By featuring TV celebrities in ads talking about what their Blackberries meant to them, Blackberry sent the message that it was selling success. 6. Sell the Brand The shift in thinking from What does Blackberry do? to What does Blackberry do for me was a powerful introspection on the Brand for the Blackberry team.

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CONCLUSION

The company understood that to survive in the market, one small segment would not be enough and thus made the changes in the offering and the positioning so as to attract a completely new segment of the consumers. Now, we can see that the phones are well catering to the needs of the business executives as well as the students and the younger generation. The mindset that it was basically a phone for office going old people has changed drastically changed and the fear the company would phase out has been removed. It is constantly on a growing trend now with the acquisition of a completely new and large segment. Blackberry is one of the few companies that have successfully managed to bring about such a change in the brand positioning.

RECOMMENDATIONS

A few suggestions to the company are as under Not to forget the original consumer segment. Stronger consumer service. Easy to reach help lines. Innovative Products. Promotion in colleges and institutes.

Its never late to change or expand the brand strategy!

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