Reveal The Strategic Positioning of

Mark Xiao Melissa Hidalgo Nick Wright Wilson Woo

Objectives Does Blackberry have a distinctive market position? What are the benefits of a niche strategy? What Blackberry has done in the past 3 years to reposition itself in offering and appeal to attract students and leisure market users? To what extent is this strategy viable? What specific market opportunities are available for Blackberry going forward?

Background History
1984: founded by Canadian company Research in Motion 1999: came into the market as a two way pager 2002: Featured emails, text messaging, web browsing, voice communications and internet faxing functionality 2003: first colour model 2004: first packing wi-fi
http://rim.com

Background History
Aimed for business people QWERTY pad and scroll ball for easy access PTT: push to talk device aka walkie-talkie Easy connection worldwide Document viewing software allowing to easily view and edit all import files.

http://informationweek.com/blog/main/archives/2007/02/the_top_five_re.html;j...

Background History
Does Blackberry have a distinctive market position? Blackberry is still at the top of the markets Gold Standard for emailing Device management Security lock down convert downtime into productive time
http://press.rim.com/release.jsp?id=4696 http://www.mobilenewscwp.co.uk/2010/10/re-tales-deal-makers-111010

Background History
Market Position:
BlackBerry remains to be the most popular smartphone brand in the corporate world. In an effort to respond to customer needs, it continues to expand its customer base and diversify, moving from device to network services and widening its product line. It is also opening BlackBerry App World although it is still far behind the iPhone apps store. While all this expansion is a sign of a healthy brand, the latest push from Apple to make inroads in the corporate world continues to put pressure on BlackBerry. It is still the category leader, but it must continue to innovate and push its product line to compete with Apple. Recent conflicts with Middle Eastern governments (although now seemingly resolved) and India regarding concerns over BlackBerry s data encryption and security concerns may continue to pose challenges for the brand as it expands.

http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/bestglobal-brands-2010.aspx

Poter s 5 - Market Position

Not strong No power neither

The core product and target customer is different from each other, However it is changing

No power Porter 1985

Medium influence

PESTLE - Current Situation

The PESTLE analysis provides an insight in to the factors which will affect the industry which in turn will also affect the companies that operate within the industry (Johnson et al 2008). Due to time constrains we choose most relevant 2 factors which are Political and Social Political: The fairly friendly political climate helps (businessweek 2010) Social: Education, lifestyle, income levels have great impact on the demand patterns (RIM 2009)

SWOT 2006 RIM s strategic position

S
Strengths
Highly reliable Functionally Versatility & Uniqueness Continually delivering awardwinning products

Weaknesses
Scalability and global coverage The BlackBerry architecture High total cost of ownership

Opportunities

Threats

T
Differentiated offerings for several categories of mobile workers Extend the range of third-party BlackBerry devices Market Expansion especially in health and security. Tougher competition

Source: OVUM 2007

Advantages of a Niche Strategy

Explain rim s strategic marketing goals - Nicher to leader 1 Generates higher profit margins 2 Niche strategy could be more suitable (either cost leadership or differentiation strategy) However: The danger of being 'stuck in the middle Fail to achieve the approaches cause your organization gets stuck in the middle without a competitive advantage

Source: EBSCOhost

Niche strategy - merging economic and marketing theories

Famous Users

Instant Messaging on BlackBerry (IM)

A familiar user interface Availability status Contact access and management Notifications to tell you when you receive a new message Emoticons that help you express yourself

BlackBerry App World Launched Apr 2009

Encourages users to get the most out of their BlackBerry Wide range of Apps to suit use in personal life, work life or both

Updated Advertising Campaign

Move away from business focused advertising Focus on Leisure, Active & Younger

Targeting the Youth Market

Launched major online music campaign Live & Lost Campaign The Wanted using just a BlakBerry to get to a gig Using social media and uniting fans to help BlackBerry UK Facebook, BlackBerry and artists on BlackBerry Messenger (BBM), Flickr, Foursquare, Twitter and YouTube
New Media Age understands that almost 80% of its customers are now non-business users.

Launch of BlackBerry Torch

Targets Business & Non-Business More Fun More Edgy
Social Media Full Web Access Touch Screen BlackBerry Keyboard
http://www.trendhunter.com/trends/blackberry-torch-rollercoaster http://www.youtube.com/watch?v=GaMUaxHO8GY http://vimeo.com/14988032

Statistics
New Media Age understands that almost 80% of BlackBerry customers are now non-business users Adoption of BlackBerry in the youth segment thanks to the explosion of its BBM instant messaging service

Future Market Opportunities

Busi ess arket

Stude t & Leisure arket

Future Market Opportunities

STP Process:

Segmentation

Targeting

Positioning

What is market segmentation? Market segmentation in Division ofmarkets (B2C) & consumer a market into different groups of customers business markets (B2B) are with distinctly similar needs different and product/service requirement.

Segmentation

B2C geography) & Buyer based on Characteristic Geography, (decision making Demography, unit, purchasing Why using it? Psychography & strategy, Behaviour Organization gets to know type, relationship its customers better attitude to risk, B2B based on choice criteria & Provides guidelines for resource Organizational purchase situation) allocation Characteristic (demography, the strategy of the Helps focus organization economy & (http://www.12manage.com/description_market_segmentation.html)

(Baines et al 2009)

Targeting

Targeting involves the decision of selecting and serving number of different segments and determining the best marketing plan to reach the identified segments

Positioning involves the act of designing the company s offering and image (physical attributes) so that they occupy a meaningful and distinct competitive position in the target customers minds (communication)
(Baines et al 2009)

Positioning

Segmentation & Targeting for B2B Positioning for B2B Whats Next?
Identified target markets: 1) Health Sector Who? : NHS Why? : Emergency Budget 2010 announced by Chancellor George Osborne - cut public spending to save Target Segment
Health Sector NHS

18bn a year by 2014/15 NHS needs to make 20bn in savings over the next 4 years and moves to halve management costs are expected to lead to a 1bn-plus redundancy bill Corresponding Features

McElvoy, A. (20th October 2010) Osborne pulls off political coup by matching Labour s 20% cuts in Evening Standard

Segmentation Based On
Organizational characteristic demographic (size, industry) Economy (budget) Buyer characteristic Decision making unit

Key Characteristic
Reduce operational expenditure without compromising on the quality of professional service

Patient in your pocket

Patient in your pocket

MATERIAL

PATIENT PROFILE

PATIENT

ROOM CONTROL CENTRE

STAFF

Real time direct access

Sending data to database instantly with digital pen Track job, access email etc.

Provide more quality time with each patient & see more patients in a day

Emergency solution

http://www.youtube.com/watch?v=IACIB8Gv Nsk (accessed 7th November 2010)

Key Functions:
Ability to access & update patient records remotely and in real time Easy access appointment schedule Record data with digital pens, capture images & add digital dictation notes Reducing mistakes, missed information and the need for unnecessary revisits Utilize GPS to navigate visit locations & to locate emergency personnel Lone-worker functionality (allowing healthcare professionals to trigger an alarm if considered to be at risk) Staff messages & emergency messages in the event of an accident Tracking inventory (medical devices, product recalls & expiration dates)
http://www.mobilenewscwp.co.uk/(accessed 21st October 2010) http://www.telecoms.com/ (accessed 14th October 2010)

Portsmouth NHS Trust (case study) Cost saving (annual efficiency savings estimated in excess of 220,000 ) Time saving {Halved the amount of time spent by midwives on patient
administration (98 minutes to 48 minutes)} Fully HRG4 compliant (increase financial support from NHS)

Benefits

Protection against mislaid, damaged or stolen notes No change to current working practices

Other benefits Improve patient satisfaction and boost individual health worker productivity. Capture and share key patient data Protect lone workers Provide more visible healthcare services Progress healthcare provision more quickly.
http://uk.blackberry.com/(accessed 7th November 2010)

IS THAT ALL?

TELEMEDICINE Remote Consultation Diagnosis Collaboration

HOSPITALS Ambulance Visits Procedural Care Research Education Wellness Predictive & Preventative Medicine

HOME In-House Diagnosis Remote Consultation Medication Update Routine Tests Results Appointment Reminders Home Physiotherapy Monitoring

http://uk.blackberry.com/ (accessed 7th November 2010)

HEALTH CENTRES Community Out-reach Wellness Ease of Access Directed Treatment Minor Procedural Visits

TELEMEDICINE Remote Consultation Diagnosis Collaboration

PARTNER INSTITUTIONS STE AND NATIONAL DATABASES Linked Databases Design Discovery

MORE TO COME!

PROFESSIONAL SERVICES!

With the right marketing strategy BlackBerry Conclusion will always be your Solution

ThankYou

EXTRA INFORMATION
Positioning (student & leisure markets)

EXTRA INFORMATION
Positioning
The content from the campaign and information will be aggregated on the BlackBerry UK Facebook page, pulling in information from the BlackBerry and artists pages on BlackBerry has launched a major online campaign with music BlackBerry Messenger (BBM), Flickr, Foursquare, Twitter stars as part of its strategy to promote its products to a and YouTube. younger audience. The campaign aligns with BlackBerry s continued focus on a younger demographic. Its customer base is increasingly turning from being business led to consumer led. new media age understands that almost 80% of its customers are now non-business users. It s also seeing a huge adoption of BlackBerry in the youth segment thanks in part to the explosion of its BBM instant messaging service. Gavin Byrne, an analyst at Informa, said, BlackBerry s strategy has been to focus more on the consumer, which it has needed to in order to increase its reach. Last year, BlackBerry launched a smaller-scale version of the campaign using the artist Frankmusik and his MySpace The Live & Lost campaign sees artists, including UK hip-hop stars page. Due to the success of that, the mobile brand decided Professor Green and Example and band The Wanted, to widen the campaign to three artists and more sites to attempting to get from a secluded area of England to a gig extend its reach and appeal. in another part of the country in less than five days, armed The three artists are all promoting the campaign with teaser with just 20 and their BlackBerry with which to ask for content. Example will be the first to be dropped into a help from fans. remote area in Snowdonia this week. The artists will utilise social media channels to contact fans, who can help either by offering food, shelter or transport inThis story first appeared on newmediaage.co.uk return for private gigs at their houses or schools. BlackBerry enlists The Wanted to help reach young users Wed, 27 Oct 2010 | By Charlotte McEleny

EXTRA INFORMATION
Current position:
BlackBerry remains to be the most popular smartphone brand in the corporate world. In an effort to respond to customer needs, it continues to expand its customer base and diversify, moving from device to network services and widening its product line. It is also opening BlackBerry App World although it is still far behind the iPhone apps store. While all this expansion is a sign of a healthy brand, the latest push from Apple to make inroads in the corporate world continues to put pressure on BlackBerry. It is still the category leader, but it must continue to innovate and push its product line to compete with Apple. Recent conflicts with Middle Eastern governments (although now seemingly resolved) and India regarding concerns over BlackBerry s data encryption and security concerns may continue to pose challenges for the brand as it expands. http://www.interbrand.com/en/best-globalbrands/best-global-brands-2008/best-global-brands2010.aspx

http://www.superbrands.uk.com/b usinessresults

 Smartphones continue to have a higher proportion of males and a younger age of buyers (under 35), Apple are the brand that most closely resemble this profile

Telephone sales have seen quite a big boost over the latest 12 w/e period, with share of the market up to 16.7% compared to 13.8% for Q1. Sales in stores have suffered as a result, and are down from 52.6% to 48.7%. Physical stores still remain the number one channel for the purchasing of Smartphones and have actually picked up slightly from Q1 (+2.2ppts). The internet has declined in importance as a Smartphone retail channel over the same time period, from 29.8% to 25.1%. BlackBerry Smartphones are still much more likely to be sold over the telephone (36.8%) compared to the market average (24.2%), Apple iPhones are still reliant on sales through physical shops (61.9%) compared to the market average of 41.9%

Retail profile of sales volumes (%) 52 w/e 17th May 2009

Shops still account for the majority of sales (although many consumers will research online prior to purchase)
2.3% 4% 25.8% Over t e I ternet Over t e telephone In hop

Mail order Other 13.2% 54.7%

Customer Insights EMEA Customer Insights EMEA

 This is the monthly report from TNS for the Consumer segment (Contract and Prepay).  There are significant variances between Contract and Prepay: manufacturer / channel / carrier profiles, as well as significant variances across Prepay price bands  Nokia are still the largest manufacturer, at 25.3%. LG are the only other manufacturer to be showing any significant growth (up 1.7ppts to 11%).  BlackBerry have an 17.6% share of the Smartphone market which is a slight fall from last period (-2.1pts).

Future Market Opportunities

RIM BlackBerry seen as preferred smart phone of choice for business due to its secure e-mail server sales of smart phones will grow by 27%, to 177m units (2009) Competition is increasing with more smart phone entrants Standard Chartered Bank adopts iPhone as smart phone across the business

 http://www.youtube.com/watch?v=MCrRHGu bYDM http://www.youtube.com/watch?v=GaMUaxH O8GY http://www.youtube.com/watch?v=MXu8MO 7JkvA http://www.trendhunter.com/trends/blackber ry-torch-rollercoaster http://vimeo.com/14988032

EXTRA INFORMATION
Other opportunities (Professional services)
In Professional Service, did you know:

There are 21 million professional services workers in Western Europe and 4.4 million professional services firm (IDC) 84bn total turnover for the UK professional service sector (Annual Business Enquity, Office of National Statistics) The professional service sector employs 11.5% of all UK employees .. Contributes 8% of total UK output.....the largest single share (Professional Services Global Competitiveness Group report, 2009) (Altman Weill) 79% clients who say that poor service would make them change accounting firm (CPA Trendlines) 60% accountants who spend more than 10 hours a week working out of the office (ICAEW) 10% amount of time a fee earner loses if time isn t recorded until the end of the day. $ hrs/week average time lost if it isn t recorded until the end of the week (Altman Weill)

Some answers: Challenges:

24% professional service firms which expect sales to fall (IDC 2009) 24% professional service firms which expect sales to rise (down from 64%) (IDC 2009) 60% number of finance directors who see fee pressure as a significant risk to profitability in 2010 (Law Society Gazette, 2010) 6% fall in average fee income of management consultants, as rates drop.......& numbers of consultants grow (The UK Consulting Industry, Management Consultancy Association, 2009) # 1 priority for growth? Customer care (IDC 2009) # 1 reason why firm lose clients? ...Lack of responsiveness 91% law firms who have improved their client service & satisfaction levels through effective mobile working (Ark Group) 24 hours improvement in document turn around using mobile dictation..... while saving 40% on mobile costs (Nabarro, 2010) 15% Productivity improvement delivered by mobility for IT consultants (Victor Consulting, 2009) Saved 1 hour & 1000 per fee earner each week with mobile (Taylorcocks, 2010) 53% of smartphone users have won new business by staying connected whilst away from the office (ICAEW) Only 37% of non smartphone users had done so (ICAEW) http://uk.blackberry.com/(accessed 7th November 2010)

EXTRA INFORMATION
Other opportunity
Home office Police, immigration
Using Organisational characteristic/economic/revenue turnover+profit+budget Using Customer characteristic/decision making unit (segmentation based on current economy climate)

Statistic Chancellor George Osborne Emergency Budget 2010

Cut public spending to save 18bn a year by 2014/15 Police funding down 20% UK Border Agency funding also cut by 20%
McElvoy, A. (20th October 2010) Osborne pulls off political coup by matching Labour s 20% cuts in Evening Standard

REFERENCES
1. 2. 3. Baines et al 2009 http://www.12manage.com/description_market_seg mentation.html McElvoy, A. (20th October 2010) Osborne pulls off political coup by matching Labour s 20% cuts in Evening Standard http://www.youtube.com/watch?v=IACIB8GvNsk (accessed 7th November 2010) http://www.mobilenewscwp.co.uk/(accessed 21st October 2010) http://www.telecoms.com/ (accessed 14th October 2010) http://uk.blackberry.com/(accessed 7th November 2010) 14. http://www.mobilenewscwp.co.uk/2010/10/re-talesdeal-makers-111010 15. http://www.businessweek.com/news/2010-0802/blackberry-challenges-grow-as-countries-rimcollide.html 16. Porter, M. (1985) Competitive advantage: creating and sustaining superior performance. New York: Free Press. 17. RIM 2009 annual report. 18. EBSCOhost Niche strategy - merging economic and marketing theories 19. Johnson, G., Scholes, K. & Whittington, R., Exploring Corporate Strategy, 8th ed. London: FT Prentice-Hall, 2008 20. OVUM 2007

4. 5. 6. 7.
8. 9.

http://www.superbrands.uk.com/businessresults http://www.interbrand.com/en/best-global-brands/bestglobal-brands-2008/best-global-brands-2010.aspx 10. newmediaage.co.uk

11. http://rim.com 12. http://informationweek.com/blog/main/archives/200 7/02/the_top_five_re.html;j 13. http://press.rim.com/release.jsp?id=4696