Brand Building at Research in Motion - Assignment Example

Integrated Marketing Communications: Brand Building at Research in Motion s Introduction Research In Motion Limited (RIM) which until recently trades as Blackberry is a Canadian telecommunication and wireless equipment company that has been known to develop the Blackberry brand of tablets and smart phones. The organization has its headquarters in Waterloo, Ontario, Canada. It was founded by Mike Lazaridis alongside Jim Balsillie who served as the co-CEO until January 2012. Just like other managers, they too recognize the value in building and properly managing a brand. To give the managers a systematic guide on how to think about brands, Keller highlights the ten characteristics that strongest brands share (Keller, 2000). Integrated Marketing Communications (IMC) is defined by Barker, Valos and Shimp ( 2012) as integrating all the promotional tools in order for them to work together in harmony. Schultz, Tannenbaum, and Lauterborn (2003) noted that shared images in advertising and direct mail usually boost both mail shot responses and advertising awareness. Branding refers to symbols, names, designs and signs, or a combination of these in order to differentiate a firm’s product offerings from competitors (Czinkota & Ronkainen, 2004). Effective branding can develop brand equity; the value of a brand in terms of brand loyalty, company name awareness and high perceived quality. These ideas are at the core of why effective brands can be the base of a firm’s marketing strategy (Kotler et al., 2003). This idea has been demonstrated by international branding successes such as the Microsoft, Coca-Cola, Nokia, Samsung, and Blackberry. These companies strategic approach to brand management has not only generated increased profits and market share, but they also benefit their country-of-origin by helping their respective economies and country image. The paper will highlight discuss the theories of IMC as applied in brand building in Research in Motion. Discussion IMC has the capability to boost sales by stretching messages across various communication tools so as to create more channels for customers to be become aware and in due course, make a purchase (Eagle et al., 1999). In that perspective, marketing and corporate communications are the core persuasive elements a firm uses to connect with its markets by communicating ideas and seeking to impart particular perceptions of brands, products and services to customers or stakeholders (Schultz et al., 2007). Brand building as outlined by Aaker (2005) improves a brand’s equity directly through advertising campaigns and indirectly via promotions, for instance event sponsorship or cause championing. Brand building usually goes further than the trademark or logo. It is really a continuous message, feeling, or image that carries everything that emanates from a company. To build a brand there is need to determine what you are attempting to convey and to whom it is actually intended. For most firms, the goal is to differentiate and formulate a unique brand. Nevertheless, the challenge is to hold that together in a unifying voice. A view shared by Kapferer (2012) pointed out that marketers have to select communications tools that are most suitable for the stage which the target audience has reached. For example, advertising may be very good at raising awareness or developing interest, whilst free samples and sales promotions might be the way to generate trial. Smartphones are increasingly looking the same and provide almost same features, thus making it difficult for mobile phone firms to compete basing on the relative strengths of their handsets. As a consequence, the ability to build a strong brand in the market place plays a significant role than ever, something which RIM needs to address if its turnaround is to grow and be successful. RIM requires delivering a truly innovative experience that is designed for today’s mobile professional. This will send a message that the brand is committed to the business to business (B2B) market unto which it had originally built its success. Recent research an international consultancy indicated that the Blackberry brand that once dominated the smart phone landscape has actually plummeted almost to the bottom of the latest ranking of the global brands (McKennia, 2012). A report by Interbrand has shown that RIM’s BlackBerry is now ranked 93rd on its list of the 100 most valuable goal brands. It shoots down from 56th in 2011 with a brand value of $3.9 billion, down from 39 % from a year ago (Interbrand, 2012). Currently, Tode (2013) argued that one of the greatest challenges faced by Blackberry 10 devices is building up a brand which resonates with enterprises and consumers at a time when Samsung and Apple have already won the hearts of many consumers. Blackberry lost its market share in the mobile industry because in the recent years the space has evolved to be much more consumer driven. Just until recently, most of Blackberry devices have not been offering features that customers are searching for, like touch screen. In that perspective, the firm came up with Blackberry Z10 so as to regain significant market share based on the strength of its mobile phones only. This is because as noted Clow and Baack (2013), there is a correlation between the amount of money spent on marketing and success, including consumer’s desire for mobile devices. The new Z10 device features better user interface, hardware, and better industrial design. According to Keller (2000), building a strong brand position usually translates into having a bigger market share. Customers usually experience the company’s brand in various ways including marketing, packaging, and product (Gould, 2011). RIM has ensured that it uses these touch-points in order to mould the purchaser’s impression of the brand. Some of the touch-points include one-on-one customer interactions and product performance. Other touch points like monthly statements, product manual and post-sales support have been used by RIM to enhance its brand effects. As a result, it rose to the top five of the world’s phone market for the first time in 2010. RIM’s ascension and increased market share increased irrespective of the heavy competition form other smartphone manufacturers. RIM uses consistent images and useful, relevant, messages to assist nurture long term relationships with its customers. In this case, customer databases can recognize precisely which customers require what kind of information through their whole purchasing life. This has made consumers continue depending on BlackBerry as a secure way to communicate, store personal information, shop on the go, and obtain location information (Pardy & Desmond, 2010). RIMS uses IMC to save money as it eliminates duplication in areas such as photography and graphics. Agency fees have also been reduced at RIM by using a single agency for all communications. In instances where there are various agencies, time is saved when meetings bring all the agencies together for creative sessions, briefings, tactical or strategic planning. Consequently, this reduces workload and subsequent stress levels. According Aaker (2007) asserted that since the business environment is turning extremely hostile, it is evident that firms are equipping themselves with strong brand building skills so as survive and prosper. The firm has incorporated a set of measures so as commonly referred to us by Keller (2000) as brand equity ten to assist the firm measure and track brand equity across markets and products. Keller highlights the ten characteristics of building strongest brand’s share. a. The brand excels at delivering the benefits customers truly desire Not only do the customers buy the product because it is a collection of attributes, but because those attributes, the brand’s image and the service as well as tangible and intangible factors lead to the creation of an attractive as a whole. According to Krashinsky (2012), whilst most of the core customers have typically abandoned the smartphone, the brand has actually been awakened by delayed product launches, service outages, and stiff competition particularly from Apple. It has necessitated the firm to fight in order to keep customers in the corporate circles. b. The brand stays relevant The making of strong brands requires that brand equity is tied to both the actual quality of the service or product and to the various intangible factors such as the type of relationship that it seeks to build within its customers such as being committed, casual and seasonal. In 2007, the introduction of Apple’s iPhone on the AT & Tnetwork in the U.S impelled RIM to produce its first touch-screen smartphone for the competing network Verizon-BlackBerry Strom in 2008 (Krashinsky, 2012). This ensured they stayed afloat in the turbulent mobile market and kept its customers because they provided what most customers required. c. The pricing strategy is based on consumers perceptions of value The right to blend the product’s quality, features, costs, and prices is very hard to attain but well worth the effort. In the implementation of RIM’s value-pricing strategy for its tablets and smartphones it led to the creation of a balance between the Blackberry accessible and continuing in order to drive it as an inspirational brand. Off late, they have resorted to price offs for the new brands being released such as Blackberry Z10, Q10 and Curve 9220. The price off strategy successfully aligned RIM’s prices with the consumer’s perceptions for the value of the product thus maintaining acceptable profit levels. d. The brand is properly positioned Brands that are perceived as well positioned need to occupy certain niches in the consumer’s mind. They might be different from or similar to the competing brands in particular reliably identifiable ways. The major highlight in this development was the company trying to fight off the competition from Google Android and Apple by trying to upgrade its existing java platform. e. The brand is consistent The maintenance of a strong brand means striking balance between the continuity in marketing activities and the type of change required so as to stay relevant. The RIM Company had the consistency of producing phones that have unique features that are only identifiable with BlackBerry brand. The maintenance of one brand has enabled them to stay afloat in the already overcrowded smart phone market. The maintenance of brand consistency is driven by brand loyalty and brand recognition (Aaker, 2010). f. The brand portfolio and hierarchy make sense RIM has various brands of smartphones and tablets but the recent launch of the BlackBerry Z 10 has made to recapture the market that it had lost to other competitors such Apple, Samsung, and Nokia (Miller, 2013).The hierarchy of the models are as follows: the first model was the two-way pager models such as Inter@ctive Pager, next is the monochrome Java-based models (5000-6000 series), first color models (7000 series), sure type models (7100 series), consumer (8000-9000 series), and lastly the BlackBerry 10 (the Z10 and the Q 10 series) (Cheng, 2013). g. The brand makes use of and coordinates a full repertoire of marketing activities to build equity Basically, a brand is made of marketing elements that can be traded as such as slogans, symbols, logos and signage. Strong brand mixes that match these elements to perform a range of brand related functions like enhancing the awareness of consumers of the brand and assisting to protect the brand both legally and competitively (Pardy & Desmond, 2010). The major features of the BlackBerry devices have been mixed to develop brands that customers can easily associate them with the BlackBerry brand. h. The brands managers understand what the brand means to consumers Managers require appreciating the totality of their brand’s image; all the different perceptions, attitudes and behaviors customers associate with the brand. RIM’s managers have the ability to make decisions in relation to the brand with confidence so as to ascertain what customers like and do not like about the brand (Keller, 2000). The major identification of Blackberry products is the QWERTY keyboard that has been optimized for thumbing. i. Proper support given to the brand and that support is sustained over the long run Brand equity usually has ties to the brand name awareness, brand quality, brand loyalty, and other attributes (Keller, 2000). RIM’s has invested heavily in research and development so that it maintains its place in the smartphone and tablet market. When RIM’s revenue dropped, it may have been attributed to the managers shortcuts and bypassing the basic considerations in branding (Brown, 2011). j.The Company monitors sources of brand equity Most of the times the strong brands make use of in depth brand audits and the on going studies on brand-tracking. The brand audits are very helpful to RIM’s because of the decline in its customer base. Brand equity increases the financial value of a brand to the brand owner including changing profit margins, market share, consumer recognition of the logos and other visual elements (Lopo, Billet & Morgan, 2009). Conclusion Branding is the visual image of the company. The visual representation of the firm needs to convey the branding of the firm. One of the biggest challenges faced by BlackBerry is building its brand so that it moves away from its older image, which is as a more professional and enterprise focused brand. Consequently, so to ensure its survival in the already overcrowded mobile market, BlackBerry has attempted to out do its primary competitors which include smartphones running on Android, the Apple iPhone, and Microsoft’s Windows phones through brand building. Reference list Aaker, D. 2007a. Brand Portfolio Strategy: Creating Relevance, Differentiation, Energy, Leverage, and Clarity. London: Free Press. Aaker, D. 2005b. Building Strong Brands. London: Simon & Schuster. Barker, N., Valos, M., & Shimp, T. A. 2012. Integrated Marketing Communications . New York: Cengage Learning. Brown, D. 2011. Marketing. Retrieved March 2, 2014, from BlackBerry Takes a Hit in Brand Value Study: http://www.marketingmag.ca/news/marketer-news/blackberry-takes-a-hit-in-brand-value-study Cheng, R. 2013. Retrieved June 6, 2013, from How BlackBerry is fixing its once broken brand: http://news.cnet.com/8301-1035_3-57585099-94/how-blackberry-is-fixing-its-once-broken-brand/ Clow, Kenneth E. & Baack, Donald E. 2013. Integrated Advertising, Promotion, and Marketing Communications. Prentice Hall. p. 108 Czinkota, R., & Ronkainen, I., A. 2004. International Marketing, Seventh Edition, Thomson Learning, Ohio Eagle, L., Kitchen, P., Hyde, K., Fourie, W., & Padisetti. .M, 1999. "Perceptions of Integrated Marketing Communications among Marketers & Ad Agency Executives in New Zealand." International Journal of Advertising 18, 1: 89-119. Gould, Stephen J. 2011, "The State of IMC Research and Applications.”Journal of Advertising Research 40, 8: 22-23. Interbrand, 2012. Retrieved: March 2, 2014, from Interbrand: http// www.interbrand.com Krashinsky, S. 2012. The Globe and Mail. Retrieved June 6, 2013, from RIMs marketing challenge: Revive the CrackBerry addiction: http://www.theglobeandmail.com/report-on-business/ Kotler, P., Adam, S., Brown, L., & Armstrong, G (2003). Principles of Marketing, Edition, Prentice Hall, Australia Lopo, L., Billet, M., & Morgan, N. (2009). Consumer-Based Brand Equity and Firm Risk,. Journal of Marketing , 73 (1), 47-60. Miller, H. 2013, January 30. Retrieved June 7, 2013, from RIM Changes Company Name to BlackBerry: http://www.bloomberg.com/news/2013-01-30/rim-changes-company-name-to-blackberry.html Kapferer, J. N. 2012. New Strategic Brand Management: Creating & Sustaining Brand Equity (5th ed.). New York: Kogan Page. Keller, K. L. (2000). The Brand Report Card. Harvard Business Review , 78 (1), 147-157. McKennia, H. (2012, October 2). Retrieved June 6, 2013, from RIM falls on brand report: http://thechronicleherald.ca/business/142736-rim-falls-on-brand-report McQueen, R. (2013). BlackBerry. New York: Key Porter Books. Pardy, K., & Desmond, L. (2010). RIM Races to the Top. ANA 2010 Annual Conference. New York: Starcom MediaVest Group. Percy, L. (2010). Strategic Integrated Marketing Communications. New York: Routledge. Schultz, D., Kerr, H., Gayle F., Kim, I., & Patti, C. 2007. In search of a theory of integrated marketing communication, Journal of Advertising Education, 11(2), 65-85. Schultz, D., Tannenbaum, As., & Lauterborn, R., 2003. The New Marketing Paradigm: Integrated Marketing Communications. Illinois: NTC Business Books Tode, C. 2013, March 26. Retrieved March 2, 2014, from BlackBerrys biggest challenge is building a brand that resonates: http://www.mobilemarketer.com/cms/news/manufacturers/15033.html Read More