The Fundamental Marketing Techniques in Launching Blackberry - Essay Example

The Fundamental Marketing Techniques in Launching Blackberry By Introduction The unbeaten victory of Research in Motion (RIM), being the premier in North American business to design, manufacture and market packet-switched wireless networking solutions for the global communications market, can be attributable to its focused objective on the most modern wireless mobility solutions. Launched shortly before the end of the twentieth century, RIM has been multi-awarded for its modernism and untainted effectiveness in providing mobile communications. Aside from the BlackBerry handheld gadget, RIM likewise develops incorporated hardware, software, and services supporting various wireless system standards. It provides platforms and solutions for the consumer’s accessibility to time-sensitive information through telephone, email, text messaging, Internet, and all intranet-based applications (Frenzel 2004). Marketing is the practice of management that effectively and beneficially recognizes, foresees and satisfies customer requirements (Chartered Institute of Marketing, n.d.) Marketing concept, according to Kotler and associates (2008), is a customer-centered philosophy that productive sales and adequate investment returns are achievable when customer needs are met. It is focused on customer orientation, business-and-customer relationship and customer satisfaction (Kotler, 5) Marketing is an essential element of every commercial business, apart from the product type, environs, target market, or the service provided. With the arrival of modern technology, particularly the internet, innovative business forms have surfaced necessitating an array of marketing techniques to magnetize and maintain customers. This paper will discuss the different marketing strategies employed by BlackBerry that made the company unbeatable in providing the finest mobile technology. BlackBerry’s Brand Repositioning Strategy Before 2002, BlackBerry was principally a wireless electronic mail solution, mainly targeted on the upper corporate sector. Partly based and highlighted from the old logo of BlackBerry phones, its original brand positioning was to be "the best wireless email solution for business." (‘Our Work: BlackBerry: Connecting a Breakaway Brand with its Users’ 2010). The increase in technology shifts and the impact of BlackBerry branding on the development of the general mobile communication market and its effect on consumer requirements and behaviours, prompted RIM marketing group to implement a repositioning of the BlackBerry brand: A repositioning that is beyond short-lived fashionable technology and email usefulness (‘Our Work: BlackBerry: Connecting a Breakaway Brand with its Users’ 2010). In 2002, the Research in Motion, together with Landor, a top branding expert, redesigned BlackBerry’s positioning in two key strategic moves: (1) expansion of the brand’s power level further than email functionality to time-sensitive, immediate accessibility, and connectivity; and (2) labeling a more personalized image for a further emotional attachment of the end-user to the brand (‘Our Work: BlackBerry: Connecting a Breakaway Brand with its Users’ 2010). The previous logo was devoid of image strength and recall. The redesigned BlackBerry logo rises above technology, expresses liveliness, looks friendly and seems bendable to the ever-changing world trends. It now represents connectivity, flexibility, mobility, velocity and approachability, and mirrors the user’s professional and personal lifestyle (‘Our Work: BlackBerry: Connecting a Breakaway Brand with its Users’ 2010). Energized Differentiation Popular brands continuously magnetize the hearts, minds, and money of clientele with their originality, passion, and uniqueness. The top brands are constantly reinventing and redefining their differentiation in a more energized approach. These brands are rebuilding changes in attitude and behaviour, propelling rise in their future markets, income, and stock value (Aaker and Jacobson 1994, Mizik and Jacobson 2005). Companies creating energized brands, such as Google, Disney, iPhone, Microsoft, Wii, Microsoft, Pixar, BlackBerry, iPod, and Toyota, keep developing their energized differentiation, thus eventually increasing patronage quantity, customer loyalty and pricing authority. In the 2009 analysis made by Gerzema, Lebar and Rivers, on Market Efficiency and Risk Management, they stated that: “A brand with energy has velocity and direction; constantly reinvents itself; engages consumers; attracts without chasing, and moves culture.” (quoted in Gerzema et al 2009). BlackBerry adapts to the changing seasons of technology. Initially, it promoted its features. It then shifted to becoming victorious in the business world and later became global and achieved status (‘What BlackBerry Teaches Us About Global Branding’ 2008). According to Paul Kalbfleisch, RIM Brand Marketing Vice-President, “Our most powerful brand tool is that a product does what it is supposed to do. People got passionate about what it does. They wanted to associate their device, what they hold in their hand, with the brand name.” (quoted in ‘What Blackberry Teaches Us About Global Branding’ 2008). President-elect Barack Obama said in an interview with CNBC and The New York Times, “I’m still clinging to my BlackBerry.” (quoted in Clifford 2009). This endorsement for BlackBerry by the most powerful man in America was the greatest endorsement in history (Clifford 2009). This represented the unmistakable evidence that the company is famously victorious. First Mover Advantage Strategy Businesses throughout the world attempt to outsmart rivalry to attain competitive advantage. Rival companies opt for strategic marketing on particular competitive settings. The first mover advantage (FMA) is achieved by the first company to market an innovative product, commence a new service, form a unique positioning, or expand attractive network magnetism. Market pioneers usually take a lead in market domination, prime access to multi-market divisions and bigger future productivity. However, being first-movers do not always guarantee competitive advantage over the other businesses. Imitators can achieve greater results than those attained by first movers (Roll 2009). As in the case of the two biggest icons in mobile brands: iPhone and BlackBerry. Blackberry outsmarted iPhone by being the leader in the introduction of mobile internet email through Wi-Fi connectivity. Since 2002, the Research in Motion or the BlackBerry maker became number one in mobile market domination. Other mobile manufacturers likewise integrated email functions into their devices, still BlackBerry remained unbeatable, being the first to effortlessly incorporate mobile communication; internet functions and web browsing; and business email into an all-in-one handheld device (Roll 2009). Competitive Advantage through Business Functionality BlackBerry and Apple are the world’s top competitors on the smart phone trend. The two companies are equally secretive about their marketing techniques, with Apple executive clearly declaring that Apple “prefers not to market its marketing.” The two brands marketed their products to end-users, keeping in mind to provide a functional device that will satisfy both the leisure and corporate requirements of customers. Functionality is vital in choosing which device will best suit a business user’s standards. iPhone, as perceived by some people, is more of a social device than a business device. (Seddon 2008). Adam Leigh, the Communications Agency chief executive, declares that: “There is a general perception that Apple iPhones are fun as they are frequently linked to the use of leisure sites like iTunes and YouTube, which many firms block on their office PCs browsers. There is a demarcation between leisure and work – managers could be reluctant to issue their employees the iPhone as their work phone as it could be perceived that they are advocating the use of it for pleasure purposes during work hours, so there is a potential productivity issue here.” (quoted in Seddon 2008). With the repositioning of BlackBerry as an all-in-one gadget suitable for use on both business and leisure, customers’ choice between the two top contenders is unclear and undecided. Justyn Lucas, the co-manager of mobile advertising agency Yodel Digital, states that: “As mobile devices become increasingly advanced, the lines are starting to blur between strict business users and social entertainment users. BlackBerry’s last generation of phones included features such as cameras, MP3 players and GPS. Whilst these are handy options, the main reason customers are drawn to the BlackBerry is because of its business functionality.” (quoted in Seddon 2008). iPhone was condemned as having inadequate browsing abilities and simply a perfect media player with secondary function for internet access. Mark Pearson, TDA creative director, and an iPhone 3G fan, argues that: “As soon as issues surrounding operating platforms have been ironed out, it is the marketing and brand-building efforts that will determine the success of the BlackBerry Bold and the iPhone 3G. BlackBerry has currently got the business market cornered so Apple will need to work cleverly and carefully if it wants to convince decision makers that the iPhone is a serious device as well as a stylish one. And BlackBerry cant afford to rest on its laurels – there are distinct parallels between this situation and the way Microsoft eroded IBMs dominance of the market for business PCs.” (quoted in Seddon 2008) Brad Rees, Mediacells director, states that: “Features of the iPhone 3G could mean that we are more likely to see companies making real use of direct, targeted mobile advertising, due to its fast connection and large display. However, in terms of users, it is unlikely that many corporates will buy the iPhone on a business contract because of the lack of integration with MS Exchange and also because without an all you can eat data tariff, businesses are not going to want to have employees using mobile data services all day – the cost implications are simply too large.” (quoted in Seddon 2008). Regardless of Apple’s attempts to improve its business functionality, the corporate sector prefers BlackBerry phones because of its reliable and reputable brand category. Leigh, in agreement, adds, “Because business people have had five years to get to know and trust the BlackBerry, they are more likely to rely on them to be suitable for their demanding business tasks. Admittedly, the BlackBerry doesnt have the style or sexiness of the iPhone, but Apple doesnt have the functionality yet to win over the business audience.” (quoted in Seddon 2008). Strategies on Massive Product Mix and Marketing Mix Important to RIM’s triumph is its capacity to branch out its merchandise range and produce additional income means. BlackBerry implemented the massive product mix strategy by providing the most convenient handheld device integrated with hardware, software, and services supported by multi-standard wireless system. The company’s advertisements and endorsements expanded BlackBerry’s customers and raised profit margins (Siebes 2010). Research in Motion developed marketing mix by introducing the BlackBerry smart phones that merge the authority of state-of-the-art wireless email service with coordinated desktop email ability or host service seamless connection (Siebes 2010). The SPACE and SWOT matrices (Appendices A and B) showed that RIM’s global diversification strategy through product mix and market mix helped improve the company’s weak points whilst making the most of existing prospects. Both strategies confirmed valuable in the QSPM Matrix (Appendix C) (Siebes 2010). References Aaker, D. and Jacobson, R. 1994, ‘The Financial Information Content of Per­ceived Quality’, Journal of Marketing Research, May Issue, pp. 191–201. Chartered Institute of Marketing (CIM) n.d. Marketing Glossary. London: Chartered Institute of Marketing [Online] Available at: http://www.cim.co.uk/cim/ser/html/infQuiGlo.cfm?letter=M [Accessed 6 November 2010]. Clifford, S. 2009, ‘For BlackBerry, Obama’s Devotion is Priceless’, New York Times [Online] Available at http://www.nytimes.com/2009/01/09/business/media/09blackberry.html?_r=3&scp=2&sq=blackberyy,%20obama&st=cse [Accessed 8 November 2009]. Frenzel, L. 2004, ‘The BlackBerry Success Story: Research in Motion Celebrates 20 Years’, Electronic Design [Online] Available at: http://electronicdesign.com/article /communications/the-blackberry-success-story-research-in-motion-ce.aspx [Accessed 7 November 2010]. Gerzema, J., Lebar, E., and Rivers, A. 2009, ‘Market Efficiency and Risk Management’, Journal of Applied Corporate Finance, Volume 21, no. 4. Kotler, P. and Armstrong, G. 2008, Principles of Marketing, 12th edition. New Jersey: Prentice Hall. Mizik, N. and Jacobson, R. ‘Talk About Brand Strategy’, Harvard Business Review, October 2005: 1. ‘Our Work: BlackBerry: Connecting a Breakaway Brand with its Users’, 2010, Landor [Online] Available at: http://www.landor.com/go/blackberry [Accessed 6 November 2010]. Roll, M. 2009, ‘First-mover advantage and branding: Apple versus BlackBerry’, Asian Brand Strategy [Online] Available at: http://www.asianbrandstrategy.com /2009/10/first-mover-advantage-and-branding.asp [Accessed 6 November 2010]. Seddon, R. 2008, ‘B2B Marketing More Insight and Analysis’, B2B Marketing [Online] Available at: http://www.b2bm.biz/features/?groupId=&articleId=28730 [Accessed 6 November 2010]. Siebes, D. 2010, ‘Future of RIM / BlackBerry’, Knol BETA [Online] Available at: http://knol.google.com/k/dan/the-future-of-rim-blackberry/3hp472l8bqpdu/8# [Accessed 7 November 2010]. ‘What Blackberry Teaches Us About Global Branding’ 2008, E3 Network [Online] Available at: http://e3network.wordpress.com/2008/11/20/what-blackberry- teaches-us-about-global-branding/ [Accessed 6 November 2010]. Appendices Appendix A: SWOT Matrix       Strengths - S   Weaknesses – W SO   Strategies Use strengths to take advantage of opportunities 1     2      3    Patents, Licenses, and Acquisitions      Highly developed and specialized R&D department    Bandwidth friendly network architecture 1      2      3    Poor demand forecasting for new products      Occasional network outages      Relatively few customers WO Strategies Overcome weaknesses by taking advantage of opportunities ST Strategies Use strengths to avoid threats WT Strategies Minimize weaknesses and avoid threats   Opportunities – O   SO Strategies   WO Strategies 1      2      3    Low penetration rates in emerging markets      Mobile advertising as a revenue stream      Increased transmission speeds and the versatility that comes with them 1      2      3  Use network architecture and compression technology to attract emerging market carrier contracts (S1,S3,O1)  Develop free software for consumers with integrated advertising space (S2,O2)  Provide new features such as high quality video streaming and data intensive apps (S2,O3) 1      2            Aggressively expand internationally in to emerging markets (W3, O1)  Create new customers and revenue streams through advertisement contracts (W3, O2)   Threats - T   ST Strategies   WT Strategies 1      2      3 Carrier bandwidth limitations      Health concerns and usage regulation      Intense Competition 1      2          Increase network capacity & compression to reroute carrier bandwidth through private networks (S3,T1)  Develop low radiation devices (S1,S2,T2) 1      2      Fund a unit to specialize in developing product demand forecasting(T1, W1, W2)  Offer 3rd party developers more incentives to create apps (T3,W3) Appendix B: Space Matrix   Financial Strength Rating Score   Environmental Stability Score 1. Working Capital 5     1. Technological Changes -6   2. Leverage 5     2. Government Control -2   3. Cash Flow 5     3. Risk Premium -2   4. Payable to Customers 5     4. Price Elasticity -3   5. Debt to Asset 6     5. Entry Barriers -3     26 5.2   6. Competition -5             -21 -3.5               Competitive Advantage       Industry Strength     1. Brand Equity 6     1. Growth Potential -2   2. Market Share 3     2. Profit Potential -3   3. Quality of Service 5     3. Ease of Entry -4   4. Number of products 3     4. Financial Stability -1   5. R&D 6     5. Resource Utilization -2     23 4.6     -12 -2.4               CA and IS 2.2           FS and ES 1.70                   FS             +6                                                       -6     6   CA         IS                                                                   -6           ES         Appendix C: QSPM Matrix QSPM for Research In Motion, Ltd. STRATEGIC ALTERNATIVES Aggressive International Ad Supported Expansion Software Key Factors Weight AS TAS  AS TAS Opportunities 1. Wired-to-wireless communication transition .12 4 .48  3 .36 2. Cellular phone growth rates in developing nations .25 4 1.00  3 .75 3. Growth in mobile advertising .02 3 .06  4 .08 4. Mobile workforce expected to grow to 1 billion by 2011 .17 4 .68  3 .51 5. Enhanced data networks expected to rollout starting in 2010 .04 3 .12  4 .16 Threats 1. Limited bandwidth capacity reducing the quality of the user experience .08 2 .16  1 .08 2. Patent lawsuits .05  3. Economic recession causing the US cell phone market to contract 14.5% .10 3 .30  2 .20 4. Potential health risks involving cell phone usage .14 2 .28  1 .14 5. Apple and Google entering the market could cause reduced margins .03 4 .12  4 .12  Strengths 1. Effective R&D Management .20 2 .40  3 .60 2. Valuable brand name and consumer following .12 3 .36  1 .12 3. Strong financial ratios, low debt .10 4 .40  4 .40 4. Carrier bandwidth saving infrastructure .09 4 .36  1 .09 4. Push email and connectivity patents .05 2 .10  1 .05  Weaknesses 1. Poor demand forecasting for new products .15 1 .15  1 .15 2. Few customers providing major revenues .12 4 .48  4 .48 3. Inability to meet technical demands of rapid growth .08 1 .08  3 .24 4. Limited consumer application store .06 2 .12  4 .24 5. Small share of consumer mobile phone industry .03 4 .12  1 .03  Sum Total Attractiveness Score   5.77   4.8    Read More