Blackberry storm 9500

Subject
Fundamentals of Marketing

Topic
Blackberry storm 9500

Date
14-06-2012

Class
M.B.A. 3.5 years 2nd (G)

Submitted By:
Ata-ul-Mustafa (028) Suleman Ahmad CR (026) Muhammad Nawaz (15) Rashid Zahoor (95) Khalil Ahmad (80)

Submitted To:
Sir. Arslan Sarwar University of Gujrat

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Table of Contents

Sr.No. 1 2 3 4 5 6

Topic Name Acknowledgement Dedication Introduction of Blackberry Specifications of Blackberry Storm 9500 Purpose of Launching Blackberry Storm 9500 Reasons to fail BlackBerry Storm 9500
o o o o o o o o iPhone's Safari Browser User Friendless Wi-Fi Support Full QWERTY (Virtual) Keyboard iphone Media Player iTunes App Store Built-In Memory iTunes Integration

Page No. 03 04 05 06 07 07

Marketing Strategy
o o o o o Marketing Mix Target Market of Blackberry Positioning SWOT Analysis PESTEL Analysis
Political Factors Economical Factors Social Factors Technological Factors Environmental Factors Legal Factors

09

8 9 10 11

Marketing Budget Controlling Feedback References

15 17 17 18

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ACKNOWLEDGEMENT

We are thankful to our teachers and our parents who helped and supported us at every moment. We are also thankful to all those persons who helped us in this project. We think that:

ALLAH help those who help themselves

As we see this sentence is very small but it has very vast meaning. It means that when a person helps himself then ALLAH also supported him for doing the work. We would like to dedicate this project to our parents and teachers.

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Dedication

We dedicate this effort to our parents and teachers. Their love, guidance & prayers have always accompanied us in completing our tasks.

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Introduction of Blackberry
Blackberry introduced in 1984. Central office settled in waterloo, Ontario . Operates more than 55% of the Smartphone market. International market share was at 16% for 2008. But in 2009 Blackberry have more then 19% market share. Receipts went up to $3.53 billion from $2.58 billion a year before. Sales are increased about 40% compared to a year since. Is flourishing its product portfolio to include a broad choice of devices and interfaces that Charm to a range of customers at different price points. Blackberry have 2.5G models that are littler, lighter, cheap, and have good battery life than other 3G models.

Reference No. 1

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Specifications of Blackberry Storm 9500

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Purpose of Launching Blackberry Storm 9500

The Blackberry Storm has a great utility for the users for both business and entertainment purpose. The Storm 9500 provides great features to the users which they can put to practical usage. Blackberry storm 9500 improve communications between employees. The BlackBerry planned and manufactured by Research In Motion (RIM) is a flexible, Information Technology (IT) friendly solution provides secure wireless access to their enterprise email and critical business applications to their mobile users. The BlackBerry can be augmented with two-elements certification solutions from RSA Security. The combination of the BlackBerry and RSA Securitys SecurID two-elements certification solution changes secure wireless access to enterprise applications and network resources.

Reference No. 2

Reasons to fail BlackBerry Storm 9500

iPhone's Safari Browser
Iphone have better features than Blackberry. Iphone have Safari browser which is easy to oprate with touch screen. Iphones Safari browser allow for easy, touch baced scrolling, zooming and other basic nevigation gestures.

iphone Media Player

Apple's iPod have number one media player in the world and it is easy to use. Its user interface is so nice ,beautifull and intuitive.The BlackBerrys media player still has nothing on the iPhone's media player.

Wi-Fi Support
The ipnone have Wi-Fi but the Blackberry storm 9500 doesnt.That is the reason for fail Blackberry storm 9500 into the Global market.iphone also provides free Wi-Fi hot spot access at more than 17000 hot spot locations, including Starbucks, Barners & Noble and McDonalds restaurants. But Blackberry storm 9500 doesnt support Wi-Fi.

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Full QWERTY (Virtual) Keyboard

The iphone not have physical QWERTY keyboard but the keyboard iphone have on its screen is better than Blackberrys QWERTY touch screen keyboard bacause in iphones keyboard have easy to use, each and every letter, symbol has on screen key but Blackberry Storm 9500 doesnt.

iTunes Integration
Apple iphone have iTunes account which simplifies the transfer of data, new applications and media files and easily modify in iphone settings via PC. Apple iphones iTunes account also support to the PC and Macs but Blackberry desktop manager only runs on PC.

iTunes App Store

Apple iphone have App store which is simple, reliable. It is easy to locate, download and update software from a iphone or via a PC. Blackberry have Application Storefront, but it is not easy to use.

Built-In Memory
Apple iphone provides huge built-in memory to its users. Iphone have 8GB, 16GB and 32 GB built-in memory in its smartphones but Blackberry have only 1GB built-in memory.

User Friendliness
Blackberry Storm 9500 is a user friendless because it is so difficult to operate. A user spend 4-5 days to understand the user interface of Blackberrys smart phone.

Reference No. 3 Reference No. 4

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Marketing Plan & Strategy

Marketing Mix

Product

Solution of customers Need

Black berry should improve quality of its Blackberry storm 9500 smart phone. Use latest Technology Add Wi-Fi feature in Blackberry storm 9500 Provide friendly user interface to its customers. Increase its built-in memory upto 32GB. Improve its browser and make easy to use internet. Blackberry should develop its touch screen QWERTY key board and make better than earlier.

Price The price of Blackberry storm 9500 is Rs.34000 in Pakistan, and $374 in US dollars which is so expensive. The price of Blackberry storm 9500 is should be Rs. 25000 in Pakistan because of Blackberry storm 9500 have great competition in Global market. Blackberry storm 9500 price should be charged price according to its features because other companies offering same features at low price. Blackberry should keep its manufacturing in developing countries because of cheap labor cost. Page No.9

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Promotion Blackberry should promote its product by advertising on Internet, social site (facebook, Twitter, Yahoo etc.) By advertising on Television. By sending multiple emails. By offering Discount to its first 1000 customers. By giving free tokens of McDonalds. Organize events and sponsor them for publicity. Organize technological festivals for awareness of peoples.

PlaceSince BlackBerry phones are available online they are available anywhere and anytime. And also eliminate the middle-man. Reference No. 7

Target Market of Blackberry

Business people o Email o Microsoft office o Higher business persons price Students o Web browsing and Facebook application o Blackberry messenger o More functionalities of a regular phone than originally o Application world can download games Currently available with almost any phone carrier

Reference No. 6

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Positioning

Blackberries have a strong brand image in his consumers mind. Blackberry target the high class peoples. Blackberry creates his good position in international market by introducing RIM technology firstly in the world. Blackberrys mobiles are expensive and difficult to operate and specially designed for the professional and higher education level students.

SWOT ANALYSIS

Strengths
RIM core technology. Research and development is a key success to RIM. By awarding them in 1999 Canadian American Business Achievement Award. Strong Brand image. Latest technology. Multinational company. High market share. Extensive distribution network. Page No.11

Blackberry storm 9500 Research & development department. Efficient management. Blackberrys software is well designed. The phone is highly secure and it Integrates well with other platforms.

Weaknesses
Blackberry prices were high. Apple iphone have better features than Blackberry storm 9500. There should be a option to Wi-Fi connectivity. Costly as compared to other products. Low storage device. Complicated user interface. Un-effective advertisement.

Opportunity
Modify the product with advance technology. Add latest features in Blackberry. Fulfill the customer satisfaction. RIM was doing well in the market Maintain Brand loyalty. They know what their customer wants. Leading-edge radio technology. They were first in the market for their famous product Blackberry smart phone.

Threats
Competition between Apple, HTC and Nokia. Nokia largest cell phone provider. Apple has strong brand appreciation with the consumer market. Apple knows how to promote their product in to the market. HTC use latest technology in their products. Reference No. 5

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PESTEL ANALYSIS

Political Factors: The Political situation of all over the world is not too good that badly affect the business. In Asia most of the countries faces Political instability which is restricts the multinationals to invest in these countries. The actual need of RIM has been in China, India, UAE and Pakistan where the political authorities make corruption, Blackberry may be using for hardly monitor the government authorities. Nationalization of companies by the government also has a huge problem for multinational companies.

Economical Factors: Economic forces plays important role in the smart phone industry. But due to increase in inflation rate the income of peoples are also effect and the prices are goes up. Customers focus on quality and cheap products. The economic conditions turn down and peoples do not agree to spend their income on a product unless the price is right. But the smart phone industry grown up rapidly in the China, India, Latin America and Pakistan provides a platform to RIM. The fluctuations of exchange rates are also having an impact in to make Blackberry too expensive. Especially fluctuation of exchange rate affects the price conscious countries like India, China and Pakistan. Blackberries have a stock option in price conscious countries.

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Social Factors: Due to the development in education sector, change in lifestyle, cultural aspects, Brand conscious peoples and increase in income also effect the sale of smart phones in all over the world. New generation like to use smart phones like Blackberry and Blackberry have a great brand image in customers mind. In some developed countries in the holiday season (month of November and December) the sale of smart phone rapidly increased due to seasonal sales. Social culture factor have a huge impact on RIM due to increasing usage of Blackberry by anti-social elements which effect the brand image of company.

Technological Factors: Technological factor effect the smart phone industry directly because smart phone have direct relation with technology. Technological advancement like 3G technology rapidly effect the RIMs product and increase the competition between smart phone manufacturing companies. Blackberry smart phone extremely adoptable technological changes. Now Blackberry used many advance services like: o o o o o o o o HSPA ( high speed packet access) UMTS ( universal mobile tele-communication system) GSM (Global system for mobile communication) GPRS (General packet radio service) EDGE (Enhanced data rates for global evolution) CDMA (code division multiple access) Ev-DO (evolution-data optimized) iDEN (integrated digital enhanced network)

Environmental Factors: Environmental factors are also have a huge impact on the industry. Manufacturers should must follow the environmental standards. Blackberry over the years have checked that the manufacturing standards are fairly ecofriendly and its create good image of the company in the consumer market. Following environmental factors also affect the company like: o Product recycling o Energy usage o Wastage etc.

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Legal Factors: The smart phone manufacturing companys services are secured and it becomes hard to monitor, so regulatory bodies of countries like India, UAE and Pakistan etc are thinking to ban the services. Minerva industries filed 2 ailments against RIM saying that violation of its patent in 2007 and 2008. The impending law suit will also get in valuable settlements all these legal problems affect the companys performance.

Reference No. 8

Marketing Budget
Following are the ways to set marketing Budget: o o o o Method (1) Fixed percentage of sales Method (2) Same level as competitors Method (3) Task Method (4) Residual

The best way to set marketing budget is third one task method.

Method (1) Fixed percentage of sales

In markets with a stable, predictable sales pattern, some organizations set their advertising spend consistently at a fixed percentage of sales.

Method (2) same level as competitors

This method has widespread use when products are good-developed with predictable sales patterns. It is based on the assumption that there is an industry average expenditure that works well for all major players in a market.

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Method (3) Task The task method includes setting marketing objectives based on the tasks that the advertising has to complete. These tasks may be financial in nature (e.g. achieve a certain increase in sales, profits) For example:

Increase in customer awareness of the product or brand. Number of viewers, listeners or readers reached by the advertisement.

Method (4) Residual The residual method is to base the advertising budget on what the business can afford after all other expenditure. There is no task or goal which is achieved by advertisement. We have $25 million for advertisement. In Budgeting we use following Promotional tools:

Advertisement Sale promotion Direct Marketing Public Relation

(45%) (15%) (15%) (25%)

$1125000 $375000 $375000 $625000

Advertisement Sale promotion Direct Marketing Public Relation

Reference No. 9

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Controlling
After the budgeting we control the marketing plan and evaluate it by checking the goals achieved. We measure its performance in the market and evaluate the causes of any differences among expected and actual performance. For evaluation we collect feedback from our customers.

Feedback
We collect feedback from our customers through the following ways: o o o Questionnaire. Surveys. Observation.

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References
1- Marketing-Case-Study-RIM-vs-Apple.pdf, n.d. http://zenportfolios.com/lavreetrandhawa/files/2009/11/Marketing-Case-Study-RIM-vs-Apple.pdf.
2- Blackberry Storm 9500: Launched To Take The World By Storm | PRLog, n.d.

http://www.prlog.org/10249403-blackberry-storm-9500-launched-to-take-the-world-bystorm.html. 3- 8 Reasons to Pick iPhone Over BlackBerry Storm | PCWorld Business Center N.d. http://www.pcworld.com/businesscenter/article/154131/8_reasons_to_pick_iphone_over_ blackberry_storm.html, accessed June 13, 2012. 4- Why BlackBerry Storm 9500 Failed? N.d. http://propakistani.pk/2009/05/29/why-blackberry-storm-9500-failed/, accessed June 13, 2012.

5- Blackberry

N.d.

http://www.scribd.com/doc/53630650/Blackberry, accessed June 13, 2012.

6- Marketing-Case-Study-RIM-vs-Apple.pdf

N.d. http://zenportfolios.com/lavreet-randhawa/files/2009/11/Marketing-Case-StudyRIM-vs-Apple.pdf, accessed June 13, 2012.

7- An Analysis of the Promotional Strategies for Blackberry Phone Services for TSTT

Trinidad and Tobago Barbra Doziers Blog N.d. http://barbradozier.wordpress.com/2011/05/13/an-analysis-of-the-promotionalstrategies-for-blackberry-phone-services-for-tstt-trinidad-and-tobago/, accessed June 13, 2012. 8- Pest Analysis For Rim N.d. http://www.scribd.com/doc/52280203/Pest-Analysis-For-Rim, accessed June 13, 2012. 9- Marketing - Promotion - Advertising: Setting the Budget. (n.d.). Retrieved June 14, 2012, from http://tutor2u.net/business/marketing/promotion_advertising_budget.asp
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