1.

Background of BlackBerry and Product

Research in Motion (RIM), an international leading wireless technology
provider is a company which supports the establishment of innovative
BlackBerrys handheld mobile device. RIM headquarter is located in Waterloo,
Canada and its operation is conducted across border, including Europe,
America, and Asia. Moreover, BlackBerry products are attributed with reliable
good standard since its Research and Development activities are operated in
German and United States of America (RIM 2012).

BlackBerry brand was initially produce convenient email-capable mobile

phone which is mainly utilized by entrepreneurs and businessmen for business
purposes. In recent years, BlackBerry has developed its product into
establishment of high technology and entertainment smartphone in order to
meet the desire of wide range of customers. According to Berman (2010, 158),
BlackBerry has been recognized as iconic smartphone brand which supports
real time connectivity among social group. The most favorable BlackBerrys
social tool refers to provision of proprietary instant messaging application,
namely BlackBerry Messenger (BBM) (Gillingham 2012, 6).

To meet growing demand from various customers and gain competitive

position in market, BlackBerry brand has continuously expanded their product
line in new launch of BlackBerry Playbook in 2011 (Liang 2011). This is the
first establishment of RIMs tablet device which offers customers with great
deal of applications and ability to run them in multitasking manner.
Furthermore, BlackBerry is planning to launch new smartphone model
BlackBerry 10 in the beginning year of 2013 with the aim obtaining future
growth and strong position in market (Miller and Chu 2012). Based on Cheng
and Doulcourts (2012), upcoming BlackBerry 10s launch will have
possibility to gain higher satisfactory level of customers since they will be

emphasis on upgrading its operation system to latest version as well as

providing more interesting applications in BlackBerry World.

2.

Target Market
In the past, BlackBerry smartphones had been targeted to business
professionals. It did not priced or developed for the everyday cellular user.
Today, Blackberry still primarily targeted to the business professional with
wireless connectivity ability on the go for faster paced Internet connections
when the user needs it most (BlackBerry Still a Favorite Tasty Treat 2009).
Therefore, the phone comes preloaded with the mobile trial version of
Microsoft Office and provides application to edit documents directly from
smartphone. However, Blackberry switch to younger generation market by
including new technology features such as high megapixel camera as well as
provided a series of games and applications such as Facebook and Twitter that
are targeted directly to the young and social group. Also, RIM has launched a
new software store called Blackberry App World with hundreds of applications
that target people of every category (Kemp 2006).

Therefore, BlackBerry expand its market segment that could give advantage to
new smartphone models by setting up the advertising plan that is targeted at
young adults. It is targeted to young people from 15 to 25 years old who
included young adults, females as well as males, from high school to college,
and fresh graduates whom looking for the first job. BlackBerry aim to
positioned itself in mind of its customer to think it as E-mail, cooperate
smartphone, business made easier (Heriyati and Pratomo 2011, 330).

3.

Objectives

After the background and customer profile of Blackberry has been known, the
next to be researched is the objectives. Objectives can be defined as the
application of the outcome that the company wants to develop in (Riley 2012).
The focus of objectives is on building the brand awareness, change consumer
perception and increasing the sales of Blackberry.

Blackberry need to build awareness in Australia since their market share is

low. The awareness can be done by make more advertisements in Australia.
The other component that builds the objectives is the innovation of the product
to suit the demands of the customer in terms of lifestyle and better looks. This
component can be seen in the various shapes, designs and colors in the
smartphone production in order to fulfill the demand of the customer (Kotler
et al. 2009, 60). In the corporation objectives in the company website,
Blackberry predicts that the market share will gone up 5% and in 2013, the
company will aim to increase the market share to 10% which is supported by
the production of the newest Blackberry 10 with newest application and the
features in which the customers seek (Riley 2012).

4.

Current Market Situation

Figure 4.1 Smartphone Market Share in Australia (The Australian 2011)

As shown from the figure above, in the year 2010 Blackberry is loose from
other Smartphones brand such as, Symbian, iOS, Android, Microsoft, and
Palm. From the figure, it shows that in Australia, Nokia lead the market share
in 2010, followed by iOS (Apple) in the second place and Android in the third
place. Blackberry itself is in the fourth place in 2010. It also shows that
Blackberrys market share from 2002 until 2010 do not have any
improvement. On the other hand, the market share of iOS (Apple) and Android
are increasing. iOS (Apple) that in the year 2007 lose from Blackberry, in
2010 it won against Blackberry. Same with iOS (Apple), Android that loses in
2009, in 2010 it won against Blackberry.

Figure 4.2 Top Smartphone OS in Australia (The Australian 2011)

From the figure 4.2, it shows that 2010, Symbian (Nokia) lead the market
against Android, Blackberry and iOS (Apple). However, in 2011, Symbian
(Nokia) lose from iOS (Apple) and Android. Same as the market share, from
2010 until 2011, Blackberry did not have any improvement. When Android
and iOS (Apple) gain more customers in 2011, Blackberry has lost some of
their customers. In Australia, compare to the other Smartphone, Blackberry is
still left behind the other. From the diagram, it also shows that in 2011, in
Australia, many people preferred Symbian (Nokia) rather than Blackberry.

5.

Brand Analysis

Brand analysis can be done through several methods, such as, brand value
chain analysis and SWOT analysis.
5.1

Brand Value Analysis

Brand value chain analysis is a method to locate the foundations and
the results of brand equity, and the way brand value is created through
marketing activities (Keller 2008,317).

5.1.1

Marketing Program Investment

Blackberry's brand performance is not reliable enough. Slow
execution performance, reducing battery life, and lack of
application to support consumers activities are some of
Blackberrys current problems. Since current Blackberry
product performance is perceived as not good enough to
compete, Blackberry spend mostly of their finance for R&D
department to gain insight in support of new product
development in recent years. It is evidenced by the fact that
RIM become Canadas top corporate R&D spender (Simone
2011). Furthermore, since employee personal well-being is an
important determinant for organizational prosperity (Gammie
1997, 66), Blackberry also care about its employees. It is
evidenced by becoming one of the 100 Canadas top employer
in 2009.

The newest Blackberry campaign in Australia is the wake up

campaign which gained many protests from Australians. One of
campaign activities which including the flash mob in front of
Apples store holding wake up plank and shouting wake up
was judged not appropriate for Blackberry. Many Australian
think that it was a Samsungs campaign at the beginning and
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when they realized that it was Blackberrys, they said that

Blackberry is not a competitor for Apple, they no need to do
that (Manning 2012). In the same time, Blackberry also still in
the Be Bold campaign, thus there is a confusion in here.

5.1.2

Program Quality
In terms of clarity, Blackberry marketing program has given the
understandable meaning and the consumer also interpret it
accordingly. However, Blackberry IMC program is not good
enough to stimulate good perception to the brand, this is
evidenced

by the

protest

for

Wake

Up

campaign.

Furthermore, their IMC program also seems not consistent since

they run different campaign, which is Be Bold and Wake
Up campaign.

5.1.3

Customer mind-set
Essentially, Blackberry has a depth brand awareness since many
people has known what is Blackberry. Unfortunately, in terms
of brand associations and attitudes, consumer has a bad
impressions of Blackberry, mostly happen because of its
inconsistency performance. Since consumer has a unfavourable
thought towards Blackberry, it also suffers the poor attachment
and activity because consumer will not take an extra mile for
Blackberry.

5.1.4

Marketplace condition

Competitive reactions : At the beginning, Blackberry

smartphone is really exclusive and superior in terms of

wireless email and BBM functions. However, now

other competitors also have the same functions.

Channel support : In Australia, the big service provider,

like Vodafone, Yes Optus, and Telstra still carry
Blackberry in their store and provide monthly plan for
the user.

Customer size and profile : Unfortunately, Blackberry

current users in Australia is not really big. It rank as the
sixth mobile phone, even, below than Nokia. In
Australia, the biggest user of Blackberry is corporate,
but this year, many corporate customers has switched to
the competitor.

5.1.5

Market Performance
Due to Blackberrys bad market condition and customer mind
set in Australia, its market performance also not really good.
Customer are not willing to pay more for Blackberry product,
even, the corporate customers also switch to Blackberrys
competitor. For instance, this year, Qantas change their
corporate mobile phone to iPhone based on employee survey
(Manning 2012). As can be predicted, RIMs market share price
has decreased from US$30 to US$8 in a year. It also suffered
lost of US$518 million due to employee lay off and the delay of
Blackberry 10 (Pennington 2012). RIMs brand extension on
Blackberry Playbook also can be deemed as failure since it
cannot compete with iPad (McGlaun 2011).

5.1.6

Investor Sentiment

In terms of interest rate, Australia experience the reduction in

a year from 4.7% to 3.5%. Thus, the market condition support
the people to do more investment these days than before.
Despite on Blackberry failure in recent days, It still has a
growth potential due to the launching of Blackberry 10. This
newest product which is the company last hope is fairly
acceptable and the numbers of vendor also try to provide some
applications for it

5.1.7

Shareholder Value
For shareholder value, Blackberrys stock price has suffered
the decrement for average 80 in 2009 to only 7.53 todays
(Google Finance 2012). On the other hand, according to
Google Finance the stock price is increasing slowly. It means
that many people buy Blackberrys share. This situation
maybe happen due to the growth potential that Blackberry has
and the good market condition in Australia.

5.2

SWOT Analysis

SWOT analysis shows a business' internal context in terms of strengths

and weaknesses and scouring its external context for opportunities and
threats. (Valentin 2005, 91).

6.0

Recommendation
6.1

Key Messages
The key messages that will be used in the campaign of Blackberry 10
will be Live, Chat and Fun. The choosing of these key messages is
because people live in this globalisation era and communication will
be the daily activity. Hence, with help of Smart Phone like Blackberry
10, people will find an easier way to communicate or chat with other
people through Blackberry Messenger. Besides, people will find a lot
of fun when they chat to each other due to the features inside the
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phone. We will collaborate this message in our campaign using

leveraging on secondary associations bases and activities that will
change consumer perception regarding Blakcberry. According to
OBrien (2006, 241), leveraging on secondary associations will
enhance exchange of ideas and foster business contact with the
audience.

6.1.1

Teaser
Prior to Blackberry 10 launch, Blackberry will held a guerilla
campaign by using flashmob performance in around January 2013.
Accordingly, the concept of the Flash mob is by gathering youth to
dance in crowd business district and wear office suits as costumes. In
Australia or more specifically in Melbourne, it will be held in BHP
Billiton without earlier announcement to public and featuring
upcoming launch of BlackBerry by giving out USB containing the cool
interface of Blackberry 10.

Not only flash mob will be used as part of teaser, but also collaboration
of Blackberry with movie directors, Mr. Sam Mendes in the SkyFall
movie as the means of leveraging on secondary association (Uggla
2004, 110). Thus, the mobile phone that will be used by James bond in
the movie is Blackberry 10 Alpha. The aim of cooperation with this
upcoming movie is to create brand awareness towards BlackBerry 10.
In this teasers ads, Blackberry will not focus on the Blackberry
features, since teaser provide incomplete information (Hung 2001, 40).

6.1.2

Magazine Ads

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The advertisement will be on the magazine and online magazine. There

will be two focus areas, business and teenage magazines as Blackberry
is targeting both businessman and teenagers. We will use trustworthy
spokesperson in these ads since the trustworthy sources will more
influencing peoples belief and attitude (Sparks and Rapp, 2011, 230).

In the business magazines, Blackberry will endorse Julia Ross as one

of the most successful businesswoman in Australia to introduce
Blackberry 10 in The Deal and Business Plus magazines. Besides the
endorsement, the feature of the Blackberry in business will be
included.

Whereas in the teenage magazines, such as Girlfriend and Cleo,

Blackberry will endorse David Guetta to introduce Blackberry 10 and
provides his experience and the fun in using Blackberry. Besides, the
features such as touchscreen, flexibility in the sentence selection will
be included in these magazines.

6.1.3

Out Of Home (OOH) Advertising

In order to reach wider target audience, out of home advertising will be
operated through digital and non-digital advertising medium. Since
majority of Australians use road transportation system to travel, this
advertisement will be place on several road strategic spots with the aim
of targeting widespread commuters.

The idea of making digital out of home advertising is to allocate

BlackBerry 10s digital signage touch screen monitor in several bus
and intercity rail stations. This BlackBerry 10s digital touch screen
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monitor will be equipped by free internet connection to influence

commuters awareness for experiencing the uniqueness of this new
product. Meanwhile, non-digital advertising will be located alongside
traffic and busy road in Australia through provision of Billboard.

For the purpose of reaching awareness of pedestrians and drivers,

Billboard will be designed with interactive interchangeable three lines
BlackBerry 10s key messages projection in accordance with time. In
early morning, billboard will only flash out message of Live every
second to boost up commuters spirit of living with BlackBerry,
meanwhile in noon, commuters will be reminded by convenience
features of BlackBerry Messenger through message of Chat every
time, and at night, billboard will project message of Fun every
moment to recall commuters about wide range of interesting
BlackBerrys applications.

6.1.4 Blackberry Music Jam

To be more appealing to the young adult market, Blackberry will create
an association by holding an event marketing (Belch and Belch
2009,538) which is music concert, Blackberry Music Jam. In order to
be perceived as a cool gadget by the youngster, in this music concert,
Blackberry will invite the well-known woman Australian DJ, Havana
Brown and the world famous DJ, David Guetta. Besides, this event will
also introduce the new Blackberry 10 app for DJ, which is pacemaker.
Thus in this concert, both DJs will play the music using pacemaker.
Furthermore, there are priority booking for Blackberry user, thus it will
influence the sales as well. The venue will take place in Rod Laver
Arena, Melbourne. This event will be held around May 2013.

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