USP OF BLACKBERRY: BlackBerry Messenger

BlackBerry Messenger (BBM) is a proprietary Internetbased instant messenger application included on BlackBerry devices which allows messaging between BlackBerry users. It was developed by Research In Motion (RIM), maker of the BlackBerry device. Messages sent via Blackberry Messenger are sent over the Internet and use the BlackBerry PIN system, so communication is only possible between two BlackBerry devices. The service requires the BlackBerry Internet Service to be able to function, and communicates over the phone's Internet connection using either the mobile phone network or a wireless LAN ("Wi-Fi") connected to the Internet. Thus a user can exchange messages even where there is no mobile phone network coverage provided that there is a wireless LAN accessible that allows the phone access to the Internet.

Exchanging messages is also possible via dedicated discussion or chat groups, which allow multiple BlackBerry devices to communicate in a single session. In addition to offering text-based instant messages, BlackBerry Messenger also allows users to send pictures, voicenotes (audio recordings), files, location on a map, and a wide selection of emoticons (also known as "smileys") over the Blackberry network. With the release of BlackBerry Messenger 5.0, BlackBerry allows users to use a QR Code barcode to add each other to their respective friends lists rather than using only numeric PIN identification or an email address associated with the user's BlackBerry. BBM was introduced Globally 15/2/08, but introduction of the new interface in April 09 increased sales hugely.

Features
  

  

Send and receive messages with unlimited length. Choose a personal BBM display picture and status. Real-time confirmations when messages are delivered and read. Share photos, videos and more with multiple contacts at once. Add contacts by scanning barcodes or sharing PINs. Send music files to your friends.

CONTENTS:
          INTRODUCTION COMPETITIVE ANALYSIS ASSUMPTIONS SWOT ANALYSIS MICRO ENVIRONMENT MACRO ENVIRONMENT SEGMENTATION STRATEGY TARGET MARKET USP OF BLACKBERRY 4P'S PRODUCT PROMOTION PRICE PLACE  BIBLOGRAPHY

Introduction
The internet boom was arguably the biggest boom of the millennium, since the beginning of the internet countless number of companies and products emerged using the internet in every way possible. Blackberry is a Smartphone produced by Research in Motion available in various models with various capabilities but a lot of brand specific similarities. It was one of the first Smartphone to allow users to access the internet wherever they are with useful applications for everyday necessities such as E-Mail and Facebook. This case study hopes to provide a closer look in the business that is Blackberry, focusing on their line of Smart phones. Research in Motion (RIM) pioneered the development of the smart phone market in 1998 with the BlackBerry, positioned in government and enterprise target markets. Recognized as the all-in-one portable wireless communication device As Blackberry enters the maturity phase, RIM cant rely on the sales of current enterprise segments to retain market shares. Therefore in2008, the BlackBerry Storm series was introduced to cater to the mainstream consumer segments. RIM is the fastest growing company in the world with 14 million BlackBerry users in over 135 countries . The companys revenue reached a value of $11, 065 million between 200509 where 92% is generated outside North America. In FY2009, the companys revenue grew by 84.1% over 2008 (Data monitor, 2009). RIM has grown by expanding into foreign markets where it held 18.7 percent of the global smart phone market share in 2009(Toronto Star, 2009). Strong financials attract investors and allow RIM to grow with introduction of new products and solutions. However, RIM faces a threat to its global share and revenue as various competitors enter the market and launch new products. The smart phone market is forecasted to rise 19% throughout years 2009 to 2011.

Although mobile phone sales decreased by 9% in early 2009, the smart phone movement increased by 13% despite the economic crisis (Data monitor, 2009). Smart phone consumers have proved that they value entertainment and multi-media applications in their mobile devices. These trends present an opportunity for RIM to grow their product lines by focusing more on mainstream consumer needs.

Competitive Analysis:
Globally, RIM holds 20% of the smart phone market share. Although this is a rather substantial portion of the available market, RIM faces threats from close smart phone competitors and is constantly rivaling to stay on top. Smartphone competitors consist of: HIGH TECH COMPUTERS (HTC) APPLE NOKIA GOOGLE ANDROID SAMSUNG PALM

AssumptionsThe following assumptions are based on a forecasted increase in competition, response to changing consumer needs, and market trends: The BlackBerry is entering the maturity phase in the product life cycle RIM will continue to expand their product lines and services to grow RIM will continue to expand into foreign markets and build partnerships An increased number of competitors will enter the smart phone market There will be an increased demand for smart phones in the coming years. Consumer expectations of smart phone devices will change The average selling price of mobile communication devices will decline RIM will continue to partner up with software developers and add applications

SWOT ANALYSIS:
RIM INTERNAL STRENGTHS WEAKNESSESS -Dependence on few customers in the business and government segments -Issues with product supply

-Comprehensive offering and portfolio -Growing brand image and brand loyalty -Strong financial performance -Strong research and development OPPORTUNITIES: ______________________ ______________________ EXTERNAL -Expanding portfolio of offerings and applications -Positive outlook for Smart phones -Fastest growing company in the world

THREATS _______________________ -Declining average selling price -Increased competition in Smart phone segment -Involvement in legal issues

MARKETING PROJECT REPORT ON BLACKBERRY

PREPARED BY: (60) SHIVAM GUPTA - 11BSPHH010773 (61) SURUCHI SARKAR - 11BSPHH010873 (62) DANISH PATEL - 11BSPHH010245 (SECTION I)

ACKNOWLEDGEMENT
Every project requires a great deal of creativity and co-operation on the part of the group members in order to achieve the desired objectives. This Marketing Management project gave us an opportunity to work as a team and also helped us to gain insights into various marketing tools and techniques that are used by managers which help them to make effective and efficient decisions. It also helped us to put into practice the concept learnt in class and in learning their applicability. We would like to take this opportunity to thank Prof. Mohandas J Menon (Department of Marketing, IBS Hyderabad) , for providing us with his valuable advice and guidance at every step of this project. We would also like to thank our classmates for their co-operation and support.

THE MARKETING MIX:

(a) PRODUCT: Blackberry has been in great demand ever since it was launched. Its software is highly sophisticated. Its service delivery platform consists of a user friendly interface and the latest features. Blackberry constantly in the process of improving and improvising its existing products to suit the needs of its customers and to stay ahead of its competitors. Blackberry sets are high of quality, thus customers are enticed to buy them even by paying a higher price. BlackBerry has gained a competitive edge with its wide portfolio of smart phone products:

SEGMENTATION STRATEGY:
Market segment for mobile phone come under demographic segmentation. The other most common 2 segmentation strategies are geographic and psychographic segmentation. BLACKBERRY 's customer mobile phone market has the potential for further segmentation and thus customer preference based segmentation would facilitate not only the promotion related outcomes but also performance ratio based outcomes such as net and gross revenue and sales volume. Globalization has not only shrunk international between countries but also shortened product life cycles on numerous occations . customer relations and strategic focus on facilitating the control over external and internal relations are much more important than the activity of selling . The logistics functional skills are augmented by both complexity and diversity into an old fashioned functionary mould . the company is more concerned about selling the total output rather than minimizing their associated costs of maintaining stocks. the logistics team would have to place more emphasis on the suppliers credentials rather than the price itself and also the logistics team has to plan out for the evaluation criteria. Finally the supply chain team needs to focus attention on the objectives of controlling the entire supply chain evaluation process in a manner that non price factors receive a fair share of attention throughout the supply process ,thus leaving little room for any marked variance from the predefined criteria. Hence there is the need for some debriefing procedural applications to be adopted by blackberry.

(b) PROMOTION: Most of the retailers are more than glad to promote the idea of a more powerful and versatile blackberry because its super brand image is compatible with their brand image. Without restricting themselves to advertising on the television and radio, a mobile based marketing drive such as sending of messages can be used. Viral marketing techniques such as sending of multiple emails could be used. Viral marketing techniques are most cost effective than for advertising on television or radio. -one of the most successful posters from blackberry:

(c) PRICING: Blackberry Follows Market skimming price strategy to let it consumers understand the product's quality and the value associated with it. After few month then it follows market penetration so that it could capture the rest of the market. Blackberry has loyal customers who are ready to buy its products at premium price and keep waiting for new products. Blackberry messenger services is the main thing for which it charges high prices.

Bold 9900 Rs.32290

Torch 9800 Rs.26854

Bold 9700 Rs.21500

Bold 9780 Rs.21386

Pearl 3G 9100Rs.16333

Curve 3G 9300 Rs.13597

Pearl 3G 9105Rs.13545

Curve 8520 Rs.9199

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(d) Place: Blackberry has its distributors all over the country and they have good market share. Goods are easily available at retailers and wholesalers also get a good profit margin from the company. Wholesalers get a good deal depending upon the number of handsets they sell. Special schemes are given to both wholsalers and retailers

Target Market: The demographics of the current Blackberry target market is composed of mid to upper class buyers aged 30-55 in the professional, executive and industrial segments. The mainstream consumer market is a target for acquiring new customers where RIM will penetrate this segment by incorporating changes in consumer expectations. RIM can offer smart phone products with additional multimedia components 5to suit consumers interactive lifestyle. To continue long-term growth, RIM will target the next generational cohort, Tweens, who are adept to technology, social media and have considerable influence on their parents consumer behavior .. The target market of RIM mobile phones is the people who are fed up with the popular brands ,their new technology tactics and those who are interested in customized mobile phones. thus the co. can categorize their existing customers as their store visitors and online shopper

BIBLOGRAPHY: y y y y y y www.wikipedia.com blackberry.in mobilestrategy.com/blackberry marketingprof.com Magazines Newspapers

MICROENVIRONMENT
COMPETITORS: As a competitive force, Verizon Wireless would be considered a monopolistic competitor. There are many other competitors such as AT&T, Sprint Nextel, and T-Mobile, there are few barriers to entry into the market, and each competitor has different products with many subsitutes. Verizon also competes through the pricing of their products, the product features and with brand name competition. The Blackberry Storm is a direct competitor to the Apple iPhone offered by AT&T and the HTC Touch by Sprint. BlackBerrys competitor Apple introduced the I Phone in 2007 which was named the Invention of the Year by Time Magazine. Apple iPhone is growing at a very impressive rate and with introduction of iPhone 3GS, Apple looks all set to overtake RIM by mid of 2010 and become number two player in smart phone market. Analysts were saying that RIM is unlikely to maintain its over 50% share in North America due to growing competition from Apple, Motorola, and Palm, among others. PUBLICS: CUSTOMERS: Two types of users for smart phone customers: Enterprise customers- BlackBerry was a "company decision". Non-Enterprise customers- BlackBerry was a personal decision

MACROENVIRONMENT
DEMOGRAPHIC: Initially Blackberry focused only Professionals and corporate but now it also focused on other segments of all age groups. Initially Blackberry limit to a single age group or type of people, but It did start Business and but now with the Pearl/Curve/Pearl Flip they have been pushing the normal consumer market. ECONOMIC: Economic forces are based mostly on consumer income. Since the current economy is not expanding, people have less disposable income and are less willing to spend their money on products unless it is necessary or the price is right. Most companies are in the Recession stage of their business cycle, which means total buying & spending power is reduced for both businesses and consumers. To offset that, Verizon Wireless is offering more promotions and package deals with lower prices for the upcoming holiday season. TECHNOLOGICAL: The BlackBerry Bold 9000 is a line of smartphones developed by Research in Motion. The family includes the 9000 (released in 2008), the 9700 (released in 2009), the 9650 and 9780, both of which were released in 2010, and the 9900/9930, the first touchscreen Bold, released in August 2011. The Bold family is known for its distinctive form factor; efficient, piano-like QWERTY keyboard, typical BlackBerry messaging capabilities with a distinct, more premium keyboard than the Curve series. The Bold series is usually more expensive and have more premium materials (ex. leather, soft touch, carbon fiber, metal) unlike the curve (plastic, glossy.) They also have much better specs. OR The BlackBerry Bold 9650 is a mobile phone developed by Research In Motion and is part of the 9600 device series. It takes design cues from both its

predecessor, the BlackBerry Tour 9630, as well as its GSM variant, the BlackBerry Bold 9700. Changes from the Tour include built-in Wi-Fi, 512MB of onboard storage, and an optical trackpad instead of the trackball. It utilizes a 528 MHz processor, and has a 3.2 MP camera available as an option. Sprint Nextel announced that they would be the launch carrier for the Bold 9650 shortly after the device was introduced, releasing the phone on May 23, 2010. Verizon Wireless followed closely, releasing the phone exclusively online on June 3, 2010, followed by its retail stores on June 10, 2010. It was released in Canada the week of April 27, 2010. [13]

POLITICAL: The main legal force would probably be the Federal Trade Commission (FTC) because they set laws and guidelines involving pricing, packaging and labeling. Wireless phones are everywhere. Businesses depend on them. Family members call each other to keep in touch. People use them in public places and when driving. Some places have driving laws and bans on cell phone use while on the road to reduce the number of collisions. Also, it is illegal to interfere with radio communication. By law, cell phones have to use certain waves so they do not interfere with other device CULTURAL: The demographics and culture of consumers are always changing. The population is growing and more diverse every year, which creates more potential customers. Also, people today have a different set of learned behavior, attitudes and values. More people of all ages, backgrounds, and lifestyles have embraced technology more now. The changing role of men and women is a factor. In the past, cell phones (or the Blackberry Storm for example) would have been mostly bought by business men, but now women have the same lifestyles and careers and buy the same products as well.