You are on page 1of 34

1

A BUSINESS REPORT BY EMILIE HOOD

ETHICAL CLAUSE AND WORD COUNT


I confirm that this work has gained ethical approval and that we have
faithfully observed the terms of approval in the conduct of this project.
Date Signed.
Final Word count 1998 words

CONTENTS
Pg.3- Introduction
Pg. 4 Methodology
Pg. 5 Brand History
Pg. 6 Where are they and how can
they more forward?
Pg.7 Brand Audit and Pen Portrait
Pg. 8- Survey Results
Pg. 9- Interview Results
Pg. 10- Marketing Mix

Pg.14 Where they want to be


Pg 15. Main Objectives
Pg.
Pg.
Pg.
Pg.

16 Where they can head


17- SWOT
18- Ansoff Matrix
19- Key Consumer Trends

Pg.20- Conclusion
Pg. 24- References

INTRODUCTION
Methodology and History

METHODOLOGY

Introduction
This report is going to identify the main issues that face Blackberry and will highlight the best options for them to achieve their
objectives. I will do this by providing a detailed report highlighting flaws and identifying opportunities. I will show how these
recommendations can be executed in order to acheive the best possible success. I have carried out research and drawn upon
my own ideas and prior knowledge.
Type of Research

Objectives

Method

Sample size

Primary, Survey

- I wanted to see what the general view of Blackberry as a


brand was so I could see what they needed to improve

I used Survey monkey to create a 10 question survey with


various types of question about Blackberry and other
technology brands

52 people aged 18 +

Secondary, financial report

- I wanted to see what the financial status of Blackberry was, to


see why they need to change their approach so I could choose
appropriate suggestions to improve their market position

I used the Library One search to find reliable recent


financial data that applied to Blackberry and the
technology market

Primary/ Secondary, Trend


reports

- I wanted to see what might be having an effect on


Blackberrys positioning, I thought the best was to formulate
ideas was to look at trend websites and choose three major
trends to look at in reference to Blackberry

I used WGSN, Springwise, Trendspotting and Trend Hunting


to identify the trends

Primary, Interviews

- I wanted a businesses view of Blackberry, to draw upon their


insight into marketing and the use of smartphone within their
businesses to think of strategies for growth.

I interview Erin from FMA and Kenton from Uzin and Glue
company that wished to remain anonymous

BRAND HISTORY

Introduction: This infographic shows


the development of Blackberrys
product portfolio compared to that of
their competitors.
In 1977 Samsung launched its first
telecommunication Network

The first phone to have a


camera was launched in 2000
Phones with colour screens were first
introduced in 1998 by Siemens
Touch Screen technology
drowns out the excitement
surrounding scroller ball.
Microsoft invented the first tablet in 2000.
The Ipad was launched in 2010, and quickly
became popular

Infograph created with: http://www.easel.ly/create/?


id=https://s3.amazonaws.com/easel.ly/all_easels/134790
2/1449483475&key=pri

9th July 2008, App store is


launched for Iphone

Figure 1.

WHERE ARE THEY NOW AND


HOW CAN THIS BE USED TO
MOVE FORWARD?
Macro and Micro Environment, and the 6ps

BRAND AUDIT AND PEN


PORTRAIT

Mission Statement BlackBerry aims to inspire the success of our millions of customers around
the world by continuously pushing the boundaries of mobile experiences Blackberry

Pen Portrait
The target market for Blackberry is
affluent business men, who have a
higher level of disposable income to
spend on more expensive brands.
They require a high level of
organisation to keep their life in
order. They require security as they
work with sensitive information.
They like to be in touch with fashion
and combine it with practicality.
Blackberry Phones are often
supplied by the companies at which
they work.

SURVEY RESULTS

I carried out a survey and street interviews to get an overview of what people thought of Blackberry as a brand and of their products. I took
samples of people aged over 18. The following graphs and statements show the responses.

1.
1.
2.
3.

3 technology Brands.
Apple
Samsung
Microsoft

How often do you replace your phone?

3. Have you ever owned a Blackberry product?

Yes

No

4. Would you ever own one again?

How often do you replace your phone?


Every 6 months
Once a year
2-3years
4years +

5. What would convince you to


own one?
1. More up to date
technology
2. Better ease of use
3. Bigger buttons and
screen
This is
a sample of the questions I asked, they
most clearly highlight some of the issues facing
Blackberry. The main being that the most
popular answer to question 4, was no,
highlighting how irreversibly their brand image
has been damaged. They have no brand loyalty
as most of the people who have owned a
blackberry said they wouldnt repurchase
cuting out a huge proportion of their potential
market. Furthermore it means they cant rely on
word of mouth marketing to generate sales as
these people wouldnt be giving good reviews.
See full questionnaire in the Appendix figure 2.

10

INTERVIEW RESULTS
Introduction
I carried out two interviews with people from two different companies. I asked them what they wanted from a phone and
the ways in which they think Blackberry could reinvent themselves to be competitive.
Interview 1
The first interview was with the CEO of a major glue and cement company Uzin, who used to use Blackberrys as their
company phones. I asked him the reasons they changed from Blackberry to Iphones. The main feature that the Iphone had
was the advanced security, they deal with a lot of sensitive data they have to assure their clients it is 100% safe. Although
Blackberry has a security feature he said that Apples are more advanced and this combined with the fact theyre
constantly updating their technology means they are a better fit for them. Furthermore, the majority of his clients used
iphones, making it easier to share information. He suggested that if Blackberry came out with a really original feature that
couldnt be found on iphones that would help his business then he may reconsider.
Interview 2
The second interview was with Erin, an account executive at FMA PR in New York. She gave me a few ideas as to how she
thought Blackberry could improve the ways in which they launched new products or regenerate old ones in order to create
more sales opportunities and boost their profile among their market. The Main ways she suggested were; events/ launches
and innovation.

11

BLACKBERRY MARKETING MIX


Place

Blackberry stores are located more in MEDCs (there only flagship store is in Dubai) which is a prime economic location. It is situated in a very
business orientated region which means that they are surrounded by potential clients, so they are typically situated in the best location.

Furthermore, Blackberry have a lot of concessions within stores such as EE and O2 so they have lots of opportunities for sales. However, being
in this location means they are in very close proximity to their competitors and are therefore at a higher threat of being over looked, especially
due to their lack of advertising, brand loyalty and differentiation that the competition such as Apple and Samsung have.

Price

The price of blackberry products ranges from the lower end, Classics costing from 349 new, to the Blackberry Priv costing 559 new and then
the high end Blackberry Porsche design costing 850. This high cost makes it seem like a high quality product, attracting a wealthy target
market.

Despite the initial high cost, Blackberry handsets depreciate very quickly. During our research in to the products they offer we found that many
examples of the Blackberry Curve- which was popular among Millennials can be bought from websites such as Amazon and Ebay for as little as
20.

Product

In recent year Blackberry have branched out away from their traditional smartphone market and are now offering a range of other products
such as tablet, security software, sound systems and printers. These products have been aimed at the existing consumers of blackberry
products, Business people. This has meant they slowly expanded (at a far slower rate than their competitors, meaning that they lost market
share). Blackberry currently have 10 smartphones, as well as non-smartphone products. There is estimated to be about 30 million Blackberry
users worldwide, with an estimated 1-2 products per user.

12

BLACKBERRY MARKETING MIX


Promotion

Blackberry has very limited promotional methods, It mainly relies on word of mouth and reputation to generate sales. The minimal
advertising that they do, is focused on promoting function over entertainment, Which is ideal for their target market. Blackberry also offer
occasional collaborations with high quality brands such as Porsche which improves their brand image and promotes them among the
collaborators customers as well as their existing markets which is a method of promoting market penetration. Furthermore Blackberry offer
a pre-release option which creates a hype around the release. This promotion technique is also popular with Apple and Samsung and has
proved very effective with them. This is a good method for Blackberrys existing market but it doesnt necessarily promote new business.

Planet

Through research done on Blackberrys website, we found that environmental wellbeing is a very important subject for Blackberry, and
their mission statement in this field is clearly available. Blackberry pride themselves on using recyclable and renewable materials that are
sustainably sourced. Their Solutions for Hope Campaign promotes their use of conflict free tantalum. They also mine in Indonesia, which
they say is done responsibly and promotes diversity while providing jibs and incomes for those at the bottom of the income scale giving
them a means of earning a living with a reliable company.

Personality

Blackberry as a company is seen to be; formal, straightforward, business orientated, technology driven and reliable. They have a
crackberry following of loyal consumers that repeatedly buy their products. The colour scheme that they use is black, chrome, and silver
giving Blackberry a credible, powerful and sleek look. These colours also have connotations with the luxury, which reflect the image
blackberry go for. Blackberry are only present on Twitter, Facebook and they run blog which means they have very little interaction with
the consumer which gives them an unapproachable vibe.

13

BLACKBERRY MARKETING MIX, MICRO MARKETING


Positioning
Key =
- Size of the
enclosed competitors market
share

The companies circled were the


main competitors identified in a
survey completed in 2015. This
shows how far behind Blackberry
are in comparison to their
competitors. The positioning chart
shows companies that might pose a
threat to Blackberry in the future.

MACRO-ENVIRONMENT
PESTLE Analysis

14

These are changes that Blackberry has and will have to adapt to to survive

Political

In recent years there has been increased pressure on businesses by the government to be environmentally friendly. This
has come to a head recently due to the passing of the treaty to keep global warming below 2oc and therefore they will
need to stick to this target or face a fine, which could spell disaster for them.

Economic

Economic change is a major trend that is impacting Blackberry as the recession meant that they lost a huge amount of
market share compared to their biggest competitors. Therefore they need to find a way to increase their competitiveness.
A good option for this could be investment in innovation as this is what their competitors have done and there is a
noticeable peak in sales every time they do this. Blackberry could look at creating products aimed at older people or
younger people, ie a phone or watch that monitors your health to tap into the growing heath and wellbeing trend. They
could also look at investing more in advertising to increase interest in the brand.

Socio-cultural

The main social influence is the growth of social media. If Blackberry can tap into this and increase their social media
presence on websites such a Linkedin and twitter they can communicate with their customers and potential clients more
easily and it gives them a more approachable feel.

Technological

Technology is another element that is really important to Blackberry to get right as otherwise they will loose out to their
competitors. This is massive issue for Blackberry as theyre already struggling because of this. They could potentially look
into developing health and well being products as stress and anxiety is a massive problem among their target market and
they might be able to increase interest through that.

Legal

Legal issues are less of an issue for Blackberry as they operate within the law in all of their operating countries. The main
issue in the future will be making sure they dont contribute to global issues in order to not incur fines

Environmental

The environment is a factor that will have a large impact on the business, not only because of new laws but because they
pride themselves on the fact that they have sustainable and ethically sound practices. They could use this as an area for
growth by developing solar powered chargers so that they can be environmentally friendly post the production stage.

15

WHERE THEY WANT TO


BE
Objectives, Targets, Strategies

MAIN OBJECTIVES
Growth

Survival
The figure below highlights how vital it is
for Blackberry to become more
competitive and showing how
dramatically their market share has
decreased since 2012. Blackberry needs
address this by finding a way of
regenerating interest and sales for the
brand. This report will look into the ways
in which they can achieve this.

Period

Android iOS

Window Blackberry Other


s

2015Q2

82.8% 13.9%

2.6%

0.3%

0.4%

2014Q2

84.8% 11.6%

2.5%

0.5%

0.7%

2013Q2

79.8% 12.6%

3.4%

2.8%

1.2%

2012Q2

69.3% 16.6%

3.1%

4.9%

6.1%

16

Reputation

The chart below highlights how vital it is for


Blackberry to become more competitive and shows
how small their market share is. Blackberry needs
to find a way of regenerating interest and sales for
the brand. If Blackberry do not adapt then they
wont be able to survive. In a 2013 interview CEO
John Chen said Ill continue to build out my
leadership team with those who have the skills and
passion to get BlackBerry back on the path to
profitability this highlights how important
profitability and growth are to the business.

To get a greater idea of the reputation that


Blackberry have with consumers I did a
survey using Surveymonkey.com. I asked
what were the top 3 technology brands in
their opinion. The stand out answers were
Apple and Samsung. Out of 42 responses,
26 highlighted both Samsung and Apple as
the best brands. Compare this to the
number of responses that highlighted
Blackberry- only one person mentioned
them. This proves that Blackberry have a
reputation issue and if they are to
complete the other two objectives, this
also needs to be addressed. This could be
done through advertising and social media
presence. In the aforementioned interview
Chen also said Its been easy for
competitors to promote negative stories
about BlackBerry, focusing on the business
of the past. But Im not focused on who
BlackBerry used to be Im focused on
what BlackBerry will be today and in the
future.

See full figures on Appendix


Figure 2

17

WHERE CAN THEY


HEAD?
SWOT, Ansoff and Consumer Profiling

SWOT ANALYSIS
Strengths
Unique roller ball on some mobile models.
BM is still popular as a social media service
Keyboard technology is instantly associated with
Blackberry
Still has a presence as a B2B
Has a reputation for reliance

Opportunities
Smartphone and technology markets are growing and
stable
Increasing demand for cloud based services
They can move differentiation and move into different
markets

Weaknesses
Huge competition from Apple and Samsung
Poor advertising campaigns
No stand out products
No footprint or loyalty

Threats
Apple and the strength of competitors.
Competitors investing more in technology
Operating in a saturated market

18

This SWOT analysis highlights the main issues facing Blackberry in the future. The major issue is that Blackberry are operating
in a saturated market and not putting funding into differentiation or advertising compared to their competitors. Although this
needs to be addressed, there are other things that Blackberry are doing effectively. They are keeping with trademarks (eg. The
roller ball and qwerty keyboard) meaning that their smartphones are instantly recognised. They are also focusing on specific
business market where they have a loyal client base. This could work against them if there is another economic down turn as
their market size will shrink. For the moment the smartphone and technology markets are growing so is not be an immediate
threat.

19

ANSOFF MATRIX
New Product

Existing Product

New Market

Diversification
Blackberry Music
Monitors for the older generations. Drawing on
tech they already have

Market Development
-The Blackberry Curve and Bold were aimed more at a
younger market rather than their usual B2B

Existing Market

Product Development
Security software is different to the normal
technology product they offer
Blackberry Passport offers a new way to travel.
Market Penetration
- Blackberry Priv, slider phone

Market Penetration
- Blackberry Priv, slider phone

This Ansoff Matrix for highlights Blackberrys lack of updates. This has meant they have fallen behind their competitors
like Samsung and Apple. The lack off innovation is dangerous as it means they will continue to slip behind. They could
aim at market penetration and market development. For example, the phones aimed at younger consumers were
successful back in the early-mid 2000s, however none of these products are currently in their range. Blackberry could
launch products aimed at age groups such as the older and younger generations. This has worked for Apple with the
launch of the Iphone 5C, which proved very popular with the younger generation as an alternative to the more
expensive Iphone 5 which were launched at the same time.

20

KEY CONSUMER TRENDS


Economic Change
1. Blackberry should invest in
technology. In economic dips it will
be cheaper and will give them time
to innovate, so when the economy
recovers sales will benefit from
increased desire to spend.
2. Blackberry could look at marketing
their product to a wider target
market so that they are less
vulnerable if there is another
economic down turn as their market
is often the worst demographic
affected.
3. Blackberry could think about
investing in banking apps or
technology. The recession has made
people conscious of over spending
and this could add appeal.

Smart and
Connected

1. Blackberry could reinvent their BBM


messenger as this was a major
selling point for them and it did gain
large popularity.
2. Blackberry should make their phones
easier to use. The survey shows
Blackberry products arent very user
friendly and it might help more
generations access the smart and
connected trend if the buttons and
screens were a bit bigger. It might
also help if the layout of the home
screen was a bit more straight
forward.
3. Blackberry could also benefit from a
cloud system that would enable
information to be shared easily
between Blackberry products making
them more connected. This would
benefit both business and social
markets

Sustainability and Ethics


1. Blackberry should advertise the
fact that they are produced
sustainability. This would be good
as Iphone have had a number of
scandals surrounding child labour
and poor working conditions.
Therefore people may move
towards Blackberry products as an
alternative if they knew they were
produced in a better environment.
They could promote a way of
disposing of the phones so that
they could be recycled of used
again.
2. They could react to this trend by
working more closely with charities
giving them more of a personality
and presence. It would also have a
USP in that they would actively be
working to make a positive benefit
outside of their target market.

21

CONCLUSION
Recommendations/ Suggestions for improvement

22

SUGGESTIONS FOR
IMPROVEMENT
Marketing
Blackberry under uses advertising whenever they launch a product. There are never any visible campaigns. If they
focused on this they could revamp their image and create more interest. Douglas B Holt said in his 2004 book How
brands become iconic (distinctive brands) have distinctive and favourable associations, they generate buzz.
Blackberry could draw upon competitors methods of creating a buzz. Apple campaigns never fail to draw attention.

For example, the 2004 commercial of the dancing silhouettes is instantly recognisable. This is the type of publicity
that Blackberry needs to produce so that they can reach a large audience rather than just relying on their current
clients. They could think about celebrity endorsements or focusing on some of the most important features of the
product.

23

SUGGESTIONS FOR
IMPROVEMENT

Innovation

Innovation is another area where Blackberry are missing an opportunity. Their


competitors are at the forefront of technological advances whereas Blackberry
always seem to be at least 2 years behind, while still charging premium price. In
order to be competitive they need to either reduce prices or keep up with the rate at
which their competitors are developing. They could look into, solar powered
charging, tapping into the emerging market concerned of being environmentally
friendly. It would also make charging on the go easier appealing to their current
market and also to the millennial generation who require their phones to have a long
battery life.

24

SUGGESTIONS FOR
IMPROVEMENT
High Street Presence
Another way in which Blackberry could raise interest in their products is
to open more stores in major cities
Blackberry only has 1 store in Dubai, and otherwise operates online and
in concessions. If they had their own stores people could try the products
before they buy. Face to face salesman would be able to sell the products
based on the individuals needs rather than giving a generic description.
This would allow them to reach a greater target market and highlight
lesser known features.
Stores would also generate more sales through footfall, and keep the
brand at the forefront of peoples minds. This would be invaluable for
Blackberry as it is one of the main reasons because they are currently so
easily overlooked.

25

BARRIERS TO PROGRESS

Lack of skills and finance


One consideration not looked into is that Blackberry have limited access to
finance and skills which are the reasons they have fallen so behind in the
first place. A solution to this could be to take part in a merger or takeover
with a competitor. This would mean they have access to the resources that
will make them more competitive again therefore solving this issue.

ILLUSTRATIONS

26

Pg1 - Blackberry Logo: http://globalgamejam.org/file/blackberry-logojpg-1on 18/1/16

Pg 8 - Aston Martin: http://www.geekandhype.com/aston-martin-vanquish-10707/aston-martin-vanquish-8/


on
20/12/15
- Benedict Cumberbatch: https://uk.pinterest.com/pin/365917538447074238/ on 20/12/15
- Bag & contents: http://excusememan.com/travel-essentials-of-men/ on

20/12/15

- 50 Notes - http://
www.dreamstime.com/stock-image-50-pound-sterling-bank-notes-background-image21655701 On 20/12/15
- Businessman holding a phone: http://chadstutzman.com/?m=201308 on 21/12/15
- Man in Blue suit: http://www.goldcreatures.com/tag/midnight-blue-suit/ on 22/12/15
- Whisky: http://pressnews.ge on 22/12/15
- Underground map: http://diagrams.org/images/png/large/f00022.html on 22/12/15
- New York Skyline: http://www.jazzhostels.com/blog/15-the-new-york-city-skyline/ on 22/12/15
- The Moss Bros Logo: http://
www.clarksvillage.co.uk/wp-content/uploads/sites/8/2015/10/Moss-Bros-Logo_280x220pixels.jpg on the
22/12/15

27

ILLUSTRATIONS CONTINUED
Pg 8 (continued)- Nike Advert: https://uk.pinterest.com/explore/nike-ad/ on 22/12/15
- Passport: http://www.tonybaldry.co.uk/2014/06/12/advice-for-constituents-experiencing-passportapplication-delays/ on 22/12/15
- Spectre advert:
http://www.dailymail.co.uk/tvshowbiz/article-3230424/Daniel-Craig-s-sharp-suited-007-teases-fans-smou
ldering-new-TV-advert-Spectre.html
on 22/12/15
- GQ Cover: http://www.justjared.com/2012/07/17/joseph-gordon-levitt-covers-gq-august-2012/
22/12/15
- Pret a Manger: https://thekendz.files.wordpress.com/2014/05/pret-a-manger.jpg 22/12/15
Pg 22 Apple silhouette Advert:
http://www.creativereview.co.uk/cr-blog/2012/september/apple-advertising-too-simple-to-win-awards/
on 5/1/16
Pg 23 Apple Store 5th avenue: http://
makerbot-blog-old.s3.amazonaws.com/wp-content/uploads/2012/01/photo_fifthavenue.jpg on 5/1/16
- Samsung Store interior: http://

28

BIBLIOGRAPHY

Easey, M., Thompson, S. and Willans, J. (1995) Fashion Marketing. 1st edn. Cambridge, MA: Wiley, John & Sons.

(Easey, Thompson, and Willans, 1995)

Franzen, G., Goessens, C., Kappert, C., Schuring, R. J., Hoogerbrugge, M. and Vogel, M. (1999) Brands & advertising: How advertising effectiveness influences brand equity.
United Kingdom: Admap Publications.

(Franzen et al., 1999)

Holt, D. B. (2004) How brands become icons: The principles of cultural branding. Boston, MA: Harvard Business School Press.

(Holt, 2004)

Pg 6- http://allthingsd.com/20120803/apples-case-against-samsung-in-three-pictures/

http://www.macworld.co.uk/feature/apple/history-of-apple-steve-jobs-what-happened-mac-computer-3606104 /

http://content.time.com/time/specials/packages/article/0,28804,1873486_1873491_1873530,00.html

http://www.businessinsider.com/heres-visual-proof-of-just-how-badly-microsoft-blew-it-with-tablets-2013-5?IR=T

http://www.digitaltrends.com/mobile/camera-phone-history /

All Accessed on the 21 st December 2015

Pg 8 Blackberrys Mission Statement http://uk.blackberry.com/company.html on the 19/12/15

Pg 11 Blackberry Product range http://uk.blackberry.com/home.html on the 15/12/15

Pg12 Ethics http://us.blackberry.com/company/about-us/corporate-responsibility/supply-chain.html

Pg 20- Ethical information: http://us.blackberry.com/company/about-us/corporate-responsibility/supply-chain.html

Pg22- Iconic Adverts: http://www.macnews.com/content/silhouette-ipod-ads-receive-top-honors on the 14/12/15

Pg24- Where stores are located

on the 15/12/15
on the 15/12/15

29

REFERENCES
Pg 16- Market share data: http://www.marketwatch.com/investing/stock/bbry/financialsi accessed on
the 12/12/15
John Chen Objectives article:
http://www.theglobeandmail.com/report-on-business/blackberry-ceo-the-journey-has-just-begun/artic
le16125601
/ accessed on the 12/1/2016
Pg 20- Ethical information: http
://us.blackberry.com/company/about-us/corporate-responsibility/supply-chain.html on the 15/12/15
Pg 22- Holt, D. B. (2004) How brands become icons: The principles of cultural branding. Boston, MA:
Harvard Business School Press.

30

APPENDIX

Figure 1- Infograph created by


Emilie Hood on 14/12/15 on
http://www.easel.ly/create/?
id=https://s3.amazonaws.com/easel.
ly/all_easels/1347902/1449483475&
key=pri

Figure 2 Complete survey results


created with Survey Monkey.

QU.1

QU.2

APPENDIX CONTINUED (1)


Qu.3

FIGURE 2
CONTINUED

31

APPENDIX (2)
Qu.
5

Qu.3 Continued

Qu.4

32

APPENDIX CONTINUED (2)

Qu. 5
continued

Qu.6

33

Qu.8

Qu. 7

APPENDIX CONTINUED (3)

34

You might also like