Download - RIM | Marketing Plan 2012
Research in Motion
Market Summary
ABOUT RIM
• Research In Motion Limited (RIM) was founded in 1984 and is headquartered in Waterloo, Canada.
Company Products:
• BlackBerry smartphone portfolio
• BlackBerry Bold series, BlackBerry Torch series, BlackBerry Curve series, and the BlackBerry PlayBook tablet
• BlackBerry enterprise solutions
• Software development tools
• BlackBerry Messenger
• BlackBerry App World
MARKET TRENDS-USER TREND
• Internet page views (August 2012)
• Mobile phones - 9%
• Tablets account - 4.3%
• More than 114 million people in the US own & use smartphones & apps
• By 2014 -> 157.7 million
• Most important user characteristic - BEHAVIOR
• With increased usage comes the need for more power-efficient and flexible displays.
• The immediate trend in battery research is the wireless recharging ability.
MARKET TRENDS-USER TREND
• Materials used for smartphones - subjected to key factors: weight, durability and protection
• Graphene will make mobile devices be more resistant to damage, lighter and ergonomic.
• To unify experience across platforms, operating system providers converge their OS across multiple devices.
• Companies encourage employees to use their own devices -> more efficient by working in a well-known, familiar environment
• The increasing demand of smartphones is determining a series of user behavior alterations (e-commerce, hotel booking, etc.)
MARKET TRENDS-PRODUCT TREND
• Smartphone success - determined by:
• Hardware
• Software capability
• Intuitive user interface
• Variety of downloadable applications
• Strong user support from the developer community
• Vertical integration of devices
SWOT ANALYSIS-STRENGTHS & WEAKNESSES
Strengths
• operating system
• Privacy
• QWERTY Keuboard
• Blackberry App Store
• Battery life
• Brand Loyalty
• GPS
• Brand Image/Name
• BBM
Weaknesses
• Features
• Applications
• Technology
• Health Concerns
• Software
• Products
SWOT ANALYSIS-OPPORTUNITIES/THREATS
Threats
• Competition
• Consumer tastes
• Barriers to entry
• Unique Features
• Last chance
• Consumer expectations
Opportunities
• Blackberry 10 line
• Pricing
• Applications
• Cell phone industry
• Younger generation
• Marketing
• Competition
COMPETITORS - HARDWARE
• Apple
• Samsung
• HTC
• LG
• Motorola
• Nokia
COMPETITORS - SOFTWARE
Android 91.5%
iOS 57.3%
Microsoft Windows 140.0%
BlackBerry -34.7%
COMPETITORS - SOFTWARE
Key Software Factors
• ApplicationsTotal Available Apps in Market (as of 9/12)
• App Store - 700,000
• Google Play - ~700,000
• Windows Phone Store – 120,000
• Security• FIPS 140-2
CONSUMER INSIGHTS
Data source: Smartphone survey reporthttp://www.realtor.org/sites/default/files/reports/2010/smartphone-survey-report-2010.pdf
CURRENT FINANCIALS-PROFITABILITY
• Gross margin for its fiscal year 2012 has decreased
• Net Incomes decreased 10.8%
• Operating expenses increased 6.6%
• Heavily invested on Research & Development and Selling, Marketing and Administration. (the development of the Blackberry 10 line)
RIM Income Statement for Fiscal Year 2011 & 2012
CURRENT FINANCIALS-LIQUIDITY
• Strong liquidity with a large amount of cash on hand. (over $2.1 billion cash on hand as fiscal year 2012)
• RIM will have sufficient cash to push the launch of Blackberry 10 with an aggressive marketing campaign
• No debt and a portfolio full of patents
• However, if sales and profitability continue to decrease for the next year or two, the cash could be easily burned through quickly.
RIM Cash & Investments 2011 & 2012
Marketing Strategy
MARKETING OBJECTIVES
• “RIM is a company driven by ideas. We believe that innovation and collaboration will foster sustainable growth for our business.”
• Marketing Strategy
Young professionals
+1. Brand Awareness
2. Distribution
3. Market Share
4. Revenues
TARGET MARKET-PRIMARY MARKET
• Corporate and enterprise
• Existing target market
• Dominant Position
• Competitive advantage
• Secure System
TARGET MARKET-PRIMARY MARKET
• Consumer- the younger demographics. (Age between 16-34 years old)
• The biggest growth in smartphone ownership and usage
• Existing market share
• Brand Loyalty
Secondary Market-Parents of these young adults
FINANCIAL PROJECTION • Projected target results as follow:
• 2013 Target Overall Revenue Growth: 10%
• 2013 Market Share Growth: 2%
• 2013 Total BlackBerry Devices Sold: 55 Million
• Projected devices sold
In Millions 3-Mar-13% change from 2012
3-Mar-12% change from 2011
26-Feb-11
BlackBerry handheld devices sold 55 12% 49 -6% 52.3
FINANCIAL PROJECTION
• Projected increase of expenses
• Cost of Sales: 4% increase
• Research and Development: 1% increase
• Selling, Marketing and Administration: 10% increase
• Investment Income: 2% increase
• RIM Projected 2013 Income Statement
PRODUCT –POINTS OF DIFFERENCE
Caters to Both Sides of Life
• Is perfect for “BYOD”(Bring Your Own Device) • BlackBerry Balance
• Increased security
PRODUCT –POINTS OF PARITY
• New App store
• Touch screen phones
PRICE
• Research In Motion used to dominate the smartphone’s market.
• Blackberry sustained the business environment with a professional and secure data platform.
• The Blackberry 10 line is the company’s latest effort to regain its lost market share.
• Pricing and distribution strategies depend heavily on the product’s reviews and perceptions.
• The IT & tech market is very dynamic - It can easily launch a new product into space or drown it.
PRICE
• Best pricing strategy: rapid market penetration
• high promotion costs
• high competition
• RIM is launching a whole line of Blackberry 10 products => pricing strategies will differ from one product to the other
• Phone’s features and capabilities - main determinant in pricing range
DISTRIBUTION
• US carriers that offer special pricing plans (AT&T, T-Mobile, Verizon)
• Other specialty stores where trained staff answers customers’ questions (Best Buy, Wal-Mart)
• E-purchasing channels (Amazon.com, RIM.com)
• B2B - it’s very important that RIM is not dependent on third parties
POSITIONING
Position Statement
• To busy professionals who need to be wired 24/7, Blackberry is the phone that will provide them with the ability to work efficiently independently of location and time.
Action Plan
COMMUNICATION OBJECTIVES
• Communication Objectives
• Knowledge and Awareness
• Attitude
• Behavior/Action
• Communication Strategy
• Can you please pass me my Blackberry?
• Markets Share Focus
• Position Dominance
• Expansion
ADVERTISING
PHASE I
• Prior to the official Blackberry 10 line launching (November - December, 2012)
• Teaser
• Revealing
• Inform the public of the new technology available - informative advertising
• Generate higher brand awareness after a long period of decline
Phase 1Awareness
Phase 2Sales
Phase 3Retention and Reinforcement
ADVERTISINGPHASE II
• During the actual launching of the product (Q1, 2013)
• Introduce the highly anticipated smartphone to the market
• Intensive persuasive advertising campaign => generate liking, conviction and will increase the desire to purchase among the consumers
• Objective - increase sales
PHASE III
• April - August, 2013
• reminder & reinforcement advertising campaigns take over
• continue to stimulate and increase purchase
• reinforce the consumers purchasing decision
ADVERTISING - BUDGET
Promotional Budget Allocation by Type
Advertising; $346,920,000
Sales Promotion; $213,934,000
Public Relations; $14,455,000
Monitoring Controls; $2,891,000
2013 Total Marketing Budget $578,200,000
ADVERTISING – MEDIA MIX• TV - Nielsen
• Radio - Arbitron
• Print Media - MRI/Simmons/ABC
• Magazines
• Posters
• Online Display - Unique Visitors Per Month/Nielsen AdRelevence
• Online Magazines
• Blogs
• Outdoor (OOH) - Eyes On Ratings
• Billboards
• SEM - Google Adwords
IMPLEMENTATION CONTROLS
• Check the effectiveness of the 2012-13 3-phase campaign
• Dashboard
• Brand Awareness
• Advertising & PR impressions
• Click Through Rate
• Conversion Rate
• Leads generated
• Orders Generated
• Unit Sales
• Evaluation / Optimization
THANK YOU!