Business Marketing Plan for RIM - 2012

3. 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

4. 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.

5. 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.)

6. 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

7. SWOT ANALYSIS
-STRENGTHS & WEAKNESSES
Strengths
Weaknesses
• operating system
• Features
• Privacy
• Applications
• QWERTY Keuboard
• Technology
• Blackberry App Store
• Health Concerns
• Battery life
• Software
• Brand Loyalty
• Products
• GPS
• Brand Image/Name
• BBM

8. SWOT ANALYSIS
-OPPORTUNITIES/THREATS
Opportunities
Threats
• Blackberry 10 line
• Competition
• Pricing
• Consumer tastes
• Applications
• Barriers to entry
• Cell phone industry
• Unique Features
• Younger generation
• Last chance
• Marketing
• Consumer expectations
• Competition

9. COMPETITORS
- HARDWARE
•
Apple
•
Samsung
•
HTC
•
LG
•
Motorola
•
Nokia

10. COMPETITORS
- SOFTWARE
 Android
 91.5%
 iOS
 57.3%
 Microsoft Windows
 140.0%
 BlackBerry
 -34.7%

11. COMPETITORS
- SOFTWARE
Key Software Factors
• Applications
Total 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

12. CONSUMER INSIGHTS
Data source: Smartphone survey report
http://www.realtor.org/sites/default/files/reports/2010/smartphone-survey-report-2010.pdf

13. 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

14. 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

16. 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

17. TARGET MARKET
-PRIMARY MARKET
• Corporate and enterprise
• Existing target market
• Dominant Position
• Competitive advantage
• Secure System

18. 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

19. 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
BlackBerry handheld devices sold
55
% change
3-Mar-12
from 2012
12%
49
% change
26-Feb-11
from 2011
-6%
52.3

20. 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

21. PRODUCT
–POINTS OF DIFFERENCE
Caters to Both Sides of Life
• Is perfect for “BYOD”(Bring Your Own Device)
• BlackBerry Balance
• Increased security

22. PRODUCT
–POINTS OF PARITY
•
New App store
•
Touch screen phones

23. 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.

24. 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

25. 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

26. 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.

28. 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

29. ADVERTISING
Phase 1
Phase 2
Awareness
Sales
Phase 3
Retention and
Reinforcement
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

30. ADVERTISING
PHASE 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

31. ADVERTISING
- BUDGET
Promotional Budget Allocation by Type
Public
Relations, $14,
455,000
Monitoring
Controls, $2,89
1,000
Sales
Promotion, $2
13,934,000
Advertising, $3
46,920,000
2013 Total Marketing Budget
$578,200,000

32. 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

33. 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

34. THANK YOU!