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Melinda Baublitz | Taylor O’Neil | Anthony Cabrera | Maria Buitrago

PROMOTIONAL PLAN

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TABLE OF CONTENTSrepositioning

target

swot analysis

competitors

consumers

trade

sales force

other strategies

budget summary

competitor analysis

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REPOSITIONING

Blackberry has always been positioned as a communication tool for business, mostly

because of its more sophisticated security features that lend themselves well to guarding corporate information. The need for smartphones like the Blackberry arose from business needs to send messages, particularly email, on the go. Blackberry rose up to fill this need--a business product first and a consumer product second. The real mistakes that caused the downfall of Blackberry have been largely with the product itself, a disconnect between the needs of the consumer and what features Blackberry chooses to add on. Unfortunately, the role of the business phone is no longer Blackberry’s sole right; less attention paid to the needs of corporate consumers means a loss in market share, with many companies, like Bank of America, switching to Apple’s iPhone. In examining the competitor analysis worksheet, one can see

why Blackberry has fallen so far behind. In features that matter to consumers and businesses, Blackberry trails behind both iPhone and Samsung Galaxy phones: It has the smallest display, the least amount of storage, the least amount of talk time, and retails for a higher price than both other phones. Blackberry has fallen behind and seems archaic compared to the rapidly changing and adapting technology of other phones, whose manufacturers seem to have a much greater understanding of their target markets. One positive attribute of Blackberry phones, mentions Jeff Gadway, current senior manager for product marketing, is Blackberry’s nostalgic element.

“When you go into the focus groups, and you talk to customers about brands in the technology space, there are brands that don’t come up at all anymore. And then there’s BlackBerry. People have fond sentiments about BlackBerry. If people didn’t have that affinity

toward the brand, I would be challenged to really believe in what we’re doing. People want to see BlackBerry succeed.” In repositioning the Blackberry Z10, RIM should consider re-connecting with the original image of the “work phone,”and ultimately show business consumers that the Blackberry provides the benefits they need. What are these consumers looking for? A lower price than the iPhone, with features that solve their problems, like screen sharing and HDMI ports for connectivity to larger screens for presentations.

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TARGET

Since the BlackBerry Z10 is positioned as a more business-oriented mobile device, the target

audience we would like to reach includes upper level employees working for companies located in more urban settings and with more international projects and clientele. Many of these consumers fall within the 40-50 age range and have a mid to high-level income. As upper level employees, this target audience also serves as the primary decision maker in regards to choosing the Z10 as a company phone of choice. Due to the higher age range, this particular group has most likely had experience with BlackBerry products in the past and can attest to the strong reputation as a professional and business-oriented mobile device that BlackBerry had been associated with.

The buying motive for this particular audience is utilitarian. Due to the fast-paced world of business, our target audience wants an efficient and simple mobile device. Planning and productivity features within the phone are the most important to them, with less attention being given to more social and entertainment features. Features from the BlackBerry Z10 such

as screen sharing and micro USB and HDMI ports for connecting to external monitors or larger screens are significant features that differentiate it from other smartphones on the market and are considered beneficial in a professional, business environment by this particular target audience.

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SWOT ANALYSIS

weaknessesstrengths

opportunities threats• Partnership• Low Price• International Expansion• Government Expansion• Growth of tablet and smartphone market• Can strengthen position and capture larger

market share

• Market Share• Competitive Atmosphere• Inability to attract developers of apps• Decrease in Secondary Work Phones• Competitors (Apple/Samsung)• Sprint Refuse to sell Z10

• Security• Software (BBM)• Patents• Strong Brand Recognition

• Outdated• Losing Brand Loyalty• Unattractive designs• Strictly controlled apps

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COMPETITORS

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Blackberry’s top two competitors are Samsung and Apple.

Both companies have a strong presence in the smartphone atmosphere.Samsung is the world's largest manufacturer of mobile phones and smartphones fueled by the popularity of its Samsung Galaxy devices. Samsung is followed by Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker. Not only are both of these companies successful in production and manufacturing of smartphones and mobile phone, but they also have a strong brand loyalty. Apple’s high level of brand loyalty is considered unusual for any product and has been named the most admired company in the U.S. by Fortune magazine.

SamsungGalaxy 5S

StrengthsSamsung’s strengths are the integration of software and multiple styles and products to meet the needs and desires of multiple clients. Also, Samsung holds the top spot in market share and has been recognized by Energy Star, Smart Way, and Green Power as having eco-conscious and energy efficient products, a growing concern with consumers.

WeaknessesSamsung has a weakness in its loss of brand image due to infringement lawsuits with Apple. In addition, Samsung’s diverse product offerings and holdings could also become a liability by drawing focus away from phones and over to other products.

AppleiPhone 6

StrengthsOne of Apple’s strengths lies in customer loyalty, with the majority of customers who not only own an iPhone but also iMacs, iPads, and all their accessories. They are also known as an innovator in mobile technology. In addition, because of previous success they have high financial support and are known for their top-of-the-line quality and their great marketing skills.

WeaknessesThe loss of former CEO Steve Jobs poses a weakness. Many believe that without his ideas and leadership, the company may lose their touch. Also, the cost of Apple phones and accessories tends to be higher and can be a deterrent.

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CONSUMERSPR

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PremiumWith the BlackBerry Z10 positioned as a business-oriented, company mobile phone it is highly likely that companies who like this product would be interested in purchasing this particular model in larger quantities as opposed to just purchasing one phone. A premium in the form of “free” money that can be used to purchase apps would be an effective incentive for upper-level employees to choose the BlackBerry Z10 as their company’s phone . When a company makes the purchase of multiple (3 or more) BlackBerry Z10s as their company phone of choice they will receive a $150 gift card that can be used to purchase other BlackBerry products or features, such as Z10 phone cases or apps, at no extra charge.

Product Sampling & Free Trial PeriodMost consumers tend to be risk-averse and a product sampling event would be a great way to reduce the risk that comes with purchasing a technology based product. This sampling promotion would include an in-store point-of-purchase display with BlackBerry Z10s available to test out. In addition to testing the phone out, potential buyers can also sign up to participate in a free trial period where they can gain a more in-depth hands-on experience and really test the phone and all of its features out.

Trade-In EventAlthough BlackBerry experienced a bit of a decline in recent years they still have a relatively strong following. Loyal BlackBerry owners have remained with the brand due to the strong business-focused reputation BlackBerry has been able to remain associated with. In order to appeal to this group, BlackBerry would host a trade-in event where current BlackBerry owners can purchase the Z10 at a discounted price when they trade their older version BlackBerry in to their local BlackBerry store during a specific time period. This kind of promotion would show BlackBerry’s value to consistently loyal customers and would encourage them to stay with the BlackBerry brand in the future.

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TRADEcooperative

advertising allowanceswill incentivize resellers to carry Blackberry products by minimizing the cost of promoting the product to their customers. By decreasing resellers’ advertising costs with regard to Blackberry products, Blackberry will see more sales in a trade setting.

buying allowances

help to attract resellers by offering discounts to those who purchase the product. Buying allowances will specifically allow Blackberry to overcome its current reputation for lower sales by providing some financial reassurance to resellers in the form of a discount.

training

can help resellers’ staff become knowledgeable advocates for Blackberry products. Because of the current low numbers of Blackberry users, it is pivotal to provide outstanding customer service and support, so that end consumers feel comfortable with a less-used product.

special in-store displays

can help to attract reseller customers’ attention in stores and drive interest to the product. With in-store displays, Blackberry has total control over the design and feel of the display, which can help to secure consistency across resellers.

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SALES FORCESales Meeting

In order to revitalize the Blackberry brand, Blackberry needs to focus on developing ways to attract consumers and motivate their sales representative to sell their products. Blackberry could do this by hosting a company sales meeting that will both educate sales reps as well as acknowledge them for their sales performance. The Blackberry sales meeting will be held at the Omni La Costa Resort and Spa in Carlsbad, California.The sales meeting will be held during the month of January, and the Omni La Costa Resort is located only 30 miles from the San Diego, Airport. This sales meeting will give the sales reps the opportunity to increase their knowledge about the Blackberry product and increase their sales performance. Also by hosting a sales meeting, it gives the sales reps from different territories the opportunity to reconnect with one another and discuss different sales strategies.

Rewards SystemsIn addition to the Blackberry sales meeting, it would be beneficial for the Blackberry company to implement a reward system that would be based off the sales reps performance. Blackberry’s reward system should be based on an annual basis, and each sale rep will receive a reward based on their sales performance.

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OTHER STRATEGIES

advertisingThere are some additional promotions that would be appropriate to connect our target audience with the Z10. Blackberry could increase their brand image by focusing on advertising to promote the Blackberry Z10 product. Blackberry could maximize their advertising efforts by promoting the Blackberry Z10 through different social media websites. This approach would be appropriate for this product due to the increase in the amount social media users. In addition to promoting the Z10 through social media, it would also be beneficial for Blackberry to take more of a traditional approach and use television ads.

alternative marketingAnother option for Blackberry would be to use some alternative marketing programs to increase brand awareness. One idea for Blackberry would be to place more of a focus on buzz marketing. It would be ideal for blackberry consumers to pass along positive information to other consumers, but to guarantee word-of-mouth marketing Blackberry should sponsor consumers to promote the Blackberry brand. Taking this approach will be the most beneficial because it will have a greater impact on consumers compared to the impact of pad advertisements. Taking an alternative marketing approach is appropriate for Blackberry because of the decline in traditional media advertisements. Word-of-mouth marketing is also beneficial for Blackberry because it is cost effective and they can successfully reach their target audience.

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BUDGET SUMMARY

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COMPETITOR ANALYSIS