Though Blackberry changed its name from Research in Motion to what it is now, the

company still strives to maintain an image of forward­thinking technology in order to place

itself on the forefront of the mobile security market.

Currently, Blackberry is facing a slump. It began the past decade as the go­to phone for

business professionals and government officials alike. It was sleek, and stylish, and found its

way into the pocket of every individual who was seriously perceiving a future of success.

Blackberry offered the professional world security and ease of mind as fleets of its smartphones

were protected by top­of­the­line security management. But as competition in the smart­phone

sector increased, Blackberry felt undue pressure to compete with market segments that it should

not have invested within, leaving them chasing a bone they could never catch. This left the

company lagging far behind its competitors, with sales plummeting around the world. Now

Blackberry finds itself struggling to find its position in the market. The key issues plaguing the

company involve misdirected marketing attempts, failed advertising, and non­strategic pricing.

Blackberry's strengths lay in its existing user base of 76 million individuals.

Unfortunately, these customers are not expanding, and as such, are not providing new means of

revenue of the company, leaving earnings stagnant. If anything, these previous customers are

simply keeping the company afloat as it attempts to hold on until it can infiltrate its target market

segments. In terms of features, it provides a physical qwerty keyboard, which is highly desirable

by most professionals who want to efficiently write emails or small briefs while on the go, or for

those who want to communicate quickly using the Blackberry BBM service, an instant

messaging service. It also still maintains a strong brand image in terms of the security provided,

which in the current age of internet cyber threats is highly desired. Their security services are

also available on all major mobile operating services, increasing the availability for consumers to

use the product.Its weakness involves its low level of innovation in its devices. Blackberry is not

seen as an innovator in the market as it’s competitors are, but as we will discuss later, this can

become its strength. The company also lacks a physical store where potential customers can

physically pilot the phone before purchasing, which diminishes the potential for attracting new

customers. And finally, without a full­scale application store, the devices lack the personality and

personalization of other phones. The large amount of competitors are a consistent threat to

Blackberry. However, it may find opportunity in increasing the amount of applications available

in its app market, and the increasing demand of smartphones worldwide. Also, as cyber threats

such as Edward Snowden and the NSA have demonstrated the vulnerability classified

documents, there has been an increase in interest in mobile security, a call which Blackberry is

fully capable of answering.

But what is going on with Blackberry’s competition? What are they doing to pull

customers away from Blackberry? In 2007, at the peak of Blackberry’s popularity, when it was

performing at its best, Steve Jobs brought forward Apple’s latest creation: The iPhone. It was

sleek, it was sexy, and it ushered in a new generation of smartphones available to the masses. All

of a sudden, Blackberry wasn’t the only solution when it came to smartphone needs. Due to its

introduction, the iPhone made previously “unique” functions standard across the mobile phone

market. However, this does not mean that Blackberry no longer provides a unique service to its

customers. But first, before we get to a solution for Blackberry, let’s look at some of its

competitors.

Looking at the cell­phone use of CEOs and World leaders, it is clear that there are two

major competitors to Blackberry currently: Silicon Valley based Apple and France based Thales.

Apple thrives in its marketing and advertising departments. Its ads are captivating and

powerful, and convince the target consumer that the iPhone is the only option for those looking

to pair clean design with personality and powerful applications. It also has strong and extensive

distribution channels. This has lead to a strong brand awareness which is highly desired around

the world. However, it does have its weaknesses. Though it began 2007 at the forefront of

mobile phone innovation, since the iPhone’s release, it has been slow to make any further

innovative progress. It also lacks any breadth in its product line, with few options for its

consumers to choose from. They are also not compatible with other operating systems,

effectively limiting its ability to form cross­platform partnerships with other electronic

companies, which is still quite the norm in the industry. In addition, Apple lacks a mature

security phone service, which prevents world leaders and CEOs from using the device for

official business uses Its current threats are an increase in competition from the large mobile

phone market, and looming lawsuits between itself and other companies over patent

infringements. Though they have been successful with with some lawsuits, any case they lose

cost them a significant amount of money, which they desperately need to maintain their

extensive research and development market. However, it may find opportunities in mergers and

acquisitions of companies to increase its market share. And with the increase of popularity for

wearable electronics, Apple may find a new opportunity to innovate.

Another company which is threatening Blackberry’s standing as a secure phone service is

the Thales Research group, and their new phone, the Teorem. The Teorem is a major

breakthrough in mobile phone security, offering the best security currently available. This

service is a huge draw to businesses and governments alike, with France already considering the

use of the phone. As cyber security becomes a greater threat, Thales will have an opportunity to

sell their phone to the most important people in the world. Yet, these services don’t quite

outweigh its disadvantages. Currently, they have a very limited market presence, and in turn,

little brand awareness. The phone has the antiquated design of a late 90’s flip phone, and lacks

the ability to do anything except make phone calls, and receive simple text messages. It cannot

email, and cannot effectively access a mobile browser, and it has a T­9 keyboard, a fate even

worse than a touchscreen keyboard. It finds threats within itself, as it is first and foremost an

aerospace company, which brings to question its ability to effectively maintain a phone

company, especially when there is already competition with well established companies.

Between these two companies, Blackberry can penetrate the market once again. If it can

convince the target market that is has the features and sleekness of the iPhone, with the security

of the Teorem, it will be able to gain a stable foothold in the mobile phone market.

Pricing/Promotion/Advertising

Pricing Strategy: Price products that are comparable with competitors, such as the Apple

iPhone, Samsung Galaxy, Nokia’s Windows phones, and Amazon’s fire phone. Top

product line at the premium price that includes all the features and top end that competes

with competitors. Also incorporate a cheaper product line that is a little below the

competition price with less features but still a quality product to reach the more

price­conscious consumers. We are trying to re­established the high­quality and

fashionable perception of blackberry, so it is necessary match competitors’ prices. For

example: Blackberry phones without contract cost about $100 less on average than their

competitors; we want to match competitors.

Why?

Promotion/Advertising:

What are you promoting? : Perceived security (the main point), business productivity, and

attractive design.

Bridge between security and style. In the company’s current state in addition to the current funds

in promotion and advertising, your company must devote some of the resources from R&D also

to P & A. This is because it is vital to resurrect the Blackberry’s brand image and awareness.

1. Re­establishing Brand Image and Awareness: Opening up Blackberry boutiques and

hosting conventions to refresh the brand to already established and loyal consumers,

along with attracting new ones. Do this for a while then end it, once things are back in

motion. Conferences and boutiques held in major cities and metropolitan areas with the

conferences focusing on brand awareness and information about Blackberry’s comeback

and plan to become competitive players in the industry once again. Boutiques aimed at

consumers to have hands­on experience and interaction with the product and even offer

for purchase with the presence of service providers at the boutiques.

2. After the conferences and boutiques, return to the distribution and marketing channel of

providing inventory to service providers, who sell at various retail locations and online

sales, blackberry’s website as portal to also purchase, and selling wholesale to businesses

with long­term contracts negotiated.

3. Methods of Advertising: Ads placed in top business magazines, newspapers, websites

such as The Wall Street Journal, Barrons, Bloomberg, the Economist.

4. Product Placement: Continue to incorporate blackberry’s product placement in tv shows

and movies concentrated in business and professional settings. Examples: House of Cards

and The Newsroom.

5. Media: Commercial spots, sports events, specifically affluent sports such as golf and

tennis

Recommendation

From our presentation, it is clear what Blackberry should do in order to ensure future

success in the mobile phone market. First and foremost, it must accurately choose and address its

target consumers. For Blackberry, we have identified business professionals and government

officials as the greatest potential customers. It should stop trying to sell its phone to the youth,

because the phone’s characteristics do not match the needs or desires of the young people, and

will not be able to unless the phone underwent large changes, which would be too costly to

perform. Once Blackberry has accurately targeted the correct consumers, it must then focus an ad

campaign that stresses the perceived security of Blackberry phones and their services available.

We have drawn up a potential magazine ad which we believe could be effective in differentiating

Blackberry from its competitors by emphasizing its security