Thursday, May 21, 2015

Fear Sells...Fear Sells Not


“Fear, after all, is our real enemy. Fear is taking over our world. Fear is being used as a tool of manipulation in our society. Itʼs how politicians peddle policy and how Madison Avenue sells us things that we donʼt need. Think about it. Fear that weʼre going to be attacked, fear that there are communists lurking around every corner, fear that some little Caribbean country that doesnʼt believe in our way of life poses a threat to us. Fear that black culture may take over the world. Fear of Elvis Presleyʼs hips. Well, maybe that one is a real fear. Fear that our bad breath might ruin our friendships… Fear of growing old and being alone.”  - Christopher Isherwood, A Single Man

Fear is an emotional response to a threat. Fear appeals have been used in advertising to sell us all things from personal hygiene products, anti-ageing creams and children's car seats to ideologies and lifestyles.  This is because fear is a strong emotional response and some of us would do anything to remove a threat. Usually these ads portray the horrible medical, social and legal consequences of doing something such as DUI or not using a product such as deodorant;  ultimately, to encourage behaviour change and purchase.








We now live in a world full of uncertainty. At any moment, bad things can happen; terrorist attacks, wars, tsunamis, economic recessions, data leakage, etc. The truth is that most of us have, more or less, similar insecurities and fears. That's why marketers can successfully point them out. But what matters the most is hitting the level of fear that effectively leads to persuasion for most of our target audience (called optimal level of fear). And that's not an easy task, because there are many factors that influence our emotional response to a threat, such as our age and the way we perceive a threat. For example, the strongest threat (i.e. death compare to disability) does not necessarily evoke the strongest fear response (and therefore, persuasion and behaviour change).  That's why before using fear appeals, marketers study how fear operates in a particular situation, starting by understanding what their target audience fear the most. 

Understanding the audience is the first step to success in advertising and this is no exception. Marketers take a close look at the market. They know what we feared yesterday might not be what we fear today. For example, I notices a change in trends for deodorant ads. While before, they were selling using fear appeals, they have now taken a different approach. Take a look below.

The fear of being called stupid and weirdo convinces us to buy Old Spice.

But as deodorants are most widely used now more than ever, expanding the total population of category users (by attracting new customers to the market) is not a profitable enough option. How many of us don't use deodorant? Not that many. And fear appeal doesn't do the job of convincing users to switch brands. That's when Axe gets creative and introduces the Axe Effect.






The relationship between fear and persuasion has always been ambiguous and scholars can't agree whether the relationship is linear or curvilinear. I believe the fear-persuasion relationship is far too complex to fit into either category. We know that sometimes when we fear something too much or too little, we choose denial and message avoidance as a coping mechanism. We also know that apart from the perceived severity of the threat (which is different for everyone), other factors such as the perceived likelihood of it occurring, the perceived effectiveness of the proposed solution in removing the threat, and the perceived difficulties of behaviour change (i.e. losing weight, purchasing a product, calling a taxi instead of DUI) play a role too.

In his article, Social Marketing and myths of appeals to fear, Herbert J. Rotfeld gave an example that illustrates this complexity further. He compared the Australia's traffic accident campaign aiming to promote safe driving practices with a very similar campaign in New Zealand. The latter one failed to make any major changes, even though it was more graphic and gruesome than the Australian campaign. The reason was the minor differences in the core message of the campaigns. The Australian campaign suggested that "you will definitely get caught if you break the law", that there are hidden speed cameras and you can be stopped at any time and location. Also, the Australian laws were painted as less forgiving. The New Zealand campaign on the other hand, suggested that there were speed camera signs, and that drivers could only be stopped at certain locations and could only be fined (rather than losing their licence). In this case, the fear of legal consequences was more persuasive that the fear of death, as silly as it sounds. In another example, Herbert Rotfeld argues that the fear of not being attractive to the opposite sex because of bad breath is more persuasive among teens than the fear of getting lung cancer caused by smoking.





Fear appeals have probably been the most used and least effective tool in public health advertisements. Punam Keller made some really interesting conclusions in her research paper, Social Marketing and Healthy Behaviour. She suggests that the evidence shows that fear arousal had virtually zero effect when there is no or little information provided about coping response. As a matter of fact, in such cases, fear arousal will not only not help but will backfire and may even lead to unhealthy behaviour. It means that in the absence of a realistic and convenient solution to a health problem such as obesity, we're not going to respond to our fear, or better said, we're going to respond to it by doing nothing. Preparing healthy food can be difficult, time consuming and costly, so no matter what they say, you're not going to do what you don't know how to do. 

Fear might be a strong emotional response but so is greed. Fear tells us not to have an ice cream while greed tells us to have another one. Let me finish up by a picture of a belly over an ice cream cone. I have to admit that ever since I came across this ad about 9 months ago, I haven't had ice cream on a cone, only on a stick. J


French Ministry of Health ad against obesity



Blackberry #4: Media Planning

Past Approaches:

-     Blackberry’s first SuperBowl ad for Z10 in 2013: This ad was a manifestation of Blackberry’s under-developed positioning strategy and communication objectives. In this 30 second ad which was aired on Feb 3rd on Television, a 20 to 30 year old model in casual clothing is walking down the street and is playing music on his Z10 phone when he suddenly is on fire and grows elephant feet and then turns a truck into rubber ducks. The slogan in this ad is “30 seconds is quicker to show you what it can’t do”. 

With no proper demonstration of the phone’s functionality or the target market, this 4 million dollar ad flopped with only 4% recall rate. An average recall rate of the actual brands of SuperBowl commercials is 14% while 57% of viewers can recognize the ad. (Media Life, 2013)


In the previous report it was determined that Blackberry was suffering from low brand awareness. Advertising through mass media and especially in a marketing event such as SuperBowl with such huge coverage was the best chance for Blackberry to increase its’ brand awareness but Blackberry probably missed the ball. Overall, the idea of mass media advertising was clever but it turned out to be ineffective as it was not well-executed. 

- Movement towards a more product-oriented advertisement: Blackberry now spends fewer resources on celebrity endorsement and mass media brand advertisement and is more product-focused in its’ advertisements. This change in Blackberry’s advertising strategy is a result of the changes that they have made to their positioning strategy. 


When Blackberry used to target the entire market of smartphone users, their advertisements were less informative and more visual and brand-oriented. It was not until they narrowed down their target market to professionals when their ads were more about the functionality of their products than the fashionability and the brand. It was a natural move for Blackberry as their brand equity has dramatically decreased. 

- Decrease in their ad spending as a result of their fragile financial position: Competitors’ has been over-shadowing Blackberry in mass media. In 2012, BlackBerry spent $41.3 million on advertisement, while its’ main competitors, Apple and Samsung each spent more than $333.4 million and $400 million, respectively. (Cheng, 2013) 

While brands such as Apple and Samsung aggressively advertise their products on television, Blackberry does not have the financial resources to match their coverage. Instead, Blackberry’s presence has been more through print ads in magazines, social media and reliance on the support of the carriers. This will be further explored. 


Current Media Objectives:


-       Choosing the right media vehicle: Blackberry is targeting the niche market of powerful professionals who can afford and are willing to purchase a high-end smartphone like “Passport”. This market is very small, is busy and is proved to be more critical of the content of the ads they are exposed to (MillwardBrown, 2009) and because of their busy lifestyles, they do not have much time on their hands. 

We are aware that this target market includes hard-working professionals, who travel a lot and value productivity above anything. They probably do not watch a lot of daytime television. To them, time is money. Therefore, when advertising a specific product (rather than the brand), mass media such as television might not be the best media vehicle to target these customers, not to mention it is extremely costly. Blackberry has to select a media vehicle that this market is most exposed to first, before trying to communicate with them. This is when the consumer media consumption analysis and lifestyle analysis significantly influence the choice of media vehicles to be used. 

According to Mark Wilson, senior vice president of Marketing, their target market for Passport only constitutes 6 to 7 percent of the smartphone users.(Cheng, 2014) Marty Beard, BlackBerry Chief Operating Officer, hoping to attract half of this market, stated that if “they target this market, they will be very profitable.” (Cheng, 2014) Blackberry executives showed concern about the lack of carrier support that they receive because of Blackberry’s struggles with low brand awareness, which brings us to the next point. (Cheng, 2014) 

- Brand Awareness: In the previous reports, it was revealed how Blackberry suffered from low brand awareness. Mass media, because of its huge coverage, can potentially be a good choice for Blackberry to show the world that they are back again. However, when using mass media, Blackberry must be fully aware that mass media is better to be used for brand awareness and that they probably will not reach the niche market of wealthy professionals to sell their high-end smartphones to, unless, it is smartly executed. 

- Brand Attitude: As discussed in previous sections, Blackberry deviated from its’ original overarching marketing strategy which was to target professionals only and moved towards targeting mainstream smartphone users in the past. This damaged the attitude customers had towards the brand. One of the current media objectives of the company is to regain its’ positive brand attitude. This can be achieved by focusing on productivity and functionality of devices in the advertisements and creating positive emotions towards the brand. 

- Brand Trial: Consumers can purchase “Passport” from Blackberry website and Amazon. The extent of carrier support that it will receive is not clear yet. In the previous report, it was determined that Blackberry’s over-arching marketing strategy is to attract smartphone users from other brands such as Apple and Samsung. In order to persuade consumers to try the brand, Blackberry has engaged in a very unique sales promotion called the “trade up” programme. 

Blackberry will pay $400 in cash and $150 in gift card to anyone in the US or Canada who trades in their iPhone 4S, 5, 5C, 5S or 6 for the new BlackBerry Passport handset. The programme will end in February 13, 2015. (Hansen, 2014) This approach is very unique in nature; I can only imagine how much an average iPhone user spends on smartphone in their lifetime that this promotion is deemed profitable for Blackberry to undertake. 

Going this far to steal customers from Apple in the daylight is very ambitious. Unlike Carl Simard of Medici, who called this “a desperate act” (NDTV gadgets, 2014), I believe this approach is not so inappropriate for Blackberry considering its fragile competitive position in the market. Had it been Samsung, I would have had a different outlook. This promotional offer has been so controversial and talked about on the internet that Blackberry did not need to do much advertising to communicate it with iPhone users. I am very eager to see the outcome. 


 The Media Mix:



Blackberry uses different media vehicles for different purposes. It has presence in most media classes, however it has particularly high presence in print media, newspapers and magazines and social media, and less presence in television and radio. In this section, two different media vehicles used by Blackberry are briefly discussed and recommendations are made on Blackberry’s future approaches to media planning. 

Recently, Blackberry has been having great presence in print media and specifically Canadian newspapers. (See the ad below)

Current Blackberry ad in Canadian newspapers

The ad reads: 
“At BlackBerry, we're proud of our Canadian heritage. It's what drives us to continuously push security and productivity boundaries, allowing those with unstoppable energy to work smarter, collaborate better and accomplish more. The soon-to-be-released BlackBerry Passport is further proof of our commitment to serious mobility for serious business.” 

The ad is made with the purpose of increasing brand awareness and brand recall, and preparing the Canadian market for the launch of Blackberry Passport. It evokes national pride and creates a positive brand attitude. The ad is very product-focused, a great portion of the information provided in the ad is dedicated to describing the product attributes. The incomplete picture of Passport in the ad along with the general information provided suggests to me that this is not a serious attempt to persuade the professional market to purchase the device and it is rather targeted at the public with the purpose of brand awareness. 

It was previously mentioned that high profile business people tend to travel a lot for business. Blackberry seems to have recognized that. It engaged in outdoor advertising by setting up large video walls in an airport in New Delhi. (Ali, 2014)

Passport video walls in New Delhi airport


Recommendations:



It is recommended that Blackberry carries out a thorough and detailed media consumption analysis of its target market and monitors their response, their recall rate and reach over time to evaluate the effectiveness of its media plan. 

Blackberry’s main competitors, Apple and Samsung, as mentioned have a large presence in mass media, particularly television. Considering Blackberry’s niche target market and financial position, it is highly recommended that Blackberry avoids going head to head with its rivals in mass media advertisement and rather invests in other media vehicles that its’ competitors have less share in. For instance, Apple has 66% share of voice in network television and 71% of its’ media mix is made up of network television. (Smith, et al, 2013) 

For Blackberry to try to send its message across to its “niche market” through media vehicles that are dominated by powerful market leaders is too risky if not impossible. First of all, Blackberry will not have the adequate financial resources to have nearly as much presence in television in the near future. Second of all, even if it could afford to, these media vehicles are way too cluttered for Blackberry to reach its target market. The only way for it to do that is to compensate for the clutter by increasing frequency and wait a while to see the results. Lastly, this media vehicle might not be the best option for Blackberry’s target market. This target market is very selective on what they watch. It might include the news, popular sport matches, etc. (Smith, et al, 2013) I believe secondary media such as newspapers, magazines, posters and direct mails are better ways to reach them. 

Blackberry’s target market is expected to read newspapers and magazines (like The Economist, Bloomberg BusinessWeek, New York Times, etc) on a daily basis. They are expected to drive through high-traffic areas (such as Times Square) and are therefore exposed to outdoor advertising (such as billboards). Overall, it is recommended that Blackberry to reduce its advertising on television and rather spends its budget on print media and outdoor advertisement. These media vehicles are proved to be more effective in targeting professionals. (Smith, et al, 2013 and MillwardBrown. 2009)

References:



Ali, Shahzoor. 2014. Huge Blackberry Passport Advertisement At New Delhi Airport. India’s best Blackberry community. Retrieved from: http://www.bbin.in/2014/10/huge-blackberry-passport-advertisement-new-delhi-airport/ 

Cheng, Roger. 2014. Blackberry hopes love it or hate it Passport earns it a second chance. Cnet. Retrieved from: http://www.cnet.com/news/blackberry-hopes-love-it-or-hate-it-passport-earns-it-a-second-chance/ 

Cheng. 2013. How BlackBerry is fixing its once 'broken' brand. Cnet. Retrieved from: http://www.cnet.com/news/how-blackberry-is-fixing-its-once-broken-brand/ 

Hansen, Matt. 2014. Blackberry is paying iPhone users to switch to the Passport. TechRadar Phones. Retrieved from: http://www.techradar.com/news/phone-and-communications/mobile-phones/blackberry-is-paying-iphone-users-to-switch-to-the-passport-1274490 

Media Life Magazine. 2013. Retrieved from: http://www.medialifemagazine.com/study-few-recall-super-bowl-ad-brands/ 

MillwardBrown. 2009. How best to market to business professionals? Retrived from: http://www.millwardbrown.com/docs/default-source/insight-documents/knowledge-points/MillwardBrown_KnowledgePoint_MarketToBusinessProfessionals.pdf 

NDTV gadgets. 2014. BlackBerry Courts iPhone Users With Hefty Cash Offers. Retrieved from: http://gadgets.ndtv.com/mobiles/news/blackberry-courts-iphone-users-with-hefty-cash-offers-626006 

Smith. Lee. Jorge. Blackberry 10 Media Plan 2013-2014. Retrieved from:http://www.isamuel.com/wp-content/uploads/2012/12/Media-Plan-Final-Spreads.pdf


Tuesday, May 19, 2015

Blackberry #3: Creative Strategy


Creative Strategy Alternatives


Blackberry’s current positioning strategy is focusing on end benefits, product attributes, use and application such as functionality which includes big screen, physical keyboard and therefore easy typing experience. Blackberry’s advertisements are usually focused on these attributes. According to reviews, “Passport” scored high on functionality attributes and moderately on design and other factors (such as brand equity). Here, we briefly review the company’s alternatives for its’ creative strategy.

Smartphone market is a mature market and competition is intense. Therefore, generic strategy would not work as Blackberry cannot adequately differentiate its products from competitors'.

Pre-emptive strategy would not work either as smartphone market is a well-developed and growing market and products can be differentiated from each other in many different ways, such as physical attributes, user experience, functionality, etc. 

Blackberry has widely used Unique Selling Proposition strategy in the past. For instance, it has focused on the benefit of the products such as fast browsing and connectivity in its’ advertisements. Using USP makes sense as smartphone is a well developed product category with high technological level.

An example of Blackberry using USP

Another example of Blackberry using USP

Brand Image strategy was particularly used by Blackberry in its heydays when Blackberry was treated as a trademark. The “Be Bold” campaign is a good example. Not much information is provided in the ad and the Blackberry’s logo is very pronounced in the black background. The focus is on the psychological benefits that customers will receive by following the fashion trend and buying a then-stylish Blackberry. This strategy is not viable today as Blackberry has ever-since lost its brand equity. 


An example of Blackberry using Brand Image strategy in its’ heydays


Later on we will see that Blackberry’s current creative strategy is Positioning Strategy which is believed to be the best strategy to attack a market leader through direct comparison advertisement.

Current Creative Strategy


Upon launching Passport, Blackberry has adopted a different creative strategy compare to its previous strategies. The ads are unique in their nature, and effectively communicate the message with the target market in a matter of seconds. 

Blackberry has managed to address its marketing communication issues- such as its’ unfocused target market, its’ focus on functionality or style dilemma, it’s dilemma regarding the orientation of the advertisements and whether they should be "informative" or create a positive “feeling”, etc- all by clearly demonstrating which target market they are aiming for. As mentioned in the last part, they are currently targeting the professional sector who value functionality above anything else. The ads score high on the relevance. They capture the target audience’s attention instantly through the pictures, and generate critical brand associations through specific cognitive response (rather than emotional response). Blackberry ads’ relevance is aligned with and support the brand positioning strategy. (See the below picture) 

The novel characteristic of the ads is the comparison it makes between a smaller smartphone and Blackberry’s new smartphone, Passport. In an amusing and memorable way, they demonstrate the limitations of the smaller device. The ads are highly visual; however, they are simultaneously informative too. No other smartphone brand has ever differentiated itself on having a bigger size and the visual benefits that come with it. In the past, this desired product attribute has been usually associated with the tablet market and smartphone manufacturers were often focused on offering thinner and more delicate devices than competitors'.



Blackberry’s current ads for “Passport” 


Passport is one of the largest smartphones in the market. The message that “seeing the bigger picture is beneficial” is easy to digest and specific to the target market. The ads keep a balance between visual creativity and message delivery and because of that, the message easily breaks through the clutter. The idea behind the ads is novel but yet does not require long consumer processing time. It engages the audience by inviting them to make a comparison between the two devices and make a decision on which one is better.

Massage Appeals:



In the last report, it was established that Blackberry’s target market constitutes mostly enterprise users and that the consumers can be categorized as favourable brand switchers. For Blackberry to encourage these smartphone users to try the device, it needs to be clear on how and why consumers would be wanting to purchase the product. It needs to either satisfy users’ current needs or create a need that can be satisfied by the product attributes. The main consumers’ need that is addressed by Blackberry Passport include: 

- Seeing the bigger picture: Blackberry’s current slogan is “see the bigger picture”. It cleverly indicates the key benefit of the product- the wide screen- and differentiates the product from smaller smartphones on the productivity level and therefore, evokes positive feeling towards the brand. For instance, a one minute video ad of Blackberry shows some serious looking 30 to 50 year old professionals that use Passport to make business decisions and a healthcare professional that diagnoses a serious disease of a patient in an emergency situation by seeing the full x-ray picture on his Passport.[1]

The creative theme for Blackberry, as mentioned before, has not always been consistent across all parts of the promotional program. Slogans that the company have used in the past include “Get closer, get smarter”, “Now, fashion and function play nice” and “Some customers will need more than just one”. This inconsistency reflects the lack of clarity in brand positioning strategy that Blackberry struggled with in the past. 

Blackberry's ads practice rational appeal and more specifically, comparative appeal. The smartphone next to Passport in the ads resembles an average smartphone in the market, but “coincidentally” it also looks almost identical to iPhone and Samsung Galaxy, two of Blackberry’s biggest competitors. The comparative message is quit literal. Studies show that recall rate is higher for comparative than non-comparative messages. The ad engages iPhone and other smartphone users as they try to figure out why there is a picture of their phone in a Blackberry ad. iPhone’s size was an easy attribute to attack. No counter-argument can be made against Blackberry Passport being bigger than iPhone. Had Blackberry attacked other features of Apple’s products (such as security, stylishness and design, brand, etc), iPhone-users would have taken the advertiser’s claims with a pinch of salt. This would have lessened the credibility and therefore likability of the ad. 

I noticed a connection between this ad and Blackberry’s current promotional efforts to sell Passport. Blackberry is offering iPhone users $400 cash prize and $150 gift card in exchange of them giving up their beloved iPhone and switch to Blackberry Passport. (Hansen, 2014) This might be over the top but it can be justified as Passport is in the introduction stage of the product life cycle and needs help to penetrate the market -unlike Apple which has reached maturity to my opinion.

Copywriting Highlights:


Blackberry's new ads have a relatively consistent layout. The headline of the ads- “Examine Wide”, “Go Wide”, “Work Wide”- however short, is strong enough to give clues about the main theme, appeal and proposition of the ad. The comparative ads are highly visual rather than verbal. Very few words are used in these ads with basically no body copy. However, in non-comparative ads for Passport, more information is provided about the product and the brand is typed in a much larger font-size. The small font-size of the brand in the comparative ads reinforce the fact that Blackberry is a recovering brand and rather position itself by the end benefits of its product than by its’ brand name. Blackberry’s brand has been damaged in the past few years; it has lost its brand recognition to some extent. The last thing that Blackberry should do is to try to differentiate itself based on its' brand in comparative-style ads.


The layout of Passport’s current print ads in magazines and newspapers




Blackberry’s choice of colour, font type, font size and position of the logo was different prior to the launch of Passport and has evolved throughout the years. 


Blackberry ads used to have a different layout prior to Passport



[1] https://www.youtube.com/watch?v=XnzLBn0TzBg



References:

Hansen, Matt. 2014. Blackberry is paying iPhone users to switch to the Passport. TechRadar Phones. Retrieved from: http://www.techradar.com/news/phone-and-communications/mobile-phones/blackberry-is-paying-iphone-users-to-switch-to-the-passport-1274490

Blackberry #2: Communication Objectives


Consumer Behaviour Analysis


Generally, buying a phone requires a high level of consumer involvement in the decision making process, as consumers already have some knowledge of the brands. Especially, smartphone users are very knowledgeable of the apps, features and the specification of the products. Therefore, the brand differences are high in the mind of consumers. 

The functionality of the product is not the only factor consumers are concerned about, cell-phones, like fashion items, are purchased for their design and are used for different purposes (professional and personal). Another significant change in the market is that people in medium income level are spending a bigger portion of their discretionary income on electronic gadgets and smartphones. 

In terms of frequency of the purchase and the cost, although the buyer often doesn't need to pay for the phone upfront, the long term contracts with the service provider (usually 2 year long contracts), make the purchase a long term investment. A study in 2011 revealed that Americans (Blackberry’s main market) change their cell-phones the most often, compare to other nationalities, with 21.7 months intervals. (Phone Arena, 2011) Therefore, although cell-phones are not purchased very frequently, there is a huge benefit in retaining customers (first time users) of the products. 

As it was mentioned in the last report, Blackberry has two main target market, Consumer market and Business market. I would describe Blackberry’s consumer market as “favourable brand switchers”, who purchase a Blackberry but also purchase other brands (i.e. iPhone, Android) as well.  

On the other hand, I would describe the business buyers as more brand loyal and less price sensitive. They purchase the product less frequently but in larger scale, therefore are very profitable. As it was mentioned in the last report, security and ease of use were the two most valuable attributes of the product in the eyes of business users. This market sees better security, a better typing experience and better battery life in Blackberry and these qualities appeal to them. (The Globe and Mail, 2013)


Past Communication Objectives


Business buyers and consumer market have different values, wants and needs. While enterprise users desire a reliable, secure, easy to use device with email functionality, the young consumer market are looking for a fashionable, funky device with cool apps. These differences between the two resulted in an inconsistency in Blackberry’s marketing communication objectives. 

Through its ads and campaigns, in an attempt to communicate with both target segments, Blackberry sent two different messages across (or a combination of two), focusing on different attributes of the product that were appealing to each market. For example, the following ad (mainly for Blackberry accessories) aims at the already brand users to make a repeat purchase. It states “some customers will need more than just one”, attempting to create a positive attitude towards the brand with focus on the variety in colours and its stylishness. 


Another example would be the ad below. The ad states “Be bold. Accept no substitutes. Power the passions you pursue with a smart phone that expresses your style and simplifies your life.” 


Again, it is aiming at the current customers to increase the repeat purchase rate. It also encourages other brand switchers for trial by sending a comparative message (“Be bold”) and focusing on the stylishness and ease of use. In this ad, however, Blackberry makes a brief and indirect reference to the professionals by emphasizing the usefulness of the devise in pursuing their careers. 


In the next ad, Blackberry almost only talks to the enterprise users with no reference to the stylishness of the product. It focuses on the connectivity and user-friendliness of the device with a list of its features. The ad reads: “Join the conversation. Get closer, get smarter. Accessible, slim, Easy-t-use.” The ad encourages trial. 


In this ad, Blackberry makes an attempt to communicate with both of their target market by stating: “Now, fashion and function play nice.” with a list of features and functionality of the product. It looks as if they are targeting new category users as the ad has more content, is informative and is trying to expand the brand knowledge that the target customers have of Blackberry. 



Overall, because of the complexity in its segmentation, Blackberry had too many behavioural and communication objectives which resulted in an inconsistency in their messages. While some ads create awareness and brand knowledge, most ads attempt to create a liking or preference. Some Blackberry ads attempted to emotionally engage the users/ex-users. For example, in a video ad for Blackberry Z10, which was a failed comeback attempt for Blackberry to target consumer market, the device was used to connect and facilitate the communication between two generations of older professional parents and their teenage (or twenty something year olds) kids representing Blackberry’s past and present users. [1]

Blackberry invested heavily in a Super Bowl ad to promote Z10 in 2013.[2] The next year, however, Blackberry’s revenue went down by 38%. (Wasserman, 2014) The ad was specifically targeting young people (20 to 30 year olds) and focused on personal uses of the phone (personal phone calls, personal uses of the phone’s camera, playing games, etc). This, I believe, was the main reason that resulted in the failure. They failed to target the business market, they rather targeted the consumer market. Robert Glen, BlackBerry's senior director of global brand marketing, admitted that: 

“I think we tried to bite off too much. We tried to attack the full market, and a good military commander would say choose best area for competing, look for a beachhead” (Wasserman, 2014) 

Also, Blackberry's ads target the Blackberry users or ex-users rather than new category users or favourable brand switchers which suggests that Blackberry is looking to retain its users or win back its previous consumers from competitors. According to Forbes, a survey revealed that during the first two months of 2013, 34% of BlackBerry owners who plan to purchase a new phone in the next six months say they will stay with BlackBerry rather than switch to another brand (compare to 17% for Apple). (Forbes, 2013) 

With emergence of smart phones, Blackberry's main mission was to convince Smartphone users that their products are not only limited to PDAs and that they are capable of making a decent smartphone. Their “Best of both worlds” ads tried to attract the first time Blackberry smartphone users. However, low market share, Buzz score and purchase consideration in the smart phone market shows that the users were not exactly convinced. (Wasserman, 2014) 


Current Communication Objectives:


Blackberry has been experiencing some new highs recently. Blackberry’s new phone (Passport) became a success and sold out in just six hours on BlackBerry’s website and within 10 hours on Amazon.com. John Chen (current CEO) has proudly announced that they are having inventory issues. (Business Report, 2014) Though I have been very skeptical about John Chen’s strategy to pursue the enterprise market and “return to the company’s core strength in enterprise and security”,with current information on the market response, it  has proven to be a smart move. 

According to Chen, the consumer market is not a space that they can afford to be in. On the other hand, the new phone that they launched was a success in the enterprise market. The passport-size smart phone is designed for business users who write e-mails, study spreadsheets and read documents on their phones. The physical keyboard on the phone made the typing experience a lot easier. BlackBerry is once again, but this time solely and more aggressively, focused on the 30 percent of the market “that sees their phones as a tool, not as an entertainment portal.” According to John Chen, Blackberry is not trying to be “sexy” anymore. (Business Report, 2014) 

The followings are the ads for Blackberry’s latest smart phone, Passport. The ads focus on the capabilities of the phone, targeting professionals in healthcare and other industries. They aim at new users as well as brand switchers by sending a comparative message that Passport is easier and more efficient to use compare to competitors' products and focus on professional uses more than personal uses. They create a belief that the wide screen of the phone is a differentiating factor that makes the product superior to competitors’.







The new marketing communication objectives of Blackberry can be summarized as: 

- Leaving the consumer market to focus on the business market. 

- Focusing on what differentiates the product from competitors’ which is the productivity, ease of use and practicality of the device by design, this is aligned with business market’s needs and wants. 

- Targeting new users as well as brand switchers. 

- Creating a positive attitude towards the brand and increasing brand awareness and consumers knowledge of the brand, through informative advertisement. 


Surveys show that Blackberry’s Buzz score and purchase consideration fell every time Apple introduced a new iPhone (Wisserman, 2014), therefore, it is suggested that Blackberry advertises more aggressively at the time of the launch of Apple’s products.

Rationale for their current objectives:


Blackberry, originally, served the business segment, but with recognizing the potential that the younger segment (< 25 years old) had, they expanded their marketing strategy to appeal to this segment too. However, they failed in keeping this segment interested for different reasons. Firstly, Apple took the consumer market by storm in 2007 by offering an iconic design and entertaining apps. Google Android phone also, took the second position in the market share in smartphones market. Blackberry made inadequate effort to secure a position in smartphones market and rather decided to rely on the PDA market which was appealing to the business users. 

Over time, business users’ needs shifted from PDA to smartphone. As a result, Blackberry lost a major portion of their business market to competitors who were more successful in the smartphone market. In the meanwhile, Blackberry brand has a corporate stigma associated with it as it originally was very popular among business users for its security, connectivity, reliability and ease of use. The company, however, can benefit from this reputation and win back the business market, their most loyal users, by offering a smart phone which is specifically tailored to their needs. There is no other smart phone manufacturer that is specifically and only targeting the business market. 

Blackberry’s major competitor is Apple in this segment. Therefore, by differentiating itself from Apple through offering product attributes that are valued more in the business market, Blackberry can win the game. This is what John Chen is trying to accomplish through launching Passport and advertising it smartly. 

Blackberry’s new strategy in terms of communication objectives is right on point. Buying a smart phone is a relatively complex decision making process as individuals are very knowledgeable about the brands and their offerings. Therefore, Blackberry has to create a belief that their product is superior to competitors’ to get potential users to buy their product.

[1] https://www.youtube.com/watch?v=BLRXUARm3kA 


[2] https://www.youtube.com/watch?v=dY1ecfWT3GQ 


References:

Victor, H. 2011. Phone Arena. Retrieved from: http://www.phonearena.com/news/Americans-replace-their-cell-phones-every-2-years-Finns--every-six-a-study-claims_id20255

Business Report, 2014. BlackBerry: Passport phone beats forecasts. Retrieved from: http://www.iol.co.za/business/companies/blackberry-passport-phone-beats-forecasts-1.1766994#.VExIRbDF9IF

Forbes. 2013. BlackBerry Gaining Back Ground on Ad Awareness while iPhone Purchase Intent Slips. Retrieved from: http://www.forbes.com/sites/brandindex/2013/03/13/blackberry-gaining-back-ground-on-ad-awareness-while-iphone-purchase-intent-slips/

The Globe and Mail, 2013. Retrieved from: http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/growth-investing/observing-consumer-behaviour-can-be-key-to-savvy-stock-picking/article13704092/

Wasserman, Tod. 2014. Mashable. Retrieved from: http://mashable.com/2014/10/19/blackberrys-turnaround-plan/

Blackberry #1: The Rise & Fall...(and possibly rise again?)


Research in Motion was a Waterloo based company established in 1984. It was a manufacturer of popular Blackberry mobile phones and the enterprise server required to support the communication system for Blackberry users. Blackberry was very popular among enterprise users and professional individuals up until 2009, with major portion of their market located in the US. (Gustin, 2013) In January 2013, following a collapse in its market share, Research in Motion was rebranded to Blackberry, its' signature product. (Zeis, 2013)




Competitive Position:


- Product & Market Segment



Blackberry has been described as a combination of a PDA with a cellphone which included mobile internet and Email. The email functionality and constant connectivity of Blackberry have been vital for the users of the device as it facilitated communication. Among other most important features of Blackberry is security and user-friendliness. Blackberry has been considered the most secure device among the competitors' (Reardon, 2013). This has led Blackberry to find popularity among segments that have security concerns and are more sensitive to information leakage and loss of control. In fact, Blackberry's primary target market is government and enterprises. (Mazutis, 2011)


The second major target market of Blackberry is business professionals who are heavily invested in timely communication. This market has been known as prosumer market- Blackberry owners who use the device both for professional and personal purposes- in comparison with enterprise market in which the employer purchases the product for employees solely for professional uses. (Oliveiria, 2013)


The third market segment which I believe Blackberry has little influence on, is the consumer market, non-professional individuals who purchase the product for personal use. Blackberry has been more focused on fulfilling the needs of the other two segments than the latter. This led RIM to invest more heavily on the PDA market- a complete communication tool- than on smartphones, which are more appealing to the consumer market . We will see later on that Blackberry made some efforts to attract this segment.


Following its collapse in the stock market, Blackberry lost a big portion of its users to the competitors. I, personally, have never met a Blackberry user. However, it seems that the Blackberry users can be divided into two categories. First, enterprise users who value security and ease of use among other attributes of the product and are more loyal and less price sensitive. Second, young (20 to 30 year old), medium to high level income busy professionals who value seamless communication and are influenced by fashion trends and the once popular and iconic design of the product. It seems that they, too, do not mind the higher prices as long as they can keep up with the latest trends. This category is considered brand conscious but less loyal than the previous category, as it will be later revealed that they did not hesitate to switch teams when other devices entered the market and became fashionable.

- Market Share & Missed Opportunity


Looking at the five forces model for Blackberry’s previous position in the market, the threat of substitutes, specifically smartphone, was incredibly high. The PDA market has slowly eroded while the smartphone market was having a boom period. Competition through substitutes was also incredibly high. Many companies entered the market, such as Google Android phone and Apple, which entered the market in 2007 and changed the design standards in the industry. Currently, Apple has more than 40% market share in the smartphone market (Edwards, 2014). Furthermore, the bargaining power of consumers is also high as there are many products to choose from and the switching costs are relatively low as most devices offer more or less the same features and there are apps available that enables transferring data from one phone to another. Therefore, RIM’s resources were not absolutely competitive and sustainable.


Blackberry has always been a leader in the PDA market. However, it failed to recognize the value of the emerging smartphone market and waited too long to respond to the changes in the industry. Blackberry released couple of smartphones but it was too late, and in a market that they had little presence, not surprisingly, they failed to sell. When the PDA sales were starting to level off, smartphone sales were increasing at an incredible rate with much higher sales compared to the PDA market. This suggests that RIM was handing over its potential customers to competitors in the smartphone market while staying in their comfort zone, which was the PDA market. 


Companies such as Palm and Hewlett-Packard were leaving the PDA market then, perhaps intentionally, because they were no longer focusing on that segment. While RIM had little market share in the smartphone segment, their units sold in that segment was far more than the units sold in their PDA market. They could have become the industry leader, had they redirected their resources to the smartphone market. They could have become Apple, cause Apple didn't exist back then.


Another fair critique would be that even after their struggles to penetrate the North American market (which is their main market) because of their much delayed efforts, they did not immediately recognized the potential in the growing Asian market. The American market was already saturated as smartphone lovers have already acquired theirs from competitors but the developing countries could have been a good market to target. Some would argue that they were hesitant to enter these markets fearing that their security features would be pouched. (Mazutis, 2011) We will see later on that their current strategy is focused on the market in the developing countries.

Overarching Marketing Strategy:



The present marketing strategy of the RIM/Blackberry cannot really be differentiated from its' past strategy. There are minor changes made to the overall corporate strategy, but the overarching marketing strategy has more or less stayed the same. Some would argue that this is the reason Blackberry cannot find its way to the top again. (Hartley, 2014) Blackberry has always put the enterprise market first, and tried to build brand loyalty and trust in that market by dedicating its resources to this segment. Customization is an example of a service that Blackberry offers to enterprises to meet their needs. (Hartley, 2014) Blackberry also used celebrity endorsement and was featured in American TV show, Ugly Betty, showing the device being used by young and busy professionals. However, Blackberry still suffers from the lack of brand awareness among major users of smartphones, millennial. 


The new CEO of the company, John Chen, is also planning to pursue the Enterprise market and “return to the company’s core strength- enterprise and security- and maximize efficiency”. (The Globe & Mail, 2013) The two main changes that John Chen has made are partnership with Foxconn to manufacture smartphones (The Globe & Mail, 2013) and aiming at developing countries’ market. (Reardon, 2013) According to the CEO of the company:


"We are focusing our design and hardware team on developing high-quality products at competitive prices (through leveraging Foxxonn's sale and efficiency)." (Reardon, 2013)


Blackberry has just launched a new smart phone- Passport- a passport size square shaped phone with a keyboard. In the next sections of the report, we explore the market response to Passport further.




References:

Edwards, Jim. 2014. Business Insider. Retrieved from: http://www.businessinsider.com/iphone-v-android-market-share-2014-5
Gustin, Sam. 2013. TIME. Retrieved from: http://business.time.com/2013/09/24/the-fatal-mistake-that-doomed-blackberry/
Hartley, Matt. 2014. Financial Post. Retrieved from: http://business.financialpost.com/2014/01/13/blackberry-ltds-john-chen-sticking-to-strategy-of-going-with-who-he-knows/?__lsa=2575-b891
 Nathan. 2013. BlackBerry shows off some of its 70,000 new third-party apps, including Skype, Rdio, Kindle, and Whatsapp. The verge. Retrieved from: http://www.theverge.com/2013/1/30/3932042/blackberry-10-apps-announcement
Mazutis, Daina. 2011. Research In Motion: Managing Explosive Growth. Richard Ivey School Of Business. University Of Western Ontario.
Oliveiria, Michael. 2013. Blackberry defines its ‘prosumer’ target market. Hamilton Spectator. Retrived from: http://www.thespec.com/news-story/4164029-blackberry-defines-its-prosumer-target-market/
Reardon, Marguerite. 2013. Retrieved from: http://www.cnet.com/news/blackberry-ceo-details-survival-strategy/ 
Statista, 2014. Retrieved from:  http://www.statista.com/statistics/263439/global-market-share-held-by-rim-smartphones/
Telegraph, 2014. Retrieved from: http://www.telegraph.co.uk/technology/blackberry/10237847/BlackBerry-timeline-from-RIM-to-RIP.html?mobile=basic
The Globe & Mail, 2013. Retrieved from: http://www.theglobeandmail.com/report-on-business/blackberry-ceo-the-journey-has-just-begun/article16125601/
Zeis, Adam. 2013. Retrieved from: http://crackberry.com/research-motion-limited-officially-renamed-blackberry-limited.