BUSI745DB4

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Marketing

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Feb 20, 2024

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Introduction Founded in 1984, Blackberry (formerly known as Research in Motion) was a mobile phone manufacturer that produced devices popular amongst those in business and government due to features that included a full keyboard, the ability to send and receive emails, and web browsing capabilities. Despite their long tenured success, Blackberry failed to address customer demands, eventually falling into obsoletion with the release of devices such as the Apple iPhone and subsequently discontinued their mobile phone line. Disruptive Brand Plan The mobile phone market, specifically smartphones, has become one of the most competitive markets in recent times with 90% of all Americans now owning a smartphone (Pew Research Center, 2022). However, given the recent economic downturn, many consumers are no longer upgrading their smartphones as frequently. As such, Blackberry has the opportunity to reenter the smartphone market with the right device. Marketing Mix Product To successfully reenter the smartphone market by offering a high-quality, affordable, and modular smartphone that allows users to upgrade or various components of the device per their liking. By offering a smartphone that is fully customizable, Blackberry has the benefits of increasing supply of technology that facilitates customization, decreased product costs for individual offerings, and better insight into customer preferences (Franke et al., 2009). Price For the modular smartphone to be successful, Blackberry must offer the base device well below their competitor’s devices which often exceed a $2,000 per device price tag. As such, the base device will be sold for $299. The prices of the customizable components will vary, with larger or more advance components costing more. Place To keep costs low, the base model of Blackberry’s modular smartphone will exclusively be sold online. The customizable components, however, will be available in various retail stores and vending machines. Promotion With the device being fully customizable, Blackberry will used targeted advertising to reach a wider base of potential customers. By advertising their device with various upgraded components, Blackberry can market the smartphone to customers based on various factors such as age and location which promotes the high level of personalization of the device while establishing brand awareness (Farhat & Bailey, 2012). Market Segments – Current & Future

During their success, Blackberry marketed their devices to those wishing to continue working outside of their office. With the respective timeframe of Blackberry’s popularity, the market was primarily males, over the age of 30, and with some degree of higher education. The new primary market will include all genders, in the18-54 age group with household income of less than $100,000 as these users rely more on their smartphones for internet access (Pew Research Center, 2022). The secondary market will be much larger group given the customization available with the device, including those with higher incomes and have desire for premium devices. Demographic and Economic Trends Despite the booming smartphone market of previous years, the Covid-19 pandemic and subsequent economic downturn altered consumer behavior. Bayern reported that nearly 70% of smartphone users are less likely upgrade their mobile device due to the ongoing economic crisis (Bayern, 2020). A more affordable device that provides the same features as more expensive smartphone thus becomes a more attractive option for many. Analyzing Consumer Markets Social Factors With our environment affecting our purchasing decisions, social factors for consumer behavior is often broken down into three main categories: family, reference groups, and roles and status. Rahman and Sultana explain that for potential smartphone users, reference groups are the most influential as social media platforms allow consumers to obtain information, feedback, and reviews about a particular device from those who have previously used the device (Rahman & Sultana, 2022). Psychological Factors The modular Blackberry device has the potential to influence many of the psychological factors in consumer behavior. The customization of the device plays on the perception of value for the consumer, as the device can always be tailored to meet their specific needs. The ability to upgrade various components also plays on our desire to learn. Consumer Needs Consumer purchase decisions, specifically for device upgrades, are dependent on the belief that the benefits of the new purchase outweigh the existing device. However, with economic downturn preventing many smartphone users from upgrading their device, the modular Blackberry smartphone will provide consumers to opportunity to upgrade their device at a fraction of the costs of its competitors. Positioning Blackberry’s new positioning statement is to “provide their customers a fully customizable and affordable smartphone, which offers the best-tailored user experience through innovative

technologies that can be added to user’s device based on their preference. The new Blackberry smartphone will be the last smartphone you ever need to purchase.” Market Research and Promotion Plans Blackberry should use combination of interviews, focus groups, questionaries, and surveys on their primary target market to assess if an affordable modular smartphone would entice them to leave their current manufacturer. To promote the device, the organization should focus on social media marketing with use of platforms such Facebook and Twitter, as this is a quick way to have customer engagement and create demand for a product. Constantinides explains that social media has made consumers more sophisticated in their approach to purchasing goods and services, with customers eager to have their say in additional stages of the business process, especially with the growing demand for customized products (Constantinides, 2014). Blackberry can also utilize viral marketing campaigns, as they are an inexpensive means of marketing that can reach a larger audience. Relationship and Social Marketing To build strong brand loyalty, Blackberry must have a continuous feedback loop with their customers to ensure they are only releasing the most desired component upgrades, which serves to both reduce production costs and increase customer satisfaction. By promoting the device as environmentally friendly, through means of using recycled parts and minimalistic packaging, Blackberry can highlight its corporate social responsibility as well. Recommendations 1. Perform continual market research on their customer needs for modular components 2. Market the device on the basis that customers no longer need to upgrade their entire device, just the features they use 3. Utilize targeted marketing to reach a larger audience References Bayren, M. (2020). “ 69% of people won’t upgrade smartphones amid the economic crisis .” Retrieved from https://www.techrepublic.com/article/69-of-people-wont-upgrade- smartphones-amid-the-economic-crisis/ Constantinides, E. (2014). Foundations of social media marketing. Procedia-Social and behavioral sciences , 148 , 40-57 Farahat, A., & Bailey, M. C. (2012, April). How effective is targeted advertising? In Proceedings of the 21st international conference on World Wide Web (pp. 111-120).

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Franke, N., Keinz, P., & Steger, C. J. (2009). Testing the value of customization: when do customers really prefer products tailored to their preferences? Journal of marketing , 73 (5), 103-121. Pew Research Center. (2022). “Mobile Fact Sheet.” Retrieved from https://www.pewresearch.org/internet/fact-sheet/mobile/ Rahman, M. B., & Sultana, S. (2022). Factors Influencing Purchasing Behavior of Mobile Phone Consumers: Evidence from Bangladesh. Open Journal of Social Sciences , 10 (7), 1-16.

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