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Reclaiming The Smart Phone Market: M. Brent Eason Ben Furr Carrie Martinelli Adam Scott
Reclaiming The Smart Phone Market: M. Brent Eason Ben Furr Carrie Martinelli Adam Scott
Reclaiming The Smart Phone Market: M. Brent Eason Ben Furr Carrie Martinelli Adam Scott
RIM Confidential
ORGANIZATION OVERVIEWS
Founded 1984 2009 Revenue: $11.1 billion 2009 Net Income: $1.89 billion Employees: 12,000
Founded 1976 as Apple Computer 2009 Revenue: $42.91 billion 2009 Net Income: $8.24 billion Employees: 34,300
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PRODUCTS
BlackBerry product first launched in 1999 Wide range of Wireless Service Providers (AT&T, Verizon, Sprint and all major global providers) 41 Million units sold in 2009 80+ Million units currently in use globally
Introduced in 2007 with AT&T as the exclusive provider 3G version launched in 2008 with high-speed data 3GS version launched in 2009 with faster data throughput rates, higher resolution camera and updated OS 43 Million units sold as of Jan. 2010
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CUSTOMER PROFILES
Data From CrunchGear.com July 13, 2008
iPhone Customers
72% Male Average Age 31 31% 15-24 32% 25-34 31% 35-49 6% 50+ 58% College Education (43% Natl Avg) 43% Reside in NY or CA (Twice the Natl Avg) Average HHI $75,600 (26% over Natl Avg)
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CUSTOMER PROFILES
BlackBerry Prosumers
64% Male Average Age 24 46% College Education Average HHI $59,200 Unique smartphone that may be used as both a business tool and a non-business (prosumer) device Allows IT professionals the ability to deploy and maintain end users efficiently with the BB Enterprise Server
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EXTERNAL ANALYSIS
KEY INSIGHTS
Competition from iPhone has forced BlackBerry devices to support more features LBS, downloadable applications, higher resolution cameras and touchscreen technology. BlackBerry sales for business use are increasing, however, prosumer sales are not having the same success. Enterprise (Business) activations increased 14% in 2009 Prosumer activations increased 12% in 2009
RIM Confidential
INTERNAL ANALYSIS
KEY INSIGHTS
The cost of new feature implementation has increased over the past 3 years to keep pace with the iPhone: Estimated R&D cost to implement BlackBerry Maps is $14 per device in 2009 compared to $11 per device in 2008 Estimate R&D cost to implement BlackBerry Pushcast feature is $16 per device for 2010
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RIM Confidential
MARKETING PROBLEM
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OUR RESPONSE
Carefully analyze customer preferences and characteristics in order to better define customer segments, determine which customers to focus marketing efforts on, and what features are most important to those customers.
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BUSINESS IMPLICATIONS
PRODUCT DEVELOPMENT
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CONSIDERATIONS
Is the question too broad or too narrow? Is there sufficient data to be collected? Multiple perspectives?
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RIM Confidential
DATA SOURCES
PRIMARY
Exploratory Survey: How Smart is Your Phone? Follow-up Survey
SECONDARY
RIM/BlackBerry Marketing Presentation: iPhone vs. BlackBerry
January 2009
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SURVEY STRUCTURE
Eligibility Check Information About Existing Phone General Phone Preferences Demographic Information
DEPENDENT VARIABLE
How likely are you to make your next phone a BlackBerry?
Not at all likely Somewhat Unlikely Undecided Somewhat Likely Very Likely
This structure creates bias with the wording. A numerical scale from 1-5 or 1-7 would be ideal.
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INDEPENDENT VARIABLES
Phone-Related: How important is voice quality/clarity in a cell phone? Do you prefer a physical keyboard or a touch screen?
Demographic: What best describes your education level? What is your marital status?
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QUESTION BREAKDOWN
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QUESTION BREAKDOWN
QUESTION BREAKDOWN
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QUESTION BREAKDOWN
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POSITIVES
Acceptable number of responses Questions provide enough data to run initial analysis
LESSONS LEARNED
Scaling of questions not broad enough Not enough demographic questions Respondents are in our acquaintance circle Does this create a problematic bias?
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SURVEY VERSION #2
Respondents: Existing Only or Brand New Set? Garner specific wording and scaling from more experienced marketing professionals Focus on demographic data for segmentation and clustering Complete by mid-April Pull ideas from secondary data to allow for best possible comparative qualities
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SECONDARY DATA
PORTIO RESEARCH
Tactical Positioning: iPhone vs. BlackBerry Background information for our marketing analysis SWOT analysis of iPhone and BlackBerry Opinions from Industry Experts
SECONDARY DATA
MINTEL REPORTS
Based on Primary and Secondary Data Customer Base Information Preference Studies Market Forecasts Customer Segmentation
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SECONDARY DATA
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ANALYSIS PLANS
CLUSTER ANALYSIS
Identify meaningful customer segments
DISCRIMINANT ANALYSIS
Profile each segment demographically
REGRESSION ANALYSIS
Identify significant factors affecting smart phone choice
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ANALYSIS PLANS
CLUSTER VARIABLES
Phone/service features Price/promotion responses
DISCRIMINANT VARIABLES
Demographics Lifestyle characteristics
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REGRESSION ANALYSIS
DEPENDENT VARIABLE
Likelihood of choosing BlackBerry
INDEPENDENT VARIABLES
Phone Features / Service Ratings Demographics Price/Promotion Response Lifestyle Characteristics
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REGRESSION ANALYSIS
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FEEDBACK