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BlackBerry PlayBook Product Level Analysis

TEAM 10

Tania Paul 7576410Neha Gupta 8407903Gözde Tandon 7595033Amir Hasanain 7550358Aneeq Suhail Janjua 8064364Wasif Raza 7590939Ibe Benedict 8398940

November 26, 2015

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Agenda Introduction Product Goals Product Shipment data (product Cycle) Target Segments and 4P’s Analysis Product Positioning by Segment Product Positioning by Quality Outcomes Marketing Strategy Comparison with Best Practices Lessons Learnt and Additions to Best Practices

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1999

Launched their first

device

2007

Most valuable company in Canada

2008

Introduction of

BlackBerry Storm

2009

Launch of App World

Marketplace

2011

Launch BlackBerry PlayBook

IntroductionBlackBerry PlayBook is a tablet (mini computer), developed by BlackBerry and was released on April 2011.

Get to know PlayBook better…

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Product Goals

Compete with existing tablet based devices in the market.

A tablet friendly and with features for both consumer and corporate

segments of the market.

Attempt to bring up mobile devices to the level of desktop computers.

(According to co-CEO Mike Lazaridis)

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Product Shipment Data (Product Cycle)

500,000

200,000

150,000

500,000

260,000

130,000

255,000

370,000

100,000

2015

Time

Num

ber of units shipped

Cost Cutting

2011

2011 2012

2012

2013

2014

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Target SegmentsDemographicsGeographic locations USA, Canada

Industry Consumer Corporate

Application

Web browsing, social networking, reading e-book/magazine, playing games, listening to music, watching videos, emails, create/ edit files general use work, specific use work

Emails, interactive portable platform for payments, sales support, customer presentations, web browsing, audio video conferencing, interactive menus, digital signatures

Common PsychographicsNeeds √√√ √√√Price Sensitivity √√√ √√√FUR Sensitivity √√ √√Quality √√√ √√√No of Customers √√ √√√Current Demand √√ √√√Demand Growth √√ √√No of Competitors √√√ √√

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Consumer Tablet Usage

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4 P’s Analysis for Consumer Market

Product Features :-• Games, Adobe flash support, GPS,

Orientation Sensor, higher battery life• 7" - 1024x600 LCD touch screen• Weight :-0.9 lbs(130 x 194 x10)mm• Multitasking support, Powerful, portable• MP3, AAC and WMA audio & HD video• 1080p HDMI output• HD cameras for video conferencing and

video capture (3MP front and 5MP rear)• 1 GB RAM, Wi-Fi (802.11 a/b/g/n)• Emails & BB Messengers via BB Bridge

using Blackberry smartphone• QNX Platform as OSTargeted Purpose :-Entertainment, Learning, Audio/Video Chat, Social Media

General Price list16 GB - $49932 GB - $59964 GB - $699Discounts :- e.g.  Seasonal discounts, retailer discounts

Product Price

Indirectly via Retailers e.g. Best Buy- Staples… etc.No Blackberry Exclusive Showroom

Pathway

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4 P’s Analysis for Consumer Market

• No Commercial Advertisements• Only advertisements on the company’s website

Promotions

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Tablet Usage in Enterprise (2011)

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4 P’s Analysis for Enterprise Market

Product Features :-• Emails & BB Messengers via BB Bridge

using Blackberry smartphone, higher battery life

• 7" - 1024x600 LCD touch screen• Weight :-0.9 lbs(130 x 194 x10)mm• Multitasking support, Powerful, portable• MP3, AAC and WMA audio & HD video• 1080p HDMI output• HD cameras for video conferencing and

video capture (3MP front and 5MP rear)• 1 GB RAM, Wi-Fi (802.11 a/b/g/n)• Games, Adobe flash support, GPS,

Orientation Sensor • QNX Platform as OSTargeted Purpose :-• Audio/Video Conferencing, Sales Support,

Customer Presentation, Interactive Menus, Digital Signatures

General price listNo Data Available (however less price than that of consumer market because of bulk purchase & brand reputation)

Directly Via Sales force (Used Existing Customer Base)

Product Price

Pathway

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4 P’s Analysis for Enterprise Market

• No industry-specific conferences, No trade shows, magazines advertisements… etc. Only a few Press coverage

• Only advertisement on the company’s website

Promotions

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Compelling Value PropositionC

onsu

mer • Superior Quality and

Reliability• Multitasking• USB Port Feature• Higher Battery Life• Adobe Flash Support• Security• Front and Back Camera

with Higher Resolution• Multiple Tools for

Business• Push Technology

Ente

rpris

e• Smaller tablet than others

• Multitasking• USB Port Feature• HD Video & Music• Adobe Flash Support• Security (for some

specific consumers)• Front and Back Camera

with Better Resolution• Games availability

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Product Positioning by Segment

High priceLow price

Consumer

Enterprise COMPETITION (Low)

COMPETITION (High)

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Product Positioning by Functionality

Price

Fun

ctio

nalit

y

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Outcomes

Negative Outcomes of Product Launch Decisions

• Email, Messenger Dependency on Blackberry Bridge and BB smartphones

• Low number of available applications due to newly acquired QNX platform.

• Software issues (no native email and calendar applications- third party email and calendar applications were supported)

• No 3G without tethering• Less attractive to consumer

segments due to poor advertising/ commercials

Wrong Executive Decisions

• Product launched in hurry to combat competitors market

• Outage of BlackBerry customer services across the globe

• Lack of product innovation for different segments

• Negative brand reputation because of employee layoffs, decreasing shares and previously failed smart phone products

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Marketing Strategy Comparison - Best Practices

 

The target market is known to the company, and the segment knows the product

The target segment is not known to the company, but the segment knows the product

The target segment is not known to the company, and the segment does not know the product

Product exists in company, just a modification

C1Difficulty = 5/10

C2Difficulty = 7/10

C3Difficulty = 8/10

Product is new to the company, and they’re a follower

C4Difficulty = 7/10

C5Difficulty = 8/10

C6Difficulty = 9/10

Product is new to the company, and they’re a pioneer

C7N/A

C8N/A

C9Difficulty = 10/10

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Marketing Strategy Comparison cntd..Areas Best Practice Blackberry Strategies

Segmentation Analysis

• Slice down segment precisely• Target one segment initially then expand

market

• No clear-cut customer segment / target decision. Tried satisfying needs of each segment simultaniously with one product.

Promotions • consumer domain- heavy advertising and promotions of all kinds

• Industrial domain- sales force, industry-specific conferences, trade shows, magazines, & press coverage.

• Lack of offers & promotions • untimely / delayed advertisement• false promises (announced to give free

Tablet to customer having Adobe Air). • Is name “PlayBook” suitable?

Product • Product - efficient, reliable, simple & satisfy the want/need of the segment.

• Must exceed some threshold features• Provide excellent customer support

• Playbook had some better features as compared to competitors however as a “follower” product was still “unfinished”

Pathway • Direct channel sales is best (if possible)• Use own sales rep to provide lots of

sales support

• No certified direct outlets - used retailers. • Not much effort to convey product value to

enterprise/govt market

Price • Inline to positioning /price sensitivity of the segment against competitor

• Give benefits from adopting the product

• Starting from $499. Special offers for Enterprise Market

Positioning • Market leader for both consumer and enterprise market?

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Lessons Learnt & Additions to Best Practies

Identify your specific initial target segment – pick the segment which has the

highest need or the greatest pain, hence would realize the maximum value.

Conduct a thorough marketing research before designing a product.

Create a better marketing strategy for launch, growth and survival wrt 4P’s.

Product should be competitive and not lacking of applications and updates.

Promotion has very high and positive impact on consumers so effective

promotion is crucial aspect for product success. Be innovative by following the best practices. Provide better customer and technical support atleast until the time product

matures in the market. A “finished” product should be launched, and the launch should not be in hurry.

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Success or Failure?

FAILED…

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http://press.blackberry.com/press/2010/pressrelease-4577.html

http://www.theguardian.com/technology/2011/mar/22/blackberry-playbook-launch-date-price-specs

http://www.berryreview.com/2011/04/06/t-minus-13-days-to-blackberry-playbook-launch-and-still-no-ad-campaign/http://crackberry.com/99500-apps-available-blackberry-app-world-25-percent-which-were-built-blackberry-playbookhttp://www.theverge.com/2011/10/24/2510576/blackberry-playbook-reviewhttps://en.wikipedia.org/wiki/BlackBerry_PlayBook

http://business.financialpost.com/fp-tech-desk/rims-year-to-forget-where-did-it-all-go-wrong\http://www.bbin.in/2011/07/blackberry-playbook-becomes-%E2%80%9Cfirst-tablet-certified-for-deployment-within-u-s-federal-government%E2%80%9D/

Morgan Stanley Tablet Demand and Disruption Report – February 14, 2011

References

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Demand for Tablets in Market (2011)

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BlackBerry’s Market Share (2007-2011)