applesauce wolfpack publicity- final report

8/12/2019 Applesauce Wolfpack Publicity- Final Report

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Report Prepared by Blair Threatt

The Future for BlackBerry: A Research Analysis

Prepared for the BlackBerry Corporation

May 2013


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Table of Contents

Cover Letter to BlackBerry

Executive Summary & Research Objectives

Background & Secondary Research

Methodology

Insights from Primary Research

Conclusions

Charts & Figures:

Figure 1

Figure 2-

Figure 3

Figure 4

Survey Questions

Focus Data Findings

Works Cited


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Executive Summary:

My colleagues and I at Applesauce Wolfpack have concluded our evaluations of

Blackberry after 4 months of conducting our research analysis. The sole purpose of our

research was to find out why Blackberry lost their sparkle and their place in the hierarchy

of the cell phone market today. With the research conducted by us, ASW, we hope to

discover the problem and the crisis Blackberry is facing.

Overall our research process used a variety of methods. ASW wanted to first

make sure that our research findings would cater to our research objectives. So ASW

developed a list of research objectives before conducting our research. This way we

would stillbe able to assess both the strategy and direction for Blackberrys marketing on

future product launches, and what we find through our research could shape that.

Our main research objectives were as foll ows:

To find out what demographic of people would be best to market BlackBerry towards To find out what makes other smartphones more appealing to current day users To help increase BlackBerrys market share to at least 15-20% with the next phone

release

To gather information from the consumers on what would make them more likely topurchase a BlackBerry over another rival smartphone

To find out what the young demographic (ages 13-21) thinks about the new BlackBerryZ10 touchscreen smartphone

In addition to our main research objectives my colleagues and I at ASW also set

the goal of discovering ways that Blackberry could draw in more of their customers.

These suggestions or insights could provide new marketing techniques for their target

audience or even things such as collaborations with other companies or products in the

industry.


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Our primary research consisted of conducting a focus group, developing and

sending out a survey to a mass audience, guerilla marketing, and interviews with

consumers on the subject. Through our primary research we discovered that Blackberry

has not properly adjusted their products to match the innovations of their competitors of

today. The biggest of these innovations was the app store and the usability of apps in

general on a device. Blackberry compared to their other smartphone competitors Apple

and Android is really lagging on both the availability of apps and the inability to run

thousands of apps on their phones. From our research we were able to see and hear the

how important applications are to a smartphone. In our focus group our participants made

it clear to us those apps such as Snap Chat, Instagram, and Pic Stitch, are apart of

the reasons why they love their smartphones. Our participants then stated that without

these applications on their smartphones they would be both less satisfied and happy with

their smartphones.

Another major point of discussion had to do with the price of cell phones in the

marketplace of today. Our participants expressed their dissatisfaction with the price of the

iPhone, which is made up for in all of the functions it can perform compared to other

phones. Then my colleagues and I brought up the question of brand loyalty with our

participants. We asked them that if Blackberry was able to create a phone with the same

capabilities as the iPhone but at a fraction of the price would they switch to the cheaper

one, and the answer they said was yes.

In addition to primary research we also did extensive secondary research to help

us develop a background on the subject itself. With this information we were able to

conduct a situational analysis of the trends of the industry. Because our primary was both


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quantitative and qualitative we were able to gather insights on Blackberry and the

industry in general very easily, which helped us to shape our final thoughts and

conclusions on the issues with Blackberry.

Through our findings and analysis from our research my colleagues and I at ASW

we were able to develop a way to advise and aid Blackberry. We concluded that in the

end it all comes down to the applications and the capabilities that a smartphone has.

Consumers are not going to buy a phone that sacrifices and limits their ability to

communicate with everyone in their everyday life. With the emergence of social media

and the need to constantly to be aware of and connected with one another, technology has

made it possible for that to happen. In order for Blackberry to stay afloat or remerge into

the cell phone market they need to realize this, and adjust their technologies to fit the

innovations of today and their competitors.

Overall through our extensive research and analysis on both the market and

Blackberry, we were able to establish that Blackberry can hold the spot they once held in

the industry if they choose to make changes that will be further discusses in further

sections of this report.

Backgr ound and Secondary Research

As stated previously in the executive summary, the research that we conduct is

sought to help us figure out why Blackberry lost their reign they once had over the

cellphone market. My colleagues and I at ASW began our background research by

developing a timeline for Blackberry. Through this timeline we were able to see exactly

where Blackberry had began to fall in the market, and why it had occurred.


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In the year 1999 was when BlackBerry first emerged with their first product ever,

and that was the RIM pager. The RIM pager was an essential for every businessman. It

was here that where Blackberry became known for its capabilities and necessity in the

business world. Three years later in 2002 brought the launch of the 6000 and 7000 series

of BlackBerrys, which was their series that specifically targeted everyday people. The

emergence of these phones was really popular especially because looking back they were

really the worlds first smartphones. BlackBerrys instant success in the beginning

propelled them straight to the top of the marketplace, where they remained for several

years later. It wouldnt be until 2007 when another competitor would challenge their

success.

June 29, 2007 was definitely a date to remember because it changed the whole

industry and the way we think of smartphones in general; this is because this is when

Apple released their first iPhone. In the beginning BlackBerry showed little signs that

they were threatened by the release of this new product. But Apple came prepared. With

the launch of the iPhone they also brought new ideas for phones that were far beyond of

anything thought of before. One of these new innovations was the invention of the app

store, which gave the iPhone access to thousands of apps available for the consumers to

download, use, and entertain themselves. In addition to this Apple also had changed the

way cell phones were marketed in advertisements. With the release of the iPhone Apples

new advertisements were simple a demonstration of what a person could do on their

phone, which only showed not only the capabilities the phone had but how easy it is to

use.


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A year later in 2008, BlackBerry tried to come back at their competitor with the

release of the Storm. While the Storm was similar in appearance to the iPhone because of

its all touch screen, it was nowhere near as advanced with the innovations and

possibilities that the iPhone had. This year was also the same year when the HTC

Android emerged into the market as well. At no surprise with the emerging competition

BlackBerrys share dropped to the lowest it ever was that year as well. Even in the years

following BlackBerry would continue on the decline. While iPhone and Android kept

rising to their success because of their innovations, BlackBerry struggled to keep up.

In addition to our research objectives that we laid out in the beginning of this

report, my colleagues and I developed two main questions that we wanted to answer by

the end of our research analysis.

Those questions were the foll owing:

What made BlackBerry fall out of grace from the consumers that once all owned thesmartphone?

What does BlackBerry need to do at this point to save the company from becomingcompletely obsolete?

Overall when we look back at our research and our objectives we can see that

they have stemmed from these two questions. The first question was already answered by

our timeline because we were able to see exactly when and how the falling occurred.

Because of the iPhone as well as the emergence of newer innovations with technology,

we can see that BlackBerry simple fell behind in a race that when looking in the past they

should have been ahead it. But now looking back, we can conclude that BlackBerry

should have kept innovating while they were ahead instead of lavishing themselves in

their success. My colleagues and I at ASW hope that through our research, timeline, and


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answering of the first question can help you further understand why BlackBerry is where

it is right now. Since we already answered the first question in our research we focused

on figuring out the answer to the second one. We hope by the end of our analysis to

answer that question, because as you might know BlackBerrys shares are down even

with the launch of the Z10 as seen in figure (>>>>>>>>).

Methodology:

ASW conducted extensive primary research on BlackBerry. For our primary

research we conducted a survey, focus group, and guerilla consumer interview. In

addition to those my colleagues and I at ASW also did extensive market research as well.

For our research we decided to focus on the college demographic because we felt

that they are trendsetters and consumers of the newest technologies to be introduced to

the market. Our target audience was between the ages of 18-24.

Survey

The sole reason ASW decided to conduct a survey is because it would provide us

both a basis for our research analysis as well as general insights about our target

audience. When ASW was developing the survey we wanted to focus on the aspect of

why people have the phone that they have. My colleagues and I decided to do this

because we truly wanted to see what people want in a phone. It is something that is

especially important now because phones are so innovated now. ASW also wanted to

know other things such as what applications are used the most, what is the best feature on

your phone, and what people used their smartphones for.

In our survey we received 150 participants, and our results were very similar to

what we found in our secondary research. We discovered that out of 150 participants


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58% of the users owned iPhones, 26% owned HTC Androids, 5% owned BlackBerrys

and 13% stated other. Now if you look at figure (>>>>) youll see that our market

research shows similar results for college smartphone users as well. Because things like

these results were so similar, ASW was pleased with our survey and the results it

provided us with.

With these findings we hope BlackBerry can see not only how low their

percentages are but also how there is a problem, and they need to figure out a way to fix

it.For our full survey please refer to page.

Focus Group

For our focus group there was a similar approach to our research, but we

definitely gained different information. In this aspect of our primary research we really

wanted to focus on getting more of an opinion that we couldnt gain through the survey.

Having a focus group allowed us to hear custom responses from our target audience, and

it really helped.

Our focus group was conducted on Tuesday April 2ndat 5:30 p.m. There were 5

participants, 4 females and 1 male, and they were all college students at USC. Since our

survey as well as our background research have provided us with the facts on why

BlackBerry has low ownership; we thought it would be good to ask our participants why

dont they own a BlackBerry?

Just as we saw with our background research and the emergence of the iPhone,

our participants stated that the capabilities on the iPhone arent even comparable to those

of a BlackBerry. From this insight ASW was then again able to confirm that innovation


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and the capabilities of other smartphones today is a definite reason for BlackBerrys

downfall.

However our participants also gave us another valuable insight. When my

colleagues and I at ASW asked, if the same capabilities the iPhone had were available

on a Blackberry for a cheaper price would you stay brand loyal or switch? All of our

participants said that they would not stay brand loyal and they would buy the BlackBerry.

This valuable information provided a lot of insight for our analysis and towards our

advice for BlackBerrys next step that will be talked about later in our conclusion. For

our full document from the focus group please refer to page.

Gueri ll a Consumer I nterviews

The guerilla consumer interviews that were conducted by my colleagues and I at

ASW were used to provide more insight on the issue at hand. ASW went to the

University of Southern California to ask students about their current phones, and what

would it take to get them to buy a BlackBerry.

From these interviews we saw that iPhone was definitely the dominant phone on

campus, and the go to phone for college students. The appearance, easy-to-use functions,

and over all capabilities an iPhone provides, students stated that until a BlackBerry was

able to match the iPhone on these standards they would not consider buying a

BlackBerry.

Market Research

The market research that my colleagues and I at ASW conducted over 5 months

allowed us to gain valuable insight in the BlackBerry problem and how to shape other

aspects of our research. Through our research we were able to make observations and


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predictions about things we might discover in our further analysis of BlackBerry. One of

those observations was the apps and the app store issue, which weve covered earlier in

this report. By looking at the chart on page (>>>>>) that shows what phones app

developers are making apps for we can see that iPhones are the leaders with 85%

followed by Android at 75%, and BlackBerry at 54%. By BlackBerry only holding 54%

compared to their competitors, it is evident that apps are one of the setbacks that

BlackBerry faces. It is also important to note that most of the apps that are developed

specifically for BlackBerry fail to include some of the most popular ones used and

desired by consumers of their competition, such as Instagram.

I nsights from Primar y Research

Since the emergence of BlackBerry the world has been forever changed. Looking

back at the time when BlackBerrys first came onto the market, we can see that they were

the most innovative things out there. Not only did they allow people to call, text, and

email from the palm of their hand, but also they were extremely functional. Even in a

time when Internet on the go was first emerging, they still were highly desired and

because looking back they were the worlds first smartphone. However, though

BlackBerry was highly innovated for its time, their innovations soon grew old and behind

as time went on.

As BlackBerry relished in their success and being at the top of the market, other

companies began developing new innovative ideas that would soon surpass them. This

was seen in 2008 with Apples release of the iPhone. The release of the iPhone

completely revolutionized cell phones. What functions that were considered innovative


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before, now became basic functions. The iPhone truly showed consumers and the world

the new definition and innovations of smartphones.

Since BlackBerry failed to keep innovation other companies were able to out do

them, and eventually taking your customers and your place in the market. Because your

phones lack not only apps but also other necessities that have become the basic functions

of phones today on both Androids and iPhones, you have fallen behind.

Through our research and analysis of BlackBerry and the problem you are facing,

my colleagues and I at ASW were able to develop insights through our primary research.

Below are the insights that ASW has come up with based on the analysis of our research.

Merging of work and play.

Over the last decade people have transitioned with their phones. Back

when BlackBerry first was released it was known as a business phone. Before

smartphones most people in the workplace had both a personal phone and a business

phone, which was typically a BlackBerry. But rather than having 2 devices, phones are

becoming merged into one. Because of all the capabilities one smartphone can offer,

there really is no need to have that business phone separate from your personal. This

merging of work and play is one of the reasons why BlackBerry has become less

desirable to consumers.

Theimportance of social media.

The emergence of social media has had a big influence on the technology

today. Because of how important social media has become, everyone wants to constantly

stay connected and be involved with it. Todays technology as


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Charts and Figures:

F igure 1:

F igure 2:


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F igure 3:

F igure 4:


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Survey Questions:

Sur vey Moderator Guide:

The survey you are being asked to complete is being conducted for BlackBerry by ASW

PR. We are engaging in this study to assess public perception of BlackBerry and cell

phone usage. The survey will take approximately 15 minutes and requires that you simply

respond by indicating the most appropriate choices. There are no right or wrong answers,

only your perspective on them. You will remain anonymous at all times and all responses

will be held in confidence. Thank you for your participation!

Questions:

1. Please indicate the year in which you were born:2. Do you have a cell phone?3. At what age did you get your first phone?4. What was your first phone?5. What type of phone do you currently own?6. If you answered "other" above, please tell us what type of phone you use:7. What is the primary use of your phone?8. How often do you use your phone?9. Does your phone offer apps?10. Would you keep your phone if you did not have access to apps?11. What are some of the features you utilize most on your phone?12. Roughly estimate how many hours a week you spend on your phone doing the

following: texting/calling, emailing, social media/internet, camera/GPS, Apps

13. In your opinion, what is the best function of the iPhone?


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14. If BlackBerry came out with a new phone that had access to more apps thaniPhone, would you buy it?

15. If no, why not?16. Do you know someone (beside yourself) who owns a BlackBerry? If so, who (i.e.

parent/coworker/friend)?

17. When do you intend on purchasing your next phone?18. What phone do you think you will purchase next (indicate more than one if

applicable)?

19.What is your gender?

20. What is your annual income range?21. What is the highest level of education you have completed or are in the process

of completing?

Survey Close:

Thank you for completing the survey! Your responses will help us better assess public

perception of BlackBerry and cell phone usage. If you would like more information or

have any questions regarding this survey, please contact ASW PR at 1-805-215-9073.

Your responses will remain anonymous and will be held with the strictest confidence. We

thank you for your time!

Focus Group Findings:

5 Participants: 4 female, 1 male

1. Maya, Female, Screen Writing Major, 182. Constantina, Female, Broadcast Journalism Major, 183. Chae, Female, Business Major, 204. Tina, Female, Psych and Global Medicine Major, 215. Brian, Male, Economics Major, 20

Career Aspirations?


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Maya: One-hour drama on HBO/Showtime

Constantina: Own a pro franchise

Chae: Design/manage hotels/ hospitality industryTina: Med school, psychiatrist

Brian: Talk show host/TV producer

Age of first phone?Ages: 10, 13, 13, 13, 15

Why did you get it?Gift from parents, Christmas gift, Because her sister got one, Because everyone else was

getting one, Because my parents needed to keep tabs on me

First Phone?Light blue chocolate slide phone, Samsung block phone (x2), Motorola flip phone, and

Nokia flip phone

Current Phone?

iPhone 4 (x3) , iPhone 5,= (x2)

Tell me about what you do/dont like about your iPhone? Why did you get it?-The battery power sucks because of texting and apps even if its charged regularly

-I got it b/c its streamlined easy access across all devices

-Very functional-I went to USC orientation and saw everyone had one so my mom got me one too.

-User friendly

-Progressive

-Very new apps specifically for iPhone-Apps and features are the main sellers

* Blackberry cant snap chat or use Instagram.all focus group members agreed that wasa huge reason they wouldnt want a blackberry

Why wouldnt you want a Blackberry?-Doesnt have Snap chat and Instagram

-Everyone else has an iPhone.

If Blackberry had those 2 apps would you get it?-No because iPhone is easier to use, touch screen and has better connectivity

Why did you trade in your BlackBerry?

-Had Blackberry because she had T-Mobile, but the iPhone is universal, it has iMessagesversus blackberry Messenger. She wouldnt get iMessages when she had a blackberry.

iPhone was a huge splurge, and if blackberry was significantly cheaper and had same

functions she would have stayed with itbut then why not get Samsung or Nexusbecause those are rivaling iPhone?


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-They liked not having to carry around iPod, everything is there.

-They can multitask on iPhone-They can talk and stream at same time

-iPhone makes you more connected to others, fact time, etc.

-It is harder to access stuff with a droid.

-In middle school everyone wanted a sidekick or razor. T-Mobile was in their prime,

They killed it, Thats before everyone cared about aesthetics.

-When they think of Blackberry they think of Blackberry messenger and business

-Internet capabilities came with their third phone, but had to pay a lot for a data package

-Had iPhone since July, Senior in high school, 2009 iPhone 3G came out

-Would never go to another phone except for Tina. She said she would switch if shecould get the same quality for cheaper price elsewhere. She would rather save money and

get another phone.

-Brian wouldnt because it would be a drag to transfer everything.

-Constantina, got an iPhone about 15 days ago

-Nexus and Galaxy are neck and neck w/ iPhone: They have more battery life, peopletried to sell her on the other ones instead of iPhone, but Blackberry wasnt even in the

running

-Blackberry also isnt very good w/ music.

-No one in the focus group knows what the new BB is called

Who do you think would have a Blackberry?

-Older people

-People in their 30s and older-Successful Business People (wearing a suit writing an agenda)

*Blackberry is for business and iPhone for personal.

-They think the iPhone will keep the throne, No one can really take over.

But internationally they dont have a monopoly. (iPhone wont survive abroad)

-They would choose iPhone over Nexus and Samsung; it all comes down to features andusability.

-But people would choose newer product versus an older iPhone.

-Do you get the iPhones as they are released?


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-Yes and No

-Some waited until prices are down

After watching commercial the new Blackberry commercial:

I like that

Thats a plus, but wouldnt trade in intuitive functionality for easier access, Wouldntwant to change phone if I had to learn a new way of navigating it,Id be skeptical of the speed of blackberry,

Blackberry is known for bugs, I dont trust that brand,

What would it take for you to buy a blackberry?

-It would have to be a great price

-They would need to try it out to see if they liked it

-Good customer service-Be able to trade it in etc. (Genius bar/Insurance aspect)

-They think blackberry is stuck in a rut, they need to focus on specific demo and target,keeping you moving target night life or other specific target demo, Make some sort of

blackberry bar like the genius bar, They could cater it to the nightlife atmosphere, some

sort of incentive to cater to younger or older demo, like frequent flyer package or

something.

-People end up talking to other people with iPhones more because you know who has it

or doesnt

-She judges if text messages comes through blue or green, changes how you view the

person based on the color of their tech because you know if they have an iPhone or not

-Group messages were always so frustrating for non-iPhone users

-Skeptical about getting iPhone 5 because who knows what the next big thing would

come out

-Blackberry gave her simpler communication, but iPhone gave her Snap chat, which was

a quicker way to know what people are up to

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