Research Proposal: BlackBerry vs. iPhone

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Course: MBA 561 - Market Analytics Research Proposal for our team project. Our study includes both primary and secondary data in the form of preference surveys and existing market data. Topic is relevant to RIM/BlackBerry's loss of market share to Apple/iPhone in the B2C market.

Text of Research Proposal: BlackBerry vs. iPhone

  • 1. Reclaiming the Smart Phone Market M. Brent Eason Ben Furr Carrie Martinelli Adam Scott

2. ROUND 1 BACKGROUND INFORMATION RIM Confidential 3. ORGANIZATION OVERVIEWS Founded 1984 Founded 1976 as Apple Computer 2009 Revenue: $11.1 billion 2009 Revenue: $42.91 billion 2009 Net Income: $1.89 billion 2009 Net Income: $8.24 billion Employees: 12,000 Employees: 34,300 RIM Confidential 4. PRODUCTS BlackBerry product first launched in 1999 Wide range of Wireless Service Providers (AT&T, Verizon, Sprintand 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 RIM Confidential 5. CUSTOMER PROFILESData From 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)RIM Confidential 6. CUSTOMER PROFILESBlackBerry Prosumers 64% Male Average Age 24 46% College Education Average HHI $59,200 Unique smartphone that may be used as both a businesstool and a non-business (prosumer) device Allows IT professionals the ability to deploy and maintainend users efficiently with the BB Enterprise ServerRIM Confidential 7. EXTERNAL ANALYSISKEY 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 8. INTERNAL ANALYSISKEY INSIGHTSThe 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 perdevice in 2009 compared to $11 per device in 2008 Estimate R&D cost to implement BlackBerry Pushcast featureis $16 per device for 2010 RIM Confidential 9. ROUND 2 THE RESEARCH PROBLEM RIM Confidential 10. MARKETING PROBLEMLAGGING MARKET KNOWLEDGE Evolution of smartphone customer segmentation (i.e. business users personal users) LAGGING R&D EFFORTS Rapidly shifting consumer preferences and higher expectations (i.e. mass customization) require greater feature offerings and speed to market RIM Confidential 11. OUR RESPONSECarefully analyze customer preferences andcharacteristics in order to better define customer segments, determine which customers to focus marketing efforts on, and what featuresare most important to those customers. RIM Confidential 12. BUSINESS IMPLICATIONSTARGETING & POSITIONING PRODUCT DEVELOPMENT PRICING & PROMOTION BOTTOM LINE: Sales, Profit, and Market Share RIM Confidential 13. DEVELOPING OUR RESEARCHCONSIDERATIONS Is the question too broad or too narrow? Is there sufficient data to be collected? Multiple perspectives?DV = PURCHASE INTENTINDEPENDENT VARIABLE SET CRITERIA Unbiased (not sample specific) Useful and mostly significant (legitimate, predictive ability) Largely guided by background knowledge Manageable for both respondents and ourselves RIM Confidential 14. ROUND 3 DATA DESCRIPTION RIM Confidential 15. DATA SOURCESPRIMARY Exploratory Survey: How Smart is Your Phone? Follow-up Survey SECONDARY RIM/BlackBerry Marketing Presentation:iPhone vs. BlackBerry January 2009 Mintel Reports (NCSU Library source) RIM Confidential 16. HOW SMART IS YOUR PHONE?SURVEY STRUCTURE Eligibility CheckGeneral Phone Preferences Information About Existing Phone Demographic Information DEPENDENT VARIABLE How likely are you to make your next phone a BlackBerry?Not atSomewhatSomewhatVeryUndecided all likelyUnlikely Likely Likely This structure creates bias with the wording. A numerical scale from 1-5or 1-7 would be ideal. RIM Confidential 17. HOW SMART IS YOUR PHONE?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? RIM Confidential 18. QUESTION BREAKDOWNELIGIBILITY CHECK & EXISTING PHONE INFO#1: Do you own or have exclusive use of at least one phone? If NO, exits survey#2: Did you choose your phone, or was it issued to you for your job?#3: Which company provides your cellular service?#4: What kind of device do you currently use? Separates smartphone users from others.#5: Did you purchase your current phone because of a promotionaldiscount? RIM Confidential 19. QUESTION BREAKDOWNPHONE AND TECHNOLOGY PREFERENCES#6: Which type of phone offers the best value for the money?#7: If price or availability were no object, which would you most prefer to use/own? The above two questions have three possible answers: BlackBerry iPhone Neither/Other#8: How likely are you to make your next phone a BlackBerry? This is our primary dependent variable.RIM Confidential 20. QUESTION BREAKDOWNPHONE/TECHNOLOGY PREFERENCES CONT.#9: If you do not currently use a Smartphone, what one thing would most make you purchase one? Required for Work, Cheaper, User Friendliness, Smaller/Stylish, NOTA#10-13: Importance ofVoice Network Style/ColorData Network Features/Applications/GamesNot at All Somewhat Highly Most#14: Do you prefer a physical keyboard or a touch screen?RIM Confidential 21. QUESTION BREAKDOWNFINAL TECH QUESTIONS & DEMOGRAPHICS#15: Which kind of computer do you use most frequently?MAC, PC, Both/No Preference#16-20: Demographics: Gender Marital Status Age Range AChildren Educational Level RIM Confidential 22. HOW SMART IS YOUR PHONE?POSITIVESAcceptable number of responses Questions provide enough data to run initial analysis LESSONS LEARNEDScaling of questions not broad enough Not enough demographic questions Respondents are in our acquaintance circle Does this create a problematic bias?RIM Confidential 23. 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 RIM Confidential 24. SECONDARY DATAPORTIO RESEARCHTactical Positioning: iPhone vs. BlackBerry Background information for our marketing analysis SWOT analysis of iPhone and BlackBerry Opinions from Industry Experts 25. SECONDARY DATAMINTEL REPORTS Based on Primary and Secondary Data Customer Base Information Preference Studies Market Forecasts Customer Segmentation RIM Confidential 26. SECONDARY DATAHOW WILL WE USE IT? To improve original survey Validate results from primary data RIM Confidential 27. ROUND 4 ANALYSIS PLANS RIM Confidential 28. ANALYSIS PLANSCLUSTER ANALYSIS Identify meaningful customer segments DISCRIMINANT ANALYSIS Profile each segment demographically REGRESSION ANALYSIS Identify significant factors affecting smart phone choice RIM Confidential 29. ANALYSIS PLANSCLUSTER VARIABLES Phone/service features Price/promotion responses DISCRIMINANT VARIABLES Demographics Lifestyle characteristics Results will be used to form targeting and positioning decisions. RIM Confidential 30. REGRESSION ANALYSISDEPENDENT VARIABLE Likelihood of choosing BlackBerry INDEPENDENT VARIABLES Phone Features / Service Ratings Demographics Price/Promotion Response Lifestyle Characteristics RIM Confidential 31. REGRESSION ANALYSIS Run Stepwise Regression to eliminate insignificant variables Check for Multicollinearity with a Tolerance Value of .10 Investigate Curvilinear Effects and Interaction Effects RIM Confidential 32. FEEDBACK Please provide any feedback you have to assist us!