Blackberry Enter Into China Market Essay Example

held in 2010 at the China International Exhibition Center, Beijing, under the theme of "Innovation and integration of future success". This event served as a venue for over 500 domestic and international telecom operators, mobile manufacturers, and technology alliances to showcase their latest technological developments. RIM utilized this specific telecommunications gathering to present an extensive portfolio of Blackberry products aimed at premium, mid-range, and entry-level markets, indicating their forthcoming expansion plan in mainland China. The company introduced the Blackberry Bold 9700 as part of its 2010 product range targeting high-end market segments with the primary goal being to enhance brand visibility.

Cooperating with mobile companies

Research In Motion (RIM) made a significant stride in the Chinese mobile phone market in 2009 by forming a partnership with China's top telecom companies, China Mobile and China Unicom. This collaboration signified Blackberry's influential status within these firms' operational areas. Thanks to their numerous local branches, these telecom giants enabled Blackberry to infiltrate this fresh market. To boost its brand recognition, RIM sent trained staff to display the Blackberry device in every local outlet, thereby raising product familiarity among potential buyers. This distinctive marketing approach not only educated consumers about Blackberry features but also provided them an opportunity to trial the product firsthand. These live presentations subsequently empowered customers to endorse the phone amongst their networks by sharing their personal experiences.

Obstacles Numerous factors impede Blackberry's penetration into the Chinese mobile phone sector, including both internal and external challenges. • Expense The average cost of a Blackberry in China is approximately ?3500, roughly equal to ?350. Considering China's present economic conditions, this price can represent

half or even a full month's salary for many workers. Therefore, such pricing is unattractive to Chinese consumers, especially those residing in smaller cities and rural regions.

Competitors

China's mobile phone market is saturated with numerous brands, including renowned ones like Nokia, Samsung, LG and several indigenous Chinese brands. The key differentiator for these brands is their competitive pricing strategy that significantly undercuts Blackberry's price point. When it comes to price competitiveness in China's mobile sector, the lead players are clearly Nokia and Motorola with their popular products. Based on data from April 2010, rankings derived from observed ratings of China’s 3G smartphone market situated Blackberry in ninth place holding only a 2.3% share. The top five ranks were held by Nokia, Samsung, HTC, Sony Ericsson and Motorola respectively. The battle for supremacy in this field is gradually shifting away from individual product competition to include aspects such as cost-effectiveness strategies, technological advancement, handling distribution logistics and brand marketing strategies. Successfully navigating these challenges will be crucial for Blackberry if it aims to solidify its position as a potent competitor in such a dynamic landscape.

Technology

Blackberry's Chinese input system falls behind its counterparts in other smartphones, restricting some Chinese characters' typing and potentially limiting conversation duration. Additionally, its GPS navigation precision in China is not up to par with iPhone's, causing a setback. There's also uncertainty over the software support provided for Blackberry; it is developed by local enthusiasts instead of professional vendors, which may result in a diminished customer base and decreased potential purchasers. Another limitation of Blackberry includes non-support for web chat and China's widely-used QQ

massager chat system, posing a significant barrier to penetrating the Chinese market.

Products substitute

Undeniably, the Chinese mobile phone market is saturated with numerous brands as previously stated in this document. Yet, there exist particular companies that focus on the production of counterfeit Blackberries and develop a series of replicated items. Such act will undoubtedly represent a significant risk to the authentic Blackberry.

Communication Strategy

This study will examine the communication strategy by focusing on the two core aspects of channel and promotion strategies.

The channel strategy encompassing operators direct selling, cell phone hypermarkets, and provincial agents is pivotal early in penetrating the Chinese cell phone market. Through this approach, businesses and mobile phone operators can foster long-term partnerships in the communication system and value-added service sectors. This strategy is beneficial to the alliance as it offers efficient and economical marketing channels for businesses. Moreover, it facilitates quick expansion of mobile phone reach to diverse city markets through the utilization of the operator's network.

Furthermore, the merchant also significantly contributes to improving Blackberry's reputation. Cell phone superstores typically prioritize their brand development, emphasizing shopping ambiance and management quality. Hence, these shops and mobile phone malls enjoy a certain level of trust among consumers. The vast array of mobile phone brands housed by these superstores is responsible for attracting a broad consumer base. Therefore, the merger of the superstore's benefits with exclusive Blackberry products will undoubtedly boost sales. As for regional distributors, besides operating prominent stores in urban areas, numerous smaller mobile phone outlets can be found in cities.

While not considerable in size, the sheer volume

of these entities lends them substantial significance, thus making their overall contribution to sales noticeable. However, the extensive number of both big and small stores could necessitate a significant workforce for product distribution, consequently escalating costs. To navigate around this problem, the enterprise could consider joining forces with several regional representatives who possess proficiency in dealing with various small to medium-sized mobile outlets and have previously coordinated with them. This approach allows for effective distribution of goods within these establishments. These regional representatives can also act as an immediate connection between suppliers and retailers such as electronics chains and mobile phone chains. This provides a more varied and adaptable marketing network.

Promotion Strategy

The advertising plan encompasses both ad promotion strategies and selection of promotional channels. The Blackberry mobile phone, a fresh entry in the Chinese mobile market, should market its unique design, robust features, and innovative technology as the focal points of its product advertising. Besides this, corporate image promotion is crucial. For instance, the quality of customer service by employees can significantly influence consumer perception.

Media Strategy

Media platforms like television, internet, magazines, and outdoor media can be utilized for advertising. For example, television adverts can be shown traditionally or during television shows, movies, and live performances. Blackberry has taken advantage of popular Chinese websites such as Tudou, Renren, and Taoba by adding web links and flash links on them for online marketing purposes. They've also targeted leading fashion and tech magazines, utilizing their color pages for added publicity. To top it all off, Blackberry leveraged outdoor advertising such as lightboxes, billboards, and large-scale video promotions.