Business Hardware

Making BlackBerry cool again is a giant task

BlackBerry faces a herculean task marketing its new Z10 smartphone to U.S. consumers.

In interviews, analysts and CIOs said that employees at companies with bring-your-own-device (BYOD) policies have been switching from BlackBerry devices to iPhones and Android smartphones in droves.

And those employees don't seem to be interested the BlackBerry Z10 touchscreen smartphone, which will be available through carriers soon—AT&T will start selling the Z10 on March 22 for $200 with a two-year contract.

BlackBerry is trying to shift gears by marketing its new Z10 smartphones to consumers rather than enterprise IT shops, which have traditionally preferred BlackBerries because of their security features.

BlackBerry
BlackBerry is trying to shift gears by marketing its new Z10 smartphones to consumers rather than enterprise IT shops, which have traditionally preferred BlackBerries because of their security features.

For example, at The Timken Co., about 1,000 workers use BlackBerry devices but many are switching to iPhones or Android phones when their BlackBerry contracts are up, since the ball-bearing maker has recently adopted a BYOD policy, according to Timken CIO Daniel Muller.

"I doubt many [current BlackBerry users] will want the Z10," he said via email. "None so far have requested it."

The BYOD movement is gaining strength, a factor that puts BlackBerry in the unusual position of having to market its phones to consumers rather than the enterprise IT shops that traditionally preferred BlackBerries because of the security and management features available through BlackBerry Enterprise Server.

"Unfortunately, BlackBerry has gone a great number of years where users have built their own perceptions of what BlackBerry is, and in many cases it's a negative connotation from what the IT shop did" by imposing BlackBerry, said Kevin Burden, an analyst at Strategy Analytics.

"The Z10 and the BlackBerry 10 OS is on par with other OSs, but unless you get users that clamor for BlackBerry, then BlackBerry will have a difficult time making an impact," Burden added. "These days, the majority of buying decisions are with individual users, and this is where BlackBerry has to market."

BlackBerry's chief marketing officer, Frank Boulben, will be front and center to make the case to individuals for the Z10, and later for the Q10 with its qwerty keyboard.

Burden said that Boulben has a good marketing pedigree for a company traditionally seen as engineering-oriented rather than marketing savvy. Boulben also seems to understand the difficult position BlackBerry is in, as the company struggles to grow its market share back above 5% globally.

Best tech doesn't always win

While the BlackBerry 10 operating system was praised by many reviewers when it was introduced in January, Burden said technology prowess won't play a big role in the Z10's fortunes in the U.S.

"What's well known is that the best technology doesn't necessarily win," Burden said. "If the best technology always won, we'd all have been using Macs back in the 1990s. BlackBerry built a great OS and the Z10 hardware will evolve, but the marketing challenges to BlackBerry are very real."

Burden said the initial releases of the Z10 in Canada and the U.K. in February, and later in countries such as India, were greeted with enthusiasm—but that enthusiasm quickly petered out. Two U.K. companies—Carphone Warehouse and Vodafone—have cut their prices for the Z10 by as much as 20%.

"Dropping the price in the first month is not a good sign," Burden said.

An AT&T spokesman defended that company's Z10 price tag of $200 with a two-year contract, calling it "terrific." AT&T wouldn't disclose any of its plans to market the device.

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BlackBerry CEO Thorsten Heins holds the Z10, left, and Q10 at a January launch event.

erizon Wireless has discussed plans to roll out both the Z10 and Q10, but it hasn't set release dates. Some reports have indicated that Verizon will also charge $200 with a contract for the Z10. (Verizon refused to confirm that price.)

Sprint plans to carry only the Q10 and will likely start selling the device sometime later this year. For its part, T-Mobile will carry both devices but hasn't announced pricing or availability.

Independent retailer Solavei on Monday announced a no-contract Z10 for $689 through GSM Nation; that's down from the $999 price tag it announced in February.

Several analysts were curious as to how BlackBerry intends to market the Z10 in the U.S. and follow up on its Super Bowl ad promoting the BlackBerry brand.

BlackBerry said it is already marketing the Z10 in the U.S. along the lines of its global "Keep Moving" campaign announced in February. Plans include 20-, 30- and 60-second TV commercials to illustrate "the Keep Moving promise in a creative way, bringing the concept of flowing through life with BlackBerry 10," according to a spokeswoman for BlackBerry, although it isn't clear when or where those ads will appear.

Print and other advertising will follow that Keep Moving theme. BlackBerry first ran a 60-second Keep Moving commercial in Canada. The company has also posted a 3 minute, 34 second Keep Moving ad on YouTube that shows a young woman using a Z10 to communicate wirelessly about a construction project.

BlackBerry also has created a website to help users explore BlackBerry 10 features, including interface features called Flow and Hub. Singer Alicia Keys has been appointed global creative director to help show what BlackBerry 10 can do, the spokeswoman said.

BlackBerry fans waiting for the Q10?

However ambitious BlackBerry's plans for marketing the Z10 may be, the device's appeal to employees of companies with BYOD policies who have already jumped to the iPhone or to Android devices will be limited, said Jack Gold an analyst at J. Gold Associates.

"I do think there will be strong appeal to BlackBerry users who were waiting for the new devices," Gold said, "although I think many will wait for the Q10 qwerty device in a few weeks."

BlackBerry Q10

Several analysts said they are not sure how large that group of qwerty fans might be. Still, Burden said that BlackBerry still must "stop marketing BlackBerry to IT guys and start making BlackBerry cool again."

Burden added: "A message to marketing is that you don't want users to pull a BlackBerry out of their pockets and step to the side so that nobody sees them use it in case they are ridiculed and people say, 'Are you still using a BlackBerry?' That's a condemning thing and difficult to turn around."

For comprehensive coverage of the Android ecosystem, visit Greenbot.com.

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