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Introduction about Lenovo

Lenovo: A Worldwide Leader in
Lenovo is an innovative, international technology company formed as a result of
the acquisition by the Lenovo Group of the IBM Personal Computing Division
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!s a global leader in the PC mar"et, #e develop, manufacture and mar"et
cutting$edge, reliable, high$quality PC products and value$added professional
services that provide customers around the #orld #ith smarter #ays to be
productive and competitive
%e base our success on our customers achieving their goals, productivity in
business and enhancement of personal life
Our company Profle
Lenovo is a global company #ith e&ecutive offices in 'aleigh, (orth Carolina,
)*!, Bei+ing, China, and *ingapore Its principal operations are in Bei+ing, China,
and 'aleigh, (orth Carolina, )*!, #ith an enterprise sales organi,ation
#orld#ide -he company employs more than ./,000 people #orld#ide
Lenovo Group Limited is one of the top international information technology
companies in the #orld today %ith headquarters in both 'aleigh, (orth Carolina
and Bei+ing, China, Lenovo is truly a global company, constantly #or"ing to
promote its products in the #orld economy 1riginally founded in China, as the
company gre# it acquired the Personal Computing division of International
Business Machines 2IBM3,thereby allo#ing Lenovo to e&pand into the )nited
*tates mar"et
%hile Lenovo is very popular in China4because of its technology, national pride
of its global success, and its placement at the top of the Chinese computer
technology mar"et4it has been hard for the company to brea" into the global
mar"et -his is #here the acquisition of IBM became necessary !fter gaining the
-hin"$series brand, Lenovo began a push to become a ma+or player in the
#orld#ide computing technology mar"et %ith mar"eting strategies ranging from
sponsoring the 5006 and 5007 1lympic Games to the (ational Bas"etball
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!ssociation 2(B!3, Lenovo8s name is ma"ing its #ay into the global
Lenovo Group Limited has been very successful, both #ith providing quality
products and services and #ith streamlining its production Lenovo is very #ell
organi,ed, from the time the company receives the parts needed to create its
products, to the time the product ships out to the consumer -he manufacturing
process is automated #here it can be, and #hen assembly by #or"ers is
required, Lenovo ensures that its employees are #ell educated, training the
#or"ers in its Global 9ngineering College Lenovo is also dedicated to quality$
assurance and runs its products through a gauntlet of tests, ensuring that only
machines of the highest quality are sent to customers *ome of the tests include
customer simulation, +oint failure analysis, and e&posure to high amounts of
China is currently an e&cellent location for Lenovo8s production centers Labor is
cheap and environmental la#s are not nearly as strict as they are in the )nited
*tates -his is because China still has a gro#ing economy, #hich is attempting to
establish itself in the global mar"et 1nce China is established on level #ith other
ma+or players in the #orld economy, better environmental and employee
standards #ill follo# -hat being said, Lenovo has ma+or recycling programs as
#ell as #elfare and healthcare offerings for its employees
Lenovo has a t#o$part business strategy comprised of both a 'elationship Model
and a -ransaction Model -he company believes in ma"ing and sustaining
relationships #ith other national and international companies to help further its
interests It also believes in ma"ings its products easily accessible to the
everyday consumer and small businesses -his dual$model strategy allo#s
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Lenovo to cover a #ider mar"et in the global economy, and also allo#s for
ma&imi,ation of both profit and global consciousness of the company
!s Lenovo enters the global mar"et, it has the resources to do very #ell
:o#ever, the company may have to adopt some untraditionally$Chinese business
practices and approaches in order to #or" #ell #ith other international
businesses in the Personal Computing mar"et -hese include a #ide variety of
things, from obtaining e&ecutives #ho are used to the global economy, to moving
a#ay from a socialist #or"er system, to training more employees to spea"
9nglish Lenovo has the po#er to become a ma+or player in the international
economy -he company +ust needs to decide #hat path it #ants to gro# and
The New Lenovo
A Marriage o !i"ionarie"
In ./7., IBM envisioned computing at a ne# level ; a personal level ; to e&tend
the po#er and the productivity of information technology from the mainframe to
the individual, at home and at #or" -hat vision led to the founding of a ne# unit
#ithin IBM, the Personal Computing Division, #hich virtually invented personal
computing PCD advanced the state$of$the$art #ith a series of innovations
ranging from the very first laptop computers to the latest high$security
technologies, such as the built$in <air$bag< that protects data, and biometric
identification that protects user identity PCD created the icon of noteboo"
computing, the -hin"Pad, and the unique soft#are tools, "no#n as -hin" =antage
-echnologies, #hich increase user productivity
In ./7>, not long after PCD #as founded, .. computer scientists in Bei+ing, China
also had a vision ; to create a company that #ould bring the advantages of
information technology to the Chinese people %ith 'MB500, 000 2)*?5@,0003 in
seed money and the determination to turn their research into successful
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products, the .. engineers and researchers set up shop in a loaned space ; a
small, one$story bungalo# in Bei+ing -he company they founded, Legend,
opened the ne# era of consumer PCs in China
*ince it #as established, the company has affected the lives of millions of
ChineseA It first introduced PCs to households, and then promoted PC usage in
China by establishing retail shops nation#ide It also developed the pioneering
Legend Chinese Character Card that translated 9nglish operating soft#are into
Chinese characters, and achieved brea"throughs li"e PCs #ith one$button
access to the Internet
By .//>, Legend #as trading on the :ong Bong *toc" 9&changeC four years
later, it produced its one$millionth personal computer In 500D, Legend changed
its brand name to Lenovo, ta"ing the <Le< from Legend, a nod to its heritage, and
adding <novo,< the Latin #ord for <ne#,< to reflect the spirit of innovation at the
core of the company -he company name changed from Legend to Lenovo a year
In 500D, Lenovo introduced a self$developed collaborative application technology,
#hich heralds the important role Lenovo is going to play in the DC era 2computer,
communications and consumer electronics3 -hese and other mar"et$leading
personal computing products catapulted Legend to a leadership position in China
for eight consecutive years #ith over 5@E mar"et share in 500>
-oday, these t#o visionary companies are united under the Lenovo name %ith
LenovoFs landmar" acquisition of IBMFs Personal Computing Division in May
500@, the ne# Lenovo is a leader in the global PC mar"et, #ith appro&imately
?.D billion in annual revenue, and products serving enterprises and consumers
the #orld over
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#i"tory o Lenovo
$%&$ ) IBM PCD introduces its first personal computer, the IBM PC
$%&* ) IBM PCD introduces its first portable computer, the IBM Portable PC,
#eighing D0 pounds %ith an initial capital outlay of only 'MB500,000,
2)*?5@,0003 Lenovo8s founding chairman Liu Chuan,hi, together #ith .0 li"e$
minded colleagues, launches the (e# -echnology Developer Inc 2the
predecessor of the Legend Group3 funded by the Chinese !cademy of *ciences
$%&+ ) IBM PCD announces its first laptop computer, the PC Convertible,
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#eighing .5 pounds.
$%&, ) IBM PCD announces the Personal *ystemG5 personal computer.
Legend successfully rolls out the Legend Chinese$character card
$%&&)Legend8s Chinese$character card receives the highest (ational *cience$
-echnology Progress !#ard in China
Legend :ong Bong is established
$%&% ) Bei+ing Legend Computer Group Co is established
$%%' ) -he very first Legend PC is launched in the mar"et Legend changes
its role from that of an agent for imported computer products into that of a
producer and seller of its o#n branded computer products
Legend PCs are ratified and accepted by the China -orch Program
$%%- ) IBM PCD introduces -hin"Pad, the industry8s first noteboo" #ith a .0>
inch color -hin Hilm -ransistor 2-H-3 display and a -rac"Point 2red ball3 pointing
Legend pioneers the home PC concept and Legend . I . home PCs enter the
Chinese mar"etplace
$%%. ) Legend enters the Pentium era, producing China8s first <@76< PC
Legend establishes .I. retail net#or"
$%%* ) IBM PCD introduces the industry8s first noteboo" #ith integrated CD$
'1M, the -hin"Pad J@@CD
Legend is listed on the :ong Bong *toc" 9&change -he Legend PC business
division is formally established
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$%%/ ) IBM PCD introduces the KbutterflyL "eyboard
IBM PCD moves from Boca 'aton, Hlorida, to 'aleigh, (orth Carolina
Legend introduces the first Legend$brand server
$%%+ ) Legend becomes the mar"et share leader in China for the first time
Legend introduces the first Legend brand laptop.
$%%, ) IBM PCD introduces the industry8s first noteboo" equipped #ith a D=D$
'1M, the -hin"Pad JJ0
Legend signs an Intellectual Property agreement #ith Microsoft, the most
valuable deal ever made in China at the time
Legend launches the first multi$function laser printer
$%%& ) IBM PCD introduces the industry8s first -hin"Light, a small light that
illuminates the "eyboard in lo#$light #or" environments, such as onboard an
-he millionth Legend PC comes off the production line Intel Chairman !ndy
Grove attends the ceremony, and ta"es the PC for Intel8s museum collection
Legend establishes the first Legend *hop
$%%% ) IBM PCD introduces the industry8s first mini$noteboo", #eighing less
than three pounds, #ith standard ports and a "eyboard that is /@ percent of full$
IBM PCD announces its e&it from the retail business
IBM PCD introduces the industry8s first PC #ith an embedded security chip
Legend becomes the top PC vendor in the !sia$Pacific region and heads the
Chinese national -op .00 9lectronic 9nterprises ran"ing
Legend launches pioneering Internet PC, #ith its <one$touch$to$the$net< feature,
#hich enables millions of Chinese PC users to easily access the Internet
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-''' ) IBM PCD ships its .0$millionth -hin"Pad noteboo" PC
Legend becomes a constituent stoc" of the :ang *eng Inde& $ :B
Legend ran"ed in top .0 of #orldFs best managed PC venders
-''$ ) !n IBM noteboo" #ith an embedded security chip becomes the
industry8s first noteboo" to be certified by the -rusted Computing Platform
!lliance, an industry body setting data security standards
Legend successfully spins off Digital China Co Ltd, #hich is separately listed on
the :ong Bong *toc" 9&change
Legend appoints Muanqing Mang President and C91
Legend first introduces <digital home< concept and launches accessories$
enabling PC
-''- ) IBM PCD introduces Image)ltra and 'apid 'estore, the first automatic
data recovery technologies of their "ind
IBM PCD announces des"top PC outsourcing pact #ith *anmina$*CI
Legend launches its first technological innovation convention, KLegend %orld
5005,L #hich opens up Legend8s K-echnology 9raL Legend introduces its
visionary concept for the future of technological development and applications, its
Collaborating !pplications pro+ect, as #ell as its strategies for implementing
Collaborating !pplications
Legend8s supercomputer, the DeepComp .700 ma"es its debut It is China8s first
computer #ith .,000 GHL1P 2floating point operations per second3 and China8s
fastest computer for civilian use, ran"ed >Drd in the -op @00 list of the #orld8s
fastest computers
-he mobile handset +oint venture announced, mar"ing LegendFs formal entry into
the mobile handset business
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-''. ) IBM PCD introduces the industry8s first noteboo" #ith an e&tended
battery life of up to .. hours
IBM PCD introduces its -hin"Centre des"top PC line
IBM PCD introduces its !ctive Protection *ystem, the industry8s first noteboo"
#ith an airbag for hard drive and data protection in case the system is dropped
IBM PCD ships its 50$millionth -hin"Pad noteboo" PC
Legend announces the birth of its ne# <Lenovo< logo to prepare for its e&pansion
into the overseas mar"et
Based on the collaborative application technology, Lenovo initiates IG'* %or"ing
Group, in cooperation #ith a fe# large companies and the Chinese Ministry of the
Information Industry, to promote the formation of the industrial standard
Lenovo launches a -ech 'oad*ho# 500D nation#ide to promote LenovoFs
Lenovo successfully develops DeepComp 6700 in (ovember 500D It ran"s .>th
on the global list
-''* ) IBM PCD introduces the -hin"Centre ultra small des"top PC, no larger
than a bo& of corn fla"es
IBM PCD introduces the first noteboo" #ith an integrated fingerprint reader
IBM PCD ships its .00$millionth PC 2counting both des"top and noteboo"
Lenovo becomes an 1lympic #orld#ide partner It is the first Chinese company to
become a computer technology equipment partner of the I1C
Lenovo decides to develop the rural mar"et by launching the <Muanmeng< PC
series designed for to#nship home users
Lenovo and IBM announce an agreement by #hich Lenovo #ill acquire IBM8s
Personal Computing Division, its global PC 2des"top and noteboo" computer3
business -he acquisition forms a top$tier 2third$largest3 global PC leader.
-''/ ) Lenovo completes the acquisition of IBMFs Personal Computing
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Division, ma"ing it a ne# international I- competitor and the third$largest
personal computer company in the #orld
Lenovo announces the closing of a )*?D@0 million strategic investment by three
leading private equity firmsA -e&as Pacific Group, General !tlantic LLC and (e#
bridge Capital LLC
Lenovo establishes a ne# Innovation Center in 'esearch -riangle Par", (C, to
enable customers, business partners, solution providers and independent
soft#are vendors to collaborate on ne# personal computing solutions Lenovo
introduces the industryFs thinnest, lightest and most secure -ablet PC, the
-hin"Pad N>. -ablet
Lenovo introduces the first #idescreen -hin"Pad #ith embedded #ireless %!(,
the -hin"Pad O60, available for the first time #ith a titanium cover
Lenovo becomes the #orldFs largest provider of biometric$enabled PCs by selling
its one$millionth PC #ith an integrated fingerprint reader
William J. Amelio is appointed as C91 and President of Lenovo
-''+ ) Lenovo introduces the first dual$core -hin"Pad noteboo" PCs,
improving productivity and e&tending battery life for up to .. hours
Lenovo technology fla#lessly supports the 5006 1lympic %inter Games in
-orino, Italy, supplying @,000 des"top PCs, D@0 servers and .,000 noteboo"
computers Lenovo also hosts seven Internet ilounges for use by 1lympic
athletes and visitors
-he first Lenovo$branded products outside of China debut #orld#ide
'esearchers, scientists and product design teams from around the #orld
combine LenovoFs heritage in enterprise and consumer PC technology to design
the Lenovo D000 product line, #hich features ne# des"top and noteboo" models
specifically designed to provide #orry$free computing to the small business
mar"et segment
-'', ) Lenovo introduces the -hin"Pad '6. and -6. noteboo" PCs -hese
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are the first noteboo"s to use the ne# *anta 'osa platform from Intel
-'', ) Lenovo announces that they are to start selling laptops to business and
consumers #ith Linu& pre$installed on their machines.
-''& ) Lenovo enters the #orld#ide consumer PC mar"et #ith the ne# <Idea<
Brand Lenovo announces D ne# IdeaPad laptops, the M@.0 and MJ.0 des"top
replacement computers available by the end of Panuary and the ultraportable
)..0 available by March 5007
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Our value"
Lenovo and its employees are committed to four company values that are the
foundation for all that #e do
0u"tomer "ervice: %e are dedicated to the satisfaction and success of
every customer.
Innovative and entrepreneurial "pirit: Innovation that matters
to our customers, and our company, created and delivered #ith speed and
Accuracy and truth)"ee1ing: %e manage our business and ma"e
decisions based on carefully understood facts
Tru"tworthine"" and integrity: -rust and personal responsibility in
all relationships.
A #eritage o Innovation and 23cellence
LegendFs entrepreneurial spirit and PCDFs trac" record of brea"throughs live on in
todayFs Lenovo, an I- giant #ith global reach, competing #orld#ide
Globally, the company offers customers the a#ard$#inning -hin"Pad noteboo"s
and -hin"Centre des"tops, featuring the -hin"=antage -echnologies soft#are
tools, as #ell as -hin"=ision monitors and a full line of PC accessories and
options -he -hin" family is consistently ran"ed as the undisputed premium$
brand leader in the global PC industry, #ith products rated <best$in$class< and
<number one< in survey after survey (o other family of personal computers has
#on as much recognition In China, Lenovo commands more than one$third of
the PC mar"et, covering all segments
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Its leading$edge PCs are highly acclaimed for their user$friendly, tailor$made
designs and customi,ed solutions for various customer needs, including the
-ian+iao and Heng&ing consumer des"tops and Mangtian and Baitian enterprise
des"tops Lenovo also has a broad and e&panding product line encompassing
mobile handsets, servers, peripherals and digital entertainment products for the
Chinese mar"et
Allied with I4M to O5er a Total 6olution"
Lenovo and IBM have a strategic alliance designed to provide a best$in$class
e&perience for enterprise customers -he companies have entered into
significant, long$term agreements that give customers preferred access to IBMFs
#orld$class customer service organi,ation and global financing offerings, and that
enable Lenovo to ta"e advantage of IBMFs po#erful #orld#ide distribution and
sales net#or" LenovoFs customers are able to count on the entire IBM team ;
including sales, services and financing ; for access to IBMFs legendary end$to$
end I- solutions !s part of a five$year commitment, IBM #ill also provide Lenovo
#ith #arranty services and offer Lenovo customers leasing and financing
arrangements -hrough this long$term relationship, customers #ill receive the
best products #ith the lo#est total$cost$of$o#nership
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7ich in 7e"earch 8 9evelopment Talent
Customers of the ne# Lenovo #ill benefit from the union of PCDFs and LenovoFs
e&traordinary 'QD capabilities LenovoFs global research and development
centers in China, Papan and the )* have produced some of the #orldFs most
important advances in PC technology -he company is rich in talent, #ith teams
#ho have #on hundreds of technology and design a#ards ; including more than
5,000 patents ; and introduced many industry firsts !nd many more are on the
-he goal of LenovoFs 'QD team is ultimately to improve the overall e&perience of
PC o#nership #hile driving do#n total cost of o#nership In turn, this
commitment distinguishes Lenovo from its competitors and attracts PC
customers #ho demand the increased productivity that real innovation provides.
A :ood Neighbor; Ne3t 9oor and Around
the World
Lenovo is committed to being a responsible and active corporate citi,en,
consistently #or"ing to improve its business #hile contributing to the
development of society Lenovo believes that business is an integral part of
society and it is dedicated to #or"ing together #ith its employees and local
communities to improve the quality of life at #or" and at home
In 500D, at the height of the *!'* epidemic in China, Lenovo donated funds to
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support the prevention of the disease, #ith employees voluntarily raising
additional donations for this important cause !nd, in 500@, the company donated
funds to *outh !sian countries devastated by the tsunami
An Olympic Partner or the Turin and
4ei<ing :ame" -''&
Lenovo also has been a ma+or supporter of sports and physical fitness in China
In .///, the company sponsored the Chinese national #omenFs soccer team and
t#o years later sponsored Bei+ingFs successful bid to host the 5007 1lympic
! tradition of social responsibility and corporate philanthropy is another shared
value common to both PCD and Lenovo PCD has donated -hin"Pad noteboo"s
and -hin"Centre des"tops to a #ide variety of nonprofit organi,ations around the
#orld, and its employees have also donated thousands of volunteer hours to local

-hin"ing globally, in 500>, Lenovo became the first Chinese company to +oin the
1lympic Partner Program !s a #orld#ide sponsor #ith the International 1lympic
Committee, the company #ill be a ma+or supplier of computing equipment ; such
as des"top and noteboo" computers and servers ; and funding in support of the
5006 #inter games in -urin, Italy and the 5007 summer games in Bei+ing, China
-his ma+or sport mar"eting initiative #ill help introduce the Lenovo brand around
the globe
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Product =uality
Lenovo has an overriding #orld#ide commitment to the quality of the products,
solutions and services #e provide to our customers Ruality is recogni,ed as a
fundamental component of the value customers receive from Lenovo Lenovo is
committed to customer satisfaction by delivering products that are of superior
quality to comparable offerings from our competitors
Lenovo is committed to the goals of achieving customer satisfaction, delivering
superior products, solutions, and services and ensuring #e meet customer
requirements 'ecogni,ing that the mar"etplace is the driving force behind
everything #e do Lenovo implements effective business processes that support
value creation for our customers and our sta"eholders
Lenovo leaders are responsible for establishing ob+ectives and using
measurements to drive continual improvement in quality and customer
satisfaction !ll Lenovo employees are e&pected to contribute to continual
improvement as an integral part of our quality management system
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Original signed by:
William >? Amelio Pre"ident and 02O
Lenovo 7an1ed No? $ or 0u"tomer
Lenovo Leads Industry in PC :ard#are Ruality and Product Design, Hinds -B'
Lenovo #as announced that it has outperformed top competitors in customer
satisfaction #ith PC hard#are quality, reliability and product design features,
according to the -echnology Business 'esearch 2-B'3 KCorporate I- Buying
Behavior and Customer *atisfaction *tudyA (oteboo"sL
Hor the seventh consecutive quarter, Lenovo dominated the area of hard#are
reliability, confirming the long$standing -hin"Pad reputation for durability and
e&ceptional product design Lenovo8s top$ran"ing position #as also driven by
substantial gains across the areas of delivery time, phone support and noteboo"
value -he ne# study sho#s that Lenovo8s improved position in delivery time
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satisfaction has ta"en significant share from the top competitor8s previous lead
K%e believe Lenovo8s differentiators and core advantage in the industry are
based on the company8s focus on quality, innovation and engineering,L said Pon
Lindy, president of -B'
Other highlight" rom the T47 report include the
ollowing a" li1ely driver" o Lenovo(" leading
Lenovo achieved significantly lo#er noteboo" PC failure rates than industry
averages -he use of !ctive Protection *ystem, an air$bag li"e mechanism that
protects the hard drive, is found to reduce hard drive failures by D0E as
compared to other systems
Lenovo8s customer complaint management #as identified as a strong
differentiator for its proactive approach to remediate customers8 technology$
related concerns
K1ur ob+ective is to deliver ne# product features, functionality and design that
support customers8 day$to$day activities and drive better #ays for them to do
business,L said Christopher !s"e#, senior vice president, Customer *ervice,
Lenovo KBy combining our roc"$solid design #ith specially$developed
productivity tools, Lenovo PCs provide the highest level of hard#are quality and
reliability, to help ensure that our customers have a #orry$free computing
-B'8s report commended Lenovo PCs for several industry$firsts including a
magnesium roll$cage to improve system rigidity, ultraslim /@ mm optical drives,
an integrated security chip and a preloaded one$button data bac"up and recovery
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solution In addition, Lenovo recently unveiled the Lenovo D000 product family $
the company8s first line of Lenovo$branded noteboo"s and des"tops targeting
small and medium businesses
-B'8s Corporate I- Buying Behavior and Customer *atisfaction *tudy is a
quarterly report based on data collected from the previous si& months -he
audience is comprised of large )* enterprises that plan to purchase at least .00
noteboo" systems in the ne&t year Lenovo, Dell, :P, -oshiba and Gate#ay are
included in the study
Inching up a notch, Lenovo Group Ltd too" the third spot in the global PC mar"et,
bumping off -ai#an$based rival !cer Inc But #ith !cerFs aggressive acquisition
moves, it remains to be seen ho# long the China$based Lenovo could hold on to
the post
Lenovo "ecure third "pot in global P0
Lenovo shipped >/ la"h PCs #orld#ide, up to 55/ per cent from D/6 la"h,
according to a preliminary ran"ing by i*uppli Corp -his mar"ed the largest
increase among the #orldFs -op$@ and -op$.0 PC suppliersS !lthough it #as only
marginally ahead of the .J percent sequential gro#th achieved by !pple Inc
1n a unit basis, LenovoFs shipments rose by /07,000 compared to the previous
quarter -his #as a remar"able accomplishment, considering that overall
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shipments declined sequentially during the period, decreasing by .J per cent, or
by .0D la"h units, the firm said
<LenovoFs sales #ere propelled by strong demand in the domestic Chinese
mar"et,< said Matthe# %il"ins, principal analyst for compute platforms at i*uppli
<-he company previously stated that it #ould deliver a stronger performance in
the second quarter than it did in the first, and it duly delivered<
-he companyFs gro#th caused its mar"et share to rise to J/ per cent, up from
6> per cent -he rise allo#ed Lenovo to ta"e the third position in the global PC
mar"et, reclaiming the ran" from -ai#anFs !cer, #hich too" the (o D place from
Do#n one spot, !cerFs PC shipments slid by 05 per cent <!cerFs performance
#as better than the seasonal results of the overall PC mar"et during the second
quarter,< %il"ins said <:o#ever, the -op$@ PC 19Ms en+oyed such strong results
that even a very small sequential decline is against the trend #e sa# during the
Mean#hile, #ewlett)Pac1ard 0o? @#PA cemented its position as the
#orld#ide leader in PC shipments :P increased its shipments to ..5 crore
units, up >> per cent from .0J crore units and up by a #hopping D@ per cent and
mar"et share rose to .7D per cent, up from .J5 per cent :PFs gro#th in PC
shipments outpaced the e&pansion of the overall PC industry by nearly a factor of
*econd$ran"ed 9ell Inc., on the other hand, posted a @6 per cent sequential
increase in PC shipments, the second$best performance among the -op$@ PC
19Ms :o#ever, DellFs shipments #ere do#n by @ per cent, reflecting the it8s
continued struggles Despite this, the shipment gap bet#een Dell and :P
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remained constant bet#een the second and first quarters of 500J, at .J la"h
units Most of the -op$@ PC 19Ms had a strong quarter, #ith four of them posting
a sequential increase in sales Hurthermore, four of the -op$@ e&perienced
double$digit gro#th compared to the same period
Increa"ing A"ia mar1et "hare
-he -op$D !sian PC vendors Lenovo, !cer Q -oshiba Corp generated @6D per
cent of the combined shipments of the -op$5 (orth !merican PC vendors, :P
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and Dell, up @> per cent in the prior quarter -his figure illustrates that the !sian
PC 19Ms can increase their penetration of the mar"et even #ithout ma+or
Lenovo to e3pand rural mar1et
In !ugust, there #ere t#o big events ta"ing place in L9(1=1 group L9(1=1
published its lu&uriant achievements in the first financial quarter of 500J
Hinancial report sho#s, in the first financial quarter #hich ended at Pune D0th, the
net profit of L9(1=1 reached )*?667>mln, #hich #as .57 times of the
)*?@5.mln at the same period of last year -he sales volume of this quarter #as
)*?D,/56@mln, #ith a gro#th rate of .5/E over the same period of last year
Meantime, L9(1=1 initiated the pro+ect to e&pand the rural mar"et <!s a
development goal for the second phase of L9(1=1 Dream Plan, #e hope that in
the future three years, #e could introduce the I- products of L9(1=1 into .00
thousand administrative villages and influence and drive D00 thousand
administrative villages !t the same time, #e plan to enable more than Dmln
farmer families to afford and ma"e good use of I- products< Chen *haopeng, the
senior vice president of L9(1=1, said
6ettle in the mar1et by low price
L9(1=1 stepped into the rural mar"et by starting the Dream Plan for the rural
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mar"et %ith the economic development, the purchase demand for computers in
regions of to#n$level gradually became obvious Based on mar"et survey,
L9(1=1 got the conclusion that the psychological price level of the computer for
people in to#ns and villages #as bet#een 'MB D,000 and @,000 -hatFs #hy
L9(1=1 chose to produce computers at the price level of 5///
-hough L9(1=1 has successfully settled do#n in rural mar"et #ith lo# price
level, mar"et cultivation is still a hard and long process (o# L9(1=1 has built
D,000 franchised stores in five$grade and si&$grade mar"ets, #ho also offer
corresponding after$sale services In Pune of 500J, L9(1=1 further divided the
mar"et and developed the ne# rural mar"et business pointedly -he company
carried out a list of large$scale mar"et populari,ation activities including <Dream
9&press in 1ne -housand Campus<, <)nder the Blue *"y< and <1lympic
L9(1=1 -ravel in 1ne -housand =illages< )p till no#, >mln users in to#ns
have got L9(1=1 computers !s a result, L9(1=1 achieved a fast gro#th rate
#hich #as nearly t#ice of the average mar"et gro#th rate and also a leading
position in rural mar"et *tatistics sho#, in 5006 the sales volume of L9(1=1
PCs in rural mar"et e&ceeded .mln, #ith a gro#th rate of D7JE over the same
period of last year
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Improve the brand by good "ervice
!t China PC Mar"et -rend Horum held by IDC, IDC predicted that, the PC
shipment in Chinese mar"et in 500J #ill reach at least 5Jmln, #ith a high gro#th
rate of .//E over last year, occupying .0.E of the shipment in the #orld But at
present the homogeni,ation trend of PC products become more and more
obviously and the competition bet#een PC producers is becoming more and
fiercer Consequently, price battle naturally behaves as the main instrument in the
competition%hen more and more PC producers participated in the competition in
rural mar"et, price battle began In this situation L9(1=1 shifted the attention
from lo# price to good service Chen *haopeng said, L9(1=1 #as negotiating
#ith the do#n$stream producers about ho# to provide some special solutions for
the rural mar"et -he first phase of Dream Plan has finished !s for the second
phase, L9(1=1 put for#ard three strategic measures
-he first is about the product L9(1=1 has customi,ed for the farmers a set of
computers #hich are easier to use at different price levels of 'MB .>//, .///,
5>// and 5/// !t the same time, the computers published this time have a
special application soft#are$Hortune$Ma"ing !ssistant, #hich is specially
developed for farmers !s for the construction of the commercial and service
system, L9(1=1 #ill carryout the construction of to#n and village sales net#or"
and #ill focus on about @,000 commission agents, in order to ma"e it convenient
for farmers to buy products Mean#hile, L9(1=1 #ill provide the farmers #ith
many learning opportunities by building 5,000 county$level and to#n$level
information stations and conducting long$term train service It #ill also e&ecute
the large$scale populari,ation activities of -ravel in =illages for over .@00
stations Chen *haopeng said, in the future five to ten years, the rural area #ill
become a .0mln$level mar"et L9(1=1 #ill ma"e full use of its o#n brand
advantage, integrate various resources and finally drive the development of the
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#hole PC industry
Lenovo announce" the Lenovo .'''
Bamily o P0" in India
Lenovo has announced the launch of its branded PCs in India -he company had
recently announced the global availability of the Lenovo D000 family of PCs for
the small business segments and for the consumers8 as #ell
-he ne# Lenovo D000 product family consist of the Lenovo D000 P series of
des"tops for small office and small business and Lenovo D000 C series of
noteboo"s targeted at small businesses and individual buyers Hor the consumer
audience they have Lenovo D000 R and Lenovo D000 : des"tops
Neera< 6harma; Managing 9irector; Lenovo 6outh A"ia
said,LLenovo designed the D000 product lines for customers see"ing innovative,
stylish and #orry$free PCsL :e added, K-he Lenovo D000 family presents an
attractive option to customers loo"ing for easy$to$use technology #ith
comprehensive service and supportL
Lenovo said that the launch of the Lenovo D000 series gives consumers and
small businesses a diverse, ground$brea"ing range of PCs tailored for the
demand of the Indian PC mar"et
Lenovo vie#s India as a strong platform for company8s "ey, and this move surely
strengthens Lenovo8s grip in India
Lenovo has also released a superior distribution model to successfully deal #ith
the diverse geographical spread in the country using regional distributors
identified to react faster to local reseller needs -hese distributors #ill be in
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addition to the five national distributors Lenovo currently has
Lenovo #ill also assertively loo" at gro#ing the -ier$II and III cities #ith an
increased channel and retail presence It #ill also build on its presence in
reaching consumer audiences through the e&clusive Lenovo storefronts, multi$
branded storefronts and service and support centers across India
-he company has also planned separate mediums for customers to access
service centers Lenovo8s T-hin"8 line of products, -hin"Pad and -hin"Center
PCs, #ill be brought under the program T-hin"Plus8 and serviced directly by I4M
Its ne# range, the Lenovo D000 family of PCs #ill be serviced under the program
TLenovo Care8, #here the consumer PC 2D000 R and :3 range #ill be serviced by
'- outsourcing and -=*9 PCs of small business segment 2D000 P and D000 C3
#ill be serviced by IBM
Anil Philip; 9irector; Mar1eting and 6trategy; Lenovo India said,L
-his is a ne# #ay of doing business and not +ust a product announcement %e
are touching every element of the customer purchase and e&perience cycle from
product, route to mar"et, mar"eting to service and supportL
Neera< 6harma said, K%e see the consumer business as a huge opportunity
and platform upon #hich #e can loo" to build a global brand identity for Lenovo in
India %e have re$aligned and strengthened our business model to focus on
customer needs and requirements and deliver in untapped mar"etsL
4ollywood "tar" 6ai Ali Chan and 6oha Ali Chan #ill be endorsing
Lenovo8s products K%e8ve chosen them carefully to reflect our values of
innovation, e&cellence and passion -hey are, #e believe, on the path to mega
stardom, fan follo#ing and commercial success -hey appeal to young and old
ali"e as #e believe our PCs and noteboo"s #ill too,L said Neera< 6harma?
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-he Lenovo P.0@ des"tops are !MD processor based and developed for small
business$small office customers #ho #ant a consistent, trouble free PC featuring
modern design silhouettes -he P series des"tops feature a color$contrasting
front be,el, curved design components, custom designed side$access air
-he Lenovo D000 noteboo"s e&emplify a distinct entrepreneurial persona by
merging the most successful components of enterprise level, -hin"Pad$inspired
technologies, #ith the latest Lenovo innovations to create stylish noteboo"s that
users can depend on
-he Lenovo C.00 noteboo"s are designed for mobile small business
professionals and individuals #ho #ant a trouble free, yet po#erful noteboo" PCs
that offer #ireless connectivity, built$in service tools and multimedia features
encased in a stylish and functional design -he ne# C.00 combines a slee"
silver e&terior #ith solid performance for the value and service$conscious
-he Lenovo D000 R PCs incorporates features such as the Pog Dial and Digital
Media Platform that allo#s a user to s#itch bet#een music, movies, games or -=
at the turn of the dial 1ne -ouch 'ecovery allo#s the user to recover a PC to its
last bac"ed$up state #ith the press of a button
'ecord no# soft#are can help burn data, music and video files easily into CD,
=CD, data CDs, create movie and data D=Ds #hile using another function -he
*ilent 1peration function puts the machine into the Ruiet Mode reducing the
noise heard from the machine 1ptions of ./L -H- LCD and 50L -H- LCD #ill be
available and these come integrated #ith a PC camera
-he Lenovo D000 : is positioned for the mainstream home segment It comes
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#ith features such as 1ne -ouch 'ecovery on D1* and !nti$Bacterial "eyboard
It also comes standard #ith a :igh Bright .JL flat C'- #ith upgrade option of .@L
-H- LCD and .JL -H- LCD -he D000 : des"tops have the Po#er 1n button on
top of the CP), a design innovation to ensure that the users doesn8t have to bend
#hile s#itching on the po#er, in addition a uniquely designed handle that ma"es
it easy to carryCustomers #ill get a Lenovo .57 MB memory "ey on purchase of
D000 R and D000 : during the launch
-he Lenovo D000 PCs incorporate a collection of simple and convenient Lenovo
Care productivity tools that help ma"e o#ing and operating a PC a #orry$free
e&perience for small business and individual users %ith Lenovo Care, PC
maintenance and service guess#or" is replaced by autonomic tools to help ma"e
PCs self$reliant Hor e&ample, instead of manually locating and applying critical
system updates, Lenovo D000 PCs identify and updates its o#n soft#are Lenovo
Care tools can help user streamline maintenance tas"s to "eep PCs running li"e
ne# -his feature is only available on the Lenovo P series des"tops and Lenovo C
series noteboo"s
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Lenovo 0are help" le""en the need or a
dedicated IT help de"1 by o5ering a
central location or "uch u"eul tool"
! one$button system recovery to help users detect, get help and recover systems
from shattering soft#are failures caused by today8s viruses and mal#are
 !utomatic updates that automatically do#nload and set up critical updates
on a user$configured schedule to help "eep the system operating at pea"
 Performance restoration to "eep the PC running li"e ne# #ith patented
re+uvenation technology that can restore the system to a previous bac"up,
#hile preserving original settings
 9asy connectivity for simple #ired or #ireless set up for home office, office
and leisure connections
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Lenovo plan" fr"t 2urope actory
Computer ma"er Lenovo Group #ill set up a plant in Poland, its fifth ne# facility
this year, as the Bei+ing$based firm tries to gro# its business in 9urope Lenovo
said, it #ould invest ?50 million to build s factory in the Legnica *pecial 9conomic
Oone in Poland, #hich #ould employ .,000 people
It is the fifth ne# facility announced by the computer ma"er this year and the first
in 9urope K1ur ne# plant in Poland is an e&ample of Lenovo8s #orld$sourcing
strategy in action,L said Gerry *mith, senior vice$president of Lenovo8s global
supply chain
K%orld$sourcing strategyL refers to utili,ing resources at the most suitable place
and in the most appropriate #ay -his year, Lenovo has announced four ne#
facilities in *hanghai, Baddi of India, Monterrey of Me&ico, and (orth Carolina
-he polish factory #ill assemble, distribute and ship Lenovo computers for
customers in 9urope, the Middle 9ast and !frica, #here Lenovo8s business gre#
by .7 percent year$on$year in the previous quarter to ?776 million ; 50 percent of
its total
-he facility #ill manufacture 5 million computers #hen it is completed in the third
quarter of ne&t year -he company has almost D6 percent of the mar"et share in
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china and about 7 percent #orld#ide, #restling against !cer for third position
behind :P and Dell
In the third quarter, IDC said Lenovo #as (o D, #ith 75 percent of global mar"et
share, #hile Gartner said !cer #as third #ith 7. percent of the mar"et share,
both leading the other by 0. of a percentage point in the t#o reports
Mang Muanqing, chairman of Lenovo, said in an earlier intervie# #ith China Daily
that the integration #ith IBM8s PC unit, #hich the Chinese firm bought in 500@,
#as complete and the goal for the ne&t phase is to get quality gro#th ; especially
in the regions outside China and in the consumer computer mar"et 9urope is a
"ey strategic mar"et, and battleground, for !cer and Lenovo Lenovo tried to bid
for Pac"ard Bell, 9urope8s largest local computer ma"er, to strengthen its position
on the continent, but !cer #on the right to buy Gate#ay, #hich has a ma+or
position in Pac"ard Bell
!cers action served both as an offense to e&pand its position in the region, it8s
most important mar"et, but also as a defense to slo# Lenovo8s pace
-he change prompted Lenovo to speed up its efforts on a local facility in 9urope
to better serve customers
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4angalore i" Lenovo(" mar1eting hub
!fter emerging as the leading global destination for investments in the I- Q I-e*
sectors Bangalore is no# pioneering another offshore business opportunity for
M(Cs -he Chinese PC mar"et Lenovo has set up its global mar"eting in
Bangalore, a testimony to the city8s s"ills in advertising and mar"eting, to serve
the global mar"et
%ithin t#o years of starting its operations in India after acquiring the PC business
of IBM, Lenovo has identified Bangalore to drive its global mar"eting initiatives
Its hub is in Bangalore for this purpose #ill manage and trac" the effectiveness of
the company8s mar"eting strategy across the #orld
K%e have one of the strongest mar"eting teams in India Probably, our Indian
team is one of the best creative teams in the entire operation %e have
e&perience in India on building consumer brands from scratch By setting up the
global hub here, #e #ill no# leverage the mar"eting talent available in India,L
said 9eepa1 Advani, "enior vice pre"ident and chie mar1eting
oDcer, Lenovo
-he mar"eting hub, set up by the company in Bangalore, is spearheaded by the
Lenovo India mar"eting team -he hub, #hich presently has J0 professionals,
including @0 creative specialists from 1gilvy Q Mather, Lenovo8s global media
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partner, #ill gradually scale up operations depending upon the quantum of #or"s
it handles
7ahul Agarwal; vice pre"ident ; mar"eting, Lenovo India, #ill head the
global mar"eting hub, apart from overseeing the company8s mar"eting in India
:e #ill report to !dvani -he company #ill shortly appoint a ne# mar"eting head
for Lenovo India Piyu"h Pandey; chairman o O8M India, #ill lead his
team for the Lenovo operation
-he initial focus of the hub #ill be to formulate mar"eting strategies and create
mar"eting deliverables for print and online :o#ever, the hub #ill not focus much
on television advertisement initially #ith the e&ception of China and India
-he company aims to use the hub to develop creative #or" in close partnership
#ith the local mar"eting leadership in different countries -he hub #ill trac" the
effectiveness of the mar"eting campaigns launched by the company around the
#orld It #ill also advise the mar"eting teams, in each of the countries the
company operates, to reuse assets it had created earlier for a similar campaign
K%e operate in more than 60 countries across the #orld -he local teams in those
countries have a tendency to go to the local agency for their mar"eting
deliverables, including advertisement and brochures *o there is not much
sharing of IP happening across different countries (o#, they #ill come to the hub
for their mar"eting requirements,L said !dvani -his #ill help the company in
customi,ing the e&isting assets and reusing them instead of recreating assets
-he company8s mar"eting heads from different countries #ill visit Bangalore for
regular interaction #ith the members of the mar"eting hub and give their local
insights on different advertisement campaigns -he Lenovo$1QM team, #hich
started functioning, has already created .00 mar"eting deliverables !ccording to
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the company, the level of locali,ation of advertisement content #ill vary from
country to country
-he company has put countries li"e India, China and Papan in a different
segment, #here the level of customi,ation of mar"eting deliverables #ill be little
higher than in countries li"e the )*, the )B and !ustralia
Lenovo(" 6erie" o Lab"
Lenovo prides itself on reliable service and great research and development
Lenovo8s Bei+ing plant contains a series of labs for conducting a variety of tests
-he first of #hich is "no#n as the Preload Lab -he purpose of the Preload Lab is
to ensure that the hard#are and soft#are on the computer are pre$tested and are
#or"ing together properly -he ne&t lab is the Hailure !nalysis Lab -his lab is for
testing components that are not compatible #ith Lenovo computers and trying to
understand #hy If Lenovo can understand #hy certain hard#are or soft#are fails
on its machines, it can adapt and become compatible #ith more technologies
-he ne&t lab is the Point Hailure !nalysis Lab Lenovo employees and suppliers8
engineers #or" together in this lab to fi& any compatibility issues they might
encounter -he final lab is the Customer *imulation Lab In this lab, Lenovo
employees use the computers to do resource$intensive tas"s li"e #atching
movies and playing games under demanding testing conditions Lenovo
computers are tested in rooms #here the temperature can range from D@ to 70
degrees and the humidity can range from 60E$70E Lenovo computers are
al#ays thoroughly inspected before deemed ready for shipment
Dept., of Commerce & Management Osmania College
Dept., of Commerce & Management Osmania College
Product Profle
The products of Lenovo are:
Lenovo Des"tops
Lenovo Laptops
Lenovo D000 P series des"tops
Lenovo D000 C series noteboo"s
Lenovo D000 R and Lenovo D000 : des"tops
Lenovo P.0@ des"tops
Lenovo C.00 noteboo"s
Ma<or 0ompetitor" or Lenovo
 :e#lett$Pac"ard 2:P3
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 Dell
 -oshiba
 *ony

Lenovo has @ most$threatening rivals, namely #P and 9ell
Incorporated in the Enited 6tate", To"hiba Corporation and 6ony
Corporation in >apan, and Acer, another 0hine"e computer manufacturer
based in Taiwan?
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Dept., of Commerce & Management Osmania College
-he ob+ectives of the Lenovo Company are as follo#s
$? -o determine up to #hat e&tent the Lenovo has satisfied the
-? -o "no# the mode of purchase by the consumers
.? -o "no# the type of usage made by consumers
*? -he services rendered by the dealer should be determined
/? -he consumers changing attitude should be recogni,ed
+? -o study price and trends
,? -o understand the advantages and limitations of the product
&? -o "eep in touch #ith the sales promotional activities done
%? -o determine the company and its dealers attachments #ith
$'? -o determine the place of Lenovo #ith respect to various companies
$$? -o determine the consumer satisfaction #ith regard to price and
$-? -o "no# #hether the consumers are a#are of all the products
released by the company
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7e"earch Methodology
Dept., of Commerce & Management Osmania College
'esearch refers to search for "no#ledge It is an art of the scientific
investigation 'esearch comprises definite problem -he research design
ascetically states the procedures of data collection and analysis of information
relevant to the problem
I have selected my study in descriptive research #hich includes surveys,
facts, findings, and enquiries -he method used for present study #as survey
method Data #as collected from field8s survey by the personal intervie#s #ith
consumers Primary data #as collected #ith the help of questionnaire for
FMA7C2TIN: 7262A70# I6 T#2 6G6T2MATI0 926I:N;
25ective Mar1eting 7e"earch
Mar"eting research is determined through the follo#ing steps
6tep $: 9efne the problem and re"earch
-he first step for the mar"eting research is to define the problem carefully and
agree on the research ob+ectives (ot all research pro+ects can be specific in their
ob+ectives *ome research is e&planisary its goal is together a preliminary data to
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shed light on the real nature problem and to suggest positive solution or ne#
idea *ome research id descriptive it seem to certain magnitudes
6tep -: 9eveloping the re"earch plan
It aims for developing the most effective plan for gathering the needed
information Design a research plan based on the data sources, research
approaches and contact methods
9ata collection
Hor quantitative research, the primary data collection is the questionnaires
Primary data
-he primary data is collected through questionnaires, #hich form the ma+or
part of the pro+ect
6econdary data
-he secondary data is readily available from the Dealer8s, ne#s maga,ines
Data li"e company profile and organi,ation procedures are obtained from the
0on"umer" are oten reluctant to ta1e the time to re"pond to
"urvey? Bor thi" rea"on re"earcher" have ound the
=ue"tionnaire" which may be intere"ting; unambiguou"; ea"y
to complete and generally non)burden"ome in order to
motivate re"pondent" to an"wer truthully and completely?
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7e"earch Approache"
Primary data can be collected from four #ays
$? 1bservational 'esearch
-? Hocus Group 'esearch
.? *urvey 'esearch
*? 9&perimental 'esearch
7e"earch In"trument"
Mar"eting researchers have a choice of t#o main research instruments in
collecting primary data from KquestionnairesL
-his part is being e&plained briefly in the follo#ing theories of approach
-hey are K*!MPLI(G PL!(L after deciding on the research approach and
the instruments -he mar"eting researchers must design a sampling plan
-his plan comprise of three parts
. *ample *i,e
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5 *ample )nit
D *ample Procedure
!n integral component of research design is the sampling plan *pecifically it
addresses three questions %hom to survey2-he sampling unit3, :o# many to
survey 2sampling si,e3, and :o# to select them2-he sampling procedure3
6ampling Enit
-he sampling units for the study consisted of respondents from all #al"s of
life, either se&, different age groups, different income group and so on, but all
residents of B)'(11L CI-M
6ampling 6iJe
Considering the nature and e&tent of the study and #ith the time constraints,
a sample si,e of .00 consumers #as chosen
6ampling Procedure
*imple random sampling method has been adopted for the study In random
sampling each element of the population has an equal chance of being selected
for the sample
0ontact Method
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1nce the sampling plan has been determined, the mar"eting researchers
must decide ho# the sub+ect should be contacted -he choices are mail,
telephones or personal intervie#s
6tep .: 0ollected Inormation
-he data collection phase of mar"eting is generally prone or error In case of
survey, four ma+or problems arise *ome respondents #ill not be at home and
must be re$contacted and replaced 1ther respondents #ill refuse to co$operate
6tep *: AnalyJe the Inormation
-he ne&t to last step in the mar"eting research process is to e&tract earliest
findings from the collected data -he researchers tabulate the data and levels in
the frequency distribution !verages and measures of dispersion are computed
for ma+or variables

Dept., of Commerce & Management Osmania College
Dept., of Commerce & Management Osmania College
!part from the needs and importance of the study, there are limitations also -he
limitations are as follo#sA
$? -he study is confined to Burnool city (ot the customers around the #orld
-? -he survey #as carried about 50 to D0 days, #hich #as a time constraint
.? -ime factor is the main limitation of the study
*? -he methods used in this pro+ect are random sampling methods and the
result obtained may not be fully accurate and believable
/? -he research has been centered to only .00 customers rather than
+? *ome of the customers are not interested to give the accurate information
about the product
,? -his study is based on the figure available and the information given by
the customers
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-he conclusions dra#n are sub+ected to the information provided by various
buyers contacted
Theoretical 4ac1ground o 0on"umer
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It is no longer enough to satisfy customers Mou must delight them
*atisfaction is a person feeling of pleasure or disappointment resulting from
comparing the products received performance is or 2out come3 in relation to his or
her e&pectations
!s this definition ma"es clear satisfaction is a function of received
performance and e&pectations %ith the performance falls sharp e&pectations,
the customer is dissatisfied If the performance e&ceeds e&pectations, the
customer is highly satisfied or delighted
Mini companies are aiming for high satisfactions because customers #ho are
+ust satisfied still find it easy to s#itch #hen a better offer comes along
-hose #ho are highly satisfied are much less ready to s#itch
:igh satisfactions or delights create an emotional brand #ith the brand (ot
+ust rational performance the result is high customer loyalty Nero&es senior
managers believes that a very satisfied or delighted customer is #orth tenth times
as much to the company as a satisfied customer ! very satisfied customer is
li"ely to stay #ith Nero& many more years and buy more than a satisfied
! customer8s decision to be loyal or to defect is the some of many small
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encounters #ith the company Consulting from forum corporation says that in
order for all this small encounters to add up to customers loyalty, companies
need to create a Kbranded customer e&perienceL in addition to customer value
e&pectations and satisfactions companies need to monitor their competitors
performance in this areas Hor e&ample a company #as pleased to find 70E of
his customers said they #ere satisfied
-hen the C91 found out that its leading competitors attended a /0E
customer satisfaction score :e #as further dismayed #hen he learned that this
competitor #as aiming to reach a /@E satisfaction score
!lthough the customer centered firm see"s to create high customer
satisfaction, its main goal is not to ma&imi,e customer satisfaction If the
company increases customer satisfaction by lo#ering its prices or increasing its
services, the result may be lo#er profits -he company might be able to increase
its profitability by means other than increased satisfaction 2for e&ample, by
improving manufacturing processes are investing more in ' Q B3, also the
company has many sta"e holders including employers, dealers, suppliers and
stoc" holders *pending more to increase customer satisfaction might divert
funds from increasing the satisfaction of other partners )ltimately the company
must operate on philosophy that it is trying to deliver faction to other sta"e
holders #ithin the constraints of its total resources
0u"tomer 6ati"action 6ervice
*tudied sho# that although customers are dissatisfied #ith one out of every >
purchases Less than @E of dissatisfied customers #ill complain Most customers
#ill buy less or s#itch suppliers Complaint levels are thus not a good measure of
customer satisfaction 'esponsive company measure customer satisfaction
directly by conducting periodic service, they sent questionnaires or ma"e
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telephone calls to a random sample of recent customers %hile collecting
customer satisfaction data, it is also useful to as" additional questions to measure
repurchase intention, this #ill normally be high if the customer8s satisfaction is
high It is also useful to measure the li"elihood or #illingness to recommend the
company and brand to others ! high positive #ord$of$mouth score indicates that
the company is producing high customer satisfaction
9efning 0u"tomer 6ati"action

1ver D@ years above P2T27 97E0C27 observed that a company8s first
tas" is to create customers But today8s customer8s faces a vast vary of product
and branch choices, prices and suppliers
%e believe that customers estimate #hich offer #ill deliver the most value
Customers are very valuable ma&i misers, #ithin the bounds of search costs and
limited "no#ledge, mobility and income and e&ceptions of value e&pectations
affects both satisfaction and repurchase probability
-he "ey to customer retention is Customer *atisfaction ! highly satisfied
$? *tay loyal longer
-? Buys more as the company introduces ne# products and upgrade
e&isting products
.? -al"s favorably about the company and its products
*? Pays less attention to competing brands and advertising and is less
sensitive to price
/? 1ffers products or services and ideas to the company
+? Costs less to serve than ne# customers because transactions are
-hus a company #ould be #ise to measure customer satisfaction regularly
Dept., of Commerce & Management Osmania College
-he company could phone recent buyers and inquire ho# many are :ighly
satisfied, satisfied, indifferent and dissatisfied
0on"umer 6ati"action
-oday in the consumer driven economy, all firms are engaged in a rat
race to attract customers and build a long$term relationship #ith their loyal
customers -he "ey to customers8 loyalty is through customer satisfaction !
satisfied customer #ill act as a spo"e person of the company8s product, and
bring in more buyers -here is the Pareto principle or the 70G50 rulesC it says
70 percent of one thing comes from 50 percent of another -hat is to say a
small percentage of loyal customers #ill lend a large #eight to the company8s
*o mar"eters have to ensure customers value satisfaction Hor this they
have to ensureA
• Products are developed to meet consumer requirements
• Brands are positioned so as to convey distinctiveness
• Communications are used to convey to consumer to e&perience
that goes on using a value added product
• Delivery to reinforce the promptness in ma"ing available to the
consumers a value added product
• 'elationships are built to offer lifetime customer value to enable the
consumer to e&perience value satisfaction
Dept., of Commerce & Management Osmania College
!ll the efforts of the mar"eters at trying to understand buying motives,
organi,ing buying behavior and #or"ing out suitable promotional strategy to suit
the consumer behavior are to ensure consumer satisfaction In today8s
competitive environment, #here companies are adopting various methods to
#hom the prospective consumers, mar"eters have to ma"e all efforts to
understand all the comple&ities #hich go into the buying behavior and frame
mar"eting programs suitable to the target mar"et
Dept., of Commerce & Management Osmania College
Proe""ional" Number o
9mployees D@ 35%
Businessmen D5 32%
*tudents 5D 23%
1thers .0 10%
Total $'' $''L
0OLEMN 0#A7T 72P7262NTIN: T#2 E6A:2 OB Pc(" 4G
Dept., of Commerce & Management Osmania College
!ccording to the survey, the above table indicates that, D@2D@E3 of
respondents are 9mployees, D52D5E3 of respondents are Businessmen, 5D25DE3
are *tudents, and .02.0E3 are other professionals #ho are using PC8s Hrom the
above table #e can conclude that 9mployees and Businessmen are using PC8s
effectively than compared to the *tudents and 1ther professionals
-? IN0OM2 L2!2L OB 726PON92NT6 W#O A72
E6IN: P0(6K
Income Level" Number o
@000$.0000 55 22%
.0000$.@000 5@ 25%
.@000$50000 DD 33%
!bove 50000 50 20%
Dept., of Commerce & Management Osmania College
Total $'' $''L
4A7 0#A7T 6#OWIN: T#2 IN0OM2 L2!2L6 OB
.? W#AT TGP2 OB L2NO!O 6G6T2M 9O GOE #A!2K
Dept., of Commerce & Management Osmania College
Type o "y"tem Number o
Des"top J5 2%
Laptop 57 2!%
Total $'' $''L
9OE:#NET 0#A7T 72P7262NTIN: T#2 TGP2 OB L2NO!O
6G6T2M A0IEI729 4G 726PON92NT6
Hrom the above table #e can state that J52J5E3 of respondents
acquire Des"top PC8s, and 57257E3 of respondents use Laptops -he ma+ority of
the respondents are using des"top computers
Dept., of Commerce & Management Osmania College
*? MO92 OB PE70#A62 OB L2NO!OK
Mode o Purcha"e Number o
Direct Payment 70 !0%
Installments 50 20%
Total $'' $''L
PE70#A62 OB L2NO!O
Hrom the opinion of the respondents stated in the above table,
70270E3 acquire the Lenovo PC8s through direct payment, and 50250E3 of
respondents purchase Lenovo through Installments

Dept., of Commerce & Management Osmania College
/? W#G 9O GOE P72B27 L2NO!OK
Bactor" Number o
Price ./ 1"%
Ruality @> 5#%
Configuration .0 10%
*ervices .J 1%
Total $'' $''L
LIN2 0#A7T 72P7262NTIN: T#2 INBLE2N0IN: BA0TO76
TO P72B27 L2NO!O
Dept., of Commerce & Management Osmania College
-he above table states that ./2./E3 of respondents prefer Lenovo
due to Price factor, @>2@>E3 of respondents prefer Lenovo due to its Ruality,
.02.0E3 voted for Configuration, and .J2.JE3 voted for *ervices Most of the
respondents ie, @>E prefer Lenovo because of its good quality
Bactor" Number o
:ighly *atisfied D/ 3"%
Moderately *atisfied 5D 23%
*atisfied DD 33%
(ot *atisfied @ 5%
Dept., of Commerce & Management Osmania College
Total $'' $''L
0ON2 0#A7T 92607I4IN: T#2 0ON6EM27
!ccording to the survey, the above table states that, D/2D/E3 of
respondents are :ighly *atisfied #ith Lenovo, 5D25DE3 of respondents are
Moderately *atisfied, DD2DDE3 of respondents are *atisfied, and @2@E3 are (ot
*atisfied 1verall the satisfaction of respondents is more #hich is a good sign for
the Lenovo PC ma"ers
Bactor" Number o
Hriends 55 22%
'elatives .D 13%
Dept., of Commerce & Management Osmania College
!dvertisements @7 5!%
1thers J %
Total $'' $''L
4A7 0#A7T 72P7262NTIN: T#2 BA0TO76 INBLE2N0IN:
TO PE70#A62 L2NO!O
!bove table indicates that, 55255E3 of respondents purchase Lenovo
due to the influence of Hriends, .D2.DE3 of respondents are influenced by
relatives, @72@7E3 of respondents are influenced by !dvertisements, and J2JE3
are influenced by 1ther factors -he above table states that most of the
respondents ie, @7E are influenced by !dvetisements -his indicates that the
!dvertisements are proving effective in the sales of Lenovo
Bactor" Number o
Dept., of Commerce & Management Osmania College
=ery :igh .5 12%
:igh .> 1#%
Medium >7 #!%
Lo# 56 2$%
Total $'' $''L
TOWA796 T#2 P7I026 OB L2NO!O
Hrom the above table #e can obtain the opinion of the respondents
about the prices of Lenovo .52.5E3 of respondents replied that the price of
Lenovo is =ery :igh, .>2.>E3 said :igh, >72>7E3 of respondents voted the price
of Lenovo is Medium, and 56256E3 of respondents said the price is Lo#
Dept., of Commerce & Management Osmania College
Bactor" Number o
:ighly *atisfied >J #%
Moderately *atisfied .7 1!%
*atisfied D0 30%
(ot *atisfied @ 5%
Total $'' $''L
4A7 0#A7T 92607I4IN: T#2 0ON6EM27 6ATI6BA0TION
!ccording to the survey, the above table indicates that, >J2>JE3 of
respondents are :ighly *atisfied #ith the quality of Lenovo, .72.7E3 are
Dept., of Commerce & Management Osmania College
Moderately *atisfied, D02D0E3 of respondents are *atisfied #ith the quality, and
@2@E3 are (ot *atisfied #ith the quality of Lenovo Hrom the survey done, #e can
state that more number of respondents are *atisfied #ith the quality of Lenovo
Bactor" Number o
Mes 75 !2%
(o .7 1!%
Total $'' $''L
-he above table sho#s the brand loyalty of respondents to#ards
Lenovo -he number of respondents #ho are loyal to Lenovo is 75275E3 and
.72.7E3 of respondents are not loyal to the brand as they are not satisfied #ith
the brand 1verall the respondents #ho are loyal to the brand are more ie, 75E
Dept., of Commerce & Management Osmania College
$$? TO W#AT 2MT2NT 9O26 T#2 47AN9 IMA:2
INBLE2N02 T#2 0ON6EM27 TO PE70#A62 L2NO!OK
Bactor" Number o
:igh @5 52%
Moderate D7 3!%
Lo# .0 10%
Total $'' $''L
0GLIN97I0AL 0#A7T 72P7262NTIN: 47AN9 IMA:2 OB
Dept., of Commerce & Management Osmania College
Hrom the above table #e conclude that, @52@5E3 of respondents are
:ighly influenced by the brand image to purchase Lenovo, D72D7E3 of
respondents are Moderately influenced by the brand image, and .02.0E3 of
respondents are not influenced by the brand image -he survey states that the
brand image of Lenovo is good
Bactor" Number o
=ery Impressive D7 3!%
Moderately Impressive 55 22%
Impressive 56 2$%
(ot Impressive .> 1#%
Total $'' $''L
Dept., of Commerce & Management Osmania College
!ccording to the survey, the above table indicates that, D72D7E3 of
respondents said that sales promotional activities of Lenovo are =ery Impressive,
55255E3 of respondents said Moderately Impressive, 56256E3 of respondents
replied as Impressive, and .>2.>E3 of respondents are (ot Impressive #ith the
sales promotional activities of Lenovo
Bactor" Number o
9&cellent >J #%
Good D7 3!%
Hair 0/ "%
Dept., of Commerce & Management Osmania College
Poor 06 $%
Total $'' $''L
A9!27TI62M2NT6 OB L2NO!O
Hrom the above table #e indicates that, >J2>JE3 of respondents said
that the !dvertisements of Lenovo are 9&cellent, D72D7E3 of respondents said
that the !ds of Lenovo are Good, /2/E3 of respondents said the !ds are Hair,
and the remaining 626E3 of respondents said that the !ds are Poor 1verall study
states that the advertisements are proving effective in the sales promotion of
$*? #OW 9O GOE B22L ABT27 6AL26 627!I02 OB
Bactor" Number o Percentage
Dept., of Commerce & Management Osmania College
9&cellent D7 3!%
Good >5 #2%
Hair .5 12%
Poor 07 !%
Total $'' $''L
6AL26 627!I02 OB L2NO!O
!ccording to the survey, the above table indicates that, D72D7E3 of
respondents feel 9&cellent after sales service of Lenovo, >52>5E3 said they feel
Good, .52.5E3 said Hair, and 727E3 of respondents said Poor
Dept., of Commerce & Management Osmania College
Bactor" Number o
Mes .6 1$%
(o 7> !#%
Total $'' $''L
TO 0#AN:2 L2NO!O 47AN9
Hrom the above table indicates that, .62.6E3 of customers #ant to
change the Lenovo as they are not satisfied #ith the brand, and 7>27>E3 of
consumers don8t #ant to change as they are satisfied #ith Lenovo brand
Dept., of Commerce & Management Osmania College
Dept., of Commerce & Management Osmania College
 %&A'( )*A+, of Lenovo is very good
 Ruality is the strength of Lenovo
 !fter *ales *ervices is also good for Lenovo
 It is a Multinational Company
 Price of Lenovo Pc8s are high
 *ales Promotional !ctivities of Lenovo is Limitted
 *ervice centers are less
 If the Lenovo Company can decrease the prices of Pc8s by some
value, it can capture more mar"et
 9ffective and ne# *ales Promotional !ctivities should be implemented
by Lenovo
 *ervice centers should be more in number

-hreatens from other competitors in the mar"et such as -.*/A01
A-,&1 2.'31 and T.24)%A etc,
Dept., of Commerce & Management Osmania College

-hreatens from the changing of customers from time$to$time

Dept., of Commerce & Management Osmania College
$? It is found that the mode of purchase of Lenovo by th consumers is
through Direct Payment
-? It is found that ma+ority of consumers are satisfied #ith the quality of
.? It is found that the influencing factor for the consumers to purchase
Lenovo is through !dvertisements
*? -he survey indicates that ma+ority of the consumer are Loyal to
Dept., of Commerce & Management Osmania College
/? -he advertisements of Lenovo are e&cellent
Dept., of Commerce & Management Osmania College
$? -he Lenovo should improve its quality
-? -he Lenovo should reduce its prices
.? -he Lenovo should improve its post sale services
*? -he Lenovo should maintain its Brand image
/? -he Lenovo should improve its *ales promotional activities
Dept., of Commerce & Management Osmania College
9ear 6irNMadamO
!am 6AMI?6G29 pursuing III G2A7 44M in O6MANIA
92:722 0OLL2:2 CE7NOOL? As per t"e partial ful#llment of
m$ course, ! "a%e to complete t"e pro&ect 'or( entitle) FA
So please co*operate in #lling t"e +uestionnaire.
Dept., of Commerce & Management Osmania College
Name: Male [ ] Bemale [
$? P7OB266ION [
A. 9mployee %. Businessmen -. *tudent (. 1thers
-? IN0OM2 L2!2L @Per MonthA
[ ]
A.@000$.0000 %. .0000$.@000 -. .@000$50000 (. !bove 50000
.? What type o Lenovo "y"tem do you haveK
[ ]
A. Des"top %. Laptop
*? Mode o purcha"e o LenovoK
[ ]

A. Direct Payment %. Installment
/? Why do you preer LenovoK
[ ]

A. Price %. Ruality -. Configuration (. *ervices
+? To what e3tent you are "ati"fed with LenovoK
[ ]

A. :ighly satisfied %. Moderately satisfied -. *atisfied (. (ot satisfied
,? What actor inPuenced you to buy LenovoK
[ ]

A. Hriends %. 'elatives -. !dvertisement (. 1thers
&? What i" your opinion about price" o LenovoK
[ ]

A. =ery :igh %. :igh -. Medium (. Lo#
Dept., of Commerce & Management Osmania College

%? Are you "ati"fed with =uality o LenovoK
[ ]

A. :ighly satisfied %. Moderately satisfied -. *atisfied (.(ot satisfied
$'? Are you loyal to your brandK
[ ]

A. Mes %. (o
$$? To what e3tent doe" the brand image inPuence the
con"umer to purcha"e LenovoK
[ ]
A. :igh %. Moderate -. Lo#
$-? What i" your opinion about "ale" promotional
activitie" o LenovoK [ ]

A. =ery Impressive %. Moderately Impressive -. Impressive (.(otImpressive
$.? What i" your opinion on Adverti"ement" o
LenovoK [ ]
A. 9&cellent %. Good -. Hair (. Poor

$*? #ow do you eel ater "ale" "ervice" o LenovoK
[ ]
A. 9&cellent %. Good -. Hair (. Poor
$/? 9o you want to change LenovoK
[ ]
A. Mes %. (o
Any opinion toward" product improvement
Dept., of Commerce & Management Osmania College
Dept., of Commerce & Management Osmania College

'e,site 5

Mar(eting Management 5 /4)L)/ 7.TL,&

Mo)ern Mar(eting 5 &.2.'./)LLA)1 %4A+WAT)
Dept., of Commerce & Management Osmania College