Lenovo-Building a Global Brand

Sarita Ranasingh Snehashree Mitesh Sahu Vineet Kumar Parikshit Gupta Smriti

The Proceedings
˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ Demand For Computers Concepts Used By \LENOVO[ Un-branding IBMs Thinkpad and Thinkcentre. Positioning Brand \LENOVO[. Market Segmentation. Tackling with Competition . Pricing Strategy. Profitability.


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Demand for computers ˜ Stage of development ˜ I.T literacy ˜ Advanced technology ˜ Internet connectivity


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Comp. Literacy::Literacy of a Country 4/3/2011 Free template from www.com 4 .brainybetty.

com 5 .brainybetty.Marketing concept o Target market o Needs o Integrated marketing o Profitability 4/3/2011 Free template from www.

0 deliver as much as 15% savings in annual electricity cost ˜ Less thermal stress and last longer .0 ˜ More energy efficient and less carbon dioxide emission ˜ Energy star 4.Societal marketing concept ˜ Introduction of energy star 4.

4/3/2011 Free template from www.Un-branding What is the ³Thinkpad and Thinkcentre´ Legacy? Why Lenovo needs to ³Cannibalize´ it? Looks do matter .³Plain Jane Look´ It had same set of computer configuration for a long time so the sales had declined.com 7 .brainybetty.

So Companies like Dell and HP with their good looks took away its share to some extent.com . Configuration Change was not done in IBM. Plain Jane Look Though IBM is famous for quality configuration it is also known for its mundane looks.at is t e ³Thi No 2 brand -1997 No 9 brand -2007 - Thi - tr l g ´ Developing Countries are the main markets and as IBM is the has the 1st mover¶s adv. 8 Free template from www.IBM used the same configuration for a long time. The rapid change in technology also demands change in the machines .brainybetty. Cannibalize-Why?? A powerful brand sometimes acts as a bane-People expect products to match the previous known standards The IBM and Thinkpad. 4/3/2011 This also took away the customers from IBM and it suffered low sales . Thinkcentre tags can be used only for 5 years by Lenovo.

Branding LENOVO 4/3/2011 Free template from www.com 9 .brainybetty.

Cre i ilit Differentiation China=?? Features like latest configuration.brainybetty. It can use IBM logo Till 2010 Use the na e IBM o ti all to uil ran ³ E OVO´ Perfor ance Qualit St le Services 4/3/2011 Free template from www.com 10 .

Services Easy rdering Customer Support.brainybetty. Consulting Partner Training 4/3/2011 Free template from www. Training.com 11 .

Introduction Decline Product Life Cycle Growth Maturity .

˜ IBM missed the bus here. .Extension of the Maturity Phase ˜ More innovative and new products and services are required to be in the markets. ˜ Lenovo is \CATCHING UP[ from where IBM was left out.

.Evolution IBM¶s Mistake ‡ Did not modify its offerings regulary Lenovo¶s Strategy ‡ Be dynamic and keep changing as the situation demands.

Lapt p & t p al Individual Corporat buy r Indu try Gaint li odafon Small Bu in nit .

Segmentation ˜ Segment Marketing ‡ LENOVO for HOME : Y series ‡ LENOVO INNOVATION : 3000 series ‡ LENOVO BUSINESS TOOLS : Thinkpad ˜ Local Marketing ‡ LENOVO provides telephonic customer support in 15 languages. . ‡ LENOVO provides chat customer support in 15 languages.

Y.Y ² Principal Operation: Beijing.˜ Geographic Segmentation ² Executive Headquarters: N. Utmaco. N. Paris. CISCO. Microsoft. ² Sales Headquarters: Beijing. . Singapore. India. ² Collaborators : Siebel. Singapore. ² Manufacturing Centers: China. ˜ Relative Marketing ² Partners : IBM. Intel. Symantec. Vodafone.

˜ Mega marketing: ² NBA ‡ Lenovo: Official PC Partner of the NBA.300 games played during the regular season and playoffs.[ . Beginning the 2006-07 season. ² Olympic Partnership A worldwide partner for the 2008 Beijing Olympic Games and \Global Torch Relay. the NBA is utilizing Lenovo PCs across all 29 NBA arenas to support 1.

MAX M K T G R W T H MIN STARS(Dell.HP) Question Marks(ACER) BCG Matrix Cash Cows(Lenovo) MAX Dogs(FujitsuSiemens) MIN RELATI E MARKET SHARE .

‡ ‡ It is cashing on the na e of IBM thinkpad and thincentre at this instant. share. ‡ Th s UESTION MAR S. S rely they are getting bigger. ‡ Losing its share all over ‡ Hence a DOG . ‡ They are CASH COWS. astest growing Co p ter an fact ring co pany with low Mkt. ‡ Hence STARS.DELL HP ACER LENO O UJITSUSIEMENS ‡ Have highest Mkt. share(Neck and neck) and they are growing at a high pace.

g. Hardware prices will keep coming down.COST STR CT RE(LOW) Sitting on the HOT HARDWARE ZONE(CHINA). ERTICAL INTEGRATI N More partnerships e. AMD. DEGREE F GL BALIZATI N Maximum .

Competitor Analysis Who are the companies?? .

THINK PAD has still a lot of it) ˜ Mind Share(THINKPAD IS THINKPAD) .Analyzing Competition ˜ Market share(Lenovo is third after Dell and HP) ˜ Heart Share(Dell is on the TOP.

CRM and Customer Support. ˜ Value Priced Goods ² High Cost = High Quality machines is true indeed. ² Now Lenovo is Providing Low Cost .e.Good quality stuff. ² Building CRM by providing training . .Competition Strategies ˜ Flank Attack ² Attacking Dell at the point at which Dell won the Battle last time i. consulting etc.

Niche Marketing ˜ SECURITY ˜ WIRELESS CONNECTIVITY ˜ R&D (Collaboration with MIT in the US and IITs in India) .

Pricing ‡ What do you understand by Skimming skimming? ‡ Can it be applied in this case? As. A new BIG company was formed. This company initially used the IBM¶s pricing scheme. Which we ³can´ consider as SKIMMING done by a new Company.com 26 .In 2004-2005 it acquired IBM¶s PC manufacturing unit. 4/3/2011 Free template from www. in 2004 the name Lenovo was acquired .brainybetty. which wants to earn as much as possible.

Is it really that SIMPLE. Looks like Lenovo is still Skimming if only cost is considered. Now coming to Lenovo 3000 H desktop series ± A P4 processor in 18000.brainybetty.Pricing Today Dell which is the market leader offers an AMD Athlon processor in its lowest costing desktop worth $389(<16000 INR). 4/3/2011 Free template from www.com 27 .

com 28 .brainybetty.THE ANSWER IS ÛNOÜGUESS WHAT? High End technology Affordable Price Going Rate Pricing 4/3/2011 Free template from www.

4/3/2011 Free template from www.There is more BAD NEWS For Competitors.com 29 .brainybetty. ³Bread and Butter Products´ like ³The 3000 series´. High-end Products like Thinkpad and Thinkcentre.

brainybetty. 4/3/2011 Don¶t Forget to Generate olumes. ˜ They are doing what IBM did not do. Be a big firm give world class products.DOING WHAT IBM SHOULD HAVE DONE IN THE 1st PLACE!!!! ˜ The Product Mix now looks more powerful than before.com 30 . At least you won¶t loose your Market Share. Free template from www.

brainybetty.com 31 .Thanks For Being Patient !!!!! 4/3/2011 Free template from www.

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