MARKETING PLAN FOR LENOVO
By Student’s Name
Course codename Pro!essor’s name "n#$ers#ty name C#ty% State &ate o! su'm#ss#on
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A'stract In (ast t)o decades% *(o'a(#+at#on o! #ndustr#es ,as caused mar-et com.et#t#on to 'ecome !#erce and c,a((en*#n* #n t,e !ree mar-et economy/ T,e econom#c *ro)t, o! de$e(o.#n* nat#ons ,as (ar*e(y ,e(.ed s.ec#a(#+ed #ndustr#es #n t,e !#e(d o! In!ormat#on Tec,no(o*y to en,ance t,e#r .er!ormance and econom#c stren*t, so as to com.ete )#t, t,e 0or(d mar-et/ Com.et#t#on #n t,e d#*#ta( tec,no(o*y encoura*es (ead#n* esta'(#s,ed com.an#es suc, as Goo*(e% M#croso!t% &e(( and a..(e #nc to #n$ent and #ntroduce (atest !eatures #n t,e#r .roducts so as to ac,#e$e com.et#t#$e ad$anta*e as )e(( as to reta#n t,e#r 'rand #ma*e #n t,e )or(d mar-et/ But ,o) a ne)(y esta'(#s,ed .roduct can create *(o'a( a)areness rema#ns a cr#t#ca( #ssue 'ecause suc, .roducts need $#*orous mar-et#n* e!!orts and tec,n#1ues to create a 'rand #ma*e ),#(st com.et#n* )#t, *(o'a( com.an#es on .r#ces% .roduct !eatures% and a!ter sa(es ser$#ce/ T,#s .a.er documents ,o) t,e #m.(ementat#on o! (atest mar-et#n* too(s ,ad made t,e mer*er o! Leno$o PC )#t, IBM to 'e success!u(2 t,us 'ecom#n* num'er t,ree Com.uter Com.any #n t,e )or(d/ A(t,ou*, t,e com.any cons#stent(y #n$ests ,ea$#(y #n researc, and mar-et#n* .ort!o(#o act#$#t#es !or ac,#e$#n* success #n !#erce com.et#t#on o! d#*#ta( .roducts% #t st#(( needs an e!!ect#$e mar-et#n* strate*y so as to #m.ro$e #ts .ro!#ts and ca.ture t,e C,#nese IT mar-et/ Ne) Mar-et#n* .(ann#n* !ocus#n* on t,e 'rand strate*y #s t,e rea( #ns#*,t 'eyond .roducts and ser$#ces can create t,e #nterest o! consumers to c,oose Leno$o .roducts o$er e3#st#n* .roducts/ T,#s researc, .resents a concrete mar-et#n* .(an o! Leno$o !or #ts !uture *ro)t, 'y ana(y+#n* t,e .ast and current mar-et#n* .er!ormance o! t,e com.any/
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Ta'(e o! Contents E3ecut#$e Summary444444444444444444444444444///45 6/ Cor.orate O'7ect#$es444444444444444444444444444/8 9/ Mar-et#n* Aud#t and Ana(ys#s o! t,e Mar-et#n* and Mana*ement Ca.a'#(#t#es444/4/: ;/ S0OT Ana(ys#s444444444444444444444444444446< 5/ Mar-et#n* O'7ect#$es and Strate*#es o! Leno$o44444444444444//4466 8/ Mar-et#n* Pro*rams44444444444444444444444444////6= =/ Im.(ementat#on and Contro(4444444444444444444444//4//6> :/ Mar-et#n* Bud*et44444444444444444444444444446? Re!erences4444444444444444444444444444444/9<
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Executive Summary
Mer*ers and Ac1u#s#t#ons ,a$e 'ecome an e!!ect#$e mar-et#n* too( !or any esta'(#s,ed com.any to 'ecome *(o'a( and esta'(#s, #nternat#ona( 'rand #ma*e 'ut ,o) a ne)(y created com.any can 'u#(d *(o'a( 'rand a)areness and success!u((y creates *(o'a( 'rand #n a s,ort s.an #s a cr#t#ca( #ssue/ T,e econom#c and .o(#t#ca( re!orms o! C,#na ,as 'rou*,t tremendous c,an*es #n t,e #nte((ectua( (e$e( o! C,#nese% ),#c, o!!ers a ,u*e o..ortun#ty to Leno$o to understand t,e needs o! t,e#r .eo.(e and #ntroduce t,ose .roducts t,at sat#s!y t,e#r re1u#rements/ Accord#n* to t,e 'as#c !eatures o! macrosco.#c e3terna( en$#ronment% #! Leno$o )ants to create a 'rand #ma*e% #t s,ou(d 'r#n* re!orms #n t,e current mar-et#n* system% creates t,e un#!#cat#on *u#d#n* #deo(o*y% and ado.ts stren*t,ened core com.et#t#$e .o)er% and #ncor.orate mar-et and .roduct de$e(o.ment #n #ts #nte*rat#on strate*y/ On(y suc, e!!orts can conso(#date t,e (ead#n* .os#t#on o! Leno$o to )#n t,e #ntense mar-et com.et#t#on% and rece#$e t,e #ncom.ara'(e soc#a( and t,e econom#c e!!#c#ency/ Study on Leno$o’s mar-et#n* de$e(o.menta( .(an #s t,e a..(#cat#on o! strate*#c mar-et#n* mana*ement #n Leno$o Com.any/ By ana(y+#n* #nterna( t,e e3terna( en$#ronment and study#n* t,e !uture mar-et#n* de$e(o.ment% t,#s art#c(e ut#(#+es t,e -no)(ed*e and met,od o! t,e econom#c mana*ement% t,e mar-et#n*% t,e .eda*o*y so as to recommend su**est#ons !or !uture de$e(o.ment and .ro.ose t,e conce.t o! strate*#c mar-et#n* .(an and tact#cs !or Leno$o/ Bes#des% t,#s art#c(e )#(( a(so demonstrate ne) conce.t#on o! mar-et#n* .ro*rams% ),#c, )#(( ,e(. t,e com.any to esta'(#s, 'rand #ma*e )or(d)#de/ T,e Introduct#on o! t,e Leno$o Leno$o a(so .o.u(ar as Le*end% )as #ncor.orated #n Be#7#n*% 'y e(e$en sc#ent#sts ),o ,ad a $#s#on to esta'(#s, a com.any% ),#c, )ou(d o!!er t,e 'ene!#ts o! #n!ormat#on tec,no(o*y to t,e C,#nese commun#ty/ 0#t, RMB 9<<%<<< e1u#$a(ent to "S @98%<<<% as
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ca.#ta( #n$estment% t,e com.any )as esta'(#s,ed #n a sma(( s,o. #n a rented s.ace% ),#c, o.ened t,e ne) era o! PCs #n C,#na/ S#nce #ts #nce.t#on% t,e com.any ,as c,an*ed t,e (#$es o! C,#nese/ In t,e 'e*#nn#n* t,e com.any (aunc,ed PCs !or ,ouse,o(ds% and t,en #t de$e(o.ed PC usa*e #n C,#na 'y creat#n* reta#( s,o.s nat#ona( )#de/ Bes#des% #t a(so .#oneered #n de$e(o.#n* Le*end C,#nese C,aracter Card% ),#c, ,as an a'#(#ty to trans(ate En*(#s, o.erat#n* so!t)are #nto C,#nese c,aracters% and ac,#e$ed success (#-e PCs )#t, one 'utton access to t,e Internet/ In 9<<;% t,e com.any c,an*ed #ts 'rand !rom Le*end to Leno$o% us#n* t,e Le !rom Le*end% and add#n* no$o% ),#c, means !or ne) #n Lat#n% to demonstrate t,e #nno$at#on s.r#ts at t,e core o! t,e com.any/ In Au*ust 9<<5% Leno$o% dec(ared t,e ac1u#s#t#on o! IBM’s PC &#$#s#on )#t, a tota( )ort, o! 69/8 '#((#on "S do((ar t,at #nc(uded s#3 '#((#on Leno$o’s stoc- and s#3 and ,a(! '#((#on o! cas,/ T,#s ac1u#s#t#on #n 9<<8 ena'(ed Leno$o to 'ecome t,e t,#rd(ar*est PC Com.any #n t,e )or(d c(ose(y !o((o)ed 'y P,#(#.s and &e((/ Today% t,ese t)o com.an#es !unct#ons under t,e Leno$o 'rand/ 0#t, t,e (andmar- ac1u#s#t#on o! IBM’s PC &#$#s#on% Leno$o ,as 'ecome a (eader #n t,e *(o'a( PC mar-et% )#t, near(y @6; '#((#on #n annua( re$enue% and .roducts ser$#n* consumers and enter.r#ses )or(d)#de/ In C,#na% t,e com.any ru(es o$er more t,an onet,#rd o! t,e PC mar-et% co$er#n* a(( se*ments o! soc#ety DRamstad 9<<8/ 1. Corporate Objectives
Leno$o’s mot#$at#ons 'e,#nd #ts ac1u#s#t#on demonstrate un.ara((e( cor.orate o'7ect#$es/ Se$era( o'7ect#$es a..ear to ,a$e dr#$en t,e com.any to ma-e t,e ac1u#s#t#on/ It seems t,at t,e -ey o'7ect#$es 'e,#nd t,e ac1u#s#t#on )ere to ena'(e t,e Leno$o to *(o'a(#+e and trans!orm #nto an #nternat#ona( cor.orat#on u(t#mate(y2 to reduce t,e cost o! .roduct#on 'y mer*er )#t, IBM% ),#c, cou(d ,e(. Leno$o #n t,e su..(yc,a#n mana*ement !rom IBM2 to
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o'ta#n an #nternat#ona( 'rand !rom IBM2 access to ne) customers as )e(( as to e3.and t,e com.any’s structure so as to stren*t,en #ts 'ar*a#n#n* .os#t#on )#t, su..(#ers/ Internat#ona(#+at#on T,e ac1u#s#t#on )as necessary and t,e !astest )ay !or Leno$o to tar*et ot,er unta..ed mar-ets !or #ncreas#n* #ts sa(es and e3.ans#on/ S#nce 9<<<% t,e com.any’s mar-et s,are #n t,e C,#nese mar-et dec(#ned 'ecause o! decrease #n sa(es and demand/ Bes#des% se$era( PC Com.an#es ado.ted a .r#ce com.et#t#on strate*y #n order to ca.ture t,e#r mar-et s,are/ Moreo$er% )#t, C,#na enter#n* 0TO% t,e 'arr#er on F&I *radua((y remo$ed and t,us% C,#na .a$ed t,e )ay to PC *#ants suc, as IBM% &e(( and P,#((#.s/ At suc, a t#me% t,e com.any dee.(y em.,as#+ed t,at #nternat#ona(#+at#on )as an essent#a( ste..#n* stone !or !uture *ro)t,/ T,#s MA )#t, IBM ,as o!!ered !ast routes !or Leno$o to 'ecome t,e t,#rd (ar*est PC .roducer #n t,e )or(d DC,en 9<<=/ Ac1u#r#n* S-#((s and Tec,no(o*y Anot,er -ey cor.orate o'7ect#$e )as to *a#n access to t,e (atest tec,no(o*y so as to secure R& s-#((s !rom IBM/ T,#s )as anot,er strate*#c o'7ect#$e !or o$erseas e3.ans#on/ From Leno$o’s .ers.ect#$e% #! #t #s a'(e to #nte*rate success!u( )#t, IBM #n term o! de$e(o.#n* s-#((s% t,e com.any )#(( 'ecome a (ar*e #nte*rated PC com.any% ),#c, )ou(d !urt,er en,ance R&% .roduct#on and manu!actur#n*% mar-et#n*% d#str#'ut#on and a!tersa(esser$#ce/ T,#s )as cons#dered to 'e one o! t,e -ey o'7ect#$e Leno$o cou(d ac,#e$e t,rou*, mer*#n* )#t, IBM ena'(#n* Leno$o to assess a .otent#a( com.et#t#$e ad$anta*e t,rou*, reduced .roduct#on costs/ Ac1u#s#t#on o! a Brand T,e cor.orate o'7ect#$e 'e,#nd t,e mer*er )as an a*reement )#t, IBM to use t,e #nternat#ona( 'rand% T,#n-Pad% !or 8 years/ C,#nese Industr#es encounter -ey c,a((en*es to se(( t,e#r .roducts #n t,e #nternat#ona( mar-et due to a'sence o! 'rand #ma*e and Leno$o )as success!u( #n se((#n* PCs )or(d)#de )#t, t,e su..ort o! IBM/ Ac1u#r#n* a )e(( esta'(#s,ed #nternat#ona( com.any ena'(ed Leno$o to use t,e 'rand o! t,e IBM dur#n* t,e #n#t#a( sta*e o! #ntroduc#n* t,e .roduct #n t,e #nternat#ona( mar-et t,at
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#ncreased t,e )#((#n*ness o! customers to 'uy t,e .roduct/ Ta-#n* a su..ort o! a )e((-no)n 'rand suc, as IBM en,anced t,e #m.ress#on o! 'uyer to)ards PCs2 t,us a((o)#n* t,e com.any to ma-e a$a#(a'(e #ts .roduct at t,e ,#*,er end o! t,e mar-et DHamm 9<<8/ Access to Ne) Customers One o! t,e most c,a((en*#n* strate*#c o'7ect#$es !or t,e com.any #s to ca.ture ne) customers #n t,e 0or(d mar-et #n order to en,ance *ro)t, t,rou*, #nternat#ona( e3.ans#on/ As t,e com.any ,ad ac,#e$ed saturat#on #n sa(es #n t,e C,#nese mar-ets and ,ard(y mo$ed !urt,er/ 0#t, t,e mer*er% Leno$o esta'(#s,ed #ts strate*#c !ocus on #ts PC manu!actur#n* and made 'etter use o! t,e #nternat#ona( 'rands% T,#n-Pad !or 8 years/ T,rou*, t,#s )ay Leno$o )as success!u( #n reac,#n* more ne) users and 'o(ster *ro)t, )#t, #nternat#ona( e3.ans#on/ Cross Cu(ture and Peo.(e Asset One o! t,e '#**est c,a((en*es !or t,e com.any #s ,o) to mana*e #ts most s#*n#!#cant asset .eo.(e/ As t,e strate*#c a#m o! t,e com.any #s to e3.and #ts mar-et 'eyond C,#na and .art#c#.ate on 0or(d scenar#o% Leno$o not on(y e3.ected c,an*es #n sa(es c,anne(s and su..(y c,a#n% 'ut a(so ,o) to a$o#d IBM em.(oyee turno$er/ It ,as 'een o'ser$ed t,at em.(oyees o! IBM are $ery .roud o! )or-#n* )#t, IBM2 1uest#ons may ar#se ),et,er suc, em.(oyees )#(( acce.t t,e ne) com.any structure and dec#de to stay )#t, Leno$o/ S#nce Leno$o #s a (oca(#+ed com.any% #t (ac-s o! e3.er#ence #n dea(#n* )#t, #nternat#ona( o.erat#on% crosscu(tura( con!(#ct mana*ement as )e(( as ,o) to sta'#(#+e t,e o$erseas sen#or mana*ement% es.ec#a((y #n t,e Amer#can mar-et ),#c, #s $#ta( to t,e com.any DK,anna 9<<8/ 2. Marketing Audit and Analysis o t!e Marketing and Management Capabilities
In t,e (oca( mar-et% Leno$o ,o(ds t,e !#rst 'rand #n C,#nese IT #ndustry/ T,e com.any’s o$era(( s,are o! com.uter #ndustry #n C,#na ,as touc,ed at 99% s#*n#!#cant(y% ),#c, #s a,ead o! com.et#tors/ Leno$o en7oys a mono.o(y status #n t,e .ersona( com.uter mar-et 'ecause #ts mar-et s,are o! 95 #s ,#*,er t,an t,e *(o'a((y reco*n#+ed mono.o(y/ T,e
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com.any a(so ,o(ds an u..er ed*e #n t,e 'us#ness PC mar-et )#t, a mar-et s,are o! 65% ),#c, #s ,#*,er t,an domest#c com.uter manu!acturers and #ts stron* 'rand ran-s t,e !#rst/ A!ter ac1u#s#t#on o! IBMJs PC o.erat#ons% t,e com.any’s mar-et#n* strate*#es )ere (ar*e(y con$ent#ona(% )#t, an a#m to stren*t,en t,e cor.orate 'us#ness sa(es o! IBM’s PC/ T,#s mar-et#n* strate*y ass#sted Leno$o to sta'#(#+e and *a#n reco*n#t#on #n t,e "S mar-et% 'ut #t rece#$ed cons#dera'(e set'ac- #n 9<<>9<9<
T,e com.any needs to cont#nue #ts (ead #n PC mar-et s,are #n domest#c mar-et and
*radua((y #ncrease #ts s,are #n t,e commerc#a( sectors )#t, )or-stat#ons and ser$ers2
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T,e (aunc, o! consumer and commerc#a( ta'(et com.uter (#nes s,ou(d cont#nue2 En,ance s,are #n mature mar-ets t,rou*, t,e ,omereta#( c,anne(s and SMB Dsma((
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and med#ums#+ed 'us#ness or*an#+at#ons2 Increase mo'#(e Internet .resence
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*(o'a((y2 •
&r#$e con$er*ence #nc(ud#n* c(oud de$#ces% )#t, attract#$e a..s% tar*et#n* !or t,e 'est e3.er#ence to t,e user2 and
Ac,#e$e ten .ercent s,are #n emer*#n* mar-ets’ countr#es% )#t, a !ocus on
SMBconsumers/ For t,e year 9<696;% Leno$o s,ou(d cont#nue #ts .rotectattac- .(an and su..(ement
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#t )#t, a ne) mar-et#n* .(an t,at com.any )#(( name PC &ou'(e P(us/ T,#s re!ers to concentrat#n* !ocus 'eyond com.any’s core 'us#ness o! PCs to ot,er tec,no(o*#es suc, as mo'#(e Internet and d#*#ta( ,ome/ Com.et#t#$eness Ind#cators One eas#est a..roac, to com.are Leno$o’s com.et#t#$eness )#t, t,at o! #ts com.et#tors #s to ana(y+e #ts current .er!ormance #n res.ect o! sa(es% mar-et s,are% and .ro!#ta'#(#ty/ T,e com.any current(y o)ns t,e second(ar*est *(o'a( mar-et s,are o! PCs )#t, year(y sa(es *ro)t, at t,#rty .ercent% 'ut (ac-s #n .ro!#t mar*#ns 'ecause o! #ts com.et#tors/ Mar-et S,are At t,e end o! 9<69% Leno$o stood as t,e second(ar*est com.uter manu!acturer 'y mar-et s,are/ It ran-ed a,ead o! &e((% and some re.orts e$en c(a#m t,at sa(es o! Leno$o ,a$e sur.assed HPJs/ Leno$o *(o'a( s,are cont#nue to r#se ),#(e t,ose o! HP and &e(( ,a$e 'een s,r#n-#n*/ T,e researc, conducted 'y Gartner s,o)ed t,at% #n #ts !#rst1uarter 9<66% Leno$o demonstrated t,e stron*est *ro)t, D6=/: .ercent o! t,e to. !#$e *(o'a( PC $endors suc, as Acer% Tos,#'a% HP% &e((% and Leno$o/ Most ana(ysts !rom PC Industry .red#ct t,at Leno$o )#(( o$erta-e HP/ Some recent stud#es ran- Leno$o at
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Leno$o’s ,o(ds a'out = o! "/S/ mar-et s,are% ),#c, #t #ntends to ra#se to ten .ercent #n t,e ne3t t)o years DGo(d% Le#'o)#t+ Per-#ns 9<6;/ Sa(es 0#t, Leno$oJs mar-et s,are *ro)#n* ra.#d(y t,at o! #ts .eers% #ts o$era(( sa(es and re$enue *ro)t, ,as a(so 'een #ncreas#n*/ In !#sca( year 9<66% t,e com.any .ro7ected sa(es o! @96/= '#((#on% s,o)#n* a yearon year #ncrease o! t,#rty .ercent/ T,e current ad$ancement o! Leno$o s,o)s t,at com.any can ac,#e$e ,#*,er sa(es #n Euro.ean and As#an countr#es #! #t e3.ands mar-et#n* net)or- and a(so use d#rect mar-et#n* tec,n#1ues a(on* )#t, ot,er .romot#ona( too(s DRa$enscra!t Sc,erer 9<69/ ". S#O$ Analysis o %enovo Strengt!s
#eaknesses
6/ T,e Leno$o .roducts are o! ,#*, 1ua(#ty and dura'(e a(so2 9/ T,e 'rand reco*n#t#on and trad#t#ona( su..ort o! Leno$o .roducts #s encoura*#n*2 ;/ E3.ans#on #n *(o'a( mar-ets )#t, IBM su..ort #n R&% mar-et#n* strate*y and .roduct#on at reduced costs2 5/ T,e d#$ers#!#cat#on o! .roducts2 8/ Possesses con$en#ent and 'eaut#!u( #ma*es =/E!!#c#ent cross cu(ture re(at#ons,#. and s.onsors,#.
6/ S#n*(e mar-et#n* c,anne(% s#nce t,e .roducts are ma#n(y a$a#(a'(e #n mono.o(#+ed stores2 9/ A $ast $ar#ety o! .roduct (#nes restr#cts t,e o$erseas e3.ans#on2 ;/ Product !eatures are too (ess to c,oose2 5/ Lac- o! Mar-et#n* resources and tec,n#1ues2 8/ Products are ,#*,(y .r#ced and not c,ea.
Opportunities
$!reats
6/ MA o! IBM (ed Leno$o to 'ecome t,e (ar*est com.uter se((er #n t,e PC Industry2 9/ S.ec#a(ty 'us#ness com.uter #ndustry ,o(ds (ar*er mar-et s,are #n t,e )or(d2 ;/ A'#(#ty to .enetrate #n E" mar-et suc, as France% Ita(y% En*(and %Germany% and As#an countr#es2 5/ &#$#s#on o! .roducts accord#n* to needs o! .eo.(e #s .oss#'(e
6/ A (ar*e num'er o! c,ea. .roducts a..ear #n t,e )or(d 9/ Im#tat#on o! Leno$o .roducts #s a()ays .oss#'(e2 ;/ C,an*e #n (a)s and ta3 re*#me o! ot,er countr#es can a!!ect t,e sa(es2 5/ A st#!! com.(et#on !rom com.et#tors #n .r#c#n* and ne) added !eatures can decrease t,e sa(es2 8/ F(uctuat#on #n !ore#*n e3c,an*e rate can !orce com.any to reduce t,e#r .ro!#ts2
as com.ared to &e(( and Acer/
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=/ Some countr#es may not encoura*e .romot#on o! !ore#*n 'rands/
&. Marketing Objectives and Strategies o %enovo
In 6?=5% Amer#can Mar-et#n* s.ec#a(#st% Bou*,ton #ntroduced t,e conce.t o! mar-et#n* m#3% ),#c, #s an #nte*rated act#$#ty t,at mar-et#n* e3ecut#$es com.re,ens#$e(y use and o.t#m#+e t,e se$era( contro((a'(e !actors so as to ac,#e$e t,e mar-et#n* *oa(s/ A success!u( and com.re,ens#$e mar-et#n* act#$#ty re!ers to t,e a..ro.r#ate .roducts% t,e a..ro.r#ate .r#ce% and t,e a..ro.r#ate c,anne(s o! d#str#'ut#on and t,e a..ro.r#ate means o! sa(es .romot#on 'y de$ot#n* .roducts and ser$#ces to a s.ec#!#c mar-et/ Accord#n* to t,e mar-et#n* t,eory% )e )#(( #ntroduce t,e !o((o)#n* mar-et#n* strate*#es !or t,e Leno$o 'ased on t,e#r .ast and recent .er!ormance/ Tar*et Mar-et#n* C,o#ce o! Leno$o Accord#n* to act#$#t#es o! com.et#tors and !or #ncreas#n* #ts mar-et s,are% Leno$o s,ou(d cons#der t,e !o((o)#n* !actors ),#(e c,oos#n* tar*et mar-et 6 T,ose c#t#es ),ere customers .ossess stron* 'rand a)areness and em.,as#+e on 1ua(#ty and demand add#t#ona( !eatures #n t,e .roducts )#t, (#tt(e cons#derat#on o! .r#ce !actor/ In t,e PC mar-et% t,e #n!(uence o! Leno$o 'rand )#(( render com.arat#$e ad$anta*e% so se(ect#n* suc, tar*et customers can !u(!#(( t,e needs o! suc, consumers/ 9 Customers !rom Metro c#t#es% ),o .ossess t,e ,#*, (e$e( o! educat#on% career or#ented% and t,ey are 'e(o) 58 years/ Mar-eters name t,#s cro)d ,#*,(y #n!(uent#a( cro)d% s#nce t,ese .eo.(e are conduct#$e to ,#*, end .roduct sa(es/ ; &e$e(o.ment o! rura( mar-ets ),ere customers em.,as#+e on us#n* .o.u(ar 'rands 'ut suc, 'rands are not eas#(y a$a#(a'(e/ T,ese consumers !orm a '#* .urc,as#n* .o)er and t,ey )#(( 'uy t,e .roducts #! t,ey are con$#nced re*ard#n* t,e 1ua(#ty and usa'#(#ty/ To reac, at
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suc, users and de$e(o. unta..ed mar-et% Leno$o can or*an#+e !ree mo$#es% cu(tura( s,o)s% .art#c#.at#on #n sc,oo( and co((e*e act#$#t#es as t,ese act#$#t#es )#(( 'r#n* c(oseness and understand#n* o! consumers’ needs DBou*,ton 6?=5/ Mar-et Pos#t#on o! Leno$o Leno$o’s mar-et#n* .os#t#on .r#mar#(y cons#ders t,e t,ree !actors suc, as t,e ,#*,end% m#dd(e end and m#dd(e,#*, end com'#nat#on o! .roducts !or o.t#mum mar-et .os#t#on#n*/ M#dd(e and ,#*,end .os#t#on#n* not on(y .ro$#des t,e cons#stency #n t,e mar-et% a(so esta'(#s, t,e #ma*e and status o! Leno$o .roducts #n t,e consumerJs m#nd/ 0,#(e t,e ,#*, end .roducts (ar*e(y #n!(uence t,e status o! consumers% dec(#ne o! .ro!#ts cannot 'e ru(ed out ),#(e se(ect#n* on(y ,#*, end .os#t#on#n*/ T,us t,e com'#nat#on o! ,#*, and m#dd(e end .os#t#on#n* )#(( 'e t,e 'est o.t#on to 'a(ance sa(es as )e(( as .ro!#ts t,at )#(( !urt,er ena'(e to ma#nta#n com.et#t#$e .os#t#on #n t,e mar-et/ In *enera(% .ro!#ts o! ,#*,m#dd(e end .roducts are usua((y t)o to t,ree t#mes ,#*,er t,an (o)end .roducts and under t,e .re$a#(#n* cond#t#ons o! .r#ce )ar and #ncreased com.et#t#on% (o) end .roducts do not o!!er *uarantee o! .ro!#ts/ Furt,er% t,ese .roducts #nc(ude !eatures o! (o) ener*y consum.t#on/ Lo) ener*y .roducts are not on(y #n '#* demand% 'ut a(so re.resents t,e tec,n#ca( ca(#'er o! an enter.r#se2 t,us c,oos#n* (o) ener*y consum.t#on .roducts ),#(e .os#t#on#n* )#(( certa#n(y en,ance 'rand #ma*e o! Leno$o/ T,e a!tersa(esser$#ce o! Leno$o .us,es t,e com.any #n t,e 'ac- seat and narro)s #ts .os#t#on #n t,e mar-et/ Suc, .os#t#on#n* )#(( 'e !urt,er an o'stac(e to ac,#e$e com.et#t#$e ed*e #n t,e mar-et unt#( and un(ess Leno$o dec#des to esta'(#s, a!ter sa(es ser$#ce centers #n a(( t,ose c#t#es ),ere t,e com.any mar-ets #ts .roducts/ M#c,ae( Porter D9<<; sa#d% #n t,e 96st century% on(y t,ose manu!actur#n* com.an#es )#(( succeed on an #nternat#ona( (e$e( t,at can o!!er ser$#ce #ndustry !or t,e
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sat#s!act#on o! c(#ents/ T,e r#s#n* economy #s em'edded )#t, ser$#ce economy% ),#c, means e!!#c#ent and sat#s!actory ser$#ce o! t,e .roducts and ser$#ces #s a -ey to com.et#t#$e ad$anta*e/ T,us% Leno$o s,ou(d (earn !rom t,e e3.er#ence o! &ELL Com.uters as )e(( as t,e#r ot,er mar-et#n* tec,n#1ues to ca.ture t,e c(#ents/ Leno$o s,ou(d o!!er more #n!ormat#on on .urc,as#n* ,ome com.uters% and a!tersa(e ser$#ce t,rou*, )e' s#tes and ot,er med#a c,anne(s/ T,e !ocus o! t,e customer ,as s,#!ted !rom .r#ce and .roduct 1ua(#ty to ener*y consum.t#on% !re1uency and !ast tec,no(o*y/ So Leno$oJs s,ou(d dec#de .os#t#on#n* #n t,e mar-et accord#n* to demand and e3.ectat#ons !rom consumers% ),#c, )#(( undou'ted(y 'r#n* success !or t,e Leno$o Com.any D Liu
2010). T,e Product Strate*y o! Leno$o T,e .roduct strate*y o! Leno$o #s c,#e!(y t,e same as tar*et mar-et and .os#t#on#n*% com.r#s#n* o! !o((o)#n*
Middle and High End Market Positioning 0,#(e cons#der#n* Leno$o’ PC as e3am.(e% t,e mar-et researc, s,o)s t,at #ts re!r#*erators ma#n(y cater m#dd(e and ,#*, end sector/ Leno$o .ossesses =8 mar-et s,are #n ,#*, end .roducts% ),#(e t,e m#dd(e end .roducts account !or 5<8< mar-et s,are% t,e mar-et s,are o! (o) end .roduct ran- (o)er t,an 6</
Different Competition of Product Development T,rou*, mar-et se*mentat#on% ta..#n* users’ and e3.(or#n* unmet demand )#(( o!!er an ed*e o$er com.et#tors #n de$e(o.#n* a(to*et,er d#!!erent .roducts !rom t,e mar-et% ),#c, !urt,er ena'(es to ca.ture t,e .r#me s,are o! t,e mar-et/ T,#s statement ,o(ds true% ),#c, ,as 'een o'ser$ed !rom t,e #ntroduct#on o! Leno$o’s .roducts dur#n* t,e .ast t,ree years/ In
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9<<6% Leno$o #ntroduced t,e T,#n-Pad% ),#c, not on(y sat#s!y t,e needs o! consumers 'ut a(so ca.tured a su'stant#a( s,are o! t,e com.uter mar-et/
According to the Distribution Channels and the Difference of Segment Markets, Develop and Design Targeted Products For t,e m#dd(e cate*ory% Leno$o s,ou(d #ntroduce com.arat#$e(y (o) .r#c#n* !or m#d (e$e( .roducts% ),#(e ,#*,end .roducts #ncor.orat#n* a(( (atest !eatures s,ou(d 'e made a$a#(a'(e at a(( reta#( sa(es c,anne(s/ For t,e rura( d#str#'ut#on% Leno$o must des#*n and de$e(o. t,ose .roducts% ),#c, #nc(ude s#m.(e !unct#ons% re(at#$e(y (o) .r#ced to cater t,e needs o! t,e students mar-et/ Pr#ce strate*y o! Leno$o &ur#n* .ast years% t,e .roduct#on ca.ac#ty o! com.uter #ndustry ,as #ncreased tremendous(y% ),#c, caused IT com.an#es to stru**(e !or mar-et s,are2 t,us (ead#n* to u(t#mate .r#ce )ar/ Leno$o )as a(so #m.acted% *ot entan*(ed #n t,#s .r#ce )ar 'ut d#d not reduce .r#ces and demonstrated most $#$#d stand #n PC #ndustry/ Leno$o rat,er concentrated on en,anc#n* cor.orate #ma*e% #ncreas#n* sa(es% e3.and#n* mar-et s,are 'y creat#n* d#!!erent#ated .roducts to meet re1u#rements o! d#!!erent consumer *rou.s% !ormu(at#n* d#!!erent#a( .r#ces 'ased on !eatures o! .roducts/ T,#s d#!!erent#a( .r#ce strate*y ,e(.ed Leno$o to sa#( smoot,(y #n t,e economy o! e3cess#$e ca.ac#ty/ Leno$o’s .r#ce strate*y #s #n accordance )#t, t,e 'rand $a(ue% .,ys#ca( $a(ue% and #ncor.orat#on o! add#t#ona( !eatures o! d#*#ta( tec,no(o*y ac,#e$ed )#t, IBM mer*er/ T,ese !eatures d#st#n*u#s, Leno$o !rom #ts com.et#tors and esta'(#s, an #nde.endent co*n#t#$e $a(ue #n t,e m#ndset o! consumers D&o)(#n* 9<<8/ &#!!erent#at#on Strate*y
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A d#!!erent#at#on strate*y #s 'ased on .ersuad#n* users t,at o!!ered .roduct #s su.er#or to t,at o! com.et#tors/ T,e -ey 'ene!#ts o! d#!!erent#at#on strate*y !or Leno$o’s success )ou(d 'e D6 T,e .roducts )#(( command a ,#*, .r#ce #n t,e mar-et/ D9 &emand o! #ts .roducts )#(( 'e (ess .r#ce e(ast#c t,an t,at o! com.et#tor’s .roducts/ D; A'o$e a$era*e .ro!#ts can 'e ac,#e$ed/ D5 It )#(( create an add#t#ona( 'arr#er to ne) entrants #n t,#s 'us#ness/ Focus Strate*y A !ocus strate*y a#ms to tar*et a se*ment o! t,e mar-et rat,er t,an t,e ent#re mar-et or se$era( mar-ets/ T,e ma7or 'ene!#ts o! !ocus strate*#es are It needs a (o) #n$estment o! resources ),en com.ared to a strate*y tar*eted at ),o(e mar-et or many mar-ets2 #t ena'(es s.ec#a(#+at#on and $ast -no)(ed*e o! t,e se*ment 'e#n* ser$ed2 Entry to a ne) mar-et #s (ess cost(y and muc, s#m.(er/ Leno$o ado.ts cost (eaders,#. as #ts de$e(o.ment strate*y% ),#c, s,are some !eatures o! d#!!erent#at#on strate*y2 t,us t,e com.any der#$es com.etent ad$anta*e !rom d#!!erent#at#on and cost sa$#n* t,rou*, #ts $a(ue c,a#n/ Its core com.etences are as !o((o)s 6/ Im.ro$ed e3tended su..(y c,a#n2 9/ A c,ea.er .r#ce o! PC t,rou*, (o)er transact#on costs2 ;/ Con$en#ence and access !or t)enty!our,ours2 5/ Brand reco*n#t#on amon* customers2 8/ E!!#c#ent and 1u#c- searc, ca.a'#(#ty2 =/ 0#de se(ect#on o! mode(s and onesto. s,o..#n*2 :/ F#rst mo$er #n t,e mar-et and a'#(#ty to attract customers 1u#c-(y t,an #ts r#$a(s/ Leno$o !amous 'rand ena'(es Leno$o stay )e(( a,ead #n t,e !#erce mar-et com.et#t#on/ T,e com.any s.ends cons#dera'(e amount on ad$ert#s#n* 'ud*ets #n
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order to ma#nta#n t,e com.et#t#$eness o! Leno$o 'rand/ O$er t,e years% Leno$o 'rand render a dee. #m.ress#on on users’ m#nds and a)areness o! 'rand #s actua((y t,e acce.tance o! Leno$o cu(tura( d#!!us#on/ '. Marketing (rograms
S.orts mar-et#n* ,a$e 'een e3treme(y 'ene!#c#a( #n 'r#n*#n* a)areness and esta'(#s,#n* 'rand #ma*e o! se$era( .roducts/ Accord#n* to s.orts mar-et#n* .ro*ram% Leno$o’s strate*y ,as 'een to ta-e 'ene!#t o! t,e *(o'a( !orum o! t,e O(ym.#cs !or 'oost#n* t,e *(o'a( #m.act o! t,e 'rand/ On A.r#( 9<<;% t,e com.any con$erted t,e o(d (o*o Le*end to Leno$o #n order to o.en a door !or #nternat#ona( .resentat#on and re.resent t,e com.any on #nternat#ona( sta*e/ Leno$o )as c,osen t,e !#rst TOP #n C,#na% as a TOP s.onsor #n O(ym.#cs/ T,#s mo$e )as cons#dered necessary s#nce Leno$o started 'us#ness and mar-et#n* act#$#t#es #n more t,an 6:8 countr#es and to #m.ro$e t,e#r 'rand re.utat#on a(t,ou*, #t )as a des#ra'(e ste. 'ut a r#s-y mo$e on t,e#r .art/ It )as t,e !#rst t#me dur#n* T,e Tur#n 0#nter Games ),en t,e Leno$o 'rand *a#ned reco*n#t#on #n t,e o$erseas mar-et/ T,e mar-et#n* .ro*ram o! Leno$o )as to !ocus on t,e O(ym.#c Games% a s.ec#!#c e$ent as a com.(ement/ For .romot#on o! t,e#r .roducts% Leno$o ,as .roduced s.ec#a( .roducts )#t, t,e O(ym.#c (o*o% and des#*ned O(ym.#c t,emed ad$ert#sements to .resent Leno$o 'rand #n .u'(#c/ &ur#n* t,e O(ym.#c Games% t,ey created #nternet 'ars #n Be#7#n* so as to ensure a(( at,(etes can ,a$e easy access to t,e #nternet/ Bes#des% Leno$o se(ected 68 at,(etes as Leno$o 'rand am'assadors to .art#c#.ate #n Leno$o .romot#ona( e$ents a(( o$er t,e )or(d DMust,a(er 9<<8/ As a TOP mem'er% Leno$o a#med to create a stron* connect#on 'et)een customer and 'rand and )as success!u( #n creat#n* a 'rand #ma*e to a (ar*e e3tent/ &ur#n* t,e *ames% t,e com.any des#*ned se$era( mar-et#n* strate*#es and .ro*rams to ac,#e$e success/ One mar-et#n* .ro*ram )as to o!!er a )#de ran*e o! tec,no(o*#ca( resources t,at #nc(uded
17
o!!er#n* ,undreds o! commemorat#$e com.uter as )e(( as on(#ne tec,n#ca( su..ort to more t,an !#$e m#((#on customers/ T,e com.any a(so .ro$#ded O(ym.#c remem'rances meda(s to more t,an t,#rty m#((#on customers/ Anot,er mar-et#n* .ro*ram )as to o!!er 68<< O(ym.#c !ree t#c-ets and #n$#ted users to )atc, t,e com.et#t#ons% $#s#t O(ym.#c stad#um and test e$ents% and ot,er act#$#t#es/ At t,e same t#me% Leno$o a(so s.onsored se$era( e$ents to 'ecome one o! t,e O(ym.#c torc,'earers/ "ndou'ted(y% t,ese mar-et#n* .ro*rams )ere success!u( 'ut #n$o($ed a ,u*e ad$ert#sement 'ud*et% ),#c, caused com.any to d#$ert !unds t,at )ere meant !or ot,er 'us#ness act#$#t#es/ Moreo$er% t,e e!!ect o! an ad$ert#sement #s o$er as soon as !e$er o! O(ym.#cs #s o$er D0an* 9<<=/ T,e com.any can use se$era( ot,er .(at!orms !or mar-et#n* .ro*rams 'ecause O(ym.#c #s an e3.ens#$e .(at!orm !or Leno$o/ T,e com.any s,ou(d use mu(t#.(e .(at!orms to de$e(o. d#!!erent strate*#es t,at su#t a (ar*e num'er o! aud#ences/ For e3am.(e% Leno$o can !ocus on !oot'a((% F6% cr#c-et% s-##n*% car rac#n* and ot,er )#nter s.orts com.et#t#on 'y e3tend#n* 'rand #n Euro.e/ T,e com.any a(so needs to !ocus on NBA #n t,e Amer#ca ),#(e #n C,#na2 t,e Leno$o s,ou(d *o a,ead )#t, s.onsors,#. o! ta'(e tenn#s and 'adm#nton/ Leno$o must de$e(o. d#!!erent strate*#es de.end#n* on c,aracter#st#cs o! d#!!erent re*#ons/ T,us% turn#n* resources #nto s.onsor#n* some e$ents on #nternat#ona( (e$e( t,at are sma((er #n$estments 'ut y#e(d more returns )ou(d 'e a .ract#ca( and )#se c,o#ce !or t,e com.any 'ecause s.orts mar-et#n* .ro*rams o'$#ous(y render a .os#t#$e #m.act on t,e Leno$o Com.any/
). *mplementation and Control
Lenovo Ability to Establish and Manage Efficient and Effective Distribution Network T,e com.any ,as s,o)n #ts #ncom.ara'(e .er!ormance #n terms o! sa(es% *ro)t, and 'rand a)areness #n t,e 0or(d mar-et% ),#c, ,as 'een .oss#'(e )#t, t,e #m.(ementat#on o!
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5Ps suc, as a)areness o! .roduct )or(d)#de% com.et#t#$e .r#c#n* 'y se*ment#n* t,e mar-et% .romot#ona( s.orts mar-et#n* cam.a#*ns )#t, e!!ect#$e 'rand #ma*e/ Amon* !ore#*n and domest#c IT com.an#es% Leno$o ,as .ro$ed num'er one com.any )#t, t,e e!!#c#ent d#str#'ut#on net)or- and su..(y c,a#n mana*ement DMcM#((an 9<<8/ For !urt,er e3.ans#on and #m.(ementat#on o! mar-et .(an% Leno$o s,ou(d e3.and net)or- o! d#str#'utors #n #nternat#ona( mar-ets as )e(( as domest#c mar-et% )#t, eac, o! t,e d#str#'utors a..o#nt#n* #ts o)n rese((er net)or- and ser$#ce centers/ T,#s mar-et#n* a..roac, )#(( ena'(e Leno$o to ,#t (ar*e num'er o! aud#ence/ T,e com.any s,ou(d a(so des#*n a tra#n#n* .ro*ram !or #m.art#n* tra#n#n* to ser$#ce .ersonne( t,at )#(( !urt,er 'u#(d con!#dence o! consumers #n Leno$o PCs as )e(( as ser$#ce .ersonne( )#(( a(so ,a$e 'etter -no)(ed*e o! Leno$o .roducts/ Suc, d#str#'ut#on .ro*rams are on(y success!u( #! t,ey are su..orted 'y e!!ect#$e .romot#ona( cam.a#*n 'y t,e com.any/ Bes#des% s.orts mar-et#n* on an #nternat#ona( (e$e(% t,e com.any must encoura*e #ne3.ens#$e c,anne(s o! mar-et#n* suc, as s.onsor#n* .o.u(ar te(e$#s#on ser#a(s% .art#c#.at#on #n s.orts and cu(tura( e$ents #n sc,oo(s and co((e*es% as )e(( as act#$e(y .art#c#.at#on #n c,ar#ty .ro*rams or*an#+ed 'y d#!!erent commun#t#es/ T,us% t,e a'#(#ty o! 'u#(d#n* and mana*#n* ,u*e d#str#'ut#on and mar-et#n* net)or- and cons#stent(y e3.(or#n* ne) mar-ets )ou(d add as an add#t#ona( source o! Leno$o’s com.etence/
+. Marketing ,udget
19
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Mar-et#n* 'ud*et ,as 'een ca(cu(ated !or one year and s,ou(d 'e #m.(emented #n an e!!ect#$e manner% s#nce tec,no(o*#es *ro) $ery !ast t,ese days/ Tota( 'ud*et sum needed #s ;=>%<<< m#((#on .ounds/ Ma#n .arts o! 'ud*et are O.en ne) stores and Mar-et researc, 6=<%<<< m#((#on and =<%<<< res.ect#$e(y/ F#rst sta*e o! 'ud*et )#(( 'e Mar-et researc, a!ter a(( .arts o! 'ud*et )#(( 'e #m.(emented a!ter researc, )#(( 'e .roduced/ Re!erences Bou*,ton 6?=5% Strate*#ca((y Mar-et#n*/ Renm#n o! C,#na "n#$ers#ty Press/
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C,en% 9<<=% G(o'a( 'randJs mar-et#n* commun#cat#on researc, a case study o! Leno$o PC% masterJs t,es#s% Graduate #nst#tute o! commun#cat#on% S,#, Hs#n "n#$ers#ty% Ta#)an/ &o)(#n*% & 9<<8% PC Compatibilit!" #$M, %enovo Staffs Mesh& % 0or-!orce Mana*ement% Costa Mesa% Vo(/ >5% No/ 6% ../ 686=/ Go(d% A% Le#'o)#t+% G and Per-#ns% A 9<6;% A computer %enovo in the making' McK#nsey uarter(y% Vo(/ ;% ../ :9 –>
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