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THE PR OMOTI ONA L T OO LS

 ADVERTISING

1. PERVASIVENESS: Advertising permits the seller to repeat a

message many times. It also allows the buyer to compare messages of various
competitors. Large scale advertising says something positive about the seller size,
power and success.

2. AMPLIFIED EXPRESSIVENESS: Advertising provides

opppournities for dramatizing the company and its products through the artful print
sound color.
 AD VE RTIS ING C AN B E
USED TO BUIL D UP A
LONG TE RM IM AG E FOR A
PRODU CT

PROMOTION
The promotion mix within the marketing mix includes advertising, sales promotion
and personal selling. Product promotion means making the product popular among
the consumers and raising its sales through suitable measures the basic purpose is
to widen the scope of marketing.
sales promotion means the promotional activities other than personal salesmanship,
advertising and publicity which stimulate consumer purchasing and dealer
effectiveness through displays, exhibitions, demonstrations, free samples,
discounts, premium etc. it is plus ingredient in marketing mix it act as bridge link
in between advertising and personal salesmanship. It acts as a supporting facility to
advertising and personal selling.
 FEA TURES O F SALES
PROMO TIO N

1. SALES PROMOTION ACTS AS A TOOL IN MARKETING TO

LUBRICATE MARKETING EFFORTS.
2. IT IS NECESSARY IN PRESENT COMPETITIVE WORLD AND
CONSUMER ORIENTED MARKETING
3. IT SUPPORTS ADVERTISING AND PERSONAL SELLING.
4. IT AMIS STIMULATING CONSUMER PURCHASING AT POINT OF
SALE.
5. IT PROVIDES MORE SALES AND PROFITS TO PRODUCERS AND
DEALERS

NEED OF SALES PROMOTION

1. FOR UNLOADING ACCUMULATED INVENTORY.
2. FOR INTRODUCING NEW PRODUCTS.
3. FOR OVERCOMING SEASONAL SLUMPS.
4. FOR SUPPORTING ADVERTISING CAMPAIGN.
5. FOR GETTING NEW ACCOUNTS.
5. FOR SUPPORTING AND SUPPLEMENTING SALESMAN EFFORTS.

OBJECTIVES OF SALES PROMOTION

1. TO RAISE VOLUME OF SALES OF PRODUCT.
2. TO RAISE BUYING RESPONSE AND POTENTIAL CONSUMERS.

TH REE MA RKETING
 PROMO TIO N ST RA TEGY

A] DEFINE YOUR VP-up stands for value proposition and it is

critical to define what unique value you can bring to your customer. The three
items that you should not define as your up.
1 low price-if your only differentiator is price, customer is in tough time. Price is
probably the worst way to attempt to differentiate your company. Making low
pricing your up is a mistake.
2. Quality products-they are not differentiator, they are an expectation.
3. service-good service is an expectation, not vp.good service is not simply a
unique way you differentiate your business these days. Up need to focus on a
unique way you do business, it can be way your information is packaged, a
guarantee that no one else offers, or the way your product can transform people.
Once you defined your value proposition, you must ensure that this message comes
across clearly to your customers and prospects. An easy way to develop a business
tag line based on your up and uses this tag in all your customers’ communications.

B} MATCH THE MESSAGE TO THE

CUSTOMER- the more you know and are able to define your various
buyer personas, the more you will be able to communicate tightly focused and
powerful message that is relevant to particular customer.

C} GIVE SOMETHING FOR NOTHING- this means

to build trust by giving away something for nothing. Before you attempt to sell.
You must create trust they want information. When they surf the internet they need
information. The trust can be created over time by consistently showing customer
the knowledge, expertise and values
 START OF
LE NOVO
“Hope through Entrepreneurship” tells not just the story of Lenovo’s corporate
social investments, but the company’s own history. In 1984, 11 computer scientists
in Beijing, China had a vision to create a company that would bring the advantages
of information technology to the Chinese people. With approximately $25,000
USD in seed money and the determination to turn their research into successful
products, this team opened their business in a loaned space – a small, one-story
bungalow in Beijing.
Today, Lenovo is encouraging people around the world to make an impact. As
Lenovo’s technology helps bridge the physical gap among different parts of the
world, the company’s goal is to do the same through its social investments.
Given Lenovo’s history and the nature of its business, the company focuses on
helping people around the world transform their lives and their communities. To do
this, Lenovo supports organizations that encourage business development and
social entrepreneurship. Through microfinance institutions such as Opportunity
International, Lenovo is helping provide crucial loans to help disadvantaged people
in countries such as Africa, Asia, Latin America and Eastern Europe.

HISTO RY O F LE NOVO
The following is a brief history of Lenovo:
- 2000: Legend shares peak at HK$14.75 on March 6.
- 2001: Dell takes the largest share of the worldwide PC market for the first time.
Legend sales reach a peak of HK$27.2 billion in the fiscal year ended March 2001
and decline to HK$23.2 billion in the most recent fiscal year ended March 2004.
- 2003: The Company changes brand name to Lenovo from Legend to avoid
infringement of overseas brands. The company says it is preparing for expansion
outside China, which has overtaken Japan to become the world's second-largest PC
market. The US remains the world's largest PC market.
- 2004: The Company changes its name to Lenovo Group. Time Warner Inc, the
world's largest media company, on January 7 exits a US$50 million Internet
venture in China with Lenovo. China accounts for 99 percent of Lenovo's sales in
fiscal year ended March 2004 and 98 percent in the previous 12-month period.
Lenovo's first-quarter PC shipment growth in China lags rivals such as Dell,
according to market researcher IDC Corp. Lenovo has a 10.9 percent share of the
Asian market excluding Japan, compared with 7.3 percent for Dell. Lenovo's Asian
shipments rise 19 percent, compared with 52 percent for Dell. Lenovo's sales of
services and hand-held electronics grow the fastest of all its products in the most
recent two fiscal years, each at an average rate that roughly quadruples. Computer
sales rise at an average rate of 9 percent in the same period.
- December 3, 2004: IBM in discussions with Lenovo about the sale of its PC
business, the New York Times reports.
- December 7, 2004: Lenovo says it's in talks with a major international company
about a possible acquisition.
- December 8, 2004: Lenovo's purchase of IBM's personal computer business
formally announced in Beijing yesterday. Acquisition expected to be completed in
the second quarter of 2005.
 OBJE CTI VE OF LENOVO
Lenovo nose-diving into rural market
China's top PC maker, Lenovo Group Ltd, by introducing cheaper computers, is
plunging head-on into the country's rural market, where PC penetration is low and
purchasing power is weak.
Analysts said the firm's low-price strategy will help it strengthen its market share,
which is shrinking. But they are divided about the long-term profitability of the
low-priced PCs.
Lenovo last week introduced a new consumer PC series and an e-classroom
solution aimed at users in ordinary households and the education sector in
townships.
The retail prices for the new PC models will range from 2,999 Yuan (US$361), a
record low, to 5,999 Yuan (US$723).
Lenovo previously focused on PCs that cost more than 5,000 Yuan (US$602).
"The growth of the whole PC market is lackluster. But the township market
remains largely untapped," said Yang Yeaning, chief executive officer of Lenovo
Group Ltd.
The launch of the low-price PCs is part of Lenovo's strategic shift. He expects
shipments of the new PC series will reach 800,000-1 million units within a year.
Beijing-based CCW Research said tapping the low-end market will increase
Lenovo's market share. And so it did."Lenovo is delivering a message that it
intends to cover all market segments, from high-end to low-end, "The low-price
strategy puts pressure on some regional brands.Besides, operating systems are not
pre-installed in the DIY market.
"We have been put in an unfair position," said Lu.
"If all vendors pre-installed legitimate operating systems and pay the VAT, our
market share would be much higher."
GAO estimates gross profit margins for Lenovo's new series PCs will be about 8
per cent.
For fiscal year 2003, Lenovo's profit margins were 14.6 per cent, compared with
14.8 per cent in the last fiscal year.
Edward Yu, president of research house Analysis International, predicted the profit
margins will be much lower.
"The shipments of PCs priced at 2,999 Yuan are unlikely to reach 100,000 units.
Otherwise, it will be unprofitable," Yu said.
"The most likely scenario is quite a few of the PCs will be available in the
marketplace.
The low-priced move is largely a promotion strategy."
Since Lenovo is not adopting a "direct-sales" strategy, the firm is unlikely to save
the "channel cost," which usually accounts for nearly one-fifth of the price, Yu
explained.
Lu reaffirmed Lenovo will not follow Dell's "direct-sales" strategy.
Lenovo's low-price strategy is expected to spark a round of price-cutting in China's
PC industry.
China's No 2 PC maker, Founder Technology, "will not rule out the possibility of
making a similar move," said I Dongfeng, the company's managing president.
Qi last week said he agreed China's rural market promises much potential.
"I think a PC price tag from 2,000-3,000 Yuan (US$241-361) for the rural market
is appropriate," he said.
Another PC maker, Langchao, plans to launch a new PC model that will cost about
1,999 Yuan (US$241), some media have reported.
A new round of price-cutting is expected dent profit margins industry-wide. Profits
have been dropping due to intense competition.
Statistics, released by Analysis last week, indicate PC sales in China in the year's
second quarter reached 17.53 billion Yuan (US$2.11 billion), up 17.8 per cent year-
on-year.
Shipments in the quarter totaled 2.91 million units, down 0.4 per cent compared
with previous quarter, but up 39 per cent year-on-year.
Lenovo's market share dropped 5.6 per cent, year-on-year, during the period,
Analysis said.
Barcelona FC's super soccer star Ronald de Assis Moriera of Brazil, better known
as Ronaldinho has been named as the official representative of china's PC giant,
Lenovo, in its global promotion campaign. The two sides have signed a
confidentiality agreement but Lenovo declined to talk about the details, the
expenses in particular.
According to Chen Shaopeng, senior vice-president of Lenovo Group and
president of Lenovo's greater China operation, partnering with an international
sport star is an important part of Lenovo's global marketing strategy.
Lenovo hopes Ronaldinho's personal charm and influence worldwide will help
Lenovo's global promotion campaign and gain popularity. During the one-year
promotion, Lenovo will be authorized to use Ronaldinho's personal images as well
as all the brands of Barcelona FC.
"I believe that combination of the charm of soccer and the sci-tech of computer
will bring more color and pleasure to people's life, noted Marc Ingle, vice president
of Barcelona FC.
The list of the commercial value of soccer stars done by Germany-based BBDO
Consulting months before shows that Ronaldinho, with 32.6 million pounds tops
the rank.
 SWOT An al ys is
Strengths:
➢ Strong sale position in mainland (china) because of 90%sale from
it.
➢ Market leader in china as Lenovo is learning more revenue from
the mainland.
➢ Low production cost.
➢ Event sponsoring.
➢ Good marketing and distribution strategy.
➢ Strategic alliance with suppliers
➢ Distribution channel
Opportunity
Pc sales are expected to grow
Fast growing international market
Signing of memorandum of understanding with USA
Specialty shops providing one stop platform for distribution

THREATS
Competition threats from local and international competitor
Price war
Maturing market
International competitors forming alliance with local competitors
Threat of price competition with clone PC makers
LEN OV O B OOS TS O NLIN E S ALES
THR OU GH B AR GAIN PROM OT ION
China's leading PC producer Lenovo Group (0992.HK; LNVGY.PK), recently
initiated a series of market promotion activities for low-price products in domestic
online market.
The PC giant earlier launched a product under the ThinkPad series for the student
market at 7,999yuan and recently cut the price of a new PC product under the
ThinkPad SL series to 3,000yuan from 5,000yuan.
A market analyst says that the price of IT product is on the decline due to cost
reduction of parts and terminal. Besides, the low- price strategy could produce the
largest effect in the summer holiday due to high price sensitivity in the period.
The company has begun to boost the promotion for online buyers, in particularly
the youth and students, because the company could cut great cost to support its
low-price strategy.
With the extension of internet coverage, the booming online consumption is
underpinned by reduced marginal cost due to more conveniences and increasing
transparency of price for the components of IT products.
The analyst believes that the campaign would bring great troubles to the domestic
PC producers in the second and third camps, which might spark a new wave of
merger and acquisition in China.

LENO VO EXP ANDS MOT ORSP ORTS

PRESEN CE TO IN DYC AR S ERIES
FOR IN DY 50 0 WI TH CUR B/
ALA BA MIAN/ BEC K TE AM

Lenovo Promotes Relationship with NBA by Highlighting the Finals on the Car
INDIANAPOLIS -- Lenovo, a leading computer company that creates the best-
engineered PCs in the world, today announced a sponsorship agreement with the
CURB/ Alabamian/Beck team for the crown jewel race within the Indy Car Series -
the Indianapolis 500.
The announcement marks Lenovo's interest in identifying how motor sports can
help drive the company's goal for building brand awareness on a global scale. This
coming weekend provides a significant opportunity for worldwide brand exposure.
Lenovo is sponsoring teams at two of the racing world's most prestigious races --
the Indianapolis 500 and the Formula 1 race in Monte Carlo, Monaco.
The Lenovo Indy Car Series announcement comes during the most important time
of year for the series - the Indianapolis 500 weekends, when all eyes are on
Indianapolis for what remains the world's largest single-day spectator sporting
event. The Lenovo logo will be placed on the black No. 98 CURB/
Alabamian/Beck Motor sports Dollar/Honda/Firestone car, driven by Alex Barron,
for this weekend's Indianapolis 500 race. In addition, the Lenovo-sponsored AT&T
Williams Formula One car - a partnership announced earlier this year - races this
weekend at Monaco.
In an innovative cross promotion, the Indy 500 sponsorship also showcases
Lenovo's support for the NBA and The Finals, marking the first time the league's
marquee event has been promoted during an auto race. The front wings on the car
will brand The Finals on ABC on June 7. Greg Odem and Mike Conley Jr.,
expected top selections in the NBA Draft in June and both Indianapolis natives,
will be on-site in Pit Row as guests of Lenovo and driver Alex Barron.
"Indy Car racing is a data-intensive, computing-intensive endeavor, highly focused
and invested in innovation and development, and highly dependent on information
technology," said Tony George, Tony George, founder and CEO, Indy Racing
League, the sanctioning body for the Indy Car Series. "We welcome Lenovo to this
community and are excited to be working with the best in the business for PC
technology."
The Indy Car Series has long been recognized for its technical leadership, and
recently reinforced its leadership track record by being the first in the automobile
racing world to use 100 percent fuel-grade ethanol in Indy cars. That leadership
makes the Indy Car Series an excellent partner for Lenovo, where engineering and
innovation are top priorities.
Effective deployment of information technology is a key part of the CURB/
Alabamian/Beck Motor sports strategic allocation process, and these decisions help
determine the team's success at the track. A Lenovo notebook PC will form an
integral part of starting the Indy Car before each race, practice and test session.
Lenovo PCs will support engineers in car research, test, development and
manufacturing. They will support the drivers in their analysis and will support the
management team in marketing, logistics, travel and race planning as well as
networking, inventory, relationships with clients, sponsors and suppliers, human
resources, finance and strategy.
CURB/Agaganian/Beck Motor sports are a team in the Indy Racing League owned
by Greg Beck, Cary Alabamian, and Mike Curb. The team's car is a black No. 98
Dollar/Honda/Firestone car. The team participated as Team Leader Motor sports
when two Indy Car Teams joined forces to field cars for the 2006 Indianapolis 500.
The first team was Beck Motor sports owned by Greg Beck which was founded in
1995. The second team R. Kent Baker Racing owned by Kent Baker which was
founded in 1988. Both Baker and Beck had many years experience working with
their own and various other Indy Car teams. They were joined by Cary Alabamian
and Mike Curb of Curb Alabamian Motor sports.
About the Indy Car Series:
The Indy Car Series is the premier open-wheel series in the U.S., competing on a
challenging combination of super speedways, short ovals, scenic road courses and
temporary street circuits. In 2007 the Indy Car Series will conduct 16 events in the
U.S. and one in Japan, all available worldwide through a comprehensive, long-term
agreement with ABC Sports/ ESPN. A leader in motor sports technology, the Indy
Car Series is the first racing series to power its Honda engines on 100 percent fuel-
grade ethanol. The Indy Car Series continues to the be the fastest and most
competitive racing series, attracting a diverse lineup of drivers including Marco
Amoretti, Sam Cornish Jr., and Dania Patrick.

OL YMPIC GAM E
Lenovo, worldwide partner of the Olympic Torch Relay and the exclusive
computing equipment supplier for the Beijing 2008 Olympic Games, is offering
limited-edition notebook PCs inspired by the Lenovo-designed Olympic torch
leading into the Beijing 2008 Olympic Games.
Bid on this limited-edition Lenovo 3000 V200 notebook PC signed by Gail
Emmys of the U.K. Badminton team, the last one of only three available
exclusively through this auction. With the Beijing 2008 Olympic Games just
one week away, here's your last chance to win this commemorative notebook
PC!
About the limited-edition Lenovo 3000 V200 notebook PC
Like the “Cloud of Promise” on which the design is based, the notebook cover
features striking swirls of silver against a pure red base color. Gail’s signature is
prominently displayed on the cover of the notebook (signed with a black Sharpie
Fine Point Permanent marker).

Due to export restrictions and policies, this product is only available for shipment
within the U.K. or to the U.S.A. Bids will only be accepted from bidders with
shipping addresses in the U.K. or U.S.A.
Specs:
Lenovo 3000 V Series notebooks are built to provide worry-free computing in a
stylish, media-friendly and powerful ultra portable widescreen.
Processor
Intel® Core™ 2 Duo T5250 (1.50GHz, 2MBL2, 667MHzFSB)
Operating system
Windows Vista Business
Display type
12.1 inches WXGA Vibrant View TFT with integrated camera (1280x800)
(Premium Silver)
System graphics
Intel Graphics Media Accelerator X3100
Total memory
1GB PC2-5300DDR2 SDRAM
Hard drive
160GB, 5400rpm Serial ATA
 Optical device
8X Max DVD Recordable (Dual Layer) PATA Fixed Media Bay drive
Wireless cards
Bluetooth Version 2.0 + EDR,Intel PRO/Wireless 3945ABG
Battery
6 Cell Lithium-Ion Battery

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