Case Study Challenge : Introduction

Case Overview: Key Challenges

Selecting top 2 Markets out of 5 key

states
To gain 5 % market share in selected
market
Markets to select with target of
50000 by volume
40 Crore rupees in value
Price bands to focus in the selected
states
Market
Analysis : Size and
Overcoming channel conflicts

Parameters to select target

Market:
Market Size
Lenovos Penetration
Competition
Socio-Economic trends

Penetration

Target Market : Maharashtra and Karnataka

Maharashtra and Karnataka have the highest volume respectively
Lenovo has highest penetration in Karnataka, 1% in Maharashtra translates to
higher volume compare to other 3 states

Increasing Market Share

Competition Analysis:
Karnataka :
Market share of largest player in any
segment is maximum 13%
(Java-13%,Miramax-10%,SMG-8%)

Steps to increase Market

Share :
ATL Marketing:

Promoting Lenovo brand in mobile category

Celebrity endorsement to differentiate

Maharashtra:
Category with <$150 is huge, 2
Billion rupees with Market leader
having 12% share

Referral Scheme:

Socio-Economic trends:

Online channel Sell:

Karnataka:
Literacy rate of more than 75%
Per Capita income Rs 77015 ,higher
than national
6th state in the terms of Mobile
subscribers
Government. initiative like M-One
Maharashtra:
Highest per capita income among all
states

Any buyer can get a discount of 5-10% on

referring Lenovo mobile to prospective buyer
Give a Unique code to buyer which can be
exercised once

Use of online partner for flash sell of new

launches
To reach consumer where retail support is not
there

Leveraging Governments Digital drive:

Integrating marketing campaign based on

govt. initiative like Mobile one
Digital India

Differentiated Marketing Campaign

from PC

Scenario Analysis:
Key target to achieve in a
Quarter:
a. 50000 units from 2 states
b. Rs 40 crore in revenue

Price band to focus:

Priority 1: <$150
Priority 2: >$150-<$300
Reasons:

Maharashtra

Karnataka

Market is going to explode in <$150

price band as more consumers are
going to upgrade from feature
phone to Smartphone

In this segment, there is no

dominant player

Second category >$150-<$300 is

sandwich between entry and
premium category

Lenovo has good quality value for

money product in this range

Both market has good potential in

this segment

Sells in Volume:

Potential Sell is 51,500 assuming 5%

MS in each market
Assuming average billing is Rs 6,0008,000 ; Revenue generated will be Rs
31crore to 40 crore
Average billing in Karnataka is Rs 9459
and Maharashtra is Rs 7121

Online Vs. Offline

Steps to address Retail partner

trust:

Differentiated product portfolio:

Minimizing conflict between channels by different product
offerings
Timing of product availability on Online platform for limited period
Additional Value added Services:
Longer guarantee /warranty period for retail products
Exclusive accessories for retail store only
Regulatory and legal action against online player in extreme cases
Answer to Q6. C. Confront the partner and put an
end to this
Presentation created by:
Ashish Chandel
MBA 2013-15,IIFT Delhi
*Figures used in presentation are taken from Case provided and News articles