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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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Marketing concept
o Target market o Needs o Integrated marketing o Profitability
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Un-branding
What is the Thinkpad and Thinkcentre Legacy? Why Lenovo needs to Cannibalize it?
Looks do matter - Plain Jane Look It had same set of computer configuration for a long time so the sales had declined.
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Cannibalize-Why??
A powerful brand sometimes acts as a bane-People expect products to match the previous known standards The IBM and Thinkpad, Thinkcentre tags can be used only for 5 years by Lenovo.
Branding LENOVO
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Credibility
Differentiation
China=??
It can use IBM logo Till 2010 Use the name IBM optimally to build brand LENOVO
Performance Quality
Style
Services
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Services
Easy Ordering
Partner Training
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Introduction
Decline
Growth
Maturity
Evolution
IBMs Mistake
Did not modify its offerings regulary
Lenovos Strategy
Be dynamic and keep changing as the situation demands.
Individuals
Corporate buyers
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.
Geographic Segmentation
Executive Headquarters: N.Y Principal Operation: Beijing, Singapore. Sales Headquarters: Beijing, Singapore, N.Y, Paris. Manufacturing Centers: China, India.
Relative Marketing
Partners : IBM, Microsoft, Symantec, Intel. Collaborators : Siebel, Utmaco, Vodafone, CISCO.
Mega marketing:
NBA
Lenovo: Official PC Partner of the NBA. Beginning the 2006-07 season, the NBA is utilizing Lenovo PCs across all 29 NBA arenas to support 1,300 games played during the regular season and playoffs.
Olympic Partnership
A worldwide partner for the 2008 Beijing Olympic Games and \Global Torch Relay.[
MAX
M K T G R O W T H
MIN
STARS(Dell,HP)
Question Marks(ACER)
MAX
Have highest Mkt. share(Neck and neck) and they are growing at a high pace. Hence STARS.
Fastest growing Computer manufacturing company with low Mkt. share. Thus QUESTION MARKS.
It is cashing on the name of IBM thinkpad and thincentre at this instant. Surely they are getting bigger. They are CASH COWS.
COST STRUCTURE(LOW)
Sitting on the HOT HARDWARE ZONE(CHINA). Hardware prices will keep coming down.
VERTICAL INTEGRATION
More partnerships e.g. AMD.
DEGREE OF GLOBALIZATION
Maximum
Competitor Analysis
Who are the companies??
Analyzing Competition
Market share(Lenovo is third after Dell and HP) Heart Share(Dell is on the TOP, THINK PAD has still a lot of it) Mind Share(THINKPAD IS THINKPAD)
Competition Strategies
Flank Attack
Attacking Dell at the point at which Dell won the Battle last time i.e. CRM and Customer Support. Building CRM by providing training , 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, in 2004 the name Lenovo was acquired .In 2004-2005 it acquired IBMs PC manufacturing unit. A new BIG company was formed.
This company initially used the IBMs pricing scheme. Which we can consider as SKIMMING done by a new Company, which wants to earn as much as possible.
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Pricing Today
Dell which is the market leader offers an AMD Athlon processor in its lowest costing desktop worth $389(<16000 INR).
Now coming to Lenovo 3000 H desktop series A P4 processor in 18000. Looks like Lenovo is still Skimming if only cost is considered.
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Affordable Price
There is more BAD NEWS For Competitors. Bread and Butter Products like The 3000 series. High-end Products like Thinkpad and Thinkcentre.
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