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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

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Marketing concept
o Target market o Needs o Integrated marketing o Profitability

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Societal marketing concept


Introduction of energy star 4.0 More energy efficient and less carbon dioxide emission Energy star 4.0 deliver as much as 15% savings in annual electricity cost Less thermal stress and last longer

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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What is the Think-pad and Think-centre legacy?


No 2 brand -1997 No 9 brand -2007 Developing Countries are the main markets and as IBM is the has the 1st movers adv.

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.

Plain Jane Look


Though IBM is famous for quality configuration it is also known for its mundane looks. So Companies like Dell and HP with their good looks took away its share to some extent.

Configuration Change was not done in IBM.


The rapid change in technology also demands change in the machines .IBM used the same configuration for a long time. 1/20/2012 This also took away the customers from IBM and it suffered low sales . 8 Free template from www.brainybetty.com

Branding LENOVO

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Credibility

Differentiation

China=??

Features like latest configuration.

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

Customer Support, Training, Consulting

Partner Training

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Introduction

Decline

Product Life Cycle

Growth

Maturity

Extension of the Maturity Phase


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

Evolution

IBMs Mistake
Did not modify its offerings regulary

Lenovos Strategy
Be dynamic and keep changing as the situation demands.

Laptop & Desktop sales

Individuals

Corporate buyers

Industry Gaints like Vodafone

Small Business Units

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)

BCG Matrix Cash Cows(Lenovo) Dogs(FujitsuSiemens)


MIN

MAX

RELATIVE MARKET SHARE

DELL & HP ACER LENOVO FUJITSUSIEMENS

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.

Losing its share all over Hence a DOG

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.

Value Priced Goods


High Cost = High Quality machines is true indeed. Now Lenovo is Providing Low Cost ,Good quality stuff.

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.

Is it really that SIMPLE.

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THE ANSWER IS NOGUESS WHAT?


High End technology

Affordable Price

Going Rate Pricing


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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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DOING WHAT IBM SHOULD HAVE DONE IN THE 1st PLACE!!!!


The Product Mix now looks more powerful than before. They are doing what IBM did not do.

Be a big firm give world class products.


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Dont Forget to Generate Volumes.

At least you wont loose your Market Share.

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Thanks For Being Patient !!!!!

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