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Lenovo - Building Global Brand

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nhan phan

on 28 October 2014

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Transcript of Lenovo - Building Global Brand

Outline:
- Overview of the company
- Customers or market
- Competitors and industry
- Positioning strategy
- Innovation strategy
- Brand strategy
- 4Ps of marketing strategy
- SWOT of the Lenovo
- Porter’s five forces analysis
- Suggestions
1.2 Lenovo’s way of globalization

In 2004, Lenovo acquired IBM
In 2005, Lenovo introduces the industry's thinnest, lightest
and most secure Tablet PC; fingerprint reader
In 2006, First Lenovo-branded products outside China
debut worldwide; first dual-core; winter OGs
In 2008, Lenovo entered the worldwide consumer PC
market with new Idea brand
In 2009, Lenovo led PC industry in using recycled material
In 2010, Lenovo achieves its highest ever worldwide
market share and becomes the world’s fastest
growing major PC manufacturer

1.3 Major businesses

Laptops & Ultrabooks
Tablets
Desktops & all-in-ones

1.4 Financial performance
2.
Customers or market
2.1
Segments and target

Segments:
- As for the laptops,
+ IdeaPad for young people.
+ ThinkPad for business person.

-As for the tablets,
+ IdeaPad which is optimized for entertainment.

-As for the desktop & all-in-ones,
+ IdeaCenter Desktops fucus on daily use.



2.2
Characteristics of customers and segments
As for the characteristics of customers,
- Customers from high-end market:
1)do not care about the price;
2)emphasize the function of the PCs and prefer luxurious design and limited
products;
3)need more personal and after-sales service and want to pay for the customized
products.
- Customers from the low-end market:
1)price-sensitive;
2)a high-quality PC at a lower price.
As for the characteristics of the segments,

- Lenovo series: focus on the small businesses and consumers with daily use.
- ThinkPad series: target the corporate and enterprise customers.

3. Competitors and industry
3.1 Lenevo and its competitors in the category of laptop and desktop
In the category of laptop and desktop, Lenovo’s main competitors are HP (17.7% market share) and Dell (11.4% market share)


HP’s key successful factors:
1. “HP culture” which emphasizes the value of their employees
2. Return to the society. eg, providing scholarship to many
universities, sponsoring various kinds of research or social activities
and so on

Dell’s special points:
1. Customer-orientation
2. Direct selling model and special supply chain
3. Focusing on the core competence and depending heavily on outsourcing


Comparing with Dell and HP, Lenovo’s advantages:
1. In Asia-Pacific Market, Lenovo occupies a larger
mkt share
2. Lenovo formed the Double-brand strategy, after
acquired IBM’s PC
3. Sponsor the Olympic Games
4. Multinational Management
5. Choose the computer mainboard as its main
product
6. Announcement of the new Lenovo name and
logo

Disadvantages:
1. Made-in-China brand
2. No core competence
3. Lenovo's market share in
Europe and America is very unstable
4. Product layout has some defects
5. As an new entrant in the global
market, it is difficult for Lenovo to
break the monopoly of big brands
3.2 Lenovo and its competitors in the category of tablets
1. Apple and Samsung has already kept a unshakable foothold in this
category.
2. Both Apple and Samsung have their own stable and powerful
operational system and related app stores to provide further service
to customers.


However, Lenovo choose another way to go to jump out of the limitations triggered by the existing tablet brand in the market
- Powered by Windows operational system,
- ultra-mobility, all-day battery life and
traditional ThinkPad virtues
- Can be a laptop if matched with the
bluetooth keyboard,
- Has various interfaces and can be used as a
projector.

Positioning strategy





For the
mature markets
(United States, Japan, and Europe): High-end brand
A. Introduce its ordinary products to the market.
B. Focusing more on differentiation and efficiency.
For the
emerging markets
(India, and Brazil):
Universal product brand
A. Making full use of the media. (eg,India,popular game show)
B. Lenovo began to occupy the market with promoting its star product of each kind. (eg,introduce premium product)

For China
:
•White-collar business people
A. Focusing on the business performance rather than the entertainment performance
B. Maybe essential and updated ThinkPad will be their favorite product
•People who emphasize Work and play simultaneously
•Game fans
•Potential consumers
1.Technical innovation
Lenovo builds up a world-class and 24 hours-on
global running system for technical innovation
- High performance server.
Lenovo applied 58 national patents which broke
through the key technique of piles of high
performance servers
- Information security technology,
Lenovo developed “Hengzhi” security chip honored as “the most security chip in China”, and this made Lenovo became the only one enterprise in the world
- Lenovo released its own safe technology brand to the industry for the first time--- LTT(Lenovo Trust™ Technology).

2. Products innovation
- Specially installed with fingerprint
recognition security system
- The computer using image analysis
and recognition technology
- Lenovo’s super computer came into being.
High performance computer products
- IdeaPad Yoga realized the combination
of tablet computer and laptop computer
- Lenovo has launched a series of light-weight called Ultrabooks
- Lenovo changed the cover of ThinkPad, using titanium cover.
Increased EVDO and antenna, close to a Wi-fi hotspot.
- Environmental products

3.Marketing innovation
3.1.The integration retails
- Divided the customers
3.2. Sports marketing
- Lenovo first chose to be the sponsor of
Winter Olympic in Turin in 2006 and Beijing Olympic in 2008
- Inviting the international sport stars for its spokesman, like the Brazilian
football star Ronaldinho and NBA star Kobe
- Lenovo signed a global marketing cooperation agreement with NBA. Use the NBA logo
3.3. Movie advertisement marketing
TV show called “ who wants to be
millionaire” in India
3.4. Lenovo was exploring
unconventional way to
position Lenovo
4 .Service innovation
- Lenovo’s personal customized service in America.
Lenovo’s e-commerce website system
- eCare network platform


6. Brand strategy
6.1 Lenoco’s global brand strategy
“One-two punch" strategy.
- Build up Lenovo as a strong
master brand
- Continue to strengthen the
ThinkPad product brand, which
was a special franchise that
could be leveraged to support the
Lenovo master brand.


6.2 Procedures to implement this special brand strategy
- First, the company ran a worldwide advertising campaign, where
every ad signed off with "ThinkPad" instead of Lenovo. The
objective was to maintain ThinkPad sales momentum, which
meant reassuring customers that little had changed since the
acquisition.
- Second, using the opportunity of hosting the Olympic Games,
which contribute to enhance the brand awareness in globalization.
Eg: ''ThinkPad Unleashed"
- Third, Lenovo emphasis the master brand stand for innovation.
They will to maintain the ThinkPad brand and use that brand's
strength to build the Lenovo brand.



Price:
Maintaining competitive advantage on low cost
Promotion:
Continue with global brand image
Place:

Make use of the strong B2B market to expand to B2C market
Product:
Quickly adapt to any customer change

7. ANALYSIS OF 4PS
Product:
Lenovo provide customers with award winning ThinkPad and Think Center. In China, Lenovo PC acquires almost one third of the market share
Price:
Lenovo always focus on the long-term vision and adopts the “high quality with low price” strategy
Place:
Two ends outside and the middle in - reasonable geographical layout of the value chain.
Promotion:
Lenovo conducted large-scale promotional activities.

STRENGTHS

- Goods and services have good quality.
- Good brand recognition and traditional
reputation
- Expanding global markets strategy of the
marketing.
- The diversification of products.
- Owns very convenient and beautiful images.
- Good public relationship and sponsorship.

WEAKNESSES
- Single marketing channel, the products and
services are mainly sold by monopolized
stores.
- Large number of product lines lie in the
expansion of overseas.
- Product styles are too fewer to choose.
- Marketing sources are not rich.
- Prices are not cheap.


OPPORTUNITIES
- Takeover Lenovo to become the largest
computer seller.
- Specialty business computer industry takes
larger market in the world.
- European countries market exploration,
such as England, France, Italy, Germany, etc.
- Division of products.


THREATS
- Too many cheap products appearing in the
world.
- Competition from other shoppers
embedding on form factors more pleasing
to the consumer.
- Strong market protect in some countries.
- Foreign exchange rate fluctuations.


Intensity of competitive rivalry:
- Large industry size. It is the positive for Lenovo.

Bargaining power of suppliers
- Volume is critical to suppliers. This can positively affect Lenovo
- Diverse distribution channel
Bargaining power of customers (buyers)
Large number of customers: Limited bargaining leverage helps Lenovo.

Threat of substitute products or services
- Substantial product differentiation: This is a positive for Lenovo.

Threat of new entrants
- High capital requirements
- Strong brand names are important
- Advanced technologies are required
- Industry requires economies of scale
- Entry barriers are high
1. Overview of the company
1.1 Brief history
During the past 20 years, Lenovo evolved from a small distributor of imported computers into China’s leading computer and digital products firm. Lenovo’s predecessor is New Technology Development, Inc.(NTD), which was established in a small concrete bungalow in Beijing by the Chinese Academic of Societies with $ 25,000 initial capital in 1984.

Rui Wang 201205034
Lili Wu 201205039
Xinyu Zhang 201205032
Phan Nhân(Mike) 201305015


Lenovo: Building a Global Brand

Mature market
(United States, Japan,
and Europe):
difficult to enter the high-end market

Emerging market
(India, and Brazil):
no brand awareness

China
: huge amount of customers and
diversified into various kinds

Target markets
:

“We put more innovation in the hands of more people so they can do more amazing things”
- Continue to improve its brand
- Lenovo should launch new product
with “Think” brand….
- Form its own core competence,
focusing more on eco-friendly product
- Be Prepare
Collaborators turning to competitors
Foreign governments
Exchange rate fluctuation
Recommendation
2013
Thanks for your attention !!!
1984
Legend Chinese-character card
1989
What Lenovo did :
Full transcript