Vineeth. K Vivek.

The Proceedings
History
Concepts Used By LENOVO Un-branding IBMs ThinkPad and

ThinkCentre. Positioning Brand LENOVO. Market Segmentation. Tackling with Competition .

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HISTORY

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Marketing concept
Target market

-Complementary market for Lenovo & IBM -Match made in Heaven -China-Major Consumer Integrated marketing -Use of IBM Logos -Use if IBM Network for Global positioning Profitability -IBM PCs provide the lowest cost of ownership and the highest return on investment. Lenovo has indicated that it intends to continue to offer these advantages.
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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

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Un-branding
What is the ThinkPad and ThinkCentre Legacy?
Why Lenovo needs to Cannibalize it?

Do looks matter?

Configuration Changes

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Branding LENOVO
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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Extension of the Maturity Phase

Introduction

More innovative and new products and services are required to be in the markets.
IBM missed the bus here.

Decline

Product Life Cycle

Growth

Lenovo is CATCHING UP from

where IBM was left out, by being more dynamic and improvising with the situation demands.

Maturity

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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.

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 Relative Marketing
Partners : IBM, Microsoft, Symantec, Intel. Collaborators : Siebel, Utmaco, Vodafone, CISCO.

Mega marketing
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.

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)
MAX

Dogs(Fujitsu,Siemens)

RELATIVE MARKET SHARE

MIN

DELL & HP ACER

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. Cashing on the name of IBM ThinkPad and ThinkCentre at the moment. Getting bigger. They are CASH COWS.

LENOVO FUJITSUSIEMENS

Losing its share all over Hence a DOG

Competition Strategies
CRM and Customer Support

-Building CRM by providing training , consulting etc.

Value Priced Goods

-Lenovo provides Low Cost ,Good quality products.

Niche Marketing

-SECURITY Biometrics, Face & Finger print recognition -WIRELESS CONNECTIVITY -R&D (Collaboration with MIT in the US and IITs in India)

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Q4 Product Performance 2008

Notebook
Shipment up 2% YTY Gained market share in both Commercial and Consumer Notebook

segments Sales down 26% YTY, 60% of total sales Product mix moving towards lower priced offerings IdeaPad netbooks contributed to significant growth

Desktop
Shipment down 18% YTY

Gained market share in WW total Desktop segment Sales down 26% YTY, 38% of total sales Introduced various models, including AIO IdeaCentre A600 Simplified product portfolio to drive operational efficiency and reduce costs

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2008-Q4 Results

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Powerful Product Mix

High End technology Affordable Price

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Thank you
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