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Marketing Channel Design
For Lenovo’s Smartphone Business

1.Marketing channel for Lenovo computer business in China
1)Development of Lenovo computer’s marketing channel
Phase 1: before 1994 Direct sellingPhase 2: 1994-1998 Agents and distributors Phase 3: 1998-2004 Intensive DistributionPhase 4: after 2005 Integrated Distribution In phase 4, Lenovo divided its computer business into two parts, Mode Trading for individual costumers and Mode Relationship for commercial clients. Lenovo clarified its integrated policy on channel management and information share, which is Lenovo community. 2)Current Lenovo computer’s marketing channel

a)In 2010, Lenovo made adjustments to its computer marketing channel. Two significant changes are of interest here: •Chinese computer market is divided into Developed Market (big cities, SMEs) and Emerging Market (rural areas), with big city chain stores and rural stores added to channel. •Lenovo enhance channel members’ relationship by assisting channel members to promote their own products (e.g. software) in their own channels or in other channels. b)Lenovo computer’s channel advantages over competitors

DELL, one of Lenovo’s biggest competitors, is known for its direct selling. Founder is a national computer brand comes after Lenovo. Another leading national brand is Great Wall who established the earliest exclusive stores in Chinese IT industry. After several adjustments of marketing channel in 2010, Lenovo computer’s market share hit a new record of 32.2% in the third quarter of 2010 . Thus compared with its main competitors, Lenovo’s channel advantages are as followed: •Lenovo is more accessible than DELL for the customers, additionally for customers who live in rural areas. •Diversified channels would reduce risk of lose.

Better Channel member’s relationship management helps to control conflicts between channel members, promotion, and the brand image. •Additional assistance to channel member...
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