Lenovo: Brand Observation Portfolio

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Brand Observation Portfolio

Under the guidance of Prof. Ravi Shanker

Submitted by:
Ayush Goyal (17)
Gaurav Singh(20)
Karthik Raja(24)
Nitesh Warke(33)
Table of contents
Understanding the market and competition4
STP Analysis5
Targeting Rationale5
Product Strategy7
Brands in the Lenovo space13
Promotion Strategy13
Impact of Promotion and Future Outlook13
Channel Strategy15
Channels of Distribution15
Physical Distribution16
Lenovo Customer Support17
Distribution Strategy18
Pricing Strategy19
Alternate Pricing Strategy20
Product Life Cycle and New Product Development Strategy21
Shop Visits23

Lenovo is an ace Chinese computer technology corporation that develops, manufactures and markets desktops and notebook personal computers, workstations, servers, storage drives, IT management software, and related services has been a big player in the laptop and notebook market after acquiring the concerned business from IBM. Primary activities: Inbound Logistics; Operation; Outbound Logistics; Marketing and Sales; Service. Lenovo does all the operations from the cargo to the assembly production, from the product-sells to the post-sale service. This has helped company realize the large scale production and cost efficiency. In sales aspect, the company provides many kinds of purchases and the marketing channels. The customer can directly get the product through the on-line purchase and the store purchase way. Support activities: Procurement; Technology Development; Human Resource Management; Firm Infrastructure. Lenovo has formidable technical strength, especially in product research and development, and highly trained technical personnel. This superiority has guaranteed the company’s leading status in the market. Lenovo's global research and development centers in China, Japan and the US have produced some of the world's most important advances in PC technology. The company is rich in talent, with teams who have won hundreds of technology and design awards – including more than 2,000 patents – and introduced many industry firsts. And many more are on the way. Core competency

After conformity with the PC department of IBM, the brand, the scale, the efficiency have become the new Lenovo the core competitive ability. In brand aspect, Lenovo continues to maintain IBM and the Lenovo brand inherent. High premium brand localization has helped the new Lenovo achieve higher profit levels. In scale aspect, Lenovo, the largest player in China and IBM have complementary strength. With the presence of IBM in various markets, the new Lenovo seeks to expand its foothold outside China in the other Asian markets and developed world. In efficiency aspect, The Lenovo at present has in the global first ten big PC merchant. Lenovo has the lowest core business running cost rate - 6.9%. Going into the future it will fully display the highly effective operation platform superiority which it has already established in China, in the purchase, supply chain, research and development and service. With the support area being strengthened with the coming of IBM, there are going to be further efficiencies resulting from economies of scale.

Understanding the market and competition
In China, Lenovo has a 30% market share and is the biggest player there. In India, its market share was 6.7% last year and currently is at 7.2% ending March this year. It is ranked 5th in the Indian market after Hewlett-Packard, Dell, Acer and HCL Infosystems, according to research firm IDC

In the laptop market there is a huge competition as Dell now has overtaken HP as the ace seller of laptop in India. The annual sales of PCs are expected to be in the range of 10 million by 2015, of which the laptop market is expected to occupy nearly 50% of the pie by...
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