Académique Documents
Professionnel Documents
Culture Documents
India.
• Indian Laptop market is now in sync with global
market.
Legend to Lenovo
• 1984: Chinese Academy of Science founded the
New Technology Developer, Inc (NTD).
• 1987: Legend character card which translated
English language operating systems into
Chinese.
• 1989:NTD renamed Legend Computer Company.
• 1990: Legend launched its own computer.
• 1996: Legend introduced itd first laptop model.
• 2004: Legend renamed Lenovo (Le + novo) the
same year a deal with IBM PC.
•
•
4 Ps of Marketing
Pro d u ct P la ce
• Desktops Le n o vo h a s th e
• Laptops h ig h e st m a rke t
(scratch sh a re in C h in a ,
resistant, o f o ve r 3 5 %
protective &
titanium C u rre n tly it h a s
cover). th e th ird p la ce in
• Servers G lo b a lP C
• Client base is m a rke t
small business
and Its m a rke t sh a re
customers. is co n sta n tly
Product Map
Everyone
Putting more innovation in the hands
of more people so they can do more
amazing things.
Few
Innovation
Commodity
Price Promotion
• Reasonable rates of Promotion in India –
laptops ‘’Who wants to be a
millionaire.
• Follows competitive
pricing strategy Turin Olympics
sponsorship
• Prices for all range of
Product oriented
customer base messages in advertising.
• Follows a different price Public relation
range for products in campaigns.
India and China Advertisements focused
• Accessories and After- on quality and
innovation
sales services is very
cheap compared to
its competitors.
Branding decisions
•Customers concern:
i. Innovation
ii. Quality
iii. Service and support
•
•Branding alternatives:
i. Master brand
ii. House of brands
iii. Synergy approach
iv. Lenux/toyota strategy
v.
Building the Masterbrand
• “one-two punch” ; build up Lenovo as a strong
Master brand
and continue to strengthen the ThinkPad product
brand
• Three phase advertising plan
• Worldwide advertising campaign
• “ThinkPad Unleashed” during Turin Olympics opening
ceremony
• Lenovo as a Masterbrand for innovation
•
i.
ii.
Innovations
•Think Pad 60 –needed something appealing .
•Titanium cover
•Protection
•Scratch resistant
•Built-in EVDO wireless broadband card and antenna.
•
BCG Matrix
The BCG matrix method is based on the product
life cycle theory that can be used to determine
what priorities should be given in the product
portfolio of a business unit.
Categories of BCG Matrix
Lenovo in BCG Matrix
GE Matrix
T h e G E M a trix w o rks in 3 x3
M a trix
Market Attractiveness
Market size
Market growth rate
Market profitability
Pricing trends
Entry barriers
Demand variability
Segmentation
Distribution structure
Technology development
Competitive Strength
Strength of assets and competencies
Relative brand strength (marketing)
Market share
Customer loyalty
competitors)
Relative profit margins (compared to competitors)
Quality
Management strength
Lenovo in GE Matrix
Michael Porter’s
FIVE COMPETITIVE
FORCES
The purpose of
Five-Forces Analysis
• The five forces are environmental
forces that impact on a
company’s ability to compete in
a given market.
• The purpose of five-forces analysis
is to diagnose the principal
competitive pressures in a
market and assess how strong
and important each one is.
Porter ’ s Five Forces
Model of Competition
Threat of
Threat
New of New
Entrants
Entrants
T h re a t o f
S u b stitu te
Pro d u cts
Threat of New Entrants
Economies of Scale
Product Differentiation
Capital Requirements
Switching Costs
Government Policy
Bargaining Power of
Suppliers
Suppliers are likely to be powerful if :
Example :
Five
forces
New World, New
Thinking.
Customers who
B u y e r’ s p o w e r are
enterprises
have less power
as compared to
individual
buyers.
The Five Forces of Competition Model
HIGH
INTENSE
LOW
MODERATE
High
SWOT
Strength Weakness
Lean cost structure Unable to maintain sustained
Effective business model growth rate in all market
Innovation leadership segment
Event sponsoring Ignoring potential market
National image.
Opportunity Threat
Increasing globaldemand Competition threat from both
for PC local and international
Specialty shops proving one market
stop platform for distribution Industry reaching maturity
Everyone
Putting more innovation in the hands
of more people so they can do more
amazing things.
Few
Innovation
Commodity
Lenovo’s growth Strategy
• Changed its name Lenovo from Legend in 2003.
• In 2004 LENOVO acquired IBM’s PC division.
• Adopted direct distribution technique leaving
traditional technique.
• Lenovo established new Innovation center in 2005.
• Lenovo introduced the first Dual-core ThinkPad
notebook PCs in 2006.
• Sponsored 2006 Olympic Winter Games in Torino, Italy,
supplying 5000 desktops.
• Increasing the range of product categories
(diversification) in order to maximize the number
of customers and to face fierce competition
• Efficient international management.
•
PROFIT IMPACT OF MARKETING
STRATEGY
(PIMS MODEL)
The PIMS (Profit Impact of Market Strategy) of the
Strategic Planning Institute is a large scale study
designed to measure the relationship between
business actions and business results.
•
• THANK YOU
•
PRESENTED BY:
HARSHA
ABHISHEK
MUKESH
MANALI
PANKAJ
PRIYANKA