Lenovo Laptop Project

8/14/2019 Lenovo Laptop Project

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PROJECTS, ASSIGNMENTS, REPORTS ON

MARKETING,

MANAGEMENT,

ECONOMICS

MARKETING MANAGEMENT,

ACCOUNTING,

HUMAN RESOURCE,

ORGANIZATIONAL BEHAVIOR,

FINANCIAL MANAGEMENT

COST ACCOUNTING

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THE PROMOTI ONA L T OOLS

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ADVERTISING

1. PERVASIVENESS: Advertising permits the seller to repeat a

message many times. It also allows the buyer to compare messages of various

competitors. Large scale advertising says something positive about the seller size,

power and success.

2. AMPLIFIED EXPRESSIVENESS: Advertising provides

opppournities for dramatizing the company and its products through the artful print

sound color.



ADVERTIS ING C AN B E

USED TO BUIL D UP A

LONG TE RM IM AGE FOR APRODU CT

PROMOTION

The promotion mix within the marketing mix includes advertising, sales promotion

and personal selling. Product promotion means making the product popular among

the consumers and raising its sales through suitable measures the basic purpose is

to widen the scope of marketing.

sales promotion means the promotional activities other than personal salesmanship,

advertising and publicity which stimulate consumer purchasing and dealer

effectiveness through displays, exhibitions, demonstrations, free samples,

discounts, premium etc. it is plus ingredient in marketing mix it act as bridge link

in between advertising and personal salesmanship. It acts as a supporting facility to

advertising and personal selling.



FEA TURES O F SALES

PROMO TIO N

1. SALES PROMOTION ACTS AS A TOOL IN MARKETING TO

LUBRICATE MARKETING EFFORTS.

2. IT IS NECESSARY IN PRESENT COMPETITIVE WORLD AND

CONSUMER ORIENTED MARKETING

3. IT SUPPORTS ADVERTISING AND PERSONAL SELLING.

4. IT AMIS STIMULATING CONSUMER PURCHASING AT POINT OF

SALE.

5. IT PROVIDES MORE SALES AND PROFITS TO PRODUCERS AND

DEALERS

NEED OF SALES PROMOTION

1. FOR UNLOADING ACCUMULATED INVENTORY.

2. FOR INTRODUCING NEW PRODUCTS.

3. FOR OVERCOMING SEASONAL SLUMPS.

4. FOR SUPPORTING ADVERTISING CAMPAIGN.

5. FOR GETTING NEW ACCOUNTS.

5. FOR SUPPORTING AND SUPPLEMENTING SALESMAN EFFORTS.

OBJECTIVES OF SALES PROMOTION1. TO RAISE VOLUME OF SALES OF PRODUCT.

2. TO RAISE BUYING RESPONSE AND POTENTIAL CONSUMERS.

THREE MA RKETING



PROMO TIO N ST RATEGY

A] DEFINE YOUR VP-up stands for value proposition and it is

critical to define what unique value you can bring to your customer. The three

items that you should not define as your up.

1 low price-if your only differentiator is price, customer is in tough time. Price is

probably the worst way to attempt to differentiate your company. Making low

pricing your up is a mistake.

2. Quality products-they are not differentiator, they are an expectation.

3. service-good service is an expectation, not vp.good service is not simply aunique way you differentiate your business these days. Up need to focus on a

unique way you do business, it can be way your information is packaged, a

guarantee that no one else offers, or the way your product can transform people.

Once you defined your value proposition, you must ensure that this message comes

across clearly to your customers and prospects. An easy way to develop a business

tag line based on your up and uses this tag in all your customers’ communications.

B} MATCH THE MESSAGE TO THE

CUSTOMER- the more you know and are able to define your various

buyer personas, the more you will be able to communicate tightly focused and

powerful message that is relevant to particular customer.

C} GIVE SOMETHING FOR NOTHING- this means

to build trust by giving away something for nothing. Before you attempt to sell.

You must create trust they want information. When they surf the internet they need

information. The trust can be created over time by consistently showing customer

the knowledge, expertise and values



START OF

LENOVO

“Hope through Entrepreneurship” tells not just the story of Lenovo’s corporatesocial investments, but the company’s own history. In 1984, 11 computer scientists

in Beijing, China had a vision to create a company that would bring the advantages

of information technology to the Chinese people. With approximately $25,000

USD in seed money and the determination to turn their research into successful

products, this team opened their business in a loaned space – a small, one-story

bungalow in Beijing.

Today, Lenovo is encouraging people around the world to make an impact. As

Lenovo’s technology helps bridge the physical gap among different parts of theworld, the company’s goal is to do the same through its social investments.

Given Lenovo’s history and the nature of its business, the company focuses on

helping people around the world transform their lives and their communities. To do

this, Lenovo supports organizations that encourage business development and

social entrepreneurship. Through microfinance institutions such as Opportunity

International, Lenovo is helping provide crucial loans to help disadvantaged people

in countries such as Africa, Asia, Latin America and Eastern Europe.

HISTO RY O F LE NOVO

http://www.opportunity.org/site/pp.asp?c=7oIDLROyGqF&b=203866










The following is a brief history of Lenovo:

- 2000: Legend shares peak at HK$14.75 on March 6.

- 2001: Dell takes the largest share of the worldwide PC market for the first time.

Legend sales reach a peak of HK$27.2 billion in the fiscal year ended March 2001

and decline to HK$23.2 billion in the most recent fiscal year ended March 2004.- 2003: The Company changes brand name to Lenovo from Legend to avoid

infringement of overseas brands. The company says it is preparing for expansion

outside China, which has overtaken Japan to become the world's second-largest PC

market. The US remains the world's largest PC market.

- 2004: The Company changes its name to Lenovo Group. Time Warner Inc, the

world's largest media company, on January 7 exits a US$50 million Internet

venture in China with Lenovo. China accounts for 99 percent of Lenovo's sales in

fiscal year ended March 2004 and 98 percent in the previous 12-month period.

Lenovo's first-quarter PC shipment growth in China lags rivals such as Dell,

according to market researcher IDC Corp. Lenovo has a 10.9 percent share of the

Asian market excluding Japan, compared with 7.3 percent for Dell. Lenovo's Asian

shipments rise 19 percent, compared with 52 percent for Dell. Lenovo's sales of

services and hand-held electronics grow the fastest of all its products in the most

recent two fiscal years, each at an average rate that roughly quadruples. Computer

sales rise at an average rate of 9 percent in the same period.

- December 3, 2004: IBM in discussions with Lenovo about the sale of its PC

business, the New York Times reports.- December 7, 2004: Lenovo says it's in talks with a major international company

about a possible acquisition.

- December 8, 2004: Lenovo's purchase of IBM's personal computer business

formally announced in Beijing yesterday. Acquisition expected to be completed in

the second quarter of 2005.



OBJE CTI VE OF LENOVO

Lenovo nose-diving into rural marketChina's top PC maker, Lenovo Group Ltd, by introducing cheaper computers, is

plunging head-on into the country's rural market, where PC penetration is low and

purchasing power is weak.

Analysts said the firm's low-price strategy will help it strengthen its market share,

which is shrinking. But they are divided about the long-term profitability of the

low-priced PCs.

Lenovo last week introduced a new consumer PC series and an e-classroom

solution aimed at users in ordinary households and the education sector intownships.

The retail prices for the new PC models will range from 2,999 Yuan (US$361), a

record low, to 5,999 Yuan (US$723).

Lenovo previously focused on PCs that cost more than 5,000 Yuan (US$602).



"The growth of the whole PC market is lackluster. But the township market

remains largely untapped," said Yang Yeaning, chief executive officer of Lenovo

Group Ltd.

The launch of the low-price PCs is part of Lenovo's strategic shift. He expects

shipments of the new PC series will reach 800,000-1 million units within a year.Beijing-based CCW Research said tapping the low-end market will increase

Lenovo's market share. And so it did."Lenovo is delivering a message that it

intends to cover all market segments, from high-end to low-end, "The low-price

strategy puts pressure on some regional brands.Besides, operating systems are not

pre-installed in the DIY market.

"We have been put in an unfair position," said Lu.

"If all vendors pre-installed legitimate operating systems and pay the VAT, our

market share would be much higher."GAO estimates gross profit margins for Lenovo's new series PCs will be about 8

per cent.

For fiscal year 2003, Lenovo's profit margins were 14.6 per cent, compared with

14.8 per cent in the last fiscal year.

Edward Yu, president of research house Analysis International, predicted the profit

margins will be much lower.

"The shipments of PCs priced at 2,999 Yuan are unlikely to reach 100,000 units.

Otherwise, it will be unprofitable," Yu said."The most likely scenario is quite a few of the PCs will be available in the

marketplace.

The low-priced move is largely a promotion strategy."

Since Lenovo is not adopting a "direct-sales" strategy, the firm is unlikely to save

the "channel cost," which usually accounts for nearly one-fifth of the price, Yu

explained.

Lu reaffirmed Lenovo will not follow Dell's "direct-sales" strategy.

Lenovo's low-price strategy is expected to spark a round of price-cutting in China'sPC industry.

China's No 2 PC maker, Founder Technology, "will not rule out the possibility of

making a similar move," said I Dongfeng, the company's managing president.

Qi last week said he agreed China's rural market promises much potential.

http://english.peopledaily.com.cn/data/province/beijing.html






"I think a PC price tag from 2,000-3,000 Yuan (US$241-361) for the rural market

is appropriate," he said.

Another PC maker, Langchao, plans to launch a new PC model that will cost about

1,999 Yuan (US$241), some media have reported.

A new round of price-cutting is expected dent profit margins industry-wide. Profitshave been dropping due to intense competition.

Statistics, released by Analysis last week, indicate PC sales in China in the year's

second quarter reached 17.53 billion Yuan (US$2.11 billion), up 17.8 per cent year-

on-year.

Shipments in the quarter totaled 2.91 million units, down 0.4 per cent compared

with previous quarter, but up 39 per cent year-on-year.

Lenovo's market share dropped 5.6 per cent, year-on-year, during the period,

Analysis said.Barcelona FC's super soccer star Ronald de Assis Moriera of Brazil, better known

as Ronaldinho has been named as the official representative of china's PC giant,

Lenovo, in its global promotion campaign. The two sides have signed a

confidentiality agreement but Lenovo declined to talk about the details, the

expenses in particular.

According to Chen Shaopeng, senior vice-president of Lenovo Group and

president of Lenovo's greater China operation, partnering with an international

sport star is an important part of Lenovo's global marketing strategy.Lenovo hopes Ronaldinho's personal charm and influence worldwide will help

Lenovo's global promotion campaign and gain popularity. During the one-year

promotion, Lenovo will be authorized to use Ronaldinho's personal images as well

as all the brands of Barcelona FC.

"I believe that combination of the charm of soccer and the sci-tech of computer

will bring more color and pleasure to people's life, noted Marc Ingle, vice president

of Barcelona FC.

The list of the commercial value of soccer stars done by Germany-based BBDOConsulting months before shows that Ronaldinho, with 32.6 million pounds topsthe rank.

http://english.peopledaily.com.cn/data/brazil.html

http://english.peopledaily.com.cn/data/germany.html









SWOT An alys is

Strengths:

➢ Strong sale position in mainland (china) because of 90%sale from

it.

➢ Market leader in china as Lenovo is learning more revenue from

the mainland.

➢ Low production cost.

➢ Event sponsoring.

➢ Good marketing and distribution strategy.

➢ Strategic alliance with suppliers

➢ Distribution channel



Opportunity

Pc sales are expected to grow

Fast growing international marketSigning of memorandum of understanding with USA

Specialty shops providing one stop platform for distribution

THREATS

Competition threats from local and international competitor

Price war

Maturing market

International competitors forming alliance with local competitors

Threat of price competition with clone PC makers

LEN OVO BOOSTS O NLIN E S ALES

THR OUGH BARGAIN PROM OTION

China's leading PC producer Lenovo Group (0992.HK; LNVGY.PK), recentlyinitiated a series of market promotion activities for low-price products in domestic

online market.

The PC giant earlier launched a product under the ThinkPad series for the student

market at 7,999yuan and recently cut the price of a new PC product under the

ThinkPad SL series to 3,000yuan from 5,000yuan.

A market analyst says that the price of IT product is on the decline due to cost

reduction of parts and terminal. Besides, the low- price strategy could produce the

largest effect in the summer holiday due to high price sensitivity in the period.The company has begun to boost the promotion for online buyers, in particularly

the youth and students, because the company could cut great cost to support its

low-price strategy.

http://www.zibb.com/all/theme/cq/Lenovo%20Group






With the extension of internet coverage, the booming online consumption is

underpinned by reduced marginal cost due to more conveniences and increasing

transparency of price for the components of IT products.

The analyst believes that the campaign would bring great troubles to the domestic

PC producers in the second and third camps, which might spark a new wave of merger and acquisition in China.

LENO VO EXP ANDS MOTORSP ORTS

PRESEN CE TO INDYC AR S ERIES

FOR IN DY 500 WITH CURB/

ALABAMIAN/ BEC K TEAM

Lenovo Promotes Relationship with NBA by Highlighting the Finals on the Car

INDIANAPOLIS -- Lenovo, a leading computer company that creates the best-

engineered PCs in the world, today announced a sponsorship agreement with theCURB/ Alabamian/Beck team for the crown jewel race within the Indy Car Series -

the Indianapolis 500.

The announcement marks Lenovo's interest in identifying how motor sports can

help drive the company's goal for building brand awareness on a global scale. This

coming weekend provides a significant opportunity for worldwide brand exposure.





networking, inventory, relationships with clients, sponsors and suppliers, human

resources, finance and strategy.

CURB/Agaganian/Beck Motor sports are a team in the Indy Racing League owned

by Greg Beck, Cary Alabamian, and Mike Curb. The team's car is a black No. 98

Dollar/Honda/Firestone car. The team participated as Team Leader Motor sportswhen two Indy Car Teams joined forces to field cars for the 2006 Indianapolis 500.

The first team was Beck Motor sports owned by Greg Beck which was founded in

1995. The second team R. Kent Baker Racing owned by Kent Baker which was

founded in 1988. Both Baker and Beck had many years experience working with

their own and various other Indy Car teams. They were joined by Cary Alabamian

and Mike Curb of Curb Alabamian Motor sports.

About the Indy Car Series:

The Indy Car Series is the premier open-wheel series in the U.S., competing on achallenging combination of super speedways, short ovals, scenic road courses and

temporary street circuits. In 2007 the Indy Car Series will conduct 16 events in the

U.S. and one in Japan, all available worldwide through a comprehensive, long-term

agreement with ABC Sports/ ESPN. A leader in motor sports technology, the Indy

Car Series is the first racing series to power its Honda engines on 100 percent fuel-

grade ethanol. The Indy Car Series continues to the be the fastest and most

competitive racing series, attracting a diverse lineup of drivers including Marco

Amoretti, Sam Cornish Jr., and Dania Patrick.

OLYMPIC GAME

Lenovo, worldwide partner of the Olympic Torch Relay and the exclusive

computing equipment supplier for the Beijing 2008 Olympic Games, is offering

limited-edition notebook PCs inspired by the Lenovo-designed Olympic torch

leading into the Beijing 2008 Olympic Games.

Bid on this limited-edition Lenovo 3000 V200 notebook PC signed by Gail

Emmys of the U.K. Badminton team, the last one of only three available

exclusively through this auction. With the Beijing 2008 Olympic Games just

one week away, here's your last chance to win this commemorative notebook

PC!



About the limited-edition Lenovo 3000 V200 notebook PC

Like the “Cloud of Promise” on which the design is based, the notebook cover

features striking swirls of silver against a pure red base color. Gail’s signature is

prominently displayed on the cover of the notebook (signed with a black Sharpie

Fine Point Permanent marker).

Due to export restrictions and policies, this product is only available for shipment

within the U.K. or to the U.S.A. Bids will only be accepted from bidders with

shipping addresses in the U.K. or U.S.A.

Specs:

Lenovo 3000 V Series notebooks are built to provide worry-free computing in astylish, media-friendly and powerful ultra portable widescreen.

Processor

Intel® Core™ 2 Duo T5250 (1.50GHz, 2MBL2, 667MHzFSB)

Operating system

Windows Vista Business

Display type

12.1 inches WXGA Vibrant View TFT with integrated camera (1280x800)

(Premium Silver)

System graphics

Intel Graphics Media Accelerator X3100

Total memory

1GB PC2-5300DDR2 SDRAM

Hard drive

160GB, 5400rpm Serial ATA

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Optical device

8X Max DVD Recordable (Dual Layer) PATA Fixed Media Bay drive

Wireless cards

Bluetooth Version 2.0 + EDR,Intel PRO/Wireless 3945ABG

Battery6 Cell Lithium-Ion Battery

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Lenovo Laptop Project