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Lenovo
Building a Global Brand
Agenda
1.   Recommendations
2.   Industry analysis
3.   Brand position
4.   Effect of the IBM acquisition
5.   Implementation of strategy
6.   Next steps
Lenovo’s brand strategy will define the
success of it’s recent acquisition.
                                                Question:
Situation:
                                                Which brand strategy can we use to
Lenovo has taken a step towards the
                                                help consumers understand the who
global market by acquiring IBM’s PC
                                                we are and leads us into the global
division.
                                                market.




1                    2                    3                     4
Master Brand:         House of Brands:    Synergy:               Lexus/Toyota:
An exclusive focus    Moving away from    Developing the        Different brands
on building the       the Lenovo in       Lenovo brand and      representing
Lenovo brand.         favour of product   leveraging product    different offerings
                      specific brands.    specific brands.
Lenovo is a confused brand who would
  benefit from a synergy strategy.
      When selecting a strategy the           3
      follow are our key measures of
      success:                               Synergy:
                                             Developing the
      1.   Brand equity                      Lenovo brand and
      2.   New global position               leveraging product
      3.   Maintaining market share          specific brands.




This would allow us to effectively increase awareness of the
Lenovo brand while still leveraging the brand equity of ThinkPad.
Currently, Lenovo is positioned as a
 Low Innovation, Medium Priced brand.
                         Price
                           High




We are here right now.            HP

            Low                               High Innovation




                                       Dell

                           Low
We recommend positioning Lenovo to
be High Innovation, Medium Priced.
               Price
                 High




                        HP          We want to be here.

    Low                             High Innovation




                             Dell

                 Low
With the acquisition of IBM’s PC line, Lenovo
increase awareness in markets outside of China.


      The Chinese market         Enterprise



       Southern Pacific         Beyond China



       Small businesses



       Consumer market
IBM’s core brand complements
Lenovo’s brand.
Core competency         Lenovo              IBM
Innovation
Customer focus
Trustworthiness



                  Other benefits

                  1. Complementary client bases
                  2. Complementary product lines
                  3. No channel conflicts
Investing $240 million into global
marketing efforts will translate into value.
                         Worldwide Olympics Partner


                         Global Advertising Campaigns


$240 million

                                       Raise
                                                      Become
                    Building           global
                                                      market
                     Brand          awareness
                                                     leader in
                     Equity         to increase
                                                    innovation
                                     revenues




                               Introduce “Lenovo 3000”
Based on our forecasts, Lenovo will
generate the most sales using Synergy.

               Conservative   Base   Positive   Ideal
  Synergy          124        127      129      131
  House of         118        120      123      125
   Brands

Master Brand       106        108      110      112.5
Lexus/Toyota       115        117     119.5     122
Through the Synergy brand strategy, we are
  hitting Lenovo’s three key success factors.

      When selecting a strategy the           3
      follow are our key measures of
      success:                               Synergy:
                                             Developing the
      1.   Brand equity                      Lenovo brand and
      2.   New global position               leveraging product
      3.   Maintaining market share          specific brands.




This would allow us to effectively increase awareness of the
Lenovo brand while still leveraging the brand equity of ThinkPad.
A short term push in marketing is vital to the
  development of our brand awareness
                                     Global Advertising Campaign
           High




                    Winter Olympics                    Summer Olympics
Priority
           Medium




                                                          Innovation of ThinkPad

                                                                  Increasing Unaided Awareness
           Low




                               Advertising in Chinese Market


                    Year One                   Year two               Year Three and beyond

                                      Time Period
Questions?

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How Lenovo Can Build a Global Brand Through Synergy

  • 2. Agenda 1. Recommendations 2. Industry analysis 3. Brand position 4. Effect of the IBM acquisition 5. Implementation of strategy 6. Next steps
  • 3. Lenovo’s brand strategy will define the success of it’s recent acquisition. Question: Situation: Which brand strategy can we use to Lenovo has taken a step towards the help consumers understand the who global market by acquiring IBM’s PC we are and leads us into the global division. market. 1 2 3 4 Master Brand: House of Brands: Synergy: Lexus/Toyota: An exclusive focus Moving away from Developing the Different brands on building the the Lenovo in Lenovo brand and representing Lenovo brand. favour of product leveraging product different offerings specific brands. specific brands.
  • 4. Lenovo is a confused brand who would benefit from a synergy strategy. When selecting a strategy the 3 follow are our key measures of success: Synergy: Developing the 1. Brand equity Lenovo brand and 2. New global position leveraging product 3. Maintaining market share specific brands. This would allow us to effectively increase awareness of the Lenovo brand while still leveraging the brand equity of ThinkPad.
  • 5. Currently, Lenovo is positioned as a Low Innovation, Medium Priced brand. Price High We are here right now. HP Low High Innovation Dell Low
  • 6. We recommend positioning Lenovo to be High Innovation, Medium Priced. Price High HP We want to be here. Low High Innovation Dell Low
  • 7. With the acquisition of IBM’s PC line, Lenovo increase awareness in markets outside of China. The Chinese market Enterprise Southern Pacific Beyond China Small businesses Consumer market
  • 8. IBM’s core brand complements Lenovo’s brand. Core competency Lenovo IBM Innovation Customer focus Trustworthiness Other benefits 1. Complementary client bases 2. Complementary product lines 3. No channel conflicts
  • 9. Investing $240 million into global marketing efforts will translate into value. Worldwide Olympics Partner Global Advertising Campaigns $240 million Raise Become Building global market Brand awareness leader in Equity to increase innovation revenues Introduce “Lenovo 3000”
  • 10. Based on our forecasts, Lenovo will generate the most sales using Synergy. Conservative Base Positive Ideal Synergy 124 127 129 131 House of 118 120 123 125 Brands Master Brand 106 108 110 112.5 Lexus/Toyota 115 117 119.5 122
  • 11. Through the Synergy brand strategy, we are hitting Lenovo’s three key success factors. When selecting a strategy the 3 follow are our key measures of success: Synergy: Developing the 1. Brand equity Lenovo brand and 2. New global position leveraging product 3. Maintaining market share specific brands. This would allow us to effectively increase awareness of the Lenovo brand while still leveraging the brand equity of ThinkPad.
  • 12. A short term push in marketing is vital to the development of our brand awareness Global Advertising Campaign High Winter Olympics Summer Olympics Priority Medium Innovation of ThinkPad Increasing Unaided Awareness Low Advertising in Chinese Market Year One Year two Year Three and beyond Time Period