Lenovo Brand Strategy
By unit sales, the organization is considered as one of the biggest personal computer vendors in the world. According to Qi (2017), the company operates in more than sixty countries around the world and sells its products to close to 160 nations globally. Its primary facilities are based in Beijing and Morrisville. It also has research centers in towns and cities such as Shenzhen, Nanjing, Yamato, Kanagawa Prefecture among other research labs spread across China, Japan as well as the United States. The company also works in a joint venture with EMC selling network attached storage solutions under the brand name LenovoEMC (Herrera & White 2017). It is essential to realize that the firms brand awareness increased over the same period after the successful acquisition of IBM.
According to Abdulai & Ibrahim (2016), given that the company was only allowed to utilize IBM’s brand for only five years, the organization decided to drop the brand two years before the deadline. This indicated the confidence that the organization had on its brand. Despite this being the right move, the firm’s revenue collection decreased after dropping the IBM ThinkPad brand to Lenovo ThinkPad. According to Zhou & Huang (2014), its sales revenue dropped by close to five percent in the third quarter of 2008 resulting in a market share decline of seventeen percent. It is, however, critical to note that consumers who understand and know the value of the IBM ThinkPad are likely to be swayed by the price cuts and thus the transformation is likely to harm the brand equity.
Understanding the firm's branding strategy also calls for one to look at the brand positioning of the firm in reference to its competitors. Over the years the need for PCs has significantly increased as computers play a critical role in almost every aspect of the human life today (Itegi, 2015). As such, a number of consumers are on the lookout for more innovative devices that are appropriately priced. Crowning the product attributes of every organization in terms of innovation and pricing, firms such as HP, Acer, and Dell who are the primary competitors of Lenovo in international markets can be observed to position themselves as economy brands. Marketing Mix Kotabe & Helsen (2014) argues that owning a brand is easy, establishing one is relatively difficult, however, developing a brand that has international appeal or influence is extremely difficult.
Developing a brand for any given firm requires the right marketing mix that will see to it that the firm’s image is well reflected the public. The concept of marketing mix can be argued to be an integrated marketing activity where marketers utilize and optimize different variables that can be controlled to help in achieving set marketing goals (Khan, 2014). An effective marketing mix is one that has that right prices, means of promotion, market specific as well as the right channels of distribution. In developing its brand, Lenovo has effectively used the concept of the marketing mix to achieve its objectives. Market Position The firm's market position focuses on the following attributes including the high-end, middle, and high-end combination (Sabadash & Marchenko 2017).
Focusing on these three aspects of the market position, the company has managed to ensure continuity of its brand image and status in their client’s minds. In the IT industry, low energy devices are the primary concern for consumers. The image of a given firm significantly depends on the image it has in terms of the energy consumption of its products (Noureddine & Rajan 2015). As such, to enhance its brand image, Lenovo has been forced to choose low energy consuming devices as part of their product line. Given that the company serves different segments of the market, the firm uses various prices on the differentiated products to help meet the demands of their consumer groups. The company is focused on developing high-quality products that are relatively priced for all its consumer groups that include both the middle and high-end clients (Montoya & Kita 2018).
The pricing at Lenovo is based on its production. To avert the price wars, the company leverages its products and uses international exports to avoid being involved in domestic price wars with its competition. Conclusion In conclusion, Lenovo as a firm is one of the leading computer manufacturing organizations in the world. Branding in China–An Institutional and Consumer Perspective. Journal of Emerging Trends in Marketing and Management, 1(1), 70-79. Bakker, D. Branding Trends in Asian Markets. In Multinational Management (pp. C. The evolution of China's mobile phone industry and good-enough innovation. China as an innovation nation, 261-282. Frederiks, E. R. In The Role of Corporate Sustainability in Asian Development (pp. Springer, Cham. Itegi, F. M. Improving organization performance: project management approach sustainable development in face of globalization.
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