Product and Brand Management-Lenovo

Product and Brand Management-Lenovo - Product and Brand...

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1 Product and Brand Management “Lenovo: Building a Global Brand”
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2 What should Lenovo’s overall corporate brand positioning and corporate branding strategy be in global markets? Why is developing a global corporate brand important to Lenovo? The needs to be an international company: To survive and succeed in the global business environment, Lenovo has no choice but to become an international firm in the PC business. In the Lenovo’s financial report we can observe the big differences between fiscal year 2005 and projected 2006’s taxes requirement of 35 million US dollars to projected taxes of 632 US million dollars. With China joined the WTO, Lenovo surely would lose its advantage of government intervention (tariff or other restriction of other PC companies, ex. HP, IBM) to ensure its market share and profitability in Chinese Market. Lenovo’s market share of 30% in 2001 was number one in the Chinese market, but Dell computer, upstarts, as well as PC clones also posted strong challenges to its leading market share. To grow the company, Lenovo would have to expand to the worldwide market that it didn’t have. With the acquisition of IBM PC division announced in December 2004 gave Lenovo a great opportunity to expand its territory outside Asia. To leverage this great acquisition, Lenovo needed to establish itself as an international company that could convert itself from a PC brand was little known globally to a company that not only can succeed in innovation to carry the legendary Thinkpad brand but also reinforce its strengths of an innovative PC brand that’s highly efficient. Lenovo’s Corporation Brand Strategies: Before the Acquisition of IBM PC division, Lenovo was a highly successful local PC brand of China. It was perceived as an innovative PC company through its customization and understanding of its main base of Chinese market by introducing Chinese specific needs for PC like legend cards for Chinese characters processing, sales channels for PC instead of direct sales, etc. To expand this innovation-oriented strategy, not just a computer company from China that would be perceived by many as a company to simply provide inexpensive and less innovative, less reliable PC, Lenovo needs to combine its innovative DNA to its PC brand.
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3 To define the brand, several factors needed to be considered: (1) Brand Attributes (2) Consumer Expectations (3) Competitor attributes (4) Price (5) Consumer perceptions In China, the customers accepted Legend computers (Lenovo’s Chinese brand name) as a premium computer, Lenovo had to reinforce this perception to its global brand. The corporate branding and positioning strategy was defined by its global marketing team to use “synergy approach” to create its global brand. The Thinkpad, a well known reliable innovative premium notebook PC, would be used as a sub-brand to give Lenovo the master brand, its personality. Three steps were taken to carry this strategy, 1) from March 2005 to September 2005 to provide
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Product and Brand Management-Lenovo - Product and Brand...

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