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