Lenovo Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Lenovo analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Lenovo marketing mix, help the brand succeed in the market. Let us start the Lenovo Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Lenovo Product Strategy:
The product strategy and mix in Lenovo marketing strategy can be explained as follows:
Lenovo is a leading computer and consumer electronics brand, serving almost all countries worldwide. Lenovo is well known for its design, quality and performance of its products. The wide offering in its marketing mix product portfolio includes computers, smartphones, TVs, wearable devices etc. It also focuses on user- friendliness while designing its products.
In 2005, Lenovo acquired IBM’s personal computer business for US$1.25 billion, due to which Lenovo’s access to foreign markets has increased tremendously. Since 2013, Lenovo is the world’s highest personal computer selling brand.
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Lenovo Price/Pricing Strategy:
Below is the pricing strategy in Lenovo marketing strategy:
Lenovo has adopted a smart pricing strategy. In the laptops and PCs market, Lenovo offers products belonging to different price ranges so that it can cater to customers belonging to various segments.
It has laptops ranging from $400 to $1000 and they also have other high end models costing more than $2000. With the market having excess production capacity, the competition between brands producing smartphones, tablets and similar products has increased to a great extent. Lenovo as a brand has to be extremely careful in deciding the price of its products. If the products are priced too high, consumers may prefer other competing brands such as Dell, Acer and Hewlett-Packard. On the other hand, if the products are priced too low, the brand image of the company may deteriorate in the minds of the users. As far as it comes to the pricing of mobile phones, Lenovo has adopted the cost plus pricing method because Lenovo does not produce a huge variety of products in the mobile phone market and going for a competitive pricing strategy in its marketing mix would not be a very good idea in such a case.
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Lenovo Place & Distribution Strategy:
Following is the distribution strategy in the Lenovo marketing mix:
Lenovo sells its products in over 160 countries across the globe and has around 60,000 employees worldwide. It has exclusive showrooms in various locations from where products can be bought directly. Lenovo products are also usually available at multi-brand showrooms which facilitates the comparison of product features, price etc between two or more brands. It also operates through channel sales where distributors associated with the company sell to channel dealers and individual retailers. Apart from these direct distributors, the products are also available with retailers such as Costco, Walmart, Bestbuy etc. The products also can be bought online through the official Lenovo website. They are also available on other E-commerce websites like Flipkart, Amazon, Ebay, Croma etc.
Lenovo has been successful in establishing a very strong distribution network for its products as there are so many channels available from where users worldwide can purchase the products of the brand.
Lenovo Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lenovo marketing strategy is as follows:
Inspite of having strong competitors like Dell, HP and Microsoft, Lenovo has hit the right target audience and promoted its brand successfully. It has positioned its products as machines that ‘Do the work’ for the users and as useful tools that can get important work done and are not just accessories to show-off. Lenovo uses a combination of various channels including print media, television advertisements, and social media promotions on Twitter, Facebook and YouTube to create a strong awareness of its brand globally. It has initiated a campaign called ‘For those who do’ in 2011, which reflects the ideology of the company which was built by people who like to take quick action to achieve their goals. Under this campaign, the users of Lenovo are addressed as creative people who use state of art technologies and tools to bring their ideas to life. It targets the younger generation who have better knowledge about the use of such technology and it aims to partner with such users who can build better tomorrow. In 2013, Lenovo also signed a contract with Ashton Kutcher who is a big name in Hollywood, making him the product engineer of the Yoga Tablet. Signing up contracts with such celebrities who have a huge fan following, promote the brand to a great extent. Hence this completes the Lenovo marketing mix.
About Lenovo:
Lenovo is a Chinese multinational technology company and has its headquarters in Beijing, China. It was founded in the year 1984 by Liu Chuanzhi with a group of ten other engineers. Lenovo sells its products in more than 160 countries around the world.
It offers a wide variety of products ranging from laptops, PCs, tablets, smartphones, workstations and accessories for the entertainment of the consumers. Its aim is to provide the market with a mixed range of products that can satisfy different types of needs.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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