LENOVO

Topics: Brand, Brand management, Branding Pages: 15 (1311 words) Published: October 7, 2014
Case Analysis by
IBMMC Team

Key issue
After acquiring the well-established IBM PCD
brands, what branding strategy would best
g
gy
enable Lenovo to efficiently maximize its total
brand portfolio equity, which had been driven
p
q y
mainly by Asia market perceptions of
innovation and quality, and minimize p
q
y
potential
brand dilution from relatively low Lenovo
brand understanding throughout the rest of
g
g
the world?

Key Brands in the Portfolio

Alternative Branding Strategies
1.
2.
3.
4.
4
5.

Lenovo as the ‘master brand’
Focus only on sub-brands
sub brands
Lenovo Think-- synergy
Product Tier Branding
P d t Ti B
di
Separate family brands (current)
• Lenovo family and ThinkPad family

6. New brand name Inovo

Evaluation of Alternatives
Lenovo Master Brand

Lenovo PCs, Lenovo Notebooks
PCs
Advantages

Disadvantages

• Achieves marketing efficiencies
• Easy to keep track of one brand’s
brand equity/value
• Lenovo’s value and competitive
position (stats) of the Lenovo line
would be inflated

• Does not exploit the newly
purchased ‘Think’ reputation
• Lenovo is not widely known
outside of China, thus requiring
large investments to create
awareness and high global
reputation
• Difficult to appeal to specific
segments
• May limit Lenovo’s mobility across
industry

Main concern: Can market perceptions of Lenovo be efficiently repositioned and improved?

Evaluation of Alternatives
Focus only on Sub-brands
ThinkPad, ThinkVision etc
ThinkPad ThinkVision, etc.

Advantages

Disadvantages

• Sub-brands of the ‘Think’ family
are well-established worldwide
• ‘Think’ is still strongly associated
Think
with IBM’s exceptional global
reputation

• Neglects the well-established
brands of Lenovo (China) and
IBM (worldwide)
• Relatively higher marketing
costs because of having to
markeetnnn re

Main concern: Is the ‘Think’ brand able to stand on its own?

Evaluation of Alternatives
‘Lenovo Think—’ Synergy
Advantages
g
• Lenovo brand gains from the
‘Think’ brand strengths
• Broadens the market’s
market s
perceived scope of the firm
• It may enhance the Lenovo
brand well in the China and
other Asia markets

Disadvantages
g
• Potential brand confusion
– ThinkPad is strongly associated
with IBM
• Would require combined and
balanced investments to build both
brands
• Lenovo could dilute the ‘Think’
brand equity

Main concern: Which direction would brand equity be transferred?

Evaluation of Alternatives
Product Tier Branding

Think–
Think (premium) & Lenovo (standard)
Advantages
• Minimizes potential ‘spill-over
effects
• Potential to capture a broader
market of prospects
• Helps to distinguish Lenovo’s
Lenovo s
product categories
• Achieves some marketing
economies

Disadvantages
• Potential for intra firm competition
and ‘trading down’
• Requires separate marketing
planning, activities, and budgets

Main concern: Can segments of buyers be effectively targeted to avoid trading down?

Evaluation of Alternatives
Separate Family Brands
Lenovo Family, IBM Family
Family

Advantages
• New product launches are
easier and quicker
• introductions Lenovo brand
gains from the ‘Think’ brand
strengths

Disadvantages
• Potential brand confusion
– ThinkPad is strongly associated
with IBM

• Would require combined and
balanced investments to build
both brands
• Lenovo could dilute the
‘Think’brank

Main concern: Can differentiation be clearly created and
targeted to distinct buyer segments?

Based on our analysis which
analysis,
alternative would you choose?
1.
2.
3.
3
4.
5.
5

Lenovo as the ‘master brand’
Focus only on sub-brands
Lenovo Think-- synergy
Think
Product Tier Branding
Separate f
S
t family b
il brands (
d (current)
t)
• Lenovo family and ThinkPad family

6. New brand name Inovo

Lenovo-Think
Lenovo Think Synergy
Strategic Intent
– To be a...
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