Four P’s in Lenovo’s marketing mix
Lenovo has achieved several major successes in a short period of time. Starting from the acquisition of IBM’s PC division, it quickly registered many critical successes, including a sharp growth in its market share. The brand was originally named Beijing Legend Computers. By 2003, it had become the leading PC vendor in the world having snatched market share away from major players like HP, Dell and Apple. Lenovo also makes several electronics products apart from computers and IT solutions.
It also makes tablets, smartphones, and smart TVs. In this way, it has grabbed a very large market share since it was officially incorporated as Lenovo in 1988. The rapid growth of the brand was mainly based on successful technological innovation. It has expanded its product line to include storage solutions and apps as well. The leading PC vendor is targeting to become a top technology company. However, the technological world is full of several major challenges. Currently, Lenovo is the biggest player in the PC industry. Even Google has jumped into the smartphone business and the PC market. So, while there are major challenges ahead, Lenovo has a smart strategy to help it tackle competition and to achieve further growth in the future.
Here is an analysis of the four P’s in Lenovo’s marketing mix:
Product:
Lenovo makes a large range of products that include laptops and PCs as well as smartphones, accessories, workstations, and several other kinds of hardware and software. While it mainly makes PCs, laptops, and products or services mainly related to computing, the brand is also known for entertainment products. It also makes gaming products and smartphones and accessories meant to serve customers’ entertainment needs. Its products are known for good design and quality. Apart from it, the technology brand also provides cloud services to its customers. It makes large investments in research and development. The popularity of Lenovo is mainly because of the performance of its products. Below is a list of the products and services by Lenovo.
- Lenovo Gaming Products
- Laptops & Ultrabooks
- Tablets
- Desktops
- Smartphones & Watches
- Workstations
- Systems
- Accessories & Software
- Cloud storage
In its existence of around twenty years, the company has gained a large market share and acquired fame globally. It is continuing fast on its growth spree and aims to become an IT giant. The Asian markets are its main stronghold and despite the declining PC market, its performance has been good because of its products’ style, design, and performance.
Place:
Lenovo products can be bought online from Lenovo stores and several other distribution channels too. These products are also available through authorized national resellers. Apart from it, they are available with retailers like Costco, Walmart, Best Buy etc. Amazon also sells Lenovo products. Customers can purchase Lenovo products from several channels online including Lenovo’s own website. These products are available at Amazon as well as Costco, Walmart and other retailers’ websites too. There are so many websites from which Lenovo products can be bought. Many authorized national reseller’s also sell these products from their websites. Thus, Lenovo has established an extensive distribution network globally by including major retailers and e-retailers.
Price:
Lenovo has priced its products competitively, which has helped it retain and grow its market share. While the declining PC sales challenged other major players like Dell and Apple, Lenovo cleverly managed to grow its business. The reason is its smart pricing strategy. In most product categories, it has priced its products competitively. Even in Laptops and PCs it has released products belonging to all price ranges. In this way, it caters to diverse customer segments. However, it has introduced only a limited number of models in the smartphone segment and priced them competitively. The competitive pricing model has helped it achieve higher sales and become the PC maker of choice globally.
Promotion:
Lenovo uses a combination of traditional and modern channels for the promotion of its brand and products. It has achieved strong brand awareness globally and is continuously investing in marketing and advertising. In the Asian and US market, it is particularly aggressive at marketing its brand. Its advertising and promotional expenses for 2016 equaled $ 726.173 million, which was more than 50 million higher than the previous year. It advertises on television and in print channels. Apart from that, it also advertises online heavily. It has also used social media channels like Youtube, Facebook and Twitter to grow its reach and to market its brand better.
Source: Lenovo Annual report 2016