Lenovo’s Promotional Information Essay

To create a brand is a difficult and expensive task but to build a brand with worldwide influence is even more difficult and is often associated with huge risks. Research shows that only 25% of new products/brands generate more than $7.5 million in sales in their first few years and even fewer are able to generate enough revenue to keep them on market for long. Lenovo continues to build brand awareness through aggressive marketing and new product promotions. Lenovo uses this promotional mix to strategically penetrate new markets worldwide as well as to sustain its position as a global leader and to continue growth over the long term. Investment in brand awareness through Lenovo’s recent â€Å"For Those Who Do† promotional campaign has proven fruitful, helping the company establish a foothold in the U.S. market among the top five PC vendors. Lenovo is investing aggressively in new products such as Ultrabooks and all-in-one PCs, allowing it to rapidly adapt to changes in the marketplace and to consistently meet the ever-changing demands of its customer base. Promotion and IMC Promotion is an important and integral part of marketing process. To be successful, a producer must not only offer a good product at a reasonable price but also inform potential customers about the product and where they can buy it. The overall range of tactics available to a producer is known as the ‘promotional mix’ and comprises of advertising, sales promotion, publicity, sponsorship, direct marketing, internet marketing and personal selling. In addition to these key promotional tools, its marketing team also relies on other techniques, such as exhibitions and product placement in movies, songs or video games, which have gained in popularity in recent years. The promotional mix used by Lenovo is aligned with the decisions made with regard to product, pricing and distribution and different promotional methods that handle different parts of the job. Determining to blend these together is a strategy decision that should be kept consistent to communicate its beneï ¬ ts to a target market. Lenovo’s uses a variety of techniques to effectively communicate its products to its target market. Their promotions come in the form of coupons, instant savings, and online rebates. Lenovo is informing, persuading and reminding customers of their products and educating them in deciding on their available choices. Lenovo continues to build consumer interest which helps build favorable impressions of the company and its products. Theme and Positioning Statement The positioning theme of Lenovo is â€Å"We are for those who do.† Lenovo’s mission is to bring affordable innovative products for its customers. Lenovo’s vision clearly states â€Å"We are now one company with one goal: To build the best, most innovative products in the world. To use world-class economies to put new and better technology in the hands of more people, by innovating on cost the same way we innovate on technology. To focus our energy and our commitment on the success and trust of our customers.† Though a lot has changed in the recent years, however, Lenovo has always remained true to its mission statement. Promotion Blend Lenovo is increasing its brand awareness by campaigning, including social media, design, branded content, retail experience, event and strategic engagement and partnerships. The company sponsored the annual HopSotch independent music fest, and was a tech partner with â€Å"Transformers 3† and even showed up at Fashion Week in New York with designer partnerships and the Lenovo Lounge. In the U.S., the campaign kicked off with a 60-second TV spot that laid out their â€Å"do† theme, while smaller, subsequent campaigns focused on specifics such as its rapid boot technology. In one advertisement, Lenovo throws a PC out of an airplane and it must â€Å"save itself† by booting up quickly and deploying a parachute. Salespeople In today’s fast paced world, where the electronic and print media are having huge influence on everybody’s life, a product or service cannot survive without proper promotion. Personal selling is an extremely important part of this promotional mix. Sales are divided into three main tasks: order-getting, order-taking and supporting. Depending upon the situation a salesman can performs all these duties. A good salesperson should be knowledgeable about the products and its competitive environment. In many situations salesman can also answer questions about what promotion should be directed toward the final consumer. Lenovo’s salespeople handle most of the important communication with wholesalers and retailers. Additionally, Lenovo uses sale promotions not only to focus on best profit potential but also to give itself a competitive advantage in the market. A good customer service not only builds brand loyalty but also acts as a promotion because often satisfied customers share their experience with their friends and family. Therefore, building a long term relationship and trust with its customer base is very important part of product selling. Sales Promotions for Channel Members/Customers/Employees Promotions are important part for any marketing campaign, as it directly influences customers. In order to be effective a promotion should be able to persuade, inform and remind its customer base of the benefits of its marketed product. Lenovo uses promotions to motivate employees to provide better customer service or achieve higher sales. Lenovo has a special birthday rewards program and each employee is emailed on the 1st day of the month prior to their birthday thanking them for their contribution to the success of the business and asking them to log onto Lenovo’s branded website using their unique user name and password to order their gift online. Recently, Lenovo also shared a $3 million bonus that they received of increasing success with its junior-level employees. Lenovo awarded CEVA Logistics, one of the world’s leading supply chain companies its Innovation and Operations Excellence award for the second year in a row in North America. This award recognized CEVA’s efforts around freight consolidating and optimizing transportation resulting in substantial cost savings. Lenovo also has year around online promotions available for its customers. Push and Pull Strategy Lenovo distributes with push strategy that involves selling into channel intermediaries like large retailers, wholesalers and it is also reliant on personal selling and trade promotions. Its promotional efforts like personal selling, advertising and sales promotion helps sell the whole marketing mix to its channel members. Lenovo also distributes using a pull strategy which relies on customer demands that pulls the product through the channel. Lenovo’s uses both push and pull strategy in combination to promote its products to large business customers as well as to individual final consumers. Lenovo’s highly aggressive promotion to final consumers using coupons or samples, builds consumer interest and help them achieve higher sales of their products. Its informative and interactive website includes customer reviews and video demonstrations that help customers build favorable impressions of the company and its products. Recent Positive Publicity Lenovo continues to excel in the PC market and its products has achieved highest recognition among both its peers and customers. Recently Lenovo received 16 awards and honors highlighting its brand innovation, design and versatility in the PC industry at Top Industry Awards at 2012 International Consumer Electronics Show. Additionally, Lenovo relies extensively on fundraising to enter into new markets and market new products. Eedoo Technology, the video gaming unit that is associated with Lenovo Group has raised tens of millions of dollars. Their gaming product, Ebox comes with 30 games built in and a set-top camera that can detect a player’s movements, according to the article. With this joint venture with a Chinese company, Lenovo not only hope to tap into Eedoo existing network within China but also hope that by including the games in the system they can cut down on the rampant piracy that is prevalent in the video game business in China. Interactive Media In order to be successful in towards highly competitive environment latest marketing trends and methods of communications are key to successful promotion strategies. Recently, Lenovo implemented a YouTube strategy, they created a competition called ‘Seize The Night,’ asking 15 finalists to create an alternative ending to the following video with the winner determined by most views. One of the contestants, Joshua, organized and filmed a massive cycle ride in London using a Lenovo laptop. Featuring hundreds of cyclists, the video has quickly taken off, going viral and spreading the Lenovo brand for free. This campaign has been very successful to Lenovo as it gained hundreds and thousands of YouTube views and followers without doing any marketing on its own. In addition, it is comparatively cheap and gains a much higher return on investment. Their YouTube campaign was extremely successful and has now become a must read case for all business people. Here is the link to the videos: http://www.youtube.com/watch?annotation_id=annotation_119513&feature=iv&src_vid=xGtBPlPqIFQ&v=OoXr6sQlaRk and the responding video by the contestant Joshua is following: http://www.youtube.com/watch?v=xGtBPlPqIFQ&feature=player_embedded#! References Lenovo Reveals ThinkPad X1 Carbon, Shakes Up Ultrabook Market Lenovo Reveals ThinkPad X1 Carbon, Shakes Up Ultrabook Market http://www.youtube.com/watch?v=KdZNUxPiwMs http://wraltechwire.com/business/tech_wire/news/story/11335630/ http://www.cevalogistics.com/en-AU/aboutus/newsmedia/mediareleases/Pages/release_19_july_2012.aspx http://www.partnerinfo.lenovo.com/partners/br/pt/entitled/LENOVO%20COOKBOOK_V1.5_FINAL.pdf http://news.lenovo.com/article_display.cfm?article_id=1557 http://www.businesswire.com/news/home/20120113005747/en/Lenovo-Receives-Top-Industry-Awards-2012-International http://www.lenovo.com/social_responsibility/us/en/Lenovo_CSR_Fast_Facts.pdf