LENOVO
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
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