This PPt was part of the live case study challenge at NMIMS,LMS where we had to come up with reasons and suggestions to fine tune Lenovo's strategy for the flagship product Yoga
1. Delhi Belly, SIBM Pune
Strength
• One of a kind, revolutionary product
• Attracts the young working
professional
• Incorporates style, utility and high-
end technology
• Strong brand value of Lenovo
• Already established service network
Weakness
• Very niche segment targeted; high
price point
• Durability is crucial for business
professionals; yoga appears to be
delicate
• Less product awareness
• Biases in mind of prospect consumers
towards Apple
Opportunity
• Tap into the Students’, Designers
market
• Establish itself as a strong service
brand as well
• Tie up with corporate and Media
houses
• Capitalize on the brand and exiting
technology—launch similar products
at lesser price point
Threat
• New and similar products from
HP, Dell
• Own product line which seems similar
in functions and uses: Twist and Helix
models
• Cheaper versions of Apple products
• Changing consumer preferences
• Strong distribution of other players
like Dell, HP Delhi Belly, SIBM Pune
2. Delhi Belly, SIBM Pune
Apple
• Premium aspirational brand
• High quality product
• Superior service promise
Dell
• USP : Efficient Onsite
Service network
• Known for personalization
HP
• Known for sturdier machines
• Diverse portfolio in hybrid
category
Sony Vaio
• Strong Brand
• Known for premium product
features
COMPETITION
ANALYSIS
Delhi Belly, SIBM Pune
3. Delhi Belly, SIBM Pune
PRIMARY RESEARCH
114 people (in the age group 18-28) were surveyed. Here are the findings:
• Lenovo though a strong brand, but somehow doesn’t fall in preferred choice for
buying
Only 14% people surveyed had Lenovo in their top two choices for laptops
• Lack of proper touch points/ BTL can improve this brand awareness/recall
Only 19% people knew about Yoga (laptop which can go 360 degree from
Lenovo)
• The bulkiness as compared to Tablets renders Yoga’s 4th Mode not so-effective
Mere 33% people admit Yoga’s 4 modes to be really useful
• The sentiment can be converted to sales by aggressive distribution and
aggressive ATL
55% people believe that Yoga is a superb product in terms of technology
• Other bundle up offers need to be given; 3 years onsite warranty, etc.
• Slightly lower configuration models can be introduced
74% people admit the price to be too high
Delhi Belly, SIBM Pune
4. Delhi Belly, SIBM Pune
PRIMARY RESEARCH (CONTD.)
Other than the consumer survey, in-store research (Croma Juhu) was carried out:
• Lenovo Yoga not at
eye level
• Last counter
position given to
Lenovo Yoga
• Competitors like
Apple, Dell and
Sony had own,
complete kiosks
Product
Placement
• Absolutely no
banners/merchandis
e for Lenovo
available
• No BTL
promotion/demos
given; most
customer unaware
about Yoga
• No in-store
attraction or
differentiating factors
for Lenovo
Promotion
• No trained sales
force to
demonstrate
revolutionary
features
• Lack of motivation
of existing sales
force because of
weak demand
Lack of sales
push for Lenovo
Delhi Belly, SIBM Pune
5. Delhi Belly, SIBM Pune
GAP ANALYSIS
Expected Service
Perceived After Sales
Service
Value for Money
Actual Product
Limited customizable
Promotion
Expectations
No ATL/ Lack of In-
store promotion
GAP 1
GAP 3
GAP 2
GAP 4
• The current price point is perceived too high for the
product
• The 360 degree flip is innovative but doesn’t add value
to customer’s need: less practical
• The tablet mode is not useful; the laptop is too heavy
to be used as a tablet
• Durability is an issue; hinges perceived delicate
• No additional offerings provided
• Limited memory capabilities; non full HD
• Average battery life in the category
• Not much options of customizing configuration
•Core product: on technology is below average with
competitors (e.g. Sony)
• No BTL activities carried out in the stores to give a
demo of the revolutionary product
• No in-store promotion; cut-outs, etc
• ATL promotion need to be more aggressive
•Only 1 year warranty offered as compared to Dell’s 3
year extended (on similar price models)
• Service centre offering are weak
• Without registering product(but with bill) service
centres do not entertain
GAP 5
• Online reviews need to be managed
• More social media presence requires
GAP
2
GAP
1
GAP
3
GAP
4
Online Reviews
GAP
5
Delhi Belly, SIBM Pune
6. Delhi Belly, SIBM Pune
RECOMMENDATIONS
• Allow customization: different users have different needs (speed Vs.
Screen size)
• Keypad faces downward which makes it prone to damage so have a skin
on keyboard; backlit keyboard, full HD screen etc.
• The outer body has matt finish which is prone to scratches; change it to
scratch-less glossy, attractive body
• Improve overall service levels to back the core and augmented product
• Ensure clear message of durability to customers; promote this using
ATL/BTL
• Introduce variants to avoid stagnation stage
Product
• Different versions of the product should be available in a host of prices
(with or without windows, Corei3, i5, i7)
• Upgrade configuration specifications in the current priced model
• One day sale (as in the US) should be used to create excitement in
customers
• Offer bundle up pricing: photon+ or warranty services, etc.
Price
Delhi Belly, SIBM Pune
7. Delhi Belly, SIBM Pune
RECOMMENDATIONS (CONTD.)
• Premium Placements
• Airports
• Corporate
• B2B tie-ups – media houses, Insurance Sales reps, Design
houses, Advertising Agencies, DJs etc
• More Shop-in-Shops in modern trade
Place
• Sound Online Reputation Management Strategy
• Extensive Presence on Social to compete with the likes of Dell
• Specifically use LinkedIn to target young professionals
• Persistent TV ads for higher recall value
• Linkages with Yoga factor – In store activations, Online linkage
• Stress on Lenovo services packages
Promotion
Delhi Belly, SIBM Pune
8. Delhi Belly, SIBM Pune
POSITIONING PLAN
Product
Benefits
•VFM : Single Product –
Multiple Uses
•Ultimate Performance
Machine with tablet as
well
Product
Attribute
•Best in class
processing
•The screen to see from
all angles
Against
Competition
• Improve on perceived
skepticalness on
design innovation
Product User
•Young Pros looking for
panache
•The Smart manager
•The new generation
student
The MORE
Machine
More VFM
More Performance
More Style
More Speed
Delhi Belly, SIBM Pune