The document provides an analysis of Lenovo's small and medium business (SMB) market and makes recommendations to improve growth. Key points: - There is growing demand for tablets, desktops, and workstations in certain industries like healthcare, education, and finance. - Partners and sales reps provide feedback on technical issues, products, programs, and low brand awareness among SMB customers. - Recommendations include focusing on top 5 vertical markets, training partners, new customer programs, an advisory board, and improving brand awareness.

1. 1 ••© 2011 Lenovo Confidential. All rights reserved.
Amplifying SMB Growth
 Alan Andrade/Emmeline Chu| Channel Strategy & Ops

2. 2
 Gather data about the number /
revenue resulted from existing
/prior customer in the past 2
years.
 Market Research
 Survey / research regarding SMB
customers.
- Informal discussions (internal/external)
- Partners feedbacks
 Layout program that best
suits the needs of these
customers
Background Research Recommendation
We are here!!
Roadmap
Acquiring Data

3. 3
Current market trend
Product:
• Growing demand in tablet (Win7), both for business and personal use
- doctor’s office; healthcare; education (K12)
- Apple, Acer, Samsung
• Demand for desktop is growing, different from what the industry had expected.
• More transactional - hardware more seems as disposable items
Industrial buying behavior:
• Expecting more and faster growth in finance industry in coming years.
- not very cost-conscious
- demand the latest technology (4-5 years/cycle)
• Workstation
- more potential in Finance and Medical sectors
- more demand for web and graphic design
• Server
- Manufacturing, Finance and Wholesale

4. 4
Current market trend
Marketing/Brand awareness:
• Feedback from third party plays a more important part in building brand awareness.
- report from WSJ on 7/9
Channel preference:
• More customers shift to retailer/etailer, but mostly in small offices (employee number less than 15 or 20)
• Reasons for business shifting to DRC (see appendix P.1)
- Better pricing
- Web store
- Financing program
• End users with employee number less than 250 tend to buy from local
250 -1000 DRC

5. 5
T2 Sales reps and partners distribution
• Michael Maseda
• Julie Michels
• Irene Caldwell
• Jim Iemma
• Jasmine Pelloni
• Brian Lockwood
• Scott Swailes
• Mike Vena

6. 6
Feedback from T2 sales reps
Technical Issue Product Partners/ Programs Brand Awareness
 Bad availability
- Top Seller products
- Customized model
• Ordering/Quoting system
not user-friendly enough
• Distributers should be
better trained
• More tools for the partners
(ex: solution book)
• Different definition in SMB
causes gaps
• Tablet with Win7 installed
• More entry-level products
(West Coast)
• Optimistic about B560.
• More stylish design
• Some partners are taking
advantage of SMB program
• Partners should better
leverage our tool
• Should make the programs
easier for partners
• Partners know the product
line very well and provide
great services
• Will work more efficiently if
we could educate them on
what products could be
sold to whom
• More marketing support.
• More customer events in
SMB market.
- Javitts Center
- SMB conferences
• Lenovo retail store

7. 7
Partner names and revenue (2Q12- 1Q13)
Name Partner Name RAD
1Q13
Revenue
2Q12
Revenue
3Q12
Revenue
4Q12
Revenue
Total
Revenue
Kevlar Solutions Frank Basanta-Director of Technology A3 21,321 13,566 14,395 13,978 $63,260
Green Virtual Technology, Inc Pete Bellezza-President R1 72,592 0 77,031 73,738 $223,361
Central Computer Systems, Inc. Craig Yeung A3 179,284 263,596 154,955 127,100 $724,934
PC Specialists, Inc./TIG Bill McClelland-Lenovo Product Champion D3 1,435,880 951,934 999,936 1,206,186 $4,593,935
En Pointe Technologies Sales, Inc. Anelle Gutierrez-Business Development Manager D3 1,864,426 3,032,964 2,569,550 1,720,744 $9,187,684

8. 8
Feedback from T2 partners
Technical Product Programs/ Sales Reps Brand Awareness
 Bad availability (100%)
- Top seller products
- customized model
• Takes too long to put new
products on shelf (20%)
• Unable to access CTO
quoting system (20%)
• Call center specifically for
partners (20%)
• More entry-level product
(60%)
• Tablet within $500 price
range (20%)
• Good product line, easy to
manage (40%)
• Good financial incentive
(40%)
• Accessibility to consumer
lines, ex: IdeaPad (20%)
• New customer bonus
program  Dell (20%)
• Server  Loaner program
(40%)
• Not as responsive compared
to HP (20%)
• Demo product to the rep
(20%)
• Not enough brand
awareness (100%)
• More marketing support
(100%)
-1/3 in NY
-Less well-known
compared to Acer or
Asus on West coast

9. 9
Comparison to competitors based on partners feedback
Product Brand Awareness Customer service
Lenovo
- Great product quality (100%)
- Heritage from ThinkPad (100%)
- Great high-end product (100%)
- Less known for server and
workstation (20%)
- Much better compared to before
(100%)
- More recognized when mention
Think line (100%)
- Helpful most of the time, but
have bad time-responding issue
(60%)
HP
- More competitive in the
lower-end product (40%)
- Strong in high-end as well (40%)
- Latest technology (20%)
- Still the most known brand in this
market (100%)
Dell
- Most competitive in price (40%)
- Lower quality (60%)
- Easiest to order/ ship fast
(40%)
- Spend most on marketing support
in the three brands (40%)
- Got campaign and events all year
round (60%)
- VERY weak in services (40%)
- Lots of unhappy customers
turned to other brands for this

10. 10
Recommendation 1- Focus on top 5 verticals
- Develop targeting program based on purchasing behavior
- Identify top 50 VIP accounts of each vertical and increase
customer engagement
 post-purchase service support
 direct marketing based on the need
- LOB conversion
Next step:
- Resource dedicated in SMB data
- Allocate executives to VIP customers/end users and
approach them periodically
T2 market share for FY11-12 by vertical
Top 5 verticals take more than 50% of SMB market!!
DISTRIBUTION-
PROFESSIONAL SERVICES,
15.53%
DISTRIBUTION-
WHOLESALE
DISTRIBUTION &
SERVICES, 12.29%
FINANCE BANKS, 9.99%
INDUSTRIAL-
AUTOMOTIVE, 9.66%INDUSTRIAL-OTHER
PRODUCTION
INDUSTRIES, 9.53%

11. 11
Recommendation 2 - Training
2. Training for partners
- Educating partners on current industry trends  make them look smarter!!
- Industry specific value propositions  marketing
- Focus on selling tips, not product line  teach them to speak in customers’ language
* categorize partners based what and whom they sell (vertical segmentation)
Next step:
- Gather information and leverage insights from our sales reps
- Crib sheet sent out to partners on selling tips every week/ quarter

12. 12
Recommendation 3 & 4 - Server & Workstation
3. New customers satisfaction guarantee program  First-time buyer only!
- Return the product within 90 (?) days if our end users aren’t happy with the quality
 show our confidence in product quality
 lower the concern end users may have in the product quality
 aggressive marketing!!
- Try out on VIP accounts first or VIP accounts only
4. Loaner Program (Try and Buy)
- Start from the partner. Discount for demo product for selected partners while providing related training
- Start with top 5 verticals
- Free if the partner sells X quantity in X month
Next Step:
- Surveys for partners/sales reps on these two programs
- Evaluate financial impact for both programs

13. 13
Recommendation 5 - SMB advisory board
5. SMB market advisory board
- Meet with the end users periodically to discuss about buying experience and the market trend
- Keep track of industry trend
- Combine consulting project to learn about SMB market
Next Step:
- Start from accounts shifted to DRC in the past 2 years
- Organize discussion for top verticals

14. 14
Some thoughts about improving brand awareness….
- Take part in at least the biggest three SMB conference every year, ex: Javitts Center (?)
- Focus on product rather than brand image in a campaign
 visuals are easy to be ignored
 focus on only ONE product in every campaign or event

15. 15
Special thanks to
Channel strategy and Sales ops:
• Alan Andrade
• Chris Frey
• Jeff Voorhees
• John Bischof
• Julia Green
• Lucille King
• Tawanna Gillis
• Yang Guo
Marketing Group:
• Annabelle Thuan
• David Rabin
• Jason Yelton
• Jane Hong
Tier 2 Sales rep:
• Brian Lockwood
• Irene Caldwell
• Jasmine Pelloni
• Jim Iemma
• Julie Michels
• Michael Maseda
• Mike Vena
• Scott Swailes
DRC Sales reps:
• David Brow
• Joyce Onish
• Julia Borden
• Kevin Harlow
Tier 2 partners:
• Craig Yeung-Central Computer Systems,Inc.
• Frank Basanta-Kevlar Solutions
• Pete Bellezza-Green Virtual Technology, Inc
• Anelle Gutierrez-En Pointe Technologies Sales,Inc.
• Bill McClelland-PC Specialists, Inc./TIG

17. 17
Top 15 accounts shifting to DRC from FY11-12
YOY
FY 2011 FY 2012 FY 2011 FY 2012 Growth
Gu Business Name RAD Total Total Total Total Rate
EDGEWATER TECHNOLOGY, INC. R3 37,124 0 106,540 120,452 511.44%
NEXT FIFTEEN COMMUNICATIONS GROUP PLC A3 41,828 0 91,254 98,556 353.79%
TEXAS CAPITAL BANCSHARES, INC. R3 72,178 0 28,673 203,811 222.10%
REDI-DIRECT MARKETING, INC. R3 64,316 0 3,036 173,696 174.79%
STILES CORPORATION R1 23,823 0 16,863 48,218 173.19%
AGRAQUEST, INC. R2 42,960 0 32,681 66,469 130.80%
VITECH SYSTEMS GROUP, INC. R3 18,468 0 0 30,028 62.59%
ALERUS FINANCIAL CORPORATION R1 129,348 0 63,308 41,241 -19.17%
OHIO VALLEY BANC CORP. R2 94,245 0 0 69,287 -26.48%
MANNING & NAPIER ADVISORS, INC. D1 45,414 0 12,886 17,985 -32.02%
K. HOVNANIAN COMPANIES OF CALIFORNIA, INC. R1 41,912 0 3,521 24,742 -32.57%
MVT SERVICES, LLC R2 197,780 0 22,394 82,883 -46.77%
C & C PARTNERS LTD R1 53,956 0 0 25,586 -52.58%
THE HELEN ROSS MCNABB CENTER INC R1 206,852 0 705 13,425 -93.17%
UNITED METHODIST CONFERENCE OF UNITED METHODIST CHURCH R1 184,200 0 1,393 4,774 -96.65%
T2 DRC

18. 18
T2 market share FY2011-12
T2
Revenue Revenue Revenue Revenue Revenue Revenue Total
Total Share Total Share Share Growth Revenue
DISTRIBUTION-PROFESSIONAL SERVICES 4,151,717 17.93% 4,045,369 13.66% 15.53% -2.56% 8,197,086
DISTRIBUTION-WHOLESALE DISTRIBUTION & SERVICES 2,623,480 11.33% 3,862,634 13.04% 12.29% 47.23% 6,486,114
FINANCE BANKS 1,214,175 5.24% 4,056,652 13.69% 9.99% 234.11% 5,270,827
INDUSTRIAL-AUTOMOTIVE 2,027,524 8.76% 3,068,745 10.36% 9.66% 51.35% 5,096,269
INDUSTRIAL-OTHER PRODUCTION INDUSTRIES 2,469,174 10.66% 2,558,998 8.64% 9.53% 3.64% 5,028,172
INSURANCE 1,676,020 7.24% 2,406,984 8.13% 7.74% 43.61% 4,083,004
DISTRIBUTION-COMPUTER SERVICES 1,530,802 6.61% 2,434,705 8.22% 7.51% 59.05% 3,965,507
INDUSTRIAL-ELECTRONICS 1,461,008 6.31% 1,726,660 5.83% 6.04% 18.18% 3,187,668
FINANCE-FINANCE MARKETS 589,018 2.54% 839,123 2.83% 2.71% 42.46% 1,428,141
DISTRIBUTION - TRAVEL & TRANSPORTATION 871,470 3.76% 543,237 1.83% 2.68% -37.66% 1,414,707
COMMUNICATIONS-MEDIA & ENTERTAINMENT 743,983 3.21% 608,010 2.05% 2.56% -18.28% 1,351,993
INDUSTRIAL-AEROSPACE & DEFENSE 581,542 2.51% 688,426 2.32% 2.41% 18.38% 1,269,968
PUBLIC SECTOR-HEALTH 581,505 2.51% 475,175 1.60% 2.00% -18.29% 1,056,680
COMMUNICATIONS- TELECOMMUNICATIONS 319,951 1.38% 708,721 2.39% 1.95% 121.51% 1,028,672
COMMUNICATIONS-UTILITY AND ENERGY SERVICES 696,295 3.01% 226,480 0.76% 1.75% -67.47% 922,775
DISTRIBUTION-RETAIL 480,171 2.07% 362,679 1.22% 1.60% -24.47% 842,850
DISTRIBUTION-CONSUMER PACKAGED GOODS 397,670 1.72% 431,916 1.46% 1.57% 8.61% 829,586
INDUSTRIAL-CHEMICALS & PETROLEUM 419,182 1.81% 292,417 0.99% 1.35% -30.24% 711,599
PUBLIC SECTOR-EDUCATION 270,392 1.17% 175,251 0.59% 0.84% -35.19% 445,643
LIFE SCIENCES 53,321 0.23% 111,005 0.37% 0.31% 108.18% 164,326
Total $23,158,400 100.00% $29,623,187 100.00% 100.00% 27.92% 52,781,587
FY 2011 FY 2012 YOY

19. 19
T2 workstation market share by industry
T2
Workstation Revenue Share Revenue Share Share YOY
ELECTRICAL AND ELECTRONICS 47,526 18.17% 59,270 12.48% 14.50% 24.71%
LEGAL SERVICES 0 0.00% 82,776 17.42% 11.24% New
FABRICATION & ASSEMBLY 55,469 21.21% 19,648 4.14% 10.20% -64.58%
CONSTRUCTION/ARCHITECTURE/ENGINEERING 20,002 7.65% 53,695 11.30% 10.00% 168.45%
METALS 19,351 7.40% 27,663 5.82% 6.38% 42.95%
SYSTEMINTEGRATION 11,914 4.56% 29,310 6.17% 5.60% 146.01%
WHOLESALE-DURABLES 7,568 2.89% 28,540 6.01% 4.90% 277.11%
WIRELINE 19,073 7.29% 12,402 2.61% 4.27% -34.98%
HEALTHCARE OTHER 703 0.27% 25,238 5.31% 3.52% 3490.04%
DISTRIBUTORS, IMPORTERS, RETAILERS 0 0.00% 25,199 5.30% 3.42% New
PHYSICIANS/CLINICS 13,610 5.20% 11,458 2.41% 3.40% -15.81%
INSURANCE INTERMEDIARIES 0 0.00% 22,242 4.68% 3.02% New
WHOLESALE-SERVICES 10,179 3.89% 2,374 0.50% 1.70% -76.68%
SPORTS 4,467 1.71% 7,776 1.64% 1.66% 74.08%
CP - HOUSEHOLD/HEALTH & BEAUTY 0 0.00% 11,873 2.50% 1.61% New
INTERGRATED HEALTHCARE SYSTEMS / HOSPITALS 5,989 2.29% 5,473 1.15% 1.56% -8.62%
AUTOMOTIVE OEM'S (MANUF. OF CARS, LIGHT TRUCKS. MOTORBIKES) 0 0.00% 10,615 2.23% 1.44% New
ENTERTAINMENT 1,351 0.52% 7,266 1.53% 1.17% 437.82%
HIGHER EDUCATION 1,935 0.74% 6,624 1.39% 1.16% 242.33%
PUBLISHING AND PRINTING 4,961 1.90% 2,203 0.46% 0.97% -55.59%
RETAIL-FOOD 0 0.00% 5,699 1.20% 0.77% New
OUTSOURCING 5,404 2.07% 0 0.00% 0.73% -100.00%
FINANCIAL MARKETS - OTHER 0 0.00% 5,166 1.09% 0.70% New
CP - FOOD MANUFACTURING 3,382 1.29% 1,258 0.26% 0.63% -62.80%
MANAGEMENT CONSULTING 4,064 1.55% 0 0.00% 0.55% -100.00%
OTHER PROCESS 994 0.38% 3,023 0.64% 0.55% 204.12%
RETAIL-DIRECT MARKETING 0 0.00% 3,496 0.74% 0.47% New
FY 2011 FY 2012 Total
Total 261,510 100.00% 475,093 100.00% 100.00% 81.67%

20. 20
T2 server market share by industry
T2
Server Revenue Share Revenue Share Share YOY
WIRELINE 8,632 8.66% 14,393 21.32% 13.77% 66.74%
WHOLESALE-DURABLES 17,846 17.90% 3,497 5.18% 12.76% -80.40%
FABRICATION & ASSEMBLY 7,313 7.33% 8,542 12.65% 9.48% 16.81%
CONSTRUCTION/ARCHITECTURE/ENGINEERING 7,990 8.01% 4,134 6.12% 7.25% -48.26%
MANAGEMENT CONSULTING 4,719 4.73% 6,069 8.99% 6.45% 28.61%
HEALTHCARE OTHER 5,892 5.91% 4,735 7.01% 6.35% -19.64%
WHOLESALE-SERVICES 7,703 7.72% 1,451 2.15% 5.47% -81.16%
FOREST PRODUCTS 5,245 5.26% 2,519 3.73% 4.64% -51.97%
OTHER PROCESS 7,655 7.68% 0 0.00% 4.58% -100.00%
ELECTRICAL AND ELECTRONICS 0 0.00% 7,476 11.07% 4.47% #DIV/0!
RETAIL-SPECIALTY 4,254 4.27% 2,533 3.75% 4.06% -40.46%
BANKING - OTHER 1,979 1.98% 2,809 4.16% 2.86% 41.94%
INTERGRATED HEALTHCARE SYSTEMS / HOSPITALS 3,174 3.18% 1,563 2.31% 2.83% -50.76%
ASSOCIATIONS 4,120 4.13% 611 0.90% 2.83% -85.17%
PHYSICIANS/CLINICS 0 0.00% 4,274 6.33% 2.56% #DIV/0!
METALS 2,878 2.89% 0 0.00% 1.72% -100.00%
LODGING 1,349 1.35% 1,333 1.97% 1.60% -1.19%
RETAIL-HARD GOODS 2,670 2.68% 0 0.00% 1.60% -100.00%
RETAIL-FOOD 2,639 2.65% 0 0.00% 1.58% -100.00%
AUTOMOTIVE SUPPLIERS 0 0.00% 1,583 2.34% 0.95% #DIV/0!
FREIGHT SERVICES 1,529 1.53% 0 0.00% 0.91% -100.00%
PUBLISHING AND PRINTING 584 0.59% 0 0.00% 0.35% -100.00%
PETROLEUM 584 0.59% 0 0.00% 0.35% -100.00%
SPORTS 575 0.58% 0 0.00% 0.34% -100.00%
DISTRIBUTORS, IMPORTERS, RETAILERS 386 0.39% 0 0.00% 0.23% -100.00%
OUTSOURCING 0 0.00% 0 0.00% 0.00% -
SYSTEMINTEGRATION 0 0.00% 0 0.00% 0.00% -
COMPUTER MAINTENANCE & SERVICES 0 0.00% 0 0.00% 0.00% -
TotalFY 2011 FY 2012
Total 99,716 100.00% 67,522 100.00% 100.00% -32.29%