Role of mass media in b2 b and b2c marketing of electronic gadgets in lucknow city

RESEARCH PROJECT REPORT
On
“Role of mass media in B2B and B2C marketing
of electronic gadgets in Lucknow city”
Towards partial fulfillment of
Master of Business Administration (MBA)
School of Management, Babu Banarasi Das University, Lucknow
Guided by Submitted by
Dr. Surendra Kumar Ahmad Husain Khan
IVth Semester
Roll No- 1120672004
Session 2013-2014
School of Management
Babu Banarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

DECLARATION
I, Ahmad Husain Khan Student of MBA (Marketing) studying at Babu Banarasi Das
University, declare that the research report entitled “Role of mass media in B2B and B2C
marketing of electronic gadgets in Lucknow city” was carried by me in the partial fulfillment
of MBA.
This research report was undertaken as a part of academic curriculum according to the
GBTU rules and norms and it has not commercial interest and motive, it is my original work. It
is not submitted to any other organization for any other purpose.
Place:-Lucknow
AHMAD HUSSAIN KHAN
MBA (4rd SEM)

ACKNOWLEDGEMENT
It gives me immense pleasure to present this research report on “Role of mass media in
Business to Business and Business to Customer marketing of electronic gadgets(TABLET
P.C) in Lucknow city” .In partial fulfillment of the degree of Post-Graduation (Master of
business administration)
“Expression of feelings by words makes them less significant when it comes to making
statement of gratitude”
A work is never the work of an individual. It is more a combination of ideas, suggestions,
reviews, contributions and job involving many folks. So here I have made some sincere efforts to
thank some of the eminent persons involved in making this project and who are the real strength
behind this report simply because without their encouragement and support this report would
have been non-existent.
In consonance with the above, I extend my heartfelt thanks to Faculty, School of
Management, BBDU for providing us with a platform to experience the corporate world in its
true form. Such projects are a great way to instill in a student the confidence to face the corporate
world at the time of the final Placements. It gives me pleasure to express my most profound
regards and sense of great indebtedness and sincere gratitude to my faculty Guide Dr. Surendra
Kumar
I am indebted to my project supervisor Prof. Atul Kumar Singh who took keen interest in my
study and helped me a lot to conduct this study through his erudition and eminent guidance
whenever it was needed. His calm demeanor and willingness to teach, has not only been a great
help in successfully completing my project but also was a doorway to immeasurable learning and
great experience.
Thank you,
Ahmad Husain Khan
(MBA 4rd SEM)

Executive summary
Making new customer and establishing relationship with existing customer is the ultimate
goal of most businesses is to increase sales and income. Ideally, you want to attract new
customers to your products and encourage repeat purchases.
The primary objective of mass media is to make the people aware about the existing gadgets in
the market and inform them about all the features and consistently update them with all the
upcoming inventions through different medium like internet, magazine, newspaper, television
etc. the secondary objective is to create an impulse to try new gadgets and also make them share
their experience with their family and friend.
This study is made to know about the Tablet P.C users and how they are marketed in Lucknow
with the help of different media. Analysis and interpretation is done from the view point of
existing users of Tablet P.C and based on their response the results are arrived.
The study reveals that from Samsung Tablet P.C and Lenovo Tablet P.C who is performing best
and giving utility to their customer. People prefer which Tablet P.C and what is the reason for
preferring these gadgets.

Index
A Bonafied Certificate
B Declaration
C Acknowledgement
D Executive Summary
CHAPTERS
1. Introduction 1
# Industry Profile 6
# Company Profile 10
2 Objective of Research 60
3 Scope of Study 61
4 Research Methodology 62
5 Limitations and Problems 64
6 Data Interpretation and Analysis 65
7 Findings 79
8 Suggestions & Recommendations 88
9 Conclusion 89
Bibliography 90
Annexure 91

INTRODUCTION
MASS MEDIA
The mass media are diversified media technologies that are intended to reach a large
audience by mass communication. The technology through which this communication takes
place varies. Broadcast media such as radio, recorded music, film and television transmit their
information electronically. Print media use a physical object such as newspaper, a book ,
pamphlet or comics, to distribute their information. Outdoor media is a form of mass media that
comprises billboards, signs or placards placed inside and outside of commercial buildings, sports
stadiums, shops and buses. Other outdoor media include flying billboards (signs in tow of
airplanes), blimps, and skywriting. Public speaking and event organizing can also be considered
as forms of mass media. The digital media comprises both Internet and mobile mass
communication. Internet media provides many mass media services, such as email ,
websites, blogs, and internet based radio and television. Many other mass media outlets have a
presence on the web, by such things as having TV ads that link to a website, or distributing a QR
Code in print or outdoor media to direct a mobile user to a website. In this way, they can utilize
the easy accessibility that the Internet has, and the outreach that Internet affords, as information
can easily be broadcast to many different regions of the world simultaneously and cost-
efficiently.
The organizations that control these technologies, such as television stations or
publishing companies, are also known as the mass media
In the late 20th Century, mass media could be classified into eight mass media industries:
books, newspapers, magazines, recordings, radio, movies, television and the internet. With the
explosion of digital communication technology in the late 20th and early 21st centuries, the
question of what forms of media should be classified as "mass media" has become more
prominent. For example, it is controversial whether to include cell phones, video games and
computer games (such as MMORPGs) in the definition. In the 2000s, a classification called the
"seven mass media" became popular. In order of introduction, they are:

1. Print (books, pamphlets, newspapers, magazines, etc.)
2. Cinema
3. Radio
4. Television
5. Internet
6. Mobile phones
Each mass media has its own content types, its own creative artists and technicians, and
its own business models. For example, the Internet includes web sites, blogs, podcasts, and
various other technologies built on top of the general distribution network. The sixth and seventh
media, internet and mobile, are often called collectively as digital media; and the fourth and fifth,
radio and TV, as broadcast media. Some argue that video games have developed into a distinct
mass form of media.
While a telephone is a two way communication device, mass media refers to medium
which can communicate a message to a large group, often simultaneously. However, modern cell
phones are no longer a single use device. Most cell phones are equipped with internet access and
capable of connecting to the web which itself is a mass medium. A question arises of whether
this makes cell phones a mass medium or simply a device used to access a mass medium (the
internet). There is currently a system where marketers and advertisers are able to tap into
satellites, and broadcast commercials and advertisements directly to cell phones, unsolicited by
the phone's user. This transmission of mass advertising to millions of people is a form of mass
communication.
Video games may also be evolving into a mass medium. Video games convey the same
messages and ideologies to all their users. Users sometimes share the experience with each other
by playing online. Excluding the internet however, it is questionable whether players of video
games are sharing a common experience when they play the game separately. It is possible to
discuss in great detail the events of a video game with a friend you have never played with
because the experience was identical to you both. The question is if this is then a form of mass
communication.
Massively multiplayer online role-playing games (MMORPGs) such as Runescape provide a
common gaming experience to millions of users throughout the globe. It is arguable that the

users are receiving the same message, i.e., the game is mass communicating the same messages
to the various players.
BUSINESS TO BUSINESS
Business-to-business (B2B) describes commerce transactions between businesses, such
as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting
terms are business-to-consumer (B2C) and business-to-government (B2G). B2B branding is a
term used in marketing.
The overall volume of B2B (Business-to-Business) transactions is much higher than the
volume of B2C transactions. The primary reason for this is that in a typical supply chain there
will be many B2B transactions involving sub components or raw materials, and only one B2C
transaction, specifically sale of the finished product to the end customer. For example, an
automobile manufacturer makes several B2B transactions such as buying tires, glass for
windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to
the consumer, is a single (B2C) transaction.
B2B is also used in the context of communication and collaboration. Many businesses are now
using social media to connect with their consumers (B2C); however, they are now using similar
tools within the business so employees can connect with one another. When communication is
taking place amongst employees, this can be referred to as "B2B" communication.
BUSINESS TO CUSTOMERS
The term business-to-consumer, often called B2C, refers to transactions between a
business and its end consumer. Examples of B2C transactions include individuals shopping for
clothes to be given as birthday gifts, diners ordering food and eating in a restaurant, and TV
watchers subscribing to satellite TV providers.
The term B2C differs from business-to-business (B2B) in that these transactions are done with
no intent on the consumer’s part to use the product or service for commercial purposes.

If, for the example given above, the shopper bought the clothes in order to resell it in her online
shop, that transaction would instead fall under B2B. If a person also buys food in bulk from a
restaurant, then uses the food to cater to party and charges for the catering services, then the
transaction will fall under B2B as well. For the third example above, if a business orders satellite
TV pay-per-view programming such as a popular boxing event, and shows it in their bar with the
intention of attracting more customers to come in for a drink, then that transaction would fall
under B2B instead of B2C.
Though B2C refers to all business-to-consumer transactions the term is most commonly
used for online selling of products. The effect of B2C transactions in the online scene is of such
magnitude that retailers have become very vigilant in keeping their websites up-to-date and
optimized to get the consumer traffic they want.

INDUSTRY PROFILE
Media penetration in India has seen enormous progress in the recent years with
advancements in technology and coverage, catering to a wide range of media audience in terms
of language, region, religion and content. A robust economic growth, growing literate population
and consumer spending power have contributed to an expanding consumer base of various forms
of mass media - newspapers, radio and television. The new media such as the internet and
mobile phones have also made significant inroads since the early 2000’s.
The Indian media and entertainment industry
The Indian media and entertainment industry includes print media, television, radio,
cinema and the internet. According to the FICCI-KPMG Media and Entertainment Industry
Report, 2009, revenues of the Indian media and entertainment industry in 2008 were Rs.
58,40,000 lakhs , compared to Rs. 52,00,000 lakhs in 2007 recording a growth of 12.4%. Over
the next five years, the industry is projected to grow at a Compounded Annual Growth Rate
(“CAGR”) of 12.5% to reach the size of Rs.1,05,20,000 lakhs by 2013. The growth in the
entertainment industry has been aided by India’s rapid economic growth. India’s gross domestic
product grew by 7.50%,9.40%, 9.60% and 8.7% in Fiscal 2005, Fiscal 2006, Fiscal 2007 and
Fiscal 2008 respectively(Source: Economic Survey of India 2008-09, Ministry of Finance, . Due
to the growth in the Indian economy, the growing Indian middle class is able to allocate a higher
percentage of its monthly expenditure on media and entertainment .In the last four years 2005-
2008, the industry recorded a cumulative growth of 15% on an overall basis.

The Indian print media industry
Indian print media a readership base of over 2,500 lakhs, India is the second largest print
market in the world. Revenues from the Indian print media industry have grown at a CAGR of
13.8%over last three years (2006-08). The newspaper segment has witnessed growth at a CAGR
of 13.7% for the period 2006-08 and the magazine segment has witnessed growth at a CAGR
of 15.4% for the same period. Further, growth in the newspapers and magazines segment for
the period 2009-13 is estimated to be at a CAGR of 9.1% and 8.1%, respectively. (Source:
FICCIKPMG Report 2009)
Revenues in the print media industry are primarily generated from subscription and
advertising. Subscription revenues have grown at a CAGR of 10.5% for the period 2006-08 and
advertisement revenues have grown at a CAGR of 16% over the same period. Growth in
advertisement and subscription revenues for the period 2009-13 is estimated to be at a CAGR
of 11% and 7.3% respectively (Source: FICCI-KPMG Report 2009). Advertising revenue is in
general related to economic growth in the country, and subscription revenues is expected to grow
Owing to structural growth drivers like rising penetration, higher literacy levels and improving
affordability of the media.
The newspaper segment has historically dominated the print segment in India. However
,the sector has witnessed significant development in 2008,especially in the first half with the
increase in the number of special interest publications (including B2B and B2C
magazines),launch of newspaper supplement as well as aggressive portfolio and geographic
expansion by different companies both in the national and regional space.
These developments have benefitted consumers due to increased availability of choices
and better product quality as well as the advertisers, providing them with the media to reach a
broader target audience.

Online media
At about 150 million Internet users, India now has 3rd largest Internet population in the
world after China (at 575m) and the US (at 275m). At 150 million total Internet users, the
Internet penetration in India remains at 12 per cent vs. 43 per cent in China and 80 per cent in the
US. However, the low penetration means that India presents unmatchable growth opportunity for
the Internet sector in coming years. In our view, India will likely see golden period of the
Internet sector between 2013 to 2018 with incredible growth opportunity and secular growth
adoption for E-Commerce, Internet advertising, social media, search, online content, and services
relating to E-Commerce and Internet advertising.
Here is the India Internet outlook for 2013, the first year for this golden period.
We expect India to add 30 million new Internet users in 2013 and total Internet population to
touch 180mm. This implies a 20% growth in the Internet population.
As per our estimates, in 2012 India E-Commerce reached $550 million in gross revenue (exc.
Online travel and online classifieds) and we expect E-Commerce to touch $900 million in gross
revenue by end of 2013.
While, top 8 cities in India may remain at 45 per cent to 65 per cent of total E-Commerce
for various E-Commerce companies, we believe that higher growth delta for E-Commerce in
2013 will come from emerging cities. We define emerging cities as the cities other than Top-40
cities in India e.g. Bhatinda in Punjab or Kota in Rajasthan.
As per our estimates, India Internet advertising generated $300 million in revenue in
2012 and can double in 2013 to reach $600 million. We believe that lots of Internet advertising
growth will come due to the rise in social media, mobile Internet, and non-search and content
driven online ad formats such as lead generation, affiliate marketing, and email marketing etc.
models will likely either merge with each other or take a niche vertical position.
The online advertising market in FY 2012-2013 has grown to reach INR 2260 crores, which
represents a y-o-y growth of29%.

Mobile media
According to the latest report of IAMAI and IMRB, of the total 150 million internet users in
India, there are around 87.1 million mobile internet users till Dec. 2012 and this number is
expected to reach 130.6 million by March 2014 and 164.8 million by March 2015.
According to Gartner, India’s mobile services market will reach Rs 1.2 lakh crore in 2013, up
8% from 2012 revenue of Rs 1.1 lakh crore. India is still in a nascent stage of mobile advertising
with less than one percent market share. Media consumption is higher on other platforms.

SAMSUNG
Samsung Group
Type Chaebol
Industry Conglomerate
Founded 1938
Founder(s) Lee Byung-chul
Headquarters Samsung Town, Seoul, South Korea
Area served Worldwide
Key people Lee Kun-hee
(Chairman of Samsung Electronics)
Products Apparel, chemicals, consumer electronics, electronic components,
medical equipment, precision instruments, semi-conductors,
ships, telecommunications equipment
Services Advertising, construction, entertainment, financial services,
hospitality, information and communications technology services,

medical services, retail
Revenue US$ 268.8 billion (FY 2012)
Net income US$ 30.1 billion (FY 2013)
Totalassets US$ 590.4 billion (FY 2013)
Totalequity US$ 256.3 billion (FY 2013)
Employees 427,000 (FY 2013)
Subsidiaries Samsung Electronics
Samsung Life Insurance
Samsung Fire & Marine Insurance
Samsung Heavy Industries
Samsung C&T
Samsung SDS
Samsung Techwin etc.
Website Samsung.com
Samsung Group is a South Korean multinational conglomerate company headquartered
in Samsung Town, Seoul. It comprises numerous subsidiaries and an affiliated business, most of
them united under the Samsung brand, and is the largest South Korean chaebol (business
conglomerate).

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next
three decades the group diversified into areas including food processing, textiles, insurance,
securities and retail. Samsung entered the electronics industry in the late 1960s and the
construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent
growth. Following Lee's death in 1987, Samsung was separated into four business groups –
Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since the 1990s Samsung has
increasingly globalized its activities, and electronics, particularly mobile phones and
semiconductors, have become its most important source of income.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest
information technology company measured by 2012 revenues, and 4th in market value),
Samsung Heavy Industries (the world's 2nd-largest ship builder measured by 2010 revenues),
and Samsung Engineering and Samsung C&T (respectively the world's 13th and 36th-largest
construction companies). Other notable subsidiaries include Samsung Life Insurance (the world's
14th-largest life insurance company), Samsung Everland (operator of Everland Resort, the
oldest theme park in South Korea), Samsung Techwin (an aerospace, surveillance and defense
company) and Cheil Worldwide (the world's 15th-largest advertising agency measured by 2012
revenues).
Samsung has a powerful influence on South Korea's economic development, politics,
media and culture, and has been a major driving force behind the "Miracle on the Han River". Its
affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue was
equal to 17% of South Korea's $1,082 billion GDP.
In 2013, Samsung began construction on building the world's largest mobile phone factory in the
Thai Nguyen province of Vietnam.
Name
According to the founder of Samsung Group, the meaning of
the Korean hanja word Samsung is "tristar" or "three stars". The word "three" represents
something "big, numerous and powerful"; the "stars" mean eternity.

History
1938 to 1970
The headquarters of Samsung Sanghoes in Daegu in the late 1930s
In 1938, Lee Byung-chull (1910–1987) of a large landowning family in
the Uiryeong county came to the nearby Daegu city and founded Samsung Sanghoe a small
trading company with forty employees located in Su-dong (now Ingyo-dong). It dealt in
groceries produced in and around the city and produced its own noodles. The company prospered
and Lee moved its head office to Seoul in 1947. When the Korean War broke out, however, he
was forced to leave Seoul and started asugar refinery in Busan named Cheil Jedang. After the
war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong,Daegu. It was the
largest woolen mill ever in the country and the company took on the aspect of a major company.
Samsung diversified into many areas and Lee sought to help establish Samsung as an industry
leader in a wide range of enterprises, moving into businesses such as insurance, securities, and
retail. President Park Chung Hee placed great importance on industrialization, and focused his
economic development strategy on a handful of large domestic conglomerates, protecting them
from competition and assisting them financially.
In 1947, Cho Hong-jai (the Hyosung group’s founder) jointly invested in a new company
called Samsung Mulsan Gongsa, or the Samsung Trading Corporation, with the Samsung Group
founder Lee Byung-chull. The trading firm grew to become the present-day Samsung C&T
Corporation. But after some years Cho and Lee separated due to differences in management

between them. He wanted to get up to a 30% group share. After settlement, Samsung Group was
separated into Samsung Group and Hyosung Group, Hankook Tire, and others.
In the late 1960s, Samsung Group entered into the electronics industry. It formed several
electronics-related divisions, such as Samsung Electronics Devices, Samsung Electro-
Mechanics, Samsung Corning, and Samsung Semiconductor & Telecommunications, and made
the facility in Suwon. Its first product was a black-and-white television set.
1970 to 1990
The SPC-1000, introduced in 1982, w as Samsung's first personalcomputer (Korean market only) and uses an audiocassette
tape to load and save data – the floppy drive w as optional
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the
telecommunications hardware industry. Its early products were switchboards. The facility were
developed into the telephone and fax manufacturing systems and became the center of Samsung's
mobile phone manufacturing. They have produced over 800 million mobile phones to date. The
company grouped them together under Samsung Electronics in the 1980s.
After Lee, the founder's death in 1987, Samsung Group was separated into four business
groups—Samsung Group, Shinsegae Group, CJ Group, and the Hansol Group. Shinsegae
(discount store, department store) was originally part of Samsung Group, separated in the 1990s
from the Samsung Group along with CJ Group (Food/Chemicals/Entertainment/logistics) and the
Hansol Group (Paper/Telecom). Today these separated groups are independent and they are not
part of or connected to the Samsung Group. One Hansol Group representative said, "Only people

ignorant of the laws governing the business world could believe something so absurd", adding,
"When Hansol separated from the Samsung Group in 1991, it severed all payment guarantees
and share-holding ties with Samsung affiliates." One Hansol Group source asserted, "Hansol,
Shinsegae, and CJ have been under independent management since their respective separations
from the Samsung Group". One Shinsegae department store executive director said, "Shinsegae
has no payment guarantees associated with the Samsung Group".
In the 1980s, Samsung Electronics began to invest heavily in research and development,
investments that were pivotal in pushing the company to the forefront of the global electronics
industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York;
in 1985, a plant in Tokyo; in 1987, a facility in England; and another facility in Austin, Texas, in
1996. As of 2012, Samsung has invested more thanUS$13 billion in the Austin facility, which
operates under the name Samsung Austin Semiconductor. This makes the Austin location the
largest foreign investment in Texas and one of the largest single foreign investments in
the United States.
1990 to 2000
Samsung Group headquarters at Samsung Tow n, Seoul
Samsung started to rise as an international corporation in the 1990s. Samsung's
construction branch was awarded a contract to build one of the two Petronas
Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates. In
1993,Lee Kun-hee sold off ten of Samsung Group's subsidiaries, downsized the company, and

merged other operations to concentrate on three industries: electronics, engineering, and
chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung became the largest producer of memory chips in the world in 1992, and is the world's
second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share
Ranking Year by Year). In 1995, it created its first display screen. Ten years later, Samsung grew
to be the world's largest manufacturer of liquid-crystal display panels. Sony, which had not
invested in large-size TFT-LCDs, contacted Samsung to cooperate, and, in 2006, S-LCD was
established as a joint venture between Samsung and Sony in order to provide a stable supply of
LCD panels for both manufacturers. S-LCD was owned by Samsung (50% plus one share) and
Sony (50% minus one share) and operates its factories and facilities in Tangjung, South Korea.
As on 26 December 2011 it was announced that Samsung had acquired the stake of Sony in this
joint venture.
Compared to other major Korean companies, Samsung survived the 1997 Asian financial
crisis relatively unharmed. However, Samsung was sold to Renault at a significant loss. As of
2010, Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned by Samsung.
Additionally, Samsung manufactured a range of aircraft from the 1980s to 1990s. The company
was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger between then
three domestic major aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries, and
Hyundai Space and Aircraft Company. However, Samsung still manufactures aircraft and gas
turbines.
2000 to 2013
The Samsung pavilion at Expo 2012.

In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its
work began with set-top-box technology before moving into digital TV and smartphones. As of
2011, the Warsaw base is Samsung's most important R&D center in Europe, forecast to be
recruiting 400 new-hires per year by the end of 2013.
In 2001 Samsung Techwin became the sole supplier of a combustor module for the Rolls-
Royce Trent 900 used by the Airbus A380, the world's largest passenger airliner. Samsung
Techwin is also a revenue-sharing participant in the Boeing's 787 Dreamliner GEnx engine
program.
The prominent Samsung sign in Times Square, New YorkCity.
In 2010, Samsung announced a ten-year growth strategy centered around five businesses.
One of these businesses was to be focused on biopharmaceuticals, to which the company has
committed ₩2.1 trillion.
In December 2011, Samsung Electronics sold its hard disk drive (HDD) business to Seagate.
In the first quarter of 2012, Samsung Electronics became the world's largest mobile phone
maker by unit sales, overtaking Nokia, which had been the market leader since 1998. In the
August 21 edition of the Austin American-Statesman, Samsung confirmed plans to spend 3 to 4

billion dollars converting half of its Austin chip manufacturing plant to a more profitable chip.
The conversion should start in early 2013 with production on line by the end of 2013. On March
14, 2013, Samsung unveiled the Galaxy S4.
On 24 August 2012, nine American jurors ruled that Samsung had to pay Apple$1.05
billion in damages for violating six of its patents on smartphone technology. The award was still
less than the $2.5 billion requested by Apple. The decision also ruled that Apple did not violate
five Samsung patents cited in the case. Samsung decried the decision saying that the move could
harm innovation in the sector. It also followed a South Korean ruling stating that both companies
were guilty of infringing on each other's intellectual property.[40] In the first trading after the
ruling, Samsung shares on the Kospi index fell 7.7%, the largest fall since October 24, 2008, to
1,177,000 Korean won.[41] Apple then sought to ban the sales of eight Samsung phones (Galaxy
S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G,
Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the United States which has been
denied by the court.
On 4 September 2012, Samsung announced that it plans to examine all of its Chinese
suppliers for possible violations of labor policies. The company said it will carry out audits of
250 Chinese companies that are its exclusive suppliers to see if children under the age of 16 are
being used in their factories.
In 2013 a New Zealand news outlet reported a number of Samsung washing machines
spontaneously catching on fire. The corporation is expected to spend $14 billion on advertising
and marketing in 2013, with publicity appearing in TV and cinema ads, on billboards, and at
sports and arts events. In November 2013, the corporation was valued at $227 billion.

SAMSUMG B2B MARKETING
SamsungChannelPushThroughB2BMarketing
By UC Strategies Staff March 14, 2013 1 Comments Share on twitter Share on linkedin Share on
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SamsungChannel PushThroughB2B Marketingby UC StrategiesStaff
Samsung is renowned for focusing its energies on consumer-focused mobile devices, and
is now preparing itself for a new commercial marketing venture, including improvements to its
partner program, to leverage the company’s business-to-business space presence.
The senior channel marketing manager at Samsung, Richard Hutton, stated that the
company is expected to unveil a global B2B marketing campaign later in 2013 and this will have
a stronger and integrated message relating to commercial applications for its best-selling
products, from tablets and notebooks to printers and memory.
Furthermore, a new B2B-focused website will be unveiled this coming July, and will include
some features such as new lead generation services and visitor tracking. Samsung will also be
showcasing its B2B-related products, as well as providing training and education to assist usage.
Hutton also stated that the bring-your-own-device (BYOD) trend can be strengthened by partners
for devices like the Galaxy Tab series of tablets and Galaxy S family of smartphones.
Hutton said: “There's a great opportunity here for you to get into mobile device management.”
He also noted that through the use of Samsung devices, the company can provide the channel
with more business.

Samsung is introducing a reworked partner portal in the summer, and this enhancement comes as
part of the company’s partner program. The partner portal will include a better marketing
development fund delivery, automated deal registration and enhanced navigation.
Samsung’s commitment to its partners has also been reaffirmed by Hutton, and this marks
Samsung apart from other key vendors. He said: “We don't sell direct. Everything goes through
the channel.”
Recently, Samsung has been doing well, and this is due to the Android-powered mobile devices.
Last year, the company’s Galaxy Tab business jumped nearly 200 percent, and its notebook
business grew 125 percent. Samsung’s solid-state drives grew 769 percent last year, and Hutton
stated that the company is set to develop all of its products segments in the channel. He said:
“We have some very aggressive goals for the next three to four years.” (CY) Link
SAMSUNG LAUNCHES PREMIUM EQUIPMENT FOR
BUSINESS TO BUSINESS MARKETING
Posted on January 4, 2014
Revolutionary Screens reinforce Samsung’s leadership in the B2B segment and offer the perfect
solutions for the retail of luxury brands
Samsung Electronics announced the availability of innovative screens for the professional
segment – an LED square with a ratio of 1:1 (UD22B) and a transparent screen (NL22B) -., both
products that reinforce its leadership in professional displays the retail market in the second half
of this year
This new offer that meets the square screen from Samsung with a ratio of 1:1 and transparent
screen all-in-one , guarantees to holders of various business areas, innovative solutions for the
creation of new types of shelves promotional retail in shopping areas and even in public places.

With the launch of these innovative devices, Samsung reinforces its investment in professional
segments, responding to the needs and demands of various businesses that intend to distinguish
in the market through the use of solutions that integrate creative and engaging able to capture the
attention of consumers screens.
The innovative square screen
Presenting itself as an alternative to traditional rectangular screens The new square LED
screen from Samsung, which has a ratio of 1:1, supports unlimited configurations and opens a
new window of opportunities for those who want to create truly immersive viewing experiences.
With a 5.5mm frame that guarantees a perfect installation and a digital output capable of
supporting a single image, even 100 screens, this square screen Samsung’s 21.6-inch
Professional enables retail limitless possibilities in creating impactful video walls . Easily
connect multiple screens to create video mosaic panels, cubic shapes or other three-dimensional
configurations. No limitations in terms of space or format, professional retail outlets may create
more interactive and promotional screens that can capture and hold the attention of the
consumer.
Backlight Technology Direct LED Samsung, integrating the square screen UD22B,
generates less heat, thereby reducing energy consumption by over 30% compared to the
technology used in LCD panels, leading to lower operating costs. The UD22B also conserves
more energy, to be able to adjust the brightness to the ambient light in the environment where it
operates. In addition, users can easily manage content through exclusive software solution Magic
Info Samsung.
The first transparent screen All -in-One from Samsung
Transparent screen 22 inch Samsung (NL22B) is a new type of product, available
while all-in-one solution , a new beginning era of possibilities in the area of design digital
oriented retail. The thin LCD panel on the front of the transparent display allows images and
animations to interact dynamically with the objects on display in the center, while allowing
“viewers” the full view of the product. The other three sides are made of tempered glass
protection, which is framed by a sleek metal frame, giving an extremely luxurious look to
NL22B.

Available as all-in-one for use as stand-alone display or as part of a kit 22 inches for installation
in a wall, NL22B optimizes the display and promotion of any product. Unlike other screens that
have lower rates of transmission (5%) and that can hide the products you wish to highlight, this
transparent screen from Samsung offers a transmission rate of 15%, ensuring stunning image
quality. The all-in-one kit integrates a PC, speakers, a LED bar and protective glass, making it
extraordinarily simple to installation for professionals wishing to become unforgettable and truly
immersive experience of shopping consumers in their store
LEADERSHIP BUSINESS TO BUSINESS
Samsung is leading the creation of new segments within domercado professional, including the
premium segment indoor market by launching large screens (60 inches and up) and other
products that meet a great picture quality and design fine and dandy. The company plans to focus
on developing a premium image within this segment, strengthening its market position by
establishing partnerships with luxury brands known worldwide.
Samsung Electronics has proven its success in partnerships that have been established with
brands like Gucci Timepieces & Jewelry. At Info Comm 2012, Samsung showed the result of
collaborative work that has with Gucci Timepieces & Jewelry, with the presentation of a showcase that
integrated square screens, transparent screens and a series of luxury retail products at Gucci Timepieces &
Jewelry . In the area that has at IFA 2012, the Samsung has used some of these technologically advanced
features to create a very similar setup to the immersive environment store planned for locations of the
outlets of Gucci Timepieces & Jewelry screens.
SAMSUNG BUSINESS TO CUSTOMER MARKETING
STRENGTHS WEAKNESS
 Robust market position supported by strong Product
 Recalls reflect poorly on the brand equity image – loose customer confidence
 Constant focus on research and development
 Weak presence in high end smartphones
 Diversified business portfolio across multiple nations
 Weak presences in cheap models for emerging product categories country.

OPPORTUNITIES THREATS
Strategic partnerships Highly competitive business industry Initiatives to dive deeper into
emerging markets Patent lawsuits such as India Weakening liquid crystal display (LCD) ﬂat
Initiatives to go into emerging markets such as screens market thigh end smartphones China’s
control over rare minerals Launched Galaxy Tab in emerging PC tablet market
OPPORTUNITIES THREATS
China’s control over rare minerals Launched Galaxy Tab in emerging PC tablet market.
External factors that may shift strategies.
Samsung’s Strategies! For Vision 2020 Utilize strengths in Leadership
 Operational Efﬁciency and R&D
 Gain a Competitive Edge on their existing products
 Expand into Life care related products (biotech medical devices etc.)
 Strengthen CSR and seek after environmentally friendly business practices.
Recommendations
 Continue to elevate design as a core competency to help overcome the company’s
reliance on rare minerals! Example: Use design competencies to build products with
materials that can be disassembled and reused in new innovative products!
 Strong presence in global market.
 Leadership that spearheads change, R&D drives the value chain, Shifting towards design!

Lenovo
Lenovo Group Ltd.
Type Public
Traded as SEHK: 0992, OTCPink:LNVGY
Industry Computer hardware
Electronics
Founded 1984 (Beijing) (as Legend)
2004 (as Lenovo)
Founder(s) Liu Chuanzhi
Headquarte Beijing, China and Morrisville, North Carolina, United States,[1]

rs
Areaserved Worldwide
Key people Yang Yuanqing
(Chairman and CEO)
Products Smartphones, desktops, servers, notebooks, tablet
computers, netbooks,peripherals, printers,televisions, scanners, s
torage devices
Revenue US$ 29.57 billion (2012)
Operating
income
US$ 584 million (2012)
Net income US$ 472 million (2012)
Total assets US$ 15.86 billion (2012)
Total equity US$ 2.361 billion (2012)
Employees More than 33,000 (2013)
Website www.lenovo.com

Lenovo Group Ltd. is a Chinese multinational technology company with headquarters
in Beijing, China, and Morrisville, North Carolina, United States. It designs, develops,
manufactures and sells personal computers, tablet computers, smartphones,
workstations, servers, electronic storage devices, IT management software and smart televisions.
In the second quarter of 2013 Lenovo was the world's largest personal computer vendor by unit
sales. It markets the ThinkPad line of notebook computers and the Think Centre line of desktops.
Lenovo has operations in more than 60 countries and sells its products in around 160 countries.
Lenovo's principal facilities are in Beijing, Morrisville and Singapore, with research centers in
those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in
Kanagawa Prefecture, Japan. It operates a joint venture with EMC, Lenovo EMC, which
sells network-attached storage solutions. It also has a joint venture with NEC, Lenovo NEC
Holdings, which produces personal computers for the Japanese market.
Lenovo was founded in Beijing in 1984 as Legend and was incorporated in Hong Kong in 1988.
Lenovo acquired IBM's personal computer business in 2005 and agreed to acquire its Intel-based
server business in 2014. Lenovo entered the smartphone market in 2012 and as of 2014 is the
largest vendor of smartphones in Mainland China. In January 2014, Lenovo agreed to acquire the
mobile phone handset maker Motorola Mobility from Google.
Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng China-
Affiliated Corporations Index, often referred to as "Red Chips".
Name
"Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", Latin ablative for "new".
The Chinese name means "association" (as in "word association") or "connected thinking" but
can also imply creativity.
For the first 20 years of its existence, the company's English name was "Legend" (in Chinese 联
想 Lianxiang). In 2002, Yang Yuanqing decided to abandon use of the Legend brand name in
order to expand outside of China, as the "Legend" name was already in use by many other

businesses worldwide, making it impossible to register in most jurisdictions. In April 2003, the
company publicly announced its new name, "Lenovo", with a large media campaign involving
huge outdoor billboards and primetime television ads. Lenovo spent 18 million RMB on an
eight-week television advertising campaign. The billboards featured the Lenovo logo against
blue sky with copy that read, "Transcendence depends on how you think." By the end of 2003,
Lenovo had spent a total of 200 million RMB on rebranding.
Founding and early history
Liu founded Lenovo in 1984 with a group of ten engineers in Beijing with 200,000 yuan.
Lenovo officially states that it was founded on 1 November 1984. Lenovo's incorporation was
approved by the Chinese government on the same day. Jia Xufu, one of the founders of Lenovo,
indicates the first meeting in preparation for starting the company was held on 17 October of the
same year. Eleven people, the entirety of the initial staff, attended. Each of the founders were
middle-aged members of the Institute of Computing Technology, Chinese Academy of Sciences.
The 200,000 yuan used as start-up capital was approved by Zeng Maochao. The name for the
company agreed upon at this meeting was the Chinese Academy of Sciences Computer
Technology Research Institute New Technology Development Company.
Their first significant effort, an attempt to import televisions, failed. The group rebuilt
itself within a year by conducting quality checks on computers for new buyers. Lenovo soon
started developing a circuit board that would allow IBM-compatible personal computers to
process Chinese characters. This product was Lenovo's first major success. Lenovo also tried and
failed to market a digital watch. Liu said, "Our management team often differed on which
commercial road to travel. This led to big discussions, especially between the engineering chief
and myself. He felt that if the quality of the product was good, then it would sell itself. But I
knew this was not true, that marketing and other factors were part of the eventual success of a
product." Lenovo's early difficulties were compounded by the fact that its staff had little business
experience. "We were mainly scientists and didn't understand the market", Liu said. "We just

learned by trial-and-error, which was very interesting—but also very dangerous", said Liu. In
1990, Lenovo started to manufacture and market computers using its own brand name.
In May 1988, Lenovo placed its first advertisement seeking employees. The ad was
placed on the front page of the China Youth News. Such ads were quite rare in China at this time.
Out of 500 respondents, 280 were selected to take a written employment exam. 120 of these
candidates were interviewed in person. Although interviewers initially only had authority to hire
16 people, 58 were given offers. The new staff included 18 people with graduate degrees, 37
with undergraduate degrees, and three students with no university-level education. Their average
age was 26. Yang Yuanqing was among this group.
Liu Chuanzhi, received government permission to open a subsidiary in Hong Kong and was
allowed to move there along with five other employees. Liu's father, already in Hong Kong,
furthered his son's ambitions through mentoring and facilitating loans. Liu moved to Hong Kong
in 1988. In order to save money during this period, Liu and his co-workers walked instead of
taking public transportation. In order to keep up appearances they rented hotel rooms for
meetings.
IPO and secondary offerings
Lenovo became publicly traded after a 1994 Hong Kong listing that raised nearly US$30
million. Prior to its IPO, many analysts were optimistic about Lenovo. The company was praised
for its good management, strong brand recognition, and growth potential. Analysts also worried
about Lenovo's profitability. Lenovo's IPO was massively over-subscribed. On its first day of
trading, the company's stock price hit a high of HK$2.07 and closed at HK$2.00. Proceeds from
the offering were used to finance sales offices in Europe, North America, and Australia; expand
and improve production and research and development; and increase working capital.
When Lenovo was first listed, its managers thought the only purpose of going public was to raise
capital. They had little understanding of the rules and responsibilities that went along with
running a public company. Before Lenovo conducted its first secondary offering in 1997, Liu
proudly announced the company's intent to mainland newspapers only to have its stock halted for
two days by regulators to punish his statement. This occurred several times until Liu learned that

he had to choose his words carefully in public. The first time Liu traveled to Europe on a
"roadshow" to discuss his company's stock, he was shocked by the skeptical questions he was
subjected to and felt offended. Liu later came to understand that he was accountable to
shareholders. He said, "Before I only had one boss, but CAS never asked me anything. I relied
on my own initiative to do things. We began to think about issues of credibility. Legend began to
learn how to become a truly international company."
In order to get capital to fund its continued growth, Lenovo issued another secondary offering of
50 million shares on the Hong Kong market in March 2000 and raised about US$212 million.
Mary Ma, Lenovo's chief financial officer from 1990 to 2007, was in charge of investor
relations. Under her leadership, Lenovo successfully integrated Western-style accountability into
its corporate culture. Lenovo's emphasis on transparency earned it a reputation for the best
corporate governance among mainland Chinese firms. All major issues regarding its board,
management, major share transfers, and mergers and acquisitions were fairly and accurately
reported. While Hong Kong listed firms were only required to issue financial reports twice per
year, Lenovo followed the international norm of issuing quarterly reports. Lenovo created an
audit committee and a compensation committee with non-management directors. The company
started roadshows twice per year to meet institutional investors. Ma organized the first-ever
investor relations conference held in Mainland China. The conference was held in Beijing in
2002 and televised on CCTV. Liu and Ma co-hosted the conference and both gave speeches on
corporate governance.
Mergers and acquisitions
IBM

The Think Pad logo as show n on the ThinkPad x100e notebook computer.
Lenovo acquired IBM's personal computer business in 2005, including
the ThinkPad laptop and tablet lines. Lenovo's acquisition of IBM's personal computer division
accelerated access to foreign markets while improving both its branding and technology. Lenovo
paid US$1.25 billion for IBM's computer business and assumed an additional US$500 million of
IBM's debt. This acquisition made Lenovo the third-largest computer maker worldwide by
volume.
In regards to the purchase of IBM's personal computer division, Liu Chuanzhi said, "We
benefited in three ways from the IBM acquisition. We got the ThinkPad brand, IBM's more
advanced PC manufacturing technology and the company's international resources, such as its
global sales channels and operation teams. These three elements have shored up our sales
revenue in the past several years."
IBM acquired an 18.9% shareholding in Lenovo in 2005 as part of Lenovo's purchase of IBM's
personal computing division. Since then, IBM has steadily reduced its holdings of Lenovo stock.
In July 2008, IBM's interest in Lenovo fell below the 5% threshold that mandates public
disclosure.
Although Lenovo acquired the right to use the IBM brand name for five years after its
acquisition of IBM's personal computer business, Lenovo used it for only three years. On 7
December 2007, an event called "Lenovo Pride Day" was held. After words of encouragement
from management, employees ceremoniously peeled the IBM logos off their ThinkPad’s and
replaced them with Lenovo stickers.
IBM's Intel based server lines, including IBM System x and IBM BladeCenter were sold to
Lenovo in 2014.

Mobile devices
The Vibe X smart phone presented by models at launch.
Lenovo sold its smartphone and tablet division in 2008 for US$100 million in order to
focus on personal computers and then paidUS$200 million to buy it back in November 2009. As
of 2009, the mobile division ranked third in terms of unit share in China's mobile handset
market. Lenovo invested CN¥100 million in a fund dedicated to providing seed funding for
mobile application development for its LeGarden online app store. As of 2010, LeGarden had
more than 1,000 programs available for the LePhone. At the same time, LeGarden counted 2,774
individual developers and 542 developer companies as members.
Lenovo entered the smartphone market in 2012 and quickly became the largest vendor
of smartphones in Mainland China. Entry into the smartphone market was paired with a change
of strategy from "the one-size-fits-all" to a diverse portfolio of devices. These changes were
driven by the popularity of Apple's iPhone and Lenovo's desire to increase its market share in
mainland China. Lenovo passed Apple to become the No. 2 provider of smartphones to the
Chinese market in 2012. However, due to there being about 100 smartphone brands sold in
China, this second only equated to a 10.4% market share.
In May 2012, Lenovo announced an investment of US$793 million in the construction of a
mobile phone manufacturing and R&D facility in Wuhan, China.

Joint venture with NEC
On January 27, 2011, Lenovo formed a joint venture to produce personal computers with
Japanese electronics firm NEC. The companies said in a statement they will establish a new
company called Lenovo NEC Holdings B.V., which will be registered in the Netherlands. NEC
will receive US$175 million from Lenovo through the issuance of Lenovo's shares. Lenovo will
own a 51% stake in the joint venture, while NEC will hold a 49% stake. Lenovo has a five-year
option to expand its stake in the joint venture.
This joint venture is intended to boost Lenovo's worldwide sales by expanding its presence in
Japan, a key market for personal computers. NEC has spun off its personal computer business
into the joint venture. As of 2010, NEC controlled about 20% of Japan's market for personal
computers while Lenovo had a 5% share. Lenovo and NEC have also agreed to explore
cooperating in other areas such as servers and tablet computers.
Roderick Lappin, chairman of the Lenovo-NEC joint venture, told the press that the two
companies will expand their co-operation to include the joint development of tablet computers.
Medion
In June 2011, Lenovo announced that it planned to acquire control of Medion, a German
electronics manufacturing company. Lenovo said the acquisition would double its share of the
German computer market, making it the third-largest vendor by sales (after Acer and Hewlett-
Packard). The deal, which closed in the third quarter of the same year, was the first in which a
Chinese company acquired a well-known German company.
This acquisition will give Lenovo 14% of the German computer market. Gerd Brachmann,
chairman of Medion, agreed to sell two-thirds of his 60 percent stake in the company. He will be
paid in cash for 80 percent of the shares and will receive 20 percent in Lenovo stock. That would
give him about one percent of Lenovo.

CCE
In September 2012, Lenovo agreed to acquire the Brazil-based electronics company Digibras,
which sells products under the brand-name CCE, for a base price of 300 million reals (US$148
million) in a combination of stock and cash and an additional 400 million reals dependent upon
performance benchmarks. Prior to its acquisition of CCE, Lenovo already established a $30
million factory in Brazil, but Lenovo's management had felt that they needed a local partner to
maximize regional growth. Lenovo cited their desire to take advantage of increased sales due to
the 2014 World Cup that will be hosted by Brazil and the 2016 Summer Olympics and CCE's
reputation for quality. Following the acquisition, Lenovo announced that its subsequent
acquisitions would be concentrated in the areas of software and IT services.
Stoneware
In September 2012, Lenovo agreed to acquire the United States-based software company
Stoneware, in its first software acquisition. The transaction was expected to close by the end of
2012; no financial details have been disclosed. Lenovo said that the company was acquired in
order to gain access to new technology and that Stoneware is not expected to significantly affect
earnings. More specifically, Stoneware was acquired to further Lenovo's efforts to improve and
expand its cloud-computing services. For the two years prior to its acquisition, Stoneware
partnered with Lenovo to sell its software. During this period Stoneware's sales doubled.
Stoneware was founded in 2000. As of September 2012, Stoneware is based in Carmel, Indiana
and has 67 employees.
Lenovo EMC
The signing ceremony for the Lenovo EMC joint venture

Lenovo and EMC formed Lenovo EMC as a joint venture to offer network attached
storage (NAS) solutions. Lenovo EMC's products were formerly offered under the Iomega brand
name. After the formation of Lenovo EMC, Iomega ceased to exist as business unit. Lenovo
EMC's products are designed for small and medium sized that do not have the budgets for
enterprise-class data storage. Lenovo EMC is part of a broader partnership between the two
companies announced in August 2012.This partnership also includes an effort to develop x86-
based servers and allowing Lenovo to act as an OEM for some EMC hardware. Lenovo is
expected to benefit from the relatively high profit margins of the NAS market. Lenovo EMC is
part of Lenovo's Enterprise Products Group.
Motorola Mobility
On 29 January 2014, Google announced it would sell Motorola Mobility to Lenovo for
US$2.91 billion in a cash-and-stock deal. When Google and Lenovo first announced the
acquisition of Motorola, they said the purchase would be funded with $660 million in cash, $750
million in Lenovo stock, and a $1.5 billion promissory note due in three years. As of February
2014, Google owns about 5.94% of Lenovo's stock. The deal includes smartphone lines like
the Moto X and Moto G and the DROID Ultra. Lenovo also got the future Motorola Mobility
product roadmap. Google will retain the Advanced Technologies & Projects unit and all but
2000 of the company's patents.
Yang Yuanqing stated that "the acquisition of such an iconic brand, innovative product portfolio
and incredibly talented global team will immediately make Lenovo a strong global competitor in
smartphones. “Yang also said, “Don’t be scared by the $1 billion-a-year loss. We will improve
that even from day one. Google is very good at software, ecosystems and services. But we are
stronger in the manufacturing of devices.” Yang said that Lenovo would make Motorola
profitable within six quarters.
Nok Nok Labs
Lenovo invested in Nok Nok Labs, a firm dedicated to improving computer security by
eliminating the use of passwords in favor of voice recognition, fingerprint scanning, and other
technologies. Lenovo has at least one seat on Nok Nok's board. Both Nok Nok and Lenovo were

founding members of the Fast Identity Online alliance, a group of over 100 companies including
Google, Microsoft and PayPal that wants to create a new cyber security ecosystem. The
companies behind the initiative aim to stop users from creating easily guessed passwords, often
used for multiple sites, that make it easy for hackers to steal information and seize control of
social media accounts. The most common passwords are still “123456″ and “password."
Smartphones and tablets
The ThinkPad Tablet 2 fromfront and back.
Lenovo launched the LePhone in China in order to compete against other smart phones.
These same phones are marketed as Idea Phones outside of China
As of January 2013, Lenovo only manufactures phones that use the Android operating system
from Google. Numerous press reports indicated that Lenovo planned to release a phone
running Windows Phone 8, According to JD Howard, a vice president at Lenovo's mobile
division; the company would release a Windows Phone product if there is market demand.

Lenovo has implemented an aggressive strategy to replace Samsung Electronics as Mainland
China market's top smartphone vendor. It has spent $793.5 million in Wuhan in order to build a
plant that can produce 30 to 40 million phones per year. Data from Analysis International shows
that Lenovo experienced considerable growth in smartphone sales in China during 2012.
Specifically, it saw its market share increase to 14.2% during 2012's third quarter, representing
an increase when compared to 4.8% in the same quarter of 2011. IDC analysts said that Lenovo's
success is due to its "aggressive ramping-up and improvements in channel partnerships."
Analysis International analyst Wang Ying wrote, "Lenovo possesses an obvious advantage over
rivals in terms of sales channels." The company's CEO, Yang Yuanqing, said, "Lenovo does not
want to be the second player ... we want to be the best. Lenovo has the confidence to outperform
Samsung and Apple, at least in the Chinese market."
According to IHS iSuppli, Lenovo was a top-three smartphone maker in China with a 16.5%
market share in the first quarter of 2012. According to a May report released by IDC Lenovo
ranks fourth in the global tablet market by volume. As of November 2012, Lenovo was the
second largest seller of mobile phones in China when measured by volume.
In May 2013, Lenovo CEO Yang Yuanqing indicated that the company had aimed to release
smartphones in the United States within the next year. Later in October, Lenovo expressed
interest in acquiring the Canadian smartphone maker BlackBerry Ltd. However, its attempt was
reportedly blocked by the Government of Canada, citing security concerns due to the use of
BlackBerry devices by prominent members of the government. An official stated that "we have
been pretty consistent that the message is Canada is open to foreign investment and investment
from China in particular but not at the cost of compromising national security".
In January 2014, Lenovo announced a proposed deal to acquire Motorola Mobility to bolster its
plans for the U.S. market. Microsoft officially announced that Lenovo became the hardware
partner of Windows Phone platform at the Mobile World Congress 2014.
In March 2014, a super affordable smartphone, Lenovo Golden Warrior S8 (Lenovo S898t+) was
introduced in China. It costs only RMB$788 with a 5.3-inch HD screen, an octa-core processor
from Media Tek, 1GB of RAM, 8GB of storage and 13-megapixels rear-facing camera.

Smart Televisions
A Lenovo A30 TV set top box
In November 2011, Lenovo said it would soon unveil a smart television product called Le
TV, expected for release in the first quarter of 2012. "The PC, communications and TV
industries are currently undergoing a “smart” transformation. In the future, users will have many
smart devices and will desire an integrated experience of hardware, software and cloud services."
Liu Jun, president of Lenovo's mobile-Internet and digital-home-business division.

Personal and business computing
While many argue that computing is entering a "post-PC era", Lenovo's CEO, Yang
Yuanqing, believes that the personal computer is still relevant and that computing is really
entering what he calls the "PC plus era". In order to avoid commodity pricing and compete
against mobile devices, Yang has pushed Lenovo to pursue innovative new PC designs such as
its popular Idea Pad Yoga products, ThinkPad Helix, and ThinkPad Twist. Lenovo has achieved
significant success with this high-value strategy and it now controls more than 40% of the
market for Windows computers priced above $900 in the United States.[48]
ThinkPad
A Lenovo ThinkPad X1 Ultra book
ThinkPad is a line of business-oriented laptop computers known for their boxy black
design, modeled after a traditional Japanese lunchbox. Think Pads were originally
an IBM product; they have been manufactured and sold by Lenovo since early 2005, following
its acquisition of IBM's personal computer division. The ThinkPad has been used in space and is
the only laptop certified for use on the International Space Station.
Shipments of Think-branded computers have doubled since Lenovo's takeover of the brand, with
operating margins thought to be above 5%.[51] Lenovo has aggressively expanded the ThinkPad

brand away from traditional laptop computers in favor of tablets and hybrid devices such as
the ThinkPad Tablet 2, ThinkPad Yoga, ThinkPad 8, ThinkPad Helix, and ThinkPad Twist.
Think Centre
Think Centre is a line of business-oriented Desktop computers which was introduced in
2003 by IBM and since has been produced and sold by Lenovo since 2005.ThinkCentre
computers typically include mid-range to high-end processors, options for discrete graphics
cards, and multi-monitor support.
Think Server
The Think Server product line began with the TS100 from Lenovo. The server was
developed under agreement with IBM, by which Lenovo would produce single-socket and dual-
socket servers based on IBM’s xSeries technology. An additional feature of the server design
was a support package aimed at small businesses. The focus of this support package was to
provide small businesses with software tools to ease the process of server management and
reduce dependence on IT support.
Think Station
The Think Station products from Lenovo are workstations designed for high-end computing. In
2008, Lenovo expanded the focus of its “THINK” brand to include workstations, with the Think
Station S10 being the first model released.
Think Vision displays
High-end computer displays are marketed under the Think Vision name. Think Vision displays
share a common design language with other THINK devices such as the Think Padline of
notebook computers and Think Centre desktops.
At the 2014 International CES, Lenovo announced the Think Vision Pro2840m, a 28-inch 4K
display aimed at professionals selling for $799 in the United States. Lenovo also announced
another 28-inch 4K touch-enabled device running Android that can function as an all-in-one PC

or an external display for other devices; It will sell for $1,199 in the United States. Both will be
available in mid-2014.
IdeaPad
A model w ith a Lenovo IdeaPad at a launch party in Japan.
The IdeaPad line of consumer-oriented laptop computers was introduced in January 2008.
The IdeaPad is the result of Lenovo's own research and development; Unlike the ThinkPad line
of notebooks, its design and branding were not inherited from IBM. The IdeaPad line's design
language differs markedly from the ThinkPad and has a more consumer-focused look and feel.
In October 2012 the firm launched the IdeaPad Yoga 13, a laptop running Microsoft Corp's
Windows 8 that can be converted to a tablet PC by flipping the screen all the way
backwards. Lenovo has subsequently released the IdeaPad Yoga 11 running Windows RT and
announced the IdeaPad Yoga 11S running Windows 8. Lenovo's Yoga products reflect the
company's commitment to the "PC plus era" where innovative products allow Lenovo to resist
commodity pricing of PCs.

IdeaCentre
A Lenovo Idea Centre all-in-one PC
All IdeaCentres are all-in-one machines, combining processor and monitor into a single
unit. The desktops were described by Hot Hardware as being "uniquely designed”. The
first IdeaCentre desktop, the IdeaCentre K210, was announced by Lenovo on June 30,
2008. While IdeaCentre was designed to be purely desktop models, influences of
the IdeaPad line were observed. One such feature was Verified facial recognition technology.
At CES 2011, Lenovo announced the launch of four IdeaCentre desktops: the A320, B520,
B320, and C205. In the autumn of 2012, the firm introduced the more powerful IdeaCentre
A720, with a 27-inch touchscreen display and running Windows 8.With a TV tuner and HDMI
in, the A720 can also serve as a multimedia hub or home theater PC.
In 2013 Lenovo added a table computer to the IdeaCentre line. The Lenovo IdeaCentre Horizon
Table PC, introduced at the 2013International CES is a 27-inch tablet computer designed for
simultaneous use by multiple people. Thanks to its use of Windows 8 the Horizon can also serve
as desktop computer when set upright.

Operations
Lenovo's principal facilities are in Beijing, Morrisville, North Carolina and Singapore, with
research centers in those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in
China, and Yamato in Kanagawa Prefecture, Japan. Lenovo operates factories
in Chengdu and Hefei in China, Japan, and as of December 2011 has plans to start production
in Argentina. A 7,500 square foot flagship store opened in Beijing in February 2013.
The Lenovo R&D Centre in Shenzhen, China
Lenovo's manufacturing operations are a departure from the usual industry practice
of outsourcing to contract manufacturers. Lenovo instead focuses on vertical integration in order
to avoid excessive reliance on original equipment manufacturers and to keep down
costs.[66] Speaking on this topic, Yang Yuanqing said, "Selling PCs is like selling fresh fruit. The
speed of innovation is very fast, so you must know how to keep up with the pace, control
inventory, to match supply with demand and handle very fast turnover." Lenovo benefited from
its vertical integration after flooding affected hard-drive manufacturers in Thailand in 2011, as
the company could continue manufacturing operations by shifting production towards products
for which hard drives were still available.

Lenovo began to emphasize vertical integration after a meeting in 2009 in which CEO Yang
Yuanqing, and the head of Lenovo's supply chain, analyzed the costs versus the benefits of in-
house manufacturing, and decided to make at least 50% of Lenovo's manufacturing in-house.
Lenovo Chief Technology Officer George He said that vertical integration is having an important
role in product development. He stated, "If you look at the industry trends, most innovations for"
PCs, smartphones, tablets and smart TVs are related to innovation of key components—display,
battery and storage. Differentiation of key parts is so important. So we started investing
more...and working very closely with key parts suppliers."
In 2012, Lenovo partially moved production of its ThinkPad line of computers to
Japan. Think Pads will be produced by NEC in Yamagata Prefecture. Akaemi Watanabe,
president of Lenovo Japan, said, "As a Japanese, I am glad to see the return to domestic
production and the goal is to realize full-scale production as this will improve our image and
make the products more acceptable to Japanese customers.
In October 2012, Lenovo announced that it would start assembling computers in Whitsett, North
Carolina. Production of desktop and laptop computers, including the ThinkPad Helix began in
January 2013. As of July 2013, 115 workers were employed at this facility. Lenovo has been in
Whitsett since 2008, where it also has centers for logistics, customer service, and return
processing.
Corporate affairs
The Lenovo corporate campus in Beijing

The company executive headquarters are in Morrisville, North Carolina, near Raleigh in
the Research Triangle metropolitan area, in the United States. As of October 2012, the facility
has about 2,000 employees. Lenovo identifies its facilities in Morrisville, Beijing, and Singapore
as its "key location addresses," where its principal operations occur. The company stated that "by
foregoing a traditional headquarters model and focusing on centers of excellence around the
world, Lenovo makes the maximum use of its resources to create the best products in the most
efficient and effective way possible." The company registered office is on the 23rd floor of the
Lincoln House building of the TaiKoo Place in Quarry Bay, Hong Kong.
Previously the company's U.S. headquarters were in Purchase, Harrison, New York. About 70
people worked there. In 2006, Lenovo announced that it was consolidating its U.S. headquarters,
a logistics facility in Boulder, Colorado, and a call center in Atlanta, Georgia to a new facility in
Morrisville. The company received offers of over $11 million in incentive funds from the local
Morrisville, NC area and from the State of North Carolina on the condition that the company
employs about 2,200 people. If the company failed to employ that amount, it would not acquire
the incentives.
Financials and market share
Lenovo is the dominant supplier of computers in mainland China and became the
world's second-largest supplier of personal computers during the third quarter of 2011. Lenovo
held around 13.5% of the worldwide computer market as of October 2011. The company's
expansion was boosted in part by a joint venture with NEC in Japan and aggressive marketing to
both professionals and consumers. Yang Yuanqing said that Lenovo would continue its
expansion by focusing on technological convergence in the areas of smart phones, tablets,
personal computers, and "smart TV." "We must deliver a great user experience across all
platforms to achieve our goal and become the leading personal technology company in the
world," he said.
In the second quarter of 2011, Lenovo was the world's third-largest vendor of personal
computers. For the year ending with third quarter 2010, its market share increased from 8.6
percent to 10.4 percent. The company is the largest seller of PCs in China, with a 28.6% share of

the China market, according to research firm IDC in July 2009. It reported annual sales of $14.9
billion for the fiscal year ending 2008/2009 (ending March 31, 2009).
During the first quarter of 2011, Lenovo held 31.7% of the personal computer market in China
when measured by units sold. Lenovo reported a 98.3 percent rise in profit to $108.8 million
during the first quarter of 2011, up from $54.86 million during the same quarter of the previous
year. Lenovo shipped 10.28 million personal computers in the first quarter of 2011. Lenovo
reported a 54-percent rise in profit for the third quarter of 2011, beating analyst predictions, in
spite of slow sales growth and a shortage of hard drives.
From March 4, 2013 Lenovo was included as a constituent stock in the Hang Seng Index.
Lenovo replaced the unprofitable Aluminum Corp of China, a state-owned enterprise, on the list
of 50 key companies on the Hong Kong stock exchange that constitute the Hang Seng Index. The
inclusion of Lenovo and Tencent, China's largest internet firm, significantly increased the weight
of the technology sector on the index. Being added to the Hang Seng Index was a significant
boon for Lenovo and its shareholders as it widened the pool of investors willing to purchase
Lenovo's stock. For instance, index funds pegged to the Hang Seng and pension funds that
consider index inclusion now have the opportunity to invest in Lenovo.On November 2013 it
was reported that Lenovo achieved double digit market share in the United States for the first
time.
Ownership
As of 1 October 2011, 58% of Lenovo stock was held by the general public, 34%
by Legend Holdings Limited, and 8% by other entities. The Sciences owns 36% of Legend
Holdings.
On 4 September 2009, Oceanwide Holdings Group, a private investment firm based in Beijing,
bought 29% of Legend Holdings, the parent company of Lenovo, for 2.76 billion yuan.
Responding to claims that Lenovo is a state owned enterprise CEO Yang Yuanqing said: "Our
Company is a 100% market oriented company. Some people have said we are a state owned
enterprise. It's 100% not true. In 1984 the Chinese Academy of Sciences only invested $25,000
in our company. The purpose of the Chinese Academy of Sciences to invest in this company was

that they wanted to commercialize their research results. The Chinese Academy of Sciences is a
pure research entity in China, owned by the government. From this point, you could say we're
different from state-owned enterprises. Secondly, after this investment, this company is run
totally by the founders and management team. The government has never been involved in our
daily operation, in important decisions, strategic direction, nomination of the CEO and top
executives and financial management. Everything is done by our management team."
Yang dramatically increased his ownership stake in by acquiring 797 million shares in 2011. As
of June 2011, Yang owned an 8 percent stake in Lenovo. He previously owned only 70 million
shares. In a statement, Yang said, "While the transaction is a personal financial matter, I want to
be very clear that my decision to make this investment is based on my strong belief in the
company's very bright future. Our culture is built on commitment and ownership – we do what
we say, and we own what we do. My decision to increase my holdings represents my steadfast
belief in these principles."
Corporate culture
Lenovo's corporate culture differs significantly from most large Chinese companies.
While Lenovo was founded using seed capital from the state-owned Chinese Academy of
Sciences, Lenovo is run as a private enterprise with little or no interference by the state. Lenovo's
senior executives, including many non-Chinese, rotate between two head offices, one in Beijing
and the other in Morrisville, North Carolina, and Lenovo's research and development center in
Japan. Two Westerners have served as Lenovo's CEO.
English is Lenovo's official language. Lenovo's CEO, Yang Yuanqing, initially did not
understand English well, but relocated his family to Morrisville in order to improve his language
skills and soak up American culture. One American Lenovo executive interviewed by The
Economist praised Yang for his efforts to make Lenovo a friendly place for foreigners to work.
He said that Yang had created a "performance culture" in place of the traditional Chinese work
style of "waiting to see what the emperor wants."
When Yang took over Lenovo's personal computer division, he strongly discouraged the use of
formal titles and required staff to address each other by their given names. Yang even required

managers to stand outside their offices each morning to greet their employees while carrying
signs with their first names. When Yang's division moved to a new building in 1997, he used the
move to break Lenovo's cultural links to the past by insisting on a more formal dress code and
training all employees in telephone etiquette; Yang wanted his people to think and act like high-
tech workers in developed markets.
Leadership
Yang Yuanqing
Yang Yuanqing, Lenovo's Chairman and CEO
Yang Yuanqing is the chairman and chief executive officer of Lenovo. One of his major
achievements was leading Lenovo to become the best-selling personal computer brand in China
since 1997. In 2001, Business Week named him one of Asia's rising stars in business. Yang was
president and CEO of Lenovo until 2004, when Lenovo closed its acquisition of IBM's PC
division, afterward Yang was succeeded as Lenovo CEO by IBM's Stephen M. Ward, Jr. Ward
was succeeded by Bill Amelio on December 20, 2005. On February 2009, Yang replaced Amelio
as CEO and has served in that capacity ever since. Yang was chairman of Lenovo's board from
2004 to 2008, and returned as chairman in 2012 alongside his role as CEO.

In 2012, Yang received a $3 million bonus as a reward for record profits, which he in-turn
redistributed to about 10,000 of Lenovo's employees. According to Lenovo spokesman, Jeffrey
Shafer, Yang felt that it would be the right thing to, “redirect [the money] to the employees as a
real tangible gesture for what they done.” Shafer also said that Yang, who owns about eight
percent of Lenovo's stock, "felt that he was rewarded well simply as the owner of the company.
The bonuses were mostly distributed among staff working in positions such as production and
reception who received an average of 2,000 yuan or about US$314. This was almost equivalent
to a monthly salary of an average worker in China.Yang made a similar gift of $3.25 million
again in 2013.
According to Lenovo's annual report, Yang earned $14 million, including $5.2 million in
bonuses, during the fiscal year that ended in March 2012.
In 2013, Barron's named Yang one of the "World's Best CEOs."
Liu Chuanzhi
Liu Chuanzhi is the founder and chairman of Lenovo. Liu was trained as an engineer at a
military college and later went on to work at the Chinese Academy of Sciences. Like many
young people during the Cultural Revolution, Liu was denounced and sent to the countryside
where he worked as a laborer on a rice farm.
Liu claims Hewlett-Packard as a key source of inspiration. In an interview with The
Economist he stated that "Our earliest and best teacher was Hewlett-Packard." For more than ten
years, Lenovo was Hewlett-Packard's distributor in China. In reference to Lenovo's later
acquisition of IBM's personal computer unit Liu said, "I remember the first time I took part in a
meeting of IBM agents. I was wearing an old business suit of my father's and I sat in the back
row. Even in my dreams, I never imagined that one day we could buy the IBM PC business. It
was unthinkable. Impossible."

Board of directors
In early 2013, Lenovo announced the addition of Yahoo founder Jerry Yang to its
board. Lenovo's CEO Yang Yuanqing said, ""Jerry’s appointment as an observer to our board
furthers Lenovo’s reputation as a transparent international company." Just prior to the
appointment of Jerry Yang, Tudor Brown the founder of British semiconductor design
firm ARM, was also appointed to Lenovo's board. Speaking of both men Yang Yuanqing said,
"We believe that they will add a great deal to our strategic thinking, long-term direction and,
ultimately, our ability to achieve our aspirations in the PC plus era."
Marketing and sponsorships
Emerging markets
In 2009 Lenovo became the first personal computer manufacturer to divide countries into
emerging markets, such as China, India, and Brazil, and mature markets, such as the United
States, Japan, and Europe. Lenovo then developed a different set of strategies for each category.
This approach has now been widely adopted among Lenovo's competitors.
In 2012, Lenovo made a major effort to expand its market share in developing economies such as
Brazil and India through acquisitions and increased budgets for marketing and advertising. While
Lenovo has not revealed its total spending on marketing, it did increase marketing and
advertising expenditures by $248 million in the fiscal year ending in 2012.

China
A Lenovo Store in China
In China, Lenovo has a vast distribution network designed to make sure that there is at
least one shop selling Lenovo computers within 50 kilometers of nearly all consumers. Lenovo
has also developed close relationships with its Chinese distributors, who are granted exclusive
territories and only carry Lenovo products.
As of July 2013, Lenovo believes that urbanization initiatives being pushed by Premier Li
Keqiang will allow it to sustain sales growth in mainland China for the foreseeable future.
Speaking of Lenovo’s prospects on the mainland at its annual general meeting in Hong Kong in
2013, Yang Yuanqing said: “I believe urbanisation will help us further increase the overall
[domestic] PC market.” Yang also stressed the opportunity presented by the China's relatively
low penetration rate of personal computers. Lenovo previously benefited from the Chinese
government’s rural subsidy, part of a wider economic stimulus initiative, designed to increase
purchases of appliances and electronics. That program of subsidies, which Lenovo joined in
2004, ended in 2011. Lenovo enjoys consistent price premiums over its traditional competitors in
rural markets and a stronger local sales and service presence.

India
Lenovo has gained significant market share in India through bulk orders to large
companies and government agencies. For example, the government of Tamil Nadu ordered a
million laptops from Lenovo in 2012 and single-handedly made the firm a market leader. Lenovo
distributes most of the personal computers it sells in India through five national distributors such
as Ingram Micro and Redington.
Given that most smartphones and tablets are sold to individuals Lenovo is pursuing a different
strategy making use of many small state-centric distributors. Amar Babu, Lenovo's managing
director for India, said, "To reach out to small towns and the hinterland, we have tied up with 40
regional distributors. We want our regional distributors to be exclusive to us. We will, in turn,
ensure they have exclusive rights to distribute Lenovo products in their catchment area." As of
2013, Lenovo had about 6,000 retailers selling smartphones and tablets in India. In February
2013, Lenovo established a relationship with Reliance Communications to sell smartphones. The
smartphones carried by Reliance have dual-SIM capability and support both GSM and CDMA.
Babu claims that the relative under-penetration of smartphones in India represents an opportunity
for Lenovo.
Lenovo has assembled a team of senior managers familiar with the Indian market, launched
mobile phones at all price points there, and worked on branding and marketing in order to build
market share. As of February 2014, Lenovo claims that its sales of smartphones in India have
been increasing 100% per quarter while the market is only growing 15-20% over the same
period. Lenovo did marketing tests of its smartphones in November 2012 in Gujarat and some
southern cities, where Lenovo already had a strong presence. Lenovo's strategy has been create
awareness, maintain a broad selection of phones at all price points, and developing distribution
networks. Lenovo partnered with two national distributors and over 100 local distributors. As of
February 2014, more than 7,000 retail outlets in India sold Lenovo smartphones. Lenovo has also
partnered with HCL in order to setup 250 service centers in 110 cities.
In India, where Lenovo is relatively unknown, Lenovo grants distributors exclusive territories,
but allows them to sell computers from other companies. Lenovo uses its close relationships with
distributors to gain market intelligence and speed up product development.

Africa
Lenovo plans to release its smartphones in Nigeria in the second half of 2013 in an effort
to find markets where it can sell directly to consumers. Lenovo specifically picked Nigeria,
because unlike South Africa and other African countries, there is no requirement to partner with
a local telecom firm to sell its phones. Nigeria is Africa's second-largest economy after South
Africa. Lenovo will sell its phones across as many as six price segments with the most expensive
selling for about US$500. Lenovo says it is investigating the rest of Africa and that Egypt will be
its next target for expansion.
United States
In the United States, Lenovo began the "For Those Who Do" marketing campaign in
2010, created by the ad agency Saatchi & Saatchi. The campaign was Lenovo's first to go global,
with the exception of its domestic market in China, where it retained its existing "Imagine" (lian
xiang) slogan. The campaign did not reach China because "do" carries connotations of physical
work in the country, an image that Lenovo did not want attached to their brand. "For Those Who
Do" was designed to appeal to young consumers in the 18-to 25-year-old demographic by
stressing its utility to creative individuals that Lenovo's advertising refers to as "doers".
Ashton Kutcher
In October 2013 Lenovo announced that it had hired Ashton Kutcher as a product
engineer and spokesman. Kutcher announced Lenovo's Yoga Tablet at a media event the same
month; He flew to China to meet with Lenovo executives shortly after. David Roman, Lenovo's
chief marketing officer, said, "His partnership goes beyond traditional bounds by deeply
integrating him into our organization as a product engineer. Ashton will help us break new
ground by challenging assumptions, bringing new perspective and contributing his technical
expertise to Yoga Tablet and other devices." Kutcher co-founded A-Grade Investments, an
investor in Airbnb, Foursquare, Spotify, Path, Uber and other technology firms. Kutcher
studied biochemical engineering at the University of Iowa.

Kobe Bryant
Kobe Bryant appeared in ads aired in China and other Asian countries for the K900 smartphone
in 2013.
Olympics
The 2008 Summer Olympics Torch, which was designed by Lenovo
Lenovo was an official computer sponsor of the 2006 Winter Olympics in Turin, Italy,
and the 2008 Summer Olympics in Beijing. When asked about Lenovo's brand Yang Yuanqing
said, "The Beijing Olympics were very good for brand awareness in countries like the US and
Argentina, but not good enough."
YouTube Space Lab
On December 2011, Lenovo announced the YouTube Space Lab contest in conjunction
with YouTube, NASA, the European Space Agency, and JAXA, allowing students between the
ages of 14 and 18 the chance to devise experiments to be performed by astronauts on the
International Space Station. The global winners received a trip to Japan or Russia in addition to
having their experiment results live-streamed from space.

NFL
In July 2012, Lenovo and the National Football League (NFL) announced that Lenovo
had become the NFL's "Official Laptop, Desktop and Workstation Sponsor." Lenovo said that
this was its largest sponsorship deal ever in the United States. Lenovo will receive advertising
space in NFL venues and events and be allowed to use the NFL logo on its products and ads.
Lenovo said that this sponsorship would boost its efforts to market to the key 18-to-35-year-old
male demographic.
The NFL has been a Lenovo customer since 2007 and the sponsorship resulted from that
relationship. NFL stars Jerry Rice, DeAngelo Williams, and Torry Holt were on hand for the
announcement and a celebration with 1,500 Lenovo employees. Lenovo's sponsorship will last at
least three years.
MARKETING STRATEGY OF THE LENOVO
In 1964 produced the marketing mix concept, it is an integrated activity that marketing
personnel comprehensively use and optimize the various controllable factors in order to achieve
its goals of the marketing. A successful and complete marketing activity means with the
appropriate products, the appropriate price, the appropriate channels and the appropriate means
of promotion, enterprise products and services are devoted to a specific market. According to the
marketing theory, we will pick up the following marketing strategies of the Lenovo based on the
above case study.
Target Marketing Choice of Lenovo
At present, Lenovo considers the following factors when choosing target market:
1) Strong brand awareness, city customers who have advanced concepts. In the personal
computer market, the impact of Lenovo brand is comparative advantage, so choosing such target
customers can cater to the needs of such customers.

2) Cities customers who have the high level of education, higher on admission, and are aged
below 45. Lenovo called this crowd high-end crowd, the crowd is conducive to high-end
products sales.
3) Developed rural market, those customers have strong brand awareness. This crowd has
formed part of purchasing power, Moreover, Lenovo early did the act of the "free movies for
countryside" to develop the rural market, the activities have brought the brand impact, so
choosing this part of the crowd as the target customer group, apparently can quickly enter the
rural market.
Market Position of Lenovo
Lenovo’s marketing position mainly considers the following three factors: Take mainly
to the high-end, middle and high-end combination of market positioning methods. Middle and
high-end positioning can not only guarantee the consistency of Lenovo position in the market,
also continue the image and status in consumer's mind, while the computer industry‟ present
status such as the profits decline also decides the only choice for high-end positioning, will it be
possible to maintain the long-term favorable market competitive position (Gan, 2002). Generally
speaking, the high-end products‟ unit profits are 2 -3 times more than low-end products, in the
pressure of the rising cost situation, low-end products have no guarantee of profits, the profits of
enterprises is the key to taking the high-end route. Low energy is not only the main consumer
demand of IT industries, but also an image of the representatives of high-tech enterprise,
therefore, choosing low energy consumption and market leading-edge technology positioning
will enhance brand image. At present, the service content of Lenovo brand is mainly limited to
the after-sales service in a timely manner, etc. such narrow positioning can no longer meet the
needs of the competitive market situation. Management master Michael Porter (2003) said, in the
21st century the multinational companies are unlikely to be manufacturing companies, but the
service industry. The new economy is the services economy; the service is the competitive edge.
Therefore, the service content of Lenovo should learn from the experience of DELL, it should
provide more information on purchasing home computers, and after-sale service. Customers‟

focus has changed from product quality and price gradually to control energy consumption,
frequency and quiet technology (Jack, Telaote, Lise, 2006). So Lenovo's market position should
be made promptly converted to meet consumer demand. It is the origin of Lenovo to create the
famous Chinese brand, and this existing connotation can continue exist and support Lenovo’s
strategy choice.
The Product Strategy of Lenovo
Lenovo’s product strategy is the same as target market and positioning, mainly embodied as
follows:
Middle and High End Market Positioning
Take Lenovo’s personal computer as example, the market survey shows that its refrigerators
mainly focus on middle and high end, Lenovo owns 70% market share in high end products,
while the middle end count for 40-50% market share, the market share of low end product is
lower than 10%.
Different Competition of Product Development Through segmenting the market, tapping users‟
unmet demand, thereby pre-empt competitors to develop completely different products from the
market, exclusive share the cake of segment market. Seen from the introduction of Lenovo’s
products in the past three years, we can see this development idea. In light of this situation, in
2001 Lenovo introduced the "ThinkPad" machines, which reaches not only to meet the needs of
the users but also share the piece of cake alone.
According to the Channels and the Difference of Segment Markets, Develop and Design
Targeted Products As for the supermarket channel, Lenovo has designed relatively low prices of
mid-level products, while high-end products on the electrical chain and retail sales channels. For
the rural market, Lenovo designs and develops products that have relatively simple functions,
relatively low prices to meet the needs of the students market.

Price strategy of Lenovo
In recent years, the production capacity of IT enterprises seriously exceeds, and this causes to
expand market share and the price war has become worse. As a large computer manufacturer, of
course, Lenovo is subject to the impact of the price war. However, Lenovo was demonstrated
most vividly in this price war, Lenovo did not reduce price, while the corporate image enhanced,
sales grew and market share expanded, the effective price strategy has enabled Lenovo to exceed
in the economy of excessive capacity.
Based on different levels of consumers, Lenovo developed different prices, by creating
differentiated products to meet different consumer groups, formulating differential price
discrimination. Lenovo domestic market sales operator, Yang (2006) said, Lenovo's production
line is continuity, so prices of their products are also of continuity, from more than 10,000 Yuan
to more than 2000 Yuan. Almost every 500 Yuan there are two products to serve the different
needs and purchasing power of consumers. Lenovo now has 19 species, 200 various models of
products; Lenovo's exports and diversified product enable it to avoid involvement in domestic
plague of the price war impact of its competitors. We can see that Lenovo's price strategy can
according to products in accordance with the best performance of the physical value, brand
value, the value of service and other form of value make Lenovo establish an independent
cognitive value in the eyes of consumers, which can be the base of the price of Lenovo products
and achieve the relatively independent cognitive value system. This awareness of the value
system is not set up like the prices can be as simple imitation. Such an independent value and the
price of Lenovo model are built on years of accumulated brand and the concept of service. This
created a core competitiveness of Lenovo brand and Lenovo is still invincible in the fierce
competition

Objective of research
1. To know the level of use of mass media in Lucknow city
2. To know the effect of mass media over Business to Business and Business to Customer
marketing.
3. To aware the people of remote area as well as to make a public facilitator of medias.
 Role of mass media in Business to Business and Business to Customer marketing of
electronic gadget in Lucknow city”
 People go for the existing product in market/brand name, whether the new product launch
in market have more feature.

SCOPE OF STUDY:
It has a wide scope in Lucknow city for marketing through mass media which covers a large
population of Lucknow which is catered by mass media. In todays’ market scenario a very large
part of market gets aware by new offers provided by the company through mass media like
newspaper , hoarding, free to air channel, posters etc. There is scope to know how the
advertisement effect on consumer behavior and also know the effectiveness of mass media.
This research study helps to ascertain the strength and weakness of product & services.

Methods and tools used for this project report:
Research approach : Survey Method
Data Collection : 1. Primary data:
a) Structured Questionnaire,
b) Personal interview,
c) Call interview
2. Secondary data
a) Company Literature
b) Internet
Area for Research : Lucknow city
Research instruments : Questionnaire
Sample size : 100 people
Research design : Exploratory and descriptive design
Type of survey : Direct and call interview and Pilot survey

LIMITATIONS and PROBLEMS
 Less interest of the customer to fill the questionnaire.
 Some of the questionnaire was filled in hurry due to which there were inaccurate
answers given by the clients/customers.
 Some of the respondent was not ready to respond.
 The result of the study is applicable to Lucknow city only.

Chapter 4
Data interpretation and analysis

Que1. Tablet P.C User’s age in Lucknow as per survey?
Graph 4.1
Interpretation
Sample size of 100 people is taken for the survey of role of mass media in Business to Business
marketing and Business to customer marketing of electronic gadget at Lucknow. Among those 100 people
70% are between the age group of 20-25 years and remaining are 20% and 10% from the age group of 25-
30 years and 30 or above respectively.
15-20
years
20-25
years
25-30
years
30 or
above
0
10
20
30
40
50
60
70
0
70
20
10
Sample size=100

Que2. Occupation of those people who uses Tablet P.C in Lucknow?
. Graph 4.2
Interpretation
70% are service class and remaining 30% belongs to business class who uses Tablet P.c.
Businessman
Service class
0
20
40
60
80
30
70
Sample size=100

Que3. Yearly income of Tablet P.C users in Lucknow city?
Graph 4.3
Interpretation
from the sample who uses tablet P.c 60% are having income 2 lacs or above and remaining 10% and 30%
of them are having their income between 50000-1 lac and 1 lac to 2 lacs respectively.
0
10
20
30
40
50
60
0
10
30
60
Sample size=100

Role of mass media in b2 b and b2c marketing of electronic gadgets in lucknow city

Role of mass media in b2 b and b2c marketing of electronic gadgets in lucknow city

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