Marketing Strategy and Plan for Lenovo in Hong Kong

Running head: Marketing strategy and plan
Marketing strategy and plan

Marketing strategy and plan
Executive summary
Lenovo group is a Chinese multinational corporation which deals in computer technology
and manufactures various products such as notebooks, servers, desktops, workstation and IT
software’s. The firm was incorporated in 1984. The mission, vision and core values of the firm
have been explained in the paper. In today’s competitive world, Lenovo is increasing its profits
and revenue. Now the company has decided to explore and grow its business in the Hong Kong
in order to maximize the revenue. Hong Kong is the fourth densely populated and well known
region in the world. Furthermore, it explains how the firm uses segmentation, targeting and
positioning strategies to create a strong brand image in the minds of the customers. The firm
focuses on the older people in the Hong Kong to gain long term competitive advantages. Here is
the discussion about the SWOT analysis and pestle analysis of Lenovo. The paper depicts that
how Lenovo uses marketing mix strategies to increase the sale of the products in the foreign
market. Apart from this, effective budget is made by the company to run the business
successfully in such country. In addition, effective and attractive promotion and distribution
strategies are used by Lenovo to attract and retain more clients in the foreign market. Further
detail of the task has been stated below.
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Marketing strategy and plan
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Vision and mission...................................................................................................................................4
Environment analysis..................................................................................................................................5
Competitors.............................................................................................................................................5
Pestle analysis.........................................................................................................................................5
SWOT analysis.........................................................................................................................................7
Evaluation of current marketing strategy....................................................................................................8
Analysis of the organizations competitive advantages.................................................................................8
STP (Segmentation, positioning and targeting) strategies...........................................................................9
Recommended marketing objectives and goals........................................................................................10
Marketing mix of Lenovo...........................................................................................................................11
Appropriate marketing strategies..............................................................................................................12
Monitoring and control.............................................................................................................................13
Budget.......................................................................................................................................................13
Conclusion.................................................................................................................................................13
References.................................................................................................................................................15
Appendices................................................................................................................................................18
Bibliography...............................................................................................................................................20
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Marketing strategy and plan
Introduction
The main aim of this task is to provide a brief overview about the marketing plan of
Lenovo. Lenovo is one of the fastest growing brands of computers in the world. In today’s era,
the firm is becoming leader in the IT sector. The firm offers various products to the customers
such as storage devices, laptops, workstation and personal computer. On the other hand, the
paper explains that how the firm uses innovative marketing strategies to gain competitive
benefits in the foreign market. Lenovo from China is primarily focused and monitored on the
foreign market to maximize the profitability. The firm has decided to conducts its business
activities and operation in Hong Kong. Therefore various risks and challenges are faced by the
company. Environment analysis is done by the firm to eliminate these risks and challenges.
Lenovo group Ltd. is a Chinese multinational technology company with its headquarter is
located in Beijing, China, North Carolina. It produces various products such as personal
computer, smart phones, tablet computers, workstations, servers, electronic storage devices. In
today’s era, the company operates its business activities and operations in more than 60 countries
and sells its products in around 160 countries. The firm is listed on the Hong Kong stock
exchange. The organization employs approx 60,000 employees. Lenovo is one of the biggest
personal technology companies who is producing innovative and new PCs and mobile internet
devices. It is the biggest PC vendor and third largest Smartphone organization in the world.
Various effective IT softwares are being produced by Lenovo Company in the marketplace
(Lenovo, 2018). It is observed that Lenovo is one of the leading PC companies in the world.
Vision and mission
The vision of the company is to create personal devices to inspire and motivate people in
the international market. The mission of the firm is to become one of the biggest personal
technology companies in the world. In addition, the culture of Lenovo Company is unique and
dynamic. Yang Yuanqing is the CEO and an executive director of the firm (Lenovo, 2018).
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Marketing strategy and plan
Environment analysis
Environmental analysis plays a vital role in the organization to reach the customers in
Hong Kong. By conducting environmental analysis, the company tries to evaluate and analyze
the tastes, preferences and choices of the customers. Lenovo provides variety of products and IT
solutions to the consumers globally (Yin, Gao and Xu, 2014). The organization wants to expand
and explore its business operations in Hong Kong. Therefore, environmental analysis is done by
the company to beat the competitors widely. The environmental analysis encompasses internal
analysis and external analysis. The firm cannot control on the external factors therefore, pestle
analysis is done by the company. Apart from this, SWOT analysis is also used to analyze and
identify the threats and weaknesses of the competitors in the global market (Jerrard, 2013).
Competitors
Lenovo is a well known and reputed company in the world and it has been ranked as one
of the top brands in the technology sector. The main competitors of the company include Dell,
HP and Acer. Toshiba and Apple also influence the success and growth of the firm adversely
(Dan-hong, Wei-dong and Hua-dong, 2015).
Pestle analysis
Pestle analysis of Lenovo has been stated below.
Political factors: In today’s era, the political factors are growing in the business. There are
various factors exist in the Hong Kong which may influence the operations and activities of
Lenovo negatively. The Hong Kong has been adopting one country two system policy since
1970. The county has the authority of legislation, judiciary and administration. In this way,
political stability is very high in the country. The country does not impose import duties like
china does. Apart from this, capital movement is also free in China. Furthermore, the
government of Hong Kong tries to address and avert the housing issues and conflicts. It will help
to the company to flourish its business in such country (Johnson, 2016).
Economic factors: The global economic condition of the country has changed since the
recession. Hong Kong is the third financial center in the world. The economic structure of the
country is very strong and unique. The growth was noticed lower in 2016 (1.4%). The
government of the country seeks to stimulate the economy, as it improves access to housing and
optimizes economic potential. Inflation rate was also lower in 2016 (2.4%) than in 2015(3%) as
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Marketing strategy and plan
it is expected to continue below 2% throughout 2017. In this way, the company can gain
competitive advantages by starting business activities in such country (Nelson, 2015).
Social factors: Some of the social factors which could influence the growth and success of
Lenovo Company in Hong Kong. The social factors include customs, values, languages, beliefs
and culture. Cantonese is the national language of Hong Kong. The country maintains bilingual
society and English language is used by people in their daily work. Many foreigners who come
from America, Australia, Britain, Philippines, Japan, Pakistan and India working in Hong Kong
speak Cantonese. In this way, the country is well integrated society in the world. Furthermore,
the country keeps technicians and supervisors to perform tasks and duties effectively. Now it
shall be noted that the company can take various advantages by initiating its activities in such
country (Warner, 2014).
Technological factors: The country uses innovative technologies to conduct business operations
successfully and effectively. Along with this, the country use innovative infrastructure materials
in the marketplace. Government incubation programs also help the company to start business in
such country (Wang and Pizam, 2011).
Legal factors: The Hong Kong is well known and famous for its simple tax system. The tax rate
is low in the country. The profit tax rate is 16.5% for organizations and 15% for individual’s sole
proprietors (Guidemehongkong, 2018). In this way, the legal system in the country is effective and
transparent. If the Lenovo Company initiates its business in Hong Kong then it can maximize its
profitability and revenue.
Environmental factors: Sustainability is a significant trend in the 21st century. Most of the
companies are investing in the sustainability practices to create a sustainable brand in the
marketplace. The organization is focusing and analyzing the renewable energy portfolio to
increase its productivity and performance as well. In this way, it is assumed that Lenovo
Company can start its operations in Hong Kong for gaining its long term goals and objectives
(Chiu, 2018).
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