Assignment 4 Dell and Lenovo similarities and differences between sales strategy

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					Assignment 4 Dell and Lenovo similarities and differences between sales strategy
Dell and Lenovo's marketing strategy of similarities and differences

  As we all know, Dell's direct model is dominating, the direct business
model designed to vendors and consumers in a direct relationship to consumer
companies to receive the order information, namely, organization of production,
installation and delivery to help customers installation and provide after-sales support.
For home and small business customers, most of the direct sales by telephone; for
large industrial users, the site-based field sales, face to face with the establishment of
a direct relationship. No matter what kind of customer-oriented, Dell emphasize the
importance of direct customer experience.
Most important feature of the direct business model is not through any agent, dealer
or end retailers, manufacturers and consumers to achieve a seamless
"virtual integration", so that manufacturers can keep low-cost,
highly efficient business operation, and to ensure a unified price system, to avoid
some of the dealers sold the blind pursuit of lower prices caused by market price sale
of confusion. Consumers also can avoid all the traps in channels and on-demand and
personalized customization.
  Dell's department will be divided into target markets and customer
segments for the adjustment of the adjustment, but everyone basically has their own
work clearly positioning, sales volume increased rapidly, but on the whole is orderly.
  This is Dell's customer-oriented is an important embodiment,
Dell's competitors have had a lot of products for the center is to organize
the enterprise's "business unit", and on the same
client, they have to spend many times the market rate, sales costs, service support
costs to sell different products, because each "division" between
each other are independent. Waste of resources do not said that customers have and
the variety of people dealing with, even if they are employees of the same company,
the answer is likely to be inconsistent.
  Dell has always insisted on the enterprise customer-centric organization structure,
faithfully implement the best "customer experience" corporate
slogan, from the market, sales to logistics, customer service departments in a unified
face appeared in front of customers, customers find any one department, can be
unified response. While improving the customer experience, Dell's market,
the much-reduced cost of sales, this is an open secret that Dell.
For different types of customers, Dell arrangements inside and outside sales personnel
are also different allocation of resources, likely to mainly outside sales, inside sales,
supplemented; also be dominated by internal sales, outside sales, supplemented, or not
to arrange outside sales staff.
  With the deepening of market expansion, increase in number of customers,
Dell's sales are increasing, they are increasingly fine division of labor. Dell
has customer value segments of the "style box", the customer
was assigned to the "style box", while the corresponding sales
personnel, their level of detail is a national or even international reach for many
2. Lenovo's marketing strategy:
No matter who is writing the last 20 years history of China's information
industry, probably very difficult to avoid a name ----- association. Although this name
is full of controversy, the early '80s have emerged who have compared the
demise of many companies in Zhongguancun, Lenovo's survival and
development does have its own unique situation in its industry awareness and deep
understanding of China by determines that it has been steady along the forward
direction of success. Despite its success might have implied a number of objective
factors, although the process of its development there have been many mistakes, but
should not be overlooked is its keen ability to grasp the opportunity and strong
implementation capacity, in other words, in addition to "at the right time do
the right thing, "the strategic capabilities, but also have the"
right things "and tactical capabilities, Lenovo will come today, and neither
is dispensable. This article focuses on the marketing Lenovo some strategic thinking
and tactical measures to leading enterprises from the IT experience in the harvest.
Before the commencement of the marketing strategy of Lenovo before, it is necessary
to recall the evolution of marketing theory in recent years, the most important theory
of course, 4P, 4P means the product (product), price (price), channel (place),
promotion (promotion ). 4P marketing strategy since the late 50s by the
JeromeMcCarthy has been proposed, on the theory and practice of marketing has had
a profound impact, marketing managers are regarded as a classic marketing theory.
Theoretical guidance on how to achieve the 4P marketing mix, in fact, marketing is
the basic method of operation. In modern enterprises, almost every marketing plan is
to 4P based on the theoretical framework developed, nearly every marketing textbook
and curriculum for each marketing 4P regarded as the basic elements of teaching, and
almost every marketing manager in the planning marketing activities, both
consciously and unconsciously, to consider the problem from the theory of 4P. After
the 4P theory, have emerged, 4C, 4R theory, the former stressed enough attention to
business customers, 4C mean, respectively, customer (consumer),
Customers willing to pay the cost (cost), customer's convenience
(convenience), and customer communication (communication). The latter stressed
that business long term, the initiative to establish a win-win relationships with
customers, 4R mean, respectively, associated with the response, relationship, income.
Be noted that the development of marketing theory is not as compelling as
technological change, but the practice of enterprise survival and development of
guidance is extremely important. Based on theory 4P separately from product, price,
promotion, several aspects of the association's marketing strategy analysis.
Lenovo's product strategy
In the theory of product marketing strategy, often to answer several basic questions:
u current products and existing product relationship to them?
u how to make products more features?
u product life cycle product impact?
Legend of the progressive development
In fact, the right answer the first Wenti put it bluntly, it means the internal core of the
Qi Ye Zi Yuan to Li Yong, expanding the problem, I personally think that the most
core of the ability of Lenovo in the definition of its product capabilities Qudaoliliang
Yi Ji, Lenovo in this issue very clear on Biaoxian, takes a step by step development
strategy, based on Lenovo's products are basically developed from such a
context: Acting computer and various trade associations ----" Han card,
Lenovo brand computers free board ----" ----" new concept of
computer, printer, ----" servers, workstations, laptops ----"
network equipment, PDA, FM365 ---- "ISP, wireless devices, you can see
every new Lenovo product (service) is introduced, the basic all have a certain share in
the relevant market, market share, enjoy a good reputation (PC, server), or is already
established channels and explore effective product promotion model (laptop, network
equipment), or already have a strong capital base (FM365, PDA). Lenovo's
strategy is extremely clear: the diversity in the field of information technology
development. In sharp contrast is the Stone Group, in the main business, the attack
highlighted the case of 4 (medicine, real estate), it is difficult to build a stable source
of profits, creating a bottleneck in the development and growth. Of course, one or
multiple businesses, is not a simple one is better development issues, such as foreign
GE, HP go hand in hand in many directions, the development in good shape. But for
most domestic enterprises, since the market a short time, the lack of control many
different areas of business management capabilities and flexible marketing mode,
choose a sensible move steadily into the area.
Lenovo's product definition capabilities
Answer the second question relating to a product promotion on the basic marketing
strategy, in general, including the scale, market segments, differentiation of three
means. Lenovo Zhaoyang from Lenovo notebook computer and operating perspective,
the association can be skilled at the right time to choose the right marketing strategy.
Prior to 1992, Lenovo has been Acting AST computer-based, his voice is very weak.
However, in 1992, Lenovo take aim, the vast Chinese domestic market, launched the
"home computer" concept, 93/94 years have introduced the
"Legend 1 +1" computer first generation, second generation,
and the average time about the level of a few million compared to foreign computer,
the price touched by consumers, the same time, Lenovo set up shop system in 1994,
extends to the streets, communities, continue to spread and broaden the home PC
market. From 92 to 96 years, the Lenovo PC sales growth, but still lag behind, such as
IBM, COMPAQ, HP and other foreign companies, this time, Lenovo continued to
focus on the home computer market, from the universal computer to home computer,
from the functional to the application of computer computer, a variety of fresh design
ideas and the subsequent price offensive launched four home computers in China
finally had explosive growth, Lenovo has thus became China's PC market
leader. Patiently in the media coverage, tend to associate the experience of 1996 鲤鱼
跳龙门 Pentium chips and price cuts due to the implementation of the strategy, but in
fact, Lenovo is the remarkable ability of the product definition 96 years the core of the
whole event, in the market segmentation based on (the PC division of a business PC
and home PC), select the starting point but the space in the relatively thin profit huge
home market, and become their own definition of home computer usage guide, on this
basis on distribution channels through existing and safety stock model, and gradually
enhanced bargaining power with the upstream vendors (as much as possible reduce
the logistics of the extended accounting period), the existing board production
advantages, strong brand promotion strategy, in one fell swoop a lead. Since then,
Lenovo has become the game in the home computing formulation of those rules, and
in the subsequent time high emphasis on product definition and market segmentation,
which is also reflected on other products, too Quite obviously, we can see that
whether Lenovo Tuiguang He products, will have a clear product positioning and
target customers will have one or several characteristics of different products will
have a wide product line as far as possible, the products will be compatible with the
channel and good media relations activities. Of course, due to various objective and
subjective factors as well as each product is not successful, relatively speaking,
followed the successful operation of these lines of products have home computers,
business computers, Lenovo Zhaoyang laptop.
Understand in which stage of product life cycle, select the appropriate business
For the third question to consider is to clear understanding of the product in the
industrial development of what stage, and as soon as possible and on the
implementation of the strategy of basic capabilities. Product life cycle theory and
business functions of the relationship between the form below:
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Focus on innovative application of technology invented speed performance design-led
new product development process innovation process less innovative products and
improve product life of technology diversification
Key markets are small marketing experts to promote and guide users to products with
short life change quickly immature market price promotion fast-growing segment of
quality services at competitive prices
The key functions of the R & D R & D production of marketing,
financial marketing, financial marketing, production
The requirements of low cost high low very high increase
Very high risk high high low
Organizations are forming formal formal informal informal
Chinese PC market grew rapidly between 1990-1997, PC sales growth in more than
30%, this phase corresponds to the table in front of the second stage, but over the
same period worldwide PC industry has matured, PC sales are not in to 20% in the
third stage in front of the table, and gradually entered the fourth stage.
China's PC industry is open, technology and hardware and software largely
depends on imports. So the real sense, as the PC industry in a regional market, the
Chinese PC industrial profiles already in the form of Shangmian the third stage and
therefore determine the tactics to make a difference at this stage the company must
have corresponding functional competencies should be said that the industry
association on a deep understanding of the situation, according to the external
environment to formulate the right strategy, cultivate and adapt the functions of the
capacity of the environment:
n under the conditions in the mass production quality control, procurement and timely
response to market changes quickly production capacity and supply capacity;
n scale marketing capabilities;
The latter is more important, not only is based on the theory described in the previous
table, but also because Chinese companies have been facing a strong R & D
and production capacity of foreign companies. Until 1996, the Chinese PC
maker's primary problem or PC can not be sold, he can survive the
Lenovo's pricing strategy
In marketing theory, total price including the eight basic strategies: cost increases
(cost plus the expected profit), consumers recognize the value (based on consumer
recognition of the value of fees regardless of the cost), strip-style (in the
product's introduction stage charge high prices and high profits),
infiltrating (in exchange for market share with low prices), price / quality relationship
(consumer believe that the quality is largely decided by the price, such as gems,
perfumes), aimed at competing purposes (and competitors flat or slightly lower than
the price of competitors to gain market share), according to market size to achieve
profit objectives (Prices must be guaranteed to profit in a limited market), according
to the price elasticity of consumer prices (based on consumer price sensitivity of price
changes ).
Lenovo in 1996, when the product definition based on good management capacity and
business operations based on their own, rational use pricing strategies, one stroke to
become the leader in China's PC industry, Lenovo can be seen on the skill
level of the use of pricing strategy.
First of all, look at the then industry background:
u 96 years ago, PC makers the choice of divestiture type almost without exception, the
pricing strategy, especially foreign manufacturers are accustomed to relatively
outdated computer products to the United States, China, and earn high profits.
u PC has gradually fade its mysterious foreign yarn, has gradually become a common
family of consumer products into the people, the knowledge of computer Renmen
gradually in depth, the changes in computer prices are very sensitive, but because of
price reasons, PC market also far in China, "exploded."
u think in 94 years, annual sales have reached 4.5 units, ranked China's top
five PC vendors, although there is a big gap between the top few, but the bargaining
power of upstream firms significantly increased.
u think 96 years ago has been basically established a stable supply channel and the
corresponding inventory model on the size and scale of manufacture already has a
rich marketing experience.
u think decision-makers identified the home PC market in China is far from being the
leading startup and the lack of advanced manufacturers.
Based on these judgments, Lenovo launched in 1996 INTEL PENTIUM chip using
the opportunity, first of all the logistics with the upstream vendors compressed from
three to four months to less than a month, get the cost advantage of the price of parts.
Then seize foreign companies still adhere to the previous mode (the Pentium machine
prices are very high, and continue dumping the stock 486) of the opportunity to peel
away the old-style pricing strategy, but the pricing strategy adopted immersion, with
the price exchange market, the first Pentium computers to 15,000 yuan yuan down,
and then launched three successive price cut in one fell swoop the summit,
China's PC industry's champion.
After 96 years of tempering, Lenovo has been the procurement, inventory, channels,
price, promotion and a series of tactical means of increasing the application of skilled,
17 consecutive quarters hold the top spot in China's PC market.
99 and 2000, the Lenovo Lenovo Zhaoyang promote the process of notebook
computers also have chosen the right time to lower prices across the board, this
notebook is Lenovo Zhaoyang China in 2000, the first notebook to lay a solid
Be explained in that the immersion of the pricing strategy Zai certain time range is
effective for, but when the price reduced to low levels, the user to price the reduction
in time-sensitive, Ze need to widen our product from Xian, Fu Yu products more
features and properties to maintain or expand market share. In addition, penetration of
price-strategy of the same size with the scale of manufacturing and marketing is very
easy for competitors to imitate, concern is the first time in the P4 PC price cuts is the
New Army TCL, Its not easy to think out a great problem, it is no wonder that the
TCL's Paul Yeung Yang Lenovo as major competitors in the PC area.
Lenovo's marketing strategy
Several years ago, Lenovo slogan "If you lose Lenovo, how will human
beings?" Leave a very deep impression, think about this issue, you will
find, if Lenovo really disappeared one day, first do not say much 整个 IT industry
pattern of many of Lenovo products, corporate image ads will from our side lost,
probably for some time so that we not be at. This indicates that the association is a
very able to "rally" of the company, its products throughout the
corporate image design and marketing capabilities, ability to control the entire media
is very powerful.
Lenovo's overall brand strategy in itself a good corporate image through
publicity, product promotion, sales among the two complement each other, brought to
Lenovo a good economic and social benefits. For example, the media association
strategy, management, products, reports of all levels, all massive summer promotion
Lenovo home computer, a variety of names, seminars, exhibitions, mobilization,
participation in various social undertakings, and so on. Lenovo to outsource the
implementation of brand strategy with specialized marketing companies, but you can
see, Lenovo's brand promotion and product marketing with very close, in
which the art laptop Lenovo Zhaoyang planning is a good example. September 2000,
Lenovo invite renowned scholars, visual artist Chen Yifei as Lenovo Zhaoyang
notebook product design consultancy, this can not help but make us think of Sohu has
been hired as artistic director Gao Xiaosong's move, but despite the
ingredients show great Lenovo marketing people to grasp the center of gravity is still
commendable. First, from 99 onwards, the mainstream laptop features are maturing,
gradually lower the price, channels of various manufacturers, raw materials, services,
construction and other areas are also very stable, with the convergence of the
notebook market, Lenovo must choose the appropriate starting point Lenovo
Zhaoyang the selected point is the product design. Lenovo Zhaoyang idea is
"mobile fashion," based on the idea, came to absorb some of the
aesthetic concepts began to attempt the integration of technology and aesthetics.
Subsequently, the association began in the mainstream notebook Zhaoyang IT media
began long "Golden", "Jade" series of ads
bombing (Lenovo Lenovo Zhaoyang invested in the advertising budget is 4 times the
past), Lenovo through successful Marketing for Lenovo Zhaoyang laptop in
appearance to show a strong personal color. Result of strong marketing,
"although not necessarily so", but "consumers would
prefer to believe that this is the case." In 2000, Lenovo notebook sales in
China Zhaoyang won the first.
Looking at Lenovo 10 years years of development history, Lenovo's
overall brand strategy can be broadly divided into four levels:
u product advertising
market promotion of public relations activities u
Government public relations activities u
u create the required environment and culture activities
Visit a business, you must put it in a specific environment, many in 80 years stand out
among small companies in Zhongguancun, Lenovo deep understanding of
China's national conditions and the full use of environmental resources is
the most important internal factor. From the late 80's fruitful association
Han card association public relations work to the production and sale of computer
qualifications obtained from 94 was "People's Daily"
as "carry the banner of national industry" to a series of dazzling
eye-catching action, Lenovo step by step from product marketing to create conditions
for enterprise development, but also further increase the business environment for the
training required. It can be said, in the IT industry, can be a good combination of
China's national conditions, market demand, product positioning, brand
strategy for effective marketing, Lenovo's ability second to none.
I personally think the above is the marketing strategy of overlooking the simple style,
and finally to

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