Lenovo Marketing

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Lenovo Acquisition Analysis

Product/Brand decisions: Some of the issues Lenovo had to deal with in the acquisition of IBM was how to capitalize on the marriage of brands and how to win corporate respect with the Lenovo brand. The acquisition allowed Lenovo to move quickly into the international marketplace. Given that IBM had one of the most trusted brands around the world, this allowed Lenovo to build on past IBM’s reputation. But Lenovo only had the right to use the IBM logo for five years so they wanted to leverage that asset. The media perception of Lenovo’s association with the Chinese government was also concerning to Lenovo’s executives since firms with this type association tend to get low marks for
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This became part of their strategy of a ‘one-two punch’: building up the Lenovo master brand and continue to strengthen the ThinkPad product brand. Just before the acquisition Lenovo had negotiated an Olympic sponsorship in order to introduce the world to the brand. They would be able to use the Olympic logo for marketing and promotion but this arrangement would come at a hefty price of $80 million to start and another $160 for the additional advertising requirement; a large sum for a company with $3.2 billion in sales. Lenovo would also be able to continue to use the IBM logo for five years as part of the acquisition which they intended to leverage. The promotion strategy led to a three phase advertising plan. First, they ran a worldwide campaign where each ad ended with a mention of the ThinkPad instead of Lenovo to reassure customer and maintain the ThinkPad momentum. The second campaign was labeled ‘ThinkPad Unleashed’ which ran during the Olympics to emphasis that the ThinkPad was being made even better. The third phase stressed that Lenovo stood for innovation which is how they intended to differentiate themselves from their competitors. In order to continue to raise awareness, the marketing manager studied brand-tracking research from 10 countries every quarter. They would chose product

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