MarketiingPlanofLephone.doc

Contents1. SWOT Analysis -21) Opportunities -22) Threats -33) Strengths-44) Weaknesses-42. Mrketing Srategy-41) Mrket Sgmentation-42) Mrket Targeting-53) Differentiation and Positioning-63. Marketing Mix-61) Product Strategy-62) Price Strategy-83) Place Strategy-84) Promotion Strategy-91. SWOT Analysis1) Opportunitiesa.Booming Smartphone Market Since the mobile phone industry has undergone great changes, a mobile phone is not all about telephoning any more, instead, it has turned into a small integrated digital product. In a word, mobile phones are becoming smart, networking and multifuctional.First of all, the market share of smartphones will hold 20% all over the world in 2013, according to a report issued by Strategy Analytics, a market research firm. Whats more, it was estimated that the sales of phones would be 80 million in the later half of 2010, and smartphones would be 13 million around the globe. And below is a table showing the sales of smartphones in China. As we can see, smartphones have become a major choice among consumers.Sales of Mobile Phones in China (unit:million)2010Q12010Q42011Q1All the mobile phones5502.6637866743G phone611.315001907Proportion of 3G phone11.10%23.50%28.60%Data resource：Analysis; Tabulation：consumption information investigation insititution on the InternetThe phone market was so prosperous, especially the smartphone market, that Lenovo launched lephone in May 2010 to fulfill the needs of consumers.b. Massive Distribution ChannelsThe competitive advantage on ditribution channels is a superpower that Lenovo can compete against the foriegn brands, since Lenovo has already achieved a massive distribution network in Chinese domestic market. When lephone made its debut in the market, Lenovo employed all the distribution channels to distribute lephone and there were 5200 stores involved, including 1600 China Unicom subsidiaries and 3600 distributors of Lenovo. With such large-scale distribution channels, lephone rapidly covered the smartphone market to meet the huge demand of consumers.c. The price of lephone is attractive to target consumers.People aged 18-35, especially the white-collars, people in working class and university students, are the target consumers of smartphones. Lephone priced 2899, which is about half price of iphone, and if consumers charge phone bills in advance, they can get a lephone with less money. So lephone is very attractive to these target consumers who have a strong sense of fashion.2) Threatsa. Fierce competition in mobile phone marketSince China is the biggest mobile phone market in the world, lots of phone manufacturers compete in it. And the competitors of Lenovo are not only the foreign brands,which take up 88.1% of the market share, but also other domestic brands and even many smuggled phones and counterfeit phones. Data source: consumption information investigation insititution on the InternetBelow is a table showing the top 20 mobile phones that are well-received among consumers. We can see that foreign brands are taking the lead, and there is also a fierce competition among domestic brands. However, Lenovo, ranking 12, still need to improve its phone brand.1Nokia 6Motorola11Dopod16Tianyu2iPhone7Blackberry12Lenovo17Zhongxing3Sumsung8Oppo13BBK18Jinli4HTC9LG14Sharp19Philipe5Sony10Meizu15Cool20HuaweiData source: /buzz/shoujipinpai.html; date: 2011-6-10a. Fierce competition in smartpphone marketAmong the most popular brands of smartphones, iphone is the absolute leader with its unique design and excellent quality. Besides, Nokia, Sumsung and Sony also achieve serious market share. Moreover, Dell and Acer launch their smart phones with Android in order to cut a slice of the smartphone market too. And HP made a bold aquisition of Palm with US$ 1.2 billion, which is the manufacturer of smartphones. The competition in smartphone market is so fierce that lephone, as a follower, still has a long way to go before finally earning its reputation.3) Strengthsa. Lenovo is a famous brand.Once being a sponser to Beijing Olympic Games in 2008, Lenovo promoted its brand to consumers all over the world successfully. And since Lenovo has been paying much attention to its oversea PC business, it has already become a international PC brand. Labelled with Lenovo, lephone can achieves its market share more easily.b. Lephone is equipped with hardware and software of high quality.c. Lephone has 3G services.Since China released the 3G licence in late 2008, 3G WCDMA services have been in a huge demand. d. Lephone has a huge touch screen and a qwerty keyboard.According to a market research, the touch screen is specially popular, which can be seen from the chart below. Data source: consumption information investigation insititution on the Internete. It is well-known to consumers that Lenovo is an enterprise with high ethical valus and a strong sense of mission. 4) Weaknessesa. The hardwares of lephone are not so much well-designed. The power key is so small that it can not be easily pressed. The endurance of battery is not satisfactory. Pixel is comparatively low. The resistive analog touch screen does not support multi-peer operation. The touch screen is not sensitive.b. Lephone has no unique operating system.Smartphones of Sumsung, Sony, Dell and Acer are all equipped with Android, so lephone does not have absolute advantage on the operating system since it is also equipped with Android. While iphone has its own operating system, which is a domineering advantage in the smartphone market.c. Android has no satisfactory stability and compatibility.d. Lephone does not have unique phone chip and application resource file. e. Lenovo is lack of the experience of facing the complex international economicsituation and it should develop its ability to handle risks.2.Marketing Strategy1) Market Segmentation For Smart Phone MarketAge18-2223-3030-4040+Family life cycleYoung, singleYoung, married, no childrenYoung, married with childrernOlder, married with childrenIncomeUnder RMB 2,000 per monthRMB2,000RMB4,000per monthRMB4,000RMB8,000per monthRMB8,000 and overper monthOccupation or statusUnivesity studentsMiddle class or white-collarsUpper classBenefit variableEconomy, ConvenienceEconomy, design,function,brandEconomy, design,function,brand, qualityBrand quality,Sevice function,design, ConvenienceReadiness stageUnawareInformedInterestedEnthusiasticLifestyleSurviverStriverAchiever2) Market TargetingThe target consumers are university students, aged 18-22, and white-collars or people in the working class, aged 23-40.Lephone is featured with ten highlights: a big touch screen, a speed input system, dynamic weather reports, throbbing contact lists, high-definition vedios, automatic delivery of headlines, multitask processing system, the networking of Internet, receiving and dispatching of mails and a qwerty keyboard. All of these functions fully cater to the needs of young people for their studies or work.The discription of target consumers:ItemsWhite-collarsUniversity studentsWorking classScaleThe number of white-collars is increasing; their demand for smartphones is growing.The number of university students is increasing; their demand for smartphones is growing.Their demand for smartphones is growing.PsychologyA smartphone has been an necessary part of their work; they have a strong sense of fashion.The urge to keep up with the Joneses is a general phenomenon among university students; a smartphone can satisfy their needs for fashion and entertainment.A smartphone has been a necessary part of their work; meanwhile they also have a moderate sense of fashion.Preferred functionsPushmail, microblog, mobile television, QQ, and business.QQ, renren community, happiness community microblog, and music.QQ, business, vedio, and music.Purchase behaviourThey buy smartphones to follow the fashion; the price of lephone is acceptable and they tend to buy it in entity shops.For the students whose families are comparatively rich, the price of lephone is acceptable in contrast with iphone and they tend to buy it in entity shops or online.Lephone is a good choice to show their decency and the price is not that high.They tend to buy it in entity shops.3) Differentiation and PositioningLephone, priced 2899, is positioned in the middle end market in China. Since the majority of people in China is in the middle class, so to some extent, lephone has a broader market than iphone. In addition, with Lenovos domestic domince and its cooperation with China Unicom, there is definitely a huge potential market for lephone. The following diagram was the top ten mobile phones of Chinese brands in 2010, and lephone was the number one with obvious advantage. From this diagram, we can sense the huge domestic dominance of Lenovo.Data source: consumption information investigation insititution on the Internet3.Marketing Mix1) Product Strategya. The selling points of lephone A big touch screen A speed input system Dynamic weather reports Throbbing contact lists High-definition vedios Automatic delivery of headlines Multitask processing system The networking of Internet Receiving and dispatching of mails A qwerty keyboard.ItemsIllustration TpyeSmartphone Time to market salesMay,2010Price RMB 2,899（retail）appearanceBar phoneColor Black and redVolum 1206112mmWeight 165gScreen AMOLED color screen; 480800pixel(WVGA)，3.61inchesOperating system Android2.2processorsnapdragon QSD8250Memory 512MB RAM,512MB ROMAppendices lithium battery（1500mAh）,AC adapter,charger, earphone, direct cable, disk, rubber, user manuals, warranty, service instrution, certificate of quality, MicroSD cardTime for telephoningGSM 7.5h, WCDMA 5hStandby time400hSpare batteryLasting for 20-30 minutesb.Product lify cycle: lay more attention to embryonic stage and mature stage. Embryonic stageIn this stage, Lenovo employed various distribution channels to promote lephone, and it advertised on different medias to build a good image of its brand, which made potential consumers informed of lephone so quickly that lephone has become a household. Mature stageNow lephone is in the growth stage, efforts that Lenovo has made when it was in the embryonic stage can still stimulate consumers to buy lephone, however, when it steps into the mature stage, Lenovo should expand its distribution network, such as setting up more franchised stores and launching more promotion campaigns, in order to arouse more desire of consumers.In addition, Lenovo should devote to developing a new generation of lephone so as to stimulate more potential consumers.2) Price Strategya. Bare mobile phone is priced RMB2899.b. Products combination pricing strategy Lenovo cooperates with China Telecom. If consumers buy lephone at China Telecom service center, they can get many packages. Lenovo cooperates with China Unicom. If consumers charge phone bills in advance, they buy lephone with less money.Monthly fee（RMB）6696126156186226286386586886Retail price（RMB）2899The price difference to fill（RMB）2199199912991099000000Phone bills in advance（RMB）70090016001800289928992899289928992899The ammount to return monthly（RMB）293766751201201201201201203) Place Strategya. Distribution channel Large chain stores such as Suning and Guomei. Lenove launches promotion campaigns at weekends or on holidays to increase its brand popularity. Franchised stores are responsible for both sales and services of lephone. On one hand, it can save rent and space, on the other hand, it can help improve brand awareness. Lenovos franchised stores of PCs also have lephone for sales. Service centers of China Telecom and China Unicom also have lephones available, and lephones can be sold with many favorable packages. It can help have more consumers informed of lephone. Online stores such as Taobao, Paipai. Since shopping online has become a prevailing distribution channel, online sales of lephone is huge. University representatives. University students are target consumers, so university representatives will absolutely help increase the sales of lephone and improve its brand awareness more directly among university students.b. Distribution Channel Management Motivate staff. Provide more benefits to staff, especially in the embryonic stage, for they ar