Group 32: Project Proposal
“Lenovo & UNICEF”
Hanna Bringle, Ivanna Biloholova, Anastasios Laganis, Carl Hallberg
FE1302 Principles of Marketing, SBS, Stockholm University
Prof. Susanna Molander
20 September 2021
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1. Executive summary ....................................................................................3
2. Current marketing situation for the brand .................................................3
2.1 Market ...............................................................................................................3
2.2 Products .............................................................................................................3
2.3 Distribution .........................................................................................................4
2.4 Promotion ...........................................................................................................4
2.5 Competition ........................................................................................................4
2.6 SWOT Analysis ...................................................................................................5
3. Social cause situation .................................................................................5
4. Objectives and issues .................................................................................6
5. Cause related marketing strategy ..............................................................6
5.1 Market segmentation ...........................................................................................6
5.2 Target Market .....................................................................................................6
5.3 Positioning ..........................................................................................................7
5.4 Message ............................................................................................................7
5.5 Cause Related Marketing Practice ........................................................................7
6. Critical re ections .................................................................................................8
7. Bibliography .........................................................................................................9
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1. EXECUTIVE SUMMARY
Lenovo, as a multinational company with its headquarters in Hong Kong, serving more than 180 markets around the world, is
collaborating with UNICEF to create a marketing project to address children's access to primary education in Africa.
Lenovo offers a large variety of products, ranging from laptops and computers primarily, to tablets, smartphones and smart home gadgets
and software services, offering competitive prices and good quality that confirms the fact that Lenovo’s profit reached the highest level
in two years with a net income of US$260 billion (512% more than last year). To promote its products Lenovo organizes various
advertising campaigns, conferences, differentiates its products from competitors’ products, implements new production strategies and
technological solutions, and actively cooperates with influencers.
Meanwhile, the UN non-profit organization UNICEF, assessing the real situation today, reports that more children than ever
before are enrolled in school, yet a lot of them have problems learning. There are many factors making learning difficult for these
children, one of them being inadequate learning materials. UNICEF proclaims that the world needs to reimagine their education, and the
digital tools are essential for modern education. That is reading, writing, math and other problem-solving skills which accommodate
people in their work and future business.
Engaging consumers in products and focusing on access to education is one of Lenovo's and UNICEF’s main goals during this
project. Choosing a socially responsible target marketing strategy Lenovo should consider the following buyers like those who have a
high level of education and are sensible to social causes and realize the value of goodwill. Besides, ensuring an effective advertising
campaign in co-operation with UNICEF to attract business markets to address this issue.
To summarize, the project’s message is clearly transmitted to the consumer, which is not other than Lenovo is willing to assist
with the education of children in African communities, is something that absolutely reflects the company’s values. “Education for all”
and “Smarter keeps the world connected” (CES 2021) are two of Lenovo’s slogans that obviously convey these values.
2. CURRENT MARKETING SITUATION FOR THE BRAND
2 .1 M A R K E T
Lenovo is a multinational company with its headquarters in Hong Kong. It was founded in 1984 and now serves more than 180
markets worldwide. The company creates access to technology in such directions as education, technology, healthcare, and agriculture to
individuals, societies, companies and the population worldwide as a whole. They follow a competitive marketing strategy by offering
different product series for different use, targeting a vast group of people between the ages of 15 and 35. Through customer research and
learning what their customer wants, Lenovo has adapted their products accordingly. Among other things, they have found that people are
spending more time on their devices, buying more, and upgrading more often. Fulfilling their customers’ increasing demands through
innovative technologies and products is Lenovo’s clear path and responsibility.
2.2 PRODUCTS
Lenovo offers a large variety of products, ranging from laptops and computers primarily, to tablets, smartphones and smart home
gadgets and software services. The company offers competitive prices and has great sales which is clearly illustrated by Lenovo’s gross
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profit margin for 2021 (16.16%), and the latest financial statements for the 4th quarter of 20/21, as Lenovo's profit reached the highest
level in two years with a net income of US$260 billion (512% more than last year.)
Lenovos main product lines are:
ThinkPads - Business use
•
•
YOGA - Ultrabooks - Professional use
•
ThinkBooks - Light business use
•
Gaming
•
IdeaPads - Personal use
•
Chromebooks - Educational use
2.3 DISTRIBUTION
Lenovo’s products can be purchased both from their own operating shops selling directly to its consumers or on Authorised resellers.
2.4 PROMOTION
Lenovo promotes its products and services by organizing different presentations, collaborations, advertising campaigns and
implementing the basic ideas of its strategy.
Lenovo marketing strategy are:
1. Strong social media presence and interaction with its consumers
2. Variety of products in different product series to accommodate the different needs of its customers
3. Its products differentiate from its competitors’ products (YOGA-foldable laptops, ThinkPad Carbon-extremely lightweight)
4. Influencers are used for innovative/ artistic advertising of products from different product lines on various platforms (eg. TikTok,
Youtube). (First Link). {Table}
5. New promotion strategies were introduced in Lenovo Trade World 21 conference
2.5 COMPETITION
The company views Apple and Samsung as their main rivals going forward, but besides their opinion statistics says otherwise to
who they should be more concerned about. According to Marketing91 (2018), Lenovos top 10 competitors are: HP, Dell, Apple, Asus,
Acer, Sony, Microsoft, Samsung, Toshiba and LG. Dell, HP, Asus, Samsung and Acer are direct competitors of Lenovo in the market.
Lenovo ranks 4th in the price ranking among competitors. The most competitive advantage today for Lenovo is products with high
quality and low price. In contrast with Apple, ranked number 3, they sell them at premium pricing but with quality and user friendliness
and accessibility to accommodate. Samsung ranked 8th, based in South Korea, its “product and services include semiconductors,
telecommunications equipment, medical equipment ... “ a broad range in short.
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2 . 6 S W O T A N A LY S I S
3. SOCIAL C AUSE SITUATION
The UN non-profit organization UNICEF reports that the world is facing an educational crisis. More children than ever before are
enrolled in school, yet a lot of them have problems learning. There are many factors making learning difficult for these children, one of
them being inadequate learning materials. Unfortunately, a majority of children around the world are on the wrong side of the digital split
and schools are not provided with digital teaching materials.
“We urgently need to reimagine education. A modern education should build and accredit basic skills – reading, writing and math – as
well as skills in problem-solving, creativity, critical thinking that young people need for work, to start a business and to engage
productively in their communities. The availability and potential of technology means that digital learning should be part of a basic
basket of essential services for every child and young person.” -UNICEF
Meanwhile, many children around the globe are not provided education at all. According to a recent research study published by
UNESCO in 2018, 32.2 million children of primary age were out-of-school in Sub-Saharan Africa. It was the highest indicator among
other regions. So, the cause of access to primary education in Sub-Saharan Africa is obvious. This contradicts what is stated in article 28
and 29 of the Convention on the Rights of the Child, written by the UN, where they write that “every child has the right to learn”.
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4. OBJECTIVES AND ISSUES
As Lenovo will be working with UNICEF in this project, they'd be the one most knowledgeable in the area of Africa. According
to UNICEF as stated prior, the world needs to reimagine their education and that digital tools are essential for modern education. That is
reading, writing, math and other problem solving skills which accommodate people in their work and future business. A prior initiative
would be the solution to this problem, named Giga. In September 2019, UNICEF and ITU launched Giga whose objective was to
connect every school to the internet. Despite the problem of COVID-19, the initiative is hoping to create stronger infrastructure for the
future after the pandemics ends by using connectivity.
There are about three things they list that this initiative tackles on: critical software and content, broadband connectivity, digital
financial services. The former is handled through new innovations in software, learning systems etc which all are feasible to deploy and
tailored to the language in the area. For the broadband connectivity, they'd be using a strategy to map the said schools and to improve the
programs so “to bring together diverse public and private funding” and other positive aspects to this end. For the latter, they will make
sure the procedure will go without any problems by using the public blockchains to monitor and manage payment. This of course goes
hand in hand with the government and provider in the exploration of connectivity online and such.
5 . C AU S E R E L AT E D M A R K E T I N G S T R AT E GY
5 .1 M A R K E T S E G M E N TAT I O N
Lenovo’s goal is to create an effective market segmentation, and then use the available tools to ensure efficient product
promotion and customer engagement. In line with Lenovo's international position, creating clusters of countries can help segment
markets with consumers who share the same average income, are geographically similar, and have a common influence of cultures on
their customer behaviour.
Regarding this Cause Related Marketing strategic cooperation between the tech-giant Lenovo and the non-profit institution
UNICEF is shaped around the needs of the market created by young children in-need of primary education in the region of Africa. This
clearly illustrates the market segmentation that is being enforced, which is geographical and demographical.
Geographical, because emphasis is going to be given to the region of Africa, and demographical because the main target group
is young children in primary school age needing appropriate education that fits their age group.
In addition, corporate consumers play a crucial role in market segmentation. Business buyers can be segmented on the same
principle as consumers, but the key aspects are approaches to loyalty and stability in providing the business.
5.2 TARGET MARKET
Lenovo, as a multi-billion technology company, serves a large variety of customers from different educational and cultural
backgrounds. Its diverse range of products has significantly assisted its business success as there is always a right product suitable to the
needs of each customer.
Engaging consumers in products and focusing on access to education in Africa is one of Lenovo's main goals during this
project. Gladly their marvellously great variety of products makes that target market-aim, a quite realistic one.
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Choosing socially responsible target marketing strategy Lenovo should consider attention on the following factors:
1.
Consumers who have a high level of education and are sensible to social causes and realize the value of goodwill.
2.
Develop an emerging market to raise the awareness of loyal consumers on this issue.
3.
Ensuring an effective advertising campaign in co-operation with UNICEF to attract business markets to address this issue.
5.3 POSITIONING
As mentioned above, Lenovo with its profusion of products, gives leverage to the corporation to achieve an outstandingly distinctive and
desirable marketing position. It can be said that this marketing position is distinctive because of the combination of excellent quality
products at low prices with the groundbreaking marketing practises that Lenovo always chooses to enforce, which leads to achieving
superior marketing margins.
In concise Lenovo’s practises in marketing positioning should include:
1.
Preliminary analysis of the percentage of sales in different target markets will show consumers' awareness of products and their
perception of it.
2.
Emphasizing the importance of interaction with customers to solve social problems will give an advantage over competitors.
3.
Providing free and transparency access for customers and commerce to track the flow of finances for an educational project in
Africa (creation of free applications and support services)
4.
One of the main advantages over competitors is the quality of products and low price.
5.
Providing consumers with more information about Lenovo for their further successful identification with the company and its
performance.
5.4 MESSAGE
The message is clearly transmitted to the consumer, which is not other than Lenovo is willing to assist with the education of
children in African communities, is something that absolutely reflects the company’s values. “Education for all” and “Smarter keeps the
world connected” (CES 2021) are two of Lenovo’s slogans that undoubtedly convey the main values of this successful corporation. Thus,
Lenovo, as a company that realizes corporate social responsibility, is working with a well-known non-profit organization so as to attract
greater attention of customers regarding social problems and offer effective interaction with consumers on how to solve the educational
issues in Africa.
5.5 C AUSE REL ATED MARKETING PRACTICE
This CRM practice will include Lenovo & UNICEF.
Now with the coronavirus pandemic, one more obstacle is standing in the way of young children accessing primary-age
education in African countries, something which is highly alarming and rather concerning, that being poverty. Lenovo is willing to help
by providing the necessary technological gadgets to young kids in cooperation with UNICEF. In turn, Lenovo consolidates its image and
brand’s reputation on the world market, as a company with a strong position towards socially responsible operations.
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An advertising CRM transactional program is going to be created by Lenovo about the ThinkPad laptop series. From each
ThinkPad unit sold, a percentage of 5% is going to be acquired and sent to a separate fund for the special and social cause of education of
young elementary-school-age kids in the African continent.
By specifying the social cause that the corporation (Lenovo) is collecting these funds, will create a strategic marketing ideal for
the image of the company to the consumer, increasing sales by also enforcing an issue focused program.
UNICEF in cooperation with Lenovo, will take over the distribution of Lenovo Chromebook Laptops, other equipment that
may be needed to facilitate a primary school, and assist children who are currently out-of-school to attend school. The necessary capital
will be provided by the money collected and available for use in Lenovo’s fund.
Regarding the advertising aspect, customers will get informed about that program by relevant posters and ads in Lenovo and
Authorised Resellers stores, by online commercials created in cooperation with influencers across different platforms, and by advertising
ThinkPad laptops on university campuses, (eg. in our case, SUS could take over that responsibility) urging students to consider buying a
Lenovo laptop, as they would simultaneously help with the fundraiser and also equip themselves with a suitable gadgets for their studies.
6. CRITICAL REFLECTIONS
There are various issues that could stand in the way of creating an equitable CRM campaign, ranging from internal corruption
either in the for-profit or the non-profit organization, to attempts of money laundering. However, not only illegal actions could be done
and significantly hurt, yet alter the brand’s image. The more common problem with cause related marketing is the reception of its launch.
That is to say how the public responds to it and the potential backlash.
A corporation could risk being seen as desperate for attention by trying to socially please and lure its customers. For Lenovo
specifically, they could have problems with product recalls as they have had in the past (1st weakness - SWOT analysis).
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7. B I B L I O G R A P H Y
1. Bhattacharya, C. B., and Sankar S. (2004), "Doing better at doing good: When, why, and how consumers respond to corporate social
initiatives.” California management review 47(1): 9-24
2. Berglind, M., and Nakata C., (2001), "Cause-related marketing: More buck than bang?." Business Horizons 48(5): 443-453.
3. Kemper, J. A., and P. W. Ballantine, (2019), "What do we mean by sustainability marketing?." Journal of Marketing Management 35
(3-4): 277-309.
4. Principles of Marketing, Scandinavian edition, 3rd Edition, P. Kotler, G. Armstrong, A. Parment
5. Marian Burk Wood, Essential guide to marketing planning, 2010, pp.72-73
6. (https://doc.irasia.com/listco/hk/lenovo/annual/2021/ar2021.pdf
7. https://mpk732t12016clusterb.wordpress.com/2016/05/16/the-distribution-of-lenovo/
8. https://www.marketing91.com/swot-analysis-lenovo/
9. https://www.marketing91.com/lenovo-competitor-analysis/
10. http://uis.unesco.org/sites/default/files/documents/new-methodology-shows-258-million-children-adolescents-and-youth-are-outschool.pdf
11. https://www.coolblue.nl/en/advice/differences-lenovo-product-series.html
12. https://www.lenovo.com/us
13. https://iide.co/case-studies/lenovo-marketing-strategy/
14. https://www.marketing91.com/marketing-strategy-lenovo/
15. https://tw21.lenovo.com/en/
16. Https://www.lenovo.com/us/en/about/diversity/
17. https://ycharts.com/companies/LNVGY/gross_profit_margin
18. https://iide.co/case-studies/lenovo-marketing-strategy/
19. https://www.lenovo.com/gb/en/lenovo/our-company/
#:~:text=Lenovo%20is%20one%20of%20the,PCs%20and%20mobile%20internet%20devices.&text=Legend%20Holdings%20chan
ged%20its%20name,the%20PC%20industry%20in%201981.
20. https://asia.nikkei.com/Business/Companies/Lenovo-eyes-adding-production-outside-China-to-skirt-trade-row2
21. Nikki Sun, (2019) “Lenovo eyes adding production outside China to skirt trade row”, Nikkei Asia: https://www.strategybusiness.com/article/00274
22. William J. Holstein, (2014), “Lenova Goes Global”, Strategy + Business
23. Daxueconsulting, (2021) https://daxueconsulting.com/lenovos-global-success/
24. https://www.unicef.org/reimagine/education
25. https://www.unicef.org/innovation/giga
26. https://www.unicef.org/documents/effectiveness-digital-learning-solutions-improve-educational-outcomes
27. SWOT-analysis Sources: https://www.marketing91.com/swot-analysis-lenovo/
https://notesmatic.com/lenovo-swot-analysis-2019/
https://www.mbaskool.com/brandguide/it-technology/4349-lenovo.html
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