NGUYEN TRAI UNIVERSITY

BTEC HND IN BUSINESS (MANAGEMENT)

ASSIGNMENT COVER SHEET

NAME OF STUDENT
REGISTRATION NO.
UNIT TITLE Unit 19 Marketing Planning
ASSIGNMENT TITLE Lenovo Laptops
ASSIGNMENT NO 2 of 2
NAME OF ASSESSOR MBA Nguyen Nhu Quynh Trang
SUBMISSION DEADLINE 30/6/2014

I, _________________________ hereby confirm that this assignment is my own work and not copied or
plagiarized from any source. I have referenced the sources from which information is obtained by me
for this assignment.

________________________________ _________________________

Signature Date

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FOR OFFICIAL USE
Assignment Received By: Date:

MKT Plan A2 QCF April 2014 NTU 1

 Unit Outcomes

Evidence for the Internal

Outcome Feedback Assessor’s decision
criteria Verification
First Re-
attempt work

Write a marketing
plan for a product 3.1
or a service

Explain why
marketing planning
3.2
is essential in the
organisation
Be able to
formulate a Examine
marketing techniques for new
3.3
plan for a product
product development
or service
Justify
LO3 recommendations
for pricing policy, 3.4
distribution and
communication mix

Explain how factors

affecting the
effective
implementation of 3.5
the marketing plan
have been taken
into account

Explain how ethical

issues influence 4.1
marketing planning

Understand Analyse examples

ethical issues of how
organisations 4.2
in respond to ethical
Marketing issues

LO4
Analyse examples
of consumer ethics
and the effect it has 4.3
on marketing
planning.

Merit grades awarded M1 M2 M3

Distinction grades awarded D1 D2 D3

MKT Plan A2 QCF April 2014 NTU 2

Assignment

( ) Well-structured; Reference is done properly / should be done (if any)

Overall, you’ve

Areas for improvement:

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(Oral feedback was also provided)

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MKT Plan A2 QCF April 2014 NTU 3

 I. Introduction
Lenovo Group Ltd. is a Chinese electronics company headquartered in Beijing, China,
and Morrisville, North Carolina, United States. It was established in Beijing in 1984
as Legend and was incorporated in Hong Kong in 1988. The company’s products consist of
mobile phones, laptops, desktops, tablets, electronic storage devices,… In the second quarter of
2013, Lenovo was the world's largest personal computer vendor by unit sales.

Today, Lenovo is a US$34 billion technology corporation with more than 46,000 employees
(including joint ventures) in more than 60 countries serving customers in over 160 countries. In
addition to main facilities in Beijing, Morrisville and Singapore, Lenovo also has research
centres in Shanghai, Shenzhen, Xiamen, and Chengdu (China), and Yamato in Kanagawa
Prefecture (Japan). (Lenovo Official Website, 2014).

In Vietnam, Lenovo has a majority of customers. Lenovo has to compete with other rivals such
as HP, ASUS, Samsung,etc, in Vietnam market, and this requires Lenovo to have appropriate
marketing planning as well as analyzing Vietnam market to take the advantages. This report
will discuss this issue.

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 II. Report
LO3. Be able to formulate a marketing plan for a product or service

3.1. Write a marketing plan for ‘Lenovo IdeaPad Flex 14’ in Vietnam

Lenovo started from 1984 with $25.000 in China under the name ‘Legend Holdings’. In 1988,
it was established in Hong Kong and grew to the biggest PC firm in China. Its name was
changed to Lenovo in 2004. Currently, Lenovo is one of the world’s leading companies which
manufactures and distributes computers and portable devices (Lenovo Official Website, 2014).

Lenovo always has to compete with its rivals such as ASUS, Acer, Samsung, and so on.
Therefore, it has to have its own plans and strategies to take the advantages in the market.
Marketing plan is crucial for the company. It consists of steps that Lenovo should implement to
achieve its business marketing objectives. Analysis tools like SWOT, 5 forces and STEEPLE
should be used for investigate factors which affect the firm’s operations. To achieve the goal of
sales for Ideaflex 14, Lenovo has to have appropriate marketing plan.

 Product description

- Core product: Lenovo IdeaFlex 14 brings full basic benefits to the users like Microsoft
Office tools, music and video player, Internet surfing, and so on. Customers can use
Lenovo IdeaFlex 14 to satisfy their work, study, and entertaining because it offers full
of needed features.

- Actual product: IdeaFlex 14 belongs to Lenovo’s Flex series. Lenovo brand name is
popular and well-known in the world. Lenovo products are trusted and used by a lot of
consumers. It has special design that its screen can flip 300 degree and is able to switches
from laptop to stand mode. Lenovo Ideaflex 14’s configuration is showed in the table
below:

Brand name  Famous brand name Lenovo

 Intel® Core™ i7-4550U Processor
 Intel® Core™ i7-4558U Processor
 Intel® Core™ i7-4500U Processor
 Intel® Core™ i5-4250U Processor
 Intel® Core™ i5-4258U Processor
 Intel® Core™ i5-4200U Processor
Cores
 Intel® Core™ i3-4100U Processor
 Intel® Core™ i3-4158U Processor
 Intel® Core™ i3-4010U Processor
 Intel® Core™ i3-4005U Processor
 Intel® Pentium® 3556U Processor
 Intel® Celeron® 2955U Processor
 Window 8
Operating system
 Window 8 pro
Display resolution Screen 14 inch HD (1366 x 768) display with 10-point multi-touch
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 technology
 9 hours for Windows 8 Idle
Battery
 6 hours for FHD playback
343.2 mm x 250.9 mm x 6 mm ~ 21.5 mm (13.51" x 9.87" x 0.23" ~
Dimension
0.84")
 USB 3.0 and 2.0
Connectors  2x1 card reader (SD/MMC)
 HDMI

Features

Can switch from laptop mode to stand mode. Laptop mode offer
sufficient features for users to manipulate like working with spreadsheet,
Dual-mode words, and so on. With stand mode, users can manipulate easier and
more convenient with touch. Stand-mode mainly focuses on touch-
applications like games, chat, watching video, etc.
AccuType This keyboard helps users type easier and reduce the mistakes.
Keyboard
Stereo Speakers The Flex 14's speakers offers rich stereo sound, while Dolby Advanced
With Dolby® Audio provides great audio experience with high quality.
Advanced Audio™
Simple OneKey® Recovery integrated in IdeaFlex 14 helps the users to backup
Maintenance and recovery data rapidly.
(Lenovo, 2014)

Lenovo always has high opinion of caring for their customers. Thus, all products as well as
IdeaFlex 14 are warranted in one year using. Customers can contact Lenovo via its official
website if they have any problems with their devices.

- Augmented product: Lenovo always offers customer care and service with high quality.
Each product of Lenovo as well as IdeaFlex 14 is warranted in 1 year from the day of sale.
Service staff are trained to serve customers with enthusiastic attitude and satisfy them by
professions. This is a very good strategy of Lenovo to compete with other rivals because
besides quality and price of products, clients also consider the service after sales of the
company. by giving customers great service quality, Lenovo can gain trust from loyal
customers and attract more clients.

 Product preview: Lenovo IdeaFlex 14 is used as other Lenovo PCs but it has a unique
characteristic that provides dual-mode for users. Users can use this type of laptop for
storing documents and data, composing words or manipulating other tasks like excel,
power point, etc, or using software. For people who are living in currently modern life, the
Internet is indispensible in their life. PCs support people to access the Internet to update
daily information, communicate with others, watch online films and so on. Besides that,
with good configuration, IdeaFlex 14 provides users a great gaming experience. It is a
potential product which convenient for both PC games and tablet games.

 Product cycle life:

Lenovo Ideaflex 14 is in maturity progress of product life cycle.

Product Famous brand products, diversity of products types.

MKT Plan A2 QCF April 2014 NTU 6

Customers Has lots of loyal customers
Marketing Needs high cost for marketing to continuously enhance products to be more
popular and attract more customers.
Competitors several rivals like Acer, Asus, Samsung because they also have laptops with
touch-screen which can revolve and foldable

 Micro and macro environment: to have appropriate marketing plans, analyzing micro
and macro factors that affect the company is very vital. The analysis of these aspects are
adapted from assignment 1 and are analyzed by tools like SWOT, 5 forces, and STEEPLE.

a. SWOT

Strength
 Good quality of products and service.
 High reputation and good traditional
brand.
 Diversity of product lines.
 Has worldwide marketing strategies.
 Good public relationship.
Opportunity
 Re-buying IBM division made Lenovo’s 
brand increase to much higher level.
 45% Vietnam population have quite high 
income (Vinaresearchgroup,2013)  Risks of delivery from loss or good
 can afford Lenovo’s computers.
 Cheaper computers of other brands in the
Weakness
 Few products’ styles.
 Poor marketing sources, single marketing
channel.
 Do not have manufacturing factory in
Vietnam.
 Distributions located mainly in Hanoi and
Hochiminh City.
 Price is still quite high.
Threat
Rapid change in technology requires
constant updates.
Fluctuate foreign exchange rate.
damages.
markets such as ASUS, ACER, and so on.
 Has to compete with other high brand
name like Apple, Samsung, etc.
(wenku.baidu.com,n.d)

From the table above, it is clear to see that Lenovo Vietnam has a lot of strengths. Its brand
name is famous and lots of people know about it. Their company image is good, so Vietnamese
customers can trust and use their products. In Vietnam market, Lenovo has opportunity to sell
their products as well because 45% of Vietnamese are people who have quite high earnings so
that they can be able to buy Lenovo’s computers. IdeaFlex 14 is the product that towards
people who have high income and would like to experience both PCs and tablet features in one
device.

However, Lenovo does not have diverse products designs. Therefore, they must to work more
on creating new distinct designs for their products to attract customers. Moreover, Lenovo just
have distribution agents in 2 main big cities and it causes inconvenience for customers.
Delivery risks like wrong address or loss might occurs and damage the company’s reputation.
Lenovo needs to have plans and strategies for these shortages.

In the competitive market, Lenovo has to compete with other computer brands.. Although
Lenovo is famous, the other brands are also well-known. Other company like Asus, Acer, and
Samsung also have laptops with touch-screen which can be foldable and flipping. Therefore,

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Lenovo needs special, unique and appropriate tactics in producing products and marketing to
battle with rivals.

b. Porter’s 5 forces

Marketing
Definition Impact on Lenovo Vietnam
force
 New companies join in the There are some other new computer-
market and create enterprises join in the market. However,
competitiveness of price. Lenovo is a big and reputed brand.
 Each enterprise needs to Lenovo has lots of loyal customers and
raise their capital to compete they are striking to expand their business
Threat of new with their rivals. more in more markets. Moreover,
entrants  New company needs a Lenovo products are good and their
period of time to build service is also professional. Therefore,
reputation to consumers. even other new entries join in the market
and create the pressure of price,
customers will still trust and use
Lenovo’s products.

Other products that have the Lenovo has series of products lines that
same features and functions as own similar functions. Therefore,
Threat of another one Lenovo offers various products which
substitute (valuationacademy.com, n.d) perform the same functions to customers
products and the clients can have diversity of
 results in the higher elastic in choice.
demand for products
Customers create pressure to Lenovo operates over 160 countries.
enforce the enterprise to decreaseThey have different criteria and service
the price of the product. This for different regional customers. Lenovo
leads to the reduction in profit of
always listens to their customers and
the company tries to meet their expectation. Lenovo,
(businessdictionary.com,n.d) sometimes, creates sales events, and
always improve and enhance customer-
service quality. With good product along
Bargaining with rational prices and enthusiastic
power of service, Lenovo becomes a reputed
customers computer brand in customers’ eyes.
Retail customers who buy products with
large quantity often have power in
bargaining the price. Lenovo has to give
them discounts based on the amount of
good they purchase. Because they buy a
number of goods, Lenovo has to consider
and accept their bargain.

Bargaining Suppliers have significant power Lenovo always strives to keep good
power of and influence than customers. relationship with their suppliers who
suppliers This causes the decrease in provide materials with rational price and
profits of the company through good quality. Thereby, they can have

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 higher price, lower quality of the
suitable sources to buy materials and
product or service, or raising negotiate some discounts. For example,
minor cost for products. Lenovo tries to bargain the price when
they buy a huge source of materials. This
(www.marsdd.com,n.d) helps Lenovo to gain more profit in their
manufacture.

Competition among enterprises Lenovo has a lot of big rivals such as

in the same industry will affect Apple, ASUS, Samsung, Sony, and so
their profits through the on. Lenovo often has to struggle with
reduction in product’s price, them through products, price, service,
increase in advertising and etc. Most computer companies have
service. good and processional service and
competitive prices of product because
(Jim Wilkinson,2013) they want to keep their loyal customers
Threat of
existing and attract more consumers. To beat
competitors these fearsome competitors, Lenovo has
to have strategies like having unique
design or adjusting price properly.
Ideaflex 14 is not unique laptop with
special features. Asus 1825Pt and Asus
T91Mt also have similar feafures.
Therefore, continuous innovation is
needed to be implemented.

The table above demonstrates how the five market forces affect Lenovo’s business. To operate
effectively, Lenovo has to have tactical actions and run their business to suit each situation and
period to prevent their clients to switch to other computer brands.

c. STEEPLE

Factors Impact on Lenovo

Social The modern life in Vietnam as well as other developed countries, computer
plays essential roles in work, study and entertaining. Vietnamese population
and lifestyle currently markedly affects the consumption of computers.
Almost all of workplaces, schools are equipped computers for work. In
addition, science and technology is more popular so that computer role will
be more important to human life. This leads to a big market for Lenovo to
sell their products.
Besides that, Vietnamese people are more active, sociable and open-mind.
Vietnam’s young population is about 40 million (Dang, 2013). They use
social network a lot. On the subject of Ideo.com.vn (n.d), the number of
Vietnamese using Facebook reached 12 million people in 2013. At home,
computer is more convenient for people to access to the Internet surpassing
other devices like Smartphone or tablet. Because its functions are sufficient
than those devices. Thus, computer is the best choice for people to use at
home. However, with the mobility of laptops, users also can bring their
laptop to café or other place to use.
 Lenovo can sell their computers well.
MKT Plan A2 QCF April 2014 NTU 9
 (blog.sina.com.cn, 2010)

According to blog.sina.com.vn (2013), Lenovo was established by 11

scientists worked in a governmental institution named Chinese Academy of
Science. Therefore, Lenovo has great advantages for their technology
development. IMB acquisition of Lenovo also helps Lenovo inherit good
technology from IBM, be able to create innovation (Lenovo Official Website,
2014). Lenovo can do implement Research and Development operations and
Technological make higher-quality products with the high technology from IBM. Moreover,
as said by Lenovo, because the costs for communication and remote work
rise, different firms share their skills and it is good for Lenovo’s R&D
activities.
 Technological factors help Lenovo to enhance their ability to compete
with their competitors in the market. Also, by re-buying IBM, Lenovo
owned the market share of IBM.
 Vietnam GDP is in the trend of increase in recent years (General Statistic
Office, 2014).
 According to chinhphu.vn (2013), Vietnam GDP in 2013 was 1.960
USD, rose by 12,1% compared with its percentage in 2012. The increase
in GDP means that people have higher income and living standard.
 This also means Lenovo had more business in 2013 in comparison with
Economic 2012.
 As said by ADB, Vietnam GDP in I/2014 went up to approximate 5%
and the whole year GDP might be increase slightly (chinhphu.vn,2014).
 Lenovo may sell more products and gain more profit.
 Purchase power of customers depends on income, prices and living
standard. Thus, Lenovo has to research and set the suitable prices for
their products to ensure it is not too expensive for consumers to afford.
Lenovo promises to reduce the damage to the environment. They commit to
use green materials which are friendly with environment. Lenovo’s policy on
Environmental environment issues is supported by the company’s global environment
management system.
(Lenovo,2014)

Political Computer has entered people life for a century. It is greatly helpful for
human. However, computer contains some matters of energy using,
healthiness and environment damage.
Because of these problems, in 2007, The European Union issued The EUP
instructs that related to controlling the contamination from the computer
industry. Besides that, the government also persuaded computer industry to
try to decrease the noise pollution and energy usage. Therefore, the
isopsophic indication of a Lenovo’s brand named Kai Tian s in China was
lesser than 30dB and it achieved the criteria of government (Lenovo, cited in
DarrenJunior1, 2013).
Currently, Vietnam and China are in a strained relationship because of
disputation for drilling rigs on the East Sea (Hong, 2014). The illegal drilling
rigs installation of China causes the war between China and Vietnam, and
China also tended to provoke and arrogate sea-property of other countries
like Japan. China actions not only caused the bad relationship for Vietnam

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 and China, but also influenced Lenovo business for exporting products to
Vietnam and other countries.

Lenovo recognized that it is crucial to perceive the changes in the areas of

consumer protection legislation, environmental legislation, safety and
employment law, etc. Lenovo always deliberates the legal issues in their
Legal computer industry, forecast and plan solutions to face the changes. Lenovo
always considers knowing Vietnam law deeply and perform it fully. It would
harm Lenovo’s business if Vietnam rejected to grant an export license for
Lenovo because they did not follow the rules or behaved wrong.

According to Lenovo (2014), they commit to always keep the high moral
standards. They promise to give customers the best quality-products. Lenovo
even teaches their staff the ethics and encourage them to follow the ethical
policies they have set up. to motivate employees work hard and follow the
Ethics ethic rules, Lenovo gives them perk and promotion.
In addition, Lenovo commits to contribute to the society development along
with operating ethically. They assure to pay high attention on meeting
customers’ demands.

 Market segmentation

According to Genk (2013), Lenovo IdeaFlex 14’s price is 780 USD. This price is high.
IdeaFlex 14 is the product that clearly towards people who have high income and would like to
experience both PCs and tablet features in one device. It also aims to people in the age from 20
to 50 years old, who are requested to work and study with computer. According to
Vinaresearchgroup (2013), Vietnam people who have high and quite high income account for
45% total population. Therefore, there are a huge number of consumers who are potential to
buy Lenovo’s products. Besides that, Lenovo is a famous brand that a lot of people in the
world know about it. Therefore, Vietnamese consumers, who afford and have interest in unique
laptops can trust and use Lenovo IdeaFlex.

 Marketing situation:
Rivals who have similar products like Ideaflex 14: Acer, Asus, Samsung, Dell, Sony, and
Toshiba, and so on, these competitors are also reputed and popular PCs brands, therefore,
their products also are trusted and used by a lot of customers.

Competitor - Asus transformer Book Flip can revolve 360

strength analysis degree and its design is thinner than Lenovo
Ideaflex 14.
- In line with Vnexpress (2011), sales of Asus
ASUS transformers Book Flip reached 700,000 units in
first 3 months after launching into the market.
- It price is from $499 to $699 (tinhte.vn, 2014)
 It strength is 360-revoving-screen and thinner
design.
HP HP Elitebook Revolve – laptop with 11,6 inch touch
screen and is able to flexibly revolve. Stylish pen
can be used with this product. It weighs 1.36kg. its
configuration is 4GB RAM, 256 GB SSD hard disk,
core i3, i5 and i7. It is also integrated NFC, HSPA+,

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 and LTE. The strength of HP Elitebook Revolve is it
has stylish pen that can helps users easier to
manipulate in touch screen like drawing, writing,
and so on. Moreover, HP Elitebook Revolve’s
screen is Gorilla Glass 2 and vPro which are
stronger than normal glass screen, so it can prevent
screen from broken effectively.
(maychieugiare.vn, 2014)
- Dell Inspiron 11 is the laptop with 11,6 inch
screen which can revolve 360 degree.
- Configuration: CPU Pentium 4x, 4GB RAM.
- It is sold with price of 450$
Dell (Tinhte.vn, cited in thailongcomputer.com, 2014)
 It strength is that the screen can flip to 360
degree, quite good configuration, good brand
name, and cheap price which can attract lots of
customers.
Lenovo IdeaFlex 14 is one of the followers of
flipping and revolving laptops. In 2010, Toshiba
introduced its touch-laptops which the screen can
Company’s current situation
revolve 360 degree (Linh, 2010). Until 2013,
IdeaFlex 14 was launch into the market (Genk,
2013).

 Marketing planning:

In order to achieve the marketing objectives of Lenovo set for Ideaflex 14, a marketing
plan is indispensible. We need to look at some points as following:

- Product strategy:

o Ideaflex 14 integrated dual-mode that can switch from laptop mode to tablet mode.
It likes a version of Lenovo Yoga 13. However, for Ideaflex 14 design, there is lack
of shortcuts button to disable the keyboard when switching to tablet mode.
 Shortcuts button to disable keyboard should be integrated.

o In addition, its screen is just able to revolve 300 degree while other laptops like
Asus transformer can fold to 360 degree. The feature of folding 360 degree is more
interesting that helps user experience the product mostly like a tablet. Therefore,
this attractive design should be applied in the next version of IdeaFlex 14.

- Distribution channel:

B2C
- Demographic market: people who have
quite high and high income (salary from
about 7 million Vietnam Dong)
- According to 5giay.vn (2014), in total
Vietnam population of 92,477,857, there
are 39% people access to the Internet
and 22% whom using Facebook. Laptop
is one of technological gadgets that
B2B
Selling to enterprises, retail stores, shops,
supermarket, etc. There are 5 and 18
shopping malls in HoChiMinh and Hanoi,
respectively, not to mention other stores
like FPTshop, etc (Wikipedia,2010).
 Lenovo can sell its products to these

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 helps users to access to the Internet. The shopping malls with large quantity and
average time that people surfing the gain much profit
Internet by PCs or laptop each day is 4
hours and 37 minutes.
 Laptops sales tend to increase because of
increasing demand of accessing the
Internet. Moreover, with current modern
life, besides working and studying with
laptops, entertainment is also considered as
an important function for users. With dual-
mode, Ideaflex can offer both ways of
work and entertaining, and this feature can
attract customers.

- Pricing strategy: the price of Ideaflex 14 as well as products are high at the first period
that it launches into the market. Then, the price will be reduced lower to attract more
customers. Lenovo offers 2 ways for customers: paying in 1 time and by installment.
Customers who have high income can pay fully when they buy the product. However,
for people who have lower income level, paying in installment is the best way for them
if they want to buy a product with high price. This can help Lenovo to encourage
average-income-consumers to buy its products.

 New goal objectives:

The objectives I want to set is to reach 2 million sales for Lenovo’s Ideaflex 14 from Jan 2014
to December 2014. To achieve this objective, a marketing plan is essential.

3.2. Explain why marketing planning is essential in the strategic planning process for
Lenovo

Strategic planning is systematic process of imaging a expected future, and convert this vision
to widely identified goals or objectives and the steps to reach them.
(businessdictionary.com, 2014)

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 ( mybusinessprocess.net,2013)
There are 6 steps in strategic planning process.

1. Gather facts: the company needs to collect information from their stakeholders,
customers and industry analysis, environment analysis, and company performance and
strategies.
2. SWOT analysis: determining and analyzing external and internal factors that affect the
company’s operations is needed to be implemented then.
3. Review inputs: the company needs to take a review of all stakeholders, inputs, SWOT
analysis and identify some key statements.
4. Strategic matrix of all stakeholders and suitable strategies that pointed out the SWOT
need to be taken.
5. Define strategies: strategies should be defined. Objectives, short and long term goals,
and operation plans need to be identified clearly to have appropriate strategies.
6. Review and adjust: a final review should be taken to ensure previous steps are well
done. If something is not good, an adjustment needs to be taken.

A marketing plan can impact significantly the company’s business because it provides clearly
purpose, and direction which be able to attract and keep customers. Gaining and retaining
consumers are the most vital factor for the success of business. In addition, marketing planning
helps the enterprises to run their business more effective in building up their brand names and
selling goods, launch into new market easier, and solving problems.

Moreover, an appropriate marketing plan offers a rich source of information which indicates
the company’s current position to the consumers in the market, and comparing with other
competitors. Thereby, the company can have suitable strategies and actions to promote and sell
products. An effective marketing plan will be able to enhance sales markedly and also leads to
the increase of brand name level and profit. Thus, marketing plan is very important to any
enterprise.

There are many benefits of marketing planning that Lenovo can have:

MKT Plan A2 QCF April 2014 NTU 14

 Identifies the demand and expectation of consumers to create better innovation for
products.
 Determine and analyze the rivals.
 Determine potential customers.
 Understand the company’s competitive advantages and drawbacks.
 Catch the trends that impact the market.
 Show the comprehensive picture which is helpful in generating budget for products.
 Helps the company more concentrated and beneficial
 Helps the firm to make better decisions

It is clearly to see that Lenovo can identify to obviously what consumers needs, and improve
their products better to satisfy their customers. Marketing planning also indicates the pros and
cons of Lenovo and other rivals. Thus, Lenovo can prepare strategies plans to compete with
other companies in the market. A marketing plan is the key that results in the success of
Lenovo.

3.3. Examine techniques for new product development in Lenovo (Vietnam)

 Idea generation:
To have breakthrough for future products, Lenovo needs their unique ideas. To get the
excellent ideas, Lenovo researches for the opinion of their experts, all employees and
customers to gather information of innovation for products. Besides that, learning from
competitors is also a good way to improve and develop its products. For example, Asus’s
laptop’s screen can revolve till 360 degree but Lenovo Ideaflex 14 just flip 300 degree. This is
a point that Lenovo IdeaFlex should be improved.

 Screening:
After gathering all unique ideas, selection process should be implemented to choose the most
appropriate ones. The suitable one will be which matches with Lenovo’s conditions like capital
and ability of the company, and competence of consumption in the market.

 Concept testing:
Lenovo considers whether the new product is attractive to customers. Their experts and staff
should experience the product before implementing the mass production. The experience will
helps them to recognize which points will be able to attract consumers or prevent them to buy
the products.

 Marketing strategy:
This is a key point to achieve the objectives of Lenovo. In order to spread information of
products, Lenovo needs to plan strategies which help to convey all attractive information
related to products to consumers. An appropriate marketing strategy will help Lenovo let a
huge number of people know about its products.

 Business analysis:
Analyzing if the products can be sold as planned is also crucial. If there is too much inventory,
Lenovo will suffer big damages of money like their capital, interests and loans from the banks
that they borrowed for producing products. Lenovo has to estimate whether its products can be
sold to gain profit or not.

 Product development:

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From previous products, Lenovo should create new products with breakthrough of design, or
configuration, which is better than the old ones and satisfy the consumers. After researching
carefully, having detailed designed of new product, production should be performed.

 Market testing:
Before launching new product into the market, Lenovo should introduce the trial version of
product to the market to see the reaction of consumers and receive feedback. If something
needs to improve, Lenovo should review and improve to meet the expectation of clients.
Thereby, when the new product is introduced, it can receive positives from consumers and may
attract customers. Hence, Lenovo can gain more benefits.

 Commercialization:

The most important stage is launching new product to the market. The targeted consumers
should be identified clearly. Lenovo IdeaFlex 14 is the product that dedicated to people who
have high income and are interested in dual-mode features. Besides that, the areas that Lenovo
should concentrate when selling IdeaFlex 14 in Vietnam are the 2 big cities: Hanoi and
Hochiminh. The reason is that there are a huge number of people living in these two areas.
Focusing on distributing in these cities, Lenovo can sell products to more people than selling in
other areas in Vietnam where the population is lower.

3.4. Justify recommendations for pricing policy, distribution and communication mix
for Lenovo (Vietnam).

3.4.1. Pricing policy

 Definition

Pricing policy is the policy that the company sets prices for its products or service for
wholesale and retail.
(businessdictionary.com, 2014)

 Price comparison

Asus
Lenovo HP Elitebook
Product Dell Inspiron 11 Transformer
IdeaFlex 14 Revolve
Book Flip
$699 $450 $1,249 - $1,449 $499 - $699

(Tinhte.vn, cited in
Price
(Lenovo, thailongcomputer.com (Van, 2013) (tinhte.vn, 2014)
2014) , 2014)

 Pricing strategy:

Lenovo uses price skimming to maximize profits from Ideaflex 14 by offering high price for
early period of this product. According to Genk (2013), at the very first period of sales, Lenovo
IdeaFlex 14 price was set very high ($780). However, the price of this product gradually

MKT Plan A2 QCF April 2014 NTU 16

reduces to $699. This strategy helps Lenovo to gain more customers when the sales increases
slowly and compete with new rivals emerge into the market.

 Price mixing strategy:

- Product bundle pricing:

Buying Lenovo IdeaFlex, customers’ computers will be installed authorized win 7 or 8
depending on their option. This is included in the price of the laptop.

- By-product pricing:
The price of Lenovo IdeaFlex 14 set in the web is $949. However, Lenovo applied by-product
pricing strategy for their Ideaflex 14. The price of IdeaFlex 14 is reduced to $699. This makes
IdeaFlex 14 more competitive and can attract more consumers.

 Incentives for customers who purchase IdeaFlex 14

After buying Lenovo IdeaFlex 14, customers will have 1 year warranty from Lenovo. Besides
that, customers will receive gifts like computer mouse, USD, or authorized software, laptop
bag and so on. This is to attract consumers and encourage customers to use and maybe
continue to follow the new products of Lenovo.

3.4.2. Distribution policy

Distribution policy is a corporate policy that identifies how and where data and products are
shared and distributed both within and outside the company. It is established by executives
who carefully deliberate the demands and objectives of the enterprise when choosing how to
release materials. (wisegeek.com, 2014)

Lenovo does not have any official store in Vietnam. They distribute products through third-
party like mall centers, supermarkets and computer shops. There are 5 and 18 shopping malls
in HoChiMinh and Hanoi, respectively, not to mention other stores like FPTshop, etc.
(Wikipedia,2010), and mostly, Lenovo’s products are sold there. These places are enough for
people in Hanoi and Hochiminh to service customers. However, Lenovo should expand their
selling system more in other cities in Vietnam like Hai Phong, Quang Ninh, etc. Lenovo
products are popularly used by Vietnamese customers; therefore, they should do research and
expand more distribution centres in other cities in Vietnam.

Customers can directly go to shops or malls to buy Lenovo products. Also, they can order on
the shop’s web and get a delivery. For the order inside the city, the product will be delivered to
customers’ place by motorbike or cars depending on the volume of goods needed to deliver.
For the customers who live far way from the selling centres, products will be transported by
train, car or plan. The risk of the delivering products by transportation is that product maybe
damaged or lost. This will disappoint the customers and reduce reputation of Lenovo.
Therefore, Lenovo should expand more selling stores in other areas of Vietnam and customers
can directly go and buy it.

In addition, in order to improve the quality of distribution channels, Lenovo needs to train their
employees to have more knowledge and experience about products they sell and more

MKT Plan A2 QCF April 2014 NTU 17

professional in serving customers. This can build up a professional image of the company and
retain loyal customers as well as attract more new consumers.
3.4.3. Communication mix

Communication mix is an important method to promote Lenovo IdeaFlex 14 to customers

widely. In order to have effective communication mix for IdeaFlex 14, firstly, advertisement
via TV, newspapers, and Internet is essential. These media helps Lenovo to introduce their
product to people easily and effectively because everyone knows and uses at least one of these.

Besides that, discounts for promotions also are a helpful way like advertisement. It is
promotions in payment communication. Business customers should be given discount for
buying a large amount of products or times buying products of Lenovo. Also, Lenovo should
give voucher for individual customers to encourage them to buy other products again or
introduce their friends to buy Lenovo’s products. This promotion is effective to increase
Lenovo’s revenue and cash flow, attracting attention of customers and new buyers, and avoid
of large amount of inventory.

Moreover, Lenovo should have some activities for public to promote Flex14 such as charity.
By doing charity, Lenovo’s positive activities will be attracted by many people through news,
newspapers and internet. This is one of the most effective way that the company do not have to
pay money to appear on TV, newspapers or Internet. People see the news will impress with
Lenovo’s good activity and know their brand.

Final recommendation for Lenovo is that they can operate some events like sponsorship events.
It means that Lenovo should sponsor for some TV shows or sport shows or community events
to give sponsorships and introduce IdeaFlex 14 simultaneously.

These recommendations above are effective communication mix for Lenovo to promote their
IdeaFlex 14. By doing as the recommendation, Lenovo will reach their objectives of sales and
revenue.
3.5. Explain how factors affecting the effective implementation of the marketing plan
have been taken into account
There are some factors that influence the performance of marketing plans which are presented
in the table below.
Because the board of director do not give the clear direction and
guideline, the manager cannot understand and do not support the
marketing planning of the company. Therefore, the marketing plan
Lack of support
might not be able to implement or cannot perform sufficiently due to
from chief executive
lack of finance or labour force.
and top management
As the result, the chief executive of Lenovo needs to always considers
the company’s business carefully and give support for marketing
planning to helps company operate well.
Lack of support Operational managers cannot participate in the activities of marketing
from line manager planning because of their lack of information, knowledge and
profession. This will lead to the ineffective operation and marketing
plan might not be planned well. The consequence of this is that the sales
of products might not reach the expectation of company.
Therefore, Lenovo needs to always test and give special training
courses for line managers to help them have adequate knowledge and

MKT Plan A2 QCF April 2014 NTU 18

 profession to work and support for marketing planning team.
In business, especially technological business like Lenovo, there is
jargon which may cause managers as well as other employees to
confuse. Jargon is normally used in work. Confusing jargon might
Confusion over
cause the misunderstanding in communication among employees and
planning terms
lead to misstatement in planning marketing plan. Thereby, managers
and staff need to learn and understand it to avoid mistakes from
confusing profession-words.
The plans are written but the actions are not taken in year. This waste
time and lose opportunities of the company because the plan may suit to
implement this year but it might become inappropriate next year.
Once a year ritual
Hence, Lenovo needs to consider and implement their suitable
marketing plan in fixed period, prevent the written plans, which useful
for company, not implemented and lose benefits.
This problem occurs when someone expects to join in planning but be
avoided. This might cause the resistance or not enthusiastic in
performing. During the process of planning, all employees should be
Delegation of
allowed to involve in the planning. The managers should listen and
planning to a
consider all ideas and select the suitable ones. For unsuitable ideas,
planner
managers should give some explanation why they see it inappropriate
for the marketing plans of the company to prevent resistance of the
employees.
LO4. Understand ethical issues in Marketing

4.1. Explain how ethical issues influence marketing planning

Ethic is an important factor that affect to the company’s image. Therefore, ethical issues are
always seriously deliberated by enterprises. There are some kinds of ethical issues that
influence marketing planning which are demonstrated as following:

 Product issues:
For any product, quality and safety and value are the very first factors that customers consider.
A low-quality product may cause unsatisfied from customers and may cause dangers for
consumers due to the unsafe technology. This significantly influences the images of the
supplier. If Lenovo provided low-quality products which are unsafe and unvalued, they would
lose their reputed image in customers’ eyes. Gradually, the rumors of their low-quality
products will spread widely, no one will want to buy products form Lenovo more, and they
will become bankrupt.

 Promotion issues:
Advertising is one of the best ways to spread information of products to billions of people.
However, Lenovo needs to seriously consider the information of product they put on the
advertisements. If they give wrong information, consumers will think that Lenovo cheats on
them and lose the trust on Lenovo.

 Pricing issues:
It is a good idea that Lenovo can set lower price for its products to compete with other
competitors. Lower price may help Lenovo gain more customers. However, if Lenovo sets a

MKT Plan A2 QCF April 2014 NTU 19

much lower price for their product, there will be some problems. Firstly, the company will lose
their profit if the price of product is low. Secondly, customers may suspect the price of
products because high quality products are often not very cheap. Therefore, some umbrageous
consumers will not choose Lenovo’s products. Thirdly, other rivals may sue Lenovo for
breaking general price of products..

 Place issues:
The equality between the company and their distribution partners is one factor that customers
will consider. For example, the distribution partners often raise the price of product higher than
the price set by the company to gain more profit. This makes customers unsatisfied and they
may switch to similar product of other brand. Thereby, the company may loss their customers
and profit. Lenovo has many distribution partners in Vietnam like TranAnh supermarket, Pico
mall, and so on. In fact, IdeaFlex 14 as well as other products of Lenovo is sold with different
prices in different distribution places. Therefore, customers who do not know the place where
sells Lenovo’s products with reasonable price will suffer disadvantages.

4.2. Analyse examples of how organizations respond to ethical issues

In order to deal with the ethical problems that mentioned in 4.1, Lenovo needs to consider the
recommends below:

 Product issue: to avoid low-quality products, Lenovo needs to be careful in choosing

materials for producing products. Workers who directly manufacture products needs to
be professional and experienced. Lenovo should always test and check the products
carefully before they are given to the customers. The safety of products also needs to
consider seriously. The technology department needs to take responsibly of checking
products operation to ensure all products operating well.

 Promotion issues: Lenovo should carefully consider and check the information of their
products will be put on the advertisements. Information of products needs to be realistic
when it is given to the customers to help them make the right decision. This also
ensures the image of Lenovo.

 Pricing issues: pricing strategy is effective if it is applied in the right way. Lenovo
needs to consider carefully when they set the price of products to prevent the
consequence of these problems.

 Place issues: to avoid the unreasonable price that the distribution partners set for
Lenovo products, they need to make an agreement with their partners that the products’
prices are unchangeable to protect interests of customers. If the partners violate the
agreement, Lenovo can sue them.

4.3. Analyze examples of consumer ethics and the effect it has on marketing planning

 Example 1: If Lenovo provides customers low-quality products, they will dissatisfy and
not use Lenovo’s products anymore. Thus, Lenovo losses numbers of customers. When
rumours of offering low-quality products are spread widely, a lot of people will know about
it and avoid Lenovo’s products. The marketing plan will fail and Lenovo cannot achieve
their objectives of marketing products and get expected sales volumes.

MKT Plan A2 QCF April 2014 NTU 20

 Example 2: If Lenovo and its agents have activities that support community like doing
charity, people will have a good impression of the company. Doing charity will enhance
the image of Lenovo and this activity also helps the company to advertise their brand name.
It may be seen as a marketing activity. If Lenovo implements marketing plans more, they
will be more effective and the company can gain more profit.

 Example 3: if Lenovo fails in offering a good warranty for customers, they will also lose
their loyal clients and reputation. Service after sales is one factor that customers expect on
the company. Therefore, if Lenovo cannot do well on this aspect, they lose their customers,
reputation and profits.

 Example 4: company may have action of copy personal data of the users. This is illegal
action that some companies do to investigate their customers. If Lenovo does, customers
will leave them and switch to other computer brands which are more reputed and protect
customers’ secret. Illegal violating personal data is unacceptable, so if Lenovo does this,
they will be boycotted by all consumers, and they may become bankrupt.

III. Conclusion
Through this report, it is obvious that marketing plan is very important for businesses. To have
right marketing decision; organization has to analyze many related factors carefully. Moreover,
to have appreciate and effective marketing plan, the enterprises have to specific goals,
strategies, a tactics, and then make a suitable plan.

Lenovo is a famous and reputed computer brand which are known, used and trusted by a huge
number of people. By analyzing business-related-factors, Lenovo can remain and develop their
business well. In the future, Lenovo might be more and more reputed and gain more consumers
in the world.

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