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MARKETING MIX

ABOUT MARKETING MIX

Marketing refers to activities a company undertakes to promote the buying or
selling of a product or service. Marketing includes advertising, selling, and
delivering products to consumers or other businesses. Some marketing is done by
affiliates on behalf of a company. Marketing as a discipline involves all the
actions a company undertakes to draw in customers and maintain relationships
with them. Networking with potential or past clients is part of the work too, and
may include writing thank you emails, playing golf with prospective clients,
returning calls and emails quickly, and meeting with clients for coffee or a meal.
At its most basic level, marketing seeks to match a company's products and
services to customers who want access to those products. Matching products to
customers ultimately ensure profitability. Product, price, place, and promotion
are the Four Ps of marketing.
The Four Ps collectively make up the essential mix a company needs to market a
product or service. A marketing mix includes multiple areas of focus as part of a
comprehensive marketing plan. The term often refers to a common classification
that began as the four Ps: product, price, placement, and promotion. The four Ps
classification for developing an effective marketing strategy was first introduced
in 1960 by marketing professor and author E. Jerome McCarthy.1 Depending on
the industry and the target of the marketing plan, marketing managers may take
various approaches to each of the four Ps. Each element can be examined
independently, but in practice, they often are dependent on one another.
Three additional Ps tied to marketing mix might include people, process, and
physical evidence. People refer to employees who represent a company as they
interact with clients or customers. Process represents the method or flow of
providing service to the clients and often incorporates monitoring service
performance for customer satisfaction. Physical evidence relates to an area or
space where company representatives and customers interact. Considerations
include furniture, signage, and layout. Additionally, marketers often study
consumers who frequently will influence strategies related to service or products.
This also requires a strategy for communicating with consumers in terms of
obtaining feedback and defining the type of feedback being sought.
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THE 4 Ps

PRODUCT
Product refers to an item or items the business plans to offer to customers. The
product should seek to fulfil an absence in the market, or fulfil consumer demand
for a greater amount of a product already available. Before they can prepare an
appropriate campaign, marketers need to understand what product is being sold,
how it stands out from its competitors, whether the product can also be paired
with a secondary product or product line, and whether there are substitute
products in the market.

PRICE
Price refers to how much the company will sell the product for. When establishing
a price, companies must consider the unit cost price, marketing costs, and
distribution expenses. Companies must also consider the price of competing
products in the marketplace and whether their proposed price point is sufficient
to represent a reasonable alternative for consumers.

PLACE
Place refers to the distribution of the product. Key considerations include whether
the company will sell the product through a physical storefront, online, or through
both distribution channels. When it's sold in a storefront, what kind of physical
product placement does it get? When it's sold online, what kind of digital product
placement does it get?

PROMOTION
Promotion, the fourth P, is the integrated marketing communications campaign.
Promotion includes a variety of activities such as advertising, selling, sales
promotions, public relations, direct marketing, sponsorship, and guerrilla
marketing.
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PRODUCT MIX
The Product Mix also called as Product Assortment, refers to the complete range
of products that is offered for sale by the company. In other words, the number
of product lines that a company has for its customers is called as product mix.
The Product Line refers to the list of all the related products manufactured or
marketed by a single firm. The number of products within the product line are
called as the items, and these might be similar in terms of technology used,
channel employed, customer’s needs and preferences or any other aspect. The
product mix has four dimensions: Breadth, Length, Depth, and Consistency.
The BREADTH of a product mix shows the different kinds of product lines that
firm carries. Simply, it shows the number of items in the product line. This
dimension of the product mix represents the extent to which the activities of the
firm are diversified.
The LENGTH of a Product mix refers to the number of items in the product mix.
The DEPTH of a product mix refers to the variants of each product in the product
line
The CONSISTENCY of a product mix shows the extent to which the product
lines are closely related to each other in terms of their end-use, distribution
requirements, production requirements, price ranges, advertising media, etc.
These terms in a product assortment help the firm to take a decision regarding the
addition or removal of the product items in the product lines. Generally, the firms
introduce a new product item into the existing product line as it is easy to gain
the customer support for the new product due to the customer’s familiarity with
the existing product line.
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PRICE MIX
Pricing is one of the four main elements of the marketing mix. Pricing is the only
revenue-generating element in the marketing mix (the other three elements are
cost centres—that is, they add to a company’s cost). Pricing is thus strongly
linked to the business model. Price is the amount of money that customers have
to pay in exchange for a particular product or service. The determination of the
right price for a certain product can be quite tricky. Pricing strategy should reflect
the product’s positioning in the market and the resulting price should cover the
cost per item and the profit margin. The amount should not project and showcase
the business as timid or greedy. Low pricing hinders one’s business’ growth while
high pricing kicks one out of the competition, on the basis of general customer
behaviour. Value-based pricing is a strategy of setting prices primarily based on
a consumer's perceived value of a product or service. Value pricing is customer-
focused pricing, meaning companies base their pricing on how much the
customer believes a product is worth. Value-based pricing is different than "cost-
plus" pricing, which factors the costs of production into the pricing calculation.
Companies that offer unique or highly valuable features or services are better
positioned to take advantage of the value pricing model than companies which
chiefly sell commoditized items.
COST Plus is taking the production cost and adding a certain profit percentage.
The resulting amount will be the product’s price. It needs to be considered
variable and fixed production costs for this pricing method. A cost of production
has to be covered in order for the business to survive. It is considered, that Higher
the Cost, Higher the Price, and Lower the Cost, Lower the Price.
COMPETITION has a great involvement when the concept of price arises. You
take a survey of the pricing implemented by your competitors on a similar product
that you are trying to market and then decide whether to price your product lower,
the same, or higher. You should also monitor their prices and be able to respond
to changes. The pricing strategy known as “Going Rate” is more common in
selling environments where the companies have little to no control of the market
price. A product is priced according to the going rate of similar products.
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Although people often think of marketing as synonymous with advertising or

salesmanship, it is actually much broader. Marketing consists of the full range of
activities involved in facilitating commercial exchanges and having all of these
activities be guided by a concern for customer needs. The central idea here is that
of the commercial exchange. This is where a seller provides a product to a buyer
in return for something in exchange (usually an amount of money). The product
could be something tangible, which is referred to as a good, or the product could
be the result of human or mechanical effort, which is referred to as a service. The
buyer could be a consumer—an individual who purchases a product for his or her
own use—or the buyer could be a business customer— an individual or group
who purchases the product in order to resell it or for other business purposes. One
aspect that makes the commercial exchange a very important idea is that it
describes an interaction that is voluntary. Both the buyer and seller participate in
the exchange voluntarily because the exchange will lead them both to be better
off. Although we tend to take commercial exchanges for granted, we shouldn’t
forget that there is something very important and wonderful involved here.
Because both parties to the exchange are better off after the exchange than before,
one could say that the exchange makes the world a just a little bit better place.
There is a little more happiness after the exchange than before it. Although there
may be only a tiny bit of increased happiness from any one commercial exchange,
these little pleasures can quickly mount up.

PRODUCT

SELLER BUYER

PRICE IN EXCHANGE
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PLACE MIX
Place refers to distribution or the methods and location you use for your products
or services to be easily accessible to the target customers. Place is not only about
physical movement of products from manufacturers to customers but also about
the ease of access to products, the way they are displayed, and the environment
in which they are pre-sented. The marketer may adopt different channels of
intermediaries to reach the end user. The choice of distribution channel is affected
by several factors. The channel of distribution denotes the intermediaries
involved in the process whereby a product passes from the manufacturer to
consumers. It is very important for the producers to involve middlemen in order
to reach consumers. Firstly, middlemen reduce the problems of both producers
and consumers. Secondly, they help in distributing the products over a large area.
Middlemen also supply useful market information to the producer for improving
the product. Involvement of middlemen adds to the conven-ience of consumers
because they are able to lay many items from a single store. Some people believe
that by involving more middlemen in the process of distribution, the final price
of a products is consid-erably raised which is ultimately paid by the consumer.
Therefore, the number of middlemen involved should be limited, if at all
necessary, and there can be various levels of channels. It is for producers to decide
which level would suit the sale of their product.
SELLING DIRECTLY can be a good starting point especially if the product
supply is limited or someone only sells seasonal products. One advantage of
selling the products directly is you get a more personal feel of the market because
you interact directly with the customers so you can easily adapt to the changes.
This method also helps keep control over prices of the products, and the methods
on which it should be sold. Distribution methods may include, but are not limited
to, door-to-door, retail, e-commerce, mail order, or on-site.
SELLING THROUGH A RESELLER is a method if the company wishes to have
wider distribution for their product. This can be sold through a third party, either
a retailer or wholesaler, who will then resell the product to their customers. This
distribution strategy also reduces the pressure of running a distribution system.
Reseller sales also reduce the storage space required for product stocks. A
disadvantage is the lack of personal touch and old customers. Some resellers may
request that your product be sold under their own brand. Intermediaries can also
be specific about supply flow before they can handle your products for reselling.
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Promotion mix
A promotion mix is a set of different marketing approaches that marketers
develop to optimize promotional efforts and reach a broader audience. The
marketer’s task is to find the right promotion mix for a particular brand.
Developing a promotion mix requires skills and experience in marketing.
Marketers should complete various studies and gather lots of data about a
particular company to come up with an effective promotion mix. A promotion
mix is a more expanded approach towards one of five elements of the marketing
mix — Promotion. Other factors are people, product, place, and price. Various
characteristics of this mix are -

IMPROVES THE EFFECTIVENESS OF PROMOTIONAL CAMPAIGNS -

Promotion is a crucial part of any business, so companies develop a promotion
mix, putting all efforts to make promotions at the right place, at the right time,
and to the right audience. It helps one get the most out of their marketing
resources by optimizing their budget and saving time.
HELPS SEGMENT THE AUDIENCE - To develop a compelling promotion mix,
a company needs to identify its target audience. Potential subscribers may include
various groups of people who have something in common, for example, age,
gender, preferences, etc., and they all require an individual approach. A
promotion mix is a key method for delivering a relevant promotion message via
the most suitable channel for each segment.
IMPROVES COMMUNICATION WITH CLIENTS - Companies develop a
promotion mix trying to speak their consumers’ language. If prepared correctly,
it helps build trust between the brand and its customers. This is a crucial factor in
lead nurturing and customer retention. For example, automated email campaigns
help achieve these goals by responding to people’s actions instantly.
INFORMS SUBSCRIBERS - Some promotions, on Instagram for example, aim
to show the product from the best angle, and others, like SMS, emphasize the
advantages of local services. When using a promotion mix, companies define the
best ways to educate people about the products and services they provide.
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LENOVO
Lenovo is one of the world's leading personal technology companies, producing
innovative PCs and mobile internet devices. Now, #286 on fortune 500 list,
Lenovo is the world's largest PC vendor and fourth largest smartphone company.
Lenovo Group Limited, often shortened to Lenovo, is a Chinese multinational
technology company. Incorporated in Hong Kong, it has global headquarters in
Beijing, China, operational headquarters in Morrisville, North Carolina, US, and
an operational centre in Singapore. The company designs, develops,
manufactures, and sells personal computers, tablet computers, smartphones,
workstations, servers, supercomputers, electronic storage devices, IT
management software, and smart televisions, and is the world's largest personal
computer vendor by unit sales as of July 2020. It also markets the ThinkPad and
ThinkBook business lines of notebook computers; IdeaPad, Yoga, and Legion
consumer lines of notebook laptops; and the IdeaCentre and ThinkCentre lines of
desktops. Lenovo has operations in over 60 countries and sells its products in
around 180 countries. It has research centres in Beijing, Chengdu, Yamato
(Kanagawa Prefecture, Japan), Shanghai, Shenzhen, and Morrisville (North
Carolina, US), and also has Lenovo NEC Holdings, a joint venture with NEC that
produces personal computers for the Japanese market. Lenovo was founded in
Beijing in November 1984 as Legend, and was incorporated in Hong Kong in
1988. Lenovo acquired IBM's personal computer business in 2005 and agreed to
acquire its Intel-based server business in 2014. Lenovo entered the smartphone
market in 2012 and as of 2014 was the largest vendor of smartphones in mainland
China. In 2014, Lenovo acquired Motorola Mobility from Google. In 2017,
Lenovo acquired Fujitsu's personal computer business. While the Lenovo brand
came into existence only in 2004, the company has a much longer history. In
1984, Legend Holdings was formed with 200,000 RMB (US$25,000) in a guard
house in China. The company was incorporated in Hong Kong in 1988 and would
grow to be the largest PC company in China. Legend Holdings changed its name
to Lenovo in 2004 and, in 2005, acquired the former Personal Computer Division
of IBM, the company that invented the PC industry in 1981. Today, Lenovo is a
US$47 billion personal technology company with more than 57,000 employees
(including joint ventures) in more than 60 countries serving customers in more
than 160 countries. Lenovo has major research and manufacturing centres in
countries around the world.
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LENOVO LOGO
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LENOVO’S PRODUCT MIX

High quality products

Product environmental leadership is a fundamental component of Lenovo’s
environmental policy. This policy requires each of our product groups to develop,
manufacture, and market products that are energy efficient and minimize their
impact on the environment. Lenovo is an industry leader with respect to energy
efficient products, the use of environmentally preferred materials and green
product packaging. Long product life contributes to reduced environmental
impact. Lenovo designs its products to maximize their lifespan and offers three-
year standard warranties and five years of replacement part availability on many
of our top-selling commercial products. Three-year warranties are offered as the
base warranty on many top selling Think-branded products, including all
commercial monitors, T-series notebooks, and M-series desktops. In addition,
customers can purchase warranty upgrades to extend the base warranty by one or
two years for many products. Base warranties for Lenovo consumer (Idea)
products vary by product type and geography, but typically start at 1-2 years for
the base warranty with the option to purchase an extended warranty.

PRODUCT RANGE
According to Lenovo, a laptop is the biggest gateway to the online world and
beyond (except for your smartphone, of course). Based on priorities there are a
bunch of - Performance laptops for creators, professionals, or gamers with a
powerhouse rivalling with that of a desktop, Ultraportable laptops for folks who
are always on the go, Budget laptops that give you value and performance in a
single package, Innovative 2-in-1s – “part laptop, part tablet, part nothing you’ve
seen before”, for those who want to tap the untested power of the new.
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❖ BUSINESS LAPTOPS - The ThinkPad laptops set the standard for

business computing. Tough as nails and reliable, these laptops and 2-in-1s
and can keep anyone productive in any environment. And it gives all the
tools needed – from high-end processing and graphics to cutting-edge
touchscreen technology, from pen support to epic battery life, ThinkPad
keeps the user productive and engaged wherever they are.

❖ GAMING LAPTOPS - Gamers don’t have to feel bound to their desktops

anymore. Legion by Lenovo lets you dominate your competitors wherever
you are. “Are you hardcore?” is a very popular slogan released by Lenovo
which boosted its sales to a great extent. Lenovo has got their users covered
with laptops that boast powerful discrete graphics and overclockable
CPUs. For a mass population being casual gamers, Lenovo has budget-
oriented gaming laptops to serve the purpose as well.

❖ CONVERTIBLE LAPTOPS – a completely different concept which has

not been thought of earlier, the convertible laptops such as the ground-
breaking Yoga laptops, tablets and 2-in-1s definitely turn heads. With a
vibrant displays and immersive audio, tablets that work as movie or
presentation projectors, pen support for artists and designers and a Halo
Keyboard that’s is a never seen before deal, the convertible laptops by
Lenovo have got it all.

Below is a list of the products and services by Lenovo.

➢ Lenovo Gaming Products
➢ Laptops & Ultrabooks
➢ Tablets
➢ Desktops
➢ Smartphones & Watches
➢ Workstations
➢ Systems
➢ Accessories & Software
➢ Cloud storage
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PRODUCT SERIES

LENOVO IDEAPAD
The Lenovo IdeaPad series has something for everyone. IdeaPads are available
for any usage situation such as internet, text processing, or photo editing. There
is also an IdeaPad gaming series, which allows you to play current games at
medium settings thanks to the NVIDIA GeForce video cards. Choose an IdeaPad
of 14 inches or smaller if you often bring the laptop on the go. A 17-inch IdeaPad
is mostly suitable for home use.

• For all usage situations

• All inch sizes

LENOVO yoga
A Lenovo Yoga laptop combines the most modern functions with user
friendliness and a design that is slim and light. You can log in by smiling at the
infrared camera or enjoy Netflix series if you have a Yoga with a 4K screen. The
Yoga series also includes 2-in-1 laptops. The keyboard of these 2-in-1 laptops
can be rotated 360 degrees around the touchscreen, so you can also use it as a
tablet. As such, the Lenovo Yoga 2-in-1 is a tablet and laptop in one.

• Slim design
• Latest functions such as a fingerprint scanner or an infrared camera
• 2-in-1 models
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LENOVO THINKPAD

Lenovo ThinkPad laptops are specially designed for business use. The ThinkPad
offers extra security options to encrypt files. These laptops also use the Pro
version of the Windows operating system. Thanks to the very good build quality,
they can easily take a beating. This is why a Lenovo ThinkPad is an attractive
option for use at the office or if you're working from home. Or choose a smaller
ThinkPad, which is ideal for on the go.

• For business use

• Windows 10 Pro

LENOVO THINBOOK
A Lenovo ThinkBook business model is intended for small organizations and
freelancers. These laptops are ideal if you're working from home or don't have a
fixed office location. The ThinkBook has an inch size no bigger than 15 inches,
so you can easily take it with you on the go. It also has a sturdy aluminium casing,
a spill-resistant keyboard, and a TPM chip to encrypt your files. Thanks to the
fingerprint scanner, you can log in to Windows 10 Pro quickly and safely.

• For small businesses and

freelancers
• Windows 10 Pro
• Screen size smaller than 15 inches
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LENOVO LEGION
These laptops have the latest NVIDIA GeForce video cards, which allow you to
play all your favourite games. The Lenovo Legion also has a powerful cooling
system so that your laptop performs optimally during gaming. The keyboards
light up in all colours of the rainbow for extra atmosphere and visibility in the
dark.

• For gamers
• NVIDIA GeForce video cards
• RGB keyboards
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QUALITY AND SAFETY

Lenovo’s global Quality Management System, which has earned ISO 9001
(International Organization for Standardization) certification, ensures the
continual delivery of design improvements into Lenovo’s current and future
products. Lenovo strongly embraces the ISO 9001 commitment to an effective
quality management system, and is dedicated to exceeding industry standards for
product quality and reliability. Lenovo leaders are responsible for establishing
objectives and using measurements to drive continual improvement in quality and
customer satisfaction. All Lenovo employees are expected to contribute toward
attaining these objectives as an integral part of our quality management system.
Please click here to view Lenovo’s Corporate Quality Policy. Lenovo is
committed to ensuring its products are safe throughout their entire life cycle, from
manufacturing, transportation and installation to use, service and disposal.
Corporate strategies, policies and guidelines have been designed to support
Lenovo’s commitment to product safety. Lenovo strives to ensure that our
products meet all applicable legal requirements as well as voluntary safety and
ergonomics practices to which Lenovo subscribes, wherever our products are
sold. Click here for additional information on product safety, and click here to
view Lenovo’s Policy on Product Safety and Ergonomics.

RECYCLING
Lenovo offers end-of-life recycling and management programs for both business
and consumer customers. Being a global company, Lenovo offers programs in
many countries around the world. Specific offerings are tailed to your geographic
location and business need. Free product recycling is offered to consumers in
some locations.
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Batteries
Lenovo’s innovative designs help extend the useful life of every aspect of our
products, including our batteries. Notable aspects include:

❖ Increased usage of lithium polymer cells. When used in notebooks and

tablets with embedded batteries, these cells typically provide longer life
cycles than lithium ion cylindrical cells.
❖ Three-year warranty. Some ThinkPad models have batteries designed to
last 2-3 times as long as a standard battery and come with a three-year
warranty. The longer lifespan is made possible through carefully selected
cells and charge algorithms.
❖ Dual mode charging algorithms. These technologies adjust charge voltage
and current over time to prolong the battery’s lifespan.
❖ Field updateable battery firmware. Customers can download a firmware
update utility which allows them to apply firmware fixes to batteries in
service, eliminating the need to replace batteries due to firmware problems.
This program allows customers to apply fixes quickly and at no cost, even
on batteries no longer under warranty.
❖ Optimized battery storage modes. Optimized battery storage allows the
power management application in ThinkPads and IdeaPads to detect if a
user is operating on AC power and rarely.

BATTERY USED IN THE L SERIES

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LENOVO’S PRICE MIX

Lenovo has adopted a smart pricing strategy. In the laptops and PCs market,
Lenovo offers products belonging to different price ranges so that it can cater to
customers belonging to various segments. It has laptops ranging from $400 to
$1000 and they also have other high-end models costing more than $2000. With
the market having excess production capacity, the competition between brands
producing smartphones, tablets and similar products has increased to a great
extent. Lenovo as a brand has to be extremely careful in deciding the price of its
products. If the products are priced too high, consumers may prefer other
competing brands such as Dell, Acer and Hewlett-Packard. On the other hand, if
the products are priced too low, the brand image of the company may deteriorate
in the minds of the users. As far as it comes to the pricing of mobile phones,
Lenovo has adopted the cost-plus pricing method because Lenovo does not
produce a huge variety of products in the mobile phone market and going for a
competitive pricing strategy in its marketing mix would not be a very good idea
in such a case. Lenovo has priced its products competitively which has helped it
retain and grow its market share. While other major players like Dell and Apple
were challenged by the declining PC sales, Lenovo cleverly managed to grow its
business. The reason is its smart pricing strategy. In most product categories it
has priced its products competitively. Even in Laptops and PCs it has released
products belonging to all price ranges. In this way, it caters to diverse customer
segments. However, in smartphone segment it has introduced only a limited
number of models and priced them competitively. The competitive pricing model
has helped it achieve higher sales and become the PC maker of choice globally.

DISCOUNTS
Lenovo has been providing doctors, teachers, students, all the front-line heroes,
military, and senior citizens with a minimum of 5% discount during the COVID-
19 Pandemic Lockdown. It has partnered with ID.me, a next-generation tool with
a focus on security and protection, to safely validate eligibility for their special
offer programs
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Best-Selling Lenovo Laptops Chart (LOW-TO-HIGH)

MODEL PRICE (Rs)

Lenovo Essential G580 17,800

Lenovo ThinkPad V110 23,999

Lenovo IdeaPad 25,330

Lenovo IdeaPad 330-15ARR 26,990

Lenovo NoteBook G575 37,320

Lenovo ThinkPad N23 38,790

Lenovo ChromeBook 900E 39,924

Lenovo YOGA 520-14LKB 40,000

Lenovo IdeaPad 320 PRO 53,445

Lenovo ThinkPad YOGA 11E-G3 60,887

Lenovo IdeaPad 320-15 ABR 67,956

Lenovo IdeaPad 53OS-14ARR 68,330

Lenovo ThinkPad L380 68,999

Lenovo ThinkPad E-585 85,847

Lenovo Flex 5 90,180

Lenovo 4520 99,990

Lenovo ThinkPad L580 1,04,502

Lenovo Xiaoxin 1,13,080

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LENOVO’S place MIX

Lenovo products can be bought online from Lenovo stores and several other
distribution channels too. These products are also available through authorized
national resellers. Apart from it, they are available with retailers like Costco
Walmart, Best Buy etc. Amazon also sells Lenovo products. Customers can
purchase Lenovo products from several channels online including Lenovo’s own
website. These products are available at Amazon as well as Costco, Walmart and
other retailers’ websites too. There are so many websites from which Lenovo
products can be bought. Many authorized national resellers’ also sell these
products from their websites. Thus, Lenovo has established an extensive
distribution network globally by including major retailers and e-retailers.
Lenovo sells its products in over 160 countries across the globe and has around
60,000 employees worldwide. It has exclusive showrooms in various locations
from where products can be bought directly. Lenovo products are also usually
available at multi-brand showrooms which facilitates the comparison of product
features, price etc between two or more brands. It also operates through channel
sales where distributors associated with the company sell to channel dealers and
individual retailers. Apart from these direct distributors, the products are also
available with retailers such as Costco, Walmart, Bestbuy etc. The products also
can be bought online through the official Lenovo website. They are also available
on other E-commerce websites like Flipkart, Amazon, Ebay, Croma etc. Lenovo
has been successful in establishing a very strong distribution network for its
products as there are so many channels available from where users worldwide
can purchase the products of the brand.
Lenovo currently has different facilities for PC and smartphones. Its plant in
Pondicherry currently makes PC while US-based Flex makes handsets for the
company. Lenovo imports tablets from other markets to meet the demand in India
Rahul Agarwal (Managing Director Lenovo India) said that Lenovo is expecting
40-50% growth for its PC business and around 10-15% growth for its tablet
business at a time when the overall tablet market has been stagnant
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MANUFACTURING CENTRE AT SHENZHEN, CHINA

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LENOVO’S promotion MIX

Lenovo uses a combination of traditional and modern channels for the promotion
of its brand and products. It has achieved strong brand awareness globally and is
continuously investing in marketing and advertising. In the Asian and US markets
it is particularly aggressive at marketing its brand. Its advertising and promotional
expenses for 2016 equalled $ 726.173 million which was more than 50 million
higher than previous year. It advertises on television and in print channels. Apart
from that, it also advertises online heavily. It has also used social media channels
like YouTube, Facebook and Twitter to grow its reach and to market its brand
better. Inspite of having strong competitors like Dell, HP and Microsoft, Lenovo
has hit the right target audience and promoted its brand successfully. It has
positioned its products as machines that ‘Do the work’ for the users and as useful
tools that can get important work done and are not just accessories to show-off.
Lenovo uses a combination of various channels including print media, television
advertisements, and social media promotions on Twitter, Facebook and YouTube
to create a strong awareness of its brand globally. It has initiated a campaign
called ‘For those who do’ in 2011, which reflects the ideology of the company
which was built by people who like to take quick action to achieve their goals.
Under this campaign, the users of Lenovo are addressed as creative people who
use state of art technologies and tools to bring their ideas to life. It targets the
younger generation who have better knowledge about the use of such technology
and it aims to partner with such users who can build better tomorrow. In 2013,
Lenovo also signed a contract with Ashton Kutcher who is a big name in
Hollywood, making him the product engineer of the Yoga Tablet. Signing up
contracts with such celebrities who have a huge fan following, promote the brand
to a great extent. Hence this completes the Lenovo marketing mix. Bollywood
actor Ranbir Kapoor was the brand ambassador for Lenovo in 2012. "We want to
play aggressively in the consumer space and become the most preferred PC brand
among the youth. Signing on Ranbir Kapoor is a strong step towards the evolution
of the Lenovo brand and in line with our brand philosophy 'For Those Who Do',"
Lenovo India Director (Marketing) Shailendra Katyal said.
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Ranbir Kapoor as the Brand Ambassador of Lenovo India in 2012

The infamous advertisement of ThinkPad X1

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HP
The Hewlett-Packard Company, commonly shortened to Hewlett-Packard or
HP,) was an American multinational information technology company
headquartered in Palo Alto, California, that developed and provided a wide
variety of hardware components, as well as software and related services to
consumers, small and medium-sized businesses (SMBs) and large enterprises,
including customers in the government, health and education sectors. The
company was founded on January 1, 1939, by William R. Hewlett and David
Packard, two recent electrical-engineering graduates of Stanford University. It
was the first of many technology companies to benefit from the ideas and support
of engineering professor Frederick Terman, who pioneered the strong
relationship between Stanford and what eventually emerged as Silicon Valley.
The company established its reputation as a maker of sophisticated
instrumentation.
Its first customer was Walt Disney Productions, which purchased eight audio
oscillators to use in the making of its full-length animated film Fantasia (1940).
During World War II the company developed products for military applications
that were important enough to merit Packard a draft exemption, while Hewlett
served in the Army Signal Corps. Throughout the war the company worked with
the Naval Research Laboratory to build counter-radar technology and advanced
artillery shell fuses. In 1999, Hewlett-Packard Company spun off its electronic
and bio-analytical test and measurement instruments business as Agilent
Technologies; HP retained focus on its later products, including computers and
printers. It merged with Compaq in 2002, and acquired EDS in 2008, leading to
combined revenues of $118.4 billion that year and a Fortune 500 ranking of 9 in
2009. In November 2009, HP announced its acquisition of 3Com, with the deal
closing on April 12, 2010. On April 28, 2010, HP announced its buyout of Palm,
Inc. for $1.2 billion. On September 2, 2010, HP won its bidding war for 3PAR
with a $33 a share offer ($2.07 billion), which Dell declined to match.
On November 1, 2015, the company spun off its enterprise products and services
business Hewlett Packard Enterprise. Hewlett-Packard retained the personal
computer and printer businesses and was renamed HP Inc
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MARKETING MIX
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MARKETING MIX

hp’S PRODUCT MIX

HP has placed increased focus on consumer needs and altered its strategy to suit
the needs of the 21st century consumer whether it is an individual, a small
business or a large corporation. From laptops to cloud ready servers, the focus is
on innovation to better cater to consumer needs. It has a rich product portfolio of
products related to computing, data storage and information technology
infrastructure. In the laptops and PC segment, it has released products that cater
to the needs of diverse user groups. From standard laptops to business laptops and
gaming laptops it has introduced several different models. The market is growing
richer in HP made convertibles and detachables which serve both as laptops and
tablets. Its desktops too are just as rich in variety. From towers to workstations
and 3 in ones, it has released different models suitable for different customer
groups. Other products by HP include Printers and accessories, displays and
accessories, computing and mobility solutions for small and large businesses and
so on. HPE mainly deals in IT infrastructure products including cloud ready
servers, integrated IT systems and data storage and protection solutions. In this
way, HP deals in a diverse and rich product mix. The product strategy and mix in
HP marketing strategy can be explained as follows: HP is a leading computer
hardware & software company. HP Inc. produces hardware like personal
computers and printers. The categories of products offered by HP in its marketing
mix are as follows:

➢ Computers
➢ Laptops / Tablets
➢ Printers
➢ Scanners
➢ Digital cameras
➢ PDAs
➢ Servers

Various printers offered by HP include Black and White Laser Printers, Color
Laser Printers, Inkjet All-in-One Printers, HP DesignJet Large Format Printers,
HP Indigo Digital Presses, HP Latex Printers & Network Print Server. Computers
are further divided on the basis of usage, viz. High volume, office and personal.
HP personal computers consist of the following brands. HP Omnibook, Compaq
Presario, HP Envy, G series, HP Mini are the more popular brand of computers.
Tablet computers include brands like HP Slate, HP TouchPad, HP Omni 10
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MARKETING MIX

popular
models

HP 15 Ryzen 3 Dual Core 3200U - (4 GB/1

TB HDD/Windows 10 Home) 15-db1069AU
Laptop (15.6-inch, Jet Black, 2.04 kg, With
MS Office)

HP 15s Core i3 10th Gen - (8 GB/1

TB HDD/Windows 10 Home) 15q-
DS3001TU Laptop (15.6-inch, Jet
Black, 1.91 kg, With MS Office)

HP 15s Core i5 10th Gen - (8 GB/1 TB

HDD/256 GB SSD/Windows 10 Home/2 GB
Graphics) 15s-dr1000tx Thin and Light
Laptop (15.6-inch, Natural Silver, 1.74 kg,
With MS Office)
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MARKETING MIX

hp’S price MIX

Generally, HP has followed the competitive pricing strategy and brought products
to the market in the mid-range and lower range prices. The premium segment
was mainly dominated by Apple, Dell and Lenovo. However, in the recent times,
its focus on premium products has increased. It has introduced a series of laptops
and printers in the premium segment. Its SPECTRE laptop is being touted as the
most beautiful laptop. Its premium consumer notebook strategy is also said to be
working effectively. Even in gaming segment it has introduced produced products
for the higher end users. HP’s focus still is not entirely on the higher segment
only. It has a wide product portfolio where products for all segments including
mid-range and value segment are also available. HP has a very in-depth product
portfolio and hence a very diverse pricing range in its marketing mix. It operates
in computers, printers, workstation and servers only but within these categories
also the product depth is high. So many variations to suit the needs of businesses.
HP follows fair pricing strategy; it charges for the quality and expertise it gives
in the field of hardware and software. HP fights with competition based on its
quality regime and supreme performance and after sales services. Newer products
with latest innovative technologies are priced at a premium and as competition
enters the prices are reduced gradually

DISCOUNTS
HP provides discounts to eligible students and also provides huge discounts on
Indian festive occasions as well as Thanksgiving Day by the name of Black
Friday Sale. HP has its own terms and conditions on eligibility and maximum
discount % which differs from age to age
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MARKETING MIX

Best-Selling hp Laptops Chart (LOW-TO-HIGH)

MODEL PRICE (Rs)

HP 15Q-DS0005TU 27,071

HP ChromeBook 14-AK031NR 33,051

HP 5AY25PA 40,973

HP 14-AX040NR 41,366

HP 10-PO18WM 47,978

HP 15-BAO77CL 52,962
HP Stream14 56,323
HP 2XP6IUTABA 62,477

HP ProBook 455 G5 67,463

HP 3VN 32UA 77,888

HP Z Book 15 G4 1,02,798

HP ProBook X360 440GI 1,16,705

HP Z Book 15 G3 1,40,540

HP Envy X2 12-GO 18NR 1,41,630

HP EliteBook 735 G5 1,49,681

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MARKETING MIX

hp’S PLACE MIX

HP products are available through both online and offline channels. Customers
can shop for HP products direct from its website or from its brand stores. The HP
brand stores are designed to provide the shoppers with a delightful shopping
experience. These brand stores beautifully showcase, HP’s product and its
passion for technology. Apart from it, one can find these products at Amazon and
Walmart websites too. HP has also established a wide network of authorised
resellers globally. Buyers can use its store locator find the location of the nearest
store. These products are available with major retailers like Costco, Walmart,
Best Buy etc. HP is a recognized global brand and it has a strong global
distribution network. HP is a global brand and it has its presence all across the
world. With its products & services, HP is present in more than 170 countries
worldwide. HP sells its products both directly and indirectly. It has exclusive
stores of HP and also multi-brand store where it is available. HP has a presence
on online portal as well products can be bought directly from websites or from
other shopping websites. It has a lot of partners which can be located through its
website who sell HP products. HP is known to have presence of service centres
most cities making post sales services easily accessible. Its subsidiaries are
located around the globe. HP remains in touch with all parts of its supply chain,
logistics, middlemen, suppliers, manufactures, etc. With the ‘Make in India’
initiative being very actively followed, PC and printer HP Inc said it has started
PC manufacturing operations at electronics giant Flexes facility in
Sriperumbudur, Tamil Nadu. The plant will manufacture desktops and
workstations to enable HP meet current and future customer needs, while driving
greater operational efficiency, the company said in a statement. The plant will
have the flexibility to scale up manufacturing capabilities on demand. “With the
inauguration of this new facility, we aim to strengthen our commitment to India
and support the growth of the local manufacturing ecosystem,” said Ketan Patel,
Managing Director, HP India Market. The location of the plant provides it access
to a nearby port and HP’s spare parts facility in Bengaluru, enabling the company
to quickly procure materials from other parts of India and from Asia. “We are
delighted to partner with HP to manufacture desktops and workstations in India
and are committed to helping HP meet the current and future needs of its
customers,” said Richard Hopkins, Senior Vice President, India Operations at
Flex.
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MANUFACTURING UNIT OF HP NEAR CHENNAI

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hp’S PROMOTION MIX

Like other PC and electronics brands HP too spends heavily on the promotion of
its brands and products. These products are advertised through both online and
offline channels. Television ads, print ads, media promotion, online advertising
as well as other methods of advertising and promotion are also used by HP. Its
brand stores also promote its brand and products effectively. Apart from it the
brand has used special ad campaigns for products like Pavilion or SPECTRE. It
is said to have spent millions on a single ad campaign a few years ago to promote
its Pavilion notebooks. HP has also spent significant amounts on the promotion
of its SPECTRE and ENVY notebooks. The brand also invests in CSR and
sustainability initiatives to promote an accountable and ethical brand image. HP
uses 360 branding in its marketing mix for creating brand awareness. HP ad
campaigns are spread across different media like TV, newspapers, magazines,
website, billboards etc. HP has a campaign called One Voice, this campaign was
designed to resonate the image of HP as one stop solution to hardware and
software needs. The campaign was successfully integrated to its website and
outdoor campaign as well. HP also has an exchange program which allows to
exchange old products for new. Other than regular discounts, sometime HP has
offered some services for free for a period of time in order to promote HP. HP
has also played the sponsor in many sports like formula one and Premier League
Club. Hence, this gives an insight in the marketing mix of HP. Just like Lenovo,
HP too assigned a Bollywood celebrity back in 2014 in order to market its
products to the Indian audience on a larger scale. Hewlett-Packard India (HP
India) announced Deepika Padukone as its brand ambassador while unveiling HP
Slate6 VoiceTab and HP Slate7 VoiceTab, plus four new mobile devices. They
have recently assigned Bollywood actress Sonam Kapoor as their ambassador
with the slogan “Sonam meets Spectre”. In order to target the young audience,
HP came up with a marketing strategy so that children purchase their laptops for
online classes during the COVID-19 Global Pandemic.
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MARKETING MIX

SONAM KAPOOR AS THE LATEST BRAND AMBASSADOR WITH A CATCHY SLOGAN

HP PAVILION X360 PC MARKETING FOR STUDENTS FOR ONLINE CLASSES

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MARKETING MIX

COMPARISON BETWEEN LENOVO AND HP’S MARKETING MIX

BASIS LENOVO hp
PRODUCT MIX ➢ Lenovo has set choices such as ➢ HP at times confused
Business, Gaming, Convertible the buyers because of all
Laptops. Lenovo has made it easier its products look very
for buyers to distinguish between similar. The visible
the various choices and choose the drawback is the heavy
best device for their needs. Lenovo look of the cheap
also a series follow-up ranging laptops because of the
from series such as IdeaPad, battery used, and does
YOGA, ThinkPad, ThinBook and not display a very
Legion which server for different pleasing categorical
purposes based on what the need product list. Its product
is. names are also very
confusing and numerical
but the internal
processing and speed is
➢ Lenovo also concentrates on the unbeatable
quality of its products and aims to
give the best quality laptops which ➢ HP has not shown great
can be used for long term purposes. concentration on the
The website assures the use of quality of goods used.
good quality and the eco friendly Their website simply
method of recycling which is not shows their range of
very common amongst laptops. It products but nothing to
also assures a more that deal with consumer
satisfactory level of battery which satisfaction.
is tried and tested as well.
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MARKETING MIX

BASIS LENOVO hp
price MIX ➢ Lenovo products are priced based ➢ HP products are priced
on their services provided based on their services
internally, build quality, and various provided internally, build
other factors which depends from quality as well, which
series to series and from model to depends from series to
model. Lenovo prices start from series and from model to
around Rs. 15,000 and can go up to model. HP prices start
a whooping Rs. 2,00,000 based on from around Rs. 20,000
the device and its specifications. and can go up to a
whooping Rs. 2,50,000
based on the device and
its specifications. With
respect to the pricing,
both companies are quite
similar in nature.
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MARKETING MIX

BASIS LENOVO hp
place MIX ➢ Lenovo products can be bought ➢ HP products are available
online from Lenovo stores and through both online and
several other distribution channels offline channels.
too. These products are also Customers can shop for
available through authorized HP products direct from
national resellers. Apart from it, its website or from its
they are available with retailers like brand stores. The HP
Costco Walmart, Best Buy etc. brand stores are designed
Amazon also sells Lenovo products. to provide the shoppers
Customers can purchase Lenovo with a delightful
products from several channels shopping experience.
online including Lenovo’s own These brand stores
website. These products are beautifully showcase,
available at Amazon as well as HP’s product and its
Costco, Walmart and other retailers’ passion for technology.
websites too. There are so many Apart from it, one can
websites from which Lenovo find these products at
products can be bought. Amazon and Walmart
websites too. HP has
also established a wide
network of authorised
resellers globally. Buyers
can use its store locator
find the location of the
nearest store. These
products are available
with major retailers like
Costco, Walmart, Best
Buy etc. HP has also
started to follow the
‘Make in India’ initiative
where it has opened
production units in
Chennai.
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MARKETING MIX

BASIS LENOVO hp
promotion MIX ➢ Lenovo uses a combination of ➢ HP too spends heavily on
traditional and modern channels for the promotion of its
the promotion of its brand and brands and products.
products. It has achieved strong These products are
brand awareness globally and is advertised through both
continuously investing in marketing online and offline
and advertising. In the Asian and channels. They had also
US markets it is particularly organised campaigns
aggressive at marketing its brand. such as One Voice – to
resonate image of HP as
➢ Lenovo advertises on print the one stop solution
channels, television, and has used ➢ HP uses 360 branding in
celebrity actors from Bollywood its marketing mix for
such as Ranbir Kapoor as their creating brand
brand ambassador in order to awareness. HP ad
increase the demand of their campaigns are spread
products. across different media
like TV, newspapers,
magazines, website,
billboards etc. They too
used Bollywood
celebrities such as
Sonam Kapoor and
Deepika Padukone as
their Brand
Ambassadors.