BEIJING Olympic Marketing Strategy for Lenovo Enterprise

ign="center">from printers to servers and notebooks.
Literature reviewEverything aspect from collecting and keeping
Kotler, Philip, Keller and Lane (2005) describesparticipant’s information to showing the
marketing as a set of processes that are undertakenscores, and all activities of Beijing Organizing
by an organization in order to create, communicateCommittee for the Games XXIX Olympiad (BOCOG),
and add value to the products that the organizationThe company plans to use more than 20,000
deals with The aim of marketing is to createproducts at the Olympic games. (Levono company,
awareness and a relationship to the customers in a2008)
manner that will be beneficial to the organization andTechnology
the stakeholders. Marketing do exist as an activity ofLenovo Company has employed the latest
an organization, and it is ever changing in accordancetechnology in their technology revolution, the
to new trends and technology in the field. As Kotler,versatility and diversity of Lenovo products is
Philip, Keller and Lane (2005) notes, in style marketingunequalled, having a big range of product solution
represents the way the society develops, and it iswhich spans from desktops to high technology think
dynamic as it is ever going through changes. It offerspads. Lenovo Company also is a leader in the field of
new products and services on the customers usingvideo screen technology as shown when it is installing
new techniques and communication media. Marketinggiant video screens in the Beijing Olympic stadium.
business is big and always growing.The reputation and reliability of the
The political policies that support businesses sponsorcompany’s products has made it possible
Beijing Olympic Gamefor the company to market its products to a wide
The political policies that support businesses sponsorrange of Beijing venues and events (Levono
in Beijing Olympic games in china are supposed notcompany,2008))
interfere with the games. Politics, business areQuality products
supposed to compliment each other but not toLenovo Company is a market leader particularly in the
impede each other. However, the 2008 Septemberarea of computer and computing devices and other
Olympic Games is bound to elicit a lot of pressuretechnological related equipments a. The
and controversies on the political arena regarding thecompany’s consumer PC technology,
Chinese human rights records and political system.servers, notebooks, ThinkPad can be found installed
(Plummer, 2008)in many venues which the Olympic games are going
According to human rights watch, it has arguedto take place. Lenovo is currently a powerful
Olympic sponsors to tackle human rights abusescomputer company in china though it is trying to go
which are currently taking place in Beijing Games,global; it has a good reputation of high quality
through targeting what can be achieved. The stepscomputing products, going by the quality of products
that Human Rights are proposing are in deed in lineit offers. The company has grown substantially in the
with the sponsors ‘s support and also withrecent years going inline with product mix with more
the Olympic Charter as well as with corporate socialthan 2000 different types of products. (Levono
responsibility of companies which to sponsor thecompany, 2008)
Olympics. In addition to that, Microsoft and NBCPersonnel training and preparation
companies which are also included in sponsoring theIn preparation for the Beijing Olympic, the company
Olympic Games are also supposed to follow thehas increased it technical staff in terms of numbers
policies of sponsoring the games which as it has beenand enhanced their training. According to the
stated is to avoid political interference butcompany records, more than 300 engineers of the
campaigning for achievable human rights.company had to undergo a wide-ranging technology
Major global sporting events such as Olympic Gamesrehearsal for three days in the month of June in
present companies with opportune moment forwhat the company terms as “most grueling
companies to exploit and market their products. Andtest in preparation for the Beijing Olympics beginning
the 2008 Beijing Olympic Games is not different. Thisin August” (Levono company, 2008)
Olympic Games has offered a number ofIn another communication regarding the company
companies’ opportunities to market theirmarketing strategy for the Beijing Olympics, the
products. Among these companies is the Levonocompany further disclosed that, there will be another
Company which is a top hi-technology company intechnical rehearsal in the month of July to stimulate
China. The company is involved in manufacturingthe company technical staff to the event. The
different technological products and it has acompany will test its computing equipments that are
sponsorship deal with the IOC to equip Olympicto be used in the Olympic Games in every venue of
venues with its equipments. (Quelch, 2008)where the equipments are placed. According to one
Getting a marketing deal or sponsorship at theof the top marketing executive of Lenovo Alice Li,
Olympic Games is normally a dream come true forwho is the vice president of the Olympic marketing
any marketer. However, given the extensive protestcommittee, the technicians will be testing hit on
seen global against the Chinese government,switches on all the computing equipments and testing
companies are bound to be faced with different andanything which could go wrong during the event. In
new challenges brought about in Beijing, top on theseorder to improve its products in readiness for the
challenges include:Beijing Olympics, the company reported in June that
1. Political demands put at the Chinese administrationover 20,000 pieces of different equipments had been
will create challenge for companies sponsoring thetested over the last one year and the testing was
Olympic Games which do not wish to be linked withsupposed to be over by July. (Marketing media,
the political controversy.2008)
2. Considering that Chinese market is the biggestEvaluate Lenovo Enterprises’ business
globally, it becomes apparent that no company willactivities
probably boycott the games.Lenovo which is the fourth biggest PCs manufacturer
3. A number of companies will take a dual marketingglobally and the only Chinese company sponsoring the
method where they will invoke China specificOlympic Games have invested in the games a lot of
marketing campaigns within the country and invokemoney. According to the records the company is
less China specific message outside the country.going to spend about $ 100 millions. Levono paid
4. The usually high advertising boost associated withmillions of dollars to sponsor the Olympic torch relay.
Olympics advertisements may be low as companiesThe company sponsorship is likely to increase its
reduced their marketing in Olympic-associated brands.sales within the Chinese market but it may reduce its
The IOC has continued to argue companies andmarket share in foreign countries as consumers may
other stakeholders that the Olympic Games andboycott its products. (Marketing media, 2008)
aspirations as well as attainments of all athletesPersonnel training
should not involve politics. Though it seems that theDifferent equipments to be used in the Beijing 2008
Chinese administration intends to use the games toOlympics were chosen to complement different
improve its political image, the IOC do not want asporting venues; this is according to the company
repeat of what happened in Moscow when a numberinformation. For instance, the ThinkCentre M55e
of companies and athletes boycotting Olympics.computing device which is able to function in damp
(Quelch, 2008)surroundings has been thoroughly tested at in
More so, all companies which are involved in thedifferent conditions some up to 95% humidity for
Olympic Games are supposed to not to upholdexample in Beijing national aquatics centre to make
policies which conserve the environment t andsure that the equipments works perfectly. (Levono,
promote sportsmanship. The games are not2006)
supposed to be used as a political arena to fosterIn addition, As a marketing strategy for the Beijing
political interests or ideologies. This message isOlympics, the company is also training about 570
according to the International Olympic committeeengineers to run and troubleshoot all the desktops
(IOC)and notebooks to be used in the games. The
(Waltham, 2007)engineers are initially trained in a setup similar to
As noted by Plummer, (2008) those organizationsclassroom and then given mock assignments. The
which honestly align themselves with the OlympicBeijing organizing committee will as well conduct extra
principles ought to go ahead and support or sponsortraining classes with engineering groups from other
the Olympic games and gain from the truth that theirOlympic partners; this is according to the company
products will be at the center stage of the globalinformation. (Marketing media, 2008)
event for a period of three weeks. Supporting andIncrease in distribution channels and market share
sponsoring the Olympic Games does not imply that aLenovo Company plans to increase its retail
company is supporting the Chinese political ideologies,distribution profile in Hong Kong and Thailand in
but, shunning sponsoring the games implies that apreparation to the Beijing Olympic Games. This will
company is opposing the Olympic sprit. It will beboost the present “exclusive
hypocrisy for a company to pull out of thestations” and its presence in these markets
sponsorship of the games or supporting the gamesfour times. (Hughes, 2005)
and yet, the companies continue to do business withThe company as well intends to enhance its
or within China. Putting in mind that there are clearcompetitiveness of its personal computers and
policies guiding sponsorship deals, there is no point ofimprove its global supply distribution channels through
the games to pull out.adding more international manufacturing plants in
The relationships between Lenovo Enterprise andMexico and also India. This is according to How Sin a
Beijing Olympic Game that includes some successfultop executive director in the company concerned
business activities through utilizing Beijing Olympicwith business relationship in Asian countries. The
Gamecompany ThinkPad and notebooks are doing well in
Basically, it has been a golden chance for marketingthese markets. However, the branded computes
the Levono products on a global event such as thefrom the company are their number one selling item.
Beijing Olympics. This opportunity will give theAs part of its marketing strategy in Thailand, the
company a chance to show case its products andcompany has undertaken to sponsor two Thais who
easily market its wide range product line. At theare taking part in the Beijing Olympic Games. (Quelch,
same time the company will have a chance to build2008)
its international team as well as infuse fresh passionConclusion
and vigor into its brand image and its corporateMarketing is very important for any company to
culture. (Quelch, 2008)success in this current world where business
The company is a member of the IOC and it has acompetition has moved to new heights. Olympic
duty to provide computing technology equipmentsGames presents the best chance for any company
during the event provide services and support into show case its products and tap on new markets,
terms of computer technology for period of fiveand expand its market share. However, the coming
years. During this period, the company will offerBeijing Olympic Games in china have present many
desktops, notebooks printers and other computingcompanies with a number of challenges due to the
technologies. In addition the company will also fundhuman rights record of china and the political situation
and support the Beijing Olympics Games just as itof the country. Levono company, the leading
sponsored the Turin Olympic winter games. Lookingtechnological company I china has a sponsoring deal
at it from a business viewpoint, this partnership willwith the IOC and the deal provides the company
offer the company a lot of opportunities to expandwith a chance to expand its market share within the
its market share both locally in china andChinese market and improve its image globally. The
internationally in other countries.company has undertaken different marketing
The Olympic Partner (TOP) program which Levonostrategies to achieve its goals during the sponsorship.
has entered with the IOC was started in 1985 and itReference
is the biggest level of sponsorship globally. LenovoLevono company: (2008): about the company;
being an outstanding company in China technologyavailable at:
industry, its products together with services enjoyHughes, M. (2005): Buzz marketing: Get People to
widespread approval and high status. The partnershipTalk about Your Stuff, Penguin/Portfolio; New York.
with the IOC will further improve the image of theHuman rights (2008):Olympic Corporate Sponsors:
company and increase its market share. (LevonoRhetoric and Reality regrieved from
company, 2008)Kilter, P (1996): Principles of Marketing: Stages of
The steps of Olympic marketing strategy for Lenovocustomer relationships. 4th European Edition Prentice
that help the company achieve their sales and profitHall Harlow (UK)
objectivesKotler, Philip, Keller and Lane (2005): Marketing
Levono Company a personal computer manufacturerManagement, Prentice Hall
company started working and getting prepared forLevono (2006) CEO's interview; Annul Report
Olympic Games as early as 2004, when the company:Available online at: 04/F105.pdf
publicized its sponsorship deal. Levono has a numberMarketing media (2008): Should business sponsors
of staff working on this project. The project will seeshun the Beijing Olympics?
the company’s number of products, ranging