This Yoga Does the Bending Over For You..

The all new Yoga 900s by Lenovo sets a new standard for 2 in 1 convertible laptops. It’s the latest iteration on the groundbreaking Yoga 900, a fantastic laptop in its own right.

At under 1kg in weight, and only 12mm thick, with a 12.5″ display, the 900s really is pushing the boundaries on what a laptop means.  So, with such a fantastic product, how are Lenovo utilising the market to get the product sold?

 

 

In the marketing mix, the “place” can often be a very difficult balance with price & product.  So it does pose an interesting question, when the brand new 900s, is currently only available in Australia via 2 sources.

Harvey Norman & JB HiFi, it would seem, have some exclusive arrangement in place. Some other retailers are advertising as coming soon, but no-one else has it available.  If we look at the size and presence of these two juggernauts, it’s possible to understand why Lenovo chose this direction, especially related around the online channel.

For many organizations, the Internet is just another distribution channel. For others
it is a business model that allows servicing customers on a much larger area in a more
efficient manner. (Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences. Marketing Mix in the Online Environment Date: September 1, 2014 )
Not only do both Harvey Norman & JB HiFi have huge online channels, but they also have national retail outlets. Harvey Norman “As at 31 December 2011, there were 216 franchised complexes throughout Australia” (http://www.harveynormanholdings.com.au/pdf_files/Company_Profile_2012.pdf), while JB HiFi has 210 stores Australia wide.
The huge online presence, coupled with the 420+ stores nation wide, allow Lenovo to give these two retailers exclusive distribution, even if for a limited time, while still gaining huge coverage in print, online and physical displays.
Advertising.jpg
Harvey Norman and JB HiFi have been chosen not by accident.  “Marketers reliably find that large, powerful retailers can make or break a new product” (Iacobucci, 2013). Harvey Norman have a higher value brand equity and are known for quality products.
Though, I’m not sure if Harvey Norman are valued high enough to be considered luxury “We refer in this case to the stores with an image of high class establishment such as commercial establishments that sell luxury brands inside the malls or department stores located in major city centres that sell high quality products and brands. (Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences. Contributions to the foundation of the marketing mix for retail companies Date: January 1, 2014).  
While JB HiFi are known more for their discounting and price matching “all at cheap prices!”, as stated in their ‘about us’:
This diversity, gives a good spread of consumers, and can give Lenovo good feedback as to the distribution channels they’ve chosen, which can help them make decisions regarding the customers / retailers they expand their distribution to.
“Companies are also trying to be strategic, considering how an additonal channel would impact sales and profits and therefore how to allocate resources across channel options. (Iacobucci, 2013)

 

So what do you think?  Have Lenovo made the right choice by restricting sales of this new product?  It is too early to know for sure how this will play out for them.  But it is definitely something l’ll be keeping an eye on, and l’m sure that all the sophisticated marketing resources that Lenovo have at their disposal aren’t ignoring it either.

Author: Andrew Ryan (acry78)  Date: 16/5/16

References:

Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences. Marketing Mix in the Online Environment Date: September 1, 2014

http://www.harveynormanholdings.com.au/pdf_files/Company_Profile_2012.pdf

Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences. Contributions to the foundation of the marketing mix for retail companies Date: January 1, 2014

Iacobucci, Dawn. 2013.  MM4. South Western – Cengage Learning

https://www.jbhifi.com.au/General/Corporate/Consumer-Matters/About-Us/

 

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