Growing SEEM segment in emerging markets Advantage over foreign rivals supported by the China government Astonishing increase in mature markets across Western Europe, North America and Japan by cooperating with NECK and Median Threats Global competition with strong brand rivals (HP, Dell, Apple) Small scale competitors Intense competition could depress price and hence its profit margins Increasing mobile phone and table PC market Economy uncertainty 2. Target market Based on the SOOT analysis, I would choose the mid-low price PC consumers n China, India and Southeast Asian countries as the main target markets.Build on a strength.
Leno can make the best use of its brand awareness in the target markets. China market still gives high performance and has a great potential to grow in the subsequent years. Other emerging markets, such as India and southeast Asian countries, are in the same situation.
Correct a weakness. Leno has its main facilities in Asian countries. So it is advantageous for them to research consumer demands of the target markets. The distribution cost can be lower than other regions like NorthAmerica and Europe. Exploit an opportunity. Leno has the number one market position for notebooks in Asian countries.
The growth of small and medium enterprises customer segment can be a good chance for sales. With the help of China government, Leno can have price-competitiveness against its foreign rivals. In the emerging market, such as India, the PC market has a huge potential to grow by more than 20 percent over the subsequent few years. Avoid a threat. Domestic competition in China seems more favorable for Leno.
Its smart phone and table lines were successful domestically and surely enjoyed home-ground advantage over foreign big competitors such as Apple. India and emerging Asian countries can be a good market because Leno can avoid intense competition with the big companies compared to the other regions like North America and Europe. 3. Leno’s marketing program for the target market segment Here are four strategic approaches to be successful in the target markets. Product strategy. Diversity in its product line may cause its downfall, as evidenced by MOM.So it would reorganize the product line more efficiently and try to make hit product in some focused categories instead of making so-so product in a variety Of categories.
Price Strategy. Guarantee lower price than the competitors to confront aggressive pricing attacks by competitors. To accomplish this strategy, Leno should identify inefficient cost composition and innovate its supply chain management. Promotion strategy. As smartened and tablet users drastically increase, make the best use of digital tools, such as Youth and Backbone, to promote its products.Use the dominant local digital tools in the target countries because Backbone and/or Youth may not be the number one in some countries. Emphasize its position as the market leader and its competitive price.
Also, Leno can make a new partnership with famous sports events, such as the Asian Cup Championship because it had successful partnership experience in the first decade of 11th century. Place strategy. Outlets and Online stores are good places for personal consumers. Online stores help Leno adjust its price strategy in a very flexible way.