© 2005 lenovo lenovo confidential lenovo announcements

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© 2005 Lenovo Lenovo Confidential Lenovo Announcements New Brand, New Products, and New Ways of Doing Business

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Page 1: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo

Lenovo Confidential

Lenovo Announcements

New Brand, New Products, and New Ways of Doing Business

Page 2: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

2Lenovo Confidential – February 17, 2006© 2005 Lenovo

1st Half 2006 Channel Disclosure Package

Lenovo America’s Objectives - 2006 Establish Lenovo in market

High Quality & Reliable

Products

Service

Excellence

Innovation

Customizedservice

CTOLeadMgmt

CustomerMkting

Customize TCO Stable

MarketingProduct

Standard service

BTSChannel

Mgmt

Supply

Product

Mkting

Innovative Std. config

Sales Service

Product driven model = NEW OPPORTUNITIES!!

Customer driven model

Transactioncustomers

Relationshipcustomers

Establish a Dual Business Model

Launch Lenovo branded Products for SB and continue to grow Think branded products in MM, LE and PS.

Page 3: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 3

Lenovo 3000 – Launching Feb 23rd

Excerpts from Feb 23rd Press Release

- A significant milestone in the PC industry

- A culmination of Think and Lenovo research leaders, scientists and product design teams from around the world

- Coming together to create one of the first truly international PC brands

- Delivering on its promise to extend innovation to more customers, Lenovo leveraged its new world-class engineering team to develop a unique suite of built-in productivity tools, called Lenovo Care, that empower value-conscious customers with a worry-free computing experience

Be sure to review and understand the supporting product family positioning and Internal Q&A documents sent along with today’s presentation

Page 4: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 4

Small Business Accounts for Half of All Business PC Sales

94M PC Unit Sales within Business Segments,4Q04-3Q05

SB 1-99

LB 500+

MB 100-499

Source for share, 4Q growth and volume: IDC WW PC Quarterly Tracker 3Q05Source for CAGRs: Lenovo MI internal data

CAGR 2005-09: 6%Lenovo Share: 15%

CAGR 2005-09: 7%Lenovo Share: 11%

CAGR 2005-09: 10%Lenovo Share: 6%

Page 5: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 5

Lenovo’s Share is Skewed to the Upper Price Cells

WW Opportunity and Lenovo Unit Share by Price BandLB/SMB Total Client: 4Q04-3Q05

$0-$499 $500-$799 $800-$999 $1,000-$1,199

$1,200-$1,499

$1,500-$1,999

$2,000+

4Q04-3Q05 Total Market Lenovo Share

Source: Gartner Personal Computer Quarterly Statistics Worldwide by Region – Final Database 22Nov 2005

Page 6: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 6

Customizedservice

CTOLead

ManagementCustomerMarketing

Customization New technology TCO Stable

Dual Business Model

MarketingProduct Development

Standard service

BTSChannel

Management

Supply Chain

Product

Marketing

Innovative/industrial design

New technology Standard

configuration

Sales Service

Product driven model = NEW OPPORTUNITIES!

Customer driven model

Transactioncustomers

Relationshipcustomers

Page 7: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

7Lenovo Confidential – February 17, 2006© 2005 Lenovo

1st Half 2006 Channel Disclosure Package

Small Business Customers – Who Are They?

Think & 3000 ProductsImage & Innovation CustomersMix of all small business up to 99 employeesMay or may not have an IT departmentNotebook-centric companiesCares about PC aesthetics

3000 ProductsValue/Protection/Service CustomersPrimarily 1-19 employees Typically has no IT staffLess data-intensive business

Think ProductsLifeline CustomersPrimarily 20-99 employees Typically has an IT staffHighly reliant on PCs for core business

Source: Small Business & Very Small Business PC MarketGartner Research Study Commissioned by LenovoOctober, 20005

Page 8: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 8

Extension of products for new markets

Launch new line of Lenovo branded products (desktop and notebook) to a worldwide audience

This is the first launch of Lenovo-branded products!

Improve breadth of product portfolio, particularly for small business / very small business

Sell to customers who don’t buy ThinkPad and ThinkCentre today!

Page 9: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 9

3000Family

ThinkBrandedProducts

•Worry-free•Great Value•Exciting/Stylish

The Smart Choice

•Success/Prestige•Rock Solid•Lowest TCO

Ultimate Business Tool

Customer Type

TransactionalRelationship

Different,Better

Standard

LE/Mid Market ConsumerSmall Business

Product Core Positioning

Page 10: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 10

A More Complete Lenovo Desktop Product Line

ThinkCentre M SeriesM Ultimate Stability and Manageability for the Enterprise

ThinkCentre A SeriesA Quality, Reliability, and Manageability

ThinkCentre E Series Essential Business Features, Great

Value

E

J 3000 J SeriesThe Smart Choice for Small Business Needs and Budgets

Page 11: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 11

Lenovo Care One-Button System Recovery Performance Restoration Automatic Updates

Contrasting front bezel color Side-access air venting Award-winning keyboard Tool-less entry chassis

1 year warranty IBM Service and Support

Lenovo 3000 J Series Product Overview

SiS 661 Chipset with Pentium 4 and Celeron Dprocessors or AMD Socket 754 board with AMDSempron and Athlon processors

Serial ATA drive support 6 USB 2.0 ports, 2 in front Front audio

Page 12: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 12

Lenovo 3000 J Series - Key BenefitsNew, innovative desktop line from Lenovo offers worry-free computing at a great value

Worry-free computing through Lenovo Care- Performance Restoration: Keep your PCs running like new- 1-Button System Recovery: The only PC that can recover from a virus at the click of a

button - Automatic Updates from Lenovo: The only PC that updates itself

Great Service and Support available from IBM- Great products from Lenovo and the best in support from IBM makes a great combination

Easy to Buy- Products are available how you want them, where you want them, when you want them

Great value- Attractive prices for a range of technology that meets your needs- Competitive entry price points for first time buyers- Lenovo’s world-class engineering delivers high quality, reliable desktop/notebook PCs.- 1-year industry standard warranty with the option to increase to 3 years- Incredible software and Lenovo solutions come preinstalled and standard

Targeted at the Small Business (1-99) Segment

Page 13: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 13

Lenovo Desktop Product Line

ThinkCentre A51 Designed for Small

Business Variety of form factors

$500

$800

$1200+

ThinkCentre M52 Next enterprise stable

platform ThinkCentre A52 Next generation of Small

Business modelsFebruary Announce

ThinkCentre E50 New offering for Small

Business

3000 J Series Intel & AMD offerings

3000 J100/J105

$400

$300

Page 14: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 14

Lenovo 3000 J100 Tower Proven technologies include SiS® 661 Chipset

-AGP Slot

-Pentium® 4 processors

-Serial ATA hard drive support up to 250GB

-6 USB 2.0 ports, 2 in front

-Front audio

New 4x4 (25L) Tower Design

-Durable steel chassis, tool-less entry

-3 PCI and 1 AGP slots for expansion

-14.7”H x 18.0”D x 7.1”W

Model CPU GHz FSB Memory HDD GB Optical Modem Speakers FDD O/S MS SBE List Price

825325U P4-516 2.93 533 256 80 CD-ROM Y EXT Y XP-Home N $499

825326U P4-516 2.93 533 256 80 CD-ROM N None Y XP-Pro N $549

8253D4U P4-630 3.00 800 512 80 Combo Y EXT N XP-Home N $599

825328U P4-516 2.93 533 512 80 Combo N None N XP-Pro N $599

8253D5U P4-630 3.00 800 512 80 Combo N None N XP-Pro N $649

8253E1U P4-640 3.20 800 512 80 Combo N None N XP-Pro N $699

8253D6U P4-630 3.00 800 512 160 MULTI N None N XP-Pro N $699

8253E2U P4-640 3.20 800 1024 160 MULTI N None N XP-Pro N $799

825327U P4-516 2.93 533 512 80 CD-ROM N None Y XP-Pro Y $849

Page 15: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 15

Lenovo 3000 J100 Tower GBB

3000 J100825325U

P4 516 (2.93GHz) 256MB/80GB/CD/XPH

$499

3000 J100825326U

P4 516 (2.93GHz) 256MB/80GB/CD/XPP

$549

3000 J1008253D6U

P4 630 (3.00GHz) 512MB/160GB/Multiburner/XPP

$699

3000 J1008253D5U

P4 630 (3.00GHz) 512MB/80GB/Combo/XPP

$649

3000 J1008253E2U

P4 640 (3.20GHz) 1024MB/160GB/Multiburner/XPP

$799

3000 J100825328U

P4 516 (2.93GHz) 512MB/80GB/Combo/XPP

$599

Page 16: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 16

Lenovo 3000 J105 Tower Proven technologies include AMD Socket 754 board

-AGP Slot

-AMD Sempron and Athlon 64 processors

-Serial ATA hard drive support up to 250GB

-6 USB 2.0 ports, 2 in front

-Front audio

New 4x4 (25L) Tower Design

-Durable steel chassis, tool-less entry

-3 PCI and 1 AGP slots for expansion

-14.7”H x 18.0”D x 7.1”W

Model CPU GHz FSB Memory HDD GB Optical Modem Speakers FDD O/S MS SBE List Price

8258J4U Sempron-3000+ 1.80 N/A 256 80 CD-ROM Y EXT Y XP-Home N $349

8258H7U Athlon 64-3200+ 2.20 N/A 256 80 CD-ROM Y EXT Y XP-Home N $399

8258J6U Sempron-3000+ 1.80 N/A 512 80 Combo Y EXT N XP-Home N $399

8258J5U Sempron-3000+ 1.80 N/A 512 80 CD-ROM N None Y XP-Pro N $449

8258H1U Athlon 64-3200+ 2.20 N/A 256 80 CD-ROM N None Y XP-Pro N $479

8258H8U Athlon 64-3200+ 2.20 N/A 512 80 Combo N None N XP-Pro N $529

8258HAU Athlon 64-3200+ 2.20 N/A 512 160 MULTI N None N XP-Pro N $579

8258HBU Athlon 64-3200+ 2.20 N/A 1024 250 MULTI N None N XP-Pro N $679

8258H9U Athlon 64-3200+ 2.20 N/A 512 160 Combo N None N XP-Pro Y $799

Page 17: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 17

Lenovo 3000 J105 Tower GBB

3000 J1058258J4U

Sempron 3000+ (1.80GHz) 256MB/80GB/CD/XPH

$349

3000 J1058258H7U

Athlon 64 3200+ (2.20GHz) 256MB/80GB/CD/XPH

$399

3000 J1058258H1U

Athlon 64 3200+ (2.20GHz) 256MB/80GB/CD/XPP

$479

3000 J1058258HAU

Athlon 64 3200+ (2.20GHz) 512MB/160GB/Multiburner/XPP

$579

3000 J1058258H8U

Athlon 64 3200+ (2.20GHz) 512MB/80GB/Combo/XPP

$529

3000 J1058258HBU

Athlon 64 3200+ (2.20GHz) 1024MB/250GB/Multiburner/XPP

$679

Page 18: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 18

Thoughtful Design- Stylish and functional

Great Value- Attractive pricing for a range of

technology that meets customerneeds

- Competitive entry price points for first time buyers- Lenovo world-class engineering delivers high quality, reliable

notebook PCs (Makers of the award-winning ThinkPad)- 1-year industry standard warranty with the option to increase

to 3 years

Lenovo 3000 Notebook Benefits

Page 19: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 19

Lenovo 3000 C100: Key Offering Information Key offering features:

- Based on Intel “Sonoma” Platform in a 15” Form Factor.

- Worry-free computing experience

- Outstanding value starting at $599

- Stylish design

Business Objective

- The C100 is part of a new line of notebooks and desktops from Lenovo designed to reach VSB (1-99) segment.

- The C100 offering is designed for professionals who want affordable, worry-free yet powerful notebooks.

C100 Positioning:

- The C100 targets value- and service-conscious professionals

- Offering focus: Affordable and powerful, multimedia-friendly, wireless connectivity in an offering that’s worry-free.

- Offering targets professionals who are mobile, but don’t demand extreme mobility

Page 20: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 20

6.2 lbs

CommunicationsIntel a/b/g (Centrino)Lenovo a/b/g 10/100 Ethernet LOMWireless On-off switch

PerformanceIntel Pentium M, 533 Mhz, up to 2GhzCeleron M, 400 Mhz, up to 1.7GhzIntel Centrino Mobile Technology915GM chipset 400/533 Mhz FSBUp to 2GB of DDR2 533MHz memory Up to 80GB 5400rpm (12.7mm PATA)

Battery Life8 CellUp to 4.5 hours for Intel Celeron

Up to 5 hours for Intel Pentium M Processors

Integrated Graphics15” XGA (1024 x 768) res. Intel Graphics Media Accelerator 900

DesignStylish Silver CoversLenovo Full Sized Keyboard (6 Rows) w/ power button and Lenovo Care button

Two-button Touch Pad

4 USB 2.0 ports and 1394 (4 pin)Integrated MicrophoneStereo Headphone and SpeakersVGA and S-Video3 in 1 Multicard Reader

Ports

Lenovo 3000 C100 Product Overview

Productivity Lenovo Care Symantec Client Security Rescue and Recovery Access Connections

Support One Year Warranty IBM Service and Support

13.1” (W) x 10.9”(D) x 1.3”-1.4” (H)

Page 21: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 21

Lenovo C100 NotebookSleek, stylish Design

• Stylish Lenovo Notebook Design

• 15” XGA

• Industry Leading Keyboard

• Only 6.2lbs !

Multimedia Features

• 3 in 1 Multi-card Reader

• 4 USB, 1394, S-Video

• Multimedia center allows for easy management of photos and music

• Integrated Combo or DVDRW-Dual Layer

Core Technology

• Pentium M or Celeron M Processors

• DDR2 533MHz memory

• Intel GMA 900 Integrated Graphics

• HDD’s up to 80GB 5400 rpm

• Integrated ABG WLAN, 10/100 Ethernet, modem – Standard on all models

• 8 Cell Lithium Ion Battery – up to 5 hours !

Top Differentiators

• Lenovo Care

• IBM Service & Support

• Industry leading keyboard

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C100 0761-22U 15.0" XGA Integrated 915GM N N Celeron M 370 (1.5) 40GB Combo 256MB Lenovo a/b/g XP-Home $599C100 0761-2BU 15.0" XGA Integrated 915GM N N Celeron M 370 (1.5) 80GB DVDRW - DL 512MB Lenovo a/b/g XP-Home $699C100 0761-23U 15.0" XGA Integrated 915GM N N Celeron M 370 (1.5) 80GB Combo 512MB Lenovo a/b/g XP-Pro $749C100 0761-24U 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 40GB Combo 512MB Intel a/b/g XP-Home $849C100 0761-2CU 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 40GB DVDRW - DL 512MB Intel a/b/g XP-Home $899C100 0761-25U 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 80GB Combo 512MB Intel a/b/g XP-Pro $899C100 0761-26U 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 80GB DVDRW - DL 512MB Intel a/b/g XP-Pro $999

Page 22: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 22

* For Approval

**Place Holder

Lenovo 3000 C100 Entry & Mainstream Notebooks at an Exceptional Value

Images not Final

LCD Bezel

Strip Cover/Hinge Cap

Model Number

Lenovo Logo

Industry Leading Keyboard Design

Industry Standard Touch Pad

Touch Buttons

Microphone

HDD/Card Reader/Caps Lock/Number Lock/Blue Tooth LED Deco plate

Power/ Lenovo Care/ Mute Buttons

3000 C100

Gray Interior

Silver Exterior

Page 23: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 23

14”

$200015”

14”Wide

$2500

$3000+

X Series

$1500

$1000

$500

T SeriesX41

TabletZ60t

T SeriesWorkstation

Z60m

R51e$1299

$1899

$1299$1099

$899

$949

$799

12”

12”15”

Wide

C100

14”W

R Series

15”W$599

$799$849

N100

15”

15”

T Series

$1399

14”

$899

R Series

N100

Lenovo Notebook Portfolio Positioning

Page 24: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 24

Lenovo 3000 Meets the Needs of the Small Business User

1 Lenovo Care Performance Restoration 2

3 One-Button System Recovery Automatic Updates 4

5 Simple Network Connectivity and Management

Award-winning Service and Support Backed by IBM

6

7 Best Keyboards on the Planet Great Value 8

9 Thoughtful Design Simple Security 10

Next Topic

Page 25: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 25

Lenovo 3000 -- Channel Model – Highlights

Aggressive List pricing for SB & VSB market

- Plus: Lenovo Innovation, Quality, Service and Support Excellence

- Plus: Reseller Support (TAP, Web Portal, presentations, proposals, etc.)

In Stock @ Distribution – Buy from Distribution

‘No Hassles’

- No Direct conflict - Lenovo Direct sales team cannot discount off of ‘List’ price

- No DRC/Retail conflict – MAP policy to level playing field between DRC/Retailers and VARs

- No rebates to worry about

- No Special bids, Lead-with-Lenovo or pre-approved bids to worry about

- No Business Partner authorization required

Page 26: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 26

Lenovo 3000/Express Margin StructurePChoice Direct sales to VAR

Changes

CDT Express 8% No ChangeCDT 3000 N/A Buy from Distributor

MOB Express R 8% No Change

MOB Express

T X Z

10% 2 Points Higher than Express today

on T, X & ZMOB 3000 N/A Buy from Distributor

Monitors 14% 6 pts Higher Margin than today

Options – High Flyers

19% 5 Points Higher Margin than today

Options 14% 6 Points Higher Margin than today

Services 25% No Change

The New Discount Levels will be implemented March 1st

Page 27: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 27

Lenovo 3000 – Programs Lenovo 3000 products WILL BE ELIGIBLE for these programs:

- Technology Access Program

- Fee Offering Program

- Corporate Employee Purchase Program

Lenovo 3000 products WILL NOT BE ELIGIBLE for these programs:

- Proplan – Member level rebate

- ProPlan – Advanced level rebate

- ProPlan – Premier target program

- New Customer Bonus Program

- Think Express Rebate

- Think Express Rep Spiffs

Page 28: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 28

Lenovo Partner Network – Stay Tuned

Lenovo Partner Network – Replacement for IBM PartnerWorld Coming Soon

- SMB/VSB VAR

• Simple program that provides better reseller support than offerings from other vendors

• Focus on Think Express and Lenovo 3000

- MM / LE VAR

• Program that recognizes Vendor and Reseller have to be tightly integrated in the MM / LE space

ThinkVantage Technologies / Total Cost of Ownership

Complex opportunities - longer sales cycle

• Plan-based funding for demand generation

• Funding for Lenovo Advocate

• Focus on Think branded products

Page 29: © 2005 Lenovo Lenovo Confidential Lenovo Announcements

© 2005 Lenovo February 23, 2006 29

Next Steps/Q&A

Contact Your Existing ‘Think’ Customers

- Inform your existing Think Customers of the new Lenovo announcement

- We want your customers to hear the Think vs. 3000 message from you – their trusted advisor.

- Email script available

Use Lenovo 3000 to Win New Customers

- Email script & product presentations available