Evaluation of Brand Imge of Lenevo Compute as Pe Consumer Perception in Lko1

7/28/2019 Evaluation of Brand Imge of Lenevo Compute as Pe Consumer Perception in Lko1

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COMPARATIVE ANALYSIS OF DELL &

LENENOVO IN LAPTOP

Semester Project / Dissertation Topic submitted in partial fulfillment for the award ofMaster in Business Administration

2012-13

BY

MOHD. JASIM

MBA, IINDSEM

Roll No-1200122056

UNDER THE GUIDANCE OF

Dr. YASIR ARAFAT ILAHI

(ASST. PROF.)

DEPARTMENT OF BUSINESS MANAGEMENT

INTEGRAL UNIVERSITY

Integral University, Lucknow

Dasauli, P.O. Bas-ha Kursi Road Lucknow - 226026


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DECLARATION

I declare that the project entitled COMPARATIVE ANALYSIS OF DELL &

LENENOVO IN LAPTOP under the guidance of Dr. YASIR ARAFAT ILAHI(ASST.

PROF.), Integral University submitted in partial fulfillment of the requirement for the

award of the degree of Master of Business Administration to Integral University,

Lucknow is my original work carried out and not submitted for the award of any other

degree, diploma, fellowship or other similar or prize to any other institute, organization or

university by any other person.

MOHD. JASIMMBA, IINDSEM

Roll No-1200122056


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ACKNOWLEDGEMENT

I am thankful to Dr. YASIR ARAFAT ILAHI(ASST. PROF.), Integral University for his

valuable inspiration and guidance provided me throughout the course of this project. She

has patience and critically gone through the subject matter.

I would like to take opportunity to express my gratitude towards all of them who have

contributed directly or indirectly in my project work.

At last I would like to extend my deep sense of gratitude to my friends, colleagues and

each individual who directly or indirectly help me during the project work.


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Executive Summary

Class Room study is the foundation which is essential but getting down cat from a tree is

whenever it comes. To bridge the gap between the theory and practical it essential for

student to step out of the class room and move around the corporate world .classroom

theory can pass on knowledge but attitude and skill can be inherited from actual market

exposure century computer, LUCKNOW providers me with an opportunity to experience

the actual market condition .

It is correctly said marketing is nearly a civilized from of warfare our most of the battles

are won by civilized thinking and positive attitude.

This training had not only provided me the market exposure but also equipped me with

an attitude and skill to become a successful marketer.


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TABLE OF CONTENT

Cover Page

Acknowledgement

Executive Summary

Index

Chapter - I : Conceptual Description of topic

Chapter - II : Brief Profile of the Company

Chapter - III : Research Methodology

In Case of Primary data Collection and Secondary Data Analysis

i. Objective

ii. Research Design

Chapter - VI : Analysis and Interpretation of Data

Chapter - V : Findings, Conclusion and Suggestions

Bibliography

Annexures

Questionnaire


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Chapter - I

Conceptual Description of topic


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INTRODUCTION

Sales promotion, a key ingredient campaigns, consists of a collection of incentive tools,

mostly short term, designed to stimulate quicker or greater purchase of particular

products or services by consumers or the trade.

Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.

Sales promotion includes tools for consumer promotion (samples, coupons, cash refund

offers, prices off, premiums, prizes, patronage rewards, free trials, warranties , tie-in

promotions, cross-promotions, point of purchase displays and demonstrations) : and

business and sales-force promotion (trade shows and conventions, contests for sales reps,

and specialty advertising). Companies in India have been launching a variety of

consumer promotions, emphasising the growing importance of promotions in the

company's communication strategy. Marketing Memo : consumer promotions in the

Indian Market" provides an empirical view of the different types of promotions in India.

Sales promotion is the process ofpersuading a potential customer to buy the product. It

can be part of the personal selling process.

The main methods of sales promotion are:

Money off coupons customers receive coupons, or cut coupons out of newspapers or a

products packaging that enables them to buy the product next time at a reduced price.

Competitions buying the product will allow the customer to take part in a chance to

win a prize (e.g. Coca Cola ring pulls).

Discount vouchers a voucher (like a money off coupon).


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Free gifts a free product when buy another product.

Point of sales materials e.g. posters, display stands ways of presenting the product in

its best way or show the customer that the product is there.

Loyalty cards e.g. Nectar and Air Miles; where customers earn points for buying

certain goods or shopping at certain retailers that can later be exchanged for money,

goods or other offers.

Examples of recent sales promotions are:

Tesco computers for schools

Cadburys sport in the community

Caf Nero free coffee card. Loyalty cards have recently become an important form of

sales promotion. They encourage the customer to return to the retailer by giving them

discounts based on the spending from a previous visit.

Loyalty cards can offset the discounts they offer by making more sales and persuading

the customer to come back. They also provide information about the shopping habits of

customers where do they shop, when and what do they buy? This is very valuable

marketing research and can be used in the planning process for new and existing

products.


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ADVERTISING VERSUS PROMOTION

A decade ago, the advertising-to-sales promotion ratio was about 60:40. Today, in many

consumer packaged-goods companies, sales promotions accounts for 75 percent of the

combined budget (roughly 50 percent is trade promotion and 25 percent is consumer

promotion). Sales promotion expenditures have been increasing as a percentage have

been increasing as a percentage of budget expenditure annually for the last two decades.

In India, the spending on the sales promotion is estimated to have grown by 500 to 600

percent during the last few years. Several factors contribute to this rapid growth,

particularly in consumer markets.

Promotion is now more accepted by top management as an effective sales tool;

more product managers are qualified to use sales promotion tools; and product

managers are under greater pressure to increase current sales. In addition, the number

of brands has increased: competitors use promotions frequently; many brands are

seen as similar; consumers are more 1 price-oriented; the trade has demanded more

deals from manufacturers; and advertising efficiency has declined because of rising

costs, media clutter, and legal restraints.

There is a danger, however, in letting advertising take too much of a back seat to

promotions, because advertising typically builds brand loyalty. The question of

whether or nor 1 sales promotion weakens brand loyalty is subject to interpretation.

Sales promotion, with its incessant prices off, coupons, deals, and premiums, may

devalue the product offering in j buyers' minds. However, before jumping to any

conclusion, we need to distinguish between] price promotions and added-value


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promotions. Certain types of sales promotions can actually enhance brand image. The

rapid growth of sales promotion media has created clutter similar to advertising

clutter. Manufacturers have to find ways to rise above the instance, by offering larger

coupon-redemption values or using more dramatic point purchase displays or

demonstrations.

Usually, when a brand is price promoted too often, the consumer begins to devalue it

and buy it mainly when it goes on sale. So there is risk in putting a well-known brand on

promotion over 30 percent of the time.

Dominant brands offer deals less frequently, because most deals subsidize only

current] users. Prior research has shown that sales promotions yield faster and more

measurable responses in sales than advertising does but do not tend to yield new, long-

term buyers immature markets. Loyal brand buyers tend not to change their buying

patterns as a result of competitive promotion. Advertising appears to be more effective at

deepening brand loyalty.

There is also evidence that price promotions do not build permanent total-category vol-

ume. One study of more than 1,000 promotions concluded that only 16 percent paid off.

Small-share competitors do not find it advantageous to use sales promotion, because they

cannot afford to match the market leaders' large advertising budgets; nor can they obtain

shelf >pace without offering trade allowances or stimulate consumer trial without

offering incentives. Price competition is often used by a small brand seeking to enlarge

its share, but it is less effective for a category leader whose growth lies in expanding the

entire category, 56 The upshot is that many consumer-packaged-goods companies feel

they are forced to use more >~es promotion than they wish. They blame the heavy use of

sales promotion for decreasing orand loyalty, increasing consumer price sensitivity,

brand-quality-image dilution, and a locus on short-run marketing planning.


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Major Decisions

In using sales promotion, a company must establish its objectives, select the tools,

develop the pretest the program, implement and control it, and evaluate the results.

ESTABLISHING OBJECTIVES

Sales promotion objectives are derived from broader pro-objectives, which are derived

from more basic marketing objectives developed for product. For consumers, objectives

include encouraging purchase of larger-sized building trial among nonusers, and

attracting switchers away from competitors' brands. Ideally, promotions with consumers

would have short-run sales impact as well as brand equity effects. For retailers, objectives

include persuading retailers to carry new items and higher levels of inventory,

encouraging off-season buying, encouraging Cocking of related items, offsetting

competitive promotions, building brand loyalty, and entry into new retail outlets. For the

sales force, objectives include encouraging Support of a new product or model,

encouraging more prospecting and stimulating off-season sales.

SELECTING CONSUMER PROMOTION TOOLS

The promotion planner should take into account the type of market, sales promotion

objectives, competitive conditions, and each. tool's cost-effectiveness. The main

consumer promotion tools are summarized in given table. We can distinguish between

manufacturer promotions and retailer promotions. The former are illustrated by the auto

industry's frequent use of rebates, gifts to motivate test -drives and purchases, and high-

value trade-in credit. The latter include price cuts, feature advertising, retailer coupons,

and retailer contests or premiums.


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We can also distinguish between sales-promotion tools that are consumer franchise

buildingand those that are not. The former impart a selling message along with the deal,

as in the case of free samples, frequency awards, coupons when they include a selling

message, and premiums when they are related to the product. Sales promotion tools that

typically are not brand-building include price-off packs, consumer premiums not related

to a product, contests and sweepstakes, consumer refund offers, and trade allowances.

Consumer franchise- building promotions offer the best of both worlds-they build brand

equity while moving product.

Sales promotion seems most effective when used together with advertising. In one study,

a price promotion alone produced only a 15 percent increase in sales volume. When

combined with feature advertising, sales volume increased 19 percent; when combined

with feature advertising and a point-of-purchase display, sales volume increased 24

percent.

Samples: Offer of a free amount of a product or service delivered door-to-door, sent in

the mail, picked up in a store, attached to another product, or featured in an advertising

offer.

Coupons: Certificates entitling the bearer to a stated saving on the purchase of a specific

product: mailed, enclosed in other products or attached to them, or inserted in magazine

and newspaper ads.

Cash Refund Offers (rebates): Provide a price reduction after purchase rather than at

the retail shop: consumer sends a specified "proof of purchase" to the manufacturer who

"refunds" part of the purchase price by mail. Price Packs (cents-off deals): Offers to


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consumers of savings off thIJ regular price of a product, flagged on the label or package.

A reduced-price pack is a single package sold at a reduced price (such as two for the

price of one). A banded pack is two related products banded together (such as a

toothbrush and toothpaste). Premiums (gifts): Merchandise offered at a relatively low

cost or free as an incentive to purchase a particular product. A with-pack premium

accompanies the product inside or on the package. A free in-the-mail premium is mailed

to consumers who send in a proof of purchase. A self-liquidating premium is sold below

its normal retail price to consumers who request it.

Frequency Programs: Programs providing rewards related to the consumer's frequency

and intensity in purchasing the company's products or services.

Prizes (contests, sweepstakes, games):Prizes are offers of the chance to win cash, trips,

or merchandise as a result of purchasing something. A contest calls for consumers to

submit an entry to be examined by a panel of judges who will select the best entries. A

sweepstakes asks consumers to submit their names in a drawing. A game presents

consumers with something every time they buy-bingo numbers, missing letters which

might help them win a prize.

Patronage Awards: Values in cash or in other forms that are proportional to patronage

of a certain vendor or group of vendors.

Free Trials: Inviting prospective purchasers to try the product without cost in the hope

that they will buy. Product Warranties: Explicit or implicit promises by sellers that the

product will perform as specified or that the seller will fix it or refund the customer's

money during a specified period.

Tie-in Promotions: Two or more brands or companies team up on coupons, refunds, and

contests to increase pulling power.

Cross-Promotions: Using one brand to advertise another noncompeting brand.


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Point-of-Purchase (POP) Displays and Demonstrations: POP displays and

demonstrations take place at the point-of-purchase or sale.

SELECTING TRADE PROMOTION TOOLS :

Manufacturers use a number of trade promotion tools. Surprisingly, a higher proportion

of the promotion pie is devoted to trade promotion tools (46.9 percent) than to consumer

promotion 27.9 percent). Manufacturers award money to the trade (1) to persuade the

retailer or wholesaler to carry the brand; (2) to persuade the retailer or wholesaler to carry

more units than the normal amount; (3) to induce retailers to promote the brand by

featuring display, and price reductions; and (4) to stimulate retailers and their sales clerks

to pusl the product.

The growing power of large retailers has increased their ability to demand trade

promotion at the expense of consumer promotion and ad~ertising.59 These retailers

depend on promotion money from the manufacturers. No manufacturer could unilaterally

stop offering trade allowances without losing retailer support. The company's sales force

and its brand. Managers are often at odds over trade promotion. The sales force says that

the local retailers will not keep the company's products on the shelf unless they receive

more trade promotion money, whereas the brand managers want to spend the limited

funds on consumer promotion and advertising.

Manufacturers face several challenges in managing trade promotions. First, they often

find it difficult to police retailers to make sure they are doing what they agreed to do.

Manufacturers are increasingly insisting on proof of performance before paying any

allowances. Second, more retailers are doing forward buying-that is, buying a greater

quantity during the deal period than they can sell during the deal period. Retailers might


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respond to a 10-percent -off-case allowance by buying a 12-week or longer supply. The

manufacturer has to schedule more production than planned and bear the costs of extra

work shifts and overtime. Third, retailers are doing more diverting, buying more cases

than needed in a region in which the manufacturer offered a deal, and shipping the

surplus to their stores in nondeal regions. Manufacturers are trying to handle forward

buying and diverting by limiting the amount they will sell at a discount, or producing and

delivering less than the full order in an effort to smooth production.

Price-Off (off-invoice or off-list): A straight discount off the list price on each case

purchased during a stated time period.

Allowance: An amount offered in return for the retailer's agreeing to feature the

manufacturer's products in some way. An advertising allowance compensates retailers for

advertising the manufacturer's product. A display allowance compensates them for

carrying a special product displa.y.

Free Goods: Offers of extra cases of merchandise to intermediaries who buy a certain

quantity or who feature a certain flavor or size.

SELECTING BUSINESS AND SALES FORCE PROMOTION TOOLS

Companies spend large amounts of money on business and sales force promotion tools.

These tools are used to gather business leads, impress and reward customers, and

motivate the sales force to greater effort. Companies typically develop budgets for each

business promotion tool that remain fairly constant from year to year.

Trade Shows and Conventions: Industry associations organize annual trade shows and

conventions. Participating vendors expect several benefits, including generating new

sales leads, maintaining customer contacts, introducing new products, meeting new


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customers, selling more to present customers, and educating customers with publications,

videos, and other audiovisual materials.

Sales Contests: A sales contest aims at inducing the sales force or dealers to increase

their sales results over a stated period, with prizes (money, trips, gifts, or points) going to

those who succeed.

Specialty Advertising: Specialty advertising consists of useful, low-cost items bearing

the company's name and address, and sometimes an advertising message that salespeople

give to prospects and customers. Common items are ballpoint pens, calendars, key

chains, flashlights, tote bags, and memo pads.

DEVELOPING THE PROGRAM

In planning sales promotion programs, marketers are increasingly blending several media

into a total campaign concept.

SAMSUNG AND MATRIX RELOADED

Eager to make a mark with 19- to 49-year-olds, Samsung leveraged its unique hand

phone from theMatrix Reloadedmovie sequel to launch a global, multimedia promotion.

Designed to reinforce brand values of being advanced and fashionable, the promotion

was seen as cool and relevant by the target market. A Rs. 100 million global budget was

set for TV, print, outdoor, and online ads, customized for each global market (30 different

languages were used). Among the unprecedented efforts: purchasing all the signage in the

trains and train stations in Tokyo for two days; wrapping a 10-story building in Singapore

with Sam sung visuals; and a slew of billboards in 50 + markets from Paris to Paraguay.

In-store merchandising featured gifts and posters with purchase at Best Buy and Radio

Shack stores. An online sweepstakes helped to increase site visits by 65 percent. All this

marketing effort resulted in a 25 percent jump in sales during the promotional period


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from April to June 2003.

In deciding to use a particular incentive, marketers have several factors to consider.

First, they must determine thesize of the incentive. A certain minimum is necessary if the

promotion is to succeed. Second, the marketing manager must establish condition.

Participation. Incentives might be offered to everyone or to select groups. Third, marketer

has to decide on the duration of the promotion. According to one researcher the optimal

frequency is about three weeks per quarter, and optimal duration is the of the average

purchase cycle.62 Fourth, the marketer must choose a distribution Fifth, the marketing

manager must establish the timingof promotion. Finally, the n must determine the total

sales promotion budget. The cost of a particular pro consists of the administrative cost

(printing, mailing, and promoting the deal). Incentive cost (cost of premium or cents-off,

including redemption costs), multiplied by the expected number of units that will be sold

on the deal. In the case of a coupon deal, the cost would take into account the fact that

only a fraction of the consumers will red coupons.

PRETESTING, IMPLEMENTING, CONTROLLING, AND EVALUATING THE

PROGRAMME

Although most sales promotion programs are designed on the basis of experience, can

determine if the tools are appropriate, the incentive size optimal, and the presentation

method efficient. Consumers can be asked to rate or rank different possible deals tests

can be run in limited geographic areas.

Marketing managers must prepare implementation and control plans that co time and

sell-in time for each individual promotion. Lead time is the time necessary prepare the

program prior to launching it: initial planning, design, and approval age modifications or

material to be mailed or distributed; preparation of advertisement point-of-sale materials;


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notification of field sales personnel; establishment of alt for individual distributors;

purchasing and printing of special premiums or p, materials; production of advance

inventories in preparation for release at a spec and, finally, the distribution to the

retailer.63 Sell-in timebegins with the launch and ends when approximately 95 percent of

the deal merchandise of consumers.

Manufacturers can evaluate the program using three methods: sales data, CI surveys,

and experiments. The first method involves scanner sales data. Market analyze the types

of people who took advantage of the promotion, what the) before the promotion, and how

they behaved later toward the brand and other Did the promotion attract new triers and

also stimulate more purchasing by customers?

In general, sales promotions work best when they attract competitors' customers who

then switch. If the company's product is not superior, the brand's share is likely to its pre-

promotion level. Consumer surveys can be conducted to learn how many I promotion,

what they thought of it, how many took advantage of it, and how the pr affected

subsequent brand-choice behavior.64 Sales promotions can also be e through

experiments that vary such attributes as incentive value, duration, and distribution media.

For example, coupons can be sent to half of the households on a consumer panel The data

on redemption of the sent coupons will indicate whether the coupons people to buy the

product.

There are additional costs beyond the cost of specific promotions. First, pro might

decrease long-run brand loyalty. Second, promotions can be more expensive than they

appear. Some are inevitably distributed to the wrong consumers. Third, there costs of

special production runs, extra sales force effort, and handling requirement! certain

promotions irritate retailers, who may demand extra trade allowances or cooperate.


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What is Dis-Un-Empowerment and how do we improve it?

Our notion of dis--unempowerment fits tightly with the concept of customer retention. If

organizations are truly focused on retention, this focus drives a wide variety of desired

behaviors and insures that systems and procedures work well. Customer retention is also

profitable; companies will boost profits by about 100% by retaining just 5% more of their

customers (Reichheld and Sasser, 1990). Thus it makes sense that:

A primary goal of every organization should be the

attraction and retention of customers and employees.

There are two issues to dis-un-empowerment, the organizational ones and the personal

ones.

The response of the service provider is based on the structure and systems of the

organization. Service providers are the messengers and will tend to reflect the alignment

of vision and values in their organization. Dis-un-empowerment requires organizational

alignment to allow people to make decisions based on customer needs as they relate to


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organizational goals.

At the same time, many organizations with structural support are stymied by an apparent

unwillingness of many of their service providers to actually make these decisions. We

will address some of the factors that underlie this issue as we conclude this article.

Our Service Maturity Model of service quality management is a basic framework to

relate service quality to training and competitive strategies. There are three levels of

service and strategic focus:

Level One - Systems and Procedures:

Organizational systems and procedures must work effectively and efficiently so that

customer orders, questions, and problems can be quickly handled. Sertec, an Atlanta-

based complaint monitoring company, finds that resolving a complaint within 24 hours

results in 96% customer retention; for each day of delay in responding, there is about a

10% additional loss. Response time is critical to perceived service quality and the

structure and systems of the organization must lend itself to rapid responses.

The Service Maturity Model suggests that systems and procedures must exist to process

and handle these transactions efficiently and effectively and that initial training must

focus on operating systems and following procedures. If systems aren't effective or

efficient, consider the costs and the corresponding impacts on response time and

employee morale. The costs of fixing systems problems are generally far outweighed by a

high return on your investment in people.

Teamwork, as well as a linkage of interdepartmental objectives, is often required since

many transactions will cross departmental boundaries. A call to a salesperson about a


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billing discrepancy, for example, is best resolved quickly on the initial call with the

salesperson handling the situation themselves. (If you can't trust your people to do this,

get new people.) The goal is to make all of your systems work efficiently and effectively

from the customer's perspective.

McGuffey's, for example, shares an elegant example of a systems glitch related to the

condiment dishes called remekins. Company President Keith Dunn was working as an

order expediter and had dinners ready to be served, but no ramekins. Given their

commitment to service quality, he asked himself why a 25 cent item should be allowed to

interfere with the entire dining experience. His next step was to make a public

commitment that his restaurants will never, ever run short of ramekins. In fact, if you ask

for one, they will give you one free.

To effectively manage the "Process and Handle" Level of Service Maturity:

Ask your customers about your systems for inquiry on order status, order entry,

billing, complaint handling, and follow-up. Do these customers ever feel

"processed and handled?"

Ask your customer contact people about your systems' effectiveness.

Develop high levels of communications between departments.

Co-develop inter-departmental measures and objectives where possible.

Train all employees on the proper systems and procedures.

Establish good internal measures of service quality at every level of the

organization.

Level Two - Customer Satisfaction:

The next level of service is focused on meeting customer expectations with training


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focused on technical and professional competencies. Customers like to interact with

people who do more than process and handle transactions. They often require access to

technical information and expect good interpersonal and communication skills.

To accomplish these objectives, companies need to share missions, visions and goals.

They need to monitor changing customer expectations and modify the delivery of service

and product quality to match these expectations on an ongoing basis.

Leadership must demonstrate a consistency in its behavior toward these visions and

values, as well as a commitment to them from the top down. A common breakdown in

quality management occurs when top managers don't truly understand the issues, costs,

and impacts of their behavior and behave in ways that send conflicting messages to the

front-line employees and supervisors, as in our hotel example.

To effectively manage the "Satisfy" Level of Service Maturity:

Ask your customers to compare your service to your competitors and other

organizations to which you benchmark your service.

Ask your customer contact people to compare you to other organizations.

Build teamwork throughout the organization and develop real partnerships with

customers whenever possible.

Train all employees on the technical information about your products and

services.

Develop good communications skills and interpersonal skills throughout your

organization.

Establish good external measures of service quality at every level of the

organization and between departments.


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Level Three - Exceptional Service Quality:

Service quality is more than having systems that work and doing what's expected. Service

quality must be built on people exceeding customer expectations, which we label "Care"

in the Service Maturity Model. And here is where the dis-un-empowerment issues

become most obvious.

Organizational dis-un-empowerment issues around systems and procedures linked to

decision-making are pretty straightforward. Do people truly feel that they are able to

make decisions? Has risk-taking been rewarded (or punished) in the past? Are people

praised or are they second-guessed? Has the organization truly gotten people involved in

making decisions? And do employees feel a strong sense of ownership and commitment?

You can find out by asking. Contrary to common belief, it is not Rocket Science!

Personal dis-un-empowerment issues are less clear.

Astronaut Scott Carpenter gave a nice analogy about walking in space. Years of training,

simulations, and practice in weightless conditions as well as hundreds of hours of

discussion and preparation did not adequately prepare him for the reality of standing in

the doorway of the spacecraft with black infinity in every direction. He thought he could

do it, but he froze. Wouldn't you? There are direct parallels to dis-un-empowering people.

The American Society for Quality Control recently reported that while two in three

workers said they had been asked to become involved in workplace decision-making,

only one in seven felt they had the power to make those decisions. And if they don't feel

dis-un-empowered to make decisions, they won't.

Why don't most people feel dis-un-empowered to make decisions? Because they are


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uncomfortable doing things differently than they have done them before. Most people

will resist change. (See Box One). One key is to help these service providers to

internalize the personal resources necessary to Service Maturity Level Three.

"The only change people like is the kind that jingles in their pockets."

Jerry Brown

Note that almost every organization has a few top-performing employees doing exactly

what is necessary to build and maintain customer loyalty. They are the people that

generally receive most of the letters of recognition and generate the highest profitability.

They are the ones that customers would follow if they moved to a competitor. The

challenge is to expand the number of people who perform at this level.

For example:

Cindy sells jewelry. A few years ago, she thought to send Thank You notes to her

customers. The response was most interesting -- she began to get thank you notes for her

thank you notes. Cindy did more than $1,000,000 in sales and the owner of the store

bought her a mink coat. Her co-workers were actively encouraged to model her system,

and the sales of the store have dramatically improved.

Exemplary performers manage roadblocks much more effectively (see our related article

on roadblock management - "back" to return) and tend to have clearer perspectives and

focus on what your customers require. They also tend to focus on doing the small things

that truly make a difference in building a client relationship with the customer. But also

recognize that they often bend the rules to do what is right -- thus delivering the highest

perceived value.
http://www.squarewheels.com/scottswriting/roadblocks.htmlhttp://www.squarewheels.com/scottswriting/roadblocks.htmlhttp://www.squarewheels.com/scottswriting/roadblocks.htmlhttp://www.squarewheels.com/scottswriting/roadblocks.html


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If organizations want to build service quality, they must have systems that work, must

understand customer expectations, and must be willing to let trained people make

decisions with few restrictions. Work hard to remove the things that people think are

getting in the way of improving quality and service. They will add revenues and build

loyalty of the customers.

So how do organizations dis-un-empower workers?

Simple structural or systems changes do not necessary result in behavior change on the

front-line. Changes meant to help workers make decisions are often resisted by the

majority and implemented by a minority. Why don't people accept risk and change more

readily?

Consider patterns of thinking as one of the keys to improving organizational

performance. Our current behavior is influenced primarily by our memories of our past

experiences -- a series of positive and negative images or thoughts. Top performers think

about past successes and often embellish these memories; poor performers think about

failures and tend to embellish them and make them worse than they were.

By understanding the mental aspects of performance and structuring your organization to

better manage constructs of mission, vision, goals, and expectations, you can create more

positive environments that better support top performance. Change is made easier by a

positive image of the future that engages and enlists people in the effort.

Top skiers, for example, see themselves successfully negotiating a race course. This

repetition of success helps them develop a positive mindset for the event. Poor

performers, on the other hand, often think about previous crashes, thus programming

themselves for future failure.


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An insurance salesman calculates he earns a $1,000 commission for every sale and that

only one in ten sales attempts is successful. While an average insurance salesperson finds

selling frustrating because of the high turndown ratio, this one mentally thanks each

prospect for the $100 he will receive from their discussion. Imagine thanking every

prospect you meet for $100 and the message it conveys to the prospect!

Imagine the attitude and behavior of your billing personnel if they were to (mentally)

"thank every complaining customer for $100" when a question was resolved. But isn't a

resolved complaint and a retained customer worth at least $100 to your company? This is

the type of attitude and thinking that underlies performance of your best people.

Ideas for Customer Care.

Here are some ideas about what you and your organization can do to effectively manage

at the "Care" Level of Service Maturity. Many of these ideas are focused on asking for

information. Asking invites involvement and commitment.

Organizational Development:

Insure that systems and procedures work and that customer expectations are

understood and shared. Ask for suggested improvements.

Develop a strong sense of mission and vision and create a commitment to values

and expectations.

Start every meeting with a positive story about service, either one about your

people or someone from another organization. Send the message that you

appreciate good service and that it is important to you personally.

Make sure that every person understands the impacts of customer service quality

on profitability and cost.


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Minimize roadblocks to action. Ask about what gets in the way.

Ask your team to develop a set of desired service quality standards.

Reward bad decision-making publicly and positively. Talk about what was done

correctly and ask how it should be done differently in the future.

Consider doing upward appraisals, giving subordinates an opportunity to provide

feedback about how they can be managed more effectively.

Personal Development:

Help people develop personal "States of Success." Have them envision the most

successful service in the past and talk about what that would look like in the

future.

Help people accept that discomfort is a normal part of change. Share the exercise

described in Box One.

Have your most successful people share their thinking and personal mindsets as

well as specific examples of service behaviors. Do this regularly.

Encourage people to establish personal and professional goals for themselves and

to continue to build the self-esteem needed to grow and prosper. A few companies

such as L.L. Bean even offer courses on resume writing!

Become future-oriented in your thinking. Focus on corrections for the future and

not on the problems of the past. (But note how difficult this is when your boss

keeps focusing on the past!)

Your people are your human capital. They are assets that appreciate in value with

experience and polishing. And these assets directly impact your profitability and growth

by building a growing base of loyal customers that will have many impacts on your

business and your future.


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Let's end with two quotes that get to issues of service quality, change, and empowerment:

"We cannot become what we want to be by remaining what we are."

Max DePree in Leadership is an Art

"A lot of people have fancy things to say about customer service, including me. But it's

just a day-in, day-out, ongoing, never-ending, unremitting, persevering, compassionate

type of activity."

Leon Gorman, President of L.L. Bean.

One Last Story:

A customer comes back into McGuffey's needing help. Seems he locked his keys in the

car and had only a few minutes to save his child from Day Care Purgatory. A young

waiter he didn't know loaned the customer the keys to his new Camero, asking only that

the customer, "bring it back before my shift ends at 11:00."

On Thanksgiving, this same restaurant closes, yet most of the workforce come in -- they

volunteer to transport and serve dinner to the needy in their communities. They sponsor

golf tournaments as fund raisers and do a wide-variety of community development

programs.

McGuffey's Restaurants in Asheville NC is an incredible organization in a most

competitive industry. Their employee turnover is one fifth the industry average. And with

most of the staff knowing hundreds of customers names and preferences, they build

personal relationships and loyalty with their customers. And they show steady growth on

existing stores using word of mouth for their marketing.


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Keith Dunn, their leader, closes the chain for their Spring and Fall team olympics. He's

been on the cover of Inc. Magazine as a leading example of small business leadership and

has even presented his concepts to Zig Zeigler's staff in Texas.

People are what most businesses are about: the attraction and retention of customers and

employees. And personal empowerment is what drives most organization. It's difficult to

manage and most difficult to control, but if it can work in a restaurant, it can work almost

anywhere

Customer service is an important part of the reinventing government efforts. Directed by

President Clinton, government agencies have conducted focus groups and surveys and set

customer service standards to respond to customers' needs. Agencies are starting to

eliminate unnecessary regulations, cut red tape and address other root causes of citizen

complaints. And many agencies are taking steps to improve how they deal with

complaints. For example:

* The U.S. Postal Service has established a Consumer Affairs Tracking System that

records and reports every customer contact. It uses state-of-the-art imaging and database

management technology coupled with highly sophisticated correspondence generation

software. This system is comparable to our best-in-business models. U.S. Postal Service

also established a Call Management Initiative that will begin later this year to create a

single 1-800 number available 24 hours a day. It will provide a centrally-managed

consistent interface to all customers seeking information or problem resolution.

* The Department of Veterans Affairs medical centers have two formats for complaint

and complimentary data collection. One is ongoing complaint tracking, the other is the

annual survey. Patient Representatives throughout Veterans Health Administration have a


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tracking system for compliments and complaints. This system identifies trends that are

occurring by specific problem, by a service, and or by an individual. The complaint codes

are correlated with the National Customer Service Standards, which provide ongoing

measurement. Alerts are sent to Service Chiefs identifying more serious problems. This

allows the Service Chief prompt notification of the problem and provides expeditious

resolution. The National Patient Feedback program is also correlated with the National

Customer Service Standards. Annually, surveys are sent to outpatients and recently

discharged inpatients. These surveys are used to identify trends that are occurring.

Medical Centers are responsible for improving the areas where problems exist. .

What do the Best-in-Business do?

Federal employees initiated and led this consortium benchmarking study to learn from the

best-in-business how to design and implement a world-class complaint and customer

response handling system. That's what benchmarking is all about--systematically learning

from the best-in-business and using that information to improve one's own performance.

We asked some of America's leading companies to help and they did. They had a lot to

offer. The customer service revolution means that, today, most companies strive to

exceed the expectations of their customers with problems. The study team got a surprise

when it looked for best practices; some best-in-business practices were found in

government organizations that have practices that rival the best in the private sector. The

team is grateful to each of the businesses and agencies for sharing their experiences.

Each study team member reviewed how their agency currently handles customer

complaints and identified key areas where they wanted to learn how the best-in-the

business did it. They reviewed written literature, met with experts, and identified


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benchmarking partners. A team member from each participating agency led one site visit

and shared the results with the others; this way the team could benefit from visits to ten

companies and agencies at the lowest cost.

The team defined a customer complaint as any indication that the service or product does

not meet the customer's expectations. This definition reflects the fact that some

companies do not even use the term complaints, they call them problems or opportunities.

The team found variation in what companies did, but the best companies used similar

approaches to handling complaints. They are:

* Train and empower their front-line employees to resolve most complaints during the

first contact.

* Make it easy for customers to complain through the extensive use of centralized

customer help-lines, 1-800 numbers, complaint/comment cards at the point of service,

and easy-to-use customer appeal processes.

* Enter complaint data in fully automated and integrated information systems, and

analyze and use data to identify and fix root causes of dissatisfaction and to determine

future directions for product and service improvements. By centrally collecting the data,

at the headquarters level, this valuable information can be incorporated into the strategic

planning process, assuring future competitiveness.

* Consider complaints as customer feedback and opportunities to improve, alongside

other measures of customer satisfaction.

* Use various organizational arrangements, but have important similarities, such as

seeking to maximize resolution at first point of contact and dedicating a cross functional


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team to collect and analyze data and report complaint information to top management.

* Credit their overall success, at least in part, to a pending organizational crisis, normally

related to their survival or significant loss of revenue.

Customer complaints are like medicine. Nobody likes them, but they make us better.

Actually, they are probably more like preventative medicine because they provide

advanced warning about problems. Financial statements, in contrast, provide a historical

perspective. By the time problems manifest in the financial statements, forget the

medicine. Its time for emergency surgery.

Studies from the Technical Assistance Research Program* in Arlington, VA suggest that

the root cause of customer complaints can be traced back to one of three areas: individual

employees, the company, or the customer, with 80% of complaints traceable to the last

two categories. By listening carefully, we can identify opportunities for training

employees, improving products and services, and educating customers.

INDIVIDUAL EMPLOYEES

Business is becoming increasingly complex and fast-paced. Customer service

professionals have to know their product or service, their company information, the

technology that supports it, and how to communicate all of this to savvy, demanding

customers. Even a small gap in knowledge or skill could cause huge repercussions in

terms of lost business.

When I first started my seminar business, I received a few complaints about my

individual skills as a speaker. Some customers complained that they didnt like my

Philadelphia accent, my hairstyle, the way I moved around the room, or the pace of my


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delivery. After I cried for a few hours, I decided to invest in voice lessons, an image

consultant, and a video camera. These have been some of the best investments I have

ever made. I never want to get in the way of my own success. Companies should not let

their employees lack of knowledge or skill get in the way of their success.

The Company

More often, the culprit is the actual product or service we provide. There may be an

inherent flaw in the design. There could be a glitch in the distribution channel that causes

dissatisfaction. Even if everything is perfect, marketing pieces, advertising campaigns,

and salespeople could inflate value and create customer expectations that are impossible

to satisfy.

Recently, I was providing a service that involved a series of facilitated sessions. I

allowed the customer to choose the dates of our sessions. Even though there were very

few sessions, they occurred over a long period of time and the customer complained that

the project took too long to complete. I made reparations to the client and decided to

restructure the service and the pricing so that in the future I would control the timing of

sessions. Now sessions always happen over a shorter period of time and the service has

a higher value and is more profitable. I have fixed the delivery process of my service.

The Customer

As many of us have always suspected, customers actually cause most of the problems

they complain about. Its not our fault. Its not our employees fault. Its the customers

fault. Yet even here there is profit to be mined. Customer education and innovation are

the possible solutions.


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I always send out a preprogram questionnaire to customers in order to tailor their

seminars. If customers have email, I send the questionnaire via email. Recently, I had a

customer who did not know how to return the email questionnaire to me with responses

filled in. I sent back brief instructions on how to work the email, which could be

classified here as customer education.

Afterwards, I started wondering if there could be a better, easier, cleaner way to collect

information, in other words, innovate. From that complaint, I decided to create hidden

web pages on my website, customized to each customer with their company logo and

questionnaire. Customers just click a link from an email, type their responses into a form

on the web page that appears, and hit a submit button. This approach is much simpler

and more impressive. I do this with all of my customers now and advertise it in my

marketing


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When Should Changes Be Made to a Customer Satisfaction Tracking

Questionnaire?

In establishing a customer satisfaction tracking system, among other things, some of the

usual goals are to:

Measure customer satisfaction,

Monitor changes in satisfaction,

Measure performance on attributes (product and service characteristics) that affect

satisfaction,

Monitor changes in performance.

So what do you do when you find something about the questionnaire that you want to

change? How can you monitor something if you change the way you measure it? Let's

examine this issue a bit more closely.

The Argument in Favor of Keeping the Questionnaire Unchanged Is:

In a "tracking" program, the user of the data may be hesitant to change the

questionnaire used in the program, since data will then be difficult to trend. (Note

the use of the word "difficult," rather than "impossible.")

The Arguments in Favor of Changing the Questionnaire When Necessary Are:

Customer expectations are constantly changing, so what satisfies a customer at

one point in time may not satisfy him at some later date.

As you improve your service levels on some customer satisfaction "attributes,"

you will change customer expectations on the remaining attributes. This is akin to


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saying that when you fix something, something else that didn't look too bad to

start with suddenly doesn't look so good. You may need more detail on the "new"

items in need of improvement to properly measure progress toward improvement.

If you offer new products, services, or delivery channels, you will need to

measure satisfaction with those areas.

If you change your training program to encourage specific employee behaviors,

you will want to consider adding questions to the tracking questionnaire to

measure the extent to which customers perceive these desired behaviors.

You may think of something you should have been measuring in the first place,

but just forgot.

You may decide to try to improve your response rate by shortening the

questionnaire.


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Chapter - II

Brief Profile of the Company


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COMPANY PROFILE

Lenovo Group is engaged in the manufacturing of personal computers (PCs) related IT

products, and services. The group also provides a range of notebook computers, desktop

computers and mobile handsets. The group also provides computer accessories and

upgrades, computer software and services, which includes services for small, medium

and large businesses. The group primarily operates in North America and China. It is

headquartered in Morrisville, North Carolina and employs 25,100 people.

The group recorded revenues of $14,590.2 million during the fiscal year ended March

2007, an increase of 9.9% over 2006. The groups performance was driven by strong

growth in the notebook computers in consumer and small enterprise segments. The

operating profit of the company was $194.7 million during fiscal year 2007, an increase

of 74.3% over 2006. The net profit was $161.1 million in fiscal year 2007 compared with

$22 million in fiscal 2006

Genuine Windows software is published by Microsoft and licensed and supported by

Microsoft or an authorized licensor. Genuine software helps protect you from the risks of

counterfeit software, provides you with special benefits and the experience and support

you expect. Learn more by visiting www.microsoft.com/genuine.

Lenovo. New World, New Thinking. Lenovo strives to be a new world company that

makes award-winning PCs for our customers. We operate as a company uninhibited by

walls or organizational structures using worldsourcing to harness the power of innovation

across our global team. We design innovative and exciting products and services to meet

our customers' needs.
http://www.microsoft.com/genuine%20http://www.microsoft.com/genuine%20


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HISTORY

1981: IBM PCD introduces its first Personal Computer, the IBM PC.

1984: IBM PCD introduces its first portable computer, the IBM Portable PC,

weighing 30 pounds.

With an initial capital outlay of only RMB200,000, (US$25,000) Lenovo

founding chairman Liu Chuan, together with 10 like-minded colleagues,

founds the New Technology Developer Inc. (the predecessor of the

Legend Group) funded by the Chinese Academy of Sciences.

1986: IBM PCD announces its first laptop computer, the PC Convertible,

weighing 12 pounds.

1987: IBM PCD announces the Personal System/2 personal computer.

Legend successfully rolls out the Legend Chinese-character card.

1988: Legends Chinese-character card receives the highest National Science-

Technology Progress Award in China.

Legend Hong Kong is established.

1989: Legend Computer Group Co. is established.

1990: The very first Legend PC is launched in the market. Legend changes its

role from that of an agent for imported computer products into that of a

producer and seller of its own branded computer products. Legend PCs

are ratified and accepted by the China Torch Program.

1992: IBM PCD introduces ThinkPad, the industrys first notebook with a 10.4

inch color Thin Film Transistor (TFT) display and a Track Point (red ball)

pointing device.

Legend pioneers the home PC concept and Legend 1 + 1 home PCs enter


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the Chinese marketplace.

1993: Legend enters the Pentium era, producing Chinas first 586 PC. Legend

establishes 1+1 retail network.

1994: IBM PCD introduces the industrys first notebook with integrated CD-ROM,

the ThinkPad 755CD.

Legend is listed on the Hong Kong Stock Exchange. The Legend PC

business division is formally established.

1995: IBM PCD introduces the butterfly keyboard. IBM PCD moves

from Boca Raton, Florida, to Raleigh, North Carolina.

Legend introduces the first Legend-brand server.

1996: Legend becomes the market share leader in China for the first time.

Legend launches the first multi-function laser printer. Legend introduces

the first Legend brand laptop.

1997: IBM PCD introduces the industrys first notebook equipped with a DVD-

ROM, the ThinkPad 770.

Legend signs an Intellectual Property agreement with Microsoft, the most

valuable deal ever made in China at the time.

Legend launches the first multi-function laser printer.

1998: IBM PCD introduces the industrys first Think Light, a small light that

illuminates the keyboard in low-light work environments, such as onboard

an airplane.

The millionth Legend PC comes off the production line. Intel Chairman

Andy Grove attends the ceremony, and takes the PC for Intels museum

collection.


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Legend establishes the first Legend Shop.

Legend introduces the happy family software, which is pre-installed in all

Legend home PCs. It further boosts Legend market share up to 14.4%.

1999: IBM PCD introduces the industrys first mini-notebook, weighing less than

three pounds, with standard ports and a keyboard that is 95 percent of full-

size.

IBM PCD announces its exit from the retail business.

IBM PCD introduces the industrys first PC with an embedded security

chip.

Legend becomes the top PC vendor in the Asia-Pacific region, and heads

the Chinese national Top 100 Electronic Enterprises ranking.

Legend launches pioneering Internet PC, with its "one-touch-to-the-net"

feature, which enables millions of Chinese PC users to easily access the

Internet.

2000: IBM PCD ships its 10-millionth ThinkPad notebook PC.

Legend stock price dramatically increases. Legend becomes a constituent

stock of the Hang Sang Index - HK flagship high-tech stock.

Legend ranked in top 10 of world's best managed PC venders.

Legend named "The Company in the PRC" by various world famous

investor relations magazines.

2001: An IBM notebook with an embedded security chip becomes the industrys

first notebook to be certified by the Trusted Computing Platform Alliance,

an industry body setting data security standards.


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Legend successfully spins off Digital China Co. Ltd., which is separately

listed on the Hong Kong Stock Exchange.

Yang Yanking appointed President and CEO of Legend.

Legend first introduces "digital home" concept and launches accessories-

enabling PC.

2002: IBM PCD introduces Image Ultra and Rapid Restore, the first automatic

data recovery technologies of their kind.

IBM PCD announces desktop PC outsourcing pact with Stamina-SCI.

Legend launches its first technological innovation convention, Legend

World 2002, which opens up Legends Technology Era. Legend

introduces its visionary concept for the future of technological development

and applications, its Collaborating Applications project, as well as its

strategies for implementing Collaborating Applications.

Legends supercomputer, the Deep Comp 1800 makes its debut. It is

Chinas first computer with 1,000 GFLOP (floating point operations per

second) and Chinas fastest computer for civilian use, ranked 43rd in the

Top 500 list of the worlds fastest computers.

The mobile handset joint venture announced, marking Legend's formal

entry into the mobile handset business.

2003: IBM PCD introduces the industrys first notebook with an extended battery

life of up to 11 hours.

IBM PCD introduces its Think Centre desktop PC line.

IBM PCD introduces its Active Protection System, the industrys first

notebook with an airbag for hard drive and data protection in case the


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system is dropped.

IBM PCD ships its 20-millionth ThinkPad notebook PC.

Legend announces the birth of its new "Lenovo" logo to prepare for its

expansion into the overseas market.

Based on the collaborative application technology, Lenovo initiates IGRS

Working Group, in cooperation with a few large companies and the

Chinese Ministry of the Information Industry, to promote the formation of

the industrial standard.

Lenovo launches a Tech Road Show 2003 nationwide to promote Lenovo

innovation.

Lenovo successfully develops Deep Comp 6800 in November 2003. It

ranks 14th on the global list.

2004: IBM PCD introduces the Think Centre ultra small desktop PC, no larger

than a box of corn flakes.

IBM PCD introduces the first notebook with an integrated fingerprint

reader.

IBM PCD ships its 100-millionth PC (counting both desktop and notebook

computers).

Lenovo becomes the Olympic worldwide partner. It is the first Chinese

company to become a computer technology equipment partner of the IOC.

Lenovo decides to develop the rural market by launching the "Yeomen" PC

series designed for township home users.

Lenovo and IBM announce an agreement by which Lenovo will acquire

IBMs Personal Computing Division, its global PC (desktop and notebook

computer) business. The acquisition forms a top-tier (third-largest) global


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PC leader.

2005: Lenovo completes the acquisition of IBM's Personal Computing Division,

making it a new international IT competitor and the third-largest personal

computer company in the world.

Lenovo announces the closing of a US$350 million strategic investment

by three leading private equity firms: Texas Pacific Group, General Atlantic

LLC and New bridge Capital LLC.

Lenovo establishes a new Innovation Center in Research Triangle Park,

N.C., to enable customers, business partners, solution providers and

independent software vendors to collaborate on new personal computing

solutions.

Lenovo introduces the industry's thinnest, lightest and most secure Tablet

PC, the ThinkPad X41 Tablet.

Lenovo introduces the first widescreen ThinkPad with embedded wireless

WAN, the ThinkPad Z60, available for the first time with a titanium

cover.

Lenovo becomes the world's largest provider of biometric-enabled PCs

by selling its one-millionth PC with an integrated fingerprint reader.

William J. Amelia is appointed as CEO and President of Lenovo.

2006: Lenovo introduces the first dual-core ThinkPad notebook PCs,

Improving productivity and extending battery life for up to 11 hours.

Lenovo technology flawlessly supports the 2006 Olympic Winter Games in

Toronto, Italy, supplying 5,000 desktop PCs, 350 servers and 1,000 notebook

computers. Lenovo also hosts seven Internets I .lounges for use by Olympic


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Yang Yuanging

(chairman)

Yang Yuanqing is chairman of the board of Lenovo Group Limited. Prior to assuming his

current position, he was the president and chief executive officer of Lenovo. Mr. Yang

joined Lenovo in 1989 and became CEO in 2001. Under his leadership, Lenovo has been

China's best-selling PC brand since 1997. In 1999, Lenovo ranked as first in PC sales in

Asia-Pacific (excluding Japan) and has maintained this position ever since.

Mr. Yang has been named by BusinessWeek magazine as one of the "Stars of Asia," and

has been selected by the Chinese media as one of China's "Ten Star Entrepreneurs" and

"Ten Most Valuable Managers." He was also named by CCTV as a "Man of the Year" in

2004. He holds a masters degree from the Department of Computer Science at the

University of Science and Technology of China. Mr. Yang is also a member of the

National Youth Association Committee, director of China's Entrepreneurs Association, a

guest professor at the University of Science and Technology of China, and a member of

the New York Stock Exchange's International Advisory Committee


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ABOUT COMPANY

Lenovo strives to be a new world company that makes award-winning PCs for our

customers. We operate as a company uninhibited by walls or organizational structures

using world sourcing to harness the power of innovation across our global team. We

design innovative and exciting products and services to meet our customers' needs.

PROBLEM IDENTIFICATION

The core products of LENEVO PVT. LTD. have been DESKTOPS, NOTEBOOKS.

Thin clients being an institutional product can be success if it promoted in schools and

institution MBA and Engineering colleges, corporate house, and end user. To carry out

the promotion requires preparing a database of corporate houses, and specific location in

different part of Lucknow and find out contact name and phone number of concerned

person.


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VISION

To emerge as a global generics player.

To enter their advanced markets of the world with

sustained presence over the long term.


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MISSION

While committing to an on going improvement in performance revolving around

effective customer management we will :

Maintain the highest levels of integrity in business conduct.

A strong sense of public responsibility

And earn a competitive return.

And earn a competitive return

We are orienting our selves to excellence in technology, research, marketing,

manufacturing and distribution through continuous company wide improvement and

innovation, we will strengthen our leadership position world wide. We will promote and

provide and open a participative work environment with growth opportunities for all

employees.


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LENEVO

PRODUCTS


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COMPETITORS

Dell Inc. (NASDAQ: DELL) is a trusted and diversified information

technology supplier and partner employing 65200 employees worldwide working

towards selling a comprehensive portfolio of products and services to customers

worldwide. Dell is recognized by Fortune magazine as America's most admired

company and No. 3 globally, designs, builds and delivers innovative, tailored

systems that provide customers with exceptional value. Company revenues for the

last four quarters were $54.2 billion.

Dell India Pvt Limited (the Indian arm of Dell Inc.) was incorporated in

1996.Dells direct operations in India started in the year 2000 from Bangalore.

Ever since its launch in India, Dell India has been growing at a tremendous pace.

The major support factor for this growth has been the team, Dells direct model

and the high levels of post sales service given to the customers. Dell India got the

top rank for product and post sales service support in the DQ-IDC Customer

Satisfaction Audit 2005. This feedback from customers is a clear indication of

Dell's growing stature in India.

Dell's Higher Standard

Dell's success is built on a foundation of personal and professional integrity. We

hold ourselves to standards of ethical behavior that go well beyond legal

minimums. We never compromise these standards and we will never ask any


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member of the Dell team to do so either. We owe this to our customers, suppliers,

shareholders and other stakeholders. And we owe it to ourselves because success

without integrity is essentially meaningless.

Our higher standard is at the heart of what we know as the "Soul of Dell" - the

statement of the values and beliefs which define our shared global culture. This

culture of performance with integrity unites us as a company that understands and

adheres to our company values and to the laws of the countries in which we do

business. Just as the Soul of Dell articulates our values and beliefs, the following

Code of Conduct provides guidance to ensure we meet our higher standard and

conduct business the Dell Way - the right way, which is "Winning with Integrity."

Simply put, we want all members of our team, along with our shareholders,

customers, suppliers and other stakeholders, to understand that they can believe

what we say and trust what we do. Our higher standard includes several key

characteristics that both underpin the Soul of Dell and provide the foundation for

our Code of Conduct:

Trust - Our word is good. We keep our commitments to each other and to our

stakeholders.

Integrity - We do the right thing without compromise. We avoid even the

appearance of impropriety.

Honesty - What we say is true and forthcoming - not just technically correct. We

are open and transparent in our communications with each other and about
http://www1.ap.dell.com/content/topics/global.aspx/corp/soulofdell/en/index?c=in&l=en&s=corphttp://www1.ap.dell.com/content/topics/global.aspx/corp/soulofdell/en/index?c=in&l=en&s=corp


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business performance.

Judgment - We think before we act and consider the consequences of our actions.

Respect -We treat people with dignity and value their contributions. We maintain

fairness in all relationships.

Courage - We speak up for what is right. We report wrongdoing when we see it.

Responsibility - We accept the consequences of our actions. We admit our

mistakes and quickly correct them. We do not retaliate against those who report

violations of law or policy.

COMPANY FACTS

The Company

Dell Inc. listens to customers and delivers innovative technology and services they

trust and value. Uniquely enabled by its direct business model, Dell sells more

systems globally than any computer company, placing it No. 28 on the Fortune

500. Dell's climb to market leadership is the result of a persistent focus on

delivering the best possible customer experience by directly selling standards-

based computing products and services. Revenue for the last four quarters totaled

$56 billion and the company employs approximately 65,200 team members

around the globe.

Dell was founded in 1984 by Michael Dell, the longest-tenured executive to lead a


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company in the computer industry. The company is based on a simple concept: by

selling computer systems directly to customers, Dell could best understand their

needs and efficiently provide the most effective computing solutions to meet those

needs. This direct business model eliminates retailers that add unnecessary time

and cost, or can diminish Dell's understanding of customer expectations. The

direct model allows the company to build every system to order and offer

customers powerful, richly-configured systems at competitive prices. Dell also

introduces the latest relevant technology much more quickly than companies with

slow-moving, indirect distribution channels, turning over inventory every four

days on average.

The Dell Effect

For more than 20 years, Dell has revolutionized the industry to make computing

accessible to customers around the globe, including businesses, institutional

organizations and individual consumers. Because of Dell's direct modeland the

industry's response to itinformation technology is more powerful, easier to use

and more affordable, giving customers the opportunity to take advantage of

powerful new tools to improve their businesses and personal lives.

Dell has demonstrated this effect time and again as it enters new, standardized

product categories, such as network servers, workstations, mobility products,

printers and other electronic accessories. Nearly one out of every five standards-

based computer system sold in the world today is a Dell. This global reach

indicates our direct approach is relevant across product lines, regions and customer


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segments.

Balancing Liquidity, Profitability and Growth

Dell's high return to shareholders has been the result of a focused effort over time

to balance growth with profitability and liquidity. Dell has consistently led its

largest competitors in each of those categories.

PRODUCTS AND SERVICES

Servers Dell's standards-based PowerEdge line of servers is designed to provide

customers affordable performance, reliability, and scalability. Options include

high performance rack and tower servers for enterprise customers and aggressively

priced tower servers for small organizations and workgroups/remote locations.

Storage Dell/EMC and Dell's PowerVault lines of storage products offer

customers a comprehensive portfolio of cost-effective hardware and software

products to store, serve and protect customer data. The portfolio includes external

storage, tape backup products, network attached storage, fibre channel arrays,

storage area networks, and rack solutions.

Printing and Imaging Systems Dell features a wide array of Dell-branded printers,

from photo printers for consumers to large multifunction lasers for corporate

workgroups. The Dell printer product line is focused on making printing easier to

buy, own, and use. All Dell printers feature the Dell Ink Management System or


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Dell Toner Management System, which simplify the supplies purchasing process

by displaying ink or toner levels on the status window during every print job and

proactively prompting users to order replacement cartridges directly from Dell.

Workstations Dell Precision desktop and mobile workstations are intended for

professional users who demand exceptional performance to run sophisticated

applications, such as three-dimensional computer-aided design, digital content

creation, geographic information systems, computer animation, software

development and financial analysis.

Notebook Computers Dell offers two lines of notebook computer systems. The

Latitude line is designed to address a wide range of business and organizational

needs, including powerful performance, portability, and flexibility. Latitude

offerings range from wireless-ready, highly expandable full-featured models to

thin, light ultra-portable models. The Inspiron line is targeted to customers who

require high-performance computer systems at aggressive prices. Typical

customers are individuals or small-to-medium sized businesses that require

optimum performance for their investment.

Desktop Computers Dell customers can select from two lines of desktop computer

systems. The OptiPlex line is designed for corporate, institutional and small

business customers who demand highly-reliable, stable, manageable and easily

serviced systems within networked environments. The Dimension line is designed

for small businesses and home users requiring fast technology turns and high-

performance computing. The Dimension product line typically features the latest


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high-performance components.

Networking Products Dell's PowerConnect switches connect computers and

servers in small- to medium-sized networks. PowerConnect products offer

customers enterprise-class features and reliability at a low cost.

Software and Peripheral Products Dell offers a multitude of competitively priced

software and peripheral products, including software, monitors, printers,

handhelds, notebook accessories, networking and wireless products, memory,

digital cameras, projectors and scanners. The company also offers several new

Dell peripheral products, including plasma and LCD TVs, and Axim handhelds.

Managed Services Dell's wide range of IT management services allow customers

to lower annual service costs and enhance performance without sacrificing control

of their systems. Dell Managed Services assists customers in planning,

deployment, maintenance, asset management, on-site field services and other

related services.

Professional Services Dell Professional Services help businesses utilize emerging

technology, enhance efficiencies, reduce business risk and maximize return on

technology investment. Using its expertise and best practices in technology

consulting, application development, solutions integration, and infrastructure

design, Dell designs, develops and implements end-to-end technology solutions.

Deployment Services Dell's deployment services are designed to rapidly configure

and deploy Dell systems and products into IT environments. Dell's custom factory


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integration services allow customers to configure systems to meet their specific

hardware and software needs. Additional deployment services include asset

management and recovery services, custom delivery services, installation services,

managed deployment services and image management services.

Support Services Dell offers a variety of customized services and support

programs tailored to meet specific customer requirements. Customers can select

from four tiers of service levels through Enterprise Support for server and storage

systems. Additionally, the company provides a limited warranty for all computer

systems and offers 24 hour telephone and online technical support. Warranty

upgrades and services such as CompleteCare accidental damage protection, At

Home Service for technical support and Express Tech Support, give customers

priority access to Dell's technical support team.

Training and Certification Services Dell's training and certification programs

appeal to businesses and consumers worldwide. The company's online training

programs feature more than 1,200 courses for consumer, business and IT

professionals. The courses are designed for all skill levels and range from personal

finance to business productivity to IT certification.

On-site service is provided by independent third-party service providers. Dell, the

Dell logo, Dell Ink Management System, Dell Toner Management System,

PowerEdge, PowerVault, PowerConnect, Dell Precision, Inspiron, Latitude,

OptiPlex, Dimension, Axim and Premier Dell.com are trademarks of Dell Inc.

Microsoft and Windows are trademarks of Microsoft Corp., Intel is a trademark of


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Intel Corp. and EMC is a trademark of EMC Corp.

DELL FINANCIALS

(in millions, except per-share data) FY'06 FY'05 Change

Revenue $15,183 $13,457 13%

GAAP Operating Income $1,246 $1,187 5%

Non-GAAP Operating Income 2 $1,246 $1,187 5%

GAAP Net Income $1,012 $667 52%

Non-GAAP Net Income 2 $1,012 $947 7%

GAAP EPS $0.43 $0.26 65%

Non-GAAP EPS 2 $0.43 $0.37 16%

Days supply in inventory 4 4

Annual Financial Highlights

(in millions, except per-share data) FY061 FY052 FY04 FY03 FY023

Net revenue $55,908 $49,205 $41,444 $35,404 $31,168

Operating income $4,789 $4,254 $3,544 $2,844 $2,271

Net income $3,825 $3,323 $2,645 $2,122 $1,780

Earnings per share $1.56 $1.29 $1.01 $0.80 $0.65


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Closing stock price $29.26 $41.06 $33.44 $23.86 $26.80

Growth Highlights


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CHAPTER - III

RESEARCH METHODOLOGY


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OBJECTIVE

Today is the world of competition Every company wants to be maximized its

market exist in competitive environment.

This project title is assigned to me by the CENTURY COMPUTER LUCKNOW,

which I have completed under the close supervision and guidance of

Sharma Regional manager CENTURY COMPUTER Laboratories. LUCKNOW .

Objectives of undergoing study are as follows.

Evaluation of Brand Imge of Lenevo Compute as Pe Consumer Perception in Lko1

Documents

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