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long term focus is to establish a robust channel ecosystem focusing
more on the
exclusive capacity to tap into the vast potential of the Indian
market
focus on channels is driven by the need to develop a core channel
partner ecosystem in India, similar to that of Lenovo's highly
successful model in China. The company considers channel partners as
partners in profit and works towards fortifying its channel
relationship and nurtures it as a long-lasting, mutually beneficial
bond.
The
company believes that the marketing strategy will always have to be
tailored according to the strength or channel structure in that
market. It also believes that channel is the key route to marketing.
Enhancing store presence and visibility leads to an effective
implementation of marketing strategy. Andcomarketing through the
partners is also another way to reach out to customers.
Lenovo
has broadly divided its channel set up into three
divisions-relational business, SMB, and consumer/home business.
Each of these divisions have a separate channel head. Relational
business is headed by Rajesh Dixit, SMB by Sharad Verma, and
consumer/home business by Dinesh Nair. Each of these heads is
responsible for its respective division's workforce to a large
extent- including appointments, targetassignments, relation
building, channel execution, delivery, rebates, and programs.
BUSINESS
The
channel head for relational business is responsible for
overallcontribution from the channel team through indirect business
to be in line with the channel strategy. Under the channel head,
there are regional channel managers who areresponsible for nurturing
and retaining Lenovo's top partners based on their performances.
They also take care of streamlining business efficiencies and are
responsible for enhancingthe overall indirect process. Their key
function is to ensure profit through channels and play a critical
role in channel expansion to generate more business, thereby
increasing marketshare. “Lenovo is keen on increasing its
marketshare through channel expansion to ensure all our products are
available and accessible to consumers in remote regions as well. To
keep up with our goal of increasing our marketsharein the large
enterprise space, we have a specific model called LE Think Large to
cater large enterprise accounts in India,” said Rajesh Dixit,
director, relational business, ThinkClassic Product Group and
Channel, Lenovo India.
SMB
The
channel head for SMB is responsible for managing all the channels or
verticals which include the SMB Regional Distributors (SRD), VARs
(Value Added Resellers) and retail. Then, there are national
distribution managers who are responsible formanaging tier-1
distributors in terms of their target setting, productivity,
execution, and delivery. Further, there are regional channel managers
who are responsible for doing a sell-through from distributors to the
verticals in their regions. Besides, the company has also appointed
Feet-On-Street (FOS) unit, which is responsible for selling partners'
stock to customers. The FOS unit reports to regional channel managers
but comes under the payroll of a third-party. “Lenovo's go-to-
arket strategy is designed to have product wise exclusive
distributors. For our ThinkPad products, we have 3 national
distributors and 1 regional distributor in Delhi and NCR. We also
have an exclusive distributor (Elcom) for our premium range of
products in this region. Our X&T premium range of series in
ThinkPad is distributed nationally by Rashi Peripherals and Neoteric
except in Delhi and NCR. Apart from these, our SRDs, VARs and retail
channel partners sell our entire range of products,” pointed out
Sharad Verma, national sales manager-SMB & HSB, Lenovo India.
CONSUMER/HOME
BUSINESS
The
channel head for consumer/home business is responsible for effective
delivery and results of the retail strategy. His key role is to make
important decisions related to stores and incentive programs to drive
good business and meet targets. Under the channel head are the
national distribution managers who are responsible for managing the
tier-1 distributors in terms of their target setting, productivity,
execution, and delivery. Then, there are regional channel managers
who are responsible for doing a sell-through from beginning to end
through the distributors to verticals in their regions. Here also,
Lenovo has appointed FOS unit as an extended arm of its sales force,
responsible for management of tier-2 and 3 business partners. They
focus on increasing the company's sales and customer sell-out from
the specific set of business partners. They report to the regional
channel managers but come under the payroll of a thirdparty. “Our
go-to-market strategy is about focusing on the retail channel best
suited to address the regional market. The key focus is reaching out
to consumers through our exclusive stores and achieve penetration in
tier- 4 to tier-7 markets. We are also planning to fortify our
partnerships with key multi brand outlets to position Lenovo as a key
brand,” said Dinesh Nair, GM-retail & HSB, Lenovo India.
“
have a strong focus on multi brand retail as well. Lenovo multi brand
and large format retail help in ensuring that the Lenovo brand
is an important part of their offerings. Apart from these, we have
over 2,500 tier-3 business partners across the country who buy
products from regional distributors, who are a combination of
storefronts, resellers and VARs, who cater to consumers in areas
which are primarily not addressed by other direct formats,” added
Nair.
MODELS
The
partner rating, certification, and accreditation model is not
applicable to the relational business. However, in SMB, partners are
rated as gold or silver based on their targets achieved. As far as
consumer/home business is concerned, it has different rating programs
for its partners based on targets they achieve. This includes gold,
silver, and platinum. It also has a special rating system called the
Super Brand Elite Council for its premium partners.
PROGRAMS
In
order to enable its channel base and ensure that they are fully
conversant with the products, the relational business invests in
training them in both technical and non- echnical areas. These
specific training modules are organized for its channel partners on
an ongoing basis across various tier-1 and 2 cities regularly. It
also organizes several 'Think Ready' trainings across the
country. “We are working on a solution to provide online training.
We consistently undertake training and support initiatives for the
benefit of our partners, thus earning us the reputation of being one
of the mostchannel-friendly companies in India today,” asserted
Dixit. In SMB and consumer/home business, Lenovo consistently
facilitates face-to-face interactions between all partners and sales
representatives for monthly updates on product features, prices,
schemes, and emerging purchase trends for mutual profitability. On a
quarterly basis, its product managers along with Intel and Microsoft
partners visit every region and train its partners. They also give
them a live product demonstration and answer all their queries.
is company's certified master class training program. The company
has also tied up with Reliance Digital on a quarterly basis across
major metros in India to train all their channel partners and the
shop floor staff about Lenovo products and how to use key sales
skills that consistently win business. Additionally, it educates them
about its products' roadmap for their deeper understanding. The
regional channel managers train all its local sales representatives.
Further, Lenovo organizes workshops and events, where it invites
partners to an exotic location and trains them about the products,
features, benefits, and enterprise trends.
SCHEMES
Lenovo's
incentive schemes are always tailored to tie up with the business
objectives of the company and it differs from vertical to vertical.
It has a unique incentive program called the product mix. The
company believes that for a business to beprofitable, it is important
that partners should arrive at a clear mix in terms of product lines
that benefit the business. There is a very clear and distinct
performance bonus which is linked to the product mix. This not only
helps in benefiting the company as the product mix is healthy, but
also the partners in terms of more turnover and profit. In relational
business, Lenovo provides several incentive schemes in desktops,
laptops and software and peripherals in power with the business
strategies and channel execution. In SMB, the company encourages its
partners with a lot of on-going incentive schemes on a monthly and
quarterly basis. This scheme includes the back end rebates called the
minimum order quantity which is offered to partners based on the
quantity they buy.
“
a monthly and quarterly basis, Lenovo's incentive scheme varies and
largely depends on the market situation. This year Lenovo introduced
some mega programs for its partners. In JFM 2011, in the Skipper Club
program, it awarded Cricket World cup final tickets to the partners
who achieved the highest slab. In March, it also launched the Magic
March storm. Here, partners could win themselves a trip to the
Bahamas and the likes. The company also run incentive programs for
partners' sales force to encourage them to get more business for
Lenovo,” highlighted Verma. “From a channel partner's
perspective, Lenovo is one of the most profitable brands to work
with. Our policies are robust; pricing is stable with a much defined
channel structure and processes in place backed by the industry's
best claims management team. The important part is that all schemes
are documented, backed by clear company communication and there are
tight controls in place to ensure that all the transactions are
transparent,” concluded Nair.
company is planning to expand its channel partner base in 2011. This
would help Lenovo to offer its products in remote locationin India.
This will involve significant penetration into the interiors of
India; build a solid retail and distribution channel that can address
its needs to reach every nook and corner of the country. Its
immediate aim is to significantly enhance exclusive retail channel
capacity andhave 1,000 retail touch points for Lenovo by March,
2012.