Marketing Project on HP laptops
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INTRODUCTION A laptop also known as a notebook is a personal computer designed for mobile use small enough to sit on one's lap. Laptops are usually shaped like a large notebook with thicknesses between 0.7–1.5 inches (18–38 mm) and dimensions ranging from 10x8 inches (27x22cm, 13" display) to 15x11 inches (39x28cm, 17" display) and up. Battery-powered portable computers had just 2% worldwide market share in 1986. But today, there are already more laptops than desktops in businesses, and laptops are becoming obligatory for student use and more popular for general use. In 2008 more laptops than desktops were sold in the US and according to a forecast by the research firm IDC and Intel, the same milestone will be achieved in the worldwide PC market as soon as 2009. The Notebooks Market in India: •
The proportion of notebooks in the overall PC sales is fast increasing as it becomes affordable. Accounting for over 25 per cent of the total PC market in Q1 2009, notebook sales recorded a high growth of 114 per cent taking the CAGR (six-year time period) to 104 per cent. Consumption of notebooks was driven by reasons of affordability, mobility, sleek designs, enhanced security features and other in-built accessories. Focused marketing initiatives by the vendors and celebrity endorsements have also contributed to increased notebooks consumption in the country. The establishments segment as well as the households witnessed healthy growth in notebook sales.
The establishment segment witnessed a growth of 93 per cent over the last year. Towns and cities outside the top four metros contributed to nearly 80% of the notebook sales in the establishment segment. The small and medium establishments recorded significant growth in Q1 2009 at 174 per cent and 123 per cent respectively over 2007-08. The SMEs accounted for over fifty per cent of the total notebooks consumption in the country. Consumption in the large establishments grew by fiftyone per cent. The household segment, accounting for forty-four per cent of the overall notebook sales in the country, registered an impressive growth of 150 per cent in the last fiscal. The SEC A and SEC B households, together, contributed to over 90 per cent of the notebook sales in the household segment. Notebooks have also started to make rapid inroads into the SEC C as well. Notebook consumption has driven the PC market in India in Q1 2009. With sales crossing a million units in the second-half of last fiscal, total sales of notebooks in Q1 2009 surpassed 22 lakh units growing 114 per cent over the last year. Today, notebooks account for a quarter of the total PC market in the country, up from less than three per cent four years ago. With shifting consumer-preference in favor of notebooks over the desktop, this proportion will only get larger with time.
Company history Founding William (Bill) Hewlett and David (Dave) Packard both graduated in electrical engineering from Stanford University in 1935. The company originated in a garage in nearby Palo Alto during a fellowship they had with a past professor, Frederick Terman at Stanford during the Great Depression. Terman was considered a mentor to them in forming HewlettPackard. In 1939, Packard and Hewlett established Hewlett-Packard (HP) in Packard's garage with an initial capital investment of US$538. Hewlett and Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett. Packard won the coin toss but named their electronics manufacturing enterprise the "HewlettPackard Company". HP incorporated on August 18, 1947, and went public on November 6, 1957. Of the many projects they worked on, their very first financially successful product was a precision audio oscillator, the Model HP200A. Their innovation was the use of a small light bulb as a temperature dependent resistor in a critical portion of the circuit. This allowed them to sell the Model 200A for $54.40 when competitors were selling less stable oscillators for over $200. The Model 200 series of generators continued until at least 1972 as the 200AB, still tube-based but improved in design through the years. At 33 years, it was perhaps the longest-selling basic electronic design of all time. One of the company's earliest customers was The Walt Disney Company, which bought eight Model 200B oscillators (at $71.50 each) for use in certifying the Fantasound surround sound systems installed in theaters for the movie Fantasia. Important Events • 1939: William Hewlett and David Packard enter into a partnership; Hewlett-Packard (HP) is born. •
1940: HP operations begin in Palo Alto, California.
1947: HP is incorporated.
1951: HP introduces the HP524A high-speed counter.
1957: HP shares are offered to the public.
1958: HP acquires F.L. Moseley Company, manufacturer of graphic recorders.
1959: HP establishes a marketing office in Geneva and a manufacturing facility in Boeblingen, West Germany.
1960: HP opens factory in Loveland, Colorado.
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1961: HP purchases the Sanborn Company, a medical instruments manufacturer and is listed on the New York Stock Exchange.
1966: HP develops its first computer.
1969: David Packard is appointed deputy secretary of defense under U.S. President Nixon.
1972: HP introduces a handheld scientific calculator, the HP-35; HP introduces the HP3000 microcomputer.
1977: Bill Hewlett relinquishes his role as president of HP to John Young.
1980: HP introduces its first personal computer, the HP-85.
1982: Compaq Computer Corporation is founded.
1983: Compaq initial public offering raises $67 million; securities are traded on NASDAQ.
1984: HP's LaserJet printer makes its debut; Compaq computers are introduced in Europe; Compaq introduces the first Compaq desktop, the Compaq Deskpro.
1985: Compaq securities begin trading on the New York Stock Exchange.
1986: Compaq ships its 500,000th personal computer and completes construction of Compaq Main Campus in Houston.
1987: Compaq manufactures its one-millionth personal computer and opens manufacturing facility in Scotland.
1988: HP's stock begins trading on the Tokyo stock exchange.
1989: HP purchases Apollo Computer; Compaq purchases Wang facility in Sterling, Scotland; Compaq introduces Compaq Systempro and the first Compaq notebook PC, the Compaq LTE.
1990: Compaq establishes East European sales organization and opens office in Berlin.
1991: HP introduces the 95LX palmtop personal computer; Eckhard Pfeiffer is named CEO of Compaq; Compaq announces its first billion-dollar quarter; Compaq enters the Japanese marketplace and introduces its first modular PC, the Compaq Deskpro/M family.
1992: Lewis E. Platt replaces Young as head of HP; Compaq introduces its first printer product, the Compaq Pagemarq; Compaq computer training center is established in China.
1993: Packard retires and Platt is named chairman, president and CEO of HP; Compaq introduces Compaq DirectPlus and delivers first Pentium processor-based products; Compaq's PC Division is split into Desktop and Notebook PC divisions; Presario family is launched; Compaq's printer business is discontinued.
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1994: Compaq surpasses IBM as the number one seller of PCs worldwide; Compaq introduces first sub-notebook, Compaq Aero; Compaq opens a manufacturing facility in Brazil.
1995: HP launches the Pavilion line of home computers. Compaq is awarded Europe's largest-ever PC contract with British Telecom; HP opens manufacturing facility in China; HP acquires Thomas-Conrad and Net Worth.
1996: HP co-founder, David Packard dies on March 26, 1996; Compaq introduces its handheld PC, the PC companion, and its Armada family of value-priced, flexible notebooks.
1997: HP acquires Verifone, Inc., maker of in-store terminals for verifying credit card transactions; Compaq announces the new Presario 2000 series and introduces the TFT 500, flat-panel monitor; Compaq acquires Microcom and Tandem Computer Inc.
1998: Forbes magazine names Compaq its 1997 Company of the Year; the U.S. Environmental Protection Agency names Compaq the "Green Lights Corporate Partner of the Year"; Compaq is also awarded Novell's Service Excellence Award; Compaq acquires Digital Equipment Corporation.
1999: HP president Platt retires and Lucent-executive Carly Fiorina is appointed president and CEO.
2000: Compaq acquires assets of Inacom and creates Custom Edge, Inc.; Compaq announces 10-year corporate alliance with The Walt Disney Company; Compaq unveils iPAQ Pocket PC.
2001: HP co-founder Bill Hewlett dies on January 12, 2001; HP acquires application server specialist Bluestone Software; Compaq creates the AltaVista Company and acquires Shopping.com; Michael D. Capellas is appointed president and chief executive officer of Compaq; Compaq and Yahoo! announce a comprehensive global technology and marketing alliance; Compaq unveils "Evo" notebooks and workstations; Hewlett-Packard and Compaq announce their planned merger.
2002: HP and Compaq merge on May 3, 2002; HPQ is unveiled as new stock ticker for combined company
On October 8, 2006 Reuters ran a story describing pretesting used by HewlettPackard and other companies. On October 12, 2006 hp announced the appointment of Jon Hoak as vice president and chief ethics and compliance officer. Hoak served as senior vice president and general counsel for NCR from 1993 until May 2006. On December 7, 2006 hp paid $14.5 Million to settle civil charges brought by the California Attorney General. In July 2007, the company announced that it had met its target, set in 2004, to recycle 1 billion pounds of electronics, toner and ink cartridges. It has set a new goal of recycling a further 2 billion pounds of hardware by the end of 2010. In 2006, the company recovered 187 million pounds of electronics, 73 percent more than its closest competitor.
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Management Co-founder: David Packard (President: 1947; Chairman: 1964–1969; Chairman 1971–1993) Co-founder: William Hewlett (Vice President: 1947; Executive Vice President: 1957; President: 1964; CEO: 1969; Chairman of the Executive Committee 1978; Vice Chairman 1983–1987) Chairman of the Board, CEO, and President: Mark Hurd (March 29, 2005–current, appointed Chairman September 22, 2006) CEO: John A. Young (1978–October 31, 1992) CEO: Lewis Platt (November 1, 1992–July 18, 1999; Chairman 1993–July 18, 1999) Chairman: Richard Hackborn (January, 2000–September 22, 2000; Lead Independent Director September 22, 2006–) CEO: Carly Fiorina (July 19, 1999–February 9, 2005; Chairwoman September 22, 2000–February 9, 2005) Interim CEO: Robert Wayman (February 9, 2005–March 28, 2005) Chairwoman: Patricia C. Dunn (February 9, 2005–September 22, 2006). CEO: Mark Hurd (CEO: April 1, 2005–; Chairman: September 22, 2006–)
Legendary Direct sales model, favourite vendor for corporate houses due to aggressive pricing, cheapest option for any given configuration and excellent customization.
Pros: Dell notebooks on display at select stores in Chennai-you can touch and feel them now... 1. Relatively cheaper than competition for a given configuration 2. Prices may drop further once Dell’s India plant in Chennai becomes operational 3. Configure and customize as you wish 4. Only vendor who gives original OS media (With others you need to create recovery discs) 5. Only Vendor from whom you can ask Windows XP instead of Vista (Not available in Dell website, you need to ask for this manually later with Dell Representative.) 6. Available in Multiple colours (Inspiron and XPS series) 7. Blue Ray writer available optionally (Rs 28k extra!!!) 8. Prices can be negotiated. Some recent Dell Models are quite feature rich- travel Remote, 2MP camera, detachable DVD drives etc 9. Dell Latitude now comes with 19 hours (claimed) battery life, Longest ever. Cons: 1. you need to pay 100% in advance and wait for few weeks for delivery 2. No showrooms, No Service centers (Web and telephone help, onsite warranty in some cases) 3. You cannot see and feel the product before purchase. 4. No finance options arranged 5. Dell has no tablet PC as of now (Expected early 2008) 6. Trouble shooting can be a headache if you’re a computer novice. 7. Strong up-selling tactics can make you spend more than what you originally budgeted. 8. Other laptop dealers/service center staff may refuse outright to fix a dell unit or charge heavily for the service. (Reason being, since Dell deals directly with customers these people are losing commission) 9. If you buy a vista unit and want to downgrade to XP later, Dell will charge heavily for XP support.
Some of the most expensive notebooks available (Highest one costing INR 1, 99,990), can be seen in most of the movies, more as a style statement.
Pros: 1. High resale value and excellent brand recognition 2. Good build quality and attractive colors 3. Latest processors incorporated readily (In June, while most of HP notebooks had Dual Core processors, Sony Vaio were powered with latest Core 2 Duo (T5500 onwards)) 4. Blu ray technology (Blue ray writer) available (September 2009 update: This technology yet to reach the mass-price of Blu ray drives have come down drastically) 5. Sony gives official 3% discount on MRP 6. Finance arranged through Bajaj Finance. 7. Excellent screen clarity 8. Sony is the first company to launch flash based memory (no moving parts as in HDD, so far efficient and fast, but currently it costs Rs 1,40,000-more details on Vaio VGN TZ38GN series Cons: 1. Relatively expensive (Vaio mini (W series) starts from 30k, any other model with decent config (C2D) costs Rs. 50k INR onwards) 2. Blu Ray drives not available in entry level models 3. No Tablet PCs (They have some new concept called Panel PC!!!) 4. No option to make any changes in the specifications. 5. Don't think they have AMD based units
Sub 20k notebooks are available only from Acer. Hritik Roshan has been commissioned to sell this brand and strong advertising is going on. Nothing exciting about other models. Ferrari fans can go for their flagship Ferrari notebook, but I didn’t like the configuration.
Chinese firm Lenovo bought IBM’s PC and notebook unit few years ago. Their license to use IBM logo expires soon. Only brand to have face recognition. Legendary ThinkPad series
starts 90k onwards and beyond the reach of common man. Y and R series are doing good business.
They’re not focused on notebooks. Just have X-note series in their portfolio besides hundreds of other products in consumer electronics. Pricing appears to be expensive for the given configuration. New x-note with Dual screen in unique to LG and not attempted yet by rest.
New entrant in the market. Caters to low end entry level segment. Good pricing. Tie up with Indiatimes, Big Bazaar etc. Yet to gain market share and popularity. Not enough feedbacks available.
Reasonably priced, but nothing unique.
Marketing Mix for HP
1. Product The Hewlett Packard or HP Company is, at present, the topmost Corporation with respect to the information technology (IT industry). HP is the organization known for revolutionizing printing industry. Moreover, it’s the pioneer in computer world. HP has, indeed, replaced Dell computers off late in the terms of computer shipments and sales. These days, HP is a common name as far as printers and the related technology are concerned. HP laptops as well as tablet PCs have been winning hearts of people in the last few years. In the year 2002, Compaq Inc. went on to merge with Hewlett Packard, thereby forming the single-biggest entity in the industry of computers. Through this acquisition, HP has surpassed Dell and IBM/Lenovo computers. After some difficulties following the merger and some marketing realignment and restructuration, HP has done a superb job in presenting attractive laptops and establishing their leadership in the marketplace. Current Series Today, HP has divided its home and small office laptop offering in four broad categories in order to reach their different targets. We are going to briefly summarize the specifics of each of these lines: Versatile performance. These are your standards laptops, the ones that you are most likely to find at most retailers. They are equipped with a 15.4” screen, the harddrives vary in between 120 GB and 320 GB, RAM goes from 1GB to 4 GB. They come with the standard wifi and Bluetooth elements. They weight around 7 pounds. Their prices vary from $500 to $1,100. The laptops included in this line are the followings: HP
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Pavilion dv5z, HP Pavilion dv6700t and HP Pavilion dv5t.
HP Pavilion dv6700t Mobility. Mobility is the latest trend among individuals of the modern world. Laptop notebook has a chief advantage in that regard instead of a desktop. It has all the features of a desktop and yet is portable enough to be carried around. The main difference comes from their dimension, screens drop to 12.1” to 14.1”, the harddrives go from 120 GB to 320 GB, and RAM goes from 1 GB to 4 GB. They come with the standard wifi and Bluetooth elements. They weight around 4.5 to 5.3 pounds. Their prices vary from $650 to $1,200. The laptops included in this line are the followings: HP Pavilion dv2700t, HP Pavilion tx2500z, HP Pavilion dv4z and HP Pavilion dv4t.
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HP Pavilion tx2500z Entertainment Powerhouse. We now enter the category of the desktop replacements; screens vary in between 17" or 20.1". Harddrives go from 120 GB to 640 GB; RAM goes from 2 GB to 4 GB a choice of quality graphics card. They also come with the standard wifi and Bluetooth elements and more extensions than regular laptops. They weight around 4.6 to 15.3 pounds. Their prices vary from $800 to $1,900. The laptops included in this line are the followings: HP Pavilion dv7z, HP Pavilion dv9700t, HP Pavilion dv7t and HP Pavilion HDX Entertainment Notebook PC.
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HP Pavilion HDX Special Edition. In short, it's all about the look! Think special edition, you don’t want a laptop that looks like everyone else, and then these are for you. Inside, it’s more or less a
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mix of the versatile and mobility lines so that HP can tailor to both segments. Screens vary in between 14.1" or 15.4". Harddrives go from 120 GB to 320 GB; RAM goes from 2 GB to 4 GB. They also come with the standard wifi and Bluetooth elements. They weight around 5.3 to 6.1 pounds. Their prices vary from $770 to $1,000. The laptops included in this line are the followings: HP Pavilion dv6700t, HP Pavilion dv2700t, HP Pavilion dv2800t
HP Pavilion dv2800t The above-mentioned HP laptops are available along with multiple customized features. HP laptops fall in the category of high-end models with the most recent features and configurations. There are various accessories provided for the business purposes. Every notebook comes with Business Edition of Windows Vista and the other business-related
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HP Pavilion dv6000t: It features for durable coating and impressive finish. With the Pavilion dv6000t, you will get a webcam and microphone for video chatting on the 15.4 inch widescreen. Other features are a dual-layer DVD burner, 1GB RAM, and 80GB hard drive. They have provided the Quick Play feature which plays movies music and photos with the push of button without booting Windows, whether those files are stored on hard drive, disc, and USB drive or on a memory card in the 5-in-1 reader. HP note books are suitable for home use, small and large businesses. HP pavilion note books pc is great for entertainment and gaming. It provides multi tasking performance and it is flexible. HP pavilion lap tops have built in web cams and finger print reader. The pavilion series note books have desk top replacement feature and many other options to include graphics, high speed wifi and so on. You can view and share pictures, movies from note books to TV or LCD displays. They are available at reasonable rates. HP Compaq Presario note books have high speed performance. It is suitable word processing; browsing, viewing DVD’s and photos. It provides shiny imprint image. It has wireless connectivity and this series of Compaq Presario notebooks run on Genuine Window Vista Operating system. HP Business notebooks are reliable and secure. It has full drive encryption and improved security features. It has separate pass word management. It provides smart card authentication and pre boot environment that restricts unauthorized access. It offers data protection through encryption and Trusted Platform Module to provide security features. The Trusted Platform Module uses strong password that protects your hard drive. HP notebooks use a clever battery design for all day computing. This is most important for mobile business man who spent more time out of office. It has ultimate battery capacity so that it provides additional productivity without plugging in. HP technology minimizes the time taken to charge the battery. It helps to charge the battery fast up to 90 %. It has separate dual colour indicator that will specify the capacity of the battery. HP quick look feature allows you to access emails, documents etc. with single button convenience. You can get the data within 10 seconds. HP presentation button helps you to provide presentation quickly. You can concentrate on the project and not the technology behind it. The after sales service and customer support has also to be taken into consideration like if you are an international user, you should review insurance coverage for your laptop. Extended guarantees make sense if you are a frequent user or carry the laptop with you everyday. Some of the key factors which make HP the most preferred brand are upgradeability, elegance, light weight and well within budget if
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features are to be kept in mind. Equipped with state-of-the-art-processor (manufactured by Intel), HP always chooses the most advanced technology and uses the vast sale to keep its prices down. Most of the customers who are using HP Laptops don’t face any problems with their Laptops. Generally out of 100% only 10% of products are defective. When you purchase an HP Laptop from an authorised dealer you also get a one year warranty and when you purchase Laptops by assembling from an unauthorised dealer there is no warranty.
HP has established itself as a solid brand; their success is due to their formidable sales machine on one hand but also due to the quality of their products. HP laptops always rank high in customer satisfaction and if you are in buying mode, Hp laptops have to be toward the top of your list.
Pricing is 2nd determinant in the marketing mix. The price of a product should not be too high or too low. Pricing should be in such a manner so that it attracts costumers on one hand and is profitable to the company on other hand. Below is the pricing range of our products starting from lowest to medium highest range taking into account various levels of costumers? Rs. 25,000-35,000 Processor AMD Turion X2 Dual-Core Mobile RM-70, 2.0 GHz, 1 MB L2 Cache, 800 MHz system bus Memory 2 GB DDR2 SDRAM, Maximum 8 GB Storage 5400 rpm, 250 GB Hard Disk Drive SuperMulti 8x DVD±RW with Double Layer Support Display 15.4” WXGA High-Definition Bright View Resolution: 1280 x 800 External I/O Ports 4 USB 2.0, HDMI, VGA, port, RJ45 Ethernet connector, RJ-11 Modem connector, Expansion Port 3 2 Headphone out, 1 Microphone in, Consumer IR, Integrated Fingerprint reader Audio
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Altec Lansing speakers Power 6-cell Lithium-Ion Battery, 90 W AC Power Adapter Networking 802.11b/g Wireless LAN, Integrated 10/100/1000 Gigabit LAN, High speed 56K modem Warranty 1 year, parts and labor Operating System Windows Vista Home Basic Video ATI Radeon HD 3200 Graphics subsystem, HP Pavilion Webcam with Integrated Digital Microphone Physical Dimensions 35.7 (W) x 25.9 (D) x 3.49 (min H) / 4.19 (max H) cm Weight: 2.65kg Screen Size 15.4" Processor Speed 2.0 GHz Weight 1.5 - 3.0 kg Rs 35,000-50,000 Processor Intel Core 2 Duo T9600 (2.8GHz/6MB L2 Cache). Memory 4GB DDR2 SDRAM. Hard Drive 640GB 5400 RPM SATA Hard Drive. Display 17.0" WSXGA Bright View Wide Viewing 1680x1050, 1080p. Multimedia Drive Blu-ray Super Multi 8X DVDRW w/Double Layer. Video Graphics NVIDIA GeForce 9600M GS w/ Webcam. Digital Media 5-in-1 media card reader. Communication Intel Wireless Wifi Link 5100 Network Connection. Keyboard Full-Size. Pointing Device
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Touchpad with dedicated vertical & horizontal scroll pad. Dimensions 15.59" (W) x 11.22" (D) x 1.31" (min H)/1.66" (max H). Pc Card Slots Express Card/54 Slot External Ports Expansion port 3 connector, IEEE 1394 Firewire, HDMI 1.3 connector Four USB (Fourth shared with eSata port), Headphones out Microphone in RJ-45 (LAN) VGA port. Sound Integrated Altec Lansing stereo speakers (triple bass subwoofer) Power Standard Lithium-Ion battery Operating System Microsoft Windows Vista Home Premium Software HP Photo Smart Essentials Adobe Acrobat Reader Microsoft Works Microsoft Windows Media Player HP Games Powered by Wild Tangent HP Quick Play, HPCTO5 Rs 50,000-80,000 Processor Centrino - Intel Core 2 Duo Processor T8100 (2.10 GHz) (Intel 965PM Express Chipset / 3MB L2 Cache / 800 MHz FSB) Memory 3 GB PC2-5300 DDR2 (667 MHz). Hard Drive 500GB (2 x 250) SATA @ 5400 RPM Display 17.0" Widescreen (WXGA+) with Bright View Technology Multimedia Drive Blu-ray Super Multi 8X DVDRW w/Double Layer. Video Graphics NVIDIA GeForce 9600M GS w/ Webcam. Digital Media
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5-in-1 media card reader. Communication Intel Wireless Wifi Link 5100 Network Connection. Keyboard Full-Size. Pointing Device Touchpad with dedicated vertical & horizontal scroll pad. Dimensions 15.59" (W) x 11.22" (D) x 1.31" (min H)/1.66" (max H). Pc Card Slots Express Card/54 Slot External Ports Expansion port 3 connector, IEEE 1394 Firewire, HDMI 1.3 connector Four USB (Fourth shared with eSata port), Headphones out Microphone in RJ-45 (LAN) VGA port. Sound Integrated Altec Lansing stereo speakers (triple bass subwoofer) Power Standard Lithium-Ion battery Operating System Windows Vista Home Premium (32 bit) Software Fingerprint Reader /Integrated Web Cam & Microphones, Next Generation - Express Card/54 Slot / HDMI Port, HP Quick Play, HP Mobile Express Card Remote Control HP Photo smart Premier, Norton Antivirus (60 days live update) MS Works 8.5, Acrobat Reader 8.0, Muvee Auto producer, Cyberlink DVD Suite, HP Games
Place is 3rd determinant of marketing mix. Place is associated with channels of distributions that acts as a means of making the product available to consumers. Distribution involves various decisions making process such as market coverage, channel member selection, logistics and level of service. Below are two distribution channels which HP is using currently.
HP Distribution Channel
HP Distribution (Direct)
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Marketplace The world of commercial activities where goods and services are bought and sold; “without competition there would be no market they were driven from the marketplace.”
Data representing distribution of HP Laptops globally.
COUNTRY WHERE HP PRODUCTS ARE EXISTED COUNTRY WHERE HP PRODUCTS WIIL EMERGING.
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Data representing distribution of HP Laptops in India.
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4. Promotion It provides immediate incentive to buy. Promotions hardly ever, if they do, create a long term impact. They are vehicles for improving immediate sale or enticing new customers to try the company’s product. They are like quick fix solution to sales. Most often, they are used to liquidate excess inventories, achieve quick sales to improve cash liquidity of the company. Promotion Includes • Sales promotion • Advertising • Sales force • Public relation • Direct marketing Sales Promotions Activities to generate immediate sales responses from customers within a defined time period. Sales Promotion is a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumer or the trade. Recently HP came up with various Promotional Offers.
➢ Offering Tata photon+ with HP pavilion Notebook PC and on selected Compaq Notebook PC is one of the Promotion strategy used by HP in recent time so that immediate response can be generated for HP Notebook PC and Compaq Notebook PC.
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➢ Student’s Offers To attract specific target audience like MBA Students, IT Students, Post Graduate Students HP has came up with offers giving various prices • MotoRokR • Philips Video Music Player In addition to the assured gifts mentioned above, a student can participate in a weekly lucky draw by submitting HP Slogan Contest. Every week, 2 winners get a trip to PARIS.
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Advertising The Computer Is Personal Again The Computer Is Personal Again was Hewlett-Packard's PSG campaign slogan that was brought up in May 2006. The campaign was designed to bring back the fact that the PC (Personal Computer) is a personal product. The campaign utilized • Viral Marketing •
Its own web site www.hp.com/personal.
Some of the ads featured well-known personalities – Sareena Williams, Pharrell, Mark Burnett, Mark Cuban, Jay-Zand, Shaun White. Rather than show a bunch of talking heads, each advertisement showed a neck-down view in which the endorser, aided greatly by graphics, visually showed how they used HP products. All these personalities weren't paid millions of dollars but instead were brought a deal with HP to sponsor their or a selected charity group.
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➢ Computer is personal again
➢ HP’s Advertisements featuring Jay-Zand, Pharrel.
➢ HP also sponsored some events like ‘Blog the Talk’, ‘Be Part of HP Predictions for the future’ which is a part of promotion of its products.
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Sponsorships Sponsorship is a part of promotions. From sponsorship HP makes its presence feel in market. HP has much sponsorship. One well known sponsorship is of ➢ Walt Disney World's Epcot Park's Mission: SPACE. Thanks to HP and Disney, nearly 9 million visitors take a virtual trip into outer space each year. HP technology powers Mission: SPACE, a Disney attraction at Epcot in Orlando, Florida that launches up to 1,800 riders an hour on a simulated journey to Mars. HP technology helps adults and kids alike lift off and lives out their dreams of adventure
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➢ From 1995 to 1999 they were the shirt sponsor of English Premier League club Tottenham Hotspur. ➢ They also sponsored the BMW Williams Formula 1 team. ➢ Hewlett-Packard also has the naming rights arrangement for the HP Pavilion at San Jose, home of the San Jose Sharks NHL hockey team. ➢ HP celebrates filmmaking by sponsoring the top two film events in the world — Cannes Film Festival and Sundance Film Festival.
Segmentation, Targeting and Positioning Segmentation of Hp Pavilion Notebooks A few years ago, notebook computers -- lightweight, portable PCs that can easily fit inside a bag or briefcase -- were the preserve of the elite in India, used only by corporate executives, the super rich and super geeks. They accounted for a very small fraction of total personal computer sales in the country. But the picture has been changing rapidly, and in just a few years one out of every two PCs sold in India is expected to be a notebook. The rise of the notebook as a primary computing device may seem remarkable in a country where PC penetration is just 2% to 3% and the total installed base of PCs is estimated at only 28 million units. "The notebook, despite the advantage of offering mobility, has long played second fiddle to the much larger and more established desktop market in India," says Rajeev Grover, director of the personal systems group at Hewlett Packard (HP) India. HP is the largest player in the country's notebook market, with over 35% market share in unit terms. "It was seen as a niche factor and not meant for the burgeoning mass market. But now, it is on the threshold of a mobile-phone-like revolution in India."According to Sumanta Mukherjee, PC market analyst at research firm IDC India: "The notebook story in India is clearly one of phenomenal growth." The numbers bear this out. According to IDC, in calendar years 2005, 2006 and 2007, notebooks grew over the previous year at respective rates of 148%, 108% and 81%. Between January and September of 2008, notebook shipments grew by 54%. As a percentage of total PC shipments (desktops and notebooks) in 2004, notebooks accounted for a mere 5.5%. In the first nine months of 2008, notebooks, at 1.87 million units, accounted for almost 30% of total PC sales of 6.42million units. Even as notebook sales have flourished, desktops have experienced a slowdown. According to IDC, desktop sales growth dropped from 19% in 2005 to 7% in 2007. For the January to September period of 2008, shipments fell by 5.4%. "The growth in the PC market in India is being driven by notebooks, and with notebooks continuing to show robust growth on a larger base, it is clear that their story is still strong," says Mukherjee. "We expect that by 2012 the split between notebooks and desktops will be equal." Vinnie Mehta, executive director of the Manufacturers' Association for Information Technology, agrees that the market is transforming. He stressed that notebook sales had driven India's PC market during the April to June quarter. "With sales crossing 610,000 units
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in the first quarter of this fiscal year, notebooks account for close to a third [33%] of the total PC market in the country, up from less than 3% four years ago. With shifting consumer preference in favor of notebooks over the desktop, this proportion will only get larger with time." Driven by Price "The explosive growth of notebooks," says Amar Babu, managing director of Lenovo India, "is a great example of what can happen when there is the right technology that meets specific customer needs at the right price point." Affordability is certainly a key reason that notebooks are taking off. According to IDC, over the last few years notebook prices in India have been dropping by about 10% a year, primarily because of technological advancements, changes in the customs duty structure and growing volumes. Prices have not dropped at the same rate in the more mature desktop market, so the price difference between a desktop and a notebook has been reduced substantially. Using rough estimates, industry players point out that four to five years ago, while a notebook was priced around US$2,000, a desktop was about half that. Today, notebooks are available for around US$500, desktops for around US$400. Price by itself is no longer a major deterrent for someone looking to buy a notebook. The growth in the telecom ecosystem and recent advancements in wireless connectivity have played an equally important role in driving notebook adoption. "Increasing globalization has led to a more competitive landscape, and the norms of productivity therefore are changing rapidly," Garde says. "Both organizations as well as individuals in India are realizing that mobility and connectivity are a very potent combination when it comes to increasing productivity. A whole new usage model is being driven by this." The model taking hold in large enterprises is one of notebooks no longer being limited to top management; instead, they are percolating down the ranks to middle managers and sales teams to enable a faster information flow and improved decision-making. Not only has the corporate world embraced the notebook: Other segments driving the market include education, small and medium businesses, and consumers. For instance, notebooks have ushered in a new way of delivering education in areas such as engineering and management, and many educational institutions factor the price of a notebook into their fee structure. For consumers, notebooks are fast becoming a lifestyle product. According to IDC, in 2006 and 2007 the consumer notebook segment grew at 261% and 248%, respectively. In 2008, it is estimated to have grown at 95% over the previous year. "In most mature markets, because of the high penetration of PCs, most people start off with a desktop and then get a notebook as their second PC or as a replacement," . In India, a lot of people are leapfrogging to buying a notebook itself as their first PC as India is a very price-sensitive and value-conscious market, and notebooks are satisfying both these needs for first-time buyers." The entry of new user categories has redefined the notebook market. Vendors have introduced different products for different target segments. HP, for instance, has its HP-Compaq portfolio for commercial users and HP Pavilion and Compaq Presario for individuals. Dell has the E-series for corporate customers, Vostro for small and medium businesses, and the XPS, Studio and Inspiron for consumers. Lenovo has the Think Pad for corporate users and the Idea for
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consumers. Acer has the Aspire brand for consumers and the Extensa and Travelmate for the commercial segment. Target Market for Hp Pavilion Notebooks One may argue that these target-specific products are part of the vendors' global strategies and are not specific to India. But the very fact that vendors are looking at segmentation in a market where PC penetration remains low is a clear indication of the potential they see. There are other indicators. India was the first country outside of China where Lenovo forayed into the consumer space, introducing its products to that market in 2006. HP's global re-launch of its Compaq brand in 2007 was held in Mumbai. HP is now introducing its "Digital Clutch" (the notebook that HP has designed in collaboration with fashion designer Vivienne Tam) and targeting it specifically to women. With consumers becoming a larger piece of the pie and the notebook becoming more of a lifestyle product, features such as better sound quality, screen size options, different colors and different finishes are coming into play. "Earlier, all the innovation was around making the notebook more robust and more secure for the corporate customer," says HP's Grover. "Now, the innovations are around providing different benefits to the different user groups. It is very important that we fulfill both the spelled-out as well as the unspelled-out needs of the different segments. For instance, with the notebook transforming into a lifestyle product, women clearly have different expectations [in terms] of style and colors." Meanwhile, with the universe of notebook buyers and users growing beyond the metros to the smaller cities and towns, vendors are getting closer to customers. In addition to increasing their reach through multi-brand outlets, vendors are increasing their numbers of exclusive stores across the country. HP has doubled its stores to 180 in the last three years. Acer has more than 100 exclusive stores and Lenovo has 157. Just a few months ago, Dell opened its first two exclusive retail showrooms. Vendors are also wooing customers through large-format retail stores such as Croma, Next, e-Zone, Staples and Metro. "The buying experience of a notebook has become an important parameter in the purchase decision along with product features, brand and price," says S. Rajendran, chief marketing officer at Acer India. "The growth of organized retail in India will also give an added stimulus to notebook buying." Positioning Of Hp Pavilion notebooks Positioning refers to consumer’s perception about our product. HP already has strong hold in laptop market globally. HP has market share of 32% in overall laptop market and holds dominant market share of 51% in consumer notebook segment. Netbooks Stake Their Claim HP also has a potential in the Indian market for Netbooks -- small, lightweight notebooks suitable for accessing web-based applications. Company cites figures from market research firm Display Search, which show that in July-September 2008, Netbooks accounted for 14% of total global notebook shipments, with Acer emerging as the leader with a share of
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almost 40%. "HP expects Netbooks to be popular in India also, especially among small and medium businesses, and also as a second computing device in upper-middle class homes." Rajendran predicts that India's netbook market will be around 300,000 units this fiscal year. Ravi Bapna, associate professor of information systems at the University of Minnesota's Carlson School of Management and executive director of the Centre for Information Technology and the Networked Economy at the Hyderabad-based Indian School of Business, is optimistic about the role of Netbooks in India. "The netbook could have potentially larger penetration ability as it could become an aspiration device for the lower-middle class," he says. "However, a stronger ecosystem of applications and services innovation is needed for the full potential to be realized. Can it really solve the day-to-day pain points felt by this segment of society? At present, the answer would be no, but that does not mean future applications will not." Industry players largely expect the market to grow further once 3G wireless technologies are introduced in the country. "[3G] will impact every user segment, [whether] commercial or consumer, and will definitely be a trigger for further growth. Wi-Fi drove a certain level of growth in the usage of notebooks, despite not being pervasive wireless. 3G will certainly drive a fresh wave of growth in this space." Bapna, however, sees it differently. "It depends on the competing technologies that can provide high-speed mobile Internet," he says. "I doubt 3G technologies are going to have a significant acceleration effect on notebook adoption. In contrast, my prediction is that the growth will occur in high-end mobile handsets [and] iPhone-type devices. Their quality and the functionalities provided are bound to keep improving as the bandwidth constraints get eliminated." Meanwhile, apart from concerns about the global economic slowdown's potential effect on the growth of India's notebook market, one long-term constraint may be language. "A large part of the Indian market is vernacular, but the entire ecosystem of the personal computer is very Englishoriented," HP's Grover notes. "For further growth, we need to remove this language barrier. In order to do this, different players like the government, device manufacturers, Internet service providers, content providers and others who are all working currently in silos need to work together to develop the ecosystem."
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Competency Ladder: Hewlett-Packard
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SWOT Analysis Strengths: 1. 2. 3. 4. 5.
HP is a Brand Name Different no of Products Available throughout the world Proper pricing strategy reaching the low and mid segment people Making Laptops as per consumer needs.
Weakness: 1. Product being sold through HP partners hence dependency increases. 2. After sales service outsourced. Opportunity: 1. 2. 3. 4. 5.
Estimated annual growth of 40%. Increased sales New products launched in the market World leader in computer printing. Introducing new technologies in the market.
Threats: 1. Dell computers the closest rival in the market with 33 % share 2. Competitors launching products at cheaper rates 3. Consumers threatening to leave HP and move to some other company due to poor after sales service 4. Branding of product not adequate leading to low popularity.
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Age: Occupation: Place of residence: Product: Hp Pavilion Laptop 1) Do you use a laptop? • Yes • No
1) Which product do you prefer to use from these? i) Hp-Compaq ii) Acer iii) Lenevo iv) Dell v) Sony
2) What is the laptop basically used for a) Home & home office b) Small & medium Business c) Large Business or government
3) What features do you look for specifically in a laptop? a) Speed b) Portability c) Battery life d) Reliability e) After sales service
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HP SURVEY 1 Do you use a laptop?
Which product do you prefer to use from these?
What is the laptop basically used for?
What features do you look for when buying a laptop?
Have you seen a HP advertisement before?
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Bibliography • Marketing Management: Philip Kotler • www.hp.com • www.google.com • www.shopping.hp.com
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Conclusion This project helped us to understand the core areas and key aspects that a marketer has to keep in mind while marketing his product. This project gives an overall representation of our brand and why it is better over other competitors in the market. Its one in a hundred that we find companies like HP and products like notebooks which consistently aims to improve performance and deliver quality products to the consumers. We also realized that HP in spite of tremendous competitors has found alternate ways of maintaining their price and quality and not hurting the economic interest of consumers. HP believes in being the best and for that it continuously focuses on innovation and creativity.