Market Research On Brand Awareness For Branded P.C
Market Research On Brand Awareness For Branded P.C
Market Research On Brand Awareness For Branded P.C
BRANDED P.C
SUMITTED BY:-
SHRIKANT S PANIKAR (Roll No # 46)
We hereby declare that the project titled “To Determine the Brand Awareness for
Branded P.C” is an original piece of research work carried out by us under the guidance and
supervision of Mr. Pankaj Nandurkar. The information has been collected from genuine &
authentic sources. The work has been submitted in partial fulfillment of the requirement of
PGDM (MRKT).
Place: Signature:
SIDHARTH VYAS
SUNIL KUMAR
Acknowledgement
We would like to acknowledge all the help and guidelines received by our Respected and
Well informed Marketing Faculty at SIBAR (Sinhgad Institute of Business Management and
Research) as this Marketing Research would not have been possible without they expert
guidance.
In short we would like to thank the following for all their Efforts and Support:
Brand awareness can be measured by showing a consumer the brand and asking whether or
not they knew of it beforehand. However, in common market research practice a variety of
recognition and recall measures of brand awareness are employed all of which test the brand
name's association to a product category cue, this came about because most market research
in the 20th Century was conducted by post or telephone, actually showing the brand to
consumers usually required more expensive face-to-face interviews (until web-based
interviews became possible). This has led many textbooks to conceptualize brand awareness
simply as its measures, that is, knowledge that the brand is a member of a particular product
category. Brand awareness consists of both brand recognition, which is the ability of
consumers to confirm that they have previously been exposed to your brand, and brand
recall, which reflects the ability of consumers to name your brand when given the product
category, category need, or some other similar cue.
Aided awareness occurs when you show or read a list of brands and the person expresses
familiarity with your brand only after they hear or see it.
Top-of-mind awareness occurs when you ask a person to name brands within a product
category and your brand pops up first on the list.
Primary objective: To research whether Brand awareness in Branded PC’s affects the sales or
helps the Retailer in making a sale.
2. Objectives.
3. Research Methodology.
4. Company Profile.
5. Data Presentation.
6. Conclusions
8. Recommendations.
9. Bibliography
10. Annexure
1. Introduction
The research Project is on the topic of “Brand Awareness of Branded PC’s (Personal
Computers)”.
The definition of brand: A brand is an identifiable entity that makes specific promises of
value.
In its simplest form, a brand is nothing more and nothing less than the promises of value you
or your product makes. These promises can be implied or explicitly stated, but none-the-less,
value of some type is promised.
Brand awareness is when people recognize your brand as yours. This does not necessarily
mean they prefer your brand (brand preference), attach a high value to, or associate any
superior attributes to your brand, it just means they recognize your brand and can identify it
under different conditions.
Brand awareness consists of both brand recognition, which is the ability of consumers to
confirm that they have previously been exposed to your brand, and brand recall, which
reflects the ability of consumers to name your brand when given the product category,
category need, or some other similar cue.
Aided awareness occurs when you show or read a list of brands and the person expresses
familiarity with your brand only after they hear or see it.
Top-of-mind awareness occurs when you ask a person to name brands within a product
category and your brand pops up first on the list.
When you think about facial tissue, gelatins, and adhesive bandages, do the brands
Kleenex®, Jell-O®, and Band-Aid® come to mind? These brands enjoy strong top-of-mind
awareness in their respective categories.
The Purpose of this research to evaluate the amount of Brand Awareness enjoyed by
different brands of PC’s in the market.
Brands identify the source of market of a product and allow consumers-either individuals or
organizations-to assign responsibility to a particular manufacturer or distributor. Consumers may
evaluate the identical product differently depending on how it is branded. Consumers learn about
brands through past experiences with the product and its marketing program. They find out which
brands satisfy their needs and which ones do not. As consumers’ lives become more complicated,
rushed,and time-starved,the ability of a brand to simplify decisions making and reduce risk is
invaluable.
Brands also perform valuable functions for firms. First, they simplify product handling or tracing.
Brands help to organize inventory and accounting records. A brand also offers the firm legal
protection for unique features or aspects of the product. The brand name can be protected through
registered trademarks; manufacturing processes can be protected through patents; and packaging can
be protected through copyrights and designs.These intellectual property rights ensure that the firm can
safely invest in the brand and reap the benefits of a valuable asset.
Brands can signal a certain level of quality so that satisfied buyers can easily choose the product
again. Brand loyalty provides predictability and security of demand for the firm and creates barriers to
entry that make it difficult for other firms to enter the market. Loyalty also can translate into a
willingness to pay a higher price—often 20 to 25 percent more. Although competitors may easily
duplicate manufacturing processes and product designs, they cannot easily match lasting impressions
in the minds of individuals and organizations from years of marketing activity and product
experience. In this sense, branding can be seen as a powerful means to secure a competitive
advantage.
To firms, brands thus represent enormously valuable pieces of legal property that can influence
consumer behavior, be sought and sold, provide the security of sustained future revenues to their
owner. Large earning multiple have been paid for brands in mergers or acquisitions, starting with the
boom years of the mid-1980s. The price premium is often justified on the basis of assumptions of the
extra profits that could be extracted and sustained from the brands, as well as the tremendous
difficulty and expense of creating similar brands from scratch. Wall Street believes that strong brands
result in better earnings and profit performance for firms, which, in turn, creates greater value for
shareholders. Much of the recent interest in brands by senior management has been result of these
bottom-line financial considerations. “Marketing Memo: The brand Report card” lists 10 key
characteristics based on a review of the world’s strongest brands.
Scope of study
Is to check that does Brand Awareness among Branded PC’s affects the sales or creates a
specific image about the brand which helps the Brand in gaining an advantage over the
competitors. As the Research Methodology used for this research would be Personal
Interview or Telephonic Interviews of the Targeted Masses using a set of questionnaires
designed to get the response which would help in achieving the objective of the research. The
Limitations faced in this research would be that it would be constituted on the data gathered
from an already decided Target audience, which would be very small (namely 30-50
consumers). Hence we would not be able to come to a strong recommendation as the number
of the responses would be limited. However, on the other hand the data gathered would be
very accurate and not vague, which would help us come to conclusion which in turn will help
us to reach the objective of this research.
The importance of this market research would be, that it will help us to determine which
computer Brands enjoy different benefits due to their Brand Awareness in the mind of the
consumers. Our research work will help us define how does brand awareness helps the
customer to pick or choose that specific brand and get a clear picture as in is Brand
Awareness really important part of the marketing strategy or is it just a burden on the
marketing system.
Brand awareness is an important way of promoting commodity-related products. This is because for
these products, there are very few factors that differentiate one product from its competitors.
Therefore, the product that maintains the highest brand awareness compared to its competitors will
usually get the most sales, our research findings will help us in determining those factors.
We would also be able to gauge which brand enjoys the top spot in “Top-of-the-Mind
Awareness” among Branded PC’s.
2. Objectives
Primary objective: To research whether Brand awareness in Branded PC’s affects the sales or
helps the Retailer in making a sale.
2. Effect on sale.
1. To check which Brand enjoys the top spot in ‘Top-of-the-mind’ Brand Awareness.
DATA SOURCES- The researcher gather secondary data, primary data, or both.
Secondary Data are data that were collected for another purpose and already exists
Somewhere.
Primary Data are data freshly gathered for a specific purpose or for a specific
esearch
Project.
Researchers usually start their investigation by examining some of the rich
variety of secondary data to see whether the problem can be partly or wholly solved
without collecting costly primary data. Secondary data provide a starting point and
offer the advantages of lower cost and ready availability. When the needed data do not
exists or are dated, inaccurate, or unreliable, the researcher will have to collect primary
data. Most marketing research projects involve some primary data collection. The
Normal procedure is to interview some people individually or in group.
RESEARCH APPROACHES- Primary data can be collected in 5 ways
RESEARCH INSTRUMENTS
SAMPLING PLAN
1. Sampling unit: Who is to be surveyed? The marketing researcher must define the target
population that will be sampled. Once the sampling unit is determined, a sampling
must be developed so that everyone in the target population has an equal or known
chance Of being sampled.
2. Sample size: How many people should be surveyed? Large samples give more reliable
result than small samples. However, it is not necessary to sample the entire target
population or even a substantial portion to achieve reliable results. Samples of less
than I % of a population can often provide good reliability, with a credible sampling
procedure.
Mail Questionnaire: The mail questionnaire is the best way to reach people who would
not give personal interviews or whose responses might be biased or distorted by the
interviewers, Mail questionnaires require simple and clearly worded
questions. Unfortunately: the response rate is usually low or slow
Telephone Interview: It is the best method for gathering information quickly. The
Interviewer is also able to clarify questions if respondents do not understand them.
The
Response rate is typically higher than in the case of mailed questionnaires. The main
drawback is that the interviews have to be short and not too personal.
Personal interview: It is the most versatile method. The interviewer can ask more questions
and record additional observations about the respondents, such as dress and body
language. At the same time, personal interviewing is the most expensive method and
requires most more administrative planning and supervision than the other three. It is
also subject to interviewer bias or distortion.
Online interview: There are so many ways to use net to do research. A company can
include
a questionnaire on its website and offer an incentive to answer the questionnaire, or it
can place a banner on some frequently visited site such as yahoo, inviting people to
answer some questions and possibly win a prize.
The data collection phase of marketing research is generally the most expensive and the
most prone to error. In the case of surveys, four major problem arise. Some respondents
will not be at home and must be contacted again . Other respondents will refuse to
cooperate. Still others will give biased or dishonest answers. Finally some interviewers
will be biased or dishonest. Getting the right respondent is critical.
STEP 4. Analyze the Information
The next to last step in the process is to extract finding from the collected data. The
researcher tabulates the data and develop frequency distribution. Averages and measures
of dispersion are computed for the major variables. The researcher will also apply some
advanced statistical techniques and decision models in the hope of discovering additional
findings.
As the last step, the researcher presents the findings. The researcher should present
Finding that are relevant to the major marketing decisions facing management.
In our research we would be using the Research Approach of ‘Survey Research’ with the
help of the Research instrument in the form of ‘Questionnaires’ and the Contact Method
used will be ‘Personal Interview’.
4. Company Profiles
Company Profiles for some of the leading companies in the field of Branded PC’s
Type Public
(NASDAQ: DELL) & (SEHK: 4331)
Founded Austin, Texas (November 4, 1984) (as "PC's Limited"). IPO on June 22, 1988, at
$8.50/share: approximately 3 years and 7 months after founding Founder Michael S. Dell
Subsidiaries Alienware
ASAP Software
Equal Logic
Website Dell.com
Contd….
The multinational technology company Dell, Inc. develops, manufactures, sells, and supports
personal computers and other computer-related products. Based in Round Rock, Texas, Dell
employs more than 88,000 people worldwide.
Dell grew during the 1980s and 1990s to become (for a time) the largest seller of PCs and
servers. As of 2008 it held the second spot in computer-sales within the industry behind the
Hewlett-Packard Company. The company currently sells personal computers, servers, data
storage devices, network switches, software, computer peripherals and televisions.
In 2006, Fortune magazine ranked Dell as the 25th-largest company in the Fortune 500 list,
8th on its annual "Top 20" list of the most-admired companies in the United States. In 2007
Dell ranked 34th and 8th respectively on the equivalent lists for the year. A 2006 publication
identified Dell as one of 38 high-performance companies in the S&P 500 which had
consistently out-performed the market over the previous 15 years
History
While a student at the University of Texas at Austin in 1984, Michael Dell founded the
company as PC's Limited with capital of $1000. Operating from Michael Dell's off-campus
dorm-room at Dobie Center [1], the startup aimed to sell IBM PC-compatible computers built
from stock components. Michael Dell started trading in the belief that by selling personal
computer-systems directly to customers, PC's Limited could better understand customers'
needs and provide the most effective computing solutions to meet those needs. Michael Dell
dropped out of school in order to focus full-time on his fledgling business, after getting about
$300,000 in expansion-capital from his family.
In 1985, the company produced the first computer of its own design — the "Turbo PC", sold
for US$795 — which contained an Intel 8088-compatible processor running at a speed of
8 MHz. PC's Limited advertised the systems in national computer-magazines for sale directly
to consumers, and custom-assembled each ordered unit according to a selection of options.
This offered buyer’s prices lower than those of retail brands, but with greater convenience
than assembling the components themselves. Although not the first company to use this
model, PC's Limited became one of the first to succeed with it. The company grossed more
than $73 million in its first year.
The company changed its name to "Dell Computer Corporation" in 1988. In 1989, Dell
Computer set up its first on-site-service programs in order to compensate for the lack of local
retailers prepared to act as service centers. Also in 1987, the company set up its first
operations in the United Kingdom; eleven more international operations followed within the
next four years. In June 1988, Dell's market capitalization grew by $30 million to $80 million
from its initial public offering of 3.5 million shares at $8.50 a share. In 1990, Dell Computer
Corporation tried selling its products indirectly through warehouse clubs and computer
superstores, but met with little success, and the company re-focused on its more successful
direct-to-consumer sales model. In 1992, Fortune magazine included Dell Computer
Corporation in its list of the world's 500 largest companies.
In 1999, Dell overtook Compaq to become the largest seller of personal computers in the
United States of America with $25 billion in revenue reported in January 2000.
In 2002, Dell attempted to expand by tapping into the multimedia and home-entertainment
markets with the introduction of televisions, handhelds, and digital audio players. Dell has
also produced Dell-brand printers for home and small-office use.
In 2003, at the annual company meeting, the stockholders approved changing the company
name to "Dell Inc." to recognize the company's expansion beyond computers.
In 2004, the company announced that it would build a new assembly-plant near Winston-
Salem, North Carolina; the city and county provided Dell with $37.2 million in incentive
packages; the state provided approximately $250 million in incentives and tax breaks. In July,
Michael Dell stepped aside as Chief Executive Officer while retaining his position as
Chairman of the Board. Kevin Rollins, who had held a number of executive posts at Dell,
became the new CEO.
In 2005, the share of sales coming from international markets increased, as revealed in the
company's press releases for the first two quarters of its fiscal 2005 year. In February 2005
Dell appeared in first place in a ranking of the "Most Admired Companies" published by
Fortune magazine. In November 2005 Business Week magazine published an article titled
"It's Bad to Worse at Dell" about shortfalls in projected earnings and sales, with a worse-
than-predicted third-quarter financial performance — a bad omen for a company that had
routinely underestimated its earnings. Dell acknowledged that faulty capacitors on the
motherboards of the Optiplex GX270 and GX280 had already cost the company $300
million. The CEO, Kevin Rollins, attributed the bad performance partially to Dell's focus on
low-end PCs.
In 2006, Dell purchased the computer hardware manufacturer Alienware. Dell Inc.'s plan
anticipated Alienware continuing to operate independently under its existing management.
Alienware expected to benefit from Dell's efficient manufacturing system.
On January 31, 2007, Kevin B. Rollins, CEO of the company since 2004, resigned as both
CEO and as a director, and Michael Dell resumed his former role as CEO. Investors and
many shareholders had called for Rollins' resignation because of poor company performance.
At the same time, the company announced that, for the fourth time in five quarters, earnings
would fail to reach consensus analyst-estimates.
In February 2007 Dell became the subject of formal investigations by the US SEC and the
United States Attorney for the Southern District of New York. The company has not formally
filed financial reports for either the third or fourth fiscal quarter of 2006, and several class-
action lawsuits have arisen in the wake of its recent financial performance. Dell Inc's lack of
formal financial disclosure would normally subject the company to de-listing from the
NASDAQ, but the exchange has granted Dell a waiver, allowing the stock to trade normally.
On March 1, 2007, the company issued a preliminary quarterly earnings report which showed
gross sales of $14.4 billion, down 5% year-over-year, and net income of $687 million (30
cents per share), down 33%. Net earnings would have declined even more if not for the
effects of eliminated employee bonuses, which accounted for six cents per share. NASDAQ
extended the company's deadline for filing financials to May 4.
Personnel
On January 31, 2007 Michael Dell returned to the company as CEO. As chairman of the
board, Mr. Dell had significant input into the company's operations during Rollins' years as
CEO. However with the return of Michael Dell as CEO, the company saw immediate changes
in operations, the exodus of many senior vice-presidents and new blood brought in from
outside the company.
• Michael Dell, CEO and co-Chairman of the Board (previously Chairman of the Board)
• Don Carty, CFO and co-Chairman of the Board (previously Board member)
• Michael R. Cannon, former CEO of Solectron, as President, Global Operations[39]
• Ron Garriques, who formerly headed Motorola's mobile phone unit, as President, Global
Consumer Group[40]
• Stephen F. Schuckenbrock, Senior Vice President, Global Services[38]
Mr. Dell announced a number of initiatives and plans (part of the "Dell 2.0" initiative) to
improve the company's financial performance. These include:
On April 23, 2008, Dell announced the closure of one of its biggest Canadian call-centers in
Kanata, Ontario — terminating approximately 1100 employees, with 500 of those
redundancies effective on the spot, and with the official closure of the center scheduled for
the summer. (The call-center had opened in 2006 after the city of Ottawa won a bid to host it.
Less then a year later, Dell Inc planned to double its workforce to nearly 3,000 workers and
to add a new building. Journalists cited a high Canadian dollar and suggested high pay-rates
as among the reasons for the cuts. The company had also announced the shutdown of its
Edmonton, Alberta office, losing 900 jobs. In total, Dell announced the ending of about 8,800
jobs in 2007-2008 — 10% of its workforce.
Products
• Business Class: including OptiPlex, Latitude, and Precision, where the company's advertising
emphasizes long life-cycles, reliability and serviceability:
• Peripherals: Dell has also diversified its product line to include peripheral products such as
USB keydrives, LCD televisions, and printers.
• Dell monitors LCD TVs, plasma TVs and projectors for HDTV and monitors
• Dell On Call - extended support services (mainly for the removal of spyware
and computer viruses)
• Dell Support Center - extended support services (similar to "Dell On Call")
for customers in the EMEA. The Solution Centers also support hardware for
customers outside of warranty.
Dell also offers Red Hat and SUSE Linux for servers; as well as "bare-bones" computers
without pre-installed software (available on n Series by default and by request on XPS and
Inspiron systems) at significantly lower prices. Due to Dell's licensing contract with
Microsoft, Dell allegedly[citation needed] cannot offer those systems on their website and customers
have to request them explicitly. (Dell does offer those systems on their web site at
http://www.dell.com/content/products/features.aspx/precn_n?
c=us&cs=04&l=en&s=bsd&redirect=1 ). Dell has to ship such systems with a FreeDOS disk
included in the box and must issue a so-called "Windows refund" or a merchandise credit
after sale of the system at the "regular" retail price.
• Discontinued products/brands:
Commercial aspects
Traditional business-model
Traditionally, Dell has sold all its products — whether to end-use consumers or to corporate
customers — using a direct-sales model via the Internet and the telephone-network. Dell
maintains a negative cash conversion cycle (CCC) through use of this model: in other words,
Dell Inc. receives payment for the products before it has to pay for the materials.
Dell also practices just-in-time (JIT) inventory-management, profiting from its attendant
benefits. Dell's JIT approach utilizes the "pull" system by building computers only after
customers place orders and by requesting materials from suppliers as needed. In this way Dell
mirrors Toyota by following Toyota Way Principle #3 ("Use 'pull' systems to avoid
overproduction"). Since the days of the original dominance of telephone-ordering, the
Internet has significantly enhanced Dell’s business model, making it easier for customers and
potential customers to contact Dell directly.
This model also has enabled Dell to provide very customizable systems at an affordable rate,
since Dell's manufacturing arm builds specifically for each customer. Other computer-
manufacturers, including Gateway and Hewlett-Packard, have attempted to adapt similar
business-models, but due to timing and/or retail-channel pressures they have not achieved the
same results as Dell.
I say: They have a negative 45 days CCC, which means that their sales are converted in hard
cash 45 days BEFORE Dell needs to pay for purchase invoices to vendors.
Dell has also sold at retail, as explained in the "Marketing" section of this article.
Organization
A board of directors of nine people runs the company. Michael Dell, the founder of the
company, serves on the board. Other board members include Don Carty, William Gray, Judy
Lewent, Klaus Luft, Alex Mandl, Michael A. Miles, and Sam Nunn. Shareholders elect the
nine board members at meetings, and those board members who do not get a majority of
votes must submit a resignation to the board, which will subsequently choose whether or not
to accept the resignation. The board of directors usually sets up five committees which have
oversight over specific matters. These committees include the Audit Committee, which
handles accounting issues, including auditing and reporting; the Compensation Committee,
which approves compensation for the CEO and other employees of the company; the Finance
Committee, which handles financial matters such as proposed mergers and acquisitions; the
Governance and Nominating Committee, which handles various corporate matters (including
nomination of the board); and the Antitrust Compliance Committee, which attempts to
prevent company practices from violating antitrust laws.
The corporate structure and management of Dell extends beyond the board of directors. The
Dell Global Executive Management Committee sets the strategic direction for how the
corporation keeps customers at the forefront, from designing and manufacturing computer
systems to offering products that meet customers' requirements to providing sufficient service
and support. Dell has regional senior vice presidents for countries other than the United
States, including David Marmonti for EMEA and Stephen J. Felice for Asia/Japan. As of
2007, other officers included Martin Garvin (senior vice president for worldwide
procurement) and Susan E. Sheskey (vice president and chief information officer).
Marketing
Dell advertisements have appeared in several types of media including television, the
Internet, magazines, catalogs and newspapers. Some of Dell Inc's marketing strategies
include lowering prices at all times of the year, offering free bonus products (such as Dell
printers), and offering free shipping in order to encourage more sales and to stave off
competitors. In 2006, Dell cut its prices in an effort to maintain its 19.2% market share.
However, this also cut profit-margins by more than half, from 8.7 to 4.3 percent. To maintain
its low prices, Dell continues to accept most purchases of its products via the Internet and
through the telephone network, and to move its customer-care division to India and El
Salvador.
A popular United States television and print ad campaign in the early 2000s featured the actor
Ben Curtis playing the part of "Steven", a lightly mischievous blond-haired kid who came to
the assistance of bereft computer purchasers. Each television advertisement usually ended
with Steven's catch-phrase: "Dude, you're gettin' a Dell!"
A Dell advertising campaign for the XPS line of gaming computers featured in print in the
September 2006 issue of Wired Magazine. It used as a tagline the common term in Internet
and gamer slang: "FTW", meaning "For The Win". However, Dell Inc. soon dropped the
campaign.
In the first-person shooter game F.E.A.R. Extraction Point, several computers visible on
desks within the game have recognizable Dell XPS model characteristics, sometimes even
including the Dell logo on the monitors.
In 2007 Dell switched advertising agencies in the US from BBDO to Mother. In July 2007,
Dell released new advertising created by Mother to support the Inspiron and XPS lines. The
ads featured music from the Flaming Lips and Devo who re-formed especially to record the
song in the ad "Work it Out".
Co-founder
David Packard
Headquarters Palo Alto, California, USA
Website www.hp.com
www.hpshopping.com
www.Compaq.com
www.EDS.com
www.voodooPC.com
www.lightscribe.com
HP is a technology company that operates in more than 170 countries around the world. We
explore how technology and services can help people and companies address their problems
and challenges, and realize their possibilities, aspirations and dreams. We apply new thinking
and ideas to create more simple, valuable and trusted experiences with technology,
continuously improving the way our customers live and work.
Management
• Chairman of the Board, CEO, and President: Mark Hurd (March 29, 2005 - current, appointed
Chairman September 22, 2006)
History
"The new Hewlett-Packard 9100A personal computer" is "ready, willing, and able ... to relieve you of
waiting to get on the big computer."
A HP Compaq computer and a Hewlett-Packard Deskjet 5740 printer owned by the Houston
Independent School District
A modern HP Pavilion Laptop
HP has successful lines of printers, scanners, digital cameras, calculators, PDAs, servers,
workstation computers, and computers for home and small business use computers; many of
the computers came from the 2002 merger with Compaq. HP today promotes itself as
supplying not just hardware and software, but also a full range of services to design,
implement and support IT infrastructure.
The three business segments: Enterprise Storage and Servers (ESS), HP Services (HPS), and
HP Software are structured beneath the broader Technology Solutions Group (TSG).
According to HP's 2005 U.S. SEC 10-K filing,[15] HP's Imaging and Printing Group is "the
leading imaging and printing systems provider in the world for printer hardware, printing
supplies and scanning devices, providing solutions across customer segments from individual
consumers to small and medium businesses to large enterprises." This division is currently
headed by Vyomesh Joshi.
Products and technology associated with the Imaging and Printing Group include:
HP's Personal Systems Group claims to be "one of the leading vendors of personal computers
("PCs") in the world based on unit volume shipped and annual revenue."
History
Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne,[9]
to sell the Apple I personal computer kit. They were hand-built by Wozniak [10] [11] and first
shown to the public at the Homebrew Computer Club. [12] The Apple I was sold as a
motherboard (with CPU, RAM, and basic textual-video chips)—less than what is today
considered a complete personal computer.[13] The Apple I went on sale in July 1976 and was
market-priced at US$666.66.
Apple was incorporated January 3, 1977 without Wayne, who sold his share of the company
back to Jobs and Wozniak for $800. Mike Markkula provided essential business expertise and
funding of US$250,000 during the incorporation of Apple.
The Apple II was introduced on April 16, 1977 at the first West Coast Computer Faire. It
differed from its major rivals, the TRS-80 and Commodore PET, because it came with color
graphics and an open architecture. While early models used ordinary cassette tapes as storage
devices, they were superseded by the introduction of a 5 1/4 inch floppy disk drive and
interface, the Disk II.
The Apple II was chosen to be the desktop platform for the first "killer app" of the business
world—the VisiCalc spreadsheet program. VisiCalc created a business market for the Apple
II, and gave home users an additional reason to buy an Apple II—compatibility with the
office. According to Brian Bagnall, Apple exaggerated its sales figures and was a distant third
place to Commodore and Tandy until VisiCalc came along.
By the end of the 1970s, Apple had a staff of computer designers and a production line. The
Apple II was succeeded by the Apple III in May 1980 as the company competed with IBM
and Microsoft in the business and corporate computing market.
Jobs and several Apple employees including Jef Raskin visited Xerox PARC in December
1979 to see the Xerox Alto. Xerox granted Apple engineers three days of access to the PARC
facilities in return for US$1 million in pre-IPO Apple stock. [26] Jobs was immediately
convinced that all future computers would use a GUI, and development of a GUI began for
the Apple Lisa
Headquarters
Apple Inc.'s world corporate headquarters are located in the middle of Silicon Valley, at 1
Infinite Loop, Cupertino, California. This Apple campus has six buildings which total
850,000 sq ft (79,000 m²) and was built in 1993 by Sobrato Development Cos.[111]
In 2006, Apple announced its intention to build a second campus on 50 acres assembled from
various contiguous plots. The new campus, also in Cupertino, will be about one mile (1.6 km)
east of the current campus.[112]
CEOs
Current products
See also: List of products discontinued by Apple Inc.
iPod
iPod Nano
On October 23, 2001, Apple introduced the iPod digital music player. It has evolved to
include various models targeting the needs of different users. The iPod is the market leader in
portable music players by a significant margin, with more than 100 million units shipped as
of April 9, 2007. Apple has partnered with Nike to introduce the Nike+iPod Sports Kit
enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website.
Apple currently sells four variants of the iPod.
• iPod classic, portable media player introduced in 2001, with 120GB capacity.
• iPod nano, portable media player introduced in 2005, available in 8 and 16 GB models.
• iPod shuffle, digital audio player introduced in 2005, available in 1 and 2 GB models.
• iPod touch, portable media player introduced in September 2007, available in 8, 16 and 32
GB models.
iPhone
At the Macworld Conference & Expo in January 2007, Steve Jobs revealed the long
anticipated[79] iPhone, a convergence of an Internet-enabled smartphone and iPod.[80] The
iPhone combines a 2.5G quad band GSM and EDGE cellular phone with features found in
hand held devices, running a scaled-down versions of Apple's Mac OS X, with various Mac
OS X applications such as Safari and Mail. It also includes web-based and Dashboard apps
such as Google Maps and Weather. The iPhone features a 3.5-inch (89 mm) touch screen
display, 4 or 8 GB of memory, Bluetooth, and Wi-Fi (both "b" and "g").[81] The iPhone first
became available on June 29, 2007 for $499 (4 GB) and $599 (8 GB).[82] On June 9, 2008, at
WWDC 2008, Steve Jobs announced that the iPhone 3G would be available on July 11, 2008.
[83]
This version added support for 3G networking and assisted-GPS navigation, among other
things.[84]
Apple TV
At the 2007 Macworld conference, Jobs demonstrated the Apple TV, (previously known as
the iTV), a set-top video device intended to bridge the sale of content from iTunes with high-
definition televisions. The device links up to a user's TV and syncs, either via Wi-Fi or a
wired network, with one computer's iTunes library and streams from an additional four. The
Apple TV incorporates a 40 GB hard drive for storage, includes outputs for HDMI and
component video, and plays video at a maximum resolution of 720p. On May 31, 2007 a
160 GB drive was released alongside the existing 40 GB model and on January 15, 2008 a
software update was released, which allowed media to be purchased directly from the Apple
TV.
Software
Apple develops its own operating system to run on Macs, Mac OS X, the latest version being
Mac OS X v10.5 Leopard. Apple also independently develops computer software titles for its
Mac OS X operating system. Much of the software Apple develops is bundled with its
computers. An example of this is the consumer-oriented iLife software package which
bundles iDVD, iMovie, iPhoto, iTunes, GarageBand, and iWeb. For presentation, page layout
and word processing, iWork is available, which includes Keynote, Pages, and Numbers.
iTunes, QuickTime media player, and Safari web browser are available as free downloads for
both Mac OS X and Windows.
Apple also offers a range of professional software titles. Their range of server software
includes the operating system Mac OS X Server; Apple Remote Desktop, a remote systems
management application; WebObjects, Java Web application server; and Xsan, a Storage
Area Network file system. For the professional creative market, there is Aperture for
professional RAW-format photo processing; Final Cut Studio, a video production suite;
Logic, a comprehensive music toolkit and Shake, an advanced effects composition program.
Apple also offers online services with MobileMe (formerly .Mac) which bundles personal
web pages, email, Groups, iDisk, backup, iSync, and Learning Center online tutorials.
MobileMe is a subscription-based internet suite that capitalizes on the ability to store
personal data on an online server and thereby keep all web-connected devices in sync.
According to surveys by J. D. Power, Apple has the highest brand and repurchase loyalty of
any computer manufacturer. While this brand loyalty is considered unusual for any product,
Apple appears not to have gone out of its way to create it. At one time, Apple evangelists
were actively engaged by the company, but this was after the phenomenon was already firmly
established. Apple evangelist Guy Kawasaki has called the brand fanaticism "something that
was stumbled upon". Apple has, however, supported the continuing existence of a network of
Mac User Groups in most major and many minor centers of population where Mac computers
are available.
Mac users meet at the European Apple Expo and the San Francisco Macworld Conference &
Expo trade shows where Apple introduces new products each year to the industry and public.
Mac developers in turn gather at the annual Apple Worldwide Developers Conference.
Apple Store openings can draw crowds of thousands, with some waiting in line as much as a
day before the opening or flying in from other countries for the event.[98] The New York City
Fifth Avenue "Cube" store had a line as long as half a mile; a few Mac fans took the
opportunity of the setting to propose marriage. The Ginza opening in Tokyo was estimated in
the thousands with a line exceeding eight city blocks.
John Sculley told The Guardian newspaper in 1997: "People talk about technology, but
Apple was a marketing company. It was the marketing company of the decade."
Market research indicates that Apple draws its customer base from an unusually artistic,
creative, and well-educated population, which may explain the platform’s visibility within
certain youthful, avant-garde subcultures.
5.Data Presentation
1. Consumer Survey
2. Retailer Survey
We have attached the actual questionnaire used for the Market Research so that you can get
an idea as in which Questions are being asked, what do we achieve by the response received
and how to interpret the same data to attain our primary and secondary objectives.
After you have gone through the Survey Form attached a Data analysis for the same data
gathered is represented through Graphical Representations wherever required.
The data gathered was from a target audience of 50 consumers and 10 retailers through the
form of Questionnaires by the means of personal interview conducted by our group members.
Data Analysis
From Customer survey Question 1 we were able to derive the following graphical
representation:
%of Consumerswith PC's
Don’t Have,
14, 14%
Have PC's
Don’t Have
Have PC's,
86, 86%
From Customer survey Question 2 we were able to come to the following graphical
representation:
Market share of Branded Vs Assembled.
27%
Branded
Assembled
73%
However the following data was gathered mostly from Professionals and students and hence
the strong inclination was towards assembled PC as the youth mostly chooses to define their
own configuration and specifications.
In Customer survey Question 3 did put forward the need to be represented in any graphical
form hence moving forward….
From Customer survey Question 4th we were able to come to the following graphical
representation:
Types of Media used for Brand Awareness
35
30
TV commercials
25
News paper
20 &Magazines
Outdoor
15 Advertsisement
Reatil Pamphlets
10
Internet
5
Sales Calls
0
1st Qtr
Types of Marketing
communiications
From Customer survey Question 5th we were able to come to the following graphical
representation:
Top 5 Preffered Brands for Branded PC's
120
100
80
%of the
60
Market
40
20
From Customer survey Question 6th we were able to come to the following graphical
representation:
ConsumersPrefrences
100
80
60 Others
40 Brand Popularity
Price
20 Looks
0
Prefrences
Various Prefrences
Customer survey Question 7th and 8th did not put forward any need to be represented in any
graphical form hence moving forward….
From Customer survey Question 9th we were able to come to the following graphical
representation:
Customers Choice in Brands VS Price
29%
BRAND
49% PRICE
BOTH
22%
From Retailer Surveys Question 2nd we were able to come to the following graphical
representation:
Top 5 Selling Brands Of PC's
50
Compaq
40 49 Hp
30 Apple
Dell
20
28 HCL
6 Dell
10
14 3
0 Compaq
6.Conclusion
Now through the research conducted we have gathered the information that Brand Awareness
does impact the customer’s mindset especially the Brands which enjoy the Top-of-the-mind
Awareness.
According to IDC (IDC is the premier global provider of market intelligence, advisory
services, and events for the information technology, telecommunications, and consumer
technology markets. IDC helps IT professionals, business executives, and the investment
community make fact-based decisions on technology purchases and business strategy. More
than 1,000 IDC analysts provide global, regional, and local expertise on technology and
industry opportunities and trends in over 100 countries. For more than 44 years, IDC has
provided strategic insights to help our clients achieve their key business objectives. IDC is a
subsidiary of IDG, the world's leading technology media, research, and Events Company.) ,
in the third quarter of 2004, the sum total of branded PCs has exceeded that of assembled PCs
in the overall PC market, with the former accounting for 50.5 percent and the latter 49.5
percent. However, in the consumer PC market, the assembled PC is still ahead of branded
PCs, although the percentage has dropped from 70 percent to less than 55 percent towards the
end of 2004.
The figure below (Fig 10) shows us the Leading Brands in terms of sales in the Branded PC’s
section. (Primary Objective)
Leading Brands
Units
Marketshare(percent) Units (2004) Percentage of Units Shipped Year-on-Year Growth (percent)
(2003)
HCL 232,169 9.2 4,43,535 13.7 91.04
HP 221,964 8.8 3,84,058 11.9 73.03
IBM 132,582 5.3 1,98,973 6.2 50.8
Source : IDC India
However in the Top-of-the-Mind Awareness category the scene is quite different , the figure
below will illustrate.
Top-of-the-mind Brand Awareness for Branded PC's
100
90
80
70
60
%of the
50
Market
40
30
20
10
0 Proffesionals Students Retailers
IBM 28 7 2
Apple 9.5 46 22
Hp 22 15 39.6
Dell 40.5 32 35.4
The limitations faced by the Branded PC’s in the market are mainly due to many issues
regarding to their price, parts availability, etc. According to IDC, in the third quarter of 2007,
the sum total of branded PCs has exceeded that of assembled PCs in the overall PC market,
with the former accounting for 50.5 percent and the latter 49.5 percent. However, in the
consumer PC market, the assembled PC is still ahead of branded PCs, although the
percentage has dropped from 70 percent to less than 55 percent towards the end of 2007.
Now by the help of our research we were able to find that Brand Awareness in Branded PC’s
does affect the consumer’s choice while making the final decision, which in turn helps the
retails in making the sale, however sometimes it also backfires as the customers tend to drive
towards a brand which does not make a sound profit for the retailer, however the customer is
aware of the image that brand carries with it and hence only chooses that specific brand.
As the No. of interviews carried on for this Market Research was limited to only 50
consumers and 10 Retailers it is difficult to gauge the overall market tendency toward the
particular brands based on their Brand Awareness.
There were also some difficulties in getting the particular information about the sales info
from the Retailers as they were either incompetent in providing the info or they simply
refused to do so. Some retailers even refused to talk to us as they were of the idea that we
were going to reveal their marketing strategies in the market or even worse, share it with their
competitors.
8. Recommendations
As for growth verticals, education and e-governance were the hot segments for PC
penetration and volumes. In an effort to drive volumes, vendors should adopt Brand
Awareness by penetrating the consumer minds through different marketing channels and
also by low-cost pricing policies in these sectors.
HCL Info systems, for instance, has already pushed the price barrier down with the launch of
the HCL Ezeebee Pride at Rs 12,990. Hence they are already enjoying the Top Spot in terms
of sales the Market.
Top 5 Recommendations:
Companies should use multiple marketing channels to create Brand Awareness among
the targeted segments.
Retailers should have through knowledge about the Brands and the products they deal
in(sometimes retailers do not provide complete info about the product which in turn
drives the customer to different brand and that creates a negative impact on the Top-
of-the-mind Brand Awareness towards that product).
Having Live Demos for the particular Brands which do not have enough Brand
Awareness among the masses to make them aware what that Brand offers.
Retailers should be aware which market audiences their Brands target and should
focus all of their marketing strategies on the same.
Companies should try and use low-cost pricing policies as cost-effectively as they
can.
9. Bibliography
Edition: - 12th.