PROJECT REPORT ON MARKETING

STRATEGIES OF HP IN INDIA

SUBMITTED BY:

MAYANK THAKUR
SEMESTER-4

1226MBA19

PROJECT MANAGEMENT
About HP

Hp is a technology company that operates in more than 170 countries

around the world. It explores how technology and services can help people and
companies address their problems and challenges, and realize their possibilities,
aspirations and dreams. It applies new thinking and ideas to create more
simple, valuable and trusted experiences with technology, continuously
improving the way our customers live and work.No other company offers as
complete a technology product portfolio as HP. It provides infrastructure and
business offerings that span from handheld some of the world's most
powerful supercomputer installations. It offersconsumers a wide range of products
and services from digital photography to digital entertainment and from
computing to home printing. This comprehensive portfolio helps us match
the right products, services and solutions to our customer's specific needs.

FAST FACTS ABOUT HP:

1. HP Founder(s): Bill Hewlett and David Packard

2. HP founded year: January 01, 1939
3. Company Name: Hewlett-Packard, HP inc.
4. HP Headquarters: Palo Alto, California, United States
5. Number of HP employees: 56,000 (as of 2019)
6. HP annual revenue: $56.8 Billion
7. HP net earnings: $3.152 Billion (as of 2019)
8. Top 5 products similar to HP: Lenovo, Dell, Acer, Asus and Epson
9. HP Product ranges: Printers, Software, cloud products, Digital camera,
Scanner, Computer products (Tablet, Pocket computer, Desktop, notebooks),
mobile phone, servers.
10.Number of Hewlett-Packard patents: 37,000 worldwide patents
 11.HP acquisitions: 104 organizations have been acquired by HP and its latest
acquisition was Bromium, Inc. in September 2019
12.Interesting fact about HP: Most of the HP products are recycled from
waste plastics. They are currently focused on ocean plastics and they
sourced more than 1.7M pounds of ocean-bound plastic material as of June
2020.
13.History of HP: Bill Hewlett and David Packard started their research in a
garage nearby Palo Alto and developed an audio oscillator Model 200A and
it was purchased by Walt Disney. The company name was finalized with a
coin toss whether it should call as Hewlett-Packard (HP) or Packard-
Hewlett. The garage they worked earlier is now called as “Birthplace of
Silicon Valley”.

TECHNOLOGY LEADERSHIP

1. Hp’s three business group drives industry leadership in core technology areas:
2. The personal system group: business and consumers pc’s, mobiles computing
devices and workstations.
3. The imaging and printing group: inkjet, laser jet and commercial printing,
printing supplies, digital photography and entertainment.
4. The technology solutions group: business products including storage and
servers, EDS, managed services and software.

HP’S SHARED VALUES

1. Passion for customer: It put our customers first in everything it does

2. Trust and respect for individualist work together to create a culture of inclusion
built on trust, respect and dignity for all.
3. Achievement and contribution: It strives for excellence in all it does; each
person's contribution is critical to our success.
4. Results through teamwork: It effectively collaborates, always looking for more
efficient ways to serve our customers.
5. Speed and agility: It is resourceful and adaptable, and we achieve results faster
than our competitors.
6. Meaningful innovation: It is the technology company that invents the useful and
the significant.

HP’S CORPORATE OBJECTIVES:

1. Customers loyalty
It earns customers respect and loyalty by consistently providing the highest
quality and value.

2. Profit
It achieves sufficient profit to finance growth, create value for our
shareholders and achieve our corporate objectives.

3. Growth
It recognizes and seized opportunities for growth that builds upon our
strengths and competencies.

4. Market leadership
It leads in the marketplace by developing and delivering useful innovative
products, services and solutions.

5. Commitment to employees
It demonstrates our commitment to employees by promoting and rewarding
based on performance and by creating a work environment that reflects our values.

6. Leadership capabilities
It develops leaders at all levels that achieve business results, exemplify our
values and lead us to grow and win.

7. Global citizenship
It fulfills our responsibilities to society by being an economic, intellectual and
social asset to each country and community where it does business.
MARKETING MIX

1. The First P =PRODUCT

Product is a key element in the market offering. Marketing mix planning being
with formulating to meet target customer’s need& wants. The customer will
judge the offering by three basic elements features &quality, services mix
&quality & price appropriateness .Kotler said -A product is anything that can
be offered to a market to satisfy the wants or needs of the consumers.
Products that are marketed include physical goods, services, events,
experience, persons, place, properties, organizations, information‘s & ideas .A
firm does not sell only a product. It sells product benefits. Product is the most
important variable in the marketing mix of the firm. If the product is sound &easily
acceptable to the market if it satisfies seller’s need, consumer’s preference & is
carefully fitted to the needs & desires of the customers, sales success is
assured. Hence, product is the center of all marketing policies &decisions. The
marketing planning begins with the product & also ends with the product,

Company plans to increase their product range in the future. A brief description of
some products is as follows: -

Products Name:

1. Laptops, Notebook Computers & Tablet PCs

i. Everyday computing Laptops for movies, music, photos and multitasking in
your home or home office
ii. Performance & entertainment Laptops for cutting-edge entertainment and
gaming
iii. Ultra – portable Laptop computers or tablet PCs for on-the-go personal
productivity and connectivity
iv. Mini Perfect companion PC to keep you connected while you are on-the-go

2. Laptops for Business

i. Elite Book laptops Best in class, packed with features and functionality
ii. Compaq laptops Advanced features for business
iii. Pro Book laptops Stylish and affordable for small business options
 3. Other laptops
i. HP Pavilion Home Desktop PCs
a) Fitted with features that appeal to your whole family and yet flexible and
reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern home however compact the
space, whatever the budget

ii. HP Pavilion Elite Home Desktop PCs

a) Fitted with features that appeal to your whole family and yet flexible and
reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern home however compact the
space, whatever the budget.

4. Monitors
i. Home & Home Office monitors
ii. Business Monitors

5. Options & Accessories Keyboards, mice, memory, storage, speakers, headsets,

webcams, cables, gaming and other accessories for desktop computers.
i. Home & Home Office desktop accessories
ii. Business desktop accessories
iii. Extended service plans for Home & Home Office

6. Laser Printers, Inkjet Printers and Multifunction Printers

i.Color Printers
a) Inkjet printers DeskJet, Office jet, and Business Inkjet printers
I. Home inkjet printers
II. Business inkjet printers

b) Color laser printers Color laser printers with HP LaserJet performance

I. Home colour lasers
II. Business colour laser

c) Large-format printers
i. HP Design jet, Design jet Commercial and Scitex printers; HP Indigo presses
I. Design jet printers
II. Other graphic arts products
ii.Black & White Printers
1. Laser printers HP LaserJet printers for high-speed, high-volume, high-quality
Printing
I. Home laser printers
II. Business laser printers

7. Wireless printing
Enjoy the freedom to print from anywhere with HP's line of wireless printers.
Wireless allows greater mobility, no wires and shared printing. Many HP printers
have wireless printing built into the printer and HP offers an add-on to your
existing printer. Live Wirelessly. Print Wirelessly.

2. THE SECOND P = PRICE

Sales are only income for any business concern .But price is the main factor which
affects the sale of the market. If the price is high, few buyers purchase and if the
price is low many buyers purchase. Therefore a sound pricing policy must be
adopted to have maximum sale revenue. Moreover, it is only through proper
pricing policy the already laid down marketing objective and corporate goals could
be achieved. Price is the exchange value of a product or service always expressed
in tem of money. In other words, price of a product or service is what the seller
feels it’s worth on term of money, when offered to a buyer. To the customer, the
price is an agreement between seller & buyer concerning what each is to receive.
The buyer is interested in the price of the whole package consisting of physical
product plus a bundle of expectation and satisfaction. The consumer has numerous
expectations such as after sale service, replacement of parts, technical guidance &
money other benefits. However, to the seller, price is a source of revenue and a
main determinant of profit. To the seller, price is equivalent to the total product
offering. This offering includes a brand name, a package, product benefits, after
sale service and so on. We can define price as the “money of the product or service
agreed upon in a market transaction”. So, Price in money = physical product +
bundle of expectations The Price Factor of PCs India is a price-sensitive market.
When the PC was launched in 1984, it cost well over $4,450 here, and in the late
1980s, the price was around $2,220. While the price was around $1,100 in the mid-
90s, today, a MNC brand with multimedia costs only around $761. The Indian
market has seen local assemblers stealing a march over their domestic and
multinational computer hardware rivals. The Indian PC industry has also witnessed
the rise and fall of many a domestic brand. Prominent players who fell out include
DCM-DP, PCL, Sterling and Unicorp, though many Indian brands including HCL
today account for nearly half of the branded PC sales in the country. The pricing
adopted by HP India Pvt. Ltd. can describe under this subhead: - Competitive
pricing: - HP India Pvt. Ltd. adopted the method of pricing called competitive
pricing for their PCs. Under this policy, the price of HP PCs is fixed according to
the price of other competitor brand of the market & the price moves accordingly,

3. THE THIRD P – ‘PROMOTION’

Promotion is the process of making communication involving information,

persuasion and influence. Promotion has three specific purposes. It communicates
marketing information to the customers, users & retailers. Promotion persuades
and convinces the buyer & enters into this consumer behavior. Promotional efforts
act as powerful tools of competition providing of cutting edge of its entire
marketing programmed. Promotion has been defined as “the coordinated self
initiated effort to establish channel of information & persuasion to facilitate or
faster the sale of goods or services, or the acceptance of ideas of points of view.” It
is a non-price competition. Broadly speaking, promotion means to push forward or
to advance ideas in such a way as to gain its acceptance & approval. It is an effort
by the marketer to inform and persuade buyer to accept, resell, recommend, or use
the article, services or ideas, which is being promoted. The promotional activity
always attempts to affect knowledge, attitude, preferences & behavior of recipient,
i.e. buyers. The element of persuasion to accept ideas, products, services etc., is the
heart of promotion. You may have the best product, package & so on. It may have
a fair price. But people will not buy your products, if they have never heard of it,
and they are simply unaware of its existence. The market must communicate to his
prospective buyer & provide them adequate information in a persuasive language.
People must know that the right product is available at the right place & at the right
price. This is the job of promotion in marketing. In essence, promotion is the spark
plug in our marketing mix. It is said that:- “Nothing until somebody promotes
something” Promotion can create & stimulate demand, capture demand from rivals
and maintain the demand of your products even against keen competition. It is true
that nothing can be sold & nothing can make money (except mint) without means
of promotion.

The communication & promotion mix includes four ingredients viz.

1. Sales promotion.
2. Advertising.
3. Publicity.
4. Personal selling.
1. Sales promotion:

Sales promotion is an important instrument in marketing to lubricate the

marketing efforts. Today, sales promotion is a necessity & not a luxury. It is
not expenditure, it is an investment, which can pay a rich dividends. It is an
integral part of marketing effort. “In a specific sense, sales promotion includes
those sales activities that supplement both personal selling & advertising &
coordinated them and help to make them effective such as displays, shows and
expositions, demonstration and other nonrecurring selling effort not in a
ordinary routine. Sales promotion aims at stimulating the purchasing at the
point of sales & dealer’s effectiveness at the retail channel of distribution. Sales
promotion with the reference of HP India Pvt. Ltd. Company plans to follow
two kinds of promotional tool for their products.
They are: -
(a) Dealers promotion
(b) Customers promotion

(a) Dealers promotion

To make a proper channel of distribution & to increase the market share of
the company, corporate plans to promote their dealer or retailers through
the various promotional strategies. Under which they provide a price off, a
straight discount off the list price. The offer encourages retailers as well as
distributors to buy a quantity or carry a new item. As it is company provide
allowances to the distributors for the carrying out of the company’s brand.
An advertising allowance compensates retailers for advertising the
company’s products. Company also provides free goods to the distributors
as the offer for taking up extra goods or for carrying new products. In the
extra company plans to organize the industrial associations in the form of
trade fairs & conventions o stimulate the sale result of their intermediaries.

(b) Customers promotion

Due to the proper attention towards the channel of intermediaries, company

is not able to give proper attention towards consumer’s promotion but they
arrange whole the method of local promotion for the awareness of the local
customers. As it is they also provides demonstration & gifts to the
 customers shortly by which products of the company are able to create a
spec in the customer’s mind .

2. Advertising

The modern age is an era of competition. To withstand competition

manufactures have to think of new & unfamiliar uses for their products or they
have to find out new buyers for their products. The patent medicine people
were the first to prove what advertisement could do. “Advertisement is the art
of influencing human action’ the awakening for the desire to possess & possess
your product.” “Advertisement consists of all the activities in presenting a
group a non-personal, oral or visual, openly sponsored message regarding a
product, services or idea.”

Advertising with the reference of HP India Pvt. Ltd.

At present time the chairman of HP India Pvt. Ltd. give attention to make
proper distribution channel for their products. It is the company’s policy that
firstly they make proper distribution channel for their products by which any
customer either he/she will be belongs to rural area or belongs to urban area got
the product easily.
After making proper distribution channels, corporate plans to come through
the media, because advertisement on media requires heavy investment. As far
as advertisement is concerned HP India Pvt. Ltd. provides claim to their
respective stockiest of the different districts of the state for the local
awareness / promotion as per required by the stockiest of the districts. Local
promotion includes Banners, Holdings, and Cable TV. Adz Installing, Trade
fairs, sponsorships etc. for the awareness of their products to the local
customers. Because of the company doesn’t come through the media in present
time i.e. why company bears all the expanses for the local promotion as
required by the distributors? It is true, that it is not sufficient in today’s high
competitive marketing scenario, but after the attainments of the proper
distribution channel company definitely come through the media which is a
powerful source of demand generation in today’s tough marketing scenario & it
is definitely provides a strong consumer pull to the new products of the HP
India Pvt. Ltd.

3. Personal selling
 A salesman is one who practices the profession of selling. One can learn a lot
about selling and salesmanship just by thinking about definition of personal
selling. American marketing association defined salesmanship as ‘the process
of including and assisting a prospective buyer to buy a commodity or service or
to act favorably upon an idea that has commercial significance to the seller.’
E.F. Schumaker defined selling as ‘the process affecting the transfer, with a
profit to buyer & seller, of goods & services that gives such lasting satisfaction
that the buyer is predispose to come back to seller for more of the same.’
Personal selling refers to oral presentation in conversation or more prospective
customers for the purpose of making sales. Personal selling involves two-way
communication, “a well defined problem is half solved.” Due to seller buyer
interaction, personal selling alone can provide immediate feedback of
information, which enables salesman to understand properly the buyer’s mind,
his problems, his needs & his preferences.

Personal selling with the reference of HP India Pvt. Ltd.

As far as the HP India Pvt. Ltd. is concerned corporate plans the effective
medium of personal selling for their products. They provide full support to the
salesman for selling their products. Effective communication & facilities
motivate salesman to make a good relationship with the customers. Corporate
actually knows the importance of the phenomenon of the personal selling I.e.
why they tries to implement the ‘A-I-D-A-S’ formula of personal selling.
The brief description of this formula is as follows: -

A: - Attention – The ‘Attention’ of the customer.

I: - Interest -- Create an ‘Interest’.
D: - Desire -- Ignite the ‘Desire’ of the customer.
A: - Action -- Gaining an order.
S: - Satisfaction – Customer ‘Satisfaction’.

4. THE FOURTH ‘P’ – PLACE

Marketer has to ensure the availability of its products to the target customers. If a
product is not available to the target customers at the right place, then he/she may
shift to competitive products. So place decision relates to:
(i) Channel decision – what kind of distribution channels a company adopts
between plants & consumer.
(ii) Distribution channel policy – whatever to go for extensive or selective or
exclusive distribution.
(iii) Degree of selectivity among wholesalers & retailers.
(iv) Effort to get the cooperation of the trade.
(v) Physical distribution decision includes logistics, transportation,
warehousing, material handling, bulk packaging etc.
Meaning of channels of Distribution Goods produced by the manufacturers must
come to the knowledge of the ultimate consumers. This is arranging by the sales
promotion activities like salesmanship & advertising. By mere knowledge, the
prospective consumers are not happy. The products must reach their hands for
actual use. Channels of distribution are paths through which products move from
the point of production to the point of consumption. Distribution channels are also
called Trade channels.

COMPETITORS

Major Brands of Computers in India

HCL Info systems:

HCL Info systems Ltd is one of the pioneers in the Indian IT market, with its
origins in 1976. For over quarter of a century, we have developed and implemented
solutions for multiple market segments, across a range of technologies in India.
The country’s number one desktop brand had yet another great year selling 4.76
lakhs units. The company targeted aggressively the B and C class cities and upped
its distribution network. The significant milestones over the last year include the
launch of the low cost Ezeebee Pride that came with an attractive price tag of Rs
12,990. It attacked all the buying segments with low cost processors like via to
industry standard P4 HT offerings. The aggression HCL showed in pricing its
product in a way kick-started the price war with brands like Acer, and vendors like
HP cutting down end-user price points. Another significant development for HCL
was its launch of the high-end home PC called Neo, complementing its Beanstalk
range. Neo was also the first desktop brand in India to come with Windows XP
Media Center OS. Meanwhile, on the Notebooks front, HCL is the exclusive
distributor of Toshiba in India whose volumes scaled to 20,000 units, compared to
last year’s 11,600 units. With Toshiba aligned to the Higher end of the spectrum
HCL was unable to tap the low and mid-end segments of the portables. And to
plug that, during the year the company made a low key launch of its own brand of
notebooks called eZeebee and Powerlite, which summed up to 3,000 units during
the fiscal. Meanwhile, the banking vertical did buy aggressively with large
mandates from SBI and other nationalized banks. From the government side, nodal
agencies like Tamil Nadu’s ELCOT also went for large-scale installations. As a
result of growing demand for its offerings, the company is in the process of
expanding its Pondicherry plant.

Acer Computer International Limited

Few IT companies offer the breadth and depth of products that Acer Group does.
Leveraging the vast collective technological resources available - Acer India (Pvt.)
Ltd., was incorporated as a wholly owned subsidiary of Acer Computer
International Ltd. on 9th September 1999. Acer's mission in India is to translate the
Group's goal of making computer technology easier to use and more affordable - to
everyone in this country. With a focused customer-centric approach, Acer in India
is offering unmatched uptime for all its systems through a vast network of Service
points, innovative and user friendly functionality while continuously lowering
barriers that limit the access to the fruits of technology. Compaq India: The
world’s largest seller of PCs entered India in 1994. Initially, the commercial
segment (large corporations, government, educational & research institutions) was
its main target segment. But with recession in the economy in mid 1990s and the
consequent slashing of IT budgets of corporate, it turned its attention to the home
segment. However, it soon realized that its PCs, although perceived well on
reliability and quality, were considered too expensive. The assemblers and Indian
brands were cornering a major chunk of the market. It slashed prices of its sub
brand Presario from Rs.65, 000 to Rs.50, 000 to penetrate into the price conscious
Indian households. At the same time, Compaq is aggressively going after corporate
segment by offering a range of products tailored around services to meet specific
needs. Its merger with Digital Equipment further strengthened its position in the
high-end server market.

Wipro Limited

Wipro intends to focus more on the lucrative services business in future. Already,
services accounts for more than half of its turnover. In contrast, the contribution of
systems business dropped from 43 per cent to 25 per cent. It had a joint venture
with Acer for marketing the Wipro-Acer brand of PCs. However, they called it off
in 1999. Wipro has a 500-strong dealer network. It also distributes IBM PCs and
Sun Microsystems,

STP ANALYSIS OF HP

HP Hewlett-Packard
Home Users, Government Institutions, Large Corporate and students
Segmentation

Fortune 500 companies, Small and medium size enterprises, Public

HP Hewlett-Packard
Sector Divisions, Students and home makers who need systems for
Target Market
their daily work

HP Hewlett-Packard
Trustworthy and consumer centric Computer provider
Positioning
 HP Hewlett-Packard SWOT Analysis

Below are the Strengths in the SWOT Analysis of HP Hewlett-Packard:

1. Employee strength of 3,50,000 worldwide
2. It has maximum market share in the PC market
HP Hewlett-
3. It’s consumer centric approach makes it a reliable choice
Packard
4. It has got good after sales service which helps to maintain good consumer
Strengths
relationship
5. It’s ability to bring out news designs and innovation at affordable cost
6. Good distribution network across the world

Here are the weaknesses in the HP Hewlett-Packard SWOT Analysis:

1. Market share growth is slow due to competition; Fake products/ imitations
HP Hewlett-
affects sales
Packard
2. Due to mass production it is unable to provide customize solutions  to the
Weaknesses
customers
3. Its lagging in digital entertainment market

Following are the Opportunities in HP Hewlett-Packard SWOT Analysis:

HP Hewlett- 1. With increase in IT awareness the scope for supply of desktops and  laptops is
Packard increasing
Opportunities 2. It has opportunity for growth in service industry because it has bought “EDS”
which is world’s No. 2 service provider

The threats in the SWOT Analysis of HP Hewlett-Packard are as mentioned:

1. People are becoming more cost conscious so the profit margins  have become
HP Hewlett-
low so pricing is an issue
Packard
2. With increase in number of local players there is threat of component pricing
Threats
3. Due to economic downturn, increase competition and saturated market there
is slow revenue growth
BIBLIOGRAPHY

www.google.com

Wikipedia.com

HP official site