UNIVERSITY OF MUMBAI

PROJECT ON
BRAND MANAGEMENT AT HCL.

SUBMITTED BY
VISHAL TOTLANI

PROJECT GUIDE
PROF. RAJWADE

BACHELOR OF MANAGEMENT STUDIES

SEMESTER V
(2009-2010)

V.E.S. COLLEGE OF ARTS, SCIENCE & COMMERCE,

SINDHI COLONY, CHEMBUR – 400071
 UNIVERSITY OF MUMBAI

PROJECT ON
BRAND MANAGEMENT AT HCL

Submitted
In Partial Fulfillment of the requirements
For the Award of the Degree of
Bachelor of Management
By
VISHAL TOTLANI

PROJECT GUIDE
PROF. RAJWADE

BACHELOR OF MANAGEMENT STUDIES

SEMESTER V
(2009-2010)

V.E.S. COLLEGE OF ARTS, SCIENCE & COMMERCE,

SINDHI COLONY, CHEMBUR – 400071
 DECLARATION

I, ____________________________, the student of Bachelor of

Management Studies - Semester V (2009-10) hereby declare that I have
completed this project on _________________________________
________.

The information submitted is true & original to the best of my

knowledge.

Student’s Signature
( )
 CERTIFICATE

This is to certify that Mr. _______________________________ of

Bachelor of Management Studies - Semester V (2009-10) has
successfully completed the project on ________________________
_______________________under the guidance of _____________
___________.

Course Coordinator Principal

Mrs. A. MARTINA Dr. (Mrs) J. K. PHADNIS

Project Guide
MR. RAJWADE

External Examiner
ACKNOWLEDGEMENT
OBJECTIVE
“What is the purpose of this study?” and “what are the objectives of the research?” if
these questions are not properly answered at the outset the study is likely to be misdirected and
to pursue vague or obscure goals. The probable result will be that the collective data will not be
valid and reliable as desired.

Objective of The Study:

1. To understand the concept of brand management.
2. Analyze how brand management is effective is today’s market.
3. Study the various aspects related to brand management.
4. Understand the depth of brand awareness
5. To position the brand in the mind of customer
6. Gathering and disseminating relevant information to customers.
7. Understanding and fulfilling the expressed and latent needs of customers buying behavior
8. To generate the business for the company while maintaining a balance with the store’s
image.
METHODOLOGY

This project report on “BRAND MANAGEMENT AT HCL

The comprehensive information has been well arranged in order to give a correct
guidance to the reader.

Collection and Sources of Data

Primary Data: Primary data is being collected by designing the questionnaire and by the detail.
The primary data will also help to understand the real facts and figures and to come out with a
conclusion as accurate as possible.

Secondary Data: Secondary data is being collected for other useful information towards
completion of the project and other finding for useful information from the internet.

 The collected data will be classified and tabulated for future mathematical operations for
the presentation of the same data graphical techniques are used.
 The analyzed data will be used for the final observation and findings.
 SUMMARY
Brand management is the application of marketing techniques to a specific product,
product line, or brand. It seeks to increase the product's perceived value to the customer and
thereby increase brand franchise and brand equity. Marketers see a brand as an implied promise
that the level of quality people have come to expect from a brand will continue with future
purchases of the same product. The value of the brand is determined by the amount of profit it
generates for the manufacturer.
Brand management will play a more significant role in future marketing competition, so
research on the brand management is likely to become more meaningful and interesting. This
thesis focuses on brand management. The research question here is if brand management can add
value to firms, as well as how to connect brand management with value.
HCL Info systems, India's premier information enabling and integration company, has
received the ISO 9001:2000 certification specifies requirements for a quality management
system where an organization needs to demonstrate its ability to consistently provide product and
services that meets customer and applicable regulatory requirements. ISO 9001:2000 also aims
to enhance customer satisfaction through the effective application of the system, including
processes for continual improvement of the system and the assurance of conformity to customer
and applicable regulatory requirement.
The menu of HCL Insys global services broadly covers IT consulting and professional
services in the area of vertical applications, technology integration, ERP implementation and
software development. This also includes a complete portfolio of systems and network services
for development. This also includes a complete portfolio of systems and network services for
Facilities Management, Helpdesks, Sysytems Supports and network and Internet
Implementation.
This project helps me to know various brand management strategy and how company is
using this strategy to stagnant in the market.
INDEX
 REVIEW OF LITERATURE
BRAND

“Brand creates VALUE for the Product.

It allows selling it with the premium.
It CREATES that relationship with the customers.”

The American Marketing Association (AMA) defines a Brand as a "name, term, sign,
symbol or design, or a combination of them intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those of other sellers. Brand conveys six
levels which help to succeed in the market that is listed below:-
• Attributes
• Benefits
• Values
• Cultural
• Personality
• User
Brand is used by companies to gain maximum customer loyalty. A brand’s distinctive
capabilities are identified by customer based on their perceptions that have themselves been
created by the marketer over a period of time.

A collectively held idea of a company by its customers in reaction to the messages the
company sends via advertising, product design and public relations. For example, Nokia,
Unilever, Apple is well renowned brands. In technical speaking whenever a marketer creates a
name logo symbol he or she has created a brand.
 Brand management is the application of marketing techniques to a specific product,
product line, or brand. It seeks to increase the product's perceived value to the customer and
thereby increase brand franchise and brand equity. It may also enable the manufacturer to charge
more for the product. The value of the brand is determined by the amount of profit it generates
for the manufacturer. It will be helpful in increased sales and price or to reduced COGS (cost of
goods sold), and reduced or more efficient marketing investment.
Brand Managers often carry line-management accountability for a brand's P&L
profitability in contrast to marketing staff manager roles which are allocated budgets. Brand
Management is often viewed in organizations as a broader and more strategic role than
Marketing alone. While forming a brand company has to go through certain procedures:

• Establishing a set of Brand policies

• Identifying Brand promise
• Implement measurement of Brand equity

Brand management has undergone a lot of development in recent times. For example,
HLL and Proctor and Gamble these companies concentrate on particular set of brands. When a
firm position a brand by giving someone cultural, actual, and historical relevance, people start
looking at the brand with curiosity ensuring that the brand never loses its shine. Brand never
bored the audience and will keep its freshness for years together.

Brand management is necessary in all aspects of the brand that is:

 Developing the Brand
 Maintaining and Extending the Brand
 Protecting the Brand
BRAND MANAGEMENT ASPECTS:

 Brand Equity:
It is defined in terms of the marketing effects uniquely attributable to the brand. The
brand equity concept stresses the importance of the brand in marketing strategies. It is the
combination of assets and liabilities associated with a brand that enhances or depreciates the
value of the brand. The brand equity has five major determinates are awareness, quality
perception, loyalty, patents, trademark.
For example, Parle-G, the biscuits major which caters to the mass market, is hoping the
brand equity of biscuits in wheat flour (atta) market. Parle is selling atta under the same brand
name as its biscuits. Parle-G has launched the atta under the same name to gain advantage from
the brand equity of biscuits.
Brand equity refers to the marketing effects or outcomes that accrue to a product with its
brand name compared with those that would accrue if the same product did not have the brand
name. And, at the root of these marketing effects is consumers' knowledge. In other words,
consumers' knowledge about a brand makes consumers respond differently to the marketing of
the brand. There are many ways to measure a brand. Some measurements approaches are at the
firm level, some at the product level and still others are at the consumer level.
Examples,
a) Lux Soaps:
This brand has maintained its unique features as “beauty soap bar of the film’s stars”.
This brand is making good contribution in the marketing due to its popularity among consumers
which is a result of various factors such as attractive packages, quality, price, easy availability.

b) Goderej Storewel:
The company is popular among consumer even when many identical cupboards and
competitors in the market.
Brand equity is the incremental value of business over and above physical assets resulted from
bringing together various elements such as brand name, packaging, advertisement, pricing and so
on.

Brand positioning:-
It is the act of designing companies the company’s offer so that it occupies a distinct and
valued place in the minds of customer.
Brand positioning is a part of brand identity and value proposition that is to be actively
communicated to the target audience and demonstrate an advantage over competing brands.

POSITIONING STRATEGY:

1. Positioning by price and quality:

Good quality costs little more. The consumer selects the product at different level of price,
offering different quality and decided which is more suitable. For example, this strategy
commonly used in construction industry.

2. Positioning by user category:

The product is associated with the specific user class of people. Famous personalities are used to
influences the consumers.
3. Positioning by Product class:
Some advertisers use class associations which are seen substitute to satisfy needs of the
customer. For example, Cadbury dairy milk came with the chocolate box as a gift.

4. Positioning by benefit:
Position on the basis of special benefit. For example, Maggi two minute noodles position itself
with “Two minute positioning”, “Fast to cook good to eat”.

 Brand Sponsorship:
It is form of publicity, which is done by supporting and
linking the organization name with a particular event most
commonly, sporting events or an activity that involves a large public
gathering. Sponsorship of major events it’s a great opportunity for
companies to gain publicity.
The company should be cleared about the benefit it is trying to derive out of sponsoring a
particular event. First, creating awareness of the brand during the event and developing
association and relationship with the brand. Second, from the option available the firm should
choose the event that will help to achieve its sponsoring objective. Third, brand easily gets
associated with the event. Fourth, it is better to have long term relationship with the event rather
the sponsor a new event every time.
For examples, 'Coca-Cola' is one of the top global sponsors of sport. The rationale for
sponsoring international and local sporting events is that it is "a natural fit". By matching the
brand with world standard events 'Coca-Cola' benefits from the exposure and the associations
made between it and the event being sponsored. Equally by ensuring that local events are
sponsored the brand is exposed exclusively to a local market and will thus be seen as a local
brand. 'Coca-Cola' meets its sponsorship objectives:
• To connect with teens in an interesting and fun way.
• To create unforgettable teen moments linked to 'Coca-Cola'.
• To communicate the dynamic and leading attributes of the brand.
• To be seen as a national sponsor at a local level and global sponsor on an international
level.
 Brand Leverage:
When marketers leverage on brand equity by using the existing brand name for new
products, it can be termed as Brand leverage. Marketers resort to this method so that consumers
will perceive the new brand as having some of the characteristics of the existing brand. For
example, Lux used its brand name to move into the liquid soap and shampoo market. Godrej
Fairglow soap brand was extended to its fairness cream.

For example, the manufacturer of Mr. Coffee, coffee makers used its brand name
strength to launch Mr. Coffee brand coffee. While coffee machines and coffee beans are in
different product categories, there is a strong enough correlation between the two items that the
brand name has a powerful impact on consumers of both categories.

Brand leveraging communicates valuable product information to consumers about new

products. Consumers enter retail outlets equipped with pre-existing knowledge of a brand’s level
of quality and consistently relate this knowledge to new products carrying the familiar brand.
Generally, consumers maintain a consistent brand perception until disappointed – creating a
risky advantage for established brands. Additional advantages of brand leveraging include:

• More products mean greater shelf space for the brand and more opportunities to make a
sale.

• The cost of introducing a brand leveraged product is less than introducing an

independently new product due to a much smaller investment in brand development and
advertising designed to gain brand recognition.

• A full line permits coordination of product offerings, such as bagels and cream cheese,
potato chips and ranch dip, peanut butter and jelly, etc.

• A greater number of products increase efficiency of manufacturing facilities and raw

materials.
 A brand leveraging strategy will not work in every situation. A brand leveraging strategy
can be extremely successful and profitable if it is correctly implemented and provides new
products with the right image. There are important questions that should be considered in order
to make the best decision for your brand:

• Does the new product fit into the established product family?

• Does the brand have attributes or features that easily and effectively carry into new
categories?

• Is the brand name strengthened or diluted by representing two (or more) differentiated
products?

• Does your company have facilities necessary to manufacture and distribute a new and
differentiated product?

• Will sales of the new product cover the cost of product development and marketing?

Brand Personality:
Two elements thus affect an individual's relationship with a brand. First, there is the
relationship between the brand-as-person and the customer, which is analogous to the
relationship between two people. Second, there is the brand personality--that is, the type of
person the brand represents. The brand personality provides depth, feelings and liking to the
relationship. Of course, a brand-customer relationship can also be based on a functional benefit,
just as two people can have a strictly business relationship.
It is the description of a brand in the terms human characteristics. Effective personality of
a brand to its prospective customers in an idealized sense, It tends to create an identity of a brand
with the person. It plays the role of a differentiator. It create link between brand and customer. It
is also called AIDA (Attention, Interest, Desire, Action) it is a strategic weapon in a cluttered
marketplace. Advantages of brand personality:
 It creates favorable brand image of a product.
 It helps the advertiser to face brand wars and market competition effectively.
 It acts as positive selling points.
 It facilitates psychological satisfaction in specific segment.
  It facilitates selection of an appropriate advertising media.
For example,
Apple : Intelligent, Creative,
IBM : Confident, Expert, Advisor
Disney : family fun entertainment
Google : simplicity

Some famous Brand personalities

• Pepsi:
Pepsi built youth, spontaneity and irreverence as key elements of the brand personality.
Sachin was shown smashing a windscreen and Azhar swiping a Pepsi. Coke has still a define a
personality for itself.

• MRF Tyres:
Up market, sporty, powerful.

Cellular Phone Personality:

• Nokia:-
The charming European. A widely travelled global citizen, with a sense of humor.
Practical technology. Likes to interact with the people, and explore what they expect, and fulfill
those expectations.

• Motorola:-
The live-wire America executives. Powerful as well as resourceful. He believes in hard
sell. Command over technology.

 Brand Identity:
Brand Identity is the unique set of brand associations that the brand strategist aspires to
create or maintain. These associations represent what the brand stands for and imply a promise to
customers for the organization members.
 It is much more comprehensive than brand positioning which communicate to the
consumer relevant value to the brand to distinguish from competitor’s brand.
Brand Identity For Close Up Tooth Paste:
Core Identity : Oral freshness which allows young people to come closer to each other
Extended Identity : quality products from Lever
Value Proposition : It is a sweet gel, having bright colors. It is only cleanness but freshness
the mouth

Brand Identity For Nycil:

Core Identity : A powder which takes care of prickly heat in summer
Extended Identity : It is a sweat fighter. It is life style products.
Value Proposition : Relief from prickly heat in tropical climate and summer. Make life
comfortable.

BRAND IDENTITY
Perspective Dimension Remarks
• Quality Quality price relationship is kept in mind
Brand as product
• Users Johnson and Johnson are for babies.
Tata Stands for quality. Such an association is more
Organization Organization attributes
enduring than one based on product attributes
• visuals imagery Coca cola’s classic bottle
• Metaphor Kodak and Yellow pages
Symbol
• Heritage The journey in palace on wheels, the coaches of
which are the saloons of former Maharajas.

 Brand Loyalty:
It can be considered as conscious or unconscious decision of consumers that is reflected
in his expressed intent or behavior to purchase and repurchase it on a continuous basis.
Consumer loyalty towards a brand can be attributed to his perception about the brand that it
provides the right mix of features and quality. Behavioral scientists argue that brand loyalty
occurs because of reinforcement. Cognitive scientist states that brand loyalty is a problem
solving behavior. It is aspects of marketers.
Brand loyalty has been proclaimed by some to be the ultimate goal of marketing. In
marketing, brand loyalty consists of a consumer's commitment to repurchase the brand and can
be demonstrated by repeated buying of a product or service or other positive behaviors such as
word of mouth advocacy. True brand loyalty implies that the consumer is willing, at least on
occasion, to put aside their own desires in the interest of the brand.
Brand loyalty is more than simple repurchasing,
however. Customers may repurchase a brand due to situational
constraints, a lack of viable alternatives, or out of convenience.
Such loyalty is referred to as "spurious loyalty". True brand
loyalty exists when customers have a high relative attitude
toward the brand which is then exhibited through repurchase behavior. This type of loyalty can
be a great asset to the firm: customers are willing to pay higher prices, they may cost less to
serve, and can bring new customers to the firm.
For example, if Joe has brand loyalty to Company A he will purchase Company A's
products even if Company B's are cheaper and/or of a higher quality. Philip Kotler, again,
defines four patterns of behavior:

Hard Core Loyal: who buy the brand all the time
Soft Core Loyal: loyal to two or three brands
Shifting Loyal: moving from one brand to another
Switchers: with no loyalty they are switching their brand constantly

BRAND IMAGE:
A unique set of associations in the minds of customers concerning what a brand stands
for and the implied promises the brand makes. The sum of all tangible & intangible traits. It
represents all internal & external characteristics. It's anything & everything that influences how
brand or a company is perceived by its target constituencies. It is the best, single marketable
investment a company can make, Ideas, beliefs, values, culture, name, symbol, packaging,
advertising, sales materials.
 For example, when you listen to the song of U and I and when you see the red color you
remember the brand Vodafone. That’s the brand image created by Vodafone on their customer.

Brand image: The image of a good or service which is formed in the customer’s mind
Company image: The valued customers, potential customers, lost customers and other
groups of people connect with the organization

The Importance of Image:

1. Image communicates expectations
2. Image is a filter influencing perceptions of the performance of the firm
3. Image is a function of expectations and experiences
4. Image has an internal impact on employees

Research on image built through endorsement of celebrities show that there are three
aspects that influence a consumer’s attitude of a brand. These are:
• Attractiveness
• Trustworthiness
• Expertise

Factors affecting Brand Image:

I. Contents of Advertisement:
The quality of contents i.e. headlines, the color combination, words can give indented image to
the brand.
For example, if cheap humor is used in the ad, the brand may get cheap image.

II. Media used:

The quality of media or programmes aponsors also affects the brand image. For example, Reid
and Taylor advertised in business.

III. Price:
The price factor can generate image for the brands. For example, the premium pricing for
Toyota has developed a rich image not only for company but for brand.
IV. Packaging:
The package must be properly designed in order to give a rich image to the brand as package is
the face of the product.

V. Distribution:
The type of distribution by a company may affect the image of the brand. For example,
companies enjoy goodwill in the market can generate favorable image for their brands.

BRAND TYPES

• Premium: Cost more than other product in the category

• Economic: Targeted to high price elasticity market segment.

• Manufacturing: It is directly manufactured by manufacturers who have invested heavily

on building them.
For example, Surf, Rin, Lux, Colgate.

• Generic brand: It is consumer products (often supermarket goods) are distinguished by

the absence of a brand name. Generics brands are usually priced below those products sold
by supermarkets under their own brand (frequently referred to as "store brands" or "own
brands"). Generally they imitate these more expensive brands, competing on price.
For example, Rice, wheat, Doormats, paper napkins.
BRAND STRATEGY
Branding in essence is effective brand strategy. It's the application of sound research into
brand communications, analytical techniques, and the development of an improved strategy for
your brand. Strategy is all about brand positioning. It identifies the key elements of product
brand and develops a branding action plan to implement it.

• LINE EXTENSION:
In this strategy company introduces additional item in the same product category in the
same brand name. This item may be different in size, packaging, color and so on. It is available
through different specific mix of trade channels e.g. lower end products are available at general
stores and higher end products.
It offers a variety of products to the customer. Line extensions can be innovative. It also
allows company to command more shelf-space at the retail level. Line extensions work only if
the sales are taken away from the competitors.
For example, Coke in India means 300 ml. bottles it extended to 500 ml. and 1 ltr. Then can
have introduced.
Godrej had face cream with the name Fair glow fairness cream and came out with the fair
glow toilet soap to cater the people who wished to use soap bar rather than cream.

• BRAND EXTENSION:
Extending brand name is extended to a product being launched in a new product
category. If new product is not satisfactory in performance, it might affect the reputation of the
company’s other products. Most of the times, brand name may not be appropriate for the new
product category. Brand extension advisable to see how the associations of the parent brand are
consistent with the extended brand.
For example, Bajaj is a brand name in the field of Scooters. The company used the same brand
name for Electronics appliances, Motor cycles, Tempos.

1. Extending The Brand: Colgate is available in both toothpaste and toothpowder.

Similarly Vim bar extended to the powder.

2. Product Line Extension: Additional product is added under same brand name. For
example, HLL extended its Flora brand of Sunflower oil to the gingelly oil segment of the
edible oil category.

3. Reaching Out To A New Category: When the brand has potential of providing benefit in
another category either through chosen brand name or through its wide acceptance in a
category, this form of extension is followed.

• BRAND RELAUNCH:-
It is the process of launching the brand after certain time gap. Companies try to acquire a
brand from other companies and relaunch it with necessary modification. For example,
Glaxosmithline acquired Viva a Maltova from Jagatjit industries in 2000, but could not secure
the expected benefit. HLL acquired Kwality ice cream in the mid- nineties it as Kwality Walls.
• MULTIBRANDS:-
This kind of strategy is employed to saturate the market. Additional brands are introduced
to cater to the different segment. Multibrands strategy may not allow company to focus on
company’s resources. Because of this profitability get affected. Competitors brand get affected
by the product and sometime own brand also get affected.
For example, P&G’s tide is for solied clothes and dreft is for gentle clothes. P&G products nine
different brands of detergent.
Coco- Cola came with Thumps Up, Gold spot, Limca brands.

• NEW BRAND NAME:

To make brand name more appropriate, a company puts a new brand name when it enters
a new product category. A new brand again has to be built up, and this is quite expensive. It
should be considered whether the sales and profit estimated from the new brand. For example,
Manikchand entered the mineral water segment with the brand name Oxyrich. Using same brand
hamper the sale of mineral water. When Manikchand atta were launched, it did not succeed in
the market.

COMPONENTS OF BRAND MANAGEMENT:

• Brand Awareness:
Brand awareness is the starting point in the development of brand equity. It represents the
consumer's ability to recall a brand name when given a product category (Aaker, 1991). For
example, when a person is asked to name a brand of basketball shoes, they are more likely to
mention Nike, Reebok, Converse or Adidas than they are to name LA Gear or Spalding.
According to Keller (1998), brand awareness is important to brand strategy for two
reasons. First, awareness of the brand ensures the brand enters the consumer's consideration set
when looking to make a purchase. Second, brand awareness can affect choices within the
consideration set. If one brand has a larger presence through advertising, it may be considered
more favorably. Third, awareness can impact the development and salience of associations with
the brand.
 For example, when anyone says, about Computer Company you remember about IBM.
When anyone says, about detergent u remember popular brand like Tide, Surf, Ariel and so on.

• Perceiver Quality:-
Perceived quality represents a consumer's judgments of a product's overall excellence
relative to its intended purpose. For example, given its rich heritage with the sport of football
Adidas is commonly perceived to produce a high-quality football shoes. Because it has been
shown to drive financial performance (return-on-investment), perceived quality is often the focal
point of corporate strategy. Besides the actual make-up of the product, pricing strategies may
impact a consumer's perception of quality. Therefore, in athletic footwear, as in many other
industries, higher price may connote higher quality.

• Slogan:
For example, Maggi noodles, it positioned their products as healthy
fast food with the slogan 2 minute noodles. Slogan based on 2 minutes it
help mother with promise of ‘food to cook and great to eat’. This slogan
specifies u can prepare food within 2 minute and it will not harm to your
health.

• Brand association:
It is associate brand with certain tangible and intangible attributes, a celebrity endorser or
a visual symbol. Most of this association are derived from brand identity and brand image. Each
organization has to carve a brand identity and develop it further to build strong brands.

• Logo and symbol:

Along with the brand name, companies also use a logo for visual identification. A logo
is pictorial symbol indented to communicate with the consumers. Flags, pictures, graphical
designs and alphabets are all used as logos. It is the piece of creativity. Logo is a relatively
permanent entity for a company.
 For example, logo of the Aditya Birla group of
companies in India is a Rising Sun. according to the company,
the logo represent the company’s outlook, which is positive
thinking and also a stress on values such as interity, quality, and
performances.

• Characters:
Brand characters typically are introduced through advertising and can play a central role
in these and subsequent ad campaigns. Brand characters come in many different forms. Some
brand characters are animated where as others are live-action figures. Consequently brand
characters can be quite useful for creating brand awareness. Characters often must be updated
over time so that their image and personality remains relevant to the target market.
For example, An Asian paint is another that has created a wining logo. When you look
for Asian paints, you catch sight of Gattu- the impish little boy with a paintbrush in one hand a
dripping can of paints in the other. In many towns of North India, buyer asks for Asian Paints, by
asking for the “bacha chaap paint”.
INTELLECTUAL PROPERTY
In law, intellectual property (IP) is an umbrella term for
various legal entitlements which attach to certain types of
information, ideas, or other intangibles in their expressed form. The
holder of this legal entitlement is generally entitled to exercise
various exclusive rights in relation to the subject matter of the IP. The term intellectual property
reflects the idea that this subject matter is the product of the mind or the intellect, and that IP
rights may be protected at law in the same way as any other form of property.

Intellectual property laws vary from jurisdiction to jurisdiction, such that the acquisition,
registration or enforcement of IP rights must be pursued or obtained separately in each territory
of interest. However, these laws are becoming increasingly harmonized through the effects of
international treaties such as the 1994 World Trade Organization (WTO) Agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPs), while other treaties may facilitate
registration in more than one jurisdiction at a time.

IP, protected through law, like any other form of property can be a matter of trade, that is,
it can be owned, bequeathed, sold or bought. The major features that distinguish it from other
forms are their intangibility and non-exhaustion by consumption. IP is the foundation of
knowledge-based economy. It pervades all sectors of economy and is increasingly becoming
important for ensuring competitiveness of the enterprises. These could be in the form of Patents;
Trademarks; Geographical Indications; Industrial Designs; Layout-Designs (Topographies) of
Integrated Circuits; Plant Variety Protection and Copyright.

IP, protected through law, like any other form of property can be a matter of trade, that is,
it can be owned, bequeathed, sold or bought.
• COPYRIGHTS
India’s copyright law, laid down in the Indian Copyright Act,
1957 as amended by Copyright (Amendment) Act, 1999, fully reflects
the Berne Convention on Copyrights, to which India is a party.
Additionally, India is party to the Geneva Convention for the
Protection of rights of Producers of Phonograms and to the Universal
Copyright Convention. India is also an active member of the World Intellectual Property
Organisation (WIPO), Geneva and UNESCO.
The copyright law has been amended periodically to keep pace with changing
requirements. The recent amendment to the copyright law, which came into force in May 1995,
has ushered in comprehensive changes and brought the copyright law in line with the
developments in satellite broadcasting, computer software and digital technology. The amended
law has made provisions for the first time, to protect performer’s rights as envisaged in the Rome
Convention

• TRADE MARKS
Trademarks have been defined as any sign, or any
combination of signs capable of distinguishing the goods or services
of one undertaking from those of other undertakings. Such
distinguishing marks constitute protectable subject matter under the
provisions of the TRIPS Agreement. The Agreement provides that
initial registration and each renewal of registration shall be for a term
of not less than 7 years and the registration shall be renewable indefinitely. Compulsory
licensing of trademarks is not permitted.
Keeping in view the changes in trade and commercial practices, globalization of trade,
need for simplification and harmonization of trademarks registration systems etc., a
comprehensive review of the Trade and Merchandise Marks Act, 1958 was made and a Bill to
repeal and replace the 1958 Act has since been passed by Parliament and notified in the Gazette
on 30.12.1999.
 The Windows logo is a trademark of Microsoft Corporation. The Sun logo is a registered
trademark of Sun Microsystems, Inc. The Red Hat logo is a registered trademark of Red Hat, Inc.
The hp logo is a registered trademark of the Hewlett-Packard Company. The AiX logo is a
registered trademark of IBM Corporation. The NetApp logo is a registered trademark of Network
Appliance, Inc. The EMC Legato logo is a trademark of EMC Corporation. The Tivoli Storage
Manager logo is a trademark to IBM Corporation. The Veritas logo is a trademark of Veritas
Corporation.

• GEOGRAPHICAL INDICATIONS
The Agreement contains a general obligation that parties shall provide the legal means
for interested parties to prevent the use of any means in the designation or presentation of a good
that indicates or suggests that the good in question originates in a geographical area other than
the true place of origin in a manner which misleads the public as to the geographical origin of the
goo. There is no obligation under the Agreement to protect geographical indications which are
not protected in their country or origin or which have fall en into disuse in that country.
 A new law for the protection of geographical indications, viz. the Geographical
Indications of Goods (Registration and the Protection) Act, 1999 has also been passed by the
Parliament and notified on 30.12.1999 and the rules made thee under notified on 8-3-2002.

• INDUSTRIAL DESIGNS
Obligations envisaged in respect of industrial designs are that independently created
designs that are new or original shall be protected. Individual governments have been given the
option to exclude from protection, designs dictated by technical or functional considerations, as
against aesthetic consideration which constitutes the coverage of industrial designs. The right
accruing to the right holder is the right to prevent third parties not having his consent from
making, selling or importing articles being or embodying a design, which is a copy or
substantially a copy of the protected design when such acts are undertaken for commercial
purposes. The duration of protection is to be not less than 10 years.
A new designs law repealing and replacing the Designs Act, 1911 has been passed by
Parliament in the Budget Session, 2000. This Act has been brought into force from 11.5.2001.

• PATENTS
The term patent usually refers to a right granted to anyone who invents or discovers any
new and useful process, machine, article of manufacture, or composition of matter, or any new
and useful improvement thereof. A patent is not a right to practice or use the invention. Rather, a
patent provides the right to exclude others from making, using, selling, offering for sale, or
importing the patented invention for the term of the patent. A patent is, in effect, a limited
property right that the government offers to inventors in exchange for their agreement to share
the details of their inventions with the public. Like any other property right, it may be sold,
licensed, mortgaged, assigned or transferred, given away, or simply abandoned.
A patent being an exclusionary right does not, however, necessarily give the owner of the
patent the right to exploit the patent.
 INDUSTRY PROFILE

RESEARCH COMPANY
HCL is a leading global Technology and IT Enterprise with annual revenues of US$ 5
billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies
( www.hcltech.com ) and HCL Info systems (www.hclinfosystems.in) The 3 decade old
enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings
span R&D and Technology Services, Enterprise and Applications Consulting, Remote
Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of
Technology and Telecom products in India. The HCL team comprises 56,000 professionals of
diverse nationalities, operating across 19 countries including 360 points of presence in India.
HCL has global partnerships with several leading Fortune 1000 firms, including several IT and
Technology majors.

01) Touching Lives:

From aeronautics to life sciences, HCL touches millions of people through technology
across the world everyday. At HCL, we work on varied applications of technology right from the
aerospace industry to medicine and BPO. There are no boundaries with which we operate. Be it
in technology that helps one of the world's biggest aircraft manufacturers navigate and land
aircrafts in poor visibility or designing futuristic computer chips, we believe that technology
touches each ones life.
Technology that touches lives ' campaign
VIDEO: Touch Technology Campaign.

Campaign essence:
Technology is the heartbeat of HCL. In 2005, we showcased our expertise in technology
through the "Talking Numbers" campaign using the voices of 0 & 1, the building blocks of the
binary universe. Though technology on its own is just an enabler, its power can be felt when one
sees the immense impact it has in various walks of everyday life.

This, for the company, became the road ahead. They set out to show their stakeholders,
across the globe, the width and depth of our technology, and its ability to touch lives everywhere.

Technology that touches lives:

 The brief was simple - show the reach and importance of our technology in everyday life.
The hard part was making it brief, 60 seconds to be precise. Then, suddenly, a light bulb sparked
to life.
The idea was to see the world from the eyes of a common man, someone who isn’t
completely aware of our presence. But as the film unfolds, he finds out that we are almost
everywhere, and that many of the things that he took for granted are in fact powered by our
technology. In order to initiate this process and give the brand a face, a protagonist was
introduced - the HCL employee. And thus the ad becomes a chance encounter of two people
from different ends of the same spectrum. It’s the story of - The Hitchhiker. And the campaign
became the "Technology that touches lives."

PRINT:
While television brings the brand to life in a powerful way, it is the role of print to
expand and give depth to the message. Thus we did a print campaign where various examples of
the way HCL touches lives are presented. Each ad addressed a specific target group and
highlights the facts relevant to that target group. The entire campaign had a consistent HCL
signature look.
SURROUND
In our current campaign, "surround" plays an integral role in reaching out to our
consumers and employees in their daily life. Outdoor advertising is primarily used as a reminder
medium for the entire campaign, with a consistent message of "Technology That Touches lives"
and” HCL : A $ 5 Billion Enterprise”. Other elements of "surround", such as Posters, Mugs and
T-Shirts, are used to highlight the message internally to all our employees.
VIRAL:
The viral helped bring in the humour element to the whole campaign. Very successful as
an email forward, the viral represents a new medium and added a quick burst of laughs across the
audience.

02) Future Proofing The World:

One of the pioneers in modern computing , our expertise spans globally and we make a
difference.

 Innovative Services & Global Delivery Models

Myriad hues
A sunrise is one of the most glorious of sights. The myriad hues that travel the sky and
penetrate the earth transforms each and every life it touches. At a very quick pace. And it touches
everyone.
Just like that, we believe that technology is transforming lives across the world today.
HCL today makes a difference to the way corporations across the world operate. Outcome-based
pricing, multi-service delivery and the creation of new services like Remote Infrastructure
Management and Enterprise Transformation Services are some of these innovative strategies
which help companies stay steps ahead.

Infrastructure Management
Infrastructure Management is in the HCL DNA. With a 30 year expertise in Engineering
and Product development, HCL has paved the way for innovations in every space. While it was
vision that made us pioneers in IT infrastructure, we continue to maintain the top slot because of
innovation.

03) PIONEERING HERITEDGE:

They are proud of their pioneering heritage in India and take forward the pioneering spirit
to all our ventures

Our Heritedge
Usually the word heritage is associated with one's roots - the very foundation from which
anything springs up. To HCL, the roots are the qualities of pioneering spirit and guts. The
guiding principles always remain and help the company stay on top - and the heritage of the
company is converted into 'heritegde' and allows people to grow and work in an environment that
will always provide the cutting edge. HCL has strong businesses aligned to grow with the market
trends of today and tomorrow. It is a result of its ability to adapt itself ahead and make strategic
investment in each business over time - ahead of external realities or market inflexion points.

INVESTORS:
HCL has strong businesses aligned to grow with the market trends of today and
tomorrow. It is a result of its ability to adapt itself ahead and make strategic investment in each
business over time - ahead of external realities or market inflexion points.
HCL DNA
The TIME magazine has referred to HCL as an "intellectual clean room where its
employees could imagine endless possibilities". The fact is, over the last thirty years that HCL
has been operational; the company has stood by its values and core philosophy.
Fueled by the entrepreneurial zeal of its founders, HCL developed the first indigenous
micro-computer in 1978, at the same time as Apple. Since then, HCL has had a 3 decade rich
history of inventions and innovations. Intrapreneur is the term that best describes the HCL
employees.
Ever since HCL entered into an alliance in 1970s, partnerships and HCL have been
inseparable. Bonds have been forged with partners to co - create value. Strong inorganic growth
is a testimony to the spirit of partnerships.
This entrepreneurial and win-win relationship driven culture continues to guide HCL in
all its endeavors.
LEADERSHIP:
At a time when India had a total of 250 computers, Shiv Nadar led a young team which
passionately believed in and bet on the growth of the IT industry. That vision in 1976, born out
of a Delhi "barsaati" (akin to a garage start up), has resulted 3 decades later in creating a $ 5
billion global Enterprise. From designing India's first PC at the same time as global IT peers in
1978; to working on the Boeing Dreamliner's Flight Management Systems today, HCL has
stayed a true Pioneer of Modern Computing. HCL now employs over 56,000 professionals, with
a global presence in 19 countries and a pan India presence across 360 locations. HCL's business
spans IT Hardware manufacturing & distribution, System Integration, Technology & Software
services, Business Process Outsourcing, and Infrastructure Management.
Acknowledged as a visionary by the IT industry and his peers, Shiv Nadar has often
made daring forays based on his conviction of the future. At a time when hardware was the name
of the game, Nadar foresaw the huge potential in the area of IT education & learning from which
NIIT was born. Albeit a more recent entrant in the software services space, since its listing in
2000, HCL is already among top Indian IT software majors and a force to reckon with for global
technology giants.
Shiv Nadar firmly believes that, "If you want to empower people, give them the tools.
There's enough entrepreneurship in this country to take care of the rest." He is quick to grasp
new opportunities, select a team to transform his ideas into reality and delegate the project to
competent professionals.
In January 2005 Shiv Nadar received the CNBC Business Excellence award from the
Prime Minister of India. In February 2005 he was listed by "India Today" in the Power List of
India's leaders from all walks of life, for building a global IT Enterprise from scratch in 3
decades, creating valuable JVs with marquee partners such as Deutsche Bank, and creating jobs
in Belfast when India was being criticized for just the opposite. More recently, Shiv Nadar
received the Ernst & Young Entrepreneur of the Year Award 2007 in the 'Services' category for
being "a doyen of the Indian IT industry and perhaps its chief architect". The University of
Madras awarded him an Honorary Doctorate Degree in Science in November 2007, for his
contribution to not just the IT industry in India, but also for his "transformation of technological
culture globally"
Shiv Nadar has been conferred the Padma Bhushan Award - the third highest civilian
honor conferred by the President of India - in January 2008, in recognition of not just his
contribution to trade & industry in India but also his deep commitment to public good.
Determined to give back to the society that nurtured him, Shiv Nadar has been quietly supporting
many critical social causes. He founded the not-for-profit SSN College of Engineering in
Chennai, which is today among the top ten private engineering colleges in India, enabling world
class higher education for students across socio-economic strata. Shiv Nadar is also building
"VidyaGyan" public schools in Uttar Pradesh that will provide free, world class education to
rural children from economically disadvantaged backgrounds. His belief is that quality education
to a select few will take the positive impact of education to where it can truly uplift & transform
lives and help narrow the socio-economic divide. He is an active member of the Executive Board
of the Indian School of Business (ISB), Hyderabad. Concerned with the public health issues in
India, Shiv Nadar is involved with the Public Health Foundation of India (PHFI) - working to
establish standards in public health education and to create a network of innovative world class
India-relevant institutes of public health. He also supports initiatives for the girl child and the
empowerment of women.
Shiv Nadar currently resides in Delhi with wife, Kiran and daughter, Roshni.

HISTORY:
THE INITIAL YEARS:
Developed the first indigenous micro-computer at the same time as Apple and 3 years
before IBM's PC – in 1978. This micro-computer virtually gave birth to the Indian computer
industry. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-
processor Unix in 1988, three years ahead of Sun and HP.

THE GROWTH PHASE:

Along with the swiftly growing software technology industry, HCL, which was hitherto
known as the pioneer in modern computing made the advent into software development. HCL's
R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services
arena.
THE WORLD PHASE:
Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest
BPO operation, and manages the network for Asia's largest stock exchange network apart from
designing zero visibility landing systems to land the world's most popular airplane. And this it
does across 19 countries and across 360 service locations in India.

YEARS OF GROWTH
1976 Hindustan Computers Limited (HCL) is born.

1977 Forms Distribution Alliance with Toshiba for Copiers and notebooks
1978 HCL Successfully ships in-house designed Micro-computer at the same time as Apple.
Indigenously develops an RDBMS, a Networking OS and a Client server architecture,
1983
at the same time as global IT peers.
1986 HCL becomes the largest IT company in India.

1989 Introduces fine-grained multi-processor Unix 3 Years ahead of “SUN” & “HP”.
HCL-Hewlett Packard JV develops multi-processor Unix for HP and heralds HCL’s
1991
entry into contract R&D.
1994 Forges distribution Alliances with Ericsson Switches and Nokia Cell Phones.
1997 HCL’s R&D spun-off as HCL Technologies – marks advent into software services.
 Joint Venture with Deutsche Bank.
2001
 Acquires British Telecom’s Apollo Contact Center in Belfast, Northern Ireland.
HCL becomes the first company to cross the 100,000 unit milestone in the Indian
2003
desktop PC market.

 HCL Technologies get accorded by MetaSpectrum with Leaders status in offshore

2004 outsourcing.
 HCL Info systems continues to be the largest manufacturer of PC’s in India.

 Joint Venture with NEC, Japan.

2005  HCL sets up first Power PC architecture design center outside of IBM.
 HCL Infosystems launches sub Rs.10000 PC.

 HCL ties up with Apple for iPod distribution.

2006
 HCL Technologies signs largest ever software services deal with DSG.
  HCL as an enterprise crosses $4 billion watermark.
 HCL announces opening of its second European outsourcing facility in June with
the establishment of a delivery center in Krakow, Poland.
 HCL enters a US$30 mn partnership with Konica Minolta Group (KM), to provide
software Services. This is one of the largest engagements in the country, with a
2007
Japanese Company.
 HCL commences production in its ISO 14001 and ISO 9001:2000 certified –
second manufacturing facility in Rudrapur,Uttaranchal HCL Infosystems wins
CNBC Awaaaz consumer award for desktops HCL BPO is world’s first BPO to
get PCMM certified.

AWARDS
CORPORATE AWARDS:

India's Most Preferred Personal Computer Brand by CNBC AWAAZ

Consumer Award 2007

 India's 'No. 1 PC Vendor' consecutively for six years.

 HCL among the Top 3 IT companies for the last 3 years, DQ & IDC,
Best Employer Survey, 'Best employer 2005' with Five Star Ratings.

'Top 50 in ET Top 500 Companies' Listings for 2006”

Top 21 companies in Business Standard 1000 Ranking 2006

 Top 50 Fastest Growing Technology Companies in India & 'Top 500
Fastest Growing Technology Companies in Asia Pacific' by 'Deloitte &
Touche'

'The Most Responsive Company 2005' - IT Hardware Category by The

Economic Times - Avaya GlobalConnect

'7th IETE - Corporate Award 2005' for performance excellence in the

field of Computer & Telecommunications Systems

GLOBAL RECOGNITION

Cover story on HCL in Forbes Asia in June 2007

'The world's most modern management " with reference to Employee First

HCL Technologies ranks 76 in the list of Fastest Growing Global

Technology Companies

Case study on HCL is now taught at Harvard.

The case study focuses on HCL's unique transformation over the last 2
years, and highlights HCL's Employee First philosophy.
 The TIME magazine has referred to HCL as an "intellectual clean room
where its employees could imagine endless possibilities."

PARTNERSHIPS:
HCL has always prided itself on its partnership engagements. Partner models are also
evolving in the technology industry. Innovation has extended into the ecosystem and community
based engagements are coming into play. HCL has also enhanced its relationships with partners
and is creating a variety of innovative partnership models, with various approaches to risk-
reward sharing. Some of the notable partner engagements

1977 Leading position on office Automation and Laptops in India

1981 Scripting an era of computing across the Microprocessor

1985 Strategic relationship that has seen the computer evolve from a
computing device

1996 Dominant position in mobile handset market in India

2004 Partnering in computing and providing IT Services

1991 - 96 Created the HP brand for computers in India

1996 - 2003 Significant IT Services with quarter billion dollar enterprise

value
2001 - 2005 First Indian BPO Global Delivery Centre, currently
employing 2000 UK nationals
2001 - 2005 First Indian BPO Global Delivery Centre, currently
employing 2000 UK nationals

2005 First Japan- India hi-tech JV for Product Engineering Services

2006 Industry First "End-To End" Product Lifecycle Solution for OEMs
1996 Cisco on cutting edge networking technologies in an Industry
leading Risk Reward model. This is the largest development center for
Cisco outside of Cisco, with 1600+ Software Engineers. 47 patents from
this center have been filed by Cisco.
1996 - 2003 HCL partnered with Nokia to distribute their mobile phones
in the burgeoning Indian market. Nokia today has more than 70%
market share and the best service network in the country.
2001 - 2005 HCL set up the first Indian BPO Global Delivery Centre in
Northern Ireland. It currently employs 2000 UK nationals.
2001 - 2005 HCL partnered with DB to create a large delivery center at
Bangalore. This center offers the widest range of Capital Market
Services.
2005 HCL is working with Boeing for the 787 Dream liner program.
In addition, across its aerospace practice, HCL works with 20 of the
world's leading aviation companies.
2006 HCL has set up a center for IBM which is the First Power PC
architecture design center outside of IBM. HCL has the license to use the
Power PC architecture to build new products.
2005 HCL has a Joint Venture with NEC, and this is the only one of its
kind between an Indian IT major and a global Japanese conglomerate.
 Core engineering work in the area of High-Performance Computing and
Grid Computing is the key focus of this JV.

Market Analysis:
India has one of the lowest PC penetration rates in the world at less than 3% as per latest
available reports from of Information Technology, GOI. Other developed and emerging
economies have much higher PC penetration rate

COUNTRY PC PENETRATION
INDIA 02/1000

CHINA 11/1000

USA 60/1000
NORWAY 110/1000

India is expected to sell around 4.7 million PCs as compared to 21 million for China. In
order to reach at China’s PC penetration levels India needs to grow its PC manufacturing at
CAGR of ~30% for next 5 years. With rising income level, increasing awareness about
computers through school level education combined with GOI project the penetration level in
India is set to grow many fold ‘s readiness project the penetration level in India is set to grow
many folds in coming years.

PC manufacturing industry in India is dominated by three kinds of players:

 Indian Manufacturers (Zenith, HCL, Wipro etc)

 MNCs (HP, Lenovo, Dell, Sony etc)

 Unorganized assembled

India is expected to sell around 4.7 million desktops in FY2005 3.6 million in
FY2004FY2004-05. The desktop assembled brands, which account for ~40% of sales followed
by MNC brands and Indian Laptop market is showing very high growth in recent years due to
increased usage in higher education segment (MBA colleges institutes) and surge in home usage.
Business segment does not contribute much to growth because of data insecurity issues shown a
CAGR of ~100% over last 2 years. not have an unorganized assembled market. All the sales are
accounted for by MNC and Indian brands. Absence of unorganized market gives this segment
high pricing power as compared togives India is expected to sell around 4.7 million desktops in
FY2005 05 as compared to 3.6 million inFY2005- FY2004-05. The desktop market is dominated
by unorganized assembled brands, which account for ~40% of sales followed by MNC brands
and showing very high growth in recent years due toes increased usage in higher education
segment (MBA colleges and other such educational institutes) and surge in home usage.
Business segment does not contribute much to because of data insecurity issues related to a
laptop. The laptop market has shown a CAGR of ~100% over last 2 years. Unlike desktops,
laptop market does not have an unorganized assembled market. All the sales are accounted for
MNC’s and Indian brands. Absence of unorganized market gives branded players in this segment
unorganized high pricing power as compared to desktop segment.

CAGR%
2006 2011
2006-11
HARDWARE (%) 54.9 50.9 18.5

SOFTWARE (%) 5.9 5.0 17.8

SERVICES (%) 39.3 44.1 23.2

TOTAL ICT
9,632 24,313 20.4
MARKET ($M)
 Profitability of the segment
India: hardware, software and service share of domestic IT market, 2006-2011
Source-Gartner
DesktopCost Structure
Monitor

21% Keyboard
35%
Casing
6%

Motherboard
9%
4% Memory
21%
Harddisk

Manufacturing PC is essentially a business of assembling components from OEMs like

Intel, AMD, Seagate etc and branding the manufactured unit for end customers. The cost of
components is the major cost element in the price of PC to the tune of around 80%. The margin
for a business dependent on the manufacturer relation with OEMs, which determine the cost of
component for him. Apart from this margin depends on branding power of the manufacturer.
Prices of hard disk, memory, and processor constitute majority of the total cost. Thus
relationship with OEMs of these majority components is very important for any player to
determine the overall margin for its final product.
 There is substantial difference between costs of same component for a laptop as
compared to the same component of Desktop. Majority of difference lies in costs of hard disk
and processor. Overall the cost differential between a laptop and desktop based on components
only is around 30% for the same configuration. At the same time difference between a laptop and
desktop of the same configuration stands at around 60%. This enables players to have better
margins in case of higher players proportion of laptop. Absence of an unorganized assembled
market in laptop segment enables. players to have more pricing and branding power as compared
to a desktop product. This also helps in commanding better margins in laptop business.
Lenovo:
Lenovo is an Innovative, international technology company formed as a result of the
acquisition by the Lenovo Group of the IBM Personal Computing division. As a global leader in
the PC market, they develop, manufacture and market cutting-edge, reliable, high quality PC
products and value-added professional provide customers around the world with smarter ways to
be productive and they can be ascertained as a bitter rival of HCL.

Compaq & HP:

Compaq India is a subsidiary of Compaq that was founded in 1982 in Houston, USA.
Compaq in India has huge market even after its merger with Hellwet Packard (hp). Compaq's
desktop, notebooks and accessories are the main products manufactured by Compaq in India.
The Hoston based company works with main focus on computers and servers. It captures about
25% of Indian hardware market. The two IT giants can pose a threat to domestic conglomerates
like Infosys, Satyam Computers etc. In Bangalore Compact Computer Corporation has launch an
online store launched This facility will be used by Compaq India to sell its products like the
Presario range Notebooks Laptops, iPaq Desktops SB Series, fingerprint ID and smart card
reader in the online store. The e- store is of great help to the customer
HP is a technology solutions provider to consumers, businesses and institutions globally. The
company's offerings span IT infrastructure, personal computing and access devices, global
services and imaging and printing for consumers, enterprises and small and medium businesses.
HP itself isand not a great threat to HCL but its subsidiary Compaq has emerged as arch rival for
HCL, its online store can be a strategy that is very important to check. HCL‘s Digilife is good
step but it needs a close watch.

ACER
Acer Incorporated founded by Stan Shih, his wife Carolyn Yeh, and a group of five
others in 1976, was renamed Acer in 1987.It is a Taiwanese multinational electronics
manufacturer. It owns the largest franchised computer retail chain in Taipei, Taiwan. Acer is the
third largest computer manufacturer in the world (by sales) after HP and Dell Inc. and its
product line-up includes desktop product and mobile PCs (laptops),as well as personal digital
assistants (PDAs), servers and storage, displays,),as peripherals, and e-business services for
business, government, education, and home users. Its product business range has Desktop
computers Notebook computers: Travel Mate, Tablet PCs, Aspre series, Extensa computers:
series and Ferrari series.

Sony
One of the most recognized brand names in the world today, Sony Corporation, Japan,
established its India operations in November 1994, focusing on the sales and marketing of Sony
products in the country. In a span of 12 years Sony India has exemplified the quest for excellence
in the world of digital lifestyle becoming the country’s forem consumer electronics brand, with
relentless fore most electronics commitment to quality, consistent dedication to customer
satisfaction and unparalleled standards of service. Sony India is recognized as a benchmark for
new age technology, superior quality, digital concepts and personalized serviced With brands
names such as BRAVIA, Xplod, Sony hi Handy cam, cyber hi-fi, cyber-shot, WEGA, VAIO,
Walkman, Memory stick‚ PlayStation an AIWA, Sony has as a value leader across its various
product categories of Audio/Visual Entertainment products, Information and Communications,
recording media, business and professional products. Sony cannot be considered as major
problemecording for HCL as its target segment is different than that of HCL but very soon in the
future HCL can easily upgrade to cater the need of this segment.

Dell
Dell, Inc. is a multinational company based in Round Rock, Texas struggling to settle
down in Indian market and it develops, manufactures, sells, and supports personal computers and
other computer- related products. it held the second spot in computerecomputer-sales within the
industry behind the Hewlett- Packard Company. The company currently sells personal
computers, servers data storage devices,.servers, network switches, software, computer
peripherals and televisions. Inspiron, Studio, XPS, Alienware, are some brands from Dell.

Fujitsu
Fujitsu is a company, that is a new entrant in Indian Market, specializing in
semiconductors, computers (supercomputers, personal computers servers), telecommunications
and services, and is computers telecommunications, headquartered in Tokyo. Internationally,
Fujitsu considers IBM to be its main competitor. Some of its major products are Lifebook
notebook computers, Mobile Phones. Tablet personal computers, pen based computers.

HCL BRAND STRATEGY

Common branding and rationalization helped the HCL duo clarify their focus, even as
handsets continued to dominate revenues
Group HCL went back to its roots in 2004-05, becoming a unified brand through project
Heartbeat. The following year saw no real impact of the unification on business or stock price
(which is anyway down). Company sources say the branding was a success, though: it helped in
strengthening employee pride and streamlining some processes--and perhaps arresting attrition.
Overall, the two entities continued to be very distinct, though the process may have helped them
focus better. HCL Infosystems (HCLI) sells 'infrastructure, services, solutions' for the domestic
market, having handed over its exports ops to HCL Tech in 2004. Of the services it sells in India,
application services are delivered by HCL Tech.
It has always been an asking task to give a human face to technology. But for the Indian
technology giant, HCL Technologies, it wasn't very difficult to showcase how over the years, the
company had unwittingly become an integral part of its consumers life.
After all, HCL has been India's sole hardware brand for decades. So, in April 2007, when
HCL decided to give itself a modern and global face, the domestic tech giant picked its own
employee to make a communication splash.
With a telling tag line, Technology that touches life, the commercial began with a
hitchhiker (an employee of HCL) taking a lift from an investment banker. During the journey,
the hitchhiker explains how HCL Technology is an integral part of everyone's life. Exactly a year
later in April 2008, HCL technologies came up with a sequel to the ad in which the world is
shown coming to the employee and talking about HCL making an impact in their lives.
If you are still wondering why an employee was the chosen one for this task, ask M.
Sundararajan, associate vice-president, marketing, HCL Technologies. "HCL's 55,000 employees
are the very heart of the company and key among HCL's stakeholders and HCL's catch phrase.
What better route therefore than to use the HCL employee as the protagonist, which instills a
sense of pride and a strong connect with the brand," says Sundararajan.

Small wonder that unlike MNCs in the domain,

the brand has steered clear of roping in a celebrity
ambassador till date. And the strategy has indeed paid off.
A brand tracking research conducted by IMBR, revealed
that HCL leads in the 'Top of The Mind Recall' amongst
IT companies and has an equally high 'Spontaneous
recall'.
Before 2005, HCL Technologies had largely focused on product based advertising, given
the dominating nature of its enterprise business. In January 2005, they began working on a global
branding initiative with an objective to unify the global enterprise and connect with all
stakeholders.
That was when they launched the 'Fearless' campaign – a print-led TV campaign, which
brought out the core HCL values of Guts, Courage and Passion. A year later, HCL entered the
second phase that was the 'Talking Numbers' campaign, 0 and 1 (the binary digits) were taken as
HCL's brand ambassadors.
This is currently the third phase of the advertising strategy for HCL, 'Touch Technology'
where the brand communication has a single thread – HCL expressing technology in many
different ways.
From a fuddy duddy image to an energised technology giant hurtling with speed and
connecting with the global Indian, HCL has indeed begun to touch lives, at least the 30-second
variety.

HCL Peripherals, A Strong Brand Name across India:

Successful product(s) and company names may appear to have been reaching their
coveted ame positions by luck or magic, but in fact they have been strenuously managed and
nurtured in a planned and strategic way. It is possible to evolve Companies and Brands to be
dynamic, effective and fully leveraged to its brand’s potential if one has the right process in
place. A process that is clear, insightful, logical and focussed will lead to a name and tagline that
are powerful components of your brand strategy, and pave the way for business success and lead
brand equity.
 Building a brand image is more important for IT companies than mere branding. You
launch a new product on the shelves, and your competitors will have a similar one, possibly an
improved one, in a relatively short span of time. Moreover, the cautious nature of a consumer in
taking a final decision with regard to a technology product makes life more difficult when
persuading them to buy. In such circumstances, the brand equity and the act of image building
assumes more importance. It is the brand, which can make you stand out in the crowd. Hence,
brand image is everything. The company wants the brand to be seen and relate itself to its target
audience.
The objective should be to command a lead brand equity and be a market leader in each
of the markets one serves. Then, one will strategise their business by providing their VARs
(Value Added Resellers), VAPs (Value Added Partners) and end- customers; innovative, high-
quality, cost-effective and environment-friendly products. Later, the corporates will add value to
these products by providing customer service through their uncompromising commitments to
ensure customer satisfaction and brand loyalty. Working on the same lines is the company HCL
Peripherals, based in Chennai (India).
Though HCL is a three-decade-old enterprise and is India’s original IT garage start-up,
HCL Peripherals had its inception in 1983 as a Strategic Business Unit of HCL Infosystems Ltd.,
and, since then, it has grown by leaps and bounds and has emerged as a leader in its business
verticals.
HCL Peripherals started its operations primarily with an objective to manufacture very
competent and state-of-the-art quality products for the captive consumption of HCL. Thus, it all
started as a manufacturing unit for the production of monitors, keyboards and later ventured into
OEM business making the best use of its Global Standard Manufacturing facility. Later on,
steadily the company further expanded its operations and made an entry into channel business
too. Meanwhile, in the due process, the company was also having customized products like Unix
Terminals, Terminal Servers for Indian Railways, Telecom etal. Steadily, the company
diversified into Embedded Technology and Networking products/project implementations.
The company’s core competency lies in strong technology-centric domain knowledge and
expertise in IT products and IT-enabled Services.
HCL Peripherals product-mix encompasses:
Technology Products:
Thin Clients, UNIX Terminals, Terminal Servers, Remote Access Servers, ATVM (Automatic
Ticket Vending Machines)

Display Products:
CRT/TFT Monitors, Mechanical/Bilingual Keyboards, Industrial Touch Screens and Display
Management Dsevices.

Networking Products & Solutions:

LAN, WAN, MAN, Security, Storage & Wireless Solutions, RAS & RAS Mgt., Structured
Cabling Solutions (Copper & Fiber), N/W Racks, KVM Switches; Networking Services: N/W
Integration; System Integration; AMC

Networking Racks:
Wall Mount Racks, Floor Standing Racks, CPU Stands and Custom- made Server Racks, KVM
Switches (IP / Non- IP). Kiosks: Communication Kiosk, Interactive Kiosk.

Marketing and R&D Strategy:

To support HCL Peripherals aggressive marketing and R&D strategy, the company has
manufacturing units at Pondicherry and Chennai. These facilities are equipped with state-of-the-
art machineries; both Pondy and Chennai plants have been awarded with ISO 9001:2000
certifications for manufacturing global standard quality products.
HCL Peripherals has executed many branding exercises, including branding
advertisements on a 360-degree perspective, hoardings, signages, channel & end-user schemes;
conducting seminars, road shows and events that are intertwined around specific occasions/
festivities and sales-melas. Those things apart, branded e-mailers/EDMs are also sent to the
target audience, POP/POS Branding and a few novel promo-tools and techniques are also taken
up by the company.
The parent company HCL Enterprise is a leading global $4.8 billion enterprise and it
comprises of two companies listed in India - HCL Technologies and HCL Infosystems. The 3-
decade-old enterprise was founded in 1976. Its range of offerings span Product Engineering,
Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems
Integration, and distribution of ICT products. The HCL team comprises over 55,000
professionals of diverse nationalities, who operate from 18 countries, including 360 points of
presence in India. HCL has global partnerships with several leading Fortune 1000 firms,
including leading IT and Technology firms.
As a brand, HCL is present in over 360 locations across the country, including the cities
like Ahmedabad, Bangalore, Baroda, Bhopal, Bhubaneswar, Chandigarh, Chennai, Cochin,
Coimbatore, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Kozhikode, Lucknow,
Madurai, Mumbai, Nagpur, Noida, Patna, Pune, Raipur, Ranchi, Thiruvananthapuram, Trichy,
Vijayawada, Visakhapatnam, etc. “Powerful brands have distinct personalities. But even
dominant brands can fade if they fall prey to multiple personality disorder. Establishing a clear
brand position and most importantly being consistent and ensuring the brand campaign always
retains its fresh appeal is what makes the brand grow big and remain to have a top-mind-share,”

Finally…
For 2008, the company is investing to expand its reach and strengthen the
channels/business associates and the customer’s HCL brand mind share through various Brand
promos, events, customer/channel-based activities and programmes.

SWOT ANALYSIS OF HCL

STRENGTHS:
HCL’s strengths are many, to mention a few:
a) Global Presence:
 • Its collaborations and joint ventures with international companies such as Perot
System, and partnership with world leaders like Ericsson, Toshiba, Nokia, Oracle and
Microsoft, enable it to bring the best technology available world wide to its consumers.
• 24 locations in 16 countries.

b) Fast paced and flexible work culture which provides its employees autonomy to
accomplish the task without much pressure from the higher authorities. Thus, employees
are motivated to give their best to the organization.
c) The core strength of HCL is the talent and innovativeness of its people which enables to
provide the “right solution at the right time.”
d) The mass markets handled through a chain of dealers, resellers and retailers which helps
bring technology usage closer to the individual. It has very strong distribution network.
e) Its pool of competencies: Hardware, Software, Training, Networking, Telecom and
System Integration.
f) Ability to understand customer's business and offer right technology.

g) Long standing relationship with customers.

h) Pan India support & service infrastructure.

i) Best-value-for-money offerings.

WEAKNESSES:
a) After sales service.

b) Less promotional campaigns.

OPPORTUNITIES:
a) IT industry booming at a rate of 45% every year.

b) Increasing consumer awareness about IT and its use.

c) Tremendous untapped potential of IT products in India.

d) Increasing competition.

e) Tie ups with various MNCs enable to extract their core competencies.

THREATS:
a) Local assemblers are biggest menace for the company.

b) Entry of MNCs i.e. IBM, Compaq giving direct competition.

c) Govt. instability has a long term repercussions affecting company’s policies & its growth.

d) Technological shift as a result of research & development. Daily new technologies are
emerging.

Concluding the S.W.O.T. analysis in words that prosperity lies ahead for HCL. In order
to retain its position as India’s No. 1 IT conglomerate, it has to come out with the state of art as
well as futuristic technologies to its consumers well before time.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT (CRM)?

CRM is a term that is often referred to in marketing. However, there is no complete
agreement upon a single definition. This is because CRM can be considered from a number of
perspectives. In summary, the three perspectives are:

1. CRM from the Information Technology Perspective.

From the technology perspective, companies often buy into software that will help to
achieve their business goals. For many, CRM is far more than a new software package, the
renaming of traditional customer services, or an IT-based customer management system to
support sales people. However, IT is vital since it underpins CRM, and has the payoffs
associated with modern technology, such as speed, ease of use, power and memory, and so on.

2. CRM from the Customer Life Cycle (CLC) Perspective.

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle
(PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the
customer i.e. looks at the products of services that customers need throughout their lives. It is
marketing orientated rather than product orientated. Essentially, CLC is a summary of the key
stages in a customer's relationship with an organization.

3. CRM from the Business Strategy Perspective.

The Business Strategy perspective has most in common with many of the lessons and
topics contained on this website, and indeed within the field of marketing itself. The diagram
below shows the Marketing Teacher Model of CRM and Business Strategy. Our model contains
three key phases - customer acquisition, customer retention and customer extension, and three
contextual factors - marketing orientation, value creation and innovative IT.
 CRM MODEL

A commonly cited definition of CRM is that of CRM (UK) Ltd (2002), as follows:
Customer Relationship Management is the establishment, development, maintenance and
optimization of long-term mutually valuable relationships between consumers and organizations.
The relationship delivers value to customers, and profits to companies. The relationship is
supported (but not driven) by cutting edge IT. The business strategy is based upon the
recruitment, retention and extension of products, services, solutions or experiences to customers.
This is the core of CRM.

Sources and methods of data collection

Data that is collected for the project on the basis of Judgemental sampling method
respondents were asked to fill up a questionnaire. Later an analysis of the response is done so
that we can understand the basic buying behaviour, their needs, their demand, awareness, and
expectation they have with the Brand.

Key Findings:
I came to know that marketing not only comprises of 4P’s (Price, Place, Product,
Promotion) but there is still scope for more. Secondly a huge price pressure is there, one can
easily watch how 4P’s is applicable in market.

Marketing also comprises of 4A’s (Analysis, Attention, Acceptance, Action) as follows:

Analysis:
Time needs to be earmarked to determine the drivers, emotional and logical needs, and
traditional and psycho graphic nuances of the intended audience. This step allows focus and
micro- segmentation and a significant decrease in marketing cost.

Attention:
Once you've identified who are the core prospect for your products or services is,
creative. efforts must be taken to get and maintain their attention.
Accept:
You must use the tools of copy, design, social networks psychology and repetition to get
the intended audience to accept that your solution is the best one to take. This acceptance must
take place despite the fact that your solution is just one of many options available in an
increasingly saturated marketplace.

Action:
The prospect has to act on their acceptance of your proposition by doing whatever it is
you want them to do Generally, this might be making one or more purchases (be sure your
marketing strategy includes opportunities for buyers to evangelize their positive purchasing
experiences to others). It may also be picking up a phone or responding to a direct mail offer or
fundraising effort or petition drive. The 4As, used correctly and consistently, result in
measurable, traceable return on marketing investment

Result of survey

Male Preserve: The fact that over 82% (compared to 18%) of the respondents were male
shows that respondents computers are still largely a male preserve.

0
0
18%
Male
Female
82%

Computers – The Technology of the Youth: 50% of the respondents were under 24 and
22% between 25 and 30 years. Clearly, then, computer use based knowledge is limited to the
young and very young. In terms of marital status, 63% of the respondents are single and 36% are
married—yet another statistics that youth.

Expertise: About 27% of the respondents consider themselves as “expert” users, while another
53% say they are quite “knowledgeable” about computers.
 0

20% 27% Expert

Knowledgeable
53% ??????

Desktop versus Laptop: 73.9% respondents like to buy laptops than desktop as there is very
less price difference in between them.

Hours of Use per Week: According to the self report data, the household uses the computer
on an average 27 hours per week. However more than 50% of the computer using households
use it for more than 20 hours per week.

Internet Use: The Internet is most frequently used for sending and receiving e-mail. Gender
differences in the usage of Internet exist in the areas of online chatting, which is significantly
higher for women. Men on the other hand exhibit higher usage for sports information and also to
do job related work, sending faxes etc.
Computer Non-Owners: About 42% of the households who do not own a computer
currently intend to buy computer in the near future. Among those intending to buy, about 55%
intend make a purchase within the next 6 months.

Rating of HCL as a brand: About 52% of respondents rated HCL as a good brand whereas
30% said it as a very good brand

Effect of configuration: about 44% respondents said the configuration matters highly for
them whereas 18% said it doesn’t matters.
Mode of payment: Around 65% of the people said that they will buy laptop if price of the
laptop can be paid in installments.

After sales services: 65% respondent feels that after sales service plays a very important role
in purchase of computer.

Looks and price: Majority of people said that there choice of laptop doesn’t depend on look
but it depends on price

Attitude toward Computers: The commonly held attitudes / belief’s among all computer
owners with regard to the role of computers at home are:

• Knowledge of computers is essential to keep-up with the changes.

• Computers are not at all difficult to use and contribute time savings at home.
• Computers have become part of the daily routine in the family and are essential as any
other as any other appliance at home
• It is difficult to imagine life without computers at home.

Discussion:
Marketing has got four pillars on which it is standing but no structure can stand only on
foundation but it needs several more things that makes a building live and four more thing
encompass 4A’s that is analysis, attention, accept, action these four A’s are verb that must be
considered by every marketer 4P’s are noun that make him to understand the quality, but only
thinking had never taken anyone to anywhere. Understanding must be accompanied by
appropriate action. First three ,analysis, attention, accept are invisible but before taking any
action it must be proceeded by understanding the problem, thinking about all the alternatives
attentively and then taking appropriate action. No two problems are exactly alike one must see
all the available option. Another model to decide about the charm of any industry is given by
well known management guru, Michael Porter and it is famous in the world of management as
“Michael Porter's Five Forces of Competitive Position Model”
Let us first understand what this model says:

The Competitive Forces analysis is made by the identification of 5 fundamental competitive

forces:

 Entry of competitors:
How easy or difficult is it for new entrants to start competing, which barriers do exist.

 Threat of substitutes:
How easy can a product or service be substituted, especially made cheaper.

 Bargaining power of buyers:

How strong is the position of buyers? Can they work together in ordering large volumes.
  Bargaining power of suppliers:
How strong is the position of sellers? Do many potential suppliers exist or only few potential
suppliers, monopoly?

 Rivalry among the existing players:

Does a strong competition between the existing players exist? Is one player very dominant or are
all equal in strength and size.

 Threat of New Entrants depends on:

Economies of scale, Capital / investment requirements, Customer switching costs, Access to
industry distribution channels, Access to technology. Brand loyalty. Are customers loyal? The
likelihood of retaliation from existing industry players. Government regulations. Can new
entrants get subsidies?

 Threat of Substitutes depends on:

Quality, Is a substitute better? Buyers' willingness to substitute. The relative price and
performance of substitutes. The costs of switching to substitutes. Is it easy to change to another
product?

 Bargaining Power of Suppliers depends on:

Concentration of suppliers. Are there many buyers and few dominant suppliers? Branding, is the
brand of the supplier strong? Profitability of suppliers. Are suppliers forced to raise prices?
Suppliers threaten to integrate forward into the industry. Buyers do not threaten to integrate
backwards into supply. Role of quality and service. The industry is not a key customer group to
the suppliers. Switching costs. Is it easy for suppliers to find new customers?

 Bargaining Power of Buyers depends on:

Concentration of buyers. Are there a few dominant buyers and many sellers in the industry?
Differentiation, are products standardized? Profitability of buyers. Are buyers forced to be
tough? Role of quality and service. Threat of backward and forward integration into the industry.
Switching costs. Is it easy for buyers to switch their supplier?
  Intensity of Rivalry depends on:
The structure of competition. Rivalry will be more intense if there are lots of small or equally
sized competitors; rivalry will be less if an industry has a clear market leader. The structure of
industry costs. Industries with high fixed costs encourage competitors to Industries manufacture
at full capacity by cutting prices if needed. Degree of product differentiation. Industries where
products are commodities (e.g. steel, coal) typically have greater rivalry. Switching costs.
Rivalry is reduced when buyers have high switching costs. Strategic objectives. If competitors
pursue aggressive growth strategies, rivalry will be more intense. If competitors are merely
"milking" profits in a mature industry, the degree of rivalry is typically low. Exit barriers. When
barriers to leaving an industry are high, competitors tend to exhibit greater rivalry. Now let us
see how porter model works in real life situations.

 Entry of competitors:
A PC maker does not require very high investment because the parts of desktops are procured
from other manufactures most of the unorganised assemblers does this thing only. Therefore we
can say that the entry barrier for this industry is low. Secondly after liberalisation of Indian
economy various MNCs have entered in India they have huge pool of resources resulting a tough
competition is laid this has made the Indian economic very turbulent.

 Threat of substitutes:
Technology changes very rapidly in some of sectors and personal computing is one among
them, the product life cycle in this type of industry are very small therefore no one can guess
when the current technology is going to be outdated and a substitute can replace the product.

 Bargaining power of buyers:

Every organization whether government, public or private is going for computerization hence
they require PCs in bulk so they have high bargaining power. Individual customers are also there
but they have low bargaining power results a balance in the market.

 Bargaining power of suppliers:

Supplier also have high bargaining power as the number of players are less and plc is low since
manufacturing requires heavy investment, so these companies i.e. OEMs creates extra pressure
over the PC makers.

 Rivalry among the existing players:

Since the margin in this sector especially, laptops and notebooks, is quite good therefore this
sectors have many players. And presences of many players create a cut throat competition among
players and because of tough rivalry the amount of margin are going lower day by day.

 Application of Five Forces on Retail Store:

While working in retail store again we can realize the validity of “Five Forces”. Retail store is
once again much lower investment therefore each day there is possibility of neighborhood
jumping in the same business as yours. Secondly big Malls and Super Stores are also posing
great challenge to the retailers and many time the company owned showrooms also opened
whose wide recourses can cause fatality to small retailers. Being a small retailer they don’t have
much threat for substitute as the exit barrier is low for them. But the company whose retailer was
he might come in problem as the loyalty of retailer is changed, this may cause important
information to be passed to the competitor of the company.
Being a retailer they don’t get the benefit of economy of scale resulting the overall cost
is not as low as it is with big retail store chain or with company owned shops. Therefore the end
user or customer has much more bargaining power. This results lowering the margin and again
the chances of switching the loyalty or either to quitting the business becomes more.
Since the retailer is small they have very less bargaining power against the company that
looks like giants in front of them. Most of the companies don’t give price protection to them.
Many small accessory are required with a personal computer therefore the retailer has chance to
utilize the impulse buying behavior, that can be seen very commonly in any retail store, therefore
he needs some products as mouse, pen drives headphone etc.

 Types of customer and Non customers:

To succeed in any business a firm should understand the psycho of customers, they should
understand what is going inside the mind of customer because marketing is a game of brain
where heart can also be combined to see the full scale application of various principle. A
customer should be offered a product that makes him delighted. Every company should
understand why a customer is switching towards the products of another company. Human
psychology tells that it resist change that means humans mind resist any type of change,
therefore we can conclude that customer turning towards other company is not satisfied with the
current offering of company, his requirements as not met. Then a question arises how one can
find what customer wants? The answer to this question is hidden in market research. It reveals
the various attributes of demands by customer and company should align itself and its product in
that direction similar to thinking of customer For e.g. Sony offers its laptop in different colours
where as customer. all the products of HCL are in one single colour (with different shades of it)
but our survey pointed out with that customer is highly conscious about the looks of notebook.
When Dell understood this requirement of customer they introduced XPS series of notebook in
various colors.
When a company takes such type of steps customers think that company is taking care of
them and it create a feeling of association in the customer’s mind.
Now let us talk about noncustomers, these are those people who don’t buy product of our
company. They can be segmented into three tiers first tier is the group of people who are actually
our customer but they are on verge of being lost as they can switch any time to our competitor if
this segment is not taken due care the company is going to lose them at any momentum we all
know that retaining old customer is 8 times less costly than getting new customer. Therefore
company must consider seriously why they are in first tier.
The Three Tiers of Noncustomers

First Tier: “Soon-to-be” noncustomers who are on the edge of your market, waiting to jump ship.

Second Tier: “Refusing” noncustomers who consciously choose against your market.

Third Tier: “Unexplored” noncustomers who are in markets distant from yours.

Second Tier are those customer who had never tried our product since they are the
refusers consciously choose against our product therefore they are the segment that cannot be
convinced as whatever our offering will be they will surly find some of the other fault in it. They
are the most difficult to convince hence they will eat up most of the resource of company
therefore in the favour of company it is better to leave them.
The third Tier is the most promising segment as they are the unexplored customer distant
or far from the company and they are required to be explored or developed. This is called the
market space generation that is reaching to those segments who have never been offered
anything from us. It can be compared with the Blue Ocean strategy by W. ChanKim Renée
Mauborgne who suggested that the blue ocean has the lowest rivalry resulting a better
opportunity for the growth.
As it reduces some of the forces in porter’s model up to substantial degree therefore the
growth of company is revitalise. Another benefit is that we gain a large portion of customer
loyalty in favour of us. Chances are there that we can also gain the first mover advantage.
SUGGESTION AND RECOMMENDATIONS

 HCL says that it has got a wide network of service centre and they can solve any
problem within six hours but they fails on this commitment, this act make the customer
to lose his trust

 HCL should understand that push strategy is not always good but they should try to win
the confidence and heart of customers by providing them value for money.

 Promotional activities are very less therefore they should invest a considerable amount in
advertisement and as a result their brand awareness will be created or will increases

 Brand Image of HCL is very low and it is considered as cheap brand with lower quality.

 HCL is an Indian company and they should design their product according to the
customer’s requirements of India .i.e. reliability should be considered as major attribute
as we Indian like the things that last long

 Most of their products of HCL are standard product whereas now the age of customise
product is coming, its competitors a trying to provide customised productsare

 HCL should try hard to increase its Brand Equity.

 HCL should make strategic alliance with several financial organisations that can provide
instalment facilities to the customer as it can be seen from the results of survey that
customers are generally interested buying PC on installment.

 ISD (In Store Demonstrator) provided by HCL must be given some type of sales based
incentives and also training so that so that he can be motivated for more selling.

 HCL should create some factors that the industry never offers such as free training about
 using the product, as most of customers don’t know how to use the computer this will
definitely creates a brand differentiation or customers can be given subsidize Admission
in HCL CDC.

 HCL should try to raise at least some attributes of PCs that can be projected as best buy.
For e.g. sound or graphic or any other part of the visible system.

 HCL can come up some new exiting brand name that should sound technical or jazz. This
type of brand name will enable HCL to stand in front of Sony VIAO or DELL’s XPS

 HCL should add a good tag line to its name that can make the association of customer to
the company

 Company should tie up with some event management company to organize various
promotional activities like canopy, Carnival.

 Proper attention should be paid for advertisement planning otherwise it may lead to
problem for dealer as well as for company

 Company should make policy for fixed end user price for all dealers so that fair game
will be played & dealer would not to compromise on their margin.
 CONCLUSION
 Brand management play vital role for any company weather it is services or product industry.
It differ one company’s product to other and it create value for the customer.

 From the techno giant HCL it can be concluded that other way to succeed in the business is
to make succeed the distribution channel very efficient that each individuals unit can push the
product in the market and ultimately results in a higher sale. By following this strategy HCL
had managed to get on rank two with HP at number one

 HCL is also trying to gain the in-depth insight of retailing for the promotion of its DIGILIFE
stores this step of HCL will reduce its dependency on individual retailers and will also
increase its bargaining power over its distribution channel. But this can create a channel
conflict resulting the faith of retailers will go down as they can see HCL itself as threat
against them.

 A better margin will provide a boost to retailers for selling the product of HCL as much as
they can.

 The major drawback in HCL’s marketing plan is that do nothing to aware their customer
about their products.

 HCL’s current position is at number 2 but if they don’t take any action soon they will be
shifted to lower ranks and history proves this, when BSNL was the largest they didn’t
thought to accommodate with the changing business environment and they lost their number
one position within a short span of time and they are now not within the top three

At last from the project that I can conclude that to succeed in the business we must
not only depend on 4p’s that is Product Price Place and Promotion but also develop a way
to differentiate we must try to develop a new value curve and if this is achieved the whole
exercise to differentiate will give its fruit in term of higher sales
 BIBLIOGRAPHY

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