INTRODUCTION

HP ORGANISATION:

H.P. came in to existence in 1939. As HP grows, Bill Hewlett and Dave Packard create a
management style that forms the basis of HP's famously
open corporate culture and influences how scores of later
technology companies will do business. Dave practices a
management technique eventually dubbed "management
by walking around" which is marked by personal
involvement, good listening skills and the recognition that
"everyone in an organization wants to do a good job." As

Dave Packard practices

"management by walking
around"

managers, Bill and Dave run the company according to the

principle later called management by objective communicating overall objectives
clearly and giving employees the flexibility to work toward those goals in ways that they
determine are best for their own areas of responsibility.
HP becomes a publicly traded company. Its initial public offering is held November 6,
1957 for $16 per share. All employees at all levels with six months of service receive an
automatic stock grant and become eligible for a stock option program.

HP begins manufacturing
in its first building in the
Stanford Industrial Park, Palo
Alto. The move to the site at
1501 Page Mill Rd. is
completed in 1960, when it
becomes
HP's corporate
headquarters. Situated on a 50
acre
hilltop, the new site
supports
the
company
philosophy that people require

HP's new headquarters

attractive and
pleasant
surroundings
to
attain
maximum job satisfaction and
to perform to the best of their
abilities. The air-conditioned

buildings are situated to provide views of lower San Francisco Bay

and to receive maximum natural light. The site includes a landscaped
patio, horseshoe pits, volleyball and badminton courts, and a large
cafeteria, all for the use of employees.
HP continues its tradition of innovation with the introduction of a new
array of computing products. Foremost among them is the HP-35, the
first scientific handheld calculator, which ushers in a new era of
portable, powerful computing.
HP continues to look for new opportunities around the globe, laying

The HP-35, the

world's
first
scientific
handheld
calculator

the groundwork for an eventual joint venture with China over the
course of several trips by HP representatives to that country.
The decade is marked by significant growth in earnings and employment, with HP
passing the $1 billion mark in sales in 1976. The company will pass the $2 billion mark
three years later in 1979. Toward the end of the decade, Bill Hewlett and Dave Packard
delegate day-to-day operating management of the company
to John Young.
HP becomes a major player in the computer industry in the
1980s with a full range of computers, from desktop
machines to portables to powerful minicomputers. HP also
links computers with its electronic instruments and medical
and analytical products, making them faster and more
powerful.
2

HP-150 Touchscreen and

HP LaserJet

HP makes its entry into the printer market with the launch of inkjet printers and laser
printers that connect to personal computers. HP's high-quality, inexpensive inkjet printers
spell the end of dot-matrix printers. The HP LaserJet printer line, which debuts in 1984,
goes on to become the company's most successful single product line ever. The quality
and reliability of HP's printers make HP a highly recognizable brand by both consumers
and businesses.
Near the end of the decade, HP is recognized for its rich past as well as for its
technological advances and products. The garage where the
company started is declared a California historical
landmark, and HP celebrates its 50th anniversary.
At the beginning of the 21st century, HP focuses on
information HP's trading symbol on
the New York Stock
technology (IT) systems for business and improving the
Exchange becomes HPQ
on May 6, 2002.
overall experience consumers have with technology.
reducing

the

cost

and

complexity

of

On May 3, 2002, HP completes its merger transaction with Compaq Computer

Corp., the largest tech merger in history. The new HP is a leading global provider of
products, technologies, solutions and services to consumers and business. The company's
offerings span IT infrastructure, personal computing and access devices, global services,
and imaging and printing.
HP moves up the Fortune 500 listing to No. 13.
In April, Compaq unveils the iPAQ Pocket PC.
On June 2, HP completes divestiture of Agilent Technologies. As a
result of the distribution of shares of Agilent Technologies common
stock, Agilent Technologies is now a fully independent company.
Carly Fiorina is named chairman of the board of directors on
September 22.
Superdome
HP marks advances in the area of Internet infrastructure, introducing
the high-end Superdome server line in September.
In October, HP announces a new business initiative focused on emerging markets. Called
HP e-Inclusion, the program addresses the digital divide by fostering sustainable,
profitable businesses in developing countries.

In 2004, Fortune 500 ranking H.P. Ranks 11th

In January, HP announces its digital entertainment strategy: an array of products and
partnerships aimed at transforming the way people
experience music, movie, TV, photographs and digital
entertainment content.
In February, HP dual lists its common stock on the Nasdaq
stock market.

Digital
Entertainment
Center z500
In April, HP wins the Corporate Innovation Award from the Institute of Electrical and
Electronic Engineers (IEEE) for the development and commercialization of thermal
inkjet technology.
In August, new digital entertainment products are rolled out, including Vivera inks,
plasma and LCD flat-panel TVs, and the HP Digital Entertainment Center, which allows
consumers to manage music, movies and photos from a single device in a living room
setting.
HP Chairman and CEO Carly Fiorina steps down in February. In March,2005 HP names
Mark Hurd to serve as CEO and president.
In April, HP acquires online photo service Snapfish.
In July, HP announces a breakthrough, scalable printing platform. The inkjet printhead is
fabricated as one unit via a photolithographic process, rather than welded together in
post-production. HP also unveils the worlds fastest home photo printing devices.
5

COMPANY PROFILE
Production & Financial Status:
In 1988, Bryce introduced the 10K, the world's first address printer to incorporate HP
inkjet technology. Today, Bryce has produced and sold more HP-based inkjet address
printers than any other company in the world. "HP was the clear choice for Bryce back
then, and continues to be the clear choice for Bryce to this day," says Thomas A.
Herrmann, Bryce president and CEO. "HP inkjet technology enables us to provide
customers with the highest print quality, and the HP inkjet cartridges are reliable, easy to
use and readily available."
Bryce now offers 16 different address printers that utilize HP inkjet technology, with print
capabilities from 2,500 to 25,000 addresses per hour at up to 600 dpi. Bryce also
manufactures the only full-color address printer on the market. Along with professional
mail houses, Fortune 500 companies, and colleges and universities, Bryce address
printers are used throughout local, state and federal governments.
Tom Herrmann says his ongoing partnership with HP has been instrumental in Bryce's
continued success, adding, "The use of HP inkjet technology in Bryce products really
represents a win-win situation." For Bryce in particular, Herrmann maintains, "HP
technology has definitely made us more successful. And working with Hewlett-Packard
reduces product development time significantly by providing access to advanced HP
technologies that are either difficult to reverse engineer or are patent-protected."

HP Production Unit
Personal Systems Group
Personal Systems Group (PSG) revenue grew 8% year-over-year to $6.4 billion, with unit
shipments up 14%. On a year-over-year basis, desktop revenue decreased 3% and
notebook revenue grew 21%. Revenue for commercial clients, which includes
workstations, grew 6% over the prior-year period, while revenue in consumer clients
grew 8%. PSG reported an operating profit of $163 million, or 2.6% of revenue, up from
a profit of $23 million in the prior-year period.
Imaging and Printing Group
Imaging and Printing Group (IPG) posted quarterly revenue of $5.9 billion, up 5% yearover-year. On a year-over-year basis, consumer hardware revenue increased 1%, with unit
shipments up 8%. Commercial hardware revenue grew 5%, with unit shipments up 12%.
Color laser unit shipments increased 31% year-over-year and multi-function printer
(MFP) shipments increased 67%, reflecting continued momentum in key growth
initiatives. Supplies revenue grew 6%. Operating profit was $771 million, or 13.0% of
revenue, down from a profit of $836 million in the prior-year period.
Enterprise Storage and Servers
Enterprise Storage and Servers (ESS) reported revenue of $4.0 billion, up 20% over the
prior-year period. On a year-over-year basis, industry-standard server revenue increased
28%, business-critical systems (BCS) revenue grew 7% and networked storage revenue
grew 15%. Within BCS, revenue in HP Integrity servers grew 113% year-over-year and
HP-UX revenue grew 8%. ESS reported an operating profit of $150 million, or 3.8% of
revenue, up from a loss of $211 million in the prior-year period.
7

HP Services
HP Services (HPS) revenue grew 10% year-over-year to $3.8 billion. On a year-over-year
basis, Managed Services revenue grew 21%, Technology Services grew 7% and
Consulting and Integration grew 12%. Operating profit was $256 million, or 6.7% of
revenue, down from a profit of $314 million in the prior-year period.
Software
Software reported quarterly revenue of $249 million, an increase of 11% yearover-year, with revenue in HP Open View and HP Open Call increasing 13% and
5%, respectively.
Software reported an operating loss of $40 million, compared with a loss of $48 million
in the prior-year period.
Financial Services
HP Financial Services (HPFS) reported revenue of $489 million, essentially flat yearover-year. Finance volume, a leading indicator of future revenue, grew 4% over the prioryear period, and net portfolio assets grew 1 percent to $6.9 billion. Operating profit was
$58 million, or 11.9% of revenue, up from a profit of $42 million in the prior-year period.
Asset management
Inventory ended the quarter at $6.6 billion, up $180 million sequentially and down $101
million year-over-year. Accounts receivable decreased $502 million sequentially and
increased $299 million over the prior-year period to $8.8 billion. HP's dividend payment
of $0.08 per share in the third quarter resulted in cash usage of $231 million. In addition,
HP utilized $860 million of cash during the third quarter to repurchase stock. HP exited

the quarter with $14.6 billion in gross cash, which includes cash and cash equivalents of
$14.4 billion and short- and certain long-term investments of $117 million.

Outlook
HP estimates Q4 FY05 revenue will be in the range of $22.4 billion to $22.8 billion, with
non-GAAP earnings per share in the range of $0.44 to $0.47. This excludes after-tax costs
of approximately $0.03 per share from amortization of purchased intangible assets, and
approximately $900 million, or $0.22 per share in workforce reduction costs. It also
excludes a one-time credit of approximately $200 million, or $0.05 per share, related to
benefit plan changes

PRESENT MARKETING STRATEGY

HP Corporate Marketing:
HP is a company unlike any other. They serve everyone from consumers to small and
mid-sized businesses to enterprises to public sector customers with an extensive portfolio
of market-leading solutions specifically designed to meet the needs of each customer
segment. They focus on helping people apply technology in meaningful ways to their
businesses, personal lives and communities. Their annual R&D investment of nearly $4
billion fuels the invention of products, solutions and new technologies, to serve
customers better and enter new markets. They produce an average of 11 patents a day
worldwide. In addition to the R&D and innovation in their product and services groups,
HP Labs provides a central research function for the company focused on inventing new
technologies to improve the customers lives, change markets, and create business
opportunities.
Source: Technology Business Research, Inc., October 26, 2007 Millions of

people

around the world use HP technology every day. They are the largest consumer IT
company, the worlds largest SMB IT company and a leading enterprise IT company. For
more than 100 million cell phone subscribers, it is HP software that identifies them when
they turn on their phones and allows them to place calls. HP powers 100 of the worlds
stock and commodity exchanges, including the New York Stock exchange and 14 of the
worlds largest trading markets. In response to customer needs and the changing market
conditions, they have built a portfolio unequaled in the industry. HP technology now
ranges from consumer handheld devices all the way to some of the worlds largest and
most powerful supercomputer installations. Their strategy is to offer products, services
and solutions that are high tech, low cost and deliver the best customer experience. No
10

other company has the portfolio, people and expertise to deliver on all three. They have a
dynamic, powerful team of 150,000 employees doing business in more than 170
countries. Revenues reached $79.9 billion for the fiscal year that ended October 31,
2007. HP has corporate headquarters in Palo Alto, California.

HP has a significant presence in all markets we serve

Consumer Our consumer business has leadership in hand helds, notebooks, printers
and cameras focused on delivering simple, rewarding experiences to hundreds of
millions of customers.
Small and medium business Working with local reseller partners, HP serves business
customers worldwide to provide specialized expertise, a complete portfolio of products,
solutions, and services, and a simplified ownership experience. They have market-leading
positions in data center and office computing, and the imaging and printing market.
Enterprise The enterprise segment draws from HPs full portfolio of products, services
and solutions. We collaborate with large customers to build an Adaptive Enterprise
helping them achieve more simplicity, agility and value across their organization. We are
No.1 or No. 2 in all three server-based operating environments, and we hold top positions
in enterprise storage and IT services management.
Public sector, health & education With more than 60 years of experience serving the
technology needs of the public sector, HP brings the full breadth of its portfolio and
alliances to help governments, educators, healthcare
providers and others working in the public interest to lower their costs, increase
efficiencies and serve their citizens, businesses and other government agencies better.
Their Key Words Doing well by doing good

11

As proud as we are of our capabilities, we are equally proud of our people, our standards
and values, and our deep commitment to global citizenship. Since our first year in
business in 1939, HP has given back to communities
through philanthropic donations of money, equipment and time. While the scale and
reach of our business have changed in 66 years, our commitment to communities hasnt.
The challenge is to continue to shape the impact of
corporations as a constructive force, using our heritage and our actions as tools for doing
so. Today, we employ new models of engagement and new business and technology
solutions to help more people around the globe to participate in the world economy via
information technology.

HP and TIBCO Software Announce Multi-year Agreement to Develop Marketing

Strategies & Products for Service Providers and Telecoms
Hewlett-Packard Company and TIBCO Software Inc. announced an agreement to jointly
develop products, solutions and marketing strategies for the service provider and
telecommunications markets. Through a three-year collaboration agreement, the
companies plan to support high-volume online transactions and to enhance the
performance, reliability and advanced middleware needs of global customers.
The alliance will leverage HP Open View management solutions to integrate TIBCO
Software's real-time e-business infrastructure software with the HP Net action Internet
operating environment to help customers implement reliable, secure, scalable and
manageable e-business solutions.
TIBCO's integration, B2B and XML solutions enable customers' disparate applications to
interact in real time. In addition to the collaboration that will use HP's process
management technology and application development toolset, the HP Middleware
Division will lead HP's joint development activities using standards such as J2EE and
XML technologies that will complement the current TIBCO products, providing a
development pathway for future jointly developed products and services.

12

"This agreement is an important step in HP's software strategy," said Bill Russell, vice
president, HP Software Solutions Organization. "TIBCO is a leader in business
integration software and this agreement builds on HP and TIBCO's shared vision of the
evolution of e-business technologies, our joint development plans and our collaborative
market strategies."

Types of information that cannot be made available to people outside of HP include:

Nonpublic product details:- We cannot reveal internal details regarding existing, new or
proposed products or processes. Public product information is available online.

Financial:- HP cannot disclose nonpublic consolidated financial information, production

and overhead costs, profit margins, bids, sales forecasts, sales and order volumes prior to
quarterly release, budgets, quotas and targets, information on a particular product's sales,
orders or projections. Marketing: HP does not disclose product-introduction plans and
dates; short- and long-term market strategy or customer lists; sales, marketing and
pricing plans; information about market share, market strategy or marketing plans other
than what has been publicly discussed in press releases or otherwise publicized. We do
not make HP promotional items available.

Research and development:- HP cannot reveal technical and performance

specifications, lab notebooks, product plans, projects in progress, project problems or
product code names

Manufacturing:- We do not reveal vendor names/relationships, manufacturingoperations data, production and inventory levels, future plans and sites, material cost or
product failure rates, or process strategies.

Personnel data:- Aside from information on executive salaries that is available in HP's
10K filing, HP does not reveal personnel data such as compensation information, ranking
and job descriptions, names and titles of employees below the functional-manager level
or departmental organization charts. Training manuals, employee handbooks, internal
communications or evaluation forms are also not available to the public.
13

There are over 8 million businesses in the United States alone, with each one trying to
stand-out from the crowd and grow their market share. Here to help you with that
daunting task is HP Balu Doraisamy, who is a Managing Director, HP India,
Marketing small business marketing system. Balu will be providing tips, tricks and
guidance to help you improve your business, your relationships with your customers (and
prospects) and ultimately your bottom-line.
It may not be that glamorous but one of the best ways to differentiate your business is to
show your clients and prospects checklists.
See, lots of folks talk about quality, speed and accuracy but few really deliver it. If you
could offer your prospects proof that you not only deliver the goods you have a 10 point
system that guarantees it, well, I think your business would be the obvious choice.
Almost every business has checklists (even mental ones) that they go through to ensure
the job gets done right, the order gets packaged right or the service is delivered on time.
Few however, take the time to document those systems in the form of a checklist and
fewer still think to use those checklists as marketing tools.
What if you produced a document that read: Our 10 point white glove inspection
guarantees that your car will be spotless - and then proceeded to list all 10 steps.
How about your web site optimization process, your financial investment risk analysis,
your safety process, your service punch list. There is no end to the creative ways you
can approach this. People love top 10 lists and checklists because they take something
that is often complicated or boring and turn it into something that is simple and even
entertaining.
Few things are sold without a prospect reading a written word or two.
Business owners often ask me what they should be looking for in a marketing assistant
and I always say - find someone who can write.
Now, let me back up and tell that what I really mean. Find someone who will write.
14

Many people claim that they are not good writers and my take is that they simply don't
write. In order to become a good writer, in order to use writing as a marketing skill you
must write. You can always have someone edit what you write, but it's the act of writing
that starts the marketing ball rolling. (I know my editor friends out there wish I would
take that editing advice.)

Here's what I have found.

Writing creates ideas. It's rarely the other way around. Many times I have no idea what I
am going to write, but once I start, ideas just happen. What comes about is often far
greater than anything I could have simply thought and then transferred to paper or screen.
Writing will help you have something to say. The more you write, the better you will sell.
Writing will help you listen more actively. Write speeches, write notes, write essays
unrelated to your business. Okay, write sales letters, write web pages, write white papers.
Just, write first, and then see what you had to say
I know that you know business marketing is not about sitting around in board rooms
discussing branding strategies...it's about selling something to someone. When it comes
right down to it if you can't write an ad or letter that makes people want to buy what you
have to sell (even if that's just an appointment) then you are sunk.

15

16

Some Marketing Tips from HP

Have a specific call to action - Many small business ads and sales materials don't really
tell you what they want you to do. They stop just short of leading you. Take your reader
by the hand and tell them exactly what you want them to do next. Call for more
information, download a free report, attend a seminar.
Make it easy to respond - In this day and age that means: 800 #, fax, email, website,
mobile, voice mail, credit cards, check by fax. Don't give your readers and clients a
reason to say no...sometimes it doesn't take much.
Repetition - Don't assume that every reader will read your entire marketing pitch. Some
will scan. Repeat your benefits, say them in different ways, use examples to illustrate
them.
Longer is often better - It doesn't mean you need to ramble but, in order for someone to
get the real picture you are trying to draw for them, including testimonials, examples,
benefits, and buying options, you must provide them with enough content to do the job.
Don't make the mistake of believing no one will read a letter that is more than one page.
If your headline is compelling and your copy sings, they will follow to the end and then
you will have them.
End with the beginning again - Restate what you have to offer, wrap up what you want
them to do, and retell them how they are going to benefit by doing it now. Put your
biggest point or even your offer in a PS.
A great sales letter should make a promise- draw a picture, prove its claims, and push
the prospect into a buying decision. (Think 4 P's - Promise, Picture, Prove, Push)
Use Powerful Headlines - Some of you might think I've beaten this one to death...but
fewer than 2 out of 10 people will read your letter if you don't have a good headline...you
can't sell anything if they don't read the offer.
Write Like You Speak - English scholars will find this advice abhorrent, (sorry!) but a
sales letter or ad is simply selling in print, so sell like you sell. Many writers lose their
way when they attempt to use feckless language. (huh?)
17

Pepper your reader with benefits- Tell them what's in it for them. It doesn't really
matter that you have a 100% on time policy unless you make them realize that means
they won't have to waste their time waiting on you.
Use testimonials - Getting testimonials to use in your marketing materials can be some
work but it's well worth it. People love to read that someone just like them thinks your
company is great or that your service provided them with a very specific benefit. A great
way to put your referral marketing on autopilot is to send small little postcards every
other month or so. Describe is some detail a problem a client had...then of course
describe the brilliant solution you provided...and send them out to your clients, friends,
contacts, and other network folks. The key to this tactic is that you also ask them to
forward this card to anyone they know who might have a similar challenge. If you do this
routinely you will be amazed at the results. I have found that Marketing With Postcards is
a great source for countless ways to use this little tool in your marketing. At least go
download the free chapters that he gives away.
Innovative leaders in marketing.The Idaho State Lottery serves a diverse group of layers segmented on types of games
played and frequency of play. The Lottery uses the hp/indigo digital print solution to
customize newsletters and direct mail pieces to their premier customers.
We have been using the hp/Indigo solution for customizing and personalizing the direct
mail pieces that go to our Lottery V.I.P. Club members. This form of customized
marketing has been very successful for the Lottery. It allows us to specialize messages to
our top, most active players. It is a win for us!
The Idaho State Lottery is a state run agency that is showing leadership in marketing. The
Lottery implemented a customer driven strategy that uses personalized customized
marketing materials to increase customer awareness of their programs and promotions
and created a personal touch with their most highly valued customers. There is no doubt
about it, personalized marketing gives a company

18

FUTURE PROJECT
From HP lab
"In the future we'll only travel when we want to and not when we need to," says HP
Fellow Norm Jouppi. Jouppi, who last year joined HP Labs from Compaq's Western
Research Lab, is playing a major part in making that future a reality. Working in HP Labs'
Mobile and Media Systems, Jouppi and his team of researchers have created what they
call Mutually-Immersive Mobile Telepresence -- BiReality, for short. Put at its simplest,
BiReality allows you to be in two places at the same time. Imagine being in a meeting,
seeing and hearing everyone there clearly and life-sized -- and yet being a thousand miles
away in your office. That's BiReality.
Robot is your stand-in
Jouppi's technology is about giving you (and the people you are visiting) the sense that
you are really present in that remote place, to the point that you can catch the eye of
someone in the room, or even whisper an aside to them. without you having to be there at
all.To make BiReality work, Jouppi and his team have created what they call a surrogate,
a machine that does the traveling for you.
This robot-like device can go anywhere that a wheelchair can. It carries sets of cameras
and microphones that give a 360-degree audio and video view of its surroundings,
displaying your head on four flat panel displays. The displays can be at either sitting or
standing height.
Beats videoconferencing
While Bi-Reality stands in for you, you sit back in a room at your office and move the
surrogate around with a computer game-style joystick. The room contains projectors that
display a 360-degree view of the remote location on screens all around you. Coupled with
near-perfect 360-degree sound reproduction, you have the sense of really being in that
far-off place.

19

"Business travel is timeconsuming, expensive and

a hassle," says Jouppi.
"Then
there
are
environmental
considerations -- each
cross-country
flight
produces tons of carbon
dioxide."
Video conferencing , the current best alternative to traveling for a meeting, leaves much
to be desired. As anyone who has used videoconferencing will attest, the person you see
in the small, jittery picture on the screen in one corner of the room hardly seems a real
participant in the meeting. It's even worse for the person on the remote end, who often
can't see or hear the proceedings well enough to participate.
HP Labs India was established in February 2002 to create a world-class lab with a
focus on the needs of Emerging Markets such as India. The mission of this lab is to
generate ICT innovations targeted at the world's emerging economies by understanding
relevant social, cultural, economic and technological drivers.
The motivation for our work is to extend the advantages of technology beyond the
population that now has access to some form of ICT, and to serve a much larger segment
of the society.
HP Labs India is headquartered in Bangalore, India. It works closely with other units
of HP Labs worldwide, as well as the business units of HP. In Bangalore, it is hosted by
Hewlett-Packard India.
We also work with other like-minded organizations, and have set up a joint lab with IIT
Madras, focusing on technologies for developing markets. The objective of the joint lab is
to provide an environment for HP employees to work with faculty, research staff and
students in the creation of communication technologies.

20

Research at HP Labs India has a multi-disciplinary character. Currently our emphasis is

on:
Language technology, including handwriting and speech communication
interfaces for computers
Appropriate access devices to provide Internet and computing access at low
cost; equipment and software that can be used in a shared mode, to enable
access to the benefits of ICT to those who cannot afford to acquire standard
equipment.
Communication concepts and techniques relevant to the environment of small
towns and rural areas in developing countries.
Understanding the socio-economic context of the bulk of the population, from
a point of view of identifying potential uses of ICT to this segment.
New models for human interaction with IT equipment and software, to offer
easily usable and trouble free interfaces to the above-mentioned segment of
the population.

21

Vision
HP Labs India aims to:

Do leading edge research

Act as a Change Agent

Partner with like minded institutions in order to create innovations that improve
quality of life

Provide access to information infrastructure

Enhance productivity of individuals and businesses

Create economic opportunities for participation in the economy

Open up new markets for HP taking into consideration

Purchasing power

Literacy levels

Communication infrastructure

Local language needs of emerging markets like India.

Almost like being there

With BiReality, says Jouppi, "everything's presented life-size. We preserve colors
accurately. We not only preserve eye contact, but we preserve gaze. So I can tell what you
are looking at when you're not looking at me. I can tell if you are looking at your notes or
if you're looking at the clock and all those things are important cues."
All this adds up to what Jouppi calls an impressive environment.
Given the awfulness of videoconferencing, and the time and money that most businesses
spend on travel every year, it's surprising that few others are working to create impressive
environments.
"It's kind of obvious when you think about it in retrospect," reflects Jouppi. But perhaps
that's what defines a really good new idea."

22

Virtual reality for the office

The idea that became BiReality came out of Jouppi's own unsatisfying experiences with
videoconferencing. While working on a new graphics accelerator chip, he had used early
videoconferencing hardware. At first, he recalls, "it was just a source of humor, as
opposed to actually being useful."
But the experience got him thinking. "I'd seen a lot of people doing virtual reality, trying
to make immerse fake worlds," he says. "I was interested in making an immerse depiction
of the real world."
Jouppi had already made a name for himself in microprocessor and graphics chip
architecture -- he was recently named a Fellow of the IEEE for his contributions to the
design and analysis of high-performance processors and memory systems -- when he
began looking for new challenges.
Patents pending
And although the dawn of a commercial version of the BiReality system is still some
years off, Jouppi and his team have a string of patent applications pending for their work
in Mutually-Immerse Telepresence.
Having been part of a much smaller research presence at Compaq (as part of a research
lab that Compaq inherited from Digital Equipment Corporation), Jouppi's happy to have
found a home at HP Labs.
"It's exciting to be part of a place where they have 'invent' a part of the corporate logo,"
he says. "Innovation is always exciting."

23

CHALLENGE
The key challenge for the agency was to develop and implement a marketing strategy that
would maximize the limited marketing funds. Its a position that both private and public
entities face in getting the most effective use of your marketing funds. We have the
responsibility for using the taxpayer dollars in a way that maximizes our return on
investment. To us that means having a better understanding of our most valuable
customers and marketing effectively to them, says Hoff. The agency started with
minimal customer information about their key segment. They created an integrated
marketing strategy using their website and direct marketing pieces and built a VIP Club
to effectively market to those customers.
The objectives for this customized marketing approach are two-fold:
Increase customer loyalty through personalized/customized marketing to target
customers.
Better understand the customer demographics and psychographics.
The Idaho State Lottery uses the hp/Indigo digital printing solution to create newsletters
that are customized with the customer name and address. These pieces use variable
content such as offers and images that appeal to the different customers. Additionally, the
lottery sends out birthday cards with the customers name, personal information, and an
offer with a unique bar code. This allows them to track the response rate, as well as
gather important customer information. The response rate from the birthday cards has
been excellent.

24

SOLUTION
Internal creative marketing team at the lottery.
CRM solution that allows them to track important customer information and integrate
that information into marketing pieces.
A print provider that understood the benefits of variable print data.
The creative team at the Lottery is instrumental in driving the usage of personalized
marketing.
Customer database information that is gathered off the web registration.
Graphics Avenue, a Boise, Idaho based company played a key role in both educating the
customer on the opportunities with variable print data as well as the ability of the
hp/Indigo digital print solution. Dave Street, owner of Graphics Avenue noted, Currently
the Idaho Lottery is using simple personalization which is used in the barcode and
coupon applications. In some applications they are mixing traditional press with digital
customization. Depending on the job size they can use full digital and remain cost
competitive.
Digital printer: The biggest benefit to digital printing overall right now is the flexibility.
The lottery chose to use the solution because they could cost effectively print smaller
quantities, saving up to 20%, they were also able to preview the actual output. Most
importantly, they realized the flexibility and effectiveness of using their database for
customized marketing pieces that gained attention.
Enrollment is up from 14,000 to over 40,000 participants as a direct result of the
customized targeted marketing. Additionally, we have a real strong usage of our website,
states Hoff. Key results are as follows:
up by over 26,000 participants
database that allows the Lottery to segment and use marketing dollars effectively
track customer buying behavior
target spending

25

HPs Effect on Peoples Life

In Buenos Aires, a teacher worries about a teens poor test score, knowing the student
normally exhibits a keen interest and clear aptitude in science. In New York, university
officials wonder how to meet the needs of three widely dispersed campuses amidst
shrinking staff budgets. In an Iowa community college, professors say administrative
tasks are cutting into teaching time. In London, homework time impacts family time as a
parent watches a child struggle, clearly in need of more personal attention in a crowded
math class.
Around the world, schools, community colleges and universities are striving to increase
the quality and efficiency of education to make it a highly personalized and relevant
experience for students. Thats why HP is working with schools and colleges to help
transform education providing better access to information and resources for students,
teachers, faculty, parents and the community at large.
Today, web-based learning portals are key to delivering this type of "equal opportunity"
access across the hall, across the campus or even across the country. As students, parents,
teachers and faculty demand access anywhere and anytime, learning portals provide a
gateway a unified place to access resources from instructional tools, content and student
records to assessment and reporting capabilities
Solution highlights
Part of the HP Managed Learning Solutions portfolio, HP Managed Learning Gateway
Solutions include learning portals, collaboration portals, virtual learning environments
and virtual classrooms that help to raise the standard of education for students, parents,
Imagine how a learning portal could change the lives of the teachers, administrators,
students and parents above ...
With online access to lesson plans, test results, and attendance records, the science
professor sees the student was absent when a key concept was introduced. Working with
the student after school, the teacher fills the learning gap, sends both student and parent
training materials to reinforce the lesson and the student "aces" the make-up test.
26

As the universitys teacher to student ratio falls, the professors at each campus tap into a
web portal to collaborate over course content and new ideas, leveraging each others
work.
At the community college, a portal provides instructors with access to productivity tools
that free them to focus less on administrative tasks and more on teaching.
As parents and students access a personalized web portal with enhanced security features
to view the days lesson online, together they can find that x = y. The child also works
collaboratively online with other students building a strong learning network.
All this takes an integrated, agile learning portal solution a gateway that connects
people to insightful information and to each other. HPs Managed Learning Gateway
Solution combines HP technology, solutions and services with proven solutions from
third-party providers to build this gateway helping you to raise the standard of
education for all.
Solution highlights
Part of the HP Managed Learning Solutions portfolio, HP Managed Learning Gateway
Solutions include learning portals, collaboration portals, virtual learning environments
and virtual classrooms that help to raise the standard of education for students, parents,
teachers, administrators and governments in many countries throughout the world.
Why HP for Education?
Sixty years of experience in serving the public sector
Proven track record in implementing solutions at all levels of education
A broad, deep portfolio for complete solutions
Standards-based technology with proven multi-vendor integration experience
Fully supported solutions
Strategic relationships and certified professional expertise in leading.

27

More on Customer Satisfaction

During the few days I've been blogging my blog has generated interesting reactions both
inside and outside of HP, including a few articles published in IT trade publications, from
the thousands of page views that have taken place. During the past few weeks I've also
received inputs from two customers who wrote to express disappointment with their
interaction with HP when either purchasing or securing service on a personal computer.
Our services organization, across the Enterprise and Small & Medium businesses,
addresses millions of service interactions annually. As noted in a previous blog, HP
service professionals take pride in their work and try to successfully resolve every
customer's issue and meet their expectations. Like every large service organization,
however we do not achieve perfection. We do however monitor how we stack up against
our competition and typically find we're among the most successful service providers in
the industry. For example, a recent survey from consumeraffairs.com referenced in a
story showed the percent breakdown of complaints received regarding PC vendors as

DELL
Gateway
eMachines
Apple
HP
Sony
Toshiba

- 58%
- 15%
- 8%
- 7%
- 5%
- 3%
- 2%

Its worth noting that the rate of complaints received would be expected to be highest for
the higher market share vendors. Given that DELL and HP have similar market shares we
were pleased to see HP had one of the lowest rates of complaints among all vendors,
regardless of sales volume. We will continue to monitor external reports like this and our
own survey results to get the feedback we need to deliver the highest levels of customer
satisfaction possible. I am very impressed with HP's corporate blogging policy. I was just
telling my friend how blogging is impacting corprate communications
I was one of the two dissatisfied customers whom Dan mentioned that wrote a comment
on his previous blog (It's really no surprise), and I have three points today:
28

Point one,
I
would like to apologize as it was never meant for public consumption, but for HP's eyes
only. But since it's for everyone to see, I thought it's just appropriate for me to write a
follow-up note.
Point two, I do need to make myself clear, my daughter and I am happy with the HP
product we got, but support wise, it's another story, until I talked to Jeff today. Jeff
Utigard (a customer advocate from HP) gave me a call, and listened to my story. He was
very friendly and professional, and apologized on my negative customer experience.
After the call, he completely reverted my negative outlook of HP support, and in fact,
made my day! :-)
Point three: Sometimes, it takes one person to make a customer dislike a company, and it
takes another person (most of the time - more) to make it 'all right' again. Being in the
service industry almost all of my life, call center are the forefront for making things
happen - putting the right support people can make your center a 'customer retention
center' versus a 'cost center' of a 'firefighting center'.

29

Products:

Servers
HP ProLiant servers

HP Integrity NonStop Servers

HP Integrity NonStop Servers

HP 9000 servers

HP AlphaServer systems

Telco and carrier-grade servers

HP e3000 servers

30

Desktop PCs
For Home & Home Office
HP Pavilion desktop PCs
Perfect for digital imaging needs
Compaq Presario desktop PCs
Advanced home and wireless networking capabilities
For business
Business desktop PCs
Stable computing solutions to deliver optimal performance
Workstations
Personal Workstations
Engineered for ultimate value and performance
PA-RISC
Leadership HP-UX stability and performance

Thin clients
Thin clients
Simple, dependable, manageable, and secure solutions

Monitors
For Home & Home Office

31

 Monitors for Home & Home Office

Complements your PC

Options & Accessories

For Home & Home Office

Options & Accessories for Home and Home Office

For business
Business Options & Accessories

Notebooks & Monitors

& Fax, copiers, &
Tablet
Projector
scanners
PCs
s

32

 Digital photography
Versatile mobile
solutions for a
demanding
environment

Designed
to Innovative
improve the way digital imaging
you
look
at products for a
business
demanding
enterprise
Digital photography for
environment
your enterprise
Ideal
Monitors
and
ultramobile PCs projectors
for Scanners
and
that
adapt
to
the
the
enterprise
copiers
for
the
HP's
digital
enterprise
photography solutions way you work
give you a competitive
edge

Supplies & Accessories

Supplies and accessories

designed together to
work together

Handheld
devices

Handheld
devices for
your enterprise

Supplies and accessories

for the enterprise
Satisfy business needs
on the go

33

Some other Services of H.P.

Applied research: Experimental "game" helps Ford save time, money
Experimental economists at HP Labs have helped the company improve revenue
forecasting and design new incentive programs for retailers, and they've explored such
questions as pricing contracts and currency fluctuations. But they aren't keeping their
expertise to themselves: They've also worked with partners like Ford Motor Co.
Riding the peaks: Market-based systems help manage demand
A reservations system allows people to pay up front to keep a resource (say an airline
ticket, or computing power in a data center) available to them at some point in the future.
The price they pay to hold that resource for peak times is less than if they bought it at the
time they actually needed it.
Protecting privacy : Building in safeguards for personal data
With security breaches and online fraud on the rise, consumers, businesses and
government organizations are growing more concerned about protecting individuals'
privacy. A team at HP Labs is working on tools to make it easier for businesses to do just
that.
HP huge among patents for the tiny
HP's patent portfolio for micro- and nano-electronics has been named the strongest in the
U.S. , according to an independent survey

34

ANALYSIS & INTERPRETATION

Office PCs

When we analyze the results by turnovers of the respondents, we se that the turnover of

35

the respondent increases, the gap between HP and IBM decreases, and at turnovers of Rs
1000 crores and above, IBM overtakes HP.

Notebooks

The notebook market while, and established one, is still very small in the country, and
there could still be space an upstart winner to come up in the years ahead. The first two
36

positions have remained steady for some time now. IBM/Lenovo is the winner and HP is
number two.

LCD Monitors

Samsung breasts the tape by a comfortable margin ahead of second placed HP. LG is at
number 3 followed by IBM. The market for LCD monitors has way to go ahead we are
seeing the newer player opting to take nice position rather than to go for national brands.
37

While this may be an extremely wise strategy, it would also mean that they would find it
difficult to figure in the users choice club.

LASER PRINTER

Of course, it goes without saying that HP is the clear winner.

38

DOT MATRIX PRINTER

39

OBJECTIVES OF THE PROJECT

Main Objective:To find out the attributes that enhance the customer value by providing better service to
them and know how to motivate the more people towards IT. The Project required to
carry out the comparative study of Prices across Brands and Models also to carry out
another comparative study of Margins of Dealers and Wholesalers. Finding out the
Market Operating Price at which they are making deals and the volume of discounts
offered by them would do this.
Then apart form studying the dealers a study of consumer buying behavior was also
required for the specific brands. This was done by making comparative study of HP along
with other brands, in terms of consumer preference. Also dealers perspectives about the
brand is also to be considered along with this the effect of prices on brand preference of
the all models .
In the research we also tried to study consumer behavior for all the brands and also the
dealers perception about the market of Home PCs, Laptop, Printers, PSC., Scanner,
TFT. For this Segmentation, Targeting and Positioning of Various brands on: recall,
believability, association, final purchase.
Other Objective:

To know the brand recall by customers.

To know the reason why people prefer HP (Hewlett-Packard) brand .

To increase the sales volume .

To give the customer satisfaction and also get the references from them.

To know which factor is important for customer before buying any IT product.

To illicit suggestion for better positioning for hp product

40

RESEARCH METHODOLOGY
The section includes the overall research design, the sampling procedure, the data
collection method, the field method, and analysis and procedure.
Research design:For this research project exploratory method is used .In exploratory method new things
are fined out from the given topic.
Data collection method:The data collect for the research can be classified as primary data and secondary data.
Primary data:- The data collected for first time is known as primary data. It is by
visiting existing customer and expected customer of Compton computers pvt. Ltd. And
making them fill up the questionnaire
Secondary data:- The data which has been already collected by someone is known
as secondary data. Is collected from internet, books, etc.
Research instrument
The instrument use for data collection is structured questionnaire. Question is open and
close ended depending upon the information that needed to be elicited. I am also using
the scaling technique to assess the attitude of the customer.
Sampling plan:Keeping all the constrains in mind a sample size of 80 people .The sampling procedure is
systematic sampling

41

ANALYSIS & INTEPRETATION

Customer Profile:
Break up of Sample:

Figure: Sales of printer in the Survey

The above mentioned graph represents the various brands of printer that emerged out of
the survey.
Printer Model
HP
Canon
Epson
Umax
Others

Frequency
52
12
2
3
11

Percent
65.00
15.00
2.50
3.75
13.75

Total

80

100.00

42

1. Of the total 80 respondents Show their believe in hp.

2. Responses were very low for the lower range. Most of the other reason accounted
for gifts as a reason.
3. For the three players as Cannon, Epson, Umax the main reasons were again the
Poor quality, high ink consumption.
4. Out of 80 respondents 70 say that brand name matters
5. Out of 52 respondents 45 are satisfied.
6. 40 says price matters 25 say quality matters 15 says brand name matters.
7. 30 says that after sale services is good 22 says no.

43

Finding
The basic need for buying a Printer is primarily Saving Time and printing
quality. This need should be addressed in any correspondence with the
customer in the companys promotional activities. The later part of the report
also checks the believability aspect of each correspondence with the
customer and this prediction is further concentrated in that part. The HP
customers seem to have gone by the general trend and share the same
values.

44

CONCLUSION
The Indian I.T. market currently appears to be at a crossroads, where I.T.
marketers are attempting to change customer perceptions of their brands and
where specific buying motivations appear to be replacing generalities. This
meanwhile, is quite unlike the west where buyers consider aesthetics,
comfort and safety, not necessarily in that order, before finalizing a
purchase. Its smarter to think about emotions and attitudes, if marketers are
to do a better job of marrying what a HP offers to the consumers image of
the offerings. The mindset of the Indian consumer is such that he is delighted
if he buys a pen a little cheaper than his neighbors. Things are, however,
slowly changing and customers at the upper end of the market are now ready
to pay more for more. I hope that this approach will soon enter the new era,
maybe not with the same intensity . Success will largely be determined to
the extent a company can differentiate itself in terms of intangibles that go
with a Product. Thus, success could well hinge on the best of bundle of
services that HP provides. HP grew from zero to the 180 Million $, mark and
the number One sales of Printer, Scanner & TFT in India in this year.
Looking at the present scenario it can be said that though there is lot of
competition in the I.T. world HP is picking up well. The landmark
achievement comes in 66 years after clinching its first overseas sale.

45

SUGGESTIONS
Key attribute components:
Value for money and Customer Care
Operational attributes.
Physical attributes.
Brand Image.
Customer Specific Details.

In any correspondence with the customers the message should be sent in

these components only to have the maximum benefit from the
advertisement. Also these components should be dealt with independently.
The advertisements should speak only of the believable concepts rather than
glorifying the pretentious ones. The basic need of the customer need to be
addressed which is actually saving time and better quality.
HP Deskjet 3745 printer, COMPAQ PRESSARIO 1310 this particular model
has a problem with promotion and pricing. Although being the most
competitive product on the basis of the Market Operating Price (MOP), the
machine is still not selling much. This is perhaps due to the bargaining stress
on the customer and the weak push given by the dealer to the particular
model, when actually it should be sold like a high volume product.
Another important outcome of the research is the believability of the claims.
Most of the claims are realistic and easy to understand. Most of the people
dont understand the technical claims like Software problems and Hardware
resale and the dealers dont provide much support to the customers in
making them understand the real technology behind them. Either, the
technical details should me presented in a clearer manner or the dealers need
to be educated properly.
46

BIBLIOGRAPHY

Jeffrey Gitomer, customer satisfaction is worthless

Jean-Noel Kapferer (1994), Strategic Brand Management.
Philip Kotler (Eight Edition), Marketing Management, Prentice Hall of India Pvt. Ltd.
Shiffman Consumer Behavior

47