PROJECT REPORT

ON
MARKETING STRATEGIES OF
HP IN INDIA

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE

DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

Under the Guidance of: Submitted By:

Ms. SUMEDHA SEJAL VISHNOI
Associate Professor BBA GEN
MAIMS

Maharaja Agrasen Institute of Management StudiesPlot No. 1,

Sector 22, Rohini Delhi 110086
 STUDENT’S DECLARATION

This is to certify that I have completed this Project titled

“Marketing Strategies of HP in India” under the guidance of
“Ms. SUMEDHA” in partial fulfillment of the requirement of
the award of degree of Bachelor of Business Administration at
Maharaja Agrasen Institute of Management Studies, Delhi. This
is an original piece of work and I have not submitted it earlier
elsewhere.
 CERTIFICATE FROM THE GUIDE
This is to certify that the project titled “Marketing Strategies of Hp in
India” is an academic work done by “SEJAL VISHNOI” submitted in
the partial fulfillment of the requirement for the award of the degree of
Bachelor of Business Administration from Maharaja Agrasen Institute of
Management Studies, Delhi, under my guidance & direction. To the best
of my knowledge and belief the data & information presented by him in
the project has not been submitted earlier.
 ACKNOWLEDGEMENT

First of all, I would like to express my thanks to Prof. C.S.

SHARMA(Director, MAIMS) for giving me such a wonderful
opportunity to widen the horizons of my knowledge.

In no small measures, I would also like to gratefully thank to all those

who gave me constructive suggestions for the improvement of all the
aspect related to this project.

In particular, I would like to thank Ms. SUMEDHA, my research guide

for her valuable suggestions and guidance.

I also owe a deep sense of gratitude to other faculty members for their
continuous encouragement.

Despite all efforts, I have no doubt that error and obscurities remain that
seen to afflict all research project and for which I am culpable.
 TABLE OF CONTENTS
TITLE PAGE

STUDENT’S DECLARATION I

CERTIFICATE FROM THE GUIDE II

ACKNOWLEDGEMENT III

INTRODUCTION 1

ABOUT HP 2

HP FAST FACTS 3

HP’S SHARED VALUES 4

GLOBAL CITIZENSHIP 6

MARKETING MIX 10

COMPETETIONS 23

RESEARCH METHODOLOGY 26

RECOMMENDATIONS/SUGGESTIONS 45

FINDINGS AND OBSERATIONS 46

CONCLUSION 47

QUESTIONNAIRE 48

BIBLOGRAPHY 51
 CHAPTER-1
INTRODUCTION
 INTRODUCTION

About HP:
Hp is a technology company that operates in more than 170 countries around the
world. It explores how technology and services can help people and companies
address their problems and challenges, and realize their possibilities, aspirations
and dreams. It applies new thinking and ideas to create more simple, valuable and
trusted experiences with technology, continuously improving the way our
customers live and work.
No other company offers as complete a technology product portfolio as HP. It
provides infrastructure and business offerings that span from handheld some of
the world's most powerful supercomputer installations. It offers consumers a wide
range of products and services from digital photography to digital entertainment
and from computing to home printing. This comprehensive portfolio helps us
match the right products, services and solutions to our customer's specific needs.

MISSION
Hp’s mission is to invent technologies and services that drive business values,
create social benefit and improve the lives of customers – with a focus on affecting
the greatest number of people possible.
 HP FAST FACTS

1. HP was founded in1939.

2. Corporate headquarters are in Palo Alto, California.
3. Meg Whitman is president and CEO.
4. Hp is the world’s largest IT companies, with revenue totaling $127.2 billion
for fiscal 2011.
5. Hp’s 2011 fortune 500 ranking is no. 11.
6. Hp serves more than one billion customers in more than 170 countries on six
continents.
7. Hp has approximately 324,600 employees worldwide.
8. Hp’s revenue for the four fiscal quarters ended October 31, 2011: $127.2
billion.
9. Hp dedicates $3.6 billion annually to its research and development of
products, solutions and new technologies.

TECHNOLOGY LEADERSHIP

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

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

List of Products By HP

1. Laptops, Notebook Computers & Tablet PCs

i. Everyday computing
Laptops for movies, music, photos and multitasking in your
home or home office

ii. Performance & entertainment

Laptops for cutting-edge entertainment and gaming
 iii. Ultra – portable

Laptop computers or tablet PCs for on-the-go personal

productivity and connectivity

iv. Mini

Perfect companion PC to keep you connected while you

are on-the-go

1. Laptops for Business

i.EliteBook laptops

Best in class, packed with features and

functionality

ii.Compaq laptops

Advanced features for business

iii.ProBook laptops

Stylish and affordable for small business

options

2. Other laptops
i.HP Pavilion Home Desktop PCs

a) Fitted with features that appeal to your whole family

and yet flexible and reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern
home however compact the space, whatever the budget
 ii.HP Pavilion Elite Home Desktop PCs

a) Fitted with features that appeal to your whole family and

yet flexible and reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern home
however compact the space, whatever the budget.

3. Monitors

i. Home & Home Office monitors

ii. Business Monitors

4. Options & Accessories

Keyboards, mice, memory, storage, speakers, headsets, webcams, cables,

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

5. Laser Printers, Inkjet Printers and Multifunction Printers

i.Color Printers
a) Inkjet printers
DeskJet, Office jet, and Business Inkjet printers

I. Home inkjet printers

II. Business inkjet printers

b) Color laser printers

Color laser printers with HP LaserJet performance

I. Home colour lasers

II. Business colour laser
 c) Large-format printers

HP Design jet, Design jet Commercial and Scitex printers; HP Indigo presses

I. Design jet printers

II. Other graphic arts products

ii.Black & White Printers

1. Laser printers

HP LaserJet printers for high-speed, high-volume, high-quality

Printing

I. Home laser printers

II. Business laser printers

6. Wireless printing

Enjoy the freedom to print from anywhere with HP's

line of wireless printers. Wireless allows greater
mobility, no wires and shared printing. Many HP
printers have wireless printing built into the printer
and HP offers an add-on to your existing printer.
Live Wirelessly. Print Wireless
Sales are only income for any business concern. But price is the main factor which
affects the sale of the market. If the price is high, few buyers purchase and if the
price is low many buyers purchase. Therefore a sound pricing policy must be
adopted to have maximum sale revenue. Moreover, it is only through proper
pricing policy the already laid down marketing objective and corporate goals could
be achieved. Price is the exchange value of a product or service always expressed
in tem of money. In other words, price of a product or service is what the seller
feels its worth on term of money, when offered to a buyer. To the customer, the
price is an agreement between seller & buyer concerning what each is to receive. The
buyer is interested in the price of the whole package consisting of physical product plus a
bundle of expectation and satisfaction. The consumer has numerous expectations
such as after sale service, replacement of parts, technical guidance & money other
benefits. However, to the seller, price is a source of revenue and a main
determinant of profit. To the seller, price is equivalent to the total product offering.
This offering includes a brand name, a package, product benefits, after sale service
and so on. We can define price as the -money of the product or service agreed upon in a
market transaction‖.
So, Price in money = physical product + bundle of expectations

The Price Factor of PCs

India is a price-sensitive market. When the PC was launched in 1984, it cost well
over $4,450 here, and in the late 1980s, the price was around $2,220.
While the price was around $1,100 in the mid-90s, today, a MNC brand with
multimedia costs only around $761.
The Indian market has seen local assemblers stealing a march over their domestic
and multinational computer hardware rivals.
The Indian PC industry has also witnessed the rise and fall of many a domestic
brand. Prominent players who fell out include DCM-DP, PCL, Sterling and
Unicorp, though many Indian brands including HCL today account for nearly half
of the branded PC sales in the country.
The pricing adopted by HP India Pvt. Ltd. can describe under this subhead: -
Competitive pricing: - HP India Pvt. Ltd. adopted the method of pricing called
competitive pricing for their PCs. Under this policy, the price of HP PCs is fixed
according to the price of other competitor brand of the market & the price moves
accordingly.

The price list of the some IT Products of HP India Pvt. Ltd. is as follows:
Desktop Price Model

HP (Hewlett-Packard) Touch Smart IQ504 Desktop $972.99

HP (Hewlett-Packard) Pavilion Elite m9550f Desktop $999.99

HP (Hewlett-Packard) Compaq Presario SR5710f Desktop $349.99

HP (Hewlett-Packard) TouchSmart IQ506 Desktop $799.96

HP (Hewlett-Packard) Pavilion a6750f Desktop $659.99

HP (Hewlett-Packard) Pavilion s3710t Desktop - Customizable $379.99

HP (Hewlett-Packard) Touch smart IQ526 Desktop $1175.00

HP (Hewlett-Packard) Touch Smart IQ524 Desktop $979.95

HP (Hewlett-Packard) Firebird Voodoo DNA 802 Desktop $972.99

HP (Hewlett-Packard) Touch Smart IQ816 Desktop $1299.99

1. THE THIRD P – ‘PROMOTION’

Promotion is the process of making communication involving information,

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

The communication & promotion mix includes four ingredients viz.

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

1. Sales promotion

Sales promotion is an important instrument in marketing to lubricate the marketing

efforts. Today, sales promotion is a necessity & not a luxury. It is not expenditure,
it is an investment, which can pay a rich dividends. It is an integral part of
marketing effort.
“In a specific sense, sales promotion includes those sales activities that supplement
both personal selling & advertising & coordinated them and help to make them
effective such as displays, shows and expositions, demonstration and other
nonrecurring selling effort not in a ordinary routine. Sales promotion aims at
stimulating the purchasing at the point of sales & dealer’s effectiveness at the retail
channel of distribution.

Sales promotion with the reference of HP India Pvt. Ltd.

Company plans to follow two kinds of promotional tool for their products. They
are: -

(a) Dealers promotion

(b) Customers promotion

(a) Dealers promotion

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

(b) Customers promotion

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

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

Advertising with the reference of HP India Pvt. Ltd.

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

It is true, that it is not sufficient in today’s high competitive marketing scenario,

but after the attainments of the proper distribution channel company definitely
come through the media which is a powerful source of demand generation in
today’s tough marketing scenario & it is definitely provides a strong consumer pull
to the new products of the HP India Pvt. Ltd.

3. Personal selling

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

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

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

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

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

2. THE FOURTH ‘P’ - PLACE

Marketer has to ensure the availability of its products to the target customers. If a
product is not available to the target customers at the right place, then he/she may
shift to competitive products. So place decision relates to:
(i) Channel decision – what kind of distribution channels a company adopts
between plants & consumer.
(ii) Distribution channel policy – whatever to go for extensive or selective or
exclusive distribution.
(iii) Degree of selectivity among wholesalers & retailers.
(iv) Effort to get the cooperation of the trade.
(v) Physical distribution decision includes logistics, transportation,
warehousing, material handling, bulk packaging etc.

Meaning of channels of Distribution

Goods produced by the manufacturers must come to the knowledge of the ultimate
consumers. This is arranging by the sales promotion activities like salesmanship &
advertising. By mere knowledge, the prospective consumers are not happy. The
products must reach their hands for actual use. Channels of distribution are paths
through which products move from the point of production to the point of
consumption. Distribution channels are also called Trade channels.
Distribution Channels of HP India Ltd.
State
Eastern Central Western

Distributors Distributors Distributors

Retailers Retailers Retailers

Customers Customers Customers

COMPETITORS

Major Brands of Computers in India

HCL Info systems:

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

Acer Computer International Limited

Few IT companies offer the breadth and depth of products that Acer Group does.
Leveraging the vast collective technological resources available - Acer India (Pvt.)
Ltd., was incorporated as a wholly owned subsidiary of Acer Computer
International Ltd. on 9th September 1999. Acer's mission in India is to translate the
Group's goal of making computer technology easier to use and more affordable - to
everyone in this country. With a focused customer-centric approach, Acer in India
is offering unmatched uptime for all its systems through a vast network of Service
points, innovative and user friendly functionality while continuously lowering
barriers that limit the access to the fruits of technology.

Compaq India:

The world’s largest seller of PCs entered India in 1994. Initially, the commercial
segment (large corporations, government, educational & research institutions) was
its main target segment. But with recession in the economy in mid 1990s and the
consequent slashing of IT budgets of corporate, it turned its attention to the home
segment. However, it soon realized that its PCs, although perceived well on
reliability and quality, were considered too expensive. The assemblers and Indian
brands were cornering a major chunk of the market. It slashed prices of its sub
brand Presario from Rs.65, 000 to Rs.50, 000 to penetrate into the price conscious
Indian households.

At the same time, Compaq is aggressively going after corporate segment by

offering a range of products tailored around services to meet specific needs. Its
merger with Digital Equipment further strengthened its position in the high-end
server market.

Wipro Limited:

Wipro intends to focus more on the lucrative services business in future. Already,
services accounts for more than half of its turnover. In contrast, the contribution of
systems business dropped from 43 per cent to 25 per cent.

It had a joint venture with Acer for marketing the Wipro-Acer brand of PCs.
However, they called it off in 1999.
Wipro has a 500-strong dealer network. It also distributes IBM PCs and Sun
Microsystems.