Introduction to Advertising
A Project on the Laptop Industry in India
Submitted to: Mr Rajwade Submitted by: Manali Shah – 43 Munira Rangwala – 34 Shweta Mane – 00 Akshay Bhatkar- 04
SY BMM, V.G. Vaze College of Arts, Science & Commerce
Laptops were originally considered to be "a small niche market" and were thought suitable mostly for "specialized field applications" such as "the military, the Internal Revenue Service, accountants and sales representatives". But today, there are already more laptops than desktops in businesses, and laptops are becoming obligatory for student use and more popular for general use. Key players in the Indian Industry today:
Hewlett-Packard Company commonly referred to as HP, is a technology corporation headquartered in Palo Alto, California, United States; with offices at the old Compaq Campus in Houston, Texas. HP is the largest technology company in the world and operates in nearly every country. HP specializes in developing and manufacturing computing, storage, and networking hardware, software and services. Major product lines include personal computing devices, enterprise servers, related storage devices, as well as a diverse range of printers and other imaging products. Today HP serves more than one billion customers in more than 170 countries on six continents. When HP merged with Compaq in 2002, it took over Compaq's existing naming rights agreement. As a result, HP sells both HP and Compaq-branded machines. Segments of HP: Students Travelers Home and Family Entertainment Technology and Style Models of HP: Mini: To help schools offer affordable computing to every student, HP introduced a fullfunction, mini-notebook PC priced starting under $500.Designed for the education market, the HP 2133 Mini-Note PC is flexible enough for students to use from the classroom to the family room. The HP Mini provides mobile professionals a sleek, lightweight device that provides access to information and the ability to collaborate with others as well as to communicate via email, instant messaging or even bloging.
Compaq Presario: Compaq Presario range of laptop computers in India are used for daily computing works. Having great range of selection these Compaq laptops are perfect for your daily use. Keeping in mind your entire requirement HP Compaq in India has developed these laptops, more technology oriented. HP Pavillion: HP pavillion range of laptops is more powerful and trendier serving more in big businesses and traveling personnel. Supporting all kinds of multimedia these laptops/notebook in Indian market are appropriate fro multimedia. These are very powerful and easy to use laptops. The various series that HP pavilion is available are dv8000 series, dv5000 series, dv2000 series and dv1000. Special edition: Special edition for Hp pavilion laptops are mainly designed to give you entertainment in secure environment. More technology sound with higher power and speed these special edition laptops/notebook are here to make your dreams come true. HP support: HP has a support section on its website, www.welcome.hp.com. The site offers solutions to FAQs. However, the site is not ever user-friendly and navigation can be a bit difficult for the uninitiated. The site offers consumer and business support forums. It also offers an online support call and diagnostic. There is an option to automatically check if the drivers are in need of an update. The site offers help categorically apart from some tips and tricks posted by users on a forum. HCL Enterprise Limited HCL Enterprise Limited (formally known as HCL Computers Limited) is one of India's largest electronics, computing and information technology company. Based in Noida, near Delhi, the company comprises two publicly listed Indian companies, HCL Technologies and HCL Infosystems. A formidable name in the Indian IT Market is HC which spans for more than three decades. HCL is known for constant innovations which are visible in their new ranges of laptops from time to time. Some of the popular models of HCL laptops include HCL Laptop Z22- Z2201, HCL Notebook P21- P2110, HCL Notebook K21- K2101, HCL Laptop X9912- AX9015, HCL Laptop Z24- Z2403 and so on HCL laptops are known for their portability as they are one of the slimmest in the Indian market. HCL laptops in India are customized according to the Indian customers, keeping in mind their needs, look and feel. The three basic funda which HCL implements in their laptops or you can say three basic points which is implemented in all the laptops in India are:
SLIM: HCL India is among companies making the slimmest laptops/notebook in India.
LIGHT: Lightweight is one of the main features, adding color to the laptops/notebook. POWER: And the most important part is the power of this HCL laptops/notebook. They are up to date and highly technology oriented.
All three features integrated together gives HCL laptops in Indian market, over the edge advantage. Being designed for all the generation, HCL laptops in India makes a rage among the people. With attractive color and design, ravishing looks and best suited technology HCL India knows how to market their products. HCL Support: On HCL’s special support website, http://hclsupportservice.in/, HCL only gives details about its warranty program. It does not offer drivers for download purpose, nor does it have any other feature. It does not even list the phone numbers for technical help.
Dell, one of the most recalled names when it comes to buying a laptop is undoubtedly retained as the favourite computing partner for users of all generations spanning various regions around the world. A perfect blend of efficiency, performance, elegance, customer service and more makes it the right choice for those thousands of prospective buyers of laptops or notebooks around the world. And now the gigantic notebook maker has spread its wings further with its Laptops now available in one of the world's most potential economy, India. With multifold increase in the IT conscious folks in the country over the years and a mammoth amount of laptop Buyers around the country at any given point makes it "not so bad" decision from Dell. The Dell distribution in India however remains different from that of the other countries. With not so many people inclined onto the online purchase, Dell has adopted a proper channel partner that distributes the Dell Products in the same old fashion that the folks in India are glued to. A treat to the all those users which have been longing to bag one from the vast range of Laptops from the brand, it won't be long before the brand would pose a strong competition for already prominent brand in the country. Dell has most of its series available in India through its online channel or Local resellers. Dell laptops come in several types meant for the various types of users. Dell’s range of laptops meant for the business class includes Optilex, Latitude and Precision which is meant for such features like reliability, serviceability and long life –cycles. The home and consumer class of laptops introduced by Dell includes Inspiron and xpx brands. These laptops emphasize on expandability and performance. High performance, lightweight and highly technology oriented add more value to dell laptop. You can enjoy traveling with your dell laptop in India or globally due to its lightweight nature and manufacturing compatibility for traveling. Adding color to the scenario Dell laptop never lags behind; it is available for all generation. From businessperson, who needs more technological Dell laptop to gamers
out there, with faster processor, big screens and high end graphics to students going to school, offering them lightweight dell laptop in India and globally. Dell India makes sure that the laptop/notebook is suitable for the buying generation and should fulfill the market demand. Dell Vestro: Specifically designed for the small business with, the laptops in the Vostro Series are feature packed appropriate enough for the computing needs of the small businesses, offering a reliable performance coupled with the enhanced security. The models are also lightweight and compact enough for a hassle free carry. Some of the models are ideally suitable for graphic computing. It also extends the advantage of affordability to the customers that come with a no compromise experience. Models in the Vostro Series: Vostro 1200, Vostro 1310, Vostro 1510, Vostro 1710, Vostro A840 Latitude Series: Latitude laptops provides higher speed, multimedia features, higher storage, is lightweight and battery life is good. Talking about the usage, business man, traveling worker, technology savvy, mobile oriented Persons are best suited to use latitude laptop offered by dell. Dell latitude laptops offer high security features and is quality, easy to use and performance oriented notebook. The commercial Laptop Series from the Dell, the Latitude Series is reengineered and designed with ground breaking advancements in durability, security, battery life, connectivity and remote admistration. It comes with exhaustive innovations from Dell like the Control Point, Latitude ON, Image Direct etc. Models in the Latitude Series: Latitude E6500, Latitude E6400, Latitude E5500, Latitude E5400 XPS Series: This is an yet another series offering thorough entertainment, mobility and security and is available in various colours. Hard core gamers love XPS offered by Dell in India and globally. With high settings and graphic cards this is not cheap. Technology packed piece, needs long time for upgradation. Models in the XPS Series: XPS M1330, XPS M1530 Inspiron Series: Jazzy Dell inspiron laptop is great selection for anyone. Available in 8 colors, these are highly trendy. Talking of speed and storage these are better than ever. Offering a distinctive look they are not quite expandable as latitudes. But they are more affordable.
Models in the Inspiron Series: Inspiron 13, Inspiron 14 and Inspiron 1525 Studio Series The Studio Series of Laptops that offers a blend of style, functionality and performance with personalization inside and out. They are available with U-Trim options and artist designs. Models in the Studio Series: Studio 15, Studio 17 Dell Support: Dell has a website, www.support.dell.com , which offers solutions to a whole host of common as well as not-so-common problems. It’s solution database is exhaustive. Moreover, the problems are categorised by topics, making things easier for the customer. The site offers technical support in a language that is comprehensible even to customers who are not technically literate. The site also offers options to download and install drivers. It also offers an update to check on the status of the order placed, or if you have received the order but have a problem with it. Also, there is a Chat with Technical Support which allows users to have a direct online chat with Dell’s technical support staff and solve the problems. There is another option as Dell Forums which allows users to chat and interact with other Dell users.
Acer Incorporated is a Taiwan-based multinational electronics manufacturer. Its product lineup includes desktops and laptops, as well as personal digital assistants (PDAs), serversand storage, displays, peripherals, and e-business services for business, government, education, and home users. Acer's subsidiary in India is Acer India (Pvt) Limited, and was incorporated as a wholly owned subsidiary of Acer Computer International, Ltd. in 1999. It is a notable vendor in key segments such as education, desktop computers and low profile notebooks for education purposes. Its headquarters are in Bangalore, India.
Travelmate series: Travel mate laptops/notebook offered by Acer in India are lightweight and slim, appropriate for traveling people. Integrated with latest technology and features travelmate series is the best for people who are always on tour. Tablet Pc series: complementing mobile technology Acer tablet pc series of laptops/computers offers exceptional mobility giving you high performance, flexibility and great dependability. It has option of pen-input functionality. The configuration is best suited for high performance. Aspire series: Aspire series of Acer laptops/notebook in India are here to increase your productivity adding more value to mobile computing. These Acer laptops/computer offers you great flexibility and support to your needs.
Ferrari series: The Ferrari series are as fast as Ferrari with the latest technology implemented these Acer laptops/computer in India. Giving you innovative design and flexibility these laptops are competing with the best market standards.
Acer Support: On Acer’s Indian website, www.acer.co.in, Acer has clearly mentioned their support and service policies. It lists various Toll free numbers for customer care. There is the facility to download drivers according to the model owned. But the biggest drawback is that it does not offer any technical help online. It does not even have a ‘getting started’ guide or a list of Frequently Asked Questions and their answers. Common software related problems can be easily resolved by the user if they follow a step-by-step detailed procedure. But Acer does not seem to realise this.
Lenovo Group Limited
Lenovo Group Limited is a multinational computer technology corporation that develops, manufactures and desktops and notebook PCs, workstations, servers, storage drives, IT management software, and related services. • 3000 family notebooks: 3000 lenovo laptops/notebook in India offers innovative notebooks for your worry free access. Compiled with latest technology these laptops/notebooks are suitable for small business houses and usage at home. All the features you need are integrated in the laptop and the best services and support is provided by lenovo India. Three series are available in 3000 family of lenovo laptops/notebook in India. C, V and N series of laptops to give you the best option according to your needs. ThinkPad notebooks: These are the more technology oriented and true value for your money. Design wise these are perfect. Security is the added advantage of these lenovo laptops/notebook. Built to serve more speed and functionalities these can be used for everyday computing, premium performance, thinnest and lightest and convertible tablets. All these are most reliable notebooks/laptops to server your daily needs.
Toshiba Corporation is a Japanese multinational conglomerate corporation, headquartered in Tokyo, Japan. The company's main business is in infrastructure, consumer products, electronic devices and components. • Basic Laptops: Basic laptops offered by Toshiba India are designed to meet your general needs. These can be used at home, office or any other business purpose. Basic laptops/notebook in India offered by Toshiba is powerful and configuration wise its appropriate to serve your needs. Toshiba India takes care of the basic configuration of this laptops/notebook to make it appropriate for all generations.
Satellite and tecra are the two laptop/notebook family offered by Toshiba which belongs to Basic laptop. • Thin and Light Laptops: Thin and light laptops offered by Toshiba India are best suited for the traveling personnels. The lightweight and thin Toshibalaptops in India makes you feel proud by their sound features. Easy to carry and available in wonderful colors. Satellite and tecra are the two laptop/notebook offered by Toshiba India which can solve your weight problem. High Performance Laptops: High performance laptops in India offered by Toshiba India are best suited for gamers and engineers who need more processing speed to perform their daily work. These Toshiba laptops/notebook are very powerful and high speed. Portege, Satellite and tecra are the three laptop/notebook offered by Toshiba India which are high performance laptops/notebook.
Qosimo is the newer brand of Toshiba laptops/notebook in India. Integrated with alllatest technology it provides you all the functionalities and features to serve your purpose. In addition these Toshiba India laptops are ultra portable, lightweight, supporting gaming and multimedia features to the fullest.
Pricing of laptops in India
The comfort level of consumers in India starts from 30,000 Rs. Starting range of laptops: 1. HP – Rs 35000 2. Sony – Rs 38000 3. Dell – Rs 32000 4. Acer – Rs 24000 DELL Dell Laptops for Home Users: Dell Inspiron 14 Price – 39,500/- to Dell Inspiron 15 Price – 36,900/Dell Studio 15 Price – 40,900/- to Dell Studio XPS 16 Price – 67,900/Dell Laptops For Small Businesses: Dell Vostro A840 – 31,500/- to Dell Vostro A840 – 29,000/-
Dell laptops for performance demanding applications: Dell Latitude 2100 – 26,750/- to Dell Latitude E5400 – 63,800/ACER For Home users: Acer Aspire 5315 – 22999/- to Acer Aspire 8920G – 80999/For Travelers: Acer TravelMate 4720 – 45999/- to Acer TravelMate 5720 – 50999/For niche users: Acer Ferrari 1100 – 80399/HCL: For personal users: HCL ME G3843 Laptop price - Rs.23700 to HCL ME Z3935 Laptop price - Rs.43928 For niche users: HCL ME P3859 LEAPTOP price – Rs.30480 For small businesses: HCL Netbook MH04 price - Rs.15,999 For young users: HCL ME G3843 Laptop price - Rs.23892 to HCL ME Z3935 Laptop price - Rs.43928 HP: For professionals: HP Pavilion DV9502AU Price – 39,000/- to HP Pavilion DV9731TX Price – 67,500/For businesses: HP 530 Business Laptop Price – 27500/- to HP 520 Business Laptop Price – 28500/Sony Viao: The pricing for Vaio notebooks including the X series featuring Kareena Kapoor as its brand ambassadors starts from Rs 64,990, Sony W series Net books are priced at Rs 27,490 and the pricing of Vaio CW series ranges from Rs 52,490 to 57,990.
In today’s world of convenience and convergence, most working professionals would confess to being acutely dependent on the computer and the Internet. How about then, if these essentials come together in a lightweight platform that you could carry around anywhere? This is exactly what you can do with the smaller and no-frills netbooks that many PC manufacturers are releasing these days. Ever since the launch of Intel’s Atom processor in 2008, the same size as that of a onerupee coin, computer makers have been engaged in a war to woo customers and establish themselves as the market leader in the netbook segment. But the problem is: With something as small as a 200-page hardbound book, how do you set it apart from competition? There’s little room in terms of adding features to a netbook. A netbook is essentially a no-frills PC for the casual user. This means that there’s usually no CD ROM drive and at times very little hard disc space than its bigger brother, the notebook. Moreover, the computing power is also lower than a conventional notebook. This, however, results in a longer battery life. The main concept behind the netbook is that it’s a light machine, used mainly to connect to the Internet. As the pricing and positioning of the product differs, companies add on features like a camera or a high resolution screen. Some have even moved out of the generally accepted specifications of netbooks to offer an even higher disk storage space, but at a premium obviously. Low pricing: Lower pricing than laptops is one of the most attractive features of netbooks. Economy brands like Acer and HCL tend to show more sales, purely due to their pricing. They fall in the Rs 18,000 to Rs 21,000 range. Highly portable, netbooks are becoming increasingly popular as they allow users to hook onto the internet anytime from anywhere. The pricing is around Rs 20,000; and with this category proliferating with variants (higher screen sizes and gesture sensitive touchpads), the price band stretches up to no more than Rs 25,000. HCL launched their Netbook models early in 2008 and so they were able to get a first-mover advantage in this new, emerging segment. The pricing decisions of the respective netbook vendors is a result of the positioning they have selected for their Intel Atom processor-based offerings.
Lifestyle computing: But not all companies have a similar market strategy. Catering to the premium segment, Sony prefers marketing its smaller laptop, the Vaio P, as a ‘lifestyle PC’, rather than a netbook. The smallest PC that Sony has is Vaio P, easily mistaken as a netbook. It is the size of a business envelope, roughly as thin as a cell phone and easily slips into a pocket or a handbag,” Essentially, there is little difference between other netbooks and the Vaio P series. Similar to netbooks offered from other companies, these too run on the Intel Atom processor, mostly offer lesser storage capacity and have no optical drive. However, the price band of Rs 50,000 to Rs 65,000, coupled with features such as camera, high screen resolution and snazzy design, puts the Sony Vaio P in a class of its own.
Another company which has successfully marketed lifestyle computing is HewlettPackard. HP was at the forefront of offering trendy designs on notebooks and has now introduced it in its netbook range. Priced slightly higher than its competition, it is designed for the fashion conscious consumer. The HP Mini is designed for people who want a light-weight notebook with premium appeal at affordable pricing. A specific target segment is the working women who need a laptop that is light on shoulders, great on performance and heavy on the style element. Popular among business executives: When netbooks initially came out, people thought it would be more popular among students and the young crowd. However, an equally big market has been the business executives and professionals who need the Internet on the go. Samsung netbooks are targeted at the household consumers – young students, professionals who do not have heavy computing needs as well as business executives who travel a lot and would like a light and dependable machine to access the Internet and meet their computing needs while on travel. The minimalist features of netbooks are a huge attraction for business executives. “The netbook is a perfect companion for professionals, students and businessmen, specifically
for people who travel a lot. The trend is catching up as we see people opting for a netbook as compared to a conventional notebook due to their own basic requirements, such as surfing and office applications, Growing Segment: Netbooks have been revolutionary in creating a whole new segment in the personal computers market. While the initial netbook models that hit the market were ‘stripped down’ versions of their notebook PC cousins, later models also feature hard disk drives. In this avatar, netbooks have been able to open a niche market of casual computer users – primarily net surfers and executives looking for a lighter, no-frills PC for use during travel and business meetings. According to IDC figures, when netbooks first came into the market in 2008, 37,000 units were shipped into India, compared to 2.3 million units of notebook PCs. But, this year the industry is projecting much larger sales figures. The unanimous opinion from companies is that this segment would grow very fast, with netbooks soon becoming an important part of their product line-up. While some feel the Indian netbook market would double itself this year, Samsung expects netbooks to contribute 50 per cent of its total notebook sales this year. Samsung also aims to garner a 7-8 per cent share in the Indian market by next year. Acer too sees a tremendous potential in India. They are expecting netbooks to be popular in India, especially among small and medium businesses, and also as a second computing device in upper-middle class homes. Going forward, the market for netbooks looks promising, as its demand will rise gradually with the increasing availability of internet bandwidth and GPRS/3G mobile connectivity across the country. Clearly, the netbook is ready to slip into more bags.
HP Campaign Last year, HP unveiled a versatile notebook PC featuring a unique and award-winning design that takes individual style and entertainment performance to new limits. HP and MTV held a contest for young people around the world to help design a special edition HP notebook. The theme was the cause that is most personal to you. It all starts with your personal view. Imagine that your design is a positive thought, a belief, a message you want to tell the world.
Hewlett-Packard is running a campaign, titled Greenovation, to urge consumers to take a pledge that they will dispose electronic goods such as printers, scanners and personal computers in a responsible manner. The company has created a website, Greenovation.in, where users can reach and provide their email address as consent to pledge. The website also offers users to opt for the HP Product Take Back Program. It will enable consumers to handover HP products to the company, which will dispose the products in a responsible way. HP is promoting the portal through online banner ads across various websites such as Yahoo!, Rediff.com and In.com. This campaign is mainly for brand building and consumers will now see HP as a responsible environment-friendly company. ‘The Computer is Personal Again': A Global Integrated Marketing Communications Campaign HP wanted to step away from selling computers as a commodity to telling a story in an autobiographical way. The campaign has resonated very well with business customers and consumers around the world. Additionally, it has established HP as the company on the forefront of delivering new technologies to enable today's digital lifestyle. The objective of the campaign was "to grow a more profitable worldwide business through the introduction, support, and marketing of innovative products, services, and solutions that will deliver the absolute best customer experience in personal technology." The campaign was targeted at PC users aged between 18 and 34 and small to mid-sized companies. The campaign takes off from the basis that a personal computer is an extension and expression of oneself, containing as it does the entire user's information, personal and work-related. The campaign also seeks to go beyond the technological
aspects and convey the message that HP's personal computers are a more powerful personal tool, and user-friendly, secure and reliable ones. HCL Marketing Strategies: The HCL Global branding initiatives was conceptualized in Jan 05 with an objective to unify the global enterprise and connect with all stakeholders. Done in three phases, the brand communication took a single thread (that of HCL being in the leading edge of technology), while expressed it in different ways. The Fearless Campaign: The 'Fearless' was a print-led TV campaign, which brought out the core HCL values of Guts, Courage and Passion. The campaign also spoke about the size and width of the enterprise, while introducing the HCL Heritage and stature.
'The Numbers do the talking' Campaign: 0 and 1, the binary digits were taken as HCL's brand ambassadors. The story they weave around the different areas of expertise that HCL has is the crux of the campaign. The campaign, initiated in Jan 05 went on till March 06 and explained the multifaceted technology width of HCL. The campaign helped in sustaining and continuing the brand stature of the company.
Touch Technology Campaign: This was a Television advertisement. 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." More recently, in 2009 HCL Infosystems has re-branded its range of laptop products as ‘ME’, and it aims to raise its market share in the segment to 20 per cent from the existing 7.34 per cent in two-three years. Over the next two-three years, the company would spend Rs 40-50 crore around the re-branding exercise. The new HCL ME campaign has been made keeping in mind the requirements of today’s customers who are on the move and seek seamless connectivity to the virtual world. A survey carried out by research firm IMRB on key youth trends has revealed that there is an increasing need for mobility among the target segment but the nuances of mobility varied in different age brackets. For teenagers, laptops are a means to belong to their community, while the jobseeker’s biggest motivation is career growth and technology and the laptop is an enabling tool. For the mid-level executive, the laptop offered mobility and the ability to work at his own pace. The new marketing campaign for ‘ME’ is aimed at establishing a youthful and vibrant image of the brand and ensure a stronger connect with ‘NextGen consumers’. All HCL Digilife stores and retail outlets would be re-branded as part of the strategy.
Dell Marketing Strategies: Dell is all set to reach buyers at every nook and corner of India with its multi-channel marketing strategy. The company is still clinging to its original marketing methodology of catering to customers directly from the company. However, it has adopted a strategy of creating as many channels as possible to reach purchasers - not only in metros but also in all remote places. The company has uniform pricing of products all over the country, with full opportunity for product customisation, on-site service even at remotest regions, warranty programmes spanning several time frames, and toward passing on the (central) tax benefits to the customers. Through customers' feedbacks over a period of time, Dell realises the need for providing buyers the opportunity for touching and feeling their products - before making purchase decisions. The PC manufacturer also notes that - in this country, organised retail is still at a very nascent stage. The consumer PCs are being sold in an unorganised way. The company finds that buying PCs from local Resellers or System Integrators (SIs) has some advantages for customers, like - getting the products within geographical reach, immediate (post-sale) problem fixing at doorstep, better service and price because of the existing customers influence etc. From its survey of the existing Indian IT channel, Dell observes that most vendors operate here with a volume-based incentive scheme, i.e. buy more quantity and take more benefit'. The result is - the partners who garner a large volume of stock, are invariably able to offer a better price to customers, and outcast the small resellers. It is leading to a kind of disparity in the channel - everybody is not able to offer the best possible price at one point of time. The other drawback in the existing channel system that Dell finds is - to be a successful player, a reseller needs a large amount of capital. If the reseller does not buy a lot of products he/she cannot be competitive in the market. So, there is a huge entry barrier for the new venturers too. Thus, the PC vendor is now adopting a new strategy. The evolved marketing plan is referred to as the Direct-plus strategy. Direct-plus strategy: Dell planned - the model that they frame for India should combine the strength of the channel, the strength of the Dell's direct model and still stays away from the challenges to the healthy business, like volume-based business, huge investment in inventory etc. They believe they have found the game-changer, which can address all of these issues. The Direct-plus plan is being implemented in multiple ways. Dell set up its shop-in-shop in Tata Croma, Malad, Mumbai. The company intends to shortly establish more such outlets in other Croma branches nationally. Any buyer can walk in to the Tata Croma outlet, he/she can see the whole brand of products displayed there, compare and select a Dell model with preferred colour, weight, memory size etc., based on his/her budget. The Dell-trained sales representatives are there to understand the customer's need, and guide him/her to the right purchase decision. However, the customer has to order his customised PC. Then the product will be manufactured (at Dell's factory in Sriperumbudur, Tamilnadu) and directly home-delivered. In the case of Tata Croma,
what they have done is - the shop-in-shop is manned by Dell. If you go to that outlet you do not get a Croma Bill. You get a Dell invoice. It is purely a display and a sales point. Sales-affiliate programme: Dell has planned to appoint its affiliates out of large cities, especially, in the towns where the population is only 50,000 to 1 lakh. The Sales-affiliate programme empowers SIs, resellers and shop owners across the country to offer Dell products to their customers without having to make huge investment, to take risk of price drop, to bother about the volume-based incentive, to worry that there is a next-door shopkeeper who will give a better discount. They have 20 Master Sales-affiliates across the country. They help customers buying Dell's products by placing orders online. They may have a couple of products on display, however, the ultimate dealing is being managed directly by the company. The win-win situation: All the Dell's programmes are based on flat incentive or margin structure. The salesaffiliates need not even directly handle the products. Dell is letting them focus on what they do the best - sales. They just need to advise customers on the right products, and simply place the order online. This system also brings huge benefit to the customers. They get the freshest technology, pay less for lower supply chain cost, get tax benefit and deal directly with the manufacturer. Acer marketing strategy Acer had been aggressive in building its brand image in India. It signed up Hrithik Roshan, a popular Hindi film star, as its brand ambassador to promote its products. The advantage of having a brand ambassador like Hrithik Roshan was that he helped in brand recall and in associating Acer with high quality. To have greater brand visibility, Acer began focusing on the retail outlets. As of May 2006, Acer had 225 retail outlets and 179 retail partners. Analysts felt that the retail network was a prime channel for the movement of premium products like notebooks, consumer desktops, and home theater solutions. Acer's retail strategy was such that each retail outlet was allocated a geographical area in the city so that the individual retailers could grow their business without infringing on another Acer partner's customer base. The channel partners were provided training and emphasis was placed on channel communication and relationship management. Acer's focus in India is on education, youth, and retail. For the education segment, it built solutions which fit the needs and budget of the students. On the retail front, it tied up with large format retail stores such as Croma, Home Solutions, Next, and Metro.
Strengths: HP laptops in India are beating technology to drive a great force of power and core competency in the market. Technological advancement is the market demand nowadays, but HP Compaq India is going beyond the market demand. Taking care of consumer need, HP Compaq is offering trendier and more technologically advanced laptop computers in India. Realizing the potential of Indian market, HP Compaq laptops\notebook are flooded in Indian market with all great features and functionality. Considering the needs of Indian consumer HP Compaq India has researched the market and knows how to advertise their laptop computer in Indian market. HP offers great dependability. They have captured the market running successfully all over globe. HP India a brand you can rely upon. Making their mark in information technology world Compaq India is offering wide range of stylish and awesome laptops, which are more trendy and jazzy. Making their laptops computer lightweight, powerful
and user friendly HP Compaq has made easy for travelers to carry their laptops. Providing services to large business houses to personal use HP laptops/notebook in India are one of the best brands to look for. Hp laptops are known to have high efficiency and performance. These have high durability features. With its popularity spread in innumerable countries, HP laptops are known to be highly affordable as well. There are many models of the Hp laptops meant for varied uses. Great designs along with the right technology provide the best entertainment and productivity to the user. The Hp laptops are also considered great in terms of mobility. Weaknesses: HP does not diversify its products. The range of models is not very exhaustive. This is an area where other companies score over HP. Opportunities: Introduction of Touch pad and think pad expected to boost company’s sale. Opportunity to grow since laptop market is emerging in India. Hp is already a market leader so great opportunity to be the king of market. It is low on price and high on configuration. Threats: HP has threats from Acer which offers more or less the same features at a lesser price.
HCL Strengths: Global Presence Work Culture Strong distribution network Long standing relationship with customers Pan India support & service infrastructure 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. Across 24 locations in 16 countries. 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. The mass markets handled through a chain of dealers, resellers and a retailer which helps bring technology usage closer to the individual. It has very strong distribution network. Weaknesses: Inadequate marketing skills Unsatisfactory After-sales service Opportunities: Capable of building brand name Customisation of laptops Tie ups with various MNCs enable to extract their core competencies like Hardware, Software, Training, Networking, Telecom and System Integration Capable of developing technology and engineering solutions in both the system and application software areas. The core strength of HCL is the talent and innovativeness of its people which enables it to provide the “right solution at the right time.” Threats: Competitors have more attractive substitute products and Technological shift as a result of research & development; Daily new technologies are emerging.
Suggestions for Lenovo Lenovo would like to carve out a lucrative niche. Interestingly, India was the first country where Lenovo launched consumer PCs and notebooks. However, despite some aggressive TV campaigns featuring sibling duo Saif and Soha Ali Khan, it hasn’t managed to connect with Indian consumers in a big way. Lenovo would be best served in the consumer market by focusing on brands like its IdeaPad brand rather than on the 3000 value line. Time and again, we have seen that Indian consumers deviate from the usual price consciousness when it comes to laptops. In other product categories, price is the most important factor but when it comes to notebooks, buyers want a full-fledged model with loads of styling. Laptops priced below Rs 30,000 have never done as well as those priced in the Rs 35,000 to 50,000 band. The relative failure of netbooks to take off in the Indian market is another pointer to this preference for value (features/price) rather than raw price. Moreover, Lenovo’s 3000 line up starts with a bunch of DOS laptops (although some of the higher end models do come with Vista Basic, not all of them do). Laptops with an Operating System usually cost maybe 10% more than laptops without and consumers have realized that it’s better to have a legit copy of Windows.
If you look at HP and Lenovo laptops from the brand perspective, HP has clear demarcation between its brands and there is no overlap to speak of. In Lenovo’s case both the IdeaPad and 3000 series brands overlap to a certain extent. Under the Idea brand it has netbooks at the entry-level and laptops in the mid-range while the 3000 series consists solely of laptops, starting with DOS machines and going up to Vista Home Premium models. While both are entry-level/mid-range brands, the Idea netbooks/laptops are definitely more attractive. Keeping the above in mind, Lenovo should ideally go head-to-head with HP’s consumer notebook brand line up with its Idea range of notebooks and netbooks. With its avowed plan of frequent product releases and brand building that should see it recover ground in the Indian laptop market. The company also intends to broaden its channel reach, which it is going to have to do to compete effectively in the consumer market. One of the reasons why HP’s the numero uno in this segment is because of its HP exclusive stores that ensure that a prospective buyer is exposed to a wide range of HP products when the time comes to buy a machine. Lenovo will have to ensure that prospective buyers will see a Lenovo store right beside the HP store if it is to get a double-digit share of the Indian PC/notebook mart. Suggestions for HCL
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 makes the customer to lose his trust.
HCL 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 advertisements and as a result their brand awareness will increase. 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 us Indians like products that last long. Most of their products of HCL are standard product whereas now is the age of customised products and its competitors are trying to provide customised products. HCL should make strategic alliance with several financial organisations that can provide installment facilities to the customer as customers are generally interested buying PC on installment. 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. 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 should add a good tag line to its name that can make the association of customer to the company.
1) Which is the most selling brand in laptops? Acer, HP, Compaq 2) Which brand has the lower price? Acer 3) Which brands comes with more facility but lower price? Lenovo 4) Two important brands competing on the basis of price and quality? In Quality- Sony and Dell and in Price- HP and Dell 5) Which is the latest launched in laptops? HCL- Me series 6) Which is the latest trend in laptops? Touch screen 7) Which company’s dealer relationship is better? I-ball 8) which brands after –sales service relationship is better? HP