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FOR THE AWARD OF THE DEGREE OF BACHELOR OF COMMERCE (HONOURS) BY SYED ZUBAIR 332-08-01835 SUBMITTED TO
OSMANIA UNIVERSITY ST. JOSEPH DEGREE & P.G COLLEGE (Affiliated to Osmania University) King Koti,Hyderabad-29. 2009-2010
A PROJECT REPORT ON
“SALES AND SERVICE OF HEWLETT PACKARD AND CASE STUDY ON MASS ENTERPRISES”
PROJECT SUBMITTED TO OSMANIA UNIVERSITY IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF COMMERCE [HONOURS] BY SYED ZUBAIR [332-08-01835]
SUBMITTED TO DEPARTMENT OF COMMERCE St. JOSEPH’S DEGREE & P.G. COLLEGE [AFFILIATED TO OSMANIA UNIVERSITY] HYDERABAD 2009 – 2010
This is to certify that the project titled “SALES AND
SERVICE OF HEWLETT PACKARD AND CASE STUDY ON MASS ENTERPRISES” is an original work of master SYED ZUBAIR
bearing roll no. 332-08-01835 in partial fulfillment for the award of the degree of bachelor of commerce(honors) , submitted to osmania university. This report is an authentic work done by him under my guidance. This project work has not been submitted to any other university or institute for the award of any degree or diploma.
Place:HYDERABAD Date: Mrs. NISHA MATHUR (internal guide)
This is to certify that the project work entitled “SALES AND
SERVICE OF HEWLETT PACKARD AND CASE STUDY ON MASS ENTERPRISES” which is being submitted by SYED
ZUBAIR roll no. 332-08-01835 in partial fulfillment for the award of Bachelor of Commerce (Honours) in ST. JOSEPH’S DEGREE AND P.G COLLEGE to the Osmania University is a record of the bonafide work carried out by him under the guidance and supervision at Samdani plastics . This project work has not been submitted to any other university or institute for the award of any degree or diploma.
Principal Guide internal
HOD External Examiner
With a grateful heart, I want to thank almighty god and all those who have helped me in making this project a success. I take great pleasure in acknowledging with gratitude the constant guidance and wholehearted support that I received at MASS ENTERPRISES In particular I would like to thank Mr. SHUKOOR SHAKER the owner of MASS ENTERPRISES and his brother Mr. MABOOD NASER for their wholesome support through out the project. My sincere thanks to MRS. NISHA MATHUR and MRS. RENUBALA MADAM both from the (Department of Commerce) for guiding me and giving me some useful tips through out the project. I also thank all the workers in MASS ENTERPRISES for their whole hearted cooperation. I also would like to thank all the librarians, the computer lab faculties for providing the required facilities for completing my project. I am grateful to my family members for their kind support which kept my confidence and enthusiasm high during the execution of the project.
I here by declare that the project titled “SALES AND SERVICE ON HEWLETT PACKARD” in MASS ENTERPRISES, Masabtank , Hyderabad , submitted by me to Osmania University ,in partial fulfillment for the award of Bachelor Of Commerce (Honours) is a bonafide carried on by me . It has not been submitted anywhere in full (or) part to any other university / institutions for award of any degree, diploma fellowship or similar titles or prizes otherwise.
[SYED ZUBAIR] B.COM (HONS)-FINAL YEAR 332-08-01835
INDEX CONTENTS Chapter I: Introduction Concept of Sales and Service CRM Implementation Objective Scope of the Study Research Methodology Limitation of the Study Chapter II: Company Profile Profile of Hewlett Packard Profile of Mass Enterprise Chapter III: Review of the Study HP Corporate Marketing Strategy HP Strategy Related to Sales HP Strategy Related to Service Customer Service Customer Relation Management HP’s Effect on Communities Chapter IV: Data Analysis Chapter V: Findings and Conclusions BIBLIOGRAPHY QUESTIONNAIRE 1-12
Meaning of sales: A contract involving transfer of possession and ownership of goods or property, or the entitlement to a service, in exchange for money or value is termed as sales. A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity.
A sale is completed by the seller or the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the douche of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale is still valid and gives rise to an obligation to pay. Academically, selling is thought of as a part of marketing, however, the two disciplines are completely different. A sale often forms a separate grouping n a corporate structure, employing separate specialist operatives known as salespeople. Selling is considered by many to be a sort of persuading "art". Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesperson relates his or her offering of a product or service in return enabling the buyer to achieve their goal in an economic way. While the sales process refers to a systematic process of repetitive and measurable milestones, the definition of the selling is somewhat ambiguous due to the close nature of advertising, promotion, public relations, and direct marketing Sales departments often form a separate grouping in a corporate structure, employing individuals who specialize in sale specific roles.
Selling involves sales which are the pinnacle act of completed of a purchasing activity. Selling also involves salespeople who are the primary agents of facilitating sales. Selling is the profession-wide term, much like marketing defines a profession. Recently, attempts have been made to clearly understand who is in the sales profession, and who is not. There are many articles looking at marketing, advertising, promotions, and even public relations as ways to create a unique transaction. Many believe that the focus of selling is on the human agents involved in the exchange between buyer and seller. Effective selling also requires a systems approach, at minimum involving roles that sell, enable selling, and develop sales capabilities. Selling also involves salespeople who possess specific set of sales skills and knowledge are required to facilitate the exchange of value between buyers and sellers that is unique from marketing, advertising ,etc. From the company point of view, there are three main objectives of sales management: sales volume, contribution to profit, and continuing growth. Top management has the final responsibility, because it is accountable for success or failure of the entire enterprise. In the process, objectives are translated into more specific goals – they are broken down and restarted as definite goals that a company has a reasonable chance of reaching. Once these goals are finalized, it is up to sales force that play critical role in implementing the selling plans.
Essential elements in a valid sale:
(1) Competence of both the buyer and seller to enter into a contract (2) Mutual agreement on the terms of exchange (3) A thing capable of being transferred (4) A consideration in money (or its equivalent) paid or promised. When both the seller and the buyer perform their respective duties by abiding the above 4 elements of a valid sale, one can say that sale is executed Who is a seller? One who sells or initiates contracts to sell goods; the one who transfers property as a result of a sales contract. Who is a buyer? One who buys or agrees to make a purchase or one who has the capacity to finance his demand and receives property in exchange for money or valuable consideration. Meaning of service: Customer service also known as Client Service, it is a provision of service to customers before, during and after a purchase. Customer service is an organization's ability to supply their customers' wants and needs. Excellent customer service is the ability of an organization to constantly and consistently exceed the customer's expectations. Improving customer service involves making a commitment to learning what our customer’s needs and wants are and developing action plans that implement customer friendly processes during and after a purchase. The service provided should be upto the customer’s satisfaction as this would lead to a better image of the company in the market, thus enhancing the sales.
There are five characteristics to a service which are discussed below:
1. Lack of ownership: one cannot own and store a service like you can a product. Services are used or hired for a specific period of time. 2. Intangibility: one cannot hold or touch a service unlike a product. In saying that although services are intangible, the satisfaction consumers obtain have a direct impact on the sales of the company. 3. Inseparability: Services cannot be separated from the person who is rendering a service. 4. Perishability: Services lasts for a specific period of time and cannot be stored like a product for later use. 5. Heterogeneity: It is very difficult to make each service experience identical. Service Marketing Mix Marketing is an organizational function and a set of process for creating, communicating and delivering value to customers and for managing customer relationship in a way that benefits the organization and its stakeholders. It is a social process wherein individuals and groups obtain what they need and want through creating, offering and exchanging goods and values with others. But customers do not consume whatever the industry produce, hence the producer must find the needs and preferences of the customer and then satisfy their needs. A producer can deliver better service to its customers by striking a proper balance by using the concept of service marketing mix. The service marketing mix comprises off the 7’p’s. These include:
• Product • Price • Place • Promotion • People • Process • Physical evidence
A tangible object or an intangible service that is mass produced or manufactured on a large scale for the purpose of sale. A producer should provide better product quality, design, features, packing and service to its customers in order to have a niche in the market.
The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Promotion represents all the communications that a marketer may use in order to promote a product. Promotion has four distinct elements viz. advertising , public relations, word of mouth and point of sale. Advertising covers any communication that is paid for, from television commercials, radio, Internet adverts, through print media and billboards. One of the most notable means of promotion today is the Public relations where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is an apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and point of sale.
Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for.
Refers to the systems used to assist the customers in delivering the service and the time spent for the delivery of the product and it is a procedure, mechanism and flow of activities which lead to an exchange of value.
→ Physical Evidence
Physical Evidence is the element of the service marketing mix which allows the consumer to make judgments on the organization based on the service received. Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provided which will have a direct impact on the organizations perceptual plan of the service. To a certain extent managing services are more complicated than managing products, products can be standardized, and to standardize a service is far more difficult.
A Successful CRM Implementation Project in a Service Company
Customer relationship management - CRM implementations increased rapidly in Slovenia in the last few years, following the trends elsewhere. Studies reporting how the implementation project goes on before, between and after the implementation are scarce. Case study demonstrates that CRM implementation is a holistic and complex concept, which means that it is not merely an integration of new information technology, but everything that happens around the business processes changes. Study showed the need for efficient leadership, acquirement of resources and CRM strategy implementation control; trust to the software solution shouldn’t be selfunderstood. Through implemented analytical CRM company can improve the relationship with customers, achieve larger information sharing between employees and accept better strategic decisions. Key words: customer relationship management implementation, customer focus, process approach, quality, customer information, communication, marketing, Service Company.
Organizations nowadays compete on a global market. It is impossible to avoid free transfer of goods with the help of protection laws and different obstacles in modern times; customers have a wide choice, that’s why they became more sensitive, demanding, and they are looking for new and better products. In saturated markets organizations cannot freely decide, with which customers they would like to establish a business relationship. The effectiveness of business is very dependent of the culture (interests, values, and motives), organizational health (team work, loyalty, learning, knowledge management) and way of dealing with customers. Establishing
healthy culture and achieving values is connected with the degree of order and with the ways how organization treats the customer. As a consequence, CRM has risen to the agenda of many organizational strategies. Fundamentally however, CRM systems can be viewed as information systems aimed at enabling organizations to realize a customer focus. Organizations have to deal with this kind of problems for years now. Experiences confirm that it is very difficult to enter the area of relationship management without well organized data base, in which all data concerning businesses of organization with its consumers are contained. Data base serves as a lever for integration of applications and data, from which information are summarized for different types of CRM solutions. Solutions for analytical CRM draw information from data base for the use of analyzing the demographic information about customers, history, profitability and behavior of singular customer. Solutions for the operational CRM benefit the relationship with customers through every possible communication channel. Basic question of the paper is concerning the strategies of CRM implementation that have to be decided before, between, and after the CRM implementation. Secondly, does the CRM implementation represent the basis for improvement of relationship with customers, better information deployment of employees and better strategic decisions making.
Objectives of the Study •
To study the effectiveness of sales and services of Hewlett Packard. To know the reason why people prefer (HP Hewlett Packard) brand. To comprehensively understand the company’s business, analyse its performance by systematically studying its market shares. To find out the present Performance of Hewlett Packard in Hyderabad.
Scope of the Study The scope of the study is confronted to the sales and services delivered by Hewlett Packard.
The source of information for this study is based on the information provided by the Regional Managers of Hewlett Packard for both Sales & service (A.P.State).
Research Methodology The information is collected from the employees of Hewlett Packard and its valuable customers, questionnaires were used to collect the primary data from the customers.
Sample Size The sample size of the study undertaken is 50 customers from the city.
Data Collection There are various methods available for data collection, for the study the method used are Primary data and Secondary data: 1. Primary data: primary data is original data gathered from the employees of Hewlett Packard and its esteemed customers specifically on the project. 2. Secondary data: secondary data refers to data which is already available i.e. from journals, news papers and periodicals. In this study one to one method of survey was done to collect the primary data and it is found to be the best to collect the data. Statistical Techniques Bar charts & Pie charts are used to analyze the data and to arrive at conclusions.
Limitations of the Study Every effort and care has been taken to overcome the limitations and to make the study useful.
Following are the limitation listed below:
1. Human behavior is too complex to determine. So the information disclosed by them may not be very accurate.
2. The study does not include much of financial aspects of Hewlett Packard as it would lead to higher volume of study.
3. The size of sample survey was 50 customers.
4. It might be possible that the answers given by the respondents are full of biasness.
5. The sales and service coordinator of the company could not give much of his time and refuse to provide sufficient data.
Chapter - 2 Company profile
With headquarters in Hyderabad, Mass enterprises was establish on1-92008,provides superior sales and service for HP “HEWLETT PACKARD” Mass Enterprises are authorized RSR,DBP & DPSP partner for sales of HP printers & Inks, authorized service provider for HP, serving both the domestic and interstate sectors. Mass enterprises bring a fresh and
innovative approach to consulting services, acting as liaison between the end user and manufacturer. Mass Enterprises goal is to exceed the expectations of every client by offering outstanding customer service, increased flexibility, and greater value, thus optimizing system functionality and improving operation efficiency. The company’s associates are distinguish by their functional and technical expertise combined with their hands-on experience, thereby ensuring that our clients receive the most effective and professional service.
MASS Enterprises also offers total solution to CAD, GIS and in Graphics Arts. In a very short period of time the company has established itself as a professional Enterprises unit that provides services to the utmost satisfaction of its clients. This fact is recognized both by the competitors and its clientele. Vision to reach number one position is striving company further
to improve the skills, professionalism and commitment. The company offer perfect product meeting consumer needs and budget.
As experts in sales and services, Mass Enterprises are involved in every stage upon client selection of HP Products from implementation to completion offering continual functional and technical support. Company’s extensive skills encompass all aspects of implementation and operation, including business requirements definition, development of functional specifications for client approval, system design. Typically, the employees of the company are on-site at retailer’s locations handling clients contact, providing functional and technical training and support, and resolving any and all troubleshooting issues that arise when the client initiates printer usage in a live setting.
Sales and Supplies of high-end graphical peripherals and Digital Copiers. Mass Enterprises are dealers in India for the following companies.
Mass Enterprises is DBP (Design Jet Business Partner), DPSP (Design Jet plotter service Provider) and RSR’s (Registered Supplies Resellers) for HP Large format Inks Supplies Cartel the graphical art industry of whole Andhra Pradesh.
Mass Enterprises is Authorised Business Partners for XEROX India Ltd. covering the sales of complete range of color and digital copiers in XEROX portfolio.
The ultimate goal of MASS ENTERPRISES is to have its own identity in the Printing industry as a most trusted sale &service provider in all aspects and a one stop solution for high quality, time bound and cost effective. Mass Enterprises is committed to maintain100% client’s satisfaction by certain values:
Deep Integrity & Ensuring code of conduct
Precious timekeeping & Highest level of Accuracy
Potential leadership with an Energetic Team Sufficient Infrastructure for anytime Expansion Continuous Growth & 100% success
Integrity & code of conduct:
Flexibility process to meet client’s style and to built trust based relationship.
It is the company’s policy not to disclose any information about our clients to any other person or organization. The information we received will be used only for which our client provided to us.
Time keeping and accuracy:
Company strongly believes the speed & accuracy have to be balanced in track. The young team of Mass Enterprises trained well to improve their speed day by day with 100% accuracy & flexibility enough to work extra time even in non working days to complete the project in stipulated time. Setting benchmark continuously with integrated process & interaction between committed team members to ensure that quality levels are high from the initial stage of a project to its final outcome.
Mass Enterprises is the company with diverse talent &skills. Company’s leadership structure offers a dynamic atmosphere in which talented, creative &motivated people thrive. Company doesn’t’ just acknowledge hard work & achievements, but also reward it & groom it. Mass Enterprises have an experienced team of ambitious, vibrant, young professional having ability to update with latest trends & requirements of the clients.
For more details company’s website @ www.massentindia.com
The Hewlett-Packard Company (NYSE: HPQ, NASDAQ: HPQ), commonly known as HP, is one of the world's largest information technology corporations. Headquartered in Palo Alto, California, United States, it has a global presence in the fields of computing, printing, and digital imaging, and also provides software and services.
HP was founded on January 1, 1939 as a manufacturer of test and measurement instruments, by Bill Hewlett and Dave Packard, with a US$538 investment. They had both graduated from Stanford University in 1934. The company originated in a garage there while they were still fellows at Stanford. (So their story was more "academic gowns to riches" than rags to riches). Their first product was a precision audio oscillator, the Model 200A. Their innovation was the use of a small night-light bulb as a temperature dependent resistor in a critical portion of the circuit. This allowed them to sell the Model 200A for $54.40 when competitors were selling less stable oscillators for over $200. The Model 200 series of generators continued until at least 1972 as the 200AB, still tube-based but improved in design through the years. At 33 years, it was perhaps the longest-selling basic electronic design of all time.
HP is the world's largest technology company 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.
HP markets its products to households, small to medium size businesses and enterprises both directly, via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. HP posted US $91.7 billion in annual revenue in 2006, compared to US$91.4 billion for IBM, making HP the world's largest technology vendor in terms of sales. In 2007 the revenue was $104 billion, making HP the first IT Company in history to report revenues exceeding $100 billion. HP is the largest worldwide seller of personal computers, surpassing rival Dell, according to market research firms Gartner and IDC reported in January 2010 the gap between HP and Dell widened substantially at the end of 2009, with HP taking a near 8.3% market share lead. HP is also the 6th largest software company in the world. In 2008 HP retained its global leadership position in inkjet, laser, large format and multi-function printers market. Also HP became #2 globally in IT services as reported by IDC & Gartner. It is one of the only American PC-focused computer companies publicly traded under the NYSE. Major company changes include a spin-off of part of its business as Agilent Technologies in 1999, its merger with Compaq in 2002, and the acquisition of EDS in 2008, which led to combined revenues of US$ 118.4 Billion in 2008 and a Fortune 500 ranking of 9 in 2009. Moreover in November 2009, HP announced the acquisition of 3Com.
William (Bill) Hewlett and David (Dave) Packard both graduated in electrical engineering from Stanford in 1935. The company originated in a garage in nearby Palo Alto during a fellowship they had with a past
professor, Frederick Terman at Stanford during the Great Depression. Terman was considered a mentor to them in forming Hewlett-Packard. In 1939, Packard and Hewlett established Hewlett-Packard (HP) in Packard's garage with an initial capital investment of US$538.Hewlett and Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett. Packard won the coin toss but named their electronics manufacturing enterprise the "Hewlett-Packard Company". HP incorporated on August 18, 1947, and went public on November 6, 1957. Of the many projects they worked on, their very first financially successful product was a precision audio oscillator, the Model HP200A. Their innovation was the use of a small light bulb as a temperature dependent resistor in a critical portion of the circuit. This allowed them to sell the Model 200A for $54.40 when competitors were selling less stable oscillators for over $200. The Model 200 series of generators continued until at least 1972 as the 200AB, still tube-based but improved in design through the years. At 33 years, it was perhaps the longest-selling basic electronic design of all time. One of the company's earliest customers was The Walt Disney Company, which bought eight Model 200B oscillators (at $71.50 each) for use in certifying the Fantasound surround movie Fantasia.
The company was originally rather unfocused, working on a wide range of electronic products for industry and even agriculture. Eventually they elected to focus on high-quality electronic test and measurement equipment. Throughout the 1940s to well into the 1990s the company focused on making signal generators, voltmeters, oscilloscopes, counters, and other test equipment. Their distinguishing feature was pushing the limits of measurement range and accuracy. For instance, almost every HP voltmeter or signal generator has one or more extra clicks of its knobs than its competitors. HP volt- or ammeters would measure down and up an extra 10 to 100 times the units of other meters. Although there were good reasons why competing meters stopped at 1 volt full scale, HP engineers figured out ways of extending the range of their equipment by a considerable amount. They also focused on extreme accuracy and stability, leading to a wide range of very accurate, precise, and stable frequency counters, voltmeters, thermometers, and time standards.
The sixties and seventies
HP is recognized as the symbolic founder of Silicon Valley, although it did not actively investigate semiconductor devices until a few years after the "Traitorous Eight" had abandoned William Shockley to create Fairchild Semiconductor in 1957. Hewlett-Packard's HP Associates division, established around 1960, developed semiconductor devices primarily for internal use. Instruments and calculators were some of the products using these devices. HP is acknowledged by Wired magazine as the producer of the world's first personal computer, in 1968, the Hewlett-Packard 9100A. HP called it a desktop calculator because, as Bill Hewlett said, "If we had called it a computer, it would have been rejected by our customers' computer gurus because it didn't look like an IBM. Therefore the company decided to call it a calculator, and all such nonsense disappeared." An engineering triumph at the time, the logic circuit was produced without any integrated circuits; the assembly of the CPU having been entirely executed in discrete components. With CRT readout, magnetic card storage, and printer the price was around $5000. The company earned global respect for a variety of products. They introduced the world's first handheld scientific electronic calculator in 1972 (the HP-35), the first handheld programmable in 1974 (the HP-65), the first
alphanumeric, programmable, expandable in 1979 (the HP-41C), and the first symbolic and graphing calculator HP-28C. Like their scientific and business calculators, their oscilloscopes, logic analyzers, and other measurement instruments have a reputation for sturdiness and usability (the latter products are now part of spin-off Agilent's product line). The company's design philosophy in this period was summarized as "design for the guy at the next bench".
The eighties and nineties
In 1984, HP introduced both inkjet and laser printers for the desktop. Along with its scanner product line, these have later been developed into successful multifunction products, the most significant being single-unit printer/scanner/copier/fax machines. The print mechanisms in HP's tremendously popular LaserJet line of laser printers depend almost entirely on Canon's components (print engines), which in turn use technology developed by Xerox. HP develops the hardware, firmware, and software that convert data into dots for the mechanism to print. In the 1990s, HP expanded their computer product line, which initially had been targeted at university, research, and business customers, to reach consumers. Later in the decade HP opened hpshopping.com as an independent subsidiary to sell online, direct to consumers; the store was rebranded "HP Home & Home Office Store" in 2005. HP also grew through acquisitions, buying Apollo Computer in 1989, Convex Computer in 1995, and Compaq in 2002. Compaq itself had bought Tandem Computers in 1997 (which had been started by ex-HP employees), and Digital Equipment Corporation in 1998. Following this strategy HP became a major player in desktops, laptops, and servers for many different markets. In 1987, the Palo Alto garage where Hewlett and Packard started their business was designated as a California State historical landmark. In July of 1999, HP appointed Carly Fiorina as CEO.
Two Thousand and beyond …
HP merged with Compaq in 2002. HP became a major player in desktops, laptops, and servers for many different markets. After the merger with Compaq, the new ticker symbol became "HPQ", a combination of the two previous symbols, "HWP" and "CPQ", to show the significance of the alliance and also key letters from the two companies Hewlett-Packard and Compaq (Compaq logo was famous for its "Q" on the logo and in May 2006, HP began its campaign, The Computer is Personal Again. The campaign was designed to bring back the fact that the PC is a personal product. The campaign utilized viral marketing, sophisticated visuals, and its own web site (www.hp.com/personal). on products). On May 13, 2008, HP and Electronic Data Systems announced that they had signed a definitive agreement under which HP would purchase EDS. On June 30, HP announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired. "The transaction still requires EDS stockholder approval and regulatory clearance from the European Commission and other non U.S. jurisdictions and is subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement." The agreement was finalized on August 26, 2008 and it was publicly announced that EDS would be re-branded "EDS an HP company." As of September 23, 2009 EDS is known as HP Enterprise Services. On November 11, 2009, 3Com and Hewlett-Packard announced that Hewlett-Packard will be acquiring 3Com for $2.7 billion in cash. The acquisition is the one of the biggest in size among a series of takeovers and acquisitions by technology giants to push their way to become one-stop shops. Since the beginning of the financial crisis in 2007, tech giants have constantly felt the pressure to expand beyond their current market niches. Dell purchased Perot Systems recently to invade into the technology consulting business area previously dominated by IBM. Hewlett-Packard's latest move marked its incursion into enterprise networking gear market dominated by Cisco.
On January 18, 2001, HP acquired Bluestone Software, Inc., a leading provider of B2B, B2C, and wireless open platform solutions.
On March 22, 2002, HP acquired Indigo N.V., a leader in digital offset color printing systems.
On May 3, 2002, Hewlett-Packard merged with Compaq Computer Corporation, a controversial move intended to make the company the personal computing leader. The merger opposition was led by Walter Hewlett, son of HP founder William Hewlett.
On April 15, 2005, HP acquired Snapfish, a leading online photo service based in San Francisco, California, USA.
In October of 2005, Hewlett-Packard acquired the private company AppIQ (short for "Application IQ"). The company was founded in 2001 by Ash Ashutosh and David Chang, and offered several digital storage solutions. The company had employed up to 235 people by June 2005.
On February 7, 2006, HP agreed to acquire OuterBay, a leading provider of archiving software for enterprise applications and databases. OuterBay is headquartered in Cupertino, California, USA, with offices in the US, UK, and India.
On June 6, 2006, HP announced it was acquiring Silverwire Holding AG, a commercial digital photography solutions and software provider with a strong presence in the retail photo market. Silverwire is headquartered in Zug, Switzerland.
On July 25, 2006, HP announced plans to acquire Mercury Interactive (MERQ.PK), a company that provides Business Technology Optimization software (i.e. software that helps a company govern, develop and maintain its technology stack). This acquisition is expected to occur in Q4 2006 and will result in an HP software business of around $2 billion.
On September 28, 2006, HP announced it will expand its presence in the gaming market by acquiring VoodooPC, a maker of high-performance gaming, luxury, and entertainment PCs based in Calgary, Alberta, Canada. This acquisition is expected to close by November 2006.
Major competitors of HP in the computer business include Apple Computer, Dell, Gateway, Lenovo (Purchased IBM's Non-server Personal Computer Business), Sony and Toshiba. Major competitors of HP in the server business include Sun Microsystems, IBM and Dell. Major competitors of HP in the printer business include Brother, Canon, Epson, Lexmark and Dell (who rebrands and repackages Lexmark products)
Chapter – 3
Review Of the study
HP Corporate marketing strategy
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 customer’s lives, change markets and create business opportunities. Source: Technology Business Research, Inc., Oct. 26, 2004 Millions of people around the world use HP technology every day. They are largest consumer IT company, the world’s largest SMB IT company and leading enterprise IT company. For more than 100 million cell phone subscribers, it is HP software that identifies them when they turn on their on phones and allows them to place calls. HP powers 100 of the world’s stock and commidity exchanges, including the NEW YORK STOCK EXCHANGE and 14 of the world’s largest trading markets. In response to customer needs and the changing market conditions, they have built a portfolio unequaled in the industry. HP technoloogy now ranges from consumer handled devices all the way to some of the world’s 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. They have dynamic, powerful team of 150,000 employees for the fiscal year that ended Oct 31, 2005 HP has corporate headquarters in Palo Alto, California.
Hewlett-Packard 'Pragmatic' strategy Related to sales
"For a company that chose its name via a coin toss, Hewlett-Packard takes a deliberate approach to dealing with trouble; its founders designed their first factory so it could be turned into a grocery store if the technology business failed to grow. "That pragmatic culture has in many ways persisted, leaving H-P better positioned than most when the recession hit. H-P finds safety in diversification. "While controlling the biggest slice of the global personal-computer (PC) market, H-P also ranks second in computer servers designed for large businesses and is gaining share. "None of H-P's six business segments accounts for more than a third of sales. H-P Services (29% of 12-month sales) provides a variety of technology and outsourcing services. "The $13.9 billion acquisition of Electronic Data Systems in August 2008 nearly doubled the segment's sales. The EDS business features annuity-like revenue streams, and the acquisition reduced H-P's reliance on more-cyclical units.
"Rising demand for affordable notebook computers accounts for much of the growth in personal systems (31% of sales). However, this market is plagued by falling prices, in part because of stiff competition. "In the July quarter, H-P sold 19% more notebook computers than it did in the year-earlier period, yet revenue from notebooks fell 10%. Growth in China and stabilization in the U.S. helped limit revenue declines in the quarter. "More than 60% of revenue comes from outside the U.S., yet no foreign country accounts for more than 10% of sales. H-P holds the top spot in India with a 17.8% share of the PC market, including a 30.9% share for notebooks. Performance in China and other emerging markets was strong in the July quarter, offsetting weakness in Europe.
Hewlett Packard Customer Service
Silicon Valley giant Hewlett-Packard [http://www.hp.com] has decided recently to design and implement a major CRM project to build customer loyalty. The project is an excellent indicator of the value placed by industry leaders on increasing their responsiveness to customer needs. Evidently customer loyalty is beginning to matter for even the largest players.
Hewlett-Packard wanted to provide the timely, high-quality service usually associated with hungry upstarts. To that end, Hewlett Packard's Product Support Division recently developed a system in conjunction with Cambridge Technology Partners [http://www.ctp.com] to deploy 3,000 Product Support Division service agents around the world, each with a comprehensive view of customers and products, and all the information they need resolve complex customer issues. Specific problems with current customer interaction led to the changes. In recent years, as Hewlett-Packard has had explosive worldwide growth in sales of its personal computing products and printers, it has realized one of its biggest challenges is not in gaining new customers, but keeping old ones. Yet as sales have mushroomed, technical support lines have found
themselves overwhelmed and not able to provide the quality, accuracy and consistency of response to callers that many have come to expect. Hewlett-Packard based its CRM strategy on minimizing the instances where service agents would support a caller without capturing, tracking, or maintaining critical customer and product information. Valuable customer feedback and problem resolutions are lost this way, along with countless opportunities to strengthen customer relationships and build customer loyalty. Kelley Wood, worldwide application development manager for product support at Hewlett-Packard, said one major reason they decided to work with Cambridge was the speed Cambridge promised: "The project was started three days after the contract was awarded."
HP has a significant in all market they serve:
Consumer - “HP consumer business has leadership in handhelds, notebooks, printers and cameras – focused on delivering simple, rewarding experience to 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. They have market- leading positions in datacenter and office computing, and the imaging and printing market. Enterprise – The enterprise segment draws from Hip’s full portfolio of products, services and solutions. Company collaborates with large customers to build an Adaptive Enterprise helping them achieve more simplicity, agility and value across their organization. HP is No. 1 or No. 2 in all three server based operating environments, and it holds 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 government agencies better.
Their Key Words “Doing well by doing good” As proud as they are of their capabilities, they are equally proud of their people, standards and values, and 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 business have changed in 66 years. The challenge is to continue to shape the impact of corporations as a constructive force, using our heritage and our actions as tool for doing so.
CUSTOMER RELATION MANAGEMENT
HP Ranked Top U.S. Company for Online Customer Respect
HP is ranked first among the top 100 U.S. companies in online customer respect and online customer experience, according to The Customer Respect Group, an independent global consulting and research firm that focuses on how corporations treat their customers online. Outranking leaders of multiple industries, including its competitors Dell and IBM in the technology arena, HP earned the highest score among the top 100 U.S. companies by receiving a 9.7 out of a possible 10.This is the second time that The Customer Respect Group has recognized HP. In a separate survey HP was ranked the No. 1 high-tech firm for online customer respect
"HP is a customer-driven organization. With hp.com the company striving to
create an online environment that is the most satisfying and rewarding for visitors, especially in the areas that mean the most to consumers -- online privacy, data collection policies, customer-focus and engagement, simplicity, and responsiveness," "One year after merging two of the technology industry's largest and most complex Web sites, the company is providing its customers with the best online experience available from any U.S company. The resulting Customer Respect Index is a qualitative and quantitative in-depth analysis and independent measure of a customer's online experience when interacting with companies via the internet.
HP’s Effect on People’s Life
HP and the environment
HP has been criticized by Greenpeace, among others. Greenpeace and other environmental groups have alleged HP of poor environmental standards, specifically in relation to the elimination of hazardous substances from products as specified by the European Union's guidelines for bromine flame retardants . Greenpeace is also alleging HP of not doing enough to recycle computers and other technology equipment.Greenpeace's criticism of the technology industry is not limited exclusively to HP, as competitors such as Dell and Apple have also come under fire for alleged similar practices. 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. That’s 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 community at large. In London, homework time affects family time as a parent watches a child struggle, clearly in need of more personal in a crowded math class. With online access to lesson plans, test result and attendance records. Working with student after school, the teacher fills the learning gap, sends both student and parent training materials to reinforce the lesson. Part of HP managed learning solution portfolio, HP MANAGED LEARNING gateway solutions include learning porters, collaborators porters, virtual laming environment and virtual classrooms that helped to raise the standard of education for students and parents
Chapter – 4
1. Which brand does the consumer prefer? Grade according to
the preference? 1. HP [Hewlett Packard] 2. Xerox 3. Dell
Interpretation: The survey reveals the customer prefer Hewlett Packard brand rather the other two brands. The preference for HP goes upto 52%. Xerox hold the second position by receiving 28% and Dell holds the third position by receiving the share of 20%.
2. When does the company comes out with offers/ Discounts? 1. Ageing stock liquidation 2. Leverage their sales 3. Downfall of sales
Interpretation: Company comes out with offers and discounts for several beneficial reasons for both customers and the company itself. two important reasons for which company introduces offers and discounts is Ageing stock liquidation and Leverage sales which is upto 40% simultaneously whereas, the third reason is downfall of sales which is upto 20% only.
3. Rate the quality of service provided by different companies? 1. HP (Hewlett Packard) 2. Xerox 3. Samsung
Interpretation: Hp provides the best service on its customer’s words. The quality of service provided by HP is 60% in comparison with the other two brands. Xerox holds upto 25% and Samsung holds upto just 15% of share in total.
4. Under what circumstances the company does increases or decreases the price? 1. Dollar appreciation/Deprecation 2. Customers protection 3. Leverage sales
Interpretation: The price fluctuation in a company occurs due to many circumstances. Increase in price of a company’s product is due to dollar appreciation and vice versa. Dollar app/dip is the most important circumstances in fluctuation of price and takes upto 65%. Price also increase to leverage the sales of company which is upto 25%.whereas, price are mainly decrease with a sole intension of customers protection which goes to 10% .
5. What are the high quality services provided by the company? 1. Comprehensive warranty ( Labour , Parts , Onsite) 2. Translating Principles into practice 3. Operational excellency
Interpretation: The company provides high quality services on its customers demand. The best service provided by company is comprehensive warranty (Labour,Parts,Onsite) which is in demand upto 60%
among customers, 30%is translating principles into practice while only 10% of quality service is in operational excellence .
6. What are the product support service divisions? 1. Laptops 2. Printers 3. Plotters
Interpretation: It is due to product support service divisions that company’s have explosive world wide growth is sales. 45% of PSSD goes to
laptops and 40%of it goes to printers due to its realization that challenge is not gaining new customers, but keeping old ones. Whereas, plotters contribute upto 15% of PSSD only.
7. What are the offers offered by the company to maintain customer’s loyalty? 1. Gift on Purchases 2. E- support packs 3. MVC (Most valuable customer’s)
Interpretation: 40% of company’s would give up with gifts and hampers on purchase by customers to maintain customer’s locality. 35%contributes to E-support pack to assist customers in functioning of products smoothly whereas, only 25%of share goes
to MVC, where MV customers would be protected by price hike and other issues dealing in customer loyalty.
8. What are the segments do HP caters and fulfill customer’s needs? 1. Large Format Printing Solutions 2. Home & Office Printing Solutions
Interpretation: HP cater’s and fulfill customers needs on two main segments. The first one is Large Format Printing Solutions which takes 68% of
share whereas, customer need for Home and Office Printing Solutions takes the share upto 32%
9. What is the Technical support line & How doses it benefit customers? 1. Online Service Solution 2. Onsite Service Solution 3. On carry Service Solution
Interpretation: Technical support line is to provide quality, accuracy and consistency and response to caller/customers. online service solutions assist customers upto 10%, on carry service solutions provide upto 55% of customer benefits whereas, on site service solution provides 35% on needed benefit to customers.
10. According To you does the brand HP (Hewlett Packard) influence you? 1. Agree 2. Disagree
Hp largely influence me and takes the share upto 82% of agree while, only 18% of disagree is to be noticed.
Customer’s first choice is Hewlett Packard which they consider as the best of the products to be chosen among the choices. Therefore, the performance goes upto 52% which is more then half than the other options mentioned. Xerox and Dell are the followers by 28% & 20% respectively. The company comes out with various offers and discounts on its entire range of products. The company has its own reasons and motives to introduce offers and discounts on its products. Leverage of sales ad ageing stock liquidation are the two main reason of the company to come up with offers and discounts which takes equal share of 40% each. Downfall of sales when the company faces ti dooms period is also the reason to come out with offer and discount. Such offers and discounts are of 20%.
Service is among one of the reasons, holds up the customers of the company. HP provides the best service to its customers. Therefore, it takes up 60% of share in comparison with the other two brands, i.e. Xerox 25% and Samsung 15%. The company has to face many unforeseen circumstances for which, price variation/fluctuations is common thing to be noticed. 65% of price fluctuations is due to Dollar appreciation or deprecations. Decreasing price is an important strategy to be noticed by a company to increase or leverage its sales The company has to provide its customers high quality service in order to retain its goodwill and to hold up customers. Comprehensive warranty on labour/parts/onsite is of 60% which the company provides. Translating principles into practice30% and operational excellence 10% are in succession Every product has its support service division HP has its own set of product support service division. It has laptops which is upto 45% of total share, Printers also goes upto 40%,whereas, plotters mark upto 15% only. On a whole product support service division completes the total range of a company.
Customer loyalty is very important, for a company to run successfully to maintain customer’s loyalty, the company has to introduce various offers like rewards/Gifts on purchase E -coupons which are upto 40%. When there is need from a customer, it is then that a company comes into existence. HP fulfills the needs of printing as demanded by customers. It assists the customers in large formatting printing solutions by 68%, whereas home and office printing solutions is upto 32% only. Once the company sells its product to customers they need technical support line which is beneficial for customers in usage of the products on carry service solution is beneficial to customers upto 55%, whereas online service solutions has a minimum share of only 10% to the customers. HP totally influences customers and they agre to it by 80%. Hp serves its customers on domestic, interstate and international sectors and on the other way it exceeds the expectations of every client by offering outstanding customers’ service and improving operational efficiency. It has the best integrity and code of conduct giving rise to trust based relationship .whereas, only 18% customers disagree with the product.
Hewlett Packard (HP) The world’s largest company which operates nearly in every country. A company with a very high growth potential in market. Hp is the sixth largest software company in the world by taking a near 3.9% market share lead in comparison with Dell. The study aimed at finding out the market shares of HP plotters, imaging products and several other computing devices for personal and professional use. It was found that mostly organization prefer the Hp plotters and printers because the service, facilities of MFD (Multi functioning device), power saving and finest quality. Thus because of its optimized system functionality and improved operational efficiency HP stands at No.1 position. The project analysis of sales & service of Mass Enterprises shows a very clear picture that they are reaching upto expertistation in sales & service of HP products. The analysis also shows that Mass Enterprises is providing continual functioning & technical support to its customers.
So, if Mass Enterprises wants to show their strong preference in Hyderabad through HP they should have better creditability system, more better service, best financial transaction, high margin growth. These are some major factors which will help Mass Enterprise in making leader of Hp dealership in Hyderabad.