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Marketing Management 1, Group Suzlon, B1
Indian Laptop Industry
In sync with global trends. Reasons for growth:
± Lifestyle of consumers ± Affordability ± Better Legislation
Part 2 CURRENT MARKET SCENARIO .
CAGR: 104% Households: 44% of the market growing at 150%.Sales Growth Annual sales grew by 114%. Businesses: 56% of the market growing at 93% Notebook sales: 2002-2008 .
Sales: City Spread Notebooks are fast penetrating beyond the top 4 metros. growth rate 152% .
890M 2.415M 2.6% 9.1% 14.796M 1.433M 1.608M 3.8% 15.2% 18.529M 31.683M 4.473M 1.321M 4.3% 7.281M 3.612M 1.759M 23.891M 0.275M 0.108M Y/Y Change 40% 45% 33% 20% 58% 26% 61% 67% 3% 21% 35% Q1'08 Share 20.321M 1.330M 1.399M 1.124M Q1'08 6.3% 4.6% 4.5% 5.527M 2.2% 4.460M 4.Global market share Rank 1 2 3 4 5 6 7 8 9 Brand HP Dell Acer Toshiba Lenovo Fujitsu / Fujitsu-Siemens Apple Asus Sony Others Total Q1'07 4.228M 3.8% 100% Table 1: Q1¶08 Top Nine Brand Notebook PC Shipments .
Indian market share .
GST would ensure a simpler and more transparent tax regime. imported computers subject to additional customs duty (levied in lieu of excise duty) equivalent to 7 per cent. etc. VAT: computers have a concessional rate of 4 per cent (importance attached to the IT sector in India).Government policies Laptops are covered under Information Technology Agreement-1 (ITA-1) and have enjoyed exemption from basic customs duty on import. 2008 has proposed to include computers. under the MRP regime of excise. . multiple compliances. Excise duty: complete exemption for local manufacturers from excise duty. The Finance Bill. and address issues concerning cascading of taxes. including laptops. Tax changes: Goods and Services Tax (GST) regime to take place in 2010.
Part 3 MARKET SEGMENTATION .
By Employee Size Overall consumption in the business grew by 41% Consumption in large and medium enterprises grew by 66% and 61% respectively.Notebook Consumption in Businesses . however in small enterprises it declined 10% .
to medium enterprises by 11% Sales declined in small enterprises by 7% .Half-Yearly Notebooks Enterprise Market Overall consumption growth in the Businesses Segment was 16% Sales to large enterprises grew by 25%.
SEC Profile of Household Notebook Buyers Overall household market increased by 164% Sales to SEC A increased by 161% and to SEC B by 296% Sales to SEC C in H1/2007-08 were negligible .
in East it grew by 10% while in North it declined by 13% Notebook sales: City-spread .Based On Geography PC consumption in both West and South grew by 39% each.
. Texture of the body of the laptop is another factor that women take into consideration while purchasing. so the women's product line will be based on those premises.Based on Gender Global information technology giant Hewlett-Packard (HP) is set to launch its special lines of products. targeting women and the youth in India. so our products will reflect that . "Women usually look for easy mobility and sleek looks.
Some of the laptops in market are: ± ± ± ± Star Wars Darth Vader Laptop VTech Double Vision Notebook VTech Nitro Notebook Hot Wheels Accelerator 5.0 Learning Laptop Though much market has not been created.Based on Age and Life Cycle Kid's laptops are very popular nowadays. . there is lot of scope of exploring this segment.
Part 4 MAJOR PLAYERS AND STRATEGY .
Design Strategy: looks. Service Industry: Bought Component pricing. EDS. HP does not have high customization available. . Decline in digital entertainment market. Cost Strategy. Weakness Low Flexibility: Unlike Dell. Software Service. Strong after sales service. Pricing pressure. Slow revenue growth.Hewlett Packard Strength Leadership Position. Consumer Centric Brand. World s no.2 service provider. Opportunity Threat PC business.
Pricing: Oracle's Siebel technology reducing marketing spends by 15%. Cut notebook prices by 15 to 20% creating a volatile price war. Promotion: Innovative word of mouth marketing called the 31 days of dragon. Monitors. Ease of availability. Gaming Systems. and continually innovate to strengthen position. Networking. Desktops. Servers. Products: Notebooks. Diversification: M&A: In August 2001 HP and Compaq came together to merge by a 25 billion $ stock deal.HP : Market Strategy Maintain Status Quo as market leader. Paper. Associates with various Hollywood themes to target movie going audience. Tablet PCs. Software. Accessories. . Place: Uses online method for booking. Product Development: HP has launched aggressively into the Indian market. Toner. Has outlets in major cities. Printers. Scanners.
Internet sales leadership: $5M everyday.Dell Strength Inventory turnover rate is 6 days. High dependency on component suppliers. Lack of Software Support for customers. Low costs and advanced technology. worldwide. Growth in business. Political instability. Tariff trade barriers. Currency fluctuation. Price range considered premium. Revenue Growth at 100%. education and government markets. . Opportunity Network service in B2B. Cost efficiency. Weakness No proprietary technology. Threat Dell s market share very less. Latest technology Customization. Direct to customer business model: minimum credit risk. Strong potential in China and India.
Premier Pages. Dell can effectively enter the external storage and software market . sales reps. pricing below competitors. By 2001. customer service. special training and certifications. editorials. Product Development: Pursue Mid-Range Server Growth. reviews. Dell was the market leader in entry level servers. Promotion: On-line model. Pricing: Direct Model approach.Dell : Market Strategy Products: PC. workstations. storage. laptops. Merger and Acquisitions: By 2000. Increase product line: New products like a PDA. and awards. the external storage market was growing at 23% per year. but had no presence in the mid-range server market. and auxiliary services. catalogues. Place: Direct from Dell: On-line. direct mail order. telephone. mail-order. Market Penetration: Continue to do more of the same. New International Market Development: Enter new markets with existing products. By acquiring an innovative leading company like the EMC Corporation.
.Lenovo Strength National Image (China) Knowledge about local market: Lenovo excels in its strategy for the Chinese market. Poor After sales service. Threat Heavy competition. Growing wireless pc market. Weakness Poor global brand perception. Limited knowledge of global market. No pure electronic sales Low inventory turnover: About 40 days. Opportunity Import barrier. Software piracy and clone market. Mass manufacturing capability. Industry reaching maturity. Little firms¶ growth. Quick Responsiveness. Strong R&D: Taken over from IBM. Increasing global demand. Government¶s association. Internet boom.
Part 5 UNFULFILLED NEED .
. If the laptops are made compatible enough to integrate these up gradations and also done at a reasonable price.Up gradation of Laptop We are expecting that the up gradation of laptops will be one of the most important requirements of the people owning laptops. it will attract more customers to the product.
.Secondary (Second Hand) Market People buy second hand. because it is very easy to change the parts of a PC. It is expected that given the chance of buying the laptop second-hand with proper provisions of warranty and reasonable price exchange people will buy it.
The hardware specifications are the first choice for the users when choosing a laptop. About one third of the respondents do not want an upgrade of their laptop. An interesting result was that most of the people who used the laptops gave ratings as good and very good to the performance of the products they had used.Survey & Analysis Main areas and features a company should concentrate on should be. A majority number of respondents were from the Indian subcontinent. Unfulfilled needs Battery management Heat Control in the laptops TV tuner card Light weightiness Keyboard Lighting . Mobility. The second choice is the brand name followed closely by price. Around 15 percent of the respondents were from USA. The respondents wanted an Apple laptop when given a choice for the dream laptop . Warranty & Services. Need: upgrade the laptop. pricing: Respondents were ready to pay a high price for quality and sturdiness. Almost all had used a laptop or possessed a laptop. Design and Bundled Software follow suit. Demography: The age group was primarily 18 to 35 years. The respondents were majorly students and professional. strive to provide the best possible customer experience. Dell was the first runner up followed closely by HP. This is an interesting insight to the user preference and can prove handy to laptop manufacturers when constructing a laptop for the target audience. An open ended question on the features required on the laptop gave an amazing insight into the needs.
The Laptop will have an inbuilt TV tuner card and also will have a light weight. In metros free home delivery of the parts can be done and engineers can go house to house to upgrade the Laptop. Additional feature provided will be keyboard lighting. As we are targeting professional and students these mediums should be effectively used as this is the easiest way to reach our target audience. Place: Very effective distribution techniques should be used.Meeting Unfulfilled Need 4 P s to be catered: Product: The new product launched will have a better Battery management and heat controlled Laptops.000 Rs. Newspapers and magazines can be used to support the initial promotion. A low pricing strategy can also be used by selling laptops lesser than competitors Laptops. Promotion: Television and Radio advertisements can be used to introduce the product in the market. . Also advertisements should be shown on news channels and sports channels as the target market is students and professionals. In small towns all the laptop sellers can have a separate department for up gradation and all the up gradation related queries and installations can be handled there separately. then the process of up gradation should also be very easy and less time consuming. you have it can be used as this new product is introduced catering the unfulfilled needs of the product. Online. Price: The survey results indicate that the price of the laptops preferred by respondents is ranging from 30. Full customization will be provided for customers.000 to 50. Primetime advertisements with taglines such as you need it. As we have identified the unfulfilled need of up gradation.
Part 6 CONCLUSION .
$100 laptops are also looked at as the products which rule the future of Indian notebook market. home notebook users. whereas notebooks with longer battery life and higher performance will continue to cater the needs of business professionals. . the mobile computing notebook devices market are subdivided as ultra mobile sub notebook PCs and notebook PCs. Based on predictions. HP being top performer in multimedia and personal computer section should try to concentrate more towards capturing large organizations. and dell the vice versa. Laptops with extensive multimedia features continue aiming to gain more personal. Gaming industry being itself in very nascent stages.ROAD AHEAD notebook industry is the future of personal client PC market. Though notebooks are seen as the replacement of desktops most of the times. it is still a long way before notebooks sales overtakes that of desktops in number of units sold. Innovative educational laptops like. High speed connectivity and low weight notebooks generally are most demanded ones today. There are several series in Dell and HP which cater to this group already.
utdallas.REFERENCES www.mait.in/govt/policies.gov.com [manufacturers association of information technology] for Market Segmentation graphs policies.pdf for Market Segmentation .intelliquest.com/resources/technical/MarketSeg mentationOverview_MBIQ_June24.edu/~tskim/Lecture%20Note%206.gov.in for government policies india.php for government policies http://www.pdf for Market Segmentation http://www.
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