THE HCL ‘ME’ LAPTOP

Inderpreet Singh | Khalid Kamal Rumi | Manish Kumar Parmar | Mrinal Dutt | Natarajan C | Puspa Majhi | Vinay Yadav

1/23

INTRODUCTION

2/23

LAPTOP MARKET IN INDIA

Revenues in Rs. Cr.

www.dqindia.com

3/23

REBRANDING OF HCL LAPTOPS
• September 2009 – ‘ME’ brand launched • Repositioning based on IMRB (Indian Market Research Bureau) research report • ‘LeapTop’ to ‘ME’ - ‘Mobile Excitement’ • Targeted market share - 20% • Budgeted marketing expenditure - INR 50 cr. • Ad agency - DraftFCB Ulka • 55 ‘DigiLife’ stores remodeled as ‘ME Xclusive’ and ‘ME Zone’ stores

4/23

SURVEY RESULTS

5/23

BRAND OWNERSHIP OF RESPONDENTS
1.61% 3.23% 6.45% 6.45%

6.45%
32.26% HP DELL SONY APPLE LENOVO TOSHIBA HCL OTHERS

14.52%

29.03%

6/23

MAJOR SELECTION CRITERIA

76%

71%

65%

60% 36% 31%

Features & Configuration

Brand

Price

Service & Warranty

Design & Looks

Bundled Software Included

7/23

PERCEPTION ABOUT ‘ME’ LAPTOPS
36% 52% 40% 24% 48% Not Aware Poor Average Good 24% 20%

40%

40%
8%

28% 28% 12%

Features & Configuration

Brand

Service & Warranty

Design & Looks

8/23

AWARENESS OF ‘ME’ ADVERTISEMENTS

60%

52% 40% 31% 24% 20%

12% Hoardings

12% Event Sponsorship

Print Media

TV

Online

Not Seen

Point of Sale Display

Word of mouth

9/23

CONSUMER RESPONSE FOR ‘ME’
97.52%

Awareness Consideration

• High • Poor

8.33% 1.67% Awareness Consideration Decision 10/23

CONSUMER RESPONSE TO ‘BRAND-MASKED’ SURVEY
10% 18% 31% Will buy Will buy if brand is known Will buy if price is known Will not buy

41%

11/23

MAJOR CONSIDERATION SET INFLUENCERS
83.3% 66.7%

15.0% 6.7%
Word of Mouth Internet Sales Person Advertisement 12/23

DATA ANALYSIS AND THE WAY FORWARD

13/23

THE VICIOUS CYCLE
Brand Perception

Low Conversion

Lack of Recommendation

Low Consideration 14/23

FEEDBACK FROM EXISTING ‘ME’ USERS

• Satisfactory laptop performance • Happy with design & looks • Comparable to other laptops

• Competitive price

15/23

COMMUNICATIONS MIX
IMC Platforms Advertisement Current Strategy Very generic, promoting HCL; not targeted towards ME Proposed Spin off advertisements depicting ME as a separate brand, Remove HCL logo and develop the ME brand Aggressive Dealer margins, low interest financing Telemarketing, Blogs College festivals, Companies, Music Fests

Sales Promotion Direct and Interactive marketing Events and Experiences

Periodic sales incentives, rebates for students Catalogs, Online Selling N/A

16/23

17/23

MEASURING SALES FORCE EFFECTIVENESS

18/23

SALES FORCE EFFECTIVENESS
EVALUATION PARAMETERS • Consumer Division

• Sales/ Man Hour = Purchases / (No. of people demonstrated to * Time Spent demonstrating (in hours))
• Conversion rate = Purchases / No of people demonstrated to

• Corporate Division
• Conversion rate = Actual size of order / Potential size of order

• Discount factor = Discounts offered / Actual size of order

19/23

SALES STRATEGY

• ‘Test Drive’ concept for laptops

• Centralized customer repository maintenance by requiring registration on first use
• Centralized feedback system to be put in place by tracking service records with unique identifier • Promotional competition at institutions with prizes being ‘ME’ laptops
20/23

21/23 21/23

COST ANALYSIS FOR ‘TEST DRIVE’ STRATEGY
No. of Days No. Of Cities Tier 1 Tier 2 Tier 3 48 48 48 19 42 92 No. of Laptops 4 3 2 No. of ISDs 2 2 2 Rent per day 10000 7000 5000

Wages Cost per Laptop Resale value Final Cost per Laptop 37200.8 9672.2 27528.6 Tier 1 Tier 2 Tier 3 48000 48000 48000

Kiosk Rent Laptop cost 480000 336000 240000 110114.4 82585.8 55057.2 Grand Total

Total Cost 12124173 19596603 31561261 63282037 22/23

THANK YOU

23/23