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Assignment
on
A Marketing Plan for HP
Course Name: Marketing Management
Course Code: MKT401

Submitted to: Submitted by:

Dr.Md.Kashedul Wahab Tuhin Group: ‘PLATFORM’

Associate Professor Session: 2016-17

Department of Marketing Department of Marketing

Jahangirnagar University Jahangirnagar University

Savar, Dhaka – 1342 Savar, Dhaka – 1342

Submission Date: 26 February. 2021

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Group Profile

Platform

Name ID

Avijit Chakraborty 1733

Sagor Ahmed 1734

Salah Uddin 1745

Shihab Shahriar 1746

Mehedy Hasan 1747

Bindu Das 1748

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1.0 Executive summary: Hewlett-Packard or HP is an American multination

information technology corporation that that sells hardware, software, and other related
business services. The product line of HP includes a wide range such as PCs, servers,
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software, imagining products and scanners just to name a few. Hewlett-Packard also
provides services and consulting business around its products and partner
products.Hewlett Packard provides an array of products that range from but are not
limited to personal computers, computer hardware, and software to its customers.
Turban, Sharda, Delen, Aronson, Ling & King (2011) averred that HP's wide product
portfolio makes it easy for its customers to make viable choices. This has helped
enhance market appeal for its products. A wide variety of products that HP deals in has
exposed it to challenges like huge operational costs. HP has been exposed to overall
demand volatility, reduced forecast accuracy, and a host of revenue and cost impacts
across its products' life cycle. It has had to soak in increased inventory costs, poor order
responsiveness, high operational costs, high research and development costs, and
bludgeoning marketing and administrative costs. HP has also experienced increased
liabilities to channel partners. Complexity in a product line has threatened to drive HP's
business to its competitors. In this report we will try to figure out hp’s sale, marketing
strategy and numerous financial approaches which is essential to think big objective in
future.

2.0 Situation analysis: Hewlett-Packard has always been within the top 5 of Vendor
market share over that last 10 years, Recent data from 2016 to 2019 are given below
of its Global laptop market share by units, and percent.

Global PC market share by units, percent (2016–2019)

Rank 2016  2017  2018  2019 

1 Lenovo 20.7 HP 21.0 Lenovo 22.5 Lenovo 24.1

2 HP 19.4 Lenovo 20.8 HP 21.7 HP 22.1

3 Dell 14.7 Dell 15.2 Dell 16.2 Dell 16.8

4 Asus 7.6 Apple 7.4 Apple 6.9 Apple 7.0

5 Apple 6.9 Asus 6.8 Acer 6.1 Acer 5.6

Others 30.7 28.8 26.6 24.4

2.1 Market summary of Hewlett-Packard:

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Lenovo has established itself as the top PC manufacturer in the world in recent years,
but HP is a fierce rival when it comes to laptops and notebook computers. Rivalry in
the Lenovo vs HP battle is tight, with the two vendors swapping first and second place
year by year.

In 2017, HP hit a milestone, shipping 40 million units despite a general decline in

global laptop sale. The figure represented a 10.5% increase over 2016. HP lost the lead
by a thread in 2018, most market-watchers agree, acquiring 21.7 %of global laptop
market share compared to Lenovo’s 22.5%.

HP’s sales are mostly generated from popular models like Envy, EliteBook, Pavilion,
Omen, and Pavilion Gaming. Thanks to the company’s stronghold of loyal users in the
United States, where it holds a 30% market share, HP remains the most popular laptop
manufacturer in North America. Judging by preliminary reports from the second
quarter of 2019, the company experienced 3.2% year-over-year growth globally, with
Europe, the Middle East, Africa, the United States, and Japan accounting for the lion’s
share.

2.1.1 Market demographics of hp:

The global laptop market size was valued at USD 101.67 billion in 2017. It is estimated
to expand at a CAGR of 0.4% during the forecast period. In terms of volume, the
market is anticipated to register a CAGR of 1.0% during the same period. Growing
internet penetration, rising disposable incomes, swelling global population, and
increasing awareness among consumers about emergence of novel technologies are
among the primary growth stimulants for the market.
A number of consumers these days prefer cross-functional devices that offer integrated
features and capabilities in the same device. This has encouraged the development of
multifunctional devices. Laptops offer extensive diversity in their application areas,
ranging from business and education to entertainment. Furthermore, high investments,
availability of economical devices due to mass production, and a range of diverse
applications are projected to provide a fillip to the market.
Reasons behind change:
Type Insights:
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By type, the market is bifurcated into traditional and 2-in-1 laptops. In 2017, the
traditional laptops segment represented over 90.0% of the overall market revenue.
Meanwhile, the 2- in-1 laptop segment is estimated to post the highest CAGR
exceeding 1.0%.
Screen Size Insights:
15.0" to 16.9" laptops are also known as desktop replacements as they have widescreen
displays, powerful processors, enhanced storage, and are ideal for numerous end-use
applications such as gaming. Besides gaming, these laptops are largely used in
corporate offices as their widescreen monitors tend to be thin and can aid in clearing
space-constrained office places.
Price Insights:
In 2017, laptops ranging between USD 501 to USD 1000 held a substantial share in the
global market. They are also poised to be the fastest growing segment during the
forecast period. Array of features available at a considerably reasonable price makes
them the preferred price range among consumers.
They are suitable for diverse applications such as personal, business, and gaming. They
also come with a long battery life, wide display screen, robust processor, and attractive
design.
End-Use Insights:
Original Equipment Manufacturers (OEMs), such as Dell, HP Development Company,
L.P., and Lenovo, manufacture laptops particularly for business purposes. Small and
large companies nowadays require robust laptops for various tasks such as coding and
programming, presentations, graphics design, and document editing. Business laptops
have a rugged design, widescreen displays, superior graphics, faster processors, and
enhanced connectivity options.
Laptop Market Share Insights: The market is characterized by intense competition
with the presence of several giants including HP, Dell, Apple, and Acer. Some of the
key market incumbents are making substantial investments in R&D initiatives with a
view to manufacture more affordable laptops.
2.1.2 Market needs: Hewlett Packard's main objective is to provide customers with
high quality products at a reasonable price.They don't believe in the power of
technology, but in the power of people when technology works for them. Their aim is
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to create and make digital tangible, and to use the power of human information.They're
working to make what the customers do matter even more.
Durability: Durability is very important for electronics products. Customers have to
pay a large amount to satisfy this need. So, in order to sustain in the market, 2 or 3
years of warranty is needed to create impact om customers mind.
Reliability: HP laptops can meet the needs of any type of user. Some may need a
laptop just for word processing, emailing, and web browsing, and would just need a
good starter laptop, while others may need a more powerful laptop that is even more
reliable for business use. HP can satisfy the user on either end of the spectrum. When a
customer buy a laptop, the best guide is to spend as much as his budget. The wonderful
thing about HP laptop computers is that they are one of the best laptop brand. They are
known to provide very good phone support and any minor problem can be solved. HP
also provides a great support forum for their users where questions can be posted.
Designs: Laptops specification and price are important for targeting customers. But
these two things don't have always create effect on customers. The designs and the
outlooks are also needed to create impact on customers. To keep pace with the trendy
world, spectacular design is very much important.
After sale service: After-sales support plays an important role in satisfying consumers
and retaining customers. It creates loyal customers and increases the value of a brand.
Customers start trusting in the brand for a longer period of time and become familiar
with the company. They talk well about the business and its goods and services. A
happy and delighted customer attracts more people.
2.1.3 Market Trends: HP produces a different type of laptop that meets quality but at
a reasonable price. Now the Laptop Production Company is growing and more
competitors are entering the market, as well as customers are more aware of the product
because they want different types of products. At the moment, the market is growing
faster and competition is increasing. HP has therefore made segments for their product. 
2.1.4 Market Growth: Hp is going up with a very strong competition. With the
domestic market, statistics on international market growth are increasing on a daily
basis.
2.2 SWOT Analysis: SWOT analysis indicates strength, weakness, opportunity and
threats of a company.
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2.2.1 Strength:
 High quality products and credibility from after sale service.
 Largest market share.
 The great financial state of HP.They have additional support for science, creativity,
advertisement and have competitively high salaries.
2.2.2 Weaknesses:
 Dependence of external suppliers. The company does not make its own parts of
laptops, so they mostly resell products from other suppliers.
 A drop in the gross margin. It is a fact that the gross margin of Hp has decreased in
recent years.
2.2.3 Opportunities:
 Use of online channels to attract new customers. The company has spent a lot of
time in digital marketing over the last few years, It helps the brand to gain more
loyal customers.
 Economic uptick and increased customer spending, so this is an opportunity for HP
to capture new customers and increase their market share.
2.2.4 Threats:
 The isolation trend in the US economy may lead to similar reactions in other
countries, leading to a negative impact on international sales.
 Rising raw materials may pose a threat to Hp profitability
 An intense competition. The high profitability of the segment involved a large
number of great players with great products.
2.3 Competition: New technology brings a lot of change to human life. People can use
laptops easily what they want to buy, but the only problem is that there are so many
laptop manufacturers in the world that make us confused. However, the choice is about
people what kind of brand, model and type of laptop they want to buy. Now The
market share of laptops are given below:
Given HP’s integrated business level strategy, Lenovo is HP’s biggest competitor in the
low-cost segment of personal computers. However, HP launched a new premium line
where they could compete directly with the higher priced MacBook’s of Apple within
the differentiation strategy. Therefore, we are comparing HP Inc. to those two
competitors.
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Lenovo: Lenovo is the closest competitor of HP. Its market share in the PC industry is
higher than Apple and Dell. Lenovo's hold on the Asian markets is much stronger than
any of the Personal Computer brands.

Asus: Asus is also an important competitor of HP with a significant share in the

Personal Computing industry. Its consolidated revenue totaled NT$434 billion in 2017.

Samsung: Samsung has a much smaller market share in the PC industry. Still, it is an
innovative brand and has brought a nice range of computing products. The brand
surpassed Intel to become the leading maker.

Dell: Dell is a major competitor of HP and holds a significant market share in the
Personal Computing industry. It has a large product portfolio of products from lower
priced laptops for the lower end market to premium gaming machines. Apart from its
traditional PC business, Dell also offers a portfolio of thin client offerings.

Apple: Apple is among the most renowned companies in the Personal Computing
industry. Its market capital has crossed the 1 trillion dollars mark and it is the first
company to have achieved this mark. The two global brands are among the largest five
in the PC industry.

2.4 Product Offering

HP introduced with their first product an audio oscillator, now it offers several
products:
 HP PCs, which are the most sold in the market over the recent years. The
supremacy in the industry is because of their resilience in price regulation and
upgraded technology. The standard of HP PCs is not a greedy promise of consumer
aggressiveness, but rather a protectionism of the market and improved revenue.
 HP printers are another famous device in the market. They offers various types of
printers like: color, inkjet, laserjet, wireless printer, supertanks etc. for home and
business/office uses. Office professionals trusted HP for best business technologies,
home users liked mostly for compound printing devices.
 Workstation, calculator, scanner, server, storage and networking products and other
related accessories, software and services are also in the HP’s product line.
2.5 Keys to Success
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HP has tree keys to success called: core, growth and future.

Protecting the Core – For decades, HP has become a world pioneer in Personal
Systems and Publishing, preserving and defending its core market vigorously. Constant
creativity holds new, highly relevant goods and solutions and drives consumer demand.
It has to protect its core business for the long time.
Capturing Growth – The Core's gains encourage HP to seek sustainable growth in
markets that are naturally adjacent.
Creating the Future – It must be innovative, modern laboratories for cope up with the
forth industrial revolution.
2.6 Critical Issues: As an established organization. Hp has many issues to be taken
care of.
 Taking actions constantly, how to improve customer satisfaction level.
 Hp needs to create contingency planning, as a backup tool.
 Hp has to take strategic mix of excellence in delivery and clear communication of
promise.
 Continuous updating is needed to improve products and capabilities.
3.0 Marketing Strategy

HP uses 360 branding in its marketing mix for creating brand awareness. HP ad
campaigns are spread across different media like TV, newspapers, magazines, website,
billboards etc. HP has a campaign called One Voice, this campaign was designed to
resonate the image of HP as one stop solution to hardware and software needs. The
campaign was successfully integrated to its website and outdoor campaign as well. HP
also has an exchange program which allows to exchange old products for new. Other
than regular discounts, sometime HP has offered some services for free for a period of
time in order to promote HP. HP has also played the sponsor in many sports like
formula one and Premier League Club.

3.1 Mission: The mission of HP is to provide products, services and solutions of the
highest quality and deliver more value to our customers that earns their respect and
loyalty. We exist to attract and maintain customers. We want to ensure success. Our
services and products can satisfy the expectations of customers.
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3.2 Marketing Objectives:

i) Maintain positivity and strong growth

ii) A steady increase in market penetration

iii) selling products in every major market in the world

iv) providing incredible products to customers

3.3 Financial Objectives:

i) Increase the profit margin

ii) Maintain a healthy budget

iii) Achieve a growth rate within a year

3.4 Target Markets:

With our product of personalization, we are looking at a target market of professional

business men and women as well as major companies. People nowadays lead busy life
styles trying to balance both a work life and a family life. When it comes to something
such as their computer, these people want something that will make access to software
that they use on a daily basis at their jobs whether they are engineers or marketers much
easier. With our product line, customers will no longer need to purchase a computer
and then purchase the software separately. When they buy the computer we will
collaborate with the companies so that all of the software programs they need for their
careers is already installed right for use off of the assembly line. Besides professional
individuals, students are also interested to have HP products.

3.5 Positioning:

HP will position itself as the premiere PC and laptop company. The positioning will be
achieved by resolving problems & providing benefits to customers. HP was founded by
Bill Hewlett and Dave Packard in 1939. It is an American manufacturer of software and
computer services.

4.0 Marketing Tactics

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Marketing Tactics of HP analyses the brand/company which covers 4Ps (Product,

Price, Place, Promotion) and explains the HP marketing tactics. There are several
marketing strategies like product/service innovation, marketing investment, customer
experience etc. which have helped the brand grow. Marketing tactics helps companies
achieve business goals & objectives, and marketing mix (4Ps) is the widely used
framework to define the strategies. This article elaborates the product, pricing,
advertising & distribution strategies used by HP.

4.1 Product:

HP produces hardware like personal computers and printers. The categories of products
offered by HP are as follows:

• Computers

• Laptops / Tablets

• Printers

• Scanners

Various printers offered by HP include Black and White Laser Printers, Color Laser
Printers, Inkjet All-in-One Printers, HP Design jet Large Format Printers, HP Indigo
Digital Presses, HP Latex Printers & Network Print Server. Computers are further
divided on the basis of usage. High volume, office and personal. HP personal
computers consist of the following brands. HP Omni book, Compaq Presario, HP Envy,
G series, HP Mini are the more popular brand of computers. Tablet computers include
brands like HP Slate, HP Touch Pad, HP Omni 10 and HP Stream. Other than the
above mentioned it also produces digital camera pocket computers, workstations and
servers.

4.2 Pricing:

HP has a very in-depth product portfolio and hence a very diverse pricing range. It
operates in computers, printers, workstation and servers only but within these
categories also the product depth is high. So many variations to suit the needs of
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businesses. HP follows fair pricing strategy, it charges for the quality and expertise it
gives in the field of hardware and software. HP fights with competition based on its
quality regime and supreme performance and after sales services. Newer products with
latest innovative technologies are priced at a premium and as competition enters the
prices are reduced gradually.

4.3 Distribution:

HP is a global brand and has its presence all across the world. With its products &
services, HP is present in more than 170 countries worldwide. HP sells its products
both directly and indirectly. It has exclusive stores of HP and also multi-brand store
where it is available. HP has a presence on online portal as well products can be bought
directly from websites or from other shopping websites. It has a lot of partners which
can be located through its website who sell HP products. HP is known to have presence
of service centers most cities making post sales services easily accessible. Its
subsidiaries are located around the globe. HP remains in touch with all parts of its
supply chain.

4.4 Communications:

HP competes with other large corporations in the same business segments at different
levels such as technology, product portfolio depth, IT and network infrastructure,
availability of the resources, branding, distribution channels and retaining the pool of
talents that HP have.

4.5 Marketing Research:

HP is blessed with the good fortune of being located in the center of modern world. It
will be able to manipulate the opportunity by working with many of the different
customers. The extensive product testing by a wide variety of consumers provided HP
with valuable product feedback and has led to several improvements.

5.0 Financial:
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This sector will offer the financial overview of HP LAPTOP related to marketing
activities. HP address brake even analysis, sales forecast, expense forecast, and indicate
how this activity are link to the marketing activity.

5.1 Break-even analysis

The break-even analysis below illustrates the number of single sales, or units, that we
must realize to break-even. This is based on average sale and costs per transaction.

Monthly Break-even point

Monthly Units Beak-even 1000Unit.

Monthly Revenue Beak-even Tk. 5,94, 00000

Assumptions:

Average Per-Unit Selling Price Tk. 70, 0000

Average Variable Cost per month Tk.50,000

Estimated monthly Fixed Cost Tk. 60, 00,000

5.2 Sale forecast: HP believes that the sales forecast will be achieved in the five main
revenue streams; HP Laptop-15t-dy200 touch optional, Pavilion SERIES, Envy Series,
Spectre Series, OMAN Series. Sales will increase steadily as the advertising budget
allows, although all potential customers are divided into separate groups in the target
market forecast.

5.3 Expense forecast:Marketing expenditure is to be budgeted at around 8 percent of

total sales for 2010-11 and 9 percent for 2011-12. Expenses are tracked in the major
marketing categories of newspaper advertisements, printed leaflets, billboard
promotional events, and others.

6.0 Controls:

A major purpose of the marketing plan of HP is to set the company on a specific course
in marketing. The following areas will be monitored to gauge performance:

* Revenue: monthly and annual

* Expenses: monthly and annual

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* Customer satisfaction

* New-product development

6.1 Implementation:

It is important to accomplish on time and on budget.

6.2 Marketing Organization:

CEO of HP Enrique Lores will be responsible for the marketing activities.

6.3 Contingency Planning:

Difficulties & Risks:

* Inadequate analysis

* Organizational mistakes

* Poor motivation