IILM INSTITUTE OF HIGHER LEARNING SUMMER

TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

“ANALYSIS OF SALES AND PROMOTION OF HCL DESKTOP’S W.R.T. CONSUMER NEEDS.”
Submitted by: ADITI SHARMA MBA- (2009-2011) Roll No.: PGP 2009-0025 Industry Guide Mr. Ravish Gulati Faculty Guide SAUMYA SHIRIN IILM INSTITUTE OF HIGHER LEARNING LODHI ROAD

Manager, Sales and Marketing HCL Infosystems Ltd., Noida

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CERTIFICATE OF ORIGIN

This is to certify that Aditi Sharma, a student of MBA International Business, Amity International Business School, Noida, has worked in HCL Infosystems Under the able guidance and supervision of Mr. Ravish Gulati, Manager, Sales and Marketing. The period of which he was on training was for 8 weeks, starting from 4th may 2009 to 30th june 2009. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our, knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Mrs.Saumya Shirin (Faculty Mentor)

Aditi Sharma (Student)

ABSTRACT

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Today’s market scenario is totally different from what it has been a few years ago. Consumers have a lot of choice for every product because day by day companies are Coming up with their new and innovative products. Later there was limited choice for most of the products and companies didn’t have to put much of the efforts to sell their products. But today’s scenario is totally different. Consumers have choice because of availability of varieties and options. We can say today’s consumer is the market ruler. So it is important to know his buying behavior and try to fulfill his demand. Company’s aim should be customers delight not customer’s satisfaction. The purpose of this dissertation project is to know the consumers performances, needs, test, his buying behavior and inspiration factors behind it. HCL Infosystems Ltd. how much is fulfilling the customer’s needs and try to maximize the sales of personal computers. This dissertation was really good learning experience for me. I got opportunity to apply the theoretical knowledge to practical aspects of selling. What problems can arise and the way to tackle the difficulty during the sales as smartly as possible. This report contains company profile and sales promotion activities adopted by HCL Infosystems Ltd. Research Methodology, analysis of activities performed during the course of this report by me, findings, recommendations and suggestions, conclusion and bears bibliography and annexure given in the last to give the readers a good knowledge of the content. I hope this report will serve the purpose.

ACKNOWLEDGEMENT

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Any assignment puts to a litmus test an individual knowledge, credibility or experience and thus sole efforts of an individual are not sufficient to accomplish the desired results. Successful completion of a research involved interest and effort of many people and so this becomes obligatory on my part, to record my thanks to those who helped me out in the successful completion of my Thesis. It is my heartfelt honor to thank mrs.saumya shirin completion of thesis. I would like to thank Mr. Ravish Gulati, Manager, HCL Infosystems, Noida under whose esteemed guidance the synopsis of this research came in to existence and research got an appropriate direction of precedence. for his valuable guidance in

I am grateful to All the Faculties at IILM institute of higher learning for constant guidance throughout the project work. My special thanks to my parents & all my friends for their unremitting help in numerous ways, which deserve adequate expression on this page.

I cannot fail to mention the help and support I got from all the shopkeeper’s for their support and for helping me in conducting the research work and shaping the project report. In the end, I would like to say that it was a great experience working on this project.

Thank you all. Aditi Sharma

TABLES OF CONTENT
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12.7 : Empirical view of different types of Consumer promotion in India 2.No. 1. 5 . NO 2 3 4 8-10 11 . 4.1 : Indian Hardware Industry and HCL Infosystems Ltd 2.1 : Frequency of Promotion Across Product categories 2.9 : Promotional Activities Chapter 3 : Research Methodology 3.7. 9.2 : Indian Computer Industry 2. 10. 2. Content Certificate of Origin Abstract Acknowledgement Chapter 1 : Executive Summary Chapter 2 : Industry overview 2.8 : Product and Services offered by HCL 2. 11.35 12 14 20 24 25 26 27 30 31 32 35 40 – 43 41 42 43 44 54 57 59 61 64 66 81 3. 1.S.6 : Types of Sales Promotion 2. 7.3 : Collection of Data Chapter 4 : Data Analysis Chapter 5 : Major Findings Chapter 6 : Suggestions and Recommendations Chapter 7 : Limitations Annexure 1 Bibliography Case Study Synopsis PG.1 : Research Design 3.2 : Research process 3.4 : Sales Promotion 2.7. 3. 6. 2.5 : Objectives of sales Promotion 2. 5.3 : Company profile 2.2 : Frequency of Different Promotion in Service & Durables 2.

Guidelines For Figures 6 .

no 1 3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Fig no Title Fig-S1 Total Market Share –CY05 Fig-S2 Commercial Market Share Fig-S3 Consumer Market share Fig-S4 Computer System Revenue Break –Up Fig-S5 Revenue Growth For Computer System Fig-S6 Revenue Break – Up TTM March 2006 Fig 1 Fig 2 Fig 3 Fig 4 Fig 5 Fig 6 Fig 7 Fig 8 Fig 9 Fig 10 Fig 11 Fig 12 Time period in sales of computer Brands Which are More Consumer Oriented Market Potential For Ezeebee Market Potential For Beanstalk Consumer Preference For Ezeebee Consumer Preference For Beanstalk In Shop Promotional Activities of Channel Partners Scheme For the Customers Effect Of Product And Poster Display Effect Of Catalogue Promotional activities which Dealers Found Effective Problems Of Channel Partners Page No 18 18 18 19 19 19 45 45 46 46 47 47 48 49 50 51 52 53 Guidelines For Tables 7 .S.

A1 Table. 1 2 3 4 5 6 Table Table. Of Information Tech. PC Mkt Tracker Dec 2006.no . Pg no.A2 Table 1 Table 2 Table 3 Table 4 Title Electronic Production Indian Preliminary PC’s Shipment by form factor. 13 16 28 29 30 31 8 .S. Classification Of Different Promotion Different Types of Promotion Launched From 2001 – 2006 Frequency of Promotion Across FMCG. Consumer Durables and services. Frequency of Occurrence Of Different Type of Promotion Source Deptt.

Executive Summary 9 .

Achieving the customer satisfaction is a very critical weapon for any organization. Satisfaction Level of Channel Partner How much focused dealer is towards HCL Secondary Objectives  To find out the consumer preference of home segment computers among various computer manufacturers Evaluating the growth of HCL Infosystems Channel Partner To study the market share and growth of HCL Ezeebee. Primary Objective Various promotional activities that Channel Partners are doing to promote HCL Desktops.. marketers have learned that to meet their goals they must use additional promotional methods in conjunction with advertising.The Indian Hardware industry is dynamic in nature and has been changed significantly over the last five years. In this competitive environment every organization uses different strategies to survive. Instead.g. Marketers have found that certain characteristics of their target market (e.g. small but geographically dispersed) or characteristics of their product (e. many marketers are discovering that advertising alone is not enough to move members of a target market to take action.. For these marketers better results may be obtained using other promotional approaches and may lead to directing all their promotional spending to non-advertising promotions. 10 . HCL Beanstalk and to suggest the strategy to increase it further Scope of Study In a time when customers are exposed daily to a nearly infinite amount of promotional messages. such as getting them to try a new product. highly complex) make advertising a less attractive option.

The vicinity which was restricted to Ghaziabad. 11 . lower cost promotional techniques to meet their promotion goals.The high cost of advertising may drive many to seek alternative. We will see that the objectives of sales promotion are quite different than advertising and are specifically designed to encourage customer response. There may be a possibility of some error in my report also. Research Design I have used Descriptive Research and used convenience and judgmental sampling to serve the purpose. I have conducted this study to analyze the sales promotional activities performed by Channel Partners in order to promote HCL Home PCs. As whole of my thesis and my findings are based on the information gather through questionnaire. with a sample size of 9 Channel Partners of HCL Infosystems Ltd. so there is a possibility that respondent might have given wrong or partially correct information. Sales promotions are used widely in many industries and especially by marketers selling to consumers. Limitations Every study conducted may have certain shortcomings and their can be the possibility of some thing like that in my project.

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With ever increasing availability of international bandwidth and powerful workflow management software. This is driving fundamental changes in the global IT services landscape. and reassemble it.2. The value of ITES-BPO exports from India is expected to exceed US $ 5 billion mark in the year 2004-05.8 billion) in 2003-04.1 ) Indian Hardware Industry and HCL Infosystems Ltd. In the wake of changing global service landscape. ITES-BPO exports accounted for over 27 per cent of the total export revenue earned by the Indian IT-ITES industry. Attrition levels also remained high.5 billion in year 2002-03 to US $ 3. This segment will continue to show robust growth in future also. as demand for trained talent outpaced supply. a year-on-year growth of 44 per cent was achieved. The Indian software and services export is estimated at Rs. 78. in near-real time. it is now possible to disaggregate any business process. witnessing high levels of activity – both onshore as well as offshore. execute the sub-processes in multiple centers around the world. In year 2003-04.230 crore (US$ 17. vendors and customers are redefining the levels of value creation in the industry. an increase of 34 per cent both in rupee terms and dollar terms.240 crore (US $ 12. Indian Information Technology (IT) and IT enabled services (ITESBPO) continue to chart remarkable growth. The Indian IT success story has also highlighted India’s attractiveness as an investment destination – also beyond the IT sector. As export revenues from ITES-BPO grew from US $ 2. at another location. : The year 2004 marked a turning point in the history of global trade in services. 58. as compared to Rs. Another key impact of the global sourcing model popularized by the growth of IT-ITES has been the reversal of the brain drain – as people 13 .2 billion) in 2004-05. Last year witnessed vendors moving up the value-chain to offer higher-end research and analytics services to their clients. between 25-40 per cent. Indian ITES-BPO sector industry continues to grow from strength to strength.6 billion in years 2003-04. with growing acceptance of IT based global delivery model.

450 2000-01 2001-02 2002-03 2003-04 11.750 7. Strategic Electronics 6.500 4.500 31.800 5.550 4.290 2004-05 16. the sector has also contributed to the growth of several ancillary industries.200 28.000 15. The rapid growth of ITES-BPO and the IT industry as a whole has made a deep impact on the socio-economic dynamics of the country. Components Sub-Total 7.400 4. Apart from the direct impact on national income and employment.000 8. Consumer Electronics 2.500 10.200 52.500 3.750 5.240 16. Computers 4.450 5.750 36.400 68. Communication.500 1.350 9.550 4.000 3. Indian IT-ITES growth has had a significant multiplier effect on the Indian economy.300 8.500 46.700 32. are now attracted to work in India.800 58.950 4.800 8.500 1.100 28. The sector has risen to become biggest employment generator with the number of jobs added almost doubling each year.500 78.630 148. as well as young expatriates.000 1.100 6.600 37.750 2.500 6.600 43. and has contributed to a rising class of young consumers with high disposable incomes.800 5. has spawned a number of ancillary businesses such as transportation.360 14 .800 3.400 97.124 13.250 4. 5. real estate and catering.850 12.230 19. Software for Exports 8. Industrial Electronics 3. & Broadcast Eqpt.200 6.150 7.874 80. a rise in direct-tax collection and an increase in consumer spend due to the significantly higher disposable incomes.250 118.100 17. Domestic Total Software 19992000 11.800 4.100 13.200 3.800 50. Crore) Item 1.350 2. Table A1: Electronics Production (Financial Year) (Rs.800 2.800 5.of Indian origin (who went to pursue careers abroad).700 4.

copier and scanner all combined in one device. 40. mobile phones.2 ) Indian Computer Industry : According to International Data Corporation (IDC) India’s information technology (IT) market is set to grow the fastest in the Asia-Pacific region in 2005. 10. a laser printer is available at a price of Rs. The prices of other peripherals are also falling. The technology wise trend is also shifting towards multifunction devices (MFDs) having features of a laser printer. With reduction of excise duty on PCs to zero.4 million units in fiscal 2004-05 taking the total PC penetration to 14. is all set to be part of digital music players. a safeguard duty of 6 to 7% has been imposed by the government to safeguard local manufacturing of computers. The Hard Disk Drive technology is not limited to computers only. The main growth drivers as per the survey would be mobility. PDAs. High corporate consumption and buoyancy in small towns is driving sales of PC and has touched 3.in) 2. will lead to the increase in laptop demand.Source: Department of Information Technology. etc. The 15 . Broadband will usher in a whole new set of services including online games entertainment. Delicensing of wireless for indoors and outdoors. convergence and IT management.000 and notebooks to about Rs. 15.gov. which will give further impetus to PC consumption.5 million in the country.000. Government of India (http://www. to help mobility. Internet traditionally been a significant driver for PC sales in the country and with the announcement of new broadband policy by the Indian government will provide further boost to PC penetration. digital still cameras and camcorders. fax. The prices of entry level PCs have reduced to about Rs. now with miniaturization to the size of postage stamp (sub-one-inch form factor) and a storage capacity of 4GB.mit. education and other interactive public utility services.000. that too with less than 10 grams of weight.

impact of computer technology is becoming visible in all spheres of life. 16 . The efficiency and quality of all sectors whether it is manufacturing or services has greatly improved with the use of Information Technology. More and more organizations and agencies are providing a range of online services apart from regular information and data related to it.

Stereo Speakers etc.The growth in the consumer desktop category is attributed to some of the below mentioned initiatives undertaken by HCL: Market Reach HCL has rapidly expanded its channel presence. 17 . 499 per month EMI and 0% Finance. Convergence Market .Tying up with BSNL as well as MTNL and a focused joint marketing program led to opening a new niche in consumers looking to connect trouble free to Broadband services.HCL Branded inkjet Printers. Consumer Finance .Nation wide Introduction of Latest Microsoft Media Center edition based HCL Beanstalk PC ensured consumers did not have to look around for fulfilling their complete entertainment and information needs. This has been in line with the initiative to push PC up the desirability chain and is resulting in increased penetration. UPS and other peripherals like TFT LCD Monitor upgrades. Such schemes have helped driving the affordability Single Window solutions for users . training them and creating new opportunities by custom designed marketing solutions through them.Affordability of PC has been brought in by HCL with Unique initiatives like Rs. PC's have suffered from lower prioritization in consumer buying basket with TV and other entertainment devices occupying higher priority.Inducting alternate channel by appointing consumer Durable Channel partners. This added to the performance and is going stronger as the masses look towards Internet connectivity as major PC usage model. Alternate Channel . Broadband Ready PC .

In terms of total notebook PC shipments HP was the top vendor. medium business segment responded by showing a 40% sequential growth (1Q 2006 over 4Q 2005) in unit shipment terms Consumer PC market showed new-found maturity evident from the spate of Bollywood superstar endorsements in the case of promotions of desktops and notebooks from HP and Lenovo A 177% year-on-year growth (1Q 2006 over 1Q 2005) in notebook PC shipments despite the re-imposition of 12 per cent excise duty in the budget. Table A2 Source: IDC's India Quarterly PC Market Tracker.shipments grew 14% sequentially (1Q 2006 over 4Q 2005) Vendors continued their focused go-to-market spend on the SMB segment. May 2006 preliminary release Some of the major highlights visible through 1Q 2006 were: Buoyant commercial desktop market . 18 . In terms of total desktop PC shipments HCL led the market in the financial year 2005-06 followed by HP and Lenovo. 1Q 2006.At a time when the notebook market in India is poised for rapid growth and the customers are demanding mobility and looking for ways to make it easier for them to work and live life in a much more flexible way. HCL has announced its foray into the mobile computing segment.

Effect of Celebrity Endorsement 19 .

At the enterprise level. "These superstar endorsements signified new-found maturity in this segment of the market. not meant for the designated few in the organization’s hierarchy but for the larger workforce. The notebook PC market took another great leap in India during 1Q 2006 despite the uncertainty around changes in taxes and duties during the annual government budget. with a 14% sequential growth* (1Q 2006 over 4Q 2005) and a 16% year-on-year growth* (1Q 2006 over 1Q 2005). Piyush further stated. the notebook PC segment as a whole witnessed a massive growth of 177% year-on-year* (1Q 2006 over 1Q 2005) in terms of unit shipments. it was business-as-usual but it was the Government and medium business segments which contributed significantly to this market performance". IDC India. notebooks are increasingly being bought for use as second PCs. They helped HP and Lenovo to notch up healthy levels of brand visibility and also helped in expanding the overall consumer market for PCs".year (1Q 2006 over 1Q 2005). Saif Ali Khan and Soha Ali Khan endorsing PCs. consumer desktop shipments recorded a growth of 3% sequentially* (1Q 2006 over 4Q 2005) and 36% year-on. featured in the promotions for desktops and notebooks from HP and Lenovo. This was the highest sequential growth witnessed in the Indian commercial desktop PC market in the preceding eight quarters. "In the consumer market. Coupled with aggressive marketing by vendors.Commercial desktop shipments in 1Q 2006 performed as per IDC guidance. "For the large corporate segment. PC Research. Senior Market Analyst. In 1Q 2006. said Piyush Pushkal. According to Piyush. The buyers are already familiar with desktops and are ready to migrate to the next level of technology. May 2006 preliminary release Market Share of Various Manufacturers in over all Desktop Market for Year 2005 20 .” *According to IDC's India Quarterly PC Market Tracker. 1Q 2006. Bollywood superstars like Shahrukh Khan. notebooks are increasingly being looked at as productivity tools.

Consumer Market Share Source: IDC release 4Q 2005 HCL’s Revenue Growth from Computer System 21 .Fig S1. Commercial Market Share Source: IDC release 4Q 2005 Fig S3.CY’05 Source: IDC release 4Q 2005 Fig S2. Total Market Share.

3) Company Profile : 22 . March 2006 Fig S5. Revenue Growth from Computer System Source: HCL Infosystems Investors release. Revenue Break Up –TTM March’06 Source: HCL release Q4 results FY ’05 2. March 2006 Fig S6. Computer System –Revenue Break-Up Source: HCL Infosystems Investors release.Fig S4.

across a range of technologies in India. For over quarter of a century. HCL have been in the forefront in introducing new technologies and solutions. HCLI has a product range. It offers one-stop-shop convenience to its diverse customers having an equally diverse set of requirements. Last 29 years apart from knowledge & experience have also given us continuity in relationship with the customers. strong customer relationships. HCL have developed and implemented solutions for multiple market segments. sales & support capability to service the needs of the customer. Right from their inception HCL have attempted to pioneer the technology introductions in the country either through their R&D or through partnerships with the world technology leaders.HCL Infosystems Ltd is one of the pioneers in the Indian IT market. 23 . ability to provide the cutting edge technology at best-value-for-money and on top of it. HCL Infosystems (HCLI) draws it's strength from 29 years of experience in hanGzbng the ever changing IT scenario. or a small/medium enterprise. with its origins in 1976. Today HCL is country's premier information enabling company. an excellent service & support infrastructure. thereby increasing the customer confidence in us. Their strengths can be summarized as:      Ability to understand customer's business and offer right technology Long standing relationship with customers Pan India support & service infrastructure Best-vale-for-money offerings Technology Leadership HCL Infosystems is known to be the harbinger of technology in the country. or a small office or a home. Be it a large multi-location enterprise.

Core Values We shall uphold the dignity of the individual We shall honor all commitments We shall be committed to Quality.HCL Infosystems believes in the Total Quality Management philosophy as a means for continuous improvement. services and solutions to meet the requirements of HCL’s external and internal customers. total employee participation in quality improvement and customer satisfaction. organizations need to adopt and implement a continuous improvement-based quality policy. 24 . every time." To exist as a market leader in a globally competitive marketplace. which they make possible.HCL’s Objectives Management Objectives To fuel initiative and foster activity by allowing individuals freedom of action and innovation in attaining defined objectives. share in the company's successes. and help them gain a sense of satisfaction and accomplishment from their work. to provide job security based on their performance. the first time. processes and products. People Objectives To help people in HCL Infosystems Ltd. to recognize their individual achievements. One of the key elements to HCL's success is its never-ending pursuit of superior quality in all its endeavors. Its concept of quality addresses people. Innovation and Growth in every endeavor We shall be responsible corporate citizens Philosophy of Quality "We deliver defect-free products.

Source: Company website (www. Together. HCL Technologies is the IT and BPO services arm focused on global markets. HCL Technologies and HCL Infosystems.hclinfosystem.com) HCL – A Snapshot The HCL Enterprise comprises two companies listed in India.Source: Company website (www.hclinfosystem. while HCL Infosystems is the IT hardware and system integration arm focused on the Indian market. these entities have uniquely positioned HCL as an enterprise with service offerings spanning the IT Services and Product spectrum.com) 25 .

The extensive distribution network established by the Division encompasses more than 800 retailers and close to 300 retail outlets across 300 cities.hcl. The organization plans to use its already established retail network in big way for this. the Frontline Division evolves innovative channel strategies to widen its market reach. with retail being just one. 26 .in About HCL Frontline Division The HCL Frontline Division of HCL Infosystems Ltd. Using its unmatched strength in distribution.Key Business Associates of HCL : Source: www. and offers value added support services to users. Frontline has big plans to increase penetration of notebooks in SOHO/SME segments. the small office/home office and the homebuyer. It has proved its distribution might in the PC segment already where it has pioneered on several fronts. focuses on providing solutions and value-added services to small and medium corporate. Involved in marketing and distributing national and international brands of computer systems and peripherals.

. marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e. marketers have learned that to meet their goals they must use additional promotional methods in conjunction with advertising. 27 . many marketers are discovering that advertising alone is not enough to move members of a target market to take action. though the frequency and spending levels are much greater for consumer products marketers.2. As a reward. Sales promotions are used widely in many industries and especially by marketers selling to consumers..g. Sales promotions are used by a wide range of organizations in both the consumer and business markets. something more for the same price). the high cost of advertising may drive many to seek alternative. lower cost promotional techniques to meet their promotion goals.4) Sales Promotion : In a time when customers are exposed daily to a nearly infinite amount of promotional messages.. Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. Finally. such as getting them to try a new product.g. highly complex) make advertising a less attractive option. Other marketers have found that certain characteristics of their target market (e. Instead. small but geographically dispersed) or characteristics of their product (e.g.g.. lower purchase price. For these marketers better results may be obtained using other promotional approaches and may lead to directing all their promotional spending to non-advertising promotions. We will see that the objectives of sales promotion are quite different than advertising and are specifically designed to encourage customer response. money back) or the inclusion of additional value-added material (e.

creating interest is often considered the most important use of sales promotion. • Stimulating Demand – Next to building initial product awareness. This free access may include receiving product information via email. In fact. Internet marketers can use similar approaches to bolster the number of website visitors. For instance.2. the most important use of sales promotion is to build demand by convincing customers to make a purchase. Additionally. several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. However. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets.5) Objectives of Sales Promotion: Sales promotion is a tool used to achieve most of the five major promotional objectives. a promotion may allow customers to try a fee-based online service for free for several days.. especially those that lower the cost of 28 . • Providing Information – Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. Another important way to create interest is to move customers to experience a product. In this way sales promotion can act as an effective customer information gathering tool (i. • Building Product Awareness – Several sales promotion techniques are highly components in the early stages of new product effective in exposing customers to products for the first time and can serve as key promotional introduction. sales lead generation).e. as part of the effort to build product awareness. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost. which can then be used as part of follow-up marketing efforts. some sales promotions do offer customers access to product information. Special promotions. • Creating Interest – Marketers find that sales promotions are very effective in creating interest in a product.

• Trade Market Directed – Marketers use sales promotions to target all customers including partners within their channel of distribution. consists of diverse collection of incentive tools. can be employed to stimulate sales. Sales Promotion : Sales Promotion. B-to-B promotions are used in many industries. and as discussed later. • Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). such as email “special deals” and surprise price reductions at the cash register.ownership to the customer (e. but important. many buyers are conditioned to look for sales promotions prior to making purchase decisions.. price reduction). While these promotions may not carry the glamour associated with consumer or trade promotions.g.6) Types of Sales Promotion: Sales promotion can be classified based on the primary target audience to whom the promotion is directed. once products are stocked. reward good or “preferred” customers with special promotions. These include: • Consumer Market Directed . 29 . Consumers are exposed to sales promotions nearly everyday. marketers utilize promotions to strengthen the channel relationship. Many companies. Trade promotions are initially used to entice channel members to carry a marketer’s products and. 2. mostly short term. designed to stimulate quicker or greater purchase of particular product or services by consumers or the trade. a key ingredient in marketing campaigns. including airlines and retail stores. sub-set of sales promotions are targeted to the business-to-business market.Possibly the most well-known methods of sales promotion are those intended to appeal to the final consumer. • Business-to-Business Market Directed – A small.

There have been very few discussions in sales promotion literature about how different types of promotions may be classified.000 crore FMCG industry. 1992. is the price versus non-price nature of the promotion (Campbell and Diamond. refunds and rebates that temporarily 30 .954 schemes (Financial Express. the number stood at 1. 2000). 5.000 crore and is growing at a robust pace every year (Economic Times June 15. freebies.7) An Empirical View of the Different Types of Consumer Promotions in India : Expenditure on sales promotion by various marketing companies in India is estimated to be Rs. cents off. 2.2003). One dimension. which has been suggested to classify different promotions. Blattberg and Neslin. Price promotions are defined as ‘promotions such as coupons. In the year 2000. scratch cards. extra product. In the year 2001. there were as many as 2. Companies in an attempt to drive sales offer various kinds of consumer promotions from price offs. 1990).Sales Promotion includes: Consumer Promotion Trade Promotion Business Promotion. HCL capitalizes on to every aspect of the sales promotion in order to sell the maximum number of units.050 promotional schemes of all kinds in the Rs 80.

Studies. 1983). Non price promotions are defined as ‘promotions such as giveaways or contests in which value is temporarily added to the product at full price’ (Cooke. A list of the different types of price and non price promotions and their definitions is shown in Table 1. 1983). have followed this classification in differentiating between types of promotion. which have compared consumer response to different promotions. namely 31 . These promotions focus on the reduced economic outlay required to obtain a good or service.reduce the cost of the goods or service’ (Cooke. Although a wide variety of price and non-price promotions are launched in the market. most of the academic research on promotions has focused on price promotions.

It further reports the incidence of the different promotions in different sectors e. METHOD Television and print advertisements across a range of product categories were content analyzed starting from 2004 to 2006. Different Types of Promotions Launched From 2001-2006 Types Of Promotions Price Off Free Gifts Sweepstakes Extra Products Contests Exchange Offers Buy Two item and save Any Other 2006 26% 53% 26% 19% 9% 27% 13% 19% 2005 19% 46% 11% 16% 7% 14% 15% 5% 2004 4% 13% 17% 12% 13% 21% 12% 11% 2003 5% 26% 15% 17% 15% 0% 26% 16% 2002 8% 31% 18% 15% 6% 12% 11% 19% 2001 6% 19% 9% 11% 2% 12% 7% 12% 32 .g. price promotion versus premium promotion or extra product promotion versus price promotion. extra product offers that are increasingly being used in the market place. The distribution of different promotions across the years is shown in Table 2. Finally. A first step towards researching different promotions is identification of the range of different promotions launched in the market place. a not-for-profit center of Indian advertising which tracks and records advertisements across years. Promotional tools such as free gift offers. Totally 1480 print ads and 1990 televisions ads across the years were analyzed. Consumer Durables and Services. However very little academic theory or research has looked at how consumers perceive and respond to such promotions.price offs and coupon offers.g. researchers have started comparing consumer response to different promotions e. The advertisements were sourced from a database maintained by MAGINDIA. 75 ads till June 2003. The present paper provides an empirical view of the variety of promotions launched in the Indian market place for the years 2004 to 2006. IT. These researchers have found that different types of promotions evoke differential response. studies have not attempted to systematically identify the entire range of promotions launched in the market place. details about each type of promotion are noted in order to highlight the different incentives offered by each type of promotion. In recent years. However.

the amount or percentage of price discount was recorded. details about each type of promotion were recorded. Two coders were trained to content analyze the promotional advertisements by product category. the frequency of promotions across different sectors of FMCG. 33 . Coders viewed each promotional advertisement and noted details about the type of promotion. the type of promotion was recorded. For a free gift promotion. Following this. product category and brand name was noted for each promotional advertisement. for a price promotion.The product categories analyzed in the study covered Consumer Durables. In total around 54 product categories were covered in the study. Consumer Durable and Services were noted. Services and Fast Moving Consumer Goods. A classification table was developed for the purpose of the content analysis (Appendix 1). the price and brand name was recorded. Raters were provided sentence long descriptions of different promotions (Appendix 2) and identified promotions based on how they matched the descriptions.g. E.1) Frequency of Promotions across Product Categories Before proceeding with the main analysis. Firstly. The frequency of promotion in these sectors is shown in Table 3. Further to this. RESULTS 2. Promotions that did not fall into any of the descriptions provided to the raters were recorded in the ‘Any Other’ category and details of such promotions were noted down.7. basic details on year. nature of the free premium.

The Services sector accounts for the lowest number of promotions. Durables and Services was analyzed as shown in Table 4. 2002).The frequency of occurrence of promotions is similar between FMCG (45%) and Durables (44%) sectors.and save / get offers. 2. free gift offers. detergent liquid/powder and tea. contests.7. exchange offers and buy-more. Durables and FMCG The different types of promotions identified in the study include price offs. extra product offers. Within FMCG. sweepstakes. the most frequently promoted product categories are soap. 34 . Within Durables the most frequently promoted product categories are colour television and personal computer. The overall frequency of occurrence of these promotions as well as frequency of occurrence in FMCG.2) Frequency of Different Promotions in Services. These are also product categories with the highest level of market penetration (NCAER: Indian Market Demographic Report. The most frequently promoted categories in the Services sector are Fast Food Restaurants and Cellular Phone Service.

followed by the sweepstake promotion. One can give importance to cost of the product and for the other features are more important.The most popular promotion is the free gift promotion. 2. someone for home use. followed by the extra product promotion (8%) and the price off promotion (8%) in popularity. This is followed in popularity by the sweepstake promotion (11%). the order of frequency of promotions is the premium promotion followed by the sweepstake promotion followed by the price off promotion. the order of frequency of promotions is the premium promotion followed by the extra product promotion followed by the price off promotion. which constitutes more than half (55 %) of the total number of promotions. Need of customers may vary from person to person. and others for business purpose.8) Products and Services HCL Infosystems's portfolio of products covers the entire spectrum of the information technology needs of its customers. Needs of customers are different hence requirement may be different also. HCL Infosystems fulfill all the requirements of its customers and has tailor made solution for them. In case of Durables. the order of frequency of the promotion is the premium promotion follows by the extra product promotion. HCL Infosystems Product Portfolio DESKTOPS & NOTEBOOKS • Business PCs • Home PCs • HCL Leaptops 35 . HCL Infosystems's products offerings include everything from high-end enterprise level servers for mission critical applications to multimedia home computers. which in turn. In Services. Use may be different as some one is using it for office purpose. By virtue of the immense diversity of markets and customers that it addresses. In FMCG.

Intel WORKSTATIONS • Infiniti Challenger Workstations • SUN Workstations AMD WORKSTATIONS • Infiniti Xcel Line 2200NL • Infiniti Xcel Line 2200SY 36 .

SERVERS Intel Servers • Infiniti Global Line Servers • IGL Entry Level Servers • IGL True Enterprise Servers • IGL Blades Servers • IGL Itanium Servers • Infiniti Solutions AMD Opteron Servers • Infiniti Xcel Line 2200AT • Infiniti Xcel Line 2200MI • Infiniti Xcel Line 2200AZ • Infiniti Xcel Line 4200TL Other Servers • SUN Servers • HP Risc Servers & Workstations THIN CLIENTS • Winbee Thin Clients • SUN Thin Clients DISPLAY PRODUCTS • SUN Thin Clients NETWORKING PRODUCTS • WinSmart Switch • SNMP Managed Switch 37 .

SmartCard Logon • HCL InfoSmartCard • HCL InfoLoadBalancer • HCL InfoSMS • HCL InfoDashboard HCL InfoAttendance • HCL InfoAttendance .SN model STORAGE SOLUTIONS HCL Storage Solutions • HCL Infiniti SAN ARRAY 2502FC • HCL IGL NAS Servers • IGL NAS 1400 BT • IGL NAS 2700 SP • IGL NAS 2700 BD • SUN Storage Solutions • EMC Storage Solutions TOSHIBA NOTEBOOKS 38 .SECURITY PRODUCTS • HCL InfoWall • HCL InfoSecuAccess • HCL InfoVPNe • HCL InfoSecuMon • HCL InfoNetMon • HCL InfoSurveillance • HCL InfoSecuDesk .Biometric Logon • HCL InfoSecuDesk .BN model • HCL InfoAttendance .

Special Offers.2. Events in Schools. in order to initiate the purchase of the Home PCs at a discounted price by the employees of that organization. In this special offer which is Given to the employees of targeted corporate or organization for a limited time period so that they feel themselves the importance and purchase a computer under the scheme. Description of Activities Promotional activities always give some kind of a result. Mega Events. Employee Purchase Programme (EPP): Employee Purchase Programme (EPP) is basically the special scheme or offers designed for the employees of an organization. Road Shows. this was the basic learning. Special Offers. 39 . This is also beneficial for the company to increase the sales. Colleges and Institutes. Personal Selling or Door-to-Door Selling. Tele-Calling. which I got in this training and I must say that the promotional activities performed by HCL for their channel partners has given a drastic boom to sales of Home PCs in Ghaziabad region. Different ways in which HCL promote their products are: • • • • • Employee Purchase Programme (EPP).9) Promotional Activities Tools used for Promotional Activities • • • • • • Employee Purchase Programme (EPP). Road Shows. Personal Selling or Door-to-Door Selling.

EPP is a way to thank the organization and the people working there for their support and cooperation. get permission for EPP. printer and UPS etc. Things to remember for EPP Price of the product should be less than the market price of the product. Try to get the maximum sales of product during this period and also satisfy them by better services and delivery of product. Sales Executive and Trainees can be included in this team. Suggestions: A team of employees can be made specially for organizing the EPP. Get the information about the right location and right days for the EPP. This team can organize the EPP on the continuous basis in the organizations after certain period of time. For e. but it should follow a systematic approach in conducting an EPP.EPP is a very efficient promotional activity to improve the sales graph for the company. Sales Manager. Accessories of computer such as web camera. Collect database for future purpose. can be provided at reasonable prices or discounted price. 40 . Select a Corporate or Government Office for this programme. Nominal margin of channel partners make it more attractive. Meet the concerned person and give them offer of scheme and convince them. On the spot finance schemes is also helpful in this programme. Organize the event in faithful manner for employee. Make a call to HR Manager or Administration in order to fix an appointment.g. Rate of interest for finance is lower than the normal rates.

The team can carry out following activities: Maintain a record of concerned persons in each and every organization. of organizations. we may conclude that a CANOPY should be set up at prime locations like in the market place.Scope of EPP for HCL in Ghaziabad is very good because there are a large number of Industries and various Industrial areas as well as large no. Remember these concerned persons on certain occasions for good corporate relationships. The procedure of road show is to setup a CANOPY at the road side in different markets or public places where the no. should be collected for better performance in the future. etc. Detail about competitors. 41 . Feedback about the EPP should be collected. Road Shows Road show is also an effective promotional activity and most of companies are using it. HCL is also using this promotional tool very aggressively in Ghaziabad. this tool is a great help in getting the attention of the targeted customers. of footfalls is high and where chance of getting noticed is high too. Database of that organization should be separated where more opportunities are for the company. Hence. Can send detail about new products and schemes launched by the company on time-totime basis. it may help in further improvement in future EPP’s. who are also organizing EPP. One or two employee of the company or trainees should be present in the CANOPY with leaflets and other related material of the company.

and also in residential colonies or societies where potential customer is available. In schools and colleges these events can be organized on particular day. Road show also can be done with Mega Events. Mega Events HCL is organizing mega events in Ghaziabad very aggressively. annual day. It helps in increasing the awareness about the special schemes and offers by the company to the public. which can help in converting the interested person(s) into customer(s). Special offers Channel partner of HCL give special discount offers to their customers on the behalf of the company in order to sell or promote the product of the company. for e.g. Appropriate location in a good market. teachers day. cultural day and other special occasions so as to have a maximum reach and convert the calls to customers or clients. These special offers are like the special offer in summers or in the Festive season. These events are organized at public palaces. These special offers are helpful for customers in decision making because when customer compare the price and benefit of HCL Home PCs with other competitors then he can easily make out the difference and choose HCL because he/ she is getting best deal with HCL due to that offer. These interested persons can be followed up by tele-calling 42 . It is an easy and effective way to generate queries for the follow-ups. Follow Up Database of interested customers can be collected through EPP’s or Mega Events or Road Shows and is very helpful in sales promotion and selling of a product. in schools.We distribute the leaflet in public and also answer queries generated by the visitors. for the success of event. colleges.

computer coaching centers. in order to have some benefit for the company. which may also be converted into sales because this method gives the customer importance and the person can feel it. 43 . can also be used to make personal visits to convince the prospective customer and convert him/her to a customer. Queries that are generated by EPP. Under this activity an employee or a trainee of the company make visits to cyber cafes. etc. Not all but some of them may get converted into customers.Calling should convince customer and if possible convince the customer to visit the demo center of the company. New queries can be generated by this way. big showrooms & shops and malls. Mega Events. Personal Selling Personal selling is also an effective method to maximize the sales and is a good way for sales promotion.

44 .

3. because wrong definition misdirects research.1 ) Research design : The selection of a particular design depends on the causality of the variables involved. One of these factors is sales and promotional activities as well.In application of market research the research has to go through several steps or stages and these steps are following. without demonstrating that some relationship exists between variables. these players are assemblers and branded. Here I am using cross-sectional design to produce a picture of the phenomena in which the decision maker is interested –for example. which influence the buyer for purchasing the PC. Defining the Problem Defining the problem is the most important part of the market research process. Decision makers very often choose or are willing to accept descriptive data. etc. For the purpose of my study I intend to take up Descriptive Design. and the sampling procedure to be followed and the data to be collected. the market shares of various firms. 45 . This covers research designs that are intended to produce accurate descriptions of variables relevant to the decision being faced. consumer preference regarding Home PC’s offered by HCL. all depend on the current understanding of the problem. the questions to be raised. which would permit only inferences to be drawn about causation. HCL is having tough competition in the market with other players. There are many factors. The type of the research to be carried out.

Sampling Unit: The first question that arises when you decide to survey is: Whom to survey? The marketing researcher must define the target population that will be sampled. Sample Size: Next important question arises: What is the size of population to be surveyed? Large samples give more reliable results than small samples. This plan calls for three decisions: 1. even though they do not allow sampling error to be measured. Probability Sampling allows the calculation of confidence limits for sampling error.3. 46 . The target population for my survey was Channel Partners of HCL Infosystems Ltd. Three types of probability sampling are described below. a probability sample of the population should be drawn. the marketing researcher must design a sampling plan. Some marketing researchers feel that non-probability samples are very useful in many circumstances. and my Sampling Frame was Ghaziabad. part B. I have conducted the Judgmental and Convenience sampling in Ghaziabad region. Sampling Procedure: The other most important question in research is : How to chose the respondents? To obtain a representative sample of the population. marketing researchers will take Non probability sampling. it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. When the cost or time involved in probability sampling is too high. 3. 2. However. describes three types of non-probability sampling.2) Research Process Sampling and Determination of sample size Sampling Plan: After deciding on the research approach and instruments. part A. Below. A total of 9 interviews of Channel Partners were conducted in Ghaziabad region at different locations.

Data source To meet with Channel Partners and asked to fill structured questionnaire we use interview and questionnaire methods. 47 . The information collected should be both accurate and relevant as per as the requirements of research project. In our study we used Primary method of data collection Primary Methods: When a researcher directly collects data then this method is known as primary method. Depending on the requirement. 3.3) Collection of Data The data collection phase of marketing research is generally the most expensive and most prone to error. the researcher has to work out a suitable data collection method.

48 .

P1. Brands which are more Customer Oriented Brands which are more Customer Oriented Wipro Others IBM 11% 0% 11% HP 22% HCL 34% HCL Compaq HP IBM Wipro Others Compaq 22% Fig 2. 49 . Comments: This can be straight said that HCL is most Customer oriented brand but if we take HP Compaq combined it is the second largest most customer oriented brand in the market. Time Period in Sales of Computers Time Period in Sales of Computers 0-5 Years 6-10 Years More than 10 Years More than 10 Years 11% 0-5 Years 45% 6-10 Years 44% Fig 1. Comments: It is very much evident from the chart that 45% of the people are selling computers from last 5 years. of channel partners in order to serve the need of the consumer and to be with the competition. P2. Hence we may conclude that company should increase the no.

50 . This shows that if HCL BeanStalk has a very good market potential if utilized properly can yield excellent results for Company. P4. This can be interpreted from the graph that this product is fairly popular as well but the company should add some innovations to this product and market it then after this product can be a great success.P3. Market potential for EZEEBEE M arket Potential of H L EzeeBee C 11% 22% H igh M edium Low 67% Fig 3. Comments: According to 56% of Channel Partners there is tremendously high market potential for HCL BeanStalk. Market Potential of Beanstalk M et P te tial o H L B an ta ark o n f C e s lk 1% 1 H h ig Md m e iu 3% 3 5% 6 Lw o Fig 4. Comments: According to 67% of Channel Partners there is tremendously high market potential for HCL EzeeBee in the market. .

Consumers Preference for EzeeBee Consumers Preference for HCL EzeeBee 22% 45% High Medium Low 33% Fig 5. 51 . it can be stated that this product is a good product but a few changes or innovations in the product can make it a excellent product to target a particular segment at a reasonable price.P5. This graph shows that this product is in good demand by the consumer and the company should focus on to it and try to capitalize on this product. The chart above shows that consumers know about the product and prefer this product fairly well. P6. Comments: According to Channel Partners 67% of customers prefer HCL BeanStalk than the PCs by other competitors in the same segment. Comments: According to Channel Partners 45% of customers prefer HCL EzeeBee than the PCs by other competitors in the same segment. Consumers Preference for BeanStalk Consum ers Preference for HCL BeanStalk 11% 22% High Medium 67% Low Fig 6. hence.

Gzb Visual Computers. Gzb Visual Computers. Gzb Precomm Computer. Gzb Electronic Plaza.P7. Gzb Electronic Plaza. Sai Info Solution. Gzb Scale Name of Channel Partner Fig 7. Gzb Express Computers. Gzb Fortech Computers. Gzb Sai Info Solution. Gzb Fortech Computers. No. Gzb Ample Computers. Gzb Ample Computers. Gzb Total Product Display Poster Display 4 6 6 6 4 8 4 4 6 48 9 8 7 6 5 4 3 2 1 0 Relience Info Solution. Gzb Advance Infotech. In-shop Promotional Activities of Channel Partners Criteria Rating Scale S. 1 2 3 4 5 6 7 8 9 Excellent Very Good 10 8 Good 6 Average 4 Product Display 6 6 4 6 4 8 6 4 6 50 Poster Display Poor 2 None 0 Name of Channel Partner Express Computers. 52 . Gzb Precomm Computer. Gzb Advance Infotech. Gzb Reliance Info Solution.

Free Upgradation of RAM Very High. Scheme to Customer Criteria Rating Scale S. And overall inshop promotional activities of the channel partners is good. 53 .2.Comment: It is evident from that the product display is very good at Fortech Computers. Free Tour Package. Ghaziabad and Precomm Computers. Ghaziabad poster display as well as product display both are good. 1. Free CD Pack.4 Very High 8 High 6 Moderate 4 Poor 2 None 0 Scheme Name Demand Bundle Offer.3. No. P8. Low. Ghaziabad and at Advance Infotech. High. Moderate 9 8 7 6 5 4 3 2 1 0 Bundle Offer Free Tour Package Free CD Pack Free Upgradation of RAM Scale Demand Schemes Fig 8.

Gzb Ample Computers. Gzb Sai Info Solution. Gzb Visual Computers. Gzb Visual Computers. Gzb Total Product Display 6 6 4 4 4 8 4 4 6 46 P roduc t D is playP os ter D is play 9 8 7 6 5 4 3 2 1 0 Relience Info Solution. Gzb Reliance Info Solution. Effect of Product and Poster Display Criteria Rating Scale S. Gzb Advance Infotech. Gzb Electronic Plaza. No. This scheme also gives the sales volume to the company because this scheme is available with all models of HCL PCs. Gzb Scale Na m e o f C h a n n e l P a rtn e r 54 . Company should also focus on various other customer-oriented schemes. P9. Gzb Fortech Computers. Gzb Precomm Computer. 1 2 3 4 5 6 7 8 9 Excellent Very Good 10 8 Good 6 Average 4 Poor None 2 0 Poster Display 4 6 4 6 4 8 4 4 6 46 Name of Channel Partner Express Computers. Gzb Ample Computers.Comment: The above chart reveals that the Bundle offers are very popular scheme among the customers. Gzb Electronic Plaza. Gzb Fortech Computers. Gzb Sai Info Solution. Gzb Advance Infotech. Gzb Express Computers. Gzb Precomm Computer.

Gzb Advance Infotech. Gzb Fortech Computers. Both the displays create more awareness about the HCL products and also useful in creating demand for the product. Gzb Sai Info Solution. SM World. P10. Gzb e-infosoft. Effect of Catalogue Criteria Rating Scale S. Gzb Precomm Computers. Gzb Precomm Computer. And the overall effect of product and poster display according to different channel partners is good. Sahibabad Rating Scale Effects Name of Channel Partner or Demo Center 55 . Gzb Fortech Computers. Gzb Advance Infotech. Gzb Ample Computers. Gzb Ample Computers. Gzb Relience Info Solution.Fig 9. Gzb Express Computers. Gzb Electronic Plaza. Comments: The above table and chart reveals the effect of product display and poster display in Showroom of Channel Partner or Demo Center. Gzb Total Effect of Catalogue 9 8 7 6 5 4 3 2 1 0 Electronic Plaza. Gzb Visual Computers. 1 2 3 4 5 6 7 8 9 Excellent Very Good 10 8 Good 6 Average 4 Poor None 2 0 Effects 4 6 4 4 6 8 4 4 6 46 Name of Channel Partner Express Computers. No.

I also found an excellent medium to reach to the target customers and with this approach the company can reach to the more people and educate them about the project. demand of different HCL products can be increased if catalogue is used in proper way P11. Overall effect of catalogue according to different channel partners is good. Hence. Comments: Canopy is the most effective and efficient activity. Comments: The catalogue is very effective tool for selling. Promotional activities which dealers found efficient EPP Insertions 11% 11% Direct Marketing 22% Canopy 34% Canopy Ad in New Paper Direct Marketing Insertions EPP Ad in New Paper 22% Fig 11. Promotional activities which dealer found most efficient one. product depth etc. AD in News Paper and Insertions are other effective Activities. 56 . It increases awareness about the company products. It is beneficial for the customer as well as company.Fig 10.

1 Very High 8 High 6 Problem Supply of Product a) From Company b) From Distributor Time of Delivery Packaging Model Version Scheme Desktop 9 8 7 6 Scale 5 4 3 2 1 0 Supply from Company Supply from Distributor Time of Delivery Packaging Model Version Scheme Laptop Moderate 4 Low 2 Desktop Very High Moderate High Low High High None 0 Laptop Moderate Low Low Low Moderate Moderate 2 3 4 5 Problems Fig 12.P12. Problem of Channel Partners Criteria Rating Scale S. No. 57 .

Otherwise chances are more for shift of brand for current as well as prospective customers. 58 . that the main problem of the channel partners is with the supply of product. Hence. company should give attention towards it.Comments: It is very much evident from the table and graph. above.

The information gathered from the market. People are not very much aware about other offerings like software development. Internet services. 59 . Most of the people think that HCL is a typical hardware firm and has no relations with software or software development. facility management and high end solutions. which effect or can effect the business of company in any mode directly or indirectly.Main aim of any Research. which are outcomes of the research conducted and are known as findings. which is conducted in the market place to bring in light hidden and basic facts. they only know that HCL deals in desktops. The findings of this project are as follows: Aggressive promotional strategy is being used by HCL in Ghaziabad. HCL is a market leader in IT products in Ghaziabad and have a close competition with Compaq and HP. laptops and servers. These hidden truths are basic facts. The result of assigned project in management studies is also known as findings. networking. which can be accountable in the achievement the objective for the company are basically known as findings.

In order to overcome this problem in future HCL may open more service centers and use them as USP while selling. HCL give a tough competition to the above-mentioned MNCs. Compaq and HP are the companies that are on the top in the mind of Brand Oriented or Brand Aware Customers. Cost and quality are two major factors that are taken into consideration by people while making the purchase. In technology and quality HCL hold the second position after HP and Compaq combined. According to Consumer Satisfaction Index HCL is No. People are today more concerned about the after sales service which is a USP for HCL.HCL.1 Company where as second and third positions are bagged by Compaq. HP and IBM respectively. 60 . It is equivalent to IBM. it has good service in comparison to the other market player. Corporate image of HCL is pretty good. In terms of cost HCL is at third position after Sahara and Zenith in desktop segment. Compaq and HP. Customers are facing problem in Ghaziabad related to after sales service provided by the competitors. since. HCL is not focusing much on advertising in comparison to its competitors.

61 .

Company should also promote these products and utilize its brand image.HCL has a good brand image in the field of home PCs. advertising should be made frequent to let the people remembered the name of HCL. Company can send cards and invitation to the customers from time to time or on certain occasions. colleges and should also have good relations with end users. Company should maintain good relationship with its big customers such as institutions. Relationship between the customer and the company is base of growth for any company. HCL is also not advertising much for its products frequently in print media and in television channel etc. corporate. But HCL is not popular in business segment where Laptops ad PCs are required. schools. 62 .

Hence it is recommended that company should open a few more service centers in the city. Distribution of machines from company to channel partner is not being done on time. it is not possible for the company to increase the sales. 63 .Hoardings of company’s product should be at kept at prime locations where maximum people can see it. channel partner is being able to make the delivery on time. Hence. the time taken for the delivery should be minimized to a larger extent in order to make the faster deliveries. Until and unless after sales service of the company is not good. So. HCL is also facing this problem in some areas of Ghaziabad.

but HCL has a big market at national and international level. But there are few limitations. the results may or may not be the same for the other seasons. This project has being performed in summer season. Hence. Area of study was limited to Ghaziabad. which are as follows: It is quite possibility that respondent might have given wrong or partially correct information The time period allotted for this study was short.Limitations of the Study In this report I have tried to give the latest and accurate information about the study conducted. 64 .

65 .

HCL Compaq HP 66 . So.Questionnaire This is a personalized Questionnaire designed for academic purposes & the information provided by you would be kept strictly confidential. please feel free to answer the questions. Name of Channel Partner _________________________________________________ Location _________________________ Date of Visit ___________________________ 1) Since how long you are selling Computers? 0-5 Years 6-10 Years More than 10 Years 2) Please tick brand of Home PCs has the highest demand.

Time of Delivery 67 . a. Statements Market potential of HCL EzeeBee Excellent High Can’t Say Medium Low Consumers preference for HCL EzeeBee Market potential of HCL Beanstalk Consumers preference for HCL Beanstalk Effect of Product and Poster Display Effect of Catalogue 4) Please rank the schemes offered to Customers as per the demand of Customer? (Rank 1-4) Bundle offers Free CD Pack Free Tour Package Free Up gradation of RAM 5) Please rank promotional activities on the scale of effectiveness (Rank 1-6) Canopy Direct Marketing EPP Ads in Newspapers Insertions Can’t Say 6) Please rank the various problems faced by you.) Please Rate the following as per your preference. Supply of Product (i) (ii) From Company From Distributor ______ ______ ______ b.IBM Wipro Others (Please specify) 3.

6 for high. 2 for Low) 5) Any Suggestions to HCL Infosystems Thank you very much for your valuable time 68 . 4 for moderate.c. Packaging d. Model Version e. Schemes ______ ______ ______ (**Rank 8 for Very High.

Sales And Distribution Management .L Lobo.. G. Third Edition Global Business 2) Berry. Rajendra. New Delhi 5) Press Nargundkar.rec/id-20561. Philip. “Marketing Management”. Prentice Hall of India.htm 69 . Prentice Hall of India. Tata McGraw Hill Publications. New Delhi 3) Luck. New Delhi Websites : http://www.htm http://www. “Marketing Research”.Références : 1) F.iimah.com/tutorial/salespromotion. David J. New Delhi 4) Kotler.C.Knowthis.. “Marketing Research”. “Marketing Research”. Tata McGraw Hill Publications.

Journals: 1) HCL Infosystems Investors release. March 2006 2) IDC release 4Q 2005 3) PC Market Tracker. 1Q 2006. May 2006 preliminary release 70 .

71 .

Case: International Marketing Global Branding: An Expensive Affair This case paper is to talk about the different promotion and Brand positioning practices being followed by top companies in IT hardware market across the globe. This case is an informative base for comparative analysis of Brand promotion approach and strategies being adopted by companies like HCL. hence they are shedding a healthy part of their profit in promotion and Brand positioning. Here are the companies and their Promotion strategy and Approach. DELL and Lenovo. As compound annual growth rate of 20 per cent in personal computers (PC) for the next five years is expected by IDC research. Since 1998 the need of Global Branding has emerged as a very critical and costly affair. hence it is vital for companies to live up an appealing Brand image. 72 . HP.

HCL Enterprise (HCL). 73 . It also worked on a new logo and started a global branding campaign with the help of leading ad agency Draft FCB Ulka. So. Management & BPO Services for Global Market) and HCL Infosystems (Hardware.HCL Technologies (Engineering & R&D. it had never made a serious effort to project that image and that this had resulted in other companies in the sector becoming more visible. infrastructure. It also realized that despite being a dominant player in the IT sector. The company. the company initiated 'Project Heartbeat' aimed at creating a unified HCL brand. one of the leading information technology companies in India. felt that the new ad campaign would help reinforce its positioning as an innovative company that had used technology to improve the quality of people's lives. Integration & ICT Distribution for the Indian Market). The ad was a sequel to the 'Technology that touches lives' campaign launched the previous year. In the mid-2000s. in 2005. the various diverse entities operating under the HCL name were consolidated under two umbrella companies . As part of the project. System.‘Global Branding: An Expensive Affair’ HCL’s Global Branding: 'Technology that touches lives' In early 2008. the company felt the need to unify its various businesses and connect with all its stakeholders. launched a new TV commercial aimed at showcasing its technology process. Enterprise & Custom Applications. which considered itself "India's original garage IT start-up" as it had more than a three decade heritage in this sunshine sector.

and core values . powering stock market software. 'At HCL there's only one thing more important than brains… Guts. In 2007. that tried to tell the viewer how HCL touched the lives of people across various segments such as BPO. ATMs. Aerospace.The global branding initiatives were started in April 2005 with the 'Fearless' campaign. Banking. and rural computers that run on car batteries). the 'Technology that touches lives' campaign was launched to project the importance of HCL's technology in people's everyday life. You have less fear'.Guts. It used messages such as 'You don't have more courage when you are young. It went on to show how the HCL employee explains to the banker how HCL touches the lives of people (for instance. and. in the third phase of the global branding initiative. 74 . 'What does it take to become a founding member of the US$2 billion club? Courage'.' The branding initiative was taken forward in the following year by the 'The Numbers do the talking' campaign. and Passion. The ad showed a chance encounter between an investment banker and a traveler (a HCL employee). The challenge the company and the ad agency faced was to do all this in just 60 seconds. and Biomedical. Courage. This was a print-led TV campaign that sought to enlighten the various stakeholders on the company's scale. heritage. through the dialogues of the animated characters '0' and '1'. in the car safety solutions space. The ad campaign strove to show the world through the eyes of the common man who was not aware of the many ways in which HCL touched his life everyday.

marketing. From the survey carried out in major cities with a sample size of 1. "As a technology company.” He also said that the ad would go a long way in attracting employees as well as in reaching out to more customers. print. Speaking about the ad campaign. But we wanted our ads to connect with the public.400 each. said. Some analysts felt that the theme of the campaign could have been shown in so many different creative ways and criticized the company for opting for this lackluster approach. Does an IT professional get a company helicopter to travel in? If the company could arrange a helicopter for its employee. like the earlier campaigns. we had a tendency to be nerdy and it reflected in our past ad campaigns. the HCL employee thanks the banker and takes off in a helicopter for an overseas life sciences project.At the end of the ad. especially the 'Technology that touches lives' campaign was quite effective. the score was found to be high. the ad drew a lot of criticism from various quarters and was also ridiculed in various blogs. associate vice-president. and outdoor media. the branding initiative. Saurav Adhikari (Adhikari)." said M Sundararajan. 75 . According to the company. HCL Technologies. They said that the 'conceited' young man portrayed in the ad was in no way representative of IT professionals. we discovered that awareness of HCL has grown. many IT professionals felt that the ads showed IT professionals in a bad light. There are some points which evident the impact of the campaign-"On performing a brand track to measure the effectiveness of our earlier campaign.Strategy. However. used a 360 degree communication approach comprising electronic. Critics felt that the ad did not make much sense. why couldn't they arrange a cab for him as well? Moreover. The sequel to the ad campaign launched in 2008. online. the company's Corporate Vice-President .

The ad opened with a scene in an airport where the investment banker accidentally swaps his coat with that of the HCL employee. thus reiterating the spirit of the organization. The confused banker then encounters the HCL employee and realizes that the compliments were in fact meant for him. in the TV ad. 76 . The HCL employee chuckles as the woman starts asking the distraught banker about the features of the notebook. The ad ends with the voiceover: 'From India to across the world. and entrepreneurs in the IT space. one man thanks him for transforming his small business into one with an international presence. there were people from different facets of life acknowledging HCL as a leading global technology enterprise. A $ 4. "The tone of the ad highlights HCL's core strength: the combination of more than three decades of pioneering technology and the freshness of its outlook personified by the young HCL employee. a politician compliments him for doing well in the global healthcare industry." The company expected its latest marketing communication to strike the right chord with its target audience . decision makers. the pilot gives him credit for making the skies safer.8 billion enterprise. The campaign retained the two characters from the earlier campaign.potential employers. The look and feel of the ad is youthful and vibrant. HCL's technology touches lives everywhere. A young woman carrying a new HCL notebook is seated next to the banker. said.' Sanjeev Bhargava. He then encounters people from diverse backgrounds who thank him for making a positive change in their lives (for instance. As the banker is about to take off the coat.However. COO.' And the message: 'HCL. Draft FCB Ulka. the HCL employee tells him to keep it on as it was cold. instead of the HCL employee talking about his company. a young man with a portable gaming console thanks him for designing the game as well as the chip inside). Once inside the airplane.

We are certainly proud of our leadership in these areas. creative brand campaign HP has done. "Today. this campaign focuses on what we make possible on behalf of our customers. The campaign features a series of vignettes that showcase the remarkable ways people and businesses use technology today and the role of HP services.HP in Action: ‘Everything is Possible’ HP Launched New Global Brand Advertising Campaign Focusing on Customer Partnerships and the Role of HP Services. and helping birdwatchers in Finland to record the GPS location of rare birds”. helping NASA bring astronauts home safely. there's a lot that people don't know about HP. we support 95 percent of the world's securities transactions. technology and people in making it possible. our clients and our partners. senior vice president. 2002 launched a new global brand advertising campaign. most people think of HP as a great printer and PC company. HP Brand and Marketing Communications. People. the first campaign for the company since its merger with Compaq.(customer) + hp = everything is possible -. and Technology in Business and Life. and we are the world's leading technology supplier to consumers and small and medium businesses. “The first set of campaign ads showcases the ways HP is helping DreamWorks animators create a new generation of animation. But rather than focus on what we make. vice president. HP Global Brand and Communications.to communicate HP's focus on partnership." 77 . "This is the most assertive. The brand campaign introduces the theme line "everything is possible" and an equation device -. "We decided the best way to become recognized as the world's leading technology company was to simply tell it like it is. positively get packages delivered overnight. but when you consider that HP powers more than 100 stock and commodity exchanges. helping FedEx absolutely." said Allison Johnson. we help process two out of every three credit card transactions." said Gary Elliott. HP (NYSE:HPQ) on 18 Nov.

" The first outdoor ad appears in New York City's Times Square.The campaign.com now delivers dynamic content via rolling "billboards" for each audience segment. HP unveiled its redesigned Web site. print. hp. The first print ads ran in the Wall Street Journal and New York Times. 5 2002. Components of HP's integrated marketing campaign include: an innovative Comdex booth that blends HP customers and technologies to create an interactive experience. on Nov. followed by USA Today. HP. online and outdoor media components. The new hp. LENOVO: ‘Make your Ideas sound better’ 78 . and HP will took over premier placement on the Yahoo! site for the entire week.com serves more than 4 million unique visitors each week and is the lead component of HP's consumer. which includes television. was launched in North America and pan-regional media across Europe.com. http://www.hp. along with other integrated marketing programs. easier navigation and customer-specific sections that take users to relevant HP products and services with fewer clicks. providing quick access to customized information. The site featured a simpler graphic layout. events and promotions relevant to every type of user. Web site "landing pads" for visitors to explore what customers are doing with HP. In addition. Asia and Latin America. The first television ad ran on CNBC's "Early Today Show" and ABC's "Monday Night Football. Magazine placements began in Time. small business and enterprise e-commerce offerings. HP.com design is based on global customer research and integrated Web analytics to help users do what they want to do efficiently and effectively.com Redesign In conjunction with the new brand campaign. San Francisco-based advertising agency Goodby Silverstein & Partners designed the campaign. The site migrated to other countries in 34 additional languages in 2003.

Piyush Pandey of India is taking great personal interest in the effort.” “While this is a prestigious account for O&M India. Lenovo’s advertising studio is up and running.” says a senior executive with a Top 10 agency. vice-president.000 crore. • O&M India hired to “have the best creative minds” behind effort to build uniform Lenovo brand 79 . The idea is to have the best creative minds behind the effort. Lenovo is looking at a huge 40% reduction in global marketing costs. and the largest in the Asia-Pacific region. catalogues and outdoor advertising. Lenovo is said to be looking at a team of 60 people to spearhead its BTL efforts. say. in terms of revenue potential.) In a first-of-its-kind effort and as part of its move to make Bangalore its global advertising services hub. direct mailers. Hot-Wired • Post-consolidation. the third largest personal computer maker in the world after Dell and HP. has appointed O&M India to coordinate all mass media advertising for the Lenovo brand worldwide. We might also have a creative head from. “Our estimate is that the agency will make around Rs 12-15 crore in annual fees.” (Unofficial figures indicate that O&M India’s billing currently stands at around Rs 1.” says Rahul Agarwal. Lenovo India. besides spearheading Lenovo’s channel management and retail merchandising efforts. New York or France to give his inputs and offer direction. “We will have multi-country teams to develop the course of our advertising. A dedicated team from O&M has already been stationed in Bangalore for this purpose. marketing.Lenovo. Lenovo—expected to clock $70 million in global advertising spend in 2007—is also looking to set up an outfit under the Lenovo brand that will work on all below-the-line (BTL) activities for offices across the globe. it might not be significant. The centre built in Bangalore will be involved in developing Web advertising. except China. “For example.

which has headquarters in the US and China.• Bangalore to be Lenovo advertising services hub with unit working on all BTL activities “Cost is not our primary concern. Cost savings. “The idea is to build a uniform brand identity and improve the average quality of work. is expected to splurge on advertising over the next couple of years. which is expected to attract $3 billion in additional advertising in 2008. of course. 80 . The advertising industry in India is watching Lenovo’s moves with bated breath because the company.” he adds.” says Agarwal. expects ZenithOptimedia. It is also learnt that O&M has been on a hiring spree for the last few months to support Lenovo’s efforts. It has already added 40-odd people to its Bangalore branch. nearly $1 billion of it in China alone. The company is a sponsor at next year’s Olympics in Beijing. The company’s advertising theme will remain the same: ‘From the world’s best engineers come the world’s best-engineered PCs’. is a healthy by-product.

if not somewhat sterile. Even before the Olympics. it’s interesting to observe the sometimes obvious dissociations with China. It had moved its headquarters from Beijing to Morrisville.C. making it seem like much more of a global brand. N. field for Olympic advertising. Although Lenovo’s largest shareholder is the Chinese government and its biggest operations are in Beijing. Singapore and North Carolina. It should certainly make for an interesting. Lenovo has the benefit of an Italian name and a heritage borrowed from IBM. in this effort it gains distances from Beijing.Playground of Advertising: Lenovo moves toward a global brand. As most Olympic advertisers are being careful to promote global community and athletic prowess. Lenovo is being careful to highlight its global market and stay away from its Chinese heritage (at least outside of China). Lenovo had been backing away from China.. As the Olympics are closer. Americans who watch ads during the Olympics this August will see only a company that wants to show off its technology. In a cautious environment. which had been the area of I. It now refers to itself on its Web site as a “global company with executive offices” in Beijing. it’s interesting to watch brands tiptoe around the issues surrounding China and the Chinese Government.M. New York Times has published an interesting article detailing the part computer giant Lenovo is playing in advertising for this year’s games.B. after the acquisition. last year. From the NYT article: Lenovo won’t exactly be highlighting its home-field advantage.’s operations. it abolished official headquarters altogether. 81 .

Dell: ‘Be Direct’ to ‘Yours is Here’.
Dell Launched First Global Brand Advertising Campaign on June 11 1998 Dell Computer Corporation (NASDAQ:DELL), the world's leading direct computer systems company, launched its first global brand advertising campaign, beginning in the United States and Canada to further highlight the advantages of its direct business model. The brand advertising campaign carried the theme "Be Direct." The campaign highlights Dell's unique business model, which helps to eliminate barriers between customers and the manufacturer, providing Dell with the means to enhance the overall customer experience. Until then, Dell's advertising has focused primarily on its products and has been targeted largely at computer-enthusiast and industry trade publications, cable and local television and a few national newspapers. The "Be Direct" campaign was in addition to the company's ongoing product-oriented advertising. The new brand campaign emphasized the strengths and advantages of Dell's direct-tocustomer business philosophy. The direct model, pioneered by Dell in the computer industry, enables Dell customers to have computer systems built to their specifications; a single point of accountability; award-winning service and support; and fast access to the latest relevant technology. "Our direct model is the cornerstone of the Dell brand and underlies our success," said Kevin Rollins, Dell vice chairman. "With this global campaign, we're really branding the way we do business." The print campaign featured the work of Alexander Gelman, internationally recognized art director and graphic designer. Gelman's bold colors, stark backgrounds and unambiguous graphics aesthetically reinforce the campaign's "Be Direct" message. The print ads were scheduled for appearance in a variety of national business and lifestyle magazines and newspapers.

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The introductory television ad featured a resourceful mouse that eliminates barriers to reach a piece of cheese. The campaign was developed by J. Walter Thompson of Chicago and reflects Dell's personality of directness, accountability, commitment to value and dedication to elimination of barriers and waste. The campaign includes plans for rollout in other regions of the world in the fall.

Costly Affairs:
Dell elected to choose WPP to handle $4.5bn global ad account onDec-07. Dell has consolidated its global advertising account, worth $4.5bn in billings over three years, into Sir Martin Sorrell's WPP Group sending its shares up. The world's second-largest marketing services group will set up a standalone agency within WPP -- under the project codename DaVinci -- to handle the mammoth account, which previously spanned 800 different companies. It will employ about 1,000 people. ADVERTISEMENT: The account is worth around $150m in annual income to WPP. In the US, Dell's creative duties were split between Mother in New York, which has handled consumer-directed duties, and Omnicom's DDB in Chicago, which had business-directed chores. Mark Jarvis, Dell's chief marketing officer who joined form Oracle in April 2006, said in a post on a company blog: "By combining our agencies, we can invest in the longterm, in the people and tools to unlock far greater results than a patchwork quilt. I suppose this was the first time a global client and agency have come together to redefine the 'agency' on such a scale. Dell took the decision to consolidate its global advertising account amid ferocious competition from its biggest rival HP -- which took the top spot in global sales from Dell last year (2007) -- and a desire to raise brand profile. HP has continued to take PC market share from Dell in recent quarters, in spite of an aggressive turn round effort launched by Michael Dell, founder, chairman and chief executive of Dell.

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WPP's first challenge for Dell will be supporting the computer maker's push into retail stores. In a departure from a reliance on direct sales of computers over the telephone and internet, Dell has signed sales deals with several retailers, including Wal-Mart. Recently Dell has come up with new catchy line ‘Yours is here’ with its new range of colorful notebooks and PCs; in addition to that the company has launched a new web page with the same line.

Conclusion
It has been predicted that the Indian IT sector is expected to continue on an upwards path through 2008 and beyond driven not only by continued growth in off-shoring, but also by a growing domestic market for hardware and solutions. The total size of the IT market is forecast by BMI to increase from US$11.8bn in 2007 to around US$21.7bn in 2012. Now, these predictions make sense why companies are so desperate to make a global image, because this is the time when they can position their Brand name into the mind of customers. Upcoming 4-5 years are very promising and critical for these companies. This is the time which will define the future of a company, because after this boom period a saturation and decline in industry is very much expected. Companies are playing on each front of Brand positioning whether it is electronic media or print media; indoor or outdoor; 360° Ad or a superstar selling dreams; through an event organizing or Olympics, every possible mode is being used. The scenario of Advertisement has also changed significantly, companies portraying people to talk about the company, sometimes an employee is telling about the wide spread of the company, a superstar selling dreams with the brand, playfield showcasing a brand etc.

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At the same time companies are very much thoughtful about the information they should provide or not, for ex.- Lenovo is playing with global face, not touching the heritage values of China which is the host of Olympics 2008, the target is not to woo the Chinese/domestic customer but the visitors/spectators from across the globe. The industry is also witnessing the changes in operations and strategies of global brands; like-Dell very well known brand for its customized and direct sale approach is now tied up with some retail stores including Wall Mart.

Some points or Qs for discussion:
Why the companies are required to invest so much in promotion? Does the Ad campaigns make any difference in the perception of people about the Brand? Various fronts of Advertisement and their approach. Why Lenovo shifted its head quarter to USA? Heritage distance- a need or deed. Trends in Ad making. Business process redesign of HP and Dell. Significance of punch-lines.

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There is a Need to pick a pace in Brand promotion. People don’t know about other offerings by HCL like software development. 87 The Notebook demand is growing at unbeatable rate (70%). promotional activities and to analyze consumer preference of home segment computers among various computer manufacturers .R.“ANALYSIS OF SALES AND PROMOTION OF HCL DESKTOP’S W. they only know that HCL deals in desktops. Nishant K. Findings: HCL uses aggressive promotional strategy in Ghaziabad HP. Ravish Gulati Faculty Guide : Mr.t. Internet services. facility management and high end solutions.T. gives a clear indication about the need to diversify in ranges of laptop being . Rai Objective: Primarily to identify the focus of channel partners towards HCL w. HCL should get involved in consumer market as soon as possible. HCL is not focusing much on advertising in comparison to its competitors.’ Industry Guide : Mr.r.” Student’s Name : Karun Gupta ‘HCL Infosystems Ltd. networking. CONSUMER NEEDS. laptops and servers. and is a market leader in IT products and have a close competition with Compaq and Conclusions and implications: The future implications of market suggest flawless growth in PC demand.