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Toaz - Info Project Report On Marketing Strategies of HP in India Submitted by PR
Toaz - Info Project Report On Marketing Strategies of HP in India Submitted by PR
ON
MARKETING STRATEGIES OF
HP IN INDIA
1
STUDENT’S DECLARATION
2
CERTIFICATE FROM THE GUIDE
3
TABLE OF CONTENTS
TITLE PAGE
STUDENT’S DECLARATION I
INTRODUCTION 1
ABOUT HP 2
HP FAST FACTS 3
GLOBAL CITIZENSHIP 6
MARKETING MIX 10
COMPETETIONS 23
RESEARCH METHODOLOGY 26
RECOMMENDATIONS/SUGGESTIONS 45
CONCLUSION 47
QUESTIONNAIRE 48
BIBLOGRAPHY 51
4
CHAPTER-1
INTRODUCTION
5
INTRODUCTION
About HP:
Hp is a technology company that operates in more than 170 countries around the world. It
explores how technology and services can help people and companies address their problems and
challenges, and realize their possibilities, aspirations and dreams. It applies new thinking and
ideas to create more simple, valuable and trusted experiences with technology, continuously
improving the way our customers live and work.
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MISSION
Hp’s mission is to invent technologies and services that drive business values, create social
benefit and improve the lives of customers – with a focus on affecting the greatest number of
people possible.
HP FAST FACTS
TECHNOLOGY LEADERSHIP
1. Hp’s three business group drives industry leadership in core technology areas:
2. The personal system group: business and consumers pc’s, mobiles computing devices
and workstations.
3. The imaging and printing group: inkjet, laser jet and commercial printing, printing
supplies, digital photography and entertainment.
4. The technology solutions group: business products including storage and servers, EDS,
managed services and software.
7
CONTRIBUTION
Global citizenship encompasses our commitment to align our business goals with our impact on
society and the planet. It is one of our seven corporate objectives, rooted in hp’s founding values
and key to success. For more than 70 years, global citizenship has influenced how it runs our
business, holding us to higher standards of integrity, contribution and accountability in
everything it do.
It focuses our energies and expertise in five areas:
6. Meaningful innovation
It is the technology company that invents the useful and the significant.
8
HP’S CORPORATE OBJECTIVES:
1. Customers loyalty
It earns customers respect and loyalty by consistently providing the highest quality and
value.
2. Profit
It achieves sufficient profit to finance growth, create value for our shareholders and
achieve our corporate objectives.
3. Growth
It recognizes and seized opportunities for growth that builds upon our strengths and
competencies.
4. Market leadership
It leads in the marketplace by developing and delivering useful innovative products,
services and solutions.
5. Commitment to employees
It demonstrates our commitment to employees by promoting and rewarding based on
performance and by creating a work environment that reflects our values.
6. Leadership capabilities
It develops leaders at all levels that achieve business results, exemplify our values and
lead us to grow and win.
7. Global citizenship
It fulfills our responsibilities to society by being an economic, intellectual and social asset
to each country and community where it does business.
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Global citizenship
Global citizenship helps our success because it’s important to our customers. Customers care
about HP’s efforts in areas like climate change and human rights. They also value ways it can
help them be more successful. That could mean an energy-efficient data center that cuts cost
while reducing their carbon footprint, or a centrally managed printing environment that increases
productivity and saves resources. Global citizenship also strengthens our own business in such
areas as increasing efficiency, protecting privacy and maintaining trust with our stakeholders.
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Serving enterprises;
At hp, it continually explores how technology and services can create new and better way for
people to live, work and to transform their current play. Every day it partner with our largest
customer IT environment into business assets. It recognizes that CIO’s are now business
managers who specialize in technology. It work hard to help them create more manageable IT
environments that costs less to operate their IT infrastructures, speeding access to information,
enabling faster communication between branch offices and headquarters or helping them deal
with obsolete IT equipments. HP solutions leverage our broad portfolio- from servers and storage
to software and services, imaging and printing, and personal computing technology-to help
companies drive growth, lower business risk, and cut costs.
With the volume of data today increasing faster than our abilities to capture and use it, the
industry is rapidly shifting to a model where everything can be delivered as a service. People
want instantaneous access to content and information that they care about. Meeting this
worldwide demand for information and rich digital content will require dynamic, compelling
services. The fundamental building blocks of this model will be smarter, more intelligent
networks, next generation data centers; and perhaps most importantly, software that blinds all the
disparate elements together. Over the next five years, hp will invest $20 billion in research &
development. It believes that the power to propel the industry forward and improve the ways our
customers live and work.
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Stock Performance Graph and Cumulative Total Return:
The graph below shows the cumulative total stockholder return assuming the investment of $100
on the data specified in each HP common stock, the S&P 500 index, and the S&P Information
Technology Index. (1) The comparisons in the graph below are based upon historical data and
are not indicative of, or intended to forecast, future performance of our common stock.
HP Retains Leadership
10/10 10/11 10/12 10/13 10/14 10/15
Hewlett-Packard Company 100.00 64.10 34.14 61.77 92.71 71.13
S&P 500 Index 100.00 108.08 124.51 158.33 185.66 195.3
S&P Information Technology
Index 100.00 108.76 120.42 144.39 181.5 201.82
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2013 PC Shipments (Desktop PCs + 2014PC Shipments (Desktop PCs +
Notebook PCs) Notebook PCs)
Descriptive Work
Indian IT Industry:
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IT in India over the Years:
3. India, eager to take advantage of the cheap professional labor and the opening up of one of
the world's biggest markets.
4. Adoption of Globalization and liberalization principles brought tremendous success BPO, IT,
ITES, Retail and Insurance sector, health sector, education.
5. IT sector showed the most rapid growth amongst all the sectors.
6. Today more than 500 major international companies have IT operations in Bangalore alone.
7.Intel’s Indian development center made chips for computer which are compatible with
Microsoft‘s Operating System Vista.
8. Microsoft has established one of its 3 key centers in Bangalore other two being in China and
its HQ in New York.
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MARKETING MIX
Marketing Mix
Product Place
Promotion
Price
Product is a key element in the market offering. Marketing mix planning being with formulating
to meet target customer’s need & wants. The customer will
judge the offering by three basic elements features & quality, services mix &quality & price
appropriateness.
Kotler said -A product is anything that can be offered to a market to satisfy the wants or needs of the
consumers.
Products that are marketed include physical goods, services, events, experience, persons, place,
properties, organizations, information‘s & ideas.
A firm does not sell only a product. It sells product benefits. Product is the most important variable in the
marketing mix of the firm. If the product is sound &easily acceptable to the market if it satisfies seller’s
need, consumer’s preference & is carefully fitted to the needs & desires of the customers, sales
success is assured. Hence, product is the center of all marketing policies &decisions. The marketing
planning begins with the product & also ends with the product.
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Company plans to increase their product range in the future. A brief description of some products
is as follows: -
Products Name:
i. Everyday computing
iv. Mini
i.EliteBook laptops
ii.Compaq laptops
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3. Other laptops
a) Fitted with features that appeal to your whole family and yet
flexible and reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern home
however compact the space, whatever the budget
a) Fitted with features that appeal to your whole family and yet flexible
and reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern home however
4. Monitors
i.Color Printers
a) Inkjet printers
DeskJet, Office jet, and Business Inkjet printers
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b) Color laser printers
c) Large-format printers
1. Laser printers
HP LaserJet printers for high-speed, high-volume, high-quality
Printing
7. Wireless printing
18
2. THE SECOND P = PRICE
Sales are only income for any business concern. But price is the main factor which affects the
sale of the market. If the price is high, few buyers purchase and if the price is low many buyers
purchase. Therefore a sound pricing policy must be adopted to have maximum sale revenue.
Moreover, it is only through proper pricing policy the already laid down marketing objective and
corporate goals could be achieved.
Price is the exchange value of a product or service always expressed in tem of money. In other
words, price of a product or service is what the seller feels its worth on term of money, when
offered to a buyer.
To the customer, the price is an agreement between seller & buyer concerning what each is to
receive. The buyer is interested in the price of the whole package consisting of physical product plus a
bundle of expectation and satisfaction. The consumer has numerous expectations such as after
sale service, replacement of parts, technical guidance & money other benefits.
However, to the seller, price is a source of revenue and a main determinant of profit. To the
seller, price is equivalent to the total product offering. This offering includes a brand name, a
package, product benefits, after sale service and so on. We can define price as the “ money of the product
or service agreed upon in a market transaction”.
So,
Price in money = physical product + bundle of expectations
India is a price-sensitive market. When the PC was launched in 1984, it cost well over $4,450
here, and in the late 1980s, the price was around $2,220.
While the price was around $1,100 in the mid-90s, today, a MNC brand with multimedia costs
only around $761.
The Indian market has seen local assemblers stealing a march over their domestic and
multinational computer hardware rivals.
The Indian PC industry has also witnessed the rise and fall of many a domestic brand. Prominent
players who fell out include DCM-DP, PCL, Sterling and Unicorp, though many Indian brands
including HCL today account for nearly half of the branded PC sales in the country.
The pricing adopted by HP India Pvt. Ltd. can describe under this subhead: -
Competitive pricing: - HP India Pvt. Ltd. adopted the method of pricing called competitive
pricing for their PCs. Under this policy, the price of HP PCs is fixed according to the price of
other competitor brand of the market & the price moves accordingly.
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The price list of the some IT Products of HP India Pvt. Ltd. is as follows:
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HP (Hewlett-Packard) Touch smart IQ526 Desktop $1175.00
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3. THE THIRD P – ‘PROMOTION’
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1. Sales promotion
Due to the proper attention towards the channel of intermediaries, company is not able to
give proper attention towards consumer’s promotion but they arrange whole the method of
local promotion for the awareness of the local customers. As it is they also provides
demonstration & gifts to the customers shortly by which products of the company are able
to create a spec in the customer’s mind
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2. Advertising
The modern age is an era of competition. To withstand competition manufactures have to think
of new & unfamiliar uses for their products or they have to find out new buyers for their
products. The patent medicine people were the first to prove what advertisement could do.
“Advertisement is the art of influencing human action’ the awakening for the desire to possess &
possess your product.”
“Advertisement consists of all the activities in presenting a group a non-personal, oral or visual,
openly sponsored message regarding a product, services or idea.”
At present time the chairman of HP India Pvt. Ltd. give attention to make proper distribution
channel for their products. It is the company’s policy that firstly they make proper distribution
channel for their products by which any customer either he/she will be belongs to rural area or
belongs to urban area got the product easily. After making proper distribution channels,
corporate plans to come through the media, because advertisement on media requires heavy
investment.
As far as advertisement is concerned HP India Pvt. Ltd. provides claim to their respective
stockiest of the different districts of the state for the local awareness / promotion as per required
by the stockiest of the districts.
Local promotion includes Banners, Holdings, and Cable TV. Adz Installing, Trade fairs,
sponsorships etc. for the awareness of their products to the local customers. Because of the
company doesn’t come through the media in present time i.e. why company bears all the
expanses for the local promotion as required by the distributors?
It is true, that it is not sufficient in today’s high competitive marketing scenario, but after the
attainments of the proper distribution channel company definitely come through the media which
is a powerful source of demand generation in today’s tough marketing scenario & it is definitely
provides a strong consumer pull to the new products of the HP India Pvt. Ltd.
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3. Personal selling
A salesman is one who practices the profession of selling. One can learn a lot about selling and
salesmanship just by thinking about definition of personal selling.
American marketing association defined salesmanship as ‘the process of including and assisting
a prospective buyer to buy a commodity or service or to act favorably upon an idea that has
commercial significance to the seller.’
E.F. Schumaker defined selling as ‘the process affecting the transfer, with a profit to buyer &
seller, of goods & services that gives such lasting satisfaction that the buyer is predispose to
come back to seller for more of the same.’
Personal selling refers to oral presentation in conversation or more prospective customers for the
purpose of making sales.
Personal selling involves two-way communication, “a well defined problem is half solved.” Due
to seller buyer interaction, personal selling alone can provide immediate feedback of
information, which enables salesman to understand properly the buyer’s mind, his problems, his
needs & his preferences.
As far as the HP India Pvt. Ltd. is concerned corporate plans the effective medium of personal
selling for their products. They provide full support to the salesman for selling their products.
Effective communication & facilities motivate salesman to make a good relationship with the
customers. Corporate actually knows the importance of the phenomenon of the personal selling
I.e. why they tries to implement the ‘A-I-D-A-S’ formula of personal selling. The brief
description of this formula is as follows: -
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1. THE FOURTH ‘P’ - PLACE
Marketer has to ensure the availability of its products to the target customers. If a product is not
available to the target customers at the right place, then he/she may shift to competitive products.
So place decision relates to:
(i) Channel decision – what kind of distribution channels a company adopts between plants
& consumer.
(ii) Distribution channel policy – whatever to go for extensive or selective or exclusive
distribution.
(iii)Degree of selectivity among wholesalers & retailers.
(iv) Effort to get the cooperation of the trade.
(v) Physical distribution decision includes logistics, transportation, warehousing, material
handling, bulk packaging etc.
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COMPETITORS
HCL Info systems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For
over quarter of a century, we have developed and implemented solutions for multiple market
segments, across a range of technologies in India.
The country’s number one desktop brand had yet another great year selling
4.76 lakhs units. The company targeted aggressively the B and C class cities and upped its
distribution network. The significant milestones over the last year include the launch of the low
cost Ezeebee Pride that came with an attractive price tag of Rs 12,990. It attacked all the buying
segments with low cost processors like via to industry standard P4 HT offerings. The aggression
HCL showed in pricing its product in a way kick-started the price war with brands like Acer, and
vendors like HP cutting down end-user price points. Another significant development for HCL
was its launch of the high-end home PC called Neo, complementing its Beanstalk range. Neo
was also the first desktop brand in India to come with Windows XP Media Center OS.
Meanwhile, on the Notebooks front, HCL is the exclusive distributor of Toshiba in India whose
volumes scaled to 20,000 units, compared to last year’s 11,600 units. With Toshiba aligned to
the
Higher end of the spectrum HCL was unable to tap the low and mid-end segments of the
portables. And to plug that, during the year the company made a low key launch of its own brand
of notebooks called eZeebee and Powerlite, which summed up to 3,000 units during the fiscal.
Meanwhile, the banking vertical did buy aggressively with large mandates from SBI and other
nationalized banks. From the government side, nodal agencies like Tamil Nadu’s ELCOT also
went for large-scale installations. As a result of growing demand for its offerings, the company is
in the process of expanding its Pondicherry plant.
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Acer Computer International Limited
Few IT companies offer the breadth and depth of products that Acer Group does. Leveraging the
vast collective technological resources available - Acer India (Pvt.) Ltd., was incorporated as a
wholly owned subsidiary of Acer Computer International Ltd. on 9th September 1999. Acer's
mission in India is to translate the Group's goal of making computer technology easier to use and
more affordable - to everyone in this country. With a focused customer-centric approach, Acer in
India is offering unmatched uptime for all its systems through a vast network of Service points,
innovative and user friendly functionality while continuously lowering barriers that limit the
access to the fruits of technology.
Compaq India:
The world’s largest seller of PCs entered India in 1994. Initially, the commercial segment (large
corporations, government, educational & research institutions) was its main target segment. But
with recession in the economy in mid 1990s and the consequent slashing of IT budgets of
corporate, it turned its attention to the home segment. However, it soon realized that its PCs,
although perceived well on reliability and quality, were considered too expensive. The
assemblers and Indian brands were cornering a major chunk of the market. It slashed prices of its
sub brand Presario from Rs.65, 000 to Rs.50, 000 to penetrate into the price conscious Indian
households.
At the same time, Compaq is aggressively going after corporate segment by offering a range of
products tailored around services to meet specific needs. Its merger with Digital Equipment
further strengthened its position in the high-end server market.
Wipro Limited:
Wipro intends to focus more on the lucrative services business in future. Already, services
accounts for more than half of its turnover. In contrast, the contribution of systems business
dropped from 43 per cent to 25 per cent.
It had a joint venture with Acer for marketing the Wipro-Acer brand of PCs. However, they
called it off in 1999.
Wipro has a 500-strong dealer network. It also distributes IBM PCs and Sun Microsystems.
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Research Methodology
In application of market research the research has to go through several steps or stages and these
steps are following.
Defining the problem is the most important part of the market research process, because wrong
definition misdirects research.
The type of the research to be carried out, the questions to be raised, and the sampling procedure
to be followed and the data to be collected, all depend on the current understanding of the
problem.
HP is having tough competition in the market with other players these players are assemblers and
branded. There are many factors, which influence the buyer for purchasing the PC.
A major step in the conduction of marketing research is the decision regarding the nature of
research design we are selecting for the purpose of our study.
The benefits of research design are that it evaluates client’s need in terms of results and the
analytical work on the gathered data that will convert it to useful findings for the management.
The selection of a particular design depends on the causality of the variables involved.
For the purpose of our study we intend to take up descriptive design.
They cover research designs that are intended to produce accurate descriptions of variables
relevant to the decision being faced, without demonstrating that some relationship exists between
variables.
Decision makers very often choose or are willing to accept descriptive data, which would permit
only inferences to be drawn about causation.
Here we are using cross-sectional design to produce a picture of the phenomena in which the
decision maker is interested –for example, the market shares of various firms, consumer’s brand
images and consumption, consumer perception regarding PC
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Step 2: Develop the Research Plan:
The second stage of marketing research calls for developing the most efficient plan for gathering
the needed information.
Designing a research plan calls for decisions on the data sources, Research approaches, research
instruments, sampling plan, and contact methods.
Research Approaches:
Primary data can be collected in five ways: Observation, Focus groups, Surveys, Behavioral-
data, and Experiments.
Observation research:
Fresh data can be gathered by, observing the relevant actors and settings.
Focus group research: -
A focus group is a gathering of six to ten people who are invited to spend a few hours with a
skilled moderator to discuss a product, service, organization, or other marketing entity. The
moderator needs to be objective, knowledgeable on the issue, and skilled in-group dynamics.
Participants are normally paid a small sum for attending. The meeting is typically held in
pleasant surroundings and refreshments are served.
Survey research: -
Surveys are best suited for descriptive research. Companies undertake surveys to learn about
people's knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in
the general population.
This approach best suited for project-research hence this method was adopted (survey-research)
for the project work.
Behavioral Data:
Customers leave traces of their purchasing behavior in store scanning data, catalog purchase
records, and customer data bases. Much can be learned by analyzing this data.
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Experimental research:
The most scientifically valid research is experimental research. The purpose of experimental
research is to capture cause- and-effect relationships by eliminating competing explanations of
the observed findings.
1. Data Sources: The researches can gather secondary data, primary data, or both. Secondary
data are data that were collected for another purpose and already exit some-where. Primary data
are gathered for specific purpose or for a specific research project.
When the needed data do not exist or are dated, inaccurate, incomplete, or unreliable, the
researcher will have to collect primary data. Most marketing research projects involve some
primary data collection.
Same is the case for our project as well. For the purpose of our study we have collected primary
data in the form of (1) the data’s nature and (2) its function in the ultimate interpretation and
analysis.
Types of data
1. Demographic
2. Sociological
3. Psychographic
4. Behavioral
Here we are going to analyze the opinions that how people perceive something what they believe
about it and what those believes signify. The most potent form of opinions tends to be attitudes,
which are mental sets of predispositions to act in some manner.
Here in our project we intend to analyze the opinions and attitudes of the target population by
using appropriate sample. So the data collected in our project is basically demographic and
behavioral.
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Communication approaches
In deciding on which of the several of communication means to choose, a researcher has much to
consider a simple division of communication media into two broad types: observation and
questioning. Also we will consider the matters of whether to use structure and disguise.
From the point of view of our project we have selected the questioning method of
communication with our selected respondents, and for that purpose we have drafted a
questionnaire to quantify and evaluate the customer responses.
2. Questioning
In the majority of research problems, the required information can be gained only by asking for
it. This is done mainly by interviewing, but also data maybe obtained through self-administered
questionnaires distributed by mail and other ways. As explained earlier that we have selected the
questionnaire method of data acquisition, therefore, we choose to draft the questionnaire having
closed ended questions and that will help us quantify the results in an appropriate format.
Research instruments:
Marketing researchers have a choice of two main research instruments in collecting primary
data: Questionnaires and mechanical devices.
Questionnaires:
A questionnaire consists of a set of questions presented to respondents for their answer. Because
of its flexibility, the questionnaire is by far the most common instrument used to collect primary
data. Questionnaires need to be carefully developed, tested, and debugged before they are
administered on a large scale.
In preparing a questionnaire, the professional marketing researcher carefully chooses the
questions and their form, wording, and sequence. The form of the question asked can influence
the response. Marketing researchers distinguish
between closed-end and open-end questions. Closed-end questions-prespecify all the possible
answer. Open end-questions provide answers that are easier to interpret and tabulate. Open-end
questions often reveal more because they do not constrain respondents, answers.
Finally, the questionnaire designer should exercise care in the wordings and sequencing of
questions. The questionnaire should use simple, direct, unbiased wording and should be
protested with a sample of respondents before it is used. The lead question should attempt to
create interest.
3. Mechanical instruments:
Mechanical devices are occasionally used in marketing research. One example is of
Galvanometers used to measure the interest or emotions aroused by exposure to a specific and or
picture.
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QUESTIONNAIRE DESIGN
From basic aspects of measurement and meaning, we proceed to their application in designing
the instruments for seeking and recording data. Data may be obtained by either observing or
asking for them, and forms are needed for field use in observation and interviewing. The
accuracy and relevancy of the data gathered depend heavily on the questionnaire.
FUNCTIONS OF QUESTIONNAIRES
A questionnaire is simply a formalized schedule to obtain and record specified and relevant
information with tolerable accuracy and completeness. In other words, it directs the questioning
process and promotes clear and proper recording.
We, in our questionnaire have tired to evaluate buying pattern of our customer. Now, for major
the consumer behavior we first, define what consumer behavior means is.
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CONSUMER BEHAVIOUR
CONSUMER BEHAVIOR- BASIC STRATEGY
It is a matter of wonder that why people behave the way they actually do in the market place. At
times we are mystified by our own acts being unable to rationalize them. Innumerable questions
constantly agitate the mind. For example, do advertisements lure us into buying the products
advertised? Why people buy impulsively on some occasions, but in other instances act as careful
shoppers?
These questions and such other questions infact are of equal importance to the marketer. For
example, if a marketer can unravel the consumer behavior –what do they buy, how do they buy
and so on – he can orient his strategy around these answers. Such a marketer can acquire, serve,
and retain the customers for life.
Knowing the customer thus is very important. A study of consumer behavior, though not
guaranteeing 100% success in the market place, raises the possibility of success. By studying the
potential customer, marketer gains insight into the attitudes, interests, lifestyles, etc. of the target
segment. It will help, for example a marketer to understand how westernized portrayal of women
will be acceptable to the customers in say, a cosmetic advertisement. Thus, broadly speaking,
consumer behavior study aims at identifying groups of consumers with similar life styles who are
likely to behave in a similar manner when some product related news is communicated to them.
Then a marketer can adopt effective strategies to reach them, and make an offer.
When a prospective customer receives a marketing cue (product, price, promotion, and
placement related) he undergoes a process of decision making. This decision making is
conditioned by a variety of factors like personal, interpersonal, and non-personal factors. If the
impact of these factors is positive, then the customer can decide to purchase else a purchase may
not take place.
The consumer decision-making model is an appropriate tool this time to present the real
conditions in which the consumer decides to purchase. The all circumstances he goes through.
This model represents that upon receiving a marketing stimulus a customer processes through the
phenomenon of perception, learning, motivation, attitudinal disposition, etc.
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CONSUMER DECISION MAKING MODEL
Target Customer
FEED BACK
This task being accomplished, the next job for the advertiser is to create awareness (perception)
about the advertised brand. But the mere awareness about the product is not enough. In order
evaluate the alternative choice, and the settle on one, a customer needs enough information about
the brand : learning has to take place. This learning may induce a person to purchase a brand if
he is motivated. The moment information processing starts, perception, learning, and motivation
occurs.
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CONSUMER PRCEPTION PROCESS
E Physical Data
Physiological
V Screen
Sponsored Non-awareness
-Sight
A -Hearing
Advertisement
-Taste
L Sales
U Cognition
Promotion
A Displays
T Psychological
Price Tags screen Perception
I Personality Memory
Non-Sponsored Self concept
O Media News
Conversation
With
Others
Thus the first task of the marketer is to make a customer aware (perceive) the existence of his
offer. Subsequently, the customer learns more about it, forms a positive attitude towards it, feels
motivated to but it, and finally may land up purchasing it if other determining factors do not
dictate his choice in some other direction.
There are many small and big reasons, which directly or indirectly affect the buying behavior of
the customer. The same effort has been done by me also to know the customers behavior
regarding the personal computers. The behavior which I have observed during summer period
and have taken a responsibility to know more is really a factor which directly affect the sales of
the computers.
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RESEARCH PROCESS
1. Sampling Unit : Who is to be surveyed? The marketing researcher must define the target
population that will be sampled. The target population for our survey was everyone aged
between 18 to 50 years belonging to socio economy class middle, lower, middle upper
and upper class. Our sampling frame was Delhi.
2. Sample Size: How many people should be surveyed? Large samples give more reliable
results than small samples. However, it is not necessary to sample the entire target
population or even a substantial portion to achieve reliable results. A total of 75
interviews were conducted in Delhi region in different locations.
3. Sampling Procedure: How should the respondents be chosen ? To obtain a
representative sample of the population, a probability sample of the population should be
drawn. Probability sampling allows the calculation of confident limits for sampling error.
Three types of probability sampling are described in following table, part A. When the
cost or time involved in probability sampling is too high, marketing researchers will take
Non- probability sampling. Some marketing researchers feel that non- probability
samples are very useful in many circumstances, even though they do not allow sampling
error to be measured.
Convenience Sample: The researcher selects the most accessible population member.
Judgment Sample: The researcher selects population members who are good prospects for
accurate information.
Quota Sample: The researcher finds and interviews a prescribed number of people in each of
several categories.
I have conducted the convenient sampling in different areas in Delhi and NCR region.
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Data Source:
To meet with consumers and asked to fill structured questionnaire and no secondary data was
collected.
Personal interviewing is the most versatile method. The interviewer can ask more questions and
record additional observations about the respondent, such as dress and body language. Personal
interviewing takes two forms. In arranged interviews, respondents are contacted for an
appointment.
Intercept interviews involve stopping people at a shopping mall or busy street corner and
requesting an interview.
The data collection phase of marketing research is generally the most expensive and most prone
to error. The information collected should be both accurate and relevant as per as the
requirements of research project. Depending on the requirement, the researchers has to work out
a suitable data collection method. Broadly data collection method can be classified into,
(A) Primary Methods: When data is directly collected by a researcher, they are known as
primary methods e.g. interviews and questionnaires.
(B) Secondary Methods: The data are termed secondary data when they were not originally
collected for use in the research project under consideration, they were collected rather for
use by some other person or for some other project.
The next step in the marketing research process is to extract findings from the collected data. The
researcher tabulates the data and develops frequency distributions. Averages and measures of
dispersion are computed for the major variables. The researcher will also apply some advanced
statistical techniques and decision models in the hope of discovering additional findings.
As a last step of market research process, Results (finding) are extracted from the analysis of
information and are presented to the related party. The researcher should present major findings
that are relevant to the major marketing decisions facing management. The findings should be
written in a concise, simple and objective orientated language.
For the purpose of our project, the analyses were conducted on the basis of following conditions.
As we earlier suggested that we are going to categorize the scores into various intervals. Now as
we have attached scores to all the parameters according to their importance.
38
LIMITATIONS OF THE STUDY
The study is bond to come with some limitations and constraint, which made the efficiency of
the same and to some extent deviates it from its main line of thought.
Though no stone was left unturned to make the study more precise, accurate and relevant to the
objective, yet there are some limitations and general problems, which are not worthy to make
study meaningful.
TIME:
Due to the constraints, sampling was done and thus the final result could not be taken the final
result could not be taken for granted and are subjected to fluctuations.
Analysis is based on the responses, which I got from the different respondents. Each question has
its own outcome and my result based onthese outcomes.The analysis of the questionnaires is
given belew
39
1. Comparison between Branded & Assembled
50% 50%
It has been found that branded PC has equal market with assembler PC. But, in previous years
assembler were dominating the Indian PC market. But due to cutting the price by companies
branded PC has been growing in the market. I have also observed that companies highly
indulged with the promotional activities as well as advertising to take grip on the market.
Companies have tie up with different banks to provide easy finance schemes. Consumers are
going for finance schemes to purchase the computers.
40
2. If we consider only branded players then the most preferable PC’s are as follows.
4%
4% 8%
32%
12%
8%
32%
HP and Compaq is the most preferable PC used by the consumers. Both the brands are having a
good image in the market. IBM is having 4% market share but IBM is good brand but due to its
high prices it’s not more preferable by the Indian consumers.
HP and Compaq both is having 32% shares in branded PC market. After that comes zenith with
12% market. Zenith is also preferred by consumers because of its low price than others. PCS and
LG also having 8% share in the market. There are also many players in branded segment like
Wipro, dell etc. are having 4% share.
41
3. Factors, which are taken into consideration while purchasing the PC.
180
160
140
120
100
Series 1
80 Series 2
60
40
20
0
COST QUALITY SERVICE SUPPORT BRAND DISCOUNT
Taking all the factors combined & assigning them some value according to their rank is
preference it has been observed that cost and quality play equal roles whereas support comes
next followed by serviceability. Brand comes on second last and finally comes discount.
Study shows that while selecting a product for purchase cost plays the vital role in the Indian
minds. Next factor that comes is quality followed by brand image. Discount also play role for
purchasing the computer.
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4. Measure the need of the PC either for personal or official use.
Indian consumers mainly purchase the computer for personal use. 80% consumer use the
computer for personal use and rest of the use for official use.
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5. Measure how do customer purchase the PC
100%
80%
60%
40%
20%
0%
FINANCE CASH
It has been found that 90% consumer purchase the PC through cash and rest through the finance
options. Consumers mainly opted for finance schemes but due to more documentation and
hidden costs either they purchased the PC through case or they leave it for future.
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6. Finance Purchase given by PC vendors
30%
25%
20%
Finance Purchase given by PC
15% vendors
10%
5%
0%
HP COMPAQ ASSEMBL… OTHERS
HP gives the 30% finance purchase of total finance purchase HP is providing the many finance
schemes for consumer. HP has tie up with U.B.I., ICICI and B.A.F.L. and providing the better
opportunity of finance to the consumers. And 30% finance purchase goes to assemblers but it is
mainly the self- finance by the consumers. And 20% finance goes to Compaq. Rest to others.
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7. MEASURE HOW DO CONSUMERS COME TO KNOW ABOUT PARTICULAR PC
Consumers come to know about the PC through advertisements and after through relatives and
friends, branded companies are mainly indulging with advertisements. For example HP’S 499
get the PC in just 499 RS. These are advertisements conducted by the HP. Relatives and friends
of the consumers also take the main part for choosing the PC . Sales promotion and sales
executive comes in last.
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8. MEASURE WHICH BRAND IS THE BEST BRAND IN THE CONSUMER MIND.
40%
30%
20%
BEST BRAND OPTED BY
10% CONSUMERS
0%
DELL 32% 2
Compaq 12% 3
IBM 10% 4
OTHERS 2% 5
HP is the best brand according to consumers in the Delhi region. It is in top because of its lower
price among good brands and its better quality. Compaq is on the third position because of its
quality and brand name. Compaq is the big competitor of HP.
DELL comes on second position because of its brand name and its customization of the product
according to the consumer need. IBM comes after DELL.
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9. MEASURE THE POST PURCHASE PROBLEM IN THE PC
HP
COMPAQ
ASSEMBLING
PCS
LG
ZENTH
OTHERS
Compaq has less post purchase problems than others . HP is having 12% post purchase problems
n the PC. Assembled computers has 16% post purchase problem and PCS has highest purchase
problems in the PC.
20% consumers say that HP is excellent in performance, 60% consumers says that HP is very
good in performance and 20% thinks that its good in performance.
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10. MEASURE THE PERFORMANCE OF PC
HP PERFORMANCE MEASURE BY
CONSUMERS
70%
60%
50%
40%
30%
20%
10%
0%
EXCELLENT V.GOOD GOOD FAIR
20% consumer say that HP is excellent in performance, 60% consumers says that HP is very
good in performance and 20% think that its good in performance.
DELL PERFORMACE
DELL PERFORMANCE
70%
60%
50%
40%
30%
20%
10%
0%
EXCELLENT V.GOOD GOOD FAIR
DELL PERFORMANCE
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Chapter 5: SUGGESTION
1. Perception about HP’S after sales service and technology has to be changed because HP is
way behind in it compared to its competitors.
2. More awareness should be created regarding the various services offer by HP.
4. Perceived corporate image of HP is not very good so an effort has to be made to improve it.
5. They should pay proper attention towards checking of various components of PC before end
user delivery. Otherwise it tends towards defame of brand name in comparison to rivals.
6. Need to expend customer care center as the consumer base of HP Ezeebee is increasing with
tremendously fast pace.
7. Proper attention should be paid for advertisement planning otherwise it may lead to problem
for dealer as well as for company
.
8. Company should tie up with some event management company to organize various
promotional activities like canopy, carnival.
9. Company should make policy for fixed end user price for all dealers so that fair game will be
played& dealer would not to compromise on their margin.
10. Company should tie up with good banks by which company can provide easy finance
schemes to the consumers because every consumer search for easy available finance scheme.
12. Company should give the service of customization of product to the consumers.
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FINDINGS OF THE STUDY
MAJOR FINDINGS
Any survey conducted in the market places flashes back hidden truths and basic facts, which
affects the business of company directly or indirectly. Which are the out coming of the research,
are known as the findings.
The information gathered from the market, which are accountable in the achievement of the
objective and for the company, which makes the project report more interesting, are basically
known findings.
1. HP is market leader in PC market but have very close competition with Compaq .
2. Most people thinks that HP only deals in desktop PC’S and servers where as only few
thinks that HP also provides facility of software development, networking, internet
services, facility management and high end solutions.
3. Most people think that HP is typically hardware firm having no relation with software.
4. Compaq and HP are two companies that are at top of mind in consumers mind.
5. Cost, quality and service are two major factors that are taken into consideration while
purchasing the PC. HP is excellent in all factors.
7. Cost wise HP is at third number after LG and zenith enjoy 1 and 2 position respectively.
8. Corporate image of HP is not so good. It holds third rank in this category while IBM &
Compaq are number 1 &2 respectively.
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CONCLUSION
The most interesting and crucial phase of any research is the presenting of findings and this
project is no exception. After concluding with the project I am in a position to present the
following:
HP Info systems Ltd is one of the pioneers in the Indian IT market, with its origin in 1976, for
over quarter of a century, they have developed and implemented solutions for multiple market
segments, across a range of technologies in India.
Undoubtedly HP INFOSYSTEMS was leader in after sales services but now the company is
lacking in this field. Company is having good quality product with low price but it’s lacking in
technology. Company should change its technology. But HP is most preferable brand in India
then others.
Now for our own personal experience this project was a real rewarding experience for us and
helped us gain insights into the ways marketing research works. The survey let us know the
functioning of the survey reports and their preparation. We are really indebted to our faculty to
have provided us with this opportunity.
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QUESTIONNAIRE
RESPONDENT INFORMATION
Name :
Age : Mob:
Yes ( ) No ( )
If yes
Branded ( ) Assembled ( )
1. HP ( ) 2. COMPAQ ( ) 3. IBM ( ) 4. LG ( )
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Q5. How did you purchase your PC?
Cash purchase ( ) Finance schemes ( )
Sales Promotions ( )
1. HP ( ) 2. Compaq ( ) 3. IBM ( ) 4. LG ( )
Yes ( ) No ( )
1. 1-5% ( )
2. 6-10% ( )
3. 11-15 ( )
4. Above than 15% ( )
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BIBLOGRAPHY
WEBSITES ;
1. www.indiainfoline.com
2. www.wikipedia.com
3. www.computerworld.com
4. www.hpinfosystem.com
BOOKS REFEREDE;
1. Kothari, CR. Marketing Research, 3rd edition, 1997, vikas Publishing House Pvt. Ltd,
New Delhi.
2. Kotler , Philip , Marketing Management
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