A PROJECT REPORT ON

“MARKETING STRATERGY OF HEWLETT PACKARD (HP)”

Submitted in Partial Fulfillment of the award of the Degree of

Bachelor of Business Administration (BBA)
2016-2019

Under the Guidance of: Submitted by:

MRS KOMAL GANGI RASHI MEHTA

Enrollment no. 44821301716

TECNIA INSTITUTE OF ADVANCED STUDIES

Affiliated to Guru Gobind Singh Indraprastha University, Delhi
Madhuban Chowk, Rohini

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 STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled “Marketing Strategy Of HP”

under the guidance of Mrs Komal Gangi in partial fulfillment of the requirement for the award of

Degree of Bachelor of Business Administration at Tecnia Institute of Advance Studies. This is

an original piece of work & I have not submitted it elsewhere.

Signature :

NAME : Rashi Mehta

Enrollment No : 44821301716

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 CERTIFICATE

This is to certify that summer project titled “Marketing Strategy Of HP” is an

academic work done by “Rashi Mehta” submitted in the partial fulfillment for the
award of the degree of Bachelor of Business Administration at Tecnia Institute of
Advance Studies , under my guidance and direction.

Mrs Komal Gangi

(Project Guide)

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 ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my guide and
mentor Mrs Komal Gangi, for her valuable guidance and the confidence she instilled in me, that
helped me in the successful completion of this project report. Without her help, this project
would have been a distant affair.

Her thorough understanding of the subject and professional guidance was indeed of immense
help to me.

I am also greatly thankful to the faculty members of our institute who co-operated with me and
gave me their valuable time.

RASHI MEHTA

BBA SEMESTER-III

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 TABLE OF CONTENTS

 INTRODUCTION 6-16

 ABOUT HP

 HP FAST FACTS

 HP’S SHARED VALUES

 GLOBAL CITIZENSHIP

 RSEARCH METHODOLOGY& OBJECTIVES 17-19

 DATA ANALYSIS 20-47

 FINDINGS AND OBSERVATION48

 CONCLUSION 49

 SUGGESTIONS &RECOMMENDATIONS50

 BIBLOGRAPHY 51

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 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.

No other company offers as complete a technology product portfolio as HP. It provides

infrastructure and business offerings that span from handheld devices to some of the world's
most powerful supercomputer installations. It offers consumers a wide range of products and
services from digital photography to digital entertainment and from computing to home printing.
This comprehensive portfolio helps us match the right products, services and solutions to our
customers' specific needs.

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FOUNDERS :

Mission:

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HP's mission is to invent technologies and services that drive business value, create social benefit
and improve the lives of customers — with a focus on affecting the greatest number of people
possible.

HP Fast Facts:

1. HP was founded in 1939.

2. Corporate headquarters are in Palo Alto, California.
3. Dion Weisler is the President and CEO
4. HP is among the world's largest IT companies, with revenue totaling $138.854 billion
(2015)
5. HP has approximately 315,000 employees (Q2, 2015)worldwide.

Technology Leadership:

1. HP's three business groups drive industry leadership in core technology areas:
2. The Personal Systems Group: business and consumer PCs, mobile computing devices and
workstations
3. The Imaging and Printing Group: inkjet, LaserJet 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

Contribution

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Global citizenship encompasses our commitment to align our business goals with our impacts on
society and the planet. It is one of our seven corporate objectives, rooted in HP’s founding values
and key to our success. For more than 70 years, global citizenship has influenced how itruns 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:

1. Ethics and compliance
2. Human rights and labor practices
3. Environmental sustainability
4. Privacy
5. Social investment

HP’s Shared Values:

1. Passion for customers: -it put our customers first in everything it does.
2. Trust and respect for individuals: - It work together to create a culture of inclusion built
on trust, respect and dignity for all.
3. Achievement and contribution: - It strives for excellence in all It does; each person's
contribution is critical to our success.
4. Results through teamwork: -It effectively collaborates, always looking for more efficient
ways to serve our customers.
5. Speed and agility: - It is resourceful and adaptable, and we achieve results faster than our
competitors.
6. Meaningful innovation: - It is the technology company that invents the useful and the
significant.

H.P.’s Corporate Objectives

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1. Customer loyalty: -
It earns customer respect and loyalty by consistently providing the highest quality and
value.

2. Profit: -
Itachieves sufficient profit to finance growth, create value for ourshareholders and
achieve our corporate objectives.

3. Growth: -
It recognizes and seizes opportunities for growth that builds upon ourstrengths and
competencies.

4. Market leadership: -
It lead in the marketplace by developing and delivering useful and
Innovative products, services and solutions.

5. Commitment to employees: -
It demonstrates our commitment to employees by promoting and rewardingbased on
performance and by creating a work environment that reflects ourvalues.

6. Leadership capability: -
It develops leaders at all levels that achieve business results, exemplify ourvalues and
lead us to grow and win.

7. Global citizenship: -
It fulfills our responsibility 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 is HP’s commitment to hold ourselves to a higher standard of integrity,

transparency, and accountability. The values that have been present since HP was founded in
1939 remain integral to our work today, helping us balance our business goals with our impact
on society and the planet. It has five global citizenship priority areas: ethics and compliance,
environmental sustainability, human rights and labor practices, privacy, and social investment.

Its efforts in these areas help differentiate HP, reduce costs, and drive innovation as they respond
to growing market opportunities and stakeholder expectations.
They continue to focus on enriching people and communities around the world, striving to be a
force for positive and lasting change. At HP, practicing good global citizenship includes
supporting human and labor rights, making strategic social investments—particularly to advance
student achievement and entrepreneur success, and protecting the privacy of customer and
employee information.

How does global citizenship contribute to HP’s success?

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 costs
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.

Serving Enterprises:
At HP, It continually explores how technology and services can create new and better ways for
people to live, work, and play. Every day, it partner with our largest customers to transform their
current IT environments into business assets. It recognizes that CIOs are now business managers
who specialize in technology. It work hard to help them create more manageable IT
environments that cost less to operate and deliver more value to the business. That can mean
consolidating their IT infrastructures, speeding access to information, enabling faster
communication between branch offices and headquarters, or helping them deal with obsolete IT

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equipment. 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.

Driving Technology Transformation:

With the volume of data today increasing faster than our ability 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 binds all the disparate
elements together. Over the next five years, HP will invest almost $20 billion in R&D around
three technology areas It believe have the power to propel the industry forward and improve the
way our customers live and work.

Stock Performance Graph and Cumulative Total Return:

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The graph below shows the cumulative total stockholder return assuming the investment of $100
at the market close on October 31, 2010 (and the reinvestment of dividends thereafter) in each of
HP common stock, the S&P 500 Index, and the S&P Information Technology Index. The
comparisons in the graph below are based on historical data and are not indicative of, or intended
to forecast, future performance of our common stock.

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HP Retains Leadership:

Top 6 vendors by number of units shipped, 2015

Rank Manufacturer Gartner[1]

1 HP 19.8 %

2 Dell 18.2 %

3 Lenovo 13.6 %

4 Asus 7.3 %

5 Apple 7.2 %

6 Acer 7.0 %

Indian Industry:

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Information technology in India is an industry consisting of two major components: IT
services and business process outsourcing (BPO). The sector has increased its contribution to
India's GDP from 1.2% in 1998 to 7.5% in 2012. [1] According to NASSCOM, the sector aggregated
revenues of US$147 billion in 2015, where export revenue stood at US$99 billion and domestic
at US$48 billion, growing by over 13%.[1] India's prime minister Narendra Modi has started 'Digital
India' project to give IT a secured position inside & outside India.

LIMITATIONS

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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.

• The data of the research was secondary in nature and access to primary data was not to be
employed.
• There was also a time constraint as much more time was required in order to research
more deeply about the topic.

• Any error in the secondary sources would have got replicated in the project report also.

RESEARCH METHODOLOGY
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The research has been done is such a manner that the review contains specifications, collation of
collected data, analysis and interpretation of results and logical presentation of information. The
research methods include sourcing knowledge from both formal and informal channels. Several
journals, social blogs, review articles and research papers on the selected topic have been studied
in depth to complete this report.

Purpose of the study

The basic purpose is to gain an understanding about the working of the company so as to extract
vital information about its functioning.

Objectives of the Study

The primary objective of this literature analysis is to study about the HP in order to understand
what it takes to turn an idea into a successful venture and develop knowledge about its business
strategies. By conducting this independent research project that summarizes the ideas and
analytic frameworks underlying the working of HP’s operations, I aim to create awareness on
what it takes to sustain a business which is based more on ‘execution’ rather than ‘innovation’.
Readers would gain a deeper understanding of HP’s business Specifically, the objectives of the
study are:

 To study the four P’s of HP.

 To study about the competitor and environmental analysis.
 To provide a SWOT analysis framework of identify the company.
 To study the challenges faced by HP

Research Methodology

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It is a way to systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. In it we study the various steps that are
generally adopted by a researcher in studying his problem along with the logic behind them.
It is necessary for the researcher to know not only the research methods or techniques but
also the methodology.

Research design

My research is Descriptive in nature.

Descriptive research, also known as statistical research, describes data and

characteristics about e.g.: how/when/why the characteristics occurred, which is done
under analytic research

Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, Descriptive research cannot be used to create a
causal relationship, where one variable affects another

The description is used for frequencies, averages and other statistical calculations. Often
the best approach, prior to writing descriptive research, is to conduct a survey
investigation.

Data Source

The data can be collected from Primary or Secondary Sources. I have collected most of
the data for this project on HP from the secondary sources
Like websites and books.
Secondary data is the data that have been collected by and readily available from other
sources. Such data are cheaper and more quickly obtainable than the primary data and
also may be available when primary data cannot be obtained at all.

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My research study is based on secondary data source.

DATA ANALYSIS

OBJECTIVE 1 : To study the four P’s of HP :

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Four P’s of HP:

MARKETING MIX

1. The First P—‘PRODUCT’ :

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 says that ‘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 is not selling a product. It sells only the ‘product benefit’. Product is most important
variable in the marketing mix of the firm. If the product is sound & easily acceptable to the
market if it satisfies reseller’s need & consumer 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.

Company plans to increase their product range in the future. A brief description of some products
is as follows: -

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Products Name:

1. Laptops, Notebook Computers & Tablet PCs

i.Everyday computing
Laptops for movies, music, photos and multitasking in your home or home
office

ii. Performance & entertainment

Laptops for cutting-edge entertainment and

gaming

iii. Ultra – portable

Laptop computers or tablet PCs for on-the-go personal productivity and connectivity

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2. Laptops for Business

HP ProBook 440 G2 (L9V62PP)

Best in class, packed with features and functionality

HP SPECTRE

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It is hp’s thinnest laptop launched in 2016

3. Monitors

i. Home & Home Office monitors

ii. Business Monitors

4. Options & Accessories

Keyboards, mice, memory, storage, speakers, headsets, webcams,

cables, gaming and other accessories for desktop computers.
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 i. Home & Home Office desktop accessories
ii. Business desktop accessories
iii. Extended service plans for Home & Home Office

5. Laser Printers, Inkjet Printers and Multifunction Printers

i. Color Printers
a) Inkjet printers
Desk Jet, Office jet, and Business Inkjet printers

I. Home inkjet printers

II. Business inkjet printers

a)Color laser printers

Color laser printers with HP LaserJet performance
1.Home colour lasers
2.Business colour laser
b)Large-format printers

HP Design jet, Design jet Commercial and Scitex printers;

HP Indigo presses
1.Design jet printers
2.Other graphic arts products

b) Black & White Printers

1. Laser printers

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HP LaserJet printers for high-speed, high-volume, high-quality
Printing
1.Home laser printers
2.Business laser printers

6. Wireless printing

Enjoy the freedom to print from anywhere with HP's line of wireless
printers. Wireless allows greater mobility, no wires and shared printing.
Many HP printers have wireless printing built into the printer and HP
offers an add-on to your existing printer.
Live Wirelessly. Print Wirelessly.

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

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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

The Price Factor of PCs

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, Usha, 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.

The price list of the some IT Products of HP India Pvt. Ltd. is as follows: -

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 1

HP Pavilion 15-E002AU E4X37PA

 AMD, 1.5 GHz
 DDR3, 8GB, HDD, 1TB
 15.6 inches, Windows 8

Rs 22,000

HP Pavilion 15-ab220tx
 Core i5, 2.2 GHz
 DDR3L SDRAM, 8GB, HDD, 1TB
 15.6 inches, Windows 10 Home 64

Rs 50,899 –

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 HP Envy 15-J120TX F7P49PA
 Core i5, Core i3, 2.5 GHz
 DDR3, 8GB, 4GB, HDD, 1TB
 15.6 inches, Windows 8.1

Rs 34,990 -

HP Pavilion 15-B003TU C7D81PA

 Pentium Dual Core, 1.5 GHz
 DDR3, 2GB, HDD, 500GB
 15.6 inches

Rs 25,110

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HP DeskJet 1112 Single Function Inkjet Printer

from Rs. 1,672

HP Laserjet M1005 Multifunction Printer

fromRs. 12,899

HP Laserjet M1136 Multifunction Printer

fromRs. 9,979

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HP Laserjet 1020 Plus Laser Printer
fromRs. 7,900

3.THE THIRD P – ‘PROMOTION’

Promotion is the process of making communication involving information,

persuasion and influence. Promotion has three specific purposes. It communicates marketing
information to the customers, users & retailers. Promotion persuades and convinces the buyer &
enters into this consumer behavior. Promotional efforts act as powerful tools of competition
providing of cutting edge of its entire marketing programmed. Promotion has been defined as
“the coordinated self initiated effort to establish channel of information & persuasion to facilitate
or faster the sale of goods or services, or the acceptance of ideas of points of view.” It is a non-
price competition.

Broadly speaking, promotion means to push forward or to advance ideas in such a way as to gain
its acceptance & approval. It is an effort by the marketer to inform and persuade buyer to accept,
resell, recommend, or use the article, services or ideas, which is being promoted. The
promotional activity always attempts to affect knowledge, attitude, preferences & behavior of
recipient, i.e. buyers. The element of persuasion to accept ideas, products, services etc., is the
heart of promotion.

You may have the best product, package & so on. It may have a fair price. But people will not
buy your products, if they have never heard of it, and they are simply unaware of its existence.

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The market must communicate to his prospective buyer & provide them adequate information in
a persuasive language. People must know that the right product is available at the right place &at
the right price. This is the job of promotion in marketing. In essence, promotion is the spark plug
in our marketing mix. It is said that:-
“Nothing until somebody promotes something”

Promotion can create & stimulate demand, capture demand from rivals and maintain the demand
of your products even against keen competition. It is true that nothing can be sold & nothing can
make money (except mint) without means of promotion

The communication & promotion mix includes four ingredients viz.

1. Sales promotion.
2. Advertising.
3. Publicity.
4. Personal selling.

1. Sales promotion

Sales promotion is an important instrument in marketing to lubricate the marketing efforts.

Today, sales promotion is a necessity & not a luxury. It is not expenditure, it is an investment,
which can pay a rich dividends. It is an integral part of marketing effort.
“In a specific sense, sales promotion includes those sales activities that supplement both personal
selling & advertising & coordinated them and help to make them effective such as displays,
shows and expositions, demonstration and other nonrecurring selling effort not in a ordinary
routine. Sales promotion aims at stimulating the purchasing at the point of sales & dealer’s
effectiveness at the retail channel of distribution

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Sales promotion with the reference of HP India Pvt. Ltd.
Company plans to follow two kinds of promotional tool for their products. They are: -
(a) Dealers promotion
(b) Customers promotion

(a) Dealers promotion

To make a proper channel of distribution & to increase the market share of the company,
corporate plans to promote their dealer or retailers through the various promotional strategies.
Under which they provide a price off, a straight discount off the list price. The offer encourages
retailers as well as distributors to buy a quantity or carry a new item.
As it is company provide allowances to the distributors for the carrying out of the company’s
brand. An advertising allowance compensates retailers for advertising the company’s products.
Company also provides free goods to the distributors as the offer for taking up extra goods or for
carrying new products. In the extra company plans to organize the industrial associations in the
form of trade fairs & conventions o stimulate the sale result of their intermediaries.

(c) Customers 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.”

3.Advertising with the reference of HP India Pvt. Ltd.

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

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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,
Sponsorship 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. whycompany 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
attainment 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.

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.Schumakerdefined 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.

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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.

Personal selling with the reference of HP India Pvt. Ltd.

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: -

A: - Attention – The ‘Attention’ of the customer.

I: - Interest -- Create an ‘Interest’.
D: - Desire -- Ignite the ‘Desire’ of the customer.
A: - Action -- Gaining an order.
S: - Satisfaction – Customer ‘Satisfaction’.

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4.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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Meaning of channels of Distribution

Goods produced by the manufacturers must come to the knowledge of the ultimate consumers.
This is arranging by the sales promotion activities like salesmanship & advertising. By mere
knowledge, the prospective consumers are not happy. The products must reach their hands for
actual use. Channels of distribution are paths through which products move from the point of
production to the point of consumption. Distribution channels are also called Trade channels.

Distribution Channels of HP India Pvt. Ltd. State

Eastern Central Western

Distributors Distributors Distributors

Retailers Retailers Retailers

Customers Customers Customers

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OBJECTIVE 2 : To study about the competitor and environmental analysis:

The Competitors :

HCL Info systems:

HCL Infosystems Ltd. is India’s Premier Distribution and IT Services and Solutions Company.
HCL Infosystems’ has one of the largest sales & distribution network in the country and provides
value added distribution for partners including last mile connect and support in marketing and
promotions for Telecom, IT , Office Automation and Consumer Electronics products covering
more than 15000 towns across 664 districts in India. Our distribution business has an
unparalleled network that reaches more than 100,000 retail outlets, over 800 Direct and Micro
Distributors and over 12400 Channel Partners across India.
 
In the services space the Company has robust services offerings such as a comprehensive
portfolio of Infrastructure Managed Services, Enterprise Application Services, System
Integration Services, Office Automation Services, Managed Print Services, Life Cycle Services
and After-Sales Support Services. HCL Learning, the Company’s learning solutions business,
serves the entire spectrum of education and training requirements across schools colleges,
individuals and enterprises and offers Digital Content & Learning Solutions.

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 it's systems through a vast network of Service points,

38
innovative and user friendly functionality while continuously lowering barriers that limit the
access to the fruits of technology.

IBM:
The acquisition of IBM’s PC division by Lenovo in December 2004 was probably a shocking
and unexpected development in the global PC industry. Lenovo took over IBM’s personal
computing division and in the bargain became the third largest computer company in the world.
Revenue: $81.8 billion 
Net income: $13.2 billion 
Total assets: $ 110.5 billion

Dell India:

Dell Inc. (stylized as DELL) was an American privately owned multinational computer

technology company based in Round Rock, Texas, United States, that developed, sold, repaired,
and supported computers and related products and services. Eponymously named after its
founder, Michael Dell, the company was one of the largest technological corporations in the
world, employing more than 103,300 people worldwide.

Dell sold personal computers (PCs), servers, data storage devices, network switches, software,

computer peripherals, HDTVs, cameras, printers, MP3 players, and electronics built by other
manufacturers. The company was well known for its innovations in supply chain
management and electronic commerce, particularly its direct-sales model and its "build-to-order"
or "configure to order" approach to manufacturing—delivering individual PCs configured to
customer specifications. Dell was a pure hardware vendor for much of its existence, but with the
acquisition in 2009 of Perot Systems, Dell entered the market for IT services. The company has
since made additional acquisitions in storage and networking systems, with the aim of expanding
their portfolio from offering computers only to delivering complete solutions for enterprise
customers.

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PESTEL Analysis :

Political:  The political analysis of HP pertaining to government controls and rules in the effort
of HP to keep up with the Environmental and CSR (Corporate Social Responsibility) Codes and in
terms of decency, quality and environmental concerns.

Economical:  HP mainly relies on revenue from its printing hardware, financial investments,
investments in small and medium enterprises and internet solutions for its maintenance.

Social:  HP has the local US consumer base well captured but it seems that there is very little to
be done here in terms of attracting the upcoming young generation of IT zealot and unless
there is a stress upon updating the models of its hardware for printing and PC’s to catch up with
the hype created by HP and Intel who unveil new models almost every other month.

Technological:  HP went “cyber” almost a decade ago, which is fairly recent in comparison to its
70 year long market presence (HP, 2009). In fact the turning point of HP’s luck came in 1998
when HP’s corporate software and support division and corporate systems division was
amalgamated and Ann Livermore took over to run this new Enterprise Computing Solutions
Organisation (ECSO), with an investment of $15 billion and an employee base of 44,000
employees (Moore and Snyder, 2000).

Environmental:  HP’s operations are subject to regulations under federal, state, local and
foreign laws concerning the environment, including laws addressing the discharge of pollutants
into the air and water, the management and disposal of hazardous substances and wastes, and
the cleanup of contaminated sites.

Legal: Patent Reform Legislation – As one of the largest patent holders in U.S, HP is on average
granted four patents every day. HP is a constant target of frivolous patent lawsuits. These
lawsuits force HP to divert resources away from innovation and product development, leading
to reduced economic benefits from invention (HP, 2009).

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 OBJECTIVE 3: To provide a SWOT analysis framework of identify the company.

SWOT ANAYLSIS

SWOT analysis of HP will tell us the internal strengths and weaknesses of the company as well
as external opportunities and threats that the company is facing. SWOT analysis of the company
will explore the strategic situation of HP. Analysis is described below:

HP SWOT Analysis

Strengths Weaknesses

1. Strong presence in China 1. Poor competency in acquisitions

2. Brand reputation 2. 29% of income comes from personal
3. Diversified product portfolio systems division
3. Poor presence in tablet market

Opportunities Threats

1. Expand services and enterprise 1. Retaliation by incumbent firms in

solutions divisions software services
2. Increasing demand of cloud based 2. Slowing growth rate of the PC market
services 3. Rapid technological change
3. Acquisition of more technology
related patents

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Strengths

1. Strong presence in China. The economy of China has been growing at a steady more
than 8% rate every year. The growing economy accelerates corporate spending and HP is
well positioned to benefit from it. The company has increased its investments in the
market and expanded product and service offerings, especially its enterprise business and
services divisions. These divisions offer the most profitable HP’s products, including
cloud computing services and enterprise solutions. Strategic expansion into Chinese
market may result in a strong competitive advantage for the business in the near future.

2. Brand reputation. HP is the world’s leading PC vendor with more than 15% market
share. It is also one of the major providers of service network products. The company has
a significant market reach all over the world in nearly all of the markets it operates. This
has resulted in a strong brand reputation. According to Interbrand, HP’s brand was value
at $26 billion in 2012 and was among top 15 most valuable brands in the world.

3. Diversified product portfolio. Although slowly, HP has been diversifying its product

portfolio and moving from its main Personal Systems business to more profitable and
lucrative enterprise solutions and services business. The company now offers thousands
of different products and services. In addition, its product portfolio is more diversified
than competitors’ portfolios, which make HP less susceptible to changes in the different
industries and markets.

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Weaknesses

1. Poor competency in acquisitions. Over the last 10 years, HP has acquired at least 50

technology companies. Some of the acquisitions added new skills, products and increased
business’ revenues but the rest acquisitions were either of no value or even detrimental to
the company. Most notably, Autonomy Corporation, which was acquired for $11 billion
and was a complete failure. HP bought a highly overvalued company and had to write
down $8.8 billion value of its books. This acquisition has revealed how incompetent HP
was when acquiring the company. No other HP competitor has experienced such an
acquisition failure in the decade.

2. 29% of income comes from personal systems division. HP still heavily depends on
sales from PC, especially laptops. The market for PC has matured and is expected to
grow very slowly or even decline after a few years. Combining this with ever decreasing
margins on computer hardware products, HP’s largest Personal Systems division
becomes a weakness for the company.

3. Poor presence in the tablet market. The tablet market has been growing and is
expected to grow in double digits over the next few years. Most of other technology
businesses have successfully introduced their products in the tablet market and have
enjoyed huge income and profit growth. Although HP had its TouchPad tablet model and
later introduced its Slate series tablets into the market, the company has failed to offer an
attractive product for consumers. As a result, the business experiences losses and is
unable to compete successfully in this lucrative market with companies like Samsung and
Apple.

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Opportunities

1. Expand services and enterprise solutions divisions. HP provides various services

(cloud, security and infrastructure) and enterprise solutions (servers, networking and
storage), which are the most profitable HP’s businesses at the moment. The company
should focus on growing these divisions as they promise better growth opportunities and
higher profit margins.

2. Increasing demand of cloud based services. The cloud computing market is expected to

grow by an average of 22% each year from 2011 to 2020. By 2020, the market is
expected to reach $240 billion value. Currently, HP is offering many services related with
cloud computing and is well positioned to benefit from the growing market.

3. Acquisition of more technology related patents. R&D is expensive to engage in and

the best alternative to that is to acquire patents from other companies in the market. HP
has a lot of free cash that could be used to acquire companies holding the necessary
technology patents. With strengthened patent portfolio, HP would be able to compete
with the rival firms in the table market.

Threats

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 1. Retaliation by incumbent firms in software services. Profit margins are high in the
market of enterprise software solutions and HP might face stronger than expected
competition from incumbent firms such as Oracle or IBM.

2. Slowing growth rate of the laptop market. Growth rate of the computer market is
slowing down and in the near future the markets will become saturated. The company
faces intense competition from rivals like Acers, Apple, Dell, Lenovo or Samsung in
terms of price, quality, brand, technology, distribution channels and range of products.
Besides, customer needs are changing and now customers are keener to buy tablets or
smartphones than new laptops. Therefore, it will prove hard for HP to compete in
personal computers market and continue to grow its market share.

3. Rapid technological change. The serious threat that HP and the other tech companies
are facing is a rapid technological change. Companies are under the pressure to release
the new products faster and faster. The one that cannot keep up with the competition soon
fails. This is especially threatening for HP as the company is already behind its rivals in
terms of quality, price and technological advancement of some of the products.

OBJECTIVE 4: To study the challenges faced by HP:

Challenges Faced By Hp :
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Lenovo Overtakes HP as World's Top PC Maker

For quite some time, HP was the world's top PC maker. In recent years, however, that has
changed. Lenovo is now the world's top PC vendor, scoring 19.2 percent of the PC market in the
second quarter, according to Gartner. HP came in second place with 17.7 percent market share.
During the same period in 2013, HP stood at 16.2 percent share, compared with Lenovo's 16.7
percent. In other words, Lenovo is pulling away, and HP needs to do something about it.

Lenovo Is Expanding Its Server Business

Lenovo has already proven its ability to take on and beat HP in the PC space, and now it's
building it server market share. The company recently closed a $2.1 billion deal to buy IBM's
low-end server unit. In an interview with The Wall Street Journal recently, Lenovo CEO Yang
Yuanqing said that his plans for his newly purchased unit are simple: "win more market share
from competitors." HP is still a prominent player in servers, generating billions from them each
year. Analysts say Lenovo has a solid chance at giving HP a run for its money. Too bad HP
didn't acquire the IBM unit before it gave Lenovo the opening to take it on.

Slowing Demand in the PC Market

Global PC sales and shipments have declined for eight straight quarters. While there are some
signs that PC sales have reached a plateau and might even start growing again, it remains to be
seen whether HP can build up PC sales and take back some of the market share it lost during the
lean years.

Changing PC Market Hurt HP as Much as Anybody

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Buyer preferences for small computers have changed significantly in the past few years.
Enterprises and consumers bought more tablets, rather than more notebook PCs. Consumers
spent more money on smartphones than they did on PC upgrades. Enterprises held on to their
stocks of older PCs, particularly those running Windows XP far longer than expected. Windows
8's unpopular design failed to jump-start new PCs as businesses and consumers preferred to buy
and retain Windows 7 machines. Now HP and the rest of the PC makers have to hope that
Windows 10, will stimulate a new round of strong PC purchasing.

HP Took Too Long to Get a Grip on the Tablet Market

Let's not forget that HP was one of the first companies to embrace tablets a few years ago.
However, the company couldn't decide whether it wanted to appeal to consumers or enterprise
customers with the mobile devices and after repeated failures got out of the business for a while.
HP is back in the space now, with its Stream line of slates, but it might be too little, too late.

FINDINGS AND OBSERVATION

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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.

The findings of this project are as follows:

1. HP is market leader in PC market.

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. HP is at the 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.
6. Cost wise HP is at third number after LG and zenith enjoy 1 and 2 position respectively.
7. Corporate image of HP is not so good.
8. According to customer satisfaction index HP is no.1.
9. HP is no 1 in providing the finance purchase to the customers
10. After sales service and technology are the perceived weaknesses of the HP.

CONCLUSION

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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.

SUGGESTIONS &RECOMMANDATIONS

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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.

3. Perceived corporate image of HP is not very good so an effort has to be made to improve
it.

4. 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.

5. Company should tie up with some event management company to organize various
promotional activities like canopy, Carnival.

6. 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.

7. 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.

8. Company should improve the quality of product

9. Company should give the service of customization of product to the consumers.

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 BIBLOGRAPHY

BOOKS:

1. Kothari, C.R. Marketing Research, 3rd edition

2. Kotler, Philip, Marketing Management

3. T.N Chabra , Marketing Management

WEBSITES:

1. www.computerworld.com
2. www.hpinfosystem.com
3. www.compareraja.in
4. www.strategicmanagementinsight.com

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