Product and Brand Management Project Report on Product recommendation for HP By Chetanya Rajput (A-27)

MBA Class of 2013 Under the Supervision of Ms. Sunetra Saha Assistant Professor Department of Marketing

AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA AMITY UNIVERSITY UTTAR PRADESH AMITY BUSINESS SCHOOL

CHAPTER 1 INTRODUCTION Introduction to HP Stanford University classmates Bill Hewlett and Dave Packard founded HP in 1939. The company's first product, built in a Palo Alto garage, was an audio oscillator - an electronic test instrument used by sound engineers. One of HP's first customers was Walt Disney Studios, which purchased eight oscillators to develop and test an innovative sound system for the movie Fantasia. Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, United States. It provides products, technologies, software, solutions and services to consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. HP was the world's leading PC manufacturer (recently piped by Lenovo to No.2 spot). It specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise, and industry standard servers, related storage devices, networking products, software and a diverse range of printers, and other imaging products. HP markets its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. HP also has strong services and consulting business around its products and partner products. Hewlett and Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett. Packard won the coin toss but named their manufacturing enterprise the "Hewlett-Packard Company". HP incorporated on August 18, 1947, and went public on November 6, 1957. Major company events have included 1. The spin-off of part of its business as Agilent Technologies in 1999 2. Its merger with Compaq in 2002, and the acquisition of EDS in 2008, which led to combined revenues of $118.4 billion in 2008 and a Fortune 500 ranking of 9 in 2009. 3. In November 2009, HP announced the acquisition of 3Com with the deal closing on April 12, 2010. 4. On April 28, 2010, HP announced the buyout of Palm for $1.2 billion

HP Business Group Computers and related products Targets both commercial and home use Personal System Generates 31% of revenue
Group

Services

Services provides consulting, outsourcing and technology services across infrastructure, applications and business process domains. IT outsourcing Generates 28% of revenue

Enterprise Solution

Services provides consulting, outsourcing and technology services across infrastructure, applications and business process domains. Coupled with Cloud sevices Generates 17% of revenue

Software

IT management software, information management solutions and security intelligence/risk management solutions. Software is delivered as license or as SaaS Generates 3% of revenue

Corporate Investment

business intelligence solutions, HP Labs, webOS software and certain business incubation projects. New wing added in 2012

Financial Services

Leasing, IT management software, information management solutions and security intelligence/risk management solutions. Generates 0% of revenue

Printers Commercial and Home usage Cameras Imaging and Generates 20% of revenue Printer

HP PSG Product Brand Matrix

HP PSG OFFERINGS IN INDIA

SWOT MATRIX

Recent Turbulence On August 6, 2010, CEO Mark Hurd resigned amid controversy of sexual misconduct Lo Apotheker was named as HP's new CEO and President on September 30, 2010, On August 18, 2011, HP announced that it would strategically exit the smartphone and tablet computer business, focusing on higher-margin "strategic priorities of Cloud, solutions and software with an emphasis on enterprise, commercial and government markets. They also contemplated spinning off their personal computer division into a separate company. HP's consideration of a fundamental restructuring to quit the 'PC' business, while continuing to sell servers and other equipment to business customers, would have been similar to what IBM did in 2005. It came months after releasing their new Touch Pad. Meanwhile, they spent $10 billion to acquire the software company Autonomy. In simple terms, it means that HP wants to get out of the hardware business and become an enterprise software company like Oracle or IBM. However, after a brief review, HP decided their PC division was too integrated and critical to business operations, and the company reaffirmed their commitment to the Personal Systems Group. On September 22, 2011, Hewlett-Packard Co. named former eBay Inc. Chief Executive Meg Whitman its president and CEO, replacing Lo Apotheker, while Raymond Lane became executive chairman of the company.

On March 21, 2012, HP said its printing and PC divisions would become one unit headed by Todd Bradley from the PC division when Printing Chief Vyomesh Joshi left the company. On May 23, 2012, HP announced plans to lay off approximately 27,000 employees, after posting a profit decline of 31% in the second quarter of 2012. The profit decline is because of the growing popularity of smart phones, tablets, and other mobile devices that has slowed the sale of personal computers. The pain got worse when on September 10, 2012, HP revised their restructuring figures; they are now cutting 29,000 jobs. HP had already cut 3,800 jobs - around 7 percent of the revised 29,000 figure - as of July 2012. Recently, HP investors complained and suggested that HP should be like Apple. In persuit to meet expectation of investors, HP is planning to launch 30 innovative products to revamp their product line.

PRODUCT GAPS HP PSG depends heavily on laptop and desktop, which are predicted to go in museum soon. HP investors have constantly complained that HP should be like Apple. They have only one Window Based Tablet Touchpad, in market of $ 35 billion. They have planned only one tablet ElitePad, which will windows based. Based on this strong gap, HP is recommended to capture tablet computers market by launching two products to capture both segments in downward and upward stretching.

HP DAD-PAD Dad-Pad is cool name which will position next to Apple. Dad stands for Digital automated device,. It will be an innovative productive which will have features of Desktop as well as laptop. The marketing mix follows as

PRODUCT 10.1 Inches Dual OS - Android Jelly Bean and Windows Powered Integrated Celluon Magic-Cube Projection Keyboard 2GHz Quad Core Processor 8GB Internal Memory 5000 mAH Battery

12MP Back Camera with LED Flash and 2MP Front Camera with Flash light BOOST Enhanced sound quality Corning Gorilla Glass 2 and machined aluminum Water-proof Inbuilt projector 128 GB USB 2.0 and HDMI

PRICE Rs 35000-45000 Premium Pricing to instill snob value and pride of possession

PLACE Urban Cities Exclusive HP Stores Various electronic multi brand stores. Electronics retail shop

PROMOTION Social media and viral advertisements - It is a form of latest marketing technique that uses pre-existing social networks to increase in brand awareness or to achieve other marketing objectives through self-replicating viral processes, analogous to the spread of actual viruses. It targets word of mouth or by social networking websites like Twitter, Facebook, Google+ etc. Their advertisement should become a pandemic across internet. Their advertisement should have all component of being a successful viral advertisement i.e. original, brief, amazing, non-obvious. Brand Ambassador The brand ambassador of Compaq Q-Pad will be Shahrukh Khan and Amitabh Bachchan. These two are premium bollywood stars with maximum connect with Indian population. There grace and stature will go well with brand personality. Electronic and Print Media Advertisement Top magazines, newspapers and hoardings will be used as communication medium. Apart from these, HP Dad-Pad advertisement will feature in apps Sponsorship Various mega sporting events and corporate meetings will be sponsor to create brand and product awareness and connect among target consumers.

Free HP accessories like pen drive and carry bag 2 years guarantee To build trust among consumer in after sales support. Tagline The Dad of Tablets.

Positioning Premium product competing on quality.

COMPAQ Q-PAD It will second product as a part of downward stretching. It will compete on price factor with low priced tablets. PRODUCT Android Ice Cream Sandwich Powered 8MP Back Camera with 0.3 MP Front Camera 1.2 GHz cortex processor BOOST Enhanced sound quality 1 GB RAM 7 inch capacitive touchscreen 4 GB internal memory, expandable upto 32 GB, microSD card 2800 mAh batttery life 3G and Wi-Fi support 3.5 mm audio jack and mini USB port Inbuilt projector

PRICE Rs 8000- 9000

PLACE As wide as possible covering for tier 1, tier 2, tier 3 cities. Near colleges and universities. Tie up with corporates and colleges.

PROMOTION Social media and viral advertisements - It is a form of latest marketing technique that uses pre-existing social networks to increase in brand awareness or to achieve other marketing objectives through self-replicating viral processes, analogous to the spread of actual viruses. It targets word of mouth or by social networking websites like Twitter, Facebook, Google+ etc. Their advertisement should become a pandemic across internet. Their advertisement should have all component of being a successful viral advertisement i.e. original, brief, amazing, non-obvious. Electronic and Print Media Advertisement Top magazines, newspapers and hoardings will be used as communication medium. Free HP accessory like carry bag Sponsorship Various college fest will be sponsor to create brand and product awareness and connect among target consumers. 2 years guarantee To build trust among consumer in after sales support. Brand Ambassador The brand ambassador of Compaq Q-Pad will be Virat Kohli. The upcoming cricket icon is young and falls in age of college goers. He is a youth icon who can connect with target consumers. Tagline Lets Play.

Positioning A cost effective yet powerful tablet for tier 1, tier 2, tier 3 cities, college goers and young salesman.

Challenges Following challenges, HP needs to keep in mind will launching these product. HP does not violate any Intellectual Property Right and product is in accordance to law. Smartphone and tablet market is bigger and intense battleground as compared to cola war. Multiple lawsuits and bans have been slapped on each other. IPR is used a competitive weapon. HP being a new entrant should avoid these guerrilla tactics by competitor.