SYNOPSIS

ON

CUSTOMER PREFERENCE TOWARDS LAPTOP OF DELL, HP & LENOVO

UNDER THE GUIDANCE OF: Mr. Gagandeep Singh Lecturer GNIM

SUBMITTED TO: Himanshu Chauhan MBA (Final) Roll No.11067

GURU NANAK INSTITUTE OF MANAGEMENT MULLANA (AMBALA)

DECLARATION

I hereby declare that the project titled Consumer preference towards the laptop of selected companyis the original pieceof work done by me & the same has not been previously submitted toany university for fulfillment of any course & that the project shall be liable to be rejected or cancelled if found otherwise.

Place:
Dated:

HIMANSHU CHAUHAN

ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of competition and success, project work is like a bridge between theoretical and practical working. Willingly I prepared this particular dissertation. First of all I would like to thank the supreme power, the almighty god, who is obviously the one who has always guided me to work on the right path of my life.

(HIMANSHU CHAUHAN)

PREFACE

There is fast and rapid change in the security system industry especially regarding the marketing practices of the various companies. The preferences of the customers are fast changing. Since the industry is fast expanding and its vast scope in the present, the present study has been attempted to examine the marketing practices. The study is an attempt to the highlight various technologies of security systems and hence the first chapter covers the introduction to the project. In second chapter there is description of company profile. The third chapter deals with the research methodology and hence various factors affecting customer, marketing practices of samples companies & their relative positioning Vs. the factors in analysis part are covered. However finally, the report covers the findings & recommendations for suitable marketing practices in industry.

TABLE OF CONTENTS
Title
EXECUTIVE SUMMARY COMPANY PRIFILE SCOPE OF THE STUDY OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS & GRAPHICAL INTERPRETATION MAJOR PLAYERS IN THE MARKET COMPETITORS OF COMPAQ MARKETING STRATEGIES FUTURE SCOPE MARKET SHARE MARKETING & SELLING STRATEGIES CHANGING TRENDS

Pg. No.
5 7 9 10 11 14 36 37 41 45 47 48 51 57 59 65 67 69 73

DECISION MAKING PROCESS SWOT ANALYSIS SUGGESTION & RECOMMENDATIONS CONCLUSION QUESTIONNAIRE BIBLIOGRAPHY

EXECUTIVE SUMMARY
COMPAQ, Indias premier information enabling and integration company has received the ISO 9001:2000 certification specifies requirements for a quality management system where an organization needs to demonstrate its ability to consistently provide product and services that meets customer and applicable regulatory requirements. ISO 9001:2000 also aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the

assurance

of

conformity

to

customer

and

applicable

regulatory

requirements.

The menu of COMPAQ global services broadly covers IT consulting and professional services in the area of vertical applications, technology integration, ERP implementation and software development. This also includes a complete portfolio of systems and network services for development. This also includes a complete portfolio of systems and network services for Facilities Management, Helpdesks, Sysytems Supports and network and Internet Implementation. COMPAQ Insys global customers include Samsung, Government of Singapore, and AMAL insurance Jurong Port in Singapore and Malaysians BSN commercial bank, SIA, DBS bank, New bank life assurance charted semiconductors. COMPAQ Insys chosen platform of total technology integration lends itself to some very significant alliances with the global leaders. Among its partner are HP for high end AISCE/UNIX services and workstation and HP Open view network management solution; Intel for PC and PC server building blocks; Microsoft,novell and SCO AG solutions; Red hat ;Linux; Samsung; Pivota for CRM solution and ORACLE Sybase and Informix for RDBMS platform.

Today the company has aligned its operations into five entities that offer seamless linkages for the customers seeking entry into the wired world through total the. Integration solution ands services. COMPAQ focuses on the ever-growing segment in Imaging, Telecom and Communication products solutions and services. Now it has an exclusive sale and support partnership with Toshiba Corporation, Japan, for sales and servicing of its imaging and photocopier products. COMPAQ product portfolio covers a range of other office automation and communication products through alliances with world leaders. The Managed Network Service offerings for corporates include VPNs, ASP offerings, Co Location/ hosting, CDNs, security, corporate internet telephony solutions, technical and consumer help desks, 24/7 Network Operations Centre monitoring and a host of value added networking services. Consumer services include dialup PSTN/ISDN Internet access, Valufon calling cards and VoIP telephony devices.
INTRODUCTION Desktop computers usually come with a vertical chassis, referred to as a tower, which typically sits on the floor under a desk. A monitor, keyboard, mouse and speakers are all attached to the tower separately. Laptop computers, on the other hand, are small, battery-powered, lightweight (13 kg) and ideal for those who require portability, such as business people who travel or university students who could then easily move from a dorm room to a library to a lecture hall to a cafe. With a DVD player, laptops can also be used as portable entertainment systems.

Unlike a desktop setup, all accessories are integrated into the laptop (mouse, keyboard, speakers, etc) but external ones may be attached, as well. The prices for these accessories are about the same for both laptop and desktop PCs. It should be mentioned that many of today's laptops come equipped with integrated wireless networking features (like Intel Centrino mobile technology) so that users can tap into a high-speed internet connection. The PC user must be in the range of a compatible wireless network, known as a hotspot, which is available in some hotels, airport lounges, school campuses, and cafes. Desktop computers usually come with a wired network card, but wireless cards can be purchased.

THE GLOBAL LAPTOP INDUSTRY

A laptop computer is a small, portable computer that is small enough to sit on a persons lap. While the personal computer (PC) industry began in the early 1970s, it was not until 1981 that the first commercial portable computer - Osborne 1 - became available. The next big event in the history of laptops came in the summer of 1995, after which Microsoft and Intel became the standard for the software (Windows) and hardware (Intel processors) used in laptops. Over the past fifteen years, the increasing price-performance ratio, consumer preferences for mobility as well as increased hardware life has resulted in higher growth of laptops than desktops since 2004. Datamonitor forecasts that the global PC industry is projected to grow at a compound annual growth rate (CAGR) of 5.4% in market value during 2007-2012, with laptops (a sub-segment) being the major contributor to its growth. This growth is down from the 7.6% CAGR for 2003-2007, in part due to the slowing economy. In addition to the economy, the laptop segment is expected to face increased competition from both new devices and technologies. Smart phones (iPhone, Blackberry, Palm Pre) and Mobile Internet Devices (Nokia N800 Tablet) are starting to compete with laptops due to features such as gaming, internet access and enterprise applications. Changes in demand and new technologies will continue to alter the outlook for the laptop industry in the coming years.

New demand for low cost ultraportable laptops called netbooks has created new competitors like ASUSTek as well as forced companies to change their business models to succeed. New technologies such as cloud computing and hosted virtual desktops (HVDs) may change the requirements of the laptop industry, from powerful stand-alone laptops to less-powerful wirelessly networked laptops. This will likely affect the profitability of existing manufacturers. The focus in this analysis is therefore on the macro- and micro- factors affecting the global laptop PC manufacturers. Since the laptop industry represents a segment of the broader personal computer (PC) market, data regarding the PC industry is also relevant in the analysis of the laptop industry. Laptop sales in India have risen drastically, which accounts for over 25% of the total personal computer market. Laptop sales only accounted for a 3% of the total personal computer till 2003. The sales of the laptops has reached a mark of 0.68 million unit in fiscal year 2006-2007 which accounts for a growth of 59% over the same period in fiscal year 2005-2006. Sale of desktop computers and laptops has touched the mark of 8.5 million units in the fiscal year 2007-2008. There are various main players in the Indian notebook market.

POLITICAL FACTORS
The laptop and PC industry is expected to grow at a faster rate in developing countries compared to the developed countries. Therefore, changes in government policies in developing countries like India and China can affect the potential growth rates in their markets. For instance, the removal of import duties on laptops in India in 2005 was one of the factors that resulted in a growth of 94% in laptop sales in 2005. Increasing focus on the environmental impact of high-tech trash has lead to more stringent environmental regulations on the electronics industry such as the RoHS (Restriction of Hazardous Substances) and WEEE (Waste Electrical and Electronic Equipment) Directive. The additional testing and certification involved directly affect the supply chains for laptop and PC manufacturers, resulting in increased costs. For instance, in Canada, the enforcement of the WEEE Directive will increase the cost of

computers by $15. The increase either affects the consumer or reduces profitability for manufacturers.

ECONOMIC FACTORS
The global economy influences various different factors that affect the growth of the PC industry. Since early 2008, the slowing global economy is one of the reasons for the decrease in business capital spending for small and large corporations, resulting in reduced demand for PCs. Gartner, Inc. forecasts a decline of 3.8% in global IT spending, of which computing hardware spending is expected to decrease by 14.9% in 2009. Though this decline in IT spending is likely to recover slowly during 2010, the global PC market is expected to face declining growth rates in terms of market value, from an expected 5.4% growth in 2009 to 4.1% in 2012. Most laptop (and PC) manufacturers such as Dell, HP, Acer, Lenovo, and Apple generate sales throughout the world and therefore currency exchange rates are an important factor as well. The strength (or weakness) of the US dollar versus other currencies can directly affect a companys bottom line. The economies in developing countries such as China, India, Brazil, and Latin America are growing at a much faster rate than developed countries and therefore provide better growth opportunities for computer manufacturers, since developed countries like the US and Japan have become saturated. This trend is reflected in the slower single digit growth in the last few years as opposed to the consistent double digit growth in the developing markets.

SOCIAL
Social factors such as education, preferences, income levels, and other cultural factors influence demand patterns in the different regions and therefore affect how a company operates in each region. The education and income level of users affects the

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brand perception of the computer manufacturers. Households with higher income have higher percentages of Apple computers. Such households are also more likely able to afford (and want) Apple computers. This has allowed Apple to continue its strategy of premium pricing and performance compared to Windows PCs, while at the same time increasing its market share of the total laptop and PC market. At the other end of the education spectrum, new devices such as the rugged and ultraportable OLPC (One Laptop Per Child) have been developed for underprivileged users in developing countries like Africa. Thus, education levels affect both product demand as well as preference. Cultural aspects of different regions affect the occurrence of seasonal sales, which significantly affect the performance of the computer industry as a whole. For instance, in the U.S., the periods from November-December (Thanksgiving / Christmas) and August (back-to-school) are significant earnings period.

TECHNOLOGICAL
Technological advances over the past decade, such as increased processing power with reduced power consumption and reduced cost, or the standardization of Windows and Intel in laptops, are one of the main reasons for the increase in market share of the laptop segment compared to the overall PC industry. For instance, the notebook categorys average selling price (ASP) of $300 was made possible by the low cost Intel Atom microprocessor, released in 2008. New technologies, such as hosted virtual desktops (HVD), threaten to completely change the industry dynamic, due to the possibility of cheaper computers along with lower software costs. HVDs involve centralized computing in which the processing is done on servers instead of individual clients. Gartner, Inc. estimates that the HVD market will grow in revenue from $1.3 billion in 2008 to $65.7 billion in 2013.

COMPETITORS AND INDUSTRY KEY FACTORS

The global PC market, including the laptop (portable) segment, is dominated mainly by the five top competitors: Hewlett-Packard (HP), Dell, Acer, Lenovo and Toshiba in descending order, and together they constitute approximately 60% of the total

11

market share (based on units shipped). In the top 10, Apple has been gaining market share compared to Windows PCs and laptops, mainly due to its positive brand reputation. In terms of global PC volume, HP is the leader (18.9%, 2008) followed by Dell (15.5%, 2008). Due to the netbook segment, Taiwanese companies such as ASUSTek and MSI have increased their market share tremendously over the past two years. In order to remain competitive, all of the top manufacturers share certain characteristics, or key success factors (KSF). Efficient production and distribution capability is one of these key success factors. Due to the reduction in ASPs of laptops (and PCs), the industry is becoming more commoditized. Therefore the primary means to reduce production costs lies in process improvement from procurement to production and supply chain. This is possible by exploiting the benefits from mass production: more bargaining with suppliers, better global distribution networks, cheaper production facilities in foreign countries, etc. Innovation and the ability to identify consumers needs are key success factors as well. Moreover, the effect of these success factors has led to a consolidation in the computer industry, with the largest firms becoming bigger. For instance, the top five firms which represented 50% of the market share in 2007 now account for 60% in 2008. Based on the key success factor analysis, the weighted competitive strengths assessment shows that the future market will be dominated by HP, Dell and Acer. All of the top firms in the table are pretty similar in strength, except for Apple. The lack of a netbook category, premium pricing, small global share, and different operating system results in Apple having the lowest score. The top Windows laptops have similar scores, due to the commoditization of the industry. In the future, netbooks are forecasted to grow to a market share of 30% of the global laptop industry by 2012. Netbooks have affected the industry in two ways: a price reduction across all laptop categories and a change in consumer preference. Consequently, ASPs for laptops decreased by 6.8% in 2007, 8% in 2008, and is forecasted to decrease by 12% in 2009. In addition, Gartner, Inc. estimates global PC unit growth of 10% but only 4% growth in dollar value for 2009. Thus, the continuing long-term trend of decreasing profits in spite of increased sales volume has forced companies to adjust their business models to maintain profitability. For instance, Acer has announced a new line of netbooks and thin
12

notebooks to maintain and increase profits in spite of decreased PC demand. Thus, PC manufacturers will continue to have increased growth in the laptop segment, in part due to the international market and netbooks, but will be faced with decreasing profit margins. It is not clear whether the future demand for netbooks is sustainable and therefore, in the long term manufacturers will have to adapt by increasing the focus on the services segment.

OBJECTIVES OF THE STUDY

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The present study has also been taken up to fulfill some objectives. Thus the objectives of the present study have been identified as follows:1. 2. 3. 4. 5. To study the need analysis of consumers preference regarding laptops. To study the Marketing Mix regarding laptop. To analyze the consumers decision-making process with due attention to factors responsible for it To know the brand loyalty among the consumer regarding laptop. To find out the motivating factors for consumer in buying for a laptop.

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A large portion of society depends upon transportation and travel. Therefore the relationship between the customers and the market players must be established and explored to make the marketing effort fruitful and profitable. Thus, it is reflected in the above wording that the present study will be useful in meeting and exploring the proposed objectives. Therefore to make the present study meaningful the data shall be collected from various sources such as journals, newspapers, Internet etc. that will serve as the base for the secondary data and for interacting with the respective users of the Laptop/Notebooks of different companies. RESEARCH DESIGN In the present study the exploratory-cum-descriptive research design will be followed which will help in exploring the answers to the specified objectives of the present study. RESEARCH INSTRUMENTS The proposed study will be based on both primary and secondary data. The main sources of the secondary data to be used in the study shall be collected through newspapers, magazines, journals, published reports of the industry (Laptops) players and the internet. For the primary data the customers shall be contacted with the questionnaire designed to gather the data relevant with objective of the study.

SAMPLING PLAN
For the purpose of gathering the primary data the customer numbering not more than 100 shall be contacted with the help of a questionnaire. The sampling shall be random and discrete.

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AREA FOR SAMPLING The areas, which will be considered for the purpose of present study, will be Ambala & Mullana. Equal number of consumers shall be contacted for the purpose of uniformity in results without a place for biasness in area or location. ANALYSIS AND INTERPRETATION OF DATA The data collected through questionnaire will be analyzed and interpreted with the help of relevant statistical tools such as percentage, tabulation, charts, crosstabulation, correlation etc.

DATA ANALYSIS & GRAPHICAL DATA INTERPRETATIOIN

SAMPLE SIZE : 55
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1. What type of computers do you use? a.)Branded b.)Assembled Branded Assembled 37 18

Using branded computers

hospitals using branded Using assembled computers computers hospitals using assembled computers

It was observed that almost 67% of the people use branded computers or other gadgets for their business purpose. Hence can be concluded that more people want branded products as they are not ready to compromise with the quality and services being provided.

2.

What brand of computers do you use? a.) HP b.) COMPAQ c.) HCL d.)Others

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Brand used HP COMPAQ HCL Others

Total Nos. 7 14 13 21

HP HCL acer others

This observation showed that COMPAQ is among the top used brands. Major part under the pie-chart goes to COMPAQ. So COMPAQ should

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continue making efforts to attract new market and sustain the existing market. 3. What is the number of installed desktops? a.) <15 b.) 15-50 c.) 50-75 d.) 75-200 e.) 200-500 Installed desktops < 15 15-50 50-75 75-200 200-500 Total Nos. 19 21 11 3 1

<15 15-50 50-75 75-200 200-500

Most of the surveyed and found the use of computers within the 15-55 range. So it can be inferred that the main target market is which lies in the middle range. Thus we targeted mainly on SME (small and medium enterprise).
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4. What is the number of used servers? a. 1 b. 2 c. 3-5 d. 5 Servers used 1 2 3-5 >5 Total Nos. 10 11 21 13

1 2 3 to 5 >5

From this observation, it was concluded that number of servers were directly proportional to the number of desktops used. 5. What is the number of installed laptops? a.) 1-5
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b.) 5-15 c.) 15-30 d.) >30 Number of laptops 1-5 5-15 15-30 >30 Total Nos. 20 22 8 5

1 to 5 5 to 15 15 to 30 >30

It was observed that maximum computers and laptop users ranging between 5-25. This area can be focused. 6. What is the brand used for laptops? a.) COMPAQ b.) Toshiba

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c.) Lenovo d.) Others Laptops brand COMPAQ Toshiba Lenovo Others Total Nos. 11 19 13 12

HCL Toshiba lenovo others

Observation showed that Toshiba was the major brand used in laptops. Various other brands like HP and Samsung etc. are also used. COMPAQ has also a good market share.

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9. What type of company is having the AMC? a.)Regional office of the company b.) Any other local player

Type of AMC company Authorized regional office Local players

Total Nos. 24 6

regional office of the company any local player

That the above graph shows that the use of AMCs in regional office and local players prefers authorized regional offices to select for the service rather than going for a local player. 10.Are you facing any problem with current used product line?

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a.)Yes b.)No c.)Not yet facing problem not facing problem not faced problems yet Total Nos. 15 18 22

hospitals facing problem Facing problems

Not facing not problems hospitals facing problem Not yet encountered not yet encountered

That the above graph shows that the above observation showed that major number of users are either not facing any problem or they have not being encountered with any.
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11. Are you planning to make any new purchase? a.) Yes b.) No c.) Not yet planned Planning about new purchase Planning to purchase No planning Not yet planned Total Nos. 9 17 29

That the above graph show that the most of the users have not planned about making a purchase and a very few are planning to make a buy.

planning to purchase no planning not yet planned

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12. How do you find the COMPAQ products? a.) OK b.) Good c.) Satisfactory d.) Outstanding e.) Not tried yet Reaction about COMPAQ products OK Good Satisfactory Outstanding Not tried yet Total Nos. 3 12 19 7 10

OK good satisfactory outstanding not tried yet

According to above graph shows that the maximum of COMPAQ user are satisfied with the products and services provided. Very few have not tried

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yet COMPAQ on a business scale, but most of them have an experience about COMPAQ. 13.Do you want to know more about COMPAQ products? a.)Yes b.)No Wanted knowledge about COMPAQ Yes No Total Nos. 42 13

want info about HCL no info wanted

That the above graph shows that the observation and the most of the people are interested in knowing more about the brand and have the urge to buy.

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14. Do you require demo for any product? a.)Yes b.)No

Interested in demo Not interested in demo

Total Nos. 24 31

interested demo hospitalsin interested in

demo

interested demo hospitalsin not interested

in demo

This observation showed that almost 45% of the sample was interested in demo. 15.Do you want to buy any product? (Commercial proposal)

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a.)Yes b.)No c.)Not yet decided

Commercial proposal Yes No Not yet decided

Total Nos. 8 19 28

Interested in commercial proposal hospitals commercial hospitals proposal

interested in commercial proposal Not interested in

Not yet planned in commercial

not interested proposal

not yet planned

That the above graph shows that the above observation showed that almost a huge chunk of hospitals surveyed either doesnt want or they have not planned for any commercial proposal.

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 COMPAQ DELL IBM LENOVO APPLE HP ACER INTEX ZENITH SONY HCL SAHARA

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SAHARA COMPUTER
Established in 1997 Sahara Computers assembles and markets computers & peripherals through a global distribution network that covers established and emerging markets. The company is owned by Sahara Holdings, a fully Broad-Based Black Economic Empowered entity, and is based in Johannesburg, South Africa. It is the official distributor and Original Equipment Manufacturer (OEM) for a variety of top international vendors. An accredited member of the Proudly South African campaign, the Sahara business network stretches across South Africa to include Cape Town, Durban & Port Elizabeth. The company has established a strong presence globally, with offices across EMEA, including Nairobi & Mombassa in Kenya and Botswana, Dubai, the U.K and China. Sahara Computers is currently the largest operation of its kind in Southern Africa. Owned by Sahara Holdings group, company boast an annual turnover over 1.4 billion Rand. Sahara Holdings strictly adheres to
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the principles of Broad-Based Economic Empowerment and established itself among the frontrunners of empowered organizations within the ICT sector when it confirmed its participation in an empowerment deal valued at R640 million in 2006. For the deal Sahara Holdings sold 27% of their shares to a newly established consortium represented by mining and mineral resource Group Mvelaphanda Holdings (Pty) Ltd. chaired by Tokyo Sexwale, and Afripalm Consortium, a local investment company chaired by Lazarus Zim. The deal incorporates subsidiaries and associates of Sahara Holdings including Sahara Computers Pty Ltd., Sahara Systems Pty Ltd., Sahara Consumables Pty Ltd., Sahara Distribution Pty Ltd. and Annex Distribution Pty Ltd. This venture signals a new era in the transference of the benefit and value associated with technology, through to communities and individuals. It also reinforces Saharas pledge to provide access to high quality, affordable communication technology and infrastructure. It is the competency and dynamic attribute of Sahara Computers that has won it the confidence of many major IT suppliers, representing key product and component ranges.

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Dell Inc. listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 25 on the Fortune 500. Dell's climb to market leadership is the result of a persistent focus on delivering the best possible customer experience by directly selling standards-based computing products and services. Revenue for the last four quarters totaled $57.9 billion and the company employs approximately 78,700 team members around the globe. Dell was founded in 1984 by Michael Dell, the longest-tenured executive to lead a company in the computer industry. The company is based on a simple concept: by selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant technology much more

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quickly than companies with slow-moving, indirect distribution channels, turning over inventory in just five days on average. The Dell Effect For more than 20 years, Dell has revolutionized the industry to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers. Because of Dell's direct modeland the industry's response to itinformation technology is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives. Dell has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories. Nearly one out of every five standards-based computer system sold in the world today is a Dell. This global reach indicates our direct approach is relevant across product lines, regions and customer segments.

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Marketing Strategies of Each company to attract Customers Now a days every companies playing strategies so as to attract customers and increase revenues and also customer base.Pent-up demand, attractive price points and economic stability propelled PC growth. PCs are acting as entertainment centres with TV functionality, supported by the digital sound experience and large screen displays

Some Of The Strategies They Are Playing

Vista and Office 2007 hit the market Microsoft has opened the doors for consumers to purchase its latest Operating System, Windows Vista, and Office 2007 with a grand launch across 70 countries. Microsoft released the latest version of its operating system Windows Vista and Office 2007 for corporate customers in November 2006. Now it has launched the software for the masses, i.e. non corporate consumers. The consumer launch took place on 30th January across 70 countries. Windows Vista is the first major Windows launch by Microsoft since the launch of Windows XP in 2001. These products are launched to wow customers with features like enhanced security, better search, improved parental control and an all new
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interface. According to Ravi Venkatesan, Chairman, Microsoft India, This is the launch of the decade for Microsoft and the biggest for us in India, with the design of this product we have dealt with the security issues. In India, OEMs including COMPAQ, HP, Lenovo, Sahara, Wipro and Zenith are launching Vista compatible PCs. Windows Vista and Office 2007 will be made available to the public in several editions. The consumer editions are Windows Vista Ultimate, Windows Vista Home Premium, Windows Vista Home Basic and Windows Vista Starter. Vista is being shipped in 18 languages including Hindi. Extending the Indian language support, Microsoft will have 13 more Indian languages including Telugu and Marathi and support for these is expected by early 2008. Office 2007 comes in two consumer editionsOffice Home & Student 2007 and Office Basic 2007.

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On the commercial front, Munglani feels that decision cycles are still slow, but there is a definite increase in queries and tenders. He feels that government funded projects need to increase, and points to the recent Andhra Pradesh schools project, which pulled in more than 5,000 units, as a good example of what government enthusiasm for IT can do.In conclusion, going by what the industry feels and what the numbers reveal, recovery is definitely taking place in the industry, though caution is still the prevailing sentiment. However, the bottom line is that the days of super growth seem to be over. While IDC has predicted 22.3 percent growth in 2003, not everyone in the industry seems to be ready to join in the chorus. HPs Sai Chandrasekhar says that their assessment is an expectation of 10-15 percent growth, which he feels is very realistic. It is unlikely that the market will return to the heady days of 30 percent growth, he explains. Kochhar of Skoch seconds that when he says, We can no longer look at heady growth rates like 40 percent or 60 percent...the market has been growing more in single digit to low two digit growth rates.
And that seems to be the future that Indias PC brigade faces-but well, surely even low two digit growth rates are better than negative growth, and thats the reason for the cautious smiles on the faces of PC vendors. Hopefully, the next quarter will bring even broader smiles.

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38

HCL Compaq

8.4% 7.9% 57.5% 7.0%

Zenith IBM Acer Hewlett-Packard

4.2% Wipro 3.7% 1.0% 1.6% 3.5% 1.9% 3.3%

Vintron Siemens Nixdorf Dell Others*

From the above graph it is clear that in Indian Hardware Industry the COMPAQ share is highest in all branded companies. But still very high portion about 57.5% is in favour of unbranded local companies, which is still a challenge towards all.

The share of the unorganised sector has been falling steadily with the fall in price of branded PCs. A recent phenomenon has been the increasing

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share of Tier 2 towns and cities in the PC sales thereby indicating increased PC penetration into the hinterland. Sales of notebooks have averaged around 50,000 in the past two years. Printers have been traditionally the fastest growing segment of the PC peripherals market. Even when PC sales were increasing by 39%, printer sales increased by 41%. The slowdown affected printer sales too and in 2001-02, the increase was just 1%. In that year, 836,122 printers were sold and that included inkjet, laser and dot matrix. The momentum is expected to pick up in 2002-03 and the printer market would grow at 8% to reach 900,000 printers. Due to falling prices, Laser printer sales are growing fastest. In future, COMPAQs hardware sales to the institutional segment are likely to remain stable, with sustained hardware spending by all the verticals, especially the banking and financial services sector. Besides, in retail hardware sales, a continued reduction of price points, facilitated in part by the recent reduction in excise duties on PCs, is likely to reduce the price advantage of the small assemblers, and augur well for branded PC manufacturers like COMPAQ. In the medium term, COMPAQs margins, despite its sales tax advantages, may be affected by the likely removal of duty protection on manufactured PCs from the year 2005. With imported PCs becoming cheaper, it may be critical for COMPAQ to establish an alternate supply chain based on imports of finished PCs. Nonetheless, its financial risks are mitigated by its low gearing, substantial liquid investments and unutilised working capital limits.

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IDC declared its numbers for the Indian PC market for financial year 2005-06 today. The year recorded an impressive growth in terms of unit shipments - the market grew 30% over financial year 2004-05 to exceed the 4.6 million-mark, according to IDC's India Quarterly PC Market Tracker, 1Q 2006, May 2006 preliminary release.

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REVISITING THE LOW-COST LAPTOP MARKET A computer at nearly one-third of current prices is a dream for most Indians. And yet, buyers are not holding their breath for these devices. For experience has proved that expectations are seldom met. However, this time around, those propagating low-cost computing solutions have taken a different route. Chris Ann Fichardo elaborates on the difference . The buzz is in the air again. PC manufacturers are excited. Users are expectant. Even institutions like the IITs are enthusiastic. The reason: Indias dream of an affordable PC (priced below Rs 10,000) is ready to hit the market. For nearly a decade this dream has struggled to become a reality. India Inc. has made many noteworthy attempts in the past to introduce low-cost computing solutions, but in vain. Be it Wipros Janata PC, iNabling Technologies e-mail device, iStation, or the much-talked about handheld device, the Simputerall brilliant concepts that have not quite made it commercially yet. The company netcore is doing groundbreaking work to make possible the Rs 5,000 PC (5KPC), says that if the price point of a PC comes down between Rs 5,000 to 10,000 per user, India has the ability to absorb 10-20 million PCs a year for the next several years. This potential gains further

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significance when one realises that the present market size is just two million PCs a year! In the last 20 years the installed base has barely crossed six million PCs in India. According to Richard Brown, director for International Marketing at VIA attributes this sudden interest by vendors to the "real growth potential" of the low-cost PC market. "I remember five to seven years ago when the first $1,000 PC appeared (introduced by Compaq), people wondered if the price point was for real. And since then there has been a continuous push down in the price points for PCs, which is a sign of commoditisation of the industry. For a long time the industry has resisted moving to lower price points, and now they are actually seeing that there is demand in that space and they are buying into it," he says.

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CHANGING TRENDS IN LAPTOP MARKET

With prices of laptops being slashed, the education sector is expected to see a high demand for laptops. Consumers are shifting their focus of laptop computing from an average system to one that is closer to a high-end system and upwards. The need for the most powerful multimedia laptops is increasing. Linux might gain ground in the government and defence sectors. Customers, both in the consumer as well as in the commercial space will demand better service levels from vendors.

Service and support is going to be a critical aspect of vendor strategy. Depreciation period of IT products should be reduced to further boost

growth. The laptop space will see more and more entertainment-oriented features getting integrated into the normal PC.

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The enterprise space will witness more stress on security, TCO, manageability and multiple levels of redundancy, among others Companies, which will offer affordable innovation will gain market

share.

Unicode will drive laptop penetration into rural markets SME will continue to be a major segment. The industry has standardised on 80 GB HDDs.

Trends Expected In 2009

In the future, with more duty cuts expected, analysts believe branded laptop players will gain further against assembled players. Retail may get a renewed thrust. Observes Raj Saraf, Chairman and Managing Director, Zenith Computers, We have1300 retail outlets today, which we hope to grow to 15000 by the end of 2009. While vendors are bundling in Linux to bring down costs, analysts see desktop Linux confined to the government and education sector. Linux on the desktop is unlikely to make inroads in the enterprise. Prices of computers have been falling rapidly, but vendors do not think prices of laptops will fall significantly in 2009.

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While 2007 saw strong demand emerging from select sectors such as the government and BPO outfits, 2008 could be relatively flat as most BPO firms are in the process of consolidation and not growth.

LAPTOP MARKET: TOP TRENDS Laptop market revival may happen in second half of this year. Post-Budget laptop prices will remain constant or rise marginally. Indian brands will survive, but they need to decide on an unambiguous competitive pitch. Thrust into the B & C class towns will be aggressive, by Indian and MNC players alike. The notebook market will show significant gains in 2002-03. If you want to know what the future holds for the Indian PC industry, the one fact you cannot afford to ignore is the current slowdown not just falling growth, or a gentle trough, but the horrible spectre of negative growth. The near panic the industry witnessed in the wake of this terrible time was reflected in the price slashes and bundling offers anything to kick start stagnating sales graphs was acceptable. And that took the laptop to almost commodity status in India. But then, thats history. And in business, history is not what sells; promises of a rosier future do. According to industry association MAITs president Vinnie Mehta, sales have picked up in the JFM quarter, which is traditionally a high sales quarter, and as of now, theyre hoping that this will be a sustained phenomenon in spite of a lacklustre Budget that did almost nothing to push up demand for laptops.

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PRICES DO AN ABOUT-TURN
Immediately after this years Budget, most laptop vendors said laptop prices would remain constant, and some even pointed out that prices would rise, thanks to increasing memory prices. That should be one of the key differentiators between last year and the financial year ahead laptop prices are not likely to come down, and in all probability, will actually see marginal rises. Says Vasu Srinivas of IDC India, While the initial response to the slowdown was to slash prices, when it began to hurt, laptop vendors began to take a profitability approach. They are now seeking out the more profitable deals and aiming for better prices with lower volumes. Another factor that will contribute to stable prices is the move by the big distributors to cut credit periods down the line from 30 to 15 days. This move, coming in the wake of big defaults among IT channels, will discourage speculative and rash pricing and margin policies that result in price wars the industry can ill afford.

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TRIUMPH OF THE MNC BRIGADE

In recent times, one of the most important trends in the Indian laptop business is the sight of MNC vendors turning leaders. Yes, COMPAQ Infosystems, the leader in the desktop segment, is as Indian as they come, and the companys leadership position seems in no immediate danger, but its not insurmountable either. All it will take is the HP-Compaq deal going through in the United States, and COMPAQ will become No 2 to an MNC behemoth that will then control almost double of COMPAQs market share, which currently stands at 8.6 percent, according to George Paul, head-marketing, COMPAQ Infosystems. While everyone admits that the market share of MNC brands has gone up, and mostly at the expense of Indian brands, this issue generates a lot of heat and passionate arguments.

BIG BUYERS MATTER

While the move to B & C class cities attracted attention, the biggest buyers of PCs pretty much remained constant, and theyre expected to continue to be the saviours of the beleaguered PC industry this year too. The honours go to the government both at the Centre and the states, and the banking and

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financial sector mainly PSU banks. Another segment expected to contribute significantly to laptop buying this year is the telecom sector.

OUTLOOK
When will the good times start rolling again? The pundits have differing opinions. IDC India says the laptop industry is expected to grow by 5.1 percent in 2002, and adds that laptop buying is expected to revive in 2003, when a growth rate of 20 percent is forecasted. Kochhar of Skoch says this year will see some revival, though he warns that heady growth rates will not return without policy measures like 100 percent depreciation from the government. MAIT is hoping that the slight upturn in the JFM quarter is a portend of things to come, even though it revised industry sales projections for 2001-02 downwards from 2.45 million units to 1.65 million units.

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THE DECISION MAKING PROCESS

Decision makers, who are used to depending on their past experiences, must make decisions and take actions in the rapidly changing world we face today. In this turbulent environment, the ability to successfully view the current situation through the traditional "good judgment" viewpoint is weakened through increasing external noise (a multitude of information sources on multiple topics) and changing.

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STRENGTHS:
a) Global Presence: Its collaborations and joint ventures with international companies such as Perot System, and partnership with world leaders like Ericsson, Toshiba, Nokia, Oracle and Microsoft, enable it to bring the best technology available world wide to its consumers. 24 locations in 16 countries. Fast paced and flexible work culture which provides its employees autonomy to accomplish the task without much pressure from the higher authorities. Thus, employees are motivated to give their best to the organization. The core strength of COMPAQ is the talent and innovativeness of its people which enables it to provide the right solution at the right time. The mass markets handled through a chain of dealers, resellers and retailers which helps bring technology usage closer to the individual. It has very strong distribution network. Its pool of competencies : Hardware, Software, Training, Networking, Telecom and System Integration. Ability to understand customer's business and offer right technology. Long standing relationship with customers. Pan India support & service infrastructure. Best-value-for-money offerings.

b)

c) d) e) f) g) h) i)

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WEAKNESSES:
a) b) After sales service. Less promotional campaigns.

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OPPORTUNITIES:
a) b) c) d) e) IT industry booming at a rate of 45% every year. Increasing consumer awareness about IT and its use. Tremendous untapped potential of IT products in India. Increasing competition. Tie ups with various MNCs enable to extract their core competencies.

THREATS:
a) b) c) d) Local assemblers are biggest menace for the company. Entry of MNCs i.e. IBM, Compaq giving direct competition. Govt. instability has a long term repercussions affecting companys policies & its growth. Technological shift as a result of research & development. Daily new technologies are emerging. Concluding the S.W.O.T. analysis in words that prosperity lies ahead for COMPAQ. In order to retain its position as Indias No. 1 IT conglomerate, it has to come out with the state of art as well as futuristic technologies to its consumers well before time.

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FINDINGS & LIMITATIONS

Every project has some limitations even the researcher came across some limitations while working on the project which made the analysis a little inappropriate at times. Some of the basic limitations faced during the research are listed below: Only limited number of authorized, companies and other areas where it has been found 55 players was covered in the study. Most of the research was based on cold calls, so then visited many places i.e. authorized and local areas and where it had not responded much. There was a bias on the part of the respondents. Companies that were contacted through telephone at times did not give correct information to the researcher. The IT manager or the person heading the IT Department did not have the rights to give the authorized official information to people other then the members of the official itself and the high officials. At times there was a problem of non response from the hospitals, companies and other authorized and unauthorized areas which affected the result of the project being done by the researcher.

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 COMPAQ is having large number of channel partners but it is not

supporting & taking care all of them equally which results in increasing discontentment among new channel partners because its not possible for company to support all of them equally. Company should take some positive action against it.

Company executive should visit dealers on regular basis. 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.

Need to expend customer care

center

as the consumer base of

COMPAQ is increasing with tremendously fast pace.

Proper attention should be paid for advertisement planning otherwise it

may lead to problem for dealer as well as for company. 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.

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CONCLUSION
Marketing is a very crucial activity in every business organization. Every product produced within an industry has to be marketed other wise it will remain as unsold stock, which will be of no value. I have realized this fact after completion of my summer training project. Despite of various difficulties and limitations faced during my summer training project on the topic MARKET SHARE OF COMPAQ LAPTOPS. I have tried my level best to find out the most relevant information for the organization to complete the assignment that was given to me. After completion of my summer training project I have gained several experiences in the field or sales marketing. I have got the opportunity to meet various people, which fluctuate in different situation and time. This summer training project has given me the opportunity to have first experience in the corporate world. Theoretical knowledge of a person remains dormant until it is used and tested in the practical life. This market survey has given to me the chance to apply my theoretical knowledge that I have acquired in my classroom to the real business world. I have completed my market survey project in which are involved in its successful completion. In spite of few limitations and hindrance in the market survey project I found that the work was a challenge and fruitful. It gives enough knowledge about the laptop market and the distribution process undertaken by an organization.

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QUESTIONNAIRE
Name ____________________________________ Designation ____________________________________ Address ____________________________________ Contact No. ____________________________________

1. Do you use laptop for your business purpose? a.) Yes b.) No 2. What type of laptop do you use? a.) Branded b.) Assembled 3. What brand of laptops do you use? a.) HP b.) COMPAQ c.) ACER d.) Others 4. What is the number of installed desktops? a.) <15 b.) 15-50 c.) 50-75 d.) 75-200 e.) 200-500

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5. What is the number of used servers? a.) 1 b.) 2 c.) 3-5 d.) >5 6. What is the number of installed laptops? a.) 1-5 b.) 5-15 c.) 15-30 d.) >30 7. What is the brand used for laptops? a.) COMPAQ b.) Toshiba c.) Lenovo d.) Others

8. Are you facing any problem with current used product line? a.) Yes b.) No c.) Not yet 11. How do you find the COMPAQ products? a.) OK b.) Good c.) Satisfactory d.) Outstanding e.) Not tried yet 12. Do you want to know more about COMPAQ products? a.) Yes b.) No

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BIBLIOGRAPHY
BOOK: AUTHOR: TITLE: PLACE OF PUBLICATION: PUBLISHER: PHILIP-KOTLER Marketing Management Delhi Tata McGraw, Hills Publishing co. ltd.

MAGAZINES / JOURNALS / NEWSPAPERS: Business World Business Today The Times of India

WEBSITES: www.Compaq.com www.google.com www.hp.com www.saharacomputer.com

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 www.dell.com

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