INTRODUCTION

IT industry can be segmented into hardware, software, and training. Hardware has little synergy with software and very few companies are engaged in both activities. Even where hardware companies provide total solution, software is typically off the shelf software developed by specialized software companies. IBMs acquisition of lotus is one of the few exceptions to this case. Characteristics and market requirement of both the segments are vastly different. Software and training have a unique, but limited synergy between themselves. Training provides software development helps to develop better training inputs. It is therefore quite common to find a single company offering software services/products and training.

HARDWARE

Computer Hardware Company further segmented into Complete systems like mainframes, workstations, personal computer etc. Peripherals like printer, modem, TV tuners, digitizer etc., and Consumables like cables, wires, switches etc.

Mostly hardware is solid like a commodity there is very little differentiation in terms of capabilities and performance. No single company manufactures the entire system on its own. Each company produces one or two basic parts, which are assembled together and solid as a

complete system. Several regions/ companies have emerged as leaders for various products. Examples are Intel for microprocessor chips, Malaysian and Taiwanese companies for printed circuit boards and other electronic parts and so on.

SOFTWARE
Software industry can be segregated into services and products. Services would include body shopping, data processing, programming services etc where revenue is generated on the basis of time spent (time & material) or on the basis of negotiated contract price (fixed price). Software products could be niche products or mass-market productssystems software, and application software.

TRAINING
The domestic training segment has a fairly large number of scattered players. However, the top two (NIIT & APTECH) control around 70% of the market, which is estimated at around Rs.9.1bn. revenues are seasonal in nature, as 90% of it comes from individual training, and enrollment peaks during summer vacations. The key to profits is reducing idle time of computers and tutors, which is generally around 25-30%. Training institutes are perceived as high priced of low quality (barring a few top players). In spite of this, the segment grew by 38% in FY99, driving by emerging career opportunities for highend software packages and increasing penetration of computers.

PERSONNEL COMPUTER
With IBM selling off its PC business, the world PC market is headed for a major shake-up. Chinas Lenovo Group, which bought the business from IBM for $1.25 billion plus assuming $500 million IBM debt, with this single move, is set to become the worlds third largest PC maker. IBMs selling off of the PC business to concentrate on services and support marks the end of an era, as it was Big Blue, which pioneered the PC movement.

Who made the first PC?

Though some computers were made before IBMs personal computer, it was the latter which made the device an item for mass consumption. According to a Reuters report, the MITS Altar was introduced in the January 1975 issue of Popular Electronics as a home Construction kit. But is caught the fancy of hobbyists who began building rudimentary "home computers. In 1976, Steve Wozniak and Steve Jobs introduce Apple I, which was an open circuit board bolted together in a wooden case and which reportedly sold for $666.66. Apple Computer was incorporated the following year.

It was in 1981 that IBM unveiled the personal computer, the IBM-PC model 5150. It was this machine that helped set the standard for personal computers and went on sale on a mass scale. That same year, British technical publisher Adam Observe introduced the first popular "portable computer" weighing 23.5 pounds that came pre-installed with a bundle of software. However, the company went bankrupt in 1983.

In 1982, Compaq was founded and it introduced the Compaq Portable, the first IBMcompatible PC, a 28-pound machine the size of a sewing machine. In 1982 again, typewriter-maker Olivetti of Italy introduced its first personal computer, the M20. In 1983, Michael Dell, a first-year student in the University of Texas, founded Dell Computer in his college dormitory room.

What is the state of the world PC market today?

IDC forecasts say that worldwide PC shipments will grow by 10.1 per cent to 195.1 million in 2005, a year in which the global economy is expected to face a slowdown. That compares with a growth expected to come in at 14.5 per cent this year with a shipment forecast of 177.2 million units. The growth rate was 11.9 per cent in 2003 and 1.9 per cent in 2002. That sector is expected to post 11.3 per cent growth in PC shipments next year

compared with consumer growth rates of eight per cent worldwide and just 5.1 per cent in the United States. In the third quarter, growth in worldwide consumer PC shipments slipped to less than eight per cent, down from a peak of more than 25 per cent in the year-ago quarter.Garter forecasts PC unit growth to average 5.7 per cent annually from 2006through 2008, compared with average growth of 11.3 per cent from 2003 through 2005.

INDUSTRY PROFILE
The Indian PC market has three tiered structure multinational companies, domestic vendors and the local assemblers. The assembled PCs dominate the market with volume market share of 50% and rest of the shares taken by MNC & Domestic vendors.

What is the state of the world PC market today?

IDC forecasts say that worldwide PC shipments will grow by 10.1 per cent to 195.1 million in 2005, a year in which the global economy is expected to face a slowdown. That compares with a growth expected to come in at 14.5 per cent this year with a shipment forecast of 177.2 million units. The growth rate was 11.9 per cent in 2003 and 1.9 per cent in 2002. That sector is expected to post 11.3 per cent growth in PC shipments next year compared with consumer growth rates of eight per cent worldwide and just 5.1 per cent in the United States. In the third quarter, growth in worldwide consumer PC shipments slipped to less than eight per cent, down from a peak of more than 25 per cent in the year-ago quarter. Garter forecast PC unit growth to average 5.7 per cent annually from 2006 through 2008, compared with average growth of 11.3 per cent from 2003 through 2005.

What is the state of the Indian PC market?

A PTI report quoting IDC India says that the Indian PC market grew by an impressive 32 per cent in the first half of fiscal 2004-05 as compared to 18 per cent during the corresponding period last year with HP topping the list with 15 per cent market share, according to IT research firm IDC India. The total shipments inclusive of all form factors (desktops, notebooks and x86 servers) stood at 17 lakhs units in the first six months of the current fiscal as against 13 lakh units during the same period in the previous year.

The overall top five vendor rankings remained unchanged in first six months of 2004-05 as compared to the first half of the previous fiscal, with HP maintaining the leadership position with 15 per cent share of the total unit shipments in the market. HCL followed with 12 per cent share while IBM was at the third position with eight per cent. Dell and Zenith rounded out the top five in that order. Total desktop shipments in the first half stood at 16 lakh units, up by 29 per cent year-onyear. Consumer desktop shipments posted an impressive performance, growing faster at 31 per cent, as compared to commercial desktops that grew by 27 per cent during the period. Things are only likely to get better once the WTO regime is introduced in India in early 2005, according to the PTI report. Though a wait-and-see approach in purchases is likely to result in a softer second half in anticipation of the WTO regime implementation, strong activity will drive the PC market upward in 2005-06.

Why did IBM sell its PC business?

IBM had good reasons to exit the PC business. The company, says an AP report, had out source most of its manufacturing years ago, selling the last PC plants it owned alone in 2003. Since their introduction, its PCs used a Microsoft operating system and Intel chips. The only thing that made them unique was their design, and that wasn't enough to let IBM set above-market prices. IBM CEO Sam Palmisano said in e-mail to employees that IBM was getting out of the PC business because it had become too much like consumer

electronics, which relies heavily on individual consumers and depends on economies of scale. Taking PCs off the books will be a huge benefit to their profitability, Promisel said of IBM Returns for IBM's PC business are at the low end of the industry, the AP report quoted Morgan Stanley analyst Rebecca Rankle.According to Goldman Sachs, IBM's PC business is projected to have a pretax profit margin of 0.5 per cent in the third quarter of the company's 2005 fiscal year. Most grocery chains, which set the standard for low margins, do better than that, points out a report.

Is the IBM-Lenovo deal the first major case in the global PC market?
No. The churn in the PC industry had begun quite sometime back as a number of players emerged in the global market. Analysts expect consolidation to be the name of the game in this industry. In 1994, Commodore, a PC maker since the late 1970s, filed for bankruptcy. In 1996, another PC maker, Digital Equipment Corporation (DEC) exited the consumer desktop PC market. That same year, Packard Bell Electronics merged with Zenith Data Systems, a part of a $650-million deal with NEC of Japan and Groupe Bull of France. Once the No. 2 maker of PCs for the US consumer market, Packard Bell dropped out in 1999. It remains a major brand in Europe, according to a Reuters report. Two years later, in 1998, Compaq acquired DEC. But it soon discontinued with DEC PC lines in favor of Compaq models. In 2002, HP acquired Compaq itself after a vigorous shareholder battle.

And, earlier this year, Gateway acquired machines in a deal valued at $266 million in cash and stock. According to a Reuters report, IBM's exit from the PC hardware sector will step up pressure on Toshiba, the sixth-biggest personal computer maker, to lower its computer division's costs or jettison the unprofitable business, analysts said. The Japanese firm 7

was struggling to turn around the division even before IBM announced the sale of its PC operation to China's largest computer company, Lenovo Group. However, some industry watchers believe Toshiba, ranked third by laptop sales, could benefit if IBM's "ThinkPad" range of portables loses its luster under Lenovo's ownership. According to another Reuters report from Seattle, Hewlett-Packard will also be under pressure to sell its personal computer business after IBM's decision but analysts said the No. 2 computer maker would hold on to its $25-billion PC division for now. HP is now on the spot to show why their PC business is a strategic part of the company,'' said Martin Reynolds, analyst at Gartner Research.

So, who leads the world PC market now?

According to Gartner, Dell is the leader in PCs globally as of now. In the period from January to September 2004, it had 16.4 per cent of the global market. Hewlett-Packard comes second with a share of 13.9 per cent. Till its deal with Lenovo is completed, IBM stands third with 5.2 per cent. It was once the leader. And now, it has only 5.2 per cent of the market. Following IBM are Joannes Fujitsu/Fujitsu Simons (3.8 per cent), Taiwans Acer (3.2 per cent), Toshiba (3.2 per cent), NEC (2.6 per cent), Gateway (2.2 per cent), Lenovo (two per cent) and Apple (1.9 per cent). After having signed the IBM deal, Lenovo is now poised to take up the third slot.

Table-1 PC Market Shares 2004-2005

MARKET SHARE ASSEMBLER MNC BRAND INDIAN BRANDS 50% 30% 20%

MARKET SHARE OF TOP FIVE PLAYERS IN THE PC MARKET

TOP VENDORS HP HCL IBM ZENITH DELL OTHERS (PIE-CHART 1) MARKET SHARE 15% 12% 8% 5% 4% 6%

MARKET SHARE OF TOP FIVE PLAYERS IN PC MARKET HP HCL IBM ZENITH DELL OTHERS ASSEMBLERS

KEY PLAYERS IN THE INDUSTRY

Zenith computers ltdMr.Rajkumar Saraf has promoted zenith Computers Ltd. & Zenith Infotech Ltd. Zenith was marginally behind HCL in the home segment with the market share of 5% as compared to HCLs 12.0%. Zenith has always sold on the platform of price. Its tagline MNC quality, Indian prices targets buyers who are price sensitive but are looking for reliable, branded PC. Thus, it is operating in the narrow price band between assembled PCs and lower end brands. Zenith manages to keep its prices low by controlling overheads & manufacturing costs and having shot term purchase plan for components, which gives it more flexibility and better rates.

HP & COMPAQ INDIA

In 1993, vector was the first foreign PC to be marketed in India. However, its JV HCL ran into trouble and HP reentered the Indian PC market in early 1998. By that time, IBM and Compaq had entered and established their brands at the premium end. HP immediately made a dent into the market through its attractive priced PCs bundled with peripherals. Since then, both HP and Compaq have been engaged in a relent less price war to woo the homebuyer. According to IDC, HP had moved up to be the NO.2 brand behind HCL in 2001. In 2002 HP had merge up with Compaq India. Now the HP and Compaq is the same company producing the PC, s. But HP has different unit for peripherals.

COMPAQ, the worlds largest seller of PCs entered India in 1994. Initially, the
commercial segment (large corporations, government, educational & research institutions) was its main target segment. But with recession in the economy in mid 1990s and consequent slashing of IT budget of corporate, it turned its attention to the home segment. However, it soon it realized that its PCs although perceived well on reliability and quality, were considered too expensive. The assemblers and Indian brands were cornering a major chunk of the market. It slashed prices of its sub brand Presario from

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65000 to 50000 to penetrate into the price conscious Indian households. At the same time, Compaq is aggressively going after corporate segment by offering a range of product tailored around services to meet specific needs. Its merger with digital equipment further strengthened its in high end server market. Now HP+COMPAQ is the top vendor in terms of value-15% of the market, far ahead of HCLs 12%. Compaq has more then 200 retail stores in 60 cities.

IBM INDIA
IBM reentered through a joint venture with Tatas. However, two split in 1999 to chart separate paths in 1999. IBM has concentrated on being a solution provider to medium and large business unlike HP COMPAQ who are vigorously chasing the household buyer. In 2000, it had a value share of 7.7%. This can be attributed to its high products. In portables, it was the second largest selling brand after Compaq. IBM has manufacturing base in Pondicherry, which it intends to use as an export hub. It has more then 200 dealers in 48 cities.

ASSEMBLERS
Having the market share of 50% assemblers are the greatest competitors of HCL. The assemblers dominance can be attributed to their lower price as compared to the branded players. A branded PC with better configuration will cost any thing between 25,000 and 30,000.While assembled PC with the same configuration can be obtained for 20,000 to 22,000. Its not big difference but Indian market is price conscious rather then quality conscious. Thats why assemblers enjoying the market but time are near when assembling market will goes down. The branded player find it difficult to match their price because of more man power and overhead cost and the duties they have to pay on components most of which are imported. In year 2001-2002 branded PC cost was around 40,000 to 50,000. but due to deduction in duties and taxes now the cost is near to assemblers.

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In 2000-2002 assembler had taken near about 58% market share. It is believed that many assemblers are able to price their PCs low by using the unofficial channel of imports, compromising the quality of inputs, evading excise duties and loading pirated software. Assemblers score over branded PCs on many other aspects too. They give choice and flexibility to end user in selecting a PC and its components, be it processors, hard disks, monitors, cabinets, keyboards & multimedia kits etc. the user get to choose

what is best suited for his requirement and budget. It is simple and inexpensive to upgrade the assembled machine while in case of branded one; one has to pay much more. Also, assemblers have advantage of interacting with clients

On a personal basis, which allows them to understand their requirement very clearly and fulfill them satisfactory. And, assemblers provides the satisfactory service to their customers then branded vendors They play the role of personal tutor to their customers by training them in the basics of PCs, there by building long term relationships. In fact, their entire business is promoted through word of mouth publicity and personal contacts.

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COMPANY PROFILE
HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. We have been in the forefront in introducing new technologies and solutions. In the early 70s a group of young and enthusiastic and ambitious technocrats embarked upon a venture that would make their vision of IT revolution in India a reality. Shiva Nadir and five of his colleagues got together and 1975 set up a new company MICROCOMP to start with; they started to capitalize on their marketing skills. Micro comp marketed calculators and with in a few month of starting operation, the company was out selling its major competitors. In 1976 Micro Comp approached UPSCE (Utter Pradesh State Electronic Corporation) for help to set up a computer company. Impressed by their marketing and technical competence, UPSCE agreed to set up a joint venture. On 11th August 1976 HINDUSTAN COMPUTERS LIMITED was incorporated as joint venture between the entrepreneurs and UPSCE, wit an initial equity of Rs.1.83 Lacs.The first suburban office was nothing more than a working space where the engineers managed to free up in a garage that belonged to one of the founding members. With perseverance, how ever, HCL broke even in its first month of doing business and the company began its long relationship with technology development .in 1978 the company built its first PPS8-based micro computer and by 1981 had graduated to building minicomputers based on bit slice architecture with PDP11 compatibility.

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Despite HCLs rapid success, the company faced many challenges in growing and expanding its business. Before long, the company was able to secure a better financial position for itself and opened two additional offices in Calcutta and Mumbai. After 8 years, HCL become the largest computer system and Services Company in India

By 1985, HCL was heavily involved in UNIX technology, including porting UNIX using the AT&T binaries. Unix add-on Product such as SORT and Checkpoint Restart were soon added to the companys technology developing portfolio. In 1987, HCL became involved with ARC Net-based LAN hardware and software. In 1990 saw the rise of software development services with in HCL, technologies with R&D division taking a lead role in providing those services, using the offshore development model. This resulted in the emergence of the HCL Technologies software factories and the geographic division as key corporate entity serving clients around the world .in addition, a tri partite structure emerged from which the three HCL group companies were born, including HCL Technologies, HCL Infosystems and NIIT. HCL Tech. expanded its sphere of influence through HCL Pert Systems, a joint venture with pert Systems Corporations, its wholly owned subsidiaries, the erstwhile HCL James Martin, inc. (Now renamed as intelligent) and its 100% Subsidiary, HCL COM net Systems & Services.

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POINTS TO PONDER
. Pioneers for the past 26 years in the IT space. . A Home-grow IT Powerhouse. . Leadership through Information Enabling.

The company forms the firm basis on its Key Strengths Vis, Relationship, Technology, Reach, Best support in the industry. The company has thrived for over two decades giving it a unique edge managing its relationship with stakeholders, employees, business and principals.

HCL leverage technology for leadership advantage by Giving the right technology at the right time. Having the ability to service & support technology. Having the domain knowledge of understanding a host of diverse technologies and the ability to put together a solution using a multitude of technologies.

How HCL achieved its Present State

1986 The company was established on 17th April. The object of the company is manufacturing of and leading in complete range of Mini Computers Micro processor based systems, Electronics Instruments, Micrographic and reprographic equipment and manufacturing and marketing of electronic EPABX systems and electronics TelePrompTers. 1989 The company entered into an agreement with Hewlett Packard of US for the sale and leaving of the Super Mini and Mainframe computers to be manufactured by Hewlett in India. The technical collaborator of the Company Hewlett-Packard is the

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second largest Computer Company in the world. It has some of the finest laboratories and manufacturing facilities in the world. In 1991, these two companies each a leader in its own field, decided to join hands. And soon after HCL HewlettPackard was launched. HCL Finance & Investments Ltd. is the subsidiary of the company. 1996 The performance was adversely affected due to rise in dollar exchange rate, tight liquidity position in the market, political uncertainty coupled with deferment of capital expenditure by the Government Departments. The Company set new industry standards with the launch of D and K class HP 9000 Business Servers complemented by J class HP 9000 Workstations, simultaneously with the world wide launch of these products by Hewlett-Packard Co. The Company also recently announced the introduction of the most powerful Workstations in the world based on the latest 64-bit processors from Hewlett-Packard the PA-8000. The Department of Electronics (DOE), the nodal department of the Government of India for development of electronics industry awarded the First Prize to the Company in the area of computer systems, as a part of the prestigious DoE award of Excellence. 1997 The Company commissioned its second state-of-the-art manufacturing facility at Sedarpet near Pondichery. The Company has the largest network of spare-stocking locations, supported by Test and Repair Centers, which reduces the inventory level and increases the spare availability at any time. To meet critical requirements within 4-5 hours, the company has tied-up with Indian Airlines to deliver spares in major metro cities. The Company has the best skilled manpower created through years of Campus recruitment and training at In-house Training Centers and by providing Management Training in the best Management Institutes. The Company set new industry standards by launching the most powerful Workstations and Servers in the world based on the latest 64-bit microprocessors from Hewlett-Packard - the PA8000.The Company further extended its indigenous Infiniti range of business computing products as it introduced the Enterprise Class Infiniti Super Server and 16

the Infiniti ELS range of workgroup servers. Mr. Suresh Rajpal, Director, Mr. Manuel F. Diaz, Director and Mr. Bob Robertson, Alternate Director, resigned from the Board of Directors of the Company w.f. 25th September. 1998 The Company tied-up with Intel Corporation for Server technology, resulting in the introduction of the Infiniti Global Line range of PC Servers which incorporate building blocks from Intel and are integrated and tested extensively for Indian condition. 1999 The Board of Directors unanimously appointed Mr.Ajay Chowdhry as Chairman and Chief Executive Officer with effect from 5th November. The Company launched its WWW.OW! Initiative targeted at the internet market with a range of services from providing complete infrastructure to ISPs, to corporate Intranets, Cybercafes, Infokiosks and E-Commerce. The Office Automation division has recently launched digital copiers and multifunctional products from Toshiba and opened service centers to cater to the increasing number of walk-in customers for service of Nokia cellular phones The Company tied up with Lucent Technologies as an integration partner for its SYSTIMAX range of structured connectivity solutions. The Office Automation Division has entered into a relationship with Samsung, Korea to market and support their range of Key Telephone Systems. The Office Automation Division tied up with In Focus, USA, for marketing and supporting their range of LCD projectors. - The Frontline Division has tied up with Novell to become the largest Novell Authorized Support Center. The tie-up has been successfully implemented across five locations in the country. The Company tied-up with Microsoft Corp. for latest version of operating systems, resulting in launch of preloaded systems and beta testing for future technology and product like Windows 2000.

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2000 HCL has launched a new range of PCs (Ultimo and Elite models) under its Beanstalk range of PC's at its Pondicherry plant. The Company entered into an agreement with US-based In focus for distribution and technological support of the latter's data and video projection products in the country. HCL Infosystems Ltd. has launched the Nokia professional Center (NPC) in Chennai as part of the expansion programmed to open Nokia centers in India

which will enable customers to choose the right model and accessories suiting their life style. HCL Infiniti Internet start-up of HCL Infosystems, and media group, Asian Age, have set up a joint venture called Asian Age Infiniti. HCL Infosystems Ltd. has launched in India the Swedish major Ericson's Generation X Business communication too, "Next Call Center". The Office Automation Division of the company has been recognized for level 1 in business excellence. HCL Infosystems has launched HCL Beanstalk personal computers powered by Intel Pentium III 700 MHz processor for the home segment. HCL Infiniti Ltd., the Internet services subsidiary of HCL Infosystems, has tied up with UBS Publishers' Distributors Ltd., one of the largest distributors of books in the country, to sell books online through its soon-to-be-launched portal. - HCL Infosystems has entered into a tie-up with Broad Vision for providing personalized ebusiness applications to is clients.

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HCL Infiniti, the Internet subsidiary of HCL Infosystems, launched its business-toconsumer (B2C) horizontal portal, The preferential allotment of equity shares/Warrants up to 2% of the issued equity share capital of the company. HCL Infosystems Ltd., and Unisys, a US-based provider of e-business solutions, services, platforms and network infrastructure, have entered into an alliance for use of ES7000 range of servers and associated hardware and middleware storage solutions. HCL Infiniti, the new internet services subsidiary of HCL Infosystems, launched its value added internet services in Hyderabad, Ahmedabad, Bhopal, Coimbatore, Faridabad, Gurgaon, Jaipur, Noida, Pune and Thiruvananthapuram. HCL Infosystems Ltd. has implemented Broad Vision B2B Technology for East Lifestyle Corporation Pvt. Ltd., Singapore, a media and e-commerce corporation with interests in print, Internet, television within the timeframe of 50 days. FEC Infosystems Ltd., a subsidiary of HCL Infosystems Ltd., has implemented Broad Vision B2B technology for East Lifestyle Corporation. Ltd. Singapore, a media and ecommerce corporation. The Company has launched digital mail inserting systems -- 3 series desktop, 5 series tabletop and 8 series -- in collaboration with the US-based Pitney Bowes HCL Infosystems, a technology integration company, has bagged the award for the Top PC Vendor by at the Dataquest award ceremony. - The Company Introduced Channel Support Certification program. This ensures uniform quality of support across the country. HCL is the first Indian IT company to introduce this kind of certification program in India. The Company has introduced new products under Infiniti 2000, Infinite Global Line Servers, Busybee and Beanstalk. 2001 ICRA has assigned an `A1+' rating to the RS 50-crore enhanced commercial paper program of HCL Infosystems Ltd., indicating highest safety. 1,45,00,000

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No. Of equity shares of RS 10/- have been allotted at par, by the subsidiary HCL Infiniti Ltd. against RS 1450 Lac subscribed in the previous quarter. HCL Infosystems and Intel have jointly launched an e-business solutions program, targeting new market opportunities in segments such as Internet service providers, application service providers, banking and finance. HCL Infiniti Ld., the Internet services subsidiary of HCL Infosystems, has launched an authenticated payment gateway for its portal, www.hclinfinet.com, in association with Citibank to enable customers to carry out secure transactions online including buying Internet access. HCL Infosystems is setting up a managed offshore development center at its Noida software development facility for Stretch Systems -- the Singapore-based IT systems and technology developer. HCL Infosystems Ltd. launched a consumer friendly Internet appliance (IA) Ezeebee. HCL-Infosystems is entering the call center business. The company has tied up with US-based Strata soft to offer consultancy services to clients entering the call center business. Financial institutions hiked their stake in HCL Infosystems Ltd. to 7.51 per cent representing 23.9lakhs shares as on June 2001, from 4.64 per cent stake amounting to 14.7lakhs shares in the previous year. 2002 HCL Infosystems joins hands with Sun Microsystems India to provide end-to-end solutions to business. HCL Infosystems says it is the No.1 PC Co in India in 2001. HCL Tech restructures its treasury Investment portfolio. HCL Infosystems launches its 'Bean stalk CD surprise' to promote PC sales.

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HCL Infosystems introduces mailing system of Pitney Bowes, Office Right, the Digital mail finisher and post perfect and digital franking systems. HCL bags Toshiba gold Award for the second time for the overall copier sales and marketing performances. HCL Infosystems launches the Toshiba Portage 3500 series Tablet PC in the nation. 2003 HCL Info launches Dragon naturally speaking, the latest speech recognition software. HCL Infosystems receives the project to completely automate the Value Added Services (VAT) of Andhra Pradesh. HCL Info registers 245% growth in their net profit for Q4. The company has launched " HCL Beanstalk Media Center PC" The new product will offer user a single remote control device controlling music system, live television (including recording of TV programs), DVD player, radio and TV games on a personal computer with a keyboard. HCL provides technology for new police command center 2004 HCL Info forays into digital entertainment sector. HCL Infosystems has launched a new computer that will have multi-functional capability of a television, DVD, MP3 player, radio, gaming tool, Web browser and video recorder HCL touches one Lac milestone in desktop sales

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HCL Infosystems announced the launch of its new range of Infiniti Global Line 2700 series with Dual Intel Xenon processors promising to deliver faster speeds for enterprise applications

HCL Info launches new MP3 player HCL Info ties up with Union Bank Unveils 'RP2 System' a new technology which will ensure uninterrupted power supply to computers 2005 Launches Micro Balanced Technology Extended (BTX) Form Factor for desktops in India on February 10, 2005. HCL Info unveils PC for Rs.12, 990

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OBJECTIVE OF THE STUDY

1) TO know the factors which affects the behavior of the while purchasing the PC? 2) TO know the most preferable brand of the PC. 3) To know the reason for purchasing the PC. 4) To know the consumer perception regarding PC. 5) To know the competitors of HCL. 6) To analyze the product or services offered by HCL.

consumers

7) To analyze the demand of the product or services in the market. 8) To analyze the marketing tools that is used by the co. to sell its product. 9) To analyze the consumer behavior about the product offered. 10) To provide the latest schemes and offers that is offered by HCL to customers 11) To see the efficiency of the distributors of HCL.

12) To learn professional skills from the people working in the organization which will help in taking corrective decision in future.

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SOFTWARE LICENSES
HCL IS MARKET LEADER IN DESKTOP PC WITH ITS EZEEBEE PRODUCT HCL EZEEBEE DESKTOP CONFIGURATION 1) HCL EZEE BEE AMD SEMPRON 2200+
CONFIGURATION-128MB RAM, 40 GB HDD,52X CDROM, 1.44 MB FDD, INTERNET KEYBOARD, SCROOL MOUSE, LAN CARD, 15 DIGITAL COLOR MONITOR, LINUX PRELOADED, 100 HOUR INTERNET PACK, 1 YEAR WARRENTY. PRICE-16990+TAX

2)

HCL EZEEBEE INTEL CELERON

CONFIGURATION-256MB RAM, 40 GB HDD,52X CDROM, 1.44 MB FDD, INTERNET KEYBOARD, SCROOL MOUSE, LAN CARD, 17 DIGITAL COLOR MONITOR, LINUX PRELOADED, 100 HOUR INTERNET PACK, 1 YEAR WARRENTY. PRICE-21240+TAX

3)

HCL EZEEBEE AMD ATHLON 64 BIT 2800+

CONFIGURATION-128MB RAM, 40 GB HDD,52X CDRW, 1.44 MB FDD, INTERNET KEYBOARD, SCROOL MOUSE, LAN CARD, 17 DIGITAL COLOR MONITOR, LINUX PRELOADED, 100 HOUR INTERNET PACK, 1 YEAR WARRENTY. PRICE-20990+TA

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4)

HCL EZEEBEE INTEL PENTIUM 4 @ 2.26

CONFIGURATION-256MB RAM, 40 GB HDD,52X CDROM, 1.44 MB FDD, INTERNET KEYBOARD, SCROOL MOUSE, LAN CARD, 15 DIGITAL COLOR MONITOR, WIN XP HOME, 100 HOUR INTERNET PACK, 1 YEAR WARRENTY.
PRICE-21990+TAX

5)

HCL EZEEBEE INTEL PENTIUM 4 515 @ 2.93

INTEL 915 PLATFORM CONFIGURATION-256MB RAM, 40 GB SATA HDD,52X CDROM, 1.44 MB FDD, INTERNET KEYBOARD, SCROOL MOUSE, INTERNET MODEM+SPEAKERS, LAN CARD, 17 DIGITAL COLOR MONITOR, WIN XP HOME, 100 HOUR INTERNET PACK, 1 YEAR WARRENTY. PRICE-26740+TAX

6 HCL EZEEBEE INTEL PENTIUM 4 531 @ 3.0 915 PLATFORM

CONFIGURATION-256MB RAM, 80 GB SATA HDD,52X CDROM, 1.44 MB FDD, INTERNET KEYBOARD, SCROOL MOUSE, INTERNET MODEM+SPEAKERS, LAN CARD, 17 DIGITAL COLOR MONITOR, WIN XP HOME, 100 HOUR INTERNET PACK, 1 YEAR WARRENTY

PRICE-29490+Tax

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RESEARCH METHODOLOGY

In application of market research the research has to go through several steps or stages and these steps are following.

Step 1:-

Defining the Problem:

-Defining the problem is the most important part of the market research process, because wrong definition misdirects research. The type of the research to be carried out, the questions to be raised, and the sampling procedure to be followed and the data to be collected, all depend on the current understanding of the problem. HCL is having tough competition in the market with other players these players are assemblers and branded. There are many factors, which influence the buyer for purchasing the PC. A major step in the conduction of marketing research is the decision regarding the nature of research design we are selecting for the purpose of our study. The benefits of research design are that it evaluates clients need in terms of results and the analytical work on the gathered data that will convert it to useful findings for the management. The selection of a particular design depends on the causality of the variables involved. ** (Since we do not want to calculate any causality between any variables therefore descriptive design is preferable.) For the purpose of our study we intend to take up descriptive design.

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They cover research designs that are intended to produce accurate descriptions of variables relevant to the decision being faced, without demonstrating that some relationship exists between variables.

Decision makers very often choose or are willing to accept descriptive data, which would permit only inferences to be drawn about causation.

Here we are using cross-sectional design to produce a picture of the phenomena in which the decision maker is interested for example, the market shares of various firms, consumers brand images and consumption, consumer perception regarding PC

Step 2:- Develop the Research Plan:

The second stage of marketing research calls for developing the most efficient plan for gathering the needed information. Designing a research plan calls for decisions on the data sources, Research approaches, research instruments, sampling plan, and contact methods.

Research Approaches:
Primary data can be collected in five ways: Observation, Focus groups, Surveys, Behavioral-data, and Experiments.

Observation research:
Fresh data can be gathered by, observing the relevant actors and settings.

Focus group research: A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service, organization, or other 27

marketing entity. The moderator needs to be objective, knowledgeable on the issue, and skilled in-group dynamics. Participants are normally paid a small sum for attending. The meeting is typically held in pleasant surroundings and refreshments are served.

Survey research: Surveys are best suited for descriptive research. Companies undertake surveys to learn about people's knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in the general population. This approach best suited for project-research hence this method was adopted (survey-research) for the project work.

Behavioral Data:
Customers leave traces of their purchasing behavior in store scanning data, catalog purchase records, and customer data bases. Much can be learned by analyzing this data.

Experimental research:
The most scientifically valid research is experimental research. The purpose of experimental research is to capture cause- and-effect relationships by eliminating competing explanations of the observed findings. Data Sources: The researches can gather secondary data, primary data, or both. Secondary data are data that were collected for another purpose and already exit some-where. Primary data are gathered for specific purpose or for a specific research project. When the needed data do not exist or are dated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing research projects involve some primary data collection.

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Same is the case for our project as well. For the purpose of our study we have collected primary data in the form of (1) the datas nature and (2) its function in the ultimate interpretation and analysis.

Types of data
1. Demographic 2. Sociological 3. Psychographic 4. Behavioral Here we are going to analyze the opinions that how people perceive something what they believe about it and what those believes signify. The most potent form of opinions tends to be attitudes, which are mental sets of predispositions to act in some manner. Here in our project we intend to analyze the opinions and attitudes of the target population by using appropriate sample. So the data collected in our project is basically demographic and behavioral.

Communication approaches
In deciding on which of the several of communication means to choose, a researcher has much to consider a simple division of communication media into two broad types: observation and questioning. Also we will consider the matters of whether to use structure and disguise. From the point of view of our project we have selected the questioning method of communication with our selected respondents, and for that purpose we have drafted a questionnaire to quantify and evaluate the customer responses.

Questioning
In the majority of research problems, the required information can be gained only by asking for it. This is done mainly by interviewing, but also data maybe

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obtained through self-administered questionnaires distributed by mail and other ways. As explained earlier that we have selected the questionnaire method of data acquisition, therefore, we choose to draft the questionnaire having closed ended questions and that will help us quantify the results in an appropriate format.

Research instruments:
Marketing researchers have a choice of two main research instruments in collecting primary data: Questionnaires and mechanical devices.

Questionnaires:
A questionnaire consists of a set of questions presented to respondents for their answer. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested, and debugged before they are administered on a large scale. In preparing a questionnaire, the professional marketing researcher carefully chooses the questions and their form, wording, and sequence. The form of the question asked can influence the response. Marketing researchers distinguish

between closed-end and open-end questions. Closed-end questions-prespecify all the possible answer. Open end-questions provide answers that are easier to interpret and tabulate. Open-end questions often reveal more because they do not constrain respondents, answers. Finally, the questionnaire designer should exercise care in the wordings and sequencing of questions. The questionnaire should use simple, direct, unbiased

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wording and should be pretested with a sample of respondents before it is used. The lead question should attempt to create interest.

Mechanical instruments:
Mechanical devices are occasionally used in marketing research. One example is of Galvanometers used to measure the interest or emotions aroused by exposure to a specific and or picture.

QUESTIONNAIRE DESIGN

From basic aspects of measurement and meaning, we proceed to their application in designing the instruments for seeking and recording data. Data may be obtained by either observing or asking for them, and forms are needed for field use in observation and interviewing. The accuracy and relevancy of the data gathered depend heavily on the questionnaire.

FUNCTIONS OF QUESTIONNAIRES
A questionnaire is simply a formalized schedule to obtain and record specified and relevant information with tolerable accuracy and completeness. In other words, it directs the questioning process and promotes clear and proper recording.

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STEPS OF DEVELOPING A QUESTIONNAIRE

Determine the specific data to be sought.

Determine the interviewing process.

Evaluate the question content.

Determine response format.

Determine wording of the questions.

Determine questionnaire structure.

Determine the physical characteristics of the form.

Pretest

revise draft.

and final

We in our questionnaire have tried to evaluate buying pattern of our customer. Now, for major the consumer behavior we first, define what is consumer behavior means.

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CONSUMER BEHAVIOUR
CONSUMER BEHAVIOR- BASIC STRATEGY

It is a matter of wonder that why people behave the way they actually do in the market place. At times we are mystified by our own acts being unable to rationalize them. Innumerable questions constantly agitate the mind. For example, do advertisements lure us into buying the products advertised? Why people buy impulsively on some occasions, but in other instances act as careful shoppers? These questions and such other questions infact are of equal importance to the marketer. For example, if a marketer can unravel the consumer behavior what do they buy, how do they buy and so on he can orient his strategy around these answers. Such a marketer can acquire, serve, and retain the customers for life. Knowing the customer thus is very important. A study of consumer behavior, though not guaranteeing 100% success in the market place, raises the possibility of success. By studying the potential customer, marketer gains insight into the attitudes, interests, lifestyles, etc.of the target segment. It will help, for example a marketer to understand how westernized portrayal of women will be acceptable to the customers in say, a cosmetic ad. Thus, broadly speaking, consumer behavior study aims at identifying groups of consumers with similar life styles who are likely to behave in a similar manner when some product related news is communicated to them. Then a marketer can adopt effective strategies to reach them, and make an offer.

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DECISION MAKING PROCESS

When a prospective customer receives a marketing cue (product, price, promotion, and placement related) he undergoes a process of decision making. This decision making is conditioned by a variety of factors like personal, interpersonal, and nonpersonal factors. If the impact of these factors is positive, then the customer can decide to purchase else a purchase may not take place. The consumer decision-making model is an appropriate tool this time to present the real conditions in which the consumer decides to purchase. The all circumstances he goes through. This model represents that upon receiving a marketing stimulus a customer processes through the phenomenon of perception, learning, motivation, attituditional disposition, etc.

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CONSUMER DECISION MAKING MODEl

Socio Culture Factors Culture Demographics Social Class Reference Group Family Firms Marketing Mix Product Features Price Placement Psychological Factors Perception Learning Motivation Personality Attitudes

Target Customer

Do I need the product? More information? If yes, where from do I get more information? I should evaluate information? And I should finally decide on. Should I make a purchase? Or, should I position it for now? Reject all the choices? Purchase FEED BACK No Purchase

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CONSUMER PERCEPTION PROCESS

The consumer behavior cant be studied without knowing perception process of the respective customer. For example, a marketer uses advertising as a tool to influence a customer. The very first thing is to ensure that the target customer has the opportunity to see or hear an advertising message. This is to be ensured by using appropriate This task being accomplished, the next job for the advertiser is to create awareness (perception) about the advertised brand. But the mere awareness about the product is not enough. In order evaluate the alternative choice, and then settle on one, a consumer needs enough information about the brand: learning has to take place. This learning may induce a person to purchase a brand if he is motivated. The moment information processing starts prception, learning, and motivation occur.

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CONSUMER PERCEPTION PROCESS

Physical Data (Stimuli) Sponsored Advertisement Sales Promotion Displays Price Tags Non-Sponsored Media news Conversation A with others I O N Nonawareness (Ineffective message)

E V A L U

Physiological Screen (Sensory) -Sight -Hearing -Taste -Smell -Touch

Cognition (Awareness)

Psychological Screen (Emotional) Personality Self concept Belief and Attitude Learning and Habits

Perception Memory

Thus the first task of the marketer is to make a customer aware (perceive) the existence of his offer. Subsequently, the customer learns more about it, forms a positive attitude towards it, feels motivated to but it, and finally may land up purchasing it if other determining factors do not dictate his choice in some other direction. There are many small and big reasons, which directly or indirectly affect the buying behavior of the customer. The same effort has been done by me also to know the customers behavior regarding the personal computers. The behavior which I have observed during summer training period and have taken a responsibility to know more is really a factor which directly effect the sales of the computers.

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RESEARCH PROCESS
Sampling and determination of sample size Sampling Plan: After deciding on the research approach and instruments, the
marketing researcher must design a sampling plan. This plan calls for three decisions:

1.Sampling Unit: Who is to be surveyed? The marketing researcher must define

the target population that will be sampled. The target population for our survey were everyone aged between 18 to 50 years belonging to socio economy class middle lower, middle upper and upper class .Our sampling frame was Delhi.

2.Sample Size: How many people should be surveyed? Large samples give more
reliable results than small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. A total of 150 interviews were conducted in Delhi region in different locations.

3.Sampling procedure: How should the respondents be chosen? To obtain a

representative sample of the population, a probability sample of the population should be drawn. Probability Sampling allows the calculation of confidence limits for sampling error. Three types of probability sampling are described in following table, part A. When the cost or time involved in probability sampling is too high, marketing researchers will take Non probability sampling . Following table, part B, describes three types of non-probability sampling. Some marketing researchers feel that non-probability samples are very useful in many circumstances, even though they do not allow sampling error to be measured.

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A.)Probability Sample
Simple random sample - Every member of the population has an equal chance of selection. Stratified random sample - The population is divided into mutually exclusive group (such as age groups), and random samples are drawn from each group. Cluster (area) sample The population is divided into mutually exclusive groups

(such as city block), and the researchers draw a sample of the groups to interview.

B.)Non Probability sample

Convenience sample - The researcher selects the most accessible population member. Judgment sample - The researcher selects population members who are good prospects for accurate information. Quota sample - The researcher finds and interviews a prescribed number of people in each of several categories I have conducted the convenient sampling in different areas in Delhi region.

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Data source
To meet with consumers and asked to fill structured questionnaire and no secondary data was collected. Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment. Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.

Step 3: Collect the Information:

The data collection phase of marketing research is generally the most expensive and most prone to error. The information collected should be both accurate and relevant as per as the requirements of research project. Depending on the requirement, the researcher has to work out a suitable data collection method. Broadly data collection method can be classified into,

(a) Primary methods: when data is directly collected by a researcher, they are
known as primary methods e.g. interviews and questionnaires. (b)

Secondary methods: The data are termed secondary data when they were
not originally collected for use in the research project under consideration, they were collected rather for use by some other person or for some other project.

Step 4: Analyze the Information:

The next step in the marketing research process is to extract findings from the collected data. The researcher tabulates the data and develops frequency distributions. Averages and measures of dispersion are computed for the major

40

variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings.

Step 5: Present the findings:

As a last step of market research process, Results (findings) are extracted from the Analysis of information and are presented to the related party. The researcher should present major findings that are relevant to the major marketing decisions facing management. The findings should be written in a concise, simple and objective orientated language. For the purpose of our project, the analyses were conducted on the basis of following conditions. As we earlier suggested that we are going to categorize the scores into various intervals. Now as we have attached scores to all the parameters according to their importance .

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LIMITATIONS OF THE STUDY

The study is bond to come with some limitations and constraint, which made the Efficiency of the same and to some extent deviates it from its main line of thought. Though no stone was left unturned to make the study more precise, accurate and Relevant to the objective, yet there are some limitations and general problems, Which are not worthy to make study meaningful.

TIME:Due to the constraints, sampling was done and thus the final

Result could not be taken the final result could not be taken for

Granted and are subjected to fluctuations.

RESPONDENT:It is difficult to persuade someone Had to wait for long get reply.

Some of them are not co-operative

The main limit of the study is that there are a large number of customer and

Potential customers of the company. Reaching individual to all is a difficult and

Tidies task. So I had surveyed a small number of customers.

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ANALYSIS AND INTERPRETATION

Analysis is based on the responses, which I got from the different respondents. Each question has its own outcome and my result based on these outcomes. The analysis of the questionnaires is given below. PIE CHART-2

1.COMPARISION BETWEEN BRANDED & ASSEMBLED.

CONSUMERS WHO PURCHASE ASSEMBLED PC CONSUMERS WHO PURCHASE BRANDED PC

It has been found that branded PC has equal market with assembler PC. But, in previous years assembler were dominating the Indian PC market. But due to cutting the price by companies branded PC has been growing in the market. I have also observed that companies are highly indulged with the promotional activities as well as advertising to take grip on the market. Companies have tie up with different banks to provide easy finance schemes. Consumers are going for finance schemes to purchase the computers.

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PIE CHART-3

2. If we consider only branded players then the most preferable PCs are as follows.

HCL COMPAQ LG PCS ZENITH IBM OTHERS

HCL and Compaq is the most preferable PC used by the consumers. Both the brands is having a good image in the market. IBM is having 4% market share but IBM is good brand but due to its high prices its not more preferable by the Indian consumers. HCL & Compaq both is having 32% shares in branded PC market. After that comes zenith with 12% market. Zenith is also preferred by consumers because of its low price then others. PCS and LG also having 8% share in the market. There are also many players in branded segment like wipro, dell etc. are having 4% share.

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GRAPH-1 3. Factors, which are taken into consideration while purchasing the PC.

180 160 140 120 100 80 60 40 20 0

AL SE ITY R V SU ICE PP O R BR T A D IS N D C O U N T C O ST

Series1 Series2

TABLE-2
TOP 6 PREFERED FACTORS FOR PURCHASING THE PRODUCT COST QUALITY SERVICE SUPPORT BRAND DISCOUNT 160 145 140 130 80 75 1 2 3 4 5 6

Taking all the factors combined & assigning them some value according to their rank in preference it has been observed that cost & quality play equal roles whereas

Q U

45

support comes next followed by serviceability. brand comes on second last and finally comes discount. Study shows that while selecting a product for purchase cost plays the vital role in the Indian minds. Next factor that comes is quality followed by brand image. Discount also play role for purchasing the computer.

PIE CHART 4 4. Measure the need of the PC either for personal or official use

PERSONAL USE USE OFFICIAL

Indian consumers mainly purchase the computer for personal use. 80% consumer use the computer for personal use and rest of the use for official use.

GRAPH-2

46

5.Measure how do customer purchase the PC.

WAY OF PURCHASING THE PC 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FINANCE CASH WAY OF PURCHASING THE PC

It has been found that 90% consumer purchase the PC through cash and rest through the finance options. Consumers mainly opted for finance schemes but due to more documentation and hidden costs either they purchased the PC through case or they leave it for future.

GRAPH-3

47

FINANCE PURCHASE GIVEN BY PC VENDORS 35% 30% 25% 20% 15% 10% 5% 0%
L M PA Q ED C AS SE M BL ER H S

FINANCE PURCHASE GIVEN BY PC VENDORS

HCL gives the 30% finance purchase of total finance purchase HCL is providing the many finance schemes for consumers. HCL has tie up with U.B.I., ICICI and B.A.F.L. And providing the better opportunity of finance for the consumes. And 30% finance purchase goes to assemblers but it is mainly the self-finance by the consumers. And 20% finance goes to Compaq. Rest to others.

GRAPH-4

O
48

TH

6.Measure HOW DO CONSUMERS COME TO KNOW ABOUT PARTICULAR PC.

CONSUMER COME TO KNOW ABOUT PC THROGH VARIOUS FACTORS 60% 50% 40% 30% 20% 10% 0%
fri en ds en t ot io n rt i se m ex ec u tiv e

CONSUMER COME TO KNOW ABOUT PC THROGH VARIOUS FACTORS

ad ve

es

Consumers come to know about the PC through advertisements and after through relatives and friends, branded companies are mainly indulging with advertisements. For example HCLS 499 get the PC in just 499 RS. These are advertisements conducted by the HCL.Relatives and friends of the consumers also take the main part for choosing the PC.Sales promotion and sales executive comes in last.

GRAPH-5

re la tiv

sa le s

sa le s
49

pr om

&

7.Measure, WHICH BRAND IS THE BEST BRAND IN THE CONSUMERS MIND.

BEST BRAND OPTED BY CONSUMERS 50% 40% 30% 20% 10% 0%

Q EL L IB M C O M PA H D O TH ER S L

BEST BRAND OPTED BY CONSUMERS

HCL is the best brand according to consumers in the Delhi region. It is in top because of its lower price among good brands and its better quality. Compaq is on the second position because of its quality and brand name. Compaq is the big competitor of HCL. DELL comes on third position because of its brand name and its customization of the product according to the consumer need. IBM comes after DELL.

GRAPH-6 8.MEASURE THE POST PURCHASE PROBLEM IN THE PC.

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POST PURCHASE PROBLEM IN THE PC 25% 20% 15% 10% 5% 0%

C HC AS OM L SE PA Q M BL IN G PC S L ZE G N O ITH TH ER S

POST PURCHASE PROBLEM IN THE PC

Compaq has less post purchase problems then others. HCL is having 12% post purchase problems in the PC.assembled computers has 16% post purchase problem & PCS has highest purchase problems in the PC

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GRAPH-7 9. MEASURE THE PERFORMANCE OF PC. HCL PERFORMANCE

HCL PERFORMANCE MEASURE BY CONSUMERS 70% 60% 50% 40% 30% 20% 10% 0%
T G O O D G O O D N LE FA IR

HCL PERFORMANCE MAJOR BY CONSUMERS

C EL
performance.

20% consumers saya that HCL is excellent in performans, 60% consumers says that HCL is very good in performance.and 20% thinks that its good in

EX

V.

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GRAPH-8 COMPAQ PERFORMANCE

COMPAQ PERFORMANCE 70% 60% 50% 40% 30% 20% 10% 0%

T G O O D G O O D N LE FA IR

COMPAQ PERFORMANCE

C EL EX

Compaq performance is the same as HCL performance.

V.

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SUGGESTION&RECOMMENDATIONS
1.Perception about HCL S After Sales Service and technology has to be changed because HCL is way behind in it compared to its competitors. 2. More awareness should be created regarding the various services offer by HCL. 3.HCL has to try to establish its after sales service department. 4. Perceived corporate image of HCL is not very good so an effort has to be made to improve it.

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 HCL Ezeebee 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 tie up with some event management company to organize

various promotional activities like canopy , Carnival.

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.

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.

Company should improve the quality of product Company should give the service of customization of product to the consumers. 54

FINDINGS OF THE STUDY

MAJOR FINDINGS
Any survey conducted in the market places flashes back hidden truths and basic facts, which affects the business of company directly or indirectly. Which are the out coming of the research, are known as the findings. The information gathered from the market, which are accountable in the achievement of the objective and for the company, which make the project report more interesting, are basically known findings.

The findings of this project are as follows:

1) HCL is market leader in PC market but have very close competition with Compaq. 2) Most people thinks that HCL only deals in desktop PCs and servers where as only few thinks that HCL also provides facility of software development, networking, internet services, facility management and high end solutions. 2) Most people think that HCL is typically hardware firm having no relation with software. 3) 4) Compaq and HCL are two companies that are at top of mind in consumers mind. Cost, quality and service are two major factors that are taken into consideration while purchasing the PC. HCL is excellent in all factors. 5) 6.Technology Wise HCL is considered to be number 4 where as IBM, DELL and Compaq HP are number 1,2 and 3 respectively. 6)

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7)

7.cost wise HCL is at third number after LG and zenith enjoy 1 and 2 position respectively.

8)

8.corporate image of HCL is not so good. It holds third rank in this category while IBM & Compaq are number 1 and 2 respectively.

9)

9.According to customer satisfaction index HCL is no.1 with Compaq. Where as IBM is on second position.

10) 11)

10.HCL is no 1 in providing the finance purchase to the customerS 11.After sales service and technology are the perceived weaknesses of the HCL.

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CONCLUSION

The most interesting and crucial phase of any research is the presenting of findings and this project is no exception. After concluding with the project I am in a position to present the following: HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins 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 HCL 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 its lacking in technology. Company should changed its technology. But HCL is most preferable brand in India then others. Now for our own personal experience this project was a real rewarding experience for us and helped us gain insights into the ways marketing research works. The survey let us know the functioning of the survey reports and their preparation. We are really indebted to our faculty to have provided us with this opportunity.

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Questionnaire

NameDesignationAGE TEL NO., MOB. -

Q.1 Do you have Personal Computer? Yes No If yes______________________________________ Q.2- Whether you have branded or assembled? Branded Assembled If branded, which brand do you have? 1. HCL 5. DELL 2. Compaq 6. Zenith 3. IBM 7. PCs. 4. LG 9. Other

8. Sahara

Q.3- why you opted for this brand? Cost support service Quality brand name

Q.4- why do you need the PC? Personal Use Official Use

(P-61)

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Q.5-How did you purchase your PC? Cash purchase Finance Schemes

Q.6-How did you know about your PC? Advertisements Sales personnel of the company

Relatives & Friends

Sales promotions

Q.7- According to you which brand is the best brand? 1. HCL 5. DELL 2. Compaq 6. Zenith 3. IBM 4. LG 9. Other

7. PCS

8. Sahara

Q.8-Did you get any discount on the purchase of the PC? Yes If yes , to what extent? 1.1-5% 2. 6-10% 3.11-15% 4. Above then 15% Q.9-What is the guarantee period of your PC? a. 1 yr. b. 2 yr. c.3 yr. d. 4 yr. e. More then 4 yr. No

(P-62)

59

Q.10 Do you have any post purchase problem with your PC? Yes If yes Please mention the problemNo

Q.11-Do you refer your PC to other also to purchase? Yes No

Q.12-How will you rate the performance of your PC? a. Excellent b. Very good c. Good d. Fair e. Poor

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LIST OF TABLES,PIE-CHART & GRAPHS

LIST OF TABLES:-

TABLE-1 TABLE-2

-- Market share of top five players in PC market. (P-13)

-- Top 6 preferred factors for purchasing the product . (P-47)

LIST OF PIE-CHARTS:-

PIE-CHART-1 -- Market share of top 5 players in PC market. (P-14) PIE-CHART-2 -- Comparison between Branded and Assembled. (P-46) PIE-CHART-3 -- If we consider only branded PC then the most Preferable PC are (P-47) PIE-CHART-4 -- Measure the need of PC either for personal use or Official use. (P-49) LIST OF GRAPHS:-

GRAPH-1 -- Factors which are taken into consideration while Purchasing the PC. (P-48) GRAPH-2 Measure how do customer purchase the PC (Cash purchase or finance purchase). (P-50)

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GRAPH-3 Finance purchase given by PC vendors. (P-51) GRAPH-4Consumer come to know about the PC through various Factors. (P-52) GRAPH-5Best brand opted by consumers. (P-53) GRAPH-6Measure post purchase problem in the PC. (P-54) GRAPH-7HCL performance measure by consumers. (P-55)

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BIBLOGRAPHY
INTERNET SURFINGWWW.GOOGLE.COM WWW.INDIAINFOLINE.COM WWW.HCLINFOSYSTEM.COM

BOOKS PREFEREDC.R.KHOTHARI (MARKETING RESEARCH) MARKETING MANAGEMENT (PHILIP KOTLER)

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