Professional Documents
Culture Documents
as individuals to find
planning for the market. This process is applicable to more than just goods
and services. I think that anything that can be researched ideas, events,
organization, place, personalities etc.
Content
S. no.
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Topics
Introduction
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2.
Company Profile
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Companies all over the world deliver products and/or services to end user
clients these customers by definition are located at the end of a marketing
[distribution] channel. Whilst Small and Medium Enterprises and Large
Corporate by definition will be using some form of distribution channel
through which to deliver their products, services and messages very often
we see that they are all but doing more of the same. The recent intensive
corporate training seminar that I wrote and ran for Marcus Evans
Professional Training was focused on Enhancing Channel Management
Strategies to Maximize Sales Through Distributors. In essence companies
face to major decision when it comes to dealing with their distribution
channels:
to that of one where customer can purchase their products via retail and
even the television. We see that challenging the norm when it comes to
dealing with distribution channels is the same as with everything else
life i.e. Keep doing the same things and you will get the same results !!!
As an Business Strategy Consultant I always aim to look if there is another
way as well as looking at what is working and methods for improving on
that. It is often said that one cannot change distribution channels easily or
taking on new partners is fraught with danger as the existing partners will
object, resist and damage the ongoing business relationship. It looks as
though many companies are in fact modifying their distribution channel
strategies as well as looking to manage existing partners and relationships
more effectively. As you look to get more out of your business could it be
that taking some time out to examine your current distribution channel
makeup and management should be the very thing to concentrate on ?? Get
in touch if youd like some outside perspective to help you on your way in
your business endeavors. Best, Stephen C Campbell [distribution channel
management trainer]
Physical distribution (or place) is one of the four elements of the marketing
mix. An organization or set of organizations (go-betweens) involved in the
process of making a product or service available for use or consumption by a
consumer or business user. The other three parts of the marketing mix are
product, pricing, and promotion
The distribution channel
Chain of intermediaries, each passing the product down the chain to the next
organization, before it finally reaches the consumer or end-user.... This
process is known as the 'distribution chain' or the 'channel.' Each of the
elements in these chains will have their own specific needs, which the
producer must take into account, along with those of the all-important enduser.
Channels
A number of alternate 'channels' of distribution may be available:
There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services the latter offering anything from televisions through tools. There has also
been some evidence of service integration, with services linking together,
particularly in the travel and tourism sectors. For example, links now exist
between airlines, hotels and car rental services. In addition, there has been a
significant increase in retail outlets for the service sector. Outlets such as
estate agencies and building society offices are crowding out traditional
grocers from major shopping areas.
Channel decisions
Channel strategy
Cost
Consumer location
Managerial concerns
The channel decision is very important. In theory at least, there is a form of
trade-off: the cost of using intermediaries to achieve wider distribution is
supposedly lower. Indeed, most consumer goods manufacturers could never
justify the cost of selling direct to their consumers, except by mail order.
Many suppliers seem to assume that once their product has been sold into
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the channel, into the beginning of the distribution chain, their job is finished.
Yet that distribution chain is merely assuming a part of the supplier's
responsibility; and, if they have any aspirations to be market-oriented, their
job should really be extended to managing all the processes involved in that
chain, until the product or service arrives with the end-user. This may
involve a number of decisions on the part of the supplier:
Channel membership
Channel motivation
usual is `incentive': the supplier offers a better margin, to tempt the owners
in the channel to push the product rather than its competitors; or a
compensation is offered to the distributors' sales personnel, so that they are
tempted to push the product. Dent defines this incentive as a Channel Value
Proposition or business case, with which the supplier sells the channel
member on the commercial merits of doing business together. He describes
this as selling business models not products.
Monitoring and managing channels
In much the same way that the organization's own sales and distribution
activities need to be monitored and managed, so will those of the
distribution chain.
In practice, many organizations use a mix of different channels; in particular,
they may complement a direct sales force, calling on the larger accounts,
with agents, covering the smaller customers and prospects. these channels
show marketing strategies of an organization. Effective management of
distribution channel requires making and implementing decision in these
areas.
WHAT FLOWS THROUGH THE CHANNELS OF DISTRIBUTION
Members of channels of distribution typically buy, sell, and transfer title to
goods. There are, however, many other flows between channel
members in addition to physical possession and ownership of goods.
These include promotion flows, negotiation flows, financing, assuming
risk, ordering, and payment. In some cases the flow is in one direction,
from the manufacturer to the consumer. Physical possession,
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Its vertical and horizontal marketing system can help the marketers as
well as the consumer to earn profit
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COMPANY PROFILE
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Technology leadership
HP's three business groups drive industry leadership in core
technology areas:
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Fast Facts
HP was incorporated in 1939.
Corporate headquarters are in Palo Alto, Calif.
Mark Hurd is president and CEO.
HP is a Fortune 11 company, with $86 billion in revenue, generating $7
billion in organic growth for fiscal year 2005
Growth
HP is focused on three technology shifts that have the power to
transform our customers' lives and businesses.
Information explosion
Digital transformation
Environmental sustainability
Profit
To achieve sufficient profit to finance our company growth, create value
for our shareholders and provide the resources we need to achieve our
other corporate objectives.
Underlying beliefs supporting this objective:
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profitability.
Market leadership
To grow by continually providing useful and significant products,
services and solutions to markets we already serveand to expand into
new areas that build on our technologies, competencies and customer
interests.
Underlying beliefs supporting this objective:
Growth
To view change in the market as an opportunity to grow; to use our
profits and our ability to develop and produce innovative products,
services and solutions that satisfy emerging customer needs.
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Growth comes from taking smart risks, based on the state of the
industrythat requires both a conviction in studying the trends,
but also in inducing change in our industry.
Employee commitment
To help HP employees share in the company's success that they make
possible; to provide people with employment opportunities based on
performance; to create with them a safe, exciting and inclusive work
environment that values their diversity and recognizes individual
contributions; and to help them gain a sense of satisfaction and
accomplishment from their work.
Underlying beliefs supporting this objective:
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Leadership capability
To develop leaders at every level who are accountable for achieving
business results and exemplifying our values.
Underlying beliefs supporting this objective:
Effective leaders coach, relay good news and bad, and give
feedback that works.
Leaders speak with one voice and act to eliminate busy work.
Global citizenship
Good citizenship is good business. We live up to our responsibility to
society by being an economic, intellectual and social asset to each
country and community in which we do business.
Underlying beliefs supporting this objective:
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HP Desktop PCs
HP Notebook PCs
Scanners
Handhelds
Services
Monitors
Networking
Services
Solutions
HP Services
Servers
Blades
Storage
Networking Solutions
Software
Printing Solutions
Video Collaboration
IT Management Software
Federal Government
Elementary/Secondary Education
Higher Education
Graphic Arts
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Objective of the Study:In this project report of mine I would be focusing my attention on some of
the important objective that would also be the part of my study. The
following are the objective: To understand various problems encountered by seller / distributors in
reference to HP
To understand profitability of selling HP s as compared to other
brands available in the market.
To know about the brand awareness of HP
in the mindset of
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Research Methodology
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Research Methodology
Research methodology is used to systematically solve the research problem.
It is a way that defines the process of overall study. The method used must
be justified. Research may be quantitative or qualitative research. In this
research qualitative as well as quantities research will be used, as it is
necessary to know features/ facilities that attract the customer to buy specific
laptop as well as number of laptop sold by dealer/ distributors of HP as well
as others brand available during the Research period.
Data Collection
Task of the data collection is very important part of Research. It begins after
defining the researcher problem and preparation of research design. It may
be primary or secondary data collection.
Primary Data: Primary data are those which are collected fresh and for specified purpose
for the first time. These data are original data for the research purpose. The
various tools of primary data collection are questionnaire, interview,
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Causal Research Design:It is a type of conclusive research where the major objective is to obtain
evidence distribution of HP brand will be assessed.
Sampling Design
A sample design is a definite plan for obtaining a sample from a given/
chosen population. It refers to the technique the research would adopt in the
selecting items for the sample. Sampling design is of two types:1. Probability Sampling and
2. Non Probability sampling.
Probability Sampling:A sampling technique in which each element of the population has a fixed
probability chance of being selected for the same
Simple random sampling, technique is being used for this study
Steps in sample design
1. Sample Unit
Male or female shoppers, dealers, wholesaler or distributors. They
may be newly opened or old one. They may have relation with HP or
want to establish.
2. Sampling Frame
All the Dealer/ Distributors at Bhopal
3. Sampling Technique
Simple random sampling of Probability Sampling technique. Where
each Dealer/ Distributors have equal chance to be selected in sample
frame.
4. Sample size
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DATA ANALYSIS
1. How many dealerships do you have?
Analysis
Above pie chart shows that 44% dealers have all brand dealership, 28% have
the 6-10 brand dealership, and 24 % have the 2-5 brand dealership and 4%
having single Brand.
Conclusion
More dealers are interested to keep all available brand dealership available
in market.
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of Percentage
respondents %
(out of 25)
Wipro
Compaq
Acer
HP
Dell
Benq
Lenovo
Sony
HP
Toshiba
5
16
7
25
24
2
10
3
14
2
20
64
16
100
96
8
40
12
56
8
Analysis
The following data highlights that out of 25 respondents interviewed how
many would prefer the brand mentioned.
Conclusion
It can be concluded that most preferred brand are HP
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4.) Do you agree that Distribution channel plays an important role in sale of
Products in HP..?
Comments
Respondent
Yes
88%
88
No
12%
12
Analysis
Above chart shows that 88 % dealers are agree that Distribution Network is
important for sale of laptop.
Conclusion
Distribution network is very important.
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5.) What promotional activities do you think can increase the sale in HP?
Promotional Acitivities
Advertising
Promotion
Endorsement
Adv. +Promotion
% Respondents
48
20
4
28
Analysis
Above chart shows that 48% dealer are suggest for the advertisement of HP
e.go series laptop, 28% suggest for advertisement as well as promotion also,
20% dealer suggest for the promotion of product and 4% are in the favors of
endorsement.
Conclusion
To get success into market the product should have strong advertisement and
promotion.
6.) Do you Channel strategy & Gravity & Gravity is well in HP?
Comments
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Respondent
Yes
88%
88
No
12%
12
Analysis
Above chart shows that 88% dealers promote HP laptop by there own and
12% do not promote HP.
Conclusion
Most of dealer promote HP by there own.
7.) What problem you face while selling the Product in HP..?
Problems
Less customer preference
No advertisement
Poor configuration
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%No. of respondents
20
25
20
Analysis
From the dealers point of view we can analyze that they face certain
problems like less customer preference, no advertisement, and poor
configuration.
Conclusion
From the above response we can conclude that dealers face maximum
problem due to lack of advertisement.
8.) What are the reasons that the customers do not prefer HP?
Reasons
Advertisement
Poor configuration
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No. of respondent
20
25
Percentage
80
100
Analysis
From the above we can analyze that customer do not prefer HP due to
certain reasons like advertisement, and poor configuration
Conclusion
It can be said configuration as well as advertisement is no good.
Respondent
Yes
60%
No
40%
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Analysis
Above chart shows that 60% dealer/ distributors are happy with the
coordination of HP management, 40% are not.
Conclusion
HP management is coordinating with dealer.
10). How much time does the distributor take to deliver the order?
Delivery Time
% Respondent
Within a day
88
With in a week
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Analysis
Above chart shows that 88% dealer get delivery within a day, 8% dealer gets
delivery within 3 days, 4% get delivery within a week.
Conclusion
It proves that HPs distribution channel is very strong.
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Finding
Finding
44% dealers have all brand dealership, 28% have the 6-10 brand
dealership, and 24 % have the 2-5 brand dealership and 4% having
single Brand.
25 respondents interviewed how many would prefer the brand
mentioned.
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customer
preference,
no advertisement,
and poor
configuration.
60% dealer/ distributors are happy with the coordination of HP
management, 40% are not
88% dealer get delivery within a day, 8% dealer gets delivery within 3
days, 4% get delivery within a week
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Conclusion
Conclusion
From the project that I had undergone during my Summer Internship
program I can conclude that to succeed in the business we must not only
depend on our existing method and channel, but also develop a way to
differentiate we must try to develop a new value curve and if this is achieved
the whole exercise to differentiate will give its fruit in term of higher sales.
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After working for several weeks I concluded that dealers are more
vulnerable against the competitor.
Whole responsibility lies in the hands of customers and to keep them on our
side it is necessary to understand the customers required configuration with
reasonable price. And also dealers should try to make a harmonious and a
relationship of trust, when a retailer will be honest towards his customer and
try to solve the requirement of customer with an honest feeling to help him
he can make a better relationship.. A better relationship is maintained only
when he is helping out customer by providing him at least basic service to
the customer such as installation of OS and various other small issues. For
dealer he should give reasonable price whet they calls him or want to know
about product. Because while visiting many dealers the main response was
that they do not provide rate at the time. And also provide the proper
knowledge of the product. This action creates goodwill of retailer in the
heart of customer as well as with other dealers or distributors.
By following this strategy HP had managed to get on rank two with HP at
number one .HP is also trying to gain the in-depth insight of retailing for the
promotion of its DIGILIFE stores this step of HP will reduce its dependency
on individual retailers.
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Suggestion
Suggestion
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Reference
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Reference
Non Electronic sources: Philip Kotler, Kevin Lane Keller(2006).Marketing Management
Naresh Kumar Malhotra, Fifth Edition Marketing research
C. R. Kothari, Research methodology.
Electronic sources: www. google.com( for various topic search)
www.scribd.com (for documentation)
www.nasscom.in ( for it knowledge)
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Annexure
Annexure
Firms Name: ___________
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Endorsement
Advertisement
Promotion
Any
other__________________________________________
_
6. Do you promote HP by your own?
Yes
No
7. What problem you face while selling HP laptops?
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______________________________________________
_____
______________________________________________
_____
______________________________________________
_____
8. How many LAPTOPS generally you generally sale in a week?
0
1-5
6-10
Above 10
9. How many HP LAPTOPS generally you sale in a week?
0
1-3
4-7
Above 7
10.What are the reasons that the customers do not prefer HP?
____________________________________
____________________________________
11.On the scale of 1-7 how would you rate brand image of HP
LAPTOPS?
(1-Best, 2-Very Good, 3-Good, 4-Average, 5-Bad, 6 very bad, 7-Worst
____________________________________
12.Does HP co-ordinate with you in the term of Logistics?
Y
N
13.Do you get delivery of Laptop on time (HP)?
Y
N
14.How much time does it take to deliver the order?
Within a day
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Within 3 days
Within 1 week
More than it
15.What facilities do you required for effective sale of HP laptop?
______________________________________________
_____
______________________________________________
______________________________________________
__________
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