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    c , commonly referred to as , a multinational information
technology corporation was founded by William Hewlett and David Packard, engineering
students at Stanford University in 1945 in California¶s Silicon Valley. Right from the beginning
technology and productivity has remained the watchword of the company.

From its first product of audio oscillator used by Walt Disney Studio to various electronic
devices like measuring drug levels in blood, herbicide level in food and printers and personal
computers, innovation and technology have been the key focus of the company.

In 1972 the company produced the first hand held calculator and became a market leader in this
segment. As other competitors came along its profitability reduced and it began targeting the
upper segment.
In 1984 H-P brought a paradigm shift and targeted masses by introducing portable computer and
two printers called LaserJet and think jet. Initially the products manufactured were need based,
customer specific which enabled them to charge high prices. But some product like personal
computer H-P 150 were rejected by retailers because of incompatibility with existing IBM Pc
and less profit margins on them. To overcome this they made their product compatible with IBM
and also included high profit margin products like disk drives and monitor, gave advertising
allowances to dealers, thereby improving their relationship with them.
By 1987 computer related products consisted of 65 percent of its sales and profits. Also its two
division i.e. testing instruments and personal computer were brought under single head and
names were given to its product rather than numbers to enable branding and better visibility
among consumers.
Over the years H-P has come up with a commendable product mix and has also done brand
personification of its new products to gain more customer acceptance. Today H-P is number one
globally in printer market due to its innovation and has gained a good market share in personal
computer line because of low-cost mass production.















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Ans1.
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A   ' embraces the philosophy that good marketing strategy always has the
needs and wants of the target market in mind.

In the initial years HP was more focused on product marketing which did not attract many
customers. Later on with its printer business HP moved on to mass marketing as well as
customization.
HP not only realized the customer stated needs but also the latent needs. With personal computer
business booming, HP realized the latent needs of the customer to get the get quality ³hard copy´
of graphs, worksheets and text. And with its inkjet printers it showed a new way for customers to
do low cost color printing. This makes HP today the King in printer business market.
HP also improved its marketing strategy over the years by moving into customization and
improving its promotion and distribution channels.
To give its customers the best technology and wide range of computers HP acquired computer
manufacturing giant ³Compaq´ in year 2002.

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As per our opinion the core marketing concept consists of three things:
1. Becoming consumer oriented
2. Stress on long term profitability rather than short term sales
3. Integrate all functions and disciplines with marketing to focus on customer satisfaction.
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HP has successful lines of printers, scanners, digital cameras, calculators, PDAs, servers,
workstation computers, and computers for home and small business use computers; many of the
computers came from the 2002 merger with Compaq. HP today promotes itself as supplying not
just hardware and software, but also a full range of services to design, implement, and support IT
infrastructure.
Today HP is one of the world's largest information technology companies, operating in nearly
every country.
To see the wide range of HP product line, please refer to the following link:
http://en.wikipedia.org/wiki/List_of_Hewlett-Packard_products

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HP has a worldwide distribution network.
It has more than 1billion customers in more than 170 countries on six continents.

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HP uses both fixed and dynamic price strategies in order to offer its consumers the best customer
service and products.
HP utilizes the promotional and bundling pricing strategies. Used as an incentive for consumers
to buy more than one product, promotional pricing is used by many computer companies. HP is
currently offering several discounted, free, and bundled products and services to appeal to
consumers by using both the bundling and promotional price strategies.

 

HP also uses the segmenting pricing strategy to offer its customers a variety of options to pay for
its services or technology. One of the options HP is giving its consumers is pay-per-use utility
pricing which charges consumers for actual usage on a monthly basis. This technology works by
measuring the percentage of utilization on each Central Processing Unit. The advantage for HP
customers is that they will only pay for processing they are utilizing. They also have the option
to use additional processors, therefore processing is not limited.

In terms of assessing the effectiveness of HP¶s pricing strategies, I would say that HP is highly
successful because it has strong financials and consumers seem to respond positively to its
pricing strategies. Strong brand image and marketing initiatives have helped to improve HP
sales. In fact, by placing its pricing strategies along with the products and services it wants to sell
in the center of the HP homepage, it is using marketing tactics and web design to draw the task-
oriented consumers to these special offers. Moreover, HP makes the customer reviews and
ratings easily accessible to other consumers when navigating through the web site. This shows
the consumer that HP is a trustworthy company which truly cares about customer satisfaction
and experience with its products.














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HP's new tagline ³Let's Do Amazing´ campaign consists of a series of TV spots and digital
media ads. The ads are being geared not just toward consumers and businesses but also to HP's
employees. Let¶s Do Amazing' celebrates HP's roll-up-your-sleeves culture of doers who don't
just talk and don't just think--and will stop at nothing short of amazing to innovate and deliver
for customers.

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=o-=reen programme:

Donate: HP makes it easy to donate your used computer equipment. In the US, this program is
made possible through a partnership with the National Cristina Foundation (NCF).

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0"     HP has devised extensive marketing strategies targeting each market
segment individually. It has devised product and promotion strategies for the following
segments viz. Home and home enterprises, small and medium sized enterprises, large
enterprises and government bodies. HP focuses on selling by industry.
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   It has a Decentralised sales force and has divided its force into 3 main
branches ± IT solutions, Printers and Printing, Personal computers. The sales person is
backed up by a ³virtual´ sales team of specialists who deal with specific areas such as
storage, software service etc.
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a. HP supports Disabled American Veterans in benefit outreach efforts.
b. HP announced a second season of computer use by design contestants of
Lifetime Television¶s hit show ³Project Runway´ On 19th july,2010.Through this
contest HP projects itself as a customer problem solver , as it offers a portfolio
that spans printing, personal computing, software, services and IT infrastructure
to solve customer problems
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a. Live Events
b. Virtual Events
c. Trade shows and Conferences
D" +   HP communities, Blogs, Videos, News rooms are a source of continuous one to
one interaction with the consumer.
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Ans3. A   %   approach means a business reacts to what customers
want. The decisions taken are based around information about customers¶ needs and
wants, rather than what the business thinks is right for the customer.

Although in last few years H-P has shifted from product orientation to market orientation,
there is still more to it that H-P can leverage.
1. The company should make good and extensive use of marketing research to
understand its customer requirements better and focus on its strong market segments.
For e.g.: H-P¶s strength is its printer business.
2. Develops new and broad products like they can venture into new business like
processers.
3. Highlights product value and benefits to the customer.
For eg:

4. Innovation is very crucial in the field of technology hence H-P should come up with
new product innovation methods.
5. Designs supplementary services or customer benefits such as delivery, installation,
warranty, and credit availability.
For e.g. :

6. Customization: H-P still lacks in the field of customization. H-P should learn lessons
from DELL in the field of customization and try to implement it in its own business
as well.
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Ans4. Consumer Buying Behavior:

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-+..   Variety Seeking Habitual


As both the products show Complex buying behavior, hence consumer would undergo a
good amount of research before making a purchase. Hence marketers should try to
influence the consumer at early
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 % like need recognition and
information search.
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  %   It is very important for markets to recognize the needs of the
consumer, as per the demographics, for cars as well as computers. For example, Indian
consumer is more price conscious hence small car market has good growth here.
Similarly, Sony Vaoi computers which cater to the look conscious niche segment have
not gained much recognition in India.
+  
 $ plays a very crucial role in complex buying behavior. Hence we see
that there are lots of online consumer forums (eg. www.hpmuseum.org) where consumer
share their views about these products. So it is very important for marketers to focus on
building good brand image and maintaining it.
.   .
depends on the awareness set of the consumers. This could be
increased by having good promotion and distribution channel.
Although the consideration set of the consumer in case of cars as well as computers
depends a lot on Brand Personification of the product.
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: Pricing as well as customization also play a crucial role in the final
purchase decision from the consideration set. For example Dell has gained huge market
share due to the high customization that it offers to its customers.

 $
 $.  : Many companies differentiate by focusing more on post
purchase behavior by offering good after sales service; for example Maruti in case of cars
and Dell in case of computers.

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Both cars and


computers focus on
self-actualization and
esteem needs.
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"As per our opinion, Mother Dairy has done an excellent job of marketing its
brand in Delhi Metropolitan. Mother Dairy ± Delhi was set up in 1974 under the Operation
Flood Programme. It is now a wholly owned company of the National Dairy Development
Board (NDDB).
Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid
Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range
of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level through its
sales and distribution networks for marketing food items.

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   i    Market development
   Product development Diversification

Mother Dairy has focused more on market penetration hence it is able to penetrate its
home market Delhi to a large extent.
Mother Dairy Milk has a market share of 66% in the branded sector in Delhi where it
sells 2.3 million liters of milk daily and undertakes its marketing operations through
around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy.
The company¶s derives significant competitive advantage from its unique distribution
network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams
launched in the year 1995 have shown continuous growth over the years and today
boasts of approximately 62% market share in Delhi and NCR.
The company markets an array of fresh and frozen fruit and vegetable products under the
brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more
than 20,000 retail outlets in various parts of the country. Fresh produce from the
producers is handled at the Company¶s modern distribution facility in Delhi with an
annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day
is also operational in Delhi.

2.      

While Mother Dairy still may not have a product portfolio as large as Amul, which is
also expanding across the country in a big way and is a much bigger player, it's doing its
bit. Mother Dairy says the idea is not just to enter new markets, but to do well in those
markets - which means bigger market shares in the different product categories in
whichever market it is present.
Mother dairy has created differentiation for the consumer from the perspective of taste
and quality. Hence most Indianised flavours have done exceptionally well, something
that the co-operative has constantly focused on. Mother dairy is bringing in mass Indian
flavours which are building up in terms of absolute percentage of contribution. They
attempted to make the taste experience in ice creams as familiar as possible so as to
increase consumption and they have succeeded in their approach.

For example, Mother dairy curd started off very slow but today, Mother Dairy claims it's
growing at close to 60 per cent year-on-year in Delhi. Here again, the Indian flavour
formula seems to have worked.

Mother Dairy CEO said that ³While curd from an MNC player is probably based on
international formulation, we formulated it to taste as close to home-made curd as
possible. If your offering fits well with the Indian consumer, the resistance is lower and
acceptance more"

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On the marketing front, Mother Dairy says it's trying to take its product campaigns and
communications to a higher platform. For instance, in the case of milk, the campaigns do
not talk about the obvious benefits - milk is good for health, it has calcium and so on - but
rather it targets children and are created around ideas such as "The country needs you,
grow faster".

Hence they are saying that they want children to achieve their ambitions faster and the
product is pure or healthy.

As far as products such as butter, cheese and ice creams go, the campaigns have been
created around "taste". For butter again, the focus is on children. An analyst citing Amul's
popular Utterly-Butterly campaigns said that "Amul butter may be selling the most, but
the advertising and promotions are almost always targeted at adults" .

Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by
kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a
sturdy jovial cow (a cartoon character) has been made its brand ambassador.

While Mother Dairy has been carrying out school programmes - games and activities -
involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and
Kolkata as well. It also runs a gaming website on the character to attract children.

It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail
activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet
were invited for a photo op - dressed as superheros - through Polaroid cameras; and the
framed photograph was presented to them. The activity was carried out in about 150
outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken.
Cheese was also something that helped the company bond better with its retailers. In
November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees
ki cheez," a proposal that said if a consumer buys Mother Dairy cheese, the retailer can
offer him anything worth Rs 20 from the shop - which worked better than offering
something free with the product, which the consumer didn't even needs.

 











































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1. c   % #02
: It blended the four Ps ± product, price, place and
promotion well to offer solution, information and value to its customers. HP has got
various product lines and the consistency in its marketing mix across its product mix is
synchronized. It got in place its distribution channel by solving dealer problems.
2. c   %  (Marketing orientation and product orientation) : H-P¶s
transition from product orientation to marketing orientation.
3. c
  $.  : H-P improved its marketing strategy by studying the consumer
behavior
4. c   : H-P dealt with competition from various competitors like texas
instruments in calculators, Kodak in printing devices, DELL and IBM in PC.
5. ‰  6 : H-P generated brand equity by brand personification and improving
customer relationship.

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