Hurd s biggest challenge at H-P: Overhauling corporate sales,

History of case Just after few weeks of mark hurd s arrival at Hewlett Packard Co. as chief executive a year ago, he began hearing complaints about H-P s corporate sales force. There were many complaints some complained about company s confusing management layers others complained that they got different prices quotes from H-P sales people in Europe and U.S. Besides this H-P s salespeople complained Mr.Hurd that they do not get time to deal with customers because of administrative burden. After sensing all the problems Mr.Hurd dug into H-P s sales structure and he came to know that it was too slow. Problems in corporate sales were one reason H-P delivered inconsistent earnings and lack luster growth under Mr.Hurd predecessor, Carly Fiorina. Thus, Mr.Hurd s biggest management challenge began of overhauling H-P s vast corporate sales force.

Marketing Strategic Objectives It is necessary that people work together in unison toward common objectives and avoid working at cross purposes at all levels if the ultimate in efficiency and achievement is to be obtained. Dave Packard HP's Marketing Objectives have guided the company in the conduct of its business since 1957, when first written by co-founders Bill Hewlett and Dave Packard. To provide products, services and solutions of the highest quality and deliver more value to customers that earns their respect and loyalty. 1. CUSTOMER LOYALTY Underlying beliefs supporting this objective: Continued success is dependent on increasing the loyalty of customers. Listening attentively to customers to truly understand their needs, then delivering solutions that translate into customer success is essential to earn customer loyalty. Competitive total cost of ownership, quality, inventiveness, and the way we do business drives customer loyalty. To achieve sufficient profit to finance company growth, create value for shareholders and provide the resources HP need to achieve its other corporate objectives.

2. PROFIT Underlying beliefs supporting this objective: Profit is the responsibility of all. Balance of long-term and short-term objectives is key to profitability. Profit allows us to reinvest in new and emerging business opportunities. Profit is highly correlated to generating cash, which brings more flexibility to the business at a lower cost. Profit enables the achievement of our corporate objectives. To grow by continually providing useful and significant products, services and solutions to markets HP already serve and to expand into new areas that build on technologies, competencies and customer interests. 3. MARKET LEADERSHIP Underlying beliefs supporting this objective: There are more places HP can contribute than it will be capable of contributing: HP must focus. To be average in the marketplace is not good enough, HP should play to win. It must be No. 1 or No. 2 in its chosen fields.

4. GROWTH To view change in the market as an opportunity to grow; to use profits and ability to develop and produce innovative products, services and solutions that satisfy emerging customer needs. Underlying beliefs supporting this objective: Growth comes from taking smart risks, based on the state of the industry that requires both a conviction in studying the trends, but also in inducing change in our industry. HP s size (and diversity of businesses)shall gives them the ability to weather economic cycles and turn them in their favor. 5. 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: HP's performance starts with motivated employees; their loyalty is key. They trust their employees to do the right thing and to make a difference. Everyone has something to contribute: It's not about title, level or tenure. An exciting, stimulating work environment is critical to invention. A diverse workforce gives a competitive advantage. Employees are responsible for lifelong learning.

6. LEADERSHIP CAPABILITIES To develop leaders at every level who are accountable for achieving business results and exemplifying HP s values. Underlying beliefs supporting this objective: Leaders inspire, foster collaboration and turn vision and strategies into action with focused, clear goals. Effective leaders coach, relay good news and bad, and give feedback that works. Leaders demonstrate self-awareness and a willingness to accept feedback and continuously develop. Leaders speak with one voice and act to eliminate busy work. It is important to measure people on the results they achieve against goals they helped to create. 7. 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: The highest standards of honesty and integrity are critical to developing customer and stakeholder loyalty. The betterment of our society is not a job to be left to a few; it is the responsibility to be shared by all. This objective is essential to delivering on the brand promise.

Product Strategy NEW PRODUCT DEVELOPMENT : HP can adopt new product development process to develop its products in the competative market.

ADOPTION LIFE-CYCLE MODEL: For over fifty years, researchers have used the Technology Adoption Life Cycle model to explain the adoption of new products and technologies. The process of adoption is illustrated by a classic bell curve, divided into four consecutive stages. Each stage is defined by the customers that adopt the technology in the respective stage: early adopter, early majority, late majority and laggard.

THE MATRIX: This matrix provides a simple framework for analyzing growth opportunities, using the dimensions of markets and products. As one moves from existing products and markets to an adjacent quadrant, risk increases. HP can analyse the new and existing market on the basis of this matrix. Many Information technology companies, has been geared to a diversification strategy in recent years. The company wants to get more software-based products into its lineup. Such diversification helps companies guard against too much exposure to a specific product or industry. Not putting all their eggs in one basket means that if there is a downturn in one area, there is less of a chance that the company will be impacted.

Diversification Strategy Mark Hurd, the CEO of HP, shall lay emphasis on software acquisitions to add value to the company's hardware platform. Hurd shall deploy money into this strategy, giving new life to the company's software division. HP shall focus on using its software and solutions division to cross-sell its hardware offerings. To this end, the company can made certain strategic acquisitions. Pricing Strategy In order to be successful in the computer and office equipment industry compared to its competitors Dell and Apple. HP must lead global provider of technologies, products and services to consumers and businesses. Over the past years HP has developed high performance technology with a diverse product portfolio, offered strong customer service, and has decreased its prices. Now, HP needs to use both fixed and dynamic price strategies in order to offer its consumers the best customer service and products. In terms of fixed pricing, HP must utilize the promotional and bundling pricing strategies. Use it as an incentive for consumers to buy more than one product, promotional pricing is used by many computer companies. HP shall offer several discounted, free, and bundled products and services to appeal to consumers by using both the bundling and promotional price strategies. One example of HP utilizing these strategies can be taken different laptops of HP, it shall includes several discounts: a free memory upgrade as well as a hard drive, , free color customization, discount on Blu-ray drive, and free shipping.

All of these products and services that cater to the promotional and bundling pricing strategies will appear on HP s homepage in flash reels, will have customer reviews and ratings. HP can also use the segmenting pricing strategy to offer its customers a variety of options to pay for its services or technology. One of the options HP can give to its consumers is pay-peruse utility pricing which may charge 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 will be that they will only pay for processing they are utilizing. They might 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 if HP follows these pricing strategies it might be highly successful because of strong financial returns and positive consumers response. Strong brand image and marketing initiatives have helped to improve HP sales till now. 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 shall use marketing tactics and web design to draw the task-oriented consumers to these special offers. Moreover, HP can make the customer reviews and ratings easily accessible to other consumers when navigating through the web site. This will show the consumer that HP is a trustworthy company which truly cares about customer satisfaction and experience with its products.

Channel Strategy 1. WHOLESALE DISTRIBUTION: HP can increase its channels by wholesale distribution. Consumers to whom HP sells printers are Business personal computer users in offices and personal computer users in homes. Wholesale distribution might also help to expand the market and reach the target customers by cutting time consumption. 2. RETAIL DISTRIBUTION: In 70 s and 80 s HP was just selling to corporations but in 1990 s, HP struck many deals with big electronic retailers and gained prominent shelf space in consumers store. HP shall continue this strategy of retailing its products in mainstream market so that they are easily accessible to consumers 3. ONLINE CHANNELS: Now days every company tries to sell their products directly as well as through third party distributors. Selling online is also important factor and DELL is the example (most successful) of direct selling. There are many advantages of selling online included: quick transactions, no physical space required for inventory, higher product availability, no waiting time no intermediaries required. So HP should sell both printers and supplies direct (online). There is no such need of selling directly in US because of high product availability because of functioning as a local company here. But in Europe and Asia, HP must go direct. HP already has an online system for other product lines like PCs and Laptops. DeskJet printer is most successful brand or product of HP and generates high volume of sales. So HP should sell DeskJet printer online

4. OUTLET STORES: Outlet stores can help enhance channels and make easy for consumers to buy Hp products. Promotion Strategies A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional strategy can consist of: 1. AVERTISING: HP should adopt new advertising methods in order to market its products and make them popular. 2. PUBLIC RELATIONS: HP shall use public relations to increase its promotion. It involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. 3. SALES PROMOTION: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.

PERSONAL SELLING: Selling a product service one to one. DIRECT MAIL: Is the sending of publicity material to a named person within an organization . There has been a massive growth in direct mail campaigns over the last 5 years. Spending on direct mail now amounts to 18 bn a year representing 11.8% of advertising expenditure (Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases, which contain names and addresses of potential customers. Direct mail allows an organization to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalizing advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organization who's business involves direct mail.

Recommendations HP should do work on value constellation rather than value chain. R&D staff should visit all the market especially in Europe and Asia to better knowing the customer needs and for demand analysis. There is no coordination in channel members so HP must improve this deficiency through information flow . Provide downstream members some extra benefits for their better performance. Improve forecasting through different strategies HP should sell printers direct (online) as well as through the current channel members. Air transportation mean is also used to reduce lead time. Channel manager should perform its functions properly and resolve the conflicts among channel members.