Minor Project Report

On
MARKETING STRATEGIES OF HP IN INDIA

Submitted in Partial Fulfillment for the Award of the

Degree of B.Com (H) 2018-2021

Under the Guidance of: Submitted By:

Ms. Ruchika Choudhary Satyam Arya

Designation: University Enrollment No.:

Assistant Professor 41712388818

Delhi Institute Of Advanced Studies

Plot No. 6, Sector-25, Rohini, Delhi-110085
(NAAC Accredited ‘A’ Grade Institute)
(Approved by AICTE & Affiliated with GGSIP University for B. Com(H), BBA, MBA
& MCA Programmes)
(An ISO 9001:2015 Certified Institution)
 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the minor project titled “ MARKETING STRATEGIES OF HP IN

INDIA” is an academic work done by “Satyam Arya” submitted in the partial fulfillment of
the requirement for the award of the degree of B.Com (H) at Delhi Institute of Advanced
Studies, Delhi, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by him in the
project has not been submitted earlier.

Signature:

Name of the Guide :Ms. Ruchika Choudhary

Designation: Assistant Professor

 STUDENT DECLARATION

This is to certify that I have completed the Minor Project report titled “Marketing Strategies
Of HP In India” under the guidance of “Ms. Ruchika Choudhary” in partial fulfillment of
the requirement for the award of Degree of B.Com (H) at Delhi Institute of Advanced
Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Signature:

Place: Rohini, Delhi. Name: Satyam Arya

University Enrollment No.: 41712388818

 ACKNOWLEDGEMENT

First of all, I would like to express my thanks to “Ms. Ruchika Choudhary” for
giving me such a wonderful opportunity to widen the horizons of my
knowledge.

In no small measures, I would also like to gratefully thank to all those who gave
me constructive suggestions for the improvement of all the aspect related to this
project.

In particular, I would like to thank her for valuable suggestions and guidance.
I also owe a deep sense of gratitude to other faculty members for their
continuous encouragement.

Despite all efforts, I have no doubt that error and obscurities remain that seen
to afflict all research project and for which I am culpable

Name: Satyam Arya

University Enrollment No.: 41712388818

 TABLE OF CONTENTS

S.NO TOPIC PAGE

NO

1 CHAPTER 1: Introduction to the Company & Industry 1-6

2 CHAPTER 2: Introduction to the topic 7-20

3 CHAPTER 3: Research Methodology 21-23

4 CHAPTER 4: Data Analysis and Interpretation 24-29

5 CHAPTER 5: Findings and Observations 30

6 CHAPTER 6: Suggestions and Conclusion 31-32

7 BIBLIOGRAPHY 33

8 ANNEXURE 34-36
 CHAPTER 1

INTRODUCTION

About HP:

HP is a technology company that operates in more than 170 countries around the world. It
explores how technology and services can help people and companies address their problems
and challenges, and realize their possibilities, aspirations and dreams. It applies new thinking
and ideas to create more simple, valuable and trusted experiences with technology,
continuously improving the way our customers live and work.

No other company offers as complete a technology product portfolio as HP. It provides

infrastructure and business offerings that span from handheld devices to some of the world's
most powerful supercomputer installations. It offers consumers a wide range of products and
services from digital photography to digital entertainment and from computing to home
printing. This comprehensive portfolio helps us match the right products, services and
solutions to our customers' specific needs.

Mission:

HP's mission is to invent technologies and services that drive business value, create social
benefit and improve the lives of customers — with a focus on affecting the greatest number
of people possible.

1
HP Fast Facts:

1. HP was founded in 1939 by David Packard and Bill Hewlett.

2. Corporate headquarters are in Palo Alto, California, United States.
3. Dion Weisler is president and CEO.
4. HP is among the world's largest IT companies, with revenue totalling $58.47 billion
U.S. dollars.
5. HP's 2017 Fortune 500 ranking: No. 107
6. HP serves more than one billion customers in more than 170 countries on six continents.
7. HP has approximately 321,000 employees worldwide.
8. HP's revenue for the four fiscal quarters ended Oct. 31, 2018: $58.47 billion.
9. HP dedicates $7.9 billion (U.S.) annually to its research and development of products,
solutions and new technologies.
Technology Leadership:

1. HP's three business groups drive industry leadership in core technology areas.

2. The Personal Systems Group: business and consumer PCs, mobile computing
devices and workstations
3. The Imaging and Printing Group: inkjet, LaserJet and commercial printing,
printing supplies, digital photography and entertainment

4. The Technology Solutions Group: business products including storage and servers,
EDS, managed services and software

Contribution:

Global citizenship encompasses our commitment to align our business goals with our impacts
on society and the planet. It is one of our seven corporate objectives, rooted in HP‘s founding
values and key to our success. For more than 70 years, global citizenship has influenced how
it runs our business, holding us to higher standards of integrity, contribution and
accountability in everything It do.
It focuses our energies and expertise in five areas:

1. Ethics and compliance

2. Human rights and labor practices
3. Environmental sustainability
4. Privacy
5. Social investment

2
HP’s Shared Values:

1. Passion for customers

It put our customers first in everything it do.
2. Trust and respect for individuals
It work together to create a culture of inclusion built on trust, respect and dignity for
all.
3. Achievement and contribution
It strives for excellence in all It do; each person's contribution is critical to our success.
4. Results through teamwork
It effectively collaborates, always looking for more efficient ways to serve our
customers.
5. Speed and agility
It is resourceful and adaptable, and we achieve results faster than our competitors.
6. Meaningful innovation
It is the technology company that invents the useful and the significant.

H.P’s Corporate Objectives

1. Customer loyalty
It earn customer respect and loyalty by consistently providing the highest quality and
value.
2. Profit
It achieves sufficient profit to finance growth, create value for our shareholders and
achieve our corporate objectives.
3. Growth
It recognizes and seizes opportunities for growth that builds upon our strengths and
competencies.
4. Market leadership
It lead in the marketplace by developing and delivering useful and Innovative
products, services and solutions.
5. Commitment to employees
It demonstrates our commitment to employees by promoting and rewarding based on
performance and by creating a work environment that reflects our values.
6. Leadership capability
It develops leaders at all levels that achieve business results, exemplify our values and
lead us to grow and win.
7. Global citizenship
It fulfils our responsibility to society by being an economic, intellectual and social
asset to each country and community where it does business.

3
Global citizenship:

Global citizenship is HP‘s commitment to hold ourselves to a higher standard of integrity,

transparency, and accountability. The values that have been present since HP was founded in
1939 remain integral to our work today, helping us balance our business goals with our impact on
society and the planet. It has five global citizenship priority areas: ethics and compliance,
environmental sustainability, human rights and labor practices, privacy, and social investment. Its
efforts in these areas help differentiate HP, reduce costs, and drive innovation as they respond to
growing market opportunities and stakeholder expectations. They continue to focus on enriching
people and communities around the world, striving to be a force for positive and lasting change.
At HP, practicing good global citizenship includes supporting human and labor rights, making
strategic social investments—particularly to advance student achievement and entrepreneur
success, and protecting the privacy of customer and employee information .

How does global citizenship contribute to HP’s success?

Global citizenship helps our success because it’s important to our customers. Customers care
about HP’s efforts in areas like climate change and human rights. They also value ways it can
help them be more successful. That could mean an energy-efficient data center that cuts costs
while reducing their carbon footprint, or a centrally managed printing environment that
increases productivity and saves resources. Global citizenship also strengthens our own
business in such areas as increasing efficiency, protecting privacy and maintaining trust with
our stakeholders.

Serving Enterprises:

At HP, It continually explores how technology and services can create new and better ways
for people to live, work, and play. Every day, it partner with our largest customers to
transform their current IT environments into business assets. It recognizes that CIOs are now
business managers who specialize in technology. It work hard to help them create more
manageable IT environments that cost less to operate and deliver more value to the business.
That can mean consolidating their IT infrastructures, speeding access to information,
enabling faster communication between branch offices and headquarters, or helping them
deal with obsolete IT equipment. HP solutions leverage our broad portfolio— from servers
and storage to software and services, imaging and printing, and personal computing
technology—to help companies drive growth, lower business risk, and cut costs.
Driving Technology Transformation:

With the volume of data today increasing faster than our ability to capture and use it, the
industry is rapidly shifting to a model where everything can be delivered as a service. People
want instantaneous access to content and information that they care about. Meeting this
worldwide demand for information and rich digital content will require dynamic, compelling
services. The fundamental building blocks of this model will be smarter, more intelligent
networks; next-generation data centres and perhaps most importantly, software that binds all
the disparate elements together. Over the next five years, HP will invest almost $20 billion in
R&D around three technology areas It believe have the power to propel the industry forward
and improve the way our customers live and work.

4
Stock Performance Graph and Cumulative Total Return:

The graph below shows the cumulative total stockholder return assuming the investment of
$100 on the date specified (and the reinvestment of dividends thereafter) in each of HP
common stock, the S&P 500 Index, and the S&P Information Technology Index. The
comparisons in the graph below are based upon historical data and are not indicative of, or
intended to forecast, future performance of our common stock.

Descriptive Work
Indian IT Industry

5
IT in India over the Years:

1. In 1991, new economic policies were introduced.

2. Foreign multinationals such as Coca Cola, Mercedes, IBM, HP flooded into
3. India, eager to take advantage of the cheap professional labor and the opening up of
one of the world's biggest markets.
4. Adoption of Globalization and liberalization principles brought tremendous success
BPO, IT, ITES, Retail and Insurance sector, health sector, education.
5. IT sector showed the most rapid growth amongst all the sectors.
6. Today more than 500 major international companies have IT operations in Bangalore
alone.
7. Intel‘s Indian development center made chips for computer which are compatible with
Microsoft’s Operating System Vista.
8. Microsoft has established one of its 3 key centres in Bangalore other two being in
China and its HQ in New York.

6
 CHAPTER 2

MARKETING MIX

1.THE FIRST P—PRODUCT

Product is a key element in the market offering. Marketing mix planning being with
formulating to meet target customer‘s need & wants. The customer will judge the offering by
three basic elements- features & quality, services mix & quality & price appropriateness.
Kotler says that ̳A product is anything that can be offered to a market to satisfy the wants or
needs of the consumers.
Products that are marketed include physical goods, services, events, experience, persons,
place, properties, organizations, information‘s & ideas.
A firm is not selling a product. It sells only the p̳ roduct benefit‘. Product is most important
variable in the marketing mix of the firm. If the product is sound & easily acceptable to the
market if it satisfies reseller‘s need & consumer preference & is carefully fitted to the needs &
desires of the customers, sales success is assured. Hence product‘̳ is the center of all-
marketing policies & decisions. The marketing planning begins with the product & also ends
with the product.

7
Products Name:

1. Laptops, Notebook Computers & Tablet PCs

i. Everyday computing
Laptops for movies, music, photos and multitasking in your
home or home office

ii. Performance & entertainment

Laptops for cutting-edge entertainment and gaming

iii. Ultra – portable

Laptop computers or tablet PCs for on-the-go personal

productivity and connectivity

iv. Mini

Perfect companion PC to keep you connected while you

are on-the-go

1. Laptops for Business

i.EliteBook laptops

Best in class, packed with features and

functionality

ii.Compaq laptops

Advanced features for business

iii.ProBook laptops

Stylish and affordable for small business options

8
 2. Other laptops
i.HP Pavilion Home Desktop PCs

a) Fitted with features that appeal to your whole family

and yet flexible and reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern
home however compact the space, whatever the budget

ii.HP Pavilion Elite Home Desktop PCs

a) Fitted with features that appeal to your whole family and

yet flexible and reliable in meeting all their needs.
b) Sleek in design; a stylish showpiece for the modern home
however compact the space, whatever the budget.

3. Monitors

i. Home & Home Office monitors

ii. Business Monitors

4. Options & Accessories

Keyboards, mice, memory, storage, speakers, headsets,

webcams, cables, gaming and other accessories for
desktop computers.
i. Home & Home Office desktop accessories
ii. Business desktop accessories
iii. Extended service plans for Home & Home Office

5. Laser Printers, Inkjet Printers and Multifunction Printers

i.Color Printers
a) Inkjet printers
DeskJet, Office jet, and Business Inkjet printers

I. Home inkjet printers

II. Business inkjet printers

9
 b) Color laser printers

Color laser printers with HP LaserJet performance

I. Home colour lasers

II. Business colour laser

c) Large-format printers

HP Design jet, Design jet Commercial and Scitex

printers; HP Indigo presses

I. Design jet printers

II. Other graphic arts products

ii.Black & White Printers

1. Laser printers

HP LaserJet printers for high-speed, high-volume, high-

quality Printing.

I. Home laser printers

II. Business laser printers

6. Wireless printing

Enjoy the freedom to print from anywhere with HP's

line of wireless printers. Wireless allows greater
mobility, no wires and shared printing. Many HP
printers have wireless printing built into the printer
and HP offers an add-on to your existing printer.
Live Wirelessly. Print Wirelessly.

10
 2.THE SECOND P- PRICE
Sales are only income for any business concern. But price is the main factor, which affects
the sale of the market. If the price is high, few buyers purchase and if the price is low many
buyers purchase. Therefore a sound pricing policy must be adopted to have maximum sale
revenue. Moreover, it is only through proper pricing policy the already laid down marketing
objective and corporate goals could be achieved.
Price is the exchange value of a product or service always expressed in term of money. In
other words, price of a product or service is what the seller feels its worth on term of money,
when offered to a buyer.
To the customer, the price is an agreement between seller & buyer concerning what each is to
receive. The buyer is interested in the price‘ of the whole package‘ consisting of physical product
plus a bundle of expectation and satisfaction. The consumer has numerous expectations such as
after sale service, replacement of parts, technical guidance & money other benefits.
However, to the seller, price is a source of revenue and a main determinant of profit. To the
seller, price is equivalent to the total product offering. This offering includes a brand name, a
package, product benefits, after sale service and so on. We can define price as the ―money
of the product or service agreed upon in a market transaction. So,

Price in money = physical product + bundle of expectations

The Price Factor of PCs

India is a price-sensitive market. When the PC was launched in 1984, it cost well over $4,450
here, and in the late 1980s, the price was around $2,220.
While the price was around $1,100 in the mid-90s, today, a MNC brand with multimedia
costs only around $761.
The Indian market has seen local assemblers stealing a march over their domestic and
multinational computer hardware rivals.

The Indian PC industry has also witnessed the rise and fall of many a domestic brand.
Prominent players who fell out include DCM-DP, Usha, PCL, Sterling and Unicorn, though
many Indian brands including HCL today account for nearly half of the branded PC sales in
the country.
The pricing adopted by HP India Pvt. Ltd. can describe under this subhead: - Competitive
pricing: - HP India Pvt. Ltd. adopted the method of pricing called competitive pricing for
their PCs. Under this policy, the price of HP PCs is fixed according to the price of other
competitor brand of the market & the price moves accordingly.

11
The price list of the some IT Products of HP India Pvt. Ltd. is as follows:

Desktop Price Model

HP (Hewlett-Packard) Touch Smart IQ504 Desktop $972.99

HP (Hewlett-Packard) Pavilion Elite m9550f Desktop $999.99

HP (Hewlett-Packard) Compaq Presario SR5710f Desktop $349.99

HP (Hewlett-Packard) TouchSmart IQ506 Desktop $799.96

HP (Hewlett-Packard) Pavilion a6750f Desktop $659.99

HP (Hewlett-Packard) Pavilion s3710t Desktop -

$379.99
Customizable
HP (Hewlett-Packard) Touch smart IQ526 Desktop $1175.00

HP (Hewlett-Packard) Touch Smart IQ524 Desktop $979.95

HP (Hewlett-Packard) Firebird Voodoo DNA 802 Desktop $972.99

HP (Hewlett-Packard) Touch Smart IQ816 Desktop $1299.99

13
 3.THE THIRD P –PROMOTION
Promotion is the process of making communication involving information, persuasion and
influence. Promotion has three specific purposes. It communicates marketing information to
the customers, users & retailers. Promotion persuades and convinces the buyer & enters into
this consumer behaviour. Promotional efforts act as powerful tools of competition providing
of cutting edge of its entire marketing programmed. Promotion has been defined as ―the
coordinated self initiated effort to establish channel of information & persuasion to facilitate
or faster the sale of goods or services, or the acceptance of ideas of points of view.ǁ It is a
non-price competition.

Broadly speaking, promotion means to push forward or to advance ideas in such a way as to
gain its acceptance & approval. It is an effort by the marketer to inform and persuade buyer
to accept, resell, recommend, or use the article, services or ideas, which is being promoted.
The promotional activity always attempts to affect knowledge, attitude, preferences &
behaviour of recipient, i.e. buyers. The element of persuasion to accept ideas, products,
services etc., is the heart of promotion.
You may have the best product, package & so on. It may have a fair price. But people will not
buy your products, if they have never heard of it, and they are simply unaware of its existence.

The market must communicate to his prospective buyer & provide them adequate information in
a persuasive language. People must know that the right product is available at the right place
& at the right price. This is the job of promotion in marketing. In essence, promotion is the
spark plug in our marketing mix. It is said that:-
“Nothing until somebody promotes something”

Promotion can create & stimulate demand, capture demand from rivals and maintain the
demand of your products even against keen competition. It is true that nothing can be sold &
nothing can make money (except mint) without means of promotion.

The communication & promotion mix includes four ingredients viz.

1. Sales promotion.
2. Advertising.
3. Publicity.
4. Personal selling.

14
 1. Sales promotion

Sales promotion is an important instrument in marketing to lubricate the marketing efforts.

Today, sales promotion is a necessity & not a luxury. It is not expenditure, it is an
investment, which can pay a rich dividends. It is an integral part of marketing effort.
In a specific sense, sales promotion includes those sales activities that supplement both
personal selling & advertising & coordinated them and help to make them effective such as
displays, shows and expositions, demonstration and other nonrecurring selling effort not in a
ordinary routine. Sales promotion aims at stimulating the purchasing at the point of sales &
dealer‘s effectiveness at the retail channel of distribution.
Sales promotion with the reference of HP India Pvt. Ltd.

Company plans to follow two kinds of promotional tool for their products. They are: -
(a) Dealers promotion
(b) Customers promotion

a) Dealers promotion

To make a proper channel of distribution & to increase the market share of the company,
corporate plans to promote their dealer or retailers through the various promotional strategies.
Under which they provide a price off, a straight discount off the list price. The offer
encourages retailers as well as distributors to buy a quantity or carry a new item.
As it is company provide allowances to the distributors for the carrying out of the company‘s
brand. An advertising allowance compensates retailers for advertising the company‘s products.
Company also provides free goods to the distributors as the offer for taking up extra goods or for
carrying new products. In the extra company plans to organize the industrial associations in the
form of trade fairs & conventions o stimulate the sale result of their intermediaries.

b) Customers promotion

Due to the proper attention towards the channel of intermediaries, company is not able to give
proper attention towards consumer‘s promotion but they arrange whole the method of local
promotion for the awareness of the local customers. As it is they also provides demonstration
& gifts to the customers shortly by which products of the company are able to create a spec in
the customer‘s mind.

15
 2. Advertising

The modern age is an era of competition. To withstand competition manufactures have to think of
new & unfamiliar uses for their products or they have to find out new buyers for their products.
The patent medicine people were the first to prove what advertisement could do.
―Advertisement is the art of influencing human action‘ the awakening for the desire to
possess & possess your product.
―Advertisement consists of all the activities in presenting a group a non-personal, oral or
visual, openly sponsored message regarding a product, services or idea.ǁ

Advertising with the reference of HP India Pvt. Ltd.

At present time the chairman of HP India Pvt. Ltd. give attention to make proper distribution
channel for their products. It is the company‘s policy that firstly they make proper
distribution channel for their products by which any customer either he/she will be belongs to
rural area or belongs to urban area got the product easily. After making proper distribution
channels, corporate plans to come through the media, because advertisement on media
requires heavy investment.

As far as advertisement is concerned HP India Pvt. Ltd. provides claim to their respective
stockiest of the different districts of the state for the local awareness / promotion as per
required by the stockiest of the districts.
Local promotion includes Banners, Holdings, and Cable TV. Ads Installing, Trade fairs,
Sponsorship etc. for the awareness of their products to the local customers. Because of the
company doesn‘t come through the media in present time i.e. why company bears all the
expanses for the local promotion as required by the distributors?

It is true, that it is not sufficient in today‘s high competitive marketing scenario, but after the
attainment of the proper distribution channel company definitely come through the media
which is a powerful source of demand generation in today‘s tough marketing scenario & it is
definitely provides a strong consumer pull to the new products of the HP India Pvt. Ltd.

16
 3. Personal selling

A salesman is one who practices the profession of selling. One can learn a lot about selling
and salesmanship just by thinking about definition of personal selling.
American marketing association defined salesmanship as ̳the process of including and
assisting a prospective buyer to buy a commodity or service or to act favourably upon an idea
that has commercial significance to the seller.

E.F. Schumaker defined selling as the̳ process affecting the transfer, with a profit to buyer &
seller, of goods & services that gives such lasting satisfaction that the buyer is predispose to
come back to seller for more of the same.

Personal selling refers to oral presentation in conversation or more prospective customers for
the purpose of making sales.

Personal selling involves two-way communication, a well defined problem is half solved.Due
to seller buyer interaction, personal selling alone can provide immediate feedback of
information, which enables salesman to understand properly the buyer‘s mind, his problems,
his needs & his preferences.

Personal selling with the reference of HP India Pvt. Ltd.

As far as the HP India Pvt. Ltd. is concerned corporate plans the effective medium of
personal selling for their products. They provide full support to the salesman for selling their
products. Effective communication & facilities motivate salesman to make a good
relationship with the customers. Corporate actually knows the importance of the phenomenon
of the personal selling I.e. why they tries to implement the A -I-D-A-S‘ formula of personal
selling. The brief description of this formula is as follows: -
A: - Attention – The Attention of the customer.
I: - Interest- Create an ‘Interest’
D: -Desire
A: - Action
S: - Satisfaction – Customer Satisfaction

17
 4.THE FOURTH P- PLACE
Marketer has to ensure the availability of its products to the target customers. If a product is
not available to the target customers at the right place, then he/she may shift to competitive
products. So place decision relates to:

(i) Channel decision – what kind of distribution channels a company adopts between
plants & consumer.
(ii) Distribution channel policy – whatever to go for extensive or selective or
exclusive distribution.
(iii) Degree of selectivity among wholesalers & retailers.
(iv) Effort to get the cooperation of the trade.
(v) Physical distribution decision includes logistics, transportation, warehousing,
material handling, bulk packaging etc.
Meaning of channels of Distribution

Goods produced by the manufacturers must come to the knowledge of the ultimate consumers.
This is arranging by the sales promotion activities like salesmanship & advertising. By mere
knowledge, the prospective consumers are not happy. The products must reach their hands for
actual use. Channels of distribution are paths through which products move from the point of
production to the point of consumption. Distribution channels are also called Trade channels.

18
COMPETITORS

Major Brands of Computers in India

HCL Infosystems:

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.
The country‘s number one desktop brand had yet another great year selling
4.76 lakh units. The company targeted aggressively the B and C class cities and upped its
distribution network. The significant milestones over the last year include the launch of the
low cost Ezeebee Pride that came with an attractive price tag of Rs 12,990. It attacked all the
buying segments with low cost processors like via to industry standard P4 HT offerings. The
aggression HCL showed in pricing its product in a way kick-started the price war with brands
like Acer, and vendors like HP cutting down end-user price points. Another significant
development for HCL was its launch of the high-end home PC called Neo, complementing its
Beanstalk range. Neo was also the first desktop brand in India to come with Windows XP
Media Center OS. Meanwhile, on the Notebooks front, HCL is the exclusive distributor of
Toshiba in India whose volumes scaled to 20,000 units, compared to last year‘s 11,600 units.
With Toshiba aligned to the
Higher end of the spectrum HCL was unable to tap the low and mid-end segments of the
portables. And to plug that, during the year the company made a low key launch of its own
brand of notebooks called eZeebee and Powerlite, which summed up to 3,000 units during
the fiscal. Meanwhile, the banking vertical did buy aggressively with large mandates from
SBI and other nationalized banks. From the government side, nodal agencies like Tamil Nadu
ELCOT also went for large-scale installations. As a result of growing demand for its
offerings, the company is in the process of expanding its Pondicherry plant.

Acer Computer International Limited:

Few IT companies offer the breadth and depth of products that Acer Group does. Leveraging
the vast collective technological resources available - Acer India (Pvt) Ltd., was incorporated
as a wholly owned subsidiary of Acer Computer International Ltd. on 9th September 1999.
Acer's mission in India is to translate the Group's goal of making computer technology easier
to use and more affordable - to everyone in this country. With a focused customer-centric
approach, Acer in India is offering unmatched uptime for all it's systems through a vast
network of Service points, innovative and user friendly functionality while continuously
lowering barriers that limit the access to the fruits of technology.

19
Zenith Computers:

This Indian company has, over the years, reinvented itself in more ways than one. In that, FY
2004-05 can be called the year of innovation and new product launches for Zenith. It launched
seven notebooks—calling it the power of seven—and priced it aggressively, starting from Rs 35K
for a low-end model and a Centrino at the sub Rs 60K. With its state of the art plant in Goa,
zenith‘s manufacturing capabilities got upped considerably and as a result of the number of
manufacturing best practices the company put in place, it went ahead full steam. The company
claims that its impressive performance was a result of it introducing higher and better range
products, and backing them with superior quality control and distribution. Meanwhile, on the
exports front, the company had mandates from Bangladesh and other SAARC countries, and its
entire product offerings were certified with CE and FCC norms.
IBM:

The acquisition of IBM‘s PC division by Lenovo in December 2004 was probably a shocking
and unexpected development in the global PC industry. Lenovo took over IBM‘s personal
computing division and in the bargain became the third largest computer company in the
world. According to IDC, Lenovo‘s 2004 product volumes stood at 14 million units.
Meanwhile for IBM India, in the first three quarters of 2004, it shipped close to 39,450
ThinkPad notebooks as against 16,036 the corresponding period the previous year,
representing a 146% growth. What drove the demand is buying from two kinds of
consumers—first time notebook buyers went for the low cost sub Rs 40k notebooks, while
consumers who already owned notebooks went for high-end wireless notebooks. Overall,
IBM‘s market share in the notebook space hovered around 26% during the year.

Compaq India:

The world‘s 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 the consequent slashing of IT
budgets of corporate, it turned its attention to the home segment. However, it soon 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 Rs.65, 000 to Rs.50, 000 to penetrate into the
price conscious Indian households.
At the same time, Compaq is aggressively going after corporate segment by offering a range
of products tailored around services to meet specific needs. Its merger with Digital
Equipment further strengthened its position in the high-end server market.
Wipro Limited:

Wipro intends to focus more on the lucrative services business in future. Already, services
accounts for more than half of its turnover. In contrast, the contribution of systems business
dropped from 43 per cent to 25 per cent.
It had a joint venture with Acer for marketing the Wipro-Acer brand of PCs. However, they
called it off in 1999.
Wipro has a 500-strong dealer network. It also distributes IBM PCs and Sun Microsystems.

20
 CHAPTER 3

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

 To explore the perceptual position of different products and financial solution offered
by Hewlett Packard India Sales Pvt. Ltd.

 To find out the penetration of IT products in educational institutions

 To analyse the desires of the potential customers in terms of investment in different
products and financial solutions being offered by the company

 To study the various products of HP like personal computers, laptops, tablets,
software etc.

 To find out the market share of HP in IT products

 To compare the use of IT products in educational institutions

 To explore the unexplored potential market of HP

 To find out satisfaction level of HP users

Analysing the HP financial solutions and its satisfaction amongst customers

HP Enterprise Services today announced new services designed to help clients enhance
customer satisfaction and increase revenue by optimizing the operating efficiency of their
contact centers.

The ways organizations can serve and engage customers are evolving due to the rapid
adoption of social media. To meet the needs of customers, enterprises need to transform their
contact centers into hubs for customer relationship management (CRM) and provide
meaningful, insightful data collection.

The new (CEM) are designed to help enterprises deliver great customer experiences across all
channels, such as smartphones, social media and email, to enhance competitive advantage.
These services aid clients in improving service levels by measuring how easy or difficult the
customer rates the transaction experience or how likely the customer will promote the
products or services to their peers.

21
With HP Transformation Services – CEM, HP can assist clients in their efforts to enhance
their bottom line by increasing revenue per transaction as calculated by contacts handled,
products sold or revenue earned per agent. Additionally, clients can benefit from increasing
the percentage of calls where higher-margin “add on” features are offered to, and purchased
by, the customer.

HP IN EDUCATIONAL INSTITUTIONS

HP For Education enables students to a wide array of information and tools so they can
achieve the true learning experience to succeed in the future. Teachers also benefit from HP
For Education in terms of planning their lessons and projects for a more effective educating
method. Together through HP For Education, teachers and students can confidently deliver
meaningful outcomes for their school.

22
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.

23
 CHAPTER 4

DATA 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.

1. Comparison between Branded & Assembled.

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.
2. If we consider only branded players then the most preferable PC‘s are as follows.

HP and Compaq is the most preferable PC used by the consumers. Both the brands are having
a good image in the market. IBM is having 4% market share but IBM is good brand but due
to its high prices it‘s not more preferable by the Indian consumers.
HP & 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 than others. PC
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.

24
Factors, which are taken into consideration while purchasing the PC.

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 support̳ 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.

25
 3. Measure the need of the PC either for personal or official use.

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.

4. Measure how do customer purchase 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

26
 5. Finance Purchase given by PC vendors

HP gives the 30% finance purchase of total finance purchase HP is providing the many finance
schemes for consumers. HP has tie up with U.B.I., ICICI and B.A.F.L. and providing the better
opportunity of finance to the consumers. 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.

6. MEASURE HOW DO CONSUMERS COME TO KNOW ABOUT

PARTICULAR PC.

7. MEASURE WHICH BRAND IS THE BEST BRAND IN THE CONSUMERS

MIND.

27
HP 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 HP.
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

8. MEASURE THE POST PURCHASE PROBLEM IN THE PC.

Compaq has less post purchase problems than others. HP is having 12% post purchase
problems in the PC. Assembled computers has 16% post purchase problem & PCS has
highest purchase problems in the PC.

28
 9. MEASURE THE PERFORMANCE OF PC

20% consumers say that HP is excellent in performance, 60% consumers says that HP is very
good in performance and 20% thinks that its good in performance.
COMPAQ PERFORMANCE

29
 CHAPTER 5

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 makes the project report more interesting, are basically
known findings.

The findings of this project are as follows:

HP is market leader in PC market but have very close competition with Compaq.
Most people thinks that HP only deals in desktop PC‘s and servers where as only few thinks
that HP also provides facility of software development, networking, internet services, facility
management and high end solutions.

Most people think that HP is typically hardware firm having no relation with software.
Compaq and HP 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. HP is excellent in all factors.
Technology –Wise HP is considered to be number 4 where as IBM, DELL and Compaq HP
are number 1,2 and 3 respectively.
Cost wise HP is at third number after LG and zenith enjoy 1 and 2 position respectively.
Corporate image of HP is not so good. It holds third rank in this category while IBM &
Compaq are number 1 and 2 respectively.

According to customer satisfaction index HP is no.1 with Compaq. Whereas IBM is on

second position.
HP is no 1 in providing the finance purchase to the customers
After sales service and technology are the perceived weaknesses of the HP.

30
 CHAPTER 6

SUGGESTIONS

1. Perception about HP’s after Sales Service and technology has to be changed because
HP is way behind in it compared to its competitors.
2. More awareness should be created regarding the various services offer by HP.

3. HP has to try to establish it‘s after sales service department.

4. Perceived corporate image of HP is not very good so an effort has to be made to

improve it.
5. 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.

6. Need to expend customer care center as the consumer base of HP Ezeebee is

increasing with tremendously fast pace.
7. Proper attention should be paid for advertisement planning otherwise it may lead to
problem for dealer as well as for company.
8. Company should tie up with some event management company to organize various
promotional activities like canopy, Carnival.
9. 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.

10. 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.
11. Company should improve the quality of product

12. Company should give the service of customization of product to the consumers.

31
 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:

HP Infosystems Ltd is one of the pioneers in the Indian IT market, with its Origin 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 HP 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 it‘s lacking
in technology. Company should change its technology. But HP 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.

32
 BIBLIOGRAPHY

WEBSITES:
1. www.indiainfoline.com

2. www.wikipedia.com/hp

3. www.computerworld.com

4. www.hpinfosystem.com

BOOKS REFERRED:
1. Kothari, C.R. Marketing Research, Vikas Publishing House Pvt. Ltd. New Delhi.

2. Kotler, Philip, Marketing Management.

33
 ANNEXURE

QUESTIONNAIRE

I am SATYAM ARYA, a first year B.COM(H) student from DELHI INSTITUTE

OF ADVANCED STUDIES. This information is needed for successful completion
of my project “BUYING BEHAVIOUR OF COMPUTER USERS
TOWARDS H.P. I request you to kindly spare some time and fill the
questionnaire below. Thank you.

RESPONDENT INFORMATION

Name:

Age: 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. HP 2. Compaq 3. IBM 4. LG

5. DELL 6. Zenith 7. Sahara 9. Other

Q.3. Why you opted for this brand?

Cost Support Service Quality Brand Name

34
Q.4. Why do you need the PC?

Personal Use Official Use

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 is the best brand?

1. HP 2. Compaq 3. IBM 4. LG

5. DELL 6. Zenith 7. PCS 8. Sahara 9. Other

Q.8. Did you get any discount on the purchase of the PC?

Yes No

If yes, to what extent?

1-5 %

6-10%

11-15%

ABOVE 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 than 4 yr.

35
Q.10. Do you have any post –purchase problem with your PC?

Yes No

If yes, mention the problem-

Q.11. Do you refer your PC to other also?

Yes No

Q.12. How will you rate the performance of your PC?

Excellent

Very good

Good

Fair

Poor

36