Marketing Management
ASSIGNMENT ON STP ANALYSIS OF
Hewlett Packard
Submitted to: Submitted by:
Professor Ajay Bansal Pulkit Chauhan-MA(pgma2035)
Segmentation, targeting and positioning of Hewlett
Packard
Introduction of Company
Hewlett Packard, commonly known as HP, is an American IT and hardware
company which deals in different types and versions of software and hardware
products. It was founded by William Hewlett and David Packard in the year 1939,
giving company its conjoint name. It headquarter is in Palo Alto, California, USA.
HP is the second largest computer manufacturer in the world preceded by
Lenovo. HP lost its first position to Lenovo in 2014.
In Hewlett Packard splits into two companies, Hewlett Packard Inc., and Hewlett
Packard Enterprise. Major competitors of HP are Lenovo, Dell, Acer etc.
HP has produced a wide range of products like:
inkjet and laser printers
Officejet printers/scanners
professional business and gaming laptops and desktops
personal computer systems
digital cameras
display and accessories
notebooks, etc.
Market Segmentation:
Dominance in personal computer market by HP is such an exceptional
achievement by the company. Such success was able to get only through
systematic techniques. Understanding market and its segments is one of the most
important factors.
Talking about the market segmentation strategies, Hewlett Packard performs
mainly demographic and behavioral market segmentation strategies.
Geographic market segmentation is not performed by the company because it is
providing its products and services in more than 150 countries. Such widespread
is because there is almost no one who is untouched by the technology and its
usage, if not advanced than at least in the simple form.
But still segmentation can be performed on the basis or regions and cities. Rural
areas have less customers compared to urban areas. Cities like Mumbai, Delhi,
Bangalore, Hyderabad have much more customers compared to other cities.
Because these cities have, most of the companies and firms.
Demographic segmentation is performed by company in more details to clear
their customers whom they want to serve.
Gender- there is no such segmentation based on gender as both males and
females use laptops and other technological goods.
Age: segmentation can be done on age basis. Like students from age 10-18 can
use student personal computer as learning is becoming digital extensively these
days. After this, age group of 18-50 can be made who uses more complicated
features of computers and other devices in their job or other working conditions.
Income: when talking about the market segmentation in India, which is already a
price sensitive market, this becomes a very important field of segmentation.
Affordability is a major issue. With the advancement of technology and its use, it
brings efficiency but at the same time technological advancements are expensive.
So, Hewlett Packard cannot just launch a highly expensive laptop in India to grow.
Although technology is needed but to buy such technology, consumer must have
that much money. So, in India, HP is launching such laptops which are in budget
with good technology. Basically for low income consumers.
Behavioral segmentation can be done by Hewlett Packard mainly on the
characteristics of usage rate.
Occasional user- personal computer user, who use products occasionally. Like
homemakers who use product for entertainment or some occasional work.
Daily users- this segment includes professionals who use computers and related
products on the daily basis.
Market Targeting:
Targeting is focusing on a particular segment customer who shares common
needs and characteristics.
Targeting practice used by Hewlett Packard is Differentiated marketing. Because
HP right now is focusing on different marketing segments providing them
different offers. But in that also, company’s focus is on the workforce who are
doing jobs in corporate offices and firms.
Having a detailed study of Indian scene, gaming community and trend is
increasing in India nowadays with a rapid speed. HP has not entered the gaming
computer market with an affordable price and good quality. HP has launched only
one product which is HP Pavilion. Gaming community is rapidly expanding in India
and launch of products for gamers would be a good decision.
Hewlett Packard can target its customers in different ways:
1) to target the gamers segment, Hewlett Packard can provide combined
package and do co-branding. Like it can sell computer on offer combining
them with trending game creation company’s games or providing online
games subscriptions with computers.
2) To target corporate job customers, company can provide free subscription
of software extensively used in professional work.
3) Company can also target students who continue their learning through
student laptops.
So target segment of HP includes:
Households
Youth gamers
Youth students
Business professionals
Technological professionals
Positioning
Positioning is product’s place in mind of customers regarding different attributes.
Its about the perception of consumers about the product. Hewlett Packard has
already been at the top layer of market when talking about the personal
computers. Its image in the mind of the customer is very trustworthy company
offering quality and at the same time affordable product. HP’s motive is to
provide advanced technological services and products. Their major brand
associations are that the products are easily portable (can be used in different
environment) and reliable.
But such technology driven products and services have short product life cycle
due to advancements and innovation in technology. So, the product reaches the
maturity stage in less time as compared to normal products. And at that later
stage of product life cycle, competitors have a great change to launch the product
to get consumers. So, to avoid losing customers and keeps its positioning right, HP
needs to develop new products with latest technology to retain customers.
HP’s differentiation is on different attributes like:
Price (affordability)
Technology
Performance
After sale services
Reliability
For such technological advancements, HP spends a good amount of money in its
research and development process. According to me, HP should spend in
research of target market segments also to increase number of consumers.
Same can be done on competitor analysis also.
