G- MARC Executive Excellence Program

Gargi College, New Delhi

Group number :2 Case title : HEWLETT-PACKARD DISCOVERS MARKETING Case Number : #1 Date Submitted: 30th August, 2011 Due date : 10th September

Apoorv Agarwal apoorv.agarwal14@yahoo.in

Summary

HEWLETT PACKARD DISCOVERS MARKETING

HEWLETT PACKARD
HP focuses on simplifying technology experiences for all of its customers from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the worlds largest IT companies. During fiscal 2009, HPs operations were organized into seven business segments: Services, Enterprise Storage and Servers, HP Software, the Personal Systems Group, the Imaging and Printing Group, HP Financial Services, and Corporate Investments.

HP is one of the first companies to commit to the World Economic Forums Global Greenhouse Gas Registry and participates in the following climate change and renewable energy partnerships: Suastinable Silicon Valley (SSV), Climate RESOLVE, Pew Center on Global Climate Change, California Climate Action Registry Board of Directors, the PFC Reduction Climate Partnership and the U.S. EPAs Fortune 500 Green Power Challenge

Hewlett Packard Marketing Strategy

Management philosophy according to which a firm's goals can be best achieved through identification and satisfaction of the customers' stated and unstated needs and wants.

The Marketing Concept Kotler

The marketing concept holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets

H-P, has adopted marketing concept, it keeps on designing portable Model to be compatible with other PCs . These portabe designs includeBuilt in hardware and software. Dealers were particularly pleased when H-P began offering larger quantity discount. By 1987, computers and peripheral equipment accounted for over 65%of H-P sales and profits. Goverment was a strong customer segment and even in 1987 10% of the company s output was sold to the U.S GOVERMENT

The 4 P's of services marketing are:-

PRODUCT(P) PRICE(P) PLACE(P) PROMOTION(P)

- It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors

The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product

Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet

Represents all of the communications that a marketeer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations

What did Hewlett - Packard do???

Orientation
Very early in the history of HP, became clear. Shortly after completing their first year in business, Bill and Dave agreed that all employees should share directly in the future success of the company. (vision, mission, policies) In 1940, the young company made its first charitable donation - $5 to local charities. The same year, the company paid its first bonus to employees, a $5 Christmas bonus, and adopted a production bonus. (tactical) These programs became the basis for the company-wide profit-sharing plan that commenced in 1962. (emergent strategy) Subsequently, Mr. Packard and Mr. Hewlett decided to provide catastrophic medical insurance, host regular parties and picnics for the employees and use first names to address employees, including themselves. In 1948, HP implements an insured pension plan for all employees with a minimum of five years service with the company. That year, Dave began what would become nine years of service on the Palo Alto school board. The founders believe that HP had a responsibility to be a good corporate citizen.

For computers:-

HP has customers in every arena of the business world. To get the most out of its customers, the company began using the consumer as a guide to its small business and corporate initiatives. Their customers have shown a marked enthusiasm for this approach, which in turn has given HP more qualified leads and business partners. This strategy allows the company to be led by the customer.

The Current Strategy for Hewlett - Packard

According to Barney Beal's 2004 article, HP's new approach was developed to deal with the 86 marketing departments in use at the time of the merger. When the merger occurred, it created a series of internal problems. HP had to deal with multiple platforms, legacy systems and a lack of continuity among its marketing departments. Each department had separate budgets and resources, leaving the company with no idea of the marketing focus or the total amount spent on marketing. The new strategy allowed the company to focus on a results-based, data-driven model. The aim of this strategy was to give the new company a single language that enabled parts of the marketing campaign to be integrated.

Similarly the way H-P focused on consumers, car companies also focused and offer double warranty schemes and by making promises of 24/7 service and assistance. And by making the latest hardware and software inbuilt in the system at reasonable price that will surely attract the customers.

Maruti Udyog Limited (MUL), was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world.

Support your customers through the entire customer life cycle

All customers are not created equal. Some represent a reliable source of profitable revenue; others do not. You must strike a delicate balance, especially in your contact centersreduce the cost of attracting, retaining and rewarding your best customers and improve the customer experience to create loyal and satisfied advocates. HP CRM Services provides efficient, effective services that let you recruit, retain and reward your best customers anywhere in the world. We transform your customer contact center into a revenuegenerating, multichannel customer retention center. We process and fulfill orders in direct-to-consumer operations.

We have the services you needautomatic call distribution, interactive voice response, workforce management, quality monitoring, knowledge management and all the rest. CRM Managed Services lets you:
Improve customer satisfaction, retention and share of wallet Better support customer needs and preferences Gain flexibility and scalability Improve agent morale and retention by using leading tools Enhance brand recognition and equity Mitigate operational risks and better manage compliance with policies and regulations