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Maharaja Surajmal Institute C-4, Janakpuri, New Delhi-110058


This is to certify that I have completed this Project titled Marketing Strategies of HP in India under the guidance of Ms. ARTI MALIK in partial fulfillment of the requirement of the award of degree of Bachelor of Business Administration at Maharaja Surajmal Institute, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.

Date: 25-10-12 Place: NEW DELHI


ROLL. NO. 03121201711


This is to certify that the project titled Marketing Strategies of Hp in India is an academic work done by AMIT KUMAR JAIN submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Surajmal Institute, C-4, JANAKPURI, 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.



First of all, I would like to express my thanks to Prof. AZAD. S. CHHILLAR (Director, MSI) 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 Ms. ARTI MALIK, my research guide for her 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.

AMIT KUMAR JAIN Roll. No.: 03121201711






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.

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.

HP Fast Facts:
1. HP was founded in 1939. 2. Corporate headquarters are in Palo Alto, California. 3. Meg Whitman is president and CEO. 4. HP is among the world's largest IT companies, with revenue totaling $127.2 billion for fiscal 2011. 5. HP's 2011 Fortune 500 ranking: No. 11 6. HP serves more than one billion customers in more than 170 countries on six continents. 7. HP has approximately 324,600 employees worldwide. 8. HP's revenue for the four fiscal quarters ended Oct. 31, 2011: $127.2 billion. 9. HP dedicates $3.6 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

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

HPs 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 are 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 fulfills our responsibility to society by being an economic, intellectual and social asset to each country and community where it does business.

Global citizenship:
Global citizenship is HPs 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 investmentsparticularly to advance student achievement and

entrepreneur success, and protecting the privacy of customer and employee information.

How does global citizenship contribute to HPs success?

Global citizenship helps our success because its important to our customers. Customers care about HPs 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 technologyto 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 centers; 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.

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.(1) 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.

Stock Performance Graph and Cumulative Total Return

300 Investment 200 100 0 Hewlett-Packard Company S&P 500 S&P Information Technology

2004/0ct 100 100 100

2005/0ct 84.93 109.42 99.14

2006/0ct 129.42 118.96 104.52

2007/0ct 180.6 138.4 114.9

2008/0ct 242.7 158.56 145.81

2009/0ct 180.97 101.32 85.72

Year Hewlett-Packard Company S&P 500 S&P Information Technology

HP Retains Leadership:
2009 PC Shipments (Desktop PCs + Notebook PCs) Vendor Hewlett-Packard Dell HCL Info systems Acer Lenovo Market Share 15.6% 11.0% 9.6% 7.7% 6.6% 2010 PC Shipments (Desktop PCs + Notebook PCs) Vendor Hewlett-Packard HCL Info systems Dell Acer Lenovo Market Share 18.2% 9.8% 9.7% 7.3% 4.7%

Descriptive Work
Indian IT Industry:

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. Intels Indian development center made chips for computer which are compatible with Microsofts Operating System Vista. 8. Microsoft has established one of its 3 key centers in Bangalore other two being in China and its HQ in New York.

Marketing Mix

Product Promotion
1. The First PPRODUCT

Place Price

Product is a key element in the market offering. Marketing mix planning being with formulating to meet target customers 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, informations & ideas. A firm is not selling a product. It sells only the product 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 resellers 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.


Company plans to increase their product range in the future. A brief description of some products is as follows: 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

2. Laptops for Business i. EliteBook laptops

Best in class, packed with features and functionality


Compaq laptops
Advanced features for business


ProBook laptops
Stylish and affordable for small business options


3. 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


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.

4. Monitors
i. Home & Home Office monitors Business Monitors


5. Options & Accessories

Keyboards, mice, memory, storage, speakers, headsets, webcams, cables, gaming and other accessories for desktop computers. i. ii. iii. Home & Home Office desktop accessories Business desktop accessories Extended service plans for Home & Home Office

6. Laser Printers, Inkjet Printers and Multifunction Printers

i. Color Printers

Inkjet printers DeskJet, Office jet, and Business Inkjet printers

I. Home inkjet printers II. Business inkjet printers


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 7. 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.



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 tem 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 Unicorp, 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.

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


HP (Hewlett-Packard) Pavilion Elite m9550f Desktop


HP (Hewlett-Packard) Compaq Presario SR5710f Desktop


HP (Hewlett-Packard) TouchSmart IQ506 Desktop



HP (Hewlett-Packard) Pavilion a6750f Desktop


HP (Hewlett-Packard) Pavilion s3710t Desktop Customizable


HP (Hewlett-Packard) Touch smart IQ526 Desktop


HP (Hewlett-Packard) Touch Smart IQ524 Desktop


HP (Hewlett-Packard) Firebird Voodoo DNA 802 Desktop


HP (Hewlett-Packard) Touch Smart IQ816 Desktop




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 behavior. 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. 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 & behavior 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. 2. 3. 4. Sales promotion. Advertising. Publicity. Personal selling.

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 & dealers 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) (b)

Dealers promotion 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 companys brand. An advertising allowance compensates retailers for advertising the companys 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 consumers 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 customers mind.


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.

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 companys 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. Adz Installing, Trade fairs, Sponsorship etc. for the awareness of their products to the local customers. Because of the company doesnt 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 todays 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 todays tough marketing scenario & it is definitely provides a strong consumer pull to the new products of the HP India Pvt. Ltd.


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 favorably upon an idea that has commercial significance to the seller. E.F. Schumaker defined selling as the 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 buyers 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 D: - Desire A: - Action -- Create an Interest. -- Ignite the Desire of the customer. -- Gaining an order.

S: - Satisfaction Customer Satisfaction.



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.

Distribution Channels of HP India Pvt. Ltd. State

Eastern Central Western

Distributors Retailers Customers

Distributors Retailers Customers

Distributors Retailers Customers



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 countrys 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 years 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 Tamilnadu 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 Pondycherry 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.

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 notebookscalling it the power of sevenand 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, zeniths 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.

The acquisition of IBMs PC division by Lenovo in December 2004 was probably a shocking and unexpected development in the global PC industry. Lenovo took over IBMs personal computing division and in the bargain became the third largest computer company in the world. According to IDC, Lenovos 2004 product volumes stood at 14 mn 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 consumersfirst 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, IBMs market share in the notebook space hovered around 26% during the year.

Compaq India:
The worlds 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.


Research Methodology
In application of market research the research has to go through several steps or stages and these steps are following.

Step 1: Defining the Problem:

Defining the problem is the most important part of the market research process, because wrong definition misdirects research. The type of the research to be carried out, the questions to be raised, and the sampling procedure to be followed and the data to be collected, all depend on the current understanding of the problem. HP is having tough competition in the market with other players these players are assemblers and branded. There are many factors, which influence the buyer for purchasing the PC. A major step in the conduction of marketing research is the decision regarding the nature of research design we are selecting for the purpose of our study. The benefits of research design are that it evaluates clients need in terms of results and the analytical work on the gathered data that will convert it to useful findings for the management. The selection of a particular design depends on the causality of the variables involved. For the purpose of our study we intend to take up descriptive design. They cover research designs that are intended to produce accurate descriptions of variables relevant to the decision being faced, without demonstrating that some relationship exists between variables. Decision makers very often choose or are willing to accept descriptive data, which would permit only inferences to be drawn about causation. Here we are using cross-sectional design to produce a picture of the phenomena in which the decision maker is interested for example, the market shares of various firms, consumers brand images and consumption, consumer perception regarding PC


Step 2: Develop the Research Plan:

The second stage of marketing research calls for developing the most efficient plan for gathering the needed information. Designing a research plan calls for decisions on the data sources, Research approaches, research instruments, sampling plan, and contact methods.

Research Approaches:
Primary data can be collected in five ways: Observation, Focus groups, Surveys, Behavioral-data, and Experiments.

Observation research:
Fresh data can be gathered by, observing the relevant actors and settings.

Focus group research: A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service, organization, or other marketing entity. The moderator needs to be objective, knowledgeable on the issue, and skilled in-group dynamics. Participants are normally paid a small sum for attending. The meeting is typically held in pleasant surroundings and refreshments are served.

Survey research: Surveys are best suited for descriptive research. Companies undertake surveys to learn about people's knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in the general population. This approach best suited for project-research hence this method was adopted (survey-research) for the project work.

Behavioral Data:
Customers leave traces of their purchasing behavior in store scanning data, catalog purchase records, and customer data bases. Much can be learned by analyzing this data.


Experimental research:
The most scientifically valid research is experimental research. The purpose of experimental research is to capture cause- and-effect relationships by eliminating competing explanations of the observed findings.

1. Data Sources: The researches can gather secondary data, primary data, or
both. Secondary data are data that were collected for another purpose and already exit some-where. Primary data are gathered for specific purpose or for a specific research project. When the needed data do not exist or are dated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing research projects involve some primary data collection. Same is the case for our project as well. For the purpose of our study we have collected primary data in the form of (1) the datas nature and (2) its function in the ultimate interpretation and analysis.

Types of data
1. Demographic 2. Sociological 3. Psychographic 4. Behavioral

Here we are going to analyze the opinions that how people perceive something what they believe about it and what those believes signify. The most potent form of opinions tends to be attitudes, which are mental sets of predispositions to act in some manner. Here in our project we intend to analyze the opinions and attitudes of the target population by using appropriate sample. So the data collected in our project is basically demographic and behavioral.


Communication approaches
In deciding on which of the several of communication means to choose, a researcher has much to consider a simple division of communication media into two broad types: observation and questioning. Also we will consider the matters of whether to use structure and disguise. From the point of view of our project we have selected the questioning method of communication with our selected respondents, and for that purpose we have drafted a questionnaire to quantify and evaluate the customer responses.



In the majority of research problems, the required information can be gained only by asking for it. This is done mainly by interviewing, but also data maybe obtained through self-administered questionnaires distributed by mail and other ways. As explained earlier that we have selected the questionnaire method of data acquisition, therefore, we choose to draft the questionnaire having closed ended questions and that will help us quantify the results in an appropriate format.

Research instruments:
Marketing researchers have a choice of two main research instruments in collecting primary data: Questionnaires and mechanical devices.

A questionnaire consists of a set of questions presented to respondents for their answer. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested, and debugged before they are administered on a large scale. In preparing a questionnaire, the professional marketing researcher carefully chooses the questions and their form, wording, and sequence. The form of the question asked can influence the response. Marketing researchers distinguish between closed-end and open-end questions. Closed-end questions-prespecify all the possible answer. Open end-questions provide answers that are easier to


interpret and tabulate. Open-end questions often reveal more because they do not constrain respondents, answers. Finally, the questionnaire designer should exercise care in the wordings and sequencing of questions. The questionnaire should use simple, direct, unbiased wording and should be protested with a sample of respondents before it is used. The lead question should attempt to create interest. 3. Mechanical


Mechanical devices are occasionally used in marketing research. One example is of Galvanometers used to measure the interest or emotions aroused by exposure to a specific and or picture.

From basic aspects of measurement and meaning, we proceed to their application in designing the instruments for seeking and recording data. Data may be obtained by either observing or asking for them, and forms are needed for field use in observation and interviewing. The accuracy and relevancy of the data gathered depend heavily on the questionnaire.

A questionnaire is simply a formalized schedule to obtain and record specified and relevant information with tolerable accuracy and completeness. In other words, it directs the questioning process and promotes clear and proper recording.



Determine the specific data to be sought.

Determine the interviewing process.

Evaluate the question content.

Determine response format.

Determine wording of the questions.

Determine questionnaire structure.

Determine the physical characteristics of the form.



and final draft.

We in our questionnaire have tried to evaluate buying pattern of our customer. Now, for major the consumer behavior we first, define what consumer behavior means is.


It is a matter of wonder that why people behave the way they actually do in the market place. At times we are mystified by our own acts being unable to rationalize them. Innumerable questions constantly agitate the mind. For example, do advertisements lure us into buying the products advertised? Why people buy impulsively on some occasions, but in other instances act as careful shoppers? These questions and such other questions infact are of equal importance to the marketer. For example, if a marketer can unravel the consumer behavior what do they buy, how do they buy and so on he can orient his strategy around these answers. Such a marketer can acquire, serve, and retain the customers for life. Knowing the customer thus is very important. A study of consumer behavior, though not guaranteeing 100% success in the market place, raises the possibility of success. By studying the potential customer, marketer gains insight into the attitudes, interests, lifestyles, etc.of the target segment. It will help, for example a marketer to understand how westernized portrayal of women will be acceptable to the customers in say, a cosmetic ad. Thus, broadly speaking, consumer behavior study aims at identifying groups of consumers with similar life styles who are likely to behave in a similar manner when some product related news is communicated to them. Then a marketer can adopt effective strategies to reach them, and make an offer.


When a prospective customer receives a marketing cue (product, price, promotion, and placement related) he undergoes a process of decision making. This decision making is conditioned by a variety of factors like personal, interpersonal, and non-personal factors. If the impact of these factors is positive, then the customer can decide to purchase else a purchase may not take place. The consumer decision-making model is an appropriate tool this time to present the real conditions in which the consumer decides to purchase. The all circumstances he goes through. This model represents that upon receiving a marketing stimulus a customer processes through the phenomenon of perception, learning, motivation, attituditional disposition, etc.



Socio Culture Factors Culture Demographics Social Class Reference Group Family Firms Marketing Mix Product Features Price Placement Psychological Factors Perception Learning Motivation Personality Attitudes

Target Customer

Do I need the product? More information? If yes, where from do I get more information? I should evaluate information? And I should finally decide on. Should I make a purchase? Or, should I position it for now? Reject all the choices?





The consumer behavior cant be studied without knowing perception process of the respective customer. For example, a marketer uses advertising as a tool to influence a customer. The very first thing is to ensure that the target customer has the opportunity to see or hear an advertising message. This is to be ensured by using appropriate This task being accomplished, the next job for the advertiser is to create awareness (perception) about the advertised brand. But the mere awareness about the product is not enough. In order evaluate the alternative choice, and then settle on one, a consumer needs enough information about the brand: learning has to take place. This learning may induce a person to purchase a brand if he is motivated. The moment information processing starts prception, learning, and motivation occur.



Physical Data Physiological Screen -Sight (Sensory) -Hearing -Taste -Smell -Touch Psychological Screen (Emotional) Personality Self concept Belief and Attitude Learning and Habits Cognition (Awareness) Non-awareness (Ineffective message)



Sponsored Advertisement Displays Price Tags Non-Sponsored Media news others Conversation with Sales Promotion

Perception Memory

Thus the first task of the marketer is to make a customer aware (perceive) the Existence of his offer. Subsequently, the customer learns more about it, forms a positive attitude towards it, feels motivated to but it, and finally may land up purchasing it if other determining factors do not dictate his choice in some other direction. There are many small and big reasons, which directly or indirectly affect the buying behavior of the customer. The same effort has been done by me also to know the customers behavior regarding the personal computers. The behavior which I have observed during summer training period and have taken a responsibility to know more is really a factor which directly affect the sales of the computers.


Sampling and determination of sample size Sampling Plan: After deciding on the research approach and instruments, the marketing researcher must design a sampling plan. This plan calls for three decisions: 1 .Sampling Unit: Who is to be surveyed? The marketing researcher must define the target population that will be sampled. The target population for our survey was everyone aged between 18 to 50 years belonging to socio economy class middle lower, middle upper and upper class .Our sampling frame was Delhi. 2. Sample Size: How many people should be surveyed? Large samples give more reliable results than small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. A total of 75 interviews were conducted in Delhi region in different locations. 3. Sampling Procedure: How should the respondents be chosen? To obtain a representative sample of the population, a probability sample of the population should be drawn. Probability Sampling allows the calculation of confidence limits for sampling error. Three types of probability sampling are described in following table, part A. When the cost or time involved in probability sampling is too high, marketing researchers will take Non probability sampling. Following table, part B, describes three types of non-probability sampling. Some marketing researchers feel that non-probability samples are very useful in many circumstances, even though they do not allow sampling error to be measured. A) Probability Sample: Simple random sample - Every member of the population has an equal chance of selection. Stratified random sample - The population is divided into mutually exclusive group (such as age groups), and random samples are drawn from each group. Cluster (area) sample The population is divided into mutually exclusive

groups (such as city block), and the researchers draw a sample of the groups to interview.


B) Non

Probability sample:

Convenience sample - The researcher selects the most accessible population member. Judgment sample - The researcher selects population members who are good prospects for accurate information. Quota sample - The researcher finds and interviews a prescribed number of people in each of several categories I have conducted the convenient sampling in different areas in Delhi and NCR region.

Data source
To meet with consumers and asked to fill structured questionnaire and no secondary data was collected. Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment. Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.

Step 3: Collect the Information:

The data collection phase of marketing research is generally the most expensive and most prone to error. The information collected should be both accurate and relevant as per as the requirements of research project. Depending on the requirement, the researcher has to work out a suitable data collection method. Broadly data collection method can be classified into, (a) Primary Methods: when data is directly collected by a researcher, they are known as primary methods e.g. interviews and questionnaires. (b) Secondary Methods: The data are termed secondary data when they were not originally collected for use in the research project under consideration, they were collected rather for use by some other person or for some other project.


Step 4: Analyze the Information:

The next step in the marketing research process is to extract findings from the collected data. The researcher tabulates the data and develops frequency distributions. Averages and measures of dispersion are computed for the major variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings.

Step 5: Present the Findings:

As a last step of market research process, Results (findings) are extracted from the Analysis of information and are presented to the related party. The researcher should present major findings that are relevant to the major marketing decisions facing management. The findings should be written in a concise, simple and objective orientated language. For the purpose of our project, the analyses were conducted on the basis of following conditions. As we earlier suggested that we are going to categorize the scores into various intervals. Now as we have attached scores to all the parameters according to their importance .


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.



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.


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 PCs are as follows.

4% 4% 12% 32%

8% 32%



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 its 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. PCS 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.

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

180 160 140 120 100 80 60 40 20 0

Series1 Series2



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 support 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.

4. 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.


5. Measure

how do customer purchase the PC.


100% 80% 60% 40% 20% 0% FINANCE CASH

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 6. Finance

Purchase given by PC vendors

FINANCE PURCHASE GIVEN BY PC VENDORS 35% 30% 25% 20% 15% 10% 5% 0%


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. 7. MEASURE HOW DO CONSUMERS COME TO KNOW ABOUT

CONSUMER COME TO KNOW ABOUT PC THROGH VARIOUS FACTORS 60% 50% 40% 30% 20% 10% 0% relatives & friends sales promotion advertiseme nt sales executive


Consumers come to know about the PC through advertisements and after through relatives and friends, branded companies are mainly indulging with advertisements. For example HPS 499 get the PC in just 499 RS. These are advertisements conducted by the HP. Relatives and friends of the consumers also take the main part for choosing the PC. Sales promotion and sales executive comes in last. 8. MEASURE WHICH BRAND IS THE BEST BRAND IN THE

BEST BRAND OPTED BY CONSUMERS 50% 40% 30% 20% 10% 0%



OPTED 44% 32% 12% 10% 2%

RANK 1 2 3 4 5

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 9..MEASURE THE POST PURCHASE PROBLEM IN THE PC.

POST PURCHASE PROBLEM IN THE PC 25% 20% 15% 10% 5% 0%


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.




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 is the same as HP performance.


1. Perception about HPS 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 its 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.



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:

1. HP is market leader in PC market but have very close competition with Compaq. 2. Most people thinks that HP only deals in desktop PCs and servers where as only few thinks that HP also provides facility of software development, networking, internet services, facility management and high end solutions. 3. Most people think that HP is typically hardware firm having no relation with software. 4. Compaq and HP are two companies that are at top of mind in consumers mind. 5. Cost, quality and service are two major factors that are taken into consideration while purchasing the PC. HP is excellent in all factors. 6. Technology Wise HP is considered to be number 4 where as IBM, DELL and Compaq HP are number 1,2 and 3 respectively. 7. Cost wise HP is at third number after LG and zenith enjoy 1 and 2 position respectively. 8. Corporate image of HP is not so good. It holds third rank in this category while IBM & Compaq are number 1 and 2 respectively. 9. According to customer satisfaction index HP is no.1 with Compaq. Whereas IBM is on second position. 10. HP is no 1 in providing the finance purchase to the customers 11. After sales service and technology are the perceived weaknesses of the HP.


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 its 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.


I am NARENDER KORI, a second year BBA student form MAHARAJA SURAJMAL INSTITUTE. This information is needed for successful completion of my project BUYING BEHAVIOUR OF COMPUTER USERS

TOWARDS H.P. I request you kindly spare some time and fill the
questionnaire below. Thank you.




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 5. DELL 2. Compaq 6. Zenith 3. IBM 7. Sahara 4. LG 9. Other

Q.3. Why you opted for this brand? Cost Support Service Quality Brand Name


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 Relatives & Friends Sales personnel of the company Sales promotions

Q.7. According to you which brand is the best brand? 1. HP 2. Compaq 3. IBM 4.LG




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? 1.1-5% 2. 6-10% 3.11-15% 4. Above than 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.

Q.10. Do you have any post purchase problem with your PC? Yes No

If yes, Please 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? a. Excellent b. Very good c. Good d. Fair e. Poor




1. 2. 3.



1. Kothari, C.R. Marketing Research, 3rd edition, 1997, Vikas Publishing House Pvt. Ltd, New Delhi.

2. Kotler, Philip, Marketing Management