INTRODUCTION

•Hewlett-Packard Company , commonly referred to as HP, is an

American multinational information technology corporation
headquartered in Palo Alto, California, USA(1939).

•HP is one of the world's largest information technology companies and

operates in nearly every country.

•Its founders are bill hewlett and david packard.

•HP specializes in developing and manufacturing computing, data

storage, and networking hardware, designing software and delivering
services.

•HP markets its products to households, small- to medium-sized

businesses and enterprises directly as well as via online distribution,
consumer-electronics and office-supply retailers, software partners and
major technology vendors.
Bill Hewlett and Dave Packard graduated in
electrical engineering from Stanford University in
1935.

The company originated in a garage in nearby

Palo Alto during a fellowship they had with a past
professor, Frederick Terman at Stanford during the
Great Depression.

 In 1939, Packard and Hewlett established

Hewlett-Packard (HP) in Packard's garage with an
initial
 Of thecapital
many investment of US$538.
projects they worked on, their very
first financially successful product was a precision
audio oscillator, the Model HP200A.

HP incorporated on August 18, 1947, and went

public on November 6, 1957.
One of the company's earliest customers was
The Walt Disney Company, which bought eight
Model 200B oscillators .(at $71.50 each)
The company was originally rather unfocused, working on a wide range of
electronic products for industry and even agriculture. Eventually they elected to
focus on high-quality electronic test and measurement equipment.

From the 1940s until well into the 1990s the company concentrated on making
electronic test equipment: signal generators, voltmeters, oscilloscopes, frequency
counters, thermometers, time standards, wave analyzers, and many other
instruments.

A distinguishing feature was pushing the limits of measurement range and

accuracy; many HP instruments were more sensitive, accurate, and precise than
other comparable equipment.

On september 3,2001 hp has announced that an agreement has been reached
with compaq to merge the two companies.In may 2002,after passing a shareholder
vote,hp oficially merged with compaq.
 Computer Monitors
Digital Cameras
Enterprise Software
Indigo Digital Press
Mobile Phones
Networking
Personal Computers and
PRODUCTS Laptops
Personal Digital Assistants
Printers
Scanners
Servers
Storage
Televisions
1 .PRINTERS
1.1 LaserJet printers (color and
monochrome)
1.2 ColorJet printers
1.3 PSC/Photosmart All-in-one printers
1.4 Photosmart printers
1.4.1 Portable models
1.5 HP Photosmart Express Kiosk
1.6 HP Photosmart Studio Kiosk
1.7 OfficeJet All-in-one printers
1.8 Designjet Printers
1.9 Deskjet printers
1.10 HP Software products
2 .DIGITAL CAMERAS
2.1 Original line
2.2 HP E-series
2.3 HP M-series
2.4 HP R-series
3 .SCANNERS
3.1 Scanjet series
4. PDAs
5.POCKET COMPUTER 7.BUSINESS DESKTOPS

5.1 Lx series 7.1 HP X-Terminal

5.2 OmniGo series 7.2 Business Desktop
5.3 Jornada 7.3 HP TouchSmart PC
5.4 iPAQ 7.4 HP Brio
7.5 HP VECTRA
6.DESKTOP CALCULATORS AND 7.6 HP e-PC(e-VECTRA)
COMPUTERS
8.THIN CLIENTS
6.1 Computer Terminals
6.2 Plotters 8.1 BladeSystem
6.3 Pocket calculators 8.2 Thin Client
 9 PERSONAL DESKTOPS 11 PERSONAL NOTEBOOKS

9.1 Compaq Presario Desktop 11.1 HP Omnibook

9.2 HP Pavilion 11.2 Compaq Presario
9.3 HP Blackbird 002 11.3 Pavilion notebooks
11.4 G series
10 BUSINESS NOTEBOOKS 11.5 HP Mini
12 WORKSTATIONS
10.1 Compaq Evo 12.1 PA-RISC based
10.2 Business Notebook 12.2 Itanium based
10.3 HP Mini 12.3 Alpha based (from DEC, via Compaq)
10.4 HP ProBook 12.4 x86 based
10.5 HP EliteBook 12.5 Blade Workstations
10.6 Mobile Thin Client
 SERVERS

13.1 x86 (Intel & AMD Opteron) based

13.1.1 Entry Level Servers
13.1.2 ProLiant DL Series
13.1.3 ProLiant ML Series
13.1.4 ProLiant BLp blades
13.1.5 ProLIant BLc blades
13.2 Itanium based
13.3 Alpha based
13.4 PA-RISC based
 LIST OF AQUISITIONS

As of 2008, Hewlett-Packard has made a total of 116 acquisitions

since 1986.
 Its first acquisition was the F.L. Moseley Company in 1958. This
move enabled HP to enter the plotter business, which was the
predecessor to its printer business today.
 In 1989, HP purchased Apollo Computer for
US$476 million,enabling HP to become the largest supplier of
computer workstations.
 In 1995, the company bought another computer manufacturer
Convex Computer for US$150 million.
In 2000, HP spun off its measurement, chemical and medical
businesses into an independent company named Agilent
Technologies.
The company's largest acquisition came in 2002, when it merged
with Compaq, a personal computer manufacturer, for US$25 billion.
MARKETING SELLING AND
DISTRIBUTION STRATEGIES

MICHAEL MENDENHALL
CMO , HP
 Telling stories means
giving messages in a
narrative format.

 Telling stories that

customers want to hear ,
when they want to hear
and which they want to
believe.

 Story telling
approach
makes consumers
develop relationship with
the brand

 Makes the brand efficient ,

effective and in touch.
MODELS OF ENGAGEMENT
 “OPENING DOORS JUST A
LITTLE”

Helps harness the talent of the

customers

Eg: competition on MTV to

design new netbooks
HP’s store in store strategy
It is a mini island within a
large retail outlet.

An island that is

independent, exclusive to
its own products ,
associates and atmosphere

Aims to provide
customers with an
experience that exceeds
their expectations
21
 MISSION & STRATEGIES
STATEMENT

• Mission Statement:
“To provide customers with superb value, high quality,
relevant technology, customized systems, superior service
and support, and products and services that are easy to
purchase and use.”

• Strategy Statement:
“To do business with its consumers one-on-one, through
the phone or internet.”

22
 Dell’s Strategy – Direct From Dell
Sales Of Computer Systems Directly To Consumers
Elimination of Retail Middlemen
Computer System Construction Based Upon
Individual Customer Needs

• Quick Introduction of
State Of The Art
Technology
• Elimination Of Heavy
Inventory Investment

23
 DELL PRODUCT MIX

24
 Product Line

25
 Target Market

DELL have always been suppliers for

businesses and that is the way it is going to
be in India. DELL is No.1 in the businesses
market, while number four in the consumer
market.

By Michael Dell

26
 Effect On Working Capital

• Reduction
Of
Inventory

2009 2008 2007 2006 2005 2004

Inventories
28-Jan-09 30-Jan-08 Jan-31-07 Feb-1-06 Feb-2-05 Jan-28-04

Days of sales outstanding 32 31 28 29 32 34

Days of supply in inventory 4 3 3 4 5 6
Days in accounts payable
Version 1.0
73 70 68 69 58 58
27
Cash conversion cycle -37 -36 -37 -36 -21 -18
 Company Value

Intangible Value of Dell

Market Capitalization
Breakdown

R&D % of Net
(in millions of $) Expenditures Revenue
Dell $463 < 1%
Apple 489 6%
HP 878 4%
Source: Dell, Apple, and HP – 10-K filings
28
 Storage
Server POS
Software

Desktop
Notebooks
Peripherals

29 Version 1.0
 Performance
Net Revenue
(in millions of $)

30
 Industry Analysis

31 Version 1.0
 Pricing Matrix

32 Version 1.0
 Dell’s Market Segmentation

33
 Competitor environment Evolving

34 Version 1.0
 Significant growth opportunity for
Dell

35
 PC SUPPLY CHAINS
Customer
PULL Customer

Distribution
Channels

PUSH PULL
Dell
Manufacturer

Suppliers
Suppliers PUSH
Typical PC Supply Chain
(Compaq, HP, IBM, etc.) Dell Supply Chain

• PULL PROCESS (REACTIVE PROCESS)

36
• PUSH PROCESS (SPECULATIVE PROCESS)
37 Version 1.0
 Supply Chain Management

38 Version 1.0
39 Version 1.0
DISTRIBUTION CHANNELS
 While H-P used to own the #1 spot in the PC market, Dell
took over the top spot in 2003. Dell’s direct distribution
model became the envy of all PC manufacturers and made
them a darling on Wall Street

 direct sales over the internet and phone

Probs with HP

* Late and incomplete deliveries

* Strained partner relations
* No marketing focus (the printer division handled PC
marketing)
 Steps for improvement
If you need to improve your channel performance like H-P, here are six things
you can do to improve your top line.

1. Make it a priority. Devote resources to channel management – preferably at

least one dedicated manager whose sole responsibility is to manage those
relationships and build the marketing programs to drive revenue through the
channel.

2. Develop measurements and track performance. Know who your best sales
performers are at each point in the channel. By tracking orders, volume and
total revenue at each point, you can identify and improve underperforming
partners and keep your top performers happy.

3. Communicate! Build relationships at each step of your channel. If you’re not

talking with your partners, how can you identify problems and solve them? And
how will you know whether your programs are working and how to make them
better?
Steps for improvement
 4. Drive revenue through the channel. Take ownership of the marketing
campaigns that will drive revenue at all levels through the channel. Your
partners have to focus on building their own customer base, not marketing just
your product (remember that you’re not the only solution they offer).

 5. Avoid pricing conflicts. Establish a pricing strategy and stick to it. If channel
conflict arises because of price, attempt to resolve it ASAP.

 6. Address conflicts swiftly. Since distrust and channel conflict is common, it’s
important to address problems quickly to find a solution.

 After writing this, it’s even clearer to me why there’s no buzz about channels.
Building and managing traditional channels isn’t glamorous and requires a lot
of elbow grease. But even though channels have little sizzle in the marketing
mix, they’re a big piece of the steak.
DELL VS HP
 Pricing
 1. As both Dell and HP sell their merchandise directly, they are able
to maintain a cheaper price when compared to other manufacturers. In
2009, low-end Dell and HP laptops could be purchased for as low as
$399. At retail, HP laptops may cost more.
 Promotions
 2. Both HP and Dell offer promotions frequently for their laptops.
The better deal can change at anytime, depending on the quality of the
promotion.
 Aesthetics
 3. Both HP and Dell offer a variety of designs and colors. Dell uses
more standard paint on their laptops while HP uses a more glossy
substance.

 Durability
 4. Laptops from Dell and HP are designed to last a few
years (taking into account care and use). Depending on the
type of laptop purchased, a limited time warranty is
included with both Dell and HP. All warranties can be
extended for a price.
 Upgrades
 5. Lower-end models for both brands have little to no
upgrade options. Users can upgrade the hard drive, video
cards and other significant components in mid- to high-end
models. Dell and HP both offer upgrade options for a
reduced price. Experienced users can install the parts
themselves.
 More about DELL & HP

“It’s amazing to me that our competitors think the

customer is the dealer.”
Michael Dell

Be Direct: DELL
“Sales Leader: Tops in Global Basis.”

The Challenges and Evolution of

Marketing
 MAJOR FOCUS
 Dell instead trained his eye on finding the most efficient way
to get tech products into the hands of the consumers.

 Perfected the credo— “Cut out the middleman.”

 DELL eliminated the need for inventory or middlemen and
gave itself a built-in price advantage, which it in part keeps as
profit and in part passes on to customers.”

and Evolution of Marketing

  “Selling tech products by
telephone and then the Internet…
Michael broke the paradigm about
how to run a computer business;
they haven’t been so great at
finding the next paradigm.”
- Business Week

and Evolution of Marketing

 Introduction
DELL did not want the “unsophisticated” customer.
DELL wants to sell to the “educated” customer.
DELL wants the consumer to buy their third or fourth
system from DELL. It’s more profitable and easier.

and Evolution of Marketing

SWOT Analysis
Business to Consumer Business to Business
Strengths Opportunities Strengths Opportunities
Customization Server Market Customization Server Market

Price International strategy Price International strategy

Customer Focused Product extensions Customer Focused Additional markets

Technical Knowledge Technical Knowledge Product extensions

Market Market Diversification Strategic partnerships

Diversification Strong
Strong Brand/Positioning
Brand/Positioning Media Savvy
Media Savvy Direct Marketing
Direct Marketing Model
Model Non-myopic strategy
Non-myopic strategy

Tangibility Competition across Technology Market Competition across

Technology Market markets Inventory markets

Commodity pricing Commodity pricing
Commoditization

Inventory (shrinking margins) (shrinking margins)

Complexity of Mgmt. Complexity of Mgmt.

Growth exceeding Growth exceeding

productivity productivity
The Challenges and Evolution of
Weaknesses Threats
Marketing Weaknesses Threats
 GOLDEN RULES

 Three Golden Rules of DELL:

1. Disdain inventory
2. Always listen to the customer
3. Never sell indirect.

and Evolution of Marketing

STRATEGIES
 BUILD-TO-ORDER MANUFACTURING
AND MASS CUSTOMIZATION

 PARTNERSHIP AWITH SUPPLIERS.

 DIRECT SALES.

 CUSTOMERS SERVICES.

 RESEARCH & DEVELOPMENT.

The Challenges and Evolution of

Marketing
 DELL RETAIL STRATEGY
Now Dell planned to consolidate its supply chain and manufacturing activities
globally and venture into retail business in order to regain its leadership status.
GOO (Global operation organization) is Dell's center for consolidating its global
manufacturing, procurement and supply chain activities. The company aimed to
integrate its supply chain and achieve higher efficiency and quality through
GOO. Overlapping activities would be eliminated, and new manufacturing and
distribution models to focus on the requirements of the customers spread across
the world would be introduced as a part of GOO.
Analysts said it was time for Dell to move into PC retailing by establishing
exclusive stores and selling PCs through retailers. They felt that in order to
realize higher returns, Dell should concentrate on providing a better customer
experience and introducing path breaking products by investing more in R&D.
They were of the view that Dell needed to move from model based on cost
control to an innovation based model providing personalized solution to
customers. Now Dell mix the direct model with new strategy.

and Evolution of Marketing

 Marketing Strategy
HP use the which relies on how their business customers
view and rate their products, this strategy helps them to
get constant feed back about their products, and then they
try to achieve customers' requirements and give products
the support needed in order to establish a strong support
system. This strategy also helps to strength the
relationship between the company and clients. What
separates these companies from each other is the work
they do on how they can satisfy their clients, that
happens through offering their clients more and more
services.

and Evolution of Marketing

 Ethnocentrism Vs Polycentrism
Dell considers South Asian market similar to that of US
and Europe
HP considers this vital market as a separate entity and
hence is targeting it differently.
Dell follows principle of ethnocentrism
HP is following Polycentrism

and Evolution of Marketing

 Summary
HP vs. Dell. HP’s business has long
faced the difficult choice…focusing
on grabbing market share or
improving profitability.
HP’s approach. Aggressively
battling Dell to claim bragging rights
as top PC seller.
and Evolution of Marketing
 Summary
HP is backing away from seeking
market share at all costs or
going all-out to upseat Dell
from the top.”
Investors are applauding.” Saying
it’s a positive thing for HP.
and Evolution of Marketing
and Evolution of Marketing
and Evolution of Marketing