c



Marketing of c Pavilion A6550IN

Desktop

BY: - GROUP- 1

Barun Dash

Bhavesh Kumar

Bhawani Sankar Prasad Jena

Binny Gupta

Biswadeep Sinhamahapatra

Bhavya Doshi
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ACKNOWLEDGEMENT

Our sincere and heartfelt thanks to Prof. Anuj Jain, our Marketing Management
Faculty for giving us the opportunity to prepare a Project Report on a PRODUCT.
Working on this project enhanced our vision regarding the various strategies that
a product undergoes during sale and how companies strive to innovate and
improvise to remain in market or rather to increase the sale.

The project would not have been completed without the help and assistance of all
the shop dealers from Ganesh Chandra avenue, Chandni Chowk and Mr. Samit
Misra, Product Manager, HP(Gurgaon), who generously provided us with valuable
inputs regarding HP A6550IN with respect to our aforesaid project. Sincere thanks
to you all.

We record our deepest regards to all the faculty members of our institute for
their help in all fields such as reviewing our work, collection of data and giving us
valuable suggestions when we required them the most.

Lastly we would like to thank the Almighty for his blessings and giving us the
strength and power to keep going in life, our friends for motivating us throughout
the making of this project.
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DECLARATION CERTIFICATE

This report entitled Marketing of HP pavilion A6550IN Desktop is submitted in

fulfillment of the requirement for the Marketing Project of 1st semester, two-year
MBA program at IBS Kolkata.

To the best of our knowledge, the content provided in this report is authentic.

Date: 06/09/09
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CONTENTS

Acknowledgement i

Authorization ii

Abstract iii

1. Introduction

1.1 About Hp 07

1.2 Objectives 09

1.3 Scope of the study 09

1.4 Limitations of the study 10

2. Methodology

2.1 Sampling Design 10

3. Actual collection of data

3.1 Data sources 11

4. Analysis

4.1 Market segmentation 12

4.2 Target market 12

4.3 Positioning 13
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4.4 Product 14

4.5 Price 15

4.6 Place 18

4.7 Promotion 20

5. Findings

5.1 Primary data 23

5.2 Secondary data 28

6. Product Life Cycle

6.1 Product development phase 30

6.2 Introduction Phase 31

6.3 Growth phase 32

6.4 Maturity phase 33

6.5 Benefits of the PLC mode 34

7. Conclusion 35
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ABSTRACT

HP is the largest technology company in the world and operates in nearly every
country. HP specializes in developing and manufacturing computing, storage, and
networking hardware, software and services. Major product lines include
personal computing devices, enterprise servers, related storage devices, as well as
a diverse range of printers and other imaging products. In 1982, HP makes
advances in business computing when it introduces the HP 9000 technical
computer with 32-bit "superchip" technology. HP launched a new desktop, c
pavilion A6550IN. We conducted a survey to know about the strategies opted by
HP to market the product. In this survey we visited several shops to collect
primary data and considered internet and other sources for secondary data. The
objective of our survey was to know the market segmentation, target market,
positioning and marketing mix factors considered by HP to market A6550IN.
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INTRODUCTION
1.1 About HP

In 1939, Stanford University classmates Bill Hewlett and Dave Packard established
Hewlett-Packard (HP) in Packard's garage with an initial capital investment of
US$538. From the 1940s until well into the 1990s the company concentrated on
making electronic test equipment ʹ signal generators, voltmeters, oscilloscopes,
frequency counters, thermometers, time standards, wave analyzers, and many
other instruments. HP is recognized as the symbolic founder of Silicon Valley and
around 1960, HP developed semiconductor devices primarily for internal use, the
instruments and calculators were some of the products using these devices.

HP partnered in the 1960s with Sony and the Yokogawa Electric companies in
Japan to develop several high-quality products. HP spun off a small company,
Dynec to specialize in digital equipment. The name was picked so that the HP logo
"hp" could be turned upside down to be the logo "dy" of the new company.
Eventually Dynec changed to Dymec, and then was folded back into HP. HP
experimented with using Digital Equipment Corporation minicomputers with its
instruments. But after deciding that it would be easier to buy another small
design team than deal with DEC, HP entered the computer market in 1966 with
the HP 2100 / HP 1000 series of minicomputers.

HP experimented with using Digital Equipment Corporation minicomputers with

its instruments. But after deciding that it would be easier to buy another small
design team than deal with DEC, HP entered the computer market in 1966 with
the HP 2100 / HP 1000 series of minicomputers. In 1984, HP introduced both
inkjet and laser printers for the desktop. In the 1990s, HP expanded their
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computer product line, which initially had been targeted at university, research,
and business customers, to reach consumers.

Î000: HP moves up the Fortune 500 listing to No. 13

Î001: In March, HP creates a new business unit, HP Services. The new

organization includes IT consulting, outsourcing, support, education and solutions
deployment.

Î00Î: In February, HP Labs opens research facilities in Bangalore, India. On May

3rd, HP and Compaq officially merge, beginning operations as one unified
company. HP now serves more than one billion customers across 162 countries,
and is a leading global provider of products, technologies, solutions and services
to consumers and businesses. The company͛s offerings span IT infrastructure,
personal computing and access devices, global services and imaging and printing.

Î003: As HP approaches the one year anniversary of the merger, it secures three
major managed services deals in the telecommunications, manufacturing and
financial services industries, reflecting its value proposition of high tech, low cost
and the best total customer experience.

Î004: HP moves up the Fortune 500 listing to No. 11. In January, HP announces its
digital entertainment strategy: an array of products and partnerships aimed at
transforming the way people experience music, movies, TV, photographs and
digital entertainment content.

Î005: In November, HP establishes a research lab in Beijing, China. In July, HP

announces a breakthrough ink-based printing platform.

Î006: In October, HP acquires VoodooPC, a high-end gaming PC provider.

Î007: HP introduces the TouchSmart PC, an all-in-one PC with a touch-screen UI.

HP also introduces a touch-screen consumer tablet PC.

Î008: HP is the first IT Company to release information on the greenhouse gas

emissions associated with its products. In April, HP introduces a full-function,
mini-notebook: the HP 2133 Mini-Note PC designed for the education market, it
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also offers mobile professionals a sleek, lightweight device that provides access to
information and the ability to collaborate with others.

Î009: HP moves up the Fortune 500 listing to No. 9. The HP Photosmart Premium
with TouchSmart Web allows users to print from the web using the printer as
their only access device.

This report is an analysis of the marketing strategy adopted by hp
    

 

 



1.Î OBJECTIVE
The increased usage of computers in our day to day life and the conductive
business environment fostered by the government, it is no wonder that
computers have become an integral part of our lives. Due to immense
competition the HP is offering more choice, better services, quicker settlement,
tighter regulation and greater awareness. The environment has become more and
more competitive and services and products become alike, creating a
differentiation is becoming extremely tough. Thus, the project objective is to
know the strategies opted by HP to market the c pavilion A6550IN desktop.

1.3 Scope of the study:

ù This study is conducted by collecting primary data from various shops in
Chandni Chowk, Kolkata and secondary data from internet and other
sources.
ù The number of respondents(outlets) surveyed is 12.
ù The study is conducted in Kolkata city only.
This study is conducted to know the strategies opted by HP to market the c
pavilion A6550IN desktop.
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1.4 LIMITATIONS
Though the present study aims to achieve the above mentioned objectives in full
earnest and accuracy, it may be hampered due to certain limitations. Some of the
limitations of this study may be summarized as follows :

ù This study is limited to Kolkata city only.

ù Getting accurate responses from the respondents was difficult due to their
inherent problems.
ù Due to want of time, convenience sampling is used which incorporates
greater standard error.

METHODOLOGY

The study was conducted on the bases of survey through questionnaires given to
respondents.

Î.1 Sampling Design

Population: Kolkata

Sample Size: 50 shops

Sample Technique: Convenience Sampling

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ACTUAL COLLECTION OF DATA

3.1 Data sources:

The sources of data include either secondary data or primary data and even some
times the combination of both. The present study concentrated on both primary
and secondary data.

Primary data:

Primary data is collected through face-to face interaction with owners of desktop
outlets.

Secondary data:

The secondary data used for the study are inclusive of the data collected from the

internet, catalogues and brochures and magazines.

ANALYSIS

Marketing Plan: Elements

y Market Segmentation
y Target Segment
y Positioning
y Marketing Mix
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4.1 Market Segmentation

c India has segmented the desktop market into three segments:-

Economic Range: - Low range desktops not having features like wireless keyboard
and mouse, game-card ranging between Rs 20,000-30000.

Medium Range: - Medium range desktops have featured like wireless LAN,
graphic card, etc and these ranges between Rs. 30000-45000.

High Range: - These include highly expensive desktops such as c Touchscreen

ranging greater than Rs. 50000.

Again this market can be segmented on the following basis:-

Processor based: - The low end or budget PCs use Intel Atom processors or Intel
dual core processors .These processors are cheap and consume less power. The
mid-segment uses Intel Core 2 Duo Processors which are high on performance
and enables multi-tasking .The premium segment uses Intel Quad Core and also
comes with a high-end motherboard, more RAM and hard-drive capacity.

Feature based: - Desktop features may include high RAM, graphics cards, wireless
keyboard and mouse, Wi-Fi, Bluetooth, blue-ray drive, inbuilt CPU with the
monitor, touch-screen UI, 7.1 channel sound card.

4.Î TARGET MARKET

Once the firm has identified its market segment opportunities, it has to decide
how many and which ones to target. There are five patterns of target market
selection:-
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y Single-segment
y Selective specialization
y Product specialization
y Market specialization
y Full market coverage

HP as a company follows full market coverage pattern to target the computer

industry and the product we have considered (pavilion A6550IN) targeted the
medium range (30000-45000). It has a presence in the economic segment by the
brand name ͞Compaq͟.

4.3 POSITIONING
Product positioning is the image that a product produces in the minds of
customers in comparison to the competitors͛ products and also in comparison to
other products of the same company.

c has positioned itself in the medium segment of the Indian desktop market .The
economic segment is catered by the COMPAQ brand name. c desktops have
highʹend features keeping the customer and the competitors in mind.
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MARKETING MIX
4.4 PRODUCT
The model we are considering is HP Pavilion A6550IN and the processor is Intel
Core 2 Duo processor.

HP Pavilion A6550IN Features:

š Processor - Intel Core 2 Processor 2.66 GHz.

š RAM - 2-GB DDR2 (800 MHz)
š HDD - 320GB SATA II (7200rpm)
š Optical Drive - 16X DVD SuperMulti Drive with Double Layer (8.5GB)
support.
š Graphics - nVIDIA GeForce 7100GE, 128 MB Dedicated Video Memory.

Additional Features:

š 15-in-1 Card Reader

š Up to 7.1 Surround Sound Ready

Monitor:

š 18.5͟ Wide TFT

Operating System:

š Windows Vista Home Basic

Variety: - consist of 15 inch and 18.5 inch screens.

Quality: - known to provide the best quality.

Brand: - world no.1 brand sales wise, also no.1 brand in India.
Design: - nice attractive design that blends with home-décor.

Services: - c provides on-site repairing and maintenance services.

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Warranties: - This product is available with a 3 year warranty.

4.5 PRICE
The desktop market has three price points: high price, medium price and
economic price.

Factors considered in selecting the pricing policy for A6550IN-

1. Pricing Objective-The objective behind pricing A6550IN was to maximize

market share
2. The range of prices was determined by market demand (ceiling) company
costs analysis(floor).
3. The firm also considered competitor͛s costs, prices, product features, its
own pricing policies and possible price reactions.
4. The brand͛s quality and advertising relating to the competition were also
considered.

The pricing method adopted was basically Perceived-Value Pricing ʹ The firm
must deliver the value promised by its value proposition and the customer
must perceive this value. Advertising and sales force are used to communicate
and enhance perceived value in buyer͛s minds.

List price: - the model with 15 inch monitor Comes at Rs 35000 and the model
with 18.5 Inch monitor comes at Rs 37000.

Discounts: - In the case of consumer selling discounts are offered time to time. In
the case of commercial selling, discounts are offered depending upon the bulk of
purchase.
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Price Comparison:
COMPANY MODEL FEATURES PRICE(Rs.)

HP A6550IN Processor - Intel Core 2 Duo Processor 2.66 GHz

RAM - 2-GB DDR2 (800 MHz)
HDD - 320GB SATA II (7200rpm) 37,000
Optical Drive - 16X DVD SuperMulti Drive with
Double Layer (8.5GB) support
Graphics - nVIDIA GeForce 7100GE, 128 MB
Dedicated Video Memory
Monitor - 18.5͟ Wide TFT
Operating System - Windows Vista Home Basic

ACER Aspire IE-4731P Processor - Intel Core 2 Duo Processor 2.66 GHz
RAM - 2-GB DDR2 (800 MHz) 31,899
HDD - 320GB SATA II (7200rpm)
Optical Drive - 16X DVD SuperMulti Drive with
Double Layer (8.5GB) support
Graphics - nVIDIA GeForce 7100GE, 128 MB
Dedicated Video Memory
Monitor - 18.5͟ Wide TFT
Operating System - Windows Vista Home Basic

DELL INSPIRON RÎ61Î03 Processor - Intel Core 2 Duo Processor 2.66 GHz
RAM - 2-GB DDR2 (800 MHz) 33,850

HDD - 320GB SATA II (7200rpm)

Optical Drive - 16X DVD SuperMulti Drive with
Double Layer (8.5GB) support
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Graphics - nVIDIA GeForce 7100GE, 128 MB
Dedicated Video Memory
Monitor - 18.5͟ Wide TFT
Operating System - Windows Vista Home Basic

COMPANY MODEL FEATURES PRICE(Rs.)

EZEEBEE TOP Z3Î1
HCL CÎD Processor - Intel Core 2 Duo Processor 2.66 GHz
RAM - 2-GB DDR2 (800 MHz) 30,990

HDD - 320GB SATA II (7200rpm)

Optical Drive - 16X DVD SuperMulti Drive with
Double Layer (8.5GB) support
Graphics - nVIDIA GeForce 7100GE, 128 MB
Dedicated Video Memory

Monitor - 18.5͟ Wide TFT

Operating System - Windows Vista Home Basic

Assembled Intel E7300 Processor - Intel Core 2 Duo Processor 2.66 GHz 5900

RAM - 2-GB DDR2 (800 MHz) 800

HDD - 320GB SATA II (7200rpm) 2500

Optical Drive - 16X DVD SuperMulti Drive with

Double Layer (8.5GB) support 1050

Graphics - nVIDIA GeForce 7100GE, 128 MB

Dedicated Video Memory 1000

Monitor - 18.5͟ Wide TFT 6800

Operating System - Windows Vista Home Basic 4000

Keyboard and mouse 700

Cabinet 2150
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Total Î4,900

4.6 PLACE
Place includes marketing tools like channels, coverage, assortments,
locations, inventory and transport.

Channels: - c has tie-ups with prominent dealers throughout the country for
selling its PCs through different outlets e.g., in Kolkata c has tied up with Bard
Roy InfoTech (P) Ltd.

Role of the marketing channels is to help the firm achieve superior efficiency in
making goods widely available and accessible to target markets. Through their
contacts, experience, specialization and scale of operation, they offer the firm
more than it can achieve on its own.

A marketing channel performs the work of moving goods from producers to

consumers. It overcomes the time, place and the possession gaps that separate
goods and services from those who need or want them.

Generally the following factors are considered while selecting a distributor by c 

Market segment - the distributor must be familiar with hp͛s target consumer and
segment.

Producer - distributor fit - Is there a match between their policies, strategies,

image, and c ͛s attributes?

Basically a two-level channel is used by c

1. Wholesalers - They buy from hp and resell to retailers. They provide storage
facilities. They reduce the physical contact cost between the producer and
consumer.
 c


2. Retailers - They have much stronger personal relationship with the
consumer. They also hold several other brands and products. They give the
final selling price to the consumer.

Internet Selling (Zero-level channel) - Though some of c ͛s products can be

purchased via internet, c is concerned that if it promotes e-commerce then
retailers may get c products out of their shelves.

Coverage: - c has the largest dealership network in the country. It has 29

service partners in the Eastern region, 39 service partners in the Western region,
46 service partners in the Northern region and 47 service partners in the Southern
region.  has got offices in Bangalore, Ahmadabad, Chandigarh, Chennai,
Coimbatore, Delhi, Hyderabad, Jamshedpur, Kolkata, Kochi, Lucknow, Mumbai,
Pune and Vadodara.
 c



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4.7 PROMOTION
Sales promotion:-c uses sales promotion tools like coupons, contests, premiums
ʹ to draw stronger and quicker buying response. They offer three distinct benefits
Communication, Incentive, Invitation. At present, a Tata photon is being gifted
with every A6550IN model PC.

Advertising: - Ads feature regularly in TVs and newspapers, magazines to educate

customers about its new products.
 c


Public Relations: - c provides on-site service to its customers thus maintaining
good relation with the customers and keeping them satisfied. c also sponsors
several events in various colleges and institutions. c has extended its product
recycling program in India beyond corporate customers to include consumers and
small and medium-sized businesses (SMBs). Customers can drop off c -branded
technology equipment at c service centers in 17 locations across 9 cities in India.
As part of the consumer take-back program, c accepts, at no additional charge,
any c printer, scanner, fax machine, notebook or desktop PC, monitor, handheld
device, or camera and associated external components such as cables, mice and
keyboards. After collection, c consolidates the products and sort for recycling
locally in India. With technology products and consumer environmental
awareness on the rise, there is a greater urgency around disposing of equipment
in an environmentally responsible manner. c has had a product take-back
program for corporate customers in India since 2003. Product take-back and
Computer reuse program are part of its comprehensive end-of-life asset recovery
services.

For decades c has been an environmental leader, driving company stewardship

through its c Eco Solutions program, which spans product design, reuse and
recycling as well as energy and resource efficiency. c influences industry action
by setting high environmental standards in its operations and supply chain, by
providing practical solutions to make it easier for customers to reduce their
climate impact and through its research on sustainability solutions that support a
low-carbon economy.

Some other promotion techniques applied by c for pavilion A6550IN desktop

are:

Festive Promos and Student Promos.

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&
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FINDINGS
5.1 Primary Data:
½c
 



y Market Share ʹ
y 50 HP
y 15 DELL
y 20 HCL
y 10 Assembled
y 5 ACER, LENOVO and other brands like Toshiba

HP goes for different kinds of promotions all through the year by offering gift
hampers and the latest of them being Tata Photon.

Customer Preferences ʹ HP Desktops

y Purchase member: Family

y Budget: Rs. 30,000 ʹ 35,000
y Desktop appearance: Small sized CPU i.e. slim line models
y Portability is the main concern
y Color - Black
y LCD - 18.5͟

Reason behind the purchase of HP Desktops:

y Brand Name
y Quality - Configuration
y Services Provided ʹ Repair, On-site Warranty.
y Offers highest warranty period of 3 years in comparison to other brands.
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½c


  



y Market Share ʹ
y 35 HP
y 15 DELL
y 20 HCL
y 15 Lenovo and ACER
y 15 Assembled

Customer Preferences ʹ HP Desktops

y Purchase member: Students

y Budget: Rs. 20,000 ʹ 25,000
y Desktop appearance: Big CPU rather than smaller one so that they can
embed extra features later on like graphics card, RAM and HDD
enhancements, etc which require greater space.
y Color - Black
y LCD - 18.5͟

Reason behind the purchase of HP Desktops:

y Brand Value
y Quality - Configuration
y Services Provider ʹ HP is considered to be the no.1 service provider in
comparison to other brands.

The offers provided by HP have proved successive in attracting specifically

students like the following:
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y Add-on gifts ʹ Warranty of 3 years
y Home theater, Scratch cards and the latest of them being Tata Photon.

½c

½


y Market Share ʹ
y 40 HCL
y 20 DELL
y 15 HP
y 15 Assembled
y 10 Lenovo

Customer Preferences ʹ HP Desktops

y Purchase member: Family

y Budget: Rs. 35,000 ʹ 40,000
y Desktop appearance: NA
y Color - Black
y CRT Monitor

Reason behind the purchase of HP Desktops:

y Services Provided: HP is considered as no.1 with the advantage of HP

having its own service center.
y Offers highest warranty period of 3 years in comparison to other brands.


 c




½c

½
 c



y Market Share ʹ
y 40 HP
y 25 DELL
y 10 HCL
y 20 Assembled
y 5 ACER, LENOVO and other brands like Toshiba

Customer Preferences ʹ HP Desktops

y Purchase member: Family

y Budget: Rs. 25,000 ʹ 30,000
y Desktop appearance: LCD models
y Usage is the main concern
y Color ʹ Black/white
y LCD - 18.5͟

Reason behind the purchase of HP Desktops:

y Brand Name
y Quality - Configuration
y Services Provided ʹ Repair, On-site Warranty.
y Offers highest warranty period of 3 years in comparison to other brands.


 c


½c





½


y Market Share ʹ
y 10 HCL
y 15 DELL
y 15 HP
y 20 Assembled
y 40 Lenovo

Customer Preferences ʹ HP Desktops

y Purchase member: Family

y Budget: Rs. 40,000 ʹ 45,000
y Desktop appearance: mainly focused on the keyboard, mouse and the
screen
y Color ʹ Black

Reason behind the purchase of HP Desktops:

y Services Provided: HP is considered as no.1 with the advantage of HP

having its own service center.
y Offers highest warranty period

CUSTOMER


Afford to go for HP Desktops rather than going for the assembled ones if the price
range differs by Rs. 6,000 ʹ 7000.

The more the number of offers the better the brand is considered.
 c


HP provide offers round the year so it is given the first preference in comparison
to other brands

5.Î Secondary Data:

EFY times: As per 2009

www.efytimes.com

Market Share: ʹ
y 12.7 HP (Retained the top spot)
y Second spot by HCL and Acer

IDC: As per 2007

www.idcindia.com

Market Share: ʹ
y 21 HP (Retained the top spot)
y 13 HCL
y 10 Lenovo

ITS News Online: As per 2006

www.itnewsonline.com

Market Share: ʹ
y 15.7 HP (Retained the top spot)

PRODUCT LIFE CYCLE

All products and services have certain life cycles. The Product Life Cycle (PLC) is
based upon the biological life cycle. For example, a seed is planted (introduction);
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it begins to sprout (growth); it shoots out leaves and puts down roots as it
becomes an adult (maturity); after a long period as an adult the plant begins to
shrink and die out (decline). The life cycle refers to the period from the product͛s
first launch into the market until its final withdrawal and it is split up in phases.
During this period significant changes are made in the way that the product is
behaving into the market i.e. its reflection in respect of sales to the company that
introduced it into the market. Since an increase in profits is the major goal of a
company that introduces a product into a market, the product͛s life cycle
management is very important.

A PLC is traditionally viewed, from a marketing perspective, as being comprised

of four distinct stages: Introduction, Growth, Maturity and Decline.

The figure given below shows the each stages of product life cycle.

Before the introduction stage product development phase comes in a picture.

6.1 PRODUCT DEVELOPMENT PHASE

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Product development phase begins when a company finds and develops a new
product idea. This involves translating various pieces of information and
incorporating them into a new product. A product is usually undergoing several
changes involving a lot of money and time during development, before it is
exposed to target customers via test markets. Those products that survive the
test market are then introduced into a real marketplace and the introduction
phase of the product begins. During the product development phase, sales are
zero and revenues are negative. It is the time of spending with absolute no return.
HP had already faced a situation in which computer product was not successful
due to lack of development and test market strategies. In the case of desktops HP
did the market survey and point out customer requirement in right manner
.Company omitted their previous problem in terms of computer product. They
tested the market by the grey marketing concept.

6.Î INTRODUCTION PHASE

The introduction phase of a product includes the product launch with its
requirements to getting it launch in such a way so that it will have maximum
impact at the moment of sale. Large expenditure on promotion and advertising is
common, and quick but costly service requirements are introduced. A company
must be prepared to spent a lot of money and get only a small proportion of that
back. In this phase distribution arrangements are introduced. Having the product
in every counter is very important and is regarded as an impossible challenge.
Some companies avoid this stress by hiring external contractors or outsourcing
the entire distribution arrangement. This has the benefit of testing an important
marketing tool such as outsourcing. Pricing is something else for a company to
consider during this phase. Product pricing usually follows one or two well
structured strategies. Early customers will pay a lot for something .Later the
pricing policy should be more aggressive so that the product can become
competitive. Another strategy is that of a pre-set price believed to be the right
one to maximize sales. This however demands a very good knowledge of the
market and of what a customer is willing to pay for a newly introduced product. A
successful product introduction phase may also result from actions taken by the
company prior to the introduction of the product to the market. These actions are
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included in the formulation of the marketing strategy. This is accomplished during
product development by the use of market research. Customer requirements on
design, pricing, servicing and packaging are invaluable to the formation of a
product design. A customer can tell a company what features of the product are
appealing and what are the characteristics that should not appear on the product.
So in this way a company will know before its product is introduced to a market
what to expect from the customers and competitors.

In the beginning 2002 the competition for Desktop in India was very low. Dell and
Lenovo was the only player in the market at that time. For the entry of new player
was easier due to fewer competitors in the market. HP grabs this opportunity
because the entry barrier was low. HP had already made their brand value in the
market by printer and scanner. So they were well known by the customer. So due
to this they did lots of modification in market strategies. They did lots of
modification in product and did lots of promotion to develop point to
differentiation (POD). Finally they became successful in creating POD in
customer͛s mind. Cost was one more problem to decide in the introduction
phase. As we know that in the beginning customer willing to pay high cost for the
new product. So the company set the price as compare to the competitor
product.

6.3 GROWTH PHASE

In growth phase HP faced lots of competition because in this phase other player
came in the market like Acer, HCL, Samsung, Sony etc. Due to this many changes
are required in the product to create point of difference.

The growth phase offers the satisfaction of seeing the product take-off in the
market place. This is the appropriate timing to focus on increasing the market
share. A new growing market alerts the competition͛s attention. The company
must show all the products offerings and try to differentiate them from the
competitors͛ ones. HP did and still doing frequent modification process of the
product to discourage competitors from gaining market share by copying or
offering similar products. Other barriers can be created by licenses and
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copyrights, product complexity and low availability of product components.
Another thing which is done by HP is promotion and advertisement. Promotion
and advertising continues, but not in the extent that was in the introductory
phase and it is oriented to the task of market leadership and not in raising
product awareness.

A good practice is the use of external promotional contractors. This period is the
time to develop efficiencies and improve product availability and service. Cost
efficiency and time-to-market and pricing and discount policy are major factors in
gaining customer confidence. As the HP desktops was using only Intel
motherboard which makes the price higher .So to cope with the market ,
company is now using AMD motherboard having lower cost than Intel and create
wide range of price varieties in laptops. Good coverage in all marketplaces is
worthwhile goal throughout the growth phase. Managing the growth stage is
essential. Companies sometimes are consuming much more effort into the
production process, overestimating their market position .Accurate estimations in
forecasting customer needs will provide essential input into production planning
process. It is pointless to increase customer expectations and product demand
without having arranged for relative production capacity. A company must not
make the mistake of over committing. This will result into losing customers.

In the growth stage, the firm seeks to build brand preference and increase market
share.

y Product quality is maintained and additional features and support services

may be added.
y Pricing is maintained as the firm enjoys increasing demand with little
competition.
y Distribution channels are added as demand increases and customers
accept the product.
y Promotion is aimed at a broader audience.

6.4 MATURITY PHASE

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When the market becomes saturated with variations of the basic product, and all
the competitors are represented in terms of an alternative product, the maturity
phase arrives. In this phase market share growth is at the expense of someone
else͛s business, rather than the growth of the market itself. This period is the
period of the highest returns from the product. A company that has achieved its
market share goal enjoys the most profitable period, while a company that falls
behind its market share goal, must reconsider its marketing positioning into the
marketplace.

During this period new brands are introduced even when they compete with the
company͛s existing product and model changes are more frequent (product,
brand, and model). This is the time to extend the product͛s life. Pricing and
discount policies are often changed in relation to the competition policies i.e.
pricing moves up and down accordingly with the competitor͛s one and sales and
coupons are introduced in the case of consumer products. Promotion and
advertising relocates from the scope of getting new customers, to the scope of
product differentiation in terms of quality and reliability. HP Desktop is in
maturity phase in the market.

At maturity, the strong growth in sales diminishes. Competition may appear with
similar products. The primary objective at this point is to defend market share
while maximizing profit.

y Product features may be enhanced to differentiate the product from that

of competitors.
y Pricing may be lower because of the new competition.
y Distribution becomes more intensive and incentives may be offered to
encourage preference over competing products.
y Promotion emphasizes product differentiation.

6.5 Benefits of the PLC Mode

The ͞PLC Model͟ gives managers the ability to forecast product directions on a
macro level, and plan for timely execution of relevant competitive moves.
Coupled with actual sales data, the ͞PLC Model͟ can also be used as an
explanatory tool in facilitating an understanding of past and future sales
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progression. The ͞PLC Model͟ aids in making sense of past events as part of any
extrapolators and interpretive approach to building strategy. Once a product
strategy or product line strategy has been formulated, the ͞PLC Model͟ can be
used as part of an ongoing strategy validation process, since it reflects on market
trends, customer issues and technological advancement.
Companies always anticipate the emergence of new competitors and therefore
must prepare in advance to battle the competition and strengthen their product's
position. The ͞PLC Model͟ is advantages in planning long-term offensive
marketing strategies, particularly when markets and economies are stable.
Nevertheless, most products die and once products are dead they hold no
substantial revenue potential and represent a toll on a company's resources. By
combining the elements of time, sales volume and notion of evolutionary stages,
the ͞PLC Model͟ helps determine when it becomes reasonable to eliminate dead
products.

The ͞PLC Model͟ is theory which identifies the distinct stages affecting sales of a
product, from the product's inception until its retirement. Companies that
successfully recognized those stages and subsequently applied a custom
͞Marketing Mix͟ (combination of product, pricing, promotion, and place
[distribution] activities) at each stage were able to sustain sales and defend or win
market share. By deliberately extending the length of time spent at each of the
PLC stages through different tactics, companies are also able to realize much of
the revenue potential a product can offer.
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CONCLUSION

Apart from the 4P͛s there are lots of touch points where a brand can create a
favorable impact on its customer like brochures of the brand, POS (point of sale)
Ex: shops i.e. pt where customers look at posters, etc materials at the stores,
service centers, advertising in all media, counter salesman or store salesman.

We ensure that every touch points should be as effective as possible because

ultimately customer holds the key to success and we are looking forward to reach
to every possible ends to gain the best of the results in terms of marketing our
product.