B2b marketing
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

B2b marketing

on

  • 2,543 views

HP

HP

Statistics

Views

Total Views
2,543
Views on SlideShare
2,541
Embed Views
2

Actions

Likes
0
Downloads
120
Comments
0

2 Embeds 2

https://www.facebook.com 1
http://www.facebook.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

B2b marketing Presentation Transcript

  • 1. Hewlett Packard – Computer Systems Organisation: selling to enterprise customers
  • 2. Situation analysis HP’s CSO are market leader in computer’s production  Price/performance factor is a USP Early success in the 1980s was followed by a decline in industry business  HP responded by redefining competitive strategy and revamping its product lines  Adoption of common RISC architecture, aimed at easing (low- reputed)marketing department’s job Buying patterns shift to increasingly including OEMs, VARs and distributors  Consequence: lowered HP’s average prices and increase in cost of sales Decision to focus on top forty to fifty customers  UNIX workstation’s demand growing 40% per year  application of Pareto 20/80 rule  20% of CSO customers account for 80% sales
  • 3. HP’s CSO customers ENTERPRISE SMALL/MEDIUM INDIVIDUAL (large) SIZETURNOVER $0.5 - $200m each Below $0.25m each Not defined Daily orders Monthly/quarterly(2500 firms) orders% OF Top 5% of customers Not defined Not defined accounted for 40% ofTURNOVER HP’s total salesCHANNEL Direct sales by HP Combination of sales Exclusive sales by sales representatives reps and channel indirect retailUSED partners channels
  • 4. Issue at hand Identify market and organisational Redefinition of industryopportunities to grow and focused approach toreduce operational costs selling to large/enterprise (i.e. Sales, support) from customers 30% to 10% solving the issue could yield another structural changein the sales organisation department (first change:1992) Robert Dudley from Leap Consulting commissioned toaudit HP’s enterprise customer management approach
  • 5. Planning the next step: the sales process audit Goals:  illustrate how current HP sales actions aligned with buyer requirements  Suggest ways to optimise current approach to enhance return on productive selling time Two cells sampled for the audit: 1) Largest HP Customer (see next slide) 2) Industry in which HP was strong Commissioned LEAP Consulting’s Robert Dudley
  • 6. Planning the next step: typology of sales opportunity TYPE Repurchase Replacement Expansion Innovation • customer initiated •HP initiated • not influenced by • influenced by IT ITDESCRIPTION • budget to be •Assigned budget created • 5 stages •4 stages •The three would generate 80% of the sales to the •Generate 20% of large customer (5 sales reps) sales from lead (1 •Project average length: 6 months =>4-stage process sales rep) PROJECT • 53 hours per week or 2400 hours per year (per sales •Length: 1year (for SPECS rep) 4 stages) + 1or2 •Turnover: $60m sales + $59m hardware + $1m years for last stage consulting = $120m total sales •Turnover: $22m  similar results are achieved with industry sample
  • 7. The next steps Regrouping:  repurchase opportunities as downstream  replacement/expansion opportunities as mid-stream  innovation opportunities as upstream Next step, migration strategy: up to IT infrastructure and enterprise-wide solutions (HP is doing well downstream and mid-stream) TYPE Downstream Mid-stream UpstreamCRITICAL • improving • selection of • sell concepts and operational accounts, i.e. not instil deliverySUCCESS efficiency pursuing each ability toFACTORS opportunity customers
  • 8. Current migration strategy Penetrate other constituencies to sell upstream solutions Move up and get into midstream business Entering an account at the downstream business• Alternate model: portfolio management  Entering an account at multiple levels  Tailored to the dynamics of different sales opportunities
  • 9. Questions1) Is this the time for HP’s CSO to institute more changes? What are your recommendations to Diaz?• It’s about time for HP’s CSO to institute some changes to the current architecture:  Avoidance of numerous time drains due to sales rep “running in a treadmill” to do everything for their accounts, e.g. Developing quotes, configuring systems  Need to prioritise the accounts and institute a support team specialised on understanding the accounts’ needs further reducing wasted time  The latter point will reflect a better conversion rate in sales opportunities, focusing not solely on repurchase opportunities  In general give more specifications as to which procedures to follow in deciding to serve an account and at which conditions
  • 10. Questions2) How is selling instruments (HP’s traditional business) different from selling computer systems? Why does HP treat its sales force as a cost centre? What are the implications of such a structure? it differs in that HP “evolved from a manufacturer of ‘hot boxes’ into a global supplier of information appliances and solutions” HP treats its sales force as a cost centre because they are focused on additional profits, thus making the salesforce strive to close as many orders as possible, not being able to add value to any business  also due to the transactional nature of the businesses HP serves; no customer seems interested in partnering up in the long term with HP so that to mutually benefit and add value  Emphasised by the (almost) lack of innovative projects
  • 11. Questions3) What is HP’s CSO approach to building relationships with enterprise customers? What are its strengths and weaknesses? HP serves this segment directly HP sales rep invested time and effort from an early stage in learning their customers’ businesses both identifying problems and solutions to save money and increase efficiency  salespeople transformed in consultants Strengths: develop long-term relationship with customers, adding value to both businesses through customisation of offerings Weaknesses: need for optimisation in providing such kind of customised “consultant” service. In fact sales people are used by the customers to solve any problem they may have. Also, there is a need to prioritise accounts: skip that and you’ll lose business
  • 12. Questions4) Do you agree with the findings of the two audits as well as the consultant’s recommendations? How is the new approach different from HP’s CSO current approach to managing enterprise customers? The recommendations by the consultant are consistent with the critical success factors of the three new categories (down,mid and up stream) and with the findings However HP needs to resolve its internal and external issues (e.g. being positioned only as a hardware supplier) before moving on to a portfolio management strategy  That means focusing on training more salespeople in forging relationships with large enterprises; it also involves prioritisation procedure for mid-stream and up-stream opportunities  Currently, HP salespeople are not prepared for such a switch (HP is not well known for its marketing savvy) In the new approach HP would enter an account at multiple levels instead of entering it at the downstream level and then trying to tackle the rest of the organisation’s needs