1. 1
NEW DELHI INSTITUTE OF MANAGEMENT
SUMMER TRAINING REPORT
ON
IDENTIFICATION OF CUSTOMERS IN SME
SECTOR
For
HEWLETT PACKARD
By
PIYUSH DUBEY
289
In partial fulfillment for the award of the degree of
Post Graduate Diploma In Management
2014-2016
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail : placement@ndimdelhi.org Website : www.ndimdelhi.org
2. 2
ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successfulcompletion of the
project would be incomplete without the mention of the people who made it
possible.
I would like to take the opportunity to thank and express my deep sense of
gratitude to my corporatementors Mr. Joydeep Dhara & Mr. Anirban Nandy
and my faculty mentor Mr.Vineet Vishnu. I am greatly indebted to bothof them
for providing their valuable guidance at all stages of the study, their advice,
constructive suggestions, positive and supportive attitude and continuous
encouragement, without which it would have not been possible to complete the
project.
I would also like to thank Mr. Chiranjib Banerjee (EAST ZONE HEAD) who in
spite of busy schedule has co-operated with me continuously and indeed, his
valuable contribution and guidance have been certainly indispensable for my
project work.
I am thankful to Mr. Chiranjib Banerjee for giving me the opportunity to work
with HEWLETT PACKARD and learn.
I owe my wholehearted thanks and appreciation to the entire staff of the
company for their cooperation and assistance during the course of my project.
I hope that I can build upon the experience and knowledge that I have gained
and make a valuable contribution towards this industry in coming future.
3. 3
DECLARATION
I PIYUSH DUBEY student of New Delhi Institute of Management 2014-16
Batch declare that every part of the Project Report Identification of customers in
SME segment submitted by me is original.
I was in regular contact with my faculty guide and contacted 3-4 times for
discussing the project.
Date of project submission : 14.08.2015 Piyush Dubey
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Index
1. EXECUTIVE SUMMARY……………………………………6
2. INDUSTRY OVERVIEW…………………………………….8 - 10
OVERVIEW
PRINTINGTECHNOLOGIES
INDUSTRY TRENDS
3. COMPANY PROFILE………………………………………12-30
BACKGROUND
PROMOTERS & SENIOR EXECUTIVES
MISSION
STRATEGY
THE WORK CULTURE
ORGANISATION STRUCTURE
TURNOVER
MARKET SHARE
REVENUE MODEL
FUTURE PLANS
HR PRACTICES
COMPETITION
PRODUCT CATEGORY
CSR POLICY
LEADERSHIP MODEL
COST BENEFIT ANALYSIS OF INKJET VS LASERJET PRINTERS
QUICK FACTS
4. OBJECTIVE & SCOPE OF THE PROJECT……………32-33
OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY
LIMITATION OF THE STUDY
6. 6
5. RESEARCH METHODOLOGY…………………………35-36
RESEARCH METHODOLOGY
RESEARCH DESIGN
SAMPLE DESIGN
6. DATA COLLECTION METHOD………………………………37-38
DATA COLLECTION METHOD
SAMPLING PLAN
RESEARCH INSTRUMENT
7. ANALYSIS THROUGH PORTER’s FIVE FORCES MODEL…………40-41
8. ANALYSIS & SUGGESTIONS……………………………………………43-49
9. CONCLUSION…………………………………………………………….50
10. QUESTIONARRE FRAMED & THEIR RESULTS…………………51-57
11. FINDINGS FROM QUESTIONARRE & SUGGESTIONS………….58-59
12. PROBLEMS REPORTED BY CUSTOMERS……………………….59-60
13. DECLARATION…………………………………………………………61
14. BIBLIOGRAPHY…………………………………………………………62
15. ANNEXURE………………………………………………………………63
QUESTIONARRE
MID EVALUATION FORM
FINAL EVALUATION FORM
WEEKLY REPORTS
COMPANY REPORT FORMAT
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Executive Summary
Hewlett-Packard Company (HP), incorporated on February 11, 1947, is a
provider of products, technologies, software, solutions and services to
individual consumers, small- and medium-sized businesses (SMBs) and large
enterprises, including customers in the Government, health and education
sectors.. Its principal offerings include personal computers (PCs) and related
devices; imaging and printing devices, and related services; enterprise IT
infrastructure solutions; and a host of services including technology supportand
maintenance, outsourcing services, and integration and consulting services,
among others. It conducts business operations across 170 countries around the
world. HP is headquartered in Palo Alto, California, the US.
ProjectObjective’s :
To understand & identify the customers (Imaging & Printing
Department) in the Small & Medium EnterpriseSegment.
To determine of the brand presence of HP in the market (SME segment
mainly).
To determine the market behaviour towards printers.
To know the brand recall by customers.
Sampling :
80 retailers and 80 consumers spread across Pin Code700001 to 700020 of
Kolkata circle, West Bengal.
Primary data:- The data collected for first time is known as primary data. It
is by visiting existing customers. Primary data means data that are collected by
different techniques like questionnaire, Depth interview, Survey, Schedules etc.
In this project, primary data has been collected by the means of questionnaire.
Secondarydata:- The data which has been already collected by someone is
known as secondarydata. Is collected from internet , books, etc.
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INDUSTRY OVERVIEW
The printer industry targets several different markets, including home and home
office, small and medium businesses, large enterprise businesses, and
professional printing services. The productis also highly differentiated, as there
are a multitude of different printers including color inkjets, monochrome lasers,
photo printers, mobile printers, and multifunctional all-in-one printers. HP
competes in nearly every product category, developing printers to satisfy all
specialty needs. Competitors have developed similar productlines, although
each company tries to stand out by focusing on different segments of the
market.
The Indian Printing Industry, growing at a rate of 12% per annum,
comprises more than 250,000 big, small and medium printers. The current
annual turnover of the industry is more than INR 50,000 crores (USD 11
Billion).
The industry has undergone a revolutionary change in the last 15 years. In 1990,
India initiated a process ofreforms aimed at shedding protectionism and
embracing liberalization of the economy. Privatization was initiated with the
aim of integrating the Indian economy with the world economy. This change
opened the doors for the Indian Print Industry to modernize, by investing in the
latest of technology and machinery.
In recent years, the printing industry in India has seen record levels of growth,
owing to liberalized regimes, globalization and progress in automation. The
industry has grown leaps and bounds due to the latest technology and
machinery, quality standards and productioncapacities.The printing industry in
India is slowly progressing from the heavy machinery using industry to a more
software-centric business. The Indian printers are today equipped with the latest
computer controlled printing machines and flow lines for binding, while state-
of-the-art digital technologies are used in pre-press. UV digital printing and
inkjet technology are also on the rise in India. The advent of global brands,
rising consumerism and growth of the pharmaceutical industry have seen an
increase in the scopeforpackage printing. Giving an optimistic outlook of the
industry, the package printing sectoris growing at the annual rate of 17 percent,
commercial printing at a rate of 10-12 percent and digital printing at robust 30
percent.The digital printing industry is seeing significant transformations with
new technologies & applications providing cost-effective and customized
solutions. Forthe foreseeable future, offset and digital will not only co-exist,
but will also complement each other- with offset taking the medium-to-longer
jobs and digital performing on short-to-medium run lengths.
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PRINTING TECHNOLOGIES
Inkjet printing technology :
Inkjet printing is a non-impact method in which various colors of ink are
squirted through microscopic nozzles to create an image on paper. The basic
technology involves a print head scanning the page in horizontal strips as a
motor assembly rolls the paper in vertical steps. HP, based on a technology
developed by Canon, pioneered the thermal inkjet printer technology. This uses
the pressure fluctuations that result from heat transfer to eject ink from the
cartridge. The use of heat requires a temperature resistant ink and a
lengthy cooling process, slightly decreasing the print speed. Epson’s inkjet
technology employs a piezo-crystal at the back of the ink reservoir.
The crystal flexes when an electric current flows through it, forcing a drop of
ink out of the nozzle. This process allows better control over the shape and size
of the ink droplet release. Smaller droplet sizes lead to higher nozzle density.
Temperature independence allows great focus on improved ink absorption.
Continuous flow printers generate a steady stream of ink, deflecting drops
electronically onto the printing medium. Considered the oldest inkjet
technology, it is used in high-speed production lines to print small characters on
productsurfaces. However, image resolution is difficult to controland the
complex ink-circulation system requires maintenance.
Laser printing technology :
Laser printers are based on a technique used in photocopiers. Heat and pressure
are employed to fuse dry toner to paper. Cyan, magenta and yellow can be
combined to producecolorimages. Four passes are performed, generally
placing toners on the page one at a time or building up the four-color image on
an intermediate transfer surface. The 4 major limitation of the technology is that
it must have all the information about a page in its memory before it can begin
printing.
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PRINTING INDUSTRY TRENDS
Computing Everywhere
3D Printing, Printed Electronics & Functional Printing.
Crossmedia & Multichannel
The internet of things.
The explosion of e-commerce
The shift to mass customization
Packaging on the rise.
Cloud Printing
Environmentally friendly practices.
Production Inkjet Printers.
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INTRODUCTION
Hewlett-Packard (HP) has customers in over 170 countries and realized net
revenue of $120 billion dollars in 2014 . HP operates distinct business units i.e
personal computers, printing, IT Services, Enterprise Infrastructure, and
Software markets- and generates 65% of its net revenues outside the United
States. Our Porter’s five forces analysis will focus on the printer manufacturing
industry
Printers and other peripherals account for 20% of HP’s business and cater
toward six groups of customers:buyer groups, individuals, small businesses,
large businesses, governments, and educational institutions. To satisfy these
groups, HP uses 98 firms, representing 95% of its procurement budget, to
secure all the necessary inputs and raw materials. HP, the market leader, is
primarily challenged in the printer market by Canon, Epson, Samsung, and
Brother. As of 2015, HP held a 53.4% market share of HardcopyPeripherals
and was followed by its nearest competitor Epson, which held a 14.2% share .
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BACKGROUND ON HEWLETT PACKARD
HP was founded in 1939 by Bill Hewlett and Dave Packard. The company has
its roots in the electronics, microwave, and radio industries. World War II
government contracts enabled the business to grow into a million dollar
company by 1944. By the 1960s, HP had diversified into personal computing,
starting with programmable calculators in 1972, and eventually entering the
desktop market in 1980. HP first entered the printer industry in 1984 with the
introduction of the first thermal inkjet printer and print cartridge. HP’s ThinkJet
printer was the first low-cost, mass-produced productthat truly enabled a
disposable inkjet cartridge that could be used in a wide variety of applications.
This quiet, portable device was quickly established as being reliable with far
superior printing quality compared to dot-matrix printers. In 1988, HP
introduced the DeskJet line of inkjet printers. These printers are still in
production today, and have been the most successfulprinters in history. In
2003, HP released over fifty new imaging and printing products. Thevalue and
ease of use associated with these products has helped HP retain its dominance in
the inkjet market.
Currently, HP is the most dominant force in printing solutions. HP has grown
into a global company over the past 10 to 20 years, generating 61% of its sales
overseas in 2014.
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PROMOTERS & SENIOR EXECUTIVES
After Hewlett-Packard splits in two later this year, here is the list of promoters
& senior executives of Hewlett Packard.
Meg Whitman - CEO of Hewlett-Packard Enterprise.
Dion Weisler - Head of HP Inc., the printing and PC company.
Cathie Lesjak - CFO
John Schultz - General Counsel
Henry Gomez - Chief Marketing and Communications Officer.
John Hinshaw - Executive VP for technology and operations &
Chief Customer officer.
Martin Fink - CTO
Bill Veghte - Head of the enterprise group.
RobertYoung johns -Head of the Software Unit.
Marten Mickos – Head of HP Helion, the company’s cloud
services unit.
Jon Flaxman - Chief Operating Officer.
Stephen Nigro – Head of the Printing Group.
Ron Coughlin – Head of The Personal Systems Group.
Neelam Dhawan – Managing Director of HP India
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MISSION
HP doesn’thave an official mission statement but it’s expressed through
“The HP Way”, which states company’s values and objectives.
CorporateObjectives:
Customer loyalty : We earn customer respect and loyalty by consistently provi
ding the highest quality and value.
Profit : We achieve sufficient profit to finance growth, create value for our shar
eholders and achieve our corporateobjectives.
Growth: We recognize and seize opportunities for growth that builds upon our
strengths & competencies
Marketleadership: We lead in the marketplace by developing and delivering
useful and innovative products, services and solutions.
Commitment to employees : We demonstrate our commitment to employees b
y promoting and rewarding based on performance and by creating a work enviro
nment that reflects our values.
Leadership capability : We develop leaders at all levels who achieve business
results, exemplify our values and lead us to grow and win.
Global citizenship : We fulfill our responsibility to society by being an econom
ic, intellectual and social asset to each country and community where we do bus
iness.
STRATEGY
At an HP analyst summit , it was outlined the new direction that the company sh
ould take to recover fat margins and past stockprice. A new strategy was shared
that relies heavily on analytics software and being a cloud platform for consum
er and business segments. HP’s new vision is to provide seamless, secure, conte
xt-aware experiences for a connected world.
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The Work Culture
HP India is an equal opportunity employer and provides a congenial and
professional work environment for all its employees, with great emphasis on
teamwork. We stimulate innovation, encourage calculated risk taking and
acceptmistakes as a part of the learning process.
We encourage experiential learning, and believe in clear delegation of authority
and acceptanceof personal accountability. We value the involvement of our
colleagues in bringing the best to our organization in a spirit of understanding,
trust and appreciation of cultural differences. We are open to discussing
alternative views and build on constructive feedback
ORGANISATION STRUCTURE
HP realigned its an organizational structure to improve performance and drive
profitable growth across the entire HP portfolio. The company has three main p
roductdepartments. This is one of the major formal organizations within the co
mpany. They have three technology areas: the personal systems group (PC’s), th
e imaging and printing group (inkjet, and printing), the enterprise business (stor
age and services, enterprise services and software). This productdepartmentaliz
ation is one way which hp organizes their large company. Here’s a look at the or
ganisation structure :
20. 20
TURNOVER
The annual turnover of Hewlett Packard is US$ 111.454 billion(approx). By the
end of 2015 this figure will definitely change & the company is already into
expanding its market share.
MARKET SHARE
Hewlett-Packard has been one of the few enterprise tech hardware company that
has outperformed the markets during the year. While the return on S&P 500 wa
s over 13%, HP’s stockrose by 45% from $27.66 to $40. The primary reason fo
r this increase was the improvement in HP’s share in PC and server market. Acc
ording to the latest data the market share of Hewlett Packard is around 30.30%
beating its competitors comfortably.
Revenue Model
The revenue model of the company is as follows :
1. Personal System Group = 36 %
2. Imaging & Printing Group = 25 %
3. HP Services = 19 %
4. Enterprise Storage & Servers = 16 %
5. Softwares = 3 %
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Future Plans
To increase market share.
To increase compatibility of firm products and services with other firm ha
rdware and software.
To improve technology development.
According to HP their strategy will cut across three strategic areas Cloud
, Connectivity, Software.
HR Practices
Hiring and Training
HP feels it is very selective in considering job candidates. Great
emphasis is given on adaptability and cultural fit. Everybody is hired on
permanent basis. Nobody is hired for a program or specific shortterm skills. It
promotes from within and grows its own management people and look for
people who have a lot of growth potential. It is very unusual for someone to be
hired into a manager’s position. New employees at all levels tend to go through
a period of adaptation that often includes considerable frustration within the HP
style. To overcome this, a four half-day modules known as “Working at HP” is
presented to groups of less than 30 employees and is felt to be most effective
when attended after about six months of employment. The classes consist of all
types of employees mixed together. The course instructors are a member of the
local personnel staff and at least one line manager. They attempt to let
employees discover about HP through continuous dialogues and participative
exercises. The modules cover history of HP and development of the hp way,
personal policies, performance evaluations, salary administration, and personal
development. Structural Device and Work Systems The day-to-day activities of
HP employees are primarily directed by a comprehensive system of MBO
(management by objectives). This is seen as an iterative process, beginning with
the establishment of short- and long-range objectives (called tactical and
strategic plans) which are derived from the corporate and group objectives. At
22. 22
each company level, the overall objectives are communicated and subunit
objectives are negotiated. Objectives are to be goals, not tasks, to provide a
large measure of freedom in how the goals will be accomplished. At the same
time, the goals must be made to mesh horizontally and vertically throughout the
organization. Therefore, the entire MBO process is a part of the annual tactical
and strategic planning processes. Through the managers, the MBO system is
also the main control system over the product divisions. Strong and
semiautonomous, some even describe these as “feudal baronies.” The special
“cross-boundary” types of projects are given to ad hoc task forces to minimize
formal corporate policies. This helps to minimize corporate direction and
encourage individual inventiveness. Team work for multiple product line
approach applies not only across business units, but also includes the ability of
all members of a unit to influence the way the unit’s task is accomplished. In
addition to the MBO process, this occurs through use of a wide variety of
communication devices and a philosophy of participative decision-making.
Promotion and Reward Systems
The HP culture and value system play a role in the system of promotions and
rewards. The normalcy of cross-functional, cross-divisional, and lateral moves
that often occur over the course of a career is called “career maze.” HP feels it’s
the best use of people which aids the coordination of the design, manufacturing,
and distribution process. The performance appraisal and salary administration
processes also expose individual employees to many managers around the
company. In this system, “wage curves” for various levels are set to be
competitive with relevant labor markets. Individual pay is set by a combination
of relevant experience and “sustained performance.” The performance
component strongly predominates in line with the HP philosophy. The pay
positions of the employees should correspond closely within the related
performance bands of the wage curve. To help determine performance
employees are ranked within their groups. Where similar groups exist, there is a
correlation among these ranks. Performance is reviewed quarterly, which helps
employees to maintain equity pay and spreads employee accomplishment
throughout the organization. Annual individual performance appraisal is done to
evaluate the performance band of each employee and salary changes are made
accordingly. Open discussion of hiring needs also helps to identify candidates
for job openings. Each employee sees his/her wage curve and the one on the
next level up. Both employees and managers receive training in position
planning and the MBO process.
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Competition
Epson holds the second largest share of the printer market . Like HP, Epson
sells inkjet printers, photo printers, as well as all-in-one printers. Epson’s
strategy does not focus on meeting office market’s needs, as the company has
chosen to focus on other unique niches to differentiate itself within the industry.
It is the only company to still sell dot matrix impact printers marketed as a
solution for high volume printing. Epson also targets the retail and banking
markets by providing them with “point-of-sale” printers that have the ability of
printing receipts, invoices and validations with ease. Furthermore, Epson has
developed complete in-studio printers to serve the needs of professional portrait
printing services.
Canon provides printers for two markets, the home and office users. For the
home user market, they have a large selection of color all-purpose, photo and
mobile printers. For the office users, Canon primarily focuses on laser printers
to meet the business’s documentprinting needs by providing large format color
graphic printers, as well as black-and-white and color printers. Canon also
offers a wide array of software and enabling technologies that supporttheir
office printers. These products focus onenabling document distribution and
management, network management, and security data protection.
24. 24
PRODUCT CATEGORY
Hewlett Packard have divided its printer products into the following
classification :
For Laserjet Printers :
1. Desktop (Individual User)
2. Small Work Team ( 1 to 10 users)
3. Work Group (11 to 50 users)
4. Departmental (More than 50 users)
For Inkjet Printers :
1. Mobile Printers
2. Home
3. A3 Family
4. SOHO & SMB
5. Enterprise
OTHER PRODUCTS & SERVICES
LAPTOPS & TABLETS PC DESKTOPS & WORKSTATIONS
26. 26
CSR POLICY
CSR COMMITTEE
Constitution Pursuant to the provisions of Section 135 of the Act, the Board of
Directors shall constitute the CorporateSocial Responsibility (CSR)
Committee. The Members of CSR shall be appointed by the Board of Directors
of the Company which must consist of atleast two or more Directors. Powers of
the Committee.
Following are the Powers of the CSR Committee:
(i) Formulate CSR Policy and recommend the same to the Board of Directors of
the Company for approval
(ii) Recommend CSR activities as stated under Schedule VII of the Act
(iii) Approve to undertake CSR activities in collaboration with HP Group
companies/ other Companies/firms/NGOs etc. and to separately report the same
in accordancewith the CSR Rules
(iv) Recommend the CSR Budget
(v) Spend the allocated CSR amount on the CSR activities onceit is approved
by the Board of Directors of the Company in accordancewith the Act and the
CSR Rules
(vi) Create transparent monitoring mechanism for implementation of CSR
Initiatives in India
(vii) Submit the Reports to the Board in respectof the CSR activities
undertaken by the Company
(viii) Monitor CSR Policy from time to time
(ix) Monitor activities/charter of Joint Working Group (JWG) who are
authorized to ensure that the CSR activities of the Company are implemented
effectively
(x) Authorize executives of the Company to attend the CSR Committee
Meetings
27. 27
CSR Inititiatives
The Company proposes to implement its CSR activities in various sectors stated
hereunder:
TargetedSectors
Healthcare
Sanitation
Drinking Water
Education
Rural Development
Vocational Skills
Entrepreneurship Skills
Employment Opportunities
Facilities for Senior Citizens
Medical Aid
Old Aged Homes
Women Hostels
Special Employment Opportunities for Women
Environment Protection
Animal Welfare
Conservation of Natural Resources
Protection of National Heritage
Promoting and development of Art and Culture
Public Libraries
Promotion and development of traditional arts and handicrafts
Measures for armed forced veterans, war widows and their dependents
Promotion and development of rural sports and National Games
Contribution to funds set by the Central or State Government for
development
welfare of Scheduled Castes, Scheduled Tribes and minorities
28. 28
Expenditure on CSR capabilities
The Company may build CSR capabilities of their own personnel as well as of
their Implementing Agencies and such expenditure shall not exceed 5% of the
total CSR spend of the Company as stated in the Rules from time to time.
Determination of whether a particular expenses fall within this 5% cap can be
decided in consultation of the Chief Financial Officer of the Company based on
the clarification available from time to time in this regard.
Failure to spend the CSR Money
In case the Company fails to spend the above targeted amount in that particular
financial year, the Committee shall submit a report in writing to the Board of
Directors specifying the reasons for not spending the amount which in turn shall
be reported by the Board of Directors in their Directors’ Report for that
particular Financial Year. Surplus arising out of the CSR initiatives shall not
form part of the business profits of the Company.
29. 29
LEADERSHIP MODEL
Division of work:
Team leader or team manager allocates task.
Authority:
Due to its matrix nature, decisions are taken including the right stakeholders
with appropriate authority.
Discipline:
HP makes sure that each employee of the company follows the culture and
discipline.
Unity of command:
Tasks given to the staff/team is executed and monitored by a single boss orwe
can call him/her as manager.
Unity of direction:
Clear plan and strategy is explained to the team.
Team has SME(subject matter expert),for upto date information of process.
Subordination of individual interest to the generalinterest:
Team Manager makes sure that all the team members are working for the same
goal for the benefit of company
Decentralization:
HP is a big business unit as it has a increased level of authority in the
hierarchical chain of command.
ScalarChain:
The company structure has a chain of command with decisions and
responsibilities percolating from top to down.
The chain follows:
Manager -> Supervisor -> Team leader(Region wise) -> SPA(Senior Process
Associate) -> PA(Process Associate)
30. 30
Cost-benefit analysis of inkjet v. laser printers
Inkjets have traditionally been more popular in the home market than laser
printers as they are generally cheaper. There is no warm-up cycle or down time
associated with inkjets. These printers are user friendly, requiring no special
training and cartridges that are clean and easy to install.
While inkjets are cheaper to buy than lasers, they are more expensive to
maintain.Cartridges need to be changed more frequently, and expensive paper is
required to producehigh-quality prints. This adds up to a per-page cost
approximately ten times that of a laser printer.
Laser printers have several advantages over inkjet technology. They
produceahigh volume of pages per month at faster speeds, and are capable of
producing extremely high-quality text and graphics. Forthis reason, laser
printers have found greater success in the office and industrial markets.
31. 31
Hewlett-Packard
Market Cap As of May 2015
(QUICK FACTS)
$57.9 Billion
Ticker : HPQ $30.35$0.01(0%)
Industry : Computer Hardware
Founded : 1939
Country : United States
CEO : MargaretWhitman
Website : http://www.hp.com
Employees : 302,000
Sales : $109.76B
Headquarters : Palo Alto, California
OTHER FACTS :
Hewlett-Packard on Forbes Lists
#35 World's Most Valuable Brands
#96 Global 2000
#49 in Sales
#121 in Profit
#260 in Assets
#174 in Market value
33. 33
OBJECTIVE & SCOPE OF STUDY
Objective of the Study :
The main objective to conductthis research is to understand & identify
the customers (Imaging & Printing Department) in the Small & Medium
Enterprise Segment & determining the brand positioning of Hewlett
Packard mainly through some data collection & information.
Other Objective :
To study and understand the conceptand process ofmarketing
research.
To understand and get the conceptof Marketing of Printing &
Imaging Industries.
To determine of the brand presence of HP in the market (SME
segment mainly).
To determine the market behaviour towards printers .
To know the brand recall by customers.
To know the reason why people prefer HP (Hewlett-Packard) brand .
To give the customer satisfaction and also get the references from
them.
To know which factor is important for customer before buying any IT
product.
To illicit suggestion for better positioning for hp product
To determine the productpresence in the market.
34. 34
Scope of the Study
The project scopeinvolves the study of the printing technology & products
thoroughly. Understand the basic to basic things of the printing products
(printers) of the company. The learning comprised of the basic purposebehind
giving the printer a model no. to the technology part & innovations. The project
scopealso involves the finding of brand presence & recall in the current market
with the marketing research and determining a brand positioning for Hewlett
Packard from the collected data.
Limitation of the Study
The sample area and sample size has been limited due to time constraint.
Customers & related persons were reluctant for their feedbacks &
opinions, and authenticity of their statements can’t be verified too.
All the observation and recommendation will be made on the feedback
obtained from survey.
36. 36
RESEARCH METHODOLOGY
The section includes the overall research design, the sampling procedure, the
data collection method, the field method, and analysis and procedure.
A questionnaire was prepared to collect information , talk about & gauge
the awareness of productamong the customers.
Survey has been done out of the company covering a wide area of the
industry as allotted by the industry mentor.
The question was presented & asked in one to one basis with each of the
customers allotted .
Responses ofthe concerned persons had been thoroughly analyzed.
Conclusions had been arrived at using the responseof the concerned
persons and not on questionnaire alone.
RESEARCH DESIGN:-
For this research project exploratory method is used .In exploratory method
new things are find out from the given topic.
SAMPLE DESIGN
A Sample Design is a definite plan for obtaining a sample from a given
population. It refers to the technique to the procedureadopted in selecting items
for the sampling designs are as below:
37. 37
SAMPLE SIZE :
The sample size has been 230 customers. Conclusions had been arrived at using
the response of the questionnaire.
SAMPLING METHOD :
In this marketing research project, I received the sample size through my
industry mentor. He provided the customer data base of some particular areas to
carry on the operations & survey.
SAMPLE TYPE :
Area Sampling, and the area of sampling is Kolkata (Pincode 700001 to
700020).
39. 39
Data collection method:-
The data collected from the research can be classified as primary data and
secondarydata.
Primary data:- The data collected for first time is known as primary data. It
is by visiting existing customers. Primary data means data that are collected by
different techniques like questionnaire, Depth interview, Survey, Schedules etc.
In this project, primary data has been collected by the means of questionnaire.
Secondarydata:- The data which has been already collected by someone is
known as secondarydata. Is collected from internet , books, etc.
Research instrument
The instrument use for data collection is structured questionnaire. Question is
open and close ended depending upon the information that needed to be elicited.
I am also using the scaling technique to assess theattitude of the customer.
Sampling plan:-
Keeping all the constrains in mind a sample size of 230 people .The sampling
procedureis systematic sampling.
41. 41
FIVE FORCES MODEL
ANALYSIS
1. Threats ofNew Entry
Capital costfor entering into hardware and software market is not so easy. The
high costof developing the products forbids the new entrants into the market. It
needs a huge financial amount to get into this venture. The newcomers also
have a problem of facing the existing well reputed business giants in the market
such as Canon, Epson,Samsung& others.
2. Threats fromthe Competition
According to the survey & research done, HP is comfortably ahead of its
competitors in the printing industry. But brands like Epson & Canon etc also
have fair amount of brand recall. So the market competition will get tougher.
3. Threatof Substitutes
The substitute for a printer is Copier, which is cheaper than taking print outs. So
when a huge number of copies are required, there are more chances of opting
for photo copying preferably than printers. Toner can producecopies more than
four to five times larger than an inkjet printer. Also an inkjet printer should be
continuously used otherwise the ink may get clotted which reduces the less
number of pages.
42. 42
4. Bargaining Powerof Buyers
Hewlett Packard has managed to standardise its products and have good
reputation in its business, which has led the sales growing upward when
compared with its rivals. As a result, the bargaining power of buyers is
moderate for Hewlett Packard.
5. Bargaining Powerof Suppliers
Hewlett Packard has always managed to get the best from its suppliers,
receiving the products right in time for delivery which helped to ship &
deliver products much faster. It focuses on enhancing the communities in
the suppliers workplace. HP always maintained farsighted relationships
which helped to work efficiently
44. 44
ANALYSIS & INTEPRETATION
ANALYSIS 1 :
Figure:No.of printersinthe Survey
The above mentioned graph represents the various brands of printer that emerged out of the
survey.
Printer Model
Frequency Percent
HP 121 52.00
Epson 53 23.00
Canon 27 12.00
Samsung 19 8.00
Others 10 5.00
Total 230 100.00
Printer Volume Comparison
HP
Epson
Canon
Samsung
Others
45. 45
1. Of the total 119 respondents Show their believe in hp.
2. Responses were very low for the lower range. Most of the other reason
accounted for gifts as a reason.
3. For the three players as Cannon, Epson, Samsung the main reasons were
again the Poorquality, high ink consumption.
4. Out of the total respondents 152 say that brand name matters
5. Out of 121 respondents ,106 are satisfied.
6. 63 says price matters, 38 say quality matters 22 says brand name matters.
Results/Analysis:
The basic need for buying a Printer is primarily Saving Time and printing
quality. This need should be addressed in any correspondence with the customer
in the company’s promotional activities. The later part of the report also checks
the believability aspect of each correspondence with the customer and this
prediction is further concentrated in that part. The HP customers seem to have
gone by the general trend and share the same values.
46. 46
SUGGESTIONS
Key attribute components:
Value for money and Customer Care
Operational attributes.
Physical attributes.
Brand Image.
Customer Specific Details.
In any correspondence with the customers the message should be sent in these
components only to have the maximum benefit from the advertisement. Also
these components should be dealt with independently. The advertisements
should speak only of the believable concepts rather than glorifying the
pretentious ones. The basic need of the customer need to be addressed which is
actually saving time and better quality.
47. 47
ANALYSIS 2
Type Market Share In Percentage
COLOR 119 52 %
MONO 69 30%
BOTH 42 18%
Analysis :
From the sample data, the above information were obtained. It shows the pattern
of market behaviour. Out of the 230 samples, 119 were using color printers, 69
were using Mono printers & 42 were using both. Out of these 162 customers
were ready to continue with color printers in the future. This determines that the
market behaviour. Customers from the SME segment are looking for color
printers.
Suggestions :
1. HP can continue its dominance in printing industry.
2. In this segement,they should focus on targeting customers with color
printers & bringing in new technologies.
52%
30%
18%
Market Trends of Color Or Mono Printers
Color
Mono
Both
48. 48
ANALYSIS 3
CARTRIDGE DATA (OUT OF 230) SHARE IN
PERCENTAGE
ORIGINAL 124 54 %
REFILLED 106 46%
ANALYSIS :
1. HP has prevented competitors from entering its ink market through
propriety technology that is necessary for compatibility with their
printers. Nevertheless, there is nothing preventing a customer from
refilling an HP ink cartridge that already contains the technology.
2. According to the survey, nearly 46 % customers were using refilled
cartridges. The reason behind this is low cost. This refilled ink damages
the printing quality as well as harms the printers.
54%
46%
Cartridge
Original
Refilled
49. 49
3. Continuing this way can hamper , Hp’s market share & reputation.
SUGGESTIONS
There are several strategies that HP can consider implementing :
1. They can ensure that their quality of ink remains superior to the refill ink.
2. Another solution is to customers with incentives to discourage the use of
refill kits.
50. 50
SUGGESTED ACTION PLANS
To increase sales
Specialization. Printers specializing in particular segments, such as
labels/wrappers or direct marketing, that focus on a vertical market
generally achieve higher sales.
Diversification. Printing firms that provide more value-added ancillary
services generally have higher profits than firms that only print.
ProcessAdvantage. Digital toner-based print and inkjet are growing
much faster than traditional ink-on-paper print. Hybrid printing which
combines digital and inkjet with traditional processesin the same job is
growing.
Printed Products and Services Offered. Particularly hot markets are not
at all "print" as usually defined – web-to-print services, web
development, signs/signage, integrated print, fulfillment and database
management are hot, and printers offering these services gain margins.
To reduce costs
Benchmark costs with industry metrics to determine where your costs are
out of line.
Shift fixed to variable costby reducing overhead – using part-time and
temporary employees rather than full-time permanent employees. Further,
reduce headcounts by benchmarking metrics like sales and value-added
per employee and factory employee.
Substitute capital for labour. Profit-leading printers have higher
investment per employee to "get better, not bigger."
51. 51
CONCLUSION
The Indian I.T. market currently appears to be at a crossroads, where I.T.
marketers are attempting to change customer perceptions of their brands and
where specific buying motivations appear to be replacing generalities. This
meanwhile, is quite unlike the west where buyers consider aesthetics, comfort
and safety, not necessarily in that order, before finalizing a purchase. “It’s
smarter to think about emotions and attitudes, if marketers are to do a better job
of marrying what a HP offers to the consumer’s image of the offerings. The
mindset of the Indian consumer is such that he is delighted if he buys a pen a
little cheaper than his neighbors. Things are, however, slowly changing and
customers at the upper end of the market are now ready to pay more for more. I
hope that this approach will soon enter the new era, maybe not with the same
intensity . “Success will largely be determined to the extent a company can
differentiate itself in terms of intangibles that go with a Product”. Thus, success
could well hinge on the best of bundle of services that HP provides. HP grew
from zero to the 180 Million $, mark and the number One sales of Printer,
Scanner & TFT in India in this year. Looking at the present scenario it can be
said that though there is lot of competition in the I.T. world HP is picking up
well. The landmark achievement comes in 66 years after clinching its first
overseas sale.
52. 52
QUESTIONARRE FRAMED & THEIR RESULTS
o Which brand of printer do you use ?
o A3 or A4 paper size
68%
32%
A3 A4
Printer Volume Comparison
HP
Epson
Canon
Samsung
Others
53. 53
o Coloror Mono?
o Single function printer or multi-function printer ?
52%
30%
18%
Market Trends of Color Or Mono Printers
Color
Mono
Both
33%
42%
25%
Results
SINGLE
MULTI
BOTH
54. 54
o If the users are connected through networking or
not?
23%
77%
Results
Yes
No
55. 55
o Duplexing feature is available or not ?
o Do you use an original cartridge/ toneror refilled
one ?
58%
42%
Yes
No
54%
46%
Cartridge
Original
Refilled
56. 56
o No. of users in the office ?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
5 to 10 10 to 20 20 or more
No. Of Users
57. 57
What is the approx monthly printing volume ( NO. of
pages printed in each month ) ?
0%
5%
10%
15%
20%
25%
30%
35%
1000 to 1500 1500 to 2500 2500 to 4000 4000 & above
Printing Volume
58. 58
OTHER FINDINGS FROM QUESTIONARRE
Customers were keen on using color printers.
Maximum no. of customers were not that familiar with connecting on a
network.
Customers using refilled cartridges were high on number.
Price of printers & brand were the major factor for a customer to buy a
printer.
It was also found that other brands & competitors like Canon, Epsonwere
not lagging behind that far
The basic need for buying a Printer is primarily Saving Time and printing
quality.
Photo Copier is an substitute for printers in the market. The reason being
low costin caseof high volume.
Customers preffered printers with multi- function quality & specially
Scanning & photo-copying features.
59. 59
SUGGESTIONS ON FINDINGS
• The company needs to address the issue with the refilled cartridges. One
solution is to provide customers with incentives to discourage the use of
refill kits.
• Forcompetition issues, HP can definitely go on price war with the likes
of Epson & Canon in order to beat them while continuing profits from
cartridges.
• Provide great service.
• Be consistent.
60. 60
PROBLEMS REPORTED BY CUSTOMERS DURING
SURVEY :
Paper Jams
Some or all the printing on the pages are faded
Sometimes the image prints properly, but a much lighter copyof the
image also prints elsewhere.
Sometimes toner smears or does not stay on the paper.
Printer is not printing from the expected paper tray.
Trouble printing onto envelopes.
61. 61
Suggestions to customers on issues.
On Paper Jam : It’s dirty, the wrong paper type is being used, so this
needs to be cleaned once in a while.
On Print Fading : May be the printer is getting low on toner & so the
cartridge needs to be removed out & shaken for even distribution.
On the Wrong tray print : May be the application is set to print to the
wrong paper tray, so this needs to be corrected.
