Hewlett-Packard conducted brand tracking research using the Brand Asset Valuator model and a survey of 50 consumers. The BAV measures brands across four pillars: differentiation, relevance, esteem, and knowledge. HP scored highest in differentiation, relevance, and knowledge (100th percentile) and second highest in esteem (80th percentile). On the BAV power grid, which plots brand strength and stature, HP was in the leadership category indicating high earnings and growth potential. The only potential concern was HP's relatively low esteem score.

1. 1

2. Brand Tracker
Phase I – Brand Image
Measurement
A report submitted to
Prof. Govindrajan
In partial fulfillment of the requirement of the course
Product and Brand Management
th
On 14 August 2011
By
Rakesh Gakare (B10021)
Sharath Ghosh (B10024)
Shishir Ramkumar (B10025)
Siddharth Goutam (B10030)
2

3. Executive Summary
Hewlett Packard is a California based company established in the year 1939 as a partnership between
William Hewlett and David Packard. It is best known for its manufacture and sale of personal computers
and computer accessories. It sells more than 48 million computers annually and 1 million printers
weekly. It was ranked No. 9 in the list of Fortune 500 companies in the year 2009, with revenue of US$
126.033 billion. HP enjoys global market leadership in the PC and computer peripherals segments.
HP started as a manufacturer of instruments for analysis and measurement, it diversified itself into
producing computer monitors, Digital cameras, digital press, PC’s, mobile phones, networking, laptops,
PDA’s, printers, scanners, servers and storage devices. One of the main reasons for HP’s success has
been its innovativeness and its ability to acquire companies.
In the first phase of the “Brand Tracker” project we have attempted to determine the current status of
the brand and the brand identity in the minds of the consumers. A variant of the famous Brand Asset
Valuator (BAV) was used to identify the current status of the brand while the Zaltman Metaphor
Elicitation Technique (ZMET) was used to determine the brand identity.
The BAV model measures the value of the brand along 4 dimensions namely Differentiation, Relevance,
Esteem and Knowledge. Differentiation and Relevance together comprise the brand strength while
Esteem and Knowledge build up the Brand Stature. For BAV, a random sample of 50 was surveyed using
a questionnaire.
HP has the highest percentile score (100) along 3 pillars namely differentiation, relevance and
knowledge while it has 80 percentile in Esteem second only to Apple. On the BAV power grid HP lies on
the leadership category which shows that it has a high earnings and high growth potential. The only
cause for concern, if any is the comparatively low esteem score which shows that there is a problem in
HP’s brand personality
The ZMET technique was used as the qualitative research tool to gauge the brand identity of HP. A
sample of 9 respondents was chosen to execute this process. The technique is based on the fact that
most human communication is nonverbal, much of which is visual. The ZMET interview employs several
steps to surface and further define consumers key thoughts and feelings. Each step in ZMET provides a
different opportunity for identifying and understanding metaphors, thereby gaining a deeper
understanding about the consumers. The ZMET technique identified HP as a global giant which is highly
trusted, innovative & professional and delivers superior performance.
3

4. Table of Contents
Executive Summary…………………………………………………………………………….….. 3
Brief history of the brand……………………………………………………………………….. 5-9
Quantitative research model – BAV………………………………………………………… 10-18
Qualitative research model – ZMET………………………………………………………… 19-24
4

5. 5

6. A Brief History of Hewlett-Packard:
The Founders:
William Redington Hewlett (Bill Hewlett) was born 20 May
1913 in Ann Arbor, Michigan, where his father, a respected physician,
served on the faculty of the university's medical school. Occasioned by
his father's acceptance of a faculty position at Stanford University;
introduced young Bill to the cultural, scientific, and literary world of a
dynamic and growing San Francisco Bay Area.
David Packard (September 7, 1912 – March 26, 1996) was born
in Pueblo, Colorado. He attended Centennial High School, where early
on he showed an interest in science, engineering, sports, and
Dave Packard Bill Hewlett
leadership. He earned his B.A. from Stanford University in 1934.
Stanford is where he met two people who were important to his life:
Lucile Salter and William R. "Bill" Hewlett. In 1938, he returned to
Stanford from New York, where he earned a master's degree in
Electrical Engineering in 1938.
HP: US$ 538 to US$ 126.033 billion
Hewlett-Packard had its beginnings with Stanford University graduates, William Hewlett and
David Packard, who were encouraged by Professor Frederick Terman to start their own business. With
only $538 and workspace in a garage behind Packard's rented house in Palo Alto, California, the two
men began working on a resistance-capacity audio oscillator, a machine used for testing sound
equipment. After assembling several models--baking paint for the instrument panel in Packard's oven--
they won their first big order, for eight oscillators, from Walt Disney Studios, which used them to
develop and test a new sound system for the animated film Fantasia. Now the same Hewlett-Packard is
a global market leader in with revenue worth US$ 126.033 billion.
How to make a BRAND (name):
On January 1, 1939, Hewlett and Packard formalized their venture as a partnership, but they
were unable to decide the company name. So they agreed on a coin toss, which will decide the order of
their name. Hewlett won and the legendary Hewlett-Packard was born.
A Snapshot of HP:
The California-based Company Hewlett Packard is best known for its manufacture and sale of
personal computers and computer accessories. With a distribution of more than 48 million computers
annually and 1 million printers weekly, this Fortune 500 Company ranked No. 9 in 2009. However, this
was not always the case. Hewlett Packard started many years before the Internet and personal
computers became household items. At the time, this risky venture started by two guys working out of
garage had only one customer, Walt Disney, and then the rest is history.
6

7. Statistics:
Type: Public company
Traded as: NYSE: HPQ
Industry: Computer hardware, Computer software, IT consulting, IT services
Headquarters: Palo Alto, California, US
Revenue: US$ 126.033 billion (2010)
Products: Computer Monitors, Digital Cameras, Enterprise Software, Indigo Digital Press, Mobile
Phones, Networking, Personal Computers and Laptops, Personal Digital Assistants, Calculators,
Printer, Scanners, Servers, Storage, Televisions, Telecommunications hardware and software.
Employees: 324,600 (2010)
Important Phases:
HP Began as Maker of Test and Measurement Products: In Palo Alto,
California, Bill Hewlett and Dave Packard men began working on a resistance-
capacity audio oscillator, a machine used for testing sound equipment. After
several attempts, they got their first big order, for eight oscillators, from Walt
Disney Studios, which used them to develop and test a new sound system for
the animated film Fantasia.
HP Moves into Calculators and Computers in the Late 1960s and 1970s:
Although primarily a manufacturer of instruments for analysis and
measurement, Hewlett-Packard developed a computer in 1966, specifically for
its own production control, the HP-2116A, and had no plans to enter the
computer market. Two years later, however, HP introduced the HP-9100A, the
first desktop calculator capable of performing scientific functions. Signaling a
change in company strategy, in 1972, Hewlett-Packard made its first decisive
move into business computing, a field dominated by IBM and Digital
Equipment Corporation, with the HP3000 minicomputer.
HP Introduces Personal Computers and Printers in the 1980s: Hewlett-
Packard introduced its first personal computer, the HP-85, in 1980, to a cool
reception. Its move into information processing, however, proved successful
and the company quickly established itself as a leading computer vendor. It
also introduced a number of other products, including the HP9000 technical
workstation (1982), the HP150 touchscreen PC, the HP ThinkJet inkjet printer
(1984), and the HP LaserJet printer--a phenomenally successful product that
came to dominate the printer market soon after its 1984 debut.
HP in the Late 1980s: New Products and Markets: In 1986, HP introduced
its new family of Spectrum computer systems, developed at a cost of $250
million. While market projections for Spectrum were good, and the system
itself was state of the art, HP initially failed to capitalize on its technology
because of the company's strategy of focusing on markets rather than product
lines. In April 1989, Hewlett-Packard paid $500 million for Apollo Computer, a pioneer in the design,
manufacture, and sale of engineering workstations. Integrating the two companies and eliminating
unnecessary engineers and salespeople proved more time-consuming than anticipated, and as sales
dropped, Hewlett-Packard slipped back to second position in late 1989.
7

8. Early 1990's Difficulties Led and Restructuring of HP: In spite of the new focus on workstation
technology and cooperative trade agreements, HP began 1990 with sagging profits and a lackluster
consumer response to its new product line. In 1990, earnings fell 11 percent to $739 million, down from
$829 million in 1989. David Packard, the retired co-founder of the company, returned to his office to
take a more active role in running the business. HP's 95LX palmtop personal computer, which was
introduced in 1991, established an important new market in information devices. The resurgence of the
company was not achieved without a price. HP cut 3,000 positions in 1990 and a further 2,000 positions
in 1991. While executives agreed that downsizing was a necessary evil, the staff reductions, together
with a more aggressive advertising stance, changed the company's image.
HP Aggressively Expands in PCs in the Mid-1990s: HP's pursuit of personal computer prominence
was problematic given that sector's relatively low margins, but Platt (CEO at the time) felt the company
had to be a major player in PCs in order to remain one of the top computer companies in the world.
With the Internet and electronic commerce burgeoning, HP in mid-1997 paid nearly $1.2 billion to
acquire VeriFone, Inc., a maker of in-store terminals used to verify credit card transactions. Also in 1997,
HP was added to the companies that comprise the prestigious Dow Jones Industrial Average.
1999 HP Plans to Spin off Non-computing Lines: In late 1998, HP launched a comprehensive review
of its operations and announced in early 1999 its intention to spin off into a separate firm, Agilent
Technologies, its non-computing segments: test and measurement products and service, medical
electronic products and service, electronic components, and chemical analysis and service. These
segments generated about $7.6 billion in revenues during 1998, or 16 percent of the total. Hewlett-
Packard hoped this major divestment--which included the company's original lines of business--would
sharpen the firm's competitive instincts, energize its workforce, and enable it to become a more
aggressive player in the increasingly important sphere of the Internet.
Acquisitions and a Merger of Worldwide Importance: In September 2001, HP acquired
StorageApps, manufacturer of storage virtualization appliances, and Indigo, a leading commercial and
industrial printing systems company. Perhaps the biggest news to the industry occurred on September
3, 2001, when HP and Compaq Computer Corporation announced a definitive agreement to merge;
creating a new $87 billion global technology leader. On May 3, 2002, Hewlett-Packard officially closed its
$19 billion acquisition of Compaq Computer Corporation. Compaq investors received 0.6325 shares of
Hewlett-Packard for every Compaq share they owned, and Compaq stock ceased being traded. HPQ
became the new stock ticker for the combined company.
The Time Line:
1939: William Hewlett and David Packard enter into a partnership; Hewlett-Packard (HP) is born.
1940: HP operations begin in Palo Alto, California.
1947: HP is incorporated.
1951: HP introduces the HP524A high-speed counter.
1957: HP shares are offered to the public.
1958: HP acquires F.L. Moseley Company, manufacturer of graphic recorders.
1961: HP purchases the Sanborn Company; a medical instruments manufacturer and is listed on
the New York Stock Exchange.
1966: HP develops its first computer.
8

9. 1972: HP introduces a handheld scientific calculator, the HP-35; HP introduces the HP3000
microcomputer.
1980: HP introduces its first personal computer, the HP-85.
1984: HP's LaserJet printer makes its debut;
1988: HP's stock begins trading on the Tokyo stock exchange.
1989: HP purchases Apollo Computer;
1991: HP introduces the 95LX palmtop personal computer
1992: Lewis E. Platt replaces Young as head of HP;
1993: Packard retires and Platt is named chairman, president and CEO of HP;
1994: Compaq surpasses IBM as the number one seller of PCs worldwide;
1995: HP launches the Pavilion line of home computers.
1996: HP co-founder, David Packard dies on March 26, 1996
1997: HP acquires Verifone, Inc., maker of in-store terminals for verifying credit card
transactions;
1999: HP president Platt retires and Lucent-executive Carly Fiorina is appointed president and
CEO.
2001: HP co-founder Bill Hewlett dies on January 12, 2001
HP acquires application server specialist Bluestone Software
Hewlett-Packard and Compaq announce their planned merger.
2002: HP and Compaq merge on May 3, 2002; HPQ is unveiled as new stock ticker for combined
company.
2004: HP announces plans to renovate and rehabilitate the garage, house and shed at 367
Addison Ave.
2005, December 6: With preservation efforts complete, the HP garage is re-dedicated as a state
historic landmark and the “Birthplace of Silicon Valley.”
9

10. -
10

11. The Brand Asset Valuator (BAV) is the world’s largest database of consumer perception of brands
created and managed by Brand Asset Consulting, a division of the advertising agency Young and
Rubicam(Y & R). The BAV is based on research data of almost 500000 consumers from 44 countries. It is
used as an empirical model for managing brands worldwide. BAV also serves as a diagnostic tool for
understanding how brands grow and decline over a period of time. Brands use BAV as a perspective tool
for developing brand strategies and tactics.
BAV measures the value of a brand across four key pillars: Differentiation, Relevance, Esteem and
Knowledge.
Differentiation measures the degree to which a brand is seen as different from others
Relevance measures the breadth of the brand’s appeal
Esteem measures how well the brand is regarded and respected
Knowledge measures how familiar and intimate the consumers are with the brand
Differentiation and Relevance together lead us to brand strength or brand vitality while Esteem and
Knowledge calculate the brand stature. Brand strength is an indicator of the brand’s future value while
brand stature is a report card on the past performance of the brand.
Keeping in sync with the times another pillar has been added to the BAV model known as energy which
measures the momentum of the brand’s sense of momentum. In the power grid it forms a part of brand
strength.
11

12. Research Methodology
The BAV model was used to measure the current status of the brand vis-à-vis its competitors. As the
BAV is a proprietary tool an independent questionnaire was designed to gauge the consumer’s
perception across the 4 pillars on which BAV is based. Each pillar was assigned 100% weightage and this
was split amongst the questions pertaining to them. Weights were assigned on the basis of how direct
and how comprehensive was the information that could be derived from the question. The survey was
done through the internet for a sample size of 50 and the sampling methodology followed was random
sampling.
The calculation was done by totaling the number of responses and adding them after the weightage of
the question was allocated to a particular attribute or a brand. This was done for every question to
arrive at a score for each brand. All the scores from the questions pertaining to a specific pillar for a
particular brand was added to get the final score for that pillar for that brand. Once this was done
percentile was assigned on the basis of the final score received by each brand.
In Q.9 a Z-test was done to find out whether the sample was representative of the entire population or
not. After that ANOVA was executed to figure out which brand was the leader across all attributes being
tested.
In case of brand stature, there were few open ended questions which resulted in the category others.
For the purpose of plotting the brands on the BAV power grid, this other category was ignored.
Questionnaire:
1. What is the first brand that comes to your mind when you hear the words “Technological
Corporation”? (Brand Knowledge-30%)
2. Identify the following taglines with their brands: (Brand Knowledge-50%)
a. Solutions for a small planet
b. The power to do more
c. Think Different
d. Invent-Everything is possible
e. Your potential our passion
3. When it comes to computer hardware which amongst these brands would YOU recommend:
(Brand Esteem- 30%)
a. IBM
b. Dell
c. Apple
d. HP
e. Microsoft
4. Which brand(s) would you associate with the following devices: (Brand Differentiation-25%)
a. Laptops
b. Printers
c. Desktops
d. Servers
e. Storage devices
12

13. 5. Which technological brand would you associate with the following: (Brand Relevance-50%)
a. Stylish
b. Prestigious
c. Intelligent
d. Professional
e. Innovative
6. When buying a computer devices or(&) peripheral devices which of the following is the critical
to you: (Brand Relevance-50%)
a. Price
b. Quality
c. Recommendation
d. Variety
e. After sales service
7. For each of the following brands is there any brand that is similar in its offerings: (Brand differentiation-
50%)
Brand Yes/No If yes, please name the brand
IBM
Apple
HP
Dell
Microsoft
8. Match the following usage with a technological brand of your choice: (Brand Differentiation-25%)
a. Home usage
b. Commercial usage
c. Education
d. Entertainment
e. Data storage
9. Rate the following brands on a scale of 1-5 for the following attributes (1 being the least rating
and 5 being the highest): (Brand Esteem-70%)
Trust Performance Customer care User friendly
HP
Dell
Apple
IBM
Microsoft
10. Identify the following logos: (Brand Knowledge-20%)
11. Which brand of computer hardware do you use?( to be cross tabulated with Q.6)
13

14. Results and Analysis of BAV:
(the details of the analysis and the calculations are in the excel sheet attached)
 Individual brands:
The percentile score of all the individual brands across differentiation, relevance, esteem and
knowledge was calculated and then converted into graphs. Then the graphs were compared
with the graphs given in the prescribed text- Marketing Management,13th edition to find out in
which category( new, unrealized potential/niche, leadership, declining, eroded and unfocused)
do these brands lie. The brands that were analyzed were IBM,Dell,Apple & Microsoft as they
are competitors to HP.
IBM
100
90
80
70 60 60 60
60
IBM
50 40
40
30
20
10
0
D R E K
From the graph we can see that IBM is low on relevance while it is about average in differentiation,
esteem and knowledge. By plotting it in the BAV power grid it comes that IBM is a Declining Brand.
14

15. Dell
100
80
80
60
60
40 40 Dell
40
20
0
D R E K
In case of Dell the respondents perceive to be a highly differentiated brand. It has an average score in
terms of relevance while score below average in esteem and knowledge. In the power grid Dell comes in
the Unrealized Potential category.
Apple
100
100
80 80
80
60
40 Apple
40
20
0
D R E K
Apple scores high on brand stature but scores comparatively lower on brand strength, ergo a Declining
Brand
15

16. Microsoft
100
80
60
Microsoft
40
20 20 20 20
20
0
D R E K
Microsoft scores low across the 4 dimensions as such it is an Unfocused Brand
HP
100 100 100
100
80
80
60
HP
40
20
0
D R E K
From the data collated we find that HP scores high across the 4 dimensions of BAV, ergo Hail to the chief. HP is
considered a high earnings and high potential brand i.e. it falls in the Leadership category
16

17. Brand Asset Valuator Power Grid
Hewlett Packard on BAV
HP as per the BAV is a market leader what does that mean? In order to decipher this mystery
we need to analyze the 4 pillars of BAV individually with the percentile scores that have been
awarded.
 Differentiation: HP has a percentile score of 100, this means HP has managed to
differentiate itself properly from the other need satisfiers
 Relevance: HP has a 100 percentile in relevance. This leads us to realisation that the
need identification process of HP is excellent which leads to conclusion that the
most important building block for a brand is in place HP.
 Esteem: HP is only a 80 percentiler in case of esteem coming second only to Apple
which has a 100 percentile in esteem. This shows that the brand HP is well respected
and regarded by the consumer.
17

18.  Knowledge: HP again scores a 100 percentile, the highest score one can receive in
Knowledege. This leads us to the conclude that the past brand building efforts of HP
coupled with its age have made it one of the most well known brand around the
globe.
 High Knowledge & Low Esteem: From the quantitative research we found that HP
scores the highest in knowledge but has a comparatively low score when it comes to
esteem. This leads to the conclusion that there is a slight problem with the brand
personality of the Hewlet-Packard.
18

19. 19

20. Analysis Tool Used: ZMET
ZMET stands for the Zaltman Metaphor Elicitation Technique and was developed by Harvard Business
School Professor Gerald Zaltman, the Joseph C. Wilson Professor of Business Administration and Co-
director of the Mind of the Market Laboratory. To develop creative strategic solutions to marketing
problems managers need:
Detailed knowledge of the consumer and the marketplace
Clarity of thought guided by effective models and theories
Creativity and imagination
Reasoned judgment and experience
Where these needs exist, it is appropriate to consider using ZMET.
ZMET research provides fundamental understandings of consumers, by identifying a broad set
of meanings, at several levels of experience. It helps understand how unconscious and conscious
processes interact to:
Create needs
Influence the criteria for satisfying them
Shape the experience of satisfying needs
Spawn judgments about those experiences.
These understandings are necessary foundations for building effective marketing strategies.
ZMET uses visual and non-visual "images" gathered and/or generated by consumers to elicit and
probe the metaphors that represent consumer’s thoughts and feelings about a topic.
Images are important units of analysis for marketing managers. When augmented by consumers
explanations during careful probing by an interviewer, the images provide a clear idea of what
consumers really think and feel. Almost invariably, these insights are far deeper and clearer than the
insights to be gained from verbal discussions alone.
Although images can be visual, many images can take other forms as well such Touch, smell and
sound. Whatever the form it might be, an image represents a feeling much more distinctly than words.
For this reason, usage of images is referred to as a Metaphor.
During a ZMET interview, we collect verbal descriptions of the thoughts and feelings
represented by these images to help us understand their meaning. Strong evidence exists that these
verbal descriptions are far more complete and far more useful to managers because they were
stimulated initially by these images or metaphors.
By having, people select their own images, the ZMET process gives participants control of the
research stimuli and a greater sense of involvement with the interview topic. Thus, participants are able
to represent their thoughts and feelings more completely and accurately than when responding to
stimuli presented by the Researcher. The pictures participants bring to the interview are metaphors that
serve as entry points into their thinking process. Exploring the meaning of these metaphors allows us to
elicit many important ideas
20

21. Origin of ZMET:
Zaltman began thinking about the power of using imagery in research while on vacation in Nepal
in 1990. Zaltman initially planned to bring his camera but at the last minute opted to chronicle the trip
by giving local residents disposable cameras and asking them to take pictures that would explain what
life was like in their villages. After developing the pictures, Zaltman returned to the village to ask
residents to explain, through an interpreter, the meaning of the photographs. The imagery tended to
reveal ideas that would have been difficult or unacceptable to put into words. For example, the
photographers often cut off people’s feet in the photographs. This was intentional. In Nepal, bare feet
are a sign of poverty. Zaltman believed that because of the stigma associated with poverty, the topic
likely would not have surfaced had the villages been asked to describe life in their villages using just
words.
Steps followed in the Quantitative research
Step 1: Story telling about the pictures
The respondents were asked to select 10 pictures, which they felt best described, their feelings
towards the brand HP. They were then asked to describe the pictures and how they associated them
with the brand in the form of a 5 to 6 line story. This is done as much of our experience and feelings take
the form of stories and are an important source of insight of the respondents. A bit of laddering was
done to get a bit more insight into the respondent’s mind
Step 2: Missing Picture
The respondents where then asked if they wanted to include any other picture in the 10
selected. If they answered yes then they were asked to explain why. This is done to explore the kind of
image that might represent the thoughts and feelings.
Step 3: The Triad Task
This task tries to identify the concepts and thoughts at a higher level. The respondents are asked
to represent 3 pictures selected at random by the interviewer and how 2 of them are similar, but
different from the 3rd picture. The reasons are probed using laddering technique.
Step 4: Metaphor Probe
The participants are then asked to elaborate their thoughts and feeling in a deeper and more
complete way. This uncovers hidden meaning and gives validation to ideas, which have surfaced in the
previous steps. For this the respondents are asked to widen the frame of one or more picture by asking
what should be added or deleted from the picture that might reinforce the original idea. This step is
repeated for 2 or 3 pictures.
21

22. Step 5: Digital Imaging
The respondents are then asked to create a collage of the pictures they have selected. They
were asked to give one word for the pictures they had selected. This brought out what they thought and
their ideas. This is the summary of the entire exercise. While the summary brings out most of the ideas
expressed by the respondents earlier, some new ideas do surface during this step as the participants
modify the pictures in size and colour to fully convey their feelings. When the picture is finished, the
respondents are asked to give a verbal description, which serves as an interpretive tour of the entire
exercise.
22

23. Similarities among the respondents
3 4 7
2 5
 Leader  Faith
 Global  Professional
 Future  Ahead  Basket of
 Giant  Trendy
 Innovation  Out goods
 Invention  Host of
 Trust performers  Team player
 Ideas services
 Bonding  No.1  User
 Rich  Well Known
 Poor  Global friendly
 Value for reach  24X7
customer  Bright Ideas
money
 Self-  Helpful
service  Standing
 King evaluation  Basket of
out
 Quality goods
 Professional
 State of art
 Innovative
23

24. Keeping in mind the Zaltman story telling approach, the brand identity of HP as per respondent
feedback can be interpreted as the following:
is a global giant having a wide spread network. It is a highly trusted
brand which promises value for money along with superior quality.
This coupled with its innovations and professional attitude makes HP
stand out among its competitors.
24

25. References:
 Prof. Srinivas Govindrajan’s PPTs
 Marketing Management, text book
 http://fmcg-marketing.blogspot.com
 http://wikipedia.org
 http://www.people.hbs.edu/krandel/mml/negotiation/zmetint.html
 http://www.acrwebsite.org/volumes/display.asp?id=7644
 http://www.brandassetconsulting.com/
 http://www.hp.com/
 http://hpalumni.org
 http://www.webhostingreport.com
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 http://www.fundinguniverse.com