HP needs to develop an effective channel strategy for distributing its laptops. It must consider factors like buyer behavior, needs for product information, and which channels can provide the best customer service. HP will sell to both individual and organizational buyers, so it will need different channel types for each segment. As laptops are expensive shopping goods that require comparisons, HP will use selective distribution through retailers and agents while also maintaining direct contact with customers for complex after-sales service needs. An intensive distribution approach with centralized customer care centers could help reduce costs while still providing quality post-purchase support.

1. Channel Strategy
An important market factor is "buyer behavior"; how do buyers want to purchase
the product? Do they prefer to buy from retailers, locally, via mail order or perhaps over the
internet? Another important factor is buyer needs for product information, installation and
servicing. Which channels are best served to provide the customer with the information they
need before buying? Does the product need specific technical assistance either to install or
service a product? Intermediaries are often best placed to provide servicing rather than the
original producer - for example in the case of Laptops i.e. HP (Hewlett Packard).
Laptop is a shopping product in the world. It is also a complex and high costly product.
That is why; developing a channel strategy is relatively difficult for a laptop. HP needs to
consider some decisions to develop channel strategy. HP needs to consider type of distribution
channel, Intensity of distribution, and Channel configuration. These decisions should be
considered to achieve the objectives of channel of distribution strategy.
HP will sell laptop to two types of customer: Individual customers and Organizational
buyers. Individual buyers include students and high profession persons such as CEOs, teachers,
engineers, doctors etc. Organizational buyers include multinational and domestic companies,
educational institutions, and Government. Therefore, HP has to develop two different types of
channels for each of the segment.
HP laptop is considered as a shopping product. Moreover, it is very high cost product and
people need information to compare one brand with other. HP has not got a good market share.
They have to fight with Lenovo, Dell, ASUS, and Prolink for market share. Therefore, HP will
go for selective distribution by considering nature of the product, resources of the company,
competitors’ strategy, and finally capabilities of the buyers.
Several factors may influence the choice of one the channel configurations. These are
End user considerations which is important to know where the targeted end users might expect to
purchase the laptop. Customers may want to buy laptop from HP directly or from agents or
retailers. HP laptop is complex in nature and requires after sales service. That is why; short and
direct distribution channel is preferable for HP. HP has extensive capabilities and resources, and
having so many participants in distribution channel creates conflicts, it should use direct
distribution channel. Since laptops need after sales services, it is better for HP having direct
contact with the customers. In some cases, a full-service wholesaler may be essential.
Since HP laptop is complex goods and after sales service are needed, a close
contact between customers and the producer are needed. As a result, it will be easier for HP
laptop to provide application assistance, service, and other supporting activities to the customers.
Since most of the customers’ income level is very low, they are price conscious. It is the
responsibility of HP to reduce the cost of laptop. Here it can follow an alternative strategy which

2. is followed by most mobile phone companies in Bangladesh. HP can follow intensive
distribution to distribute products. But it should have several central customer care centers in
strategic areas. This strategy will help reduce the expertise cost related providing after sales
service