Contents 1. 0 Company background2 1. 1 Introduction2 2. 0 Strategy identification3 2. 1 HP Marketing mix3 2. 1. 1Product3 2. 1. 2 Place4 2. 1. 3 Price4 2. 1. 4 Promotion4 2. 2 E-Customer Relationship Management5 2. 3 Virtual Communities5 3. 0 Environmental Analysis6 4. 0 Segmentation and targeting, differentiation and positioning7 4. 1 Market segmentation7 4. 1. 1 Demographic8 4. 1. 2 Psychographic segmentation9 4. 1. 3 Geographic segmentation9 4. 1. 4 Positioning for the future9 4. 1. 5 Future differentiation9 5. Objectives and E-marketing Strategies10 5. 1 Corporate objectives10 5. 2 E-CRM recommendations11 6. 0 Implementation and Evaluation12 6. 1 Electronic Commerce Solution integrated with SMS12 6. 2 e-Recommendation via find store searching tool14 7. 0 Conclusion16 8. 0 References17 9. 0 Appendix19 Hewlett-Packard 1. 0 Company background 1. 1 Introduction Though the company is a market leader, they are still trying everything possible to keep that consistency or even to improve more so that they can beat their competitors and satisfy their customers.
To achieve this, the company is applying some business concepts which we will look into in depth to see how it is benefiting from them. The business concepts are as follow, and we will discuss them sequentially; * Strategy identification (E-marketing strategies) * Environmental Analysis * Segmentation and targeting, differentiation and positioning * Objectives and E-marketing Strategies * Implementation and evaluation 2. 0 Strategy identification 2. 1 HP Marketing mix 4Ps PROMOTION PRODUCT PLACE PRICE 2. 1. 1Product
According to (Jones, 2005), Hewlett Packard unlike other companies serves everyone from customers, small and mid-sized businesses, to enterprises and public sectors with an extensive portfolio of market leading solution. Through their website (www. hp. com), they provide clear facts about their products, customers can know immediately about products information and specification, not a sales persons assumptions. For more clarification, there is a customer service where they can find out more. HP is also offering customization to meet customers wants, customers are allowed to design and see the outlook of their products before they can order.
The buying process is also customised for returning buyers, making repeat purchasing more easily. On the other hand, HP is providing products support to its customer. It offers services such as; * HP Support Assistant – With HP Support Assistant, it is easy for customers to keep their PC running smoothly, optimize PC performance, automate support tasks and get assistance when they need help. * HP Total care Support – through this support, HP offers videos to customers so that they can enjoy and troubleshoot the computer, imaging and printing equipment. 2. 1. 2 Place
As international trading is increasing all around the world, and trade barriers have come down, that has helped HP to introduce its products to a great extent. Hewlett Packard and its customers can easily interact via a web based platform (www. hp. com) and seal their deal online. With this website, HP can provide international customers with great deal of information, and easy ways of ordering at a very little expense. On the other hand HP Company have authorized and registered agent partners, who sell HP products on its behalf to customers, particularly to small and medium business. . 1. 3 Price When comes to pricing strategy of HP products, prices are reasonable based on the quantity and quality consumers are buying. Customers can enjoy discount and allowance pricing based on what they are buying, customers who buy in bulk are offered quantity discount. Also channel members like national and sub distributors who perform further selling are handed with functional discount To take advantage further more on pricing, HP use segment pricing, where household and industrial customers pay different prices for the same product as their earns are different.
According to Pricing strategies: Hewlett Packard (Anon, 2009), One of the options HP is giving its consumers is pay-per-use utility pricing which charges consumers for actual usage on a monthly basis. This technology works by measuring the percentage of utilization on each Central Processing Unit. The advantage for HP customers is that they will only pay for processing they are utilizing. They also have the option to use additional processors, therefore processing is not limited. In addition, different versions of the same products priced differently with respect to the configuration of components. . 1. 4 Promotion Hewlett Packard use different methods to promote their products to users, here are as follows; * Publics relations – “The HP Media Relations department provides journalists and editors with assistance in referencing background information of the company, it is setting up interviews with HP executives or scientists, securing press materials, and checking facts. ” (HP newsroom, 2011) * Advertising – along with mass production of its products, HP is promoting its products via internet, including a website with videos and navigation sorted by business application. Sales promotion – through HP trade-In-frequently asked questions, HP is attempting to provide added value or motivation to consumers to stimulate sales. It is doing this by providing answers to questions which are mostly asked by customers, thus putting them in a good position to gain customer loyalty and form a strong relationship with them. 2. 2 E-Customer Relationship Management “E-CRM is a strategy used by online businesses to learn more about customers’ needs and behaviours in order to build a good relationship with them”(Romano and Fjermestad, 2002).
As stated by (janjicek, n. d), records from HP customer relationship model which was built on experiences attained from CRM project engagements globally shows that the customer relationship is strengthened by relationship building tactics, which are continuously measured through time. E- CRM in HP supports effective customer interaction for sales and marketing automation thus forming a strong customer relationship, which leads to acceptable customer loyalty, profitability and retention.
Hp is offering the following E-CRM to its customers; customer centred services, which involve products shape and customization, and value added services, which includes online training and education. This E-CRM addresses the requirements of enhancing and changing the customer experience by providing the functionality required to effectively interact with the customer, during the Sales and Marketing process. HP effectively interacts with their customers by fulfilling the following: * Knowing their customer’s needs and pro-actively engage their customer. * Knowing their customer and also their conversations/interactions with HP.
Is not only to build a better relationship with customers, but also to serve them effectively. * They use the knowledge gained during customer interaction to improve the interaction and relationship with the customer. 2. 3 Virtual Communities HP Enterprise Business Community- this community is for customers who have questions, as it provides answers or those customers seeking for advice. “Through Enterprise Business Community connection, the user can find information and connect with other users, share thoughts, exchange knowledge and have a chance to speak to the experts. (Hp. com, 2011) HP Virtual Community Interest Group– according to (HP BladeSystem, 2011) this community is focused on Virtual Connect, bringing the newest, ground-breaking blade interconnect technology on the market to customers. HP is keep in touch with its customer through this community, listening to what they have to say, a complaint or complement, then they give feedback on the Virtual Connect solution, and we will keep their customers updated on the latest improvements and tools. 3. 0 Environmental Analysis
As the researcher stated earlier on, HP is a leading consumer technology company in the world, offering a range of technology tools, from digital cameras to PCs to handheld devices. However, it is important to see how the company is managing to keep peace with this fast developing of technology and able to beat its competitors. To analyse this, the researcher will use a SWOT analysis as a tool “to evaluate the overall company’s strengths, weaknesses, opportunities and threats. It involves monitoring the external and internal marketing environment. (Kotler and Keller, 2006) A SWOT analysis will provides an overall view of HP, and the factors can be useful in detecting the extent and type of barriers to work effectiveness that might exist there. 4. 0 Segmentation and targeting, differentiation and positioning 4. 1 Market segmentation Hp as a large firm with many customers, it is catering for them based on their demographic, behaviour, geographical, psychographic. 4. 1. 1 Demographic Some of Hp products and services are divided in such a way that they meet a certain group of customers, either based on their age, occupation, income, religion or social class.
A typical example is an Hp mini notebook pc which was introduced to target education market. The personal computer is more accessible to school students, both the selling price and design wise. “HP has entered the arena with the announcement of the HP 2133 Mini-Note PC, a full-function, small-format laptop PC priced from under US$500. ” (McKeegan, 2008) Hp also has divided their service branch into four main areas to better serve their customers, they include: 4. 1. 2 Psychographic segmentation
Hp is catering different people of different interests and values, for example youngsters who prefer stylish design, more features on entertainment as well as businessmen who are looking for favour elegant and formal design so that they can make improvement in their official tools and applications. 4. 1. 3 Geographic segmentation Hp targets their market mostly in urban areas where people can afford to buy their products and have knowledge and skill to use them. It is especially targeting big cities with class of people who live high standards lives and are seeking for the self-esteem and self-actualization levels of needs. . 1. 4 Positioning for the future HP’s sustainability strategy has already established the company as a clear thought leader in the industry, giving them an advantage that leads to first-mover opportunities and first pick of top suppliers, employees and partners. “HP will continue making different infrastructure and distribution strategies, which will further aligns its operations with emerging best practices, giving it a competitive edge, and opening new growth horizons” (Lowitt and Grimsley, 2009).
Hp has also positioned itself as an environment friendly company, which through the use of technology, “they believe there is an opportunity for IT to be a significant part of the solution in providing energy efficiency, reduction of resource conservation and substitution of high carbon by low-carbon processes. ” (Accenture, 2010) 4. 1. 5 Future differentiation Hp is planning to come up with a massive Touchpad which according their European chief it will become better than Apple product, iPad. In his statement reported by Reisinger (2011) he said “In the tablet world, we are going to become better than number one.
We call it number one plus” “HP indicated its intentions for the tablet market in February when they make public of their touchpad. The device runs the company’s WebOS operating system and comes with a 9. 7-inch display. When it hits store shelves sometime this summer, it will include the Qualcomm Snapdragon dual-core 1. 2 GHz processor and both front- and rear-facing cameras. ” (Reisinger, 2011) The device also supports a new HP Touchstone Touch-to-Share proximity-based sharing feature, which allows compatible devices to instantly exchange data, media, and information. 5. 0 Objectives and E-marketing Strategies . 1 Corporate objectives Source: (HP, 2011) 5. 2 E-CRM recommendations Hp as a click and mortar company which has position its self as the best in the industry and aiming to gain its customer’s loyalty, needs to provide the best services to continue with their good relation with its customers. One of the improvements that need to be taken into account is the find store search, Hp have many physical stores all over the world, so it will be a better idea if they can implement an e-recommendation via find store search on their website so that customer can easily find the physical store nearest to where they are.
That will help the company to increase the profit as some customer do not feel comfortable with buying online, but preferring to buy from a physical store. Hp can also implement the SMS tool, which will allow customers to key in their mobile number after shopping from Hp website, and then the automation message will be sent to them as part of appreciation of shopping from Hp. This tool will help Hp to serve targeted market and boost customer loyalty. 6. 0 Implementation and Evaluation 6. 1 Electronic Commerce Solution integrated with SMS Gantt chart Proposed system A buyer ECS integrated with SMS Administration desk
Message sending to buyer’s mobile Clicking appreciation message Reporting buying confirmation Process buying until it is accepted Process flow The process will start when the customer process his/her buying, through the process stage, particular at filling in details stage, the customer will have to submit his/her phone number, then follow the normal stages of online buying via Hp website. As the buying has completed and accepted, the deal will confirmed with the company Electronic Commerce Solution integrated with SMS system, which will send a report alert message to the person at the administration desk.
The person at the administration desk will then click the already automated message of appreciation, and then tracked by ECS system and deliver to the targeted customer’s mobile number. Evaluation To ensure the effectiveness of this e-CRM, HP will look at the loyalty of the customer, for example, if the customers return again to buy from the company, it will convince that he/she is happy with the service and attention he/she was given last time, thus he/she is encouraged to come again. On the other hand, HP can do primary research, which will include survey and questionnaire about this project.
Through those methods of data gathering, the company will able to know exactly what the customers feel about the service. 6. 2 e-Recommendation via find store searching tool Gantt chart Proposed system Customers Searching tool Locations database Search by selecting/ type in location name Checking searched information from the database Not available Found Process flow Customers who want to visit the nearest store to their locations will able to search by using their state name as a target; they will either select their state or type in the name if it is not available in the drop down menu.
The searching tool will then check the stores available from the locations database, if there is no stores in that area, the customer will receive a notification, but if there are stores available, the customer will be provide with relevant information to reach that store, e. g. directions. Evaluation To consider this e-CRM as a success, HP will judge it by number of clicks done by customers, if they are more clicks being done by customers; it means that the system is considered as helpful by customers.
Also they research can be carried out at HP physical stores, asking customers about how did they managed to reach the place, if most answers will emphasize that is through a store find search from the website, then the system will be considered as a success and beneficial to the company. Conclusion HP is a large company, which according to the research put its customers first in whatever they are doing. Their main success in the industry has led by good customer service and relationship. The company still have a strong desire to satisfy their customers even more, they always coming up with new ideas to match customers’ demands and needs.
But on the other hand, even though the company is doing well in the market, I strongly feel that their website is not user friendly. As a customer and a researcher, I found it hard to interact with their website; it has too much link and a bit confusing. Word count: 2552 References Books 1. Dave Chaffey, Richard Mayer, Kevin Johnston, Fiona Ellis-Chadwick, 2003, Internet Marketing: Strategy, Implementation and Practice, 2nd ed. Pearson Education Limited, England, pp 7 2. Armstrong, G. and Kotler, P. , 2009. Marketing: An Introduction, 9th ed. Pearson Prentice Hall, United states of America, pp 80 3. Kotler, P. and Keller, K, L. 2006. Marketing Management, 12th ed. Pearson Prentice Hall, United States of America, pp 50 Internet Resources 1. Ken Jones, 2005, CMA helps Hewlett Packard Implement Solutions Marketing Strategy in Government, available at ;http://www. cmai. com/Newsletter/HPCaseStudy. pdf; last accessed on the 25 May 2011 2. (Anon, 2009) Pricing strategies: Hewlett Packard, available at ;http://arianagoldstein. blogspot. com/2009/04/pricing-strategies-hewlett-packard. html; last accessed on the 27 May 2011 3. Rose janjicek, n. d, CRM architecture for enterprise relationship marketing in the new millennium, available at ;http://h20338. ww2. hp. com/enterprise/downloads/CRMArchitecture_Whitepaper_HPC. pdf;last accessed on the 29 May 2011 4. Accenture, 2010, Hewlett-Packard: Sustainability as a Competitive Advantage, available at ;https://microsite. accenture. com/sustainability/Documents/HewlettPackard_Sustainability_as_a_Competitive_Advantage. pdf; last accessed on the 30 May 2011 5. Romano, N. C. , and Fjermestad, J. , “Electronic Customer Relationship Management: An Assessment of Research,” International Journal of Electronic Commerce, 6, 2 (2002),pp 61-113 6. HP BladeSystem, 2011, where the worldwide HP blade community meets, available at ;http://h18000. ww1. hp. com/products/blades/components/bladeconnect. html; last accessed on the 30 May 2011 7. Noel McKeegan, 2008, HP targets education market with new Mini-notebook PC, available at ;http://www. gizmag. com/hp-targets-education-market-with-new-mini-notebook-pc/9140/; last accessed on the 4 June 2011 8. Eric M. Lowitt and Jim Grimsley, 2009, Hewlett-Packard: Sustainability as a Competitive Advantage, available at ;http://www. hp. com/hpinfo/globalcitizenship/environment/commitment/accenturestudy. pdf; last accessed on the 4th June 2011 9. HP, 2011, HP Corporate Objectives and Shared Values, available at http://www8. p. com/us/en/hp-information/about-hp/corporate-objectives. html last accessed on the 4th June 2011 10. HP newsroom, 2011, Contact HP media relations, available at ;http://www. hp. com/hpinfo/newsroom/media. html; last accessed on the 11 June 2011 11. Raman, M. , 2011, International Business Times: Tablet Shootout: Apple’s iPad 2 Vs HP’s TouchPad, available at ;http://www. ibtimes. com/articles/118866/20110304/ipad-2-touchpad-apple-hp-xoom-motorola-iphone-tablets-pc-steve-jobs-samsung-galaxy-tab-rim-playbook. htm; last accessed on the 16th June 2011 Appendix Virtual communities HP on twitter – provides authorized news and any updates from HP official news. New users are allowed to sign up, while those who have accounts already they just need to sign in so that they can follow and have their say on updates and official news. Through this community, HP is able to connect and inform its customers, thus forming a good relationship. * HP on facebook – with this community, users who have facebook accounts and have liked the HP page on facebook, are able to find out what is happening around HP, view photos and learn what HP is doing to help them live green.
Also users are allowed to post their feedback on HP’s profile, and HP is using them to analyse their contribution to the society and make improvements where necessary. The comparison between Apple’s iPad 2 and HP’s TouchPad Specifications| iPad 2| HP TouchPad| OS| iOS 4. 3| WebOS 3. 0| Network| Wi-Fi only, GSM (AT;T), CDMA (Verizon)| GSM| Screen Size| 9. 7-inch| 9. 7-inch| Resolution| 1024×768| 1024×768| Processor| Apple A5 dual core 1 GHz| Qualcomm Snapdragon dual core APQ8060 1. 2 GHz| Storage| 16GB/32GB/64GB| 16GB/32GB| RAM| N/A| 1GB|
Rear Camera| 720p| None| Front Camera| VGA| 1. 3mp| Video Recording| 720p| N/A| Adobe Flash Support| No| Yes| Wi-Fi| 802. 11 a/b/g/n| 802. 11b/g/n with WPA, WPA2, WEP, 802. 1X authentication| Sensors| Light, Accelerometer, compass, gyroscope| Light, Accelerometer, compass, gyroscope| Bluetooth| 2. 1+EDR| 2. 1+EDR| TV Out| 1080p, HDMI, VGA| No| Weight| 1. 33 pounds| 1. 6 pounds| Battery| 25 watt hour| 6,300 mAh Battery| Price| Wi-FI only version starts at $499| N/A| Availability| March 11, 2011 (US), March 25 Worldwide| Summer| Source: (Raman, 2011)