NEW DELHI INSTITUTE OF MANAGEMENT

SUMMER TRAINING REPORT

ON

IDENTIFICATION OF CUSTOMERS IN SME SECTOR

For

HEWLETT PACKARD

By

PIYUSH DUBEY289

In partial fulfillment for the award of the degree ofPost Graduate Diploma In Management

2014-2016

New Delhi Institute of Management50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062

E-mail : placement@ndimdelhi.org Website : www.ndimdelhi.org

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ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion 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 corporate mentors Mr. Joydeep Dhara & Mr. Anirban Nandy and my faculty mentor Mr.Vineet Vishnu. I am greatly indebted to both of 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.

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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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CERTIFICATE

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Index

1. EXECUTIVE SUMMARY……………………………………6

2. INDUSTRY OVERVIEW…………………………………….8 - 10 OVERVIEW PRINTING TECHNOLOGIES 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

5. RESEARCH METHODOLOGY…………………………35-36

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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

Executive Summary6

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 support and 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.

Project Objective’s :

To understand & identify the customers (Imaging & Printing Department) in the Small & Medium Enterprise Segment.

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 Code 700001 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.

Secondary data:- The data which has been already collected by someone is

known as secondary data. Is collected from internet , books, etc.

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2. INDUSTRY OVERVIEW

INDUSTRY OVERVIEW

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The printer industry targets several different markets, including home and homeoffice, small and medium businesses, large enterprise businesses, and professional printing services. The product is 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 product lines, 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 of reforms 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 production capacities.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 scope for package printing. Giving an optimistic outlook of the industry, the package printing sector is 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. For the 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.

PRINTING TECHNOLOGIES

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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 alengthy 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 dropselectronically onto the printing medium. Considered the oldest inkjet technology, it is used in high-speed production lines to print small characters on product surfaces. However, image resolution is difficult to control and the complex ink-circulation system requires maintenance.

Laser printing technology :

Laser printers are based on a technique used in photocopiers. Heat and pressureare employed to fuse dry toner to paper. Cyan, magenta and yellow can be combined to produce color images. 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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3. COMPANY PROFILE

INTRODUCTION

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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 Hardcopy Peripherals and was followed by its nearest competitor Epson, which held a 14.2% share .

BACKGROUND ON HEWLETT PACKARD

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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 product that 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 successful printers in history. In 2003, HP released over fifty new imaging and printing products. The value 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.

PROMOTERS & SENIOR EXECUTIVES

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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.Robert Young 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

MISSION

HP doesn’t have an official mission statement but it’s expressed through

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“The HP Way”, which states company’s values and objectives.

Corporate Objectives:

Customer loyalty : We earn customer respect and loyalty by consistently providing the highest quality and value.

Profit : We achieve sufficient profit to finance growth, create value for our shareholders and achieve our corporate objectives.

Growth: We recognize and seize opportunities for growth that builds upon our strengths & competencies

Market leadership : 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 by promoting and rewarding based on performance and by creating a work environment 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 economic, intellectual and social asset to each country and community where we do business.

STRATEGYAt an HP analyst summit , it was outlined the new direction that the company should take to recover fat margins and past stock price. A new strategy was shared that relies heavily on analytics software and being a cloud platform for consumer and business segments. HP’s new vision is to provide seamless, secure, context-aware experiences for a connected world.

The Work Culture

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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 accept mistakes as a part of the learning process. We encourage experiential learning, and believe in clear delegation of authority and acceptance of 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 product departments. This is one of the major formal organizations within the company. They have three technology areas: the personal systems group (PC’s), the imaging and printing group (inkjet, and printing), the enterprise business (storage and services, enterprise services and software). This product departmentalization is one way which hp organizes their large company. Here’s a look at the organisation structure :

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CEO

CFO LEGAL SECRETARY

BY ACTIVITY

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SOFTWARE SOLUTION

SALES & ENTERPRISE MARKET

ENTERPRISE SERVER & NETWORKS

HUMAN RESOURCES

TECHNOLOGY & BIZ

IMAGING & PRINTING

MARKETING PERSONAL SYSTEM GROUP

EMERGING MARKETS

COMMUNICATION

TURNOVER

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HEWLETT PACKARD

IMAGING & PRINTING GROUP

PERSONAL SYSTEMS GRP

ENTERPRISE SYSTEM GRP

HP SERVICES

HP FINAL SERVICES

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 was over 13%, HP’s stock rose by 45% from $27.66 to $40. The primary reason for this increase was the improvement in HP’s share in PC and server market. According to the latest data the market share of Hewlett Packard is around 30.30% beating its competitors comfortably.

Revenue ModelThe 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 %

Future Plans

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To increase market share. To increase compatibility of firm products and services with other firm

hardware 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 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

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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.

Competition

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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 document printing 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 support their office printers. These products focus on enabling document distribution and management, network management, and security data protection.

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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 Printers2. Home3. A3 Family4. SOHO & SMB5. Enterprise

OTHER PRODUCTS & SERVICES

LAPTOPS & TABLETS PC DESKTOPS & WORKSTATIONS

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SOFTWARES

SERVERS & STORAGE

MONITORS

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CSR POLICY

CSR COMMITTEE

Constitution Pursuant to the provisions of Section 135 of the Act, the Board of Directors shall constitute the Corporate Social 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 accordance with the CSR Rules

(iv) Recommend the CSR Budget

(v) Spend the allocated CSR amount on the CSR activities once it is approved by the Board of Directors of the Company in accordance with 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 respect of 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

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CSR Inititiatives

The Company proposes to implement its CSR activities in various sectors stated hereunder:

Targeted Sectors

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

Expenditure on CSR capabilities

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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.

LEADERSHIP MODEL28

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 or we 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 general interest: 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.

Scalar Chain:

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) 

Cost-benefit analysis of inkjet v. laser printers

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Inkjets have traditionally been more popular in the home market than laserprinters as they are generally cheaper. There is no warm-up cycle or down timeassociated 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 produce high-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 produce ahigh volume of pages per month at faster speeds, and are capable of producing extremely high-quality text and graphics. For this reason, laser printers have found greater success in the office and industrial markets.

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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 : Margaret Whitman

Website : http://www.hp.com

Employees : 302,000

Sales : $109.76 B

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

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4.OBJECTIVE & SCOPE OF STUDY

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OBJECTIVE & SCOPE OF STUDY

Objective of the Study :

The main objective to conduct this 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 concept and process of marketing research.

To understand and get the concept of 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 product presence in the market.

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Scope of the Study

The project scope involves 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 purpose behind giving the printer a model no. to the technology part & innovations. The project scope also 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.

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5.RESEARCH METHODOLOGY

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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 product among 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 of the concerned persons had been thoroughly analyzed.

Conclusions had been arrived at using the response of 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 procedure adopted in selecting items for the sampling designs are as below:

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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).

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6.DATA COLLECTION METHOD

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Data collection method:-

The data collected from the research can be classified as primary data and

secondary data.

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.

Secondary data:- The data which has been already collected by someone is

known as secondary data. 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 the attitude of the customer.

Sampling plan:-

Keeping all the constrains in mind a sample size of 230 people .The sampling

procedure is systematic sampling.

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7.ANALYSIS BY PORTER’S FIVE FORCES MODEL

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FIVE FORCES MODEL

ANALYSIS

1. Threats of New Entry

Capital cost for entering into hardware and software market is not so easy. The high cost of 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 from the 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. Threat of 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 produce copies 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.

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4. Bargaining Power of 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 Power of 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

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8. ANALYSIS & SUGGESTIONS

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Printer Volume Comparison

HPEpson

CanonSamsungOthers

ANALYSIS & INTEPRETATION

ANALYSIS 1 :

Figure: No. of printers in the 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

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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 Poor quality, 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.

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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.

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ANALYSIS 2

52%

30%

18%

Market Trends of Color Or Mono Printers

ColorMonoBoth

Type Market Share In PercentageCOLOR 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.

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ANALYSIS 3

54%

46%

Cartridge

OriginalRefilled

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.

3. Continuing this way can hamper , Hp’s market share & reputation.

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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.

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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.

Process Advantage . 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 processes in 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 cost by 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."

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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.

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Printer Volume Comparison

HPEpson

CanonSamsungOthers

QUESTIONARRE FRAMED & THEIR RESULTS

o Which brand of printer do you use ?

o A3 or A4 paper size

68%

32%

A3 A4

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o Color or Mono ?

52%

30%

18%

Market Trends of Color Or Mono Printers

Color

Mono

Both

o Single function printer or multi-function printer ?

33%

42%

25%

Results

SINGLEMULTIBOTH

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o If the users are connected through networking or not ?

23%

77%

Results

YesNo

54

o Duplexing feature is available or not ?

58%

42%

YesNo

o Do you use an original cartridge/ toner or refilled one ?

54%

46%

Cartridge

OriginalRefilled

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o No. of users in the office ?

5 to 10 10 to 20 20 or more0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

No. Of Users

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What is the approx monthly printing volume ( NO. of pages printed in each month ) ?

1000 to 1500 1500 to 2500 2500 to 4000 4000 & above0%

5%

10%

15%

20%

25%

30%

35%

Printing Volume

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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, Epson were

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 cost in case of high volume. Customers preffered printers with multi- function quality & specially

Scanning & photo-copying features.

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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.

• For competition 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.

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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 copy of 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.

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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.

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BIBLIOGRAPHY

1. www.ukessays.com

2. Marketing Marketing by Kotler

3. Marketing Research

4. www.hp.com

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ANNEXURE

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