marketing strategies adopted by hcl

7/30/2019 Marketing Strategies Adopted by HCL

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A

TRAINING PROJECT REPORT

ON

MARKETING STRATEGY ADOPTED BY HCL

INFOSYSTEM

In partial fulfillment for the

BACHELOR OF BUSINESS ADMINISTRATION

(2009-2012)

Submitted To: Submitted By:

NEHA TYAGI9683528

BECON INSTITUTE OF TECHNOLOGY


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DECLARATION BY LEARNER

I NEHA TYAGI hereby declare that the Project titled

MARKETING STRATEGY ADOPTED BY HCL INFOSYSTEM

is an Original piece of work. It has been submitted in partial fulfillment for the Award of

the Bachelor of Business Administration.

Date:

Place: Meerut


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ACKNOWLEDGEMENT

I take the opportunity to express our gratitude to all the concerned people who have

directly or indirectly contributed towards completion of this project. I extend my sincere

gratitude towards Mr. Sanjay Kumar HR Manager at HCL. for providing the

opportunity and resources to work on this project.

I am extremely grateful to Miss Renu Dudeja, my mentor for his guidance and

invaluable advice during the projects.

At Last I would like to thanks my parents and friends for their support.


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PREFACE

Todays market scenario is totally different from few years ago. Consumer has a

lot of choice for every product because day-by-day new companies are coming with their

product. Later there was limited choice for mostly products and companies didnt have to

put much efforts to sale their product. But todays scenario is totally different. Consumers

have choice because of availability of varieties and options. We can say todays

consumer is the king of market. So it is important to know his buying behavior and try to

fulfill his demand. Companys aim should be customer delight not costumer satisfaction.

The purpose of this dissertation project is to know the marketing strategies which

HCL Infosystems Ltd. uses to become the market leader in the field of Personal

Computers and Different marketing strategies adopted by HCL to compete with others.

HCL Infosystems how much is fulfilling the customer needs and try to sale the

maximum of personal computer

This dissertation report making was really good learning period for me. I got

opportunity to know the theoretical knowledge related to marketing strategies.

This dissertation report is part of course of BBA program, which is set by CCS

University, and it is necessary for every student to under go for dissertation project. This

project report is also made for submission to BIT Meerut. Sustains including in this

report are research methodology, analysis of activities, conclusion and bearing from this

project Bibliography is also given in last to know from where information has been taken

to complete this project. I hope this project will serve the purpose.


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TABLE OF CONTENTS

SNO. PARTICULARS PAGE NO.

1. Company Profile

2. Review of Literature

3. Synopsis of Study:

Objectives of study

Scope of Study

Research methodology

Research Design

Method of Data Collection

Limitations

4.. Data Analysis & Interpretation

5. Finding of the Study

6. Conclusions

7. Recommendations & Suggestions

8. Annexure

Bibliography

Questionnaire


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Chapter 1

HCL INFOSYSTEMS LTD.

HCL Infosystems is India's premier information enabling company. Leveraging

its 28 years of expertise in total technology solutions, HCL Infosystems offers value-

added services in key areas such as system integration, networking consultancy and a

wide range of support services.

HCL Infosystems is among the leading players in all the segments comprising the

domestic IT products, solutions and related services, which include PCs, servers,

networking products, imaging & communication products.

Continuously meeting the ever increasing customer expectations and applications, its

focus on integrated enterprise solutions has strengthened the HCL Infosystems'

capabilities in supporting installation types ranging from single to large, multi-location,

multi-vendor & multi-platform spread across India. HCL Infosystems, today has a direct

support force of over2000+ members, is operational at 300+ locations across the country

and is the largest such human resource of its kind in the IT business. A majority of the

team members have been specially trained in a variety of supporting solutions, the

company's key focus area.

HCL Infosystems' manufacturing facilities are ISO 9001 - 2000 & ISO 14001 certified

and adhere to stringent quality standards and global processes. With the largest installed

PC base in the country, four indigenously developed and manufactured PC brands -

'Infiniti', 'Busybee' 'Beanstalk' and 'Ezeebee' - and its robust manufacturing facilities;

HCL Infosystems aims to further leverage its dominance in the PC market. It has been

consistently rated as Top player in PC industry by IDC .The 'Infiniti' line of business

computing products is incorporated with leading edge products from world leaders such

as Intel. A fully integrated and business-ready family of servers and workstations, the

'Infiniti Global Line' is targeted at medium and large companies to help them to manage

their enterprise-related applications. It has considerable dominance in verticals like


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Finance, Government, and Education & Research.

The Channel Business of HCL Infosystems has an extensive network of over 2500+

resellers across 300 locations. It has actively promoted the penetration of PCs in the

home and the small office/home office (SOHO) segments, through Beanstalk, Ezeebee &

Busybee PCs and Toshiba Laptops.

HCL Infosystems has two focused business units. While HCL Infosystems concentrates

on the IT products, solutions and related services business, HCL InfiNet focuses on the

rapidly growing communication and imaging products, solutions and services industry.

HCL InfiNet, with a presence in more that 35 cities, has the ability to service around 250

cities in its catchment area. It provides corporate networking services like Virtual Private

Network, Broadband Internet Access, Hosting & Co-location services, designing &

deploying Disaster Recovery Solutions & Business Continuity solution, Application

Services, Managed Security Services & NOC Services over its state-of-the-art IP network

to over 200 corporates. With the Office Automation (OA) Division being part of it, HCL

InfiNet now has an exclusive sales and support partnership with Toshiba Corporation,

Japan, for its photocopier products. The product portfolio covers a range of other office

automation and communication products through alliances with world leaders - including

Duprinters from Duplo, data projectors from InFocus, Telecommunication solutions from

Samsung and Ericsson and mobile communication products from Nokia. HCL Infinet

Ltd. has a strong and dedicated retail network of Nokia Professional Centres, Nokia

Priority Dealers and Re-distribution Stockist across the country.

HCL has closely seen the IT industry rise from scratch, and has actively participated in its

progress. During the twenty-eight year journey, it has picked up valuable lessons in

serving the IT needs of the Indian customer and gathered domain expertise to

successfully service various businesses.

As a leading information enabler, HCL Infosystems has long standing relationships with


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world technology leaders such as SUN for enterprise computing solutions, Intel and

AMD for PCs & PC Servers; Microsoft, Novell and SCO for operating systems and

software solutions; Toshiba Corp. for business automation equipment; SAP AG for

specialist ERP solutions; and Oracle, Sybase and Informix for RDBMS platform, EMC,

Veritas for storage solutions. The aim is to straddle the entire landscape of information

enabling technology far more comprehensively, effectively and competitively. Indeed, a

vision to create enterprises of tomorrow.


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Chapter 2

OBJECTIVE

The purpose of research is to discover answers to question through the application of

scientific procedure. The main aim of research is to find out the truth which is hidden and

which has not been discovered as yet. Though each research study has its own specific

purpose, we may think of research objectives as falling into a number of following broad

groupings:

1. To gain familiarity with a phenomenon or to achieve new insight into it

(studies with this object in view are termed as exploratory or formulative

research studies).

2. To portray accurately the characteristics of a particular individual, situation or

a group (studies with this object in view are known as descriptive research

studies)

3. To determine the frequency with which something occurs or with which it is

associated with something else(studies with this object in view are known as

diagnostic research studies)


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Chapter 3

COMPANY PROFILE

HCL Info systems Ltd are one of the pioneers in the Indian IT market, with its origins in1976. For over quarter of a century, we have developed and implemented solutions for

multiple market segments, across a range of technologies in India. We have been in the

forefront in introducing new technologies and solutions. The highlights of the HCL saga

are summarized below:

Y E A R1976

Foundation of the Company lay. Introduces microcomputer-based programmable calculators with wide

acceptance in the scientific / education community.

1977

Launch of the first microcomputer-based commercial computer with a ROM -

based Basic interpreter.

Unavailability of programming skills with customers results in HCL

developing bespoke applications for their customers.

1978

Initiation of application development in diverse segments such as textiles, sugar,

paper, cement, transport.

1980

Formation of Far East Computers Ltd., a pioneer in the Singapore IT market, for

SI (System Integration) solutions.


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1981

Software Export Division formed at Chennai to support the bespoke application

development needs of Singapore.

1983

HCL launches an aggressive advertisement campaign with the theme ' even a

typist can operate' to make the usage of computers popular in the SME (Small &

Medium Enterprises) segment. This proposition involved menu-based

applications for the first time, to increase ease of operations. The response to the

advertisement was phenomenal.

HCL develops special program generators to speed up the development of

applications.

1985

Bank trade unions allow computerization in banks. However, a computer can only

run one application such as Savings Bank, Current account, and Loans etc.

HCL sets up core team to develop the required software.

ALPM (Advanced Ledger Posting Machines). The team uses reusable code to

reduce development efforts and produce more reliable code. ALPM becomes the

largest selling software product in Indian banks.

HCL designs and launches Unix- based computers and HCL PC clones.

HCL promotes 3rd party PC applications nationally.

1986

Zonal offices of banks and general insurance companies adopt computerization.

Purchase specifications demand the availability of RDBMS products on the

supplied solution (Unify, Oracle). HCL arranges for such products to be ported to

its platform.


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HCL assists customers to migrate from flat-file based systems to RDBMS.

1991

HCL enters into a joint venture with Hewlett Packard.

HP assists HCL to introduce new services: Systems Integration, IT consulting,

packaged support services (basic line, tramline).

HCL establishes a Response Center for HP products, which is connected to the

HP Response Center in Singapore.

There is a vertical segment focus on Telecom, Manufacturing and Financial

Services.

1994

HCL acquires and executes the first offshore project from HCL Thailand.

HCL sets up core group to define software development methodologies.

1995

Starts execution of Information System Planning projects.

Execution projects for Germany and Australia

Begins Help desk services.

1996

Sets up the STP (Software Technology Park) at Chennai to execute software

projects for international customers.

Becomes national integration partner for SAP.

1997

Kolkata and Noida STPs set up.

HCL buys back HP stake in HCL Hewlett Packard.


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1998

Chennai and Combater development facilities get ISO 9001 certification.

1999

Acquires and sets up fully owned subsidiaries in USA and UK.

Sets up fully owned subsidiary in Australia.

HCL ties up with Broad vision as an integration partner.

2000

Sets up fully owned subsidiary in Australia.

Chennai and Combater development facilities get SEI Level 4 certification.

Bags Award for Top PC Vendor in India.

Becomes the 1st IT Company to be recommended for latest version of ISO 9001:

2000.

Bags MAIT's Award for Business Excellence.

Rated as No. 1 IT Group in India.

2001

Launched Pentium IV PCs at below Rs. 40,000.

IDC rated HCL Info systems as No. 1 Desktop PC Company of 2001.

2002

Declared as Top PC Vendor by Dataquest.

HCL Info systems & Sun Microsystems enter into a Enterprise DistributionAgreement.

Realigns businesses, increasing focus on domestic IT, Communications &

Imaging products, solutions & related services.


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2003

Became the first vendor to register sales of 50,000 PCs in a quarter.

First Indian company to be numerous undo in the commercial PC market.

Enters into partnership with AMD.

Launched Home PC for Rs. 19,999.

HCL Info systems' Info Structure Services Division received ISO 9001:2000

certification.

Launches Infiniti Mobile Desktops on Intel Platform.

Launched Infiniti PCs, Workstations & Servers on AMD platform.

2004

Ist announces PC price cut in India, post duty reduction, offers Ezeebee at Rs.

17990.

IDC India-DQ Customer Satisfaction Audit rates HCL as No. 1 Brand in Desktop

PCs.

Maintains No. 1 position in the Desktop PC segment for year 2003.

Enters into partnership with Port Wise to support & distribute security & VPN

solutions in India.

Partners with Microsoft & Intel to launch Beanstalk Neo PC.

Becomes the 1st company to cross 1 lac unit milestone in the Indian Desktop PC

market

Partners with Union Bank to make PCs more affordable, introduces lowest ever

EMI for PC in India.

Launched RP2 systems to overcome power problem for PC users.

Registers a market share of 13.7% to become No. 1 Desktop PC company for year

2004.

Crosses the landmark of $ 1 billion in revenue in just nine months.


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CHAIRMAN & CEO'S PROFILE

Ajai Chowdhry

Chairman and CEO, HCL Infosystems Ltd.

An engineer by training, Ajai Chowdhry is one of the six founder members of HCL,

India's premier IT enterprise. HCL, a start-up in 1976, touched Rs.11, 000 crores for the

last 12 months.

Ajai Chowdhry took over the reins of HCL Infosystems, the flagship company of the

group, as President and CEO in 1994. He was appointed the Chairman of HCLInfosystems in November 1999. Under his stewardship, the company's turnover has

grown to Rs.7783.6 crores in 2004-05 from Rs.400.6 crores in 1994. With employee

strength of over 3600, it has emerged as country's leading information-enabling

powerhouse.

Ajai has been a key force in driving the growth of HCL Infosystems. The credit of setting

upHCL's overseas operations, starting with Singapore in 1980, goes to him. During this

tenure he extensively covered South Asian Markets including Malaysia, Thailand, Hong

Kong, Indonesia, and the People's Republic of China, expanding business operations,

which paved the way towards enhancing HCL's core competencies in bringing the best

international technologies to domestic market.

Driving the thrust on IT, Telecom and Imaging, Ajai perceives the role of his company as

that of enabling information. Credited with providing momentum to key IT phenomena -

within the company as well as in the industry - he has constantly added newer and cutting

edge technology skills to the company's portfolio. Under his leadership, several new

projects have been undertaken in the company that have had a lasting impact - getting

into IT retailing, spearheading the company wide Quality movement, and the very recent

low cost PC initiative and IT for masses are some examples. An absolute stickler for

customer focus, he himself spends significant time, personally listening to customers.

Ajai sensed an emerging opportunity early in telecom and imaging category and today


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HCL Infosystems is poised to exploit this opportunity to offer a richer bouquet to its

customers.

It is a recognition of his visionary status that Ajai was part of the IT Hardware Task

Force, set up by the Prime Minister of India to give shape to the country's IT strategy.

Ajai has repeatedly championed the cause of improving PC penetration in the country. He

has worked closely with many Government bodies to take IT for masses agenda forward.

Presently he is part of several government committees to take forward the course of IT

and Hardware in India. He was awarded with 'IT Man of the Year' by The Skoch

Consultancy and 'Best IT Man of the Year' by The Foundation of Indian Industry and

Economists. Ajai also addressed CII's flagship hardware event 'India e-Hardware Summit2004' at Hyderabad as a keynote speaker recently.Ajai has a bachelor's degree in

electronics and communication engineering, and attended the Executive Program at the

School of Business Administration at the University of Michigan, US.Ajai is an avid

reader and is fond of Jazz and the fine arts. He and his wife Gita live in New Delhi.


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ABOUT THE PRODUCTS

Business PCs

HCL recommends Microsoft Windows XP Professional for Business

support.htm

The marketplace is constantly changing in terms of consumers, competition and

strategies to garner market share. Almost all aspects of your business are ever evolving.

The only change over the past few years is that the pace of change has accelerated! In

fact, it is increasing even as you read this.

Information Technology (IT) changes accordingly, perhaps even faster. What is

vital is that the decisions you make today need to have the capacity to address situationsfor at least the next three years and the changes that are commercial desktop segment in

India, ahead of competition. Infiniti is the only brand in Indian IT that offers you bound

to occur in that time.
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Infiniti is the market leader in Remote Support for Software, an innovative

support mechanism that is end-user friendly and extremely efficient in problem

resolution, saving you time and opportunity.

We, at Infiniti Product Development recognize this need as the key to success for

you, and for us. Infiniti, backed by direct selling and built-to-order, ISO 9001 & ISO

14001 manufacturing, ensures that you get the best available product at the time of

delivery, rather than at the time of order.

This Technology First brand features the latest innovations in Central Processing

Unit (CPU) design, graphics design, display design, I/O advancement and a host of other

technologies that have made Infiniti the number one corporate PC brand in India.

Home PCs HCL recommends Microsoft Windows XP Professional

support.htmsupport.htm

The all-new Beanstalk Series, where performance is rivaled only with elegance of

design. You get superior technology and great value for money, all fused into one. It

comes with the super-speed Intel processor, plus SD RAM and Ultra ATA Hard Disk

that gives it incredible speed.

What's more, it is upgrade friendly and so virtually future-proof. Manufactured at

HCL Info systems' state-of-the-art ISO 9001 certified plant, it is designed to outperform

every other Home Computer you have ever

seen or heard about. And with more than 250 Support providers across the country, its

widespread network ensures excellence in Customer Care. So go ahead and enjoy the

wonder that is HCL Beanstalk, and watch, it will

amaze you for years to come.
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It is faster than the fastest home computer. The HCL Beanstalk comes

equipped with the lightening fast Intel Pentium 4 processor which means you can

now get mind blowing multimedia performance from your computer. With its high

performance processor, it brings you the internet like no other computer can. So get ready

to experience 3D graphics, virtual reality and realistic audio-video, like never before.

The HCL Beanstalk with Intel Pentium 4 processor. the center of your digital

world is designed to meet not just your today's computing requirements, but also the

needs of your future. So bring home the HCL Beanstalk today and stay ahead of the rest

of the world

HCL launches the New Beanstalk Media Center PCs. Digital Home

Entertainment now at the touch of a button with a full feature remote. Check it out!

The new Toshiba Protg A100 that lets you enhance your mobile lifestyle with

its attractive Pearl White Design and Intel Centurion mobile technology. Check it out!

The new range of HCL Home PCs with futuristic technology, amazing

performance at unbelievably attractive prices.

HCL offers Toshibas complete range of Mobile Computing Solutions, the

ultimate in style and performance.

The HCL Busy bee range of PCs offers performance, with maximum returns for

your Business. Home | Legal Notice | Contact.


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The most affordablequalityPC

Finally a quality, branded PC that was affordable. The launch of HCL ezeebee,

revolutionized the Indian PC market. A quality of PC available at just rupees 399/- per

month. The advantage of owning an HCLezeebee is its quality and reliable after sales

service. HCL with its service location all across the state and country offers customers

the comfort of trouble free operation of its system, where ever they may be. All the

component used in HCL ezeebee are selected from the best manufactures in the world

and are tasted tomake sure they work in tropical climates.

HCL Busybee

Indias largest installed business PCs
http://www.hclstore.com/ezeebee.htmlhttp://www.hclstore.com/ezeebee.html


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A computer system designed and configured to meet the required business computing

needs. Everything with a value-loaded package that can only be made by HCL.HCL

Busybee is manufactured in HCLs state-of-art ISO 9001 certified plant. NO wonder,

HCL busybee has emerged as Indias largest installed business PCs.]

Digital music player

Neopod is a digital music player that offers a whole new dimension of usefulness in the

category of personal entertainment device. This sleek, compact device, not only stores

thousands of titles and plays great music;but can also be used as a pocket hard drive for

PC file backup, as a digital photo storage for digital camera, as a voice recorder and as a

digital FM radio.
http://www.hclstore.com/neo/hclpod.htmlhttp://www.hclstore.com/neo/hclpod.htmlhttp://www.hclstore.com/neo/hclpod.html


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HCL Ezeebee

Notebook computer

Experience mobility. Experience flexibility. Experience performance. With HCL Ezeebee

notebooks. Backed by the reliable HCL technology, these notebooks are designed to

impress. Sharp resolution for high quality images, integrated speakers and superior

graphics make HCL ezeebee notebook the perfect choice to meet all your business and

communication needs. sleek, smart and lightweight. Thats HCL ezeebee notebook for

you.

HCL Beepos

Expanding business opportunities


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HCL Beepos is a readily installed user-friendly application to provide the end user the

power of POS.This product is designed for ruggedness, security and reliability. Beepos

supports wide range of peripherals CCD Barcode scanner, Laser Barcode scanner,

customer pole display, thermal printer, programmable keyboard, etc.Beepos supports

programmable keyboard which can be customized as per user requirement.

GUIDING PRINCIPLES

VISION AND MISSION

VISION STATEMENT

"Together we create the enterprises of tomorrow".

MISSION STATEMENT

"To provide world-class information technology solutions and services to enable

our customers to serve their customers better".

QUALITY POLICY

"We deliver defect-free products, services and solutions to meet the requirements

of our external and internal customers, the first time, every time".


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India a Global HCL Super Power

The Indian computer hardware industry has growing at a rate of over 30 per cent

annually for the past few years and this pace is expected to be maintained until

2005.

As the first table above shows, domestic manufacture has been increasing, but

so also have imports. The locally manufactured computers cater to low-end

applications while the imported computers continue to facilitate CAD, CAM,

CASE, multi-media, and other high-end applications.

Indian computer hardware and peripherals industry segments are dominated by

U.S. joint ventures and suppliers. HCL in collaboration with Tatas, Hewlett

Packard in association with HCL Limited, Digital Equipment Corporation with

Hinditron Group, Silicon Graphics with Tatas, (just to mention four major joint

ventures) manufacture computer hardware for the domestic and export markets.

Compaq, Silicon Graphics, and Dell have opened offices to sell their computers

in India. Sun Microsystems and Apple distribute their products through Wipro

Information Technology Limited.

Most business firms in India have not computerised. Many of those who have,

still use outdated products such as dot-matrix printers instead of laser and ink-jet

printers.

As more and more international companies set up office in India, the demand

for hardware will increase.

The growing awareness of the case to shed fat in the public sector will call for

more automated operations; this too will generate demand for computers.

The prospects for both exports to, and investment in, this sector are excellent.


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we wait for the market to grow to high volumes that justify creating a manufacturing base

in India, or should we just kick-start manufacturing so that prices then come down and

thereby create volumes? The debate has raged on long enough and no consensus seems to

be emerging. Rather, things took a turn for the worse with recent years witnessing a

perceptible decline in manufacturing activity. Therefore, when a recent MAIT study,

conducted jointly with Big Five firm Ernst & Young, concluded that the Indian hardware

industry had the potential to reach a size of $62 billion by 2010, it not only raised many

an eyebrow, but derisive laughter from skeptics.

Sample some salient conclusions of the study which paint a rosy future for India

Hardware Inc: By 2010, the Indian hardware industry has the potential to grow to twelve

times its existing market size, with the domestic market accounting for $37 billion andexports accounting for another $37 billion. The study has identified major export

opportunities in the areas of innovative new devices, contract manufacturing and design

services. The study says that component exports offers an opportunity worth $5 billion,

while that of design and related services in embedded systems and wireless

telecommunication services can bring in another $7 billion by 2010. Further, ambitious

projections have been made in the area of contract manufacturing, which represents a $11

billion opportunity if India succeeds in capturing a share of only 2.2 percent of the global

pie by 2010.

Though the rosy projections look good on paper, is this growth really possible? Sceptics

deride the study as an attempt by the hardware industry to copy its software counterpart,

which has been tom-tomming Nasscom and McKinseys projection of $87 billion in

software revenues by 2008. MAIT officials are however quite upbeat. Says Vinay

Deshpande, president of MAIT, There are four key steps which we need to take to make

India a manufacturing-friendly country. Firstly, market India as a hardware destination

and build a brand akin to software. Making India manufacturing-friendly through

improvements in infrastructure and logistics should follow this.


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Chapter 4

Literature Review

MARKETING STRATEGY

Marketing Strategy is nothing but a combination of decision bearing on a various

aspect of marketing mix element. There are Product, Price, Place, Promotion, Process,

Packaging and Personal. HCL concentrate on all aspects, thats why HCL has very good

hold on Indian market. It understands the mindset of Indian customer very well because

of it is a India based company. Strategy only then success when it made to according to

customer need and preference.

So an overview of marketing strategies, which HCL uses to continue its way

behind success, is discussed here.

1. For product planning:

[a] HCL take decision their existing product along with future products. This is the

continuous process, which is done by top management of HCL.

[b] Then they research the product by research department. Research & Development

Department.

[c] New product launching and product renovations is an activity which takes place

continuously here.

2. Management Information System

In this step they collect the details about competitors product. They saw the

pricing, features, quality, Advertisement, Packaging, and Promotion of those particular

products. It is necessary to have a good Information system to understand the consumer

mind batter.


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Market Segmentation

We know that market segmentation means dividing market into distinct group of

buyers with deferent needs characteristic is or behavior. Who might require separate

product or marketing mixes?

It refers to large heterogeneous market in to with smaller homogeneous parts in

order to select any one out than in which the company thinks it can satisfy customer more

effectively different product for different segmentation. There are different classes people

are living HCL, like....

1. Lower middle class

2. Middle class family

3. Upper middle class family

4. Higher class family

5. For larger the target is fulfill by the help of advertisement and Promotional

Events.

Now HCL is targeting to those customers who use to see dream about it by

launching its new Computer at just Rs. 9999.


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PRICING POLICIES

Price refers to the value of product attributes. Expressed in monetary terms with a

customer plays or is accepted or affords utility. Value is referring to the quantitative

aspect product relative to other product. In HCL, pricing policies of work like as under

1. Management Information System First MIS show the price of competitors.

2. Parallel pricing policy

Bundle, marketing

Profit margin

They give to Channel Partner/demo center 6-8%, And company gets X% profit. HCLs

main objective is service rather then profit. No doubt there is profit but pricing policy just

to meet minimum margin for getting competitive advantage against assemblers market.

Company wants to maximize its profit than unit establishes higher policy its

organization wants to cover the large part of the market than obligation may establish

negligible profit policy. HCL believes in wealth maximization rather than profit

maximization.


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Sales Promotion

We know those sales promotion short-term incentives to encourage purchase or

sales of product and services. Sales promotion includes

Consumer Promotion

Trade Promotion

Sales Force Promotion

Sales promotion refers to all efforts made by the firm to promote the sales ofproducts. In HCL for sales promotion gave special offer

To end-users

To institution

To corporate houses

Total expenses HCL use to spend on promotional activities is just 3% of the sale.

Advertising Sales Promotion

(2% of sales) (1% of sales)

Press T.V. Radio out Door

30% 35% 10% 25%

Among all tools of promotion advertisement is given prime importance by HCL.

That can be seen from the above chart that more stress put on the Television Press and

Outdoor media of advertisement.


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Made-in-India strategy works for HCL

Even as everyone was all set to bury Indian PC brands, HCL Insys came out with a stellarperformance last year that proved that Indian brands still had the ability to win on home

turf. Theres a lot that other Indian players could learn from HCL Insys strategy in PCs

and other segments. Gaurav Patra explains what this IT major got right, and analyses

future prospects in the light of shifting trends in the business

Just when the whole PC industry was in the throes of a recession and analysts were

screaming negative growth rates, HCL Infosystems surprised quite a few when it

registered a 27 percent growth rate over the last year. The company gained the No 1 PC

desktop vendor ranking for the year 2001, with a market share of 8.6 percent. In fact,

today it is one of the few Indian brands that continue to hold their own against the MNC

brigadeZeniths the only other name that comes to mind. From a company that used to

sell boxes, HCL Insys has now emerged as a leading systems integrator, selling solutions,

while also offering IT services and consulting services.

The HP-Compaq merger could turn out to be an advantage for HCL because one-plus-

one never equals two in this business

It is interesting to trace the transformation of a company that was earlier identified by the

hardware tag to an end-to-end solutions provider, with interests across domains such

as software, networking and consulting. A look at the strategy followed by HCL Insys

throws interesting pointers for the rest of the industry. The number one tag on the PC

front (with the HP-Compaq deal, HCL goes back to No 2 now) has come as a result of

clever marketing strategies, and aggressive expansions. HCL has always been very strong

on the government front. But when things started going bad on other frontsfor instance,

when the metros were showing stagnation rates, HCL Insys went ahead and expanded

aggressively in B&C class cities to boost volumes. In addition, the company initiated

schemes like consumer finance to lure the reluctant PC buyer.


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Different strategies for different segments

But the strategy to gain market share in difficult times and reap benefits when the

industry recovers has come at a cost. For instance, industry analysts say that HCL has

given massive discounts in the products business to gain market share. Evidence lies in

the fourth quarter (AMJ 2002) performance of the company, where though the products

and related services business contributed 95 percent of sales at Rs 382.94 crore, profits

before interest and tax stood at just Rs 7.24 crore56 percent of total profits before

interest and tax (PBIT). The profit before interest and tax margins were dismal at 1.9

percent as compared to 4.4 percent during the quarter ended March 2002.

In addition to the PC segment, the company also took several innovative initiatives inother sectors to boost revenues. Take for instance the strategy of the company in the

notebooks segment. The move to enter newer segments like education and consulting in

the notebooks business has yielded great results. Proof of success lies in the fact that

HCL Insys has already bagged big orders from the Indian School of Business and

PricewaterhouseCoopers. The second part of the notebooks strategy has been to

aggressively woo the SME segment with newer, cost-effective models.

The telecom business has also recorded impressive growth. For instance, the company

bagged telecom equipment orders from IIT Kanpur for 5,000 lines of MD Ericsson

EPBAX and 500 lines of an ADSL solution. Looking at the robust growth from this

segment, the company has set up the India remote support centre for providing support

services to all HCL Infosystems customers.

And while there have been doubts on the long term viability of the retail ISP business,

HCL Infinet, the fully-owned subsidiary of HCL Infosystems, is betting big on its

technical expertise to boost revenues. Positive indications can be seen in the fact that the

subsidiary has acquired 30 new corporate clients for VPN implementation.

These new clients come from different verticals such as manufacturing, finance and the

FMCG industry. Company officials are also betting on the VoIP segment, which has

recently been opened up to ISPs for Net telephony, but there is still doubt on whether this

sector will generate enough volumes for any ISP, leave alone HCL Infinet.


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To take advantage of the boom in the call centre business, the company has also started a

unit that it terms as call centre consulting. Under this initiative, the company will help

prospective clients wanting to enter the call centre business with its knowledge base of

hardware and systems integration, and experience in call centre operations itself.


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Software services

Though the majority of HCL Insys revenues continue to come from hardware sales and

related services, the relatively small software services portion could be a surprise packet

for the future. For instance, though the software services part contributed just 5 percent ofsales, margins have zoomed from 6.5 percent in the quarter ended March 2002, to 29.4

percent in the quarter ended June 2002. The company has a good de-risking model

through this segment, and has spread its business over different geographies. Going

forward, the company expects 40 percent of revenues coming from the domestic and

export services, about 30 percent from products and system integration and about 30

percent from software exports.

Other strategies

In line with offering competitive pricing keeping in mind the price-sensitive nature of the

Indian market, HCL Insys has made significant investments in the Professional Services

Organisation (PSO), the Support Services Organisation (SSO) and in its manufacturing

plants at Noida and Pondicherry. The build-up of the services business (both PSO and

SSO) enables HCL Insys to offer complete solutions as well as raise manufacturing

volumes in line with international standards. The increasing focus on integrated

enterprise solutions has also strengthened HCL Infosystems SSOs capabilities in

supporting installation types ranging from single to large, multi-location orders. The

SSO, which comprises of a direct support force of over 800 members, is operational at

150 locations across the country and is the largest such force in the IT business.

One more important arm in HCL Insys strategy has been the Frontline division that

markets national and international brands of computer systems (including Toshiba

notebooks) and peripherals within the country. With its extensive network of 800

resellers across 300 cities, the division actively promotes the penetration of PCs in thehome and the small office/home office (SOHO) segments.


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HCL drives 'PC IN EVERY HOME' dream with EzeeBee Pride

For those who have been putting off their decision to buy a computer for affordability

reasons, here's some great news. Keeping its commitment to truly bring IT to the masses,

HCL Infosystems, India's premier information enabling and integration company, has

broken the price barrier yet again, making branded PCs more affordable than ever before.

The company has announced the launch of a new PC EzeeBee Pride that will be available

at a very affordable price of Rs.12,990.

Positioned as 'value for money' range, EzeeBee is the result of the company's intense

efforts, led by the vision of Chairman & CEO Ajai Chowdhry, to make PC an affordable

entity for the masses. With a distribution focus on smaller towns as well as the Home and

SOHO users, this path breaking PC will be sold in all the HCL outlets across the country.

The product comes with the quality and support of HCL, the only Indian IT hardware

company with a turnover in excess of USD 1.38 billion.

To ensure that high quality is maintained even at a low cost, the EzeeBee Pride PC is

designed for high performance. Built to boost productivity and improve response time

EzeeBee Pride PC is powered by the 1Ghz processor. The multimedia and Internet

capable PC comes with the standard one-year warranty has a 30GB hard-disk, 128 MB

RAM, 15" color monitor, CD ROM Drive and is backed by the countrywide support

network. The PC will be ideal for home users and SOHO segments, offering all the

functionalities sought by this segment.

"It is my ultimate dream to see a computer in every Indian home. With EzeeBee, we hope

to empower more and more individuals with the power of computing. We believe that thetrue potential of IT can be achieved only through mass IT penetration. In a country like

ours, price is a huge deciding factor and one of the major barriers to achieving it." said

Mr. Ajai Chowdhry, Chairman and CEO, HCL Infosystems Ltd. "We have taken the lead

in finding innovative ways to bring the price down by introducing new technologies and


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products that we believe will not only best suit the requirements of the home and SOHO

segment, but also go easy on their pockets,".

The EzeeBee range has been designed and configured for use by value conscience first

time users who want to enhance their IT skills. It can be used by students for educational

purposes, by the entire family from learning to digital entertainment to work at home. It

can even be utilized for increasing efficiency in a small to medium business. Flaunting

the trademark good looks of the range, the PCs also come with optional bundles like the

inkjet printer, UPS, speakers and web cams at an additional cost.

The range is manufactured and tested under ISO 9001 and ISO14001 certified processes.

In January'04, HCL Infosystems had launched Ezeebee at sub 15k price point HCL

Infosystems is country's numero uno PC maker and seller.


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HCL Infosystems and Union Bank partner to make PCs more

affordable. Lowest ever EMI in India: Rs.499 for HCL Ezeebee

In a country where only 11 out of 1,000 people own a computer, one of the key

influencers is affordability. HCL Infosystems, India's premier information enabling

company, and the Union Bank of India recently entered into a partnership that will make

it extremely easy to fit a personal computer into the monthly family budget. A HCL

Ezeebee PC will now be available at an EMI of only Rs 499 per month. This offer is

available on an Ezeebee with Pentium 4 and Intel's Hyper Threading Technology.

Speaking on the occasion, Mr Ajai Chowdhry, Chairman & CEO, HCL Infosystems,

said, "It is our ultimate dream to see a computer in every Indian home. I am confident the

offer introduced today will go a long way in making this endeavour successful. If it is the

cost of acquisition of a personal computer that stops an Indian from owning a computer,

then HCL has taken the responsibility of providing the best financial deal possible,

thereby empowering more and more consumers with the power of computing".

This premium branded PC at Rs 499 per month is targeted at making the PC an

affordable commodity in Indian homes. A quality PC backed by an impressive customer

support available across the country is another step from HCL Infosystems in increasing

PC penetration in the country. A wide reaching multi-media campaign is being released

to inform about this new initiative.

The interest rate on this scheme has been kept to the lowest possible rate that compares to

that of typical consumer goods. This scheme has a host of other models with different

configurations available, thereby giving consumers a wide option to choose from.

Recent research has indicated that PC ownership can help a family in many ways. Prime

reason being the child's education, thus giving the child a diverse learning experience


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irrespective of city .HCL Ezeebee can be used by all members of the family, from

learning to digital entertainment to Internet to work at home.

HCL Infosystems recently broke the Rs 15,000 price barrier by introducing the Ezeebee.

HCL Ezeebee has been created specifically to cater to the needs of first time Home PC

buyer. With cutting edge technology and ease of use features, this brand has found wide

acceptance with the consumers across the country.


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HCL partners with Microsoft & Intel to revolutionize digital

entertainment in India

Imagine the ultimate device that caters to all your entertainment needs. Visualize a TV,

DVD, MP3 player, radio, gaming tool, web browser, video recorder all rolled into one.

Envisage having the world of home entertainment at your fingertips. Fantasy? Not if you

experience the revolution that is Beanstalk Neo.

The Beanstalk Neo, launched today by HCL Infosystems, India's premier information

enabling and integration company, promises to change the world of home entertainment

for the Indian user. The Beanstalk Neo has been specially developed by HCL

Infosystems, utilizing the latest Microsoft Windows XP Media Center Operating Systemand Intel's Hyper Threading technology. This latest product from the HCL stable is

available across the country through the company's channel network.

The Beanstalk Neo is a true convergence product with an unbeatable blend of futuristic

style and pioneering technology. The first thing that sets it apart are the stunning good

looks, enhanced by a sleek finish and a 17 inch flat LCD display system for that superb

cinematic experience. An integrated digital entertainment system which includes a LCD

TV, DVD player, MP3 / CD player with a surround sound system, live radio and

television, wireless and broadband ready, the Neo comes with the convenience of remote

control so that you are not required to learn any controls or interfaces. The HCL

Beanstalk Neo is available at Rs 99,990/-, and comes with a one-year comprehensive on-

site warranty.

Announcing the launch of the Beanstalk Neo, Mr Ajai Chowdhry, Chairman & CEO,

HCL Infosystems Ltd., said, "The Beanstalk Neo, without any exaggeration, will

completely transform digital entertainment for the Indian user. The Beanstalk range, ever

since its advent in 1995, has always brought the best of breed technology to the Indian

consumer and kept him in-step with the latest innovations worldwide. We see a trend

today where the user wants a multi-functional product combined with ease of use.


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The Neo has been designed keeping the requirement of today's demanding consumer in

mind. Concisely put, the Neo is not just a new PC, it is a revolution."

Commenting on the announcement, Mr Rajiv Kaul, Managing Director, Microsoft

Corporation Pvt. Ltd, said, "The proliferation of various technology products and

services, has complicated the life of the consumer - and they are demanding simplicity,

ease of use and holistic offerings that just work. The Windows XP Media Center Edition

2004 is a great example of integrating software, hardware and services to create simple

and compelling entertainment experiences that enhance the lives of our users,

everydayBuilt from the ground up to deliver the picture and sound quality you expect

from a digital entertainment center, the Beanstalk Neo lets you use one unified interface

h shows at your convenience

- at your convenience

The HCL Beanstalk Media Center PC comes with a 17 inch integrated high-resolution,

anti-glare flat LCD monitor, with 1280 x 768 support - 16:9 aspect ratio. Among the

features that make it the ideal, easy to use entertainment powerhouse are a wireless

keyboard and mouse, built-in TV tuner, DVD and CD player/recorder, MP3 capability,

an FM radio, gaming tools, a photo editor and a web browser. The Beanstalk Neo can

also create, edit, store and screen digital home movies and photos.

The Beanstalk Neois equipped with an Intel Pentium IV 2.8 GHz with Hyper-

Threading technology, 800 MHz FSB and Windows XP Media Center Edition 2004

operating software, the most advanced OS for PCs in the Home segment.

In addition to its multi-media features, this innovative Beanstalk PC offers the 'dream

pack' with 5 Microsoft games; Microsoft works 7, as well as 100 songs, 5 movies and 10

karaoke.


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A STRATEGIC ALLIANCE WITH BULL TO LAUNCH A NEW

RANGE OF SCALABLE ENTERPRISE CLASS SERVERS ON

OPENARCHITECTURE

HCL, India's premier information enabling company, today announced a strategic

alliance with Bull, a leading Europe based company, to launch HCL scalable Enterprise

Class Servers on Open Architecture. The new HCL servers will provide customers the

proven capability and mainframe-class reliability of the traditional proprietary RISC

platforms on Open Architecture at a much lower total cost of ownership.

"The biggest challenge at the core of the enterprise has always been to gain the

performance, headroom and reliability of high-end 64-bit computing, without the high

cost and complexity of proprietary RISC architecture." said George Paul, Executive Vice

President - Marketing at HCL "This partnership will allow us to offer our customer a

complete range of solutions for the Core of the Enterprise on Open Architecture and help

them move beyond proprietary RISC platforms."

Today enterprises are looking to break free from the barriers of proprietary RISC

platforms and now with more than 5000 validated applications available on Itanium

both on windows and linux, enterprises finally have enlarged options.

The partnership will enable HCL to address high-end requirements of its customers for

the core of the enterprise, in areas such as large-scale databases, ERP applications, Data

centres, High Performance Computing requirements of Scientific and Research Segment

etc. It will enable Bull to expand the geographical market reach of its technologies,

establishing its presence through HCL's extensive network of over 170 offices and 300

service centres spread across the country.


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The new range is based on Bull's NovaScale servers, powered by Intel Itanium 2

processors and Bull's FAME (Flexible Architecture for Multiple Environments)

technology. Using market-standard building blocks, the FAME architecture represents a

technological breakthrough for high-end, mission-critical servers, delivering significant

improvements in price/performance.

This launch further strengthens HCL's Infiniti Global Line Servers, which has fast

emerged as a preferred brand amongst a cross-section of markets in India including

Manufacturing, Telecom, Finance and Banking, the Government, Defence Forces and

Internet Service Providers.

Notably, HCL has shown phenomenal growth in server segment by registering a market

share of 19.6% for calendar year 2005. This launch is yet another demonstration of the

company's strong focus on the Server Business and its commitment towards the Indian

Customers by providing the right technology, at the right time, and at the right price

point.

While in Delhi and commenting on the announcement, Michel Lepert, Executive Vice

President and General Manager of the Products and Systems Division at Bull, said: "India

is a high-growth market with a strong interest in new technologies such as the ones built

into our NovaScale servers. We are totally committed to supporting HCL, and given the

work that we have already done together to move the partnership forward we are

confident that HCL customers will immediately benefit from very competitive high-end

solutions".

Mr Surendra Arora, Director - Customer Solutions Group, South Asia, Intel said - 'Intel

has worked with the industry over the last six years to develop a rich eco-system of

highly scalable and open standard solutions. We have a large number of OEM's,

operating systems and 5000 applications running Intel Itanium processor family-

based platforms. We are now very pleased to collaborate with HCL Infosystems and Bull,

a member of the Itanium(r) Solutions Alliance, to enable the Indian IT customers with


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mission critical computing needs to benefit from the outstanding performance, reliability,

scalability and availability delivered by Itanium(r)-based systems.'

To share the benefits enterprises can derive from this union, HCL, Intel & Bull, have

jointly organised exclusive seminars in Delhi, Bangalore & Mumbai for CIOs this week.

Bull NovaScale servers have gained IT market recognition and won large customers,

both end-user IT organizations and OEMs. They are used notably as data base servers

and application servers as well as in HPC (High Performance Computing) applications. A

prime example: NovaScale servers are the foundation of the largest scientific computer

ever delivered in Europe, which is currently under installation and will be operational by

the end of 2005.


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Customer gains

Why would a company opt for RIM, rather than total IMS or even just manage its

infrastructure in-house?

The most obvious reason is the cost advantage, of course. Industry estimates place the

benefits due to cost arbitrage at between 30 and 50 per cent. Nasscom's Mehta draws a

comparison: "For EDS and global giants, it used to be more a game of credit rating

arbitrage. Since EDS had high penetration into many of its customers, it was profitable

for it to take over the IT assets of clients. Now, with RIM players in this space, the credit

rating of traditional outsourcers has completely deteriorated. They are no longer

competitive in this space."

Further, according to Forrester, IT budgets have seen no more than 1-2 per cent increase

in the past few years. Thus, CIOs look upon outsourcing as one of the way of stretching

the budget. IT infrastructure is one of the areas where they haven't been able to derive

much benefit and RIM provides them that scope.

Says Priti Rao, vice president and head, Pune Development Center, Infosys

Technologies, "Transparency is a big advantage. The services are easily measurable and

transparent to the customer. There is no question of charging less or more. They see what

they get and, thus, they know what we charge."

The SLAs can now be dramatically improved - because the client is now aware of all the

processes and methodologies, and has the tools to monitor fucntions to drive better SLAs.

Integrated monitoring and management tools and advanced correlation tools RIM offer

can help anticipate a problem before the user brings it up, and resolve the problems in a

faster, structured manner, reducing business losses due to IT downtime.

Unlike in in-house management where employees work only on single shift, RIM

vendors monitor infrastructure performance 24x7x365. This helps do away with the costsa delay inevitably brings, since the vendors work across different time zones and can fix

problems before the next working day begins.

It also offer customers multiple avenues to reduce costs through headcount reduction by

elimination of under-utilised resources, leveraging operations improvements from

working with multiple customers and cross-pollination of best practices.


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Often processes are not well defined when operations are managed in-house. By

outsourcing infrastructure management, clients can make sure that the vendor complies

with the standard processes followed by the industry. For instance, ITIL (IT

Infrastructure Library) and IS07799 for security.

Says Nayyar, "the whole approach towards savings is quite interactive. In the software

industry, the arbitrage cost-savings doesn't impact the rest of the industry, Here, it affects

everythingthe network bandwidth, the data centre costs, all costs."


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COMPETITORS

HP is a company unlike any other. We serve everyone from consumers to small and mid-sized businesses to enterprises to public sector customers with an extensive portfolio of

market-leading solutions specifically designed to meet the needs of each customersegment.

Our annual R&D investment of $3.5 billion (USD) fuels the invention of products,solutions and new technologies. We produce an average of 11 patents a day worldwide.HP Labs provides a central research function for the company which is focused oninventing new technologies to improve our customers' lives, change markets and createbusiness opportunities.

Millions of people around the world use HP technology every day. HP is:

the largest consumer IT company the world's largest SMB IT company a leading enterprise IT company

Our strategy is to offer products, services and solutions that are high tech, low cost anddeliver the best customer experience. Our team of 151,000 employees does business inmore than 170 countries. Revenue reached $86.7 billion for the fiscal year that endedOctober 31, 2005.

HP has a significant presence in all market we serve

Consumerleadership in handhelds, notebooks, printers and digital cameras forrewarding experiences

Small and medium business market-leading products, solutions and servicesfor simplified ownership

Enterprise a full portfolio of leading products and services for building anAdaptive Enterprise

Public sector, health & educationexperience and alliances for lower costs andincreased efficiencies.

Doing well by doing good

HP is proud of our people, our standards and values, and our deep commitment to globalcitizenship. Since our first year in business in 1939, HP has given back to communitiesthrough philanthropic donations of money, equipment and time.


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Today, we employ new models of engagement and new business and technologysolutions to help more people around the globe to participate in the world economy viainformation technology.

Stanford University classmates Bill Hewlett and Dave Packard founded HP in 1939. The

company's first product, built in a Palo Alto garage, was an audio oscillatoranelectronic test instrument used by sound engineers. One of HP's first customers was WaltDisney Studios, which purchased eight oscillators to develop and test an innovativesound system for the movieFantasia.


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Advert is ing then and now

Pioneering and Passionate: HCLs Tradition of Reaching Everyone in the

Marketplace

HCL's new accessibility ad campaign focuses on what people can do, not what they cant.In one ad, a Deaf man hears the demands of his employees. In another, a blind womansees changes in the marketplace.

These ads continue HCLs legacy of award-winning advertising, which representseveryone in the marketplace whether Curtis Mayfield, a stroke victim using voice-recognition technology (1997); Joyce Massingill, a Black aerospace engineer (1969); orCarl Berman and Mitch Goldstone, a gay couple who own a photo shop (1998).

Passionate about diversity

Today, representing the diversity of the marketplace is a strategic mission. "We'repassionate and almost maniacal in this regard," says Lisa Baird, vice president,Worldwide Integrated Marketing Communications.

To increase its business, HCL is focusing on newer segments, such as medium businessesand constituency groups. How do you get the attention of constituency groups? You startby representing them in your advertising.

"When people can see themselves in our advertising," Lisa adds, "they can connect withus." Casting ads and conveying messages must hit the right note, however, to beeffective. To ensure positive portrayal of constituency groups, HCL recently developed

casting guidelines for its ad agencies worldwide.

HCL also sponsors key community events, such as La Familia Technology Week duringHispanic Heritage Month, Black Family Technology Awareness Week during AfricanAmerican History Month, and advertising in Gay, Lesbian, Bisexual and Transgender(GLBT) journals during Gay Pride Month.

"Advertising drives people to learn more," Lisa says. "For us, that means creating interestin our solutions, products and leadership message."
http://www-306.ibm.com/employment/us/diverse/50/downloads/Curtis_Mayfield_CROPPED.pdfhttp://www-306.ibm.com/employment/us/diverse/50/images/Ebony1.jpghttp://www-306.ibm.com/employment/us/diverse/50/downloads/Mom&Pop98_CROPPED.pdfhttp://www-306.ibm.com/employment/us/diverse/50/downloads/Mom&Pop98_CROPPED.pdfhttp://www-306.ibm.com/employment/us/diverse/50/images/Ebony1.jpghttp://www-306.ibm.com/employment/us/diverse/50/downloads/Curtis_Mayfield_CROPPED.pdf


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Recognizing subtle differences

When it comes to marketing to constituency-owned businesses such as women, Asian,Black, Hispanic and Native American businesses, HCL applies the same go-to-marketstrategies as it does for any businessreaching out through business partners,

employing a 1-800 number orHCL.com.

Within a specific constituency market, HCL first identifies which businesses make themost sense to connect with. Then, the HCL determines the most efficient way to reacheach of them whether through individualized marketing or a creative combination ofHCL's go-to-market strategies.

HCL business partners then help in generating demand and selling HCL solutions tobusinesses. For example, Esource Systems and Integration, Inc., an HCL-authorizedbusiness partner based in Huntersville, North Carolina, sells HCL solutions whichcontain HCL software and hardware products. This business partner provides technology

solutions for government agencies and commercial customers to solve business problems.

HCL also enters the business community through professional associations andorganizations. Such groups generate interest in HCL and may even help HCL identifynew business partners. By sponsoring and participating with them, HCL is able tocommunicate its message of value to the member businesses.

"We're saying, in effect, to our constituency customers, 'We know you're out there andwe want to work with you to make your businesses more profitable and productive,'" saysRai Cockfield, vice president, Market Development. His group is responsible formarketing to businesses owned by women, Asians, Blacks, Hispanics and Native

Americans.

While focusing on small- and medium-sized businesses, marketing to constituencies is allabout building relationships. By working with business partners and owners, HCLdemonstrates it speaks a community's language and recognizes its culture. HCL thencloses the equation by helping businesses understand how they can reach their potential.

Finding out each segment's needs requires a willingness to break with old assumptionsand "go places where you don't usually go." While acknowledging that everyone in asegment is not the same, it's necessary to recognize "subtle differences" that exist

between constituencies such as one being more "relationship-oriented" or "techno-savvy."

Even so, Rai maintains all people prior to a purchase ask, "Does this product or servicemeet my need? Is the company reputable? And is the price reasonable?" Today, he adds amore pressing question, "Are you reaching me in the way that I see myself?'

"That's what endears a person to a company and a product," he says.
http://www.ibm.com/http://www.ibm.com/


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Opening the aperture

Imagine the ability to access information anywhere computing without limits. That'swhat HCL researchers call "pervasive computing and accessibility." They also haveredefined accessibility to mean access to information for everyone," says Jani Byrne,formerly the worldwide business director, Accessibility, HCL Research.

HCL researchers are taking that notion of accessibility a step further: Imagine the abilityto access information anywhere computing without limits. That's what HCLresearchers call "pervasive computing and accessibility."

In a world of computing without a limits, a blind person could go to the refrigerator to

cook food. Radio-frequency tags could instruct people how to prepare that meal, step-by-step. A teenager could learn to cook this way, or get help with homework.

The mission of HCL's six Worldwide Accessibility Centers, launched in 2000, is toensure all of HCL's 3,000 plus products are accessible, and to bring the notion of accessto everyone irrespective of ability or disability to businesses around the world.

While first focused on special needs, the Centers boldly decided to "open the aperture,"Jani says, to bring information technology to the masses, especially individuals withtemporary disabilities, the aging community, as well as people with traditional forms ofdisability, such as hearing, vision, cognitive, mobility, and speech.

The Centers now target businesses and government agencies with this broader, moreinclusive definition of accessibility. Developing technologies accessible by everyone whether disabled or temporarily abled solves many accessibility issues across theboard. For example, researchers realized that the general public always enjoys inventionsdesigned for people with disabilities such as close-captioned TV, sidewalk curb cutsand wide doorways.

"If you've tried to hear sports scores on a TV in a noisy restaurant, you've experienced thebenefits of closed captioning," says Jani.

Another target is the aging global population. In the United State alone, the fastestgrowing segment of our society is people over 85. Furthermore, throughout our life span,each one of us will experience some form of disability...whether it's working withdyslexia during early educational years or facing cognitive impairment as we grow older.
http://www.ibm.com/ablehttp://www.ibm.com/able


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Thanks to federal legislation, HCL is well-positioned: Producers of informationtechnology who make products accessible will be favored for bids with the governmenta longtime HCL customerover those who do not. Even if a competitor offers alower bid, the government must contract the producer of accessible products.

"This significant marketing strategy is central to HCL's leadership in the marketplace,explains Jani. "Brand HCL is in the game and with the power of HCL Research, we're ina leadership position."

HCL is sharing its vision of an accessible future through a robust public relationsstrategy, ads and events which have already touched 31 million people. A multimediaexperience depicting this future was launched at California University at Northridge(CSUN) last year and so well-received that the Governor's Office asked that it be featuredat a post-Oscar event.

"At HCL, we proudly believe in the technology leadership of our company, as evidenced

by our unsurpassed patent activity for the past 10 years, says Jani. "Now we're levelingthe playing field to make information accessible to everyone."


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Corporate Securi ty Mission Strategy

Security is a hot topic. It grabs the headlines. Lots of market research has been done and

there are many views of the information security market, yet by any measure the market

is poised for substantial growth. The information security opportunity is projected by

IDC to grow from $4.5b in 1996 to $13.5b in 2000, with a 31% CAGR.

Security is the enabler to e-business. HCL, along with its business partners hassecurity solutions to help companies conduct business securely. HCL is seriousabout security and has a strategy to create a mindshare that HCL means I/Tsecurity. HCL has decades of experience designing and implementing securitysystems around the world. Our customers want their business systems to besecure. They want products and services based on open standards. They want aneffective security management system and they want access to experienced

professionals for advice and assistance in implementing security products andservices.

Currently, no company can claim the depth and breadth of security offerings thatHCL can, making security one of the biggest differentiators for the HCL brand.Many of these focus areas, because they are "for the greater good" of HCL andnot justifiable from within one division's budget alone, suffered significant budgetcuts in 1997-1998. This adversely impacted our ability to capture mind andmarket share as competitors have strengthened their positions by filling out theirown security value nets through partnerships, mergers and acquisitions. TheSecureWay brand pulls the many aspects of security within the HCL company

together. Current work underway to define security suites will further enable us tocompete in this space.

HCL offers the industry's most extensive and comprehensive portfolio of securityproducts, solutions and services under the umbrella of the SecureWay brand. Theofferings come from all the divisions within HCL. The SecureWay brand iscurrently the security rallying point for go-to-market execution with workunderway to redefine the brand and create a series of security suites.

End to end security covers access from the end users desktop to backend systems.To get there you often go through other networks, the Internet, servers etc. A

security breakage can occur at any point. Security is only as strong as yourweakest link, that is why we believe it is important to address all aspects ofcomputer security and why HCL is well positioned to be a leader in this area.Because security is so comprehensive and our customers are not security expertswe must offer solutions that are understandable, usable and useful .. or they won'tuse them. Our customers expect HCL to provide leadership technologies to helpmake them leaders in their field.


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Security drives significant revenue and profit for HCL throughout the strategichorizon. Revenue is generated through uniquely identifiable security offerings(direct) and through products whose sale is contingent on other HCL securityofferings (indirect).

Our strategy provides for this by grouping our offerings by I/T SecurityConsulting/Services, Technologies and Products and Solutions.

Consulting and Services : Our worldwide I/T security consulting practice helpscustomers determine exactly what their security risks are...and then designs asecurity program to cover them using proven methodology that incorporates bothbusiness and technology requirements.

HCL Security Services has the experience and expertise that can dramaticallyreduce risk and exposure in today's interconnected world. There was a recentannouncement in March that provides a series of security services under e-

business.

Technologies: Technology is key to making e-business real. Many newtechnologies have been invented to secure e-business and make it safe. Ourresearch labs develop technology that has been awarded the most U.S. patents ofany company for five years running with a worldwide portfolio of more than30,000 patents, 100 of those are in security.

Products: Award winning research is only part of the puzzle, however. It isequally important to turn the best of this technology into products and solutions tohelp our customers compete more effectively in a fast-changing world. HCL has

set the pace in this regard, offering the broadest range of security solutionsavailable from any vendor in the industry with continuous focus on simplifyingthese solutions for our customers use. Unlike many other systems where securityis an "add on", security is integrated into the heart of HCL's hardware andsoftware products. Our software features specialized capabilities designed rightinto our operating systems, and network and database management programs.Other tools include: Global Sign On, LDAP Directory, SmartCards, Firewall,Virtual Private Network technology all part of eNetwork, built-in security featuresin Lotus Notes and Tivoli management tools making security easy to administer.

Solutions: Our security strategy is built on a strong foundation. It begins withsecurity imbedded into our operating systems, hardware, software servers,middleware and clients, so system security can't be circumvented. It continues tothe next layer of network security addressing administration, delivery and accessof information across networked environments. And thirdly our strategyencompasses commerce applications or transactions involving secure credit cardtransactions, integrating with "middleware" applications and third party software.All three of these layers need to deal with the issues of authentication, dataintegrity, access control and non-repudiation offering our customer secure


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solutions. The list is long and impressive. When coupled with HCL I/T securityconsulting and the range of services provided as part of our SecureWay brandofferings, these tools provide the foundation for securing our customersinformation systems and networks.

Enabling I/T security requires adherence to international standards - - standardsreached not just through government imposition, but through global agreement.HCL fully supports the delivery of open standards. We all want to operate in aworld in which everybody's software runs on everybody's hardware overeverybody's network. Our strategy addresses working with governments aroundthe world to support an unrestricted marketplace for security and encryptionproducts that integrate globally.

We provide security technology and contribute intellectual expertise to manystandards groups such as Open Group, W3C, ISO and many other national andregional standards bodies around the world. Our strategy is to lead in driving

secure Internet-based computing by adopting, developing and promotingstandards such as a PKIX reference implementation of the Internet EngineeringTask Force (IETF) Public-Key Infrastructure (PKIX) which will promote astandard way to secure any and all applications with digital certificates. We leadthe creation of the Key Recovery Alliance whose goal is to expedite the use ofstrong encryption. And have contributed to many standards such as SET, IPSEC,Open Card, and Gold Standard to mention a few.

To manage the corporate security within HCL, a security management system hasbeen put in place. It is a two-pronged approach that combines the customer-driveninsights of top division level managers who view security as an important

differentiator which will drive more revenue and profit for their offerings with thecross-HCL focus of senior corporate level managers who plan HCL's future. Onone side is the Security Management Team (SMT) acts as an Investment ReviewBoard for security, made up of the top executives from our platform, software andservices divisions. This group meets quarterly to steer our tactical and strategicsecurity investments as a corporation in order to focus our investments andoptimize the security portfolio. On the other side is the CEC level SecurityCouncil which meets 3-5 weeks after the SMT meets to review its'recommendations and provide high level guidance.

In 1998-1999, the SMT's charter is to maximize the HCL value proposition as itrelates to security in order to capture our rightful share of the multi-billion dollaropportunity identified for security (approaching $13.5B by the year 2000), and toensure that security remains a key differentiator for e-business. The SMT hascommitted to a contract with the HCL corporation that in return for investmentdollars, specific quantifiable results will be realized. It will drive HCL's strategicinterests irrespective of local measurement issues, ensure coherent investmentsacross HCL, and promote HCL-wide interests in partnerships, standards, andpolicy.


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Chapter 5

RESEARCH METHODOLOGY

The main objective of this project is to study the existing system of Consumer behavior

and sale promotion in HCL of its concepts and implementation, and in the process to

consider any possible changes or improvements in the system.

The objective is also to find out the reactions of both the assessors and assesses of

Consumer behavior and sale promotion as to their satisfaction or otherwise of the existing

system and their reaction to any changes in their performance appraisal system,

especially about the latest method i.e. 3600 Appraisal method. Moreover, instead of

yearly appraisal they would like their Appraisal to be done more frequently as to twice in

a year.

The research involved data collection techniques:

Primary Sources

Secondary sources

PRIMARY SOURCES:

Primary data is the data which is collected for the first time. It is collected from the

source of origin. For primary data collection questionnaire was framed considering

certain factors like manpower planning, recruitment sources, selection methods etc. the

objectives of the study was also kept in mind. A copy of the questionnaire is also attached

in the Annexure.

Questionnaire method is being followed and was preferred over interview methodbecause:

It is more economical

This method can cover wider areas

This method is original and therefore very reliable.

Respondents feel more comfortable while answering the questions asked.


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SECONDARY SOURCES:

The secondary data are those high are already in existence and which have been

collected, for some other purpose than the answering of the questions in hand. The

secondary data collection involved desk study, which was carried out to obtainbackground information about the sample companies. The main sources of information

were company reports, pamphlets, and magazine and personnel department.

Research Design

A research design is thse arrangement of condition s for collection and analysis of

data in manner that aims to combined relevance to the research to the research

purpose with economy in procedure.

As such the design includes an outline of what researcher will do

from writing the hypothesis and its operational implication to the final analysis of data.

More explicitly, the design decisions happen to be in respect of:

What is the study about?

Why is the study being made?

Where will the study be carried out?

What type of data is required data be found?

Where can the required data are found?

What periods of time will the study includes?

What will be the sample design?

What techniques of data collection will be used?

How will the data be analyzed?

In what style will the report be prepared?


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COLLECTION OF DATA

It dealing with any real life problem it is often found that data at hand are inadequate and

hence, it becomes necessary to collect data that are appropriate. There are several ways of

collecting the appropriate data which differ considerably in context of money costs, time

and other resources at the disposal of the researcher.

Primary data:-

Primary data can be collected either through experiment or through survey. If the

researcher conducts an experiment, he observes some quantitative measurements, or the

data, with the help of which he examines the truth contained in his hypothesis, But in the

case of survey, data can be collected by any one or more of following ways.

(i) By observation:

(ii) Through personal interview:

(iii) Through telephone interview.

(iv) By questionnaires:(v) Through schedules:

(vi) Other method:

a) warranty card

b) mechanical devices

c) Projective techniques

d) Depth interview.

Secondary data:-

Secondary data means data that are already available i.e., they refer to the data which

have already been collected and analyzed by someone else. when the researcher utilizes

secondary data, then he has to look into various sources from where he can obtain them.


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Secondary data may either be published data or unpublished data. Usually published data

are available in (a) various publication of central, state are local governments, (b)

technical and trade journals (d) books, magazines, and newspaper. (e) Reports and

publications of various associations connected with business and industry, bank stock

exchange (g) Public record, and statistics, historical documents, and other sources of

published information like website of industry or company.


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Chapter 6

Data Analysis and Interpretation

There are many situations in every day life where the researcher is interested in

presenting certain characteristics of data without using complex mathematical

calculations. This type of presentation can be done by means of graphs and diagrams. A

common man generally dislikes numerical statements and have preferences and love for

beautiful pictures.

Under my Graphical presentation I have written finding in every question. So finding is

not given in other places.

I have made a questionnaire having 19 question and I have include various kinds of

people under my research. There were 200 sample size, due to lack of time.

Some of the people refuse to tick on t

marketing strategies adopted by hcl

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