The Hewlett-Packard Company, commonly known as HP, was an American multinational information technology company, which had its headquarters in Palo Alto, California. It was established in January 1939 by David Packard and Bill Hewlett. It provided a wide variety of hardware components, as well as software and related services.
In this blog, we shall be discussing the Marketing Mix of HP in detail. Covering all the 4Ps strategies. Let us begin by getting to know the company better first.
About HP
HP (Hewlett-Packard) is a multinational information technology (IT) company that sells hardware, software, and related business services.
HP product lines include PCs and other computing devices, enterprise and industry-standard servers, storage devices, networking products, software, printers, scanners, plotters, and other imaging products. The company introduced handheld calculators, the first commercially distributed data processing system, LaserJet printers, and (jointly with Intel) the Explicitly Parallel Instruction Computing (EPIC) architecture.
Hewlett-Packard or HP remained the leader in the Indian PC market throughout the year, garnering a 28.2% market share in the July-September quarter, as per International Data Corporation (IDC).
Marketing Mix of HP
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix – Price, Product, Promotion, and Place.
1. HP Product Strategy
Hewlett Packard provides outsourcing of business process, infrastructure technology, maintenance and support of technology, support and development of applications, networking resources and products, integration services and consulting services, soft wares, hardware, services, and products related to printing and imaging.
- Hewlett-Packard is known for its excellent printers and scanners as well as for its digital cameras, laptops, desktops, and other IT products. The products are known to be reliable and hence the brand has a good customer base.
- In the year 2007, Hewlett-Packard launched “TouchSmart PC” with a display of touch screen, and later it introduced a PC that was a consumer tablet with touch screen facilities. In the year 2008, Hewlett Packard brought into the market a mini-notebook called “HP 2133 Mini-Note PC”. This was designed especially for the education sector.
- The company also produces ‘ProLiant’ that is an affordable tower server for small size to medium-size workgroups.
- “Iraq Glisten Smartphones” is one of Hewlett Packard’s high profile products that have many features like the ability to send emails, texts, photos, and manage contact lists.
- “Linksys WRT54G2 Wireless-G router” is a home-networking product that enables internet connections with high speed.
- Service packages including AMC’s are available for interested customers by the company.
- The products include printers, digital cameras, scanners, and calculators.
2. HP Price Strategy
The pricing policy of Hewlett Packard is fair pricing as well as competitive pricing. The company takes into account all the relevant factors related to costing, distribution, promotion, prices of adversaries and then decides on a suitable selling price.
Hewlett Packard has been designing products that have features according to the tastes and desires of the consumers. It first undertakes thorough market research and estimates the amount that a consumer is willing to pay for the commodity. Then it makes that product in that price frame to suit its personal needs as well as the needs of the customers.
Hewlett Packard had launched an innovative utility pricing scheme called first-in-pay-per-use. In this scheme, the company offered the customers to pay for only the time they have utilized the services. However, over the long term, this pricing strategy was shelved due to the tough competition in the IT segment
3. HP Place Strategy
HP distribution strategy (place) is well-placed. It sells its products to individual customers and business enterprises, directly and indirectly.
It has an online distribution method where the orders are placed either on the official website or other shopping websites. The official website of Hewlett Packard offers services such as a partner locator that is sorted by small businesses and large businesses and the products needed.
The company has hired retailers and technology vendors for the supply of its products. Hewlett Packard has its exclusive outlets where it provides various products and services also. Trained and well-mannered individuals have been hired that deal with the customers directly and efficiently.
Hewlett Packard has many subsidiaries that are located in Geneva, Ontario, Singapore, Miami, Tokyo, Victoria, Houston, and Rivonia. Hewlett Packard operates a global program for the system integrators, developers, software vendors that is called the “Developer and Solution Partner Program” (DSPP). The company has a direct link with its partners that include suppliers, logistic service providers, and manufacturers so that the network continues to run smoothly.
4. HP Promotion Strategy
Hewlett Packard has launched an initiative “One Voice” to promote its brand name and image along with its various consumer electronics products and hardware products. The company has taken the help of vehicles to flaunt and display its numerous products and services that comprise the inclusion of a website, arranged by business application.
Employees are encouraged to engage in topics such as servers, networking, and storage. A “Trade- Program” is active where the consumer can make a trade of old product with the new product instead of discounts.
As promotional activities, some services within a period are provided free. Periodic discounts on many products are announced as part of the company’s strategy. Hewlett Packard has formed many tie-ups and sponsorship deals with various companies.
It has sponsored the shirts of “Premier League Club” and also sponsored the “BMW Williams Formula 1” team and later “RenaultF1”. It has also acquired the naming rights for the HP Pavilion at the place, San Jose.
Strengths of HP Company
- Brand Valuation
Hewlett Packard has fantastic brand equity and its brand valuation is a whopping 19.3 billion dollars, much ahead of many of the players in the consumer durable segment. HP ranks 50th amongst the top 100 brands around the world.
- Production excellence
HP ships two personal computers and two printers every second. This shows its dominance in this sector. They hold the second position in the world for shipping PC equipment. HP had a market share of nearly 20%. In the printer segment, they hold a market share of 40.5%.
- Marketing
A company does not reach this level of brand equity without a smart investment in marketing. Hewlett Packard is known to be a smart marketer and its ads are always colourful, showing the capabilities of its printer and giving off an elegance of its own.
Conclusion
Hewlett Packard is one of the largest consumer durable companies in the world. It offers various products to consumers as well as businesses. The company is known across the world for its printers, laptops, desktops, xerox machines, etc. It has the largest market share in the printers segment and is fighting hard for a major market share in the laptop and IT segment as well.
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What are the limitation and weakness of HP product and marketing?