Hewlett Packard Company
American Advertising Federation – Houston Student Conference
a e o Contents Executive Summary ituation Analysis Company Analysis Target Market Market Analysis Product Analysis Competitive Analysis Problems Proble ms and Opportunities Summary (SWOT) arget Market Profile arketing Objectives ampaign Budget ales Promotion Strategy Direct Marketing Strategy Evaluation onclusion
THE PERFECT FIT.
Group: Size 7 Advertising Whitney Frautschi Meagan Hefley Julia Parrott Meghan Due Chris Lewis Kenya Madyun Devin Gustafson Jill Whitfield Jamie Goodrich Brittany Rodriquez Katy Winans
THE PERFECT FIT.
Executive Summary Hewlett Packard adds a personal touch to your busy lifestyle, offering a wide variety of laptops in performance, mobility and style. Hand-in-hand HP facilitates to your daily activities. Don’t fall behind with lost data. HP has 50 times more disk utilization offering data de-duplication. Let HP protect your data, reduce backup, recover lost files and recovery costs. Whether it’s within your small business or your personal life, HP will always fit. After all, one size doesn’t fit all. So let HP find your perfect fit.
A Brief History Hewlett-Packard, or HP, has been in business since 1939. That is fifty years longer than Dell and forty years longer than Acer, the top two competitors in the field. Over the years, HP has made a name for themselves by creating affordable, reliable desktop computers and notebooks. The company currently holds the top position in printer sales. As far as computer sales are concerned, HP is number two behind Dell.
Purpose The purpose of this campaign is to attract a new target market—women who own small businesses. These women are between the ages of 40 and 59. They are also on a very tight budget. Many of them are divorced with two or more children. As a result, they are constantly on the go. Portability and flexibility are the two most important aspects of owning a personal computer, whether it is a notebook or a desktop computer.
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Company Analysis From Humble Beginnings…. “Hewlett-Packard had its beginnings with Stanford University graduates, William Hewlett and David Packard, who were encouraged by Professor Frederick Terman to start their own business. With only $538 and workspace in a garage behind Packard’s rented house in Palo Alto, California, the two men began working on a resistance-capacity audio oscillator, a machine used for testing sound equipment. After assembling several models--baking paint for the instrument panel in Packard’s oven--they won their first big order, for eight oscillators, from Walt Disney Studios, which used them to develop and test a new sound system for the animated film Fantasia.” Taken from http://www.answers.com/topic/hewlett-packard-company
... To Endless Possibility “While Hewlett-Packard may be known for product innovation, the company’s corporate development is a tale of reinvention. HP provides enterprise and consumer customers a full range of high-tech equipment, including personal computers, servers, storage devices, printers, and networking equipment. Its software portfolio includes operating systems, print management tools, and OpenView, a suite that encompasses application, business, network infrastructure, and product lifecycle management. HP, which already boasted an IT service organization that was among the world’s largest, acquired Electronic Data Systems (EDS) for about $13.9 billion in cash in 2008.” Taken from hoovers.com
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Target Market Our target market is women between the ages of 40 and 59 who own a small business. Women in Small Business Multiple organizations run by women (sectors) Professional Scientific Technical Services Healthcare Social Assistance
10.1 million businesses owned by women (half of all small business) these businesses generate $2 trillion annually
Ages: 40-49; 50-59 85.95% white 8.43% African American 8.33% Hispanic 5.25% Asian .18% Native Hawaiin
80% of business owners make $50 thousand or less per year. From 2002-2006, small businesses owned by women nearly doubled.
THE PERFECT FIT.
Market Analysis Industry description outlook September 24 , 2007—PCs in-use reached nearly 1B units worldwide at year-end 2006. The U.S. retains a large PC usage lead with over three times as many PCs as the second place Japan. The U.S. accounts for over 24% of all PCs in-use compared to 4.6% of worldwide population. PCs in-use growth is slowing, but the U.S. is on track to have more PCs in-use than people in five or six years. The rapid growth of mobile PCs is the major reason for current and future PC expansion. When mainframes, workstations and other computers are included, USA had 250M computers in-use while the worldwide count topped 1.03B units in 2006. PCs per capita in the U.S. topped 80% in 2006 and will reach 98% in 2012. 2006 will be the last year that PCs per capita will remain higher than cell phones. USA and Canada are the only countries that have more PCs in-use than cell phone subscribers. Worldwide PCs in-use surpassed 1B in early 2007. http://www.c-i-a.com/pr0907.htm
Specially designed for the woman on the go As a modern woman, you want the latest fashions and technology. HP delivers the ultimate technology fashion statement to help keep women looking and feeling beautiful while they’re in control of all the roles they play, from mom to CEO. The HP Mini 1000 Vivienne Tam Edition is also mobile and light to help fashionistas stay more connected and simplify their busy lives.
Competitive Advantage HP leaders have “an advantage that enables them to learn and adjust as few others can. The depth, breadth, and vitality that come alive daily through the firm’s values – the HP Way – are asset from which most of the Silicon Valley continues to learn. HP general managers regularly discuss and assess the vitality of the HP Way, a process, that inevitably results in corrective actions to ensure its continued viability.” http://www.1000ventures.com/business_guide/cs_inex_hp.html
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Product Analysis The two most popular HP products under two categories: notebooks and desktop PC’s. Notebooks
There are two types of notebook computers. One is the mini notebook computer, and the other is a versatile performance notebook. The mini notebook computer is available in two sizes—an 8.9-inch or 10.2-inch diagonal high-definition widescreen. It is the perfect companion for those who are constantly on-the-go. Stay connected with instant access to e-mail, instant messenger, favorite blogs, and search engines. Most importantly, enjoy traveling light with this sleek and ultra-lightweight HP Mini Notebook. It weighs in at astonishing 2.25 pounds! The versatile performance notebook is a highly functional computer that is available in several different colors and special editions. With a 15.4-inch diagonal high definition widescreen, the versatile performance computer is best for multitasking—watching movies, listening to music, and editing photos. It come with optional edge-to-edge flush glass, discrete graphics, Blu-Ray, TV tuner, and a range of connectivity solutions including Wi-Fi, Bluetooth, and Mobile Broadband. This particular laptop is based on the Compaq Presario CQ50Z-series with thin lines, a stylish touchpad design, and a sleek, touch-control panel. Weighing in a seven pounds, the Compaq Presario CQ50Z-series redefines simplicity. In addition to being ultra stylish, the PCs in the Presario CQ50Z-series are durable, powerful, and value-priced. The new HDX premium series is an entertainment powerhouse. It is available in 16-inch, 17-inch, or 18.4-inch widescreens. This particular computer has endless cutting-edge entertainment and gaming capabilities.
THE PERFECT FIT.
Product Analysis The two most popular HP products under two categories: notebooks and desktop PC’s. Desktops and Other PCs HP desktops and other PCs are both affordable and simple to set up. They are easy to manage, and they leave a small footprint as far as the environment goes. HP computers are density optimized for flexibility and ideal for multi-ser ver deployments. They contain rack servers, the best components for high performance computing. Most importantly, HP computers deliver truly scalable backup with 50 times more efficient disk utilization. This allows users to protect data better, recover lost files more quickly, and reduce backup and recovery costs. However, one size does not fit all. That is why HP offers consumers a choice in new and enhanced data duplication solutions designed to fit a range of business sizes and needs. According to HP.com, HP is the top provider of PCs, servers, and printers to small and mid-sized business worldwide. HP was recently recognized for Excellence in Service Operations by the Service Support Association. HP offers free online training to keep employees ahead.
THE PERFECT FIT.
Competitive Analysis HP is currently competing against Dell, Acer, and Apple in the small business sector. The company is number one in printers and ranks second in computers. Dell
According to dell.com, Dell products are made to serve homes and offices— mainly small businesses. Dell is currently in the process of going green. The company’s website includes a section on going green; it asks “what does it mean to you?” Dell is currently working towards becoming the first carbon neutral computer company. The company offers coupons and other money-saving offers for its small business owner consumer base. They even have a business blog. Dell computers are also very affordable. A basic laptop is less than $500 for a 15inch screen and just around $800 for a 17-inch screen. A basic desktop will set you back about $550 for a 17-inch screen.
Acer
According to acer.com, Acer products are made for the home and the office. The company prides itself on making products that are easy to use. Acer is a globally-recognized brand. It has won two prestigious awards—the Red Dot award and the International Forum Design award. The company ranks fourth in Canada for overall PC shipments and mobile computing solutions. More importantly, Acer ranked third in Latin American mobile computing solutions.
Apple
According to apple.com, Apple has designed the first 15.4-inch mercury-free LED display as part of the recent going green initiative. In addition, the website is easy to use and even easier to navigate. In the event that users encounter technical problems, Apple offers AppleCare, an excellent form of customer service and support.
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SWOT Analysis Strengths Creates a strong corporate culture Caters to consumers Offers a wide range of peripherals Has humble beginnings Global recognition Aesthetically pleasing products Unique approach to advertising Affordable
Weaknesses Customer service and support needs improvement Website has not been modernized Needs to provide higher performance for certain applications Poor execution
Opportunities Market for laptops is expanding Untapped market in middle tier
Threats Dell’s customization Mac’s innovations State of the economy Taxing on small businesses
THE PERFECT FIT.
I am Mar y
Small Business owner
46 years old
Likes to Travel
Business: Real estate 15 Employees
Two Children: Ages 22 and 17 Not computer Savvy
Divorced Yoga Enthusiast
Scrap Booking Hobby Cares about the environment
Marketing Objectives HP knows the changing workforce, women who own small businesses have been over looked in the past, and we know they are vital to the success of our future. Here at HP we want to cater to this niche market by customizing to their lifestyle needs. Our objective is to increase our ROI, while providing the perfect fit for a woman’s lifestyle Another objective is to become a “greener” company, while building brand loyalty at the same time.
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Budget Print:
4 color
Full pg.
Insertions
Fortune Small Business Business Weekly People Total:
$107,600 $ 74,300 $254,075
3 3 3 $1,307,925
TV:
:30 Sec Spot
Frequency
Dancing with the Stars $250,000 Extreme Makeover: Home Edition $250,000 Food Network $ 5,000 Total:
2 per week for 4 weeks 2 per week for 4 weeks 4 per week for 8 weeks $4,160,000
Internet:
Price
Website Expansion & Ads and Production
$500,000
Outdoor:
Number
Price
Billboard
1
$50,000
Promotions:
Price
Laptop skins Recycling Reward Point System Breast Cancer Sponsorship Total:
$250,000 $10,000 $500,000 $760,000
Customer Service Training Program
$1,000,000
Total Budget:
$7,777,925
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Sales Promotion “Buy a notebook; get a free skin, fromskin-it.com.” To emphasize our pledge to personalize the computer, we have partnered with skin-it.com to provide our customers with free customized skins for their notebooks. “Recycling point reward system” To emphasize our pledge towards a greener environment, we have created a rewards system for our customers. Each customer will have an account where they can receive points for sending in their used HP ink cartridges. With ten points (ten returns) you will receive a free HP ink cartridge. This will also build brand loyalty, ensuring our ink cartridges are being bought.
“Breast Cancer Sponsorship” To build our public relations we intend to sponsor Susan G. Komen’s three day breast cancer event. This sponsorship shows women that we will fight the causes that are important to them.
THE PERFECT FIT.
Direct Marketing Strategy Many women struggle searching for the perfect fit, whether it’s shoes, jeans, cell phones or computers. That is why HP offers a wide variety of laptops in performance, mobility and style. These computers are suitable for your business and personal daily activities This advertising strategy proves how appropriate HP laptops fit into your versatile lifestyle. Guaranteeing you will never fall behind with HP’s data de-duplication. Let HP protect your data, reduce backup, recover lost files and recovery costs. Whether it’s within your small business or your personal life, HP will always fit. After all, one size doesn’t fit all. So let HP be your perfect fit.
THE PERFECT FIT.
Evaluation The campaign can be evaluated to determine its success by observing website hits on Hewlett Packard’s website to see if the site’s popularity has increased, and by examining financial figures to see if Hewlett Packard’s sales increase.
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the perfect fit
?
The Perfect Fit
Get a free skin from Skinit.com when you purchase a new HP Notebook.
Primary Research Survey For small business owner, Charmagne Taylor 1. What brand of computer do you prefer? HP 2. Do you prefer to use desktop computers or laptops? Both; laptops are best for on-site jobs whereas desktops are best for in the office 3. Rank the following purchase criteria (1 being the most important, 4 being the least important). __1___ Quality __2___ Customer Service __3___ Price __4___ Aesthetics
4. What do you like the most about your computer? Quality; I’ve been using HP for 10 years on-site 5. What do you like the least about your computer? Customer servic 6. Would you ever be willing to try an HP computer? Why or why not? Yes; I’ve had good experiences with Compaq and HP for 10 years now 7. As a woman small business owner, what do you look for in a computer? Flexibility, speed, and portability
THE PERFECT FIT.
Primary Research Survey For small business owner, Mary Lee 1. What brand of computer do you prefer? HP 2. Do you prefer to use desktop computers or laptops? I prefer desktop computers because I am very absent-minded and I tend to leave things behind 3. Rank the following purchase criteria (1 being the most important, 4 being the least important). __1___ Quality __2___ Customer Service __3___ Price __4___ Aesthetics
4. What do you like the most about your computer? It’s easy to use 5. What do you like the least about your computer? It’s hard to get a hold of the service and support department. 6. Would you ever be willing to try an HP computer? Why or why not? Yes; I have one now. 7. As a woman small business owner, what do you look for in a computer? It has to be reliable above everything else.
THE PERFECT FIT.
Primary Research Survey For small business owner, Lonnie Whitfield 1. What brand of computer do you prefer? HP 2. Do you prefer to use desktop computers or laptops? Desktops 3. Rank the following purchase criteria (1 being the most important, 4 being the least important). __1___ Quality __4___ Customer Service __3___ Price __2___ Aesthetics
4. What do you like the most about your computer? The compatibility factor 5. What do you like the least about your computer? Made in Taiwan 6. Would you ever be willing to try an HP computer? Why or why not? Yes; because of all the good peripherals that HP has come out with. 7. As a woman small business owner, what do you look for in a computer? N/A
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Conclusion The campaign “The Perfect Fit; For Your Lifestyle” is designed to target the entrepreneur woman. The focus is to inform women that the HP computer is a good investment because it is personal, flexible, and portable. It truly is “The Perfect Fit”.
THE PERFECT FIT.