Discussion On Implementation Of Hewlett Packard Marketing Strategy
Question
Task:
Individually, you required to write a 2000-word report based on the scenario provided in the assessment
instructions.
Assessment Description.
This assessment is a culmination piece, in which you will be given an opportunity to combine the information you
have accumulated in Assessments 1 and 2. More importantly, you will need to showcase an understanding of
marketing issues related to consumer behaviours such as attitudes, group influences, culture, social class,
consumer learning processes, and personal buying decision-making processes.
Assessment Instructions
Your task is to imagine that you have just been employed by the company of your chosen product or service that
you analysed in your earlier assessments and that the marketing department of this company has asked you to
prepare a 2000- word report in which you must:
- Write a concise executive summary that covers all of the significant findings of your report (not included in the word limit of this submission).
- Provide a concise overview of the product or service and its market performance (300 words).
- Critically examine the company’s current marketing communication mix by considering how it targets consumers’ attitudes, group influences, culture, social class, consumer learning processes, and personal buying decision-making processes. Please note that not all of these topics may apply to your chosen product or service (600 words).
- Critically analyse whether or not the communication mix demonstrates a strong alignment to your findings
in assessment 1 and 2 - Provide at least three strategic recommendations that either address previously identified misalignment or proposed ways in which identified alignment can be strengthened. Please incorporate recent peerreviewed literature to justify your proposed recommendations . Recommendations should not include manufacturing or operational improvements.
- Include Appendices (optional and not included in the word count) and Reference List (mandatory not included in the word count).
In addition to your video and survey results, you are required to use at least 15 sources of information
and use Kaplan Harvard Referencing Style. Wikipedia and other ‘popular’ sites are not to be used. These may include government publications, industry reports, and journal articles
Answer
Executive summary
This study on Hewlett Packard marketing strategy has focused on the communication mix strategy that has been adopted by Hewlett Packard in order to address the consumer behavior and marketing psychology. In the view of this report, it has also analyzed the strong alignment of the communication mix strategy with respect to previous findings. For this matter, HP laptops and UK markets have been considered. Furthermore, the report has also highlighted certain strategic recommendations based on the Hewlett Packard marketing strategy that might prove beneficial to the company in combating the existing trends among consumer in UK.
Introduction
The purpose of this study on Hewlett Packard marketing strategy revolves around exploring the various communication mix strategies implemented by HP in U.K. with respect to their key product that is laptops. The report also analyses how HP aligns its communication strategies in order to address the consumer behavior and marketing psychology. This mainly integrates consumer attitude, class, culture and buying decision while developing the various aspects for the report. The report also provides strategic recommendations that will help HP to strengthen its existing communication mix strategy.
Overview of the product and market performance
In the words of Dion J. Weisler, CEO and President of HP, the year 2018 is considered as a year in which the company has made incredible progress (AG, 2019). In his words, the strategies especially the communication mix strategies are paying off. With their strategies that keep reinventing the product through innovations, HP has acquired a strong position in the markets of U.K. These innovations that accompany each product centre around consumer behaviour (Fakhri et al., 2016). The personal systems or PCs are continuously reinvented with technology and innovations that now support gaming and other high value segments. This resulted in an additional revenue of $6.4 billion accumulating to an overall revenue of $5.85 in the year 2018 (Khalifa et al., ). In order that the laptops thrive in the markets, HP has adopted the Sustainable Impact Strategy that focuses on various parts of the business. Firstly, it address the issues of its stakeholders namely suppliers, customers and policy makers.
Figure 1: HP Laptop
(Source: MAHMUD, 2019)
HP laptops come under various models and improvisations of the HP Pavilion and Notebooks are customer friendly and come with very easy installation process. With every new laptop that is manufactured, the product gets trendier. In order to determine the agility of its product, HP has launched its Agility Assessment Policy (Martinez and Pulier, 2016). However, it faces serious issues in explaining this concept of agility to its customers. It is observed that off late customers have accepted the benefits of dynamic computing and IT benefits that HP laptops have offered them. This agility assessment tool used in the Hewlett Packard marketing strategy has helped draw more number of customers with its first emergence in the markets with such incredible innovations to IT.
Communication mix strategy of HP:
Integrated communication mix strategies have played an integral role behind the success of Hewlett Packard in the markets of U.K (Bhasin, 2020). This communication strategy has now overruled the previously earned misconceptions that tagged the company as being biased with technological innovations. In the present scenario, such strategies focus on the customer and market needs through appropriate market research, interests and needs of the customers. All tools that are used in the communication integration strategy focus upon the customers throughout their buying process and emphasize upon the underlying concept of creative design integration. On a broader perspective, the communication mix strategy implemented by HP can be discussed as follows.
Figure 2: Communication mix strategy
(Source: Blakeman, 2018)
Direct marketing: The Company has conducted thorough reviews in the UK markets to determine its need for direct selling. This review initiated by the technology giant covered Europe and various parts of Africa and middle East (Campaignlive.co.uk., 2020). This Hewlett Packard marketing strategy adopted by the company targets 10 agencies that the company can approach with their newly procured idea. As far as direct marketing is concerned, HP has accompanied renowned agencies in the markets of U.K. These agencies include Publicis Dialog and Gyro International. Such collaborations not only gains for the company but the agency as well. In 2006, Gyro International won bronze medal in the DMA awards for promoting and associating with HP’s digital print technology (Notesmatic.com., 2020). Such direct marketing strategies not only indicate that HP can extend helping hand to large business but also brings out the fact that it can be of help to individual owners as well. This indirectly improves the consumer learning processes. The proactive engagement with customers that is associated with direct selling also influences as well as improves the personal decision making processes of the customer.
Advertising: Social media, TV and campaigns continue to serve as the major platforms for the purpose of advertisement. Recently, the company has launched its largest campaign under the name of “new style of IT” which demonstrates the newly created dynamic microsite. Every new laptop that is manufactured focuses on this microsite with the help of which companies can provide various solutions over the cloud. For the purpose of advertisement, the Hewlett Packard marketing strategy mainly targets the higher social class with middle to high income. With increasing focus on the digital platforms, HP has invested 60% of media advertisement to digital platforms (Guo et al., 2019). These include digital video advertising on Youtube. This reflects HP’s custom targeting where it mainly targets and influences groups with their premium and gaming technologies in the laptops. Moreover, the “Creative Design Integration” campaign that was conducted helped the brand to attain the image of a trendy brand (KHASANAH, 2019). This campaign was mainly targeted at the youth in order to attain customer loyalty.
Sales and promotions: Although rarely, but the sale and promotions provided by the company act as incentives for the consumers. In some cases, the company comes up with discounts as well as free shipping for the delivery of laptops (Almen et al., 2017). These sale strategies often allure customers into buying the products. In addition to this, it also offers various coupons mainly online coupons whereby customers can avail discounts at just one click. Promotional events such as “Super Bowl” and “meet or delete” are also examples of effective communication with the customers. Such sale promotion techniques influence customer’s attitude towards purchase of laptops.
Analysis of alignment of communication mix with the findings
Unlike any other company, HP is also aimed at making profits by implementing Hewlett Packard marketing strategy. In order to achieve such goals, the company follows various strategies. Although majority of the strategies are focused on technological innovations while few contribute to the communication mix strategies (McIntyre and Ortiz, 2016). Due to such less focus in the communication strategies, the company was previously criticized for focusing more on technological advancements. Such undistributed concentrations also caused the company to lose out on the customers in the markets of U.K. Hence various researches emphasized upon the needs for the implementation of Hewlett Packard marketing strategy. HP has from the beginning kept their policies and operation strategies transparent to the audiences for having better customer experience. Their purpose is to be accountable to the different needs of the customers by maintaining ethics. They have been consistent in their operations incorporating integrity and fairness in the work strategy. "Integrity at HP" is the program under which the ethical standards in serving the people are listed (Notesmatic.com, 2020). Through clear communication, HP has made it a point to let the customers know of the operation techniques practiced in line with the ethical principles. Robust policies, controls and protocols are the key activities of HP in enhancing customers’ needs in regard to the quality of the products. HP is till date working extraordinarily in reference to the need of the customers and communication strategy through different techniques. Commitment to integrity is communicated to the customers by keeping them informed all the time through the help of social media channels. Moreover, it is vigilant that ‘Integrity at HP’ is a program about which millions of the customers are made aware of and many already have knowledge about it. For protecting the businesses and providing customers with high quality laptops, Anti-Corruption policy, risks sensing system and compliance programs are incorporated under Hewlett Packard marketing strategy.
In the current scenario of Hewlett Packard marketing strategy, the company has been applauded for its incredible integrated communication mix strategies which are centered on the customers. Company now believes that product is not the only pathway to fulfilling customer’s demands and needs. The credit lies in developing strong relationships with the customer through appropriate dialog delivery and empathy. The company has therefore invested in its corporate image by developing strong communication mix strategy that is customers focused addressing the customer buying behavior, attitude, culture and group influences.
The direct Hewlett Packard marketing strategy implemented has been recognized by the markets of U.K. The company’s underlying concept of helping out both large companies as well as small individuals has been embraced by the culture of UK. In addition to this, the technological innovations used behind the laptops also communicate effectively with individuals focused in gaming. This clearly highlights the company’s focus on the social class which is a stark distinction of the markets of UK. Moreover, the agility assessment tool which is one of its kind introduced by the company has provided credits towards the agility of laptops by the consumers. Initially it proved to be difficult to explain to the customers this agility tool, however later its credibility earned appreciations from the consumers.
Digital marketing strategy is one of the effective Hewlett Packard marketing strategy followed by the company which is unique and strategic in approach. The Digital team mainly uses social media channels and content advertisement strategies. The advertisement techniques adopted by the company also proved effective in communicating with the customers. Initiating Hewlett Packard marketing strategy on social media platforms such as YouTube aligns with HP’s eye towards digital marketing and e-marketing. Advertisements have aroused awareness among the customers towards newer technologies and innovations associated with every laptop that the company manufactures. In addition to this, advertisements have also targeted the various segments of the society which indirectly influences the customer purchasing behavior. HP considers that such advertisements are key tools towards creating synergic effect. Through the “Computer is Personal”, it has appealed to the youths which marks another strategic move towards its communication mix strategy.
“The Personal” campaign which is inflicted with animations also connected well with the audiences (Ness and Xing, 2016). The innumerable hand gestures that are used convey connectivity and assurance to the buyers. This shows the ways the brand gains its customer base.
Finally, the sale and promotion techniques not only highlight the company’s empathy towards its customers but also the fact that quality and services are much important besides price. The offers and free shipping provided by the company at times strategically highlight this idea. Thus it can be concluded from the overall analysis on Hewlett Packard marketing strategy that the communication mix strategies adopted by HP strongly aligns with the findings. HP laptop is one of the most well-known brands in the laptop industry that has influenced the customers with ethical and good quality products (Yasmin, 2017).
What are the strategic recommendations based on the case of Hewlett Packard marketing strategy?
Integrate with the customers even more: Customers of HP can be classified into three categories namely Group A, B and C. the first category comprises those customers belong to the higher social class. These individuals are ready to invest into the premium services and value the relation with the company. Moreover, this class also maintains routine checks of their laptops. Such customers comprise a major population of the markets of UK as revealed by various researches. These represents the collaborative nature of customers and it is required that HP connects with them through long term investments (Pisano and Austin, 2016). Group B includes those that look for rock-bottom price and are ready to change suppliers based on the pricing. Therefore, HP should focus on these through negotiations by maintaining re-buy situations. Such situations created by the company leave an impression that influences their purchasing behavior for the future. As far as markets of UK are concerned, the third group is the lowest. Therefore maintaining reduced financial investments with them is recommended. Moreover the company should introduce cost strategies for group B that offers a contract for the services that are supplied. In addition to this, inclusion of an exit fee into the contract is also recommended for Hewlett Packard marketing strategy.
Cut down on advertisements: It has come to notice that a higher percentage of the revenue is invested for the purpose of advertisements. Considering the markets of UK, the company already has a strong brand image. Therefore it is recommended that the brand now cuts down on the advertisement costs. This would alleviate the high debts that are incurred by the company. Furthermore, higher costs levied on advertisements mean higher cost of products. Therefore, cutting short on advertisements proves to be beneficial considering the strong brand image and culture of UK.
Public relations strategic planning: Dell stands out to be the stark competitor in the markets of UK. In order to achieve competitive advantage over them Hewlett Packard marketing strategy organizes various reality shows. However, it is recommended that instead of investing so much on campaigns, a public relation strategic planning would suffice. Such strategies would evaluate the reputation and viability which in turn will help in strengthening the mutual bonds between the brand and consumer. In addition to this, building up public relations will also enable HP to monitor its competitors for future reference.
Conclusion
The study on Hewlett Packard marketing strategy has therefore clearly pointed out the way in which HP has targeted the consumers based on attitudes, learning processes, purchasing intention and also adhered to the social class. Amidst well-known brands in laptop industry, HP has taken a stand to meet the needs of the customers in an exquisite manner. It is being assessed that HP has used direct selling, advertisement strategy and sales promotion to influence the potential customers. From the critical analysis on Hewlett Packard marketing strategy, it is assessed that any company needs to undertake the correct communication mix strategy so that the firms can directly reach the customers. However, stands like putting efforts in building customer relationship and loyalty will increase the sales of the company profoundly.
Reference List
AG, G., 2019. Annual Report 2018. Wien
Almen, K.D., Tippetts, R., Burkum, P.S. and Markel, D.P., Hewlett Packard Development Co LP, 2017. System and method for electronically assisting a customer at a product retail location. Hewlett Packard marketing strategy U.S. Patent 9,575,558.
Bhasin, H. (2020). Marketing Mix of Hewlett Packard - HP marketing mix. [online] Marketing91. Available at: https://www.marketing91.com/marketing-mix-of-hewlett-packard/
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to implementation. Rowman & Littlefield.
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Martinez, F.R. and Pulier, E., Csc Agility Platform Inc, 2016. System and method for a cloud computing abstraction layer with security zone facilities. U.S. Patent Application 14/720,681.
McIntyre, K. and Ortiz, J.A., 2016. Multinational corporations and the circular economy: how Hewlett Packard scales innovation and technology in its global supply chain. In Taking Stock of Industrial Ecology (pp. 317-330). Springer, Cham.
Ness, D. and Xing, K., 2016. Hewlett Packard Australia—Towards Sustainable Product Service Systems. Hewlett Packard marketing strategy In Manufacturing Servitization in the Asia-Pacific (pp. 93-108). Springer, Singapore.
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Pisano, G.P. and Austin, R.D., 2016. Hewlett Packard Enterprise: The Dandelion Program.
Yasmin, A., 2017. Impact of brand image on consumers’ purchase decision. International Journal of Research in Social Sciences, 7(10), pp.627-644.