Integrated Marketing communications used

by HP
This case study analyses the marketing communication theories adapted by Hp as it progressed
to being the worlds number one pc manufacturer in 2007. Its emergence as a global company in
1957 opened a window of opportunity. The theories addressed will aid in forming a combination
of the key concepts used by Hp for its global campaign to increase customer loyalty and boost
sales. A number of practises are seen to have developed along various communications and
marketing theories. However, critical analysis of Hps 63- year development will show a lack of
adherence to some very useful models by some academic scholars. A viable description of
marketing through effective communication was made by Smith (2002), strategy of choice in
a competitive environment is proactive, two way communication, in which organisation plan
for and initiate relationships with the people important to their success, emphasising dialogue
over monologue and using various techniques to interact with their publics.
Background
Hewlett Packard, known as HP, is an electronics producer which was founded in 1939 in
California by Bill Hewlett and David Packard. Since its birth the company has gained
prominence around the world, becoming a major leader in the industry of electronics and
technology.
Early product designs produced by the company include inventions such as the resistancecapacitance audio oscillator named Model 200A. It is the manufacturing of products such as the
Model 200A that have shaped the future for technology and helped pioneer many of todays
products.
In 1966, HP introduced the worlds first computer. In 1968 the company then unveiled the first
desktop scientific calculator and named it the personal computer (PC). It was this event which
boosted HP in to mainstream significance during the 1980s and became leading players in the
technological industry. This was established in 1995, when HP entered the home computing
market.
In 2001the company merged with Compaq forming HP Compaq. This merger ensured efforts
were made to further establish the brand as a leading company in the IT and computer industry.
This was done through aggressive marketing tactics done through the concept of Integrated
Marketing Communication (IMC).

1. Critical evaluation of the role of integrated marketing

communications in the success of Hewlett-Packard since
2001

Joep cornelissen (2008) definition of corporate communication is as follows:

Corporate communication is a management function that offers a frame work for the effective
coordination of all internal and external communication with the overall purpose of establishing
and maintaining favourable reputation with stake holder groups up on which the organisation is
dependent.
But using of this approach is not always good as some critics may say despite of 20 years of
debate most practitioner still see that integrated marketing communication is emerging discipline
(eagle and kitchen 2000) rather than fully formed concept. Like many other concept that have yet
to fully develop it is subject to fully varying and some times colourful terminology. Thus 360
branding, total branding , whole egg, seam less communication, new advertising,
orchestration, relationship marketing, one to one marketing, integrated marketing and
integrated communications (Pickton and Broadrick 2001) have all been used to describe all or
part of integrated marketing communications concepts promoting the charge that integrated
marketing communication is yet another fad. What most observers agree on is that integrated
marketing communication is good idea but very hard to implement in practice
Like all companies, HP is a company whose primary aim is to make a profit. However whilst this
is a common company goal, there are still necessary guideline which should be followed in order
to achieve this. Fill (2006) recommends that the process of developing corporate strategy
demands that a series of objectives be set at different levels within an organisation.
Grunig et al (1992) states that twoway communication, a form of communication which is also
practiced by PR practitioners, is a helpful tool from which a mutual understanding can be
developed between stakeholders.
One of criticisms of HP was that the company was focused more on the advancement of
technological innovation. The corporate image of the company was seen as being obsessed with
innovative progression and undermining the value of its customers.
Shutz et al (1992) cited in Clarke (1997, pg 93) states that such actions are damaging to a
company and that customer based communication must be practiced at all times.
You cannot depend on the product alone to build consumer confidence. Its the rapport, the
empathy, the dialogue, the relationship, the communication you establish with the customer that
makes the difference. These separate you from the pack.
For all of HPs innovative output and diverse range of products, its market position was infringed
through a lack of market research and poor internal organisation.
Smith (2002) refers to the work of Tom Harris, who is a leading advocate of integrating
communications. He describes integrated communications as an outside-in process that begins
with an understanding of the consumer publics, particularly their wants, interests, needs and
lifestyles.

Fill et al (2001), however, argues that many practitioners deliberately persuade a target audience
to behave in a particular way, while others persuade them. In whatever instance it might be,
understanding the customers needs, which may in turn change their behavioural pattern, is not a
necessarily bad evil. Hp deliberately changed their communications strategy to affect the buying
behaviour in their customer through effective brand campaigns that brought mutual satisfaction
to both consumer and HP.
Clarke (1997) explained that for consulting firms to effectively handle marketing and
communications they must reflect the overall objectives of the organisation. Todays market calls
for a strategically integrated approach to marketing communications. Hp would have to
reorganise its marketing communication s division in to one that is coherent to attract customers.
Oliver (2001) defined this as the system Theory - which she said evaluates the relationship and
structure as they relate to the whole. Market research builds the right perception and recognise
the needs and behaviour of current and future customers; evident in the theory of cognition.
The history of HP showed there was lack of strategic planning and changes on marketing and
communication structures were needed. During 1960s, consumers probably did not know any
better or did not have a chance to choose; and this could force them to adhere to HP products.
However, now a days Kotler et al (2008) affirms consumers receive thousands of information per
day.
In this context, in 2002, HP realized that the company needed to invest in its corporate image.
So, the company launched brand advertisement campaigns. In 2006, they create the Computer is
personal again, which had focus on personal relationship that public have with its computers. By
analysing the competitors, this campaign was based to convince customer that the best way to
buy a PC was in a retail shop, where they could touch it. This was an opportunity to differentiate
from its main competitor Dell, which has a strong internet sales record.
Fill (2009) believes that the marketing segmentation is necessary to meet the consumer need and
to have a functional and competitive-level strategy. The Computer is personal again campaign
was structured to appeal to young generation, which the company believed to be customers with
similar needs and responses. HP targeted the youth market and position itself as a customer loyal
corporation. In this scenario, the marketing communication strategies combined channels online
and offline and integrated all marketing efforts such as PR, sales, advertisement. Shimp (2000)
states that mixing marketing communication elements is decisive to achieve the target public and
a specific objective. Also. HP emphasized advertisement and sales promotion in order to
maximize the sales, creating a Synergistic effect. Undoubtedly, every channel used by this
campaign had a consistent message, which complemented each other. Cornelissen (2008) says
the company should communicate on ongoing basis and themed messages reinforce perceptions
of how an organization wants to be seen.

Marketing Integration
Holm (2006) states that Smith (1999) developed a tool, from which there are seven levels
through where marketing integration can occur. Holm says these seven levels are:
Vertical objectives integration
- It means that communication objectives fit with marketing objectives and the overall corporate
objectives.
Horizontal/functional integration
Marketing communications activities fit well with other business functions of manufacturing,
operations and human resource management.
Marketing mix integration
The marketing mix of product, price and place decisions is consistent with the promotion
decisions, e.g. with the required communication messages.
Communications mix integration.
All the 12 communications tools are being used to guide the customer/consumer/client through
each stage of the buying process and all of them portray a consistent message.
Creative design integration
The creative design and execution is uniform and consistent with the chosen positioning of the
product.
Internal/external integration
All internal departments and all external employed agencies are working together to an agreed
plan and strategy.

Financial integration

The budget is being used in the most effective and efficient way ensuring that economies of scale
are achieved and that long-term investment is optimized.
Let us examine personal again campaign at each of these seven levels:
Vertical Objective Integration: level of coordination between communication objective, corporate
objective and marketing objective.

.
Corporate objective: Customer loyalty, profit, growth, market leadership, commitment to
employees, leadership capabilities and global citizenship. (Source: www.hp.com)
Marketing objective: To increase market share, compete with Dell, target young generation
Communication objective: Focus on personal relationships to PC and show consumers the
different tasks made possible by HP technology
Synergy can be seen among these objectives. All advertisements were base on same theme where
celebrities from different field were talking about how HP PC and technology is part of their life.
Faces were not shown in any of the commercials and focus was on different tasks that HP makes
easy. It reinforces customer loyalty which is corporate objective of HP. Advertisements in this
campaign were appealing to young generation and through social media viral effect HP reached
new customers which were otherwise non-respondent to traditional media, thus increasing
market share.
Horizontal/functional Integration: fit of MarCom and business functions like operations and
HRM
HP had strength in selling through retail stores in consumer segments rather than selling online
which was Dells core competence. New campaign communicated that PC is a commodity which
is close anyones personal life, its a part of life rather. It pushed customers to visit the nearest
retail store to touch, feel and learn how HP technology can be useful to them.
Marketing mix integration: How well the promotion (with communication message) goes with
the other 3 Ps of marketing mix
Although the general theme of the campaign was universal throughout the 100 countries where
HP was doing business, some variation can be seen according to place and price. For example in
India personal again campaign was supported by Business is Personal Again campaign that
targeted SMEs. Although the basic theme remained unchanged, local celebrities and eminent
personalities were used for promotion in particular places.
Communications mix integration: Different communication tools portray a consistent message

Every channel used to communicate message delivered consistent message. TV commercials,

internet promotion, PR program, newspaper, billboards, reality shows etc. whichever medium
was used for MarCom in personal Again campaign was complement to each other and had
same tone/message.
Creative design integration: creative design is in accordance with the positioning of the product
With this new campaign HP wanted to acquire a trendier brand image. They wanted to target
youth market and position itself as a consumer loyal company. Personal again campaign was
very much on the line. It relied heavily on animations. Hand gestures were used to convey
connectivity, assurance, and emotional connect. Celebrities shown in the commercial were those,
who are followed by young generation. Events which were of special interest of youth, like
Super Bowl and reality show meet or Delete were focused for marketing communication.
Internal/external integration: Internal departments and external agencies work in synergy
according to an agreed plan
Personal Again campaign was designed by GSP, which is HPs advertising agency since 1996.
All previous campaigns were also handled by same agency. Although not much evidences about
the extent of coordination of HP and GSP are provided in the case but because of this long period
of relationship; mutual trust and understanding between both can be expected.
Financial integration: efficient utilization of budget ensuring long-term investment optimization
Not sufficient information is provided in the case about budget allocation of Personal Again
campaign
Also, HP used celebrities in its advertisement in order to emotional connect the public. Fill
(2009) citing Patzer suggests that the physical attractiveness of the communicator, particularly if
it is the source, contributes significantly to the effectiveness of persuasive communications
(Patzer in Fill, 2009, p.43) Celebrities from different field expressed how PC makes their lives
easy. The identification of young people with celebrities encouraged the sales and reinforced
customer loyalty. The brand value of HP increased 9% after the campaign. The celebrities
enables the message to stand out among the clutter and noise that typify many markets (Fill,
2009, p.509). This concept was used by HP to persuade the sales and making the product more
attractive to the target public through association with MTV channel. However, Fill (2009)
adverts there are two main concerns about the use of celebrities on campaigns. The first one is if
the celebrity fit in the image of the brand and if they will be acceptable by the target audience.
The other is that the public may remember the celebrity, but not the brand.
The use of celebrities and the creation of a realty show Meet or delete on the campaign
Computer is personal again influenced the consumer behaviours as it motivate them to buy.
Dibb et al (2001) say there are several factors that can persuade a purchase such as personal,
psychological and social influence and describe motive as energy giving a persons activities
towards satisfying a need or where achieving a goal (Dibb et al, 2001, p.133). Shimp (2000)
affirms that advertising may influence consumer to buy items they may not need. The consumer

buying decision process has 5 stages: problem recognition, information search, evaluation of
alternatives, purchase and post-purchase evaluation, according to Dibb et al (2001). HP created
awareness to young people by offering a PC not as commodity, but as extension of person life.
The buzz generated by launching first videos on the internet and after in TV made consumer
looking for more Knowledge about the product. However, the main goal of this campaign was to
interact with consumers, which could be helpful in the post-purchase evaluation phase as
customers could trust that HP would be there if they need anything.
Instead of creating a campaign to compete directly against Dell, HP could have done a public
relation strategic planning. Smith (2002) citing Al Riel and Laure Riel explains that The purpose
of advertising is not to build a brand, but to defend a brand once the brand has been built by
other means, primarily public relation [] (Al Riel and Laure Riel in Smith, 2002, p.9). A PR
plan could identify and evaluate the organization viability and reputation, where a mutual
beneficial relationship between company and consumer could be build, according to Smith
(2002). The lack of market research and planning were the main problem of HP. By realizing a
SWAT analysis, the company could have set clear objectives and develop a marketing and
communication targets that would be the foundation for a nine steps strategic public relation
plan. This plan would be beneficial to HP as company goal would be based on research and
evaluation. Also, it would allow the HP to monitor the competitor as a point of reference.
HP used or could potentially use the following marketing tools to aid their Personal Again
campaign.

Category
Communication Tool
Media
Broadcast: Television (Meet or Delete) Print: Newspaper, Magazines
Internet: Social Networking Sites, Blogs, Interactive websites, Viral Video,

Direct Response and Interactive

Online ads featuring celebrities
Adverts on websites such as: Yahoo, MTV, MySpace, MSN, Weather Channel, CIO, Forbes,
Entrepreneur, InfoWorld, CNet.
HPs own interactive websites: www.meetordelete.com and www.fingerskilz.tv
Social networking and blog sites

Outdoor
Billboard

Sponsorship
Celebrity endorsement

2. Discuss the importance of branding, branding strategy

and brand positioning to Hewlett-Packard in developing
competitive advantage
Brand can be defined as identifiable product, service [..] augmented in such a way that the buyer
or user perceives relevant, unique added values which match their needs (Chernatony and
McDonald, 2005, p.25). Xie and Boggs (2006) believes that a brand is a result from product
differentiation and strategy of market segmentation. Organizations are changing their
communication strategy to keep the consumers attention on the corporation and not anymore on
the products. Until 2002, HP had not developed a unified image as the company used to invest
less than 10% of its advertisement budget on brand ads. HP has focus to being innovative and to
diversify its products line, but lack in market research and in position itself to get a competitive
advantage from the competitors. Having focus on the corporate branding means the organization
behaviour will have more exposure and be more visible and transparent in its activities. When
corporate branding works, it is because it expresses the values of desire that attract key
stakeholders to the organisation and encourage them to feel a sense of belonging to it (Hatch and
Schultz, 2001, p. 1046). So, in 2003, this company introduce Operation one Voice in order to
have a consistent message and an identified image for the external and internal public.
Chernatony and McDonald (2005) believe that a successful brand has as objective to build a
positive relationship with costumer, where feelings of commitment and belonging are presented.
For a long time, HP has negligence the importance of connect with consumer. Just in 2006, to
differentiate from competitors, HP redefined the PC as personal and not anymore as commodity.
From decades, HP has an advantage from competitor for investing in technologic research.
However, in the beginning of 90s, the consumers had more options and the competitors such as
a Dell revelled themselves with a strong presence in the market.
A positive point is that HP has a monolithic identity structure to reinforce the corporate brand,
where all the products carry the corporate name. That strategy is a fundamental tool to build a
strong reputation. The advantage of using a corporate branding is to apply the vision and culture
as part of sales promotion and also to add a unique organisational value. Cornelissen (2008)
believes that structure core emphasises the alignment between vision, culture and image. Also, he
suggests using the toolkit developed by Hatch and Schultz to analyse the alignment or gap
between vision, culture and image, by questioning the interface between those tree elements.
Hatch, M, and Schultz, M. (2001) "Bringing the corporation into corporate branding",

European Journal of Marketing, vol. 37, no. 7/8, pp. 1041-1064.

HP vision aims to be leader in its segment, to invent technologies and services that add value to
business and also to create social benefit to consumers lives. Its identity seeks to be an
innovative company, which produces range of quality products. In this context, there is not an
alignment between vision and culture, because HP had not differentiated its strategies from
competitors, imitating Dell direct sale tactics. Also, it seems to have a gap between culture and
image as consumer have not perceived HP as an organization worried about their needs, but more
concerned about develop new technologies .However, vision and image seem to be alignment as
the company has a clear idea who is its main stakeholders and it understands the importance to
communicate with them on ongoing basis. HP also is involved in corporate social responsibility
projects and those help to communicate and reinforce its vision to its stakeholders.
For a long period, HP prioritized its objectives, instead of the customers needs. Its products were
advertised separately and interestingly did not use a lower price tatic as competitive advantage.
According to Sengupta (2007), the position of a brand is determinate by the target consumers.
Position then represents the essence of the brand as perceived the target consumer in a multi
brand market(Sengupta, 2007, p. 17). So, HP strategically reinvented the computer, giving a
personal touch. In this context, the organization added 9% value to brand in 2007. Sengupta
(2007) adverts that the company need to know who they are first and then create awareness in
order to position the brand. By interacting with costumers through blogs and website, HP is
changing the way how the public perceived its brand.
The importance of position correctly a brand can be recognized in Sengupta citation: Position
creates uniqueness, credibility, sustainable and valued place in consumers mind for brand
(Sengupta, 2007, p. 17). Chernatony and McDonald (2005) affirms that a successful brand is a
result of how much value the customers add to a product or a service. HP repositioned the brand,
by differentiating the concept of PC. Xie and Boggs (2006) affirm that products and services are
quickly imitated and homogenized, maintaining credible product differentiation is increasingly
difficult, requiring the positioning of the whole corporation rather than simply its products (Xie
and Boggs, 2006, p.349).
HP has been investing in technologic research since 1960. In the beginning, the company had
focus in hospital equipments and it seems HP looked just to niches, instead of looking the entire
market for a long term strategy. However, its brand has extending to computers, printers and
digital cameras. Because HP was recognized as an innovative company, this image was
transferred to the news products lines. Consumers recognize the name and make associations
that enable them to lower the perceived risk and in doing so provide a platform to try a new
product (Fill, 2009, p 508). HP expertises in computers were extended to printers and digital
cameras. Chernatony and McDonald (2005) states that one factor of success on brand extension
is to build and sustain a favourable reputation for a parent brand. Reputation also is an important
aspect on consumers loyalty. After decades, HP understood the importance to look what the
brand means to the customers. By knowing the core associations that consumers perceived the
brand, it is more likely to be successful in an expansion. HP targeted young consumers as this
public and the company share values such as interest for technologies and innovation. That helps

to create a connection. In 2006, a blog, which was part of HP association with FIFA World Cup
website, attracted more than 180 thousands visitors.

3. Major challenges ahead for Hewlett-Packard &

Recommendations
HP had certainly done good job on the front of integrated marketing communication by
launching the new campaigns and other supporting campaigns. But while doing that there were
some areas which were not addressed
HPs ability to recognise the need to change its marketing and communication strategy
purposefully led to its growth by 2007. Smith R.D. (2002) described campaigns as systematic
sets of public relations activities, each with a specific and finite purpose, sustained over a length
of time and dealing with objectives associated with a particular issue. Management was able to
change the structure, process and relationship within the company to establish lasting partnership
with its customers. The advertisements were able to persuade customers in to buying by evoking
an inherent desire to be part that a celebrity group. However, to be able to sustain this flow, Hp
will have to develop long term strategic marketing communications plans through continual
market research and development.
Extensive use of celebrity endorsement by having a long term association with celebrities there
is a risk that any indecent behaviour of celebrity may affect the companys image.
Company was over focused on advertising and under used other elements of communication mix
like personal selling, sales promotion, PR.
As the company grows in size and market share with huge number of customers, company also
needs to address the retaining of existing customers.
As small and medium business sector is emerged very attractive segment company should try to
acquire number of customers in this segment as in the last campaign some critics said that the
campaign was more focused on consumer sector rather than SME and corporate.
In the current era of globalisation the economies are interlinked and interdependent on each
other. There are new challenges arsing from this kind of phenomenon. To overcome from this
kind of situation Doole and Lowe (2001) describe the companies are adopting a long term
strategies, where marketing programmes and process are standardised and at the same time it has
been adapt to local needs. It is important to understand the differences and similarities between
local markets.
Due this globalisation where new markets are opening like India, China, Brazil the company
must adopt the strategy according to the culture of these countries

Fill (2009) states from marketing communication perspectives, the prevailing culture in a region
must be respected, otherwise it is likely that a brand and or organization will be rejected (Fill,
2009, p. 842).
Kotler (2002) Multi-brand strategy: Multi-brand strategy enables a company to lock up more
distributor shelf space and to protect its major brand by setting up flanker brands
RECOMMENDATIONS
Use the multiband strategy in future to acquire the more shelf space and beat the competition.
Use personal selling as tool to improve sales.
Use combination of push and pull strategy.
More emphasis on sales promotions in store
Use of PR to retain existing customer and maintain good relationship with stakeholders.
Become more interactive with consumers through new media (develop message board and
forums)
Focus on corporate advertising as well as consumer advertising
Continuous development of innovative new products
Integrate at Different Levels of management. Put 'integration' on the agenda for various types of
management meetings - whether annual reviews or creative sessions. Horizontally - ensure that
all managers, not just marketing managers understand the importance of a consistent message whether on delivery trucks or product quality. Also ensure that Advertising, PR, Sales
Promotions staff are integrating their messages. To do this you must have carefully planned
internal communications, that is, good internal marketing.
Think Customers First. Wrap communications around the customer's buying process. Identify the
stages they go through before, during and after a purchase. Select communication tools which are
right for each stage. Develop a sequence of communications activities which help the customer
to move easily through each stage.
Build Relationships and Brand Values. All communications should help to develop stronger and
stronger relationships with customers. Ask how each communication tool helps to do this.
Remember: customer retention is as important as customer acquisition.
Develop a Good Marketing Information System which defines who needs what information
when. A customer database for example, can help the telesales, direct marketing and sales force.
IMC can help to define, collect and share vital information.

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