Professional Documents
Culture Documents
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INTRODUCTION
SALES PROMOTION:
According to the Institute of Sales Promotion, "Sales Promotion comprises that range of
techniques used to attain sales or marketing objectives in a cost effective manner by adding
value to a product or service either to intermediaries or end users, normally but not
exclusively within a defined time period. Almost every Company uses Sales Promotion
techniques at some stage of the product life cycle since sales promotion techniques provide
a strong incentive to BUY!
Consumer oriented
Sales force oriented
Retailer oriented
Sales promotion campaigns make the job of the sales team much easier. Thanks
to the offers and sales, customers are positively inclined towards buying a particular
product.
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Some of the commonly used Sales Promotion tools include:
Free Samples, Coupons, Lucky draws, games and contests, Cash Refund offers, Free
Trials, Tie In Promotion, Point of Purchase Displays etc
Sales promotions are short-term marketing techniques used by a manufacturer for a specific
purpose, like increasing market share or to encourage sales during off-peak periods. Sales
promotions are often one component in an advertising or marketing campaign. A variety of
sales promotion tools are available, such as price reductions, product giveaways and special
trial periods.
1. Free Samples
Free samples are a no-risk way for a customer to try a new product before making a buying
decision. A common method used by manufacturers is to send a small package of a new
laundry detergent to households via postal mail. The manufacturer typically includes coupons
as a way to encourage purchases in the future.
Promotional Periods
A promotional period allows a customer to use a product for free for a specified period of
time, such as 30 days. Television infomercials use promotional or guarantee periods as an
inducement to purchase a product. If the buyer takes no action to cancel the purchase or
return the product during the promotional period, the customer is billed automatically or a
charge is made to her credit card.
Point of purchase displays is used in retail stores to catch the attention of a shopper. The
selected products may be sale items but may also be seasonal or high-demand merchandise.
The displays are built in a prominent location such as on an aisle end or at the front of the
store near the entrance. The store may also place signs at the product's normal shelf locations.
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Sales
A sale is a reduction in the price of a product for a specified period of time. Sales are used by
manufacturers to gain new users or to increase market share. They also generate traffic in a
retail establishment. Sales can result in off-season purchases that normally would not occur,
such as a hardware store offering snow blowers at 50 percent off in the middle of summer.
Rebates provide customers with a return of their purchase price, such as when a cell phone
manufacturer offers a mail-in rebate for the purchase of a new phone. Coupons provide a
reduction in the price of a product and are applied during the sales transaction. Coupons can
be found in newspaper supplements or even on product packages.
1. Incentives
A prospective client may have a favorable impression of your business, but feel no urgency
about taking action. Without an incentive to make a purchase, he may be lured away by a
competitor or forget what you offer. Many sales promotion devices create incentives to act
right away. Common examples include limited-time-only price discounts, or buy-one-get-
one-free deals. In many industries, customers can also be incentivized by loyalty programs
that reward them for buying frequently or in large quantities, or both.
Excitement
Another purpose for sales promotion is to attract attention and create interest. Techniques like
contests or sweepstakes can set your business apart from competition and build excitement
around the chance to be a winner or just to join in a distinctive event. For example, buyers
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who would overlook a traditional display at your industry's trade show might be eager to visit
a booth where they could take part in a drawing for a car.
Some sales promotion devices are primarily intended for household consumers. Two of the
most common are discount coupons delivered to people's mailboxes or cell phones, and small
gifts with a purchase, known as premiums. But sales promotion also can help to build
distribution among trade buyers. For example, wholesalers might order in larger volume than
usual if you offer a rebate. Retailers might feature your brand in prime store locations in
return for a subsidy called a merchandising allowance.
To maximize the value of sales promotion, its features and timing should be carefully
integrated with other promotional tools. For example, while sales promotion and advertising
messages need not be identical, both must use images and spokespersons relevant to the
target. Contests and sweepstakes can be featured in publicity. Personal salespeople should be
well informed about sales promotion devices like loyalty reward programs, so as to reinforce
their value and encourage participation.
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Objectives of the Study
The present study has been undertaken with the following objectives.
To find out & Study different marketing and sales promotional strategy
adopted by HP laptop.
To know to which promotional strategy the consumer are giving more
response.
To find out the reason for decreasing/ increasing the sales of HP products.
To find out the competitive market for HP products.
To find out the effectiveness of sales promotion program in term of growth
over a period of time.
To find out the reasons of failure of marketing strategies if any
To suggest some selective measure to improve the effectiveness of sales
promotion strategies
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HYPOTHESES OF THE STUDY
Quality and features is the most important factor for the sale of laptop.
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SCOPE OF STUDY
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LIMITATION OF THE STUDY
Preparing this project report, still there were some limitations. These limitations are
unavoidable. Some major limitations which I faced while preparing this project are as
follows:
The main limitations of the study are:-
I was able to interact and analyses only 150 respondents which were very less to
know about perception of people in current market.
Owing to their pre perception some customers were unable to give a appropriate
answerer.
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METHODOLOGY OF STUDY :
Research is a careful investigation or enquiry especially through search for new facts in any
branch of knowledge.
RESEARCH DESIGN:
“A Research Design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure”.
Generally the Research Design can be conveniently described in 3 ways. They are,
SOURCES OF DATA
● Primary Method
● Secondary Method
PRIMARY DATA
The Primary data are those which are collected afresh and for the first time, and thus happen
to be original in character. The tools for collecting this primary data are by two types namely
Interview Method and Questionnaire Method.
SECONDARY DATA
The Secondary data are those which have already been collected by someone else and which
have already been passed through the statistical process in the company.
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SAMPLE SIZE
All items in any field of in query constitute a ‘universe’ or ‘population’. A finite subset of the
population gives a sample.The statistical units in the sample are called sample units. The
number of units in the sample is called the size of the sample. The brand awareness towards
the HP Laptop, 150 consumers & 50 retailers, distributers has been randomly selected from
the Nagpur city only.
SAMPLING PROCEDURE
Sampling is the selection of group with a view to obtain information about the whole is group
of persons that represents particular community. The sampling method used was random
sampling. This sampling method was used because of lack of time and lack of through
knowledge about the universe. The sample size. 150 consumers & 50 retailers,
SAMPLING TECHNIQUE
● Simple random sampling
RESEARCH INSTRUMENTS
1. Personal interviews: Schedulers where administered personally for Collecting the data.
2. Questionnaire : The questionnaire comprises of open ended questions and closed ended
questions.
● Bar charts
● Pie-charts
●Tables
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Chapter 2
COMPANY PROFILE
Type: Public
On the web: http://www.hp.com
Employees: 349,600
Employee growth: 7.7%
Officers:
Chairman: Raymond J. (Ray) Lane
(Hewlett-Packard Company, Palo Alto, CA, www.hp.com) The world's largest computer
company. HP was founded in 1939 by William Hewlett and David Packard in a garage behind
the Packard's California home. Its first product, an audio oscillator for measuring sound, was the
beginning of a line of electronics that made HP an international supplier of electronic test and
measurement instruments. Walt Disney Studios, HP's first big customer, purchased eight
oscillators to develop and test a new sound system for the movie "Fantasia."
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HP entered the computer field in 1966 with the 2116A, the first model of the series named HP
1000 a few years later. The 2116A was designed to gather and analyze the data produced by HP
instruments. Lasting nearly four decades, HP 1000 computers were used for process monitoring
and control, alarm management and machine monitoring.
In 1972, HP branched into business computing with the 3000 series, a multiuser system that
became well known for its high reliability, especially for that time. The successful 3000 family
has continued to be one of HP's major computer series. Also in 1972, HP introduced the first
scientific handheld calculator, the HP-35, obsoleting the slide rule and ushering in a new age of
pocket-sized calculators. In 1982, the first HP 9000 workstation was introduced.
HP's first personal computer was the Touch screen 150, a non-standard MS-DOS computer that
gained only modest acceptance. In 1985, it introduced its first completely IBM-compatible PC,
the 286-based Ventra model and has offered a variety of laptop and desktop PCs ever since.
In 1984, HP revolutionized the printer market with its desktop LaserJet printer, which has set the
standard for the industry. HP continues its leadership in this area with routine advances in
resolution, speed and price. It has become a formidable contender in desktop and network
printers.
In 1986, it introduced Precision Architecture, a RISC-based architecture for its 3000 and 9000
series product lines, which proved very successful. In 1989, HP acquired Apollo Computer, a
workstation manufacturer, and combined technologies to become a leader in the field of Unix-
based workstations.
HP sells over 10,000 different products in the electronics and computer field and has gained a
worldwide reputation for its quality engineering. In 1999, HP spun off its test and measurement
divisions into a new company named Agilent Technologies. The business units involved grossed
nearly $8 billion in 1998 and employed 45,000 people worldwide. Agilent is headquartered at
395 Page Mill Road, the site where Hewlett and Packard constructed their first building in 1943.
In 2002, HP acquired Compaq Computer. Since Compaq had acquired Digital Equipment
Corporation in 1998, the Compaq acquisition resulted in HP absorbing its major competitor
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going back to the early days of minicomputers and lasting for many years. In 2008, the company
acquired EDS, the largest computer services company in the U.S., creating a behemoth of more
than 300,000 people worldwide .
In 2011, HP acquired Palm and began to develop the Touchpad tablet computer based on Palm's
webOS (see Touchpad). In August 2011, HP announced it would spin off or sell the Personal
Systems Group, the $40 billion division that makes PCs. After a change of management, the
company reversed its decision to eliminate the PC division.
Customer loyalty
We earn customer respect and loyalty by consistently providing the highest quality and value.
Profit We achieve sufficient profit to finance growth, create value for our shareholders and
achieve our corporate objectives.
Growth
We recognize and seize opportunities for growth that builds upon our strengths and
competencies. .
Commitment to employees
We demonstrate our commitment to employees by promoting and rewarding based on
performance and by creating a work environment that reflects our values.
Leadership capability
We develop leaders at all levels who achieve business results, exemplify our values and lead us
to grow and win.
Global citizenship
We fulfill our responsibility to society by being an economic, intellectual and social asset to each
country and community where we do business.
Market leadership
We lead in the marketplace by developing and delivering useful and innovative products,
services and solutions
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Fast Facts:
Income us$ 9.677 billion organic growth for fiscal in year 2011.
Technology Leadership:
HP's three business groups drive industry leadership in core technology areas:
The Personal Systems Group: business and consumer PCs, mobile computing devices and
workstations
The Imaging and Printing Group: inkjet, LaserJet and commercial printing, printing
supplies, digital photography and entertainment
The Technology Solutions Group: business products including storage and servers,
managed services and software.
Growth:
HP is focused on three technology shifts that have the power to transform our customers'
lives and businesses.
Next-generation data center
always on, always connected mobile computing
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Revenue by segment, fiscal year 2010
Personal 35%
Systems Group
Enterprise 18%
Storage &
Servers
HP Services 16%
Software & 2%
Other
HP Financial 2%
Services
17
Revenue by region, fiscal year 2010
Americas 42%
(Canada/Latin
America 9%,
United States
33%)
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Earnings Per Share
Our goal is to be the world’s leading Technology Company. We will achieve this by:
We are pursuing our goal through a strategic framework that includes efficiency and targeted
growth, supported by a capital strategy that aligns people and development spending with our
goals.
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History of the organizing
The founders derived the name. The interesting fact is how exactly the name was decided
upon. Will and Dave could not agree on whether the name should be Hewlett-Packard or
Packard-Hewlett. They finally agreed to flip a coin to name their company. So simply the
flipping of a coin produced the name of the largest technology company in the world.
HP originally focused their efforts on creating a wide range of electronic products for
industrial and agricultural use. They eventually focused on high quality electronic test
equipment. This focus was continued well in to the 1990s.
HP made a name for them by making products that was the top-of-the line quality equipment
with features that were more accurate, sensitive, and precise than those of their competitors.
This technology breakthrough created a name within many industries as a brand to trust and
use.
One of most popular creations of HP is the precision audio oscillator, the Model HP200A. HP
was innovative in producing a small light bulb as a temperature dependent resistor in a vital
portion of the circuit. The new method of their product allowed HP to sell the component for a
cheaper price then other competitors. To this day, this is one of longest selling basic electronic
designs ever created.
One of their products is called the Model 200B oscillator. The Walt Disney Company
purchased The Model 200B and installed in theatres for the surround sound systems used in
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their production of the movie Fantasia.
With the creation of their products, a formula was designed to name the products. By
introducing, the naming product started the currently used pattern of the numeric alpha names.
An example of this process is a first test product would be called 100A, the proceeding
products, as updated and upgraded would then be named 100B, using letters up to E for
names. This process of naming product lines is also used with supplies, accessories, software,
and components.
In the early 1960’s, HP began producing a range of semiconductors used mainly for internal
use in instruments and calculators. HP joined forces with Sony in Japan to develop several
high quality products. This venture was not profitable since the costs were too high. The joint
venture did lead to a partnership with Yokogawa Electric as a result. In 1999, HP bought the
shares of the partnership to become the full owner of the partnership.
HP began to experiment with the concept of specialized digital equipment such as the
microcomputer. This design was used for over 20 years and managed to survive several
attempts to replace the design. With this experiment was created the basis for the Intel x86
processor which is still the design used today.
In the 1970’s came the creations of the business computer server. The HP 3000 server was
only retired recently and replace with newer technology. The HP 2640 series of smart and
intelligent terminals was the founding creation for the ASCII terminals and the currently used
screen labeled function keys used on gas pumps and bank ATMs. Although at the time this
process was thought to be a lost cause, it projected HP past IBM as the world’s largest
technology vendor in sales terms.
The HP name has gained recognition for the quality of their products and services, which
surpass standards of their competitors in the majority of every market.
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With modest beginnings, the company is now the largest technology company in the world.
BOARD OF DIRECTORS
Raymond J. Lane
Executive Chairman since 2011
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AN OVERVIEW OF LAPTOPS INDUSTERY
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industry represents a segment of the broader personal computer (PC) market, data regarding
the PC industry is also relevant in the analysis of the laptop industry.
Competitors and Industry Key Factors
The global PC market, including the laptop (portable) segment, is dominated mainly by the five
top competitors: Hewlett-Packard (HP), Dell, Acer, Lenovo and Toshiba in descending
order [15], and together they constitute approximately 60% of the total market share
(based on units shipped). In the top 10, Apple has been gaining market share compared
to Windows PCs and laptops, mainly due to its positive brand reputation. In terms of global PC
volume, HP is the leader (18.9%, 2008) followed by Dell (15.5%, 2008). Due to the netbook
segment, Taiwanese companies such as ASUSTek and MSI have increased their market share
tremendously over the past two years [16]. In order to remain competitive, all of the top
manufacturers share certain characteristics, or key success factors (KSF). Efficient production
and distribution capability is one of these key success factors. Due to the reduction in
ASPs of laptops (and PCs), the industry is becoming more commoditized. Therefore the
primary means to reduce production costs lies in process improvement from procurement
to production and supply chain. This is possible by exploiting the benefits from mass
production: more bargaining with suppliers, better global distribution networks, cheaper
production facilities in foreign countries, etc. Innovation and the ability to identify
consumers’ needs are key success factors as well. Moreover, the effect of these success factors
has led to a consolidation in the computer industry, with the largest firms becoming bigger. For
instance, the top five firms which represented 50% of the market share in 2007 now account for
60% in 2008. (Figure 8) [9]
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MARKET SHARES OF VARIOUS MEASURE PLAYERS IN THE INDIAN
LAPTOP ( 2001-2011)
HCL
Compaq
8.4% Zenith
7.9% IBM
Acer
57.5% 7.0%
Hewlett-Packard
4.2% Wipro
3.7% Vintron
Siemens Nixdorf
1.0% 3.5%
1.6% 3.3% Dell
1.9%
Others*
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CHAPTER-3
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THEORETICAL
BACKGROUND
One of the most difficult marketing decisions facing companies is how much to spend on
promotional John Wanamaker, the departmental - store magazine, said, "I know that half of my
advertising is wasted but I don't know which half."
Thus it is not surprising that industries and companies vary considerably in how much they
spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in
cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a
low and high spending companies can be found. In this a specified sales percentage is decided
for the promotional budget Advantages of this method :
First, its use means that promotional budget vary with what a company can afford.
Second, it encourages the management to think in terms of the relationship among
promotion costs, selling price, and profit per unit,
Third, it encourages the competitive stability to the extent that competing firms spend
approximately the same % of their sales on promotion.
Inspite of the advantages, the % sales method has little to justify it. Its reasoning is circular : It
views sales as the determiner of the promotion rather than as a result. It leads to budget setting
by availability of funds rather than by marketing opportunities.
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• Competitive Parity Method :
Some companies set their promotional budget to achieve share-of-voice parity with other
competitors. Two arguments are made in support of competitive parity method. One is that the
competitors expenditure represents the collective wisdom of the industry. The other is that
maintaining a competitive parity helps prevent promotional wars.
Neither argument is valid. There are no grounds for believing that competition knows better what
The objective & task method calls upon marketers to develop their promotion budgets by
defining their specific objectives, determining the task that must be performed to achieve these
tools :
• Advertising
• Sales Promotion
• Sales Force
• Direct Marketing.
Whatever method a company adopt for promoting its product it must be from above mentioned
method.
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What is Sales Promotion ?
Promotion is the final element in the marketing mix. After the nature of product is decided, its
price fixed and the methods of distribution decided, the manufactures has to take effective steps
in meeting the consumers in the markets. In the present consumer oriented markets it is the duty
of manufacturers to know what is required by the consumer. It is also their duty to make the
customers know where, when how and at what prices. The products would be available.
Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity :
3. Activities other than personal selling and advertising such as point of purchase display
(P.O.P.) show and exhibitions, demonstrations and other non securing selling efforts. This form
1. Pull Blend.
2. Push Blend.
1. A pull blend is one in which mass impersonal, sales efforts are given the greatest emphasis.
The purpose of pull blend to pre-sell to the final consumers. So that they demand the product at
the retail level of distribution. The firm adopting this strategy would spend more on advertising
and sales promotion rather than in personal selling. These efforts pull down the product from the
manufacturer.
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2. A push blend emphasizes personal selling. Naturally firms adopting this method develop a
strong sales force at both the distributor and the dealer level. This method would tends to push
which includes only transfer of title or personal selling. Promotion on the other hand is broader
in its outlook and includes a variety of activities used ultimately for increasing sales volume.
persecution and influence. Promotion has come to mean the over all co-ordination of advertising
selling, publicity and public relations. Promotion is a helping function designed to make all other
marketing activities more effective and efficient. But sales promotion as such helps only the
selling activity still, there exit same difference of opinion on the real connection of the term sales
promotion.
Sales Promotion and Advertising
There is no universally accepted distribution between these two terms. To same advertising
includes all forms of mass media communication directed towards influencing the end consumer.
Sales promotion on the other hand, includes the form of mass communication directed towards
information and influencing the channel of distribution (e.g. distributors, retailers etc.). Hence a
price of product literature distributed by retailers in sales promotion. These sales promotion
merges on one side in to advertising and on the other in to personal salesman ship. It is
concerned with the dissemination of information to whole salers, retailers, customers (both actual
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Sales promotion is concerned with the creation. Application and dissemination of material and
techniques that supplement advertising and personal selling. Sales promotion makes use of direct
mail, catalogues, trade shows, sales contests, premiums, samples, windows displays and other
aids. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain
brand to make consumers more eager to buy that brand. Personal selling and advertising do
include prospects to make these decisions. Sale promotion provides an extra stimulus.
etc. are distributed to sub dealer for display purposes this is in fact a method of advertising.
demonstration for the companies product. A personal demonstration is good to introduce a new
product at its peculiar advantage can be high lightened and the consumer’s doubt clear. It can be
used to restimulate an old product. A good demonstration with a great dealer of action will draw
heavy crowds in to the store and will attract attention to the product.
products of an company. Usually these are arranged along with trade fair and exhibition. Besides
effecting sales these shows impress the company’s name generally on the public.
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These are given directly to the consumer these coupons are in most cases kept inside the
package. The consumers many receive a price reduction of the stated values of the coupon at the
time of purchase. The retailer receives reimbursement for the value of the coupon form the
manufacturer. Coupons act as a short run stimulus to the sale of the product, since they are
directly tied with the purchase of the item. They encourage the retailer to stock the product.
What is important is that a coupon offer does not spoil the named price of the brand nor does it
un pair the margin of the dealers. But it is not easy to measure the effectiveness of a coupon
offer. One over knows how many customer would have bought the product without the incentive.
It is also difficult to find out how many customers were held after the coupon offer expired.
This offer is intended to stimulate the sales during a slump season. In this method the customer is
offered a reduction from the printed price list. It is also used when a substitute for competing
Many experts on sales promotion fed that ‘Off Schemes’ are among the weaker and less
desirable methods of promotion. These can be trade resentment particularly when the retailer
raises the price to retain his margin. Secondly that is not conductive to building up brand loyalty.
Consumers may simply shift to the products that offer this scheme.
3. Samples :-
In the hope of converting a prospect into a customer a sample (Some quantity of the product)
may be given. This helps the consumer to verify the real quality of the product. Various pair
manufacturing companies offer this method. For developing brand loyalty this method is quite
useful. Sampling is a fast method of demand creation because one knows the result as soon as the
consumer has had time to use the sample and buy the brand.
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Disadvantage of Sampler :-
Offering sample in quit expensive. There is the cost of producing samples. The distribution costs
are also high. Sample have to be mailed to potential customers or to be distributed through retail
shops. There are also problems when the real product does not resemble the sample supplied.
An offer usually stated on the package is that manufacturers will return with in a stated period
part or all of the purchaser’s money if he is not completely satisfied with the product.
5. Trading Stamps :-
A premium in the form of stamps is given by the sellers to consumers while selling goods. The
number and value of stamp that the buyer receives depends on the values of the purchase. These
stamps are redeemable through premium catalogues at the stamp redemption centres.
6. Buy-Back Allowance :
This an allowance following a previous trade deal not offer a certain amount of money for new
purchases based on the quantity of purchases on the first trade deal. It extends the life of a trade
deal and helps to prevent part deal sales decline. It greatly strengthens the buyer’s motivation to
7. Premium :-
There are various forms of premiums provided by the manufacturer as sales promotional devices
Spoons, Cups, Measuring, Glass etc. and such other items are packed with the product in the box
itself. Factory in pack premium are particularly goods for product meant for children. The Binaca
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Toothpaste packs contain animal shape toys. These are very attractive and qutie popular among
the children.
The cost of the premium is collected from the buyer himself. But when the buyers pays for it he
has to pay only a considerably low price for the premium. This is possible for the manufacturer
purchases the items in bulk at a premium and his cost per unit as is substantially low.
Often this service is reciprocal the manufacturer may acquaint his dealer with the fact relating to
his production and prices while the dealer may familiarize him in return with the information
bearing on charges in the consumer's demand, their like and dislike complaints and criticism,
substitutes etc.
The gestures of regard and respect pave the way for better relation and co-operation.
Of all the forms of encouragement, the monetary incentive evokes immediate response. Hence
every producer must offer the most responsible terms of sale such as longer periods of credit and
Aggressive Selling
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Meaning :-
Goods are produced for market. Manufacturers have to make efforts to sell all they produce.
When the manufacturers uses various sales efforts to obtain increased sales volume for his
product it is called aggressive selling or offensive selling. The sales efforts which a manufacturer
makes to retain his customers i.e. to protect his already established market against against his
competitors is termed as defensive selling. In contrast to this aggressive selling is concerned with
the sales efforts made with the express objective of selling more by expanding the market for the
Aggressive selling is based on the answer to the question how much does the firm gain (in term
of sales with profit) by using this method defensive selling is based on consideration as to how
much the firm will lose if it does not use this method increase of sales can be obtained from two
sources:-
2. From the competitors i.e. those consumers who were purchasing similar product of
Acc. to H. Whitehead :-
"In case of an expanding market all the firm may stand to gain by following the methods of
aggressive selling but if the market is static manufacturer of a new market will have to be much
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2. When the manufacturer’s product is supervisor in quality to the product of the established
competitor.
3. When the total market for the product or line of product to expanding.
5. If the manufacturer has unused production capacity with heavy investment in plant and
equipment he will like to develop the demand for his product rapidly so that demand for his
6. When primary demand for a product must be created and provision must be made in the
channel of distribution to educate consumers regarding the new product and to instruct them in
its use.
Sales promotion efforts use for aggressive selling may be divided in two classes.
1. Trade Promotion.
2. Consumer Promotion.
1. Trade Promotion :-
Under trade promotion methods special incentives are offered to the trader to buy products of the
firm. Such incentive may take one or more of the following firm :-
Instead of giving any cash allowance extra product is given with each unit of product ordered.
For instance if a box normally contains 20 Cakes of Soap, special box contains 25 cakes may be
made and sold at the same price as that of the box of 20 cakes.
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(c) Gifts :-
2. Consumer Promotion :-
Under consumer promotion method special incentives are offered to the consumers to buy the
firms product. The more prominent amongst such incentives are as following.
(a) Coupons :-
A coupon of a giving value is sent to the consumer. By presenting this coupon to the retailer
consumers can purchase a particular product mentioned on the coupon at a reduced price. The
retailer sells the products mentioned. In the coupon to such consumer (consumers presenting the
coupons) under and agreement with the manufacturer at a price lower than the user retail price.
Thus the consumer get the benefit of reduced price to the extent of the value of the coupons.
Under this system, the firm offers an article at an attracting price if the consumer send a given
sum of money accompanied by a given number of box tops from the packages of a particular
product the benefit to the consumer is that he receives the articles at a bargain price.
Under this system a product is sold at a reduced price for a short period Bargain pack method
encourages new consumers to try the product. It is also helpful in obtaining large displays in the
shops.
(d) Sampling :-
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The method involves giving the product or a small quantity of the product to a consumer free
with the hope that the customer will be favourable impressed with its actual use and will
A firm selling new product or an extensively improved product finds this methods useful. Also a
firm whose market is hold by competitors whose free sampling almost expensive.
(iii) Hire purchase and installment payment methods of selling and by forming combination.
(i) Employment of ‘Missionary Salesman also known as Promotional Salesman’. These salesman
(ii) Instead of using wholesalers, the firm may develop its own sales force to call directly on
retailers.
(iii) The firm may follow a compromise method by employing a manufacturer’s agent and giving
him a large enough commission to encourage him to sell product intensively and aggressively.
(iv) New territory exploitation sales promotion has a particularly important role in developing
In fact, an ingenious sales manager can devise any number of incentives schemes for promoting
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CHAPTER-4
39
DATA ANALYSIS
AND
INTERPRETATION
40
Respondents
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No Yes
No
INTERPRETATION:
The main objective of asking this question is to find whether the respondent have ever used
a laptop or not even if they possess the laptop of their own or not. From this graph I found
that maximum respondent is using a laptop. Only few respondents are not using laptop.
It means laptop industry is growing day by day.
ANSWER RESPONDENT In %
H.P 49 33
Dell 58 39
Acer 18 12
Samsung 8 05
Toshiba 7 04
others 10 07
41
40%
35%
30%
HP
25% Dell
Acer
20%
Samsung
15% Toshiba
Others
10%
5%
0%
HP Dell Acer Samsung Toshiba Others
INTERPRETATION:
From this survey I found that most of the customer are using Dell laptop that is Dell is a
market leader in the laptop industry followed by HP . some small laptop company also
contribute a for few market shares.
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Causes
2%
17% 21%
Adv. & Promotional
schems
Affordable price
More features
Good service
29%
31% Others
INTERPRETATION:
In this question we got information about what are factor which influence the customers for
their purchase decision. Through the graph it is clear that, affordable price is more attractive
factor which is highly demand by customer’s .and then after followed by more features,
advertising and sales promotion schemes, good service were also very important while
making their final purchase decision but they contribute up to some extent
TV 87 58%
Internet 37 25%
Newspapers 18 12%
Others 08 5%
43
Medium of information
5%
12%
Tv
Internet
Newspapers
25% 58% Others
INTERPRETATION:
There are various sources to get the information about products and services .so from the
graph it is clear that for promoting a laptop TV plays a major role. After this internet is
another important medium for promoting laptop. Rest of medium also contributes up to
certain extent.
5. Comment on HP laptop.
NO. OF USERS
Price 0 17 89 44
Quality 7 19 69 54
44
Design 5 12 65 78
Warranty 11 20 30 89
Availability 0 10 45 95
100
80
60
Very poor
40 Average
Good
20
Very good
0
Price Quality Design Warranty Availability
INTERPRETATION:
From the above graph we can evaluate that each respondents have given there view in the
Price,quality design,warranty & availability about various factors of HP laptop. And it
divided into three categorys like very poor, average,& good.so that according to the graph
price, quality,design,warranty and avilability is good factors of HP laptop.
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Accessories 12 8
Promotional activity
50%
40%
30%
Cash divident
20%
INTERPRETATION:
In promotional activity there are various offers are given but as per survey I got
information that Free gift & goods is one of the good promotional schemes to attract the
maximum number of customers .rest of the promotional scheme that is cash dividend and
multiple pack is also good one to attract the some customer.
7. What are the attributes that influence you to decide which brand of laptop to keep?
46
Promotional scheme 22 15
Mobility/portability 05 04
Different attributes
4%
15% 22%
Brand name
Warranty & service
7% Resonable price
Quality & stability
Promotional scheme
21% 31% Mobility/portability
INTERPRETATION:
On the above graph the attributes that influence a retailers well as customer to keep a
particular brand of laptop is warranty & services which play a major role. Customers and
retailer is agree with this point.
And then after brand name, reasonable price, quality & stability, promotional schemes
and mobility is also contribute to certain extent for increases the sale of laptops.
Q-8. According to you what are the factors that HP should improve to increase the sale of
Laptop?
Answers Respondents In %
47
Service 84 56
Availability 10 07
Price 20 13
Quality/feature 36 24
Service
60%
Availabi
50% lity
Price
40%
Quality/
30% Feature
20%
10%
0%
Service Availability Price Quality/Feature
INTERPRETATION:
From the above data we found that most customers are agree with service factors that is
necessary for increase sale of any laptop
Quality& features, Price, also important up to certain extent in increase in sale of laptop.
ANSWER RESPONDENTS In %
Cash dividend & coupons 10 20
Free gift & goods 30 60
Scratching card 06 12
48
Jumbo or multiple packs 04 8
all of these. 0 0
promotional strategies
70%
60%
50%
Cash divident &
40% coupons
Free gift & goods
30%
20% Scratching card
10%
Jumbo or multiple
0% packs
Cash Free gift & Scratching Jumbo or All others
divident & goods card multiple
coupons packs
INTERPRETATION:
Above data indicate that free gift & goods is the major part of promotional strategy
adopted by HP
Cash dividend, coupons & scratching card promotional strategy are also adopted by HP
up to some extent. But they are not as effective as free gift & goods.
ANSWER RESPONDENTS In %
Cash dividend 12 24
Free gift & goods 32 64
Jumbo or multiple pack 04 8
49
Scratching card 02 4
Pramotional strategy
70%
60%
50%
40%
30%
20%
10%
0%
Cash divident Free gift & Jumbo or Scratching card
goods multiple pack
INTERPRETATION:
From the above graph mostly customers prefer free gift and goods promotional strategy
while cash dividend is also prefer by some customers other has no significant value.
11. Which Medium of sales promotion strategy mostly effective for laptop industries?
Response No of respondents In %
TV advertising 23 46
News papers 11 22
Outdoor advertising 03 06
50
Internet 09 18
Magazine 04 8
Direct mail 02 04
Medium of promotion
50%
45%
40% Tv
35% advertising
30% News
papers
25% Outdoor
20% advertising
Internet
15%
10% Magazine
5%
Direct mail
0%
Tv News Outdoor Internet Magazine Direct
advertising papers advertising mail
INTERPRETATION:
It is clear from above graph television is very effective medium for sales promotion
strategy in laptop industry
News paper and magazine medium also contribute to certain extent in sales promotion
strategy.
12. According to you which company’s advertising are more creative and appealing?
Companies Respondents %
HP 12 24
Dell 17 34
Sony 15 30
51
Acer 06 12
All of these 0 0
Others 0 0
Different companies
35%
30%
25% Hp
Dell
20%
Sony
15% Acer
0%
Hp Dell Sony Acer All of others
these
INTERPRETATION:
According to the above graph Dell advertisement is more creative and appealing which
occupy first position in the market according to survey.
And then after Sony and HP laptop advertisement is second and third position in creative
and appealing.
Causes Respondents In %
Good services 24 48
52
More features 12 24
Affordable price 08 16
Good looking 06 12
Causes
50%
40%
0%
Good More Affordable Good
services features price looking
INTERPRETATION:
From the above graph good service is most important reason for increases the sale of HP
laptop
And more feature, affordable price & good looking is also some creative factors for
increase the sale of HP laptop .which also play a supportive role in the increase of sale of
HP laptop.
Causes Respondents In %
53
Poor promotions 27 54
More price 16 32
Bad services 07 14
Others 0 0
Causes
60%
50%
Poor promotion
40%
More price
30% Bad services
Others
20%
10%
0%
Poor promotion More price Bad services Others
INTERPRETATION:
From the above graph poor promotion is one of the reasons for decreasing the sale of HP
laptop
More prices, is also causes to affect the sales of HP laptop. As compared to other laptop.
15. According to your opinion with respect to the laptop which is closest competitors of
HP?
Competitors Respondents In %
Dell 22 44
54
Acer 06 12
Sony 10 20
Lenovo 05 10
Samsung 07 14
Others 0 0
Competators
45%
40%
35% Dell
30% Acer
25% Sony
20% Lenovo
15% Samsung
10% Others
5%
0%
Dell Acer Sony Lenovo Samsung Others
INTERPRETATION:
From the above graph we can evaluate that major competator of HP laptop is Dell from
the retailers point of view
Sony, Samsung & Acer also give some challengage to HP laptop.
16. To find out the effectiveness of sales promotion program in term of growth over a
period of time.
Year Growth
2004 45.44
2005 52.12
55
2006 58.79
2007 62.42
2008 65.13
2009 65.1
2010 54.9
2011 61.49
58 54.9
56 52.12
54
52
50
48 45.44
46
44
42
40
2004 2005 2006 2007 2008 2009 2010 2011
INTERPRETATION:
In the above graph we it clear that every year HP was increasing their revenue since 2004
to 2011 revenue except year 2010 . there are multiple factor that contributing for
decreasing the revenue of HP LAPTOP like promotion, competitior,etc.
56
Majority of the respondents are aware about HP laptops.
There are many other laptop manufacturing companies such as Acer, Dell, Sony, Lenovo,
and Toshiba which are also offer attractive features in a laptop such as new technology,
good design, and light in weight and even after sales service to consumers. This laptop
manufacturing companies are giving tough competition to HP in laptops.
Majority of the respondents are not satisfied with the service, feature and quality of HP
and at the same time they are satisfied with, Price, design, and availability of HP.
Majority of the respondents feels that latest technology is an important factor and they are
even ready to pay somewhat extra amount for that.
Through survey I found that Dell, Acer & Sony, are the closest competitor of HP.
I also found that good service and poor promotion are the main cause of increasing &
decreasing of sales of HP.
CONCLUSION
57
As survey on sales promotion activity adopted by HP i.e. how much consumers are aware about
HP laptop. I have conducted a survey through questionnaire and got information about what
respondents feel about HP. From this survey
I have concluded that from the analyses that maximum of respondents have used
laptop at least once of any brand.
Majority of the respondents thought that quality & price is most important while
purchasing a laptop.
.
Majority of the respondents are aware about HP laptops.
Different things came in the mind of consumers while hearing name of HP such
as Shahrukh Khan, quality, design, price, technology, speed, style HP tag line.
Some time HP promotional strategy is not effective so, that HP should make good
strategy against competitors.
SUGGESTION
58
HP should undertake necessary steps regarding advertising and publicity of its product.
Without advertising and publicity they will not be able to create people aware about their
product and increase their sales.
HP should also increase the availability of their product. Through this survey found that
respondents are not satisfied with the availability of HP.
In laptop industry, every manufacturing company try to introduce something new features
and provide consumers what they want, it can be new technology or anything. It is
always challenging for any company to introduce something new and survive in the
market.
They can also provide as many accessories as they can to attract consumers.
More features low price & batter services are one of the factors to attract the customers.
Warranty & service is also important factors which attract the customers.
BIBLIOGRAPHY
59
Book referred
• Web site:
www.hp.com
http://www.hp.com/us/en/hp-information/about-hp/history/history.html
http://www.hp.com/us/en/hp-information/about-hp/index.html
www.Industryweek.com
www.marketingst
ANNEXURES
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Name of customer occupation
Address __________________________________________
__________________________________________
Phone No. ________________________________________
Q-01. Are you using laptop?
a) Yes b) NO..
Q-02. Which brand of laptop do you prefer?
a) HP b) Dell c) Acer
d) Samsung e) Toshiba f) other…….
Q-03. Why do you prefer it?
a) Adv. & promotional schemes b) Affordable price
c) More feature d) Good service
e) Others…..
Q-04. From where you get information about laptops?
a) TV b) Internet
d) Newspapers d) Others……..
61
Q-06. According to you which promotional activity is more attracting?
e) Accessories
Q-07. What are the attributes that influences you to decide which brand of
Laptop to keep?
Q-08. According to you what are the things that HP should improve in their
Laptop?
a) Service b) Reasonable price
b) Availability d) quality or feature
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QUESTIONNAIRE FOR RETAILERS
Q- 01. What are the different promotional strategies adopted by HP laptop?
63