Professional Documents
Culture Documents
ON
Market Penetration Strategies Of HCL
SUBMITTED BY:
ABSTRACT
2. Company History 15
3. Research Methodology 20
3.1 Objective Of Study
3.2 Research Problem And Research Design
3.3 Data Collection
5. Marketing Strategy 36
9. Conclusion 59
10. Bibliography 61
11. Questionnaire 62
Acknowledgement
HCL Insys chosen platform of total technology integration lends itself to some
very significant alliances with the global leaders. Among its partner are HP for
high end AISCE/UNIX services and workstation and HP Open view network
management solution.
Intel for PC and PC server building blocks; Microsoft, novell and SCO AG
solutions.
Red hat.
Linux.
Samsung.
Pivota for CRM solution and ORACLE Sybase and Informix for RDBMS
platform.
Today the company has aligned its operations into five entities that offer
seamless linkages for the customers seeking entry into the wired world through
total the Integration solution and services.
HCL Infosystems focuses on the ever-growing segment in Imaging, Telecom
and Communication products solutions and services. Now it has an exclusive
sale and support partnership with Toshiba Corporation, Japan, for sales and
servicing of its imaging and photocopier products. HCL Infosystems product
portfolio covers a range of other office
automation and communication products through alliances with world leaders.
The Managed Network Service offerings for corporates include VPNs, ASP
offerings, Co Location/ hosting, CDNs, security, corporate internet telephony
solutions, technical and consumer help desks, 24/7 Network Operations Centre
monitoring and a host of value added networking services. Consumer services
include dialup PSTN/ISDN Internet access.
OVERVIEW
The graph of sales of these respective product lines is the best in the industry as
compared to their competitors. I did my summer training project at HCL
Infosystem Ltd. Chandigarh, where I found all the professionals are very much
committed to their work as well as they were all professionals enough. This
helped me a lot in getting a good deal of exposure. As I had to consult the
Channel partners, I felt myself, in the beginning, in a bit problem. But the
cooperation of my superiors at the work induced confidence in me to deal with
my problems whenever they came.
Marketing must identify, evaluate, and select market opportunities and lay down
strategies for achieving eminence if not dominance in target markets. “the air of
marketing is to make selling superfluous.” …marketing’s task is to discover
unmet needs and to prepare satisfying solutions.
Marketing cannot be equivalent to selling because it starts long before the
company has a product. Marketing is the homework that managers undertake to
assess needs, measure their extent and intensity, and determine whether a
profitable opportunity exists. Selling occurs only after a product is
manufactured. Marketing continues throughout the product’s life, trying to find
new customers, improve product appeal and performance, learn from product
sales results, and manage repeat sales.
Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In
1978, HCL developed the first indigenous micro-computer at the same time as
Apple and 3 years before IBM's PC. During this period, India was a black box
to the world and the world was a black box to India. This micro-computer
virtually gave birth to the Indian computer industry. The 80's saw HCL
developing know-how in many other technologies. HCL's in-depth knowledge
of Unix led to the development of a fine grained multi-processor Unix in 1988,
three years ahead of Sun and HP.
HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent
into the software services arena. During the last eight years, HCL has
strengthened its processes and applied its know-how, developed over 28 years
into multiple practices - semi-conductor, operating systems, automobile,
avionics, bio-medical engineering, wireless, telecom technologies, and many
more.
Today, HCL sells more PCs in India than any other brand, runs Northern
Ireland's largest BPO operation, and manages the network for Asia's largest
stock exchange network apart from designing zero visibility landing systems to
land the world's most popular airplane.
HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its
origins in 1976. For over quarter of a century, we have developed and
implemented solutions for multiple market segments, across a range of
technologies in India. We have been in the forefront in introducing new
technologies and solutions.
Vision Statement
“It is the most preferred employer and principal taking leading edge IT products
and services to the masses through sustained excellence.”
Mission Statement
“We shall increase the shareholders value by improving the PAT through free
cash flow, reducing the BR cycle, inventory levels, wastage.”
HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its
origins in 1976. For over quarter of a century, we have developed and
implemented solutions for multiple market segments, across a range of
technologies in India. We have been in the forefront in introducing new
technologies and solutions. The highlights of the HCL saga are summarized
below:
1986 :The company was established on 17th April. The object of the company
is manufacturing of and leading in complete range of Mini Computers Micro
processor based systems, Electronics Instruments, Micrographic and
reprographic equipment and manufacturing and marketing of electronic EPABX
systems and electronics Teleprinters.
1989: The company entered into an agreement with Hewlett Packard of US for
the sale and leaving of the Super Mini and Mainframe computers to be
manufactured by Hewlett in India.
1996: The performance was adversely affected due to rise in dollar exchange
rate, tight liquidity position in the market political uncertainty coupled with
deferment of capital expenditure by the Government Departments.
2000: HCL has launched a new range of PCs (Ultima and Elite models) under
its Beanstalk range of PC's at its Pondicherry plant. The Company entered into
an agreement with US-based In focus for distribution and technological support
of the latter's data and video projection products in the country.
HCL Infosystems Ltd. has launched the Nokia professional Centre (NPC) in
Chennai as part of the expansion program to open Nokia centers in India which
will enable customers to choose the right model and accessories suiting their life
style.
HCL Infinet, the Internet start-up of HCL Infosystems, and media group, Asian
Age, have set up a joint venture called Asian Age Infinet. HCL Infosystems Ltd
has launched in India the Swedish major Ericsson's Generation X Business
communication too, "Next Call Centre". HCL Infinet Ltd., the Internet services
subsidiary of HCL Infosystems, has tied up with UBS Publishers' Distributors
Ltd., one of the largest distributors of books in the country, to sell books online
through its soon-to-be-launched portal. HCL Infosystems has entered into a tie-
up with Broad Vision for providing personalized e-business applications to is
clients.
2001:HCL Infosystems and Intel have jointly launched an e- business solutions
program, targeting new market opportunities in segments such as Internet
service providers, application service providers, banking and finance.
HCL InfiNet Ld., the Internet services subsidiary of HCL Infosystems, has
launched an authenticated payment gateway for its portal, www.hclinfinet.com,
in association with Citibank to enable customers to carry out secure transactions
online including buying Internet access. HCL Infosystems is setting up a
managed off-shore development centre at its NOKIA software development
facility for Stretch Systems -- the Singapore-based IT systems and technology
developer.
2002: HCL Infosystem joins hands with Sun Microsystems India to provide
end-to-end solutions to business. HCL Infosystem says it is the No.1 PC Co in
India in 2001.
2003: HCL Infosystem receives the project to completely automate the Value
Added Services (VAT) of Andhra Pradesh.
2004: HCL Infosystem forays into digital entertainment sector HCL touches one
lakh milestone in desktop sales HCL Infosystem ties up with Union Bank
PC Manufacturing
PC manufacturing plants are located at Pondicherry, which gives following
strategic advantages:
• Proximity to Chennai port and proximity to vendors
• Tax benefits
• Established outward transport network
• Economical & skilled labour
Title of Study
The title of the study is “Marketing penetration Strategy of HCL for
CHANDIGARH Region an analysis & prognosis”.
According to the title the research problem is “What are marketing strategy &
sales promotion techniques of HCL for retailers in market”.
Type of Research
Exploratory Because I am this research I am exploring the strategies of
company.
Management Objective
To fuel initiative and foster activity by allowing individuals freedom of action
and innovation in attaining defined objectives.
People Objective
To help HCL Insys people share in the company’s success, which they make
possible; to provide job security based on their performance; to recognize their
individual achievements and to help them gain of satisfaction and
accomplishment from their work.
Core Values
RESEARCH PROBLEM
1. HCL Corporate selling and feedback and market share of HCL and compared
to other IT companies.
2. The business of HCL and the company through its researchers wants to know
the potential in order to expand and retain its market share.
RESEARCH DESIGN
Determined the Information Sources: The researcher gathered data through
secondary sources.
PRIMARY DATA
Is collected through questionnaire, search and research through place where
today's computer has been mostly used.
SECONDARY DATA
Is being search sites like magazines, newspapers, journals, websites and the data
has been collected through other approaches
DATA COLLECTION
The researcher collected information through the official websites, magazines
and journals.
NATURE OF STUDY
The project on which the researcher worked is descriptive and inferential in
nature
DATA SOURCE:
The researcher took the help of both primary as well as secondary sources.
Secondary sources being interaction with various IT people of the selected and
has been chosen for the research by the researcher. Secondary sources being the
internet as the medium and the official sites of the companies of IT sectors and
corporate selling and feedback of HCL.
Instrument Used
The researcher for the research used a Questionnaire cum Schedule for market
research for both the segments horizontal and vertical. The Questionnaire was
prepared by the researcher and Schedule was provided by the company in which
the researcher did its research report.
The researcher for the research used a Questionnaire cum Schedule for market
research for both the segments horizontal and vertical. The Questionnaire was
prepared by the researcher and Schedule was provided by the company in which
the researcher did its research report.
SAMPLE SIZE
Sample size for the research is fixed. It counts to 50. That is the HCL
companies and corporate selling and feed of HCL in comparison between other
IT sectors.
DATA ANALYSIS & GRAPHICAL DATA INTERPRETATION
The pie charts and bar graphs below indicates the profile of the 50 respondents
that were surveyed:
18-25
20%
46%
34%
25-40
40 and above
20k-40k above
36% hcl
46%
hp
ibm/lenovo
From the pie chart it is very clear that majority (46 percent) of the total
respondents own a computer from Hewlett Packard, followed closely by HCL
Infosystems (36 percent). Thus, HP was found to be a leader in consolidated
market share of PC and Laptops in the city.
Satisfaction level of the customers of different brands
others
9% 9%
36% hcl
46%
hp
ibm/lenovo
Major reason of dissatisfaction
poor service
40%
60%
poor performance
The major reason for dissatisfaction is as shown in the graph above. The major
reason for dissatisfaction is poor service (60 percent) and poor performance (40
percent)
20%
50%
30%
magazine
newspaper
As is evident from the graph majority of users (100 percent) and non-users seek
Magazines and Newspapers for getting information about latest sales promotion
offers. This gives an insight that the media that can be effective in conveying
sales promotion offers is print media (magazines and newspapers). If we look at
another feature that has been brought out by the survey is the fact that majority
of people buy by looking at a feature in newspaper.
The most successful offer
45%
55%
discounts freebies
From the bar chart we can ascertain that majority (55 percent) of those who bought a
computer/laptop when there was a sales promotion offer did so by getting attracted to
“Price Discounts”. Freebies or free gift offers were also quite successful in raking in
customers to buy. Thus it can be said that price discounts are a hot favorite amongst
buyers of IT products and services as an incentive to buy.
always
13%
13% 27%
sometimes
47%
cant say
never
74 percent of the respondents were positive about buying when there was a
price discount offer, whereas 72 percent were positive about buying when there
was a freebie attached to the offer.
always
13%
20%
67%
sometimes
never
From the graph we can interpret that 67 percent of the total respondents feel that
the dealer always influences them when they buy a computer or IT product.
Reason why computer/laptop/IT product is bought/upgraded
Change in technology
13%
agree disagree
20%
67%
cant say
From the graph we can say that IT product users are divided over whether
Change in technology is a reason for them to upgrade their computers. On the
contrary, for the first time buyers, change in technology is a definite reason to
buy .This shows that change in technology is a factor highly considered by non-
users who are planning to buy soon
On Requirement Base
agree disagree
25% 25%
50%
cant say
Majority of users and non-users (45 percent and 50 percent) disagree to the fact
that mandatory requirement is a reason to by or upgrade the PC/laptop. This
ascertains that mandatory requirements at workplace for upgrading or buying
are not a strong reason to buy/upgrading a PC/laptop at home
36%
64%
agree disagree
As evident from the graph both users and non-users find “Promotional Offers” a
strong reason to buy a computer/laptop. Thus it is quite clear that promotional
offers are a definite incentive to buy for the customers
27%
73%
branded assembled
It was observed that almost 73% of the people use branded computers or other
gadgets for their business purpose. Hence can be concluded that more people
want branded products as they are not ready to compromise with the quality and
services being provided.
ROLE OF ADVERTISMENT
Consumerism is the new word of today’s market. Market belongs to the
consumers and he is the king. His tastes and preferences have undergone a big
change. When a new product enters the market it needs a lot of promotion.
Promotion can be done by different ways. For promoting a product whether it is
raw material or finished product, a lot of things have to be done like free offers,
introduction of products in the market. In old days, people generally have a very
limited choice. There was no much variety. There were also limited means of
advertisements. Technology was not much developed. The only means of
advertisement was through radios or newspapers. Now, more modern means
like television and computer have come in every house. This is a great means to
advertise articles whether it is clothes, television, consumers good or any other
accessories. An advertisement is a means to promote a thing. There are various
ways of advertisements like putting hoardings on the walls near residential areas
or ad on radios or television. The budget and the sources decide which will the
best medium to advertise for a company.
MARKETING STRATEGY
Mr. Paul added, "As part of our strategy to sustain the number one slot, we plan
to introduce new products that have been designed bearing the customer needs
in mind. We hold numerous user meets across the country every year to get
customer feedback and these new launches are a result of this painstaking, yet
rewarding exercise,"
HCL Insys, a technology integrator, offers its customers technology solutions
across multiple platforms. This is as a result of its expertise in developing state-
of-the-art indigenous enterprise solutions; understanding of the networking
technology; its design capabilities in product engineering; integrating diverse
hardware components and its access to specialised technology for turnkey
projects through partnerships with various world class players. With a definite
and distinct focus on enterprise solutions and personal computers, HCL
Infosystems (HCL Insys) has direct customer service centres at 143 locations, 6
software export factories and a state-of-the-art manufacturing facility.
Price: HCL Infosystem Ltd adopts a strategy to sell their product on DGS&D
rate contract these are the government approved rate contract. So there is no
doubt in government purchases.
Features: Within the given product module, company introduce best business
communication technology ie. IP PBX. it consist number of feature.
HCL Insys has five overseas business entities in US, UK, Australia, Singapore
and Malaysia. HCL Insys manufacturing process are ISO 9001 certified, while
its software development processes have achieved SEI CMM Level 4. The
company has recently set up an Internet subsidiary called HCL Infinet Limited
that will provide value added Internet services in the B2B and B2C areas. With
a mission statement to provide world-class information technology solutions
and services to enable its customers to serve their customers better, HCL Insys
is setting new standards of information technology in India
With prices of PCs being slashed, the education sector is expected to see a high
demand for personal computers. Consumers are shifting their focus of PC
computing from an average system to one that is closer to a high-end system
and upwards. The need for the most powerful multimedia computers is
increasing.
Linux might gain ground in the government and defence sectors. Customers,
both in the consumer as well as in the commercial space will demand better
service levels from vendors.
Service and support is going to be a critical aspect of vendor strategy.
Depreciation period of IT products should be reduced to further boost growth.
The desktop space will see more and more entertainment-oriented features
getting integrated into the normal PC. The enterprise space will witness more
stress on security, TCO, manageability and multiple levels of redundancy,
among others Companies, which will offer affordable innovation will gain
market share. Unicode will drive PC penetration into rural markets
PRICES DO AN ABOUT-TURN
Immediately after this year’s Budget, most PC vendors said PC prices would
remain constant, and some even pointed out that prices would rise, thanks to
increasing memory prices. That should be one of the key differentiators between
last year and the financial year ahead PC prices are not likely to come down,
and in all probability, will actually see marginal rises
While the move to B & C class cities attracted attention, the biggest buyers of
PCs pretty much remained constant, and they’re expected to continue to be the
saviours of the beleaguered PC industry this year too. The honours go to the
government both at the Centre and the states, and the banking and financial
sector mainly PSU banks. Another segment expected to contribute significantly
to PC buying this year is the telecom sector. Retail’s still in vogue.
Mobile computing is also expected to have some effect on the PC market in the
coming year. And in many ways, this may just be the beginning of things to
come in the Indian PC market.
HCL
D EL L
SAHARA
SONY
Sony's Story
It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of
passionate and committed group of employees started to build “Tokyo Tsushin
Kenkyujo” (Totsuko), or “Tokyo Telecommunications Research Institute” to
the billion dollar global conglomerate that it is today.
It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of
passionate and committed group of employees started to build “Tokyo Tsushin
Kenkyujo” (Totsuko), or “Tokyo Telecommunications Research Institute” into
the billion dollar global conglomerate that it is today. The main objective of the
company was to design and create innovative products which would benefit the
people.
From early attempts at creating products like the rice-cooker to the later success
of creating Japan’s first magnetic recorder, the innovative company went on to
create other hit products which won the company widespread recognition and
international acclaim as a truly global company known for its quality and
innovative products. Significant product milestones included Japan’s first
transistor radio (1955), Trinitron colour television (1968), Walkman personal
stereo (1979), Handycam videocamera (1989), PlayStation (1994), Blu-ray Disc
recorder (2003) and PlayStation 3 (2006).
The company name of Sony was created by combining two words of “sonus”
and “sonny”. The word “sonus” in Latin represents words like sound and sonic.
The other word “sonny” means little son. Used in combination, Sony is
supposed to represent a very small group of young people who have the energy
and passion towards unlimited creations and innovative ideas. With the far-sight
of expanding worldwide, it was in 1958 that the company formally adopted
“Sony Corporation” as its corporate name. Easy to pronounce and read in any
language, the name Sony, which has a lively ring to it, fits comfortably with the
spirit of freedom and open-mindedness.
SAHARA COMPUTER
DELL COMPUTER
For more than 20 years, Dell has revolutionized the industry to make computing
accessible to customers around the globe, including businesses, institutional
organizations and individual consumers. Because of Dell's direct model—and
the industry's response to it—information technology is more powerful, easier
to use and more affordable, giving customers the opportunity to take advantage
of powerful new tools to improve their businesses and personal lives
Dell has demonstrated this effect time and again as it enters new, standardized
product categories, such as network servers, workstations, mobility products,
printers and other electronic accessories. Nearly one out of every five standards-
based computer system sold in the world today is a Dell. This global reach
indicates our direct approach is relevant across product lines, regions and
customer segments
COMPAQ COMPUTER
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b) Fast paced and flexible work culture which provides its employees autonomy
to accomplish the task without much pressure from the higher authorities. Thus,
employees are motivated to give their best to the organization.
c) The core strength of HCL is the talent and innovativeness of its people
which enables it to provide the “right solution at the right time.”
d) The mass markets handled through a chain of dealers, resellers and retailers
which helps bring technology usage closer to the individual. It has very strong
distribution network.
i) Best-value-for-money offerings
WEAKNESSES:
a) After sales service.
OPPORTUNITIES:
a) IT industry booming at a rate of 45% every year.
d) Increasing competition.
e) Tie ups with various MNCs enable to extract their core competencies.
THREATS:
a) Local assemblers are biggest menace for the company.
HCL Infosystems has alliances with global technology leaders like Intel, AMD,
Microsoft, IBM, Bull, Toshiba, Nokia, Sun Microsystems, Ericsson, NVIDIA,
SAP, Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer
Associates, RedHat, Infocus, Duplo, Samsung and Novell.
These alliances on one hand give us access to best technology & Products as
well enhancing our understanding of the latest in technology. On the other hand
they enhance our product portfolio, and enable us to be one stop shop for our
customers
This model is important for anyone making marketing decisions. It forces the
marketer to consider the whole buying process rather than just the purchase
decision (when it may be too late for a business to influence the choice)
The model implies that customers pass through all stages in every purchase.
However, in more routine purchases, customers often skip or reverse some of
the stages.
Research suggests that customer’s value and respect personal sources more than
commercial sources (the influence of “word of mouth”). The challenge for the
marketing team is to identify which information sources are most influential in
their target markets.
The final stage is the post-purchase evaluation of the decision. It is common for
customers to experience concerns after making a purchase decision. This arises
from a concept that is known as “cognitive dissonance”. The customer, having
bought a product, may feel that an alternative would have been preferable. In
these circumstances that customer will not repurchase immediately, but is likely
to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to
persuade the potential customer that the product will satisfy his or her needs.
Then after having made a purchase, the customer should be encouraged that he
or she has made the right decision
Every project has some limitations even the researcher came across some
limitations while working on the project which made the analysis a little
inappropriate at times. Some of the basic limitations faced during the research
are listed below: Only limited number of government organization and banks
where it has been found 50 players was covered in the study.
Majority of those who have bought a PC/laptop and are planning to buy
consider “Promotional offer” as a definite incentive to buy. People who have
already bought a PC/laptop have done so during a “Promotional Offer” Non-
users consider sales and promotion offer as the most important attribute for
buying a computer/laptop
1.Majority of users believe that the only impact Promotional Offer has on the
Brand is “Increase its sales”
2.Majority of the non-users believe that Promotional Offers increase the
“Awareness about the product offering” of the brand.
3.The Brand Image is not enhanced by using “Promotional Offers” and they
only serve as a tool for increasing the awareness or sales of a brand as
ascertained from the survey.
4.The market share of the Hewlett Packard (HP) brand of computers/laptops is
the highest in Chandigarh, followed closely by HCL Infosytems in retail
segment
• HCL is having large number of channel partners but it is not supporting &
taking care all of them equally which results in increasing discontentment
among new channel partners because its not possible for company to support all
of them equally. Company should take some positive action against it.
From the survey many vital points were bought out in the forefront which if
implemented can help companies to improve their brand image. Many
companies have used promotional offers over the last decade and the proportion
of promotional offer budget as a percentage of the total combined budget has
been ever rising.
From these findings it can be ascertained that Sales promotion offers provide a
definite incentive to buy, but their impact on the Brand Image of an IT product
is still debatable. These findings give an indication that “Promotional Offers”
can be used for increasing the short-term gain but their application in building
brand image over a long term is limited Promotional tools that are most
successful are hence those which incentivize the customer immediately like
price discounts. Again from the minor findings we can ascertain that Print
Media the best media for communicating promotional offers, as this is the
medium in which people seek information while they are in the “Information
Search” mode of the consumer buying process.
BIBLIOGRAPHY
2.F. Kent Mitchel, Advertising/Promotion Budgets: How did We get Here, and
What do We Do Now, Journal of Consumer Marketing (Fall 1985): 405-47.
3.From Robert C Blattberg and Scott A. Neslin, Sales Promotion Concepts and
Methods, and Strategies, (Prentice Hall, 1990.
2.How did you get to know about the computer you are using now?
a. Newspaper
b. Television
c. Radio
d. Magazines
e. Others
3.What was the offer that you got when you bought your computer?
a. Discount
b. freebies
c. extended warranty
b On requirement basis
Strongly agree [ ] Agree [ ] Can’t say [ ] Disagree [ ] Strongly disagree [ ]
10. Where do you get the information about the latest offers?
a. Newspaper
b. Magazine
c. Television
d. Radio
e. Friends and Family
f. Others
11. Does the dealer have influence while buying any type of computer or IT
products?
Always [ ] Sometimes [ ] Never [ ] Can’t Say [ ]
12. Do you think that sales promotion offers has following impact on the brand
you use?
a. Increases awareness about the product
Strongly agree [ ] Agree [ ] Can’t say [ ] Disagree [ ] Strongly disagree [ ]
13. Which company do you think has the best sales offers?
a.HCL
b. HP
c. IBM/Lenovo
d. Acer
e. Zenith
f. Others
Gender
Male
Female
Family Income
8 K - 10 K
10K - 20 K
20K - 40K
40K and above