Gateway, Inc

GATEWAY, INC

NAME: PARTHIV JHONSAROLL NUMBER: 107COURSE AND DIVISION: EMBA (B)COLLEGE: MET

MARKETING

HISTORY Gateway was founded in September 5, 1985 (as Gateway 2000) at

sioux City, Iowa Its headquarters is at Irvine, California, USA Gateway Incorporated, an Acer Inc. subsidiary, is a

computer hardware company headquartered in Irvine, California, USA which develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, servers, and computer accessories

Till the year 2006 it was in FORTUNE 500 companies of U.S.A On September 4, 2007 Gateway announced that it had signed a

definitive agreement to sell its professional business segment to MPC Corporation but was then failed.

PRODUCTS

Previous products:

Camera, Plasma TV, MP3 Systems, Portable MP3 Players, Computers, etc.

Current products:

Netbooks, Notebooks, Desktops, LCD Monitors, All In Ones, accessories, Softwares ( Gateway game console, cyberlink power 2, etc.)

SWOT ANALYSIS OF GATEWAY, INC.

Strengths: U.S.A.’s Number One Computer selling brand, Durable, Latest Operating System, Fast, Customized, Less Expensive Than Others, Easy Avaibility of Drivers, Extended Warranty, Online Support System, Easy Up gradation.

Weakness: Huge Debt in Mid 2000’s, Low scale marketing, General People are Unaware of the Brand, products are outsourced to increase profitability but they are not the only ones who do that, R&D not effective.

SWOT ANALYSIS OF GATEWAY, INC Opportunities: Can Capitalize on its strengths,

Huge Untapped Market, They Have Various Products On Which They Can Innovate, Product for All the Categories of People.

Threats: Huge Competition in the Market, Can be Out of the Market if Promotion not done Properly, Manufacturers malfunctioning rate is high than some of the other companies like SONY, ASUS, TOSHIBA.

SEGMENTATION

The product can cater to all the Geographic Region (metros, cities, towns and also villages)

Can be for any age group from child to an old aged person (age group of 10+)

Can be purchased by any one from lower middle class to higher class people.

Can be used for Psychographics reason also (status symbol, personality, etc.)

Can be used for any occasion, for any purpose (schools , colleges, etc.)

TARGETING

It will follow undifferentiated targeting strategy. It will follow all market segments with all types

of its products. It wont cater to niche market. Will go in for mass marketing strategy. It will adopt market aggression for full market

coverage as it has a huge untapped market in India.

POSITIONING

Positioning will be done based on the strengths of the company.

Will be positioned as “now experience USA’s best selling computing brand.”

Usually people from developing country hope to see international brands in their own country and if we position as finest and the best selling brand of USA we are positioning the product in the minds of the general people.

COMPETITORS

4 P’S

Product: Will be marketed with huge product variety ranging from laptops to desktops to its other accessories such as pendrives and external harddisks. The quality wont be compromised as Gateway believes in quality. The features and design will be latest and customers also have the choice to customize it if they want. Will be served with extended warranty and would be packed in the ORIGINAL packs of cow skin COLOURED packs. Customers would be provided with immediate services throughout the year (24*7).

4 P’S

Price: The prices would be varying from product to product but would cater to the masses. Would give discounts to the retailers who can pay on delivery and also credit period would be granted. There would be tie ups with all the big retail outlets like Croma (already there), Vijay sales, Next, e-Zone, etc so that customers can choose their computers with combos. Also customers will be provided benefits of low pricing and discounts.

4 P’S

Promotion: Till date Gateway has not promoted itself in a BIG way so it can be promoted in many ways. It can be promoted by online profile advertisings, craiglist, Shop windows, press release, blogging, link swapping, reference advertisements (in corporate world), in printed media, on air, on digital media, road side hoardings, by using a famous personality, placing a product in strategic location in a shop. Also can be promoted by giving various schemes.

4 P’S (PROMOTION)

4 P’S

Place: Can be made available through various channels like retailers, direct selling shops, tele shopping, etc. The area of coverage can be practically be the whole of India. Initially can be made available with or at ACER computers in India and gradually can be expanded as Gateway computers once the brand is known. The inventory can be outsourced and can be assembled here.

DIFFERTIATION

My product would be different as compared to others:

> It is less expensive than others and branded.

> More durable and immediate service (24*7).

> Has option to choose from preloaded configuration or can also customize.

> Have a huge variety of computers and accessories so everyone has a range of products for themselves.

> Drivers and accessories are easily available and also ACER parts can be used.

TOP 10 LAPTOPS TO BUY.

Dell Inspiron 17 Sony Vaio BZ Series HP Compaq 6535b HP ProBook 5310m Apple MacBook 13-inch Dell Inspiron 15 Sony VAIO SR series Gateway NV7802u HP Compaq 6730b Dell Inspiron 14

( THE RANKINGS ARE FROM 10-1)

GATEWAY ADVERTISEMENT IN 2000 IN USA

THE QUESTIONS

Dichotomous: Have you ever heard of the company Gateway in computers?

Ans. Yes/No. Multiple Choice: which of these brands you have at

home?

Ans. Hp,

Sony,

Dell,

Others (please specify).

THE QUESTIONS

Likert Scale: If told to you that Gateway computers is USA’s number one computer brand then?

Ans. : Agree, Somewhat agree, Neutral, Somewhat disagree, Disagree.

Semantic Differential: If you know the brand then or if you don’t then by the name what do you feel about the brand?

Ans. : Modern, Somewhat Modern, Neutral, Somewhat Old Fashioned, Old Fashioned.

THE QUESTIONS

Important Scale: Would you like to use this brand of computer?

Ans. Mostly, Maybe, Neutral, May be not, Not at all. Rating Scale: How do you find this product?

Ans. Excellent, Better, Good, Neutral, Poor. Purchase Intension Score: If given a chance would

you buy this product?

Ans. Definitely would buy, Would buy, Neutral, Would not buy, Definitely Would not buy.

THE QUESTIONS

Unstructured: Express your opinion on the brand? Word Association: Give one word associated with

“Gateway Computers”? Sentence Completion: a) I would love to buy

Gateway computers because……..?

b) I would not love to buy Gateway computers because…….?

THE QUESTIONS

Story Completion: If you were a marketing guru and if you were to create this advertisement with a boy, a girl and GATEWAY computer how will you create the advertisement?

Picture Responses: Looking at the picture or card what do you think of this brand and have your views been changed?

Thematic Appreciation Test: What do you predict about the company Gateway in India?

TEST MARKETING

It is the fourth stage in New Product Management. We have to test market as our product is new to the market

so to know the consumer reaction we have to through test marketing.

We can do test marketing directly or by giving the contract to the marketing research companies (A C NIELSON, IMRB, MAJESTIC, TNS, etc.)

Can be carried out in cities, towns, and to some extent even in villages till the time the company is ready to launch on a big scale and on the basis of reports submitted by the marketing companies.

CONSUMER BEHAVIOR

Objective of purchase: Ask the question “what ?”. What is the objective of purchase.

(reactions were quite diverse) Objective of buying: ask the question “why ?”. Why one wants

to purchase the product.

(reactions were from business point of view or ere even from a students point of view to gaming point of view)

Organization of purchase: Ask the question “who ?”. Who purchases the product.

(usually the person takes his own decisions to purchase the computer and sometimes is influenced by people around him)

CONSUMER BEHAVIOR

Operation of purchase: ask the question “how ?”. How will you purchase.

(reactions were different) Occasion of purchase: On which occasion.

(no specific occasion for purchase when ever needed or when old machine was outdated)

Outlet of purchase: Place of purchase.

(usually prefers a all under one roof store like CROMA or VIJAY SALES and stand alone store is less preferred)

ANSWERS BY THE PEOPLE

The answers given here are on the basis of a sample survey conducted.

Have you ever heard of the company Gateway in computers?

Most people answer was NO. which of these brands you have at home?

Majority of them had HP or DELL.

ANSWERS BY THE PEOPLE

If told to you that Gateway computers is USA’s number one computer brand then?

The general public were SOME WHAT AGREED to this statement.

If you know the brand then or if you don’t then by the name what do you feel about the brand?

Publics reaction was MODERN.

ANSWERS BY THE PEOPLE

Would you like to use this brand of computer?

Peoples reaction was between MOSTLY and MAYBE.

How do you find this product?

Peoples reaction was BETTER than their brand as it was USA number one laptops(netbook and notebook) selling brand.

If given a chance would you buy this product?

They are READY TO BUY the product.

ANSWERS BY THE PEOPLE

Express your opinion on the brand?

MODERN, YOUNG, STYLISH, USA’s BRAND, ENERGETIC, LOW COST, etc.

Give one word associated with “Gateway Computers”?

almost every one had the answer AN ENTRY TO THE FAST AND MODERN WORLD.

Sentence completion?

WOULD LOVE TO BUY BECAUSE ITS USA’s NUMBER ONE COMPUTERS BRAND.

WOULD NOT LOVE TO BUY AS THE NAME IS NOT KNOWN TO US VIA RELIABLE MEDIA.

ANSWERS BY THE PEOPLE

Story completion?

people gave the scene based on college campus, then running through last minute presentation and GATEWAY coming to rescue, from glamour world by taking an male and female actors, etc.

Looking at the picture or card what do you think of this brand and have your views been changed?

Views weren’t changed but definitely brand was clear to them. What do you predict about the company Gateway in India?

Reactions were quite mixed up they would succeed if they promoted in right way or would be a low running brand like ASUS.

THANK YOU

ANY QUESTIONS ?