To STUDY and Analyze the Market Potential of HCL and HP in Laptop Segment

INTRODUCTION

Computer came and appalled the world with its speed and storage capacity.

But after sometime it was felt that it should be portable, fast and storage-enhanced. It

gave birth to laptops and notebooks with cutting edge technologies. Advancements after

advancements took place and market became flooded with technically enabled

notebooks. Now the time has been that no new technique inspires the market much. So,

will it be appropriate to assume that saturation is grabbing the market, fast leading people

in to reluctance about new advancements that take place in this important segment of IT

hardware.

A desktop replacement computer is a laptop that provides most of the capabilities

of a desktop computer, with a similar level of performance. Desktop replacements are

usually larger and heavier than standard laptops. They contain more powerful

components and numerous ports and have a 15.4" or larger display. Because of their bulk,

they are not as portable as other laptops and their operation time on batteries is typically

shorter.[

Some laptops in this class use a limited range of desktop components to provide

better performance for the same price at the expense of battery life; in a few of those

models, there is no battery at all, and the laptop can only be used when plugged in. These

are sometimes called desknotes, a portmanteau of the words "desktop" and "notebook,"

though the term can also be applied to desktop replacement computers in general.

In the early 2000s, desktops were more powerful, easier to upgrade, and much

cheaper in comparison with laptops. But in the last few years, the advantages have

drastically changed or shrunk since the performance of laptops has markedly increased.In

the second half of 2008, laptops have finally outsold desktops for the first time ever. In

the U.S., the PC shipment declined 10 percent in the forth quarter of 2008. In Asia, the

worst PC shipment growth went up 1.8 percent over the same quarter the previous year

since PC statistics research started.

Technological advancement in electronics field has compelled each and

every branded company to provide the latest technology implemented in

laptops/notebook. IT brands in India are providing stylish, jazzy and powerful laptops,

best suited for indian industry and home. Branded laptops in India are customized

according to the Indian customers, keeping in mind their needs, look and feel. Each and

every piece of these laptops/notebook is unique in their own way. Offering many

additional features laptops/notebook business in India is proving their metal in the

industry. Aggressive marketing by vendors contributed to the continuous growth in the

laptop segment, posting a year-on-year growth of 104 percent or about 1 million units

shipped. The adoption of Wi-Fi by campuses in the education sector, particularly in

higher education, led to the increasing demand for laptops. However, this does not take

into account the assembled desktops that constitute a large part of the sales.

A close look at the Indian PC landscape during FY 2007-08 revealed

a pitched battle between global and Indian giants-a locking of horns characterized by

cutthroat competition fueled by fiercely waged pricing skirmishes. HCL is the leading

Indian brand, with other Indian players like Zenith, PCS, Wipro, and the likes also having

a good growth year. The MNC warriors HP, IBM, Dell, and Acer took on the Indian

giants, with HP at the pole position. With both global and Indian brands contesting

closely for greater market share, the PC market in India ended the fiscal on a rather

comforting note with a growth rate of 24%, as against the previous year's 21%.

But before building up an opinion, one must spare a glace at the

stunning notebooks launched recently by some of the key vendors like HP, Lenovo, HCL,

Acer, and Apple. These notebooks are undoubtedly, technically improved and bear all

latest features. But what make these notebooks special are their classy looks and

aesthetics. Vendors have started comprehending the call of the fashion-loving society

and, thus, are aggressively introducing classy, elegant, stylish and ultra-portable

notebooks in the market.

INTRODUCTION TO THE COMPANIES

HP & HCL: The Global Leaders

The growth of Indian consumer market is witnessing a scorching pace. It has

yielded tremendous growth in middle class spending, especially in computers and

electronics segment. According to the latest research published by IDC India, Notebook

PCs have grown at nearly 86% over last year. Laptops are fast gaining popularity in

India partially due to the fall in prices in recent months. People surely prefer the mobility

that notebook provides over desktop PCs for a bit of premium pricing.

Source:http://www.techgadgets.in/laptop/2007/20/laptop-market-marks-85-percent-growth-in-india/

The falling prices of laptops have led to a sharp surge in demand, especially from the

education and the retail segments. The prices of the notebooks dropped 11 per cent

during the calendar year 2006 against the previous year, posting 104 per cent growth with

shipment of about one million units.

According to research firm IDC, India's PC market grew by 25 percent, with total

shipments exceeding 5 million units in Q4 2006. The lion's share of the desktop PC and

laptop segment went to Hewlett-Packard (HP), which accounted for 21 percent of total

units shipped. HCL and Lenovo accounted for 13 percent and 10 percent, respectively.

The study was carried out by market research firm IDC India. The survey was done for a

wide range of products covering leading brands in the market. Only the Top 13 brands

were considered for further evaluation based on the points scored. The 13 brands

included, Acer, Canon, D-Link, Epson, HCL, HP, IBM, Intel, Lenovo, LG, Samsung,

Seagate and TVS-E.

Source: http://www.siliconindia.com/shownews/39900

About HCL www.hcl infosystems.com/leaptops

Hindustan computer Limited, also known as HCL Enterprise, is one of India’s Largest

electronics, Computing and Information Technology Company. Based In Noida, near

Delhi, the company Comprises two publicly listed Indian Companies, HCL technologies

And HCL Info systems. HCL was founded in 1976 by Shiv Nadar, Ajai Chowdhary and

four of their colleagues. HCL was focused on addressing the IT hardware market in India

for the first two decades of its existence with some sporadic activity in the global

market.HCL is the exclusive distributor of Toshiba in India whose volumes scaled to

20,000 units, compared to last year's 11,600 units. With Toshiba aligned to the higher end

of the spectrum HCL was unable to tap the low and mid-end segments of the portables.

HCL Info systems’ portfolio of products covers the entire spectrum of the

information technology needs of its customers. By virtue of the immense diversity of

markets and customers that it addresses, HCL Info systems' products offerings include

everything from high end enterprise level servers for mission critical applications to

multimedia home computers. An enterprise may be a large multi-location company

exploring solutions to e-enable the organization or may be a new born rising star looking

for someone for IT planning or setting up IT Infrastructure, HCL Info systems has a

solution tailor-made for everyone.

PRODUCTS & SOLUTIONS

DESKTOPS & NOTEBOOKS Business PCs Home PCs Business Notebooks Home Notebooks

SERVERS

Back-end Datacenter Servers

HCL Datacenter in a Box

Rack Optimized Server Solutions

Pedestal Server Solutions

Entry Level Servers

DISPLAY PRODUCTS

HCM 580M

HCM 985RFM

HCM 510LSA

RANGE OF LAPTOPS

HCL leap top 9300 VG

HCL Leap top 9100 PL

HCL Leap top 9100 TR

HCL Leap top 9100 NG

HCL Leap top 9100 EP

HCL Leap top 9200 LX

HCL Leap top 9200 GL

HCL Info systems Ltd, has launched 'MiLeap', India's first full functional, ultra

portable range of laptops that offer mobile internet computing experience at a price point

starting from Rs.13, 990. The new range of Leap tops are sleek and light weight, yet offers

a full PC functionality with true internet experience, heralding in a new category which

holds the promise of being the future of personal mobile computing, says the company.

'MiLeap' is targeted at consumer who needs to stay connected, informed, entertained and

productive—anytime and anywhere.

About HEWLETT-PACKARD’HP ( www.hp.com)

The Hewlett-Packard Company , commonly referred to as HP, is an American

information technology corporation, specializing in personal computers, notebook

computers, servers, network management software, printers, digital cameras, and

calculators, among other technology related products.

Headquarter Palo Alto, California, United States

Annual Revenue US $91.7 billion (2006)

US $104 billion (2007)

HP has been topping the overall PC shipment charts. HP's strength comes from its

technological excellence and a diverse product range aimed at different buying segments.

The huge growth it saw in the notebook space during FY 2005-06 clearly indicates the

domination HP has in this segment. HP also leveraged its peripheral business to its

advantage. For instance, it resorted to aggressive bundling of its printers with the PCs.

This acted as a clear value proposition for the buyers. As per available estimates, HP has

already opened Q1 06 with a bang-its notebook market share hovering at a whopping

37%

TECHNOLOGY AND PRODUCTS

Consumer PCs including the HP Pavilion, Compaq Presario and VoodooPC series

Workstations for Unix, Windows and Linux systems

Handheld Computing including iPAQ Pocket PC handheld computing devices

(from Compaq)

Digital "Connected" Entertainment including HP Media Smart TVs, HP Media

Smart Servers, HP Media Vaults, DVD+RW drives, HP Movie Writer and HP

Digital Entertainment Center. HP resold the Apple iPod until November 2005.

Home Storage Servers

Hewlett-Packard India has launched a range of notebooks in the country. The new line-up

includes seven notebooks belonging to

Professional range

Compaq 2710p Compaq 2510p

Compaq 6910p

Business range

Compaq 2200Compaq 6500

Compaq 6700) tentative

Workstation range

Compaq 8710 series Compaq 8510 series

HP’s newly launched notebooks will be available throughout the country at a price ranging between Rs. 24,990 to Rs 1, 49,990 (excluding taxes).

HCL Or HP: Who’s The leader among the leaders?

Technology is beating it self day by day and complementing its own potential. The crest

of satisfaction lies in more complicated but easy to use gadgets to be developed.

There has never been such a good time for laptop buyers in India. In

recent times, prices have dropped much faster than anticipated. Can someone imagine a

laptop at Rs 13,000? Yes, many players have launched low-priced laptops and prices are

likely to drop further. Especially the year 2008 should be regarded as the year of

fashionable as well as cost-effective notebooks. Taking a lead in this segment HCL Info

systems unveiled the cheapest and ultra-portable laptop MiLeap in different colors and

fashionable contours. The company boasted to target a consumer who needs to stay

"connected, informed, entertained and productive anytime and anywhere." With the

launch of MiLeap it was being believed that it would sweep the market not only on the

basis of its looks but on the basis of price as well.

.HP India where technology comes bundled with speed and power. HP laptops

in India are beating technology to drive a great force of power and core competency in

the market. Technological advancement is the market demand nowadays, but HP

Compaq India is going beyond the market demand. Taking care of consumer need, HP

Compaq is offering trendier and more technologically advanced laptop computers in

India. Realizing the potential of Indian market, HP Compaq laptops\notebook are flooded

in Indian market with all great features and functionality. Considering the needs of Indian

consumer HP Compaq India has researched the market and knows how to advertise their

laptop computer in Indian market.

REVIEW OF LITERATURE

Here comes the best part of the PC business-Notebooks. Notebooks

recorded a spectacular growth of 86% during FY 2007-08. No longer it is a high value

low volumes game, as one saw a deluge of offerings from vendors catering to the low-

and high-end segments. With the escalation of the affordability factor, one also saw the

lines between a desktop and a notebook get blur. For instance, a medium end desktop

vended at Rs 25K in comparison to a low-end Celeron or Sempron based notebook

retailed at Rs 33K. Looking at the impressive growth, the low-end notebooks escalated

up the popularity charts, with students, educational institutions and SMBs taking

advantage of affordable price points, and buying notebooks instead of desktops.

Source: http://www.idcindia.com/press/dec16a.html

The growth of Indian consumer market is witnessing a scorching pace. It has yielded

tremendous growth in middle class spending, especially in computers and electronics

segment. According to the latest research published by IDC India, Notebook PCs have

grown at nearly 86% over last year.

Laptops are fast gaining popularity in India partially due to the fall in prices in recent

months. People surely prefer the mobility that notebook provides over desktop PCs for a

bit of premium pricing.

Notebooks are also fast becoming a popular choice amongst large enterprises,

SMBs and Educational segment, where the growth registered was even higher at 100%.

The popularity of Social networking and web2.0 sites like Orkut has also

fuelled this growth. A lot of teenagers are hooked on to computers/notebooks over these

social networking sites. The popularity of cyber cafes has also suddenly grown over last

couple of years due to this fact.

Another interesting statistic is the growth in Broadband Internet in India. The number of

broadband users in India is jumped by more than 180% this year.

Source: IDC India 2007

Even with all these statistics, India is still

in its infancy for Internet and computer

unit computer penetration. Experts opine

that by 2012 one of every 5 people living

in cities will have a PC. Every

PC/Notebook maker from HCL to

Lenovo, gateway are having aggressive

plans to grab their share of Indian market.

The competition amongst these vendors is

proving to be boon for Indian consumers

due to the fall in computer pricing. The

competition is so cut throat that now there

is not much difference in pricing between

a grey market PC and a branded one.

Earlier, a branded pc used to cost around

50% more expensive than a grey market

one- Now that difference is less than 15%

India Notebook PC Market grows

nearly 85% in 3Q 2007 to cross 5

lakh shipments in a quarter.North

India leads in notebook PC shipments

on the back of strong demand from the Consumer

The Portables Parade

Company 2006-07Units

2007-08Units

HP 75,058 230,963

HCL 61,848 116,000

Lenovo 20,106 40,598

LG - 8,308

Dell 23,425 42,085

Zenith 7,200 26,657

Toshiba 2,925 13,400

Apple 500 -

Samsung 5,827 2,000

Acer 20,243 83,939

Wipro 2,294 2,877

PCS - 4,250

Sahara - 15,550

Others 568 1,965

Total 219,994 588,592

Source: IDC India, 2007

In terms of desktop PC shipments HP retained its top position with a market share of

15.2%, followed by HCL and Lenovo in second and third spots, respectively during 3Q

2007. 

In terms of notebook PC shipments, HP retained the top spot with a market share of

37.8% in 3Q 2007. Lenovo came in at the second spot and Acer climbed up to take the

third spot. 

Table 1: India PC Shipments (million units)

Form Factor Total 2006 3Q 2007 Jan-Sept 2007

Desktops 4.42 1.29 3.60

Notebooks 0.98 0.51 1.21

Total 5.40 1.80 4.81

Table 2: India Notebook PC Shipments by Region: 3Q 2007

Geographical Region 3Q 2007 (% share) Year-on-Year Growth (%)

Northern India 31.8% 104% 

Eastern India 9.9% 70% 

Southern India 30.2% 80% 

Western India 28.1% 77% 

Total 100.0% 85% 

Source: http://www.idcindia.com/press/dec16a.html

India PC market records 2.085 mn shipments in 2Q 2008,

overall 8.1% growth

NEW DELHI: During the April-June quarter of calendar year 2008 (2Q 2008)

the overall India client PC market grew 8.1% year-on-year (2Q 2008 over 2Q 2007) in

terms of unit shipments to record sales (shipments) of 2.085 million. In the same period

(2Q 2008 over 2Q 2007) desktop PC shipments displayed a drop of 2.4%, while notebook

PC shipments showed a growth of 51.2%.

In the overall Client PC (Notebooks and Desktops combined) market, HP

retained the top spot with a market share of 18.7%, followed by HCL at second spot and

Dell moving up to the third spot during 2Q 2008.

In terms of desktop PC shipments HP retained its top position with a market

share of 13.9%, followed by HCL and Dell in second and third spots, respectively during

2Q 2008. In terms of notebook PC shipments, HP retained the top spot with a market

share of 31.2% in 2Q 2008; Dell moved to second spot while Acer retained the third spot.

"With the Indian economy expected to grow only at 7.5-8.0% in the April 2008-March

2009 fiscal

Source:http://economictimes.indiatimes.com/Infotech/Hardware/India_PC_market_records_2085_mn_shipments_in_2Q_2008_overall_81_growth/articleshow/3470105.cms

The Market: Up Close

HCL Info systems

HCL Info systems continues to lead the Indian PC industry in terms of total annual

shipments of desktop PCs. HCL maintained its leadership position in terms of desktop PC

shipments in the Indian market for the fifth year consecutively. The company terms the

response to its Rs 10K PCs as encouraging. HCL deserves the credit for opening up a

new category in the desktops PCs with Rs 10K desktops, which created a change in

perception among the buyers. Meanwhile, HCL also became one of the nation's first

computer manufacturers to offer Microsoft Windows XP Starter Edition-a first-of-its-

kind multi-lingual based operating system. The company also saw good takers for EMI

schemes. For instance, around 20% of its total desktop shipments were sold through the

EMI route during the year.

Hewlett-Packard

HP has been topping the overall PC shipment charts. HP's strength comes from its

technological excellence and a diverse product range aimed at different buying segments.

The huge growth it saw in the notebook space during FY 2006-07 clearly indicates the

domination HP has in this segment. HP also leveraged its peripheral business to its

advantage. For instance, it resorted to aggressive bundling of its printers with the PCs.

This acted as a clear value proposition for the buyers. As per available estimates, HP has

already opened Q1 08 with a bang-its notebook market share hovering at a whopping

37%.

Lenovo

Having successfully integrated the synergies out of the IBM deal, Lenovo strengthened

its enterprise product portfolio and focused on consolidating the 'Think' brand during the

first few quarters of 2005. The company introduced the ThinkPad X41 Tablet PC

and claimed that it was the industry's lightest, thinnest, and most secure tablet. Later, it

launched the ThinkPad R50e, targeting the SMB and SOHO users. It also introduced 64-

bit computing with the Think Centre A51, launched the first wide-screen ThinkPad on ’z’

series and Think Centre E51 desktops for small businesses. During the year, it also

invested in building a strong service and support network.

Expected. Growth

Expected to notch up an overall growth of 25% to 28% for FY 2008-09

MARKET POTENTIAL AND ITS MEASUREMENT

Source: www.netmba.com

Market Potential data measures the likely demand for a product or service in a county,

ZIP Code, or any other defined trade area. Businesses and other organizations use Market

Potential data to make decisions about where to offer products and services.

With Market Potential Data one cano Optimize your merchandise mix.

o Invest marketing amount more effectively.

o Develop successful advertising and marketing plans.

o Decide which expansions are most profitable.

Why Use Market Potential Data

Market Potential data helps companies understand, predict, and influence consumer

behavior by providing insight into areas with the highest growth potential. This allows

you to make informed decisions about products and services based on the latest trends

and consumer demand. In marketing, the term market refers to the group of consumers or

organizations that is interested in the product, has the resources to purchase the product,

and is permitted by law and other regulations to acquire the product. The market

definition begins with the total population and progressively narrows as shown in the

following diagram.

Conceptual Diagram

Beginning with the total population, various terms are used to describe the market based

on the level of narrowing:

Total population

Potential market - those in the total population who have interest in acquiring

the product.

Available market - those in the potential market who have enough money to buy

the product.

Qualified available market - those in the available market who legally are

permitted to buy the product.

Target market - the segment of the qualified available market that the firm has

decided to serve (the served market).

Penetrated market - those in the target market who have purchased the product.

In the above listing, "product" refers to both physical products and services.

The size of the market is not necessarily fixed. For example, the size of the

available market for a product can be increased by decreasing the product's price, and the

size of the qualified available market can be increased through changes in legislation that

result in fewer restrictions on who can buy the product.

Defining the market is the first step in analyzing it. Since the market is likely to be

composed of consumers whose needs differ, market segmentation is useful in order to

better understand those needs and to select the groups within the market that the firm will

serve.

“TO STUDY and analyze the market potential of HCL and HP in laptop segment”

NEED AND SCOPE OF THE STUDY

IT sector is growing at a highest rate ever. This sector is striving to tap almost

each potential customer to use and buy its products. Having laptop has been

become the need of every person. Now days everybody wants to enjoy these

technically advanced gadgets.

With liberalization, privatization and globalization after 1991,so many companies

are operating in India hence the market is quite competent With so much

competition prevailing ,companies are interested to know the customers

perception towards various brands available in the market so as to work on it and

capture the market.

The main objective of the study is to find out the competitive edge of one

company over other. Which company is having the highest market share, what are

the different services are offered by them, how brand conscious. And brand loyal

they are, what are customer’s expectations from these brands in future.

Company Name Market Share

HP 21%

HCL 14%

Lenovo 9%

Source: IDC Research Firm

Rising demand for laptops has led these IT product manufacturers to innovate and launch

new laptops with upgraded systems in the market to fulfill the needs and aspirations of

the potential customers.

Study covers HCL and HP information systems. Only Laptop/notebook owners in the

Chandigarh are taken under study.

OBJECTIVES OF THE STUDY

To know the marketwise potential for HP & HCL in laptop/notebook segments.

To study the purchase behavior and market preference for laptops

To know the reasons for switching consumer buying decision from one brand to

other.

To know the brand loyalty and likeness for IT brands among the people.

To analyze the future consumer potential between foreign and indigenous laptop

brands.

To study the satisfaction level of the laptop users.

RESEARCH METHODOLOGY

RESEARCH

Research comprises defining and redefining problems, suggested solutions, collecting,

organizing and evaluating data, making deductions and reaching conclusions.

RESEARCH METHODOLOGY

Research methodology is the science of research to how research is done scientifically

using the research methods. Research methodology is a careful investigation for inquiring

in a systematic method and finding solution of a problem. It comprises the defining and

redefining of problem formulating hypothesis, collection and evaluating data, making

detection and reaching conclusion. This research consists of following element:

RESEARCH INSTRUMENTS

The research instruments refer to the methods, techniques and various other tools

associated with conducting the research. The research methodology practiced in the

project research is mentioned below.

RESEARCH PROBLEM

To know and analyze the market potential of HCL and HP in laptop/notebook segment.

SAMPLE DESIGN

Sample is the enumeration of few items of the entire population. The way of selecting a

sample is called sample design. Sample design is thus the plan determined before the data

is actually collected. In this study the judgment sampling will be used to collect the data.

SOURCE OF DATA COLLECTION

One of the most difficult tasks the investigator is faced is obtaining or gathering the

desired information or data. If data is inaccurate and inadequate the whole analysis may

be faulty and the findings give misleading results.

Two kinds of data:

Primary Source

Secondary Source

Primary Data: A primary source is one that it self collect data

Primary data was obtained in following ways

Conversation with owners & users of different laptop brands.

Data taken from Questionnaire which includes open ended as well as close

ended questions

Secondary Data: Secondary source is one that makes available data which

were collected by some other agency.

Secondary Data was obtained in following ways

Books

Internet.

SAMPLE SIZE

The sample size of a statistical sample is the number of repeated measurement that

constitutes it. It is typically denoted n, and is a non-negative integer.

This refers to the number of items to be selected from universe to constitute a sample.

Sample size-------150 respondents.

GEOGRAPHICAL AREA COVERED

Geographical Area: Chandigarh

SAMPLING TECHNIQUE

CONVENIENCE JUDEMENTAL SAMPLING

SAMPLING UNIT

LAPTOP/NOTEBOOK OWNERS of HCL and HP brands.

DATA ANALYSIS:

Regarding the data analysis appropriate techniques are used.

LIMITATIONS OF THE STUDY

1. Due to paucity of time & resources, the scope of study is limited to few

laptop/notebook owners in Chandigarh city.

2. Smaller sample may not always give better results. Sample may not be true

representative of the whole population.

3. The possibility of biased responses can’t be ruled out.

4. Lack of availability of full information.

5. Lack of interest of respondents.

Demographic profile of the study

Age Occupation Respondents

20 -25 Years Student 70

25 -45 Years Employee & Business 70

30 – 40 Years Household 10

Total 150

ANALYSIS OF DATA

Q1 Various Laptops owned my Users

Occupation and Age of Respondents

46%

47%

7%

20 -25 Years Student

25 -45 Years Employee& Business

30 – 40 YearsHousehold

COMPANY RESPONDENTSHP 56

HCL 50 Others 44 Total 150

HP38%

HCL33%

Others29%

HP

HCL

Others

Interpretation: In the above case I have taken the sample of 150 laptop/notebook owners

in which 56 consumers used HP notebooks, 50 of them owned HCL notebooks and 44 of

them owned other Laptops (DELL, Lenovo, Toshiba, and Samsung)

Q2: Factors Motivated You to Buy the Above Brands

o Advertisements

o Dealer outlet

o Family/friends

o OTHERS ( Brand Name)

COMPANY RESPONDENTS

ADVERTISEMENTS 52

DEALER OUTLET 38

FAMILY/FRIENDS 30

BRAND NAME 52

TOTAL 172

Interpretation: Out of 150 LAPTOP/NOTEBOOK owners most of them were being

motivated by Advertisements and Brand Name of the above purchased brand because

they have maximum approx. 30% each or other were being familiarized by a Family,

Friend or a Relative about the brand. Even some of them through a Dealer visit proposed

of buying that particular brand.

Q3. Time Period for which Laptops have been used

o 1 to 6 months

o 6 months to 1 year

o 1 to 2 years

o 2 years or more

Time period RESPONDENTS

1-6 months 53

6 months -1 year 49

1 -2 years 25

2 years or more 23

Total 150

FACTORS MOTIVATED CONSUMERS TO BUY ABOVE BRANDS

ADVERTISEMENT 31%

DEALER22%

FAMILY17%

BRAND NAME30%

ADVERTISEMENT DEALERFAMILYBRAND NAME

RESPONDENTS

1-6 months35%

6 months -1 year33%

1 -2 years17%

2 years or more15% 1-6 months

6 months -1 year

1 -2 years

2 years or more

Interpretation: In the above case the respondents were being asked about the time period since the purchase so as to verify whether the respondent is a new user or an experienced one. Mainly the respondents in the region owned laptop/notebook since 1 month to 6 months and 6 month to 1 year were much familiar with brands.

Q4: Mode of Usage

o For data storage and transference

o Internet related services like downloading, surfing

o For official usage

o For watching movies and playing games

o If other ( Specify)

MODE OF USAGE

RESPONDENTS

For data storage and transference

142

Internet related services like downloading, surfing

113

For official usage 57

For watching movies and playing games

50

For some other purpose

24

Q5. Satisfaction Level of different Brands

o Very Unsatisfied

o Unsatisfied

o Somewhat Satisfied

o Very Satisfied

o Extremely Satisfied

For HCL

Satisfaction level RESPONDENTS

Mode of usage and number of respondents

050

100150

For datastorage andtransference

Internet relatedservices likedownloading,

surfing

For officialusage

For watchingmovies and

playing games

For some otherpurpose

For data storage and transference

Internet related services like downloading, surfing

For official usage

For watching movies and playing games

For some other purpose

Very unsatisfied 5

Unsatisfied 7

Somewhat satisfied 1

Very satisfied 13

Extremely satisfied 24

TOTAL 50

For HP and Compaq

Satisfaction level RESPONDENTS

Very unsatisfied -

Unsatisfied -

HCL Users Satisfaction Level

10%

14%

2%

26%

48%

Very unsatisfied

Unsatisfied

Somewhat satisfied

Very satisfied

Extremely satisfied

Somewhat satisfied 10

Very satisfied 36

Extremely satisfied 10

TOTAL 56

interpretation: Basically customers give no positive response to this question; they

(customers) are of the view that both the brands are satisfactory up to a level. But in the

case of HCL the system users are extremely satisfied with their product. But in case of

HP the respondents were not satisfied up to an extreme level. This interprets that

although HP has a greater potential marketwise but the user satisfaction level in case of

HCL is much higher.

LaptopsVery Unsatisfied Unsatisfied

Some What Satisfied

Very Satisfied

Extremely Satisfied Total

HCL 5 7 1 13 24 50HP 0 0 10 36 10 56OTHERS 6 5 12 15 6 44Total 11 12 23 64 40 150

HP Users Satisfaction Level

18%

64%

18%

Somewhat satisfied

Very satisfied

Extremely satisfied

Observed Value

Expected Value

(o-e)*(o-e)

(o-e)*(o-e)/e

5 3.6 1.96 0.54444440 4.1 16.81 4.16 3.2 7.84 2.457 6 1 0.16666670 4.48 20.0704 4.485 3.52 2.1904 0.62227271 7.66 44.3556 5.7905483

10 8.58 2.0164 0.235011712 6.74 27.6676 4.104985213 21.3 69.3889 3.25311336 23.9 146.6521 6.138639615 18.8 14.2129 0.757213624 13.3 113.8489 8.540802710 14.9 24.3049 1.6279236

6 11.7 32.8329 2.799053745.610675

No. of Rows = 3

No. of Columns = 5

Formula = (r- 1) (c- 1)

= (3-1) (5-1)

= 2*4

= 8

Q6: Overall Performance:

o Much better

o Somewhat better

o About the same

o Somewhat worse

o Much worse

o Don't know or never used

Overall performance level RESPONDENTS

Much better 112

Somewhat better 22

About the same 16

Somewhat worse -

Much worse -

Don’t know or never used -

Total 150

Interpretation: In the above case of overall performance level for all brands the

respondents were questioned and enquired about the overall usefulness of the machine

w.r.t features, looks, configuration, services. The analysis interpret that the respondents

were much satisfied with their machines and brand as 74% of the respondents show that

in comparison to other brands their laptop is much better and this shows that the

respondents have a much higher of satisfaction level. The result shows in overall sense

that the various brands are present but the performance level is overall the same for HP as

well as HCL.

Q7 Brand Preference

o HCL

o HP

o Stick To The Same one

OVERALL PERFORMANCE

74%

15%

11%

Much better

Somewhat better

About the same

o Others

For HCL users

RESPONSE RESPONDENT

HP 11

Stick to the same one 33

Some other brands 6

Total 50

For HP users

RESPONSE RESPONDENTS

HCL 12

Stick to the same 40

Other brand 4

Total 56

BRAND PREFERNCE FOR HCL USERS

22%

66%

12%

HP

Stick to the same one

Some other brands

Interpretation: This shows that the HCL& HP users both have brand likeness for

their respective brands. As the HCL users too had a choice for HP at a larger rate

whereas for other brands like dell the choice for this brand is at an appreciable

rate. This shows the brand awareness among the consumers.

Q8.Rating of Different Parameters

Brand name

Configuration

Price and discounts

Looks and features

Service after sales

Warranty

Credit facility

Genuine accessories and peripherals

Extendable configuration

Weight

Resale Value

Sr. No.

Brand Name Configuration

Price and Discounts

Looks and Features

Service after sales

Warranty

Credit Facility

Genunine Accessories

Extendable Configuration Weight

Resale Value Total

1 106 0 18 2 0 10 0 1 13 0 0 150

2 0 75 0 20 33 2 20 0 0 0 0 150

BRAND PREFENCE FOR HP USERS

0

5

10

15

20

25

30

35

40

45

HCL Stick to the same Other brand

Series1

3 20 0 65 0 0 20 20 0 5 15 5 150

4 0 10 20 70 31 0 9 0 10 0 0 150

5 5 35 5 18 77 0 0 0 0 5 5 150

6 0 15 0 20 0 87 0 13 0 10 5 150

7 18 0 20 0 5 9 73 0 15 0 10 150

8 1 0 8 0 0 0 25 93 0 10 8 150

9 0 0 5 4 0 10 0 40 87 4 0 150

10 0 0 9 11 0 5 0 0 15 100 10 150

11 0 0 0 5 0 5 3 3 5 6 104 150

Total 150 150 150 150 150 150 150 150 150 150 150 1650

Interpretation: From the above data we can find that most the respondents given first

preference to Brand Name and least preference to resale Value

Q 9 Satisfaction Level of Different attributes of the laptops

a) Brand

Satisfaction X

Respondents (f) fx

Strongly Disagree -2 0 0Somewhat Disagree -1 0 0Neutral 0 11 0Somewhat Agree 1 68 68Strongly Agree 2 71 142

150 210

Mean =1.4Interpretation : When the consumers were being inquired about the parameters which

they think are important while buying a laptop/notebook. The consumers on the basis of

brand name and popularity reacted as sole reason which is in their minds while

purchasing. This shows the consumer’s brand awareness and effect of advertisements and

other promotional activities done by companies in order to popularize their brands . Most

of respondents are going towards the strongly agree about the brand because means is

approx 1.4

(b) Configuration

Satisfaction XRespondents (f) fx

Strongly Disagree -2 0 0Somewhat Disagree -1 0 0Neutral 0 0 0Somewhat Agree 1 7 7Strongly Agree 2 143 286

150 293

Mean = 1.953333

Interpretation: When the users were questioned on basis of configuration as main

parameter while purchasing a laptop/notebook. No doubt, configuration proportionate to

the working power of the machine and the main selection parameter while purchasing a

laptop. Most of the respondents are going towards strongly agree about the configuration

because mean is 1.95333

(c) Price and Discount

Satisfaction XRespondents(f) fx

Strongly Disagree -2 0 0Somewhat Disagree -1 0 0Neutral 0 15 0Somewhat Agree 1 123 123Strongly Agree 2 12 24

150 147

Mean = 0.98

Interpretation: When the consumers were asked about the price and discounts offerings the reaction was notable and this shows the availability of discounts attract much strength of the potential consumers in the pipeline. The price is the main selection criteria among the consumers while buying a laptop. In this case most of the respondents are going towards somewhat agree and mean is 0.98

(d) Looks and Features

Satisfaction XRespondents(f) fx

Strongly Disagree -2 0 0

Somewhat Disagree -1 0 0Neutral 0 2 0Somewhat Agree 1 33 33Strongly Agree 2 115 230

150 263

Mean = 1.753333

Interpretation :The looks and features have a place of their own the consumers give a

respect to presence of the good features in the laptops like Bluetooth,wi-

fi,camera,Advanced graphics technology and compact build. Respondent are also more

aware about the looks and features and they are going towards strongly agree about this

and mean is 1.7533

(e) Service after Sales

Satisfaction XRespondents(f) fx

Strongly Disagree -2 0 0Somewhat Disagree -1 0 0Neutral 0 0 0Somewhat Agree 1 12 12Strongly Agree 2 138 276

150 288

Mean = 1.92

Interpretation: The service after sales property is much weaker in India but the compact

and advanced features need an over life support which is regarded mandatory preference

among the users. This shows service after sales should be provided by every vendor at its

best. In this case most of the respondents are going towards the strongly agree.

(f) Warranty

Satisfaction XRespondents(f) fx

Strongly Disagree -2 0 0Somewhat -1 0 0

DisagreeNeutral 0 0 0Somewhat Agree 1 73 73Strongly Agree 2 77 154

150 227

Mean = 1.513333

Interpretation: The warranty is the care taking time period on the side of the vendor. The consumers respond to this feature as prime criteria while purchasing. Mostly the big brands are providing the warranties to their customers extending up to 3 years. This is in case of HP which sometimes provides insurance cover on its popular brands of laptops. Most of the respondents are going towards the strongly agree and mean is 1.51

(g) Credit Facility

Satisfaction XRespondents(f) fx

Strongly Disagree -2 3 -6Somewhat Disagree -1 35 -35Neutral 0 71 0Somewhat Agree 1 38 38Strongly Agree 2 3 6

150 3

Mean = 0.02Interpretation: The availability of credit facility is not a main choosing parameter in consumers.Althogh, some of vendors have a finance facility available on some laptop through a tie-up with a finance firm but the consumer regards this as a secondary preference. Mostly of respondents are Neutral in this case.

(h) Accessories

Satisfaction XRespondents(f) fx

Strongly Disagree -2 0 0Somewhat Disagree -1 0 0Neutral 0 5 0Somewhat Agree 1 5 5Strongly Agree 2 140 280

150 285

Mean = 1.9

Interpretation: The availability of genuine spares and peripherals are another healthy parameter for choosing among the brands. The brand with a less popularity remains least purchased because of this reason. But consumers know the brand with much popularity will have a good range of accessories and peripherals available. That’s why consumers go for good brands for a secure future of the system. In this case these are mostly going towards the strongly agree.

(I) Extendable Configuration

Satisfaction XRespondents(f) fx

Strongly Disagree -2 0 0Somewhat Disagree -1 0 0Neutral 0 3 0Somewhat Agree 1 131 131Strongly Agree 2 16 32

150 163

Mean = 1.086667

Interpretation: Technology remains changing over a time. So, the laptop bought today

may be outdated tomorrow. So there should always a chance available on consumer to

upgrade his machine. The consumers think in bulk that the companies should avail them

with more expanded options in the future in order to update with each change. In this

case most of the respondents are going towards the some what agree and mean is 1.0866

(j) Weight

Satisfaction XRespondents(f) fx

Strongly Disagree -2 0 0Somewhat Disagree -1 0 0Neutral 0 0 0Somewhat Agree 1 121 121Strongly Agree 2 29 58

150 179

Mean = 1.193333

Interpretation: The weight of the laptop is also a prime option among the consumers

while buying the laptop. As the portable should be easy to carry along and compact in

size and build. Most of the respondents are going towards the some what agree because

mean is approx 1.1933

(k) Resale

Satisfaction XRespondents(f) fx

Strongly Disagree -2 56 -112Somewhat Disagree -1 45 -45Neutral 0 30 0Somewhat Agree 1 19 19Strongly Agree 2 0 0

150 -138

Mean = - 0.92

Interpretation: The resale value is the amount which a consumer should get after he resells it again. But the portable is a kind of product which is of a long life usage and also most of the respondents owned the laptop a year back or recently. This shows in an overall respect that resale value is not given a much consideration while buying a laptop/notebook Most of the respondents are going towards the strongly disagree regarding the resale value and mean is – 0.92

FINDINGS

From The Conducted Survey, I Have Reached To The Following Findings: The

Following Facts:

The study concludes that the current laptop/notebook technology is rapid

and it is fast replacing the desktop PC. In the surveyed market HP leads

the market share race with 36% and brand likeness for HP is more then

HCL for the market.

Demand for the Laptop/notebooks segment of the personal computer arena

in the region and among the youth is taking an appreciable attention due to

new generation of the mobile products coming in the market and these

notebook brands are offering various models and latest designs with

attractive prices and discounts.

Market potential for both the IT brand names HCL and HP is going to

grow at a much higher rate, as the use for laptops/notebooks among the

students and the business professionals has found an important role. The

models too launched by these brands have applause from its users.

Due to rapid development in internet technology the wi-fi enabled systems

are more preferred, as they can be connected to the internet easily. The

number of notebook computers embedded with wireless connectivity

among the students and corporate will skyrocket in the coming period.

The availability of credit facility has made the unaffordable customers to

own a laptop with very small EMIs. This attracts small business houses

towards the brands offering the credit facility.

According to study the future demand and potential for the

laptop/notebook segment will experience an immense growth. According

to IDC India, a marketing research firm notebook sales are expected to

account for 45% of worldwide PC sales.

Majority of customers say they will stick to the same brand they own

currently that may be either HCL or HP .and very few of them has found

switching over to a different brand as a foul’s play.

The promotional tools of HCL, which includes: -

Electronic media ads (TV, RADIO)

Print media ads (Newspaper, Magazines etc)

Dealers network are much better than that of HP that’s why the customers of HCL are

mostly known to the new product and launches It was also found that the

advertisements of HCL eye catching then that of HP India.

It was also analyzed from the data that the users preferred the brand name and

popularity rather then the price and discounts, which are considered as a

secondary purchase parameter while buying.

HCL being the indigenous brand has not an admirable likeness among

consumers as compared to the foreign brands available in the market.

Potential consumers have a buying preference for the American brands in the

market.

There is no denying fact that China is booming and according to media report

sales of laptop computers are expected to boom in near future.

Recommendations/Suggestions

There are a few recommendations and suggestions on the bases of 7Ps’ of marketing mix:

-

Product

Wide range of designs should be available in the market

Notebooks with rich and innovative features should be launched continuously

Price

Higher Prices in laptops/notebooks is still an issue with the potential customers

Discounts can be given with gift offerings although it is been implied in many of

the brands.

Credit facility with less interest rate should be offered.

Place

Still in many cities, it is difficult for many customers to find dealers of the HP and

HCL.more and more company outlets should be opened along with dealer

networks and service centers.

Rural areas should also be considered.

Promotion

Discounts & free gifts can do a lot.

Warranty and service after sales should be encouraged by these brands.

Credit facility at low interest rates should be provided.

People

Still there is need for more motivation among the youth and businessmen.

Dealers and sales men should be trained in order to cater accordingly with the

need of customers.

Processes

The merchandising should be done effectively as this also affects consumer

buying behavior.

Free service after sales system within a specific time period can also be started for

convenience of customers.

Increase of Technical excess (customer care centres, help and support) can also

act as a positive factor.

Physical Evidence

Dealer should display and advertise the new launches in laptop/notebook time to

time.

Looks and displays should be fascinating and appealing

Elements like exchange and reselling, etc should be given due consideration

TENTATIVE CHAPTER SCHEME

CHAPTERS PARTICULARS

Chapter – 1 INTRODUCTION TO THE STUDY

Chapter-2 REVIEW OF LITERATURE

Chapter – 3 NEED, SCOPE & OBJECTIVES OF STUDY

Chapter –4 RESEARCH METHODOLOGY

Chapter – 5 LIMITATIONS OF THE STUDY

Chapter – 6 DATA ANALYSIS & INTERPRETATION

Chapter – 7 FINDINGS

Chapter - 8 CONCLUSION AND SUGESIONS

Websites:

www.hp.com/india

www.gadgetsparade.com

www.hcl infosystems.com/leaptops

http://www.siliconindia.com/shownews/3990

http://www.idcindia.com/press/dec16a.html

www.netmba.com

www.economictimes.com/news/ laptops

http://www.physorg.com/news10165.html

http://us.rediff.com/money/2006/jun/03lap.htm

http://economictimes.indiatimes.com/Infotech/Hardware/

India_PC_market_records_2085_mn_shipments_in_2Q_2008_overall_81_gr

owth/articleshow/3470105.cms