Hewlett Packard Marketing Mix
The rise of cloud computing and mobile technology has proved to be challenging for most of the established PC brands including HP. To respond to these changes, HP recently divided itself into two separate divisions HP and HPE. This marketing mix presents a combined analysis of the two divisions. HP is the part that deals in PCs, laptops, printers and computer accessories. HPE on the other hand deals in data centre hardware like storage, servers, integrated systems and software. PC market has undergone a big change in last 5 years and the separation is a part of Hewlett Packard’s plan to better respond to the changing market dynamics. HP believes this will lead to increased operational efficiency as well as increased profits. The two separate divisions will be able to better focus on their areas. HP is a strong brand with international presence and deals in a wide range of products and services. Here is an analysis of its marketing mix:
HP has placed increased focus on consumer needs and altered its strategy to suit the needs of the 21st century consumer whether it is an individual, a small business or a large corporation. From laptops to cloud ready servers, the focus is on innovation to better cater to consumer needs. It has a rich product portfolio of products related to computing, data storage and information technology infrastructure. In the laptops and PC segment, it has released products that cater to the needs of diverse user groups. From standard laptops to business laptops and gaming laptops it has introduced several different models. The market is growing richer in HP made convertibles and detachables which serve both as laptops and tablets. Its desktops too are just as rich in variety. From towers to workstations and 3 in ones, it has released different models suitable for different customer groups. Other products by HP include Printers and accessories, displays and accessories, computing and mobility solutions for small and large businesses and so on. HPE mainly deals in IT infrastructure products including cloud ready servers, integrated IT systems and data storage and protection solutions. In this way, HP deals in a diverse and rich product mix.
HP products are available through both online and offline channels. Customers can shop for HP products direct from its website or from its brand stores. The HP brand stores are designed to provide the shoppers with a delightful shopping experience. These brand stores beautifully showcase, HP’s product and its passion for technology. Apart from it, one can find these products at Amazon and Walmart websites too. HP has also established a wide network of authorised resellers globally. Buyers can use its store locator find the location of the nearest store. These products are available with major retailers like Costco, Walmart, Best Buy etc. HP is a recognized global brand and it has a strong global distribution network.
Generally, HP has followed the competitive pricing strategy and brought products to the market in the mid range and lower range prices. The premium segment was mainly dominated by Apple, Dell and Lenovo. However, in the recent times, its focus on premium products has increased. It has introduced a series of laptops and printers in the premium segment. Its SPECTRE laptop is being touted as the most beautiful laptop. Its premium consumer notebook strategy is also said to be working effectively. Even in gaming segment it has introduced produced products for the higher end users. Its OMEN is a premium laptop targeted at gamers or rather real gamers. HP’s focus still is not entirely on the higher segment only. It has a wide product portfolio where products for all segments including mid-range and value segment are also available.
Like other PC and electronics brands HP too spends heavily on the promotion of its brands and products. These products are advertised through both online and offline channels. Television ads, print ads, media promotion, online advertising as well as other methods of advertising and promotion are also used by HP. Its brand stores also promote its brand and products effectively. Apart from it the brand has used special ad campaigns for products like Pavilion or SPECTRE. It is said to have spent millions on a single ad campaign a few years ago to promote its Pavilion notebooks. HP has also spent significant amounts on the promotion of its SPECTRE and ENVY notebooks. The brand also invests in CSR and sustainability initiatives to promote an accountable and ethical brand image.