HP: The Computer is Personal

Again

Group: Mismatch
Team Members:
Karthik M.N 10DM-075
Kiran R.K 10FN-054
Sidharth M 10FN-056
Rakesh R 10HR-028
Kapil Berry 10IB-036
Murali Podile 10IB-041

HP-The Computer Is Personal

Again
Case Introduction
 HP is a technology company providing a wide range of
products and services started by Bill Hewlett and
David Packard in 1939.
 HP acquired COMPAQ in 2002 to overtake DELL as the
market leader for a brief period of time.
 The stock price fell more than 18% when merger was
announced and DELL again overtook HP-COMPAQ duo
to become market leader.
 The entire PC industry was cost driven and marketing
strategy adopted was informational appeal.
 The PC was seen as a vessel for technology of Intel
and Microsoft.

HP-The Computer Is Personal

Again
Market Scenario
 Major players in the PC market were HP,
Dell, Apple, Acer and Lenovo.
 Market segment consisted of individual
consumers, small and medium enterprises
and large business customers.
 Retail channels, value added resellers and
Online direct sales.
 Retail Channels accounted for a large share
of the market but online sales grew
steadily.

HP-The Computer Is Personal

Again
Market Scenario(Contd.)
 HP was more into consumer market while
COMPAQ was into corporate or business PCs.
 The standardization of key computer
components and the fact that the principal
source of differentiation came from external
technology had led to increasing
commoditization of the PC industry.

HP-The Computer Is Personal

Again
HP’s New Strategy
 Differentiation
 Customer Experience
 Global reach
 Viral component
 Cost effective

HP-The Computer Is Personal

Again
Execution of New Strategy
 HP came up with the new theme of
Computer is Personal Again.
 Campaign was launched at the
Cannes film festival.
 HP’s ads featured achievers from
different fields.

HP-The Computer Is Personal

Again
 The spots filmed the hands and bodies of
profiled achievers and used cutting edge
graphics along with the hand graphic Goodby
had developed to show how they used their HP
computers and technology. The faces of the
celebrities remained hidden with their identities
revealed at the very end in text.
 HP Jay-Z advertisement
 The campaign reached to non traditional
audience through Internet ads & by pointing
them to an online tool at hp.com/personal
HP-The Computer Is Personal
Again
Marketing Communications Mix
 Advertising- Featured various
achievers from different field
HP received US Campaign of the
year award.
 Events and Experiences- HP
partnered with MTV for the show
Meet or Delete.
Cannes film festival
HP-The Computer Is Personal
Again
 Direct Marketing- Online sales
through website.

 Sales Promotion- HP launched a

contest in collaboration with MTV
called the “Engine Room”.

HP-The Computer Is Personal

Again
Hierarchy of Effects Model
 Cognitive Stage: Awareness and Knowledge-
Computer is personal again campaign created
awareness and knowledge.
 Affective Stage: Liking, Preference and
Conviction- HP had a stable and high quality image
which was transformed to a more trendier and cooler
image.
The youth were targeted.
The “personal” factor of the campaigning created an
emotional connect with consumers.
 Behavior Stage: Purchase- Increase in Market
share, sales and Brand value.

HP-The Computer Is Personal

Again
Challenges
 Innovative and stylish products designed
did not receive the expected accolades
from customers.
 Expected support was not received from
retail partners in acquainting customers
with new features.
 The Personal again campaign focused more
on the consumer PC market at the cost of
corporate market.
 Competitors were also adopting similar
strategies like “Yours is here” campaign by
Dell.
HP-The Computer Is Personal
Again
The way forward
 Investing in specialized direct sales
professionals.
 Concentrating more on getting deals
from corporate accounts.
 Improvement of service sector such
as data storage and remote service
and support.

HP-The Computer Is Personal

Again
THANK YOU!!!