Acer

Marketing Management 2,
Group 1
Indian Laptop Industry
• In sync with global trends.
• Reasons for growth:
– Lifestyle of consumers
– Affordability
– Better Legislation
 Marketing/Situation Analysis (The 5 C’s)
Consumer Server &
Notebooks Netbooks Business PCs
PCs Storage

Students Government and Household System

Regular series - Young entrants in institutional consumers integrators in the
students, job market clients through retailers BFSI, IT,
youth education,
population, telecom and
Travellers government
(TravelMate) segments
Ferrari-
designed
laptoRetail
Partners
ps - high end
customers like
architects,
designers etc.
• Company
– Currently the world’s No. 2 total PC and notebook
player
– Today, Acer is a multi-brand company, having
successfully implemented a Multi-brand Strategy

• Competitors
Market Shares
• Collaborators
– Acer has always been dedicated to a single,
unambiguous Channel Business Model,
– Acer has tie-up with Scuderia Ferrari for niche
products like Designer Notebooks and Smart Phones

• Context
– growth rate of IT product industry is considerably
high
Market Segmentation (Geographic)
Acer HP Dell Lenovo
North, South, North, South, North, South, North, South,
East, West East, West East, West East, West
(Rural, Semi- (Rural, Semi- (Rural, Semi- (Rural, Semi-
urban, and urban, and urban, and urban, and
Urban) Urban) Urban) Urban)
Market Segmentation (Psychographic)
Acer HP Dell Lenovo
Social Class Lower, Lower, Lower, Lower,
Middle, Middle, Middle, Middle,
Upper Upper Upper Upper
Lifestyle Work- Work- Work- Work-
oriented, oriented, oriented, oriented,
Sports/Gam Sports/Gam Sports/Gam Sports/Gam
es Oriented, es Oriented, es Oriented, es Oriented,
Music/Media Music/Medi Music/Medi Music/Media
Oriented, a Oriented, a Oriented, Oriented,
Style/Looks- Style/Looks- Style/Looks- Style/Looks-
Oriented Oriented Oriented Oriented
 Market Segmentation (Behavioural)
Acer HP Dell Lenovo
Benefits Quality, Service, Quality, Service, Quality, Service, Quality, Service,
Economy, Speed Economy, Speed Economy, Speed Economy, Speed

User status Non-user, Ex- Non-user, Ex- Non-user, Ex- Non-user, Ex-
user, Potential, user, Potential, user, Potential, user, Potential,
First-time, First-time, First-time, First-time,
Regular Regular Regular Regular

Usage rate Light, Medium, Light, Medium, Light, Medium, Light, Medium,
Heavy Heavy Heavy Heavy

Loyalty status None, Medium, None, Medium, None, Medium, None, Medium,
Strong, Absolute Strong, Absolute Strong, Absolute Strong, Absolute

Readiness Unaware, Aware, Unaware, Aware, Unaware, Aware, Unaware, Aware,

Desirous, Desirous, Desirous, Desirous,
Intending to buy Intending to buy Intending to buy Intending to buy
Market Segmentation (Demographic)
Acer HP Dell Lenovo
Age Kids, Kids, Kids, Kids,
Youth, Middle, Youth, Middle, Youth, Middle, Youth, Middle,
Old Old Old Old
Gender Male, Female Male, Female Male, Female Male, Female
Income NoIncome, Low, No Income, Low, No Income, Low, No Income, Low,
Medium, High Medium, High Medium, High Medium, High

Occupation Home, Home Home, Home Home, Home Home, Home

Office, Small Office, Small Office, Small Office, Small
Business, Business, Business, Business,
Medium Medium Medium Medium
Business, Large Business, Large Business, Large Business, Large
Business, Public Business, Public Business, Public Business, Public
Sector, Sector, Sector, Sector,
Education, Education, Education, Education,
Healthcare, etc. Healthcare, etc. Healthcare, etc. Healthcare, etc.
 Targeting
Acer HP Dell Lenovo
Geographic Pan India Pan Pan Pan
India India India
 Targeting (Demographic)
Acer HP Dell Lenovo
Age All All All All
Gender Both Both Both Both
Income Low, Medium Low, Medium, Low, Medium, Low, Medium
High High
Occupation Home, Home Home, Home Home, Home Home, Small
Office, Small Office, Small Office, Small Business,
Business, Business, Business, Medium
Medium Medium Medium Business
Business, Business, Business,
Large Business Large Large
Business, Business,
Public Sector, Public Sector
Education,
Healthcare, etc.
 Targeting (psychographic)
Acer HP Dell Lenovo
Work and Work-oriented, Work-oriented, Work and
Entertainment Sports/Games Sports/Games Entertainment
(Sports/Music) Oriented, Oriented, (Sports/Music)
Oriented Music/Media Music/Media Oriented
Oriented, Oriented,
Style/Looks- Style/Looks-
Oriented Oriented
 Targeting (Behavioral)
Acer HP Dell Lenovo

Quality, Quality, Service, Quality, Service, Quality,

Economy, Economy, Economy, Economy,
Speed Speed Speed Speed
 Positioning
Acer HP Dell Lenovo
POD Price, Design, Design, Price,
Performance Quality, Quality, Performanc
Features, Performan e, Quality
Performanc ce,
e Delivery
POP Quality, Quality, Quality, Quality,
Performance, Performanc Performan Performanc
Price e, Price ce, Price e, Price
Tag Line “Empowering “Let’s do “The “The power
People” amazing” power to of Ideas”
do more”
Part 4

MAJOR PLAYERS AND STRATEGY

 Hewlett Packard
Strength Weakness
• Leadership Position. • Low Flexibility: Unlike Dell, HP
• Consumer Centric Brand. does not have high
• Strong after sales service. customization available.
• Design Strategy: looks. • Decline in digital
• Cost Strategy. entertainment market.
• Software Service.

Opportunity Threat
• PC business. • Pricing pressure.
• Service Industry: Bought • Component pricing.
World’s no.2 service provider, • Slow revenue growth.
EDS.
 HP : Market Strategy
• Maintain Status Quo as market leader, and continually innovate to strengthen
position.
• Products: Notebooks, Tablet PCs, Desktops, Gaming Systems, Printers, Toner,
Paper, Scanners, Monitors, Servers, Software, Networking, Accessories.
• Pricing: Oracle's Siebel technology reducing marketing spends by 15%. Cut
notebook prices by 15 to 20% creating a volatile price war.
• Promotion: Innovative word of mouth marketing called the 31 days of dragon.
Associates with various Hollywood themes to target movie going audience.
• Place: Uses online method for booking. Has outlets in major cities.
• Product Development: HP has launched aggressively into the Indian market. Ease
of availability.
• Diversification: M&A: In August 2001 HP and Compaq came together to merge by
a 25 billion $ stock deal.
 Dell
Strength Weakness
• Inventory turnover rate is 6 days. • No proprietary technology.
• Revenue Growth at 100%. • High dependency on component
• Cost efficiency. suppliers.
• Direct to customer business model: • Lack of Software Support for
minimum credit risk. customers.
• Latest technology Customization.
• Internet sales leadership: $5M
everyday, worldwide.

Opportunity Threat
• Network service in B2B. • Dell’s market share very less.
• Strong potential in China and India. • Price range considered premium.
• Low costs and advanced • Currency fluctuation.
technology. • Political instability.
• Growth in business, education and • Tariff trade barriers.
government markets.
 Dell : Market Strategy
• Products: PC, laptops, customer service, storage, workstations, and auxiliary
services.
• Pricing: Direct Model approach, pricing below competitors.
• Promotion: On-line model, direct mail order, catalogues, Premier Pages, special
training and certifications, editorials, reviews, sales reps, and awards.
• Place: Direct from Dell: On-line, telephone, mail-order.
• Market Penetration: Continue to do more of the same.
• Product Development: Pursue Mid-Range Server Growth. By 2001, Dell was the
market leader in entry level servers, but had no presence in the mid-range server
market.
• Increase product line: New products like a PDA.
• New International Market Development: Enter new markets with existing
products.
• Merger and Acquisitions: By 2000, the external storage market was growing at
23% per year. By acquiring an innovative leading company like the EMC
Corporation, Dell can effectively enter the external storage and software market
 Lenovo
Strength
• National Image (China)
• Knowledge about local market:
Lenovo excels in its strategy for
the Chinese market.
• Strong R&D: Taken over from
IBM.
• Mass manufacturing capability.
• Quick Responsiveness.
Opportunity
• Import barrier.
• Increasing global demand.
• Internet boom.
• Growing wireless pc market.
• Government’s association.
Weakness
• Poor global brand perception.
• No pure electronic sales
• Low inventory turnover: About 40
days.
• Poor After sales service.
• Limited knowledge of global
market.
Threat
• Heavy competition.
• Industry reaching maturity.
• Software piracy and clone market.
• Little firms’ growth.
Part 5

UNFULFILLED NEED
 Up gradation of Laptop
• We are expecting that the up gradation of laptops will be one
of the most important requirements of the people owning
laptops. If the laptops are made compatible enough to
integrate these up gradations and also done at a reasonable
price, it will attract more customers to the product.
 Secondary (Second Hand) Market
• People buy second hand, because it is very easy to change the
parts of a PC. It is expected that given the chance of buying
the laptop second-hand with proper provisions of warranty
and reasonable price exchange people will buy it.
 Survey & Analysis
• Main areas and features a company should concentrate on should be, strive to provide the best possible customer
experience.
• Demography: The age group was primarily 18 to 35 years. A majority number of respondents were from the Indian
subcontinent. Around 15 percent of the respondents were from USA.
• The respondents were majorly students and professional. Almost all had used a laptop or possessed a laptop. An
interesting result was that most of the people who used the laptops gave ratings as “good” and “very good” to the
performance of the products they had used. The respondents wanted an Apple laptop when given a choice for the “dream
laptop”. Dell was the first runner up followed closely by HP.
• The hardware specifications are the first choice for the users when choosing a laptop. The second choice is the brand
name followed closely by price. Warranty & Services, Mobility, Design and Bundled Software follow suit. This is an
interesting insight to the user preference and can prove handy to laptop manufacturers when constructing a laptop for the
target audience.
• pricing: Respondents were ready to pay a high price for quality and sturdiness.
• Need: upgrade the laptop. About one – third of the respondents do not want an upgrade of their laptop.
• An open ended question on the features required on the laptop gave an amazing insight into the needs. Unfulfilled needs
–
• Battery management
• Heat Control in the laptops
• TV tuner card
• Light weightiness
• Keyboard Lighting
 Meeting Unfulfilled Need
• 4 P’s to be catered:

• Product: The new product launched will have a better Battery management and heat controlled Laptops. The
Laptop will have an inbuilt TV tuner card and also will have a light weight. Additional feature provided will be
keyboard lighting. Full customization will be provided for customers.
• Price: The survey results indicate that the price of the laptops preferred by respondents is ranging from 30,000 to
50,000 Rs. A low pricing strategy can also be used by selling laptops lesser than competitors Laptops.
• Promotion:
• Television and Radio advertisements can be used to introduce the product in the market. Primetime
advertisements with taglines such as “you need it, you have it” can be used as this new product is introduced
catering the unfulfilled needs of the product. Also advertisements should be shown on news channels and sports
channels as the target market is students and professionals.
• Online, Newspapers and magazines can be used to support the initial promotion. As we are targeting professional
and students these mediums should be effectively used as this is the easiest way to reach our target audience.
• Place: Very effective distribution techniques should be used. As we have identified the unfulfilled need of up
gradation, then the process of up gradation should also be very easy and less time consuming. In metros free
home delivery of the parts can be done and engineers can go house to house to upgrade the Laptop. In small
towns all the laptop sellers can have a separate department for up gradation and all the up gradation related
queries and installations can be handled there separately.
Part 6

CONCLUSION
 ROAD AHEAD
• notebook industry is the future of personal client PC market. Based on predictions, the
mobile computing notebook devices market are subdivided as ultra mobile sub
notebook PCs and notebook PCs.
• Innovative educational laptops like, $100 laptops are also looked at as the products
which rule the future of Indian notebook market.
• Laptops with extensive multimedia features continue aiming to gain more personal,
home notebook users, whereas notebooks with longer battery life and higher
performance will continue to cater the needs of business professionals.
• Gaming industry being itself in very nascent stages. There are several series in Dell and
HP which cater to this group already. High speed connectivity and low weight
notebooks generally are most demanded ones today.
• HP being top performer in multimedia and personal computer section should try to
concentrate more towards capturing large organizations, and dell the vice versa.
• Though notebooks are seen as the replacement of desktops most of the times, it is still
a long way before notebooks sales overtakes that of desktops in number of units sold.
 REFERENCES
• www.mait.com [manufacturers association of information
technology] for Market Segmentation graphs
• policies.gov.in for government policies
• india.gov.in/govt/policies.php for government policies
• http://www.intelliquest.com/resources/technical/MarketSeg
mentationOverview_MBIQ_June24.pdf for Market
Segmentation
• http://www.utdallas.edu/~tskim/Lecture%20Note%206.pdf
for Market Segmentation
Thank You.

Questions.