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ON
AN ANALYTICAL STUDY ON THE MARKETING
STRATEGIES OF HCL INFOSYSTEMS LTD
PROJECT GUIDE:
SUBMITTED BY:
AVNEESH KUMAR
SESSION 2014-2017
DECLARATION
I hereby declare that the Summer Training Report conducted at An Analytical Study
on the Marketing Strategies of HCL Infosystems Ltd submitted in partial
fulfillment of the requirement of Bachelor of Management Studies (BMS) School of
Business, Galgotias University. It is my original work and the same has not been
submitted for the award of any other Degree/diploma / fellowship or other similar
titles or prizes.
Avneesh Kumar
Student Signature
ii
FACULTY CERTIFICATE
This is certified that the report titled An Analytical Study on the Marketing
Strategies of HCL Infosystems Ltd being submitted is a genuine work carried out
under my supervision and guidance.
iii
ACKNOWLEDGEMENT
There is always a sense of gratitude which one express to other for the helpful so
needy services they render during all phases of life. I would like to express my
gratitude towards all those who have been helpful to me in getting this mighty task of
training to a successful end.
With the deepest sense of esteem and gratitude I express my sincere thanks to
Mrs. Uma Luthra (Asst. Professor, School of Business, GU) under whose able
guidance I was able to learn much and successfully complete my summer training.
I would take this opportunity to thank all my family members for their helps &
suggestions during the course of project work. I am also thankful to all my friends
who gave me constant & continuous inspiration to complete this project.
Avneesh Kumar
Enrollment No. 1404103004
iv
PREFACE
Main aim of any Research, which is conducted in the market place to bring in light
hidden and basic facts, which effect or can affect the business of company in any
mode directly or indirectly. These hidden truths are basic facts, which are outcomes of
the research conducted and are known as findings. The information gathered from the
market, which can be accountable in the achievement the objective for the company is
basically known as findings. The result of assigned project in management studies is
also known as findings. People are not very much aware about other offerings like
software development, networking, Internet services, facility management and high
end solutions, they only know that HCL deals in desktops, laptops and servers. Most
of the people think that HCL is a typical hardware firm and has no relations with
software or software development.
In terms of cost HCL is at third position after Sahara and Zenith in desktop segment.
HCL is not focusing much on advertising in comparison to its competitors. Corporate
image of HCL is pretty good. It is equivalent to IBM, Compaq and HP. HCL give a
tough competition to the above-mentioned MNCs. According to Consumer
Satisfaction Index HCL is No.1 Company where as second and third positions are
bagged by Compaq, HP and IBM respectively. Customers are facing problem in New
Delhi related to after sales service provided by the competitors. In order to overcome
this problem in future HCL may open more service centers and use them as USP
while selling. HCL is also not advertising much for its products frequently in print
media and in television channel etc. advertising should be made frequent to let the
people remembered the name of HCL. Until and unless after sales service of the
company is not good, it is not possible for the company to increase the sales, HCL is
also facing this problem in some areas of Noida. Hence it is recommended that
company should open a few more service centers in the city.
TABLE OF CONTENTS
TOPIC
CHAPTER - 1
PAGE NO.
INTRODUCTION
1-37
12
13
37
CHAPTER - 2
38-44
2.1. Significance
40
40
2.3. Objectives
40
40
2.5. Methodology
41
CHAPTER - 3
CONCEPTUAL DISCUSSION
45-52
CHAPTER - 4
DATA ANALYSIS
53-78
CHAPTER 5
79-84
ANNEXURES
85-92
BIBLIOGRAPHY
93-94
vi
CHAPTER-1
INTRODUCTION
Indian IT-ITES growth has had a significant multiplier effect on the Indian economy.
Apart from the direct impact on national income and employment, the sector
has also contributed to the growth of several ancillary industries; a rise in directtax collection and an increase in consumer spend due to the significantly higher
disposable incomes.
The rapid growth of ITES-BPO and the IT industry as a whole has made a deep
impact on the socio-economic dynamics of the country. The sector has risen to
become biggest employment generator with the number of jobs added almost
doubling each year, has spawned a number of ancillary businesses such as
transportation, real estate and catering, and has contributed to a rising class of
young consumers with high disposable incomes.
TABLE A1: ELECTRONICS PRODUCTION (FINANCIAL YEAR)
(Rs. Crore)
Item
2012-13
1. Consumer
Electronics
11,200
11,950
12,700
13,800
15,200
16,800
2. Industrial
Electronics
3,750
4,000
4,500
5,550
6,100
8,300
3. Computers
2,500
3,400
3,550
4,250
6,800
8,800
4. Communication. &
Broadcast Eqpt.
4,000
4,500
4,500
4,800
5,350
4,800
5. Strategic
Electronics
1,450
1,750
1,800
2,500
2,750
3,000
6. Components
5,200
5,500
5,700
6,600
7,600
8,800
Sub-Total
28,100
31,100
32,750
37,500
43,800
50,500
7. Software for
Exports
17,150
28,350
36,500
46,100
58,240
78,230
8. Domestic
Software
Total
7,200
9,400
10,874
13,400
16,250
19,630
52,450
68,850
80,124
97,000
118,290
148,360
Market
Reach
HCL
has
rapidly
expanded
its
channel
presence.
Broadband Ready PC - Tying up with BSNL as well as MTNL and a focused joint
marketing program led to opening a new niche in consumers looking to connect
trouble free to Broadband services. This added to the performance and is going
stronger as the masses look towards Internet connectivity as major PC usage
model.
Single Window solutions for users - HCL Branded inkjet Printers, UPS and other
peripherals like TFT LCD Monitor upgrades, Stereo Speakers etc.
At a time when the notebook market in India is poised for rapid growth and the
customers are demanding mobility and looking for ways to make it easier for
them to work and live life in a much more flexible way, HCL has announced its
foray into the mobile computing segment.
HCL launched the nations first segment-specific range of laptops, christened as HCL
Leaptops. A range of laptops, each with distinct features to particularly suit the
requirements of specific customer segments, available from a starting price of
Rs.27, 490/- available to the consumers at easy EMI options
A step forward in its pioneering efforts to take IT penetration to the rural areas of the
country, and adding to its rich bouquet of IT solutions for India, HCL launched
the Next-generation of rural PC, HCL Uday, in association with Intel, with
features including one-touch data recovery, power-backup through car battery
etc.
In the enterprise space HCL has bagged several prestigious orders from the private &
public sector, banks, the education segment, insurance majors, defence, leading
corporates etc. Toshiba notebooks continued to do well, bagging orders from a
number of corporate customers.
A number of new models like the 17 Quosmio were launched. A unique blend of
entertainment and IT, the model works as a 17 TV & DVD recorder, PC and
music system and targets high net worth individuals. Other models launched
this quarter include the Portege R 200, a 1.1 kg model for CXOs in addition to
the range of products in the Satellite series.
Revenue from the Telecommunication and Office Automation business was Rs 2525.2
crores as against Rs 1466.8 crores in the corresponding quarter of the previous
year, a growth of 72%. The Imaging business scaled an all time high
performance. All product lines have shown remarkable growth and contributed
to this success.
Desktop PC) market, the rankings remained unchanged - HP retained the top
slot with a market share* of 18%, followed by HCL at 14%, and Lenovo at 9%
in terms of unit shipments. In terms of total desktop PC shipments* HCL led the
market in the financial year 2011-12 followed by HP and Lenovo. In terms of
total notebook PC shipments* HP was the top vendor.
Table A2
Source: IDC's India Quarterly PC Market Tracker, 1Q 2012, May 2012 preliminary release
10
11
Market Share of Various Manufacturers in Over All Desktop Market for Year
2013
12
13
14
Shiv Nadar
Ajai Chowdhry
HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in
1976. For over quarter of a century, HCL have developed and implemented solutions
for multiple market segments, across a range of technologies in India. HCL have been
in the forefront in introducing new technologies and solutions. HCL Infosystems
(HCLI) draws it's strength from 29 years of experience in handling the ever changing
IT scenario, strong customer relationships, ability to provide the cutting edge
technology at best-value-for-money and on top of it, an excellent service & support
infrastructure. Today HCL is country's premier information enabling company. It
offers one-stop-shop convenience to its diverse customers having an equally diverse
set of requirements. Be it a large multi-location enterprise, or a small/medium
enterprise, or a small office or a home, HCLI has a product range, sales & support
capability to service the needs of the customer.
15
Last 29 years apart from knowledge & experience have also given us continuity in
relationship with the customers, thereby increasing the customer confidence in us.
Their strengths can be summarized as:
Ability to understand customer's business and offer right technology
Long standing relationship with customers
Pan India support & service infrastructure
Best-vale-for-money offerings
Technology Leadership
HCL Infosystems is known to be the harbinger of technology in the country. Right
from their inception HCL have attempted to pioneer the technology introductions in
the country either through their R&D or through partnerships with the world
technology leaders.
Using their own R&D, HCL have
Created their own UNIX & RDBMS capability (in 80s)
Developed firewalls for enterprise & personal system security
Launched their own range of enterprise storage products
Launched their own range of networking products
HCL strive to understand the technology from the view of supporting it post
installation as well. This is one of the key ingredients that go into their strategic
advantage.
HCL Infosystems has to its claim several technology pioneering initiatives.
Some of them are:
Country's first Desktop PC - BusyBee in 1985
Country's first branded home PC - Beanstalk in 1995
Country's first Pentium 4 based PC at sub 40k price point
Country's first Media Center PC
16
Guiding Principles
VISION STATEMENT
"Together we create the enterprises of tomorrow"
Mission Statement
"To provide world-class information technology solutions and services to enable
HCLs customers to serve their customers better"
Quality Policy
"We deliver defect-free products, services and solutions to meet the requirements of
HCLs external and internal customers, the first time, every time"
HCLS Objectives
Management Objectives
To fuel initiative and foster activity by allowing individuals freedom of action and
innovation in attaining defined objectives.
People Objectives
To help people in HCL Infosystems Ltd. share in the company's successes, which they
make possible; to provide job security based on their performance; to recognize their
individual achievements; and help them gain a sense of satisfaction and
accomplishment from their work.
Core Values
We shall uphold the dignity of the individual
We shall honor all commitments
We shall be committed to Quality, Innovation and Growth in every endeavor
We shall be responsible corporate citizens
Philosophy of Quality
"We deliver defect-free products, services and solutions to meet the requirements of
HCLs external and internal customers, the first time, every time." To exist as a market
leader in a globally competitive marketplace, organizations need to adopt and
17
18
HCLs fold. MAIT's Level II recognition is based on the 'European Foundation for
Quality Management' (EFQM), for gaining quality leadership and business
competitiveness. HCLs certifications / awards in 2009 include ISO 9001-2000 by
BVQI for HCLs InfoStructure Services and award of First Prize by ELCINA
(Electronic Component Industries Association) for Quality, 2008-09. The ELCINA
award criterion considers two aspects. (1) Enablers (Leadership & Management
commitment, Resource Management, Product Realization, Measurement Analysis &
Improvement) and Results (Product Quality, Customer / Stake holder satisfaction,
Business results). The tryst for continuous quality improvement is never-ending in
HCL Infosystems. We always strive to maintain high quality standards, which help us
fulfill HCLs mission to provide world-class information technology solutions and
services, to enable HCLs customers to serve their customers better.
19
ABOUT HCL
In the early 70s, a group of young, enthusiastic and ambitious technocrats embarked
upon a venture that would make their vision of IT revolution in India a reality.
Shiv Nadar and five of his colleagues got together and in 1975, setup a new
company called Micro comp. To start with they decided to capitalize on their
marketing skill Micro comp marketed calculators and within a few months of
starting operations, company was outselling its major competitors. In 1976,
Micro comp approached UPSEC (Uttar Pradesh State Electronics Corporation)
for help to setup a computer company. Impressed by their technical and
marketing competence, UPSEC agreed to setup a joint venture.
On the August 11, 1976 Hindustan Computers Limited was incorporated as a joint
venture between entrepreneurs and UPSEC and with an initial equity of Rs.
1.83 Lakhs.
\
Ajai Chowdhry
Chairman and CEO, HCL Infosystems Ltd.
Source: www.hclinfosystem.com
20
Source: www.hclinfosystem.com
HCL A Snapshot
The HCL Enterprise comprises two companies listed in India, HCL Technologies and
HCL Infosystems. HCL Technologies is the IT and BPO services arm focused
on global markets, while HCL Infosystems is the IT hardware and system
integration arm focused on the Indian market. Together, these entities have
uniquely positioned HCL as an enterprise with service offerings spanning the IT
Services and Product spectrum.
21
Source: www.hcl.in
22
Source: www.hcl.in
23
The menu of HCL Infosystems global services broadly covers IT consulting and
professional service in the area of vertical applications, technology integration,
ERP implementation and software development. This also includes a complete
portfolio of systems and network services for development. This also includes a
complete portfolio of systems and network services for Financial Management,
Helpdesks, System Supports and network and Internet Implementation. HCL
Infosystems global customers include Samsung, Govt. of Singapore and AMAL
Insurance, Jurong Port in Singapore, Malaysians BSN Commercial Bank, SIA,
DBS Bank, Maybank Life Assurance, Charted Semiconductors, Asia Matsushita
and Shell Malaysia. Some of its global customers in government sector are
Inland Revenue Authority of Singapore, Civil Aviation Authority of Singapore,
Singapore Power, Ministry of Education, Health and National Development,
Telecom Authority of Singapore and Penang State Govt.
HCL Infosystems chosen platform of total technology integration lends itself to some
very significant alliances with global leaders. Among its partner are HP for
high end AISCE/UNIX services and workstation and HP open view network
management solution, Intel for PC and PC server building blocks, Microsoft,
Novell, SCO AG Solutions, Red Hat, Linux, Samsung, Pivota for CRM solution
and ORACLE Sybase and Informix for RBMS platform.
24
Source: www.hcl.in
25
26
In Kerala the Frontline Division is represented by its state franchisee Team Frontline
Pvt. Ltd.. It is an ISO 9001 certified company and an extremely customer
focused IT provider.
ADVANTAGE
Staying competitive in todays dynamic business environment means finding new
ways to reduce costs while maximizing the value of your technology and
personal resources. More than ever, your ability to "do more with less"
determines how successful your organization will be. Thats why HCL
Infosystems helps you achieve. By channeling our in-depth expertise gained
from over 28 years of IT Domain experience. We provide a full bandwidth of
services specifically designed to meet your complete IT needs. And as a single
window for completing business solutions wherever you are located...
We make IT possible to save money...we tell you where as well as time ...we show
you how
The 6 S
Solutions
The one stop shop solution center for all your IT needs, customized to meet and scale
with your unique Business Needs.
Services
A range of value added services in IT infrastructure operations and management.
27
Support
Pan-India footprint of support and logistics locations. Over 260 Direct service support
locations. Technically sound workforce of over 1700 certified professionals.
Standards
World Class Quality standards maintained for PPP (People, Processes &
Performance). Alliance with global technology leaders.
Savings
We help you find new ways to reduce costs & "do more with less" by maximizing the
value of your technology and personal resources, thereby reducing your total cost of
ownership (TCO).
Satisfaction
Complete Satisfaction for the customers through the HCL 6S offering that enables one
to maximize system uptime through rapid response and resolution services, thereby
optimizing your IT investments.
ACHIEVEMENTS
FOUNDATION OF THE COMPANY LAID
28
1976
Introduces microcomputer-based programmable calculators with wide acceptance
in the scientific / education community
Launch of the first microcomputer-based commercial computer with a ROM
-based Basic interpreter
1977
Unavailability of programming skills with customers results in HCL developing
bespoke applications for their customers
1978
Initiation of application development in diverse segments such as textiles, sugar,
paper, cement, transport
1980
Formation of Far East Computers Ltd., a pioneer in the Singapore IT market, for
SI (System Integration) solutions
1981
Software Export Division formed at Chennai to support the bespoke application
development needs of Singapore
HCL launches an aggressive advertisement campaign with the theme ' even a
typist can operate' to make the usage of computers popular in the SME (Small &
Medium Enterprises) segment. This proposition involved menu-based applications
for the first time, to increase ease of operations.
The response to the advertisement was phenomenal.
1983
HCL develops special program generators to speed up the development of
applications
Bank trade unions allow computerization in banks. However, a computer can only
run one application such as Savings Bank, Current account, Loans etc.
29
HCL sets up core team to develop the required software - ALPM (Advanced
Ledger Posting Machines). The team uses reusable code to reduce development
efforts and produce more reliable code. ALPM becomes the largest selling
software product in Indian banks
1985
HCL designs and launches Unix- based computers and IBM PC clones
HCL promotes 3rd party PC applications nationally
Zonal offices of banks and general insurance companies adopt computerization
Purchase specifications demand the availability of RDBMS products on the
supplied solution (Unify, Oracle). HCL arranges for such products to be ported to
its platform.
1986
HCL assists customers to migrate from flat-file based systems to RDBMS
HCL enters into a joint venture with Hewlett Packard
1991
HP assists HCL to introduce new services: Systems Integration, IT
consulting, packaged support services (basicline, teamline)
HCL establishes a Response Centre for HP products, which is connected to the HP
Response Centre in Singapore.
There is a vertical segment focus on Telecom, Manufacturing and Financial
Services
1994
HCL sets up core group to define software development methodologies
HCL acquires and executes the first offshore project from IBM Thailand
1995
Execution projects for Germany and Australia Begins Help desk services
Sets up the STP (Software Technology Park) at Chennai to execute software
projects for international customers
30
1996
Starts execution of Information System Planning projects
Becomes national integration partner for SAP
Kolkata and Noida STPs set up
1997
HCL buys back HP stake in HCL Hewlett Packard
1998
Chennai and Coimbatore development facilities get ISO 9001 certification
1999
HCL ties up with Broadvision as an integration partner
Acquires and sets up fully owned subsidiaries in USA and UK Sets up fully
owned subsidiary in Australia
2000
Bags MAIT's Award for Business Excellence
Rated as No. 1 IT Group in India
Launched Pentium IV PCs at below Rs 40,000
2007
IDC rated HCL Infosystems as No. 1 Desktop PC Company of 2007
2008
Chennai and Coimbatore development facilities get SEI Level 4 certification
Bags Award for Top PC Vendor In India
Becomes the 1st IT Company to be recommended for latest version of ISO 9001 :
2000
2009
Realigns businesses, increasing focus on domestic IT, Communications & Imaging
products, solutions & related services
31
2010
HCL Infosystems' Info Structure Services Division received ISO 9001:2000
certification
Launches Infiniti Mobile Desktops on Intel Platform
Launched Infiniti PCs, Workstations & Servers on AMD platform
Became the first vendor to register sales of 50,000 PCs in a quarter
First Indian company to be numero uno in the commercial PC market
Enters into partnership with AMD
Launched Home PC for Rs 19,999
2011
IDC India-DQ Customer Satisfaction Audit rates HCL as No.1 Brand in Desktop PCs
Maintains No.1 position in the Desktop PC segment for year 2009
Enters into partnership with Port Wise to support & distribute security & VPN
solutions in India
Partners with Microsoft & Intel to launch Beanstalk Neo PC
Becomes the 1st company to cross 1 lac unit milestone in the Indian Desktop PC
market
Partners with Union Bank to make PCs more affordable, introduces lowest ever EMI
for PC in India
Launched RP2 systems to overcome power problem for PC users
Registers a market share of 13.7% to become No.1 Desktop PC company for year
2010
Crosses the landmark of $ 1 billion in revenue in just nine months
HCL completes buy out of JVs with Deutsche Bank and British Telecom
2012
Boeing inks 787 Dreamliner design deal with HCL
HCL infrastructure ranked No.1 service provider - CMP
32
Source: www.hcl.in
33
SERVERS
Intel Servers
Infiniti Global Line Servers
IGL Entry Level Servers
IGL True Enterprise Servers
IGL Blades Servers
IGL Itanium Servers
Infiniti Solutions
AMD Opteron Servers
Infiniti Xcel Line 2200AT
Infiniti Xcel Line 2200MI
Infiniti Xcel Line 2200AZ
Infiniti Xcel Line 4200TL
Other Servers
SUN Servers
HP Risc Servers & Workstations
THIN CLIENTS
Winbee Thin Clients
SUN Thin Clients
DISPLAY PRODUCTS
SUN Thin Clients
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NETWORKING PRODUCTS
WinSmart Switch
SNMP Managed Switch
SECURITY PRODUCTS
HCL InfoWall
HCL InfoSecuAccess
HCL InfoVPNe
HCL InfoSecuMon
HCL InfoNetMon
HCL InfoSurveillance
HCL InfoSecuDesk - Biometric
Logon
HCL InfoSecuDesk - SmartCard
Logon
HCL InfoSmartCard
HCL InfoLoadBalancer
HCL InfoSMS
HCL InfoDashboard
HCL InfoAttendance
HCL InfoAttendance - BN model
HCL InfoAttendance - SN model
STORAGE SOLUTIONS
HCL Storage Solutions
HCL Infiniti SAN ARRAY 2502FC
HCL IGL NAS Servers
IGL NAS 1400 BT
IGL NAS 2700 SP
IGL NAS 2700 BD
SUN Storage Solutions
EMC Storage Solutions
TOSHIBA NOTEBOOKS
35
36
SOLUTIONS
Infostructure Services
Networking Services
Security Services
Facilities Management Services
Domestic Hardware Services
SOFTWARE LICENSES
HOME PCS
HCL Beanstalk
HCL recommends Windows XP Professional
37
It is faster than the fastest home computer. The HCL BeanStalk comes equipped with
the lightening fast Intel Pentium 4 processor which means customer can now get
mind blowing multimedia performance from customers computer. With its high
performance processor, it brings customer the Internet like no other computer can. So
get ready to experience 3D graphics, virtual reality and realistic audio-video, like
never before.
The HCL BeanStalk with Intel Pentium 4 processor, the centre of customers
digital world, is designed to meet not just customers today's computing
requirements, but also the needs of customers future. So bring home the HCL
BeanStalk today and stay ahead of the rest of the world.
HCL RECOMMENDS WINDOWS XP MEDIA CENTER EDITION
38
HCL EZEEBEE
HCL RECOMMENDS WINDOWS XP PROFESSIONAL
The HCL Ezebee is the complete All-in-one PC brought to you by India's No. 1 IT
Brand, HCL. With amazing performance and prices lower than other assembled
PCs, the HCL Ezeebee is the most affordable Quality PC.
39
HCL LEAPTOPS
HCL recommends Windows XP Professional
40
Weakness
Not been able to establish an entry barrier for competitors.
Services provided are not up to the mark.
Channel Partners of HCL are not much capable in order to provide best services to
the potential customers.
Opportunity
HCL products due to their price and quality factor over the other competitors are
gaining popularity. HCL should capitalize on to this and can have the maximum
sales out of it.
The new technology that is being provided by HCL is one big opportunity for
HCL and HCL should come to the market continuously with innovative and new
technology products.
Lower rates of different models give opportunity to HCL for grabbing the
assembled PCs market.
Threats
Possibility o more new entrants into the same business cannot be ruled out.
HCL PCs are facing a tough competition from Compaq, HP and IBM in higher
segments and from Sahara and Assemblers in lower segment.
HCL is also facing a tough competition from Compaq and HP in higher & middle
segment and from Sahara in lower segment of Laptops market.
41
CHAPTER-2
OBJECTIVE AND METHEDOLOGY
42
2.1. SIGNIFICANCE
Today in the market consumers have a lot of options for every product, whether it be
an IT products or Home PCs or consumer durable or a FMCG product. This study
may be helpful for company to know about the factors affecting the buying behavior
and patterns of the customer. It may also be helpful to know the specific requirements
of customer so that customer can be easily satisfied. Moreover, this study helps to
know the buying habits and patterns of customer in Delhi for HCL PCs and to have
knowledge about IT market of Delhi.
The study may be helpful for company to know the preferences for company
of customers for IT products and it would help in making marketing strategy
for future.
This study shows the efforts taken towards the promotion of core products of
the company.
2.3. OBJECTIVES
43
The study may be helpful for company to know the preferences for company of
customers for IT products and it would help in making marketing strategy for
future.
Market share of company expresses the customers preference. This study shows
the efforts taken towards the promotion of core products of the company.
2.5. METHODOLOGY
Defining the problem is the most important part of the market research process,
because wrong definition misdirects research. The type of the research to be carried
out, the questions to be raised, and the sampling procedure to be followed and the data
to be collected, all depend on the current understanding of the problem.
HCL is having tough competition in the market with other players, these players are
assemblers and branded. There are many factors, which influence the buyer for
purchasing the PC. One of these factors is sales and promotional activities as well. A
major step in the conduction of marketing research is the decision regarding the
nature of research design we are selecting for the purpose of our study.
The benefits of research design are that it evaluates clients need in terms of results
and the analytical work on the gathered data that will convert it to useful findings for
the management. The selection of a particular design depends on the causality of the
variables involved. For the purpose of my study I intend to take up descriptive design.
Research Approaches
Primary data can be collected in five ways: Observation, Focus groups, Surveys,
44
Behavioral-data, and
Experiments.
Observation Research
Fresh data can be gathered by, observing the relevant actors and settings.
Survey Research
Surveys are best suited for descriptive research. Companies undertake surveys to learn
about people's knowledge, beliefs, preferences, and satisfaction, and to measure
these magnitudes in the general population.
Data Sources: The researches can gather secondary data, primary data, or
both. Secondary data are data that were collected for another purpose and
already exit some-where. Primary data are gathered for specific purpose or for
a specific research project.
When the needed data do not exist or are dated, inaccurate, incomplete, or unreliable,
the researcher will have to collect primary data. Most marketing research
projects involve some primary data collection.
Similar is the case in my project. For the purpose of my study I have collected
primary data in the form of
1) Nature of Data, and
2) Its function in the ultimate interpretation and analysis.
Types of Data
Demographic
Sociological
45
Psychographics
Behavioral
Here I am going to analyze the opinions that how people perceive something what
they believe about it and what those believes signify. The most potent form of
opinions tends to be attitudes, which are mental sets of pre-dispositions to act in some
manner. Here in my
46
Research Instruments
Marketing researchers have a choice of two main research instruments in collecting
primary data: Questionnaires and mechanical devices.
Questionnaires
A questionnaire consists of a set of questions presented to respondents for their
answer. Because of its flexibility, the questionnaire is by far the most common
instrument used to collect primary data. Questionnaires need to be carefully
developed, tested, and debugged before they are administered on a large scale.
In preparing a questionnaire, the professional marketing researcher carefully chooses
the questions and their form, wording, and sequence. The form of the question
asked can influence the response. Marketing researchers distinguish between
closed-end and open-end questions. Closed-end questions pre-specify all the
possible answer. Open end-questions provide answers that are easier to interpret
and tabulate. Open-end questions often reveal more because they do not
constrain respondents, answers. Finally, the questionnaire designer should
exercise care in the wordings and sequencing of questions. The questionnaire
should use simple, direct, unbiased wording and should be pre-tested with a
sample of respondents before it is used. The lead question should attempt to
create interest.
47
2. SAMPLE SIZE: Next important question arises: What is the size of population to
be surveyed? Large samples give more reliable results than small
samples. However, it is not necessary to sample the entire target
population or even a substantial portion to achieve reliable results. In
all 9 channel partners and 100 customers of HCL Infosystems were
interviewed and questioned in NCR Delhi.
Data Source
To meet with Channel Partners and asked to fill structured questionnaire and
secondary data was also collected. Personal interviewing is the most versatile
method. The interviewer can ask more questions and record additional
observations about the respondent, such as dress and body language. Personal
interviewing takes two forms. In arranged interviews, respondents are contacted
for an appointment.
Intercept interviews involve stopping people at a shopping mall or busy street corner
and requesting an interview.
Collect the Information
The data collection phase of marketing research is generally the most expensive and
most prone to error. The information collected should be both accurate and
relevant as per as the requirements of research project. Depending on the
requirement, the researcher has to work out a suitable data collection method.
Data Collection Methods can broadly be classified into two major categories listed
below:
Primary Methods: When a researcher directly collects data then this method is
known as primary method e.g. interview and questionnaire methods.
Secondary Methods: The data are termed secondary data when they were not
originally collected for use in the research project under consideration; they were
collected rather for use by some other person or for some other project.
48
CHAPTER -3
CONCEPTUAL DISCUSSION
49
Product Planning
HCL take good and effective decision on the faith of their existing product along with
their future products. This is a continuous process, which is taken into
consideration by HCLs top management.
HCL have an R&D Department, which focuses on to the continuous innovation in
order to make HCL the best in todays cutthroat competition
Market Segmentation
Market Segmentation means dividing the market into distinct group of buyers keeping
in mind demographics, psychographics and behavioral differences among the buyers.
Who might require different products or marketing mixes?
50
A market segment consists of a group of people who share similar set of wants. A
segment is partly a fiction, in that not everyone wants exactly the same thing.
HCL has classified people into the following segments as per their living standards:
Lower Middle Class
Middle Class
Upper Middle Class
Higher Class
Pricing Policies
India a country where the price of a product can define its faith in the market, hence
we can say that India is a very price sensitive market. Price refers to the value
of products attributes. Expressed in monetary terms price is the value, which a
customer pays to adhere or to avail a service or utility or a product At HCL,
pricing policy decisions are taken by the top management after following the
prices of the components and prices quoted by the competitors. After this a
parallel pricing policy is developed in which: Bundles are created and products
are marketed accordingly in every region.
Profit margins are kept into consideration, etc.
HCL gives 6 to 8 percent margin to their Channel Partners or Demo Centers, and
company gets X% profit in return. HCLs main objective is service rather than
profit. No doubt there is profit but pricing policy is just to meet minimum
margin to have a competitive edge over the assembled PCs market. HCL
believes in wealth maximization rather than profit maximization.
Sales Promotion
Sales Promotion, a key ingredient in marketing campaigns, consists of diverse
collection of incentive tools, mostly short term, designed to stimulate quicker or
greater purchase of particular product or services by consumers or the trade.
51
Promotional Activities
52
Description of Activities
Promotional activities always give some kind of a result, this was the basic learning,
which I got in this training and I must say that the promotional activities
performed by HCL for their channel partners has given a drastic boom to sales
of Home PCs in Noida region.
Different ways in which HCL promote their products are:
Employee Purchase Programme (EPP).
Road Shows.
Mega Events.
Personal Selling or Door-to-Door Selling.
Special Offers.
53
Suggestions
A team of employees can be made specially for organizing the EPP.
Sales Manager, Sales Executive and Trainees can be included in this team.
This team can organize the EPP on the continuous basis in the organizations after
certain period of time.
Scope of EPP for HCL in Noida is very good because there are a large number of
Industries and various Industrial areas as well as large no. of organizations.
The team can carry out following activities:
Maintain a record of concerned persons in each and every organization.
Remember these concerned persons on certain occasions for good corporate
relationships.
Can send detail about new products and schemes launched by the company on
time-to-time basis.
Database of that organization should be separated where more opportunities are
for the company.
Detail about competitors, who are also organizing EPP, should be collected for
better performance in the future.
Feedback about the EPP should be collected; it may help in further improvement
in future EPPs.
54
Road Shows
Road show is also an effective promotional activity and most of companies are using
it. HCL is also using this promotional tool very aggressively in Noida; this tool is a
great help in getting the attention of the targeted customers. The procedure of road
show is to setup a CANOPY at the road side in different markets or public places
where the no. of footfalls is high and where chance of getting noticed is high too.
Hence, we may conclude that a CANOPY should be set up at prime locations like in
the market place, etc. One or two employee of the company or trainees should be
present in the CANOPY with leaflets and other related material of the company.
We distribute the leaflet in public and also answer queries generated by the visitors. It
is an easy and effective way to generate queries for the follow-ups, which can help in
converting the interested person(s) into customer(s). Road show also can be done with
Mega Events. It helps in increasing the awareness about the special schemes and
offers by the company to the public.
Mega Events
HCL is organizing mega events in Noida very aggressively. These events are
organized at public palaces. Appropriate location in a good market, in schools,
colleges, and also in residential colonies or societies where potential customer is
available, for the success of event.
In schools and colleges these events can be organized on particular day, for e.g.
annual day, teachers day, cultural day and other special occasions so as to have a
maximum reach and convert the calls to customers or clients.
Special Offers
Channel partner of HCL give special discount offers to their customers on the behalf
of the company in order to sell or promote the product of the company. These special
offers are like the special offer in summers or in the Festive season. These special
offers are helpful for customers in decision making because when customer compare
the price and benefit of HCL Home PCs with other competitors then he can easily
55
make out the difference and choose HCL because he/ she is getting best deal with
HCL due to that offer.
Follow Up: Database of interested customers can be collected through EPPs or Mega
Events or Road Shows and is very helpful in sales promotion and selling of a product.
These interested persons can be followed up by tele-calling Calling should convince
customer and if possible convince the customer to visit the demo center of the
company. Not all but some of them may get converted into customers.
Personal Selling
Personal selling is also an effective method to maximize the sales and is a good way
for sales promotion. Under this activity an employee or a trainee of the
company make visits to cyber cafes, computer coaching centers, big showrooms
& shops and malls, in order to have some benefit for the company. New queries
can be generated by this way, which may also be converted into sales because
this method gives the customer importance and the person can feel it. Queries
that are generated by EPP, Mega Events, etc. can also be used to make personal
visits to convince the prospective customer and convert him/her to a customer.
56
CHAPTER-4
DATA ANALYSIS
57
PART-1
11%
45%
44%
Interpretation
It is very much evident from the chart that 45% of the people are selling computers
from last 5 years. Hence we may conclude that company should increase the no. of
channel partners in order to serve the need of the consumer and to be with the
competition.
58
34%
22%
22%
11%
10%
01%
Interpretation
This can be straight said that HCL is most Customer oriented brand but if we take HP
Compaq combined it is the second largest most customer oriented brand in the
market.
59
67%
22%
11%
Interpretation
According to 67% of Channel Partners there is tremendously high market potential for
HCL EzeeBee in the market. . This can be interpreted from the graph that this product
is fairly popular as well but the company should add some innovations to this product
and market it then after this product can be a great success.
60
56%
33%
11%
Interpretation
According to 56% of Channel Partners there is tremendously high market potential for
HCL BeanStalk. This shows that if HCL BeanStalk has a very good market
potential if utilized properly can yield excellent results for Company.
61
45%
33%
22%
Interpretation
According to Channel Partners 45% of customers prefer HCL EzeeBee than the PCs
by other competitors in the same segment. The chart above shows that
consumers know about the product and prefer this product fairly well, hence, it
can be stated that this product is a good product but a few changes or
innovations in the product can make it a excellent product to target a particular
segment at a reasonable price.
62
High
Medium
Low
67%
22%
11%
Interpretation
According to Channel Partners 67% of customers prefer HCL BeanStalk than the PCs
by other competitors in the same segment. This graph shows that this product is
in good demand by the consumer and the company should focus on to it and try
to capitalize on this product.
63
Rating Scale
S. No.
1
2
3
4
5
6
7
8
9
10
Good
Average
Poor
Interpretation
64
Product Display
6
6
4
6
4
8
6
4
6
50
None
0
Poster Display
4
6
6
6
4
8
4
4
6
48
It is evident from that the product display is very good at Fortech Computers, Noida
and Precomm Computers, Noida and at Advance Infotech, Noida poster display
as well as product display both are good; And overall in-shop promotional
activities of the channel partners is good.
65
8. Scheme to Customer
Criteria
Very High
High
Moderate
Poor
Rating Scale
None
0
Scheme Name
Bundle Offer, Free Tour Package,
1,2,3,4
Free CD Pack, Free Upgradation of RAM Very High, Low, High, Moderate
Scale
S. No.
Demand
9
8
7
6
5
4
3
2
1
0
Demand
Bundle Offer
Free Tour
Package
Free CD
Pack
Free
Upgradation
of RAM
Schemes
Interpretation
The above chart reveals that the Bundle offers are very popular scheme among the
customers. This scheme also gives the sales volume to the company because
this scheme is available with all models of HCL PCs. Company should also
focus on various other customer-oriented schemes.
66
Criteria
Rating Scale
S. No.
1
2
3
4
5
6
7
8
9
Good
6
Average
4
Product Display
6
6
4
4
4
8
4
4
6
46
Poor None
2
0
Poster Display
4
6
4
6
4
8
4
4
6
46
Interpretation
The above table and chart reveals the effect of product display and poster display in
Showroom of Channel Partner or Demo Center. Both the displays create more
awareness about the HCL products and also useful in creating demand for the
product; And the overall effect of product and poster display according to
different channel partners is good.
67
Good
6
Average
4
Poor None
2
0
Effects
4
6
4
4
6
8
4
4
6
46
9
8
7
6
5
4
3
2
1
0
e-infosoft,
SM World,
Sahibabad
Advance
Infotech,
Gzb
Electronic
Plaza, Gzb
Fortech
Computers,
Gzb
Ample
Computers,
Gzb
Precomm
Computers,
Gzb
Effects
Express
Computers,
Gzb
Rating Scale
Effect of Catalogue
Interpretation
The catalogue is very effective tool for selling. It is beneficial for the customer as well
as company. It increases awareness about the company products, product depth
etc. Overall effect of catalogue according to different channel partners is good.
Hence, demand of different HCL products can be increased if catalogue is used
in proper way
68
Canopy
Ads in Newspapers
Direct Marketing
Insertions
EPP
Cant Say
34%
22%
22%
10%
11%
01%
Interpretation
Canopy is the most effective and efficient activity, AD in News Paper and Insertions
are other effective Activities. I also found an excellent medium to reach to the
target customers and with this approach the company can reach to the more
people and educate them about the project.
69
Criteria
Very High
High
Moderate
Low
None
Rating Scale
S. No.
1
2
3
4
5
Problem
Desktop
Supply of Product
a) From Company
b) From Distributor
Time of Delivery
Packaging
Model Version
Scheme
Very High
Moderate
High
Low
High
High
Laptop
Moderate
Low
Low
Low
Moderate
Moderate
Interpretation
It is very much evident from the table and graph, above, that the main problem of the
channel partners is with the supply of product. Hence, company should give
attention towards it. Otherwise chances are more for shift of brand for current as
well as prospective customers.
70
PART-1
Questionnaire Analysis
1. Computers Has Become A Necessity These Days, Do You Agree?
YES
90%
NO
10%
Interpretation
Almost all the respondents argued to the fact that Computers have become the
utmost priority in modern times. Therefore it is a good opportunity for the
companies like HCL & HP to explore the maximum market opportunities.
71
NO
10%
Interpretation
Respondent agree in majority that they are very well aware about HCL
infosystems as a brand.
72
3. Awareness about HP
YES
90%
NO
10%
Interpretation
Respondent agree in majority that they are very well aware about HP as a brand.
73
4.
Are you aware that HCL & hp offer many products other than the
computers?
YES
70%
NO
30%
Interpretation
Respondent are aware at large that the companies like HCL and HP manufacture
other computer Hardware as well in additions to PC.
74
40%
40%
20%
Interpretation
HCL seems to have an edge over HP, according to the customers response.
However these two combined together constitute the bulk of the market share in
India.
75
NO
25%
Interpretation
75% of the total respondents expressed their satisfactions about the performance
of HCL Infosystems.
YES
70%
NO
30%
Interpretation
70% of the total respondents expressed their satisfactions about the performance
of HP.
77
40%
30%
30%
Interpretation
78
60%
40%
Interpretation
60% of the Respondents appeared their satisfaction about the pricing structures of
HCL. The company still needs to work hard on its pricing strategy to satisfy the
remaining 40% of the customers.
79
CHAPTER-5
FINDINGS AND RECOMMENDATIONS
80
It is very much evident from the chart that 45% of the people are selling
computers from last 5 years. Hence we may conclude that company should
increase the no. of channel partners in order to serve the need of the consumer and
to be with the competition.
This can be straight said that HCL is most Customer oriented brand but if we take
HP Compaq combined it is the second largest most customer oriented brand in the
market.
According to Channel Partners 45% of customers prefer HCL EzeeBee than the
PCs by other competitors in the same segment. The chart above shows that
consumers know about the product and prefer this product fairly well, hence, it
can be stated that this product is a good product but a few changes or innovations
in the product can make it a excellent product to target a particular segment at a
reasonable price.
According to Channel Partners 67% of customers prefer HCL BeanStalk than the
PCs by other competitors in the same segment. This graph shows that this product
is in good demand by the consumer and the company should focus on to it and try
to capitalize on this product.
It is evident from that the product display is very good at Fortech Computers,
Noida and Precomm Computers, Noida and at Advance Infotech, Noida poster
display as well as product display both are good; And overall in-shop promotional
activities of the channel partners is good.
81
The above chart reveals that the Bundle offers are very popular scheme among the
customers. This scheme also gives the sales volume to the company because this
scheme is available with all models of HCL PCs. Company should also focus on
various other customer-oriented schemes.
The above table and chart reveals the effect of product display and poster display
in Showroom of Channel Partner or Demo Center. Both the displays create more
awareness about the HCL products and also useful in creating demand for the
product; and the overall effect of product and poster display according to different
channel partners is good.
The catalogue is very effective tool for selling. It is beneficial for the customer as
well as company. It increases awareness about the company products, product
depth etc. Overall effect of catalogue according to different channel partners is
good. Hence, demand of different HCL products can be increased if catalogue is
used in proper way
Canopy is the most effective and efficient activity, AD in News Paper and
Insertions are other effective Activities. I also found an excellent medium to reach
to the target customers and with this approach the company can reach to the more
people and educate them about the project.
It is very much evident from the table and graph, above, that the main problem of
the channel partners is with the supply of product. Hence, company should give
attention towards it. Otherwise chances are more for shift of brand for current as
well as prospective customers.
Almost all the respondents argued to the fact that Computers have become the
utmost priority in modern times. Therefore it is a good opportunity for the
companies like HCL & HP to explore the maximum market opportunities.
Respondent agree in majority that they are very well aware about HCL
infosystems as a brand.
Respondent agree in majority that they are very well aware about HP as a brand.
Respondent are aware at large that the companies like HCL and HP manufacture
other computer Hardware as well in additions to PC.
82
HCL seems to have an edge over HP, according to the customers response.
However these two combined together constitute the bulk of the market share in
India.
75% of the total respondents expressed their satisfactions about the performance
of HCL Infosystems.
70% of the total respondents expressed their satisfactions about the performance
of HP.
60% of the Respondents appeared their satisfaction about the pricing structures of
HCL. The company still needs to work hard on its pricing strategy to satisfy the
remaining 40% of the customers.
83
RECOMMENDATIONS
HCL has a good brand image in the field of home PCs. But HCL is not popular in
business segment where Laptops ad PCs are required. Company should also
promote these products and utilize its brand image.
HCL is also not advertising much for its products frequently in print media and in
television channel etc. advertising should be made frequent to let the people
remembered the name of HCL.
Relationship between the customer and the company is base of growth for any
company. Company should maintain good relationship with its big customers such
as institutions, corporate, schools, colleges and should also have good relations
with end users. Company can send cards and invitation to the customers from time
to time or on certain occasions.
Until and unless after sales service of the company is not good, it is not possible
for the company to increase the sales, HCL is also facing this problem in some
areas of Noida. Hence it is recommended that company should open a few more
service centers in the city.
84
CONCLUSIONS
Main aim of any Research, which is conducted in the market place to bring in light
hidden and basic facts, which effect or can effect the business of company in any
mode directly or indirectly. These hidden truths are basic facts, which are outcomes of
the research conducted and are known as findings. The information gathered from the
market, which can be accountable in the achievement the objective for the company is
basically known as findings. The result of assigned project in management studies is
also known as findings. The findings of this project are as follows:
Aggressive promotional strategy is being used by HCL in New Delhi HCL is a market
leader in IT products in New Delhi and have a close competition with Compaq and
HP.
People are not very much aware about other offerings like software development,
networking, Internet services, facility management and high end solutions, they only
know that HCL deals in desktops, laptops and servers. Most of the people think that
HCL is a typical hardware firm and has no relations with software or software
development.HCL, Compaq and HP are the companies that are on the top in the mind
of Brand Oriented or Brand Aware Customers. Cost and quality are two major factors
that are taken into consideration by people while making the purchase. People are
today more concerned about the after sales service which is a USP for HCL, since, it
has good service in comparison to the other market player. In technology and quality
HCL hold the second position after HP and Compaq combined. In terms of cost HCL
is at third position after Sahara and Zenith in desktop segment. HCL is not focusing
much on advertising in comparison to its competitors. Corporate image of HCL is
pretty good. It is equivalent to IBM, Compaq and HP. HCL give a tough competition
to the above-mentioned MNCs. According to Consumer Satisfaction Index HCL is
No.1 Company where as second and third positions are bagged by Compaq, HP and
IBM respectively.
Customers are facing problem in New Delhi related to after sales service provided by
the competitors. In order to overcome this problem in future HCL may open more
service centers and use them as USP while selling.
85
ANNEXURES
86
APPENDIX
Questionnaire
Name of Channel Partner
_________________________________________________
Location _________________________ Date of Visit ________________________
PART-1
87
High
Medium
Low
7. In-Shop Promotional Activities of Channel Partners
Criteria
Rating Scale
S. No.
1
2
3
4
5
6
7
8
9
Good
Average
Poor
Product Display
6
6
4
6
4
8
6
4
6
50
8. Scheme to Customer
Criteria
Very High
High
Moderate
Poor
Rating Scale
88
None
0
None
0
Poster Display
4
6
6
6
4
8
4
4
6
48
S. No.
Scheme Name
Bundle Offer, Free Tour Package,
Demand
1,2,3,4
Free CD Pack, Free Upgradation of RAM Very High, Low, High, Moderate
Criteria
Rating Scale
S. No.
1
2
3
4
5
6
7
8
9
Good
6
Average
4
Product Display
6
6
4
4
4
8
4
4
6
46
Poor None
2
0
Poster Display
4
6
4
6
4
8
4
4
6
46
Good
6
89
Average
4
Poor None
2
0
Effects
4
6
4
4
6
8
4
4
6
46
Canopy
Ads in Newspapers
Direct Marketing
Insertions
EPP
Cant Say
12. Problem of Channel Partners
Criteria
Very High
High
Moderate
Low
None
Rating Scale
S. No.
1
2
3
4
5
Problem
Desktop
Supply of Product
a) From Company
b) From Distributor
Time of Delivery
Packaging
Model Version
Scheme
Very High
Moderate
High
Low
High
High
90
Laptop
Moderate
Low
Low
Low
Moderate
Moderate
PART-1
NO
NO
3. Awareness about HP
YES
4.
NO
Are you aware that HCL & hp offer many products other than the
computers?
YES
NO
NO
NO
91
92
BIBLIOGRAPHY
93
Books
Marketing Management - Philip Kotler (Eleventh Edition, Pearson Education,
Inc.)
Principles of Marketing Philip Kotler, Gary Armstrong (Eleventh Edition,
Pearson Education, Inc.)
Marketing Research - G.C. Berry (Third Edition, Tata McGraw Hills)
Marketing Research - An Applied Orientation Naresh K Malhotra (Fourth
Edition, Pearson Education, Inc. Pearson Prentice Hall)
WEBSITES
http://www.hclinfosystems.com
http://www.hclperipherals.com
http://www.hcl.in
http://www.hclstore.com
http://www.google.com
http://www.channeltimes.com
http://www.idcindia.com
http://www.khoj.com
http://www.mit.gov.in
http://www.dqindia.com
Magazines
Business Today
Business Standards
January 6, 2014
94
Outlook
95