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MM Marketing - 10-Step Marketing Plan - by 3Musketeers

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HP's target market is small, medium, and large corporate enterprise businesses who want high-quality IT solutions and services. While HP offers comprehensive IT services globally, their prices are typically higher than competitors like IBM and Fujitsu. HP's strategy is to use all promotional methods worldwide and differentiate their products and services to become the number one IT services provider through quality and experience.

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10 Step Marketing Plan for Hewlett-Packard (Enterprise Services) Sarah Cate Emmanuel Junio Paul Maravillas March 2013
Disclaimer This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungrias AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are masked so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.
Steps 1 to 5 Summary headline of your PTM and market 1. Small, Medium and Large Corporate Enterprise businesses 2. Customers want the best high-quality IT solution and services to optimize business 3. Competing 3rd Party IT Service Providers (IBM and Fujitsu) or In-house support 4. Gap is all other IT vendors offer the similar services at cheaper price 5. $184B USD. HP niche is $34.678B
Steps 6 to 10 Summary headline of the marketing mix & strategy 6. IT Enterprise Services 7. HP price is more often higher than competitor price 8. All promo methods (ads, media, entertainment, commercials, multi-media, experiences, etc) 9. Global (AMS, EMEA, APJ) 10. Differentiation as the Generic Winning Strategy
1. Primary Target Market Corporate Businesses - Small, Medium, Large Enterprises Government or Private Businesses engaged in IT technology and IT services Onsite and Remote (Virtual) Management IT Services IT Services for ALL industries (Consumer and Retail, Energy, Financial Services, Healthcare, Transportation, Manufacturing, Communications, Media and Entertainment, Government, etc)
2. Customers Needs, Wants and Demands Enterprise Customers choose HP for the best IT solution and services Enterprise Customers: Need to run the business the most efficient and effective way possible Want to be secure, patronized by the end- users/clients Demand/expect the Best service (with value added end-to-end service) for the price
2. Enterprise Customers needs, wants and demands Self-Actualization Enterprise Customers need Needs to go beyond the basics (Self-Development & Realization) Enterprise Customers need Esteem Needs Recognition, Awards, etc (Recognition, Status) Enterprise Customers needs Social Needs acceptance from End-users/End-Customers Enterprise Customers needs business security Safety Needs (security, protection) Physiological needs Reference: Maslows Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 7
3a. HP and its competitors
3a. Variables affecting Competition Price (more expensive than competitor price) Total Contract Value Diamond (>=$500M), Platinum (>=$150M and <= $500M), Gold (>=$50M and <$150M), Bronze (<$50M) Capability Offerings (What HP can do) End-to-end Service Offerings (plus value add) Service Window (24x7, 8x5, Follow-the-Sun, etc) Service Level Platinum (99.9995%), Gold (<=99.99%), Silver (<=99%), Bronze (<=98%) Exclusivity of service (Leveraged/Dedicated)
3b. Positioning Maps # Company 1 IBM # Country Companies 2 HP 3 Fujitsu 1 United States 53 4 CSC 5 Accenture 2 United Kingdom 7 6 Capgemini 3 Japan 6 7 Hitachi 4 8 Ericsson France 5 9 NTT Data Corporation 5 India 5 10 NEC 6 China 5 11 BT Global Services 7 Other 19 12 T-Systems 13 Lockheed Martin 14 SAIC 15 Atos Origin 16 Huawei 17 Siemens 18 ACS 19 Microsoft 20 Digital China
3b. Positioning Maps (Price/Size Matrix) Price/Size Small Medium Large High price Low Price
4. HP positions strongly in a Differentiation market opportunity HP is the only IT company: which ranks in the top 10 in Fortune 500 which offers end-to-end IT solution (hardware, software, services, etc) to small, medium, large enterprise business; private, or government institutions has strong global presence across the globe that pioneered Green revolution (eco-friendly IT solution)
5a. Market share The world's leading companies in IT services are IBM, HP and Fujitsu. With services revenues of US$ 37.3 billion, IBM remains the largest IT services company in the world. HP (2) however, almost closed the revenue gap with IBM, after taking over EDS in 2008: HP now posted services revenues of US$ 34.7 billion. Fujitsu and CSC held on to positions 3 and 4 on the list, respectively, followed by consultants Accenture (5) and Capgemini (6). Ericsson (8) boosted services revenues in 2009, entering the top 10 as a result, while Hitachi (7) had a more difficult year (10%). All of the top 10 companies brought in more than 10 billion USD, and 93 of 100 companies in the Services Top 100 posted revenues above 1 billion in 2009. Together, the Top 100 saw their revenues creep up 1.7% to US$ 453 billion. Protected by long-running outsourcing contracts, most firms did not suffer any material declines during the economic crisis. Probably, the industry will return to double-digit growth rates when the economy gains traction.
5b. Market Size Services Revenue # Company US$ M 1 IBM 37,347 2 HP 34,678 3 Fujitsu 26,935 4 CSC 16,281 5 Accenture 15,555 6 Capgemini 11,255 7 Hitachi 11,050 8 Ericsson 11,031 9 NTT Data Corporation 10,425 10 NEC 9,555 11 BT Global Services 9,237 12 T-Systems 8,744 13 Lockheed Martin 8,087 14 SAIC 7,547 15 Atos Origin 7,386 16 Huawei 7,277 17 Siemens 6,949 18 ACS 6,700 19 Microsoft 6,265 20 Digital China 6,218 Source: http://www.servicestop100.org/services-top-100-the-worlds-largest-it-services-companies-2010.php
6a. HP Products and Services
6b. Product Description HP offers: the state-of-the-art technology the best high quality products and services
7. Price HPs price is 20-30% higher than competitor products and services But is almost at par with IBM price
8a. HP uses all promotional methods
8a. HP Marketing
9. HP is located everywhere Globally available AMS, EMEA, APJ Onshore, Nearshore, BestShore Local or overseas Virtually, Remotely or Physically available
10. HP Winning strategy? HPs strategy is to dominate the IT Enterprise niche market and to continue to become the number one (1) IT industry in the whole world HP has excellent products and services available globally with proven track record through the ages
Summary
Steps 1 to 5 Summary headline of your PTM and market 1. Small, Medium and Large Corporate Enterprise businesses 2. Customers want the best high-quality IT solution and services to optimize business 3. Competing 3rd Party IT Service Providers (IBM and Fujitsu) or In-house support 4. Gap is all other IT vendors offer the similar services at cheaper price 5. $184B USD. HP niche is $34.678B
Steps 6 to 10 Summary headline of the marketing mix & strategy 6. IT Enterprise Services 7. HP price is more often higher than competitor price 8. All promo methods (ads, media, entertainment, commercials, multi-media, experiences, etc) 9. Global (AMS, EMEA, APJ) 10. Differentiation as the Generic Winning Strategy
10 Step Marketing Plan for Hewlett-Packard (Enterprise Services) Sarah Cate Emmanuel Junio Paul Maravillas March 2013

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MM Marketing - 10-Step Marketing Plan - by 3Musketeers

  • 1. 10 Step Marketing Plan for Hewlett-Packard (Enterprise Services) Sarah Cate Emmanuel Junio Paul Maravillas March 2013
  • 2. Disclaimer This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungrias AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are masked so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.
  • 3. Steps 1 to 5 Summary headline of your PTM and market 1. Small, Medium and Large Corporate Enterprise businesses 2. Customers want the best high-quality IT solution and services to optimize business 3. Competing 3rd Party IT Service Providers (IBM and Fujitsu) or In-house support 4. Gap is all other IT vendors offer the similar services at cheaper price 5. $184B USD. HP niche is $34.678B
  • 4. Steps 6 to 10 Summary headline of the marketing mix & strategy 6. IT Enterprise Services 7. HP price is more often higher than competitor price 8. All promo methods (ads, media, entertainment, commercials, multi-media, experiences, etc) 9. Global (AMS, EMEA, APJ) 10. Differentiation as the Generic Winning Strategy
  • 5. 1. Primary Target Market Corporate Businesses - Small, Medium, Large Enterprises Government or Private Businesses engaged in IT technology and IT services Onsite and Remote (Virtual) Management IT Services IT Services for ALL industries (Consumer and Retail, Energy, Financial Services, Healthcare, Transportation, Manufacturing, Communications, Media and Entertainment, Government, etc)
  • 6. 2. Customers Needs, Wants and Demands Enterprise Customers choose HP for the best IT solution and services Enterprise Customers: Need to run the business the most efficient and effective way possible Want to be secure, patronized by the end- users/clients Demand/expect the Best service (with value added end-to-end service) for the price
  • 7. 2. Enterprise Customers needs, wants and demands Self-Actualization Enterprise Customers need Needs to go beyond the basics (Self-Development & Realization) Enterprise Customers need Esteem Needs Recognition, Awards, etc (Recognition, Status) Enterprise Customers needs Social Needs acceptance from End-users/End-Customers Enterprise Customers needs business security Safety Needs (security, protection) Physiological needs Reference: Maslows Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 7
  • 8. 3a. HP and its competitors
  • 9. 3a. Variables affecting Competition Price (more expensive than competitor price) Total Contract Value Diamond (>=$500M), Platinum (>=$150M and <= $500M), Gold (>=$50M and <$150M), Bronze (<$50M) Capability Offerings (What HP can do) End-to-end Service Offerings (plus value add) Service Window (24x7, 8x5, Follow-the-Sun, etc) Service Level Platinum (99.9995%), Gold (<=99.99%), Silver (<=99%), Bronze (<=98%) Exclusivity of service (Leveraged/Dedicated)
  • 10. 3b. Positioning Maps # Company 1 IBM # Country Companies 2 HP 3 Fujitsu 1 United States 53 4 CSC 5 Accenture 2 United Kingdom 7 6 Capgemini 3 Japan 6 7 Hitachi 4 8 Ericsson France 5 9 NTT Data Corporation 5 India 5 10 NEC 6 China 5 11 BT Global Services 7 Other 19 12 T-Systems 13 Lockheed Martin 14 SAIC 15 Atos Origin 16 Huawei 17 Siemens 18 ACS 19 Microsoft 20 Digital China
  • 11. 3b. Positioning Maps (Price/Size Matrix) Price/Size Small Medium Large High price Low Price
  • 12. 4. HP positions strongly in a Differentiation market opportunity HP is the only IT company: which ranks in the top 10 in Fortune 500 which offers end-to-end IT solution (hardware, software, services, etc) to small, medium, large enterprise business; private, or government institutions has strong global presence across the globe that pioneered Green revolution (eco-friendly IT solution)
  • 13. 5a. Market share The world's leading companies in IT services are IBM, HP and Fujitsu. With services revenues of US$ 37.3 billion, IBM remains the largest IT services company in the world. HP (2) however, almost closed the revenue gap with IBM, after taking over EDS in 2008: HP now posted services revenues of US$ 34.7 billion. Fujitsu and CSC held on to positions 3 and 4 on the list, respectively, followed by consultants Accenture (5) and Capgemini (6). Ericsson (8) boosted services revenues in 2009, entering the top 10 as a result, while Hitachi (7) had a more difficult year (10%). All of the top 10 companies brought in more than 10 billion USD, and 93 of 100 companies in the Services Top 100 posted revenues above 1 billion in 2009. Together, the Top 100 saw their revenues creep up 1.7% to US$ 453 billion. Protected by long-running outsourcing contracts, most firms did not suffer any material declines during the economic crisis. Probably, the industry will return to double-digit growth rates when the economy gains traction.
  • 14. 5b. Market Size Services Revenue # Company US$ M 1 IBM 37,347 2 HP 34,678 3 Fujitsu 26,935 4 CSC 16,281 5 Accenture 15,555 6 Capgemini 11,255 7 Hitachi 11,050 8 Ericsson 11,031 9 NTT Data Corporation 10,425 10 NEC 9,555 11 BT Global Services 9,237 12 T-Systems 8,744 13 Lockheed Martin 8,087 14 SAIC 7,547 15 Atos Origin 7,386 16 Huawei 7,277 17 Siemens 6,949 18 ACS 6,700 19 Microsoft 6,265 20 Digital China 6,218 Source: http://www.servicestop100.org/services-top-100-the-worlds-largest-it-services-companies-2010.php
  • 15. 6a. HP Products and Services
  • 16. 6b. Product Description HP offers: the state-of-the-art technology the best high quality products and services
  • 17. 7. Price HPs price is 20-30% higher than competitor products and services But is almost at par with IBM price
  • 18. 8a. HP uses all promotional methods
  • 20. 9. HP is located everywhere Globally available AMS, EMEA, APJ Onshore, Nearshore, BestShore Local or overseas Virtually, Remotely or Physically available
  • 21. 10. HP Winning strategy? HPs strategy is to dominate the IT Enterprise niche market and to continue to become the number one (1) IT industry in the whole world HP has excellent products and services available globally with proven track record through the ages
  • 23. Steps 1 to 5 Summary headline of your PTM and market 1. Small, Medium and Large Corporate Enterprise businesses 2. Customers want the best high-quality IT solution and services to optimize business 3. Competing 3rd Party IT Service Providers (IBM and Fujitsu) or In-house support 4. Gap is all other IT vendors offer the similar services at cheaper price 5. $184B USD. HP niche is $34.678B
  • 24. Steps 6 to 10 Summary headline of the marketing mix & strategy 6. IT Enterprise Services 7. HP price is more often higher than competitor price 8. All promo methods (ads, media, entertainment, commercials, multi-media, experiences, etc) 9. Global (AMS, EMEA, APJ) 10. Differentiation as the Generic Winning Strategy
  • 25. 10 Step Marketing Plan for Hewlett-Packard (Enterprise Services) Sarah Cate Emmanuel Junio Paul Maravillas March 2013