mm marketing - 10-step marketing plan - by 3musketeers
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10 Step Marketing Plan for Hewlett-Packard (Enterprise Services)
Sarah Cate Emmanuel Junio Paul Maravillas
March 2013
This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s 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.
Disclaimer
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 1 to 5 Summary headline of your PTM and market
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
Steps 6 to 10
Summary headline of the marketing mix & 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
7
Self-Actualization Needs
(Self-Development & Realization)
Esteem Needs (Recognition,
Status)
Social Needs
Safety Needs (security, protection)
Physiological needs
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
Enterprise Customers need Recognition, Awards, etc
Enterprise Customers needs business security
Enterprise Customers needs acceptance from End-users/End-Customers
Enterprise Customers need to go beyond the basics
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 (<$50M)
Capability Offerings (What HP can do) End-to-end Service Offerings (plus value add) Service Window (24x7, 8x5, Follow-the-Sun, etc) Service Level
Platinum (99.9995%), Gold (<=99.99%), Silver (<=99%), Bronze (<=98%)
Exclusivity of service (Leveraged/Dedicated)
3b. Positioning Maps
# Company
1 IBM 2 HP 3 Fujitsu 4 CSC 5 Accenture 6 Capgemini 7 Hitachi 8 Ericsson 9 NTT Data Corporation 10 NEC 11 BT Global Services 12 T-Systems 13 Lockheed Martin 14 SAIC 15 Atos Origin 16 Huawei 17 Siemens 18 ACS 19 Microsoft 20 Digital China
# Country Companies
1 United States 53 2 United Kingdom 7 3 Japan 6 4 France 5 5 India 5 6 China 5 7 Other 19
3b. Positioning Maps (Price/Size Matrix)
Price/Size Small Medium Large
High price
Low Price
4. HP positions strongly in a Differentiation market opportunity
HP is the only IT company: which ranks in the top 10 in Fortune 500 which offers end-to-end IT solution (hardware,
software, services, etc) to small, medium, large enterprise business; private, or government institutions
has strong global presence across the globe that pioneered Green revolution (eco-friendly IT
solution)
5a. Market share
The world's leading companies in IT services are IBM, HP and Fujitsu. With services revenues of US$ 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
# Company Services Revenue 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
HP’s 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?
HP’s 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
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 1 to 5 Summary headline of your PTM and market
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
Steps 6 to 10
Summary headline of the marketing mix & strategy
10 Step Marketing Plan for Hewlett-Packard (Enterprise Services)
Sarah Cate Emmanuel Junio Paul Maravillas
March 2013