Marketing Plan

MARKETING PLAN

Student name: Course: JWI518

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Table of Contents

 Executive Summary

 Description of Product/Service

 Product Life Cycle

 Features and Benefits

 Marketing Objectives

 Target Markets Overview and Target Market Segments

 Competitive Analysis Chart

 SWOT Analysis

 Pricing Strategy

 Value Proposition

 Marketing Promotion & Budget

 Marketing Measurements/ Marketing Metrics

 References

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Executive Summary

 Hewlett-Packard, commonly referred to as HP, is an American multinational information technology company. It develops a wide variety of hardware components as well as software and related services to consumers, small- and medium-sized businesses, and large enterprises, including health and education sectors.

 HP comprises 315,000 employees worldwide and annual revenues of $138.854 billion. What distinguishes the corporation among competitors such as Dell, Lenovo and Xerox, are its international quality standards, state-of-the-art designs and after-sales service.

 The firm presents huge potential for expansion to enterprise solutions in the networking, storage and cloud computing markets as well as in the imaging and printing solutions markets.

 The following plan outlines the marketing strategies recommended for HP to expand its customer base in the tablet market, and to create a strong competitive advantage through product differentiation and enhanced customer experience through the innovative and high-performance Spectre x360.

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Description of Product/Service

Sprectre x360 is a new laptop introduced by Hewlett-Packard:

 State-of-the-art product re-launched on January 2016.

 High-screen resolution and enhanced processor performance.

 Versatile, thin and sophisticated style.

 Stainless steel design.

 Capacity to operate for more than 12 hours with faster wireless speed.

 360 degree transition to four modes to rotate and adjust for more portability

and varied uses:

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Stand Mode

for watching

Tablet Mode

for surfing

Notebook Mode

for working

Tent Mode

for sharing

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Life Cycle

 Product Life Cycle stage: Spectre x360 is in the Introduction Stage.

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Features and Benefits

Features

 3.2 lbs and15.9 mm design

 Synchronized geared pin for easy articulation

 Windows 10

 12.5-hours of battery

 802.11 2x2 Wi-Fi antenna

 Up to 16GB of RAM

 Touchscreen and HP active pen

 Quad HD OLED display6

 Audio by Bang & Olufsen

 Intel® Core™ processors

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Benefits

 Slim and portable

 360 degrees rotation to four different modes

 Smoother use of apps

 Better performance daylong

 Faster WIFI connection

 Upgraded memory capability

 Tablet-like use of screen

 Colourful and enhanced graphics

 High-quality audio equipment

 Faster and quieter computer

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Marketing Objectives 7

Current Marketing Objectives • Launch a new product • Target new customers • Enter the tablet market • Create an innovative product to

compete with Apple • Boost revenues and profitability

Suggested Marketing Objectives

• Build up brand awareness

• Create competitive advantage

through product differentiation

• Enhance customer experience • Raise shareholders’ value • Increase stock price

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Target Markets

i. The markets currently targeted by HP with this new laptop are a combination of B2B and B2C.

 Business-to-Business (B2B): though worldwide retailers. This market depends to a great extent on the B2C market and both are interrelated.

 Business-to-Consumer (B2C): though the Official HP Stores which sell directly to customers.

ii. The recommendation would be for HP to also target the Business-to-Government (B2G): HP can target government buyers for high-volume sales contracts, or state, county and federal agencies in developed countries to add efficiency to government operations.

iii. In the case of HP, the approach taken is undifferentiated or mass marketing.

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Geographic Segment of Market

Bases for Segmentation

 Geographic

 Demographic

 Psychographic

 Behavioral

 Nation or Country: GlobalAfrica, Americas, Asia, Europe, Middle East

 State or Region: California, Palo Alto

 City or Metro size: 100,000+

 Density: Urban

 PRIZM: Zip Code94304: Upper Crust, Networked Neighbors, Movers and Shakers, Winner’s Circle, Gray Power

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Segmenting Audience by Demographics

Bases for Segmentation

 Geographic

 Demographic

 Psychographic

 Behavioral

 Age range: 35 to 55+

 Race: White, Asian

 Gender: Predominantly Male

 Income range: Upscale, wealthy ($100-

$150K+)

 Education: Graduate Plus

 Family size: 1-2 person(s)

 Family life cycle: mature/middle-aged,

mostly w/o kids

 Occupation: Management and Professional

 Religion: Catholic, Protestant, Hindu,

Buddhist

 Nationality: North American, Indian,

Japanese

 Generation: Gen Y, Gen X, Baby Boomers

 Social class: Upper uppers

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Segmenting Audience by Psychographics

Bases for Segmentation

 Geographic

 Demographic

 Psychographic

 Behavioral

 Lifestyle: sports-oriented, goal-seeker,

money-minded, high standards of living

 Activities: tennis, golf, snowboarding,

hiking, reading

 Interests: hybrid and expensive cars

(Acura, BMW, Lexus, Cadillac,

Mercedes-Benz), travelling (Alaska,

Europe), shopping (5th Avenue,

Nordstrom)

 Opinions: culture, politics

 Personality: ambitious, achiever,

dedicated, passionate, innovative,

efficient, motivated

 Core values: competitiveness, excellence,

inventiveness, reliability, versatility, style

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Behavioral Targeting Segmentation

Bases for Segmentation

 Geographic

 Demographic

 Psychographic

 Behavioral

 Occasions: Regular basis

 Benefits: quality, speed, style,

state-of-the-art product

 User status: regular user

 Usage rate: heavy user

 Loyalty status: strong

 Buyer-readiness: informed,

interested and intending to buy

 Attitude: positive and

enthusiastic

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Competitive Analysis Chart

HP Spectre x360 Apple MacBook Air Dell Inspiron 13 7000

OVERVIEW: • Thinnest laptop in the market (0.41 inches) • Colors available: silver, ash-black-and-copper • Made of carbon fiber and aluminum • 3.75 x 2.15-inch glass touchpad (roomy, smooth

scrolling and accurate text selection) • Supports three USB Type-C ports for fastest

speeds possible • Operating system: Windows 10 • Target segment: Upper uppers, middle-aged,

graduates plus

OVERVIEW: • Smallest laptop (0.14 to 0.52 inches thick) • Colors available: silver, gold and space grey • Made of aluminum • 4.4 x 2.7-inch Force Touch trackpad

(significantly larger and easier to use) • Lone USB Type-C port • Operating system: MacOS • Target segment: Upper uppers & middle-

uppers, young & middle-aged, graduates & graduates plus

OVERVIEW: • Thin laptop 0.75 inches • Colors available: red, blue, white, silver • Made of brushed aluminum • Backlit 1.3mm keyboard. • 3 USB 3.0 (1 power share)

Headphone/Microphone Combination Port • Operating system: Windows 10 • Target segment: middle-uppers, lower-middle

class, young and middle-aged, graduates & graduates plus

COST: HP Spectre can cost around $1,169+

COST: MacBook Air can be bought for $1,300+

COST: Dell Inspiron costs around $600+

DETAILS: • Display:13-inch,Corning Gorilla Glass IP,1920 x

1080 resolution, full HD touchscreen • Specifications: Intel Core i7 processor, HD

Graphics 520 card and up to 16 GB of RAM • Size and Weight: 3.2 lbs. and 15.9 mm • Webcam: 1280 x 720 pixels

DETAILS: Display: 13.3-inch widescreen, LED-backlit glossy, 1440 x 900 pixels resolution Specifications: 1.6 GHz dual-core Intel Core i5 processor, Intel HD Graphics 6000 card, 8 GB RAM Size and Weight: 2.96 lbs. and 17.2 mm

Webcam: 640 x 480 pixels

DETAILS: Display: 13.3 inch, full HD LED touchscreen (1920 x 1080), 10-finger multi touch support

Specifications: 2.4 GHz Intel Core i7, Intel HD Graphics 520 card 8G RAM Size and Weight: 3.68 libs. and 19.925mm Webcam: Integrated Central 2.0

ADDITIONAL VALUE: • Larger, brighter display • Bends in four positions • Extra large touchpad • Touchscreen and active pen

ADDITIONAL VALUE: • Image with more accurate skin tones and better

detail • Smallest in the market • Shared computing with iPhone

ADDITIONAL VALUE: • Two-in-one laptop (laptop and tablet) • Touchscreen • Sketch, take notes or retouch photos on screen • Lowest cost

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SWOT Analysis

Strengths

•Global Presence: 315,000 (Q2, 2015) employees worldwide.

•Recognizable brand name.

•Innovative designs.

•Good after-sales service that helps maintain good consumer relationship.

•International quality standards

•Competitive technological expertise.

Opportunities

•Expand enterprise solutions division (servers, networking and storage).

•Expanding presence in cloud computing market.

•Expanding portfolio of imaging and printing solutions.

•Acquisition of more companies specializing in smartphones and their operating softwares.

Threats

•Strong competition in software services from incumbent firms such as Oracle or IBM.

•Hyper-competitive, satured and slow growth rate of the laptop market (Apple, DELL, Lenovo, Cisco, Microsoft).

•Rapid technological change and pressure to release new innovative products faster.

Weaknesses

•Strong reliance on sales from PC, especially laptops (29% of income).

•Poor presence in the tablet market (unable to compete successfully in this lucrative market with companies like Samsung and Apple).

•Problems with imitation products.

•Lack of software products and consulting services.

S W

TO

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Pricing Strategy 15

Manufacture

Costs

• Sum of components (plastic, glass, metal, rubber, fiber optics, camera, chip, hard drive, microphone, battery, software, processor, mother board, light bulb, graphic card)  30%+ margins  $405.

Assembly & Labor

Costs

• Sub-assemblies  $522.

• Labor (salary, health care, vacations) $638.

Distribution & Marketing

Costs

• The distributors then mark their price up accordingly with their own margins, which might equal around $790.

• Marketing costs might add up to $869.

End- user/retail

value

• So the sell price here to the end-user/retail value is $1,169.

• Profit for the product 25% of the gross margin  $300.

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Value Proposition

 Hewlett-Packard provides middle-aged professionals living in the Silicon Valley Area, CA (Palo Alto, Stanford, Los Altos, among others) who earn $150,000+ a year with state-of-the- art, stylish, high-quality and high-performance tech products like Spectre x360.

 Added value from HP includes:

 Connection, organization and integration.

 Effort reduction and time saving.

 Sensory appeal and design/aesthetics.

 Badge value & affiliation/belonging.

 Entertainment/Fun.

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Marketing Promotion Budget:

Traditional Media

Marketing Activity (2016-2017) Budget Estimates

Television/Cable TV (NBC, 8:00 PM - Week Night 30 Second Ad Slot: $264,575 $12,700,000

Print Media -newspapers (1/8th page advertisement) Washington Post Sunday rate

(cost per column inch) $17.46

$12,900

Billboard at Dulles International Airport (Gate/Terminal and Baggage Claim)

$3,500 per ad per 4 week

$42,000

Radio (30-second radio ad on WTOP 103.5 FM)Mon-Fri 10am-7p $60.00 $2,880

Movie Theater-Cinema Ads - 4'x6' back-lit posters in the lobby $250 per month $3,000

Direct Marketing – Mailings, Flyers (10,000) - 4 X 6 FLYERS $100.95 per 1,000 $1009.5

Telemarketing $45 per hour per 1,000 hours $45,000

Demonstrations, Exhibits, Catalogs, Magazines $1,000 per month $12,000

Coupons, Rebates, Gift Vouchers - 4" X 6" black full color coupons $0.50 x3,000 $1,500

Billboard on Washington DC Metrobus - Backlit Diorama: $1,950 per ad per 4

week period

$23,400

Total $12,843,689.5

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We estimate a budget of $13,942,449.5 for marketing in 1 year ($12,843,689.5 for traditional and for $1,098,760 digital)

Traditional Media Budget Allocation for 1 Year

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Marketing Promotion Budget:

Digital Media

Marketing Activity (2016-2017) Budget Estimates

Website design, set-up, storage and monthly maintenance for one

year (GoDaddy.com, Amazon Web Services) Custom Website

design and setup $45,800 + Monthly maintenance (10 hr. of

monthly support ($120/hr.):$14,400

$59,400

Email marketing campaign using MailChimp 10,000 names

(Upgraded option $10/month) + Design + Overhead

$1,260

Google AdWords ( @$1 per click) – Cost per click $360,000

Google AdWords – CPM Cost per thousand impressions- $4 $315,000

Text blasts to 5,000 names ($50/month, using Eztexting.com)

(https://www.eztexting.com/pricing)

$700

Facebook ads (Average @0.24 per click) $86,400

Twitter ads – promoted trends $700 CPM $252,000

Mobile app(s)-CPM price is $0.25 2000 impressions $24,000

Total $1,098,760

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Digital Media Budget Allocation

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Measure – Marketing Metrics

Sales Metrics

 Sales from newly

promoted products

 Out of Stock %

 Inventories

 Net profit

 ROS & ROMI

 Market Share

Customer Readiness to

Buy Metrics

 Purchase habits

 Repurchase rate

 Trial rate

 Pass-Through

Customer Metrics

 Customer complaints

 Customer satisfaction

 Willingness to Search

 Willingness to

Recommend

 New-customer gains

Distribution Metrics

 Number of outlets

 Stock cover in days

 Average sales per

point of sale

Communication Metrics

 Pageviews

 Click-through Rate

 Impressions (CPM)

 Average Frequency

 Likeability

 Heavy Usage Index

 Ad Awareness

 Brand Development

Index

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References

Dulles International Airport. (2016). Retrieved on November 18, 2016 from www.flydulles.com.

Farris, P.W., Bendle, N.T., Neil, T., Pfeifer, P.E., & Reibstein, D.J. (2006). Marketing metrics. Pearson Education, Inc.

GoDaddy. (2016). Retrieved on November 18, 2016 from www.godaddy.com.

Google Adwords. (2016). Retrieved on November 18, 2016 from www.adwords.google.com.

Hewlett Packard. (2016). Retrieved on September 6, 2016 from www.hp.com.

Hewlett Packard Store. (2016). Retrieved on September 6, 2016 from www.store.hp.com

Kotler, P., & Keller, K.L. (2016). A framework for marketing management (6th ed.). Pearson Prentice Hall.

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References (Cont’d)

NBC. (2016). Retrieved on November 18, 2016 from www.nbc.com.

PRIZM. (2016). Retrieved on October 4, 2016 from

www.segmentationsolutions.nielsen.com.

The Washington Post. (2016). Retrieved on November 18, 2016 from

www.washingtonpost.com.

Washington Metropolitan Area Transit Authority. (2016). Retrieved on

November 18, 2016 from www.wmata.com.

Washington’s Top News. (2016). Retrieved on November 18, 2016 from

www.wtop.com.

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