marketing week2

Political factors

The political stability in Brazil enables a better supply chain and distribution systems to operate.

Occasional political turmoils have resulted in thedisruptiono o the company’s business in Brazil.

Unfair targeting of United States of America businesses in other nations acts as a hhindranceto swift business operations for HP cocomputersn the country.

Geopolitical uncertainties have the potential of disrupting the Hp bbusinessand harming its revenue and stock price.

Economic factors

The economic environment of Brazil is relatively low. In addition, theere are significant microeconomic challenges that HP company faces in the country. The economic weakness creates difficulties for the company’s operations.

The increase in the level of employment in Brazil has increased consumer spending and hence boosted the sales for th Company.

Economic uncertainties and fluctuations create economic problems for th company and thus aaffectits businesses in Brazil (Ogbemudia, 2022). Due to the wide exposure of HP, th potential economic risks such as volatility in the currency exchange rates is a arejor concern for the company.

Demand volatiliy, Due to the fact that HP operates in highly competitive industry, the intense level of competition has the potential of resulting in financial losses, thus, resulting in the company facing aggressive price compeitition which requires the company to keep lowering their priceses in order to maintain its competitiveness.

Sociocultural factors

Social trends impacts the sales of HP computers, where many people are turning to the use of mobile devices like tablets and large-screen smartphones which has led to decla ine in the sales of the PC and laptops.

The necessity of localization of marketing campaigns for the company to sell in various cultures in Brazil has resulted in increased expenditures and thus impacting the revenue generation of HP computers.

The need to put into account the changing preferences of the consumers before designiing orrealizingg a new product. Is a significant factor since, design has an impact on the sale o detachable and gaming laptop there jjusasgreateat in looks as in pefoamnce is on the rise.

Technological factors

Technological advanacement in Brazil is at a slower rate which is a major reason for low sales of advanced compters in the country.

Innovations, this is an important factor since nothing is possible for the company without technological innovation. This has become important because of the heavy competition and hence it enables the company to remain competitive.

In research and development, the company invests heavily in R&D which attributes heavily to the innovative cultue of the company.

Diversification of the products, Hp has focused on poducing high perfomance computing machines and pinters. Apart from general computing machines, it also makes gaming machines.

Legal factors

Brazil has a stron glegal framework with which the company operates . The legal system eis based on civil law.

Considering the fact that Hp is subject to several federal state, local as well as foreign laws, it makes the company liable under athese laws in any of the markets can give rise to large fine that can causes huge financial losse for the technological company.

Taxation laws, mzkes its an oblgation for the company to remit all the taxws accordingly, failue to which the company could face legal actions (Ha et al. 2022).

Interllectual and labour laws aaffects the company since being nable to comply with any of these laws can be costly.

Considering the fact that litigations are inherently unpredicatble and so are the costs related to compliance. Thus legal risks are also a major factor in Hp’s business environemtn and cause some major liabilities and expenses for the company.

Environment factors

Waste management in technology sector, HP has mae efforts to eliminate waste and manage the environmental impact of its supply chains.

The company is making efforts to shift its business models towards circula and low carbon economy and fo this reason it continues to incets in dierse aeas whee it can better manage its environmensatl impacts and contriute to environmental awareness.

Recycling, In 2016, P collected and recycled more than 720 tonnes of end of service productthat its manufacturing partnetin Brazil generated.

Sustainability, is impirtanct focus for the company and hence the company has contributed in the prvision of guidance for improving water managemnet to its suppliers.

Related industries being analyzed

<Indicate related industry>

Indicate High/ Medium/Low Force

The rationale for your ranking

Market competitor’s intensity of rivalry

High

There is fierce competition among the industry's established businesses. Those competing in this market must keep up with these developments because new concepts and cost-cutting strategies are being developed every day.

This entails fostering customer loyalty, expanding the business, developing fresh concepts, and keeping up with technological advancements made by rivals..

Risk of entry by potential competitors

Low

The businesses that are currently engaged in industry competition have already made a name for themselves as reputable manufacturers of technology goods. They have invested money, but they have also given themselves enough time to establish their brand. Brand recognition cannot be acquired by a new business immediately.

Threat of substitutes

Low

In this industry, the threat of alternative items is now rather low. Despite the frequent invention of new devices, it is difficult to imagine anything that could ever completely replace the computer.

People use computers, software, printers, networks, cameras, and televisions in one way or another. Unless you use outdated technology, there is currently no substitute for these advanced devices.

Bargain power of buyers

High

In the computer business, buyers' negotiating leverage is comparatively high. The amount of purchases made by a single customer, the variety of alternatives that are accessible to the customer, and the cost to the customer of moving from one product to another all affect the relative bargaining power of the customer..

Bargain power of suppliers

Low

Numerous enterprises in the computer sector produce comparable goods that customers require for their everyday operations. When there are few enterprises and few alternatives available to their clients, suppliers are powerful. Due to the abundance of alternatives, providers in this sector exhibit weak bargaining strength. A number of businesses, including Apple, Dell, and Gateway, create computers in direct competition with one another.

Volume / Units sold (current year)

Revenue (prior year, indicate in euros)

Market Share % growth vs 2 years prior

Volume % growth vs 2 years prior

HP computers

Euro 4987 million

Euro 485 m

34 %

13%

Lenovo

Euro 4926 million

Euro 303 M

29%

9%

Dell

Euro 3989 million

Euro 421 m

31%

14%

Industry key success factors

Brand value

The business enjoys significant brand recognition and a positive social reputation as a prominent name in computing. For computing brands, brand equity is one of the main sources of sales and revenue. One of the top computer brands that consumers trust is HP. It has made a name for itself as one of the most trustworthy computer brands. In addition to emphasizing technological innovation, the company is known for its high-quality products and distinctive client experiences.

Broad range of products

To meet the diverse interests and preferences of customers throughout the world, HP has introduced a wide range of products to the market. These goods come in a variety of price ranges in addition to having varied capabilities. In this way, the business caters to a significant international clientele.

a sizable and devoted customer base HP holds a dominant position in the computing sector. It has a sizable and devoted international customer base. Due to the company's emphasis on product quality, customer experience, and technical innovation, it has a very devoted client base.

Key Products

Top 2 Company Strengths

Top 2 Company Weaknesses

Brand position (leader, follower, niche, challenger)

Hp computers

Laptops

Printers

Desktops

Ink &toner

Brand reputation

Diversed product portfolio

Poor competency in the acquisition

Poor presence in the tablet market

Leader

Lenovo

Computers

Smartphones

Tablets

Servers

Home and office devices

Complex organizational structure

Supply chain disruptions

Challenger

Dell

Laptops

Computer Accessories

Printers

Monitors

Focus on innovation

Global presence

Dependence on the PC market

Intense competition

Follower

Assumptions

Completing this overview is achieved following the assumptions;

The company operates in Brazil.

The sales only considers the ones made in Brazil

Excluding sales in other countries.

Key findings from the competitive overview

Hp computers are on a suitable position when compared with its peers, which are Dell and Lenovo. The companies are all well established in the industry and hence their competitiveness isdeterminedd by innovativeness of the company, for which, Hp is a at the top (Nandonde, 2019). The Extensive research and deveopment that HP facilitates enables the company to develop more advanced products that suits the customers preferences. The customization of thproducts makes it possible for the company products to fit in various industries hence increasing the sales.

TOWS Analysis

Enterprise: HP Computers

Date: 5/31/2023

External Opportunities (O)

· Expansion of services and enterprise solutions divisions

· Increasning demand of cloud based services

· Acquisitio of more technplogy related patents

External Threats (T)

· Retaliation by incumbent frms in software services

· Slowing growth rate of the PC market

· Rapi technological change

Internal Strengths (S)

· High-level Innovation

· Diversified product portfolio

· Brand Reputation

Strategies using (S) to exploit (O)

Investment on the provision of servers and cloud services

Invest in Research and development

Strategies using (S) to mitigate (T)

More investment on research and evelopment

Investment on divesification of the product portfolio.

Internal Weaknesses (W)

· Poor competency in acquisitions

· Ovedependence on personal systmes division

· Poor presence in tblet market

Strategies using (O) to reduce (W)

Expanding the production of other products other than laptops

Produce more advanced tablets in order to gain a significant market for tablets

Strategies Defensive to reduce (T)

DO NOT NEED TO COMPLETE

Net Sales

Increase vs LY

Net sales next year B2C

Euro 7.3 billion

12.5%

Net sales next year B2B

Euro 3.93 billion

11%

B2C

B2B

% of market share increase

21.8

30

Rationale:

According to the data, Hp compters is the second in terms of market share , after Lenovo.

HP computers is the among the fist dominant companies in the B2B companies.

B2C SMART objective

B2B SMART objective

Preference

Conduct adequate reserch in order to identify the preference of the consumers. So as to produce products that fits the taste of the consumers.

Attending trade shows and exhibitions in rder to meet business leaders in order to connect and network.

Retention and Loyalty

Enhancing conumer loyalty by offering incentive and maitaining the high quality of products

Retaining customers in order to enhance brand loyalty.

Key findings from the value proposition

From the value proposition, it is clear that products provided by HP portable computers

B2C Players

Key Product/ Service

Pricing

Brand Positioning*

Apple

Laptops

Retail strategy

The more for less

Lenovo

Laptops

Penetrative strategy

The same for less

Acer

Computers

Value based pricing

More for the same

Hp

Laptops

Fair pricing

More for more

[B2B customer Persona]

[The Specific Key B2B Product/ Service]

At what price would it be too expensive to be worth it, so you would not consider buying?

BRL 10

At what price it is expensive but you would still consider buying?

BRL 8

At what price would you consider cheap and is a good bargain?

BRL 4

At what price would you think it is too cheap to be trustworthy, and you would doubt the quality?

BRL 2

B2B Players

Key Product/ Service

Pricing

Brand Positioning*

Lenovo

laptops

Penetrative pricing

The same for less

Dell

Computers

Low price strategy

Less for much less

Positvo

tablets

Positioning products in price ranges where impacts are lower

More for the same

HP

Laptops

Fair pricing

More for more

[B2C customer Persona]

[The Specific Key B2C Product/ Service]

At what price would it be too expensive to be worth it, so you would not consider buying?

BRL 8

At what price it is expensive but you would still consider buying?

BRL 6

At what price would you consider cheap and is a good bargain?

BRL 4

At what price would you think it is too cheap to be trustworthy, and you would doubt the quality?

BRL1

WHO – Target Audience

Key message

Preference

Students and young consuimers

Investing in the study of the consumer preferences will enable the company to gain insight on the design of the products which will improve sales.

Retention and Loyalty

All consumers

Investment in measures that will enasure that consumers remain loyal to the compay will boost the sales of the company and dominate the market.

B2C SMART Objectives

Marketing Plan Actions (What and Where)

Timing

(When)

Budget

Priority

Preference

Identify the customer preferences on products

Invest in research about the market

From now onwarads

BRL 50000

Research and development

Retention and Loyalty

Ensure customers remain loyal to the brand

Enhance brand reputation

2023

BRL 50000

Advertisement and incentives

WHO – Target Audience

Key message

Preference

Businesses in the health and finance sector

Enhancing the evaluation of the consumer taste on products

Retention and Loyalty

Businesses in the health and finance sector

This will ensure that consumers remain committed to the company.

B2B SMART Objectives

Marketing Plan Actions (What and Where)

Timing

(When)

Budget

Priority

Preference

Keeping into consideration, the taste and preference of the consumers

Offering incentives

Attend exhibitions

From now onwards

BRL 65000

Producing quality design products

Retention and Loyalty

Enhancing the loyalty of businesses

Improving the product design

Maintain the reliability of the products

From now onwards

BRL 65000

Investing on the durability and reliabity of the products

Awareness 

Consideration 

Purchase 

Retention 

Advocacy 

In this stage, customers have a problem or a need and are looking for answers. They are just becoming aware of the existence of your company and its products or services. 

customers are considering your company against others with similar products or services. customer wants a deeper understanding of company offerings, and they want proof points for why the company Is a better choice

customers have decided that they want to purchase your product or service

The customer maintains engagement with the company.

Creating a loyal customer who advocates on behalf of your company and its products or services is invaluable.

People 

Process 

Physical evidence 

The company offers quality service to th people including reasonable prices, discounts and also after sales services including warrants.

Hp company perfoms its production processes efficiently which leads to production of high quality goods.  

Hp locates its production plant in strategic locations, with adequate infrasturture which aids in minimizing the costs of production

Research more on the the current trends in technological advancement so as to produce products that are in lign with th current needs of the consumers 

Incorporate the input of consumers in the process of preparing the design of the products in order to ensure the processoff production results in the production of

Expand the company by opening plants in the rular in order to serve the customers more effectively.

Awareness 

Consideration 

Purchase 

Retention 

Advocacy 

The customers become aware of the existence of the company

Customers consider the company against others with similar products

The customer makes the decision of buying the products from the company.

The customers build on their loyalty to the company

The customer referrers the company to other new customers who might be aware or unaware of the company.

People 

Process 

Physical evidence 

The company offers quality service to th people including reasonable prices, discounts and also after sales services including warrants.

Hp company perfoms its production processes efficiently which leads to production of high quality goods.  

Hp locates its production plant in strategic locations, with adequate infrasturture which aids in minimizing the costs of prodution

Research more on the the current trends in technological advancement so as to produce products that are in lign with th current needs of the consumers 

Incorporate the input of consumers in the process of preparing the design of the products in order to ensure the process of production results in the production of

Expand the company by opening plants in the rulal in order to serve the customers more effectively.

B2C SMART Objectives

Marketing Plan Actions

KPIs

Preference

Conduct adequate reserch in order to identify the preference of the consumers. So as to produce products that fits the taste of the consumers.

Invest in research about the market

Reviews from the customers

Retention and Loyalty

Enhancing conumer loyalty by offering incentive and maitaining the high quality of products

Enhance brand reputation

The rate of Repurchases from customers

B2B SMART Objectives

Marketing Plan Actions

KPIs

Preference

Attending trade shows and exhibitions in rder to meet business leaders in order to connect and network.

Offering incentives

Attend exhibitions

Reviews from consumers

Retention and Loyalty

Retaining customers in order to enhance brand loyalty.

Improving the product design

Maintain the reliability of the products

Sales, rate of repurhases from customers

Million euros 2022

% of sales

Net sales

7.3 billion

100%

Cost of sales

2 billion

2.92 billion

Gross Margin

72.6%

72.6

Marketing costs

0.438 billion

6%

Cost of sales force

40%

Marketing costs

6%

Contribution Margin /

Net Marketing Contribution

4.862 billion

Marketing Activity

Allocated budget

Your rationale

IMC budget (use figure budgeted in IMC section)

Add other marketing expenses

Add other marketing expenses

.

Add other marketing expenses

Total: