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