A Project on ³͞A Study on Market Potential Of hp computer: With Reference to Business to Business and Business to Customer market͟ Submitted in partial fulfillment of the requirement of Master of Business Administration, Distance Education Guru Jambheshwar University of Science & Technology, Hisar Research Supervisor: Submitted by : NAME: Ms. Sonali Saxena NAME: Soumya Nath Mondal DESIGNATION: Lecturer Enrolment no - 08061148633 Specialization- Marketing Session 2008-10 Directorate of Distance Education Guru Jambheswar University of Science & Technology Hisar (India) Page | 1 CERTIFICATE This is to certify that Mr. SOUMYA NATH MONDAL Enrolment No.08061148633 has proceeded under by supervision his Research Project Report on ͞A Study on Market Potential Of hp computer:With Reference to Business to Business and Business to Customer market͟ in the specialization area Marketing. The work embodied in this report is original and is of the standard expected of an MBA student and has not been submitted in part or full to this or any other university for the award of any degree or diploma. He/she has completed all requirements of guidelines for Research Project Report and the work is fit for evaluation. Signature of Supervisor/Guide (with SEAL) NAME SONALI SAXENA DESIGNATION LECTURER ORGANIA TION NSB SCHOOL OF BUSINESS Centre NSB SCHOOL OF BUSINESS Forwarded by Head/Director of Study (with signature, Name & SEAL) Page | 2 DECLARATION This is to certify that the Project Report entitled͞A Study on Market Potential Of hp computer: With Reference to Business to Business and Business to Customer market͟ is an original work and has not been submitted is part or full to this or any other university/institution the award of any degree or diploma. Signature of candidate NAME: SOUMYA NATH MONDAL ENROLMENT NO.:08061148633 SPECILIZATION: MARKETING SESSION:JULY2008-10 Page | 3 Index S. no. Content Page no. 1 Title of the Project 5 2 Introduction and Rationale of The Topic 6 3 (a)Industry Profile 10 (b)Company Profile 18 3 Literature Review And Problem Formulation 50 4 Objectives 51 5 Research Design 52 6 Theoretical Framework 57 7 Data Analysis And Interpretation 74 8 Findings 108 9 Recommendations 111 Conclusion 114 9 Bibliography 116 10 Appendix 118 a. Questionnaire b. List of Companies 119 c. Raw Data 120 d. Annual Report 125 Page | 4 Title of the Project: ͞A Study on Market Potential Of hp computer: With Reference to Business to Business and Business to Customer market͟ Page | 5 INTRODUCTION AND RATIONALE OF THE TOPIC Every business moto is profit maximization. Study of market potential is not just important in the short-term. Sufficient profit must be maintained in order to ensure the survival of the business in the long-term as well. Even a profitable business may fail if it does not have adequate market knowledge as they fall due. Therefore, when business make investment decision they must not only consider the financial outlay involved with acquiring the new machine or the new building, etc, but must also take account of the additional current assets that are usually involved with any expansion of activity. Increased production tends to engender a need to hold additional stocks of raw materials and work in progress. An increased sale usually means that the level of profit will increase. A general increase in the firm¶s scale of operations tends to imply a need for greater levels of cash. The Study of market potential assumes great importance because shortage of funds is perhaps the biggest possible cause of failure of many business units in recent times. There it is of great importance on the part of management to pay particular attention to the planning and control for market. The goal of Study of market potential is to ensure that the firm is able to continue its operations and that it has sufficient money flow to satisfy both maturing short-term debt and upcoming operational expenses. Thus the Study of market potential is a formidable one, since it depends upon several variables such as character of the business, the lengths of the merchandising cycle, rapidity of Page | 6 turnover, scale of operations, volume and terms of purchase & sales and seasonal and other variations. The goal of Study of market potential is to ensure that the firm is able to continue its operation and that it has sufficient cash flow to satisfy both maturing short term debt and upcoming operational expenses. If there is anything that the Indian computer hardware industry has to offer to the various Indian and Multinational Hardware Manufacturing companies, it is growth. Recent MAIT study, conducted jointly with Big Five firm Ernst & Young, concluded that the Indian hardware industry had the potential to reach a size of $62 billion by 2010. For a country whose economy is so heavily dependent on agriculture, a vibrant hardware industry has the potential to generate three million jobs, especially for Indians who come from economically underprivileged sections, who aren·t very highly educated. So, in the words of Deshpande, the hardware industry can be some sort of a panacea for India·s unemployment problem. Also, with the size of the contract manufacturing industry expected to be over $500 billion by the year 2010, Indian firms could grab a significant chunk of the pie in a manner pretty similar to India·s emergence as a key player in the global BPO stakes. And, with a potentially huge market in embedded systems emerging, Indian firms with the right mix of hardware and software can be big players here. For the record, of all the high-end processors produced in the world, only 6 percent are used in PCs and the remaining 94 percent are used in entertainment electronics, non-PC devices, communication products and embedded electronics. Page | 7 The hardware revolution is also essential for the continued high growth of the software industry. As Vinnie Mehta, director of MAIT, puts it: ´India can lose out on the software advantage it has already built up, and the future potential, if it does not concentrate on the hardware front. For example, the estimated domestic hardware requirement by 2008 to meet the software target of $87 billion is $160 million.µ With such given potential, the major players in the market like Hewlett Packard, Sony, Lenovo, Dell etc can expect to gain a lot. At the same time, the competition is bound to grow and get intense. Therefore these manufacturers have to take measures to counter competition efficiently. In order to establish the brand in the minds of the consumer, the manufacturers should ensure that the consumers have a positive perception about the product, product features, quality level, look, design and appearance etc. This study revolves around studying the various perceptions prospective customers of Hewlett Packard Laptop hold against the brand, its quality, price, correlation between the price and quality etc. The study conducted in Bangalore intends to throw light on the above mentioned parameters such that Hewlett Packard can make necessary decisions based on the findings and suggestions. Page | 8 Categories: Terms sometimes used for subtypes of laptop computers include: Ultra portables: Laptops with screens typically less than 12 inches diagonally and a weight of less than 1.7kg. Their keyboards are usually not full-size. Their primary audience is usually business travelers, who need small, light laptops. Ultraportables are often very expensive, have extended battery and/or battery life, house power-saving CPUs and almost always have integrated graphics. Thin-and-lights: Laptops usually weighing in between 1.8kg and 2.8kg with a screen size of between 12 and 14 inches diagonally. Examples of this variety: the Sony VAIO FJ, Apple MacBook and Dell XPS M1210. Medium-sized laptops: These usually have screens of 14 ² 15.4 inches diagonally and a weight of around 3-3.5kg. They usually sacrifice a little computing power for smaller dimensions and longer battery life, although the length and width are usually determined by the screen size. Desktop replacement computers: Powerful laptops meant to be mainly used in a fixed location and infrequently carried out due to their weight and size; the latter provides more space for powerful components and a big screen, usually measuring 17-20 inches. Desktop replacements tend to have limited battery life, rarely exceeding three hours, because the hardware is not optimized for efficient power usage. Page | 9 INDUSTRY PROFILE The laptop, also known as a notebook PC, is no longer a luxury item as against the `wow' effect it had a few years ago. Much like other commodities, it is being displayed on the shelves of big supermarkets and retail shops, moving from the exclusive confines o f exotic showrooms. Earlier, when the word `laptop' was uttered, one could visualise only executives carrying it. Today all segments, including students and households, are buying these `notebooks'. For people on the move, the laptop has become an indispensable tool. What with overcrowded roads and traffic snarls, the average travelling time in metros such as Mumbai and Bangalore has only gone up. Here, the laptop is a cool tool that helps professionals to keep working and thus save time. This also helps companies to keep their employees more productive. Industry sources say that desktops which was the "symbol of corporate vanity till the other day are slowly becoming passé with notebooks now the mainstream." The numbers too capture the growing appeal of the laptop. In the first half of the current financial year, Indians bought nearly 153,000 notebooks, compared to 36,000 units in the same period two years ago, said a recently released performance review of MAIT. It added that the momentum in the Indian notebook market is finally in sync with the global trend, where for the first time in 2005 notebook sales surpassed desktops sales.