hcl - revamped



INTRODUCTION

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LAPTOP MARKET IN INDIA

www.dqindia.com

Revenues in Rs. Cr.

3/23



REBRANDING OF HCL LAPTOPS

• September 2009 – ‘ME’ brand launched

• Repositioning based on IMRB (Indian Market ResearchBureau) research report

•

‘LeapTop’ to ‘ME’ - ‘Mobile Excitement’ • Targeted market share - 20%

• Budgeted marketing expenditure - INR 50 cr.

• Ad agency - DraftFCB Ulka

• 55 ‘DigiLife’ stores remodeled as ‘ME Xclusive’ and ‘MEZone’ stores

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SURVEY RESULTS

5/23



BRAND OWNERSHIP OF RESPONDENTS

32.26%

29.03%

14.52%

6.45%

6.45%

3.23%

1.61% 6.45%

HP

DELL

SONYAPPLE

LENOVO

TOSHIBA

HCL

OTHERS

6/23



MAJOR SELECTION CRITERIA

76% 71%65% 60%

36% 31%

Features &Configuration

Brand Price Service &Warranty

Design &Looks

BundledSoftwareIncluded

7/23



PERCEPTION ABOUT ‘ME’ LAPTOPS

8% 12%

40%

40%

28%

28%

24%

52%

48%

40%

36%24% 20%

Features &Configuration

Brand Service &Warranty

Design & Looks

Not Aware

Poor

Average

Good

8/23



AWARENESS OF ‘ME’ ADVERTISEMENTS

60%52%

40%

31%24%

20%

12% 12%

Print Media TV Online Not Seen Point of SaleDisplay

Word of mouth

Hoardings EventSponsorship

9/23



CONSUMER RESPONSE FOR ‘ME’

97.52%

8.33%

1.67%

Awareness Consideration Decision

• HighAwareness

• Poor Consideration

10/23



CONSUMER RESPONSE TO ‘BRAND-MASKED’

SURVEY

31%

41%

18%

10%

Will buyWill buy if brand is known

Will buy if price is known

Will not buy

11/23



83.3%

66.7%

15.0%

6.7%

Word of Mouth Internet Sales Person Advertisement

MAJOR CONSIDERATION SET INFLUENCERS

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DATA ANALYSIS AND THE WAY FORWARD

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THE VICIOUS CYCLE

Brand Perception

Lack of Recommendation

Low Consideration

Low Conversion

14/23



FEEDBACK FROM EXISTING ‘ME’ USERS

• Satisfactory laptop performance

• Happy with design & looks

• Comparable to other laptops

• Competitive price

15/23



COMMUNICATIONS MIX

IMC Platforms Current Strategy Proposed

Advertisement Very generic, promoting HCL;

not targeted towards ME

Spin off advertisements

depicting ME as a separate

brand, Remove HCL logo and

develop the ME brand

Sales Promotion Periodic sales incentives,

rebates for students

Aggressive Dealer margins,

low interest financing

Direct and Interactive

marketing

Catalogs, Online Selling Telemarketing, Blogs

Events and Experiences N/A College festivals, Companies,

Music Fests

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17/23



MEASURING SALES FORCE EFFECTIVENESS

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SALES FORCE EFFECTIVENESS

• Consumer Division

• Sales/ Man Hour = Purchases / (No. of people demonstrated

to * Time Spent demonstrating (in hours))

• Conversion rate = Purchases / No of people demonstrated to

• Corporate Division

• Conversion rate = Actual size of order / Potential size of

order • Discount factor = Discounts offered / Actual size of order

EVALUATION PARAMETERS

19/23



SALES STRATEGY

• ‘Test Drive’ concept for laptops

• Centralized customer repository maintenance by

requiring registration on first use

• Centralized feedback system to be put in place by

tracking service records with unique identifier

•Promotional competition at institutions with prizesbeing ‘ME’ laptops

20/23



21/2321/23



No. of Days No. Of Cities No. of Laptops No. of ISDs Rent per day Tier 1 48 19 4 2 10000 Tier 2 48 42 3 2 7000 Tier 3 48 92 2 2 5000

Cost per Laptop 37200.8 Resale value 9672.2

Final Cost per

Laptop 27528.6

Wages Kiosk Rent Laptop cost Total Cost Tier 1 48000 480000 110114.4 12124173 Tier 2 48000 336000 82585.8 19596603 Tier 3 48000 240000 55057.2 31561261

Grand Total 63282037

COST ANALYSIS FOR ‘TEST DRIVE’ STRATEGY

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THANK YOU

23/23

hcl - revamped

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