Hewlett-Packard vs Dell - Research Proposal Example

Marketing (Buyer Behavior) - Hewlett-Packard (HP) vs. Dell - ID ial Time Total Number of Words: 1,993 Table of Contents I. Table of Contents ………………………………………..….…………….. 2 II. Executive Summary ……………………………………….…………….... 3 III. Introduction ……………………………………………………………….. 4 a. Purpose …………………………………………………………… 4 b. Background Information …………………………………………. 4 c. Scope ………………………………………………………………. 5 d. Methodology ………………………………………………………. 5 e. Assumption and Limitations ……………………………………… 6 f. Plan ……………….………………………………………………. 6 IV. Needs and Wants ………………………………………………………….. 7 V. Motivations ………………………………………………………………… 8 VI. Attitudes / Preferences …………………………………………………….. 9 VII. Social Class ………………………………………………………………... 10 VIII. Conclusion and Recommendations ………………………………………… 10 Appendix I – Market Shares of Major Computer Manufacturers in Australia ……. 11 Appendix II – Market Research Survey Questionnaire …………………………… 12 Appendix III – Research Survey Results …………………………………………. 13 Appendix IV – HP 2133 Mini-Note PC …………………………………………… 14 Appendix V – Dell’s Inspiron Mini 9 ……………………………………………… 15 Appendix VI – Dell’s Advertisement on Colored Portable Computers …………… 16 References ………………………………………………………………………… 18 - 19 Executive Summary Analyzing the buyers’ behavior on a homogenous product is important in determining the factors that influence the purchasing decisions of the consumers. Therefore, the business report will provide the business executives with sufficient information on factors that affects the consumer behavior on HP and Dell portable computers. Given that HP and Dell offers almost the same product features, the market price of these two products is considered the key factor that significantly influence the buying behavior of consumers in Australia. Introduction Hewlett-Packard (HP) and Dell are among the most competitive laptop manufacturers in Australia. Purpose The business report will provide the business executives with sufficient information regarding the strategies used by HP and Dell in terms of being able to effectively influence the buying behavior of its target consumers. Background Information Founded in 1939 by Bill and Dave (HP, 2008a), Hewlett-Packard (HP) manages to grow as the leading computer manufacturer in the global markets. Today, HP operates in more than 170 countries all over the world. Dell was founded by Michael Dell in 1984. (Dell, 2008a) Since then, the company remains focused on addressing the specific needs of the customers when purchasing a computer system. Dell’s strategic decision to penetrate the global markets in 1987 (Dell, 2008b) enabled the company to become one of the biggest computer manufacturers today. Specifically in Australian market, HP and Dell were able to capture the biggest market shares with 21% and 15% respectively. (Tung, 2008) (See Appendix I – Market Shares of Major Computer Manufacturers in Australia on page 11) Scope The business report will be divided into four major categories like: (1) Needs and Wants; (2) Motivations; (3) Attitudes or Consumers’ Preferences; and (4) Social Class. Under the Needs and Wants, discussion will focus on determining the buyers’ behavior on these two major portable computer manufacturers, a clear market segment and the specific needs and wants of the consumers in terms of using the two branded laptops will be identified. Eventually, the different strategies used in motivating consumers to purchase either of these two products as well as the attitudes or consumers’ preferences with regards to these brands will be discussed. The last part of the report will tackle the impact of consumers’ social class on how marketers are able to communicate with them including how the marketing communication methods used may have affect the consumers’ perception on these products. Between September ___ to ___ of year 2008, a total of 100 market research survey questionnaires will be distributed to a total of 100 laptop owners who are living in Australia. (See Appendix II – Market Research Survey Questionnaire on page 12) Methodology Aside from conducting a literature review, specific needs and wants of the buyers, motivational factors, attitudes and preferences, and social class of portable computer users will be determined by gathering a total of 100 potential survey respondents. To avoid having a bias research findings and conclusion, 100 survey questionnaires were randomly distributed to portable computer users regardless of the brand they have. The main purpose of randomly distributing the survey questionnaires is to enable the researcher to have a better idea on how they perceive these brands. Right after the survey questionnaires were completed, the researcher conducted a quick one-on-one interview on why they need to purchase a portable computer. The survey questionnaires will be distributed to laptop users within the school vicinity and nearby malls. Based on the data gathered, research survey result will be interpreted using simple statistical analysis on excel software and a combination of quantitative and qualitative analysis. Assumption and Limitations The business report assumes that the use of advertisements as well as the market price of portable computers could have a significant impact over the buying behavior of HP and Dell’s target consumers. Given that the research study was conducted with only 100 survey participants, the business report is limited to determine other factors that may have significant impact over the buying behavior of the consumers. Plan As part of giving the business executives with a clear introduction on the topic used in the business report, the first part will provide the readers with information related to the market shares of the major portable computer manufacturers that are competing within the Australian markets. Eventually, a market research survey study was conducted to determine the key factors that strongly influence the buyers’ behavior on HP and Dell portable computers. Needs and Wants Ninety-two percent of the survey respondents own a portable computer whereas the rest of the survey participants have bought these electronic gadgets as a gift for their special someone on special occasions. Based on the personal interview which was given to each survey participant right after they have completed the research questionnaires; almost all of them revealed that they need a portable computer to do their professional work and school activities which includes: writing, research purposes, preparing a presentation using PowerPoint software, and communicating with other people among others. Regardless of whether the brand is HP or Dell, the survey participants revealed that one of their major concern when buying a portable computer is the market price followed by the style, size and weight, memory capacity, and graphics capacity. Each person has their own personality or self-concept which affects the buying behavior of the consumers. (Kotler, 2000: p. 170; Sirgy, 1982) For this reason, HP and Dell address the specific needs and wants of the consumers in terms of the market price, weight, size, and other special features that a portable computer has in order to make it easier on the part of the marketers to advertise and promote the product. HP and Dell manage to cater the needs of consumers who are price sensitive. In the past, the market price for HP portable computers has once priced at $982 by giving its customers a $100 cash back right after purchasing a $1,082 worth of portable computer. (Connolly, 2005) Early this year, HP launched a light weight mini-laptop to cater the specific needs of the students and individuals who does not appreciate heavy and bulky laptops. HP has recently introduced its low-cost mini-laptop known as HP 2133 Mini-Note PC which has been priced at US$500 (Gaudin, 2008). Since the HP 2133 weighs so much lesser than any other portable computers (Alto, 2008), this product has been designed for students, women, and frequent travelers who would prefer to carry less load. (See Appendix IV – HP 2133 Mini-Note PC on page 14) Similar to HP, Dell has also recently launched its affordable mini-laptop called the Inspiron Mini 9 to target consumers who prefer less weight and small-size of a portable computer. Inspiron Mini 9 are sold in Australian market for only AUD$599 (Barker, 2008). With 802.11b/g Wi-Fi and built in webcam, Dell’s mini-laptop has 8.9-inch 1024 x 600 LED display that weighs only 1.035 kg. (See Appendix V – Dell’s Inspiron Mini 9 on page 15) Between HP 2133 Mini-Note PC and Dell’s Inspiron Mini 9, the advertisement that was shown on You Tube shows the individual characteristics of each mini-laptop which aims to attract consumers who are searching for powerful yet small portable computers. Motivations Motivation to purchase a new portable computer highly depends on the needs and wants of the consumers to own a new laptop. The effectiveness of these advertisements converts the individual needs into a motivation to buy. Under the Freud’s theory, most people are not conscious when it comes to understanding their own motivation when buying a new product. For this reason, advertisements are commonly used by marketers to motivate prospective consumers to patronize a particular brand (Reynolds & Gutman, 1988). Based on the effectiveness of marketing communications, targeted consumers may eventually develop a sense of association with a particular brand (Kotler, 2000: p. 172). With regards to the importance of advertisement in motivating consumers to acknowledge a particular brand, the research survey result reveals that 89% of the respondents were highly influenced to purchase a specific brand as compared to 9% and 2% which are influenced by the buyers’ family and friends. Since consumer behavior is highly influenced by the differences in social classes, family background, educational attainment, and profession among others (Kotler, 2000: pp. 160 - 165), marketers of HP and Dell should carefully address the impact of these factors on the product preferences of its target consumers. For example: HP has recently introduced an environmental friendly marketing approach by advertising its Pavillon dv692 systems using a recycled material messenger bags which are designed to give extra protection for the portable computer using internal air bubbles. (Wilson, 2008) This type of advertisment can be effective when it comes to attracting individuals who are environmentally conscious. As a way of motivating consumers to buy, Dell manages to come up with an advertisement which uses different colored laptops that suites the personality of each consumer. (See Appendix VI – Dell’s Advertisement on Colored Portable Computers on page 16) Basically, HP’s advertisement is more focused on addressing the individual needs of its target consumers whereas Dell’s advertisement is more generalized in terms of addressing the diverse needs of its customers. Note: Click on Advertisement: Dell Colored Laptops! to view the entire ad. Attitudes / Preferences In general, once HP and Dell marketers were able to successfully communicate the special features of its available products, consumers are able to develop either a positive or negative attitude with the brand. Research survey result shows that between HP and Dell, 63% of the survey respondents are using HP portable computers as compared with 29% who are using Dell. Since HP was established way back in 1939 as compared to Dell which was formed in 1984, some consumers have a false belief that HP products are much better off than Dell products since HP brand has been present in the computer technology longer than Dell. To counteract such false belief, Dell marketers are being challenged to use modern type of advertisements which could significantly influence the attitude of younger consumers. With the use of marketing communication techniques, marketers should focus on stimulating the curiosity and the attention of the consumers to enable them to receive an immediate response from its target consumers. Once these two companies are able to capture the attention of its consumers, it would be easier for the marketers to communicate with them. For this reason, HP and Dell are expected to develop a positive consumers’ attitude in the long-run. You Tube advertisement of HP and Dell use attractive sounds and pictures that capture the attention of the consumers. Aiming to capture the business sector, HP advertisement remain focused on promoting the importance of recycling and environmental friendly attitude (You Tube, 2008) whereas Dell advertisement is focused on how they improve the quality products they deliver to consumers (You Tube, 2008b). Note: Click on HP Personal Computer and Dell and Google Partnership. Social Class Determining the consumers’ social class is important for marketers to decide on how to communicate with them. Survey result shows that 59% of the respondents are professional adult male as compared with 41% female who yearly earns at least AUD$20,001 and above. For this reason, advertisement used by HP and Dell needs to be professionally inclined. (See Appendix III – Research Survey Results on page 13) Note: Click on HP Personal Computer and Dell and Google Partnership. Conclusion and Recommendations There is a tight competition between HP and Dell in terms of maintaining its market shares in Australian markets. Therefore, marketers should remain focused maintaining and improving the positive image of both brands. Aside from keeping the quality of portable computers competitive in the market, marketers are strongly advice to carefully analyze the social class of its target consumers to ensure the effectiveness of its marketing communications. HP’s failure to develop advertisements that will capture the attention of its target consumers will cause the company to lose a portion of its existing market to Dell or other similar companies. Appendix I – Market Shares of Major Computer Manufacturers in Australia PC Manufacturers Market Shares (%) Hewlett-Packard (HP) 21 Dell 15 Acer 13 Toshiba & Lenovo 8 Apple 6 Others (Sony, Asus Eee, etc.) 37 Total 100 Appendix II – Market Research Survey Questionnaire Gender: ___ Male ___ Female Age: ___ 18 – 21; ___ 22 – 25; ___ 26 – 30; ___ 31 – 40; ___ 41 and above Annual Earnings: ____ AUD 10,000 and below; ___ AUD 10,001 – 20,000 ____ AUD 20,001 – 30,000; ___ AUD 30,000 and above Occupation: ___ Self-Employed; ___ Employed; ___ Unemployed / Student Educational Attainment: ___ PhD Degree; ___ Master’s Degree; ___ Bachelor’s Degree; ___ High School 1. Do you own or have bought a portable computer? ___ Yes; ___ No (If yes, please proceed to the following questions.) 2. What or who influenced you to buy a portable computer? ___ Children/Family; ___ Friend; ___ Advertisements 3. Which brand do you have? ___ Hewlett-Packard; ___ Dell; ___ Others: Please State, _________ 4. Did you purchase the portable computer for your own use or a gift to others? ___ Own Use; ___ Gift to Others on Special Occasion 5. What made you purchase the portable computer among other brands/products? (Kindly rate the following from 1 to 5 with 5 represents the highest level on the particular attribute.) ___ Price; ___ Style; ___ Size & Weight; ___ Graphics Capability; ___ Memory Capacity *** Thank You! *** Appendix III – Research Survey Results Gender: (59%) Male; (41%) Female Age: (7%) 18 – 21; (18%) 22 – 25; (35%) 26 – 30; (28%) 31 – 40; (12%) 41 and above Annual Earnings: (0%) AUD 10,000 and below; (8%) AUD 10,001 – 20,000 (19%) AUD 20,001 – 30,000; (73%) AUD 30,000 and above Occupation: (29%) Self-Employed; (54%) Employed; (17%) Unemployed / Student Educational Attainment: (9%) PhD Degree; (14%) Master’s Degree; (57%) Bachelor’s Degree; (20%) High School 1. Do you own or have bought a portable computer? (100%) Yes; (0%) No (If yes, please proceed to the following questions.) 3. What or who influenced you to buy a portable computer? (9%) Children/Family; (2%) Friend; (89%) Advertisements 4. Which brand do you have? (63%) Hewlett-Packard; (29%) Dell; (8%) Others: Please State, Acer, Sony Vaio 5. Did you purchase the portable computer for your own use or a gift to others? (92%) Own Use; (8%) Gift to Others on Special Occasion 6. What made you purchase the portable computer among other brands/products? (Kindly rate the following from 1 to 5 with 5 represents the highest level on the particular attribute.) 1 – Price; 2 – Style; 3 – Size & Weight; 4 – Memory Capacity; 5 – Graphics Capability. Appendix IV – HP 2133 Mini-Note PC Source: HP, 2008 Source: You Tube, 2008 Appendix V – Dell’s Inspiron Mini 9 Source: Inspiron Mini 9 – ZDNet Australia, 2008 Source: You Tube, 2008 Appendix VI – Dell’s Advertisement on Colored Portable Computers Source: You Tube – Advertisement: Dell Colored Laptops, 2008 References: Advani, D. (2007, April 24). ZDNet Australia. Retrieved September 15, 2008, from HP Compaq Presario C500: http://www.zdnet.com.au/reviews/hardware/laptops/soa/HP-Compaq-Presario-C500/0,2000065761,339275058,00.htm?feed=pt_hp Alto, P. (2008, April 8). HP. Retrieved September 15, 2008, from HP Introduces Full-function Mini-notebook PC for Education Market: http://www.hp.com/hpinfo/newsroom/press/2008/080408xc.html Barker, C. (2008, September 5). ZDNet Australia. Retrieved September 15, 2008, from Dell launches netbook: http://www.zdnet.com.au/news/hardware/soa/Dell-launches-netbook/0,130061702,339291810,00.htm?feed=pt_dell Connolly, B. (2005, June 6). CRN Australia. Retrieved September 15, 2008, from Retailers in laptop price war: http://www.crn.com.au/News/19030,retailers-in-laptop-price-war.aspx Dell. (2008a). Retrieved September 15, 2008, from Company Timeline: http://www.dell.com/content/topics/global.aspx/about_dell/company/history/history?c=us&l=en&s=corp Dell. (2008b). Retrieved September 15, 2008, from Global Expansion Drives Growth: http://www.dell.com/content/topics/global.aspx/about_dell/company/history/history?c=us&l=en&s=corp Gaudin, S. (2008, September 4). Computerworld. Retrieved September 15, 2008, from HP unveils low-cost mini-laptop for education market: http://www.techworld.com.au/article/211638/hp_unveils_low-cost_mini-laptop_education_market HP. (2008a). Retrieved September 14, 2008, from HP Interactive Timeline: http://www.hp.com/hpinfo/abouthp/histnfacts/timeline/ HP. (2008b). Retrieved September 15, 2008, from About HP: http://www.hp.com/country/au/en/companyinfo/aboutus.html?jumpid=reg_R1002_AUEN Kotler, P. (2000). 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Retrieved September 15, 2008, from Dell and Google partnership: http://www.youtube.com/watch?v=QQWn0kkWX8E Read More