Marketing Strategy of Hewlett-Packard (hp) : Hewlett-Packard Company (NYSE: HPQ), commonly referred to as HP, is an American multinational information technology corporation headquartered in Palo Alto, California, USA.. The company was founded in a one-car garage in Palo Alto by Bill Hewlett and Dave Packard, and is now one of the world's largest information technology companies, operating in nearly every country. HP specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise servers, related storage devices, as well as a diverse range of printers and other imaging products. HP markets its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors.

HP's posted net revenue in 2009 was $115 billion, with approximately $40 billion coming from services. In 2006, the intense competition between HP and IBM tipped in HP's favor, with HP posting revenue of US$91.7 billion,[5] compared to $91.4 billion for IBM; the gap between the companies widened to $21 billion in 2009. In 2007, HP's revenue was $104 billion,[6] making HP the first IT company in history to report revenues exceeding $100 billion.[7] In 2008 HP retained its global leadership position in inkjet, laser, large format and multi-function printers market, and its leadership position in the hardware industry.[8] Also HP became #2 globally in IT services as reported by IDC & Gartner.[9]

Major company changes include a spin-off of part of its business as Agilent Technologies in 1999, its merger with Compaq in 2002, and the acquisition of EDS in 2008, which led to combined revenues of $118.4 billion in 2008 and a Fortune 500 ranking of 9 in 2009.[9] In November 2009, HP announced the acquisition of 3Com;[10] with the deal closing on April 12, 2010.[11] On April 28, 2010, HP announced the buyout of Palm for $1.2 billion.[12] On September 2, 2010 won its bidding war for 3PAR with a $33 a share offer ($2.07 billion) which Dell declined to match.[13]

On August 6, 2010 CEO Mark Hurd resigned.[14] Cathie Lesjak assumed the role interim CEO, and on September 30, 2010, Léo Apotheker became HP's new permanent CEO and Ray Lane, Managing Partner at Kleiner Perkins Caufield & Byers, was elected to the position of non-executive Chairman. Both appointments were effective November 1, 2010.[15]

With the merger of Compaq and Hewlett-Packard in 2002, the technology industry held its breath and waited for the destruction of the two computer giants. Mergers are a messy business and few observers expected these two companies to survive the union. Seven years later, how has HP fine-tuned its marketing strategies to ensure success?

The Current Strategy
1. According to Barney Beal's 2004 article, HP's new approach was developed to deal with the 86 marketing departments in use at the time of the merger. When the merger occurred, it created a series of internal problems. HP had to deal with multiple platforms, legacy systems and a lack of continuity among its marketing departments. Each department had separate budgets and resources, leaving the company with no idea of the marketing focus or the total amount spent on marketing. The new strategy allowed the company to focus on a results-based, data-driven model. The aim of this strategy was to give the new company a single language that enabled parts of the marketing campaign to be integrated. In order to create this singular approach, HP began using Seibel CRM and Marketing Resource Management tools. The tools provided HP's top executives and department managers with the ability to speak the same language using numbers to measure marketing success, the accuracy of forecasted expenses and program effectiveness. With the chief financial officer and department heads effectively communicating, the company could focus on speaking to the customer.
Focus on Your Customer
2. HP has customers in every arena of the business world. To get the most out of its customers, the company began using the consumer as a guide to its small business and corporate initiatives. Their customers have shown a marked enthusiasm for this approach, which in turn has given HP more qualified leads and business partners. This strategy allows the company to be led by the customer.
Create Measurable Goals
3. HP's reliance on a Customer Relationship Management program is no accident. By creating goals that can be measured, HP has managed to cut spending by 10 percent. These goals allow the company to funnel the marketing dollars to the strategies that show tangible results, creating a more efficient and effective marketing strategy.
Create Major Initiatives
4. HP has created two major initiatives within the company that have motivated the staff and increased the efficiency of the company. The campaigns are called Achieve More with Less and Operation One Voice. Achieve More With Less challenged the company to consolidate systems and reduce redundancy. Operation One Voice was used to take all of the marketing initiatives to the customer, raising the profile of the brand's image. HP used this initiative to reach out, employing the methods that customers used to contact the company. By using customer-driven communication lines, HP was able to convey its message directly to the customer. The use of the customer-driven approach has led to a successful launch of the company's marketing strategy.
 
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