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Management education talks of synchronizing the theoretical studies with

practical in the most effective way. The training figure prominently in the
course curriculum as it imparts practical knowledge to the students aspiring
to accomplish professional insight. It actually gives the feel about what is
happening in life and industry around. It grooms

as individuals to find

himself fit in the corporate world.

Students eventually

come out with much confidence, knowledge and

Matured attitude and outlook.

I have study about the distribution Network & advantage of distribution
network after that I have study about the Company profile of HP .

In todays competitive world marketing research forms a key player.

To me, it is an

orderly and insightful process of thinking about and

planning for the market. This process is applicable to more than just goods
and services. I think that anything that can be researched ideas, events,
organization, place, personalities etc.

S. no.


Pg. no.


Company Profile



Objective of the study

Research methodology
Data Analysis & Interpretation


Definition Network (Channel)

Entire chain of distribution intermediaries from the supplier to the consumer.
A strong and efficient distribution network is one of the most important
assets a manufacturer can have, and is the biggest deterrent that faces the
new competitors.

Companies all over the world deliver products and/or services to end user
clients these customers by definition are located at the end of a marketing
[distribution] channel. Whilst Small and Medium Enterprises and Large
Corporate by definition will be using some form of distribution channel
through which to deliver their products, services and messages very often
we see that they are all but doing more of the same. The recent intensive
corporate training seminar that I wrote and ran for Marcus Evans
Professional Training was focused on Enhancing Channel Management
Strategies to Maximize Sales Through Distributors. In essence companies
face to major decision when it comes to dealing with their distribution

The Design of the Distribution Channel

The Management of the distribution Channel

as we see that when new employees join an organization they normally

end up sitting with someone who knows how things operate within that
company. They learn how things have been done and are often judged and
measured on how well they measure up to that which they have been taught.
However when we look at some of the great business breakthroughs take
for example Dell migrating away from a

Direct Only Distribution Channel

to that of one where customer can purchase their products via retail and
even the television. We see that challenging the norm when it comes to
dealing with distribution channels is the same as with everything else

life i.e. Keep doing the same things and you will get the same results !!!
As an Business Strategy Consultant I always aim to look if there is another
way as well as looking at what is working and methods for improving on
that. It is often said that one cannot change distribution channels easily or
taking on new partners is fraught with danger as the existing partners will
object, resist and damage the ongoing business relationship. It looks as
though many companies are in fact modifying their distribution channel
strategies as well as looking to manage existing partners and relationships
more effectively. As you look to get more out of your business could it be
that taking some time out to examine your current distribution channel
makeup and management should be the very thing to concentrate on ?? Get
in touch if youd like some outside perspective to help you on your way in
your business endeavors. Best, Stephen C Campbell [distribution channel
management trainer]
Physical distribution (or place) is one of the four elements of the marketing
mix. An organization or set of organizations (go-betweens) involved in the
process of making a product or service available for use or consumption by a
consumer or business user. The other three parts of the marketing mix are
product, pricing, and promotion
The distribution channel
Chain of intermediaries, each passing the product down the chain to the next
organization, before it finally reaches the consumer or end-user.... This
process is known as the 'distribution chain' or the 'channel.' Each of the
elements in these chains will have their own specific needs, which the

producer must take into account, along with those of the all-important enduser.
A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They

may be just as important for moving a service from producer to consumer in
certain sectors, since both direct and indirect channels may be used. Hotels,
for example, may sell their services (typically rooms) directly or through
travel agents, tour operators, airlines, tourist boards, centralized reservation
systems, etc.
If we mention in a single sentence the distribution channel is nothing but it is
a process of transfer the products or services from Producer to Customer or
end user.

There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services the latter offering anything from televisions through tools. There has also
been some evidence of service integration, with services linking together,
particularly in the travel and tourism sectors. For example, links now exist
between airlines, hotels and car rental services. In addition, there has been a
significant increase in retail outlets for the service sector. Outlets such as
estate agencies and building society offices are crowding out traditional
grocers from major shopping areas.
Channel decisions

Channel strategy

Gravity & Gravity

Push and Pull strategy

Product (or service)


Consumer location

Managerial concerns
The channel decision is very important. In theory at least, there is a form of
trade-off: the cost of using intermediaries to achieve wider distribution is
supposedly lower. Indeed, most consumer goods manufacturers could never
justify the cost of selling direct to their consumers, except by mail order.
Many suppliers seem to assume that once their product has been sold into

the channel, into the beginning of the distribution chain, their job is finished.
Yet that distribution chain is merely assuming a part of the supplier's
responsibility; and, if they have any aspirations to be market-oriented, their
job should really be extended to managing all the processes involved in that
chain, until the product or service arrives with the end-user. This may
involve a number of decisions on the part of the supplier:

Channel membership

Channel motivation

Monitoring and managing channels

Type of marketing channel

1. Intensive distribution - Where the majority of resellers stock the
'product' (with convenience products, for example, and particularly
the brand leaders in consumer goods markets) price competition may
be evident.
2. Selective distribution - This is the normal pattern (in both consumer
and industrial markets) where 'suitable' resellers stock the product.
3. Exclusive distribution - Only specially selected resellers or authorized
dealers (typically only one per geographical area) are allowed to sell
the 'product'.
Channel motivation
It is difficult enough to motivate direct employees to provide the necessary
sales and service support. Motivating the owners and employees of the
independent organizations in a distribution chain requires even greater effort.
There are many devices for achieving such motivation. Perhaps the most

usual is `incentive': the supplier offers a better margin, to tempt the owners
in the channel to push the product rather than its competitors; or a
compensation is offered to the distributors' sales personnel, so that they are
tempted to push the product. Dent defines this incentive as a Channel Value
Proposition or business case, with which the supplier sells the channel
member on the commercial merits of doing business together. He describes
this as selling business models not products.
Monitoring and managing channels
In much the same way that the organization's own sales and distribution
activities need to be monitored and managed, so will those of the
distribution chain.
In practice, many organizations use a mix of different channels; in particular,
they may complement a direct sales force, calling on the larger accounts,
with agents, covering the smaller customers and prospects. these channels
show marketing strategies of an organization. Effective management of
distribution channel requires making and implementing decision in these
Members of channels of distribution typically buy, sell, and transfer title to
goods. There are, however, many other flows between channel
members in addition to physical possession and ownership of goods.
These include promotion flows, negotiation flows, financing, assuming
risk, ordering, and payment. In some cases the flow is in one direction,
from the manufacturer to the consumer. Physical possession,

ownership, and promotion flow in one direction through the channels

of distribution from the manufacturer to the consumer. In other cases
there is a two-way flow. Negotiations, financing, and the assumption of
risk flow in both directions between the manufacturer and the
consumer. Ordering and payment are channel flows that go in one
direction, from the consumer to the manufacturer.
There are also a number of support functions that help channel members
perform their distribution tasks. Transportation, storage, insurance,
financing, and advertising are tasks that can be performed by facilitating
agencies that may or may not be considered part of the marketing channel.
From a channel management point of view, it may be more effective to
consider only those institutions and agencies that are involved in the transfer
of title as channel members. The other agencies involved in supporting tasks
can then be described as an ancillary or support structure. The rationale for
separating these two types of organizations is that they each require different
types of management decisions and have different levels of involvement in
channel membership. Effective management of the channels of distribution
involves forging better relationships among channel members. With respect
to the task of distribution, all of the channel members are interdependent.
Relationships between channel members can be influenced by how the
channels are structured. Improved performance of the overall distribution
system is achieved through managing such variables as channel structure
and channel flows.

Supply chain management is concerned with managing the flow of physical

goods and associated information from initial sourcing to consumption. One
benchmarking study showed that best-practice supply chain management
companies enjoyed a 45 percent total supply chain cost advantage over their
median competitors. Bottom-line benefits included: I) reduced costs relating
to inventory management, transportation, and warehousing; 2) improved
service using techniques such as time-based delivery; and 3) enhanced
revenues through greater product availability and more customized products.
Some companies contract out the task of supply chain management to a
specialized service firm. The supply chain management firm typically
provides vertical market expertise, transaction processing capabilities, and
business consulting services, allowing the company to focus on its core
competencies. In addition to reducing costs, effective supply chain
management can result in enhanced supplier relations and greater customer
satisfaction through timely deliveries and accurate responses to customer
Advantages & Disadvantages of Distribution Channel
Advantages of distribution channel are:

It helps the delivery of goods and service to the customer.

Its vertical and horizontal marketing system can help the marketers as
well as the consumer to earn profit

Disadvantages of distribution channel are:

Channel conflict arises in the chain of distribution

Can effect economy as different organizations try to capture market

with more of its distribution facilities





HP is a technology company that operates in more than 170 countries around

the world. We explore how technology and services can help people and
companies address their problems and challenges, and realize their
possibilities, aspirations and dreams. We apply new thinking and ideas to
create more simple, valuable and trusted experiences with technology,
continuously improving the way our customers live and work.
No other company offers as complete a technology product portfolio as HP.
We provide infrastructure and business offerings that span from handheld
devices to some of the world's most powerful supercomputer installations.
We offer consumers a wide range of products and services from digital
photography to digital entertainment and from computing to home printing.
This comprehensive portfolio helps us match the right products, services and
solutions to our customers' specific needs.
HP strives to be an economic, intellectual and social asset to
each country and community in which we do business.

Key areas of contribution are electronic waste, raising

standards in our global supply chain and increasing
access to information technology.

Technology leadership
HP's three business groups drive industry leadership in core
technology areas:

The Personal Systems Group: business and consumer

PCs, mobile computing devices and workstations

The Imaging and Printing Group: inkjet, LaserJet and

commercial printing, printing supplies


Enterprise Business: business products including storage

and servers, enterprise services, software and networking

Fast Facts
HP was incorporated in 1939.
Corporate headquarters are in Palo Alto, Calif.
Mark Hurd is president and CEO.
HP is a Fortune 11 company, with $86 billion in revenue, generating $7
billion in organic growth for fiscal year 2005

HP is focused on three technology shifts that have the power to
transform our customers' lives and businesses.

Information explosion

Digital transformation

Environmental sustainability

It is necessary that people work together in

unison toward common objectives and avoid
working at cross purposes at all levels if the
ultimate in efficiency and achievement is to be
Dave Packard
HP's Corporate Objectives have guided the

company in the conduct of its business since

1957, when first written by co-founders Bill
Hewlett and Dave Packard.
Customer loyalty
To provide products, services and solutions of the highest quality and
deliver more value to our customers that earns their respect and loyalty.
Underlying beliefs supporting this objective:

Our continued success is dependent on increasing the loyalty of

our customers.

Listening attentively to customers to truly understands their needs,

then delivering solutions that translate into customer success is
essential to earn customer loyalty.

Competitive total cost of ownership, quality, inventiveness, and

the way we do business drives customer loyalty.

To achieve sufficient profit to finance our company growth, create value
for our shareholders and provide the resources we need to achieve our
other corporate objectives.
Underlying beliefs supporting this objective:


Profit is the responsibility of all.

Balance of long-term and short-term objectives is key to


Profit allows us to reinvest in new and emerging business


Profit is highly correlated to generating cash, which brings more

flexibility to the business at a lower cost.

Profit enables the achievement of our corporate objectives.

Market leadership
To grow by continually providing useful and significant products,
services and solutions to markets we already serveand to expand into
new areas that build on our technologies, competencies and customer
Underlying beliefs supporting this objective:

There are more places we can contribute than we will be capable

of contributing: We must focus.

To be average in the marketplace is not good enough, we play to


We must be No. 1 or No. 2 in our chosen fields.

To view change in the market as an opportunity to grow; to use our
profits and our ability to develop and produce innovative products,
services and solutions that satisfy emerging customer needs.


Underlying beliefs supporting this objective:

Growth comes from taking smart risks, based on the state of the
industrythat requires both a conviction in studying the trends,
but also in inducing change in our industry.

Our size (and diversity of businesses) gives us an ability to

weather economic cycles and turn them to our favor.

Employee commitment
To help HP employees share in the company's success that they make
possible; to provide people with employment opportunities based on
performance; to create with them a safe, exciting and inclusive work
environment that values their diversity and recognizes individual
contributions; and to help them gain a sense of satisfaction and
accomplishment from their work.
Underlying beliefs supporting this objective:

HP's performance starts with motivated employees; their loyalty is


We trust our employees to do the right thing and to make a


Everyone has something to contribute: It's not about title, level or



An exciting, stimulating work environment is critical to invention.

A diverse workforce gives us a competitive advantage.

Employees are responsible for lifelong learning.

Leadership capability
To develop leaders at every level who are accountable for achieving
business results and exemplifying our values.
Underlying beliefs supporting this objective:

Leaders inspire, foster collaboration and turn vision and strategies

into actionwith focused, clear goals.

Effective leaders coach, relay good news and bad, and give
feedback that works.

Leaders demonstrate self-awareness and a willingness to accept

feedback and continuously develop.

Leaders speak with one voice and act to eliminate busy work.

It is important to measure people on the results they achieve

against goals they helped to create.

Global citizenship
Good citizenship is good business. We live up to our responsibility to
society by being an economic, intellectual and social asset to each
country and community in which we do business.
Underlying beliefs supporting this objective:

The highest standards of honesty and integrity are critical to

developing customer and stakeholder loyalty.


The betterment of our society is not a job to be left to a few; it is

the responsibility to be shared by all.

This objective is essential to delivering on the brand promise.

Products & services

Home & Home Office


HP Desktop PCs

HP Notebook PCs

Compaq Home Desktop PCs

Compaq Presario Notebook PCs

Printers & Multifunction

Ink, Toner & Paper




Accessories & Parts

All Consumer Products

Latest Product Offers

Small & Medium Business

Notebooks & Tablet PCs

Desktops & Workstations

Printers & Multifunction

Ink, Toner & Paper


Servers & Storage


Handhelds & Calculators

All-In-Ones & Scanners


Accessories & Parts

All Small & Medium Business Products & Services

Latest Product Offers

Large Enterprise Business



HP Services




Networking Solutions


Printing Solutions

Notebooks & Tablet PCs

Desktops & Workstations

Video Collaboration

IT Management Software

All Large Enterprise Products & Services

Public Sector, Health & Education

Federal Government

Regional & Local Government

Health & Life Sciences

Elementary/Secondary Education

Higher Education

All Public Sector, Health & Education

Graphic Arts




Objective of the Study:In this project report of mine I would be focusing my attention on some of
the important objective that would also be the part of my study. The
following are the objective: To understand various problems encountered by seller / distributors in
reference to HP
To understand profitability of selling HP s as compared to other
brands available in the market.
To know about the brand awareness of HP

in the mindset of

customers through distributor/sellers.

To have a comparative analysis of distribution channels of HP ego
To understand the strategy to increase number of seller/ distributors
for HP.


Research Methodology


Research Methodology
Research methodology is used to systematically solve the research problem.
It is a way that defines the process of overall study. The method used must
be justified. Research may be quantitative or qualitative research. In this
research qualitative as well as quantities research will be used, as it is
necessary to know features/ facilities that attract the customer to buy specific
laptop as well as number of laptop sold by dealer/ distributors of HP as well
as others brand available during the Research period.
Data Collection
Task of the data collection is very important part of Research. It begins after
defining the researcher problem and preparation of research design. It may
be primary or secondary data collection.
Primary Data: Primary data are those which are collected fresh and for specified purpose
for the first time. These data are original data for the research purpose. The
various tools of primary data collection are questionnaire, interview,

observation, telephonic interview. For, this study purpose questionnaire

and some time interview used for data collection.
Secondary Data:The secondary data are which have been already collected by someone else
and which have already been passed through the statistical tool. Data that are
originated within the firms is internal secondary data, and which originated
from external sources are external secondary data.
Secondary data have been collected from various magazines, company
websites, records, newspaper, newspaper and websites.
Scope of study
To position the brand in the mind of dealer/ Distributors.
Gathering and disseminating relevant information from dealer/
To solve the various problem occurred by the dealer/ Distributors.
To understand the demand of dealer/ Distributors and fulfill them for
best sale of HP
Analyzing the current environment and work culture of store and
suggesting new ideas order to enhance the efficiency of the store in
terms of look, sale and way of working.
Building long-term relationship with dealer/ Distributors
Adaptation of different marketing strategies to promote the product as
well as store.
Building long-term relationship with customers
Research Design
Research design is a frame work or blueprint for conducting the


A research design is the arrangement of conditions and analysis of data in a

proper manner that aims to combine all the matter in a relevant way for
research purpose.
Research design provides the glue that holds the research project
together. Research design is of various types like: Exploratory Research
Descriptive Research &
Causal Research
In this study Exploratory, Descriptive and Causal is being used as the
nature of study.
Exploratory Research Design:The main purpose of such type of research is the formulation of problem for
more precise investigation or of developing the working hypothesis from an
operational point of view. Here, problem during distribution will be
Descriptive Research Design:The major objective of descriptive research is to describe something usually
market characteristics or function.
Descriptive research is a preplanned and structured research. It
is typically based on large representative samples.
Descriptive Research conducted for the following purpose:A. To describe the characteristics of the relevant groups, such as
consumer, organization, or market area.
B. To determine the perception of the product characteristics.
C. To determine the degree to which marketing variables as associated.
And such type of investigation is required during the Research.

Causal Research Design:It is a type of conclusive research where the major objective is to obtain
evidence distribution of HP brand will be assessed.
Sampling Design
A sample design is a definite plan for obtaining a sample from a given/
chosen population. It refers to the technique the research would adopt in the
selecting items for the sample. Sampling design is of two types:1. Probability Sampling and
2. Non Probability sampling.
Probability Sampling:A sampling technique in which each element of the population has a fixed
probability chance of being selected for the same
Simple random sampling, technique is being used for this study
Steps in sample design
1. Sample Unit
Male or female shoppers, dealers, wholesaler or distributors. They
may be newly opened or old one. They may have relation with HP or
want to establish.
2. Sampling Frame
All the Dealer/ Distributors at Bhopal
3. Sampling Technique
Simple random sampling of Probability Sampling technique. Where
each Dealer/ Distributors have equal chance to be selected in sample

4. Sample size

It is the number of items to be selected for research. It may be too large

number or too small, according to the research nature, it must should be
optimum. In this study sample size will be 25.

Limitation Of the study

In the current project there are some limitation that have been found . these
limitation are: In a very short span of time this analysis of customer satisfaction
about the HP. This is one of the major limitations of this project
because in the very short period analysis .
The present study is totally region specific.
Every person has different view in comparison to other person. Same
is the case with this project also.


Data Analysis & Interpretation


1. How many dealerships do you have?

Above pie chart shows that 44% dealers have all brand dealership, 28% have
the 6-10 brand dealership, and 24 % have the 2-5 brand dealership and 4%
having single Brand.
More dealers are interested to keep all available brand dealership available
in market.


2. Which brand do customers generally prefer?Based on the responses

collected, the following table shows
Brand No.

of Percentage

respondents %
(out of 25)




The following data highlights that out of 25 respondents interviewed how
many would prefer the brand mentioned.
It can be concluded that most preferred brand are HP


4.) Do you agree that Distribution channel plays an important role in sale of
Products in HP..?








Above chart shows that 88 % dealers are agree that Distribution Network is
important for sale of laptop.
Distribution network is very important.


5.) What promotional activities do you think can increase the sale in HP?
Promotional Acitivities
Adv. +Promotion

% Respondents

Above chart shows that 48% dealer are suggest for the advertisement of HP
e.go series laptop, 28% suggest for advertisement as well as promotion also,
20% dealer suggest for the promotion of product and 4% are in the favors of
To get success into market the product should have strong advertisement and
6.) Do you Channel strategy & Gravity & Gravity is well in HP?









Above chart shows that 88% dealers promote HP laptop by there own and
12% do not promote HP.
Most of dealer promote HP by there own.
7.) What problem you face while selling the Product in HP..?
Less customer preference
No advertisement
Poor configuration

%No. of respondents

From the dealers point of view we can analyze that they face certain
problems like less customer preference, no advertisement, and poor
From the above response we can conclude that dealers face maximum
problem due to lack of advertisement.

8.) What are the reasons that the customers do not prefer HP?
Poor configuration


No. of respondent


From the above we can analyze that customer do not prefer HP due to
certain reasons like advertisement, and poor configuration
It can be said configuration as well as advertisement is no good.

9). Does HP coordinate with you in terms of logistics?








Above chart shows that 60% dealer/ distributors are happy with the
coordination of HP management, 40% are not.
HP management is coordinating with dealer.

10). How much time does the distributor take to deliver the order?
Delivery Time

% Respondent

Within a day


With Iin3 days

With in a week


Above chart shows that 88% dealer get delivery within a day, 8% dealer gets
delivery within 3 days, 4% get delivery within a week.
It proves that HPs distribution channel is very strong.



44% dealers have all brand dealership, 28% have the 6-10 brand
dealership, and 24 % have the 2-5 brand dealership and 4% having
single Brand.
25 respondents interviewed how many would prefer the brand

88 % dealers are agree that Distribution Network is important for sale

of laptop
48% dealer are suggest for the advertisement of HP e.go series laptop,
28% suggest for advertisement as well as promotion also, 20% dealer
suggest for the promotion of product and 4% are in the favors of
88% dealers promote HP laptop by there own and 12% do not
promote HP.
dealers point of view we can analyze that they face certain problems
like less



no advertisement,

and poor

60% dealer/ distributors are happy with the coordination of HP
management, 40% are not
88% dealer get delivery within a day, 8% dealer gets delivery within 3
days, 4% get delivery within a week



From the project that I had undergone during my Summer Internship
program I can conclude that to succeed in the business we must not only
depend on our existing method and channel, but also develop a way to
differentiate we must try to develop a new value curve and if this is achieved
the whole exercise to differentiate will give its fruit in term of higher sales.

After working for several weeks I concluded that dealers are more
vulnerable against the competitor.
Whole responsibility lies in the hands of customers and to keep them on our
side it is necessary to understand the customers required configuration with
reasonable price. And also dealers should try to make a harmonious and a
relationship of trust, when a retailer will be honest towards his customer and
try to solve the requirement of customer with an honest feeling to help him
he can make a better relationship.. A better relationship is maintained only
when he is helping out customer by providing him at least basic service to
the customer such as installation of OS and various other small issues. For
dealer he should give reasonable price whet they calls him or want to know
about product. Because while visiting many dealers the main response was
that they do not provide rate at the time. And also provide the proper
knowledge of the product. This action creates goodwill of retailer in the
heart of customer as well as with other dealers or distributors.
By following this strategy HP had managed to get on rank two with HP at
number one .HP is also trying to gain the in-depth insight of retailing for the
promotion of its DIGILIFE stores this step of HP will reduce its dependency
on individual retailers.





I have done study on Distribution network in HP I have given some

suggestion to company that are following
A better margin will provide a boost to retailers for selling the product
of HP as much as they can
They try to mold the customer toward that product.
They should employ advertising to make their offerings known in the
market, which already has several established brands to sell
Advertisements should be buyer centric because an effective
advertisement is key to get success in todays era when the buyers
have become more educated than they were




Non Electronic sources: Philip Kotler, Kevin Lane Keller(2006).Marketing Management
Naresh Kumar Malhotra, Fifth Edition Marketing research
C. R. Kothari, Research methodology.
Electronic sources: www. google.com( for various topic search)
www.scribd.com (for documentation)
www.nasscom.in ( for it knowledge)



Firms Name: ___________

Owners Name: _________

Contact No.: ____________
Email/websites: ____________________________________________
1. How many brand dealerships do you have?
1 Brand
2-5 Brand
6-10 Brand
All Available
2. Which brand do customers generally prefer?

3. What are unique features preferred by customers?

4. Do you agree that marketing plays an important role in sale of

5. What promotional activities do you think can improve the sale of HP


6. Do you promote HP by your own?
7. What problem you face while selling HP laptops?

8. How many LAPTOPS generally you generally sale in a week?
Above 10
9. How many HP LAPTOPS generally you sale in a week?
Above 7

10.What are the reasons that the customers do not prefer HP?
11.On the scale of 1-7 how would you rate brand image of HP
(1-Best, 2-Very Good, 3-Good, 4-Average, 5-Bad, 6 very bad, 7-Worst
12.Does HP co-ordinate with you in the term of Logistics?
13.Do you get delivery of Laptop on time (HP)?
14.How much time does it take to deliver the order?
Within a day

Within 3 days
Within 1 week
More than it
15.What facilities do you required for effective sale of HP laptop?