Pradeep Jotwani, Vice President and General Manager of the Consumer Products Business Organization of the Hewlett Packard Company (HP) is considering to start selling printers directly to consumers via new electronic channel since he had already sell refurbished printers via internet outlet. He wants to know what products to sell, what prices to set and how to manage with current distribution partners.
HP was founded in 1939 by Bill Hewlett, and Dave Packard. The business started by selling technological and innovative products to business, and individual consumers throughout USA, and has expanded worldwide. There are five major businesses for HP; Computer products services and support, Test and measurement products and services, Medical electronic equipment and services, Electronic components, and chemical analysis.
The segment of Computer Products, Service & Support accounted for 83% of HP total revenue including computers plus peripherals and services. HP is well known for technological innovation, product quality and marketing was the key to HP success. The company always considered the needs of its customers and partners and HP believed this was contributed to the success of the company.
To mention about HP printers, these products are one of the company’s successes. Even though HP came to the printer market late after Epson, Diablo, and Qume but HP was managed to take the leading position in the market . Moreover, HP still gained some benefits from selling printer supply business under the strategy of razor and blaze which means selling the printers in the cheaper prices, but selling the other supplies in the higher prices. There were three types of printers that HP was selling: Ink Jet, lLaser Printers, Multi functions.
Consumer Buying Patterns: There are two types of customers. The first type is called at home buyers. Within this type, there are... [continues]
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