Industry Report Laptops

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Institute Of Management, NIRMA University

Marketing Management-I
Submitted to- Dr. Ashwini Awasthi

Group-3
Industry-Laptops

Submitted by:

Deepika Bhatt [101311]
Dhrumit Punmiya [101312]
Gaurish B. Desai [101313]
Harsha Vardhan [101314]
Harshil M.Kothari [101315]

Introduction-Global Scenario

While the personal computer (PC) industry began in the 1970’s, the first commercial portable computer, Osborne was available in 1981. The next big event in the history of laptops came in the summer of 1995, after which Microsoft and Intel became the standard for the software (Windows) and hardware (Intel processors) used in laptops.

Over the past fifteen years, the increasing price-performance ratio, consumer preferences for mobility as well as increased hardware life has resulted in higher growth of laptops than desktops.Currently the laptop industry globally is worth 217.9 billion US dollars.

Datamonitor forecasts that the global PC industry is projected to grow at a compound annual growth rate (CAGR) of 5.4% in market value during 2007-2012, with laptops (a sub-segment) being the major contributor to its growth.

Major players- HP/Compaq, Acer, Dell, Lenovo/ ThinkPad, Sony, Apple, Toshiba.

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Global Market Share [%]

The Indian Laptop Market

Indian Laptop market in now in sync with global market. It was in 2005 that sales of laptops surpassed the sales of desktop computers for the first time in India.

The Laptop market is growing at a fast rate because of change in work life of consumers. As the need for "anytime anywhere" access to information is increasing, the sales of Laptops are also increasing.

Other factors that are responsible for the hike in sales figure are reduction in prices and affordability. Laptops are now sold at approximately half the price at which they were sold two years ago. Laptops prices are now almost at par with the desktop computer prices. Manufacturers Association IT said it expects 3.15 million laptops and netbooks-smaller and lower-cost versions of laptops-to be sold this fiscal year.

Last fiscal year, desktop sales rose 5% to 5.52 million units, while sales of laptops and netbooks surged 65% to 2.5 million units thanks to demand from individual consumers, especially in smaller towns and cities.

Major players- HP/Compaq, Acer, Dell, Lenovo/ ThinkPad, Sony, Toshiba.

Dell, the world’s third biggest PC manufacturer has slowly started creeping slowly into HP’s territory in India.It has snatched away the top spot from HP in the laptop PC segment in the country with a market share of 26.3% for the first time in the last quarter of 2009.HP merged with Compaq in 2002, it took over Compaq's existing naming rights agreement. As a result, HP sells both HP and Compaq-branded machines. However in overall PC market, HP remained at the top with a market share of 16.2% followed closely by Dell [13.6%] and Acer [10.4%] according to an IDC study.

HP/COMPAQ

Product

HP has launched a variety of products ranging from laptops to notebooks and tablet PC’s in terms of product variety. The various product varieties are HP Mini Home PC’s, HP Pavillion Home Notebook PC’s, HP Touch Smart Home Notebook PC’s, Compaq Presario Home Notebook PC’s etc. These different products differ in their characteristics such as weight, battery life, screen sixe, power consumption etc.

Price

The price of the products varies according to the category as mentioned below:

HP Mini Home PC’s – Starting from 17,703 taxes and levies extra

HP Pavillion Home Notebook PC’s, - Starting from 35,429 taxes and levies extra

HP Touch Smart Home Notebook PC’s, - Starting from 69,143 taxes and levies extra

Compaq Presario Home Notebook PC’s - Starting from 24,289 taxes and levies extra

The wide variation in the price is to target different income segments, e.g. students as well as corporate users.

Promotion

HP uses a mix of...
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