HP Inkjet Printers: Achieving a new Height

Ever since Stanford University classmates Bill Hewlett and Dave Packard founded HP in 1939, the march of the hardware colossus has been mind- bugling. Be it Desktop PCs, Digital Notebooks, Tablet PCs, printers, monitors and projectors, scanners, fax products, or Supercomputer installations, the company has effectively made its presence felt in these market segments across 170 countries. The Palo Alto garage, with it has become a corporate heritage.

HP Printers in Indian Market
In India, besides the other products, the inkjet products from HP have been able to carve a niche for itself. In this age of technological advancement, when laser printers are the preferred choice, HP has positioned Inkjet printers in this market quite effectively in a balanced manner vis-à-vis its technologically fat siblings. Call it market network, product propaganda and promotion or brand value, or sheer quality, HP has done it.

HP’s Marketing Strategy
Well, what might be stirring your mind are the whats and hows of the market strategy pursued by HP to continue its dominant position in the printers market. Let’s delve into the issue threadbare. The hardware major has been pursuing a 360-degree strategy as part of its printer marketing in India. Its emphasis on product innovation has enabled it to offer state-of- the-art printing solutions to its customers from time to time. The recent rollout of 12 new personal printing solutions more than vindicates this. This has promoted HP as a provider of novelty and has put it way ahead its competitors in the said market segment

If this is not enough, riding high on its vibrant channel network that spans across almost all metros and Class B & C cities nationwide, HP reaches out to legions of customers. To add sinew to it all, HP’s robust after-sales service and support infrastructure has helped it as a market leader to grow the printing market and introduce new technologies in the Indian market. HP continues to be the undisputed market leader with a market share of 75 per cent in the single function inkjet printer segment and 87 per cent market share in the inkjet All-in-One segment, according to IDC Q2, 2006. The Inkjet All-in-One market is expected to grow from 440,382 units in 2006 to 734,222 units by 2010.

Enhanced Supplies Accessibility
To complement its efforts on the fronts, we have discussed earlier HP has further concentrated its strategy on enhanced supplies accessibility. To make supplies ordering, a breeze for customers, HP is providing the Dial-A-Cartridge service, which enables customers to order a cartridge through a toll-free number (1800 425 4999) when they would run out of supplies. The cartridges can be delivered to the customer within two hours of placing the order, at their doorsteps. For customers who still prefer to visit a store for their supplies, HP has set up 1,500 purchase points across the country, including more than 900 HP Original Cartridge Stores, where customers can be rest assured of getting only genuine HP cartridges.

True to its pricing mode, HP has set a price tag that varies between Rs.2,999/- and Rs.15,999/- for its new products. The new lineup also features HP’s fastest Photo Printer, HP’s first touch-screen Printer as well as new consumer-friendly Photosmart Express interface that makes printing easier and faster.

Commenting on the delightful success, Vibhor Bansal, Country Category Manager – Personal Printing Products, Imaging & Printing Group, Hewlett—Packard India Sales Pvt. Ltd., said, “As the undisputed market leader, HP believes in growing and leading the Personal Printer market in India. With this initiative, HP has further reinforced its commitment to delivering the best printing experience for the consumers.”

Channel Network…
HP enjoys one of the most effective channel networks in India. A brief look at it, crystallizes the pattern followed by the hardware giant. Unlike Dell which trusts on a “straight-to-the-end-user” model, HP prefers a Pyramidal model in engaging its channel partners. Given below is a schematic of the HP channel structure.

On the bottom of the pyramid lie the Registered Resellers, while the Distributors occupy the top rung of the channel network.

For its new personal printing range, HP has also conducted channel road shows and trainings across 100 cities in Q1, 2007 to educate channel partners on the new product portfolio and technologies. In order to intensify channel focus on the Photo printers, HP develops a Photo Club programme for select channel partners to target photo studios and photo service providers.

As far as its new All-in-One range is concerned, HP targets key vertical segments such as jewellers, exporters, design agencies, photographers and self-employed professionals through focussed market development programmes by offering customized solutions. It also targets school children whom it views as a strong customer base. The HP All-in-One can be used by school children to print their school projects, scan encyclopaedia and copy class notes.

In terms of geographical focus, HP has been busy increasing its sales reach from 300 to 450 cities for the personal printing range through channel expansion. Additionally, HP has increased consumer support coverage from 114 to 155 cities and increased the number of service centres from 273 to 342. The new personal printing solutions will be available across 400 exclusive HP Experience Zones and 1,500 multi-brand retail outlets which also include Class B & C cities.

New Arrivals
We have already had a heady look at the factors responsible for driving HP’s share in the printers market. It would help our cause to throw a close look at the broad spectrum of new HP printers that are doing the rounds.

The new HP Personal Printing solutions include:

The high performance All-in-One range that enables users to PRINT, SCAN and COPY true-to-life colour photos as well as laser quality documents. There are select models which use flexible-to-replace 6 individual ink cartridges and have new features such as memory card slots for digital camera printing and wireless printing.

Next to it, the Photosmart Express is a new consumer-friendly printer interface that offers home consumers quick and easy options to view, print, save and share photos across all Photosmart printers and All-in-One printers.

Five new Scalable Printing Technology (SPT) enabled Photosmart Printers (including two new photo printers, two All-in-Ones and a professional photo printer). The SPT technology delivers considerable print speeds and superior print quality.

Among The line of new HP products, the most talked about is the HP Photosmart D7368.The product runs at a fascinating photo print speed of 12 secs. With it, HP debuted its first innovative touch-activated 3.4-inch display panel for a kiosk-like printing experience at home.

The next product of note is the sleek and stylish Compact Photo Printer – A516 – which includes a built-in handle, and optional battery to make it a truly portable accessory for vacations, family celebrations and other special occasions. It empowers the users to print anytime, anywhere through the Pictbridge port using digital cameras and through Bluetooth wireless technology using mobile phones.

HP’s latest range of affordable HP Deskjet printers have been designed to meet the everyday printing needs of customers.

Speaking on the opportunities, in the Inkjet market, Vibhor Bansal said, “With a boom in the market of image-capturing devices like mobile phones and digital cameras, we foresee immense potential in the photo printing segment. Our new photo printer lineup enables fast and easy-to-do printing with features such as Photosmart Express soft ware, Bluetooth-enabled printing and direct digital camera printing.”

With the lion’s share of the inkjet market segment already in its kitty, HP has set an ambitious business goal for 2007.  HP hopes to continue its growth and lead the printer market by delivering the best printing experience to consumers. Its business strategy and marketing programmes will be focussed to further strengthen its channel support and to educate the market on new applications and technologies.