The Hewlett Packard Enterprise Company, commonly known as HP, is an American multinational information technology company based in Texas, United States.
It is one of the leading brands in the IT sector and is a global edge-to-cloud company created to transform business. It helps you connect, protect, analyze, and act on your data and applications from edge to cloud, wherever you live.
Today, we will look at HP’s marketing strategy, which helps the brand become its consumer’s first choice. You will learn about their marketing strategies, mix, and SWOT analysis.
Since HP was formed, it has grown immensely in profit and revenue, buying businesses and launching products and services to keep up with its competitors. Have you ever wondered how HP does marketing and the importance of marketing strategies in shaping the success of such growth? Understanding the intricacies of HP’s marketing strategy can offer valuable insights into the broader significance of effective marketing strategies for business expansion and staying competitive in the market. Let’s dig deeper into this and understand HP’s marketing strategy, shall we?
HP Marketing Strategy: Overview
HP knows its target audience, and they create strategies based on segmentation, targeting, and positioning, also known as the STP model. They target many customer segments, including consumers, small and medium-sized businesses (SMBs), and large enterprises.
They tailor their marketing messages and products to meet the specific needs of these different segments. Purchases are made both online and in-store.
Hence, they divide their customers into segments based on the target group and position themselves accordingly. You can learn more about b2b marketing strategies to understand things better.
Branding
HP has invested a reasonable amount of time in its branding, because of which its logo and tagline- Keep Reinventing, have become symbols of trust and innovation.
It provides a wide range of products and marketing materials and has huge functional retail stores, clearly defining HP as a cost-effective leader in technology. HP has positioned itself as a customer-centric brand.
Visit: Branding
Social Media Marketing
Statistics show over 80% of HP’s consumers purchase digital means such as their website and social media. Social media helps HP connect and interact with its consumers, giving them large amounts of consumer data.
Analyzing consumer behavior and influencing them to purchase through social media marketing becomes easier. Most of HP’s advertising posts are mainly promotional and informational.
By applying strategic search engine marketing it ensures top rankings for relevant keywords so that consumers looking for tech products can find them easily.
Product Differentiation
HP offers various products, including personal computers (laptops and desktops), printers, ink, toner, and different IT solutions and services. They relentlessly focus on differentiating their products from their competitors. HP heavily emphasizes quality, innovation, and reliability.
Their laptops are known to be very durable with an extended battery life, which suits the needs of modern-day users wanting efficiency and portability with their laptops. Every office you go to, you ought to see an HP printer.
Partnerships and Alliances
Strategic partnerships are one of the most crucial HP marketing strategy. They collaborate with retailers to expand their distribution network to make their products more accessible to customers. Any electronics store you go to, you always see HP products available there.
HP also forms alliances with educational institutes to provide students with laptops and has positioned itself as a company that empowers the next generation with its support.
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The Four Ps of Marketing Mix
Product
HP provides Business Process Outsourcing (BPO), infrastructure technology, support and development of applications, networking resources and products, integration services and consulting services, software, hardware, services, and products related to printing and imaging.
They are famously known for their laptops, digital cameras, printers, desktops, and other IT products. They enjoy a good customer base since their products are reliable and innovative. HP also provides tower servers for small to medium size work groups.
See Also: 8 Best Laptops for Digital Marketing in 2024
Price
HP employs fair pricing as well as competitive pricing to win over its competitors. The company calculates all relevant manufacturing, distribution, and promotion factors to decide on a final selling price.
They invest a reasonable amount of time in market research to understand the amount consumers are willing to pay for their products. Based on this, they make a product in the price range to suit consumer needs.
Most of the time, HP’s prices tend to be on the lower end as compared to other competitors in the market. It is a perfect balance between value and affordability.
Place
HP has a well-placed distribution channel. They sell products to individual customers and businesses, both directly and indirectly. They have a well-established online distribution channel where people place orders through the official HP website or other shopping sites.
HP also has retailers to supply their products to consumers. They have official outlets where they sell their products and services one-to-one. HP salespeople are well-trained to deal with customer needs efficiently.
Promotion
HP has a multifaceted promotional mix, and HP advertising showcases its products through compelling campaigns on various media channels such as TV, print, radio, and online media.
They strategically attract media coverage through press releases, user-generated content such as product reviews, and social media engagement.
As promotional activities, periodic discounts are also announced. Some exchange trade programs are also where consumers can replace their old product with a new one. This also promotes sustainability and reduces e-waste.
See Also: What are the 8Ps of Marketing? The 101 Guide
HP SWOT Analysis
Now, let’s quickly evaluate HP by its internal factors, such as strengths and weaknesses, and external factors, such as opportunities and threats. If you want to understand more about SWOT analysis, you should check out the detailed guide of competitor SWOT analysis.
Strengths
- Hewlett-Packard enjoys the maximum market share, which gives it a good brand value.
- They have a customer-centric approach and are reliable since their after-sales service maintains a good customer relationship.
- HP is known to be an innovative brand with affordable products. HP ships 2 PCs and 2 printers every second, a testament to their product quality and value.
- They have a smooth-running distribution channel across the world.
Weaknesses
- Declining demand has affected HP’s revenue and profitability in recent years since smartphones are overtaking personal computers.
- It cannot provide customized and innovative solutions to customers due to mass production.
Opportunities
- HP has the opportunity to benefit from many services related to cloud computing, as it is expected to grow only in the coming future.
- They could focus on acquiring companies that hold technology patents. This would help them compete with rivals in the market by expanding their product portfolio.
Threats
- Consumers are becoming ever so cost-conscious, resulting in low-profit margins due to low pricing.
- Competition keeps increasing in the ever-evolving digital world. New entrants apply competitive pricing to lure cost-conscious customers and win market share.
- Due to the economic recession, consumers and businesses tend to cut down on purchases, resulting in slow revenue growth for HP.
FAQs
Is HP a good brand for laptops?
HP is an excellent option for reliable laptops. The company has a good reputation for producing quality products that last long and are affordable.
Who are HP’s competitors?
Hewlett Packard (HP) faces intense competition from other companies in the market, such as Apple, Sony, Dell, and Lenovo, to name a few.
How does HP do marketing?
HP applies the STP marketing model, which includes segmentation, targeting, and positioning. Their marketing strategies include branding, social media marketing, product differentiation, partnerships, and alliances.
Conclusion
After looking at HP’s marketing strategy, it is safe to say that HP has an almost foolproof marketing strategy that allows them to keep their company amongst the top competitors in the market.
Increasing market share and profitability is crucial for the financial health and continued success of the HP company.
See Also: Lamborghini Marketing Strategy: Everything to Know
