HP Inc. IndiaUnderstanding B2B Structure &

Strategies

Presented By: Group 4

HP Overview• Hewlett-Packard Co. (HP) is a provider of information technology (IT)products,

software, solutions and services.• HP produces printers, digital cameras and servers, provides IT and consulting

services, and makes networking products and software to tie everything together.

• Its service portfolio includes enterprise IT infrastructure solutions, technology support, maintenance services, outsourcing, integration and consulting services.

• HP’s customer portfolio ranges from individuals to small, medium, and large enterprises.

• The company also offers a set of managed services, providing a cross-section of broader infrastructure services for smaller discrete engagements.

• It conducts business operations in 170 countries across Americas, Europe, Middle East, and Asia-Pacific regions.• HP is headquartered in Palo Alto, California, US.

HP India Overview• HP came to India in 1988. HP India has a presence in over 350 cities in the

country• The HP - Compaq merger in 2002 created the largest PC company in India

with revenues of Rs. 35 billion and a combined 17% market share in India• In March 2009, HP launched the ‘HP Software University’ (HPSU) in

partnership with Indian Institute of Hardware Technology (IIHT). • The Indian entities of Hewlett Packard Co are:

– HP India Sales Private Limited for sales and marketing operations– Global e – Business Operations Private Limited for transaction processing– HP India Software Operations Pvt. Ltd. for software development and sales – HP Labs India - for innovation & to provide breakthrough technology for the

rapidly growing emerging markets worldwide.– HP Consumer Contact Centre - Technical Support Contact Centre– HP Global Soft Ltd -HP Services global delivery operations in India for

Application Services, IT Infrastructure and Technology services.

Corporate Objectives

• Corporate Objectives• Customer loyalty• Profit• Growth• Market leadership• Commitment to employees• Leadership capability• Global citizenship

Corporate Family Tree

Hewlett-Packard

HP Inc. HP Enterprise

HP Product Portfolio

HP Market Share

17%

13%

12%11%6%

41%

PC Market Share in % of 2011

HPLenovoDellAcerASUSOthers

Sales Director

National Sales Manager

Key Account Managers

Tier-2 Channel Managers

Tier-2 Channel partners

Tier-2 Channel partners

Tier-2 Channel

partner…n

Distribution channel Managers

Tier-1 Channel partners

HP Inc. India - Sales & distribution structure

HP Channel Partners’ Network in India

HP Inc. India B2B Clients/Customers

B2B Clients

Government & PSUs

Central

State

Enterprise Business

Corporates

Education Institutions

How does it work ?

SWOT Analysis

The Key challenges faced by HP Inc.’s Sales & Marketing Channel in India

The major challenge faced by HP Inc.:

• The conflict of interest between its KAMs and the Tier-2 channel partners involved in the bidding process.

• As in, let’s assume that the KAM and the Tier-2 partner both reach ABC Company to pick order for 100 HP Laptops with certain specification.

• They both quote different price to the customer. In case, the KAM wins the order and forwards it to some other Tier-2 partner then the one involved initially on discovering the reason behind his loss generally gets into tiff with the KAM.

• Albeit, the condition leads to both competition and tussle among the Tier-2 channel partners but also leads to conflicts with KAMs.

In such scenarios, the channel manager plays a crucial role in satisfying the egos of both the KAM and the tier-2 client by offering certain offers.

The Key strategies to measure the effectiveness of the distribution channels in India?

For Tier-1 Partners: • More they purchase and bill the products, more effective they are considered to be. • The Tier-1 partners are authorised to generate invoice for the certified Tier-2

partners only. • The Tier-1 partner must have a warehouse, sound financial details and risk taking

capability.For Tire-2 Partners: Criteria are as follows – • The number of new clients added by the partner to its network.• How often the partner meets the targets & how many time it exceeds the target• The number of repeat purchase generated/brought by Tier-2 partner• The Tier-2 partners may sell to the B2B clients, retailers or they might have their

own sub-distribution channel called the Tier3 partners. • They might not be present or available within the reach of every local areas and

highly available in shady areas or restricted geographies.Key Account managers: The KAMs’ effectiveness is measured on the basis of the business retained by them as well as the new accounts fetched by them.

The metrics used to calculate the CLV

• Revenue metrics is the most preferred metrics to measure the growth, sales volume and customer base for the HP Inc. in India and worldwide.

• The organization believes in calculating the revenues generated per customer in the sales cycle and it further helps in forecasting the demand and sales for the consecutive period.

• All data is analyzed on weekly, monthly and quarterly basis as well.

• The data is captured and retained from its distributors for further processing.

The most important factors to the marketing performance considered by HP Inc.

Brand Awareness

Lead Generation

Customer Acquisition

Website Traffic

How does HP Inc. India sales team manage customer lifetime engagement

• HP believes that happy partners lead to happy customers• upgrade, educate, inform and motivate its channel partners• HP believes in providing its customers an experience to fetch more business.• incentivizing and rewarding its sales force, the employees of the channel partners are also rewarded and groomed for excellence

Conclusion

From our discussion with tier-1 and tier-2 channel partners in India, we understand that

• HP Inc. India has smooth and functional sales and distribution channel in India.

• People are happy with the policies, motivation and rewards provided by the organization.

• There are no strict and hard rules but the partners’ business practices need to be fair and ethical.

• HP Inc. India believes in investing in human capital to grow and penetrate in difficult geographies of India.

THANK YOU