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 To learn about the strategies adopted by different brands in the laptop industry.


 Limited to students and retail shoppers within Bangalore city limits.

   

 To learn about the strategies adapted by different laptop brands, to
position in the minds of the consumer.

    The study was limited to few students and retail shoppers.


 The data was collected through the Questionnaire (Appendix A) which
consisted of both the open and close ended questions.

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A laptop computer is a small, portable computer that is small enough to sit on
a person¶s lap. While the personal computer (PC) industry began in the early 1970¶s, it was
not until 1981 that the first commercial portable computer. 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 since
2004. An increasing number of computer operators are switching to laptops for ease in
working. Laptops in India have become widely popular and essential for every business in the
last few years. The laptop prices in India are very competitive, as many brands are vying to
capture the market in cities and small towns. As technology advances, price of newer models
raise the bar for rivals. It also allows previous models to be sold at more affordable prices.
According a Manufacturers' Association for Information Technology (MAIT),
India's hardware industry lobby, Indians have started purchasing notebook computers faster
than the industry would have thought, with notebook sales growing at 114 percent in the
fiscal year 2007-08. This excludes notebooks imported by professionals on their personal
account. In the first half of the FY 2008-09, Indians bought nearly 680,000 notebooks,
compared to 36,000 units in the same period four years ago, said a recently released
performance review of MAIT. It added that the momentum in the Indian notebook market is
finally in sync with the global trend, where for the first time in 2005 notebook sales surpassed
desktops sales.

%(&%'!
X Ñ LW TT PACKARD
X D LL
X JONY VAIO
X AC R


$!"!

 &%)% ÑP established a presence in Asia Pacific in 1963 when the
first office was set up in Japan. Today, we have more than 36,000 employees in this region
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with operations in 14 countries ± Australia, China, Ñong Kong, India, Indonesia, Japan,
Korea, Malaysia, New Zealand, Philippines, Jingapore, Taiwan, Thailand and Vietnam.
ÑP¶s presence in the region also consists of 12 manufacturing sites located across Australia,
China, India, Japan, Malaysia, Jingapore and Thailand. ÑP Labs in Bangalore, India was set
up to create a world-class research lab, focusing on the needs of emerging markets such as
India. It is one of seven ÑP Labs sites worldwide. The mission of this lab is to generate
technology innovations for the benefit of the world's emerging economies by understanding
relevant social, cultural, economic and technological drivers. Research here is focused on
language technology; low-cost Internet and computing access devices; communication
concepts and techniques for developing countries; and new models for human interaction
with IT equipment and software.

%! Jince its founding in 1976, Acer has constantly pursued the goal of breaking the
barriers between people and technology. Focused on marketing its brand-name IT products
around the globe, Acer ranks as the world's No. 3 vendor for total PCs and No. 2 for
notebooks, with the fastest growth among the top-five players.. The Acer Group employs
more than 6,000 people worldwide. 2008 revenues reached UJ 16.65 billion.

Over 30 years of making history in the fast-paced IT industry shows that Acer has walked in
the right direction. Its far-reaching strategy of focusing on R&D and marketing development
laid the foundations and created a company ready to embrace the challenges of the future.

! Dell has its most comprehensive presence outside the United states in India with
14000 employees who serve on teams in domestic sales, R&D, manufacturing, customer
support, services& analytics. Dell is no.4 in India and is the fastest growing PC Company
with 63% unit growth in2006. Dell analytics in Bangalore is one of the company¶s few global
centres that develops innovative business solutions in financial services, database marketing,
e-business, logistics, procurement and services analytics to keep dell¶s internal operations and
business practices on the cutting edge.

 '  Jony Corporation, Japan, established its India operations in November 1994,
focusing on the sales and marketing of Jony products in the country. In a span of 12 years
Jony India has exemplified the quest for excellence in the world of digital lifestyle becoming
the country¶s foremost consumer electronics brand. In India, Jony has its footprint across all
major towns and cities through a distribution network comprising of over 7000 channel
partners, 215 Jony World and Jony xclusive outlets and 19 direct branch locations. Manned
by customer friendly and informed sales persons, Jony¶s exclusive stores µJony World¶ are
fast becoming the most visible face of the company in India. Jony India also has a strong
service presence across the country with 21 company owned and 172 authorized service
centres. A distinctive feature of Jony¶s service is their highly motivated and well-trained
staffs that provide the kind of attentive and sensitive service that is rare today.


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!
A differentiation strategy incorporates the development of a product or service so it can offer
a customer perceived uniqueness in the marketplace that seems to be better than or different
from the products of the competition.

D LL works on a simple direct-to-consumer model, which is their differentiation strategy.

The idea behind selling computer systems directly to customers is it could better understand
customer needs, and efficiently and effectively provide the most compelling computing
solutions to meet those needs.

The way they differentiated themselves from the market was that Dell builds every system to
order and offers their customers powerful, richly-configured systems at competitive prices.

The direct-to-consumer model, operates on the basis of build-to-order that provides an

advantage in the form of reduced carrying cost of inventory.

D LL offers complementary services such as online customer support, two-year on-site

warranty, web hosting, installation and configuration of customers¶ hardware and software.
D LL can compete effectively as they have flexible infrastructure and can adapt to
technological changes at least cost and at the same time link the supply to demand through
direct model effectively owning the entire value chain.

D LL has successfully imbibed in their business model the concept of Just-in-time and hence
commands a strong lead in cost leadership, quality and ordering convenience. D LL
continues to be among the top to include new technology and promoting them to the
customers.

$!"!

&%)%

The newest 13-inch premium consumer notebook from ÑP promises to provide the ideal
balance of durability, mobility and design. Coming in at just 0.8-inch thin and 3.74 pounds,
we're inclined to believe ÑP's marketing on this one.

The nvy 13 is connected to the ÑP VoodooPC nvy 133 in more ways than just the name.
The new nvy 13 includes switchable ATI Mobility Radeon ÑD 4330 discrete graphics that
deliver high performance when you need it or reduced power consumption when you want as
much battery life as possible. Jpeaking of the battery, the nvy 13 offers an ultra-high
capacity battery slice that extends battery life for up to 18 hours! Part of that impressive
battery life comes from the use of the Intel Core 2 Duo Processor JL9400 running at
1.86GÑz.
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As impressive as that sounds, the most striking feature of the nvy 13 has to be the new "ÑP
Radiance Display" that delivers vivid color quality & exceptional brightness thanks to an
improved color gamut (82%) and a brightness rating of 410nits. "Beats Audio" also gives the
nvy some reasonably impressive speakers for a 13-inch laptop. You might not feel the need
to use your earphones with this notebook.

While Ñ-P used to own the #1 spot in the PC market, Dell took over the top spot in 2003.
Dell¶s direct distribution model became the envy of all PC manufacturers and made them a
darling on Wall Jtreet (and a case study for all MBA students). Christopher Lawton¶s post for
the Wall Jtreet Journal provides great detail about Ñ-P¶s fall and strategy to regain the top
spot.

It started in 2005 when Ñ-P C O Mark Ñurd hired Todd Bradley to run its PC business.
Bradley quickly found out that Ñ-P was concentrating resources where Dell was strong in
direct sales over the internet and phone.

Jo instead of fighting a losing battle online, Bradley shifted Ñ-P¶s focus to a battle it could
win in the retail distribution channel.

Bradley immediately began repairing relations with retailers, freshened designs to appeal to
retail buyers, formed the PC¶s own marketing group, upped his retail outlet marketing budget,
and designed new campaigns targeted to the retail buyers.

The results? Ñ-P¶s retail outlet strategy vaulted it back to the undisputed world lead in
personal computer sales.

 '
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In order to allow top management to make timely strategic decisions, group

operational performance will be monitored and evaluated on a weekly basis.

 Building on the AV/IT concept, attractive new models, all equipped with DVD drives,
will be introduced. With an enhanced supply chain management system, profit recovery is
targeted.

1) Jony will further integrate its engineering and development resources to create a more
efficient manufacturing platform for horizontal support (enhancing engineering base,
reducing fixed and variable costs) .

2) Increased selection and focus mainly in the electronics business in order to convert to a
high-profit structure (exiting from unprofitable business lines, disposal and sale of non-
strategic assets) .

3) Further rationalization of production facilities, expansion of "multi-category" production,

strengthening of module (key device block) production and conversion to "multi-functional"
operation (design, call center, service center etc). .
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4) Cutting fixed costs (including Jony Corp.) to rectify the current unbalanced group
revenue/cost structure where yen-denominated revenue totals about 30%, while yen-
denominated costs total about 50% .

5) Reforming Jony's domestic (Japanese) personnel system through stringent implementation
of performance-based compensation and a renewed employment structure including further
deployment of human resources from overseas.


Jony Music ntertainment (JM ) implemented a series of organizational changes designed

to further intensify its focus on artist development, streamline operations, and position the
organization for future growth. Jony Pictures ntertainment (JP ) will energetically promote
new releases and develop its franchise strategy to reinforce its market position.

),

.+,, %Æ

 It¶s worth mentioning that Jony Vaio had earlier signed deals with international
celebrities and this is the first time an Indian face has been roped in. Jony Vaio will launch
µJize Zero¶ range of laptops by end of this month. Jince, the actress has got more relevance
to this concept of µJize Zero¶; it would be a right brand to endorse for.³The range of the new
Jize Zero Jony Vaio is compact, classy, chic and sophisticated « Jince Kareena Kapoor has
the charismatic appeal, we¶re sure she can carry the brand with panache," said an official
from the brand.

%!
Acer is planning to bring eMachine brands with different external design, colors and
even different marketing strategies that will enable the company to reach different sections of the
people easily. People attach different attributes to different brands and make emotional buying
decisions based on these characteristics, he said. xtensive market research, for example show people
associate eMachines with "value;" Acer with "performance;" and Gateway with "social recognition
and cutting edge design." Acer's access to retail channel (including Gateway's) and experience
in JKU management in retail is currently superior to other leading brands. Acers laptops are one of
the easily accessible ones when compered to the top brands. It is available in
To truly Ê
Ê
Ê
Ê, Acer understands that customers are the essence of our
business practices. As such, we take a "customer-centric" approach as one of our core values and is
the foundation for all decisions. Acer believes in placing first priority on listening and satisfying
customer needs, and then delivering first-class products and services. This mindset begins from the
technology concept, to research and design, to delivery, and efficient after-sales service.
Acer's dedicated call centre for its Jaudi based customers has seen a 100 percent
success rate in the first three months of operation. all calls to the service centre are answered in less
than 30 seconds, and 95 percent of all queries are addressed in under three minutes. nhanced after
sales services is of critical importance to maintain customer confidence. Acer is a very consumer
focused organisation and this call centre is designed to cement customer confidence in the Acer brand.
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cerformance i t e level at which the
9

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product primary characteri tics operate.

 
 It can be seen from the research conducted
that Sony emerges the leader in
performance followed by Dell. This
shows that Sony has been able to design a
p
p

c performance level which is equal to the

 performance level expected by the target

market. Sony has been constantly working

upon continuous improvements of their


products and thus has emerged as the best


performer.

Source SUR E

DATA

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Good battery backup becomes a very
9

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 important way to differentiate laptops as

the main purpose of laptops is handy use .
Thus, battery life can be easily developed
p
p

as a c D for laptops. It can be seen from
c
the market research that Dell has been most


successful in developing there battery
 backup. This in a way becomes a c D for


 Dell as most of the people looking for
 longer battery life will prefer to go with
p
Dell.

Source Survey data

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  chysical appearance in totality can be

 
 referred as the style and design of the

laptop. It is the product s overall look
and feel. Aesthetics is very important as


it provides distinctiveness which is

c difficult to copy. Moreover, it is a way
 to attract customers. From the market
 research it can be seen that Sony is the
leader in physical appearance followed


by Hc. Thus, it can be concluded that

Sony has been able to create a distinct

look and feel which is most appealing
to customers in comparison to other
laptops.

Source Survey data

9


!
! !


! !

It can be seen from the market research that

 
 Sony has emerged as the fastest adaptor of new

 

 technologies and is closely followed by Dell .
This becomes a source of competitive

 


 advantage for Sony because the brand would
develop an image of being an innovator in the
mind of the consumers

c












Source Survey data

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  !



! !






!

!

It can be seen from the conducted market





 


research that Sony is considered to be the best
  

company on the basis of promotional strategies
adopted by them for new products. This is a
good sign as if the company is able to catch the

pp
customer¶s attention by their promotional
p
c strategy for new products launched by them
 only then they will be able to portray the image
of an innovator. This also shows that Sony has
p

been successful in getting the customer¶s mind


share which is helpful in covering a larger

 market share.

Source Survey data

! !



!
! +!/




 49% people surveyed feel that they have more
accessibility to the hp stores. Sony holding the


   

second place with a mean difference of 3%
compared to dell, revealing the well strategi ed



channel differentiation did help Hc in


differentiated itself from others. Whereas, Dell


c which provides an option of online ordering, is
indeed found in giant electronic malls and no



specialised stores.


 

p


Source Survey data

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!
 !
! !


 


After sales service plays an important role
as it is directly linked to satisfying


customer complaints and providing
service as promised. According to the
survey, 91% of the sampling unit said the
p



c service representatives were able to
 recogni e the problem quickly. But from
 the above data it is clear that DE has
emerged to be the best in providing the


after sale service and the reason for DE

achieving highest is due to better trained

employees.

Source Survey data

 !


 !
 


  
 
 
Most of people have chosen the option of

retailers as the channel to purchase laptop
 

and next online. This infers that most of
them would touch feel and try the product
p
and then buy the laptop. Most of the people
who has chosen the nline as an option have

cited for the ease of ordering as the main
reason.


    

Source Survey data

.
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#Æ Æ *
X From the survey conducted it can be seen that Jony has been most successful in
differentiating its product in comparison to all other laptops. The aggregate of all
product differentiation strategies shows that Jony is the leader closely followed by
Dell. According to the secondary data Jony has been continuously trying to improve
its style, design and performance by giving focus upon the product engineering. The
company has been able to communicate all these values to the customer successfully
as a result of which it is a leader according to customer¶s perceptions.

X From the survey it can be seen that Dell is very close to Jony in their product
differentiation. This can be further substantiated from the secondary data.. Dell
customizes each laptop according to the customer¶s required configuration. Moreover,
Dell promotes itself as one of the fastest in adopting new technology Thus, it can be
said that Dell to a great extent has been able to create there value in customer¶s mind
as they wanted to.

X It can be concluded from the survey conducted that Jony has been most successful in
creating its brand equity in the mind of the customers. According to secondary data
Kareena Kapoor was recently made the brand ambassador for Jony laptops. Jhe was
selected to reflect the brand¶s image of being sophisticated. It can be clearly seen
from the research that according to the customer¶s Jony is best in promoting its
products to customers. Thus, it can be said that Jony has been successful in achieving
its aim.

X ÑP has emerged as a leader in the distribution strategy followed by companies. This

has been because of their wide presence in the market through retailers and company
showrooms. Dell lags behind by 3% even though it follows Just-in-time because
though it can be ordered online it is present in very few giant electronic malls and
with no retailers. This reduces the accessibility of Dell laptops. Jpecially for the home
consumers who physically want to touch and feel the product before buying it. Thus,
lack of availability of Dell laptops in retailers had led it to lag behind ÑP.

X On the basis of personnel differentiation Dell has emerged to be the leader because of
the online centres for problem solving and because of there speed in repairing the
systems.


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 pp


!! %
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X Jony has to improve up on its battery. The main reason behind this is because of the
display which is far better than all other brands. Jo it can be suggested that Jony can
use a 9 cell battery to compete with other brands.
X Jony lacks in its after sale service (in Bangalore at present it has only three service
centres).so it is recommended that it should have more number of service centres.
X Compared to other brands at the same cost dell has poor appearance and therefore it is
recommended that it should improve up on its appearance.
X Most of the customers prefer to buy a laptop from a retailer. Jo dell should improve
up on its retail network.
X ÑP should come up with better promotional strategies since people are not aware of
the new features introduced in the laptop.
X Acer lacks in its performance. This is because it is deficient in adopting new
technology.
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!#!! !
1. www.mait.com
2. www.wikipedia.org
3. http//www.rediff.com/money/2009/feb/03india -unveils-10-dollar-
laptop.htm

4. http//www.thaindian.com/newsportal/business/sony-india-targets-20-
percent-share-in-notebook-market_100269398.html
5. http//economictimes.com
6. http//economictimes.indiatimes.com
7. http//www.livemint.com/2009/08/27140541/Indian -PC-market-grows-
52-in.html
8. http//www.indiaglitz.com/channels/hindi/article/51407.html
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