Marketing Management Report: A New Value Proposition for HP Inc.

This marketing management report provides an in-depth analysis of customer-focused and perceived values in relation to Hewlett Packard (HP), comparing its value proposition with that of Dell Technologies. It explores various models, including the Means-End Model, Typology of Customer Value, and Customer Value Hierarchy Model, to understand how customers perceive and analyze HP's products. The report also evaluates HP's existing value proposition, benchmarks it against Dell's, and proposes a new value proposition model designed to enhance market value, customer base, and revenue. The new plan emphasizes both internal and external environmental factors to foster stronger customer relations and loyalty, ultimately aiming for sustainable growth and competitive advantage for HP. The document also includes an implementation plan for the new value proposition, considering consistency and differentiation in market segmentation.

MARKETING
MANAGEMENT

ABSTRACT
The present report aims to define the notion of customer focused and perceived values with
the various ways they analyse the products of the companies and buy a product of a particular
company. Hewlett Packard (HP) is selected here to show most relevant models. The document
will also highlight the current value proposition implemented a model of HP and how it differs
from the leader and potential competitor of the industry, Dell Technologies. Further, after
analyzing the currently established value proposition model a new model is generated to attain
better value in the markets and good relations and loyalty with the customers of the company.
The new plan for value proposition emphasizes on both internal and external environment of
the company to enhance the market value, customer base and revenue of the company.

Contents
ABSTRACT........................................................................................................................................2
INTRODUCTION................................................................................................................................4
COMPANY PROFILE......................................................................................................................4
OBJECTIVE....................................................................................................................................5
1. IDENTIFYING CUSTOMER PERCEIVED VALUE CHAIN FOR HP......................................................6
1.1 THE MEANS-END MODEL RELATED WITH PRICE, QUALITY AND VALUE OF HP....................7
1.2 TYPOLOGY OF CUSTOMER VALUE.......................................................................................10
1.3 CUSTOMER VALUE HIERARCHY MODEL (WOODRUFF, 1997).............................................12
1.4 CUSTOMER SATISFACTION VERSUS CUSTOMER LOYALTY..................................................14
1.5 SERVICE AND QUALITY VERSUS CUSTOMER SATISFACTION...............................................15
2. COMPARISON AND EVALUATION OF EXISTING VALUE PROPOSITION OF HP WITH DELL........17
2.1 HP VALUE PROPOSITION – CUSTOMER VALUE MODEL (PIERCY, 2009)..............................19
2.2 CUSTOMER VALUE PROPOSITIONS IN BUSINESS MARKETS................................................20
2.3 VALUE PROPORTION BUILDER.............................................................................................20
3. BENCHMARKING THE TWO VALUE PROPOSITIONS..................................................................22
3.1 QUARTERLY UNIT VOLUMES SOLD......................................................................................22
3.2 CUSTOMER SATISFACTION INDEX RATING..........................................................................22
3.3 4P’S MARKETING MIX OF HP WITH DELL.............................................................................23
4. IDENTIFICATION OF NEW VALUE PROPOSITION.......................................................................25
4.1 NEW VALUE PROPOSITION OF HP – MISSION AND MARKETING STRATEGY MODEL.........25
4.2 MARKET ATTRACTIVENESS AND POSITION.........................................................................25
4.3 THE TRAP OF COMPETITIVE BOX.........................................................................................26
4.4 THE PIONEER, MIGRATORY SETTLER MAP..........................................................................27
5. PLAN TO IMPLEMENT NEW VALUE PROPOSITION, INTERNALLY AND EXTERNALLY.................28
5.1 CONSISTENCY VERSUS DIFFERENTIATION IN MARKET SEGMENTATION............................28
5.2 INTERNAL AND EXTERNAL VALUE PROPOSITION................................................................29
6. CONCLUSION..............................................................................................................................30
REFERENCES...................................................................................................................................31
APPENDIX.......................................................................................................................................35

INTRODUCTION
Value proposition model worthful for ascribing a customer towards a product or a service. In
almost all of the cases, people are unaware of the strategies involved in deciding to the price of
a product or a service. People always rely on the marketing and appeal of a product in a market
by just evaluating them according to their own basis or value they receive. According to Ryu, et
al. (2012), it is the thing which is directly linked to the quality of the products, physical
environment, customers satisfaction and behavioural intentions. Different type of value
proposition methods and perception of people are forcing business management to opt new
strategies in their marketing planning. With the help of a well-defined customer value
proposition model, any company can develop a loyal customer base for their sustainable future
and a great source of their revenue (Li & Green, 2011).
Here, the present Marketing Management report will try to develop a better knowledge of the
different models of perceived value for one of the best electronics company; Hewlett Packard
well known as HP and Dell which is the leader in the industry will be taken to analyse
differences between both and then plan a better model for HP to implement in future.
COMPANY PROFILE
HP is the American born multinational Information Technology brand of the world which
facilitates both software and hardware to its clients all over the globe. The company started its
business in 1939 as Hewlett Packard Enterprise, now operating as HP Inc. The company is
headquartered at Palo Alto, California, the U.S. The company is listed in the fortune 500
companies at 61st rank in 2017 and has earned the revenue of $48,238m with the help of its
very large employee base of more than 49,000. At present company is operating in a very tough
market with the invasion of some more potential companies and competitors like Dell and
many more. The company has developed several products in the range of printers, software’s,
camera’s, cloud services, scanners, tablets, mobile phones, desktops and major market of

laptops. HP operates with both B2C and B2B clients and uses several strategic fields in their
business.
OBJECTIVE
This study is directed towards the determination of the perceived value of HP in the markets
and then assess the current value proposition of the company. in addition to this, the report
will incorporate with the difference of the value proposition of both HP and Dell. Further, the
report aims to generate a new value development plan for HP and will show its implementation
to acknowledge the satisfaction of the customers and the increased value of the company.

1. IDENTIFYING CUSTOMER PERCEIVED VALUE CHAIN FOR
HP
Heinonen (2004), described that the customer value perceived value defines the perception
and level of analysis a customer pays to buy a product and gets satisfaction. While according to
Hsin Chang & Wang, (2011), the customer perceived value at present in the world of online
shopping can be defined by the level of quality of the product, on time delivery, costs and
services.
According to Dave Packard, present executive of HP said that if people work together of a
common objective and avoid cross working, then a company can get the highest efficiency and
ultimate objectives can be achieved. For HP, customer perceived value relies on the passion of
the customers, their trust, achievement and contribution of the company with agile strategies.

Figure 1: Shared Values and Corporate Objectives of HP
Source: [HP Values-Objectives, 2018]
1.1 THE MEANS-END MODEL RELATED WITH PRICE, QUALITY AND
VALUE OF HP
The means-end theory is all about the behaviour of the customers and it focuses on the
personal values and individual behaviour. According to the authors, personal values are the
ends and means are the modes to achieve the ends. This is developed by Gutman (1982) and is
still used to explore the available choices of customers. The theory includes the intrinsic
attributes which have colour, flavour and all the physical aspects of the products and services
while extrinsic includes the image, brand, origins etc. of the product (Jung & Kang, 2010).

Figure 2: Means-End Model
Source: [Gutman, 1981]
Here, with the help of Gutman’s Means End model the analysis of the products of the company
can be observed. For growing the customer perceived value HP uses its several products and
their quality services to the people which will lead to high satisfaction level of the customers
and hence more loyal customers to the company.
BEST SELLING PRODUCTS OF HP WORLDWIDE
HP Touch Smart 610-1065qd  Quad core
 All in one
 Compatible
 Sleek and novelty
 $1789.99
HP Blackbird 002  Sleek like its reconnaissance-plane
namesake
 ruling the game grid

 fast and easy to upgrade
 robust with inbuilt graphics
 $5,400
HP Pavilion dv6-6013cl  Great laptop for professional and
personal use
 Second gen Intel processor
 Improved graphics
 Gaming support
 $649.99
HP Pavilion dm1z  Netbook
 AMD Fusion APU proved
 Long battery life with speedy
operations (7 hours)
 7,200rpm
 Up to 8 Gb expandable memory slot
 $449
HP Photo Smart eStation  Detachable screen
 Basic tablet and eReader
 Excellent printing controls
 Easy setup and automatic duplexer
 $399
HP Officejet 6500A Plus e-All-in-One  Well-rounded inkjet MFP
 Wireless printing
 Efficient paper handling
 Solid text and image quality
 $199
HP Pavilion p7-1067cb  Best alternative to PC
 Huge 25-inch monitor with power
 Reliable and easily available

 HDMI port
 Subscription to Norton Internet
Security
 $999.99
HP TouchPad  Solid metal hardware
 User-friendly operating system
 Made for multitasking
 Good and potential tablet
 $399
HP Officejet 100 Mobile Printer  Portable
 Quite slow but efficient
 Cartridge yield and long battery life
 Bluetooth
 5-sheet input tray
 $279.99
HP Envy 14 (Sandy Bridge)  Better performer
 Great hardware
 Discrete graphics ship
 Fast hard drive
 WiDi 2.0 technology
 AC adapter, slim and portable
 $1,079.99
Pierce, (2011)
COMPANY’S RANK IN FORTUNE 500

Figure 3: Company's Ranking
Source: [Fortune 500, 2018]
According to the Fortune 500, the company has lost its significant value in the last financial year
and with the several changes in the management of the company. HP uses wide analytics
paradigm to check organizational maturity.
1.2 TYPOLOGY OF CUSTOMER VALUE
For HP, the customer value co-creation is a task to be active, creative and collaboratively active
in social processes (Piller, et al. 2010). They interrelate both the producers and the customers
for acknowledging their value in the markets. Their typology is divided into three sections of
addressing customers autonomy, nature of the relationship between firm and customers and
innovation processes within the organization. According to Holbrook (1999), the model to know
the customer value is a show-stopper and can be still enhanced by the craftsman’s imagination.
ORIENTATION INTRINSIC EXTRINSIC
Self-oriented Active  Efficient
 Portable
 Reliable
 Latest technology
 Best designs
 Sleek
 Wants to deliver the
best technology to

upgradation the customers
Reactive Has the best and fast
service workforce to
make the best customer
relations
Has a separate research
department that eventually
avoids the major issues of
the company regarding the
physical aspects of the
devices
Other-oriented Active HP has recently been in a
new merger with the
major electronic
companies of the world
to enhance its hardware
and software
The company is working in
an ethical working
environment which makes it
more valuable to the
employees of the company.
Reactive To increases the
efficiency, potential and
ease in the working
operations of the
company, it uses its well-
maintained supply chain
and efficient service
mechanism all over the
globe
HP is known for its highly
reliable devices and high-
quality services which are
included in its intermediate
operations but are always
taken as a preference
(Hoegl, et al. 2011)