HCL MARKITING

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A

PROJECT REPORT

ON

SALES PROMOTION ACTIVITIES OF

HCL AT LUCKNOW.

A Partial Fulfillment of the degree of master of business Administration 2008-2010.

SUBMITTED TO: SUBMITTED BY:

AMAR SINGH SANDEEP KUMAR

FACULTY NAM , MBA IIIrd SEMESTER

DEHRADUN NAM,DEHRADUN

UTTRAKHAND TECHNICAL UNIVERSITY,DEHRADUN

2008-2010

REPORT ON SALES PROMOTION ACTIVITIES OF HCL AT LUCKNOW 1
http://images.google.co.in/imgres?imgurl=http://www.business.act.gov.au/__data/assets/image/0004/74362/HCL_Logo.jpg&imgrefurl=http://www.business.act.gov.au/servicestobusiness/events_and_seminars/2007_events_and_seminars/2007_india_in_focus/2007_india_in_focus/event_sponsors/hcl_technologies&h=126&w=380&sz=34&hl=en&start=2&um=1&tbnid=6EDqiUbhm3jeUM:&tbnh=41&tbnw=123&prev=/images%3Fq%3Dhcl%2Blogo%26um%3D1%26hl%3Den%26sa%3DX


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ACKNOWLWDGEMENT

I would like to take this opportunity to extend my heartfelt gratitude and thanks to Mr.

MADHUKAR SRIVASTAVA for his invaluable guidance, immense patience and

encouragement provided to me during the course of the Summer Training.

I am also grateful to Mr AMAR SINGH , my faculty guide at Nimbus Academy of

Management, Dehradun, for his constant support and foresight. His invaluable experience

proved to be one of the key success factors in my project taking its present mold.

Last but not the least, I would like to thank the ever helpful team at HCL Info systems. I

would like to thankMr BHAVISHYA JOSHI for warmth and support that has enabled me

to successfully complete this project. My increased spectrum of knowledge in this field is

the result of his constant supervision and direction that has helped me to absorb relevant

and high quality information.

I would like to thank all the respondents & HCL'S channel partners without whose

cooperation my project would not have been completed.

This report is the culmination of the synchronized effort of all the above mentioned that had

faith and confidence in me. For their belief, I shall forever be grateful.



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EXECUTIVE SUMMARY

The project is based on how an aggressive sales promotion can increase the sales of the

company. It is very important to know what the customer thinks about the company&

product, in order to provide the customer what they need. In this era of multinationals both

Indian and foreign companies are using newer sales promotion strategies to increase the

sales of the company without diluting the brand image of the company.

As the margin per product has drastically shrinked, dealers are finding it tough to survive,

so the company has taken the initiative to increase the sales of the dealers through sales

promotion schemes. This project is directed towards bettering the art of sales promotion

and increasing the sales of the company. Each of the sales promotion schemes like canopy,

road shows and mega events have their own target audience and company targets its

depending upon their requirement .Sales promotion is dependent upon the perception of the

company and product in the mind of customer. During this project I have tried to change lot

of perception about the product and company.

A survey of 250 respondents has been taken to know what they think about the company

and its products. A careful analysis of the data collected through personal interaction and

survey questionnaire has been done, based on the analysis a set of recommendation and

suggestion both at product and finance level has been made.

The project has helped me to enhance my practical knowledge and has given me an in

depth sight into channel sales, personal selling, understanding the relationship between

company and its channel partners which is very important for the survival of any company .

Conducting sales promotion has given me an insight on how to conduct an event and how

to handle the customer which would help in achieving the organizational as well as the

individual goals.

CONTENTS



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Acknowledgement ..2

Certificate .3

Executive Summary..4

Chapter 1 Introduction....6

Introduction....7

Objective... 10

Company Profile....11

Product & Competitor Analysis.19

Chapter 2 Review of Literature..29

Chapter 3 Methodology...39

Research design..40

Data Collection...44

Chapter 4 Analysis & Implementation50

Chapter 5 Limitations...64

Chapter 6 Major findings.66

Chapter 7 Recommendation.68

Chapter 8 Conclusion70

Chapter 9 Bibliography.....72

Annexure73

-Questionnaire..74



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CHAPTER 1

INTRODUCTION



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INTRODUCTION

HCL ,an Indian multinational and a billion $ 4.9.it offers a myriad of product ranging from

PC , networking devices, software solutions both for home users(personal segment) and

office purpose(corporate segment). HCL has direct sales, channel sales & retail sales

network in India, which meet the customer expectations .HCL has a pan India presence in

metro and non-metro.

HCL has product for all ranges of people in society Lower Middle Class, Middle Class

Upper, Middle Class. Higher Class.

HCL desktop stars from a very low range of RS14990 + taxes. The desktop in HCL can be

categorized as

1) HCL Pride machine-priced at RS14900+taxes for lower middle class segment

2) HCL Ezeebee/Busybee-priced atRS20000 +taxes for middle class and upper middle

classified

3) HCL Beanstalk-priced at RS30000 +taxes for upper class

The laptop starts from

1) HCL Mileap l series-priced at RS13990+taxes

2) HCL Leaptops & Mileap v series-priced at RS24990+taxes and above for middle class

3) Toshiba notebooks RS40000+taxes and above for upper class

Working in Frontline division my primary aim was to target individual employees, people

and to sell them desktop and laptop and to know their perception about HCL brand and its

products.

Sales promotion - Short-term incentives to encourage the purchase or sale of a product or

service.

Sales promotion helps to boost sales but it also helps a business to draw new customers

while at the same time retaining older ones



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To sell the product I had to device an effective sales promotion strategy and do personal

selling.

Selecting and taking permission from offices to do Employee purchase program (EPP)

which is a sales promotion activity was one of the most challenging task because

convincing the Directors and HR of organization that their employees will get the best deal

once HCL does EPP was really touch.

Next activity was to convince dealer the his investment in sales promotion will be fruitful

and he will get the desired result . Designing the schemes with dealers arranging canopy &

products for the event .

I have used these 6 schemes in consumer sales promotions:

Rebates

Promotional Pricing (offer price)

Sampling and Free Trials

Free Product (free Pen drive, Ups & Speakers)

Premiums (0% scheme)

Contests (scratch cards)

While doing personal selling I had to contact the person on phone, take permission for

Mileap l & v series product demonstration and then give him a live demo.

Understanding the perception of customers about the company's product becomes very

important for any organization. If the company can understand what the customer perceives

about their product they can very well make a change and adapt to customer need .By doing

a survey about consumer perception we have come to know what the customer perceives

about HCL'S looks, technology, price and after sales service .During this project we have

come to know what the customer perceives about HCL computers

OBJECTIVE



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(1) To promote the sales of HCL products by sales promotion

(2) To study the consumer perception about HCL

SUB-OBJECTIVE

(1) To increase the awareness of HCL'S ULTRA PORTABLE series MILEAP by doing

personal selling

(2) Recommendations at product and finance level

COMPANY PROFILE



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HCL

HCL enterprise is one of the giants in global technology. It is a company with an annual

revenue in excess of $4 billion .This enterprise was formed 3 decade ago in 1976. This is

one of India's original IT garage start ups.

It has a myriad of offerings ranging from

1) Research and Development

2) Technology Services

3) Enterprise and Applications Consulting

4) Remote Infrastructure Management

5) BPO services

6) IT Hardware

7) Systems Integration

8) Distribution of Technology and Telecom products.

The HCL team comprises 55,000 professionals of diverse origins, operating across 18

countries and having presence in India. HCL has worldwide reach and partnerships with

several leading Fortune 1000 firms, including several IT ,technology & BPO majors

COMPANY (Vision & Mission)

VISION statement: Together we create an enterprise of tomorrow

MISSION stateme:To provide a world class information technology solutions to enable

our consumers serve their customer better

QUALITY policy:We deliver defect free products ,services & solutions to meet the

requirement of our external and internal customers , the first time and every time

Some facts about HCL INFOSYSTEM



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1976-Foundation of the company is laid

1983-HCL launches an aggressive advertisement campaign with the theme ' even a typist

can operate' to make the usage of computers popular in the Small & Medium business

segment

1991-HCL and Hewlett Packard form a joint venture

-HCL agree to distribute Kodak and Canon digital cameras in India

2008-HCL launches a new and sensational product in personal computing. HCL launches

next generation, ultra portable, Sub Rs. 13990/- laptop for the first time in India

HCL enterprise can further divided into companies

HCL TECHNOLOGIES

HCL INFOSYSTEMS

HCL BPO

HCL COMNET

HCL INFOSYSTEMS:

HCL INFOSYSTEMS is the pioneer and the leader in current computer industry. It has its

origin in 1976 .it has developed and implemented complete solution for various segment ,

across a range of technologies .

ABOUT HCL FRONTLINE DIVISION

The HCL Frontline Division of HCL Info systems Ltd. focuses on providing solutions and



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value-added services

1) Small and medium corporate (SME),

2) Small office/home office (SOHO) and the homebuyer.

Frontline Division evolves innovative channel strategies to widen its market reach, and

offers value added support services to users. The extensive distribution network established

by the Division covers more than 800 resellers and close to 300 retail outlets across 300

cities .Using its unmatched strength in distribution. Frontline has big plans to increase

penetration of notebooks in SOHO/SME segments. The organization plans to use its

already established retail network in big way for this. It has proved its distribution might in

the PC segment already where it has pioneered on several fronts, with retail being just one.

The Division's singular mission has been to continuously anticipate and explore

technologies that have emerged as strong trends and established market standards in the

computing world globally, and bringing these to the Indian user in as short a time as

possible.

It is an ISO 9001 certified company.

HCL Info systems is among the leading players in all the segments comprising the domestic

IT products, solutions and related services, which include desktop, laptops, Servers,

Imaging, Voice & video solutions, Networking Products, TV and FM Broadcasting

solutions, Communication solutions, System Integration, ICT education & training, Digital

lifestyle Solutions and Peripherals.

HCL INFOSYSTEMS has below mentioned division:



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SSO/DSO:- It is a division of HCL which is in bulk purchase of computers & deals in the

govt. segment (Infiniti).

FLD:- deals in SMBs and Private segments(SOHO)(Ezeebee and Busybee, Bean Stalk)

OA:- It is office automation division & works with both SSO & FLD

DMS:- a different division look for communication services(Nokia)

HCL INFOSYSTEMS has tie up and alliances with global giants. HCL's PC uses

microprocessors of INTEL and AMD .They use operating system of MICROSOFT and

LINUX . It has alliances with TOSIBA, KODAK, CANON, CISCO, SAMSUNG, BSNL,

SUN MICROSYSTEMS, SAP& ERICSSON

HCL INFOSYSTEMS on Quality

HCL INFOSYSTEMS believes in the Total Quality Management philosophy as a means for

continuous improvement, total employee participation in quality improvement and

customer satisfaction. HCL maintains a premium quality and offers that quality to customer

at very less price compared to other PC companies .Its concept of quality addresses people,

processes and products.

STRENGTH OF HCL can be summarized as

(1) 30 years of IT experience.

(2) Ability to understand Indian consumer, lifestyle and their way of thinking of customers

(3) Ability to understand customer's business and offer right technology.

(4) Long standing relationship with customers.

(5) Excellent support & service infrastructure with maximum service centers for any PC

company.



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(6) Best-vale-for-money offerings

(7) HCL has classified people into the following segments as per their living standards:

Lower Middle Class

Middle Class

Upper Middle Class

Higher Class

And has product for the above mentioned segment.

HCL INFOSYSTEM distribution channel

HCL has a channel sales, direct sales, and retail sales network pan India. Continuously

meeting the ever increasing customer expectations and applications, its focus on integrated

enterprise solutions has strengthened the HCL Info systems capabilities in supporting

installation types ranging from single to large, multi-location, multi-vendor & multi-

platform spread across India. HCL Info systems, today has a direct support force of over

3000+ members, is operational at 360+ locations across the country and is the largest such

human resource of its kind in the IT business in India. HCL Info systems has pan India

presence across metros and non-metros.

COMPANY

NATIONAL DISTRIBUTOR

REGIONAL DISRIBUTOR

DEALERS

PRODUCT Range of HCL INFOSYSTEMS:



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HCL INFOSYSTEMS PRODUCT PORTFOLIO

DESKTOPS & NOTEBOOKS

Business PCs

Home PCs

HCL Leaptops

Intel WORKSTATIONS

Infiniti Challenger Workstations

SUN Workstations

AMD WORKSTATIONS

Infiniti Xcel Line 2200NL

Infiniti Xcel Line 2200SY

SERVERS

Intel Servers

Infiniti Global Line Servers

IGL Entry Level Servers

IGL True Enterprise Servers

IGL Blades Servers

DISPLAY PRODUCTS

SUN Thin Clients

NETWORKING PRODUCTS

WinSmart Switch

SNMP Managed Switch

IGL Itanium Servers

Infiniti Solutions

AMD Opteron Servers

Infiniti Xcel Line 2200AT



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Infiniti Xcel Line 2200MI

Infiniti Xcel Line 2200AZ

Infiniti Xcel Line 4200TL

Other Servers

SUN Servers

HP Risc Servers & Workstations

THIN CLIENTS

Winbee Thin Clients

SUN Thin Clients

SECURITY PRODUCTS

HCL InfoWall

HCL InfoSecuAccess

HCL InfoVPNe

HCL InfoSecuMon

HCL InfoNetMon

HCL InfoSurveillance

HCL InfoSecuDesk - Biometric Logon

HCL InfoSecuDesk - SmartCard Logon

HCL InfoSmartCard

HCL InfoLoadBalancer

HCL InfoSMS

HCL InfoDashboard

HCL InfoAttendance

HCL InfoAttendance - BN model

HCL InfoAttendance - SN model

STORAGE SOLUTIONS

HCL Storage Solutions



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HCL Infiniti SAN ARRAY 2502FC

HCL IGL NAS Servers

IGL NAS 1400 BT

IGL NAS 2700 SP

IGL NAS 2700 BD

SUN Storage Solutions

EMC Storage Solutions

TOSHIBA NOTEBOOKS

SOLUTIONS

Infostructure Services

Networking Services

Security Services

Facilities Management Services

Domestic Hardware Services

COMPETITOR ANALYSIS

MODELS PITCHED TO CUSTOMERS DURING PROJECT:

Analysis report of two below mentioned desktop

COMPARISON OF HCL and COMPAQ PRESARIO

Comparing below are the top two selling model of desktop COMPAQ PRESARIO and

HCL DESKTOP at Lucknow. It is clearly seen that HCL has the advantage. The desktop of

HCL is 1.7 GHZ processor where as COMPAQ PRESARIO has 1.6 GHZ. The price of

COMPAQ PRESARIO is higher than HCL at the same configuration. There is no free gift

provided by COMPAQ PRESARIO where as HCL is providing free speaker, free ups and a

DVD of intelligence booster which is highly useful for the knowledge and development of

children

COMPAQ PRESARIO is providing a HDD of 250 GB which is higher than HCL 150 GB

HCL



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HCL Ezeebee desktop

Model HCL Ezeebee desktop AZ1024

CPU Intel DUAL CORE E2160 @ 1.8 GHz,

533 FSB

Operating System DOS Operating System

Chipset Intel 915GV

RAM 1 GB RAM

HDD 160 GB

Secondary Storage -

Keyboard Keyboard

Mouse Optical Scroll Mouse

Ethernet Onboard 10/100 mbps NIC

Ports 2 USB port

Optical Drive CD-RW + DVD RW

Speakers Surround Sound ready speaker's with

boofer

Modem Internal Fax Modem

Anti Virus One Year Anti Virus

Warranty One Year Warranty

Monitor 17(flat)/'/ Monitor

Encyclopedia Intelligence booster

Other NA

MARKET PRICE -RS 24,000/NET

OFFER PRICE- RS 21,990/NET

17(LCD TFT)/'/ Monitor

OFFER PRICE- RS 25,990/NETHP-COMPAQ

COMPAQ PRESARIO SG3430 1L



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Model COMPAQ PRESARIO SG3430 1L

CPU Intel DUAL CORE E2160 @ 1.6 GHz,

800 FSB


Chipset Intel 915GV

RAM 1 GB RAM

HDD 160 GB

Secondary Storage -

Keyboard Keyboard



Ports 2 USB port


Speakers Surround Sound ready speaker's with

boofer




Monitor 17(flat)/'/ Monitor

Encyclopedia -

Other NA

NO FREE GIFTS

NO SPEAKER AND UPS

PRICE- RS22270+TAXES

Analysis report of two below mentioned LAPTOP

COMPARISON OF HCL and COMPAQ PRESARIO

Comparing below are the top two selling model of laptop COMPAQ PRESARIO and HCL

DESKTOP at Lucknow. It is clearly seen that HCL has the advantage .HCL gives camera,



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blue tooth and wifi which the laptop of COMPAQ PRESARIO is not providing at the same

price The price of COMPAQ PRESARIO is higher than HCL at the same configuration.

There is no free gift provided by COMPAQ PRESARIO where as HCL is providing :

Laptops companion dvd Usb light Usb 4 port hub, Headset with mic, Optical Usb laptop

mouse ,Usb to Ps2 adapter

HCL LEAPTOP

Model HCL LEAPTOP BG007

CPU Intel CELERON @ 1.73 GHz, 533 FSB


Chipset Intel 915GV



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RAM 512 MB

HDD 80 GB

Secondary Storage -

Camera Yes

Wifi Yes


Ports 2 USB port

Optical Drive CD-RW + SUPER DVD drive

Speakers Surround Sound ready speaker's




Bluetooth Yes

Encyclopaedia -

Other NA

Free gifts : Leaptop companion dvd

Usb light

Usb 4 port hub

Headset with mic

Optical Usb laptop mouse

Usb to Ps2 adapter

Carry bag

PRICE- RS24990/NET

HP-COMPAQ

COMPAQ PRESARIO C771 TU

Model COMPAQ PRESARIO C771 TU

CPU Intel CELERON M 2.0 GHZ , 533 FSB


Chipset Intel 960 GL

RAM 512 GB RAM



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HDD 80 GB

Secondary Storage -

Keyboard Keyboard



Ports 2 USB port


Camera -




Blue tooth -

Encyclopedia -

Other NA

PRICE- RS25990/NET

NO FREE GIFTS

In 7inch tablet PC SEGMENT, only competitor of HCL MILEAP L SERIES is ASUS

EEPC. But HCL MILEAP L SERIES scores well with its hard disk as its capacity is 30GB

where as ASUS EEPC comes with HDD of 2/4/8 GB which is very less and cant even store

Windows OS. The price of ASUS EEPC is higher than HCL MILEAP L SERIESHCL

HCL MILEAP L SERIES

Model HCL MILEAP L SERIES

CPU Intel Celeron M ULV Processor 353 @ 900

MHz

Operating System Comes with Linux OS, UBUNTU

Chipset Intel 915GMSRAM 512 MB

HDD 30 GB

Weight 1.44 kg

Keyboard Inbuilt

Battery back up 4 hrs




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Ports 2 -USB port

Optical Drive --





Monitor 7'TFT'/ Monitor

Resolution 800*480

Others -

PRICE-RS 16630/NET

ASUS

ASUS EEPC

Model ASUS EEPC

CPU Intel celeron clocked at 571 MHz; 32kB

L1 cache

Operating System Linux os

Chipset Intel 915GV

RAM 512MB

HDD 2/4/8 GB

Secondary Storage No

Camera Yes



Ports NA

Optical Drive No






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Monitor 7TFT Monitor

Resolution 800*480

Others -

PRICE-RS17250+TAXES

There is no competitor of HCL MILEAP V SERIES in 7inch tablet PC SEGMENT .It is

one of its kind device, with several special features like touch screen and 180 degree

rotation

HCLHCL MILEAP V SERIES

Model HCL MILEAP V SERIES

CPU 800 Mhz Intel A110 Ultra Mobile processor,

512 KB L2 cache 400Mhz FSB

Operating System GENUINE WINDOWS Vista home premium

Bluetooth & wifi Yes

RAM 1 GB

HDD 80 GB

Weight 958 gms

Camera 1.3 Mega pixel webcam

Battery back up 2.2 hrs


Ports 2 -USB port

Optical Drive --Speakers Surround Sound ready speaker's

Touch screen Yes



Monitor 7'TFT'/ Monitor



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Resolution 800*480

OTHERS -

PRICE- RS 35500 NET

FINANCE:

We had tied up with BAJAJ AUTO FINANCE LIMITED (BAFL). The documents that

were required for the finance were

One copy of employee recent pay slip or salary slip

One photo copy of residential proof (electricity bill, phone bill)

One photo copy of photo id of employee (identity card, rashan card)

Two recent photo graph of employee

Minimum amount of RS 500 for booking

The finance schemes were a combination of

High down payment (DP) & low EMI

Low down payment (DP) & high EMI

The customer can take any of the finance schemes depending upon his need.

The finance schemes are

0% finance scheme (special sales promotion scheme)

6.5% (8-4) finance scheme for a year



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Under the 0% finance scheme the customer has to pay the processing fee was 3.75% of the

cost of product +RS 100 stamp duty

Chapter 2Review of Literature



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LITERATURE REVIEW

MARKETING STRATEGY

Marketing Strategy can be defined as a business approach to marketing its products or

services expresses in broad terms, which forms the basis for developing a marketing plan.

In other words, Marketing Strategy is nothing but a combination of decision bearing on

various aspects of marketing mix elements. There are basically seven Ps of marketing

which play a vital role in marketing of a product and they are Product, Price, Place,

Promotion, Packaging, Positioning and People. HCL concentrated on all aspects thats the

reason why HCL has a very good and efficient market not only in Lucknow but also in

other regions of India.

PRODUCT PLANNING

HCL take good and effective decision on the faith of their existing product along with their

future products. This is a continuous process, which is taken into consideration by HCLs

top management .HCL have an R&D Department, which focuses on to the continuous

innovation in order to make HCL the best in todays cutthroat competition

MANAGEMENT INFORMATION SYSTEM (MIS)



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HCL takes into consideration every bit of information and have a very strong MIS. In order

to have the best knowledge about the market they study the market and to be the best

among the competitors they study all the market players thoroughly likewise they collect

the information regarding product, price, promotional strategy, etc. of the competitor

MARKET SEGMENTATION

Market Segmentation means dividing the market into distinct group of buyers keeping in

mind demographics, psycho graphics and behavioral differences among the buyers. Who

might require different products or marketing mixes? A market segment consists of a group

of people who share similar set of wants. A segment is partly a fiction, in that not everyone

wants exactly the same thing. HCL has classified people into the following segments as per

their living standards:

Lower Middle Class

Middle Class

Upper Middle Class

Higher Class

PRICING POLICIES

India a country where the price of a product can define its faith in the market, hence we can

say that India is a very price sensitive market. Price refers to the value of products

attributes. Expressed in monetary terms price is the value, which a customer pays to adhere

or to avail a service or utility or a product .At HCL, pricing policy decisions are taken by

the top management after following the prices of the components and prices quoted by the

competitors. After this a parallel pricing policy is developed in which: Bundles are created

and products are marketed accordingly in every region. Profit margins are kept into

consideration, etc. HCL gives 6 to 8 percent margin to their Channel Partners or Demo

Centers, and company gets X% profit in return.



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HCLs main objective is service rather than profit. No doubt there is profit but pricing

policy is just to meet minimum margin to have a competitive edge over the assembled PCs

market. HCL offers discount pricing when it id ready to give a product of RS24000 in RS

22000 HCL follows psychological pricing when it sells its product at RS21990.

HCL believes in wealth maximization rather than profit maximization.

SALES PROMOTION

Sales promotion is any initiative undertaken by an organization to promote an increase in

sales, usage or trial of a product or service Sales Promotion, a key ingredient in marketing

campaigns, consists of diverse collection of incentive tools, mostly short term, designed to

stimulate quicker or greater purchase of particular product or services by consumers or the

trade. Sales promotion is one of the five aspects of promotional mix. (The other four parts

of the promotional mix are advertising, personal selling, direct marketing and

publicity/public relations.)

Sales Promotion includes:

_ Consumer Promotion

_ Trade Promotion

- Business Promotion.

HCL capitalizes on to every aspect of the sales promotion in order to sell the maximum

number of units. In this project the prime emphasis was on increasing the sales of company

by using canopies, road shows & organizing events at malls. We have taken permission

from government and private offices for product demonstration .

There are three types ofsales promotion strategies:Push,Pull, or a combination of the

two.



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A push strategy involves convincing channel partners to "push" the product through the

distribution channels to the ultimate consumer via promotions and personal selling efforts.

The company promotes the product through a distributor who in turn promotes it to dealer

then to the final consumer. Trade-promotion objectives are to persuade distributors or

dealers to carry a brand, give a brand shelf space, promote a brand in advertising, and/or

push a brand to final consumers. The tactics employed in push strategy are: allowances,

buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays,

and premiums.

A pull strategy attempts to get consumers to "pull" the product from the manufacturer

through the marketing channel to the customers. The company focuses its marketing

communications efforts on consumers in the hope that it stimulates interest and demand for

the product at the end-user level. This strategy is often employed if distributors are

reluctant to carry a product because it gets as many consumers as possible to go to retail

outlets and request the product, thus pulling it through the channel. Consumer-promotion

objectives are to entice consumers to try a new product, lure customers away from

competitors products, get consumers to "load up" on a mature product, hold & reward

loyal customers, and build consumer relationships. Typical tactics employed in pull strategy

are: samples, coupons, cash refunds and rebates, premiums, advertising specialties, loyalty

programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP)

displays.

HCL DEALERS often provide a good example of a combination strategy. If you pay

attention to HCL dealers' advertising, you will often hear them speak of cash-back offers

and schemes.



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PROMOTIONAL ACTIVITIES

Tools used for Promotional Activities

_ Employee Purchase Programme (EPP).

_ Road Shows.

_ Events in Schools, Colleges and Institutes.

_ Tele-Calling.

_ Personal Selling or Door-to-Door Selling.

_ Special Offers.

DESCRIPTION OF ACTIVITIES

Promotional activities always give some kind of a result, this was the basic learning, which

I got in this training and I must say that the promotional activities performed by HCL for

their channel partners has given a drastic boom to sales of Home PCs in Lucknow .

..

EMPLOYEE PURCHASE PROGRAMME (EPP)

Employee Purchase Programme (EPP) is basically the special scheme or offers designed for

the employees of an organization, in order to initiate the purchase of the Home PCs at a

discounted price by the employees of that organization. In this special offer which is given

to the employees of targeted corporate or organization for a limited time period so that they

feel themselves the importance and purchase a computer under the scheme. This is also

beneficial for the company to increase the sales. EPP is a very efficient promotional activity

to improve the sales graph for the company, but it should follow a systematic approach in

conducting an EPP. For e.g.



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_ Select a Corporate or Government Office for this programme.

_ Make a call to HR Manager or Administration in order to fix an appointment.

_ Meet the concerned person and give them offer of scheme and convince them, get

permission for EPP.

_ Get the information about the right location and right days for the EPP.

_ Organize the event in faithful manner for employee.

_ Try to get the maximum sales of product during this period and also satisfy them by

better services and delivery of product.

_ Collect database for future purpose.

ROAD SHOWS

Road show is also an effective promotional activity and most of companies are using it.

HCL is also using this promotional tool very aggressively in Lucknow; this tool is a great

help in getting the attention of the large segment of customers. The procedure of road show

is to setup a CANOPY at the road side in different markets or public places where the no.

of footfalls is high and where chance of getting noticed is high too. Hence, we may

conclude that a CANOPY should be set up at prime locations like in the market place, etc.

One or two employee of the company or trainees should be present in the CANOPY with

leaflets and other related material of the company. We distribute the leaflet in public and

also answer queries generated by the visitors. It is an easy and effective way to generate

queries for the follow-ups, which can help in converting the interested person(s) into

customer(s). Another type of road show is hiring a van or a bus and covering various

location and generating the query. Road show also can be done with Mega Events. It helps

in increasing the awareness about the special schemes and offers by the company to the

public.

Advantage of road shows

(1)They are an exhilarating and low cost yet very effective form to expose your brand to a

community or invited addressees



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(2)Large number of locations can be connected

(3)Awareness level is high

Disadvantage of road shows:

(1) Brand dilution

(2)Sometime customer dont take it seriously

EX recently held road show by HCL-BSNL

SPECIAL OFFERS

Channel partner of HCL give special discount offers to their customers on the behalf of the

company in order to sell or promote the product of the company. These special offers are

like the special offer in summers or in the Festive season. These special offers are helpful

for customers in decision making because when customer compare the price and benefit of

HCL Home PCs with other competitors then he can easily make out the difference and

choose HCL because he/ she is getting best deal with HCL due to that offer. Follow Up:

Database of interested customers can be collected through EPPs or Mega Events or Road

Shows and is very helpful in sales promotion and selling of a product. These interested

persons can be followed up by tele-calling. Calling should convince customer and if

possible convince the customer to visit the demo center of the company. Not all but some of

them may get converted into customers.

PERSONAL SELLING

Personal selling is also an effective method to maximize the sales and is a good way for

sales promotion. Under this activity an employee or a trainee of the company make visits to

cyber cafes, computer coaching centers, big showrooms & shops and malls, in order to

have some benefit for the company. New queries can be generated by this way, which may

also be converted into sales because this method gives the customer importance and the



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person can feel it. Queries that are generated by EPP, Mega Events, etc. can also be used to

make personal visits to convince the prospective customer and convert him/her to a

customer.

PHASES IN PERSONAL SELLING

(1) Prospecting - trying to find new customers

(2) Communicating - with existing and potential customers about the product range

(3) Selling - contact with the customer, answering questions and trying to close the sale

(4) Servicing - providing support and service to the customer in the period up to delivery

and also post-sale

(5) Information gathering - obtaining information about the market to feedback into the

marketing planning process

(6) Allocating - in times of product shortage, the sales force may have the power to decide

how available stocks are allocated

Advantage of personal selling

Personal selling is a face-to-face activity; customers therefore their is a relatively high

degree of personal interaction and attention

The sales message can be customized to meet the needs of the customer

The two-way nature of the sales process allows the sales team to respond directly and

promptly to customer questions and concerns

Personal selling is a good way of getting across large amounts of technical or other

complex product information

The face-to-face sales meeting gives the sales force chance to demonstrate the product



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Frequent meetings between sales force and customer provide an opportunity to build good

long-term relationships

Disadvantage of personal selling

(1) Personal selling is costly as the cost of employing a sales force is very high. Sales

people are expensive. In addition to the basic pay package, a business needs to provide

incentives to achieve sales (typically this is based on commission and/or bonus

arrangements) and the equipment to make sales calls (car, travel and subsistence costs,

mobile phone etc).

(2) A sales person can only interact with one customer at a time. This is not a cost-effective

way of reaching a large audience.



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CHAPTER 3

RESEARCH

METHODOLOGY



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RESEARCH METHODOLOGY

Research is common parlance refers to the search of knowledge .One can also define

research as a scientific and systematic search for pertinent knowledge or information on

specific topic.

According to Redman and Mary-research is systematized effort to gain new knowledge

Research Methodology is a way to systematically solve the research problem. When we

talk to research methodology we not only talk of research methods but also consider the

logic behind the methods we use in the context of our research results are capable of being

evaluated either by the researchers himself or by others.

The purpose of this section is to describe the methodology carried out to complete the

work. The methodology plays a dominant role in any research work. The effectiveness of

any research work depends upon the correctness and effectiveness of the research

methodology.

Problem Identification

The core products of HCL INFO SYSTEMS LTD. have been DESKTOPS, NOTEBOOKS,

and TOSHIBA NOTEBOOKS. Thin clients being an institutional product can be success if

it promoted in schools and institution MBA and Engineering colleges, corporate house, and

end user. To carry out the promotion requires preparing a database of corporate houses, and

specific location in different part of Kanpur and find out contact name and phone number

of concerned person



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Research Design

To accomplish the predefined objectives of the research, Descriptive Research Design is

used to collect the require information from the sources. Descriptive research design is

helpful in collecting in depth information, the demographic characteristics of the customers

as well as to get their feedback.

In this project research is conducted in approximately 6 Government,1 Private company,1

mega event with Intel at waves and 1 HCL-BSNL road show . I individually approached

to probable customers and collected data through personal interaction and survey through

questionnaire .I tried to find out the perception of people (employees) about HCL & sales

promotion schemes of HCL.

During this project I also tried to

Building product awareness

Creating interest about the product

Providing information about the product

Stimulating demand

Respondents

Since the research objectives demand the feedback from the customers, the respondents are

the employees of selected organization whose spending power is good. Respondents are

employees of organization where EPP activity has taken place. They are the people to

whom I have pitched the product and the user of computers.

Sampling method

It is not possible to get the information from each and every customer a under the limited

time and limited resources. Therefore a relevant and sizable sample is drawn from the total

number of customers.Area sampling method is used along with judgment sampling via

Market Search and the data were collected.



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Sample Size: - Around 250 (Customers)

Data source

Two types of data sources are used in this project work:

Primary Data

Observation

Survey Research (Questionnaires)

OBSERVATION RESEARCH

In observational method , information is sought by way of investigations own direct

observation without asking from the respondents .Fresh data can be gathered by, observing

the relevant actors and settings.

SURVEY RESEARCH

Surveys are best suited for descriptive research. Companies undertake surveys to learn

about people's knowledge, beliefs, preferences, and satisfaction, and to measure these

magnitude in the general population.

Secondary Data

Sources: reports, websites, Newspapers & Journals

Company website: hclinfosystems.com, hclstores.com

Research Instrument

Marketing Researchers have a choice of main research instruments in collecting primary



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data is questionnaires

DATA COLLECTION

Places where EPP was conducted

(AN EVENT OF INTEL & HCL)WAVES MALL LUCKNOW

People who visited the show No of people

Male 44

Female 40



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(2)

GEOLOGICAL SURVEY OF INDIA(GSI),LUCKNOW

Number of Employee in Organization: 250.

Employees Status: List is given below:-

CLASS DESCRIPTION NO. OF EMPLOYEES

Class One Officers(Male) 21

Class Two Officers ( female) 17

Class Two Officers (Male) 25

Class Two Officers(Female) 06

Class Three 12

Class Four 15

TOTAL WHO VISITED 96

(3)

PUBLIC WORKS DEPARTMENT (PWD), LUCKNOW

Number of Employee in Organization: 300




Class One Officers ( Female) 15


Class Two Officers (Female) 12

Class Three 17

Class Four 12


(4)



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PARYATAN BHAVAN, LUCKNOW








Class Three 04

Class Four 16


(5)

KHANIJ BHAVAN, LUCKNOW








Class Three 20

Class Four 22


(6)



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CENTRAL INSTITUTE OF MEDICANAL AND AROMATIC PLANT

(CIMAP), LUCKNOW








Class Three 10

Class Four 22TOTAL WHO VISITED 113

(7)

RAJKIYA NIRMAN NIGAM, LUCKNOW








Class Three 09

Class Four 12

(8)



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RELIANCE COMMUNICATIONS, LUCKNOW








Class Three 13

Class Four 14TOTAL WHO VISITED 91

(9) A road show was conducted by combined effort of HCL & BSNL and an enquiry of 120

was generated.

The above-mentioned activities resulted in

ENQURIES: 900

HOT ENQUIRES: 120

Out of the above mentioned enquiries of 900, a sample of 250 computer users were drawn

and survey conducted



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CHAPTER 4

ANALYSIS

&

INTERPRETATION

Analysis and interpretation of question 1

(1) Do you have a



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Number of PCs versus Type of PCs

Desktop-160

Laptop-57

Notebook-31

Tablet Pc-1

Out of 250 sample size we can see that very high number 160 of people are desktop users

and number of people using Tablet Pc is very less . So their lies a great opportunity for ultra

portable series of computer like Mileap V & Mileap L series

(2) Consumers knowledge about computers



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No of respondents versus their knowledge about computers

Very bad-28

Bad-22

Ok-99

Good-70

Excellent-31

Out of 250 sample size taken bulk of the consumers seems technology savvy and has a

good knowledge about computers.

(3)Brand of computer used by consumers



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No of respondents versus brands used by them

Hp-78

Hcl-50

Lenovo-22

Sahara-31

Acer -18

Assembled-51

HCL faces a very tough competition from HP computers and assembled PC as bulk of the

people either had HP or Assembled computers

(4) Consumers who know about HCL



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No of respondents versus customers who are familiar with HCL

Yes-200

No-50

A high percentage of people still are unaware about HCL .On personal interaction with 250

sample size, very few people could tell more about HCL. Very few people could recall the

advertisement of HCL. The awareness level of the brand is really less among people

(5) (a) Perception of people about the technology used in HCL PRODUCT



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No of respondents versus their perception about the technology used in HCL PRODUCT

Very bad-20

Bad-55

Ok-59

Good-91

Excellent-25

A very high number of customers are satisfied with the technology that is provided in HCL

product. HCL is perceived as a technology brand .

(5) (b) Perception of people about the looks and design used in HCL PRODUCT



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No of respondents versus their perception about the technology used in HCL looks &

design

Very bad-30

Bad-105

Ok-85

Good-14

Excellent-16

A very high number of customers are not satisfied with the looks and design, which is

provided in HCL product. HCL is not perceived as product that has excellent design and

looks. Through the personal interaction I came to know that customers feel that the design

and finishing of HCL products are inferior to other reputed brand like HCL

(5) (C) Perception of people about the after sales service used in HCL PRODUCT



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No of respondents versus their perception about the after sales service used in HCL

PRODUCT

Very bad-37

Bad-39

Ok-25

Good-10

Excellent-54

A high number of customers are satisfied with after sales service of HCL.

(6) Perception of customers about HCLS product pricing

(A) far too high



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(B) Ok it represents good value for money

(C) To low , you need to change lot more

No of respondents versus their perception about HCLs product pricing

A-74

B-124

C-52

Bulk of the respondents feels that HCL PRODUCTS are value for money product. They

feel that investment in HCL products is a long term investment and they are satisfied with

product pricing

(7) Recommending HCLS product to others



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Yes -140

No -110

A high percentage of customers are satisfied with the HCL. They have a very good image

about HCL and are ready to recommend the product to others. They feel that HCL provides

a technology, value for money product.

If yes

(A) Prices are lower than other alternatives

(B) Feels it represents high quality



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(C) Availability of good local service

(D) Picture quality is good

(E) Provides good schemes and discounts

Then out of 140 respondents

No of respondents versus their perception about HCL

A-20

B-26

C-46

D-25

E-23

If no ..

(A) Did not know much about the company

(B) Other company have better looking products



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(C) Prices are higher than other computers

No of respondents versus their perception about HCL

A-28

B-55

C-27

(8) What is that you would like to change

Views of people on HCL PRODUCTS

(a)HCL desktops



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1) Better schemes

2) Good design and looks

3) Screen clarity

(b)HCL laptops

1) Better design and finishing

2) Should have good screen resolution

3) Better battery backup

(c)HCL tablets pc

1) Better processor

2) Should have good product finishing (curves and edges)

3) Price is very high

4) Speakers should be more effective

5) Should have bigger screen size

(d) HCL notebooks

1) Screen size

2) Better processor

3) Should have optical drive

(9) I love/hate HCL because

Love:



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1) Indian MNC

2) Provides value for money product

3) Excellent service

Hate:

1) Obsolete designing

2) Poor sound quality



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CHAPTER 5

LIMITATIONS

LIMITATIONS

In every research work there are some boundaries. Boundaries define the area or

the framework under which a particular work has to be executed. Though I have tried my

level best to make the study and the report writing qualitative and excellent, the following



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limitation overcome in the study HCL has a huge market national and international level,

which has sold lots of products, but this study is limited Lucknow .

.

The time period allotted for the study i.e. 2 months is a short period for completing these

types of activities, as many of the prospects could not become customers, thus affecting the

sales. The accuracy of the project and conclusion is totally dependent on the accuracy of the

data collected and analyzed .The result may not same for all reason. Customers are too busy

to contact and too much time consumed on each call. It is possible that some potential

source may leave untapped, specially schools.

Due to adverse climatic sometimes the presence of customer at canopy's and road shows

were less which affected the sales to some extent.



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CHAPTER 6

MAJOR FINDINGS

MAJOR FINDINGS

Any research, which is conducted in the market place, flashes back hidden truths and basic

facts, which affects the business of a company directly or indirectly. These hidden truths are

basic facts, which are out coming of the research, are known as a finding. The information

gathered from the market, which are accountable in the achievement of the objective and

for the company, which makes the project more interesting, are basically known findings.

The result of assigned project in management studies is known as findings.



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The findings of this project are as follows:

1) HCL is a second most preferred brand, closely following the market leader HP in

Lucknow.

2) Most of people know that HCL as a technology product.

3) Most of people perceive that HCL is value for money product.

4) HCL should focus more on the design and finishing of their product as some f the

customers have called HCL a crude machine .The finishing of HP and Sony can be a source

of inspiration.

5) Cost, quality, technology and sales service are four major factors that are taken into

consideration while purchasing any IT product.

6) HCL holds number one position in after sales services is are the major reason for it, to be

in top.

CHAPTER 7



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RECOMMENDATION

RECOMMENDATION

1) The company should increase their advertisement expenditure.

HCL is also not advertising much for its products frequently in print media and in television

channel etc. Advertising should be made frequent to let the people remembered the name of

HCL

2) The company should finance their own products as many customers are lost due to rigid

finance schemes.

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