CORPORATE SELLING & FEEDBACK FOR HCL

Table of contents
CHAPTER NO. Chapter 1 CHAPTER NAME PAGE NO. 1. 6. 7. 8.

Introduction 1.1 Objectives 1.2 Research Methodology 1.3 Limitations

Chapter 2

Companys profile 2.1 Executive summary 2.2 Industry profile 2.3 Company profile 2.4 Management hierarchy

10. 11. 12. 13. 18.

Chapter 3 Chapter 4

Analysis and Interpretation Conclusions and Recommendation Bibliography ANNEXURE

19. 39.

43. 45.

INTRODUCTION

OBJECTIVES OF THE STUDY

Management Objective
To fuel initiative and foster activity by allowing individuals freedom of action and innovation in attaining defined objectives.

People Objective
To help HCL Insys people share in the companys success, which they make possible; to provide job security based on their performance; to recognize their individual achievements and to help them gain of satisfaction and accomplishment from their work.

Core Values
It is uphold the dignity of individual It is honour all commitments It is committed to quality, Innovation and growth in every endeavor It is responsible Corporate Citizens .

RESEARCH METHODOLOGY

. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.

SOURCE OF DATA
Determined the Information Sources: The researcher gathered data through secondary sources. PRIMARY DATA is collected through questionnaire, search and research through place where today's computer has been mostly used. SECONDARY DATA is being search sites like magazines, newspapers, journals, websites and the data has been collected through other approaches.

METHOD OF DATA COLLECTION

The researcher collected information through the official websites, magazines and questionnaire

SAMPLING METHOD
AREA SELECTION: B 34, SECTOR 59 NOIDA

METHOD: CONVENIENCE SAMPLING METHOD EMPLOYEE SELECTION: RANDOM SIZE: 55

TOOLS USED FOR ANALYSIS

1. Exploded Pie Chart 2. Stacked Column 3. Bar Charts 4. Column 5. Pie Charts

LIMITATIONS
Every project has some limitations even the researcher came across some limitations while working on the project which made the analysis a little inappropriate at times. Some of the basic limitations faced during the research are listed below:

Only limited number of authorized, companies and other areas where it has been found 55 players was covered in the study.

Most of the research was based on cold calls, so then visited many places i.e. authorized and local areas and where it had not responded much.

 There was a bias on the part of the respondents.

Companies that were contacted through telephone at times did not give correct information to the researcher.

The IT manager or the person heading the IT Department did not have the rights to give the authorized official information to people other then the members of the official itself and the high officials.

At times there was a problem of non response from the hospitals, companies and other authorized and unauthorized areas which affected the result of the project being done by the researcher.

Executive Summary
HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, the company have developed and implemented solutions for multiple market segments, across a range of technologies in India. With sound macro economic condition and buoyant buying sentiment in the market, the desktop PC market grossed 23.4lc units, registering a growth of 36% over the same period last year. The notebook PC segment was the star performer, showing massive growth, 60% sequentially and 138% year-on-year and crossing the one lakh barrier. This can be attributed to strong domestic growth in requirements and aggressive sales promotion offers by the players like HP, Lenovo, and HCL among others. Again brand recognition and image play a very important role in purchase decisions. Brand managers of IT products, to increase the short-term gains and keep the cash registers ticking have started using aggressive sales promotion offers. The objective of the project was to find out whether people actually buy because of the sales offers incentives and whether they actually feel that sales promotions are an effective brand-building tool also. Also some of the insights on how to best place an effective Sales promotion program have been unleashed. The research brings out the fact that people do buy because of the sales promotion offers, but the impact promotional offers have on the Brand Image of the company offering such promotions is negligible. Thus sales promotion offers are a

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definite incentive to buy for a customer but they do not guarantee a long-term relationship with the customer and hence a Brand Manager must use such offers with a pinch of salt.

INDUSTRY PROFILE:
The PC industry has been a leading driver of economic growth in the past three decades. The explosion in the use of computers in businesses has been driven by the need to modernize work processes and boost productivity, while the Internet, entertainment and other digital applications were among the primary drivers of PC adoption in the consumer market. In India, the home PC market segment is supplied by three distinct kinds of manufacturers. One; you have global companies like HP and Compaq along with many players. Two; there are the Indian brands like Wipro and HCL. And three; is the sea of kitchen tabletop PC assemblers who sell their unbranded machines at super-low prices. This last category of unbranded machines is often referred to as the 'gray market' and it has the majority share of the home PC market. It is followed by Indian brands and lastly by the multinational brands. The Indian personal computer industry witnessed a year-on-year growth of 32 per cent to 12-lakh units in the July-September quarter of 2005, an 11-per cent increase over the previous quarter AMJ (17th November 05).

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In the consumer desktop category HCL led over HP, with LG following the market leaders at the third slot. In the overall client PC (notebooks and desktops) market, HP retained its top slot with a sequential increase of 19% and a year-on-year 45% growth. HCL continued to stay at second position, with a 40% year-on-year growth, while Lenovo occupied the third position.

COMPANY PROFILE
HCL's history goes to 1975 when six entrepreneurs-Shiv Nadar and five of his associates-decided to create a computer systems and services business in India. They faced many initial challenges and despite the lack of venture capital available in India at that time, they opened their first office in the suburbs of New Delhi, naming their business Hindustan Computers Ltd in 1976. After eight years, HCL became the largest computer systems and services company in India. HCL under its Umbrella has four strategic Business units HCL technologies, Info systems, Comnet and HCL Infinity. An HCL Infosystem is mainly into systems marketing. Financial Overview The company has reported consolidated revenue of Rs 2284.5 crores (USD 523.7 Mn) during the quarter ended September 30, 2005 as against Rs 1579.5 crores (USD 362.1 Mn) in the corresponding quarter of the previous year, a growth of 45%.

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HCL Infosystems HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, the company have developed and implemented solutions for multiple market segments, across a range of technologies in India. The company has been in the forefront in introducing new technologies and solutions for wide range of markets. HCL is the pioneer of low cost systems. The advantage of supplying customized products makes company scale new heights. HCL Infosystems (HCLI) draws it's strength from 29 years of experience in handling the ever changing IT scenario, strong customer relationships, ability to provide the cutting edge technology at best-value-for-money and on top of it, an excellent service & support infrastructure. Today HCL is country's premier information enabling company. It offers one-stop-shop convenience to its diverse customers having an equally diverse set of requirements. Be it a large multi-location enterprise, or a small/medium enterprise, or a small office or a home, HCLI has a product range, sales & support capability to serve.

Last 29 years apart from knowledge & experience have also given HCLI continuity in relationship with the customers, thereby increasing the customer confidence. Companies strengths can be summarized as: Ability to understand customer's business and offer right technology Long-standing relationship with customers Pan India support & service infrastructure Best-vale-for-money offerings

Alliances & Partnerships:

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To provide world-class solutions and services to all our customers, we have formed Alliances and Partnerships with leading IT companies worldwide. HCL Infosystems has alliances with global technology leaders like Intel, AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems, SAP, Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo, Samsung, Novell. These alliances on one hand give them access to best technology & products as well enhancing their understanding of the latest in technology. On the other hand they enhance companys product portfolio, and enable HCLI to be one stop shop for its customers.

Current Market Trends

With sound macro economic condition and buoyant buying sentiment in the market, PC sales in India are expected to touch 47 lakh units in Fiscal 2005-2006, according to MAITs Industry performance review for the first half of the FY 2005-06. The desktop PC market grossed 23.4lc units, registering a growth of 36% over the same period last year. The MAIT-IMRB review reveals that PC sales to the business segment improved by 55% accounting for 78% of the total PC consumption. In the households, while the sales were 5.10 lac units, the sector witnessed a decrease of 5% over the same period last year. Assembled PCs witnessed decline in market share, accounting for 34% of the PC

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sales in H1/2005-06. The share of the Indian brands grew to account for 31% of the market while the MNC brands accounted for the rest at 35%. The notebook PC segment was the star performer, showing massive growth, 60% sequentially and 138% year-on-year and crossing the one lakh barrier. Centrino-based notebooks constituted two-thirds of the total shipments. In terms of market rankings, HP stayed at the top, followed by Lenovo and Acer (IDC report). In H1/2005-06, about 16,000 notebooks were sold to the households segment accounting for 13% of the total market (MAIT report). The server market registered a growth of 56% over the first half of the fiscal riding on high consumption in the medium establishments where sales increased by 258%. Overall Printer sales grew by 43% over that in H1 2004-05 on YoY basis. The UPS market grew by 16% over H1 of 2004-05. The growth in the industry can be summarized in the following table:

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The market was fueled by a strong demand from the notebook and consumer desktop markets. Consistent fall in notebook prices led to a growth in this market. In this situation Brand Image/brand perception plays a major role in purchase of the products. There were massive investments in the private educational sector that provided the momentum for growth in this market. Notable among these were various management institutes and technical institutions.

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MANAGERIAL HIERARCHY

LEADERSHIP

Shiv Nadar Founder HCL, Chairman and CEO HCL Technologies

Ajai Chowdhry J V Ramamurthy Co-Founder HCL, Chairman and Chief Operating Officer CEO HCL Infosystems Ltd HCL Infosystems

Vineet Nayar President: HCL Technologies

Ranjit President and CEO of the HCL Technologies (BPO)

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DATA ANALYSIS & GRAPHICAL DATA INTERPRETATIOIN

Age wise profile of the respondents

40-60 Years 20.0% 18-25 Years 33.3%

25-40 Years 46.7%

From the pie chart it is clear that people of age group 25-40yrs are the maximum respondents as compared with other age groups.

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Gender wise profile of the customers

Female 33.3%

Male 66.7%

From the pie chart it is clear that maximum customers are male as compared with females as only 33.3% are females and rest 66.7% are male users.

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Total market share of different PC/Laptop brands

Others/Assembled 9.1%

HP 45.5% HCL 36.4%

IBM/Lenovo 9.1%

From the pie chart it is very clear that majority (45.5 %) of the total respondents own a computer from Hewlett Packard, followed closely by HCL Infosystems (36.4 percent). Thus, HP was found to be a leader in consolidated market share of PC and Laptops

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Satisfaction level of the customers of different brands:

100 90 80

20

100

75

100

80

Count

70 60 50 40 30 20 10 0 HP IBM/Lenovo HCL Others/Assembled 25 No Yes

Satisfied

Satisfaction level of Customers

From the above bar diagram it is clear that in case of IBM/LENOVO maximum people are satisfied as compared with other brands. It has maximum satisfaction level with 100% and then HP with 80%.

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Major reason of dissatisfaction

The major reason for dissatisfaction is as shown in the graph above. The major reason for dissatisfaction is poor service (60 percent) and poor performance (40 percent).

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70

60

60

50

40

Percent

40

30

20

10 0 Poor Service Poor performance

Reason for Dissatisfaction

Company offering best sales promotion offer

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100 90 80 70 60 50 40 30 20 10 0

36

25

25 18 50 HCL Acer IBM/Lenovo Zenith HP User Non User

9 36

User/Non User

From the bar chart it can be ascertained that majority of the users believe that HCL gives best offers (36 percent) whereas majority of non-users believe that IBM offers best sales offers. This can be attributed to the aggressive sales promotion strategies adopted by HCL in the PC segment and in laptop and server segment by IBM.

. The most successful offer

25

60 55 50 45 40

Percent

30

20

10

0 Price Discounts Freebies

Offers availed

From the bar chart we can ascertain that majority (55 percent) of those who bought a computer/laptop when there was a sales promotion offer did so by getting attracted to Price Discounts. Freebies or free gift offers were also quite successful in raking in customers to buy. Thus it can be said that price discounts are a hot favourite amongst buyers of IT products and services as an incentive to buy.

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SAMPLE SIZE = 55
1. What type of computers do you use? a.)Branded b.)Assembled

Branded Assembled

37 18

Using branded computers

hospitals using branded Using assembled computers computers hospitals using assembled computers

It was observed that almost 67% of the people use branded computers or other gadgets for their business purpose. Hence can be concluded that more people want branded products as they are not ready to compromise with the quality and services being provided.

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2.

What brand computers do you use? a.) HP b.) HCL c.) ACER d.)Others

Brand used HP HCL Acer Others

Total Nos. 7 14 13 21

HP HCL acer others

This observation showed that HCL is among the top used brands. Major part under the pie-chart goes to HCL. So HCL should continue making efforts to attract new market and sustain the existing market.

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3. What is the brand used for laptops? a.) HCL b.) Toshiba c.) Lennovo d.) Others Laptops brand HCL Toshiba Lennovo Others Total Nos. 11 19 13 12

HCL Toshiba lennovo others

Observation showed that Toshiba was the major brand used in laptops. Various other brands like HP and Samsung etc. are also used. HCL has also a good market share.

4. Are you planning to make any new purchase? a.) Yes b.) No

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c.) Not yet planned

Planning about new purchase Planning to purchase No planning Not yet planned

Total Nos. 9 17 29

planning to purchase no planning not yet planned

That the above graph show that the most of the users have not planned about making a purchase and a very few are planning to make a buy.

5. How do you find the HCL products? a.) OK b.) Good c.) Satisfactory d.) Outstanding e.) Not tried yet
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Reaction about HCL products OK Good Satisfactory Outstanding Not tried yet

Total Nos. 3 12 19 7 10

OK good satisfactory outstanding not tried yet

According to above graph shows that the maximum of HCL user are satisfied with the products. Very few have not tried yet HCL on a business scale, but most of them have an experience about HCL.

6. Do you want to know more about HCL products? a.)Yes b.)No

Wanted knowledge about HCL Yes No

Total Nos. 42 13

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want info about HCL no info wanted

That the above graph shows that the observation and the most of the people are interested in knowing more about the brand and have the urge to buy.

7. Do you require demo for any product?

a.)Yes b.)No

Interested in demo Not interested in demo

Total Nos. 24 31

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interested demo hospitalsin interested in

demo

interested demo hospitalsin not interested

in demo

This observation showed that almost 45% of the sample was interested in demo.

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MAJOR PLAYERS IN THE MARKET

HCL DELL IBM SAHARA APPLE H P - CO M P A Q ZENITH ACER INTEX SONY OTHERS

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MARKET SHARES OF VARIOUS PLAYERS IN INDIAN PC MARKET

HCL Compaq

8.4% 7.9% 57.5% 7.0% 4.2% 3.7% 1.0% 1.6% 3.5% 3.3%

Zenith IBM Acer Hewlett-Packard Wipro Vintron Siemens Nixdorf Dell Others*

1.9%

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From the above graph it is clear that in Indian Hardware Industry the HCL Infosystems Ltd. share is highest in all branded companies. But still very high portion about 57.5% is in favour of unbranded local companies, which is still a challenge towards all.

The share of the unorganised sector has been falling steadily with the fall in price of branded PCs. A recent phenomenon has been the increasing share of Tier 2 towns and cities in the PC sales thereby indicating increased PC penetration into the hinterland. Sales of notebooks have averaged around 50,000 in the past two years. Printers have been traditionally the fastest growing segment of the PC peripherals market. Even when PC sales were increasing by 39%, printer sales increased by 41%. The slowdown affected printer sales too and in 2001-02, the increase was just 1%. In that year, 836,122 printers were sold and that included inkjet, laser and dot matrix. The momentum is expected to pick up in 2002-03 and the printer market would grow at 8% to reach 900,000 printers. Due to falling prices, Laser printer sales are growing fastest. In future, HCLs hardware sales to the institutional segment are likely to remain stable, with sustained hardware spending by all the verticals, especially the banking and financial services sector. Besides, in retail hardware sales, a continued reduction of price points, facilitated in part by the recent reduction in excise duties on PCs, is likely to reduce the price advantage of the small assemblers, and augur well for branded PC manufacturers like HCL. In the medium term, HCLs margins, despite its sales tax

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advantages, may be affected by the likely removal of duty protection on manufactured PCs from the year 2005. With imported PCs becoming cheaper, it may be critical for HCL to establish an alternate supply chain based on imports of finished PCs. Nonetheless, its financial risks are mitigated by its low gearing, substantial liquid investments and unutilised working capital limits.

IDC declared its numbers for the Indian PC market for financial year 2005-06 today. The year recorded an impressive growth in terms of unit shipments - the market grew 30% over financial year 2004-05 to exceed the 4.6 million-mark, according to IDC's India Quarterly PC Market Tracker, 1Q 2006, May 2006 preliminary release.

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CONCLUSION

Marketing is a very crucial activity in every business organization. Every product produced within an industry has to be marketed other wise it will remain as unsold stock, which will be of no value. I have realized this fact after completion of my project. Despite of various difficulties and limitations faced during my project on the topic Corporate Selling and Feedback . I have tried my level best to find out the most relevant information for the organization to complete the assignment that was given to me. After completion of my project I have gained several experiences in the field or sales marketing. I have got the opportunity to meet various people, which fluctuate in different situation and time. Theoretical knowledge of a person remains dormant until it is used and tested in the practical life. I have completed my project in which the teachers are involved in its successful completion. In spite of few limitations and hindrance in the project I found that the work was a challenge and fruitful. It gives enough knowledge about the computers market and the distribution process undertaken by an organization.

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From these findings it can be ascertained that Sales promotion offers provide a definite incentive to buy, but their impact on the Brand Image of an IT product is still debatable. These findings give an indication that Promotional Offers can be used for increasing the short-term gain but their application in building brand image over a long term is limited. Promotional tools that are most successful are hence those which incentivise the customer immediately like price discounts. Again from the minor findings we can ascertain that Print Media the best media for communicating promotional offers, as this is the medium in which people seek information while they are in the Information Search mode of the consumer buying process. For the companies who seek to increase customer satisfaction can do so by improving their After Sales Service or else there might be some amount of dissonance in the mind of the customer.

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SUGGESTION AND RECOMMENDATION

HCL is having large number of channel partners but it is not supporting & taking care all of them equally which results in increasing discontentment among new channel partners because its not possible for company to support all of them equally. Company should take some positive action against it.

Company executive should visit dealers on regular basis.

They should pay proper attention towards checking of various components of PC before end user delivery. Otherwise it tends towards defame of brand name in comparison to rivals.

Need to expend customer care center as the consumer base of HCL Infosystem is increasing with tremendously fast pace.

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Proper attention should be paid for advertisement planning otherwise it may lead to problem for dealer as well as for company.

Company should tie up with some event management company to organize various promotional activities like canopy, Carnival.

Company should make policy for fixed end user price for all dealers so that fair game will be played & dealer would not to compromise on their margin.

BIBLIOGRAPHY

BOOK AUTHOR: TITLE: PLACE OF PUBLICATION: PUBLISHER: KOTLER PHILIP MARKETING MANAGEMENT DELHI TATA MC GRAW HILLS PUBLISHING CO. LTD

MAGAZINES / JOURNALS / NEWSPAPERS

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 Business World Business Today The Economic Times The Hindustan Times The Mint

WEBSITES: www.hcl.in www.indiainfoline.com www.google.co.in www.hclinfosystem.in www.epaper.livemint.com www.economictimes.indiatimes.com

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QUESTIONNAIRE
Name Designation Address Contact No. ____________________________________ ____________________________________ ____________________________________ ____________________________________

1) Do you own a computer/notebook? Yes [ ] No [ ]

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If No then go to: Qn No 9

2) Which brand of computer/notebook do you own? HP [ ] Acer [ ] Zenith [ ] HCL [ ] IBM/Lenovo [ ]

Others [ ]

3) Was there any offer which prompted you to buy a computer? Yes [ ] No [ ]

4) How did you know about the type of computer you are using right now? Newspaper [ ] Television [ ] Friends and Family [ ] Magazine [ ] Radio [ ] Others [ ]

5) What was the offer that you got when you bought your computer? Price discounts [ ] Freebies [ ] Extended Warranty [ ] Others [ ]

7) Are you satisfied with the computer you are using right now?

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Yes [ ]

No [ ]

8) if not satisfied what is the cause of your dissatisfaction? Poor service [ ] High maintenance costs [ ] Poor performance [ ] Unwanted features [ ] Other reasons [ ]

9) Are you planning to buy one? Yes [ ] No [ ]

10) What according to you is most important attribute for a computer?

10.1 Low entry price Not Important [ ] Less important [ ] Important [ ] Very Important [ ]

10.2 Good and timely service Not Important [ ] Less important [ ] Important [ ] Very Important [ ]

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10.3 Configuration Not Important [ ] Less important [ ] Important [ ] Very Important [ ]

10.4 Ease of operation Not Important [ ] Less important [ ] Important [ ] Very Important [ ]

10.5 Sales offers and discounts Not Important [ ] Less important [ ] Important [ ] Very Important [ ]

11) What sort of sales offers would you generally go for?

11.1 Price Discounts Always [ ] Sometimes [ ] Never [ ] Cant Say [ ]

11.2 Freebies Always [ ] Sometimes [ ] Never [ ] Cant Say [ ]

12) Which company do you think has the best sales offers? HCL [ ] Acer [ ] HP [ ] Zenith [ ] IBM/Lenovo [ ] Others [ ]

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13) Personal Details

13.1 Age 18-25 [ ] 40-60 [ ] 25-40 [ ] 60 and above [ ]

13.2 Gender Male [ ] Female [ ]

13.4 Occupation Government Job [ ] Own Business [ ] Working in private sector [ ] Retired [ ] Student [ ]

Thanks for filling up the questionnaire and for your valuable time.

Have a great day!!!!

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