Professional Documents
Culture Documents
Group 5
Chythra T C (14PGP014)
Swati Khobragade
(14PGP023)
Pranav kumar (14PGP031)
Surya kant (14PGP048)
Devanshu Kulthe (14PGP078)
Shishir (14PGP098)
Leena Bodo (14PGP106)
Ronit jena (14PGP111)
Case overview
HP wish to identify market and organizational opportunities that might
provide growth while further reducing sales and support costs
HPWay
Hewlett-Packard founded in 1939 by Bill Hewlett & Dave
Packard
Market leader price/performance
HP is engineering driven, competing on the basis of
technological features
Was not good in marketing
3 larger business sectors: measurement systems,
computer products, computer systems
Dont have organization wide culture.
Product division focused on long-term profit objectives
& in the field it focused on meeting short-term sales
quotas
Problems
Buying pattern shifted to VARs & OEMs caused
increase in cost of sales
Wasting so much time on sales force treadmill
(exhibit 2)
Have to optimise the return on sales efforts
Selling cost of 30 cents to every order dollar
should be reduced to 10 cents to every order
dollar (cost reduction from 30% to 10% of sales)
Change the current industry-focused approach
to selling to enterprise customers
CSO Customers
Computer systems organization(CSO)
Large/Enterprise
Small-Medium size
Individual
Top 5% of
customers
accounted more
than 40% sales
$0.5-200 million
order
Direct sale by HP
sales reps
65% of
productive time
of CSOs sales
force
$0.25 million
order
monthly/quarterl
y basis
Combination of
sales reps and
channel partners
Served
exclusively by
indirect retail
channels
Samples
Largest customer
Industry where HP is strong
Objectives
Find how HP sales actions aligned with buyer
requirements
Suggest ways to optimise current approach to enhance
return on productive selling time
Audit result
Observation: HP current sales strategy & process did not optimize
the total sales opportunity
Typology of sales opportunity: Customers business potential broke
down into four types
Repurchase
Replacement
Customer initiated
Assigned budget
Significantly influenced by IT
4 stages
Expansion
HP initiated
5 stages
Innovation
Continued..
Repurchase
Replacement
Expansion
Innovation
Midstream
Replacement
Expansion
Upstream
Innovation
Alternate model
Migration
strategy
Portfolio
management
Portfolio management
Enter an account at multiple levels with a sales approach
that is tailored to the dynamics of the different types of
sales opportunities
Optimization of return on sales effort by matching sales
resources to sales opportunities
More training to sales team
Thank You!