Channels and Co-Branding

CHANNELS + CO-BRANDING:

Channels:

HP Distribute directly through their website, retail stores such as PC World and Curry's through their value added reseller; SDG and Anixter.

While H-P used to own the #1 spot in the PC market, Dell took over the top spot in 2003. H-P realised they were concentrating ALL resources where Dell was strong: in direct sales over the internet and phone. HP were focusing in head-to-head competition with Dell and was neglecting its retail stores. Other problems HP were encountering were:

Late and incomplete deliveries

Strained partner relations

No marketing focus

H-P shifted focus to a battle it could win: in the retail distribution channel.

HP began repairing relations with retailers, freshened designs to appeal to retail buyers, formed the PC's own marketing group, upped their retail outlet marketing budget, and designed new campaigns targeted to the retail buyers and started off the "The Computer Is Personal Again" campaign

Co-branding:

HP co branded with Monsters Beats to enhance the quality of sound from their computers, in doing this HP strategy was to enter a new market, the music industry, with anyone being able to gain software, hook a microphone and start singing it seemed like the perfect opportunity, with Dr Dre earning $110 million in 2011, it was a trend not to miss. HTC had bagged a $300 million deal with beats and HP took charge next.

Back in 2004 HP and Apple came together as HP planned on launching a new music player. Apple would create the iPod in hopes to sell more, HP would gain a new entrance into the music market and in return would preinstall iTunes into all its HP Pavilion and Compaq Presario computers. Thanks to HP's distribution network, the iPod+HP was sold in retailers where Apple did not have any presence at the time. The partnership ended in 2005 as HP had concerns that selling the iPod didn't reflect their distribution strategy at the time.

In 2009 NME partnered up with HP to launch a unique music event to promote the new HP Pavilion laptop to university students. Visiting six universities, NME Radio Presented the HP Uni Tour. Prior to each leg of the tour, a promotional bus was parked on campus, giving students the opportunity to sample the new HP Pavilion laptops and get one-to-one time with HP's technology experts.