Hp's Brand Equity Analysis

Summary

The purpose of this group report is to define which level does HP computers in the Keller's customer-based brand equity model. The Keller's CBBE model gives us a clear theoretical framework. Based on the framework it is easily to investigate the HP 's brand equity and figure what implications could hinder the brand reach the top level. Therefore, we use the random sampling survey method to collect the information and data. According to the SWOT analysis to find the challenges and give the recommendations to resolve the problems.

Firstly, a brief review of Keller's CBBE model. Keller (1993, pp.2) proposes the CBBE as ''the differential effect of brand knowledge on consumer response to the marketing of the brand.'' Keller also says ''when the consumer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory'' (1993, pp.2). That means the model as a process, and the unique characteristics can help the brand be remembered by the consumers. The report adopts those theories as the theoretical basis, and investigates how does the HP computer could meet the consumers' need and enhance the brand equity.

The second step is design the questionnaire. Referencing the Keller's candidate measures of brand-building blocks (Keller, 2001, pp.27-30), the questionnaire include 21 questions and interview the participants from six aspects that constitute of "Salience, Performance, Imagery, Judgments, Fillings and Resonance". We expect to receive satisfactory results understand the customers real opinion that would helpful to direct the weakness finding the suitable solutions.

In this survey, we own 71 samples from the different areas and have different occupations. The majority occupation of the interviewers is university students. The questionnaire has been put online or sent by email. Having wait for ten days the survey was finished and data was collected. During the data analysis step, our group analyzed all the data and selected the representative results to explain. All the data would be used for drawing the recommendations and explain the barriers of HP' s brand.

Finally, when we finished all the procedures of the survey, the group members will share the experience and limitations in the whole process. The limitation parts might include the problems when we designed the questionnaire, collect the samples, analyze the data and find out the recommendations.

Introduction This report will use Keller's customer based brand equity model to analysis brand equity of HP computer. Keller's model shows a branding pyramid which indicates how to build strong brands. And different level of brand equity the model covered will help the organization to identify which level the HP computer has achieved. It can be said that the model provides a comprehensive means of covering important branding topics, as well as useful insights and guidelines to help marketers set strategic direction and inform their brand-related decisions.(Keller,2001,p4) Through analysing the data that collected from the questionnaire, it will be very clear of equity level of HP and thus to identify their strategy.

Background of HP

Hewlett-Packard is an American multinational information technology corporation that provides products, technology, solutions, software and services to customers. The headquarters are still located in Palo Alto, California, and are doing business in 170 countries with more than 320,000 well educated employees around the world. The company provides various products and services such as printing, personal computing, software, services, and IT infrastructure. The revenue of the four fiscal quarters ending October 31, 2010, was $126 billion. (HP 360, 2011)

According to BrandZ, HP is currently the world's 12th most valuable brand ($39,717 million) and rank No.5 in the technology industry (BrandZ, 2010). In 2010, 64.3million Personal Computers were sold by HP around the world which accounts for approximately 18% of the world's PC market. This means, HP is the largest PC producer in the world (HP 360, 2011; Gartner 2011)

HP's Personal Systems Group (PSG) claims to be "one of the leading vendors of personal computer in the world based on unit volume shipped and annual revenue." The corporate objective of brand loyalty is "to provide products, services and solutions of the highest quality and deliver more value to our customers that earn their respect and loyalty." (HP corporation, 2011)

After the acquisition of Compaq in 2002, HP enlarged its Personal computer division. Today, HP's personal computer is famous for its diversity of the categories that can fulfill different consumers' needs.

SWOT Analysis of HP

Strength:

As can be seen from the table conducted by Gartner (January, 2011), after the acquisition of Compaq, HP had the largest market share in the Personal Computer industry showing a 2010 market share of 17.9%. The PC market of HP has always kept the sustainability of strong growth momentum in recent years. In the third quarter of 2006, HP recaptured the first place of global PC sales from Dell. Today, HP is the world's biggest PC manufacturer and further widened the distance with Dell. Moreover, in the year of 2008, the financial crisis and economic recession did not stop the rising trend of HP's PC market share. By contrast, the sales of Dell and Lenovo, two of HP's strongest competitors, fell by 5.9% and 4.5%, respectively. That is to say, marketing is one of the main competitive advantages of HP.

http://www.gartner.com/it/page.jsp?id=1519417

HP's achievement in PC world is also due to its successful strategic acquisitions. HP officially merged with Compaq in 2002 and purchased Electronic Data Systems (EDS) in 2008. Both of these business events enlarged the power of HP in the PC market. Another advantage of HP is their strong distribution ability. HP uses both direct and channel method to distribute their products and they have various types of partners, retailers or suppliers that can be utilized for various customer groups (HP corporation, 2011).

Weakness:

Although HP is a renowned brand which is heard by a majority of people all over the world, its brand loyalty is not expectantly high comparing with its strongest competitors such as Apple. One of the reasons is that the design of HP products are more or less out of fashion which cannot effectively attract or retain customers.

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