SUMMER INTERNSHIP PROJECT REPORT ON HCL INOSYSTEMS LIMITED
PENETRATION OF I.T. IN SMALL AND MEDIUM BUSINESS
PREFACE I have a great pleasure on doing my research work and in preparing the report on the topic assigned to me. This project has been extremely updated in the light of evidence collected from the corporate survey in Delhi NCR region. A proper formatting of the report is done and over all layout of the entire has been improved for making all the information provided, clear and accessible. It’s the matter of great satisfaction from the researcher point of view that this project report has been completed with the short period of time. In the end of this report the researcher has come out with the finding and suggestions as remedy to the problems that he feels the company is facing today and how can it target the market by bringing some change into their strategies. Beside this researcher has also tried to include all the available information with him in this report in an arranged and systematic manner.
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TABLE OF CONTENTS Acknowledgement
04
Certificate from Industry
05
Certificate from Faculty
06
Executive Summary
07
Industry Study
10
Importance of Study
15
Company Profile
17
Objective & Research Methodology
31
Analysis & Interpretation
36
Findings
49
Recommendations & Conclusions
50
SWOT Analysis
55
Annexure
58
Bibliography
61
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ACKNOWLEDGEMENT
Before moving ahead I would like to express heartfelt words for persons without whom the project was just far fetched dream. I am grateful to my Industry guide Mr. XYZ (Manager- sales) HCL Infosystems Noida and my teacher cum guide Mr XYZ (problem manager)HCL
who has
painstakingly helped me throughout the period with valuable suggestions and opportunity to bring forward my work. I also thank other managers and superiors of company for providing me their help and cooperation at each stage. Above all, I pay my due regards to XYZ (Associate Vice president) HCL Infosystems Ltd. SMB Account Noida. I am obliged to the HCL Infosystems staff for their cooperation during the internship. My increased spectrum of knowledge in this field is the result of their constant supervision and direction that has helped me to absorb the high quality information. I want to extend my regards to all those IT heads and customers whom I visited. However I take the responsibility of all my shortcomings My Thanks.
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CERTIFICATE
This is to certify that XYZ has undertaken the Summer Internship Training at HCL infosystems, Noida during 2nd june to 16th july has successfully completed his Summer Internship under the guidance of Mr.XYZ (Manager-Sales). This project report is prepared in partial fulfillment of Master of Buisness Administration , XYZ university.
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EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY The basic purpose that the project served was to understand the SMB solutions model at HCL. The project was also aimed at identifying the gaps in the current methodology adopted and the proposed model by HCL, while targeting the Small and Medium Business (SMB) segment. The project was also aimed for knowing the market position of HCL. For this rationale, the various practices prevalent in this segment were carefully understood and evaluated. At the same time, HCL Infosystems’ standing among the major competitors was determined to help them chart out a plan for the future. The way the SMB Segment was being targeted by the company’s channel partner was critical to the project. It was found out at the onset that the perception of the company and its SMB channel partner was very different while targeting this segment. For the purpose of uncovering the various facets of this dissonance, a market research was conducted on the SMB’s by the HCL directly through the means of the questionnaire. After the research was conducted the data was gathered and carefully analyzed. It was found that the reason for the slow growth rate achieved in this area was manifold. While pricing, logistics delivery and services were mainly the problems faced by the company, the channel partners were only trying to sell Desktops, servers, and Notebooks PCs rather than selling an entire solution to the various businesses; even though HCL Infosystems was very well equipped to handle the entire gamut of I.T. infrastructure and services that a company needed. The recommendation towards the same were made to increase the awareness of the channel partners and improve on concerns inherent to the company, so HCL Infosystems could have a sustainable growth in the future.
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Primary Objective: Understanding the position of HCL in the SMB. Understanding the reason for slow growth rate Proposing the total solutions approach to help achieve sustenance & sufficiency
Sub-Objective: To increase the revenues accrued from the SMB segment To widen the customer base To have more engagement with the SMB channel partners
Research methodology: Secondary research: reports, websites, Newspapers & Journals Primary research
: Telephonic & Personal Interviews by using a Questionnaire
Sample Size: 91 respondents Sampling Technique: Random and Judgmental
Analysis: Using Pie chart & graphical tools was done on both primary and secondary data
Recommendation: 1. Should Bridge gap between buyer and seller 2. Should make full utilization of Brand image through hoarding and advertisement 3. Should open service centre near institutional and industrial belt 4. Should have a strong Distribution Network
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INDUSTRY STUDY
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INDUSTRY STUDY PRESENT SCENARIO OF INDIAN IT INDUSTRY Presently Indian IT industry including both the domestic as well as exports sector is growing at an astounding rate. This is because of two reasons: •
Increasing domestic consumption of IT hardware
•
Zero- Duty Regime, Which although is nine months away is expected to spur this growth
Out of 3 million computer sales in the financial year 2003-2004, 75% happened in business sector showing an annual growth 30%. But despite of such tremendous growth personal computers penetration in India is as low as 11 per 1000 people MAIT the trait body representing the hardware industry is of the view that India has the potential of 10 million plus in P.C. in text years & a 100 million market by year 2009. Anticipated Growth for current fiscal is 4.2 million units i.e. 40%growth
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IDC report on Indian IT Industry Last year for the Information technology industry, was full of fear, uncertainity and doubt with decisions being taken with a great degree of trepidation. This was mainly attributed to the dot com crash; the slide in the US economy. According to IDC the total Domestic IT spending reached Rs.38931 crores in 2006, a growth of 6% over the previous year. IDC expects the domestic sector to display a significantly enhanced growth performance of 16% in the current Year. Domestic IT spending is expected to show growth with stability over the next 4 years displaying a CAGR of 21% with total IT spend to reach Rs. 55925 crore in 2010 Within exports, IT enables services has the highest growth rate by IT services and hardware respectively. Despite depressing conditions world wide, ITES grew by 76% to cross Rs. 10000 crore in 2006. IDC estimates that ITES will grow at CAGR of 52.4% from 2006-2010 within exports the share of ITES expected to increase from 23% in 2006 to 42% in 2010 According to IDC, the total Indian market (domestic+export) witnessed a growth of 21% to reach Rs. 73219 crore in 2006. IDC sees a continued growth performance for the sector over the next 4 years and expects the IT to grow by a CAGR of 27.9% to reach Rs. 196105 crore in 2010.
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Total Domestic IT Market(70832 crore) 2007
Domestic IT market
19%
28%
BFSI
13579
Manu.
9604
IT
7936
Tel.
14%
1% 1% 1% 1% 13%
11%
11%
7631
E Gov.
9035
Media
977
Retail
1024
Utility
907
H.C
780
Others 19359
Analysis: This is the graph which shows the market share of each sector on IT in the domestic market. The highest share is of BFSI and manufacturing and then of E governance. Rest others jointly took the share.
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Product wise domestic market(70832 crore) 2007
Product wise share
services 17207
15%
24%
6%
10%
10%
2%
4% 29%
S/W
7405
servers
3098
clients
19745
storage
1508
peripherals 7108 N/W
4388
other H/W 10372
Analysis: This graph describes the product wise market share of each Product. This shows clients have the highest market share as they are heavily used in institutions, companies, and home PC’s. Services took the second spot because of high usage of PC’s.
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IMPORTANCE OF THE STUDY Being a student of Btech it is very essential to have a practical knowledge to tackle problem and difficult situations surprisingly found as in an organisation only to study business administrative course is not the solution of the problem, which arise in practical field. There is no certain formula for any particular problem, but the aim of this study is to develop the ability of decision-making. A right decision at right time and right place itself help organization to run effectively and efficiently. This study gives an idea of all marketing activities. So the way a problem is solved right decision-making and knowledge of different type of making activities give much more importance to study. Only in six weeks training it was not possible to understand it so deeply, but an overall view could be developed. The survey was conducted to check the comparative analysis of HCL in companies in Delhi NCR region. In today’s phase each and every company requires a big support of Information Technology. Information Technology has become a day to day part of every company in order to perform their petty works or complex transactions. The essence of this paragraph is that no one in this world has been left untouched from this mind blowing technology. On the other hand professionals see it for expertise. It is not only limited to Multi National companies or Government offices but it has spread its wings to our homes. Our homes are now armed with this Information Technology as now a fridge is being fitted with this technology. Many security systems in our homes are a product of this technology. Now we can control all your home appliances by using internet and can give command even through our cell phones. The whole world is enclosed in this technology. It is the fastest and the most reliable means of communication covering even the remotest area. Companies’ whole work is dependent on this technology. From emailing to copying, scanning, storing large amount of data, collecting information, video conferencing with client sitting on other side of the world, networking solutions etc.
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For this many international companies have entered India to be the part of the fastest growing economy. Many international banks, consulting companies, infrastructure companies, auto companies have made their hubs in India. This also attracted many IT companies to enter India so as to make a mark in rising India. Entrance of international IT companies has given tough competition to various domestic IT companies. But somehow all have managed to survive with this huge competition. HCL infosystems is one of that companies who was ranked 1 st in personal computer sales. This study will help HCL to have the clear cut analysis of where they stand in corporate industry and how they can improve on their strategies and distribution and sales.
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COMPANY PROFILE
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COMPANY PROFILE HCL INFOSYSTEMS LIMITED HCL Infosystems is India's premier information enabling company. Leveraging its 30 years of expertise in total technology solutions, HCL Infosystems offers value-added services in key areas such as system integration, networking consultancy and a wide range of support services. HCL Infosystems is among the leading players in all the segments comprising the domestic IT products, solutions and related services, which includes PCs, servers, networking products, imaging & communication products. HCL Infosystems has got strategic alliances with leading technology leaders like Microsoft, Intel, Toshiba, Oracle, SUN, Novell, AMD, SAP AG, Sybase, Informix, EMC and Veritas. Continuously meeting the ever increasing customer expectations and applications, its focus on integrated enterprise solutions has strengthened the HCL Infosystems' capabilities in supporting installation types ranging from single to large, multi-location, multi-vendor & multi-platform spread across India. HCL Infosystems, today has a direct support force of over 1700+ members, is operational at 260+ locations across the country and is the largest such human resource of its kind in the IT business. A majority of the team members have been specially trained in a variety of supporting solutions, the company's key focus area. HCL Infosystems aims to further leverage its dominance in the PC market. It has been consistently rated as Top player in PC industry by IDC. The Channel Business of HCL Infosystems has an extensive network of over 3500+ resellers across 300 locations. It has actively promoted the penetration of PCs in the home, the small office/home office (SOHO) segments and Small & Medium Businesses, through Beanstalk, Ezeebee, Busybee, PCs, Toshiba Laptops and HCL NetManager Servers. HCL Infinet Ltd. has a strong and dedicated retail network of Nokia Professional Centers, Nokia Priority Dealers and Re-distribution Stockiest across the country.
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HCL
HCL TECHNOLOGIES Global product engineering, IT services, Infrastructure, & BPO company
FINANCIALS Total revenue-US$ 3.5 bn EBIDTA -US$301mn Net Income -US$235mn Market Cap -US$4.5bn
HCL INFOSYSTEMS Hardware and system integration Company focused on the Indian market
EMPLOYEES 55000
CLIENTS 500
Global Presence Operation spanning 16 countries
DELIVERY FACILITIES USA, UK, Malaysia, Singapore and India
INDIA PRESENCE Offices in 170 cities & over 300 service centers
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HCL GUIDING PRINCIPLES Vision Satement “Together we create the enterprises of tomorrow
Mission statement “Together provide world class information technology solution and services to enable our customer to serve their customer better”
Quality Policy “We deliver defect –free products, services and solutions to meet the requirements of our external and internal customers, the first time, every time
Our Management Policy To fuel initiative and foster activity by allowing individuals freedom of action innovation in attaining defined objectives.
Our people Objectives To help people in HCL Infosystems Ltd. Share in the company’s successes, which they make possible; to provide job security based on their performance; to recognize their individual achievements and help them gain a sense of satisfaction and accomplishment from their work.
Core Values •
We shall uphold the dignity of the individual
•
We shall honour all commitments
•
We shall be committed to Quality, Innovations and Growth in every endeavour
•
We shall be responsible corporate citizens
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HCL PRODUCT QUALITY Quality and Reliability – HCL computers are designed and manufactured to provide maximum reliability. All the Components/Sub-assemblies are selected for required specifications from best manufacturers in the world and proven to work at rigorous climatic condition of high temperature and humidity. HCL Labs ensure the compatibility and functionality of a product before released to manufacturing. Manufactured in state-of-art ISO 9001 and ISO 14001 certified plant – HCL is the first IT company in India to be awarded ISO 9001 and ISO 14000 certification. Computer Systems are manufactured and tested under ISO 9001 certified manufacturing processes by duly trained quality workforce. This means consistent quality and reliable products for our customers. ISO 14001 certification means environmentally friendly PC manufacturing processes. Latest Technology – HCL computers use latest technology to provide highest power and performance for great Internet experience. Build with latest CPUs, Chipsets, RAM and peripherals the systems are configured to provide platforms to run latest software and are future proofs. We believe in providing the latest to our customers. Internet and Multimedia Ready - HCL computers are tested for Internet connectivity. All the HCL PCs come with Internet Keyboard, a hot key for One-touch Internet connectivity. Multimedia, well you have to hear it to believe it. Complete Configuration and Future Upgradeability – HCL computers are offered with Monitors and Multimedia to ensure complete solution for your computing needs. Each system is designed to provide you with room and options to upgrade and scale as your needs grow. No.1 IT company with largest customer base – HCL is among the pioneers in Information Technology in India. Having introduced Indian consumers to their first Home computers – Beanstalk, it remains India’s largest selling brand of Home computers. HCL has the largest installed base of computers in India and Most preferred brand.
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QUALITY POLICY We deliver defect-free products, services and solutions to meet the requirements of our external and internal customers, the first time, every time. When you buy HCL, you buy the surety and performance that HCL has been delivering to its customers for the last 30 years. An honest commitment that only a leader can offer. And we proudly say, “With HCL you can be best assured”
WE GUARANTEE TOUGHNESS • HCL PCs are manufactured specially to withstand unique Indian conditions. • HCL PCs are drop tested from a height of five feet to ensure that they can endure tough Indian terrain and rough transportation condition. • HCL PCs are made to withstand temperatures as high as 50* C and as low as -5*C such that they perform relentlessly irrespective of location. • HCL PCs are tested for voltage fluctuations to withstand varied Indian power conditions. • Fully configured HCL PCs are simulated to work in your environment even before they are shipped to you. So that they are ready to work the way you work.
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PRODUCTS AND SOLUTIONS HCL Infosystems’ portfolio of products covers entire spectrum of the information technology needs to it customers. By virtue of the immerse diversity of markets and customers that it addresses, HCL Infosystems’ products offering include everything from high end enterprise level servers for mission critical applications to multimedia home computers. PRODUCTS & SOLUTIONS DESKTOPS & NOTEBOOKS
• • •
Business PCs Home PCs Business Notebooks
• Home Notebooks WORKSTATIONS •
Infiniti Challenger Workstations
SERVERS Overview of Servers Intel Servers
Back-end Datacenter Servers
HCL Datacenter in a Box Rack Optimized Server Solutions Pedestal Server Solutions Entry Level Servers Infiniti Xcel Line Servers
Infiniti Xcel Line 1200 PR with nVIDIA geforce 6150 chipset
Infiniti Xcel Line 4200TL with AMD 8131/8111 chipset
Infiniti Xcel Line 2200 YA with nVIDIA MCP 55 Pro chipset Infiniti Xcel Line 2200AT with AMD 8131/8111 chipset
Infiniti Xcel Line 2200SY with Nvidia nForce Proffesional 2200 chipset
HP Risc Servers & Workstations
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TECHNOLOGY PRODUCTS
•
WINBee Thin Clients o WINBee 3000VX
o o o
WINBee 4000BV WINBee 4000BVX WINBee 5000VX
•
HUTS
•
Terminals o Turboterm 2000
•
o o o o o o
HUTS-8000 V2
Turboterm 2000E Turboterm 2020C Turboterm 2020E Turboterm 2020R Graphterm
POET
o o
MLT2000
o
Turboterm 2020R
Multilingual Terminal 2000
DISPLAY PRODUCTS
• • •
HCM 580M HCM 985RFM HCM 510LSA
• HCM 582 NETWORKING PRODUCTS HCL Passive Products HCL Active Products HCL Wireless Products HCL Gateway Products HCL DSL Products HCL Media Converters
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SECURITY PRODUCTS
HCL HCL HCL HCL HCL HCL HCL
InfoWall InfoSecuAccess InfoVPNe InfoSurveillance InfoSecuDesk - Biometric Logon InfoSecuDesk - SmartCard Logon InfoLoadBalancer
HCL InfoAttendance
• HCL InfoAttendance - Biometric BNx Series • HCL InfoAttendance - Smart Card SNx Series • HCL InfoAttendance - Biometric BNx-SC Series
HCL InfoVMS HCL Smart Library Management System HCL Asset Management HCL EAS System (Electronic Article Surveillance) HCL Stand Alone Door Access Solution - (NDL 600) HCL Stand Alone Door Access Solution - (NDL 100) HCL Hand Geometry Recognition HCL Hand Geometry with Smart Card HCL Smart Card Reader HCL Dual Interface Smart Card Combi Readers
TOSHIBA NOTEBOOKS Product Line-up
SOLUTIONS
Infostructure Services Networking Services Security Services Facilities Management Services Domestic Hardware Services
SOFTWARE LICENSES
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STORAGE SOLUTIONS HCL Storage Solutions
HCL FDA 1500 HCL NAS 2700 SO HCL ECO Stor SCSI-SATA RAID Array
HCL Infostor SCSI JBOD Quantum Storage Solutions Library o PX 502 Tape Library
o o o
Scalar 24 Scalar i500 PX720
Autoloader o Superloader3 Standalone Drivers
o o
LTO Gen III LTO Gen II
Qlogic Storage Solutions(HBA Cards)
QLA 2460
8420 R
200 E
QLE 2460
QLA 2462 Ingrasys NAS Storage Solutions 4420 R Brocade Switches 4100 EMC Storage Solutions
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Key Business Associates of HCL
Retail Network
Competitors 26
About HCL Frontline Division 27
The HCL Frontline Division of HCL Infosystems Ltd. focuses on providing solutions and value-added services to small and medium corporate, the small office/home office and the homebuyer. Involved in marketing and distributing national and international brands of computer systems and peripherals, the 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 encompasses 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. Widely recognized for opening up several frontiers of the world of computing to Indian users, the Division has partnered Dragon Systems, Inc., the world's leading supplier of speech and language technology, to introduce speech recognition tools in the country. In Kerala the Frontline Division is represented by its state franchisee Team Frontline Pvt. Ltd. It is an ISO 9001 certified company and an extremely customer focused IT provider.
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India Poised for Phenomenal Growth Retail Indian retail market to grow to 25,57,380 INR Crore by 2009. Healthcare India will spend 1,92,192 INR Crore on healthcare in the next five years. Telecommunications Fifth largest telecommunication services market in world. Investment potential of 92,400 INR Crore in next five years. Media & Entertainment One of largest in world in terms of total number of films produced in a year, revenues of 40,782 INR Crore has a growth rate of 20%. Textiles 1,51,200 INR Crore industry and expected to grow to 3,48,600 INR Crore in next five years. IT/ITES Market India's IT/ITES Sector is expected to grow to INR 210,000 Crore in Fiscal year 2007-2008. Power Sector Fifth largest electricity generation capacity in the world- Will attract investments up to 8,40,000 INR Crore by 2012. National e-Governance Plan NeGP total financial budget of INR 23,000 Crore planned over a duration of five years
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OBJECTIVE & RESEARCH METHODOLOGY
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OBJECTIVE OF THE STUDY
•
To study the brand awareness of HCL in Delhi and Noida
•
To promote the sales of HCL
•
Customer’s perception about HCL
•
Customer’s perception about finance scheme of HCL
•
Comparative analysis of HCL and other brands
RESEARCH METHODOLOGY 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 INFOSYSTEMS LTD. Have been DESKTOPS, NOTEBOOKS, TOSHIBA NOTEBOOKS. Thin clients being an institutional product can be success if it promoted in schools and institution MBA and Engineering college, corporate house, and end user. To carry out the promotion requires preparing a database of corporate houses, and specific location in different part of Noida and Delhi. And find out contact name and phone number of concerned person 31
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.
Respondents Since the research objectives demand the feedback from the customers, the respondents are the customer’s user and non users of computers dealing in computer hardware and software.
Sampling method It is not possible to get the information from each and every customers of Noida and Delhi under the limited time and limited resources. Therefore a relevant and sizeable sample is drawn from the total number of customers and dealers. ‘Area sampling’ method is used along with ‘judgement sampling’ because canopies were put in different areas of Noida and Delhi for the purpose of promotion and the data were collected. Sample Size
Data source Two types of data sources are used in this project work: Primary Data •
Technique: Personal Interview
•
Instrument: Questionnaire containing number of questions
Secondary Data •
Sources: reports, websites, Newspapers & Journals Company website: hclinfosystems.com, hclstores.com 32
Research Instrument Marketing Researchers have a choice of main research instruments in collecting primary data is questionnaires Questionnaires A questionnaire consists of set of questions presented to respondents for their answer. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested, and debugged before they are administered on a large scale. In preparing the questionnaire, the professional marketing researcher carefully chooses the questions and their form, wording, and sequence. The form of the question asked can influence the response. Marketing Researcher distinguish between close-end and openend questions. Close-end questions pre-specify all the possible answer. Open-end questions provide answers that are easier to interpret and tabulate. Open-end questions often reveal more because they do not constrain respondents, answer. Finally, the questionnaire designer should exercise care in the wordings and sequencing of questions. The questionnaires should use simple, direct, unbiased wording and should be pre-tested with a sample of respondents before it is used. The lead question should attempt to create interest Survey research Surveys are best suited for descriptive research. Companies undertake surveys to learn about people’s knowledge, beliefs, preferences, and satisfactions, and to measure these magnitudes in the general population.
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RESEARCH PROCESS Sampling and determination of sample size
Sampling Plan After deciding on the research approach and instruments, the marketing researcher must design a sampling plan. This plan calls for three decisions: 1. Sampling Unit: The first question that arises when u decide to survey is : whom to survey? The marketing researcher must define the target population that will be sampled. The target population for my survey was various corporate houses 2. Sampling Size: Next important question arises: what is the size of population to be surveyed? Large sample size give more reliable results than small samples. However it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. A total of 100 interviews were conducted in Noida and Delhi region in different locations. Sampling Procedure: The other most important question in research is: How to choose the respondents? To obtain a representative sample of the population, a probability sample of the population should be drawn. Probability Sampling allows the calculation of confidence limits for sampling error. Three types of probability sampling are described below. When the cost or time involved in probability sampling is too high, marketing researchers will take Non Probability Sampling Probability Sample: •
Simple random Sample- every member of the population has an equal chances of selection
•
Stratified Random Sample- the population is divided into two mutually exclusive group (such as age groups), and random samples are drawn from each group.
•
Cluster (area) sample- the population is divided into mutually exclusive groups (such as city block) and researchers draw the sample of the group to be interviewed
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ANALYSIS AND INTERPRETATION
35
Awareness of HCL
Awareness of HCL
100.00% 80.00% 60.00% 40.00% 20.00% 0.00% Awareness of HCL
Yes
No
91.60%
8.40%
Analysis: The research shows that nearly all of the people are aware of HCL and knows what it is all about. Nearly 92% of respondents know that HCL is a Hardware as well as Software company. Mainly came to know about it through TV ads and print media ads.
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Are you aware that HCL provide software also apart from hardware
Awareness of HCL into software
80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Awareness of HCL into software
Yes
No
76.80%
23.20%
Analysis: Research define that nearly more than one- third people are aware that HCL also in software along with hardware products. As some of them are the clients of HCL using their certified softwares. This shows that HCL has managed to penetrate the minds of people and build awareness amongst people.
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Which brand of Desktop and other accessories people buy?
Deskstop Preference
26.40%
30.40%
HCL IBM HP Compaq Dell
9.70%
Others
9.40% 24.10%
Analysis: HCL seems to have edge over other branded computers as per consumers’ response. However HCL and HP combined together constitute the bulk of the market share in Delhi and Noida. Because the quality and service of HCL is much higher than that of its competitors. Whereas HP gives HCL tough competition but being an INDIAN company it gives other brands run for their money.
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Which brand of Laptops do people buy?
Laptop Preference
17.60%
26.40%
HCL 12.50%
HP Compaq Dell Others Sony 13.30%
30.20%
Analysis: As per respondents HCL constitutes 26.40% of the market share in Laptops also in Delhi and Noida. But HP Compaq is having edge over HCL in laptop sales as they have much captured the institute market because the availability of models of HP is much higher. They quality of laptops of HP is slighter better than that of HCL. But if we look at the price quotient which usually customers go for, there HCL has an advantage over HP & other brands in the market.
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Were the people satisfied with the performance of HCL?
Satisaction Level 78.30% 80.00% 70.00% 60.00% 50.00% 40.00%
Yes No 21.70%
30.00% 20.00% 10.00% 0.00% Yes No
Yes
No
78.30%
21.70%
Analysis: 78.30% of the total respondents expressed their satisfactions about the performance of HCL Infosystems because HCL take great care about their customers regarding after sales service as this is the foundation stone of HCL Infosystems. Another reason for being able to satisfy customer is being near, as their main office is situated in Noida which covers both Delhi and its surrounding areas. 40
Overall Market Share of HCL?
Overall Share
11.80% 27.30%
HCL
17.90%
HP Compaq Dell Others Sony 16.30%
26.70%
Analysis: HCL covers the market of 27.30% sharing with HP proving to be its biggest competitor. This shows that HCL has managed to prove its presence into the corporate as well as in customers mind. It has also proved that HCL is for Indian companies as well as Multi National Companies (MNC’s). With this same strategy, Quality HCL will one day conquer this corporate world.
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Market share of HCL through schools and Institutes?
Overall Share
18.90% 38.50%
7.90%
HCL HP Compaq Others Assembled
34.70%
Analysis: HCL and HP Compaq cover the major market portion i.e.73.2% through schools institutes. As institute preference of HCL products is much high than other brands because of its high quality products and service. Whereas many institute do prefer HP over HCL because of its an international brand but HCL has given same quality that is given by other international brands.
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Commercial market share of HCL?
Commercial Market Share
8.90% 9.40% 42.20%
HCL HP Compaq Others Assembled
39.50%
Analysis: In commercial sector also HCL holds the major portion of 42.20% which is very much close to half of the market. Further it can try to capture more share. As HCL is the key choice of the corporates because of its variety of corporate solutions that HCL is offering be it a Desktop PC, servers, clients, CCTV cameras, Kiosk Machine machines etc.
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Attributes considered by customer?
Attributes 40%
36%
35% 30% 25% 20%
20%
15%
12%
12%
12%
8%
10% 5% 0%
P
A
B
P+A
A+B
A+P+B
P = PRICE A= ACCESSORIES B= BRAND
Analysis: Respondents prefer price and accessories which constitute to be the high 36%. As customers are always price sensitive and always look for the accessories available with the product.
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Secondly brand is always a main thing as it satisfies the customer but this analysis shows that customers have now outcasted that theory.
Ranking of HCL
Ranking
40%
39% 32%
35% 30% 25%
20%
20% 15%
9%
10% 5% 0%
V.G.
G
A
N.I.
V.G = VERY GOOD G = GOOD A = AVERAGE NI = NO IDEA
Analysis: As per respondents HCL holds very good position in the market of Delhi and Noida because of its high market value and customer preference and brand image. This is due
45
to high product range and excellent service. Thus holds a whooping 39% which is a great mark in this history of HCL.
FINDINGS
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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. The findings of this project are as follows: 1) HCL is a market leader in IT products in New Delhi and Noida but have a very close competition with HP. 2) Most of people know that HCL deal only in desktops PCs and servers whereas only few knows that HCL also provides S/W development, networking, internet services, facility management and High End solutions. 3) Most of people think that HCL is typically hardware firm having no relations with software 4) Compaq and HP are two companies that are at top of mind in Brand freak customers. 5) Cost and quality are two major factors that are taken into consideration while purchasing any IT product. 6) Technology wise means quality wise HCL is considered to be number two after IBM.
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7) Cost wise HCL is number two where as Zenith enjoys first position. Third position rank goes into account of WIPRO 8) HCL holds number one position in after sales services that is the major reason for it to being a market leader. 9) Corporate Image of HCL is good. It equal ant to IBM and Compaq. HCL give vary tuff competition to both MNC Companies 10) According to consumer satsfaction Index HCL is No.1 where as second and third is HP and IBM.
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RECOMMENDATION & CONCLUSION
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RECOMMENDATIONS Relationship To do any business requires a bridging between buyer and seller so HCL should appoint a term of dynamic marketing executive who can establsh a good relationship with institutes, Schools and Corporate houses. Frequent follow ups will certainly prove fruitful for HCL in the long run
Brand Image HCL has a strong brand image in the market. Brand image always help in pushing a product into the market. But in the case of LapTop and higher-versions it seems that HCL has’t made full utilization of its brand image. •
Hoarding of company’s product should be at kept at prime locations where maximum people can see it.
•
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.
Service Centre HCL doesn’t have service centre in a Institutional belt, Industrial belt, this in many way hampering sales of HCL products. Hence company should open few more service centers in the city.
Distribution Network A strong distribution network always helps in becoming the front-runner for any product in a market. Though HCL has a good network it has to strengthen it to a greater extend. •
The time taken for delivery should be minimized to a larger extent in order to make the faster deliveries.
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•
They should enhance the number of channel partner in this reason
LIMITATION OF THE SYUDY Though I have tried my level best to make the study and the report writing qualitative and excellent, the following 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 to Noida and Delhi City only. The time period allotted for the study i.e. 2 months is a short period for completing this type of activities. The accuracy of the project and conclusion is totally depending on the accuracy of the data collected and analyzed The result is not same for all reason Researcher was unable to survey schools as there was holiday at the time when survey was being conducted. Customers are too busy to contact Too much time consumed on each call It is possible that some potential source may leave untapped
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CONCLUSION OF THE STUDY After the comprehensive study of the secondary and primary data it has been found that HCL holds numeric first position in Desktop PCs. This supremacy is due to its sound and promotes after sales services, which are also the preference criteria for ministers to buy any IT product. Most of the people officials associate HCL with hardware products and very few know that HCL also provide IT solutions and software services too. They believe that HCL is typically a hardware firm. Undoubtedly HCL is leader in after sale services. As well as HCL is a leader in hardware products but to sustain its leadership and cope up with the intensity competition it has to improve in other field too. Quality and technology are few names. Corporate image is good of HCL as compare to HP and IBM
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LEARNING FROM THE STUDY It was a great opportunity for me to do my internship in HCL Infosystems Ltd., which is one of the prestigious companies in India. It was a starting for me to get the knowledge of real corporate world. Today experience and knowledge of things is much more important than the degrees in hand. Although the learning’s were numerous in number but I have concluded a few as major learning’s and they are as follows: •
I got such a good project at HCL Infosystems Ltd., which gave me the opportunity to meet the various people in the corporate as well as Government offices. I have visited few organizations but the experiences of these visits have been and will be of tremendous help in my career.
•
I came to know how to tackle people of different attitude and of different mindsets, which will definitely help me in future. Planning a day in advance and the activities that I performed during that day gave me confidence in my planning and implementation. This project also exposed me and my skill sets to the corporate world, where I came to know my flaws and rectified them, but a chance may be there.
•
I was an active member at customer demonstrations, which gave me confidence and knowledge about how to convince a customer and handle all sorts of queries.
•
I learned real marketing and sales experience during this time period. I learnt how to make good relationships with customer as well as colleagues. The practical aspects of marketing theories are materialized during the course of this study
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SWOT ANALYSIS
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SWOT ANALYSIS Strength •
HCL is a brand itself
•
Aggressive Marketing Strategy
•
HCL has strong distribution network as compared to competition
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HCL available products can provide solutions to any environment
•
Customized products for every type of customer
Weakness •
HCL has not been able to establish an entry barrier for competitors
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Services provided by HCL are not up to the mark
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Channel partner of HCL has not much capable to provide good and frequent services to their potential customer
Opportunities •
HCL products because of their price factor over other companies and assembles are gaining popularity
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The new technology that provided by HCL is one of the big opportunities that HCL have
•
Lower rates of different models give opportunities to HCL for grab the assemblers market
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Threat •
Possibility of more new players come in the same business is expected
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HCL PCs is facing a big challenge from HP and IBM in higher segment and from Assembled in lower segment
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HCL facing a big challenge in Laptop segments
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HCL facing a big challenge because of their bad service facility
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HCL is not providing varieties and Configuration in laptops.
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ANNEXURE
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QUESTIONNAIRE DATE:___________ Type of call:
Cold calling
Call by appointment
Time spent with customers (including waiting time) ______________________ Account name:____________________________________________________ Type of business Manufacturing/ Consultancy/ BPO/ Services/ Schools/ others _______________ Head quarter located at: Delhi/ Bombay/ Others _________________________ Details of person met:
NAME ____________ Designation ___________
Has the decision maker been met:
YES ________
NO _______
Are you aware of HCL
YES ________
NO _______
Are you aware that HCL also provide software: YES _______
NO _______
:
Product available with the customers • Business PC HCL ___________
Others ___________
•
Servers
HCL ___________
Others ___________
•
Firewall
HCL ___________
Others ___________
•
Wan/ gateway
HCL ___________
Others ___________
•
Copying solution
HCL ___________
Others ___________
•
Oracle
HCL ___________
Others ___________
•
Storage
HCL ___________
Others ___________
•
Printer
HCL ___________
Others ____________
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•
Imaging solution
HCL ___________
Others ____________
•
Network and security
HCL ___________
Others _____________
QUESTIONNAIRE Cont………… Are you satisfied with the performance of HCL:
YES __________
NO __________
What are the attributes that you prefer most? •
Price
•
Accessories
•
Brand
•
Price + Accessories
•
Accessories + Brand
•
Accessories + Price + Brand
According to you HCL is •
Very Good
•
Good
•
Average
•
No Idea
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BIBLIOGRAPHY
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BIBLIOGRAPHY
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Research Methodology - C.R. Kothari
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Marketing Research - G.C. Berry
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http://www.scribd.com
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http://www.hclinfosystems.com
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http://www.hclperipherals.com
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http://www.hcl.in
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http://www.google.com
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