Compaq goes to school in India.
Compaq goes to school to boost home PC sales
Mumbai, June 14: Compaq Corporation is launching a new marketing strategy to target the home segment in India: pepper schools with promotional campaigns and have school children create pull for Compaq PCs.
In addition, Compaq also plans to reach out to the home PC segment through retailers and intends to open exclusive retail shops in every small city across the country. ''Compaq will demonstrate products in schools and conduct workshops. We will work with software vendors to bundle education software, which would be highly useful for students,'' Compaq's director for consumer business in South Asia, Ravi Swaminathan, said adding that financing options will be provided on the spot. Compaq offers finance through Countrywide Finance at a monthly repayment starting at Rs 3,000.
Compaq's latest initiative is in line with the latest consumer research reports which indicate that it is children who are driving PC sales in the booming home PC market in India. The buying behaviour of the home market has undergone a radical change and today, 63 per cent of the new buyers cite childrens' education as the motive for buying computers. Confirming the change, a recent report of International Data Corporation (IDC) states that the working parent and children influence buying decisions. Children are either influenced by friends or have access to computers at schools. They instigate the parent, who succumbs. The internet has only added to the charm of PC sales.
Work at home continues to be the other influencing factor, according to the report. An amazing 90 per cent growth of the home PC segment has virtually forced Compaq to shift gears and introduce new schemes for the segment. According to Swaminathan, growth and affordability of multimedia and more importantly, the growth of Internet are reasons for the explosive growth.
The company is planning to divert more resources into market development for this segment. Swaminathan said the company intends to create a strong product range and distribution network, roadshows and carnivals in 35 cities including the metros, to create more awareness about the Compaq brand. It will increase the number of retailers to at least 100 from the present 70 by next year. Also, more visibility through advertising and roadshows are on the drawing board. Compaq is also focussing on multinational customers for stepping up sales in the country.
Currently, Compaq is planning a relevant and competitive brand positioning for its Presario. While quality and reliability, price, service and support, brand reputation and features continue to be major influencing buying factors, Compaq feels that the Presario fits in all the segment. The latest launch, aimed at the home class, was Presario 4010, running on a Celeron 366 and priced at Rs 45,000. The price factor, Compaq says is not all that important as the customer is ready to pay for quality. Compaq, which popularised the $1,000 home PCs in the US, plans to place its new range of machines in the same region. Says Ravi Swaminathan, ''The idea is to offer home PCs with more features at a premium. Today, the home segment demands a number of price points and affordability and a lot of range. Hence we have lined up few PC models to be launched after considering the market needs,'' he said.
Swaminathan said that Compaq's efforts to develop a full-fledged home PC market is bearing fruit now. ''We have invested and nurtured this market, which is now growing at a pace of 80-90 per cent per annum,'' he said.
From an entry level machine of Rs 1 lakh in 1995, the market today begins at a Rs 40,000-45,000 machine. While Indian brands like HCL, Zenith and Wipro are dominant forces in the home PC segment, Compaq has big advantage among the MNC brands in India. Acer and Hewlett Packard with its Pavilion brand are the other companies to focus on the home segment. Compaq has a share of 7.9 per cent of total units against 8.4 per cent of market leader HCL in the India market, while its share by value at 15.6 per cent is far ahead of HCL's 7.9 per cent, according an IDC survey in 1998-99.
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