Hcl Summer Report

“CORPORATE SELLING & FEEDBACK” FOR

Dissertation Submitted to the Padmashree Dr. D.Y. Patil University in partial fulfillment of the requirements for the award of the Degree of

MASTERS IN BUSINESS ADMINISTRATION Submitted by:

Rahul Kumar Singh MBA (core), Marketing Roll No: 121

Research Guide:

Ms. HAPREET SINGH Department of Business Management Padmashree Dr. D.Y. Patil University CBD Belapur, Navi Mumbai

December 2008

“CORPORATE SELLING & FEEDBACK” FOR

Dissertation Submitted to the Padmashree Dr. D.Y. Patil University in partial fulfillment of the requirements for the award of the Degree of

MASTERS IN BUSINESS ADMINISTRATION Submitted by:

Rahul Kumar Singh MBA (core), Marketing Roll No: 121

Research Guide:

Ms. HAPREET SINGH Department of Business Management Padmashree Dr. D.Y. Patil University CBD Belapur, Navi Mumbai

December 2008 2

DECLARATION

I hereby declare that the dissertation “Corporate Selling and Feedback for HCL” Submitted for the MBA Degree at Padmashree Dr. D.Y. Patil University’s Department of Business Management is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles. Place: Navi Mumbai Date:

(Rahul Kumar Singh)

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Certificate from the Company

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“Acknowledgement is an art, one can write glib stanzas without meaning a word, on the other hand one can make a simple expression of gratitude.” Industrial training is an integral part of any Master of Business Administration program and for that purposes I had joined a company what else can be as good as HCL Infosystems Ltd, India's premier information enabling company. I take the opportunity to express my gratitude to all of them who in some or other way helped me to accomplish this challenging project in HCL Infosystems Ltd. No amount of written expression is sufficient to show my deepest sense of gratitude to them. I am very thankful to External Guide, Mr. Satish Kaushik, Front Line Divison, HCL Infosystems Ltd., Noida and very grateful to Prof. Mangesh Patil, Faculty Department of Business Management, Padamshree Dr. D.Y.Patil University, Belapur for their everlasting support and guidance on the ground of which I have acquired a new field of knowledge. The course structure created for this curriculum has benefited with the inclusion of recent development in the organizational and managerial aspects. Lastly, I am thankful to all the member of HCL Infosystem Ltd, Noida, which has given me valuable information in the part of my project.

RAHUL KUMAR SINGH MBA (Core, Marketing) ROLL NO. 070121

TABLE OF CONTENTS Title

Pg. No.

♦ EXECUTIVE SUMMARY ♦ LITERATURE REVIEW ♦ COMPANY PRIFILE

7 8 9

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♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦

SCOPE OF THE STUDY OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS & GRAPHICAL INTERPRETATION MAJOR PLAYERS IN THE MARKET COMPETATORS OF HCL ROLE OF ADVERTISMENT MARKETING STRATEGIES FUTURE SCOPE MANAGEMENT HIERARCHY KEY PARTNERSHIP MARKET SHARE MARKETING & SELLING STRATEGIES CHANGING TRANDS DECISION MAKING PROCESS CRM SWOT ANALYSIS FINDINGS & LIMITATIONS SUGGESION & RECOMMENDATION CONCLUSION BIBLIOGRAPHY ANNEXURE - QUESTIONNAIRE

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10 11 12 14 28 29 35 36 37 38 39 40 42 43 46 47 49 51 52 53 54 55

EXECUTIVE SUMMARY HCL Infosystems, India's premier information enabling and integration company, has received the ISO 9001:2000 certification specifies requirements for a quality management system where an organization needs to demonstrate its ability to consistently provide product and services that meets customer and applicable regulatory requirements. ISO 9001:2000 also aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements. The menu of HCL Insys global services broadly covers IT consulting and professional services in the area of vertical applications, technology integration, ERP implementation and software development. This also includes a complete portfolio of systems and network services for development. This also includes a complete portfolio of systems and network services for Facilities Management, Helpdesks, Sysytems Supports and network and Internet Implementation. HCL Insys’global customers include Samsung, Government of Singapore, and AMAL insurance Jurong Port in Singapore and Malaysian’s BSN commercial bank, SIA, DBS bank, Maybank life assurance charted semiconductors. HCL Insys’ chosen platform of total technology integration lends itself to some very significant alliances with the global leaders. Among its partner are HP for high end AISCE/UNIX services and workstation and HP Open view network management solution; Intel for PC and PC server building blocks; Microsoft,novell and SCO AG solutions; Red hat ;Linux; Samsung; Pivota for CRM solution and ORACLE Sybase and Informix for RDBMS platform. Today the company has aligned its operations into five entities that offer seamless linkages for the customers seeking entry into the wired world through total the. ‘Integration solution ands services’.

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HCL Infosystems focuses on the ever-growing segment in Imaging, Telecom and Communication products solutions and services. Now it has an exclusive sale and support partnership with Toshiba Corporation, Japan, for sales and servicing of its imaging and photocopier products. HCL Infosystems product portfolio covers a range of other office automation and communication products through alliances with world leaders. The Managed Network Service offerings for corporates include VPNs, ASP offerings, Co Location/ hosting, CDNs, security, corporate internet telephony solutions, technical and consumer help desks, 24/7 Network Operations Centre monitoring and a host of value added networking services. Consumer services include dialup PSTN/ISDN Internet access, Valufon calling cards and VoIP telephony devices. LITERATURE REVIEW Doing training was really an opportunity before me when I could convert my theoretical knowledge into practical and of real world type. Fortunately, the company I got is a true follower of the various principles of management and also one of the leading companies in its segment of the industry. The working environment that I was being provided was extraordinary and helped me a lot in delivering my work properly and with full potency of mine. HCL Infosystems Ltd is one of the renowned names in the Software and Hardware sector of computer industry. The graph of sales of these respective product lines is the best in the industry as compared to their competitors. I did my summer training project at HCL Infosystem Ltd., Noida, where I found all the professionals are very much committed to their work as well as they were all professionals enough. This helped me a lot in getting a good deal of exposure. As I had to consult the Channel partners, I felt myself, in the beginning, in a bit problem. But the cooperation of my superiors at the work induced confidence in me to deal with my problems whenever they came.

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Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In 1978, HCL developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India. This micro-computer virtually gave birth to the Indian computer industry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP. HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 28 years into multiple practices - semiconductor, operating systems, automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many more. Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane.

HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. We have been in the forefront in introducing new technologies and solutions. In the early 70’s a group of young and enthusiastic and ambitious technocrats embarked upon a venture that would make their vision of IT revolution in India a reality. Shiv nadir and five of his colleagues got together and 1975 set up a new company MICROCOMP to start with; they started to capitalize on their marketing skills. Micro comp marketed calculators and with in a few month of starting operation, the company was out selling its major competitors. On 11th August, 1976 HINDUSTAN COMPUTERS LIMITED was incorporated as joint venture between the entrepreneurs and UPSCE, wit an initial equity of Rs.1.83 Lacs.

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SCOPE OF THE STUDY Vision Statement “It is the most preferred employer and principal taking leading edge IT products and services to the masses through sustained excellence.” Mission Statement “We shall increase the shareholders value by improving the PAT through free cash flow, reducing the BR cycle, inventory levels, wastage.” Quality Policy Statement “We will deliver defect-free products, services and solutions to meet the requirements of our external and internal customers the first time, every time.”

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OBJECTIVES OF THE STUDY Management Objective To fuel initiative and foster activity by allowing individuals freedom of action and innovation in attaining defined objectives. People Objective To help HCL Insys people share in the company’s success, which they make possible; to provide job security based on their performance; to recognize their individual achievements and to help them gain of satisfaction and accomplishment from their work. Core Values ♦ ♦ ♦ ♦

It is uphold the dignity of individual It is honour all commitments It is committed to quality, Innovation and growth in every endeavor It is responsible Corporate Citizens.

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RESEARCH PROBLEM •

HCL Corporate selling and feedback and market share of HCL and compared to other IT companies.

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The business of HCL and the company through its researchers wants to know the potential in order to expand and retain its market share.

RESEARCH DESIGN •

Determined the Information Sources: The researcher gathered data through secondary sources.

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PRIMARY DATA is collected through questionnaire, search and research through place where today's computer has been mostly used.

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SECONDARY DATA is being search sites like magazines, newspapers, journals, websites and the data has been collected through other approaches.

DATA COLLECTION The researcher collected information through the official websites, magazines and journals. DEVELOPED THE RESEARCH FRAME: This included deciding upon various aspects for the project on which the entire research is based. The research frame included: NATURE OF STUDY The project on which the researcher worked is descriptive and inferential in nature.

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DATA SOURCE: The researcher took the help of both primary as well as secondary sources. Secondary sources being interaction with various IT people of the selected and has been chosen for the research by the researcher. Secondary sources being the internet as the medium and the official sites of the companies of IT sectors and corporate selling and feedback of HCL. INSTRUMENT USED The researcher for the research used a Questionnaire cum Schedule for market research for both the segments horizontal and vertical. The Questionnaire was prepared by the researcher and Schedule was provided by the company in which the researcher did its research report. SAMPLE SIZE Sample size for the research is fixed. It counts to 55. That is the HCL companies and corporate selling and feed of HCL in comparison between other IT sectors.

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DATA ANALYSIS & GRAPHICAL DATA INTERPRETATIOIN SAMPLE SIZE : 55 1. What type of computers do you use? a.)Branded b.)Assembled

Branded Assembled

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Using branded computers hospitals using branded computers Using assembled computers hospitals using assembled computers

It was observed that almost 67% of the people use branded computers or other gadgets for their business purpose. Hence can be concluded that more people want branded products as they are not ready to compromise with the quality and services being provided.

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2.

What brand computers do you use? a.) HP b.) HCL c.) ACER d.)Others

Brand used HP HCL Acer Others

Total Nos. 7 14 13 21

HP HCL acer others

This observation showed that HCL is among the top used brands. Major part under the pie-chart goes to HCL. So HCL should continue making efforts to attract new market and sustain the existing market. 3. What is the number of installed desktops? a.) <15 b.) 15-50

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c.) 50-75 d.) 75-200 e.) 200-500 Installed desktops < 15 15-50 50-75 75-200 200-500

Total Nos. 19 21 11 3 1

<15 15-50 50-75 75-200 200-500

Most of the surveyed and found the use of computers within the 15-55 range. So it can be inferred that the main target market is which lies in the middle range. Thus we targeted mainly on SME (small and medium enterprise). 4. What is the number of used servers? a. 1 b. 2 c. 3-5 d. 5

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Servers used 1 2 3-5 >5

Total Nos. 10 11 21 13

1 2 3 to 5 >5

From this observation, it was concluded that number of servers were directly proportional to the number of desktops used. 5. What is the number of installed laptops? a.) 1-5 b.) 5-15 c.) 15-30 d.) >30

Number of laptops 1-5 5-15

Total Nos. 20 22 17

15-30 >30

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1 to 5 5 to 15 15 to 30 >30

It was observed that maximum computers and laptop users ranging between 5-25. This area can be focused.

6. What is the brand used for laptops? a.) HCL b.) Toshiba c.) Lennovo d.) Others Laptops brand HCL Toshiba Lennovo Others

Total Nos. 11 19 13 12

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HCL Toshiba lennovo others

Observation showed that Toshiba was the major brand used in laptops. Various other brands like HP and Samsung etc. are also used. HCL has also a good market share. 7. Do you have AMC? a.) Yes b.) No

Hospitals place having AMC Hospitals place not having AMC

Total Nos. 30 25

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hospitals having AMC hospitals not having AMC

According to above graphical data interpretation, that is the most important places where computer has been used and it has been observation and showed that less than 60% hospitals have their AMCs. This area can also be considered.

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9. What type of company is having the AMC? a.)Regional office of the company b.) Any other local player

Type of AMC company Authorized regional office Local players

Total Nos. 24 6

regional office of the company any local player

That the above graph shows that the use of AMCs in regional office and local players prefers authorized regional offices to select for the service rather than going for a local player.

10.Are you facing any problem with current used product line? 21

a.)Yes b.)No c.)Not yet

Facing problem Not facing problem Not faced problems yet

Total Nos. 15 18 22

hospitals facing problem Facing problems hospitals facing Not facingnot problems problem Notyet yet encountered encountered not

That the above graph shows that the above observation showed that major number of users are either not facing any problem or they have not being encountered with any. 11. Are you planning to make any new purchase? a.) Yes b.) No 22

c.) Not yet planned Planning about new purchase Planning to purchase No planning Not yet planned

Total Nos. 9 17 29

planning to purchase no planning not yet planned

That the above graph show that the most of the users have not planned about making a purchase and a very few are planning to make a buy.

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12. How do you find the HCL products? a.) OK b.) Good c.) Satisfactory d.) Outstanding e.) Not tried yet Reaction about HCL products OK Good Satisfactory Outstanding Not tried yet

Total Nos. 3 12 19 7 10

OK good satisfactory outstanding not tried yet

According to above graph shows that the maximum of HCL user are satisfied with the products and services provided. Very few have not tried yet HCL on a business scale, but most of them have an experience about HCL. 13.Do you want to know more about HCL products? a.)Yes b.)No 24

Wanted knowledge about HCL Yes No

Total Nos. 42 13

want info about HCL no info wanted

That the above graph shows that the observation and the most of the people are interested in knowing more about the brand and have the urge to buy.

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14. Do you require demo for any product? a.)Yes b.)No

Interested in demo Not interested in demo

Total Nos. 24 31

interested demo hospitalsininterested in demo

interested demo hospitalsinnot interested in demo

This observation showed that almost 45% of the sample was interested in demo.

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15.Do you want to buy any product? (Commercial proposal) a.)Yes b.)No c.)Not yet decided

Commercial proposal Yes No Not yet decided

Total Nos. 8 19 28

Interested ininterested commercialin hospitals proposal commercial proposal Not interested hospitals notininterested commercial proposal in commercial proposal Not yet not yetplanned planned

That the above graph shows that the above observation showed that almost a huge chunk of hospitals surveyed either doesn’t want or they have not planned for any commercial proposal.

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MAJOR PLAYERS IN THE MARKET

 HCL  DELL  IBM  SAHARA  APPLE  H P - C O M PA Q  ZENITH  ACER  INTEX  SONY  O TH E R S

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SAHARA COMPUTER Established in 1997 Sahara Computers assembles and markets computers & peripherals through a global distribution network that covers established and emerging markets. The company is owned by Sahara Holdings, a fully Broad-Based Black Economic Empowered entity, and is based in Johannesburg, South Africa. It is the official distributor and Original Equipment Manufacturer (OEM) for a variety of top international vendors. An accredited member of the Proudly South African campaign, the Sahara business network stretches across South Africa to include Cape Town, Durban & Port Elizabeth. The company has established a strong presence globally, with offices across EMEA, including Nairobi & Mombassa in Kenya and Botswana, Dubai, the U.K and China. Sahara Computers is currently the largest operation of its kind in Southern Africa. Owned by Sahara Holdings group, company boast an annual turnover over 1.4 billion Rand. Sahara Holdings strictly adheres to the principles of Broad-Based Economic Empowerment and established itself among the frontrunners of empowered organizations within the ICT sector when it confirmed its participation in an empowerment deal valued at R640 million in 2006. For the deal Sahara Holdings sold 27% of their shares to a newly established consortium represented by mining and mineral resource Group Mvelaphanda Holdings (Pty) Ltd. chaired by Tokyo Sexwale, and Afripalm Consortium, a local investment company chaired by Lazarus Zim. The deal incorporates subsidiaries and associates of Sahara Holdings including Sahara Computers Pty Ltd., Sahara Systems Pty Ltd., Sahara Consumables Pty Ltd., Sahara Distribution Pty Ltd. and Annex Distribution Pty Ltd. This venture signals a new era in the transference of the benefit and value associated with technology, through to communities and individuals. It also reinforces Sahara’s pledge to provide access to high quality, affordable communication technology and infrastructure. It is the competency and dynamic attribute of Sahara Computers that has won it the confidence of many major IT suppliers, representing key product and component ranges.

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These Include Internationally Renowned Leading Brand Names Such As: Microsoft, the global leader in software, services and peripherals; Foxconn, a leading manufacturer of connectors and cable assemblies in the world; Samsung, technology giant, Creative Labs, global leader in PC entertainment products, Intel, world’s leader in PC microprocessors; AMD, the fastest growing CPU vendor; SMC, total network solutions provider; Maxtor, leading hard disk and storage solutions provider; Symantec, world leader in internet security; and Epson and Lexmark, high quality printing industry giants. Thus, With vast expansion goals set to by the Sahara team, and a strategic roadmap plan for expansion this multinational group of companies is set to be an explosive force in the future of IT in Africa and Asia. Indeed aiming to be ‘The ultimate in PCs’.

SAHARA PROFESSIONAL PC:DT-7120FE Processor

AMD Athlon64 ™ 3500+ 939-Pin

OS

Genuine Windows® XP Professional Edition

Memory

512MB PC400 DDR

VGA & Graphics Hard Drive

160GB 7200rpm

Optical Drive

16X Dual Layer DVD Writer

SAHARA WINDOW PC’S:Processor

Intel LGA775 541, 3.2GHz AMD Athlon64 ™ 3500+ 939HT CPU 800FSB Pin

Intel P4 - 630 ® 3.0GHz CPU - LGA775 2MB +XD+EIST+EM64T

OS

Genuine Windows® Media Centre Edition

Genuine Windows® XP Professional Edition

Genuine Windows® XP Professional Edition

Memory

512MB PC533 DDR2 Memory

512MB PC400 DDR

512MB PC400 DDR

Hard Drive

160GB SATA 7200 rpm hard drive

160GB 7200rpm

160GB 7200rpm

16X Dual Layer DVD Writer

16X Dual Layer DVD Write

Optical Drive

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SAHARA AMD PC’S:Models

DT7120-FC

Processor

AMD Athlon64 ™ 3500+ 939-Pin

OS

Genuine Windows® XP Professional Edition

Memory

512MB PC400 DDR

AMD Athlon64 3500+ 939-Pin Genuine Windows® XP Home Edition 512MB PC400 DDR

VGA & Graphics Hard Drive

160GB 7200rpm

Optical Drive

16X Dual Layer DVD Writer

160GB 7200rpm 16X Dual Layer DVD Writer

SAHARA VALUE PC’S:Models

DT2510-C2

DT7120-FC

Processor

Intel Celeron-D 331J 2.66Ghz CPU LGA775-EMT64T

AMD Athlon64 3500+ 939-Pin

OS

Linux

Genuine Windows® XP Home Edition

Memory

256MB PC400 DDR

512MB PC400 DDR

Hard Drive

40GB 7200 rpm

160GB 7200rpm

Optical Drive

52X CD-RW Drive

16X Dual Layer DVD Writer

VGA & Graphics

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DELL COMPUTER Dell Inc. listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 25 on the Fortune 500. Dell's climb to market leadership is the result of a persistent focus on delivering the best possible customer experience by directly selling standards-based computing products and services. Revenue for the last four quarters totaled $57.9 billion and the company employs approximately 78,700 team members around the globe. Dell was founded in 1984 by Michael Dell, the longest-tenured executive to lead a company in the computer industry. The company is based on a simple concept: by selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory in just five days on average.

The Dell Effect For more than 20 years, Dell has revolutionized the industry to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers. Because of Dell's direct model—and the industry's response to it—information technology is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives. Dell has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories. Nearly one out of every five standards-based computer system sold in the world today is a Dell. This global reach indicates our direct approach is relevant across product lines, regions and customer segments.

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Compaq Computer Corporation was an American personal computer company founded in 1982, and now a brand name of Hewlett-Packard.The company was formed by Rod Canion, Jim Harris and Bill Murto — former Texas Instruments senior managers. The name "COMPAQ" was derived from "Compatibility and Quality", as at its formation Compaq produced some of the first IBM PC compatible computers. Once the largest supplier of computing systems in the world, previously regarded as perhaps the most reputable manufacturer of mid-range hardware it existed as an independent corporation until 2002, when it merged with Hewlett-Packard.

1980s Compaq was founded in February 1982 by Rod Canion, Jim Harris and Bill Murto, three senior managers from semiconductor manufacturer Texas Instruments. Each invested $1,000 to form the company. Their first venture capital came from Ben Rosen and SevinRosen partners. Like many small startups with unique beginnings, the original Compaq PC was first sketched out on a placemat by the founders while dining in a local Houston restaurant, House of Pies. In November 1982 Compaq announced their first product, the Compaq Portable, a portable IBM PC compatible personal computer. It was released in March 1983 at $2995, considerably more affordable than competitors at the time. The Compaq Portable was one of the progenitors of today's laptop. It was the second IBM PC compatible, being capable of running all software that would run on an IBM PC.

Deskpro On June 28th 1984 Compaq Released the Compaq Deskpro, a 16-bit desktop computer using an Intel 8086 microprocessor running at 7.14MHz. It was considerably faster than an IBM PC and was, like the Compaq Portable, also capable of running IBM software. This was the first of the Compaq Deskpro line of computers.

Deskpro 286 In 1985, Compaq released the Compaq Deskpro 286, a 16-bit desktop computer using an Intel 80286 microprocessor running at 8 MHz and capable of supporting up to 7 MB of RAM. It cost $2000 for the 40-MB hard disk model. It was considerably faster than an IBM PC AT which ran at 6MHz at that time and was, like the Compaq Portable, also capable of running IBM software.

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Deskpro 386 When in 1986 Compaq introduced the first PC based on Intel's new 80386 microprocessor, the Compaq Deskpro 386[1], they began a period of increasing performance leadership over IBM, who were not yet using this processor. An IBM machine eventually reached the market seven months later, but by that time Compaq was the 386 supplier of choice and IBM had lost its image of technical leadership .Systempro This technical leadership and the rivalry with IBM was emphasised when the Systempro server was launched in late 1989 - this was a true server product with standard support for a second CPU and RAID, but also the first product to feature the EISA bus which was designed in reaction to IBM's MCA (MicroChannel Architecture).

1990s At the same time as they began to dominate the server market, in the early 1990s Compaq entered the retail computer market with the Presario, and was one of the first manufacturers in the mid-1990s to market a sub-$1000 PC. In order to maintain the prices it wanted, Compaq became the first first-tier computer manufacturer to utilize CPUs from AMD and Cyrix. The price war resulting from Compaq's actions ultimately drove numerous competitors, most notably IBM and Packard Bell, from this market.

PC Products Compaq Armada M300 Compaq Portable Compaq Deskpro Compaq LTE Compaq Presario Compaq ProLinea Compaq ProLiant Compaq Armada Compaq Evo iPAQ Compaq Professional Workstation AP400 Tc1000, a tablet notebook

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ROLE OF ADVERTISEMENT Advertisement plays an important impact on consumers to purchase destop pc’s of brands. Now a day we see that each and every company endorsing brand ambassadors so that to attract customers and make their customer base more & more. IBM has signed Saif Ali Khan to endorse his products Shahrukh khan was endorsed by compaq so that more & more computes can be sold out.

Indian PC Market to Show Double Growth than the World PC market in India will likely grow at 20%, almost double of global PC market this year, as per Gartner, the research firm. However, the growth in Indian PC market will be five percentage-points lower in comparison to what it was last year (2006). Gartner forecasts that PC makers will ship 255.7 million units worldwide this year, a 10.5% increase from 2006. Revenue, on the other hand, is projected to increase only 4.6% to US$213.7 billion, as average selling prices continue to drop. In 2007, worldwide shipments of PCs are expected to increase 10.5% from last year to reach 255.7 Million units. On the other hand, the revenues are anticipated to grow just 4.6% and reach US$ 213.7 Billion with continuous decline in average selling prices. Emerging markets will play a key role in this growth. “Emerging markets and mobile PCs will continue to provide growth. However, falling average selling prices (ASPs), slowing replacement activity, and further declines in mature market desk-based PC shipments will keep PC vendors under pressure to rationalize their operations or exit the market,” as per George Shiffler, research director with Client Platforms Markets Group of Gartner Dataquest. The statement appeared in IndiaTimes Infotech on March 21, 2007. As said by IDC, PC shipments in India increased 25% in 2006. “The consumer and the SMB segments will be the major drivers of the Indian market. High demand for mobile PCs bolstered the growth, overtaking sales in the desk-based segment. In addition, with a greater focus given to e-governance, the government spend is expected to propel the market further”, said Gartner India’s principal analyst, Diptarup Chakraborti while commenting on Indian market. IndiaTimes Infotech published this statement on March 21, 2007. As per the RNCOS report “Portable Electronics Market - Worldwide (2006)”, “A fundamental move toward mobile computing going on in the market is making significant contribution to the top line growth.”

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Marketing Strategies of Each company to attract Customers Now a days every companies playing strategies so as to attract customers and increase revenues and also customer base.Pent-up demand, attractive price points and economic stability propelled PC growth. PCs are acting as entertainment centres with TV functionality, supported by the digital sound experience and large screen displays

Some Of The Strategies They Are Playing Vista and Office 2007 hit the market Microsoft has opened the doors for consumers to purchase its latest Operating System, Windows Vista, and Office 2007 with a grand launch across 70 countries. Microsoft released the latest version of its operating system Windows Vista and Office 2007 for corporate customers in November 2006. Now it has launched the software for the masses, i.e. non corporate consumers. The consumer launch took place on 30th January across 70 countries. Windows Vista is the first major Windows launch by Microsoft since the launch of Windows XP in 2001. These products are launched to ‘wow’ customers with features like enhanced security, better search, improved parental control and an all new interface. According to Ravi Venkatesan, Chairman, Microsoft India, “This is the launch of the decade for Microsoft and the biggest for us in India, with the design of this product we have dealt with the security issues.” In India, OEMs including HCL, HP, Lenovo, Sahara, Wipro and Zenith are launching Vista compatible PCs. Windows Vista and Office 2007 will be made available to the public in several editions. The consumer editions are Windows Vista Ultimate, Windows Vista Home Premium, Windows Vista Home Basic and Windows Vista Starter. Vista is being shipped in 18 languages including Hindi. Extending the Indian language support, Microsoft will have 13 more Indian languages including Telugu and Marathi and support for these is expected by early 2008. Office 2007 comes in two consumer editions—Office Home & Student 2007 and Office Basic 2007.

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On the commercial front, Munglani feels that decision cycles are still slow, but there is a definite increase in queries and tenders. He feels that government funded projects need to increase, and points to the recent Andhra Pradesh schools project, which pulled in more than 5,000 units, as a good example of what government enthusiasm for IT can do.In conclusion, going by what the industry feels and what the numbers reveal, recovery is definitely taking place in the industry, though caution is still the prevailing sentiment. However, the bottom line is that the days of super growth seem to be over. While IDC has predicted 22.3 percent growth in 2003, not everyone in the industry seems to be ready to join in the chorus. HP’s Sai Chandrasekhar says that their assessment is an expectation of 10-15 percent growth, which he feels is very realistic. “It is unlikely that the market will return to the heady days of 30 percent growth,” he explains. Kochhar of Skoch seconds that when he says, “We can no longer look at heady growth rates like 40 percent or 60 percent...the market has been growing more in single digit to low two digit growth rates.” And that seems to be the future that India’s PC brigade faces-but well, surely even low two digit growth rates are better than negative growth, and that’s the reason for the cautious smiles on the faces of PC vendors. Hopefully, the next quarter will bring even broader smiles.

PARTY TIME FOR BRANDED PC PLAYERS The PC market is rocking with branded PC vendors grabbing marketshare from the assembled players, says Kusum Makhija The overall market for desktop personal computers registered a 28.2 percent growth during calendar year 2004 as compared to the previous year. What is significant is that branded PCs continue to make impressive gains against the grey market. According to IDC, the share of branded PCs grew from 36.2 percent in 2003 to 49.2 percent in 2004, registering an impressive growth rate of 74.3 percent. Interestingly, the grey market remained flat, registering a growth of 2.2 percent, while the total desktop PC market registered a growth of 28.2 percent.

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LEADERSHIP

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Shiv Nadar Founder HCL, Chairman and CEO HCL Technologies Ajai Chowdhry Co-Founder HCL, Chairman and CEO HCL Infosystems J V Ramamurthy Chief Operating Officer HCL Infosystems Ltd

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Vineet Nayar President: HCL Technologies Ranjit President and CEO of the HCL Technologies (BPO)

KEY PARTNERSHIPS

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HCL Compaq

8.4%

Zenith

7.9% 57.5%

7.0% 4.2% 3.7% 1.0% 1.6%

3.5% 3.3%

1.9%

IBM Acer Hewlett-Packard Wipro Vintron Siemens Nixdorf Dell Others*

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From the above graph it is clear that in Indian Hardware Industry the HCL Infosystems Ltd. share is highest in all branded companies. But still very high portion about 57.5% is in favour of unbranded local companies, which is still a challenge towards all. The share of the unorganised sector has been falling steadily with the fall in price of branded PCs. A recent phenomenon has been the increasing share of Tier 2 towns and cities in the PC sales thereby indicating increased PC penetration into the hinterland. Sales of notebooks have averaged around 50,000 in the past two years. Printers have been traditionally the fastest growing segment of the PC peripherals market. Even when PC sales were increasing by 39%, printer sales increased by 41%. The slowdown affected printer sales too and in 2001-02, the increase was just 1%. In that year, 836,122 printers were sold and that included inkjet, laser and dot matrix. The momentum is expected to pick up in 2002-03 and the printer market would grow at 8% to reach 900,000 printers. Due to falling prices, Laser printer sales are growing fastest. In future, HCL’s hardware sales to the institutional segment are likely to remain stable, with sustained hardware spending by all the verticals, especially the banking and financial services sector. Besides, in retail hardware sales, a continued reduction of price points, facilitated in part by the recent reduction in excise duties on PCs, is likely to reduce the price advantage of the small assemblers, and augur well for branded PC manufacturers like HCL. In the medium term, HCL’s margins, despite its sales tax advantages, may be affected by the likely removal of duty protection on manufactured PCs from the year 2005. With imported PCs becoming cheaper, it may be critical for HCL to establish an alternate supply chain based on imports of finished PCs. Nonetheless, its financial risks are mitigated by its low gearing, substantial liquid investments and unutilised working capital limits. IDC declared its numbers for the Indian PC market for financial year 2005-06 today. The year recorded an impressive growth in terms of unit shipments - the market grew 30% over financial year 2004-05 to exceed the 4.6 million-mark, according to IDC's India Quarterly PC Market Tracker, 1Q 2006, May 2006 preliminary release.

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REVISITING THE LOW-COST PC MARKET A computer at nearly one-third of current prices is a dream for most Indians. And yet, buyers are not holding their breath for these devices. For experience has proved that expectations are seldom met. However, this time around, those propagating low-cost computing solutions have taken a different route. Chris Ann Fichardo elaborates on the difference . The buzz is in the air again. PC manufacturers are excited. Users are expectant. Even institutions like the IITs are enthusiastic. The reason: India’s dream of an affordable PC (priced below Rs 10,000) is ready to hit the market. For nearly a decade this dream has struggled to become a reality. India Inc. has made many noteworthy attempts in the past to introduce low-cost computing solutions, but in vain. Be it Wipro’s Janata PC, iNabling Technologies’ e-mail device, iStation, or the much-talked about handheld device, the Simputer—all brilliant concepts that have not quite made it commercially yet. The company netcore is doing groundbreaking work to make possible the Rs 5,000 PC (5KPC), says that if the price point of a PC comes down between Rs 5,000 to 10,000 per user, India has the ability to absorb 10-20 million PCs a year for the next several years. This potential gains further significance when one realises that the present market size is just two million PCs a year! In the last 20 years the installed base has barely crossed six million PCs in India. According to Richard Brown, director for International Marketing at VIA attributes this sudden interest by vendors to the "real growth potential" of the low-cost PC market. "I remember five to seven years ago when the first $1,000 PC appeared (introduced by Compaq), people wondered if the price point was for real. And since then there has been a continuous push down in the price points for PCs, which is a sign of commoditisation of the industry. For a long time the industry has resisted moving to lower price points, and now they are actually seeing that there is demand in that space and they are buying into it," he says.

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CHANGING TRENDS IN PC MARKET With prices of PCs being slashed, the education sector is expected to see a high demand for personal computers. Consumers are shifting their focus of PC computing from an average system to one that is closer to a high-end system and upwards. The need for the most powerful multimedia computers is increasing. Linux might gain ground in the government and defence sectors. Customers, both in the consumer as well as in the commercial space will demand better service levels from vendors. Service and support is going to be a critical aspect of vendor strategy. Depreciation period of IT products should be reduced to further boost growth. The desktop space will see more and more entertainment-oriented features getting integrated into the normal PC. The enterprise space will witness more stress on security, TCO, manageability and multiple levels of redundancy, among others Companies, which will offer affordable innovation will gain market share. Unicode will drive PC penetration into rural markets SME will continue to be a major segment. The industry has standardised on 80 GB HDDs.

Trends Expected In 2009 In the future, with more duty cuts expected, analysts believe branded PC players will gain further against assembled players. Retail may get a renewed thrust. Observes Raj Saraf, Chairman and Managing Director, Zenith Computers, “We have1300 retail outlets today, which we hope to grow to 15000 by the end of 2009.” While vendors are bundling in Linux to bring down costs, analysts see desktop Linux confined to the government and education sector. Linux on the desktop is unlikely to make inroads in the enterprise. Prices of computers have been falling rapidly, but vendors do not think prices of PCs will fall significantly in 2009.

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While 2007 saw strong demand emerging from select sectors such as the government and BPO outfits, 2008 could be relatively flat as most BPO firms are in the process of consolidation and not growth.

PC MARKET: TOP TRENDS PC market revival may happen in second half of this year. Post-Budget PC prices will remain constant or rise marginally. Indian brands will survive, but they need to decide on an unambiguous competitive pitch. Thrust into the B & C class towns will be aggressive, by Indian and MNC players alike. The notebook market will show significant gains in 2002-03. If you want to know what the future holds for the Indian PC industry, the one fact you cannot afford to ignore is the current slowdown not just falling growth, or a gentle trough, but the horrible spectre of negative growth. The near panic the industry witnessed in the wake of this terrible time was reflected in the price slashes and bundling offers anything to kick start stagnating sales graphs was acceptable. And that took the PC to almost commodity status in India. But then, that’s history. And in business, history is not what sells; promises of a rosier future do. According to industry association MAIT’s president Vinnie Mehta, sales have picked up in the JFM quarter, which is traditionally a high sales quarter, and as of now, they’re hoping that this will be a sustained phenomenon in spite of a lacklustre Budget that did almost nothing to push up demand for PCs.

PRICES DO AN ABOUT-TURN Immediately after this year’s Budget, most PC vendors said PC prices would remain constant, and some even pointed out that prices would rise, thanks to increasing memory prices. That should be one of the key differentiators between last year and the financial year ahead PC prices are not likely to come down, and in all probability, will actually see marginal rises. Says Vasu Srinivas of IDC India, “While the initial response to the slowdown was to slash prices, when it began to hurt, PC vendors began to take a profitability approach. They are now seeking out the more profitable deals and aiming for better prices with lower volumes.” Another factor that will contribute to stable prices is the move by the big distributors to cut credit periods down the line from 30 to 15 days. This move, coming in the wake of big defaults among IT channels, will discourage speculative and rash pricing and margin policies that result in price wars the industry can ill afford.

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TRIUMPH OF THE MNC BRIGADE In recent times, one of the most important trends in the Indian PC business is the sight of MNC vendors turning leaders. Yes, HCL Infosystems, the leader in the desktop segment, is as Indian as they come, and the company’s leadership position seems in no immediate danger, but it’s not insurmountable either. All it will take is the HP-Compaq deal going through in the United States, and HCL will become No 2 to an MNC behemoth that will then control almost double of HCL’s market share, which currently stands at 8.6 percent, according to George Paul, head-marketing, HCL Infosystems. While everyone admits that the market share of MNC brands has gone up, and mostly at the expense of Indian brands, this issue generates a lot of heat and passionate arguments.

BIG BUYERS MATTER While the move to B & C class cities attracted attention, the biggest buyers of PCs pretty much remained constant, and they’re expected to continue to be the saviours of the beleaguered PC industry this year too. The honours go to the government both at the Centre and the states, and the banking and financial sector mainly PSU banks. Another segment expected to contribute significantly to PC buying this year is the telecom sector. Retail’s still in vogue

MOBILE COMPUTING, ANYONE Mobile computing is also expected to have some effect on the PC market in the coming year. And in many ways, this may just be the beginning of things to come in the Indian PC market.

OUTLOOK When will the good times start rolling again? The pundits have differing opinions. IDC India says the PC industry is expected to grow by 5.1 percent in 2002, and adds that PC buying is expected to revive in 2003, when a growth rate of 20 percent is forecasted. Kochhar of Skoch says this year will see some revival, though he warns that heady growth rates will not return without policy measures like 100 percent depreciation from the government. MAIT is hoping that the slight upturn in the JFM quarter is a portend of things to come, even though it revised industry sales projections for 2001-02 downwards from 2.45 million units to 1.65 million units.

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THE DECISION MAKING PROCESS Decision makers, who are used to depending on their past experiences, must make decisions and take actions in the rapidly changing world we face today. In this turbulent environment, the ability to successfully view the current situation through the traditional "good judgment" viewpoint is weakened through increasing external noise (a multitude of information sources on multiple topics) and changing.

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CUSTOMER RELATIONSHIP MANAGEMENT (CRM). WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT (CRM)? CRM is a term that is often referred to in marketing. However, there is no complete agreement upon a single definition. This is because CRM can be considered from a number of perspectives. In summary, the three perspectives are: 1. CRM from the Information Technology Perspective. From the technology perspective, companies often buy into software that will help to achieve their business goals. For many, CRM is far more than a new software package, the renaming of traditional customer services, or an IT-based customer management system to support sales people. However, IT is vital since it underpins CRM, and has the payoffs associated with modern technology, such as speed, ease of use, power and memory, and so on. 2. CRM from the Customer Life Cycle (CLC) Perspective. The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products of services that customers need throughout their lives. It is marketing orientated rather than product orientated. Essentially, CLC is a summary of the key stages in a customer's relationship with an organization. 3. CRM from the Business Strategy Perspective. The Business Strategy perspective has most in common with many of the lessons and topics contained on this website, and indeed within the field of marketing itself. The diagram below shows the Marketing Teacher Model of CRM and Business Strategy. Our model contains three key phases - customer acquisition, customer retention and customer extension, and three contextual factors - marketing orientation, value creation and innovative IT.

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CRM MODEL

A commonly cited definition of CRM is that of CRM (UK) Ltd (2002), as follows: Customer Relationship Management is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organizations. The relationship delivers value to customers, and profits to companies. The relationship is supported (but not driven) by cutting edge IT. The business strategy is based upon the recruitment, retention and extension of products, services, solutions or experiences to customers. This is the core of CRM.

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STRENGTHS: HCL’s strengths are many, to mention a few :

a)

b)

c) d) e)

Global Presence: •Its collaborations and joint ventures with international companies such as Perot System, and partnership with world leaders like Ericsson, Toshiba, Nokia, Oracle and Microsoft, enable it to bring the best technology available world wide to its consumers. •24 locations in 16 countries. Fast paced and flexible work culture which provides its employees autonomy to accomplish the task without much pressure from the higher authorities. Thus, employees are motivated to give their best to the organization. The core strength of HCL is the talent and innovativeness of its people which enables it to provide the “right solution at the right time.” The mass markets handled through a chain of dealers, resellers and retailers which helps bring technology usage closer to the individual. It has very strong distribution network. Its pool of competencies : Hardware, Software, Training, Networking, Telecom and System Integration.

f)

Ability to understand customer's business and offer right technology.

g)

Long standing relationship with customers.

h)

Pan India support & service infrastructure.

i)

Best-value-for-money offerings.

WEAKNESSES: a) b)

After sales service. Less promotional campaigns.

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OPPORTUNITIES: a) b) c) d) e)

IT industry booming at a rate of 45% every year. Increasing consumer awareness about IT and its use. Tremendous untapped potential of IT products in India. Increasing competition. Tie ups with various MNCs enable to extract their core competencies.

THREATS: a) b) c) d)

Local assemblers are biggest menace for the company. Entry of MNCs i.e. IBM, Compaq giving direct competition. Govt. instability has a long term repercussions affecting company’s policies & its growth. Technological shift as a result of research & development. Daily new technologies are emerging.

Concluding the S.W.O.T. analysis in words that prosperity lies ahead for HCL. In order to retain its position as India’s No. 1 IT conglomerate, it has to come out with the state of art as well as futuristic technologies to its consumers well before time.

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FINDINGS & LIMITATIONS Every project has some limitations even the researcher came across some limitations while working on the project which made the analysis a little inappropriate at times. Some of the basic limitations faced during the research are listed below:  Only limited number of authorized, companies and other areas where it

has been found 55 players was covered in the study.  Most of the research was based on cold calls, so then visited many

places i.e. authorized and local areas and where it had not responded much.  There was a bias on the part of the respondents.

 Companies that were contacted through telephone at times did not give correct information to the researcher.  The IT manager or the person heading the IT Department did not have

the rights to give the authorized official information to people other then the members of the official itself and the high officials.  At times there was a problem of non response from the hospitals,

companies and other authorized and unauthorized areas which affected the result of the project being done by the researcher.

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

HCL is having large number of channel partners but it is not supporting & taking care all of them equally which results in increasing discontentment among new channel partners because its not possible for company to support all of them equally. Company should take some positive action against it.



Company executive should visit dealers on regular basis.



They Should pay proper attention towards checking of various components of PC before end user delivery. Otherwise it tends towards defame of brand name in comparison to rivals.



Need to expend customer care center as the consumer base of HCL Infosystem is increasing with tremendously fast pace.



Proper attention should be paid for advertisement planning otherwise it may lead to problem for dealer as well as for company.



Company should tie up with some event management company to organize various promotional activities like canopy, Carnival.



Company should make policy for fixed end user price for all dealers so that fair game will be played & dealer would not to compromise on their margin.

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Marketing is a very crucial activity in every business organization. Every product produced within an industry has to be marketed other wise it will remain as unsold stock, which will be of no value. I have realized this fact after completion of my summer training project. Despite of various difficulties and limitations faced during my summer training project on the topic “ Corporate Selling and Feedback ”. I have tried my level best to find out the most relevant information for the organization to complete the assignment that was given to me. After completion of my summer training project I have gained several experiences in the field or sales marketing. I have got the opportunity to meet various people, which fluctuate in different situation and time. This summer training project has given me the opportunity to have first experience in the corporate world. Theoretical knowledge of a person remains dormant until it is used and tested in the practical life. The training has given to me the chance to apply my theoretical knowledge that I have acquired in my classroom to the real business world. I have completed my summer training project in which are involved in its successful completion. In spite of few limitations and hindrance in the summer training project I found that the work was a challenge and fruitful. It gives enough knowledge about the computers market and the distribution process undertaken by an organization. This summer training project has enabled my capability in order to manage business effectively and in my career in future.

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BOOK AUTHOR:

KOTLER PHILIP

TITLE:

MARKETING MANAGEMENT

PLACE OF PUBLICATION:

DELHI

PUBLISHER:

TATA MC GRAW HILLS PUBLISHING CO. LTD

MAGAZINES / JOURNALS / NEWSPAPERS ♦ Business World ♦ Business Today ♦ The Financial Express ♦ The Times of India ♦ The Hindu

WEBSITES: ♦ www.hcl.in ♦ www.indiainfoline.com ♦ www.google.co.in ♦ www.hp.com ♦ www.saharacomputer.com ♦ www.acer.com ♦ www.dell.com ♦ www.ibm.com ♦ www.hclinfosystem.in ♦ www.altavista.com ♦ www.khoj.com

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ANNEXURE

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QUESTIONNAIRE Name

____________________________________

Designation

____________________________________

Address

____________________________________

Contact No.

____________________________________

1. Do you use computers for your business purpose? a.) Yes b.) No 2. What type of computers do you use? a.) Branded b.) Assembled 3. What brand computers do you use? a.) HP b.) HCL c.) acer d.) Others 4. What is the number of installed desktops? a.) <15 b.) 15-50 c.) 50-75 d.) 75-200 e.) 200-500 5. What is the number of used servers? a.) 1 b.) 2 c.) 3-5 d.) >5 6. What is the number of installed laptops? a.) 1-5

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b.) 5-15 c.) 15-30 d.) >30 7. What is the brand used for laptops? a.) HCL b.) Toshiba c.) Lennovo d.) Others 8. Do you have AMC? a.) Yes b.) No 9. What type of company is having the AMC? a.) Regional office of the company b.) Any other local player 10.Are you facing any problem with current used product line? a.) Yes b.) No c.) Not yet 11. How do you find the HCL products? a.) OK b.) Good c.) Satisfactory d.) Outstanding e.) Not tried yet 12. Do you want to know more about HCL products? a.) Yes b.) No

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