The Supplies Business Division of HP India Ltd has
rewarded its partners with Maruti vans, Hero Honda bikes and Philips
televisions. There were varying targets depending on the market region that the
channels operate as well as qualitative criterion like availability of products
at all times, not playing on the gray market and selling only genuine HP
products. This was a particular scheme that was launched for two months for the
period of November to December.
A major problem facing the Supplies division is the huge
amount of counterfeit goods and the products from the gray market. Besides, the
cutthroat competition in the market does not allow for margins in pushing
products. Therefore, schemes are used as a strategy from time to time to drive
sales as well as to allow for channels to benefit in some way.
These schemes are also important for HP in terms of
gaining mindshare amongst channels. The company registered a growth of 40 to 50
percent during November-December as against the corresponding period during the
previous year. However, the scheme itself was not the only driver for the
increase in the sales, as there were also other promotional campaigns like gifts
etc.
Speaking about the benefits of the program, JT Jacob,
Country Manager (Supplies Business), HP, said, "This is a win-win situation
for us. While we benefited in terms of pushing more products, the channels also
benefit from the recognition that is given to them from the vendor. It increases
their credibility as recognized HP dealers." The Maruti vans would have the
co-branding of HP and the reseller and would be used as a delivery vehicle.
Partners have reacted with enthusiasm to the program.
Said Naresh Kohli of International Computer Resources, "More than the
tangible aspect of the award, the intangible benefit in terms of the recognition
and thereby the enhancement in credibility is more important."
Dinesh Chopra, Director, Surya Softek, echoed the stand,
"The support from HP has been just incredible. HP could not have such a
program without having its supply-chain in place. Therefore as far as supplies
went, we have never had any problems."
Meanwhile, in line with Hp's latest global strategy to
be conceived a consumer's brand, HP Supplies have started broad-basing its
reach. Besides its traditional partners, stationers will also stock HP Supplies
now. Said Jacob, "With the pervasiveness of the printer, one would like to
have a toner or the ink refill in the local market and not go miles away to
procure the replenishment."
The logic is simple--if you have to be a consumer brand,
follow the FMCG strategy and make reach 'all pervasive'. This would not only
impact the existing market in terms of increased volumes but would also help in
the creation of newer markets as the brand recall of HP would be high.
(CNS)