HP Inc. has a multi-tiered sales and distribution structure in India. It partners with tier-1 distributors who sell to tier-2 channel partners, who then sell to end customers across various sectors. The document discusses HP's product portfolio, market share in India, key challenges around conflicts between channel partners, and strategies for measuring channel effectiveness such as revenues generated. It also covers factors considered for marketing performance like brand awareness, customer retention, and how HP engages customers over their lifetime.

1. HP Inc. India
Understanding B2B Structure &
Strategies
Presented By: Group 4

2. HP Overview
• Hewlett-Packard Co. (HP) is a provider of information technology
(IT)products, software, solutions and services.
• HP produces printers, digital cameras and servers, provides IT and
consulting services, and makes networking products and software to tie
everything together.
• Its service portfolio includes enterprise IT infrastructure solutions,
technology support, maintenance services, outsourcing, integration and
consulting services.
• HP’s customer portfolio ranges from individuals to small, medium, and
large enterprises.
• The company also offers a set of managed services, providing a cross-
section of broader infrastructure services for smaller discrete
engagements.
• It conducts business operations in 170 countries across Americas, Europe,
Middle East, and Asia-Pacific regions.• HP is headquartered in Palo Alto,
California, US.

3. HP India Overview
• HP came to India in 1988. HP India has a presence in over 350 cities in the
country
• The HP - Compaq merger in 2002 created the largest PC company in India
with revenues of Rs. 35 billion and a combined 17% market share in India
• In March 2009, HP launched the ‘HP Software University’ (HPSU) in
partnership with Indian Institute of Hardware Technology (IIHT).
• The Indian entities of Hewlett Packard Co are:
– HP India Sales Private Limited for sales and marketing operations
– Global e – Business Operations Private Limited for transaction processing
– HP India Software Operations Pvt. Ltd. for software development and sales
– HP Labs India - for innovation & to provide breakthrough technology for the
rapidly growing emerging markets worldwide.
– HP Consumer Contact Centre - Technical Support Contact Centre
– HP Global Soft Ltd -HP Services global delivery operations in India for
Application Services, IT Infrastructure and Technology services.

4. Corporate Objectives
• Corporate Objectives
• Customer loyalty
• Profit
• Growth
• Market leadership
• Commitment to employees
• Leadership capability
• Global citizenship

5. Corporate Family Tree
Hewlett-
Packard
HP Inc.
HP
Enterprise

6. HP Product Portfolio

7. HP Market Share
17%
13%
12%
11%6%
41%
PC Market Share in % of 2011
HP
Lenovo
Dell
Acer
ASUS
Others

8. Sales Director
National Sales
Manager
Key Account
Managers
Tier-2
Channel
Managers
Tier-2
Channel
partners
Tier-2
Channel
partners
Tier-2
Channel
partner…n
Distribution
channel
Managers
Tier-1
Channel
partners
HP Inc. India - Sales & distribution
structure

9. HP Channel Partners’ Network in India

10. HP Inc. India B2B Clients/Customers
B2B Clients
Government
& PSUs
Central
State
Enterprise
Business
Corporates
Education
Institutions

11. How does it work ?

12. SWOT Analysis

13. The Key challenges faced by HP Inc.’s
Sales & Marketing Channel in India
The major challenge faced by HP Inc.:
• The conflict of interest between its KAMs and the Tier-2 channel partners
involved in the bidding process.
• As in, let’s assume that the KAM and the Tier-2 partner both reach ABC
Company to pick order for 100 HP Laptops with certain specification.
• They both quote different price to the customer. In case, the KAM wins the
order and forwards it to some other Tier-2 partner then the one involved
initially on discovering the reason behind his loss generally gets into tiff with
the KAM.
• Albeit, the condition leads to both competition and tussle among the Tier-2
channel partners but also leads to conflicts with KAMs.
In such scenarios, the channel manager plays a crucial role in satisfying
the egos of both the KAM and the tier-2 client by offering certain offers.

14. The Key strategies to measure the effectiveness
of the distribution channels in India?
For Tier-1 Partners:
• More they purchase and bill the products, more effective they are considered to
be.
• The Tier-1 partners are authorised to generate invoice for the certified Tier-2
partners only.
• The Tier-1 partner must have a warehouse, sound financial details and risk taking
capability.
For Tire-2 Partners: Criteria are as follows –
• The number of new clients added by the partner to its network.
• How often the partner meets the targets & how many time it exceeds the target
• The number of repeat purchase generated/brought by Tier-2 partner
• The Tier-2 partners may sell to the B2B clients, retailers or they might have their
own sub-distribution channel called the Tier3 partners.
• They might not be present or available within the reach of every local areas and
highly available in shady areas or restricted geographies.
Key Account managers: The KAMs’ effectiveness is measured on the basis of the
business retained by them as well as the new accounts fetched by them.

15. The metrics used to calculate the CLV
• Revenue metrics is the most preferred metrics to measure
the growth, sales volume and customer base for the HP Inc.
in India and worldwide.
• The organization believes in calculating the revenues
generated per customer in the sales cycle and it further
helps in forecasting the demand and sales for the
consecutive period.
• All data is analyzed on weekly, monthly and quarterly basis
as well.
• The data is captured and retained from its distributors for
further processing.

16. The most important factors to the
marketing performance considered by
HP Inc.
Brand
Awareness
Lead
Generation
Customer
Acquisition
Website
Traffic
Customer
Engagement
Customer
Retention
Sales
Repeat
Clients

17. How does HP Inc. India sales team
manage customer lifetime
engagement
• HP believes that happy partners lead to happy
customers
• upgrade, educate, inform and motivate its channel
partners
• HP believes in providing its customers an experience to
fetch more business.
• incentivizing and rewarding its sales force, the
employees of the channel partners are also rewarded and
groomed for excellence

18. Conclusion
From our discussion with tier-1 and tier-2 channel partners in
India, we understand that
• HP Inc. India has smooth and functional sales and
distribution channel in India.
• People are happy with the policies, motivation and rewards
provided by the organization.
• There are no strict and hard rules but the partners’ business
practices need to be fair and ethical.
• HP Inc. India believes in investing in human capital to grow
and penetrate in difficult geographies of India.

19. THANK
YOU