Marketing strategy for the HP Envy Spectre 14 Ultrabook

¶ … HP Envy Spectre 14 is an Ultrabook manufactured by HP and a launched into various markets worldwide in February 2012. HP unveiled this series and appropriately billed it as a "premium Ultrabook." The computer is indeed premium since its starting price of $1,400 made it pricier than the much hyped about 13-inch MacBook Air (Wollman,2012).Some of its remarkable features include a standard 14-inch (1600 x 900 Radiance Display) as well as a CPU powered by an Core i5-2467M or Core i7 processes, 4GB RAM, a 9-hr battery, a backlit keyboard as well as an incredibly beautiful carrying case.

The Ultrabook has several other bells and whistles such as an NFC chip that is built into its palm rest to be used for transferring Uniform Resource Locators (URLs) from one's phone browser to the machine. It also features an Intel Wireless Display, Beats Audio Speakers, HP Wireless Audio, CoolSense technology, and full copies of registered proprietary software like Photoshop, Premiere Elements as well as a 2-Year subscription of Norton Internet Security. It also has upgrade options of an additional 4GB RAM as well as 256GB SSD. These features are obviously better than the ones found in competing products under the Ultrabook category. It is worth defining or rather elaborating on this new concept of "Ultrabooks."

What is an Ultrabook?

An Ultrabook is noted by O'Brien (2011) as a higher-end form of subnotebook as defined by Intel. The company has applied to register this name as a trademark (USPTO,2011).The Ultrabooks are specially designed to feature a reduced weight and size with a very expended battery life that does not compromise performance. They run on low-power Intel processes fitted with integrated graphics, a unibody chassis for fitting larger battery cases as well as solid state drives for increased responsiveness (Emmet,2011). Due to their relatively thin profile, they have a limitation to the number of external ports such as the USB ports (Milian,2012).

The aim and objective of the marketing plan

Aim

The aim of this marketing plan is to evaluate the internal and external environment of HP in order to come up with the best strategy for marketing and positioning HP Ultrabook Spectre 14 as a premium Ultrabook with the best features in the relatively young "Ultrabook" market segment.

Objective

The objectives of this marketing plan are:

1. To make HP Ultrabook Spectre 14 to be the best selling Ultrabook in world.

2. To make the sales of HP Ultrabook Spectre 14 exceed $30 million by the end of the 1st quarter.

HP Ultrabook Spectre 14's SWOT Analysis

SWOT is a special acronym used in the formulation of organizational strategy. The acronym stands for the internal Strengths and Weaknesses of a given firm or product as well as the Opportunities and Threats that exists within the external environment. The SWOT analysis technique is based on the assumption that any effective strategy is derived from a perfect "fit" between an organization's internal resources (the strengths and weaknesses) as well as situations in the external environment (opportunities and threats). A perfect fit maximizes the business' strengths and opportunities while effectively minimizing the weaknesses and threats. This a simple assumption if applied accurately leads to very powerful implications in the design of a successful business strategy. Through the relation of the strengths as well as weaknesses of a given marketing information system with the potential opportunities and threats within the environment where it is supposed to be implemented, an organization's management can weigh their impact on the organizational operations and then formulate a strategy by the application of the internal strengths as well as the external opportunities so as t reinforce the base of their strategy. The organization can also eliminate the threats and weaknesses (Grant,2005).

Strengths and Weaknesses being internal aspects of a given organization are noted by Kotler (1988) to cover the four key areas of marketing, manufacturing, financials and organizational.

Strong market position

HP is noted to have a very strong market position due to its strong control of sizeable market share of global PC and Printer sales. HP is the global leader in the IT market. Its market share has however seen a decline from 4.9% to 3.7% since 2003 as a consequence of the revenue used in acquiring new companies (Higley,2010).

The company has also gained shares in the server, PC as well as outsourcing and infrastructure software. The company has made its mark within the printing and imaging industry as its LaserJet printer line has lead by a huge margin in the U.S. local market (HP,2012). According to a research, the HP Laserjet printer line has outdone all the other venders in almost all categories for almost three consecutive quarters. Its printers have maintained a constant lead in various positions such as the paper size, printer speed as well as in the overall market share. The company's proposal to wind up its PC business never scared off its customers since its U.S.A and global market share has seen a considerable increase. Its number of shipments rose to about 28.9% from 25.4% within a year and thereby solidifying its market position (Satariano,2012).

A solid financial backing

The company has a market capitalization of $47.99. In 2010, it achieved a revenue of $30.7 billion, an 11% growth from the previous year. Its profits have also been impressive.

Good brand quality

The company is known for its insistence on quality. This has given it a competitive advantage. The HP Ultrabook Spectre is a quality product.It should therefore be marketed in respect of high quality and excellent performance/features.

Technological giant/use of cutting edge technology

High level of customer satisfaction and loyalty

The company enjoys a very high level of customer satisfaction and loyalty which translates to higher sales within the personal computer and enterprise solution market segments.

Leader in imaging technologies (printer and canner business)

The company is a leader in the global imaging industry.

Weaknesses

Flat spending in R&D

The company has for the last couple of years seen a reduction of its spending in research and development (R&D). This has really affected its rate of innovation (Dignan,2010). This tear though, it has doubled it .A sure sign of good things to come.

Low profitability in the PC and Printer business segment

Even though it is leader in the PC and Printer market segments, the company has not seen a very impressive performance in these market segments in comparison with the Enterprise Solution (Software) segment.

Weak internal controls

The company had in the past suffered losses attributed to weak internal controls.

Deteriorating level competitive advantage

The company has suffered from a general reduction in the level of competitive advantage due to minimal spending innovation.

Opportunities

Moving into new markets (BRIC countries)

The company can expand the sale and marketing of its products to the emerging and new markers such as BRIC countries.

An ever increasing customer base

The increasing numbers of IT users in the developed and developing nations can be tapped by the company.

Mergers and Acquisitions

The company can merge with or acquire strategic partners to help it in the manufacture, sale and marketing of its products and services.

Threats

Intense competition

The company suffers from a lot of competition from various companies. Its HP Ultrabook Spectre 14 product faces a stiff competition from Apple's MacBook Air.

The global economic recessions (Especially in USA and UK ).

The effects of the global recession that is still being felt in most countries around the world.It turn the level of consumer spending in technology has reduced tremendously.

Supply disruptions

Disruptions in HP supply due to political or management issues pose a weakness to the company and its products.

A likely entry of totally new products and technologies

The rate of technological evolution is too high. Newer and competing products like the iPads pose a threat to the HP Ultrabook Spectre 14.

Adverse government as well as regulatory policies

Certain government regulations such as high taxation rates pose a threat to the profitability of the company and its products like HP Ultrabook Spectre

Rip off from patents and trademarks

As noted earlier, Intel attempted to Patent the Ultrabook technology and trademark the name. This would cause serious drawbacks to the profitability of thee HP Ultrabook Spectre 14.

Recommendations

From the From the SWOT analysis HP can do the following;

Positioning

HP should position HP Ultrabook Spectre 14 as a premium Ultrabook and choose the rich and technology lovers and professional as its market segment. Segmentation and Positioning should be the key to the successful sale of the HP Ultrabook Spectre 14 product line.

Strong market position

HP can use its strong market position in influencing consumers that its HP Ultrabook Spectre 14 is the best Ultrabook.It can use the excellent product quality and parametsrs in wooing its customers. In fact it can target ist already existing customers as well as new ones.

Solid financial backing and M&A

The company can use its solid financial backing in marketing its products as well as acquiring a marketing company to help it in the marketing of its HP Ultrabook Spectre 14 product lines.

Moving into new markets (BRIC countries)

HP can market and sell its HP Ultrabook Spectre 14 product lines in the BRIC countries to the rapidly increasing middle and upper classes.

An ever increasing customer base

HP can market its HP Ultrabook Spectre 14 product line to the ever increasing customer base.