Only the other day, buying a laptop meant checking its specifications (hard disk, RAM, interface, etc) and the weight it would put on one?s shoulder. Buying equation has changed a lot today.
Now, we want laptops that come with more than just functionality. With market expanding beyond professionals to students and housewives, vendors are working hard on capturing the consumer tastes in their vivid product ranges. Action is no more limited to R&D and shopfloor assembly line. Channels are also buzzing as computer makers communicate the new themes to the consumers.
Channel strategies across PC segments have changed over the years. To begin with, desktops are fast giving way to notebooks. According to DisplaySearch, which tracks display market research and consulting, increasing transition of consumers from desktop PCs to notebook PCs has a direct impact on brands? growth and market share. Brands with established enterprise and retail presence have managed a high level of success in expanding the market share.
John Jacobs, director of notebook market research at DisplaySearch informs that some brands have been able to penetrate the fast-growing small and medium business (SMB) segment by means of a dedicated product line or through an aggressive channel strategy.
According to Gartner, mini-notebooks make for a strong emerging category of mobile computing devices, with worldwide shipments expected to reach 5.2 million units in 2008 and 8 million units in 2009. Potential users could include both first-time buyers seeking a low-cost introductory PC, or experienced users seeking a low-cost second or third PC.
?Consumer mini-notebooks need to be positioned differently than standard notebooks. PC vendors will need to decide whether the existing channels for marketing are appropriate and possibly look for new channels like telecom or gadget shops,? points out Annette Jump, research director at Gartner.
Thankfully, the vendors in India are already taking a note. As far as notebooks are concerned, the traditional mode of channel partners make about 90% of overall sales at brands like HP and Lenovo. It also encompasses the new-age retail outlets on the lines of exclusive brand stores and multi-brand chains like Chroma, Jumbo and Next. No wonder, the changing times have even pushed the not-so-direct brands to take notice.
Take for instance Dell?s commercial partner programme called PartnerDirect, which is focused on strengthening the PC maker?s relationships with its channel partners. Under this, solution providers can enjoy access to joint marketing programmes and dedicated sales and customer care. In addition, Dell aims to reach out to the customers beyond the metros, into the country?s tier-1 and tier-2 towns and cities. The logic behind the programme is that it will play a key role in providing customers with more choice, flexibility and value ? when investing in Dell solutions.
Even otherwise, brands believe that channel partners help in strategising for a customer outreach programme in a specific region, as they have a better understanding of the customer needs in that region. ?This helps tremendously in new and emerging cities,? says Sameer Mathur, head, solution partners organisation, HP India. The company has over 3,500 channel partners working closely with them. It provides training to the partners to take the brand ethos forward and support them in whatever way possible, adds Mathur.
?The brand is helping us strategise to sell better by means of providing regular training to our store personnel,? says Vikas Dewan, CEO, Strategic Marketing, a strong HP retailer in Uttar Pradesh since 1999. ?In addition, the company?s call centre helps us reach out to every caller in our region,? he adds.
Looking at the laptops specifically, does the changing style statement bother the sellers? To Dewan, style has indeed made the laptop selling interesting. A vivid range definitely helps because it is difficult for a seller to find out what might click with a customer profile that could differ vastly from an adult to a small boy. ?With new and reformed models reaching the store, we don?t have to worry about losing the customers to other brands,? he adds.
Gartner India?s principal analyst for client computing markets (Asia pacific technology and service provider research), Diptarup Chakraborti feels laptops and other new computing devices have the potential to change the channel strategy and retail model for the overall PC market. For him, the days to pick a laptop from a shady shop at Nehru Place are gone. New-age stores, at right locations (airports, corporate campuses and B-schools) manned by trained and informed people, backed by efficient guarantee and service, are the way to go.
?Channel strategy depends a lot on the brand?s philosophy. Brands like Acer would like to push for brands in smaller cities, while others like Apple would do the opposite. Brands like HP with a laptop for everyone have most to do here,? he points out.
Obviously, the channel strategy to sell notebooks varies from brand to brand. It could also differ in case of markets (among Indian cities too). While bigger cities that have a more mature market could have multiple channels, with above and below the line activities (remember HP?s laptop range on display at the Wills Lifestyle Fashion Week?) to an introductory awareness exercise about the brand in the new cities. ?Notebook is where style is: design and channel strategy included,? concludes Chakraborti.