Image of Hewlett Packard Indonesia: Original Inks Contemplates Progress Against Substitute Product Penetration

Hewlett Packard Indonesia: Original Inks Contemplates Progress Against Substitute Product Penetration

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Publisher :IPMI , 2003

During 2000 until 2003, this industry showed better growth compare to PC industry. It happened because this industry has improved the product technology. Technology of printer industry has been developed to fulfill customer demands and created segmentation of the products. In Indonesia, there are 3 big printer vendors each of them become market leader for each printer segment.

Ideally printer vendors should be the ink vendors. Because of printer price lower from time to time, vendors would like to get profit from consumable product, one of them is ink. Ink gives a good profit to vendors if there is no substitute product or counterfeited product. The ink industry currently is facing big challenge to increase their sales by reducing the usage of non-original products.

Hewlett-Packard divides the business into four core business groups, such as: Enterprise Systems Group (ESG), Imaging and Printing Group (IPG), HP Services (HPS), Personal Systems Group (PSG). This chapter will be focused on IPG performance in term of 4Ps. HP is the leading provider of printing and imaging solutions for both business and consumers. IPG includes printer hardware, all-in-ones, digital imaging devices such as cameras and scanners, and associated supplies and accessories. It also is expanding into the commercial printing market.

There are several types of printer, namely laser printer, inkjet printer, solid ink printer, dye- sublimation printer, thermo autochrome printer, thermal wax printer and dot matrix printer. However, The technology unwrapping on how it works and what inside a printer will be focused to the two dominant printer, laser and inkjet.

Basically there are three types of exploitation to the original inks:

- Counterfeited inks

Counterfeiting could be defined as the unauthorized application or use of a trademark on goods that do not originate from or with the approval of the brad owner.

- Remanufactured inks

Remanufacturing can be defined as the process of restoring worn and durable products to like-new condition. Once the product has been restored to its like-new condition or performance, it can be sold as remanufactured goods.

- Refilled inks

Unlike the remanufactured inks, which going through production process, refilled inks producer is merely selling ink.

HP is fighting a global battle against the makers and sellers of counterfeit HP printer cartridges. The company has introduced inkjet cartridges in tamper-proof boxes in large Asian and Latin American countries where cartridge counterfeiting is widespread. In order to facilitate the consumer to recognize the counterfeited product, HP has introduced several means of labeling the original packaging. HP also tried to educate the consumers by spreading the knowledge of how to identify counterfeited print cartridges.

What is market segmentation, why is it important to be understood and how it could help marketers to design a marketing strategy?

The common used elements of market segmentation:

- Geographical segmentation

- Demographic segmentation

- Psychographics segmentation

- Behavioral segmentation

Exploring the current situation of printer & ink market by combining facts that somehow related to the basic theory elaborated in advance.

Understanding segment growth, segment structural attractiveness as well as company objectives & attractiveness.

In relation to the ink product, dividing the market into two major categories: Business I Corporate market & Individual market. Each of the divined market is explained in more detail . Exploring & understanding the consumer's buying attitude toward ink products through market research analysis and other resources acquired. How do originals & non-originals appeal to the consumers, how it affects the current original market and what makes consumers switch. Understanding the importance of consumers buying behavior to create more awareness in all necessary aspects. Highlighting the importance of understanding consumer's behavior toward a product. A well-structured strategy has to be prepared before launching a certain product or program.

Research Location: Hewlett-Packard

Supervisor: Liza Felicia Wulandari, MBA, PhD.

Accepted: 1 December 2003

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Publisher Place Jakarta
vii,82p. : figs., tabs., apps. ; 27 cm.

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