Compaq Notebook Marketing Strategy

Compaq always market their portable line up based on what is most needed by customer requirements. 

Compaq has introduced two lines of notebook, targeted to two different market segments. One is the home and office that is also known as consumer market and the other one is the corporate market.  The two were differentiated by their added value that is most suitable to the target market.

To start with home and office products, the models are designed especially based on customers’ inputs and feedbacks regarding the look, color, and ease of use. The product is designed under the brand name of Presario and it was created with the latest technology available with exceptional graphic and multimedia performance; that mostly requested by the users. 

Small Office Home Office users frequently look for a machine that can help and ease them with “homey/friendly” technology features; such as games, transferring data from digital camera or video at speedier rate, audio/video player and at the same time own a basic PC function. 

For example, all Presario notebooks was put together with the ability to transfer digital video data a lot faster with the IEEE 1394 or mostly known as Fire Wire feature. 
Other features was to function Presario notebook (found in Presario 1700 model) as an audio stereo player, where users can close the notebook and still have the ability to control the audio panel settled right in front of the keyboard.  No matter what you do in the house, you still can utilize this machine. 

On the corporate side, we are targeting to those companies who concerned on the most reliable and stable network environment, that requires longer product life cycle and value the total cost of ownership supported by the products.  For this market segment, currently we have two brands run simultaneously, Armada and Evo. 

The advantage of the corporate notebook line up is proven stable network and communication  capability with fast infra red capability. It offers common options for most of the models, such as power adapter, memory, optical drives (HDD, FDD, CD-ROM, DVD, CD-RW) and docking solutions. Whereas the users can interchange the optical drive or add/remove docking solutions between models offered. For example, if  a group of user of ten needs CD-RW, the company does not necessarily purchase ten CD-RW to fulfill the requirements, the company can purchase only five CD-RW to be share among the users. The Compaq Armada E500, M700, and Evo N400C share a common options so there will be no problem if the ten users using different model of machines above. They can also exchanges options as they deem it necessary.

For expanding the machine capability, the company can purchase a docking solution to either expand their hard disk capability or increase the number of their PCI slots and at the same time use the docking solutions as port replicators that can help the user in cable management issue. The great thing about our docking is that “hot docking” meaning user do not need to turn off the unit while docking or undocking.  

To enhance the purpose of being classified as corporate notebook, all Armada and Evo is equipped with a management software pre-installed, called as Intelligent Manageability. The benefit of this system is that user can or will receive pre-alerted messages on the screen before any malfunctioning system happen.  For example, if there is a bad sector on users’ C drive, the management system is even capable to show the location of the bad sector directly.  

More advantage to this notebook line up is each unit sold, are equipped with a quick restore CD; which enable the system to return to a manufacturing set-up, should there be a system failure. With a pre-failure warning, users can prepare to back up all data and files before QRCD is used. 

All Compaq Notebook is guarantee for limited international warranty for at least one year, except for the N400C and M700 model that get three years international warranty on spare parts and labor.

To get the benefits for on-site services, users can get Armada Express Kit for free (only on limited time and models). The Armada Express Service provides users to feel protected by the availability of Compaq Call Center in assisting any technical problem occurred and guarantee the fix up resolution time in 24 hours return. A courier will be dispatched by Compaq office should any technical problem cannot be solved over the phone in four hours. We would also offer a loaner unit should the user request to have one while his/her unit are being repaired. 

On the security side, Compaq notebook offers the Compaq Drive Lock feature where users can lock the hard disk with a password. Users can protect their most valuable data by keying in the password on the hard disk. For example, if something extreme happen such as user notebook is stolen, the data inside the hard disk cannot be tampered with, even if the thief move the hard disk to another set of notebook. 

To protect the thin and light notebook models, we build the units with magnesium alloy materials on the panel, which is proven 40% tougher than regular plastic used by our competitors. The main purpose is to protect the panel/screen that is most vulnerable in the thin and light models.
Compaq Spill Proof Keyboards

To promote Compaq notebook, we use different marketing strategy to approach the correct segment. In the home and office/consumer market, we relied heavily in demand generation activities such as exhibition, advertising, and working together with another institution to promote the units.  

In the corporate side, Compaq will penetrate medium to large companies by visiting and presenting the value and benefit of the notebook that suited to customers’ requirements and needs. Apart from it, we also educated our dealers regarding positioning and benefits of the products, so we will have an extra arm to reach more customers out there. 

Source: IDC Asia Pacific Q2 Report

Market Share	2000	Q1 2001	Q2 2001	
				
Home & Off	56.5%	82.6%	72.4%	
				
Corporate	20.1%	18%	13%	
				
Total CPQ NB	22.3%	25.3%	17.2%