HP to focus on upcountry market

NEW DELHI: After achieving an installation base of one million Deskjet

printers in India, Hewlett Packard (HP) will now invest in the upcountry market

to increase Deskjet penetration. The company has selected 25 non -metro cities

all around the country in this regard.

Speaking on the upcountry investment part of HP, Princy Bhatnagar, Market

Development Manager, Consumer Peripherals, HP India said that PC Deskjet connect

trend is widening because of upcountry PC penetration " We have already

chosen some non-metro cities to exploit the potential." He also said that

there are greater probabilities of connect in upcountry market than in metros.

Emphasizing on the region wise split he said, " The metros will have a

technical leap and rate of growth would be almost twice in these non- metro

cities as compared to metros. This is the reason we have decided to put our

support infrastructure in these 25 non- metro cities. The first step in this

regard is to expand billing locations to bring stability in the prices and for

this we are identifying channel locations in these cities", he added.

Announcing the achievement of installing one million deskjets in the country,

Princy said, "We attribute the success to our continuous focus on consumers

to provide them the best value proposition."

He also said that the company has sold 29,000 deskjets per month in the first

quarter of 2001. Emphasizing on the fact that the company is dominating the

market in this segment by 65 per cent market share every year, he said that it

is company's responsibility to take the market in the right direction.

" Driven by the Home and SOHO segment, Deskjet market will continue to

grow by 36 per cent and this will make the Laser printer market a little

stable." Princy insisted. He also said that other growth area for Deskjet

printers is the small medium business in the coming few years but it would taper

down by 2002 and migration to laser would start.

He also laid thrust on some new market creation opportunities that include

digital imaging market targeted at traditional photographers and jewellers and

in this regard the company has also launched its new 'HP Deskjet 930C photo'

printer. Priced at Rs 9,999, this printer comes in a combination of metallic

silver and black. It features easy to use software 'Fotolab' and 'Fotoreplica'

which gives an experience of digital photography.

Speaking on the channel strategy of the company, Princy said that retail

would continue to contribute 15 per cent of the total revenue and the company

will re- invest 25 per cent of revenue of retail in the awareness activities

with the support of retail partners. " The company will also focus on

sub-distribution approach in the commercial channel and mange top 100 districts

sub districts directly," he added.

Speaking on the upcoming technical trends he said that digital photography

would drive need for photosmart printer and the inception of bluetooth

technology would lead in the consumerization of printers.