Hewlett Packard Segmentation Analysis
By Erik Arvidson
Hewlett Packard, one of the world's largest manufacturers of computers, printers, laptops, digital cameras and other electronics, built a leadership position in many product areas by using a profitable segmentation strategy that targeted markets its competitors were not meeting.
Rather than try to meet all photography printing needs, HP created photo printing products that Kodak and other companies were not targeting. These include HP's PhotoSmart printing products, which featured printers that connected to a telephone line so that publishers needing electronic delivery of photos would be able to call a subscriber's printer.
In the 1980s, when personal computers were growing in use, HP recognized a need for business users to print copies of business collateral and introduced the LaserJet brand printer, which helped launch the desktop publishing boom. HP also created other printer models that were easier to use and targeted families who were increasingly using computers. The company convinced many discount retailers to carry the printers.
After HP merged with Compaq in 2002, HP was able to reduce its marketing spending by 15 percent. The company did this by using a marketing resource management solution that used data to give it better insights into its customers' needs, guiding its customer segmentation strategy.
Erik Arvidson has 12 years of professional writing experience, including six years as a senior reporter at the Massachusetts Statehouse for several suburban dailies, and most recently as PR Manager of a telecommunications company near Boston. He received a Bachelor of Arts degree in English/communications from North Adams State College.