Class Discussion 2 - HP.doc

Case I – Marketing on the 1-500-021
Instructor: Clare Sham Rev. March 22,2000
HP Consumer Products anization:
Distributing Printers via the
In spring 1998, Pradeep Jotwani, vice-president arid general manager of the Consumer Products anization of the Hewlett pany (HP), was contemplating the increasing ess of eCommerce and its implications for his division. The consumer products group had started selling refurbished printers through an outlet center in December 1997, but Jotwani was now considering a move to sell new printers directly to consumers via this new eChannel. If he were to make such a move, he wondered which products to sell online at what prices, and how municate this strategy to the channel partners without damaging the existing distribution structure. mented:
Channel inflections are very challenging. The last time we faced a similar situation was when we had to transform ourselves from being a predominantly business-to-pany that sold printers through value added resellers [VARs] to a consumer pany that had to reach consumers through the retail channel. Even then there were the doubters, but not only did we make the transition essfully, but we also emerged stronger. The challenge today is to decide on the level of strategic emphasis on distribution so that we emerge stronger after the transition, rather than just defending our position.
The decision plicat