Desktop
HP-Compaq lead the pack
While HP-Compaq didn’t fare well on channel preference in the notebook and netbook category, in desktops it was ranked number one, followed by Acer, HCL, Lenovo and Dell.
This was largely because HP-Compaq had the largest portfolio of desktops, and was also the most aggressive in pushing them at a time when vendors like Lenovo and Dell were focused on notebook sales.
Acer ranked second; assisted by its low-cost eMachines brand. With its exclusive distribution partnership with Supertron, Acer managed to penetrate smaller cities and price-conscious customer segments.
HCL got nearly 80 percent of its votes from smaller cities, proof that it continues to enjoy a formidable channel connect in class C cities. Lenovo scored ahead of Dell because in the second half it increased its focus on desktops and also launched several customer schemes that helped increase demand.
Product availability
Despite complaints of over-distribution by many respondents, HP scored higher than peers. Respondents said that the company’s Compaq range has the widest offering in the market and is also the most popular.
Acer launched its multi-brand strategy in Q2 2009 by launching the Gateway and eMachine brands. While Gateway was exclusively offered through LFRs, eMachines made a mark among channels because they were price-targeted at the sub-Rs 12,000 category and pushed exclusively by Supertron.
HCL has strong penetration in class C cities, and many partners in class A cities who earlier sold HCL said that demand for HCL has come down substantially.
Lenovo ramped up its desktop focus only in the second half of 2009. It ran good customer schemes which helped create demand. Many respondents said that because Dell wasn’t aggressive with its consumer range they sold Vostro desktops to consumers.
Price-performance
HP-Compaq dominated this parameter owing to its wider portfolio and a strong perception that it offers better performance and features than its peers. The company also ran some very good schemes such as offering UPS on the desktop which helped increase the perceived price-performance value of the brand.
Acer came second, followed by HCL, Lenovo and Dell. Acer offers the best price in the desktop segment with its multiple brands. In small cities, HCL is perceived as value-for-money. Respondents said that while Lenovo has exciting-looking and feature-rich desktop models, it still needs to get its pricing right.
Partner profitability
According to respondents, HCL offers the best margins to partners, with some respondents saying they make double digits on HCL desktops.
Lenovo ranked second followed by Acer, Dell and HP. Lenovo attained this rank as it ran channel schemes which provided benefits to even small retailers selling less than five units per month.
Respondents said that while Acer products don’t offer attractive front-end margin, the back-ends offered are better than those for notebooks. Dell offers resellers a 3 percent margin on desktops; they don’t have any channel schemes which would give an opportunity to resellers to earn more.
Over-distribution continues to hamper the profitability of HP partners.
Marketing and training
HP-Compaq enjoys the strongest customer pull. The company ran customer promotions such as free UPS, printer and camera, which worked well for partners. While there were delays in customer redemption, they weren’t as long as the delays for printers. Lenovo too ran similar schemes, offering free UPS and printer.
Acer was ranked third on this parameter followed by HCL and Dell. While Acer offered gift vouchers, HCL offered entry-level Nokia and Motorola phones on desktop purchases. Acer’s channel schemes offering gold coin and free trip abroad were appreciated. Dell lacked noteworthy schemes for both customers or channels.
Post-sales support
HP ranked higher on post-sales support for desktops followed by Acer, HCL, Lenovo and Dell. HP-Compaq did better on desktop support than notebook support. After HP-Compaq, Acer has the largest network of local service centers among desktop vendors, and this gives them an edge over others. HCL has a stronger post-sales infrastructure in smaller cities compared to Lenovo and Dell. Respondents said that they have not sold many Dell and Lenovo consumer desktops, so have very little experience with their post-sales support.
However, it needs to be mentioned that Dell’s strategy of providing onsite support has compelled other brands to provide onsite warranty options to customers at nominal charges.
Channel policy and management
Lenovo ranked first on this parameter as respondents appreciated its new channel engagement policies. HCL came second followed by HP. HCL engages closely and regularly with channels in smaller cities and is also swift in addressing any channel issues. It has also remained consistent with its channel policies. HP fared better on this parameter thanks to customer promotions that helped resellers sell more.
Acer ranks fourth on overall policy and management. Resellers who sell its products but aren’t authorized partners feel that the schemes Acer runs are exclusively for authorized partners, and don’t benefit them. However, among authorized partners, Acer’s policies were much appreciated. While partners are happy with the way Dell is handling its notebook business, they feel that it needs to run schemes that help them sell better.
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