Hewlett-Packard Company
| Author | Susan Steiner, Chris Amorosino, Mark Lane |
| Pages | 717-727 |
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3000 Hanover St.
Palo Alto, California 94304
USA
Telephone: (650) 857-1501
Fax: (650) 857-5518
Web site: www.hp.com
In early 1996 the Hewlett-Packard Company began to rethink its role in the electronics products industry. Undisputedly the market leader for printers and other electronic products, Hewlett-Packard (HP) nevertheless saw the competition at its heels. Even more important, as technology became more "personalized" and accessible to the average person, the company was not sure it could rely solely on its history as a purveyor of electronic goods to businesses and institutions.
Hewlett-Packard turned to the San Francisco advertising firm Goodby Silverstein & Partners to create an ad campaign that would give it a more human face and present it as a company responsive to the needs of its customers. Goodby Silverstein designed "Built by Engineers, Used by Ordinary People," a campaign focusing on the new Mopier business printer and the 690 series of DeskJet printers for the home. The campaign, which ran from late 1996 until about the middle of 1997, was designed to appeal to both HP's core customers—businesses—and to recreational or home users of electronics. The consumer ads showed people in situations that could easily be made simpler by the use of Hewlett-Packard products, while the business ads showed the imagination and flexibility of HP's engineering capacity.
Like many pioneering companies of the 20th century, Hewlett-Packard was born in a garage. It was founded by engineers David Packard and Bill Hewlett in 1938. At the time the mission was to develop and market a resistance-capacity audio oscillator that could be used to test sound equipment. Hewlett and Packard's $538 in founding capital carried them through until the Walt Disney studios ordered eight of their devices. Then in 1941 the United States entered the Second World War, and an immediate overwhelming need for HP's instruments was created. After the war ended, the company lost its mainstay government orders and decided to seek clients in the private sector. Hewlett-Packard introduced its measuring devices into the flourishing post-war electronics industry. In 1972 the company pioneered personal computing with the world's first handheld scientific calculator, and it then went on to introduce the first desktop mainframe (in 1982) and the LaserJet printer (the first and most prominent of a line of printers for business and home), as well as copiers and scanners.
Although Hewlett-Packard held its position as the world's leading supplier of hard-copy products
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(LaserJet and DeskJet printers, DesignJet large-format printers and plotters, ScanJet scanners, OfficeJet printer-fax-copiers, CopyJet color printer-copiers, and HP FAX facsimile machines), the company became concerned in 1996 that it projected an image too cold and technological for the home-electronics user to relate to. Since HP had a growing customer base of individual consumers, it decided to focus on making its technology seem more accessible.
The resulting television and print advertising in the "Built by Engineers, Used by Ordinary People" campaign targeted two audiences: families with children and business professionals, particularly corporate executives, management information system (MIS) experts, and end users. Creative elements were designed to appeal to low-end users while at the same time showing off the products' high-tech features to viewers well versed in information technology.
Although Hewlett-Packard remained the market leader for printers, its largest competitors—Canon, Xerox, and Lexmark—were making strenuous efforts to narrow the gap. Also, as high technology moved into people's living rooms, the company saw that other makers of computers and electronic goods—such as Microsoft and Apple, among others—had been able to position themselves as interesting and cutting edge while Hewlett-Packard was viewed by consumers as reliable but stodgy.
Canon, the giant Japanese maker of business machines, cameras, and other optical products, presented a formidable challenge to Hewlett-Packard with its line of laser and BubbleJet printers. Marketing its products under the tag line "You can with a Canon," the company experienced strong growth in its printers during 1997. Canon targeted businesses with such products as the Digital GP215, a multifunctional digital device for networked workgroups that printed, faxed, copied, and scanned. The company also introduced the MultiPASS L90, another multifunctional system, and a new color laser printer, the CLBP 360PS. The BubbleJet continued to defend its market share with a very small and light personal model, the BJC-50, weighing only 900 grams.
Xerox Corporation, which introduced the first (manually operated) commercial xerographic product in 1949 and the first automatic office copier in 1959, made its first laser printer in 1977 and by 1991 was developing an extensive printer line. To highlight the company's evolution from copy machines to a wide range of business products, Xerox in 1994 adopted the tag line "The Document Company, Xerox" as its new corporate signature. As a document company, Xerox in 1997 introduced an array of specialized printer products for business, including a color printer for signs, banners, and billboards; a printer designed specifically for engineering needs; and the Xerox Productivity Centre System, which allowed users to scan, store, manage, electronically collate, distribute, print, and copy wide-format documents such as those used by architects, mapmakers, and graphic artists.
At the end of 1997 Hewlett-Packard launched a second advertising campaign, this one with the tag line "Expanding Possibilities." "Expanding Possibilities" grew out of reflections at the company that it was still perceived by consumers simply as the company that makes computer printers. HP had failed to establish a strong corporate identity in the way it wanted to be perceived: as an interesting, even sexy, maker of products that are relevant to the ways ordinary people live.
"Expanding Possibilities" differed greatly from "Built by Engineers, Used by Ordinary People" in that it did not focus on specific products. Rather, in recognition of the increasing role technology plays in everyday life, it asked viewers to think about the company as more than just the maker of business-related gadgets.
One way it did this was to make changes, albeit not drastic ones, in the company's use of color. Until then the boxes used to house the company's computers and printers had been a simple white, suggesting scientific prowess and accuracy but also sterility and lack of emotion. The company began using strong, vivid colors on its boxes, consumer manuals, and store displays.
Television ads (also developed by Goodby Silverstein & Partners) that began running in November showed new ways for people to use the company's products to make and transmit images. In one spot new parents use a Hewlett-Packard camera and computer to send out birth announcements over the Internet. In another, former Negro League baseball player Buck O'Neil uses HP printers, scanners, and computers to make and sell Negro League baseball cards online.
Lexmark brought up the rear in this august assemblage, but it was able to chip away at the other companies' lead during 1997. Lexmark, based in Lexington,
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Kentucky, was smaller than its competitors and had a narrower product range. It concentrated on laser, ink jet, and dot matrix printers and associated supplies that were comparable but lower-priced than Hewlett-Packard models. In November 1997 Lexmark won the first Annual Peripherals Excellence Award for network laser printers, beating out Hewlett-Packard and Apple.
The Hewlett-Packard advertising account had been held since 1988 by Saatchi & Saatchi in San Francisco, but the company decided against asking them to carry out the new campaign. According to the San Jose Business Journal, this was partially because of a 1995 print campaign that cost more than $30 million but failed to leave any lasting impression on consumers. Arlene King, peripherals-advertising manager at Hewlett-Packard, had another explanation for the move. "We wanted to get more visible advertising than we did in the past. We had been with Saatchi for eight years and we were becoming too alike." In May 1996 HP chose Goodby Silverstein & Partners in San Francisco to head the $40 million printer advertising account (Saatchi did, however, retain the PC portion of the Hewlett-Packard account). Goodby Silverstein & Partners had previously been known for creative and popular campaigns such as the "Got Milk?" ads for the California Milk Processor Board.
In consumer research, Goodby Silverstein found that most people associated Hewlett-Packard with technical strength and reliability. Therefore, the new campaign needed to link Hewlett-Packard's heritage as an engineering company and its reputation for building reliable products with the usefulness of HP products in "ordinary" situations. In short, the challenge was to humanize the face of technical prowess by giving complicated engineering a human face.
The $10.5...
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