Hewlett-Packard Company: SupportPack: From Creative Service Packaging to Channel Marketing Architecture

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Hewlett-Packard Company: SupportPack: From Creative Service Packaging to Channel Marketing Architecture

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Research Abstract

Hewlett-Packard Company (HP) introduced the HP SupportPack in the United States in 1993. Its origins however, go back to 1990 when the idea of packaging services for the dealer channel-e.g., “service in a box”-was piloted by HP in the United Kingdom. The original concept was to simplify the buying and selling of services for low end products by packaging them like shrink wrapped software, which better fitted the channel partners’ business model, i.e., buy, inventory and sell products. HP SupportPack services were purchased and inventoried like products and sold much like a low cost software product at time of product sale. In the process HP provided the dealer channel with higher margins and in turn, experienced increased service revenue.