HISTORICAL CONTEXT OF THE YOU + HP CAMPAIGN

HP had a storied history of innovation and was a Fortune 100 company when Carly Fiorina took over as chief executive officer in 1999. Though the company was well known for its quality products and particularly for its printers, ‘‘it had become clear,’’ according to Advertising Age, ‘‘that HP had to do something to change its consumer image.’’ HP’s takeover of its rival Compaq in 2002—at a time when PC sales (the heart of Compaq’s business) were abysmal—raised further questions about the company’s direction in the precarious postbubble marketplace. Fiorina and Allison Johnson, HP’s senior vice president for global brand and communications, asked agency Goodby, Silverstein & Partners to answer these questions by showcasing the merger itself and then by focusing on other high-profile but previously unpublicized HP partnerships in a large-scale rebranding push that broke in the fall of 2002.
Ads touting the merger used an ‘‘HP + Compaq’’ graphic to show the strength of the partnership, and the ‘‘+’’ sign was then used as a unifying visual symbol in the larger branding campaign, which extolled HP’s contributions to an impressive array of corporate and institutional partners. The campaign was launched with ‘‘Anthem,’’ a television spot that, as Creativity magazine noted, ‘‘linked HP technology to bigger and cooler things—Dreamworks’ imagemaking, FedEx’s efficiency, BMW’s Formula 1 need for speed.’’ Other memorable ads were ‘‘Restore,’’ which brought figures from a Dutch master painting to life in order to illustrate the role HP played in restoring art for London’s National Gallery, and ‘‘The Next Shift,’’ which featured iconic toys—Slinky, Elmo, Spiderman, and others—commuting to work in Manhattan as a way of illustrating HP’s involvement in keeping Toys ‘‘R’’ Us stores stocked and ready for business. Creativity selected Goodby’s HP branding work as its campaign of the year for 2003, arguing that the spots had worked together to ‘‘render formerly square HP a magnetic new personality.’’
Meanwhile the rapid rise in popularity of digital cameras presented one of the few bright spots in the dismal technology sectors of the struggling American economy. As the 2003 holiday season approached, digital cameras were poised to overtake traditional cameras in yearly sales for the first time. Though HP was not known for its cameras, its wide portfolio of products meant that it was positioned to offer consumers an integrated system for home digital photography.

OVERVIEW OF THE YOU + HP CAMPAIGN

Long known as a reliable but predictable maker of computer printers, Hewlett-Packard Company (HP) was, in 2003, engaged in a recasting of its moribund image, a project initiated by HP’s chief executive officer, Carly Fiorina, after a divisive 2002 merger with computer company Compaq. That year HP unveiled its most ambitious consumer advertising campaign ever. The new campaign, called ‘‘You + HP,’’ featured HP’s digital cameras and imaging products, a segment of the Fortune 100 company’s operations that was seen as a major growth opportunity.
‘‘You + HP’’ supplemented an ongoing enterprise campaign that had introduced the ‘‘+’’ graphic as a means of showcasing HP’s partnerships with other companies and institutions and that further positioned the old-line company as a forward-looking, glamorous company in tune with twenty-first-century lifestyles. Developed by HP’s main U.S. advertising agency, Goodby, Silverstein & Partners of San Francisco, the campaign broke in October 2003 with the risky use of 20-page print inserts, first in USA Today and later in trendsetting magazines, and went on to feature some of the most talked-about television spots of the time. Directed by Franc¸ois Vogel, the television spots dramatized the digital-photography revolution with visuals integrating still frames and live action, while catchy pop music by the Cure (in the campaign’s first year) and the Kinks (in the second year) played as the spots’ sound track.
The print and television portions of ‘‘You + HP’’ were well received by industry commentators as well as the general public, and the campaign was credited with effectively updating HP’s image for a new generation of consumers. The campaign continued to evolve, and the company’s broader marketing efforts kept the ‘‘+ HP’’ idea as their starting point. HP’s change in direction, however, was not welcomed by all; the company’s board of directors ousted Fiorina in 2005.

OUTCOME OF THE EXPANDING POSSIBILITIES CAMPAIGN

Independent research showed that the ads were successful in changing the perceptions of consumers. According to Goodby, Silverstein & Partners, studies showed that the ads had helped Hewlett-Packard come to be perceived as a company that ‘‘empowers people to ‘make exciting things happen.’ ’’ People’s awareness that Hewlett-Packard made more than just printers also increased. In March 1998 the Business Journal of San Jose reported that Hewlett-Packard led the market as the top seller of workstations running off Microsoft Windows. It sold nearly 155,000 Windows-based workstations, or 42 percent of the market, in 1997. The journal attributed part of Hewlett-Packard’s success to the ‘‘Expanding Possibilities’’ campaign.
The original three ‘‘Expanding Possibilities’’ spots won two Icon Awards, and ‘‘Buck’’ won a silver Clio.

MARKETING STRATEGY OF THE EXPANDING POSSIBILITIES CAMPAIGN

To demonstrate the excitement of its new campaign, Hewlett-Packard hosted a gala announcement event in San Francisco on November 11, 1997. At the kickoff event Hewlett-Packard chairman Platt described the company’s image as ‘‘a lab coat that was empty.’’ The company had excelled at engineering prowess but never at savvy self-promotion. The new campaign aimed to add to the company’s strengths a new spirit of excitement, creativity, and innovation. Along with the new advertising, Hewlett-Packard introduced new product packaging, in-store merchandising, and vending machines for its ink-jet printer supplies.
The introduction of the ‘‘Expanding Possibilities’’ campaign meant dropping Goodby, Silverstein & Partners’ award-winning campaign that used the tag line ‘‘Built by engineers. Used by normal people.’’ One reason for the switch was to dispel the notion that the company was dominated by engineers. ‘‘The consumer brand strategy and advertising campaign aim to make the HP brand more relevant to consumers by revealing the company’s dynamic side and dispelling the idea that HP is only a printer company,’’ said the firm’s Antonio Perez. ‘‘People used to say HP was a great stealth marketer,’’ said Jill Kramer, the company’s marketing communications manager, in Adweek. ‘‘There’s been growing recognition with HP that our brand is truly an asset and that is something we should be investing in. We are becoming more visible and more aggressive.’’ Part of the reason for a move toward consumers was the rapid pace of change. With technology and products evolving so quickly, consumers were easily confused and often felt behind the times. Executives at Hewlett-Packard felt that a finely honed brand identity might attract consumers looking for a guide through the digital and technology jungle. In addition, the company recognized that the market for traditional business products was expanding to include in-home and consumer use. Lower-cost, higher-quality printers, scanners, and all-inone machines made the products attractive outside the typical corporate or business setting. The campaign also called attention to Hewlett-Packard’s Internet products, something it had been producing for years but had never promoted to the public.
Hewlett-Packard sometimes referred to the new campaign as ‘‘the real life campaign’’ because the strategy was to shine the spotlight on people not usually associated with technology. Grandparents and children were highlighted, and they shared their stories in their own words. The intent was not just to show what people could do with Hewlett-Packard products but also to demonstrate what the products could help people achieve. Hewlett-Packard products were presented as engines for consumers’ creative thinking. Although Hewlett-Packard wanted to change its image with the ‘‘Expanding Possibilities’’ campaign, there were certain elements in its marketing effort and image that were retained. The company logo and the display of the Hewlett-Packard name with the logo remained the same. The company also maintained continuity with its advertising agencies. Goodby, Silverstein & Partners continued handling the ads for Hewlett-Packard printers and scanners and for the company’s other computer equipment. Saatchi & Saatchi Advertising continued the advertising for the company’s Pavilion line of personal computers, and Winkler Advertising continued to create the company’s ads for laser printer supplies.

COMPETITION OF THE EXPANDING POSSIBILITIES CAMPAIGN

In 1997 and 1998 the consumer demand for sub-$1,000 computers continued to erode profit margins throughout the industry. Many major computer manufacturers responded by going after small and medium-sized businesses and by launching large-scale e-business ventures. The top marketers supported these moves with glossy multi-million-dollar brand advertising campaigns. IBM made the first and most dramatic move in this direction with a $130 million e-business initiative that targeted businesses using the Internet.
Among Hewlett-Packard’s other competitors were Compaq, Dell, and Apple. Compaq spent some $102 million on advertising in 1997 and planned to double the amount in 1998, when it launched its first global brand campaign. Dell spent $43 million on ads in 1997 and planned to double the amount in 1998 to brand itself as the originator and leader in selling directly to the consumer and in providing technical support services to its customers. Apple spent $47 million on its ‘‘Think Different’’ campaign, which aimed to link the company’s computers with Einstein, Picasso, and other creative people.

TARGET MARKET OF THE EXPANDING POSSIBILITIES CAMPAIGN

The primary target of the initial ‘‘Expanding Possibilities’’ ads was families with children, but the company also wanted to become better known among small businesses, microbusinesses, and the owners of home businesses. Both business owners and workers were targeted. In Canada, Hewlett-Packard made a direct appeal to entrepreneurs and the self-employed. According to Statistics Canada, the latter group numbered 1.8 million, up 28 percent from 1991 to 1998.

HISTORICAL CONTEXT OF THE EXPANDING POSSIBILITIES CAMPAIGN

Two Stanford University engineers, William Hewlett and David Packard, founded the company with $538 in a Palo Alto garage in 1939. Their first major customer, Walt Disney, bought oscillators to help make his film Fantasia. In the 1970s and 1980s Hewlett-Packard became known as an entrepreneurial high-tech company, and it has been credited with establishing Silicon Valley. For years it made the lists of America’s best-managed companies. By the late 1980s, however, the company seemed entrapped in a bureaucratic jungle, with burdensome decision making by consensus and other organizational problems. In 1990 Hewlett-Packard was reorganized, and cost-cutting measures included voluntary severance and early-retirement programs. The company’s single sales force was divided by product lines, and administrative and manufacturing areas were consolidated.
During its history Hewlett-Packard had always been much better known in the business community than among general consumers. It was the world’s second largest computer supplier and a leading provider of electronic products and systems for computing, measurement, and communications. But it did not use advertising to appeal directly to consumers. Lewis Platt, then the chairman, president, and CEO of Hewlett-Packard, said that 18 months of focus group testing showed that the public felt the company to be trustworthy and reliable but did not view it as innovative. Hewlett-Packard’s reputation stemmed from its engineeringdominated culture, and while people judged its products to be of high quality, they perceived the company as being technical and impersonal.
In addition, the company’s decentralized structure contributed to its fragmented marketing efforts and prevented it from taking full advantage of consumer interactions. For example, the owners of Hewlett-Packard’s 75 million ink-jet printers bought from two to five new cartridges a year, but the company did not have a plan to take advantage of these customer contacts. Hewlett-Packard’s vision of the future included a blending of consumer electronics, including PCs and communications and entertainment products, with new product categories emerging. The company’s goal was to prepare to become the largest consumer electronics supplier by the early 2000s. This would mean becoming much better known among consumers. As the technology battleground moved into the home, however, Hewlett-Packard had to prepare to compete with electronics and entertainment companies such as Sony and General Electric that already had a much higher profile with consumers and that were viewed in more positive terms.