Author(s): Feraidoon Raafat and Donald Sciglimpaglia
This case, set in 2018, presents a decision for HP Inc. involving a potential application of freemium marketing strategy for its Hewlett-Packard Photo Creations (HPPC) software product. The HPPC software had been offered by HP for free to stimulate printer and printer supplies usage. Although HPPC appeared to be making positive contributions to HP’s Print division by spurring the use of home printing, management wondered if it should consider responding to changes in the market environment, particularly in terms of how consumers create projects based on pictures and photographs and how they share them with others. HP is now considering what aspects of HPPC to change and if the Print unit should employ a freemium model. Management must address whether to continue offering the product for free and, if not, what product offering and pricing strategy to use.