Professional Documents
Culture Documents
INTRODUCTION…………………………………………………………………………….2
PRODUCT INTRODUCTION………………………………………………………………2
ADVERTISING METHODS………………………………………………………………..10
ACTIVITIES OBJECTIVE…………………………………………………………………11
REPORT…………………………………………………………………………………….16
REFERENCE……………………………………………………………………………….17
Introduction
Product Introductions
Dell Inc. (stylized as DELL) was a multinational computer technology company based in
Round Rock, Texas and, along with Dell EMC, is a subsidiary of Dell Technologies, one
of the largest technology companies in the world with 138,000 employees. Dell
manufactures, sells, repairs, and supports personal computers (PCs), servers, data
storage devices, network switches, computer software, computer peripherals, high-
definition televisions, cameras, printers, and electronics built by other manufacturers.
The company is well known for its innovations in supply chain management and e-
commerce, particularly its direct-sales model and its "build-to-order" or "configure to
order" approach to manufacturing—delivering individual PCs configured to customer
specifications. Dell is eponymously named after its founder, Michael Dell. With a market
share of 15.9%, Dell was the third largest PC vendor in the world in the first quarter of
2017, after Lenovo and HP Inc. (formerly The Hewlett-Packard Company). In the first
quarter of 2016, Dell was the largest manufacturer of computer monitors in the world,
with a market share of 16.8%. Dell was the third largest employer and largest private
employer in Austin, Texas. On September 7, 2016, Dell Inc. merged with EMC
Corporation (now Dell EMC) and both companies became subsidiaries of Dell
Technologies.
In 1986, Michael Dell hired Lee Walker, a 44-year-old retired investment banker and
venture capitalist, as president and chief operating officer, to serve as mentor and to
implement Dell's ideas for growing the company. Walker reorganized the management
staff, was instrumental in securing the company's first line of credit from a bank of $10
million, and was also instrumental in recruiting members to the board of directors when
the company went public in 1988 such as George Kromesky and Bobby Ray Inman.
Walker retired in 1990 due to ill health, and Michael Dell hired Morton Meyerson, former
CEO and president of Electronic Data Systems to transform the company from a fast-
growing medium-sized firm into a billion-dollar enterprise.
By early 1987, Dell's factory was producing 7,000 computers per month, each built to
customers' specifications. In 1987, the company had $70 million in annual sales and
$2.1 million in net income. This represented approximately a market share of 1%,
compared to 30% for IBM, 8.2% for Apple Inc., 5.2% for Compaq, 5% for Olivetti, and
4.4% for Zenith Electronics. The company spent $3 million, or 4% of sales, on
advertising. Dell also offered journalists from major computer magazines the opportunity
to test its products, which gave it further good publicity when positive articles were
written in these publications. Dell was known for its excellent customer service, with
90% of complaints resolved in a single phone call. In early 1987, Dell began offering a
computer service/repair plan by Honeywell for $35 per year. Dell raised capital in a
private placement in 1987.
In 1988, The company changed its name from PC’s Limited to Dell Computer
Corporation. In June 1988, Dell raised $30 million of new capital, issuing 3.5 million
shares at $8.50 each, becoming a public company via an initial public offering.
In 1989, the company introduced its first laptop computer, the 316LT. In 1990, the
company opened a manufacturing facility in Limerick, Ireland to serve clients in Africa,
Europe, and the Middle East.
In 1992, Fortune magazine included Dell Computer Corporation in its list of the world's
500 largest companies, making Michael Dell, at 27 years old, the youngest CEO of a
Fortune 500 company ever.
In the late 1980s and early 1990s, sales of computers at retail stores by competitors
increased significantly. To complement its own direct sales channel, Dell signed
agreements to have its computers sold at CompUSA and Staples Inc. stores. However,
selling via middlemen was not very profitable for Dell. Bain consultant Kevin Rollins
persuaded Michael Dell to pull out of these deals. Margins at retail were thin at best and
Dell left the reseller channel in 1994. In 1996, Rollins joined Dell full-time.
Originally, Dell did not emphasize the consumer market, due to the higher costs and
unacceptably low profit margins in selling to individuals and households; this changed in
1996, when Dell.com reached $1 million in daily sales within 6 months of its launch.
While the industry’s average selling price to individuals was going down, Dell's was
going up, as second- and third-time computer buyers who wanted powerful computers
with multiple features and did not need much technical support were choosing Dell. Dell
found an opportunity among PC-savvy individuals who liked the convenience of buying
direct, customizing their PC to their means, and having it delivered in days. In early
1997, Dell created an internal sales and marketing group dedicated to serving the home
market and introduced a product line designed especially for individual users.
Dell originally had its headquarters at 9505 Arboretum Blvd., in the Arboretum complex
in northern Austin, Texas. In 1996, the company moved its headquarters to Round
Rock, Texas.
From 1997 to 2004, Dell enjoyed steady growth and it gained market share from
competitors even during industry slumps. During the same period, rival PC vendors
such as Compaq, Gateway, Inc., IBM Aptiva, Packard Bell, and AST Research
struggled and eventually left the market or were bought out. The company attained and
maintained the #1 rating in PC reliability and customer service/technical support,
according to Consumer Reports, year after year, during the mid-to-late 90s through
2001. Dell surpassed Compaq to become the largest PC manufacturer in 1999, with
16% market share. Operating costs made up only 10% of Dell's $35 billion in revenue in
2002, compared with 21% of revenue at Hewlett-Packard, 25% at Gateway, and 46% at
Cisco. In 2002, when Compaq merged with Hewlett Packard (the fourth-place PC
maker), the newly combined Hewlett Packard took the top spot but struggled and Dell
soon regained its lead. Dell grew the fastest in the early 2000s.
In the mid-1990s, Dell expanded beyond desktop computers and laptops by selling
servers, starting with low-end servers. The major three providers of servers at the time
were IBM, Hewlett Packard, and Compaq, many of which were based on proprietary
technology, such as IBM's Power4 microprocessors or various proprietary versions of
the Unix operating system. Dell's new PowerEdge servers did not require a major
investment in proprietary technologies, as they ran Microsoft Windows NT on Intel
chips, and could be built more cheaply than its competitors. Consequently, Dell's
enterprise revenues, almost non-existent in 1994, accounted for 13% of the company's
total intake by 1998. Three years later, Dell passed Compaq as the top provider of Intel-
based servers, with 31% of the market. Dell's first business acquisition occurred in 1999
with the purchase of Convergent Technologies for $332 million, after Dell had failed to
develop an enterprise storage system in-house; Converge Net’s elegant but complex
technology did not fit in with Dell's commodity-producer business model, forcing Dell to
write down the entire value of the acquisition.
Dell opened plants in Penang, Malaysia in 1995 and 2002, and in Xiamen, China in
1999. These facilities serve the Asian market and assemble 95% of Dell notebooks. In
1997, the company opened its second manufacturing facility in Texas and shipped its
10 millionth computer.
Dell's first European manufacturing facility opened in 1990 in the Raheen Industrial
Estate near Limerick, Ireland.[39] The plant was expanded in 1996 and again in 1999
with a $90 million expansion that brought the total workforce there to 5,800 people.
By 2000, the Dell.com website was generating $40 million in sales per day and Dell's
sales reached $25 billion per year. Rollins became President and COO in 2001.
In 2000, Dell moved its corporate headquarters and executive offices to the Las Cimas
office complex in Travis County, Texas, between Austin and West Lake Hills. The
company leased 80,000 square feet (7,400 m2) there, but in early 2002, the company
announced that it would move its headquarters back to Round Rock and would
sublease its offices in Las Cimas. The subleases were completed in May 2003.
In 2002, Dell expanded its product line to include televisions, handhelds, digital audio
players, and printers. Chairman and CEO Michael Dell had repeatedly blocked
President and COO Kevin Rollins's attempt to lessen the company's heavy dependency
on PCs, which Rollins wanted to fix by acquiring EMC Corporation. In 2002, Dell started
the Dell Direct Store model, opening kiosks in malls and airports in the United States to
allow customers to examine products before buying them directly from the company,
eventually opening 140 kiosks.
In 2003, the company changed its name from Dell Computer Corporation to Dell Inc. to
recognize the company's expansion beyond computers.
In 2003, Dell consolidated its operations at its Castletroy facility, formerly occupied by
Wang Laboratories and Flextronics into its Limerick facility and the Castletroy facility
now operates as a movie studio.
In 2004, Michael Dell resigned as CEO while retaining the position of Chairman,
handing the CEO title to Kevin Rollins, who had been President and COO since 2001.
Despite no longer holding the CEO title, Dell essentially acted as a de facto co-CEO
with Rollins.
Marketing Plan
Dell has its manufacturing units in emerging markets like China, India, Ireland
etc. apart from the developed economies in the world. The major competitive advantage
that the Dell is its serviceability i.e. prompt response, better customer service and the
value delivery channel. One of the sources of Dell’s initial competitive advantage can be
attributed to its famous direct selling and build-to-order approach. This just-in-time (JIT)
strategy allowed it to operate with the lowest inventory level in the industry. Dell works
on customer driven strategies by collaborating with customers to find ways to make
technology work for them. Most of Dell products are stars because of the heavy
competition in the technology segment. Personal computers segment of DELL is a star.
Due to the high acceptance of Smartphones, people are shifting to smartphones
because they find it portable & handy. But still, many tech savvy people love Dell’s
unique offerings like Alienware as well as XPS series. Enterprise solution of DELL are
stars as they work on “Build to Order” strategy to cater the vast B2B market. Recently it
ventured out in smartphone market but still is unable to make its presence felt and it
stands as question mark in BCG matrix.
DELL works on build to order business model and uses Just in time strategy to
distribute its products at optimal prices there by decreasing the inventory cost and
delivery time. Dell also has its own dedicated retail stores. But the major sale is driven
through modern retailers as well as Ecommerce.
Dell is one company where the direct orders to its home site are also fantastic.
This is because Dell offers you to build up your laptop with the specifications that you
want, thereby giving you a customised laptop. To support its hardware business, it has
DELL solution centres to provide support services 24/7 to its customers. DELL saw a
meteoric rise in year 2013, going from fifth place to second in terms of Brand equity.
Despite being the third-most popular brand — with 12.8 percent market share,
according to Gartner (2013) report, DELL relies on customer trust to build evolving
brand image. Customers rely on Dell to deliver technology solutions that help them do
and achieve more, whether they’re at home, work, school or anywhere in their world.
Innovations by Dell
Figure 1.0
Dell's tagline 'Yours is Here', as seen at their Mall of Asia branch in Pasay City,
Philippines
Its Business/Corporate class brands are focused on long life-cycles, reliability, and
serviceability. Such brands include:
Figure 2.0
Marketing Policies and Competitors
Dialogue with Our customers through social, mobile, blogs, and dell.com
Brand site which features customer stories, articles case studies and forums
Dell brand strategy is 100 percent customer-centric
Dell has formal integration program and a marketing playbook
Developed a set of brand standards to clearly guide the new identity
As a large provider of computer products and services across both the business and
computer sectors, Dell Inc. competes most closely with Hewlett-Packard Company and
Lenovo. Dell also competes with IBM Corporation in the business hardware and
software arenas, as well as with Apple Inc and many other makers of consumer PCs. A
year after taking Dell private in 2013 with the help of a $2 billion loan from Microsoft
Corporation, company founder Michael Dell announced that Dell had made significant
investments over the previous year in business sector markets such as data analytics
and cloud services.
Like Hewlett-Packard (HP), Lenovo and IBM, Dell provides business products
that include computer servers, data storage devices, PCs and enterprise software. Also
like these business rivals, Dell sells printers, networking hardware, monitors and other
computer peripherals, and cloud-based information technology services. IBM, however,
essentially left the consumer computing sector in 2004 upon selling its PC business unit
to Lenovo.
As of May 2015, Dell continues to sell the following products for the consumer
sector: desktop PCs, laptop PCs, printers, monitors, TVs and home theaters, and
cameras and camcorders. Dell's consumer PCs compete with products from HP,
Lenovo, Apple, Acer and Asus, for example. However, unlike any of those rivals, Dell no
longer offers smartphones. Also, although Dell continues to sell Windows-based tablets,
it no longer competes in the Android tablet arena.
Dell is facing tough competition from other players like Lenovo, Hewlett Packard
as well as from assemblers and Chinese manufacturers & price wars is also affecting
their market share. Smartphones are the major threat to the PC market which is
affecting the industry. Selection of suppliers is the major factor that affects company’s
profitability in the IT hardware industry while software industry is driven by the
serviceability.
Advertising Methods
Dell is popular for its "Customer Driven innovation" theme which is as follows,
Listen
Dell gathers suggestions and requirements from thousands of customers daily through
numerous methods to keep themselves updated with the computing world.
Solve
Innovations begin in two ways. Most them happens in house with a team of top
engineers, product designers, consultants and other experts. Strategic partners also
play an important role in delivering cost effective innovative solutions to solve
customers' daily challenges.
Impact
Rather than competing Dell focuses to use the synergistic principle by partnering with
top technology manufacturers and suppliers.
Dell kicked off their venture with the direct marketing model eliminating the
intermediaries. In the beginning, customers had to make a phone call to place their
order. Later as time progressed, Dell utilized internet as a platform to conduct the sale.
The direct model has several advantages. Dell builds systems customized to the
requirements of the end user. Unlike conventional manufacturing which requires a stock
of raw materials, Dell with its direct model minimizes inventory and hence reduces the
risk of excess inventory in stock as well as distribution channel. (Fredman 1999: 80-81)
Template for Marketing Purpose
Figure 3.0
For Small business organization purpose
Figure 4.0
For Large Business usage
Figure 5.0
Scope of Promotion Activity
Objective of Marketing
Increase Business
Marketing promotions are used primarily to attract new customers to a business. This
can be done through a variety of promotional actions, such as running targeted
advertising campaigns, holding special events, or launching a social media blitz. The
objective is to reach potential new customers and give them an incentive to patronize
your business.
Increase Sales
Repeat Business
The objective of retention marketing promotion is to turn one-time customers into repeat
customers. This can be done through collecting customer contact information and
putting the one-time buyers on a direct-mail or email advertising list. These customers
then receive special offers, notice of sales, special perks, and “two-for-one” offers
designed to keep them coming back.
Brand Awareness
To keep its name in front of consumers and reinforce its image, a small business should
have a marketing objective of building brand awareness. This can be accomplished in
part by being consistent in all marketing messages and using inexpensive promotional
products. An example: give-away items such as refrigerator magnets, ink pens, coffee
cups and calendars imprinted with the company logo or image. People who take these
items have a constant message in front of them, bolstering brand awareness of the
business.
Chance for the customers to buy the merchandise with ease access
Raises the customers for the Dell company by this promotion
Increases the revenue
Current advertisement will reach the customers because of the promotions
Tools, equipment and materials
Feedback Form for the Marketing Testing
Marketing survey
The above survey form contains feedback questions regarding dell products and their
services. The survey forms contain 20 questions and these forms has been filled by 20
strangers.
Report
At Dell, we have always believed that technology should be about enabling human
potential. This belief has been a core part of our culture since our start and today, we
define our company’s purpose around that singular idea — delivering technology
solutions that enable people everywhere to grow and thrive. Our commitment to put
technology and expertise to work where it can do the most good for people and the
planet is a natural extension of this idea.
Conclusion
Reference
https://www.marketing91.com/marketing-strategy-dell/
https://www.slideshare.net/KoichiTachiya/dells-marketing-strategy-22347156
https://en.wikipedia.org/wiki/Dell#History