Dell chose a different distribution model when targeting Indian SMBs by focusing on lowering costs. Dell cut distribution costs by 6-8% compared to other manufacturers by selling directly through its website and toll-free number. This strategy helped Dell gain a competitive advantage through lowest production and distribution costs, allowing it to gain more market share in India. Dell further segmented the Indian market and tailored its products to satisfy unique customer needs in different segments like SMBs.
1. CASE ANALYSIS ON
DELL IN INDIA TARGETING SMBs
Dhwani Ojha
Divyani Garg
Pankhuri Singhal
2. What made Dell choose a different model of
distribution when it decided to target Indian SMBs
Big Market Share
Education
Technology
3. What is the present market-share of Dell
in India?
4. Which strategy did Dell follow?
How has this strategy helped Dell gain a competitive
advantage –
Lowest Production Cost
Overall
Cost
Leadership
Lowest Distribution Cost
Win more market Share
7. 1968
1981
1984
1985
EVOLUTION
•Dr. Marcian E invents
micro processor
•Revolutionizes by
lighter weight and
greater speed
INVENTION
•IBM first to launch
PC’s.
DELL
EMANATES
•Founder Michael S
Dell
•Focused on Custom
built PC’s and direct
selling strategies.
PRODUCT
DVLPMNT
•Designed Turbo PC
•Established strong
customer base &
quality sales service.
8. •1st subsidary in UK
•Low cost
marketing.
•Latest Technology
with customization.
1987
GEOGRAPHIC
EXPNSN
1989
PRODUCT
LINE
•Introduction of
Notebook.
1990
MARKET
DVLPMNT
•Entered
Developing
countries
•Targeted SMB’s
1992
REAPED
BENEFITS
•Enjoyed an
increasing trend in
profit over the span
of 3 years.
10. DELL Marketing Mix in India
PRODUCT:
•Desktop .
•Servers, communicatio
n peripherals.
•Dell and oracle alliance
to provide common
point of contact for all
computing requirement.
•Notebook PCs.
PRICE:
•Dell cut down 6%-8%
of distribution cots
compared with other
manufacturers by
offering its products
through company
website and toll free
number.
Target
customers
Intended
positioning
PlACE:
•Dell tied with Tata
croma in April
2008 to sail
through their retail
outlets.
•it open its own
retail outlets in
Delhi, Coimbatore.
PROMOTION:
•Dell started
campaigning with the
tag line “I Choose my
Own path. I Choose
Dell
•Dell launched real life
successful entrepreneurs
for its brand
campaigning.
11. Dell product launches between 2008-12
2008
2009
2010
•The Studio line of compact and stylish
consumer desktops
•In Fiscal 2009, Dell added the XPStm
,Alienwaretm and E-Series commercial
Latitude and Dell Precision lines of notebook
,the 3G enabled Mini; a light, mobile notebook.
•The XPStm ,Alienwaretm , OptiPlextm
, Inspirontm , Vostrotm , Dell Precisiontm
lines of desktop.
•At CES 2010, Dell showcased a broad range of
new products including its first ultra-mobile
gaming laptop
12. 2011
2012
2013
•Dell is launching a range of Dell Latitude Eseries models: the
E5420, E5520, E6220, E6420, E6520, and
E6420 ATG notebooks and the XT3
convertible tablet.
• Dell is also bringing several models of its
Optiplex desktop line -- the 990, 790, and 390
•Dell launches XPS 14 Ultra book, XPS 15 Ultra
book
•Dell Launches New Cloud Products For Citrix
Users
•The new launch include the Dell Venue tablet
line, the XPS 11 two-in-one, and the XPS 15
laptop.
13. Indian PC Industry: Unmasking the
Competition
1980
Two major developments led to the growth of Indian PC
industry.
1997
Drastic Growth in the PC Market.
PC market Served three major suppliers
21st
Century
Multinational
companies
Local assemblers
Indian Brands
14. SHARE OF INDIAN PC Market - Mid - Year
Review 2002-2003
Major MNC
Players –
1.
2.
3.
4.
5.
6.
HP
IBM
COMPAQ
LENOVO
ACER
DELL
Major Indian
Brands –
1. HCL
2. Zenith
MNC Brands
36%
Indian Brands
20%
Local
Assemblers
44%