2. The rise and fall of the Dell empire
2
Founded in 1984 #5 by the end of 2012
#1 PC maker
1999-2005
3. 3
Dell was ranked #1 in the PC market in 1999…
Pioneered mass
customization of
PCs. Consumers
could select from a
menu of features
to create their own
Dell.
Great customer
service with
domestic call
centers.
High quality and
worth the price.
Dell was a good
value for your
money.
4. 4
…by December 2012, it had dropped to #5
Battery Recall
Decreased
Confidence in Quality
No longer higher
quality than other PC
manufacturers.
Battery recall in 2006
due to overheating,
resulting in fires in
some instances.
Corporate vs.
Consumer
Focus
Dell invested too
heavily in B-to-B IT
supply at the
expense of their B-
to-C model
Outsourcing of
Winning Customer
Service
Moved customer
service call center
to India and
deterioration of
service.
5. Instead of creating new trends, Dell is
now a “me too” brand
5
User Experience
Price
6. 6
In just one year, Dell experienced a
decline across all former strengths
Source: BAV
0
5
10
15
20
25
30
35
Overall Perceived Value Attributes, Customer Service Elements,
Innovation & Progress
Dell, USA, All Adults 2011, 2012
2011
2012
8. Who are the millennials?
69% of millennials consider a
company’s social and
environmental commitment
when deciding where to shop79% are more likely to
purchase from a socially-
conscious company.
• Living in uncertain future
• Inherited less than what their parents had
• Aspire to make opportunities
• Driven to “show the world what I can do”
• Empowered by technology as way of life
9. Dell can grow eco-friendly millennials
35% of young adults put
their old computers in
storage, closet, or under
the bed.
Only 20% recycle.
12. To millennials, Dell is the socially-conscious
computer manufacturer that creates powerful and
eco-friendly tablets and laptops that allow young
people to show their concern for the planet and feel
good about their purchase.
New positioning statement
12
17. Now introducing: Dell Solstice
17
• First comprehensive eco-friendly
tablet
• Made of all biodegradable parts,
using clean energy
• Provides ability to easily upgrade
parts, including memory and hard
drive, without buying a new tablet
• No other competitor has a product
like this
• Builds brand loyalty for millennials,
who will continue to use same
device
18. Motivated by romance, people desire
ways to show off eco-friendliness
Griskevicius, Miller, et al. (2007) Journal of Personality and Social
Psychology
18
• When thinking about an attractive guy, willingness to volunteer up 28%
• When able to display benevolent action to others, up 24%
Women
Men
• When thinking about an attractive woman, conspicuous
consumption increases, not willingness to volunteer
• In same context, desire to perform a heroic action increases
19. To allow people to display valued traits:
Dell Shells
19
• Green – Purchase of New Solstice
• Bamboo – Get One, Give One
• Red – Act of Heroism: Deployment in Impoverished
Area
• Extra Distinction - Dell Leaf Logo in Gold
20. Keeping our environmental promise
20
The world generates 20-50 million tons
of electronic waste per year, nearly the
same amount as all plastic packaging, but
much more hazardous.
Most of e-waste dumped to developing
countries
Not only hazardous to environment, but
also to people’s health
For the benefits of next generations, Dell
will innovate the computers that reduce
e-waste
• Biodegradable
• Recyclable
21. Plug-in components that can be reused
Upgrade computer elements instead of
replacing the whole computer
Hard-disks, CPUs, memory cards, graphics
cards, etc. can be easily un-plugged and
upgraded.
• Green
• Economical -- Get a new appearance
but keep the data
• High-performance -- Purchase multiple
faster CPUs to speed up
• Portable -- Take key components
anywhere you want.
21
22. Donate your computer to its second
home with your good wishes
Is the PC market saturated and declining? Not really…
In most low income countries, many people cannot afford a
computer. Lots of children do not even know what a computer looks
like.
Donate computers to developing countries. Win-win-win
• Social impacts
• Environmental benefits
• Brand marketing: build up brand awareness and brand image
22
0
5
10
15
20
25
30
Internet Users per 100 Persons, 2011 (low income countries)
23. Tracking your impact in real-time
Donors will receive tracking numbers for their computers so that they
know where their computers’ new homes are.
23
Delivered on
Tuesday, 6/17/2013
From
Dell Recycling Center, Texas, US
To
Dell Computer Lab, Primary Middle School, Dodoma, Tanzania
Dell records the numbers of computers that have been recycled and
donated in real time.
Recycled Donated1,257,354 543,332
24. Retail Stores: Create hands-on experiences
Education on environmental
protection
Why is electronic waste harmful?
Where does most of electronic waste
go right now?
What is Dell doing to protect our
environment?
24
Dell Experience
Direct contact with the look and feel
of Dell products.
First-hand knowledge of Dell’s
cutting-edge technology and
innovations.
25. Website and Social Media: get the
message out
• Introduce Dell’s innovations
• Organize workshops and games
• Sponsor Dell fans’ club and increase communications among
customers, e.g. sharing their donation stories on social media
• Share stories about Dell’s products
• Kids in a low-income family are sharing a Dell laptop to write a long
email to their father.
• A shy girl is learning Samba from a video online.
• A busy mom is working on her projects while monitoring her babies
through a Dell computer.
25
26. Where Axe meets Oxfam
TV and online video advertising: girl approaches guy in coffee shop
26
Hey! How did
you get that
Red Dell Shell?
In Africa I gave 40
kids computers.
(No big deal.)
Sexy advertising: If you’re a real hero, then you did a deployment,
and you scored the Red Dell Shell.
27. In-store kiosks
27
• Locate within energized brands such as
• Get tech help on your product from a Dell Wizard
• Sign up to go on Deployment trips
• Recycle your electronics
• Be rewarded with Dell Shells
28. Convert skeptical millennials with radical
transparency
28
• Eliminated 20 million pounds
of packaging waste in four
years
• 75% of packaging is recyclable
• Bamboo cushioning inserts are
sustainable and compostable
Leverage past successes
Ally with consumers in
the war on waste
• Tracking codes for donations allow customers to follow their
computer’s journey
• Replaceable parts & refurbished machines let consumers feel like
part of the solution
