2. 1. INTRODUCTION
• Dell is an American multinational computer technology company.
• At age 19, Michael Dell founded PC's Limited.
• Head Quarter : 1 Dell Way, Round Rock, Texas, US
Michael Dell
• Industry : Computer hardware, Computer software, IT consulting, IT services
• Dell is listed at number 51 in the Fortune 500 list (2013)
• In 2010, Dell India became the #1 PC brand in India with a market share of more
than 15 percent. ( IDC Q2CY10 Pulse Tracker)
4. 2. STPD : Segmentation
• DEMOGRAPHIC : No age, gender or race bias but
income, occupation & education
• GEOGRAPHIC : US, EMEA and APJ
• PSYCHOGRAPHIC : Lifestyle, Interests
• BEHAVIORAL : benefits sought by consumers such as low
price with good quality & service
5. STPD : Target Market
• A) RELATIONSHIP CUSTOMERS : large corporations, government
and education sectors, Small & Medium Business
• B) TRANSACTIONAL CUSTOMERS : individual customers who is
price-sensitive looking for low cost, more reliable, quality service
and added value products.
6. STPD : Positioning & Differentiation
• POSITIONING :
In the early days, Dell positioned itself as a premium computer
company through an easy and convenient internet-based sales.
Gradually this further growth and increased advertising managed
to establish Dell's position in consumers' minds and presented it as
an aggressive, value-oriented computer manufacturer.
• DIFFERENTIATION: Was Pioneer in Customize to order, Low cost
with Good quality, Direct to customer (Channel differentiation)
7. STPD OF DELL LAPTOPS
Product
Segmentation
Target
Positioning
Differentiation
Inspiron
Basic Laptop
All classes
Everyday
Essential
Low cost with
quality
Inspiron R
Laptop
(Multimedia)
Youth
Multimedia
Power
High specifications
XPS
Ultrabook
High class Youth Premium
Laptop
Alienware
Laptop (Gaming) Gamers (Urban Extreme
youth)
Gaming
Ultralight with
specifications
High performance
& graphics
8. 3. MARKET SITUATION
• HP is leading the PC market — desktop, notebook and
tablets — in India with 31.4% market share in the second
quarter of 2013.
• Dell is in the second position with 11% market share in
India.
• Total PC shipments in India rose 27.2 percent to
47,32,410 in the second quarter of 2013
• Dell is listed at number 51 in the Fortune 500 list (2013)
11. 5. SUSTAINABLE COMPETITIVE ADVANTAGE
• Direct to Customer business model.
• Dell brand is one of best known in the world.
• No inventory build up
• Low cost with high quality
• Order to customize
• Best 24x7 Customer support
• Direct sales channels and direct customer relationship
12. 6. ADVERTISING & SALES PROMOTION STRATEGY
• Advertisements in television, Internet, magazines, catalogues and newspapers.
• Social Networking.
• A Popular Phrase "Dude, you're gettin' a Dell!“ was used to market it’s
Products.
• In 2007, Dell began using the slogan "Yours is here" to say that
it customizes computers to fit customers' requirements.
• Dell to run month long sales promotion campaign 'Dell Se'
14. 7. BRAND STRATEGY
• Dell is on the 61st rank in Best Global Brands of 2013 with Total
Brand equity of 6845 m$.
• Traditionally a Direct-to-Customer brand.
• Dell’s Brand strategy is 100% customer centric.
• Brand site which features customer stories , articles, case studies
and forums.
• “The Power to do more” campaign increased overall brand
health.
• Several corporate citizenship initiatives.
15. 8. DISTRIBUTION STRATEGY
• Dell is leader in using supply chain management.
• Dell sells mostly through Internet (D2C)
• Dell distributes by using Just-In-Time manufacturing system.
• DIRECT DISTRIBUTION MODEL
• Direct distribution allows Dell to eliminate the middleman.
• Since 2007 restarted distribution through Retailers.
16. 9. PRICE STRATEGY
• Dell follows comparative Lower price to match the customer's
expectation of value for money (Comparative Pricing)
- Low inventory cost & Direct Distribution
• Depend on supplier’s price (Cost plus Pricing)
• Customization (Optional feature Pricing)
- No price tag effect
- Pricing strategy based on customer’s need
17. PRICING OF SOME OF DELL LAPTOPS
• INSPIRON
• INSPIRON R
• ALIENWARE
• XPS
