Company and market analysis: Dell

In this assignment we would analyse the DELL Inc, that how marketing plan supports strategic objectives by explaining its strategy that impacts on its marketing plan, identify components of marketing plan by using management tool SWOT analysis and risk factors within a marketing plan. Construct a marketing plan by describing the levels of importance of each component, mitigation strategy and produce a plan using marketing mix i.e. 4P’s. Determine how to promote the marketing plan in support of strategic objectives and outline an approach to gain agreement for the marketing plan.

Company Overview

Dell is a global leading vendor of the computers systems and related products. It conceives, develops, manufactures, sells and maintains computer systems, servers, printers and other products. The company functions mainly in Americas. It is based in the round rock, Texas, and employs 90.500 people roughly.

Dell Inc. is a provider of the products and services in the whole world which allow customers to establish their technology and infrastructures of Internet network. Dell offers a wide range of the categories of the product, including desktop machine, mobility products, software and the peripherals, servers and the products of network management, higher services, and the products of storage.

Market Trends

The market for laptop computers differed as one of the fast most growing segments of the computer industry. During its growth and development this market, like many different, changed very much resulting from customer demands. In an effort, such as Dell view market bends to offer companies to these demands, in order to help in the development of the new products. In its newest stages the laptop market was specifically affected by a number tendency.

Generally the total market for PC’s is affected by many of these tendencies. In particular however affects the market more than any different one. Simply customers educated more over their purchases. Computers are sold to the first customers and many more to the consumers, that bought personal computers at least once before. While a number of increases of customers over computers become experienced, other tendencies begin to take form.

Resulting from this consumer training customers wish increased customization of the personal computers. The increasing quantity of the knowledge among consumers causes the ability, so that customers differentiate their own personal necessities with respect to a computer from a standardised product. This affects in sequence tendencies, which are specific to the laptop market. The laptop market grows with a faster rate than desktop computers. This tendency is driven by global integration and makes progress with in the communication technology. Customers live more mobile, more communicative lives, and their computers must have similar characteristics, which do not only make such activity possible, in addition, efficiently and simply

If it specifically comes to the product, customers are demanding increased mobility and durability of the laptop computer. Driven by this new mobile lifestyle, customers wish a product, which is to move simply and difficult to harm or damage. This can include the production it smaller, lighter and possibly more strongly than preceding models. Additionally to the demand more of the physical characteristics of the laptop computers, customer needs larger efficiencies. Consumers must their computers with higher speeds, work function with more memories, and than to steer to at all before be simpler. Computer users depend ever more on their Laptop in order to organize their lives and keep vital information, and consequently must companies work, in order to provide it with the best existing technology.

Creating a New Laptop

In developing a new laptop computer, Dell would like to target three specific market segments. The first, business executives, generally receive their computers from their employer through a direct relationship with a manufacturer or supplier. The second, college students, generally buy their computers through the school they attend. This is very much like the way in which business executives receive their computers, in that the individual is limited to the options chosen by the institution. Finally, Dell would like to explore the option of creating a laptop as a alternative for home desktop computers. Each of these market segments poses its own challenges and possibilities. In analyzing Dell’s strengths and weaknesses relative to these markets, as well as the opportunities and threats provided by the macro-environment, a clear picture can be drawn to aid in the development of the new product.

If it developed new laptop computer, Dell of three specific market segments would like to aim. First, enterprise leaders, receive generally their computers from their employer by a direct relationship to a manufacturer or to a supplier. Second, Student, generally their computers buy by the school, which they attend. This is very much like the way, in which enterprise leaders receive their computers, because the individual is limited to the elections, which are selected by the institute. Finally Dell would like to explore the choice of manufacturing a laptop as alternative for home desktop computers. Each of these market segments raises its own challenges and possibilities. If Dell’s analyzes; strengths and weaknesses in relation to these markets, as well as the opportunities and the threats of macro environment, a free illustration to be made available, can be drawn, in order to help in the development of the new product.

SWOT Analysis of DELL

Strengths

Obviously many of Dell’s strengths come like results of the direct model. The model could be regarded one of the company’s largest tangible assets. However some specific advantages are obtained by the direct model in relation to the laptop market. Primarily the direct model permits consumers completely particularly to make their Laptop. Additionally to this customization the direct model furnishes relatively fast delivery. This permits customers to assign their order and receives its customer-bound computer frequently within the days. Dell has also an advantage in its inventory rotating time and in their good-controlled conditions to the suppliers. Dell’s large strengths, they targeting the enterprise leader category, it is that an approximately 75% all proceeds of sale comes from the large businesses and of the government organizations.

Weaknesses

Dell’s largest weakness is their customers can’t physically tap or see the product, which they would like to buy. Dell from its competitors, customization, causes also a problem in that consumer can’t go out buy Dell, as so simply to buy other brands. Many computer customers are cautious of a product that can’t carefully examine before the purchase. In addition an anxious customer would have to wait some days, before their computer was supplied. This is the price, which must be paying for customization.

Opportunities

Personal computers are more bought and used than at all before. The market for Laptop in particular grows many faster than that the desktop computers. This general tendency lends itself as large opportunity for Dell’s Laptop business to grow in all segments. Another large opportunity for all arranged segments refers on the first tendency, which was mentioned. The direct model can make the frameworks available, so that customers really personalized computers into relatively hassle free environment. This tendency toward to the more educated customers supplies a large opportunity in this regard. Increased communication and technological integration cause also large opportunities for Dell. Customers can now go on the Internet to personalize their computer, put an order, to receive or even obtain information. This is more efficient for Dell and the customers, and its benefits are many.

Threats

In such a unstable market such as personnel computers, threats are many and large. Because of the constantly changing kind of the computer industry, contested companies constantly producing the high-quality, lower priced product and do it fast and more efficiently that the competition. One of the external main threats to Dell is that the difference in prices between brands keeps constantly smaller. Another serious threat is simple that the growth rate of the computer industry slows down. However there the market slowed down, strengthens competition for market share. Companies must work more with difficulty at all than before, in order to differentiate their brand from the substitutes. Finally the fast step of the technological development, being a tremendous opportunity, is also large threat. In the laptop market this is based largely on technology and conception of the product. The newest fastest most efficient technology and the most durable, most user friendly product is going sale. If a company do not keep innovations in the technology, they see a fast decrease in the achievement.

Risk Factors

Factor affecting the Dell’s marketing plan and business

Common financial and trade situations

The level of request of products and services of Dell

Intimidation or communal health problems on the financial system in general

On level of request of products and services of Dell, and on capacity of Dell with control its provisioning and logistics of delivery in such an environment

The level and intensity of competition in industry of technology and pricing pressures

Component availability & expenditure

The ability of Dell to develop new products based on new or evolving technology and the market’s acceptance of those products.

Capacity of Dell to supervise its record levels to reduce surplus record, flagging record values

Dell’s capacity to efficiently control its operational expenditure

Dell Marketing Strategy

The Dell Marketing strategy was simple and fundamental. Cut the intermediary out and sell you the more cheaper product. Offer great customer service, by giving exactly the customer, what they wish. There you have it. That is how Dell is to become the largest company in the world selling computers. They did it, by establishing the computers, which are manufactured, in order to order for the customer. By the treatment of all sales (retail). If you wish a Dell computer, you can only receive them from Dell. Their Marketing strategy let it lead the saving on the customers. Now ONLINE Dell Marketing strategy is nothing different either. They do exactly, what everybody else has to do.

Targeting: They must know, computer buys whom and where on-line these people to go

Tracking: They must seek out the advertisement of results and make adjustments

Relationships: They develop conditions to the people, which announce them with

The Internet is an efficient Kraft in the commercial world for the sale of the products. What forms it so efficiently? Marketing strategy of the new product must follow some fundamental steps. Who your goal customer is and where do, are, they to hang out two very important questions, which must know you over your new product, before you try each possible Marketing strategy.

Corporate Objectives

Dell’s enterprise level strategy is one of development. Dell’s enterprise Web site defines its worldwide strategy, as its worldwide strategy, which first servicers of the products and the services, including which is to be demand the customers, in order to establish its information technology and Internet Infrastructures.

Marketing Objectives of DELL

Dell spread expanded long-term companywide goals, in order to drive shareholder value inclusively

Supply lasting unit augmentation at a finest to the marketplace

Would cost drive through against its opportunity

Supply lasting EPS growth

Would drive through on its growth initiatives with five cores

Grow its trade and the channel for scale and revenue

Marketing Program, Strategy, and Tactics

Product

Dell supplies large variety of the business category and home consumer category products and services. The company markets specific label names to the different market segments. Some examples of the Dell products, which are usually sold at enterprise clients, are Dell power edge servers, power vault, Dell EMC memory systems, and power connect switches. Some examples of the products of individual and occupation customers are Dell precision workstations, OptiPlex desktops, dimension desktops and Inspiron and latitude notebooks. Dell obvious cash cow in its PC business. Dell is always with the ability particularly to make their products and services around a large selection of the customers, including individual consumers, corporate businesses and retail trade.

Price

Determine reasonability for price and accessibility of the support, after sale services and parts has improve Dell’s position from others. If Dell decides itself to register a certain market it uses throughout the direct model approach and determines price for its product under that of their competitors. Dell is a direct supplier and meant that the consumers can order their computers directly from Dell, instead of to go through a retailer. Dell manufacture computers on a just-in-time, built-to-order basis, it does not have to keep a stock of components and ready-made computers. By Keeping stock and pre-installed computers cost money, which keeps passed on to the customer, since Dell does not do this, they are able to sell their computers at a lower price.

Place

Different ways which you can order DELL are online, telephone & mail-order. To rather recently Dell computers were only present on their web site or by telephone to be ordered. Dell began recently, its products in some physical positions, like Wal-Mart, PCWorld and Costco. Dell was able to affect the aspect of position strategy from its advertising campaign. As Dell’s products are always available at the nearest dealer’s customers develop confidence for “local Dell” thereby obtaining the objective of the production of their confidence in the Dell products and the services and the figuration of a large and varied consumer lower surface.

Promotion

Dell uses two main avenues, in order to arrive its advertisement announcements at possible customers: direct mail and online. Direct mail covers the promotional material, which is sent by the post office. Other channels are online model, special training and certificates, Word of mouth, editorials, reports, and awards. Dell in the past did not concentrate on the extensive advertising campaigns however these, which are 1999 revolutionaries, when Dell changed its tactics, by engaging itself in the extensive advertising campaigns. Dell has always computers on sale, and Dell also has nearly always any promotion, free shipping, free memory upgrading, to offer free CRT monitors and free printers. Dell knows that computer to sell is most important part and to give an incentive in order a sale.

Competition Environment

The competitors of Dell such as Hewlett Packard and Compaq recently gained great market shares of personal computer by the aggressive plans of sale which include the availability of product at the physical place or outlets. These outlets provide a purchaser-friendly place which supplies with the needs the first time for purchaser and others which are not well-known with computer expertise by providing to the contact a salesman who can immediately answer the questions and put forth recommendations. On the other hand, the plan of the sale of Dell with single consumers by Internet requires that they have already access to a computer and the technical skill to find and order a product online. By a variation in its strategic planning of sale to embrace sales and traditional techniques of sale, Dell can reach more different consumers and increase sales with the purchasers of first time.

Dell’s direct model, which is largely responsible for the success of the company, supplies fast, economical and the customer to friendly means of production and distribution. Now in a market, which is constantly changing, competitors challenging Dell with the new and singular products in an effort to overcome the superiority of the direct model. The growth and the development of the laptop computers is a node switching range, within which Dell for continuous success can work, despite the threats, which are raised of its competitors.

Placing and Target Marketplace

Which needs for Dell to realize now is to concentrate on the positioning of its products. Earlier, Dell’s customers can be anybody and anyplace. benefit not to classify the customer by category is it makes it possible at Dell to envisage various kinds of consumers not to however aim at the specific group customers. In recent years however, like Dell is developed, the user base changed of various professionals into type of corporation. Consequently, the new strategy of positioning should follow the new target and produce consequently. The quality of target must be consequently changed in order to conceive according to the products these needs for corporation.

Dell’s Sales Promotion & Services

Dell sells products and services directly to the customers by the representatives of sales devoted, telephone-based and online at “www.dell.com”. The sectors of consumer include large firms, government, health care, and education, as well as of the small companies with averages and various consumers. Dell underlines importance of its direct economic model by providing direct feedback from customers, allowing them of this fact of developing and of refining our products and programmes of marketing for the specific groups of customer.

For its large managerial customers, Dell offers the premier which is a protected and personalizable procurement and site’s support conceived to save organizations time and money by all the phases of ownership of IT product. The principal advantages of Dell premier are illustrated as:

Easy Ordering

Easy Tracking

Easy Control

Dell promotes its manufactured goods and services with the small and average companies h and the customers mainly by publicity on television and on Internet, announcing in a series of printed media, and by forwarding a broad range of the publications of direct marketing, such as the promotional part, catalogues, and bulletins of customer.

Additional strategic influence of website visitors is based on optimized position trends of prices on the market and mixture of characteristics of product. A range of various offers must be controlled. Tactical promotions which are led to promotional completion date which are weekly or twice per week include the variation:

More tactical persuasion of site visitors is based on Price moves / optimised price position to market and the mix of product features. A wide range of different offers need to be managed. Tactical promotions which are driven by promotional “end dates” which are weekly or bi-weekly include varying:

Free shipping

Money off discounts

Free upgrades (e.g. memory)

Free accessories

Finance offers

Service upgrades

Customer services also include:

Online orders and by a distinct manufacture

Video circulation & delivery assurance

Online technical services & support

Online forum, help & search services

Order enquiry, purchase and delivery logistics

However, this does not mean that Dell is unaware of its initial demography of the consumer. Instead of that it should clearly subdivide groups so that marketing campaigns should be followed consequently. In this way, it will not follow a simple customer of profile for marketing campaigns and promotions but will insulate their devices; effective execution of strategy marketing. A problem which is obvious with author in this respect is it would need the revaluation of the current marketing campaign by which the countryside addresses to the consumer as a whole. By narrowing the range of the strategy marketing of current Dell could achieve goals of sale of place.

Another problem with the marketing of place to a dominant company as Dell is it tends to reverse part of the development process or to change it rather. For example the provider should be single who can as well as make the personalization of mass to a shorter time of production of the standards of quality of maintenance. Dell must thus concentrate on the quality control during it integrate this new marketing gradually.

Conclusion

From our study we can conclude that DELL appreciates various strengths in terms of its individuality with regard to elevated levels for the service to the customers having for result the satisfactory customers and less time of breakdown, the powerful systems and richly configured at the competitive prices obtain exactly which are established to order to give customers that they want.

Dell presents the newest technology adapted much more quickly than of the companies with the slow indirect channels of distribution. It has excellent strategies of management like the forecasts of demand, which make it possible the company to better communicate with suppliers By its direct sales model, it cut the retailer and provides it directly to the customers and also employ with the IT, e-business and CRM s’ approach to capture data on its faithful consumers.

At the similar instance it endures from few weaknesses as the lack proprietary technology, no physical localizations for returns, service, or repairs, no retailers, consequently customers apprehensive they cannot individually inspect the product, test various combinations with a store and go far with one.

Elsewhere, updated continuous and improvement of process necessary of the suppliers to follow Dell’s rate/rhythm of the development.

However it can use little occasions like Rebranding and retagging for the sellers for whom they are making and selling the inexpensive computers and at low prices, typing the strong market potential and finally use the direct model to influence purchasers of second time and provided them with aggravate free personalization.

It must also take care of few threats like the revenge of the competitors and the newcomers poses on the competitive market strongly has variation of the price becoming less exit, more companies becoming its narrower substitute products.