Dell Market Research: Executive Summary The Customer Research Process on Dell Laptop on is given as the requirement of the
course entitled Consumer Behavior. I have choose product as Dell Laptop, Inc. It is among the world’s leading computer manufacturers that has transformed diversified into variety of business segments over the year. However, the research is realistic, which has a good possibility to be succeeded. Usually there are many laptops in the market and the market of laptop is competitive. However, we can compete in this tough competitive market because the Dell laptop is not only providing a very high quality and security and safety but also expensive. This research analysis the current situation, followed by customer research process on Dell laptop, different opportunities and threats, then Motivation as a psychological force, Model of the motivation process, Needs of Goal, Comparison of positive and Negative motivation, afterwards it also discusses the Maslow’s Hierarchy of Needs, Types and system of Needs, and finally the conclusion. INTRODUCTION Statement of the Research problem This term Paper is prepared for Dr. Shohidul Islam, course instructor of the Undergraduate program, School of Business; at University Of Information Technology and Science as a partial requirement of Consumer Behavior. This Paper is prepared during the Summer, 2011 semester and would be submitted in the same semester. The standard procedure for formal Paper (given by the instructor) has been followed. Scope & objectives of the study The operational activities are very vast Dell Inc. in Bangladesh. But this study limited to the find position, attitude, preference, and the consumer purchasing intuition on the product. General objective The objective of this research work was to find out the problems why the sell is not increased compare with other brands and at the same time, imply some strategy that would help the corporate sales department to improve its performance which would help the organization to maintain a high customer retention ratio. Paper Objective: To analyze the existing corporate customer’s attitude, I examined the following issues in this research work: Quality. Service.
Nature of questionnaire – For the research work.
Data Collection I obtained necessary data for this Paper by surveying 50 customers. friends. and
. I went to the different offices. customer’s attitude toward the price and easy to add update parts are negative. As the secondary source. close ended questions was asked. Research Design For this research I have adopted the primary research design. Easy to add update parts. Delivers promise. I have interviewed associated personnel of the Sales department & it was not very difficult for me.Technology. For the hypothesis testing I used manually. Sample size –for this research work the sample size was 50. brand image. Method of administering the questionnaire – I used a survey questionnaire for collecting information for the research. Competitive pricing policy and tariff plan. The average interviewing time was approximately 10 – 15 minutes. Some cross-tabulations were conducted to show the difference in the service quality. Ha: Dell Inc. customer’s attitude toward quality and security and safety are positive or neutral METHODOLOGY OF THE STUDY The study is basically a combination of primary & secondary data. information was also taken from books and other vouchers and as well as from World Wide Web. neighbors. the null and alternative hypotheses are – H0: Dell Inc. and institute and asked them to fill up the questionnaire if they are using corporate cellular phone. Data Analysis For the analysis of the collected data I used by manually. The information about the research components are as follows –
Kind of information – For this research I found out individual respondents’ information. and customers’ attitude toward the laptop in Bangladesh. In some analysis I found out frequency. HYPOTHESIS In this research study.
Other problems arise. Quantitative research designs: A quantitative research study consists of a research design. but many respondents are even less willing to interact with an electronic voice than with a live interviewer. television viewing. Telephone surveys are also used to collect consumer data. The difficulties of reaching people with unlisted telephone numbers have been solved through random-digit dialing. or general relaxation. however. friends. the data collection methods and instrument to be used. Experimentation A controlled experiment of this type ensures that any difference in the outcome (the dependent variable) is due to different treatments of the variable under study and not to extraneous factors. I have done some report by observation Mechanical Observation It uses a mechanical or electronic device to record customer behavior or response to a particular marketing stimulus. however. The latter. Depending on the result of the analyzed data I made some recommendations which I believe would be helpful for the decision making strategy for the corporate sales and production departments of Dell laptop. evenings and weekends are often the only times to reach telephone respondents.
. The analyzed date is presented both in graphical and tabulated format. institutes. Physiological Observation Marketers also use physiological observation devices that monitor respondents’ patterns of information processing. Surveys Personal interview surveys most often take place in the home.percentage. Observational Research Observational research is an important method of consumer research because marketers recognize that the best way to gain an in-depth understanding of the relationship between people and products is by watching them in the process of buying and/or using the products. I have done also by the telephone. A regression analysis was also used for this research work. and the costs of a widespread telephone survey are often minimized by using toll-free telephone lines. and the sample design. who tend to be less responsive-even hostile-to calls that interrupt dinner. from the increased use of answering machines and caller ID to screen calls. referred to as mall intercepts are used more frequently than home interviews because of the high incidence of notat-home working women and the reluctance of many people today to allow a stranger into their home. Some market research companies have tried to automate telephone surveys.
43. while 23% respondents are using banglalink. but researchers have developed a number of techniques to increase returns. 17. using a provocative questionnaire. but there are still some important things which I couldn’t get hold of & they don’t even prefer to disclose those in front of general people. Though I knew & had access to much information. the results cannot be projected to the larger population. and sending pre-notification letters as well as follow-up letters.4% respondents are using GP connection. that is the majority respondents are using GP Corporate connections. Respondents are directed to the marketer’s (or researcher’s) Web site by computer ads or home pages. The frequency table shows that among 120 respondents. For the formatting I used APA format.2% using CityCell. One of the major problems of mail questionnaires is a low response rate. LIMITATIONS OF THE STUDY The major limitation factor for this Paper was primarily the reluctance and strict adherence to confidentiality maintenance attitude shown by the officials of Dell Inc.Mail surveys are conducted by sending questionnaires directly to individuals at their homes. Report format This research paper format is formal in nature.2% respondents are using AKTEL corporate connection. such as enclosing a stamped. Because the sample’s respondents are selfselected. Online surveys are sometimes conducted on the Internet. THE LAPTOP USER OF THE RESPONDENT Figure 1: The laptop user of the respondent The mode for the responses of this question is 2. Comparing the above sample result it can said that majority of the corporate clients are using GP connection while banglalink got the second position in case of subscriber base of the selected sample. self-addressed envelope. and remaining 14. THE CONSUMER RESEARCH PROCESS company profile
Type Traded as
Public NASDAQ: DELL NASDAQ-100 Component S&P 500 Component
49 billion (FY 2011) US$ 3.Industry
Computer Systems Computer Peripherals Computer Software IT consulting IT services Austin.43 billion (FY 2011) US$ 2.S.63 billion (FY 2011)
Area served Key people
Revenue Operating income Net income
. Texas November 4. Worldwide Michael Dell (Chairman & CEO) Desktops Servers Notebooks Netbooks Peripherals Printers Televisions Scanners Storage Smart Phones US$ 61. U. Texas. 1984 Michael Dell 1 Dell Way Round Rock.
is an American multinational information technology corporation based in round Rock. The company grossed more than $73 million in its first year of trading. cameras. Bearing the name of its founder. servers. the company sold personal computer. Fortune magazine included Dell Computer Corporation in its list of the world’s 500 largest companies. digital audio players. sells and supports computers and related products and services.5 million shares at $8. the company produced the first computer of its own design—the “Turbo PC”. The company changed its name to “Dell Computer Corporation” in 1988 and began expanding globally—first in Ireland.Fortune Magazine listed Dell as the sixth largest company in Texas by total revenue. employing more than 103. .000 in expansion-capital from his family. The dorm-room headquartered company sold IBM PCcompatible computers built from stock components.50 a share.com
Dell. data storage device. Dell is listed at number 41 in the fortune 500 list. Michael Dell. Dell also sells HDTS’s. Inc. Dell traces its origins to 1984. Michael Dell started trading in the belief that by selling personal computer systems directly to customers. that develops.300 (January 2011) Dell Services Alienware Dell. handhelds. network switches.64 billion (FY 2011) 103. making Michael Dell the youngest CEO of a Fortune 500 company ever. when Michael Dell created PCs Limited while a student at the University of Texas at Austin. PCs Limited could better understand customers’ needs and provide the most effective computing solutions to meet those needs. In June 1988. Dell’s market capitalization grew by $30 million to $80 million from its June 22 initial public offering of 3. PCs Limited advertised its systems in national computer magazines for sale directly to consumers and custom assembled each ordered unit according to a selection of options. and in 2002. In 1985. software and computer peripherals. and printers. It is the second largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.Total assets Total equity Employees Subsidiaries
US$ 38. Dell expanded its product line to include televisions. Dell’s first acquisition occurred in 1999
.300 people worldwide. the company is one of the largest technological corporations in the world. sold for US$795. Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot system (2009). As of 2009. printers. In 1996. Dell began selling computers via its web site.59 billion (FY 2011) US$ 5. Michael Dell dropped out of school in order to focus full-time on his fledgling business. In 1992. MP3 players and other electronics built by other manufacturers. TexasUnited States. after getting about $300. The company is well known for its innovations in supply chain management and electronic commerce.
During that time. Lackluster performance. On September 2. Ross Perot. and the global business climate. Dell announced its intent to acquire Perot Systems (based in Plano. ► On August 16. Texas) in a reported $3. Terms of the deal were not disclosed. It’s the way we interpret the world around us—our customers needs. ► On November 2. they need the newest technology and loyal customers. in its lower-end computer business prompted Michael Dell to take on the role of CEO again.” reducing headcount and diversifying the company’s product offerings. Dell acquired Alienware. ► On September 21. which introduced several new items to Dell products. Dell acquired Perot Systems a technology services and outsourcing company founded by H. our employees and our neighbors “(Dell 1) Dell’s mission is to be the most successful Computer Company in the world at delivering the best customer experience in markets we serve. Vision “Its the way we do business. its business and its communities through direct relationships with our customers. integrating EqualLogic’s products into the company drove manufacturing prices down. From 2004 to 2007. Dell announced its intent to acquire the data storage company 3PAR. In order to become the most successful computer company. In doing so. including claims processing and call center operations.” Mission “Dell is building its technology. 2010 Hewlett-Packard offered $33 a share.with the purchase of Convergent Technologies.Perot Systems brought applications development. Michael Dell stepped aside as CEO. So Dell needs full customer satisfaction.9 billion deal. 2009. The company acquired EqualLogic on January 28. 2010. In addition. however. and strategic consulting services through its operations in the U. The founder announced a change campaign called “Dell 2. 2008 to gain a foothold in the iSCSI storage market. 2010. the company was rebranded as simply “Dell Inc. Dell continues to run Alienware as a separate entity but still a wholly owned subsidiary. Dell acquired Software-as-a-Service (SaaS) integration leader Boomi. Highlights ► In 2009.S. while long-time Dell employee Kevin Rollins took the helm.” to recognize the company’s expansion beyond computers. the future of technology. It’s the way we interact with the community. To prevent cross-market products.0. systems integration. In 2003. and 10 other countries. including AMD microprocessors. Dell will meet customer expectations of:
. it provided a variety of business process outsourcing services. Whatever changes the future may bring our vision—Dell Vision — will be our guiding force. which Dell declined to match. Because Dell already had an efficient manufacturing process.
The quality of dell laptop is better then other brands. ► ► ► Dell laptop is high price in the Bangladesh market. and learning. Individuals strive both consciously and subconsciously to reduce this tension through behavior that they anticipate will fulfill their needs and thus relieve them of the stress they feel. The specific goals they select and the patterns of action they undertake to achieve their goals are the results of individual thinking and learning. clothing. but this report will therefore draw on figures for recent years and a conclusion will be drawn from this evidence and other researched information. CURRENT MARKET SITUATION It was somewhat difficult to find an exact up-to-date statement of the market share Dell currently holds in the laptop market. Acquired needs are needs that we learn in response to our culture or environment. water.. Innate needs are physiological (i. shelter. biogenic). others are acquired. power. they are considered secondary needs or motives.. affection. psychogenic). the biogenic needs are considered primary needs or motives. This driving force is produced by a state of tension. prestige. Because they are needed to sustain biological life. which exists as the result of an unfulfilled need. Because acquired needs are generally psychological (i. some are innate. Needs every individual has needs. It is so complex to add update parts.e. MODEL OF THE MOTIVATION PROCESS
. air.• Highest quality • Leading technology • Competitive pricing • Individual and company accountability • Best-in-class service and support • Flexible customization capability • Superior corporate citizenship • Financial stability Challenge The famous slogan of Dell Inc. is – “The Power to Do More”.e. and sex.
Motivation as a psychological force Motivation is the driving force within individuals that impels them to action. they include the needs for food. These may include needs for self-esteem.
the specifically branded products and services that consumers select for goal fulfillment. Thus. If he says he wants to get an M. degree from UCLA. for example. there is no uniformly accepted distinction among the terms needs. on the one hand. that is. researchers often refer to both kinds of drives or motives as needs. Our discussion of motivation in this chapter is in part concerned with generic goals. a person may be impelled toward a restaurant to fulfill a hunger need. TYPES AND SYSTEMS OF NEEDS Hierarchy of needs
. he has stated a generic goal. As motivation Process indicated. wants. Some psychologists refer to positive drives as needs. For this reason. wants and desires. and desires. all behavior is goal oriented. Others differentiate between desires. wants. although positive and negative motivational forces seem to differ dramatically in terms of physical (and sometimes emotional) activity. POSITIVE AND NEGATIVE MOTIVATION Motivation can be positive or negative in direction. Some theorists distinguish wants from needs by defining wants as product-specific needs. and away from motorcycle transportation to fulfill a safety need. the general classes or categories of goals that consumers see as a means to fulfill their needs. Marketers are particularly concerned with product-specific goals. and needs and wants on the other. they are basically similar in that both serve to initiate and sustain human behavior.D. he has expressed a product-specific goal. We may feel a driving force toward some object or condition or a driving force away from some object or condition. If a student tells his parents that he wants to become a medical doctor. However. or desires and to negative drives as fears or aversions.Goals Goals are the sought-after results of motivated behavior. that is.
One in particular. Computers are being sold less to first time buyers and much more to consumers who have personal computers at least once before. like many others has changed a great deal as a result of customer demands. Simply. In an effort to eater to these demands. The growing amount of knowledge amont customers is creating the ability for buyers to distinguish their owen personal needs in a computer from a standardized product. The laptop market is growing at a faster rate than desktop computers. the over all market for Laptop’s is being influenced by many of these trends. is affecting the marketing the market more than any other. customers are becoming more educated about their purchases. As a result of this consumereduation. however. buyers want increased customization of personal compuer. Throughout its growth and development. companies like Dell look to market trends to aid the development of new products. In it’s most recent stages the laptop market has been specifically influenced by a number Generally. As an increasing numberof customers become more knowlwdgeable about other trends are beginning to take shapo.MASLOW’S HIERARCHY OF NEEDS
S W O T ANALYSIS Market Trends The market for laptop computers has distinguished itself as one of the fastest growing segments of the commuter industry. This is beging driven by global in
. this market.
Their strategic method also provides other forms of products and services such as internet and telephone purchasing. Dell’s sales revenue from educational institutions such as colleges only accounts for a measly 5% of the total. Opportunities Personal computers are becoming a necessity now more than ever. For one. on-site product service. The company’s Web site received at least 25 million visits at more than 50 country-specific sites. Dell’s biggest weakness is attracting the college student segment of the market. Customers just can’t buy Dell as simply as other brands because each product is custom-built according to their specifications and this might take days to finish. Dell turns over inventory for an average of every six days. Latest Technology – Dell is able to introduce the latest relevant technology compared to companies using the indirect distribution channels. Dell Computer’s award-winning customer service. This extensive range of products and services is definitely one of Dell’s strengths. customized computer systems. Customization – A complete Dell system is complex and hard to add new update parts to meet each customer’s specifications. customer support and relationship management — is growing at a rate of 30 percent. Second-time buyers would most likely avail of Dell’s custom-built
. Weaknesses Price for Performance – Dell boasts a very efficient procurement. Customers are getting more and more educated about computers. For home users. Dell’s direct method and customization approach posed problems. phone and online technical support and next-day.Strengths Dell’s Direct Model approach of enables the company to offer direct relationships with customers such as corporate and institutional customers. Dell is obviously not popular among the college market yet. customers cannot go to retailers because Dell does not use distribution channels. The company’s application of the Internet to other parts of the business –including procurement. Service and Support – Dell’s direct customer allows it to provide top-notch customer service before and after the sale. industry-leading growth and consistently strong financial performance differentiate the company from competitors for the following reasons: Reliability. manufacturing and distribution process allowing it to offer customers powerful systems at grater then high prices. Dell’s focus on the corporate and government institutional customers somehow affected its ability to form relationships with educational institutions. keeping inventory costs low. Since many students purchase their PCs through their schools.
Technology dictates that the most up-to-date and fastest products are always the most popular. Threats In a volatile market such as personal computers. One of the biggest external threats to Dell is that price difference among brands is getting smaller. Dell has to work doubly hard to differentiate itself from its substitutes to be able to continue holding a significant market share.000 but same
. FINDINGS & RECOMMENDATIONS The marketing department and the production manager have to intention about the high price compare with other brands and production engineer has to create easy insalivations the updated parts what the customers need to full fill their satisfaction. companies must produce products that are high in quality but low in price. Since Dell does not have retail stores. New software. threats abound. Computers change in a constant sometime daily basis.computers because as their knowledge grows. the online stores would surely make up for its absence. Dell has the biggest share of the market. The growth rate of the computer industry is also slowing down. With almost identical prices. The threat to become outmoded is a pulsating reality in a computer business. Not only that. It is essential for Dell therefore to be always on the lookout for new things or introduce new computer systems. Since other companies are able to offer computers at low costs. As a matter of fact. If the demand slows down. They might choose other brands instead of waiting for Dell’s customized computers. This is one challenge that Dell contends with. It is an opportunity but at the same time a threat. Technological advancement is a double-edge sword. 55. The internet also provides Dell with greater opportunities since all they have to do now is to visit Dell’s website to place their order or to get information. Low-cost leadership strategy is no longer an issue to computer companies therefore it is important for computer companies to stand out from the rest. Dell’s Direct Model attracts customers because it saves cost. Today. Dell has to always keep up with technological advancements to be able to compete. This is another opportunity for Dell to grow in other segments. price difference is no longer an issue for a customer. demand for laptop has overtaken the demand for desktops. the competition will become stiffer in the process. new hardware and computer accessories are introduced at a lightning speed. It is also more convenient for customers to shop online than to actually drive and do purchase at a physical store. this could threaten Dell’s price-conscious growing customer base. so do their need to experiment or use some additional computer features. The dell laptop i-5 price is Tk. Demand for laptops is also growing.
are being driven by ever changing customer needs. a high level people buy it. However.
.000 . So we people are not affort the Dell laptop because of high and could not easy to add update parts because when we buy a laptop for al long period. They motive and drive from their needs. for laptop in particular. By taking full advantage of strength. and demands. paying close attention to their weakness and identifying both opportunities and threats from the macroenvironment. CONCLUSION The current market trends in the personal computer industry. As Maslow’s hierarchy of needs after full fill the necessary then he goes to Safety and Security Needs Social Needs Ego Needs.functions HP is Tk. wants . So As a poor country our students and the lots of people who are middle class could not afford the price of Dell Laptop. is forced into a constant state of adoption in order to satisfy their customer. 46. these companies can position themselves as significant shareholders in an intensely competitive market. As a result Dell Inc.