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Project Report On

Marketing and Competitors analysis of Dell Laptops
Presented to Punjab University Chandigarh in the partial fulfillment for the degree of MBA (Banking and Insurance) Session: - 2010-2012

Submitted To:Dr. Sanjeev Sharma Professor

Submitted By:Anup Chauhan MBA( Banking and Insurance) 13051

University Institute of Applied Management Sciences Panjab University, Chandigarh
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Table of Contents

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Content

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1 2 3 4 5 6 7

Acknowledgement Certificate Introduction Review of Literature Objective of Study Research Methodology Results and Analysis -Competitor’s Analysis

3 4 6 18 21 22 23 36 42 44 47

8 9 10

Suggestions and Recommendations Conclusion Annexure

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ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them.

I am highly indebted to Dr Pooja Garg for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

I would like to express my gratitude towards Dr Pooja Garg for providing me assistance in the project. Without her help it would have been really very difficult to complete the project.

My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

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CERTIFICATE FROM THE CANDIDATE

I, …………………, student of MBA (………………………………) Roll No. ……… do hereby certify that the Project work titled……………………………………………………………….…… ……………………………………………. is a bonafide work carried out by me.

Signature of the candidate: ______________________ Name: _____________________ Branch: ___________________ Roll No.____________________

DATE: _____________ PLACE: ____________

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CERTIFICATE FROM THE GUIDE

This is to certify that the project work titled …………………………………………………………………………………… ….is a bonafide work carried out by ………………………...……………….. …………………………………………………………………………………… …………..……………………………………….. Roll No.………………… a candidate for the MBA……………………………………………. examination of the University Institute of Applied Management Sciences under my guidance and direction

SIGNATURE OF GUIDE NAME: DESIGNATION: NAME OF THE ORGANIZATION: ADDRESS:

DATE: PLACE:

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Introduction
DELL was founded by Michael Dell in 1984. He believed that consumer needs could best be understood by interacting directly with consumers and providing the most effective computer solutions. The company now has its presence in all the continents and is a prominent player in the laptop market. DELL initially started as PC‟s Limited. It was the first one to sell custom built computers and notebooks. In 1990’s it started with www.dell.com and this portal become one of the leading e-commerce and customer support site. DELL also launched into an array of other products like printers, projectors, servers and storage. DELL has tasted success on Indian shores as well. It has its largest presence outside United States in India with 14000 employees who serve on teams in domestic sales, research and development, manufacturing, customer support, services and analytics. It is number 4 in India and fastest growing PC Company. In India Dell offers a wide range of personal notebooks – Inspiron and Studio for the Home users; Vostro and Latitude for the business users. The Unique Selling Proposition of the Dell product however remains its extensive customization options, which gives the consumer a very large number of configurations to choose from. Dell is also renowned for its post sales services, which include – ―Dell on call‖, ―Dell Business Support‖ and ―Your Tech Team‖ etc. Price ranges for the laptops have again been optimized keeping in mind the Indian markets, and affordability is the key. Dell pioneered the unique direct selling model and is reaping its benefits in India as well. However company has also launched specialized retail stores and has tied up with multi-brand outlets too. For its
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promotion the company relies heavily on print media but lately it has launched TV campaigns as well specially in the SMB segment.

The Indian notebook market has seen high growth rates in the past few years and the consumers today enjoy the luxury of a very competitive market with a wide product and price range.

Marketing Mix
1. PRODUCT: Dell offers a broad range of laptop series from Inspirion Mini to systems exclusively designed for small businesses to fully certified mobile workstations to fit customer needs and budget. Their offerings can be classified under two main categories: Home Laptops include Inspiron Mini: These are designed to keep one connected especially when one is on the go,  Inspiron Laptops: These mainstream laptops are built for everyday use.  Studio Laptops: They offer a balance of style, functionality and performance with personalization inside and out and are available in 14", 15" and 17" models in a variety of colors, U-trim options and artist designs.  Studio XPS Laptops: These are designed to deliver the ultimate multimedia laptop experience.

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Business Laptops include Vostro: These are for Small Business with simple networks offering hardware security options to help keep data safe.  Latitude: These, meant for Corporate Class Laptops, Organizations with growing or established networks and IT infrastructure, rank high in durability testing.  Precision Mobile Laptops: These are for specialized professionals in industries Dell gives power in the hands of the buyer to choose/configure the design from among the widest possible option in the laptop industry, to add or remove features such as add on softwares, graphic cards, peripheral devices, color etc as per their requirement and budget. Dell provides extended support services ―Dell on call ―, ―Dell Business Support‟ and ―Your Tech Team‟. Further, Dell's wireless architecture provides the fastest Wi-Fi connections. Dell's laptops help remove more dead spots in the home or office than any other leading small business laptop provider. There has been 93% success rate of users using Dell Network Assistant to connect to a network versus 66% without Dell Network Assistant. 2. PRICE:  Dell has set different types of price based on the home user, small business user and medium or large business user. It starts as low as Rs. 25000.  Dell's site offers consumers the power to "choose and control." Buyers can click through Dell and assemble computer system piece by piece,
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choosing components like hard drive size and processor speed based on their budgets and needs.  The company's strategy of selling over the Internet with no retail outlets and no middleman has helped to cut the supply chain cost that further helped to reduce the price of the product.  In the past, the company focused on keeping profit margins high, leading to strong profitability, robust revenue growth and relatively high average selling prices on its laptops. Now, with the maturity of the market, Dell is undercutting competitors in price to rapidly gain market share.

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3. PLACE: Dell’s Direct Selling model

Bypassing the conventional model of selling computers through the reseller channel, Dell has pioneered a unique direct selling model, delivering individual computers configured to customer specifications. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This ―pulls system‟ helps avoid overproduction and allows for implementing a just-in-time manufacturing approach which minimizes inventory. Since the days of the original dominance of telephone-ordering, the
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internet has significantly enhanced Dell’s business model, making it easier for customers and potential customers to contact Dell directly. Dell has now come up with Exclusive Stores and Experience Zones to allow customers to touch feel and experience the products in retail stores- Croma, E-Zone and Staples - in various cities like Delhi, Gurgaon, Mumbai, Pune, Hyderabad, Chandigarh, Ahmedabad, Bangalore. 4. PROMOTION: The Promotion-mix of Dell consists of:  Advertising: Dell has primarily relied on print and electronic media for promoting its products. In recent years Dell has been the second largest spender on print ad campaigns in the IT sector, closely following HP. It has been aggressively promoting products such as Inspiron, which was amongst the top advertised IT sector brands in the country. Online media campaigns encompassing popular sites with promotional efforts such as contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising etc. have been equally important for the company.  Sales Promotion: Some of Dell Inc's sales promotion strategies include lowering prices at all times of the year, offering free bonus products (such as Dell printers), and offering free shipping in order to encourage more sales and to stave off competitors. In 2006, Dell cut its prices in an effort to maintain its market share. However, this also cut profit-margins by more than half, from 8.7 to 4.3 percent. To maintain its low prices, Dell continues to accept most purchases of its products via the Internet and through the telephone network.
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 Direct Marketing: As described earlier, Dell is the pioneer in the ―configure to order‖ approach to manufacturing – delivering individual PCs configured to customer specifications directly by acquiring orders through telephone and internet. Recent initiatives of Dell include Out of Home (OOH) marketing as well as Dell's first ever major digital campaign in the Asia-Pacific.

Business Solutions provided by Dell Computers
A. Mobile Computing Keep your mobile workforce connected, secure and productive. Mobile computing has changed the business world. Until recently, an office full of workers meant success — not anymore. Successful businesses are realizing that when you free employees from the office, you can get closer to customers, gain productivity and improve market presence. But business mobility means more than distributing a Smartphone and laptop to your workforce. It means using the right software and services that keep the team connected. It means helping control IT costs, company data and assets. With Dell™ mobility solutions, you can design or add to your mobile infrastructure in a way that helps support your growth now and in the future.

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Open, industry-standard technology:With Dell mobility solutions, you can choose the right solution to support how your business runs today and retain the flexibility you want in the future. Providing a range of devices, connectivity options, software and services, Dell mobility solutions can help you achieve outstanding performance across your organization; and you won’t get locked into proprietary operating systems or devices that could limit your business growth. Single products or end-to-end solutions:Dell can be your single-source mobile-workforce provider. From back-office server and management software to mobile devices and secure application access in the field, Dell can show you how to make mobility a powerful productivity enabler for your business growth. Secure data, access and devices:Mobility can improve your business, but if managed incorrectly, it can also put your business at risk. With data encryption spanning from the endpoint device to the server, and with more visibility through administrative controls, you can help keep your business safe and secure with the advantages of Dell’s multilayered mobile security solutions.

B. Layered Security Solutions
A number of cybercriminals, hackers and identity thieves have become more sophisticated in creating multistage attacks. Your risk grows as your workforce moves beyond the traditional office space to anywhere an internet connection is available.
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No single technology can keep pace in protecting your business from these threats. Developing a comprehensive security strategy that addresses risks and vulnerabilities at each access point keeps your data safe. Dell helps you create an end-to-end security strategy with technologies and services tailored to help you meet your business' security requirements. Dell delivers comprehensive solutions to help you identify the appropriate technologies and services to manage your risk, regardless of the resources available to manage security. This multilayered approach organizes security into solutions that help protect your assets, comply with regulations and ultimately help you reduce security costs. I. Security services help you optimize the value of your security investments and resources, even if you have limited staff or expertise focused on security, by providing a range of device monitoring, management and security consulting services. II. Network security helps you protect your business and data from malware, viruses, worms, spam or intrusion by establishing a preventative barrier at your gateway and network devices. III. Endpoint security lets you reduce the risk created by critical data on PC, laptop, server or mobile devices and helps prevent destructive attacks with up-to-date security policy and anti-virus management. IV. Data security controls access and helps protect sensitive data on your network and devices, especially if lost or stolen, by using unique access codes or hardware and software data encryption.

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C. Virtualization
What is Virtualization? Today’s conventional computer hardware was designed to run a single operating system and a single application, leaving most servers vastly underutilized. Virtualization eliminates the one-application-per-server model and allows your business to unleash available capacity from physical assets. Rather than locking the various layers together — the operating system (OS) to the hardware, the application to the OS and the user interface to the local machine — virtualization allows multiple, independent operating systems and applications to run "virtually" on a single server, making the most of each physical server’s capacity. Benefits of Virtualization  Manage all your resources — from data center hardware and software to time and people — in an efficient, open and affordable way.  Run multiple applications and operating systems independently on a single server  Move workloads easily from one virtual workspace to another  Configure and deploy new servers in a few minutes instead of hours  Reduce equipment and maximize server resources  Lower data center costs significantly with power and labor savings

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Virtualization Solutions Your best virtualization strategy depends on your goals and on the demands of your specific environment. Dell can help you understand both. Whether you're a small organization trying to extend the value of the resources you already have or a large data center that's pushing the automation envelope, Dell delivers solutions that makes sense for your budget, staff and business. I. Server Consolidation: Slow (or reverse) server sprawl, reduce costs, improve utilization and help regain control of your IT by consolidating servers with virtualization. II. Storage Virtualization: Simplify cumbersome tasks, such as allocating storage, load balancing, configuring RAID, and backing up and restoring data. III. Client Virtualization: Simplify the process of maintaining, distributing and patching applications, as well as reducing desktop management labor and staffing cost. IV. Application Virtualization: Accelerate application deployment, simplify application migration and provide users anywhere access to applications without application installs. V. Disaster Recovery: Reduce the time it takes to protect and recover data from hours to seconds. Components of Virtualization With a broad range of products and services that deliver outstanding value — and strategic partners that provide industry expertise — Dell can help you achieve the full benefits of virtualization technology. Our world-class, standards16

based virtualization solutions provide flexibility in your selection of hardware, software and services components.  Dell PowerEdge Servers provide the ultimate design for virtualization. Innovations including additional memory, input/output (I/O) capacity and optional factory-integrated hypervisors help deliver the performance and manageability you need.  Storage technology that scales up easily with business continuity built-in, giving your company continuous access to critical data. Dell offers multiple shared storage platforms, including EqualLogic and Compellent, to help you take full advantage of advanced virtualization capabilities, such as workload management, high availability and disaster recovery.  Networking products that maximize throughput and port density. Dell offers standards-based networking fabrics that are fully virtualized, cloudenabled and highly automated.  Software options from the three leading virtualization software providers, VMware, Microsoft and Citrix, giving you the flexibility to use what works best with your infrastructure.  Consultation and Support from Dell experts who specialize in evaluating, recommending and supporting virtualization technology for small and medium businesses.

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Review of Literature
In a work done by professor Pinegar on March 13th , 2002 an attempt has been made to study the market trend and SWOT analysis of Dell Computers. It was an in-depth study to analyze the market trend and also analyze the Strengths, Weakness, Threats and Opportunities of Dell computers. Laptop industry is one of the fastest growing segments of the computer industry. The paper discusses the change in the demand of the customers with the growth and development of the market, the awareness of the customers and various other factors related to buying behavior of the customers. Generally the overall market is being influenced by many such factors. One in particular is affecting the market more than any other. Simply customers are becoming more educated about their purchases. Amongst the strengths of dell computers are:1. The Direct model relative to the laptop market that allows consumers to fully customize their laptops. 2. The Direct model yields relatively fast delivery of the product. 3. Dell has advantage in their inventory turnaround time. 4. A well controlled relationship with the suppliers. 5. Targeting the business executive category, 75% of the business comes from large organizations and governmental organizations. According to the paper the Weaknesses of dell computers are:1. Significant weakness in targeting the college student segment of the market.
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2. The buyers cannot physically touch or feel the product while buying the product. 3. An anxious buyer would have to wait for a longer period of time, that’s the price of the customization the customer has to pay. Amongst the Opportunities of dell computers are:1. The Direct model can provide the framework for the customers to make truly personalized computers in a relatively hassle free environment. 2. Increased communicational and technological integration also creates great opportunities for Dell. Amongst the Threats of dell computers are:1. Price difference between the different brands is getting smaller and smaller. 2. Many of dell competitors are now becoming the substitutes. 3. The quick pace of technological advancement is a great opportunity but it’s also a threat. Another research work was conducted by S.Sriram(Ross School fo Business, University of Michigan), Pradeep K. Chintagunta(University of Chicago), Ramya Neelamegham(Amrita University - Amrita School of Business) on Effects of Brand Preference, Product Attributes, and Marketing Mix Variables in Technology Product Markets. The paper answered the following questions

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a) What are the relative importances of intrinsic brand preferences, prices, product attributes, and number of models in driving the performance of a brand? b) Does advertising play an important role in driving preferences? c) If so, would it pay for brands to increase advertising spending? d) Under what circumstances would it be profitable for brands to engage in product development efforts that would lead to an improvement in the attributes of some of the existing models? It was found that intrinsic brand preferences have a much bigger effect on the performance of the brand than the inclusive value which reflects model level prices, product attributes, and the length of the brand’s product line. Some brands can increase their advertising expenditures and still increase their profitability, For example Casio. International Journal Of Management And Marketing Research Lassar, Mittal and Sharma (1995) in an early study of customer-based brand equity (CBBE) measurement identified five constructs. These include performance, social image, value, trustworthiness and attachment. Yoo, Donthu and Lee (2000) consolidated these five, and used three measures to test CBBE. The researchers measured perceived quality, brand loyalty and brand awareness/association (as one construct) in a three product (athletic shoes, camera film and television sets) study. Yoo et al. (2000) did recognize the marketing mix elements (marketing efforts) as antecedents of brand equity, and operationalized the marketing mix as (1) price, (2) advertising spending, (3) price deals, (4) store image and (5) distribution intensity
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Objective of the study
This research aims to study the following aspects: Motive of buying the laptop.  Factors affecting the buying behavior of the customer.  Study the Marketing Mix of the Dell Computers.  Competitor’s analysis.

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Research Methodology
Research Methodology is generally defined as, scientific and systematic search for information required on a specific topic. In short research is an art of scientific investigation, a movement from known to unknown. Research comprises defining and redefining problems formulating hypothesis or suggested solutions. Research methodology refers to the tools and methods used for obtaining information for the purpose of the subject under study.

Scope of the study:To fulfill the objectives of the research, a study will be undertaken to identify the requirements, buying behavior and analysis of the competitors.

Sources of Data:The major source for collecting the data for analysis will be primary data. The Notebook Consumers in India can broadly be divided as Retail and Institutional Customers. The Retail Consumers are the main focus of this report. For studying the Behavior pattern of the retail consumers an online survey will be conducted amongst current owners of laptops of various brands. So the major source of data is Primary. In order to deal with the institutional customers secondary data will be used. Questionnaire:The questionnaire is to be filled online using google docs
https://docs.google.com/spreadsheet/viewform?formkey=dDMtMU5MX3BGdmJYZ1dhTGxodVdVY1E 6MQ 22

Results and Analysis
The survey was taken on 57 customers and the result from their responses has been compiled in the following analysis:-

A) Need Recognition:We identified the following basic needs of a laptop user: a. Entertainment: Watching Movies and Listening to Music b. Surfing the Internet c. Preparing Presentations and Documents d. Designing and Using Specialized software.

3, 5%

4, 7% movies music or entertainment 23, 40% Presentation and documents gaming

28, 48%

Designing and specialized software

Clearly the presentation and documents and Entertainment are high on customer’s preference list.

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B) Information search of the product:The following data was observed regarding how the customers search and collect information before purchasing the laptop:-

For all the laptops
1, 5%

3, 14% Internet 10, 45% Friends and Family Outlets Magazines etc 8, 36%

For dell laptops
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Here, we see that the primary source for finding information about which laptops to buy is made from the feedback that consumers receive from Internet and their friends and family. This is understandable as a laptop is a high involvement commodity, i.e. consumers in normal circumstances buy one laptop and since it is an expensive commodity, they make their purchase after thorough evaluation. Since feedback from other users provides the consumer with correct information on reliability, quality etc, and since it is a commodity with high involvement, the consumer is willing to go that extra mile and take the effort of consulting his friends and family on which laptop to buy. We also notice that Internet is also a popular source of information and the share increases even further for Dell laptops which sell their products online. Company outlets are the last source of information used by the consumer. Dell until recently had no company outlets and hence this source of information was not available to the consumer. This is reflected in the fact that only 14% of consumers availed this option.

C) Evaluating the attributes:The major factors influencing a consumer’s purchase decision were identified as:a) Product Features - [Configuration requirements]. b) Price. c) Product Quality – [Brand Value and reliability]. d) Value for Money. e) Customization options available

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9, 16% 21, 37%

1, 2%

Best configration Lowest Price Best Configration in my budget

25, 45%

Brand value and reliability

For all laptops

4, 18%

5, 23%

Best configration Lowest Price Best Configration in my budget Brand value and reliability

3, 14% 10, 45%

For Dell Laptops As shown above majority of respondents to the survey chose “Value for Money” offered by their laptop as the deciding factor for choosing a particular brand. Amongst the other factors, Product Quality, which in this case is directly identifiable with the Brand Value and reliability of the product, was the major
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driving factor for some of the consumers. The survey reflects that a number of consumers were willing to shell out extra money and stretch their budgets in order to choose a product with features best suited for their usage pattern. Price was not as much of a deterrent as very few consumers were wont to be driven by the Low Price tag of a product. The relative unpopularity of low cost brands such as Acer further enforces the assertion. For Dell Laptop owners “Value for Money” turned out to be an overwhelming priority. Dell Laptops were chosen for the configuration they offered for a given budget of the consumer. However Dell’s Brand Value and Reliability played comparatively little role in Consumer’s decision making. Thus Dell still retains the perception of a Value for Money brand rather than a “Quality” brand; however this is in sync with their Mass market strategy. Since Customization options are more or less specific to Dell laptops thus Dell has a clear edge over the competition with respect to this attribute. This attribute has been stressed in the following topics.

D. Purchase
The Purchase patterns of the consumers are varied across different brands. The important purchase options includeA. Brand Outlets. B. Multi Brand retail stores. C. Brand website. D. Multi brand online stores.

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While most brands rely on brand and multi brand outlets, Dell with its direct selling model has a high online presence and processes a lot of orders from its website to provide home delivery to its consumers. Dell is renowned for its direct sales to customers by phone, Internet and now through e-business enabling consumers to go through the whole sales process online. What is less well known is that Dell, in 2005, took on 150 salespeople to sell their products in United Kingdom/Europe. The reason for this change from direct selling to personal selling is that the cost of a salesperson for an individual customer makes no economic sense, but if you are selling many computers, printers, servers and other products and ancillaries to one customer then personal salespeople are required to understand the customer’s needs, offer appropriate solutions and sell the correct package. In this regard, Dell must compete with HP and IBM for business customers on a more personalized service basis.

E. After sales and Post Purchase behavior
After sales service is a very important component for any product as it directly influences the post purchase behavior. This is extremely important for a commodity such as laptops. The following was the customer opinion about after sales service:

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1, 2% 5, 9% 13, 22% Excellent very good 18, 31% Good average 21, 36% Poor

For all Laptops

0, 0% 3, 14% Excellent 8, 36% 4, 18% very good Good average Poor 7, 32%

For Dell Laptops

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Laptops are a product of high involvement for the consumer. As we discussed in the previous sections, family and friends are the primary source of information in the laptop market. Thus, providing the consumer with a good after sales service ensures good post purchase behavior for the company. Thus, we see that in the laptops market, after sales service is often satisfactory. Approximately, 3/4th of respondents felt that the company’s after sales servi ce was either excellent or very good. This fact is highlighted when we take special reference to Dell. No respondent was disappointed with Dell’s after sales service and nearly 4/5th of them found the service to be excellent or very good. This is worth noting as until recently, dell had no outlets for customer grievances and all complaints had to be made via mail or telephonic conservations and yet the post purchase behavior of the consumer is satisfactory.

ADVANTAGE DELL
A look at the consumer’s ratings of the various attributes of their chosen laptop brands indicates how DELL fares vis-à-vis competition. A. Price Range Available

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0, 0% 4, 7% 10, 17% Excellent 17, 29% very good good poor 27, 47% very poor

For all Laptops

0, 0% 0, 0%

4, 18% 6, 27% Excellent very good good poor very poor 12, 55%

For Dell Laptops

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B. Configuration Available

1, 2%

0, 0%

12, 21% Excellent 21, 36% very good good poor 24, 41% very poor

For all Laptops
1, 5%

4, 18% excellent 10, 45% very good average poor 7, 32%

For Dell Laptops

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C. Add ons and Customization

5, 9%

7, 12%

Excellent Very good average 24, 41% 22, 38% poor

For all Laptops

0, 0%

5, 23%

6, 27% Excellent Very good average poor

11, 50%

For Dell Laptops

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D. Overall Satisfaction
2, 3%

11, 19%

12, 21% Excellent Very good average poor 33, 57%

For all Laptops

0, 0% 3, 14% 7, 32% Excellent Very good average poor 12, 54%

For Dell Laptops

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Clearly Dell averages better than the market in all the attributes for which the study was conducted. This is indicative of how Dell has been able to gauge the exact requirements and consumption patterns of the Indian laptop users and mould their products and Marketing strategy accordingly. Dell’s direct selling model has contributed significantly in delving consumer usage patterns A major case in point enforcing Dell’s superiority is the customization options they provide to the customers which is unique and has generated a lot of consumer satisfaction and loyalty. Results from the PC World India, Top Tech Brands of India survey conducted on around 5500 Indian consumers reflect similar patterns. Following is an excerpt from the analysis of the survey result – ―HP might be doing the numbers but the fact that almost 30% of buyers are eyeing a Dell laptop, and users are saying they would buy Dell again, speaks for a brand that has gained significant market share in a very short span.‖

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Competitor’s Analysis
While the sales of Dell laptops in India have been rising, in the face of some very stiff competition, it has every reason to keep its guard up given the hostile competition. HP and Lenovo are two of its major competitors in the laptop segment not only in India but also worldwide. HP is the largest selling player in India and has been growing in presence (combined with its sub-brand Compaq), through some very inventive marketing mix. At the same time, Lenovo’s Indian campaign has been losing sheen off-late, after the initial blitz. However given the untapped potential of the Indian market all the players can only be expected to make more aggressive moves to get a larger chunk of the pie. The two major competitors for Dell laptops that we have analyzed are HP and Lenovo. The choice of competitors is based on their performance vis-à-vis Dell’s performance in the market.

A.Hewlett Packard
 PRODUCT HP offers a wide range of laptops to its consumers. Some of these categories are:

HP HDX NOTEBOOKS: This laptop range is available for the high end user. It is the top range model offered by HP with the latest technological features such as high definition Ultra Brightview display, Dolby audio, HP Triple Bass Reflex Subwoofer, Blu-Ray, TV Tuner, NVIDIA GeForce and HP Media Premium scroll remote. There are two variants available in this series, the HDX 16 and HDX 18 model.
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HP PAVILLION NOTEBOOKS: This series by HP offers the maximum range of configurations to its consumers. There are 7 variants in this series, the dv2, dv3, dv4, dv5, dv6, dv7 and dv3000 HP pavilion notebook. Depending on the model, the consumer can thus choose between a variety of configurations. Pavillion notebooks come with the HP MediaSmart technology and also depending on the model, the design of the notebook.

HP MINI SERIES: The HP MINI series is ideally built for quick e-mailing and video conferencing with a built-in web cam. The MINI series with its comparatively small screen size of 10.6 inches (diagonal) offers the consumer greater portability. The product comes with features such as Brightview infinity display and an Intel Atom Processor.

HP TOUCHSMART NOTEBOOK: This unique notebook offered by HP features a touch screen display with a screen which can be swivelled and rotated as per convenience. The series is built with features for a superior multimedia experience such as Blu-Ray, TV tuner and an AMD core processor.  PRICE

HP offers its consumers laptops ranging from a price of 26990 to 65490. The laptop prices vary depending on the model selected. In the Pavillion series, prices range from Rs 38490 for dv2 Pavillion notebook, Rs 40990 for dv6 Pavillion notebook, Rs 50990 for dv3 Pavillion notebook and Rs 65490 for the dv5 Pavillion notebook. Thus the consumer has a wide price range available and can choose a model depending on his budget and affordability. The HP
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Touchsmart series is available at a price of Rs 62650 and the HP MINI is available at Rs 22,990. Thus we can conclude that whereas DELL offers its users a wide price range by offering customization on their laptops, HP offers price flexibility by giving a wide range of laptop models available.  PLACE HP India’s extensive distribution channel has been the key to its stupendous success in the Indian Laptop markets. HP‟s consumer products are available across some 1900 retail outlets in the country including 1500 multi-brand retail outlets and 400 HP Exclusive Experience Zones. One of the primary reasons for HP‟s numero uno status in the laptop segment is because of its HP exclusive stores that ensure that a prospective buyer is exposed to a wide range of HP products when the time comes to buy a machine. HP also has around 350 service centres across 155 cities thus ensuring a nationwide reach of service and support for HP products across the country. With such strong retail network HP has been able to serve all segments of the market and has been showing promising sales figures.  PROMOTION

Advertisements: In recent years HP has been the largest spender on print ad campaigns in the IT sector. HP also has aggressively publicized in the electronic media. In May 2006, HP introduced its campaign ―The Computer is Personal Again‖ which was followed by Dell’s ―Purely You‖ campaign on similar lines. Sales promotion: HP has over the years given several promotional offers to boost up sales. For e.g. HP has launched the Pavillion-TATA photon offer wherein the
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buyer gets a mobile broadband service from TATA with every HP Pavillion notebook. HP has also frequently come out with Student offers. For e.g. these days HP is offering a Philips 2GB Music Player or a Moto ROKR to all students who buy a HP notebook. Hp Total Care: Hp Total Care is a personalized service offered by HP to both personal consumers and business enterprises. These services help the user make a decision to purchase which product, installing the same, protecting it, upgrading it and so on, and thus promoting the overall HP experience as a delightful one.

B. Lenovo
 PRODUCT Lenovo has clearly segregated its product into 3 broad categories: LENOVO THINK PAD This series is available in several variants, the SL series which is the lower end model and the T series which is the higher end series. Besides these there are also the W series, R series and X series. The Think Pad series is popular for the business user as it delivers high productivity and lower costs. Select models deliver features such as magnesium cages and shock mounted hard disk giving the laptop flexibility for a rugged use. Similarly other models include latest features such as NVIDIA quadro based graphics, integrated digitizer and an integrated fingerprint reader to protect the files of the business user. LENOVO IDEA PAD The Idea Pad is built for an enhanced multimedia experience and is primarily meant for home usage or for specialized professionals. This series is available in the Y, S and U variants. Some features
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in this product range include Dolby home theatre sound system, Touch sensitive controls and Face recognition software. VALUE LINE NOTEBOOKS This series is available for the budget sensitive consumer. They come in two variants, the G series and the E series. The main feature of this product range is their affordability which makes them ideal for bulk buying also.  PRICE Lenovo laptops are available in the price range from Rs 20,640 to Rs 63,900. The price depends on the selected series and the model from that series which basically varies in the system configuration. Think Pads: The SL series price range starts from 36,500 and the T series price range starts from Rs 63,900. Idea Pads: The Y series idea pad is available for Rs 43,990, S series starts at Rs 20,640 and the U series starts at 33,740. Value Line: The value line notebooks start at a price of Rs 26,575 and majority of the notebooks in this series are around this price range only.  PLACE Lenovo’s market share has been dented substantially in the past. This failure has been attributed to the company’s inability to connect to the Indian consumers, and Lenovo’s sluggish distribution channel hasn’t really helped its cause. The company currently faces a shortage of retail partners. A consistent complaint of its retail partners has been the lack of profitability. Lenovo has close to 150 Lenovo Exclusive Stores (LES), and also sells through about 250 multi-brand stores. However Lenovo has taken up the task of revamping the distribution network very seriously and is looking to expand its retail presence extensively. It
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also plans to expand its service centres from 130 to 250. The online sales channel is fairly limited as well. While the company doesn’t sell any products from its own website some multi-brand online vendors such as Indiatimes, eBay, Cafegadgets etc. sell Lenovo products over the internet.  PROMOTION At its launch in India in 2006, following its takeover of the IBM’s PC division, Lenovo had launched a very aggressive marketing spree in India. Saif Ali Khan was chosen the brand ambassador for its products (especially notebooks), and the advertisements featuring him flooded the television and online media. Later his sibling Soha Ali Khan was also featured in promotional campaigns. These campaigns proved highly successful in giving the company that initial edge. The promotions have always focused on the USPs of its products. However the company seems to have lost the initial advantage, and has been lying low with its promotional strategies too.

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Strategic Suggestions and Recommendations
Dell’s prospects in the Indian Laptop market will clearly depend upon the way it is able to not only tackle competition strategies but also pre-empt their moves and capture emerging market segments. The company needs to rectify its grey areas and reap the strengths. Three strategies that emerge out from Dell’s Marketing Mix, Consumer preferences and Competitor Analysis are – 1. Strengthening its retail network: Dell’s direct selling model even though unique and successful has certain shortcomings. HP with its impeccable retail network and market leadership has shown the Indian consumers‟ preference to retail buying as compared to online purchase. Dell has made efforts in this direction by establishing Specialized Dell outlets and retailing through multibrand outlets but it lags HP by a huge distance. Thus this emerges a clear area of improvement for future growth in the Indian market. 2. Expanding the product range: Low cost Laptops (Netbooks), Medium range portable notebooks and High range feature rich laptops are three emerging segments in the Indian laptop market. Dell has very limited presence in either of these segments and has been concentrating its efforts largely in the conventional mid-range products. Competitors like HP, Sony and Lenovo have taken major initiatives in these segments with products such as HP mini and HP touch-smart, Sony Vaio W series and E series, Lenovo Valueline etc. Thus Dell needs to expand its product line-up keeping future market dynamics in mind.

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3. Highlighting Dell’s services: Dell’s key strength lies in the extremely user friendly online purchase model with very high customization options. At the same time Dell’s post purchase services are considered best in the industry as per consumer feedback. These two key features though are barely highlighted in its promotional activities. Thus not only does Dell need to strengthen these key areas it also needs to promote them extensively.

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Conclusion
With a CAGR of 76%, major global players and a sufficiently mature Indian consumer base, Notebooks is where the major action seems to be shifting in the Indian Computer hardware industry. With saturating developed markets, emerging markets such as India are the key to the expansion plans of all global giants including Dell. Dell’s marketing mix is built around the Indian retail as well as institutional consumer’s requirements and is unique in offering a direct to consumer distribution network and a multi layered customization option. The Indian consumers buoyed by a competitive industry have exercised high discretion in choosing a most suitable product for them. Notebooks have emerged as a high involvement product and consumer decision making is seen to be heavily inclined towards value for money products rather than feature heavy products. Post sales services are high on consumers‟ wishlist and are a must for consumer satisfaction. Institutional sales are equally important for all players and form a large chunk of all laptop sales. Consumers have largely been satisfied with Dell’s products and services and have rated them above industry average. However with the unrelenting competition it faces from companies such as HP and Lenovo the company must refurbish certain aspects of its marketing. The retail presence of HP has proved Dell’s Achilles heel in the Indian market and it needs to invest and buildup on its retail distribution. Also consumers have been showing a preference for futuristic products such as Netbooks and Touch-products where Dell needs to expand its presence. At the same time highlighting the unique proposition it offers in the
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form of direct selling and customizing options would go a long way in establishing Dell’s brand in consumer mindset.

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Annexure I

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REFERENCES
 www.dell.co.in  www.wikipedia.org  http://www.casestudyinc.com/Articles/Dell-India-Strategy.html  http://www.channeltimes.com/India/Columns/Dell_Adopts_Multichannel_Marketing_Strategy/551-91756-751.html  www.lenovo.com/in/en/  welcome.hp.com/country/in/en/welcome.html

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