INTRODUCTION

DELL Co. is the largest computer-systems company based on estimates of global market share. It is also the fastest growing of the major computer systems companies competing in the business, education, government and consumer market. Dell’s product line includes desktop, notebook computers, network servers, workstations and storage product. It was found in 1984 by Michael Dell founded the company based on the concept of bypassing retailers and selling personal computer systems directly to customers, thereby avoiding the delays and costs of an additional stage in the supply chain (Kapuscinski, R, and Zhang, R 2004). Dell’s vision was for Dell Computer to become one of the top three PC firms. The mission of Dell Computer Corporation is to be the most successful computer company in the world at delivering the best customer experience (Thomson, Gamble, 2000). DELL launched www.dell.com in 1994 and adding e-commerce capability in 1996. DELL became the first company to record $1 million in online sales. DELL is a premier provider of products and services required for customers to build their information-technology (Daft, R. 1999). It’s headquartered in Round Rock, Texas.

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STRATEGY IDENTIFICATION

MARKETING MIX
Marketing mix the set of controllable marketing variables that the company blends to produce the response it wants in the target market. Marketing mix consists of 4p’s, it contains everything a firm can do to influence the demand for its product and these are: A. PRODUCT Product is defined as anything that satisfies a need or want. It is not necessarily a physical object it can be goods, services and places (Walker, I. 2000). Dell offers wide varieties of products to its target customers (business class and consumer class), such products includes dimension desktops, servers, Latitude notebooks, printers, scanner, television and storage. However Dell’s are highly dependency in computer suppliers on creating their products, many of the suppliers are located in Southeast Asia, North America and Europe where they shipping the component to manufacturing plant in Austin, Texas for assembling and designing (Kapuscinski, R, and Zhang, R 2004).

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I. Dell sell its products at reasonable prices depend on the positioning of the product. B. Traditionally the major factor that affected buyer choice was price. Moreover. 2000). The existing price strategies adopted by Dell are as follows:     Direct business model Mass Customization Building pricing Strong promotion pricing 3|Page .Fig 1:1. loyalty programs and image have had a major influence. Headquarter locations of key Dell suppliers. idea of (Walker. PRICE Price defined as the sum of the values consumer’s exchange for the benefits of having or using a product. Therefore the price offered in Europe is quietly different with the price offered in AsiaPacific. it offers different prices depend on the needs and want of the customers and depend on the economic factors such as transportation cost and exchange rates tax. Recently non-price factors such as services. give-away. guarantees.

Furthermore Dell has recently started promoting its products through retailers like Best Buy. availability to customers. D. and direct marketing such as promotional materials. good transport infrastructure and attractive incentives (Arnold. et al. and forming a larger and diversified consumer base. it received a five year tax holiday. 1997). They use a number of different methods to maintain high awareness of their product/ services and promote its positive image of the company through advertising (on the internet. Wal-mart and Carrefour. proximity to markets and government incentives. PLACE It involves the activities the company undertakes to make products accessible and available to customers (Kotler. Staples. 1999). as Dell’s products are always available at the nearest dealer’s customers develop trust for the local dell thereby achieving the objective of gaining their trust in Dell products and services. 4|Page . 1999). catalogs and customer newsletters. sales promotion (online promotion). Dell’s decisions about where to locate their products are driven by the need to reduce costs while extending in the competitive markets by increase direct sales model around the world. Dell’s has among of the best promotion methods of any organization. et al. information infrastructure. reasonable wages rate. PROMOTION It refers to all activities the company employs to communicate and promote its products to the target audience (Kotler. Example Dell decide to open its first manufacturing center in the Asia pacific region in 1996 in Penang Malaysia because of proximity to suppliers. Given the need to have production and support capabilities in the major markets. television.C. labor cost. billboards). Dell selects specific locations based on a combination of factor of production such as raw material. market access. transportation. Dell has been able to affect the location strategy aspect of its market campaign.

product resale. Twitter. Yahoo. this includes all the important information that the customer required to get from any website for example the product/ services of the company.4 The website is quite friendly to the online usage. the prices of the product/services. Mayspace and Hi5 on coverage their promotion. the services they provided and the community forum. the price of the product. logos and headlines. See Appendix fig 1.WEBSITE AUDIT Dell’s homepage and layout is more attractive and convenience to the users. See Appendix fig 1. includes Google. account number or reference number. 5|Page . account and so on. MSN and also the company website link with social network such as Facebook.2 Dell’s website provide the company information and technical support in detailed to the online usage for instance the investors. newsroom. image of the products. and the website use different model on design and build the website this includes photographers.3 The Dell’s website can be open with a different search engine. See Appendix fig: 1. the history.

1999).Dell may have the opportunity to compete with large brands such as Sony. (Marketing teacher Ltd. Profits for the 3 months to July 2005 were in excess of $1 billion in US.ENVIRONMENTAL ANALYSIS 1. R. SWOT ANALYSIS Strengths  Dell is the world’s largest Pc Maker.(Marketing teacher. In 2004 Dell had to recall 4. 2008). With this. The firm has a large variety of products and components from many suppliers and there is occasional product recall from time to time. 6|Page . Stereo systems so reach customers desires. the organization can understand the customers’ needs clearly and can provide the most effective computing solutions to meet those needs respectively (Daft. Such products as printers have already been produced but now may consider going further into products such as LCD Televisions. representing a growth of around 28% in the share market.4 million laptop adaptors because of a fear that they could overheat during the usage. DELL eliminates unnecessary costs by excluding costs which are indulged with the middlemen in delivering its products and services to its desired consumers. causing electrical shocks and fires. 2008)  DELL’s core competencies are their cost strategy. It is all possible because Dell has been positioned as producing and delivering quality and innovative products and services to their customers respectively. Weaknesses  Dell’s weaknesses are that they rely on corporate clients. Samsung and others. 2008). (Marketing teacher Ltd. Opportunities  Dell has the opportunity to still grow and enter new products market. Dell is ought to pursue an extended diversification strategy by introducing other new products in the organization.

With this. This advancement in technology will surely bring similar opportunities . Dell can also reduce the number of its physical stores in different regions and costs would be cut. 2002)  Dell has been globalized in its operations and therefore fluctuations in the world currency market may pose a threat to its product prices. Majority of Dell’s competitors are becoming its close substitutes. Changes in exchange rates may also lead to potential losses for the company. 2002). 2002) Threats  Dells competitors are finding different strategies to maximize the low costs and various services provided by Dell and thus may find new ways of providing benefits to customers.(Professor Pinegar. 7|Page . The ability of a consumer to log on an online store and order a PC or even personalize a laptop has already led many benefits for Dell. Effective communication and technology related advancement may also lead to great opportunities for Dell Co.(Professor Pinegar. (Professor Pinegar.

Continuous to market on internet to gain larger market. Faster delivery. World’s largest PC maker. own WEAKNESS  Computer maker not computer manufacture (they build computer not develop).   They don’t have unique technology to offer the market. THREAT    Global competition on price and market share. Economic cycle.STRENGTH      Customization-customer’s specification. Making and selling low cost. Exposed to fluctuation in the currency markets (changes in exchange rates). Cheap than competitors. One of the best known brands. OPPORTUNITY     Demand for laptop is also growing. low price computer to PC retailer.   Technology advancement. Higher dependency on component supplier. Expanding to government and educational markets. Trade restriction such as tariffs and trade barrier. 8|Page .

9|Page . ECONOMIC The economic stability of a country determines the purchasing power and the potential ability of the customers. embargos. currency fluctuation of exchange rate and economic cycle. environmental law. However. They are different government regulation and legal issue such as tariffs. That the reason why Dell’s invested majorly in most European nations.2. taxation and so on. 2. Example Chinese government prefers to promote national PC vendors to foreign companies also they restrictive policies which are maintained to protect local firms and production such policies hinder foreign companies from entering into these markets. PEST ANALYSIS 1. their other economic factor which hinder Dell’s activities on its operation such factors are inflation rate. POLITICAL This includes government regulations and legal issues determining the conditions under the companies have to operate.

Dell’s is the largest direct-sales company in the world who related to technology such as computer. computers are get more and more involved in daily life now days Dell’s become more demanded by banking sectors. printers. SOCIAL CULTURAL Social cultural is concerned with a society’s attitude and cultural values. switches. This means the higher the educational standard is the higher the demand. network servers and more. Due to advanced on technology. TECHNOLOGY 10 | P a g e . Furthermore. health and other related factors which contribute the large expansion of Dell’s company. servers. educational institutional.3. currently Dell’s operating electronically and sells its products via internet. The national demand for computers is dependent on the educational level among the citizens in a particular country. 4. phone orders and mail to various customers. Furthermore technology allows it to make built-to-order personal computers which eliminate resellers and deliver direct to customers.

11 | P a g e . J. McElroy. Focus on new and existing users. J. K.E-MARKETING PLAN DELL E-MARKETING STRATEGIC PLAN  Segmentation: Categories Demographic     Descriptions It segmented its market to higher education/occupation Gender: Both men and women.S. Behavioral 1) Benefits   2) User status With its build to order and personal customization. 2003). Mitchell. Bloom. McElroy. to acquire new customers and retain the regular customers with different business incentives being introduced in the business so as to introduce loyalty to the consumers for the brand. Dell will provide various benefits to different types of customers. and Shanghai These countries are not only densely populated with middle class earners but are also fast growing economies with modern infrastructures (Ransford. Hong Kong. 2003) Geographic   Guangzhou. Corporate staffs of mostly middle class income group of customers These are the targeted audience who are eligible to afford buying a personal computer (Ransford.J.J. K.S. Bloom. Mitchell.

They segmented to the people especially higher 2) Lifestyle  income who need their product to reflect their personalities Dell has also target the lower income who can only afford the product with low price by giving them similar requirement but different specification of same products. and however transactional customers buy less frequently in small 12 | P a g e . Dell’s direct distribution to the customers and practice of custom built gives it a price advantage over major players such as Sony and Acer.e. these include medium-sized business market which includes companies with workers ranging from 100 to 2500 employees.Psychographic 1) Personality  Dell’s has segmented its market for people with a classy personality. Relationship and Transactional. Segmentation is not only the domain of consumer products but also fundamental to business-tobusiness operations in the daily routine of any business. Relationship consumers usually have long term contracts and buy in bulk. Dell has segmented its customers into two groups i.

Dell has grown its customer base and will change it from individuals to corporate users. This is especially applicable for allocating conserved resources. n. Dell’s online utilizes telesales teams to target transactional segment customers via mass marketing in its sales of its products For Dell. Dell also maintains its top positions internally within the direct channel and periodically re segments its customer base. V and Krawiec.D. This decision by dell to segment certain customers led to a change in its entire business model (Vishwanath. n.d). A. by targeting a niche market Dell needs to concentrate on mass customization in a short period of time and also maintain quality standards at the same time (Unknown. The table below illustrates the segmentation strategy applied by Dell. However. customer segmentation has been a powerful strategy.amounts. It will base offices in different countries of the world as strategic plan due to the fact that it would be able to reach the niche market effectively ("Dell Launches New Consumer Advertising Campaign" 1999). Dell tends to believe in industry wide collaboration but also in globalized collaboration. Dell’s target segment was almost all customers available worldwide but currently.d) Targeting: Earlier. 13 | P a g e . for formulating strategy and as a direction for allocating the company’s resources.

Positioning: Dell needs to rejuvenate its positioning strategies in such a way that they should be in accordance with its target market and deliver superior customer value. Product differentiation Dell’s offer the product according the budget of the customer and not only that but also according to needs and want of the customers. 14 | P a g e . Dell has a wide range of consumers from scattered parts in the world with their own distinct needs and wants. Therefore.This system is what differentiates them from their competitors and also helps the company to understand their customers’ needs through feedback on the community forum and finding solutions to satisfy those needs. it make the customers to feel they have received value for their money. And it is the helpful for that customer who are unable to visit the physical stores just can buy online. Differentiation i. Example in China Dell needs to position itself as the ultimate low cost producer thus providing quality products. ii. The target market feature must be changed accordingly so as to tailor products to these corporate needs. Normal the low price are quite attractive to customer especially the product offer are in good standard and quality. Channel differentiation Dell has a system of ideally selling their products directly to customers through online (ecommerce) . Dell needs to maintain a unique but integrative marketing strategy so that the industry has a niche in each of the markets in which it manufactures products. However the government regulations of these different nations may limit its potential to position its products effectively and thus Dell may have to reposition its locations by shifting to more substantial trade policies (Kraemer and Dedrick 2004).

c) Product/services positioning Dell’s website provide updates for the products in their website and price of each product. Toshiba and Sony on producing the product which are in low price but in a good quality. faster delivering and mass customization. thus it is more necessary for the company website to be more updates on their information. also they usually address their customers about the price of the new products through email address.There are 3 ways that dells position a website online and these are as follows: a) Competitor positioning Dell’s website has positioned itself against other PC industries such as Compaq. engaging in effective PR. it shows that Dell lacks behind in building long term meaningful relationships with customers and they also need to build a unique differentiation in order to eliminate the threat of new entrants in the computer market in China. Strategies will include adopting effective CRM. Marketing Objectives: Referring to the situation analysis. Thus the main objectives of the E-marketing plan will be:  To adopt relevant strategies in order to build meaningful long term relationships with potential and to acquire new customers. b) Benefit positioning Dell has positioned itself against other PC industries on benefit positioning for example they provide free technician at the customer home place whenever the customer face problem regarding the Dell’s products. 15 | P a g e . Maintaining public relations. Accer.

Providing solutions which are intended at enabling smarter decisions and outcomes of customers to overcome their everyday obstacles and problems regarding technology. The company also has an objective of helping their customers with the collaboration of technology achieve their ideas and also to follow their dreams and promote a long term value to help them grow and flourish (Content dell.2010) Promotion Strategies The company uses the method of gathering the information about the visits of customers to their websites.com and other sites more relevant to their customers.   To deliver exceptionally affordable and reliable systems for the target audience in the market. E-MARKETING STRATEGY Product Strategies Dell produces products which match the standards which was set by IBM and the standard that most of its customer’s desire and need. the company has a competitive advantage over its competitors due to the fact that it listens or pays attention to the needs of its customers and produce products and services which are in accordance with those customer needs (Scribd.(Scribd. or responses to Dell ads and e-mails to make or create the Dell advertisement seen on the dell. (Dell. such as the pages or items they usually view or place in their online shopping cart. Price Strategies Dell’s strategy on pricing is based on the fact that they can provide their customers with low priced products and services as cheaply as possible compared to their competitors because of the fact that they are able to avoid the large expenses of having to deal with a network of retailers and wholesalers. 2010) 16 | P a g e . 2010). 2010). Also.

internet and wireless. network switches. about Dell and the Dell community as a whole.  Search for My Problem For customers who require answers or information. software and operating systems. (Support dell. mobile devices. laptop. peripherals. building computers to match order specifications and ensuring products are delivered within a few days depending on the location of the customer (Ups-scs. 2005). Dell has a search engine that helps those customers in searching the company’s extensive knowledgebase and forums for answers in areas such as products. 17 | P a g e . The forum sessions are grouped into forum rooms for desktop.  Chat online with the Technical support Dell also has in place an online chatting service which provides customers the option of chatting in real time with the company’s technical support for troubleshooting and issue resolution which includes both hardware and software devices and application. servers. Dell has three separate support services to help provide their buyers with the necessary information they require and also provide support. services and solutions. networking. storage and virus and spyware. 2010)  Ask Dells Community Forum This helps customers get answers to questions from other users of Dell on an online community forum. support and help. E-MARKETING TACTICS In practicing E-Marketing. disk drive.Distribution Strategies Dell has managed to control the cost involved in distributing its products and services by gaining direct orders from their customers.

Card holders will be given a discount on purchases. This program will also help Dell to build a strong relationship with potential customers. In regards to the debit card. A various range of rewards will then be available corresponding to the number of points the customer has and thus customer may regard Dell as the first choice when purchasing PC related products.RECOMMANDATION Feedback system: In order to develop and build new meaningful relationships with potential and new customers Dell will introduce its new feedback system. Special gifts and rewards will be sent to those people who respond to the feedbacks form monthly. email address. This will be useful for Dell in promoting their new products by personally sending brochures to potential customers about new products and services being offered by Dell. Loyalty program: The loyalty program will involve use of a loyalty card that can also be used as a reward and debit card. Regular consumer’s information will be stored in the company’s software and thus a more special discount will be given to them accompanied by additional after sales service such as uploading monthly updates. This will encourage members to buy online and thus leading to reducing administrative costs. occupation etc. After the customer makes a purchase from Dell (the purchase can be as small as a pendrive). Users can upload the card with any amount of money and use it for any Dell purchase at authorized dealers. residential area. 2003). The card can be used for online as well as physical purchase. 18 | P a g e . he will get a certain number of points that will be stored in the card. The card will serve as part of the loyalty scheme in an effort to maintain dialogue with the customers using online communication (Chaffey et al. The information can also be used to identify potential locations populated by middle class income earners and thus adopting effective marketing strategies for the particular location for business. A special section in the feedback form will also allow customers to suggest what additional feature would be included in the upcoming computer model. The customers will be required to give some information about themselves such as name.

To bring about the desire and to encourage purchase of the card the first 200 users will be given 500 free points and also various gift vouchers for the first ten people who purchase the card. 2005). Advertisements would also be put up in various most visited websites and also social networking websites in China. 19 | P a g e . Here the customers can either use a feedback quotation from being sent to them every month by post or even go online and access it after logging into their accounts. the feedback form will also help to identify potential areas of advancement where they are lacking behind and also better understand the preferences of computer users in China. Various road shows and exhibitions will be held in selected locations so as to bring awareness to the public in different locations. Promotion will also be done in highly visited restaurants such as Chilies and Burger King Then the feedback system and loyalty program incentives will be implemented. Using the Aida Model. Awareness will first be created using advertisements in social networking sites and promotional campaigns that will be held in favorable locations such as multinational firms. These sites include New wave. Apart from the Forum or blogs available online. Potential customers will be contacted and be sent personal invitations. Soho and Capital online (Runckel. Local organizations etc. W.C.IMPLEMENTATION PLAN The proposed Dell E marketing plan will be implemented effectively as follows: The feedback system will first be introduced through online and offline methods.

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