Marketing Plan for Dell Inc

1. Introduction Today electronic electronic computing machine intentness has be cope whiz of the close attractive industries both in monetary value of growth and viability. It is also considered as one of those industries where it is so gravid to survive for the companies in it. The prevalence of the likes of HP, dell Inc. and IBM has resulted in the fierce challenger in this industry. These abovementioned companies struggle to advance to a greater extent than foodstuff sh atomic number 18 or to be the scoop player in the industry. These report analysis bunk analysis, SWOT analysis of dingle Inc. long with the milieual detailors which could be likely influence on its accepted and future bloodline operations. . It also illustrates the beau mondes future objectives and also grocery storeing strategies set to achieve those objectives and to gibe that the attach to is one of the industry leaders. 2. Background It was initially named as PCs bound, and then co nverted into the dingle Comp whatsoever which was named after the Michael dell, who founded the confederation in 1984, when he was a student at the University of Texas at Austin.Thats Michael dell who came up latch oning signal with the idea or belief that selling individualised electronic information processing system systems draw a bead only to nodes enables them to interrupt understand guests needs and helps them to offer the beat out solutions to meet those needs. It was in 1985 when M. dingles bon ton first construct their initial computer which was sold for US $795. dingles PCs express ships comp whatever would assemble computer units based apiece individuals needs, orders or selections. That would give customers pretty much affordable price and more convenience than having to assemble those components on their own.Despite the accompaniment that it wasnt the first company to apply this method, it was al well-nigh the first to accomplish it. Even in its fir st year of trading, the company managed to reach pretty much admirable sales, about amounted to $73 million. In 1988, the company was given the name of the dell, founder of the company. following 2 years, they decided to phase out their direct selling method, and start using w arehouse clubs or computer stores to sell their computers. Realizing that it didnt engage any success, they got back to their more effective direct-to-consumer archetype.In 1996, the customers were offered an some divers(prenominal) convenience, which is a website by intend of and through and through which consumers could buy the companys growths virtually. In 2002, the company expanded through entering the other grocery stores such as television, audio players and printers. Since 2003, the company has been direct under the name of dell Inc. (Michael dell, 2012) 3. Current situation and transmission line procedure Since its emergence in 1984, the company has not sightly struggled to survive in h awkish computer food market place but also been able to tower the market to some extent.Now its not simply a company with $ 1000 capital as it used to be initially, but has sullen into a huge multinational computer technology corporation which is presently producing top-quality lap-tops, netbooks, PCs, printers, s arouseners and other computer- related to products. Dell Inc. has been growing remarkably in terms of both customerbase and acquisitions. Atpresent it employs approximately 105000 people around the world. The CAO of the company is Michael Dell, Ameri endure handicraftman. Dell Company is famous in general for its ability to apply direct-sales standard and its tack together to order approach.Specifically, it skunk configure individual PCs based on customer specialations or order. (Michael Dell, 2012) 4. Marketing Environmental Analysis of Dell Marketing environment refers to the outside factors that can be influence on the companys ability to develop and fight back successful customer relationships with their target market. Those forces take competitors, demographics, economic, political/legal, sociocultural, technological and global ones. 4. 1Competitors Prevalence of tough competitors such as HP Company, IBM Corporation, and Apple Inc. gain always struggled with Dell Inc. or capturing customers and securing more market distribute. (Michael Dell, 2012) Hewlett Packard Company leads in the industry based on its market share with 27. 3 %. The second place belongs to Dell Inc. with slightly note percentage, 26. 3 %. The other competitors, IBM and Apple Inc. have 14. 9 % and 8. 5 % market shares respectively. (Lord, R. , 2005)They all offer massive capabilities and are financially fit. This can relate the Dells ability to operate its byplay successfully. 4. 2Demographics Dell Inc. s products are currently sold in every corner of the world. That is wherefore the company has diversity of customers.Its products are mainly tailored and of fered to business professionals, doctors and others who capability need multiple computers. The reason wherefore the company put more emphasis on this segment is because 40% of its boilers suit sales have a go at it from this segment. Dell Inc. s products have mostly been purchased by women for the last decade. This trim down is soaring. Those women are mainly the owners of small businesses or work in direction positions. 4. 3 Economic Economic factors are also considered as a crucial part of marketing environment that could influence on the aim businesses or industry operates. Market and DemandSelling prices, economic situation, disposable household income, product advancements and availability of switch products are considered as the determinants of demand. Statistics prescribe that the demand for computer industry has been declining in the last 5 years by 3. 2% annually. (IBIS World 2010) However, this issue is estimated or predicted to shift into a positive side. gibe to the speculations, the global industry is forecasted to grow by 6. 2% annually at average. 4. 4 Political/ Legal Like any other industries, computer industry is also under the control of political and legal regulations.Those piano tuner frequency emissions regulatory, the anti-trust regulatory, the import-export regulatory agencies are in charge of regulating each single activity in computer industry. 4. 5Sociocultural Societal trends are always chemise in this computer industry. Consumers have switched to laptops from desktop computers which were in blue demand few years ago. Yet, the Emergence of I-pods and other computer cause systems are going to bring about another societal trend in the industry. Another changing trend is that most businesses are shifting to green marketing which involves producing more environmentally conscious products.Computer industry has also not been exception to that change. To reinforce this statement, we can take Dell Inc. s recycle model. The company offers recycling old computers thereby contribute to environmental welfare. Another example would be HPs brisk model of computers that would consume much lower energies than the rest of the typical computers. 4. 6Technological Admittedly, computer industry experienced considerable instructions. Constant innovations and changes on products are beingness do by the companies in the computer industry. It is by all odds crucial for Dell Inc. o keep up with technological shifts so as to survive in the competitive industry. Wildly usage of e-commerce generating great loads of sales shows the sizeableness of keeping track of technological innovations. 5. Target Audience In at presents world, businesses are facing numerous challenges because of the harsh competition caused by the information of globalization. Thus, it has bring forth very tough chore for companies to survive or to be the best player in their industries. At present businesses are need to be competent in all spheres of their operations.Targeting the right market segment has also become one of the key factors for any physique of business. Therefore most companies are putting a lot of sample on considering their target market. Dell Inc. is also one of those companies. Its target market incorporates 4 segments. 1)Home and piazza offices 2)Small and medium businesses 3)Large businesses 4)G everywherenmental and educational institutions, namely Home and home offices segment consists of individual customers who unavoidableness to buy computers or other related peripherals for the use at home. These groups of customers are not price conscious.They mostly tenseness on the word of mouth when considering specific products. Approximately 10% of the Dells overall sales come from this segment. Small and medium business Companies employing 1 to 3500 people are called medium or small businesses. Dell Inc. is not keen on serving these customer groups. Hence, only 10% of its overall sales are gros sed from this segment. Large businesses are companies employing more than 3500 people, are the main target customers Dell usually responds. Therefore, the company grabs almost 75% of its total sales from bountiful businesses.Obviously, the company has already holded comforting relationships with large companies. Dell Inc. doesnt put a lot of hear on serving governmental and educational institutions. Hence, only 5% of its overall sales come from this customer group. (Fawcett, S. B. , Paine-Andrews, A. , Francisco, V. , Richter, K. P. , Lewis, R. K. , Williams, E. L. , Harris, K. J. , Winter-Green, K. , in collaboration with Bradley, B. and Copple, J. (2001) 6. Understanding the strengths and weaknesses of the business 6. 1 Strengths The Dell Inc. is one of the most popular and strongest companies in the world.Its strengths over the competitors enable the company to maintain successful business operations. Some of those strengths go forth be stated below -Dell Inc. is the largest PC maker throughout the world, which is why it has strong brand equity. In crook, the strong brand equity would serve the company as a good assistance to attract and grip freshly customers more easily. (Michael Dell, 2012) -One of the greatest strengths of the company is that it owns expertise on applying direct to consumer model which has unquestionably been the key for the companys current sustainable position in the computer industry. (Wolf, T. , 1990).The company achieves price decline through not including middlemen or retailers during the process of getting the products to the customers. Through this approach, the company manages to better understand customer needs, wants and to deliver superior customer value. Moreover, it enables the company to win the trust and loyalty from customers and to maintain long-term relationships with them. Another strength of the Dell Inc. is that it achieves cost reduction through maintaining sound relationship with its suppliers. This low ered cost will make it easier for the company to capture more customers, thereby plus its market share. Fawcett, S. B. , Paine-Andrews, A. , Francisco, V. , Richter, K. P. , Lewis, R. K. , Williams, E. L. , Harris, K. J. , Winter-Green, K. , in collaboration with Bradley, B. and Copple, J. , 2001) -Another great thing about the Dell Inc. is that it offers free repair and technical support. -It uses Internet as it applies direct model which gives customers convenience in terms of lower cost and saved time. This sure as shooting does entail customers add-value which is incredibly important in retaining customers. Finally, Dell Inc. has been able to put up sound relationships with large companies could be potential buyers of its products.Statistics say that its 75% sales are geared form the large business organizations. 6. 2 Weaknesses As an each business has certain weak point, so does Dell Inc. One of them would be its dependency on its suppliers. Dell Inc. usuallybuys the compone nts from large suppliers which constitute very few numbers all over the world. That makes it just impossible for Dell Inc. to switch its suppliers. (Berkowitz, W. R. , 1999). -Another weakness of the company would be the fact that it doesnt usually set links with retailers or middlemen as it mainly uses direct to consumer model. Another weak point of the Dell Inc. s that it doesnt usually put enough stress on serving college students as only 5% of its sales are grossed from this segment. The company needs to establish better relationships with educational institutions son as to increase its market share. (Michael Dell, 2012) The other weak point of the Dell Inc. is that it doesnt enable its customers to physically meet or see the product they want to purchase. (Fawcett, S. B. , Claassen, L. , Thurman, T. , Whitney, H. , and Cheng, H. , 2003) Customers can not just go to the retail store and come back home with a lap-top in a single trip.They are going have to have to wait for some days before their computers are customized to their needs. (Berkowitz, W. R. ,1999). 6. 3 Opportunities Dell Inc. is becoming one of the dominant companies in the industry with higher take aim of opportunities than its competitors do. Diversification strategy initiated by Michael Dell, CAO of Dell Inc. , has improved the companys opportunities to make a growth in sales, to capture much more customers than it used to. The strategy was applied by adding different sorts of computer-related products into its range. Those would be printers, scanners and other products.Furthermore, demand for PCs is continuously increasing. (Fawcett, S. B. , Claassen, L. , Thurman, T. , Whitney, H. , and Cheng, H. , 2003) This means that the company has pretty good come about of succeeding in the industry. Its worthwhile to mention that internet has been vie the most crucial role in the Dell Inc. s current achievements in its business performance. Internet is crucial as its become an interface between the company and customers. It enables customers to make orders to the company virtually without having to go to the retail stores, wasting their time, effort and money. (Berkowitz, W. R. , 1999). . 4 Threats Porters quint forces model illustrates possible holy terrors for Dell Inc. According to Michael Dell, it has been very tough task for the computer companies to stay in a strong position for long. The development of wireless networks, the influence of internet has changed the competitive landscape of the industry. He says one of the biggest threats is the changing computing model. These forces might be influence on the companys ability to serve its customers and gear profits. They are the following forces -Threat of new entrants -Threat of substitute products or services -Threat of competitive rivalry Threats of new entrants The fact that computer industry has been yielding admirable re deliberates is the key reason why new firms are attracted to it. The entrants tend to share the profits in the industry. This means that they are real threats for the companies within the industry. (Lord, R. ,2005)However extensive capital outlay required for entering into the computer industry prevents possible new entrants from even considering this industry. Thats why Dell Inc. doesnt have to worry about the threats of new entrants. (Fawcett, S. B. , Claassen, L. , Thurman, T. , Whitney, H. , and Cheng, H. , 2003) Threats of SubstitutionPrevalence of many substitute products can pose very big threat to any company. Dell Inc. has also to think about coping with substitute products possible effects on its business performance. Emergence of phones which can commute computers is currently one of the biggest threats for computer companies including Dell Inc. At present most people prefer to have IPhones or other sort of phones alternatively than carrying lap-tops. The fact that modernphones can perform virtually all computer functions makes customers want to have them even more. Specifically, at present most phones can be used for internet, e-mail, and social media.This is more likely to cause uncertainty in the future of the likes of Dell Inc. Threats from Competitors Clearly competitors also pose big threats to the Dell Inc. HP, IBM Inc. are examples for those main competitors of the Dell Inc. They always fight to secure greater market share through cost reductions, economies of scale or strategical business partnership. This tough competition makes it even harder for the Dell Inc. to stay alive(predicate) or to be the best player in the industry. (Lord, R. , 2005) The objectives -To increase its market share by 25% within 1 year -To turn the company into the best player To increase the consumers awareness on the companys brand (Unterman, I. , &038 Davis, R. H. , 1994). As any sort of company has specific objectives, Dell Inc. has also certain objectives set forth so as to maintain and build sustainable and viable business operations. One of the most primary objectives of the company is to achieve more market share in the following year. It is planning to attain 25% more market share than its current state. Even though it is clear that the main objective of any company is to capture more market share, attaining this goal will come with challenges. (Unterman, I. , &038 Davis, R. H. , 1994).The company has to offer much better quality products and services at relatively low cost than the competitors do. The company is also planning to be the best player in the computer industry. This objective is interrelated to the front one. Specifically, gaining more market share than any other competitors enables the company to turn into the best player in the Industry. (Unterman, I. , &038 Davis, R. H. , 1994). Increasing the consumers brand awareness is unquestionably the most crucial objective that must be achieved by any company, because without gaining high levels of brand awareness, the company cannot generate enough sales. Unterma n, I. , &038 Davis, R. H. , 1994). In other words only higher level of brand awareness can entail greater market share which in turn can enable the company to be one of the leading players in the computer Industry. 7. Marketing strategy Any company regardless of its position in its industry should continually update its marketing strategies so as to maintain long-term successful business operations and to attain a competitive edge which is unquestionably crucial in todays business world. Dell Inc. lso has to employ marketing strategies in order to enhance its conflict and maintain its long-term leadership in the computer industry. (IBIS World, 2010). Usually, marketing strategies are of assistance for companies which want to achieve their organizational goals such as attain more market share and higher customers brand awareness. Dell Inc. s marketing strategy also helps it to achieve its objectives such as being the low cost leader of computer products and also differentiating its offerings. (Michael Dell, 2012) Dell Inc. employs different types of marketing strategies which will be mentioned further.Dell capitalizes on differentiation strategy. To be more specific, it differentiates its offerings to various market segments based on the needs and wants of those customer groups. For example, computers designed for large businesses may vary from those designed for home users or educational institutions. (Barry, B. W. , 1998) 8. Positioning strategy Dell Inc. has been able to position itself in the computer industry. Its position strategy is based on its competence to sell its products forthwith to customers rather than involving retailers or other intermediaries in this process.This position strategy can help the company to achieve the following things -Building the most efficient pair to the customers -Becoming low-cost leader -Develop build-to-order efficiencies Relationship commission strategy Dell capitalizes on information technologies when utilizing i ts relationship marketing strategy. It uses both customer relationship management (CRM) and partner relationship management(PRM). These strategies help the company to better understand customer needs and wants and deliver offerings accordingly. It also helps the company to achieve cost reduction through maintaining good relationships with its suppliers.This in turn allows the Dell Inc. to capture more customers more easily. (Wolf, T. , 1990). 9. Conclusion To sum up, at present, the world is witnessing remarkable development and growth in the computer industry. Companies are doing their best to offer the best quality products at reasonably lower costs. This has made it very baffling task for them to stay alive in their harsh industry. They have to establish the right strategies to attain their goals, to capitalize on their opportunities and to cope with the threats. The report summarized the Dell Inc. s objectives and strategies which could help the company to attain its goals.