Dell Inc. is an American multinational computer technology organization which began its operation in 1984 and is based in Round Rock, Texas, US. The company deals with the development, selling, repair, and support of computers and its related products and service. Dell employees more than 103,300 people worldwide and at number 44 on the Fortune list. Since the beginning, Dell is continuously contributing in the industry by breaking new ground and pioneering critical developments.
The target market of Dell is divided into two markets which are Large to Mid-size business and consumers, students, small home office, etc. In Large to Mid-size business, people with the age bracket of 36 to 50 years are included in Upper Middle Class to Lower Class whereas, in the consumer market, Dell is targeting 18 to 35 years old of Middle-Class individuals.
After Lenovo and HP Inc, Dell has a market share of 14% and stood at the 3rd largest PC vendor in the world in the first quarter of 2017. The research and development of Dell are driven by industry’s foremost product designers and engineers. In 2017, Dell spent $2.636 billion on its Research and Development which is a huge investment as compared to 2016 when the company spent $1.051 billion. Dell has grown by increasing its customer base as well as by acquiring businesses since the beginning. The company had successful mergers and acquisitions including Alien Ware.
Following are the goals of Dell:
• To achieve qualitative and quantitative leadership
• Maintain positive sales growth annually than the competitors
• Increase the market share by marketing development
• To alter the existing marketing extents
• To increase product awareness and sales by persuasive promotional activities.
Following are the strategies of Dell:
• Outspread end to end information technology solutions capabilities.
• Recruit additional sales staff.
• Compete aggressively in emerging countries.
• Capitalize on the PC and tablet business
• Speed up the delivery of enhanced customer experience.
Annual Marketing Budget
Dell spends a lot in its marketing and promotional campaigns. In 2012, Dell invested $413 million in advertising in the United States.
The product portfolio in Dell’s marketing mix includes products and services meant for home, professional and industry use. Dell made Inspiron PCs for home and office use whereas XPS and Alienware are made for gaming and for premium segment. Dell has developed Vostro series laptops for small business use, Latitude series that provides the scalable and durable design. Dell also came up with an online remote troubleshooting tool called Dell Connect. It enables the technician to enter user’s pc and solve the issue. Dell also provides after sales service to attract potential customers.
Dell’s product lines have a large range in terms of low to high priced products. Dell has priced its products competitively to discourage its competitors. Their XPS and Alienware are available in premium prices whereas Dell has priced Inspiron laptops at lower prices.
Dell sells its products worldwide through authorized retailers and distributors. They have three main distribution partners including Ingram, Micro, Tech Data and SYNNEX. Dell is one of the few companies which availed e-commerce platform to drive sales. Dell has an existence on a big platform like Walmart and Best Buy.
Dell spends millions on marketing and promotion of their brand. TV ads and print media are the main tools of promotion. TV ads of Dell concentrate at its breakthrough products and the performance-related benefits of the products.
Dell has a strong competition with Acer, Apple, Lenovo and HP. Lenovo has the highest market.
• Brand name valued at $7.5 million
• Direct selling business model
• Efficient procurement, manufacturing and distribution process
• Relatively low operating cost
• Product customization
• Few retail stores
• Slow market share growth
• Lack of patents for breakthrough innovations
• Long purchasing process
• Extensive dependency on suppliers
About Dell. Retrieved from http://www.dell.com/learn/pk/en/pkcorp1/about-dell?~ck=mn
Dell’s Market Share. Retrieved from http://fortune.com/2017/01/11/lenovo-hp-dell-pc-market/
Dell’s R&D expenditure. Retrieved from https://www.statista.com/statistics/264918/dell-expenditure-on-research-and-development-since-2000/