Dell
...and therefore Dell is also providing IT services for those who needs it. 2. Branding The brand has been a longstanding, recognized asset among vendors of personal computers such as Dell. The brand represents amazing power and worth among customers, investors, and employees. Now that the business will be conducted across the Internet, brand recognition and trust are rapidly escalating in terms of buying influence. Dell uses the logo “Easy as Dell” and this mainly attributes to Easy to use and manage personal computer, and easy to purchase over the internet. However each of Dell’s product line carries a different benefits, for their Desktop PCs they use “Technology performance and value”, while for their Notebooks they use the benefits of “performance and mobility”. Overall the value of Dell’s brand is mainly Easy to use, reliable, and leading technology. Reliable and Scalable. (Taken from: http://www.ap.dell.com/ap/au/en/gen/default.htm) 3. Product Life Cycle and Promotion 3.1 Product Life Cycle Computer industry is at maturity stage. It has become common for every household nowadays to own PCs, with its own printers and scanners. Companies and Government are heavily relied on computer technology to do their business, and therefore the overall demand is very large. Computer industry is a highly competitive business as many manufacturers are competing in the same market. In these stage big companies starting to develop a better version of the product in the research and development stage and smaller companies may merge into the bigger one, and eventually the industry only contains the well established companies. Koetler, Adam, Brown and Armstrong (20003, p.317) suggested that “A slowdown in sales growth results when many producers have many product to sell. In turn, this overcapacity leads to greater competition.” 3.2 Recommended Marketing Strategy Marketers should use the strategy of quality improvement, and feature improvement. They should stress brand differences and benefits, and try to encourage brand switching. They may try to use a ‘all-in one’ campaign for their printers, where they have a printer that are able to do photocopying, scanning and also can be used as a fax machine. And to improve the feature they may have a good looking printer where it can fit in tight spaces, and stress on the benefits of saving workspace in the office or at home. They must try to improve the PCs durability, reliability, and speed and at the same time improving the feature that they have. As technology improve Dell computer must project an image to the customer that Dell computer is the best in its field, and it’s very affordable. 4. Target Market 4.1 Geographical Dell’s customers range from all over the world. Dell is mainly concentrating in developed countries in the world such as USA, Western Europe, and Australia. This was caused because Dell’s approach of selling through Ecommerce require a good business infrastructure such as secure internet, postage system, and banking system, which is currently only available at developed countries. However Developing countries may also represents a growing market opportunity as they began to have these infrastructures in place. 4.2 Psychographic People who uses Dell computer range in their status, values, and attitudes. For example someone who is well off may decide to buy a high end computer while other bought a standard line computer. Sex is also not a determinant as both male and female uses computer in the same manner. 4.3 Behavioural Dell computers aim its product mainly at readiness stage where people are well informed, aware and intending to buy. It’s also aimed at user status where their customer is a regular user of Internet and computer in general. 5. Positioning Strategy Dell’s main product position is aimed at its Product class, Product attributes, and Benefits offered. It’s mainly positioned itself as a company that provides very stable, and technological advanced computers. The prices of their product may slightly be more expensive than other computer brand in the market, but this was justified by the level of satisfaction that their customer will get. The main highlight is much more advanced, more feature, and also kind and understanding customer service personnel. (Taken from: http://www.dell.com/us/en/gen/default.htm) 6. Pricing 6.1 Pricing Strategy The pricing strategy that is used is both competition-based pricing, and value-based pricing. Competition based in a sense that Dell computer prices shouldn’t be much different from other well established computer manufacturers such as Compaq, or IBM. Customers know that these brands mean the computer is very stable, and offers a lot of feature. If IBM computer’s price is much lower than Dell computer, than people would choose to buy IBM, because they both well known brand. Meanwhile the price of Dell computer is slightly higher than less known brand such as Texas instrument, or Micron. A standard Dell computer will cost you around US$ 2.779 while Micron computer will cost you US$ 1.560, but some people still choose Dell because of the quality that the brand carries. 6.2 Factors Influencing Pricing Computer market in the world today is best described as monopolistic competition, where there is freedom of entry and a lot of new companies starting to enter the industry. Market share can be said evenly distributed, as no single companies hold more than 30% of the global market share. The most important factors that need to consider for Dell computer internally is market share leadership, they must understand how many percent of the whole market that they have, what Dell means to the customers. Whether it’s very important to have brand names, or is price is more important. Outside factors are influenced by market and demand. How much demand is out there and what is the market price for a desktop computers. Dell can have slightly higher price so long as the extra value and benefits obtained from purchasing Dell computer is understood by their customers. 7. Placement 7.1 Product Development: Whenever the products become non-competitive, Dell’s fast cycle product development moves to a line of new product that is in demand. Dell constantly looks for feedback through its website and buying patters of the customers who visit the site. 7.2 Manufacturing: Dell’s manufacturing is based on made-to-order. The company manufactures the CPU but purchases monitors and keyboards from other suppliers. Dell assembles its PCs at three locations: Austin, Texas for USA: Limerick, Ireland for Europe and Penang, Malaysia for Asia. Its plants are close to all the suppliers and hence help in shipping component just-in-time. Dell extended its website to the supplier so that they can schedule their production and further reduce inventories. Dell’s direct model gives a clearer view of actual sale. Dell thinks that better forecasts can help its suppliers shrink their inventories also to achieve lower costs, benefiting Dell in the run. 7.3 Distribution: Dell provides the estimated delivery time as well as an online order tracking information for each order. Dell does not have any finished goods inventory. UPS worldwide merges the shipment of the processor, monitor and the keyboard from different origin points at one of their facilities and then the entire system is delivered to the customer. 7.4 Marketing: Dell has online direct marketing approach. With the rise in customer’s income, the demand for better selection and higher quality products rises. Dell has direct contacts with its customers through the Internet. The online marketing can help dell to identify the specific needs and wishes of the individual. 8. Integrated Marketing Commun...