Group Project Report - Dell Technologies Scenario 2
24100-24101 Applied Project in Marketing (Capstone)
Bachelor of International Marketing Anne-Marthe Remme
Tutor: Peter Rodgers Due: 09.05.2017
“This paper is done as a part of the undergraduate program at BI Norwegian Business School. This does not entail that BI Norwegian Business School has cleared the methods applied, the results
presented, or the conclusions drawn.”
Table of Contents:
1. Internal Analysis p.04 1.1 Product Line Overview p.04 1.2 Business Model Canvas p.04 1.2.1 Customer Segments p.04 1.2.2 Value Propositions p.05 1.2.3 Channels p.05 1.2.4 Costumer Relationships p.05 1.2.5 Revenue Streams p.06 1.2.6 Key Resources p.06 1.2.7 Key Activities p.06 1.2.8 Key Partners p.06 1.2.9 Cost Structure p.07 2. External Analysis p.07 2.1 Market Analysis p.07 2.2 Competitor Analysis p.08 2.2.1 Apple Inc. p.08 2.2.2 Microsoft p.09 2.3 Customer Analysis p.10 2.4 Macro-Environmental Analysis p.15 3. SWOT-Analysis p.17 3.1 Key Issues Identified p.18 3.1.1 Issue 1 p.18
3.1.2 Issue 2 p.18 3.1.3 Issue 3 p.19 4. References p.20 5. Appendices p.22
The following report comprises Dell’s internal and external situations through various analyses. This is considered essential, as an overview might be helpful to understand the organization’s current environment, predict future changes and make recommendations of possible improvements in terms of business. The findings in the following sections will be used to conduct a SWOT-analysis that will point out Dell's strengths, weaknesses,
opportunities and threats. Subsequently, the company’s three main issues will be derived and identified.
1. Internal Analysis
To be able to look at the internal environment, a product line overview and the Business Model Canvas will be performed to highlight any strengths and weaknesses regarding Dell Technologies and their 2:1 Notebooks. The Business Model Canvas is also presented as a summary in appendices (appendix 1).
1.1 Product Line Overview
Dell is providing its customers a wide range of products; both laptops, desktops,
workstations, servers, printers, monitors and accessories. Nonetheless, the 2:1 Notebooks go under the category laptop/tablet, and there are so far two types of 2:1 devices on the market (appendix 2). The first type to be released was the device that is a combination between a tablet that has a detachable keyboard. This first alternative comes in different versions through the 7000 2:1 series. The other option is a device similar to a normal laptop with the possibility to “bend” the hinges attached to the screen, allowing the screen to be turned to the opposite side of what is its original locked position. This type of 2:1 notebooks also comes in different versions through the 5000 convertibles 2:1 series.
1.2 Business Model Canvas 1.2.1 Customer Segments
These are the people that Dell would like to create value for. When placing focus generally on the B2C market, the identified segments are students, self-employed, workers with assigned equipment budgets from their employers, and mobile people that need a device with many features. These segments commerce frequently and are therefore in need of a lightweight machine that is able to handle certain programs. Furthermore, different
situations require a certain performance from the machine being used, making the more expensive notebooks an alternative to suit this need.
1.2.2 Value Propositions
Traditional laptops or workstations are often bulky and heavy, requiring more space. In contrary to this, tablets do often lack the performance to run Adobe or other analytical programs. Because of this, Dell is giving their customers additional value by merging these two components together into a 2:1 notebook. It is easy to carry due to its lightweight, and can still run more requiring programs. It creates value by offering a lighter and more
convenient solution to busy people that commute frequently. The price, however, is quite high. Smaller machines require smaller components that are more expensive. For instance, the price increases significantly with performance. Compared to a laptop, in terms of specifications, the 2:1’s performance is not as good. It has fewer ports, which makes it difficult to add other third-party devices like keyboards and USBs.
1.2.3 Channels
Through their own website, Dell is able to communicate with their customers, with a user- friendly design, giving easy access and navigation. The customers are able to contact dell with questions that they might have, either by chatting directly or calling. By doing so, Dell tries to deliver the greatest possible value to its customers by attending to their needs. Dell does however not have their own physical stores; opposing to competitors like Microsoft.
Based on the fact that Dell only list JB Hi-Fi as their retailer on their homepage, it could make it difficult for them to get their products all the way through the distribution system and to their customers, increasing the difficulty to generate value.
1.2.4 Customer Relationships
Customer relationship is very important to Dell, and one way to strengthen the relationship is through post-purchase customer service, after the purchase of a 2:1 convertible notebook.
This would generate loyal customers. However, the lack of retailers makes it difficult to communicate with their customers, making it even more difficult to establish any strong relationships. Their weak customer relationships are also highly affected by their key activities, which are mentioned further down.
1.2.5 Revenue Streams
The primary source of revenue is through the sale of 2:1 convertible notebooks. A steady revenue stream will be created as a result of loyal customer, as the loyal customer increases the probability of the same customer making a second purchase from Dell in the future. A second revenue stream comes forward through sales of accessories suitable for 2:1 devices.
Furthermore, to promote loyal customers, Dell has a partnership with Unidays that hands out discounts of their products to students; generating more sales within one of the main customer segments of the product.
1.2.6 Key Resources
The essential resources Dell need for its 2:1 convertible notebooks are technology, software, programs, competent employees and program developers. By having a skilled staff, Dell will be able to exploit their essential resources, and create value for their customers through the service and product itself. Having knowledgeable software and program developers, Dell will be able to offer a unique combination of overall resources.
1.2.7 Key Activities
Dell’s mission is to create a notebook that is useful and sought for. By focusing on marketing and customer relationship, it would be possible to emphasise the need for customers to buy this product in addition to or instead of a computer. Dell is operating within an industry with high a competitive rivalry, thus, making it essential for Dell to emphasise differentiation in their products and services. However, Dell has not been very effective on performing key activities. As seen in the data gathered from the questionnaire (appendix 3), approximately 76 per cent say they have never seen any kind of advertisement from Dell. This results in lack of knowledge about their products among their customers, losing sales to their competitors like Microsoft, due to weak customer relationships.
1.2.8 Key Partners
In line with the lack of marketing activities, Dell is reliant on having partners that can help them leveraging their business model. As mentioned, they already have a partnership with Unidays where they offer discounts for students. Dell do also have a partnership with
Microsoft, by offering devices that supports their Office programs. Although these
partnerships are valuable, it is not in particular usual for this industry. This emphasizes the pressure to improve their key activities.
1.2.9 Cost Structure
Dell’s costs can possibly be divided into five main groups; the first one being raw materials, the different components that are necessary to build their 2:1 convertible notebooks.
Second, costs will appear when producing and putting components together to a complete product, including salaries for employees. Dell would also need to distribute their products, which results in a great deal of costs in terms of transportation. To be able to convince their main customer segments to purchase their devices, a great deal of capital is essential in marketing and sales. Thereafter, providing service after the sales have taken place is crucial to achieve loyal customers. Beyond this process, research and development for future improvements and new editions will also be of cost to Dell. Since 2:1 convertible notebooks recently got introduced, it is hard to find specific numbers related to each activity.
2. External Analysis
Next, a few analyses will provide insight in external forces influencing Dell’s performance and activities. Identifying current circumstances and emerging changes might be helpful for the company in terms of being prepared to respond and maintain a favourable position in the marketplace.
2.1 Market Analysis
Further, we will look into the Australian industries of 2:1 Convertible Notebooks, namely the computer and software retailing industry, including desktop computers, laptops, printers, keyboards and computer game consoles, and the online computer and tablet sales industry with desktops, tablets and notebooks online. The market consists of a few players that have the majority of the market shares.
The computer and software retailing industry has total revenue of $6 billion dollars, and profit of $83,3 million, the revenue is divided on 3050 businesses across Australia with a high competitive landscape. According to Ibis World the computer and software retailing industry
in Australia is in its declining phase of the industry life cycle. The overall industry revenue has been growing the past few years after the revenue-drop during the global financial crisis, however the growth is expected to stagnate from 2017. The industry is expected to grow by 2% over the next 10 years, which is less than the expected GDP growth in Australia;
expected to be 2,5%. Therefore the industry is expected to perform worse than the rest of the economy (appendix 4).
As for the online computer and tablet sales industry, the total revenue is $775,4 million, which is divided between 662 businesses. Ibis reports a steady growth of revenue the past five years. It is expected to grow even more as a cause of consumers feeling more confident about purchasing more technical advanced and value added products online. The predicted growth of revenue in the 2016-2017 financial years for this industry is 14,9%. The laptop and tablet segment is expected to grow, as a result of the development of the 2:1 notebooks (appendix 5).
Demands for the products in this industry is sensitive for change, due to the assumption that consumers tend to spend less on non- essential electronics when the economy is either not going too well, or if it is expected to stagnate. The demand for electronics is affected by how optimistic or pessimistic the consumers look at the economy. If they have an optimistic view about the market situation, the consumers tend to spend more on these kinds of products.
2.2 Competitor Analysis
The brands posing the biggest threat in terms of competition to Dell’s 2:1 Notebook, are alternative brands within the computer manufacturing business that consumers, both B2C and B2B, have in their evoked set when evaluating the alternatives when in need for a new computer (appendix 6).
2.2.1 Apple Inc.
According to Dell’s graph (appendix 6), Apple stands as Dell’s highest indirect competitor.
Apple describes its own products as something that ‘has been designed for the way we work as much as for the way we live’ (Apple 2017). The importance of simplicity has been
emphasised in both consumption and design of the products. Apple Inc. does not produce
2:1 Notebooks, however, Dell competes for the same customers. The loyalty of Apple’s customers is one of the strongest in the world, which is only reinforced by how dependent its consumers are on Apple’s own software (Mac OS).
Since founded by Steve Jobs and Steve Wozniak, Apple has grown into a multibillion-dollar business. In 2004, revenue was estimated at 8 billion US dollars and kept increasing to 230 billion US dollars in 2015. The number of stores worldwide went from 116 in 2005 to 463 in 2015. Introducing the iPad in 2005, set a new benchmark for the whole industry (Statista 2016), and was one of the initiatives that started the 2:1 Notebooks. Using the information provided by Dell (appendix 7), Apple’s vendor share in Australia is approximately 54%.
Apple’s goal is: “Our goal, in a nutshell, is to obtain stellar products and services within tight timeframes, at a cost that represents the best possible value to our customers and
shareholders (Apple 2017).” Apple offers products for many industries; phones, computers, tablets and watches, and the software used in the different products are programmed by Apple Inc. Two of the biggest competitive advantages of Apple’s products are the user- friendliness in terms of simplicity, sleek professional design with rounded edges that comes in different colours and sizes, as well as its strong protection against computer viruses.
In terms of Apple’s marketing strategy, the strength of the brand makes it easy to market their new products. Their ads are simple and effective in communicating the message of their offerings, to whom they are selling to and why you should purchase the product. They broadcast their new products over various channels: the Internet and television. Apple also makes sure to have big billboards (Appendix 8) in highly populated areas as one of their stronger marketing
2.2.2 Microsoft
Microsoft was established back in 1975 by Bill Gates and Paul Allen, and has since that day become one of the worlds largest and most successful IT companies. Furthermore, Microsoft is the biggest direct competitor of Dell’s 2:1 convertible notebook series. Their mission is:
“We believe in what people make possible. Our mission is to empower every person and every organisation on the planet to achieve more” (Microsoft 2017). Microsoft has a wide
range of products that it offers to its customers in a big number of stores worldwide.
Microsoft offers its customers the ability to customise and conduct more advanced tasks while also offering conventional design. In terms of 2:1 convertible notebooks, Microsoft was the first to enter the market, and have managed to be the frontline innovator and manufacturer for this technology. They were amongst the first to take advantage of the detachable screen and keyboard, and has since then been able to maintain this position. In contrary to most other brands that mostly manufacture physical products, Microsoft is known for its computer software, like the ‘Office pack’. However, it is most famous for is the widely used operating system ‘Windows’ that Dell’s machines use. Most of Microsoft’s revenue has historically come from its licensing business segment, which comprises the Microsoft Office software as well as the Windows operative system.
Their goals are clear and simple: “To minimise the impact of their operations and products, and to foster responsible environmental leadership.” Microsoft has a leading market share with its popular Microsoft Surface series, which was the first notebook of this kind to penetrate the market successfully. The design is simple and practical and offers the same functions as Dell’s 2:1. Mainly, Microsoft serves other brands with software. Because of this, Microsoft does not have to create new products/services to sustain.
Microsoft’s marketing is often automated through their products as an integrated part of the software. When a new Windows operative system update is released, the operative system automatically gives the user a notification about it. However, when they decided to launch the Microsoft Surface, they did comprehensive marketing through different channels to reach out to as many potential customers as possible. Reaching out before the competition was essential. Microsoft did this in both the B2B and B2C markets to maximize awareness.
2.3 Customer Analysis
The customer analysis will be based on secondary data, providing an indication of key market segments and corresponding behaviour and needs. Information derived from secondary data will further be used to create an overview of trends and perceptions
characterizing the customers. This overview will be used to conduct in-depth interviews with the general public and “experts”, to give insight into behaviour and needs of the customers.
Further on, a questionnaire, which will cover the different sides of the decision-problem, will be implemented. Questions based on the information we receive from the secondary data and the in-depth interviews will also be included.
Based on the direct feedback Dell have received on their website from customers who have bought the 2:1 convertible notebook, the feedback is somewhat variable. This feedback indicates that most of the customers are “students” (31 respondents) and “professionals”
(19 respondents). Also, the main reason for purchasing a 2:1 convertible notebook seems to be for “everyday computing” (49 respondents). In addition to this, there are several factors that have been rated. As for the “features” of the 2:1 convertible notebook, the customers have rated a score of 3,2/5,0 for this. The “value” and “operating system” have both been rated 3,6/5,0. “Performance” has been rated with the lowest score, namely 2,6/5,0. Out of all the customers that have rated the 2:1 convertible notebook, a total of 63 % will
recommend this product. However, it is important to bear in mind that these results only can be used as an indicator for further research, because of the low number of respondents.
In addition to the secondary research, we want to dig deeper into the preferences and needs of current and prospect customers.
The in-depth interviews conducted with the general public (appendix 9) indicate that other brands than Dell are preferred, such as Apple and Microsoft. The most important factors when buying a laptop/workstation are speed, performance, price and battery life. The impression of Dell as a company is that they are a traditional and respected company within the IT industry, but that they are somewhat out-dated, both when it comes to design and performance. The respondents’ general knowledge about the 2:1 Convertible Notebook is varied, but they think the product sounds interesting because of its ability to detach the screen.
For the in-depth interviews with the “experts” (appendix 10), the goal is to get information at an “advanced” level that is outside our level of knowledge. The respondents in these interviews have great knowledge about Dell and their product range. These interviews indicate that there is only a matter of time before everyone will be holding a 2:1 convertible notebook in the corporate world due to the flexibility and mobility required by the
workforce. The general perception of why other manufacturers, such as Microsoft, are doing better than Dell in terms of 2:1 sales, is that Microsoft have a clearer understanding of what the customers want and that they know how to give it to them. The respondents also think Dell’s late entry into this market can explain some of the reasons that they are behind manufacturers such as Microsoft. About the specifications the respondents are looking after in a 2:1 convertible notebook, these are mainly the same as in a laptop, but all bundled in a shape of a tablet. The respondents also gave important feedback in terms of the negative sides of the 2:1 convertible notebook. They state that Dell’s version of the 2:1 is too heavy compared to its competitors, and that this is an area where Dell needs to emphasize to get
“back in the game”. Our respondents also agreed with Dell emphasizing on the importance of good support software because this is where the value comes in. The importance of good support software also plays an important role when it comes to re-purchasing from the same company, because this factor creates loyalty with the customer.
Based on feedback and information received through secondary research and in-depth interviews, four different marketing research questions is defined to cover the decision problem: “How Dell can penetrate new markets and broaden sales of its 2:1 convertible notebook range”. We have considered that the marketing research questions shall include questions about customers, competition, positioning and attributes. The four marketing research questions are the following:
1. Which brands of laptops/workstations do customers value the most, in general?
2. In which way could Dell make themselves more visible in the consumer market?
3. What are the customers’ most valued attributes when buying computers/laptops, in terms of factors?
4. How much are customers willing to spend on a 2:1 convertible notebook, based on their experience with the product?
In order to answer these research questions in a satisfactory way, we have developed a questionnaire (appendix 3) with 2-3 questions relevant to each marketing research question.
These questions are developed to cover the affective, behavioural and cognitive attitudes of each respondent, this to ensure that the width of the respondent’s attitudes is covered. 108
individuals responded to the survey, an amount high enough to cover the marketing research questions, and defining key marketing segments. However, we are aware that a larger number of respondents will give a better result in terms of validity and reliability.
Firstly, we will analyse the data we received to answer the marketing research questions, and then we will define two key market segments based on the analysis.
To analyse marketing research question 1, a descriptive design will help figure out which brand that is most preferred. An independent samples t-test will be conducted to determine whether the means of the variable “gender” differs from factor to factor. To figure out which brands of laptops/workstations customers value the most, we will analyse questionnaire question 1; when purchasing computer products, which brand do you prefer? This shows that 74,1 % of the respondents prefer Apple as their brand. Second comes Asus with 6,5 %. What is worrying, is that Dell come out last with only 1,9 % of the total percentage (appendix 11).
Next, we will figure out if this percentage differs from gender or not. The independent samples t-test we conducted shows that “men” with a mean of 2.36 are more likely to buy Dell’s products (mean; 3.0) than “female” which have a mean of 1.76. However, this result is not significant as the significance value is higher than 0.05 with a value of 1.44. We can therefore not be sure that this result is reliable (appendix 12).
For marketing research question 2, we will analyse questionnaire question 14 to figure out which channels the consumers have seen any marketing of the 2:1 convertible notebook from Dell. This will give us an overview of where the respondents are most active. The source where most of the respondents have seen any marketing is “social media”. A total of 13 % says that they have seen marketing of the product at this platform. Second comes
“television” and “online ads” with 9,3 % each (appendix 13). A total of 75,9 % of the respondents says that they haven’t seen any marketing of the product at all (appendix 14).
Moving on to marketing research question 3, we will take a closer look at the most important factors attributes for the customers. Then we will conduct a chi-square test to determine whether the means of the variable “occupation” differs from attribute to attribute. Questionnaire question 8: “When buying a notebook, which attributes are most important for you?” will be used in this analysis. The analysis of this questions shows that
“quality” is the most important attribute with 67,6 % (appendix 15). Second comes “price”
with 10,2 % (appendix 16). Based on these descriptive statistics, we look to find out how important these two attributes are based on the “occupation”. The analysis shows that the attribute “quality” is most important for each occupation, except those who are
unemployed. This result is also significant as the significant value is below 0,05 (,000). The result is therefore valid (appendix 17). For the attribute “price”, the analysis show that
“students” are the ones that values this attribute the most compared to other occupations.
However, this result is not significant as the significance value is higher than 0.05 (0,008).
We can therefore not count this result as reliable (appendix 18).
To analyse marketing research question 4, we will analyse questionnaire question 9; “How much are you willing to pay for a convertible notebook/2:1?» and questionnaire question 7;
«Have you any experience with convertible notebooks/2:1 devices?» In order to analyse these questions, a chi-square test to determine whether proportions or frequencies are different between how much the respondents are willing to pay for the 2:1 convertible notebook will be conducted. The result shows that most of those who have experience with the 2:1 convertible notebook have answered that they would spend between $1001 and
$1250 for this product. Those who don’t have any experience with the 2:1 convertible notebook mainly answers they would spend between $500 and $750 for this product, or that they are not interested in buying the product. This indicates that those who have not tried the product perceives it as overpriced, or that they lack knowledge about the product.
The result is also significant; as the significance value is lower than 0.05 (,000) (appendix 19).
Based on these analyses, and the answers received from the questionnaire, we will define two key market segments for the industry. The reason that we will only focus on two key market segments, is because we believe that this will give Dell a better overview in terms of relevance and attractiveness of each segment. We also believe that focusing on too many segments will make it harder to reach each one in the best possible way. A few more analysis needs to be conducted, in order to find the relevant characteristics of each market segment.
As we learned from marketing research question 3, “quality” is the most important attribute when buying a notebook. As a result of this, we will name key market segment 1 “the
quality conscious”. In order to get more insight into this segment, we need to figure out
what the main characteristics of this segment are. All the characteristics described in this segment have a significant value lower than 0,05, which means that the results are valid and reliable. This segment includes both genders, but dominated by males (appendix 20). The age ranges from 20-30 years (appendix 21), and most of them have an annual income between $0 and $40 000 (appendix 22). As for the occupation, this segment includes mainly students (appendix 23), and they are willing to spend between $500 and $750 on a 2:1 convertible notebook (appendix 24).
Key market segment 2 will be defined as “frequent users”, since they spend more than 5 hours a day on their laptop device. It is reasonable to assume that this segment possesses knowledge about the products, and that they disseminate this knowledge to others via word of mouth among for instance. Therefore, it is important to get a foot inside this segment. It is reasonable to believe that this segment consists equally of males and females. However, this is not reliable since the significant value is higher than 0.05 (0.218) (appendix 25). Most of the respondents within this segment have an annual income of $0 - $20 000 (appendix 26). In addition to this, the “frequent users” prefer the brand Apple within the laptop
industry (appendix 27) and their preferred computer device is laptop (appendix 28). None of the last two factors are significant as they have a significant level higher than 0,05, and they must therefore be used as indicators rather than “actual answers”.
2.4 Macro-Environmental Analysis
Identifying key external forces that may affect both the company’s activities and
performance through assessing the six following factors in the PESTLE-Framework is crucial for Dell to be able to understand and monitor the circumstances in which they are
operating. This might be helpful in defining strategic moves that will be beneficial for Dell’s future success. Focusing on concerns that should be taken into consideration and thereby minimise threats, enables Dell to better exploit emerging changes in terms of opportunities.
Political Factors Political factors mainly refer to the stability of the political environment as well as attitudes of political parties and movements. It manifests in government influence on tax policies and agreements or regulations
regarding trade control, import restrictions and competition regulation.
Political factors are not in need of careful analysis or tracking as Australia facilitates a great political system, creating opportunities for brands to establish themselves, spreading their products and protecting them with patents.
Economic Factors
Prevalent economic factors such as economic growth, employment rates and income as well as inflation rates and monetary policies in Australia, are forces that may influence the individual consumer’s purchasing power to a great extent. The Australian economy has been overall stable, although the GDP growth has been weak the past few years. The notebook market has proven very popular amongst consumers – and growing, posing great opportunities.
Socio-Cultural Factors
Lifestyle, buying habits, consumers’ preferences and attitudes is some socio-cultural factors of consideration. Demographic influences such as population growth rates, level of education, age distribution,
distribution of wealth and social class, living conditions and life expectancy rates are some others. This aspect is representing the culture of the society in which the company is operating. In regards to the Australian market, the culture amongst the consumers and its characteristics represent a big group of modern beings, with a need of always being updated on the latest trends and keeping up with the rest of the society. Current living conditions facilitates a climate for always being available and connected online, a lifestyle requiring a device in order to be present.
Technological Factors
Factors of relevance are existing or possible changes in the technological environment; concerning international influences, infrastructure and communication, access to technology and possible technological change.
Even though innovation in technology has stagnated a bit the last decades, a great deal of pressure on evolving and responding to the consumers needs, keeping up with competition and renewing their brand and position is never declining. In a time where technology is
playing the main role, innovators are likely to pop up and affect the market structure, making it necessary any given brand to always be prepared to actively respond to these changes in terms of product offerings.
Legal Factors Legal factors include taxation policies, international trade regulations and restrictions, national employment laws, health and safety, consumer- and data-protection in addition to industry regulations in terms of copyrights and patents; current or emerging legislations for the industry which are setting the legal frames for operations. In similarity to the political factors, the Australian legal-system is well functioning, facilitating opportunities for the IT-industry including the Notebook market.
Environmental Factors
Moving forward to the sixth and last force; environmental concerns of the industry is assessed of some concern. Recent additions of
regulations and restrictions in regards to pollution - as well as the fact that attitudes of customers in terms of preferences for green, ecological and vegan products is increasing, is a reality. More consumers are getting conscious of the ethics behind the companies they consider to purchase from. Being aware of this and being proactive, may pose an advantage for Dell to retrieve a favourable reputation in regards to the matter. Looking into the notebook market, there is not yet a great focus on environmental responsibility among the competing brands, leaving an opportunity of a first mover-advantage in this area. From a different view, the increasingly environmental-consciousness place a great pressure on the industry and may be a concern if Dell does not manage to keep up.
3. SWOT-Analysis
Subsequently after conducting both internal and external analyses; looking into Dell’s internal climate in terms of strengths and weaknesses regarding the company and external forces that may affect their activities and performance in terms of emerging opportunities
and threats (appendix 29: SWOT-analysis for Dell Technologies), three issues of concern are presented in the section below.
3.1 Key Issues Identified 3.1.1 Issue 1:
The first key issue is the lack of market efforts and advertisement activities for the 2:1 Convertible Notebooks. As derived from the questionnaire (appendix 3), 76 per cent of the respondents stated that they had not seen any marketing of the 2:1 Convertible Notebook.
Weak information about Dell amongst potential customers is a concern as their lack of appearance might decrease customer preference (appendix 11). Microsoft was the company establishing the market of 2:1’s, thus; they have been able to achieve first mover advantage (Barney 1991) and great competitive advantages. For Dell, this illustrates a great threat as competing with such a strong company, putting pressure on the need to strengthen
customer relationships to generate more sales. It is therefore essentially important for Dell to be more visible for potential customer to be able to survive as a brand in a competitive market.
3.1.2 Issue 2:
The second key issue is based on the findings regarding customer relationship (appendix 1), highlighting Dell’s weak network of retailers. This issue might make the customer
communication inefficient, since the different touch points to reach possible customers are limited. Dell is only listing JB Hi-Fi as their retailer on their website. This could make it
difficult to get their products all the way through the distribution system to their customers, increasing the difficulty of generating value. The low number of retailers could also impair Dell’s ability to spread the 2:1 Convertible Notebook in the market, pushing a negative effect on the margins within this product segment. It is vital for Dell grasp this issue in order to improve their overall sales of the 2:1 Convertible Notebook, in making the product more visible in the market, and could help them decrease the head start of its competitors, such as Microsoft.
3.1.3 Issue 3:
The third issue is regarding Dell’s high prices. Friedel argues that price has a stronger impact on sales than most other factors, and that the impact of a price change is more effective than advertising when it comes to sales (Friedel 2014). With purchasing a 2:1 Convertible Notebook, one might argue that you pay much for less. It does not possess the same capabilities as a laptop, but offers a lightweight similar option for a high price. Respondents state they are not willing to pay more than $1001-1250 (appendix 3). This is not a complete price match with the price range of the Dell 2:1 Convertible Notebooks. However, the results from the questionnaire are mostly based on students responding; which generally is a
segment of lower income. Dell seems to be a brand of little interest among potential
customers. As a result of Dell being of little interest to potential customers, and the fact that the price does not correlate with customers price range, is likely to lead potential customer to buying less expensive products from more appealing competitors. The high prices also reflect that Dell potentially have a rather weak customer relationship compared to Microsoft and Apple. It will be hard to establish a good customer relationship, and gain market shares when needs and wants of customers does not correlate with what Dell’s current offerings.
4. References
- Apple 2017, ‘Apple and Procurement’, viewed 16 April 2017,
<https://www.apple.com/procurement/>.
- Apple 2017, ‘The most powerful products for business are the ones people already love to use’, viewed 16 April 2017,
<https://www.apple.com/au/business/>.
- Barney, J. B., 1991. ‘Firm Resources and Sustained Competitive Advantage’, (Journal of Management: 17, 99-120), viewed 27 April 2017
<http://journals.sagepub.com.ezproxy.lib.uts.edu.au/doi/pdf/10.1177/01492063910170 0108>.
- Burgio-Ficca Claudia February 2017, ‘Computer and Software Retailing in Australia’, IBISWorld, Melbourne, viewed 22 April 2017
<http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/industry/ataglance.
aspx?entid=1836>.
- Cloutman Nathan November 2016, ‘Online Computer and Tablet Sales in Australia’, IBISWorld, Melbourne, viewed 22 April 2017
<http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/industry/ataglance.
aspx?entid=4170>.
- Dell in Retail Stores 2017. ‘Dell’, viewed 27 April 2017
<http://www.dell.com/learn/au/en/audhs1/campaigns/dell-retail-au>.
- Dell 2017, ‘Dell Secondary Content’, viewed 24 April 2017,
<http://www.dell.com/au/p/inspiron-11-3162-laptop/pd#secondaryContent>.
- Friedel, E., 2014. ‘Price elasticity: research on magnitude and determinants’, publisher:
Frankfurt am Main; New York: pp.2
- Microsoft 2017, ‘About’, viewed 17 April 2017,
<https://www.microsoft.com/en-us/about/>.
- Pestle Analysis 2015, ‘An Overview of the PESTLE Framework’, viewed 26 April 2017
<http://pestleanalysis.com/pestel-framework/>.
- Statista 2016, ‘Facts and statistics on Apple’, viewed 16 April 2017,
<https://www.statista.com/topics/847/apple/>.
- Statista 2016, ‘Microsoft - Statistics & Facts’, viewed 17 April 2017,
<https://www.statista.com/topics/823/microsoft/>.
- Turner T., 2011, ‘A history of apple in outdoor advertising’, viewed 8 May 2017,
<http://www.thehangline.com/creative-examples/a-history-of-apple-in-outdoor- advertising/>.
5. Appendices
5.1 Appendix 1: Business Model Canvas
5.2 Appendix 2: Dell’s 2:1 Convertible Notebooks
5.3 Appendix 3: Questionnaire
Q1: When purchasing computer products, which brand do you prefer? Choose one.
- Apple - Microsoft
- Dell - HP - Acer - Asus - Lenovo - Toshiba - Other
Q2: Which brand is your current main laptop device? Choose one.
- Apple - Microsoft - Dell - HP - Acer - Asus - Lenovo - Toshiba - Other
Q3: Which brand do you prefer within the laptop industry? Choose one.
- Apple - Microsoft - Dell - HP - Acer - Asus - Lenovo - Toshiba - Other
Q4: What do you use your main laptop device for? Choose one or more.
- Work - Studying
- Watch movies/streaming - Gaming
- Surfing - Other
Q5: What type of device do you prefer? Choose one.
- Laptop - Tablet - 2:1
- Desktop computer - Mobile phone
Q6: Have you heard about convertible notebooks/2:1 devices?
- Yes - No - Not sure
Q7: Have you any experience with convertible notebooks/2:1 devices?
- Yes - No
Q8: When buying a notebook, which attributes are most important for you? Please rank the most important to the least important. Drag the alternatives to get the correct order.
- Quality - Weight - Price - Brand - Service - Software
- Design - Battery life - Memory capacity
Q9: How much are you willing to pay for a convertible notebook/2:1? Choose one.
- Less than $500 - $500 - $750 - $751 - $1000 - $1001 - $1250 - $1251 - $1500 - More than $1500 - Not interested to buy
Q10: How many hours do you approximately spend on your laptop device daily? Choose one.
- Less than 1 hour - 1-2 hours
- 2-3 hours - 4-5 hours
- More than 5 hours
Q11: What do you associate with Dell? Please write three attributes in the bow below.
Q12: How often do you buy a new laptop device?
- Every year
- Every second year - Every third year - Every fourth year
- Rarer than every fourth year
Q13: Have you seen any marketing of the 2:1 convertible notebook from Dell?
- Yes - No
- Don’t remember
Q14: If yes to the previous question, where? You may choose more than one.
- Social media - Television - Online ads - Email
- Posters/billboards - Newspapers/magazines - Radio
- Other
- Have not seen any marketing
Q15: What is your age?
- Under 20 - 20 to 30 - 31 to 40 - 41 to 50 - Over 50
Q16: What is your gender?
- Male - Female
- Do not wish to answer
Q17: What is your approximate annual income?
- $0 - $20 000 - $21 000 - $40 000 - $41 000 - $60 000
- $61 000 - $80 000 - $81 000 - $100 000 - $101 000 - $120 000 - $ 121 000 - $140 000 - More than $140 000 - Do not wish to answer
Q18: What is your occupation?
- Unemployed - Employed full time - Employed part time - Student
- Student employed part time - Retired
5.4 Appendix 4: Computer and Software Retailing in Australia
5.5 Appendix 5: Online Computer and Tablet Sales in Australia
5.6 Appendix 6: Graph for Dell versus Competitors
5.7 Appendix 7: Vendor Shares
5.8 Appendix 8: Billboard Advertisement, Apple
5.9 Appendix 9: In-Depth Interviews, “The General Public”
Are there any particular brands within the IT industry that you prefer? Why?
What is important for you when buying a new laptop/workstation? (Attributes)
Have you heard about Dell? What do you know about them?
- What is your opinion of them? & - Is this a brand that you would consider buying any type product from?
- (If negative, what do you think Dell should do to improve your opinion about them?)
Have you heard about 2:1 convertible notebooks?
- If yes, what do you think about it? Why negative/positive opinion?
- If no, would you be interested in hearing more about it?
Which brands would you consider instead of purchasing a 2:1 Convertible Notebook from Dell? (Please elaborate)
Do you have any experience with using any of Dell’s 2:1 Convertible Notebooks?
Which attributes do you qualify as the most important when purchasing a new laptop/2:1 Convertible Notebook? Why are these attributes the most important?
Is there anything else you would like to add?
5.10 Appendix 10: In-Depth Interviews, “Experts”
What do you already know about Dell from previous experiences?
Do you have any predictions about the future of the 2:1 market?
- Anything on Dell specifically?
In your opinion, why do you think larger manufacturers, like Microsoft, are doing better than Dell in terms of 2:1 sales?
Which specifications would you find important if you were looking at buying a new 2:1?
Are there any specifications from other Dell products that you would like to see in their 2:1 convertibles?
In regards to the Dell 2:1, what are some positive or negative attributes that you can think of?
- Which improvements could be done to the product line?
Dell emphasizes the importance of good support software, what is your opinion on that?
Is there anything else you would like to add?
5.11 Appendix 11: Preferred Brands
5.12 Appendix 12: Preferred Brands Within Genders
5.13 Appendix 13: Marketing Channels
5.14 Appendix 14: “Have not seen any marketing”
5.15 Appendix 15: Quality Attribute
5.16 Appendix 16: Price Attribute
5.17 Appendix 17: Quality and Occupation
5.18 Appendix 18: Price and Occupation
5.19 Appendix 19: Experience and Price Perception
5.20 Appendix 20: Key Market Segment 1 and Gender
5.21 Appendix 21: Key Market Segment 1 and Age
5.22 Appendix 22: Key Market Segment 1 and Annual Income
5.23 Appendix 23: Key Market Segment 1 and Occupation
5.24 Appendix 24: Key Market Segment 1 and Willingness to Spend
5.25 Appendix 25: Key Market Segment 2 and Gender
5.26 Appendix 26: Key Market Segment 2 and Annual Income
5.27 Appendix 27: Key Market Segment 2 and Preferred Brand
5.28 Appendix 28: Key Market Segment 2 and Preferred Computer Device
5.29 Appendix 29: SWOT-Analysis for Dell Technologies
STRENGTHS WEAKNESSES
- Well established in the marketplace
- Creates customer value by merging a laptop together with a notebook
- Lightweight device
- Prior and Post-purchase service
- Partnership with Microsoft, which provides support for programs
- Well-developed cost structure
- Less capacity than a traditional laptop
- High Prices
- Fewer ports for keyboards and USBs.
- No physical stores
- Weak network within retailers
- Competitors favoured because of first mover-advantage; hard for Dell to win over shares
- Highly dependent on employees to develop programs and devices
- Not actively advertising
OPPORTUNITIES THREATS
- Increase marketing efforts and social media presence
- Focus on new segments; targeting quality-conscious consumers
- Universities and entrepreneurs can be considered for partnership as they are in need for devices that are able to support certain programs they use for schoolwork or in business.
- Predicted stagnation in the future market
- Strong competitors (Microsoft, Apple Inc., More)
- Technological changes or innovations put pressure on Dell to always
evolve.
Assessment 2B:
Individual Project Report - Dell Technologies Scenario 2
24100-24101 Applied Project in Marketing (Capstone)
Bachelor of International Marketing Anne-Marthe Remme
Tutor: Peter Rodgers Due: 02.06.2017
“This paper is done as a part of the undergraduate program at BI Norwegian Business School. This does not entail that BI Norwegian Business School has cleared the methods applied, the results
presented, or the conclusions drawn.”
Table of Contents:
1. Executive Summary p.43 2. Introduction p.44 3. Key Issue 1: Marketing Efforts p.44 3.1 Marketing Objective 1 p.45 3.1.1 Key Objective 1 p.45 3.1.2 Key Objective 2 p.45 4. Key Issue 2: Network of Retailers p.45 4.1 Marketing Objective 2 p.46 4.1.1 Key Objective 1 p.46 4.1.2 Key Objective 2 p.46 5. Key Issue 3: Pricing p.46 5.1 Marketing Objective 3 p.47 5.1.1 Key Objective 1 p.47 5.1.2 Key Objective 2 p.47 6. Target Market and Positioning p.47 7. Key Strategies p.48 7.1 Strategy Option 1 p.50 7.2 Strategy Option 2 p.50 8. Key Recommendations p.51 9. References p.52 10. Appendices p.52
1. Executive Summary
The purpose for this report is to propose a suggestion for dealing with the issues currently facing Dell Technologies. In part 2A, a detailed analysis was conducted in regards to
exploring the company’s internal and external environments, which was helpful in providing insights, especially in recognizing areas where performance can be improved.
Based on information given by Dell, notebook sales have remained flat over preceding years and Microsoft Surface is the only sector of the notebook market with significant growth;
granting them a great position in leading the 2:1 sales. The main challenge is therefore how Dell can successfully position the Latitude convertible range versus the Surface Pro despite higher product prices, as well as limited marcom spenditures and retail ranging in addition to managing to leverage the power of the channel to extend the reach of their direct sales force and migrating traditional notebook users to these higher margin client solutions.
Throughout the next few sections, three main marketing objectives will be developed on the basis of the previously selected issues that is facing Dell Technologies’ operations, following the SMART goal setting criterions. Disclosing how to deal with these will further be explored through a few alternative strategies, further leading to a recommendation for what should be the company’s next moves pushing - and enabling Dell Technologies to be where they desire and need to be in the future. This report excludes specifics in terms of tactics and implementation, but is aiming for determining the appropriate strategy for most successfully improve the Latitudes range market position and penetration, mainly based on a short-term outlook in an approximate timeframe of 12 months.
2. Introduction
Dell Technology’s overarching objective is stated as enabling penetration of new markets in addition to broadening sales of their 2:1 convertible notebook range (appendix 1); and the sections presented below will in line with this goal focus on how to take action regarding their key issues identified in part 2A. A few marketing objectives are thus developed to help improving the company’s further success in the marketplace. All of these are based on SMART-criterions, which include them being specific, measurable, achievable, realistic and time-bound (appendix 2).
The following information is based on material presented in the previous report - retrieved from secondary sources in addition to primary research, thereby a combination of both quantitative and qualitative data in the form of a questionnaire and in-depth interviews.
Although, it might be considered necessary to highlight that analyses and collection of data will always be flawed, as they are coloured by the beings’ personal realities, interpretations as well as by human mistakes (Hair 2014). Moreover, data derived from the survey
performed in part 2A is based on a total of 108 individual respondents; a relatively low number which might not be sufficient in making realistic generalizations. Nevertheless, the gathered results displayed a clear pattern of trends and tendencies that can be transmitted to realistic situations. A variety of sources were explored, a measure increasing its credibility to some extent.
3. Key Issue 1: Marketing Efforts
The first issue resulting from the research conducted in part 2A, highlighted a highly essential problem for Dell in regards to inadequacy in physical presence and organized marketing efforts and advertisement activities for their convertible notebooks. Respondents stated lack of awareness of the given product in combination with overall weak knowledge about the brand amongst potential customers. This is posing a great concern for Dell as lack of awareness might correlate negatively with customer preference, putting pressure on the need for strengthening visibility and customer relationship in order to generate sales and increase market shares and profitability. This we recognize as a serious problem for the company in need of taking care of in the immediate future.
3.1 Marketing Objective 1
“Place a bigger focus on performing marketing activities in order to increase Dell’s overall visibility in the market place; aiming for improving customer relationships as well as perceptions of the overall brand and their line of products”.
In regards to the issue stated in the previous section, Dell’s further success in penetrating the market with their 2:1 convertible notebooks is highly reliant on their ability to enhance their overall presence and exposure, especially towards the most profitable and desired customer segments. It is essential for the company to be better at communicating
information of their brand. The following key objectives can be recognized as subordinate goals or benchmarks, providing a function to help achieve the stated marketing objective above:
3.1.1 Key Objective 1
“Improve the exposure of the brand in conjunction with Dell’s desired customer segments, and be better at finding the arenas to meet them”.
3.1.2 Key Objective 2
“Boost the 2:1 convertible notebooks through advertising, whilst spreading a greater extent of information and knowledge of the product’s application and many
conveniences or benefits”.
4. Key Issue 2: Network of Retailers
The next issue derived from the research and situation analyses is revealing Dell’s weak network of retailers, pointing at a consequence in limiting touchpoints and reach of prospect customers, pushing the effect of making customer communication inefficient. When only offering their products from one single retailer, JB Hi-Fi, the company impairs their ability to spread their products in the market, which will again have a major impact on sales and related customer preference.
4.1 Marketing Objective 2
“Be better at positioning the range of products offered, in places where they are more easily exposed or accessible to Dell Technologies’ desired segments, as increasing touchpoints with customers will most likely help generating sales in the future”.
Enabling a larger prospect of availability of the 2:1 convertible notebooks and Dell’s product range in general as well as increasing the number of touchpoints where customers come in contact with the brand, will aid the company in increasing product exposure, awareness, knowledge, and might be helpful in including Dell Technologies in the customers’ evoked set in the long run by taking a bigger place in their consciousness. Constantly being in front of the customer is crucial for Dell to be considered for purchase, to the same extent as competitors’ products. For instance; companies such as Apple or Microsoft is better at offering their products through a larger number of retailers in addition to their own stores, making them closer and more easily accessible to the customers.
4.1.1 Key Objective 1
“Increase number of retailers where Dell Technologies’ products are offered and overall exposed to targeted customer segments”
4.1.2 Key Objective 2
“Conducting cost-benefit analyses and estimates to explore whether a expansion to develop more temporary showrooms or even exclusive Dell-stores would be a favourable move in the future”.
5. Key Issue 3: Pricing
The third and last issue points at Dell’s pricing of their 2:1 Latitude range, a factor that was specifically uncovered in the results collected from the survey in part 2A. Respondents stated that they were not willing to pay the amount required for this given product, which is likely a result of it not meeting the same capabilities as a portable computer, but still being of a higher price range. Price has undoubtedly a strong impact on sales, and the fact that customers feel they pay much for less is a huge problem in need for attention. The perceived value of the product needs to be matched with the given price in order for the sales to flow.
A related issue is that Dell seems to be a brand of less interest among potential customers, which makes them purchase similar products from competitors they find more appealing.
5.1 Marketing Objective 3
“Justify the prices by enhancing the customers perception of Dell Technologies’ product offerings, especially considering the 2:1 convertible notebooks, in order to make the perceived value match the demanded prices”.
With this said; Dell Technologies does not necessarily need to lower the prices, but are in need for repositioning their products in order for customers perceive the product of higher value and worthy of the demanded market price. The company is through their presentation stating that Dell Latitude convertible range provides business class devices with higher quality materials and construction, and that they are positioned as a premium, high margin device, but are in need for migrating traditional notebook users to these higher margin client solutions (appendix 3). It is noticeable that other brands such as Microsoft is making their customers willing to pay more through being perceived more appealing and of a higher value. Another consideration is the importance of being able to match the price with the desired target segments and their requirements; this will be discussed later in the text.
5.1.1 Key Objective 1
“Spreading knowledge about the 2:1 notebooks’ quality materials and construction through establishing contact at a higher level with prospect customers”.
5.1.2 Key Objective 2
“Explore desired or targeted segments and their needs and requirements in order to attain a better understanding of how to make them perceive the product as worthy of the price”.
6. Target Market and Positioning
Although placing focus on the B2B-market would be the most profitable solution considering higher sales margins, Dell Technologies’ cover and reach in this field is fairly pleasing as their products are greatly used in numerous businesses and companies worldwide. Furthermore,
this market is specifically requiring machines able to support heavy programs and technology, which nevertheless limits the opportunities for the 2:1 notebooks. We
concluded on significantly greater opportunities for this product in a day-to-day use through B2C-market, which is the reason behind our choice of focus in the previous report. The data gathered from several analyses and research, also revealed findings supporting these assumptions.
Based on this information combined with gut-feelings makes us strongly believe that it is first and foremost “ the everyday consumer” in the B2C-market that is in need of aiming initiatives and further actions towards, in order to deal with the challenges that is currently negatively affecting Dell’s penetration and sales of their notebooks. Derived from the results provided from the questionnaire, referring to the customer analysis, affirms that the right segment might be young adults of both genders, established employed with a stable income, and somewhat higher interest for more advanced technological devices. Individuals that emphasize ease of use and design when purchasing products, tend to move towards trendy alternatives such as Apple, according to trends and findings in data gathered from our questionnaire.
This segment is facilitated with the right foundation to make a decision to purchase the Latitude notebooks from Dell, but is in need for a push in terms of marketing initiatives or efforts. Young adults is the generation that grew up in a world characterized by a radical emergence of radical technological devices, and has a need for always being online and connected (appendix 4). The 2:1 convertible notebooks ability to detach the screen and keyboard make it fit for different areas of usage, and for a variety of circumstances during different times of day; a factor in which makes it both practical and of great potential in providing a huge market ready to be exploited.
7. Key Strategies
Throughout the last few sections, three marketing objectives have been suggested,
providing benchmarks that Dell should aim for in order to deal with their stated overarching problems, and to be able to enhance their sales and profitability. For the sake of the next and final following parts in the report, these given objectives are listed below:
Marketing Objective 1: “Place a bigger focus on performing marketing activities in order to increase Dell’s overall visibility in the market place; aiming for improving customer relationships and perceptions of the overall brand and their line of products”.
Marketing Objective 2: “Be better at position range of products offered in places where they are more easily exposed or accessible to Dell Technologies’ desired segments, as increasing touch points with customers will very likely help generating sales in the future”.
Marketing Objective 3: “Justify the prices by enhancing the customers perception of Dell Technologies’ product offerings, especially considering the 2:1 Convertible Notebooks, in order to make the perceived value match the demanded prices”.
Dell Technologies’ current situation has been carefully analysed by using a variety of
methods and approaches, and closely assessed in link with the progress they wish to see for their company in the future. In order to reach their desired state allowing them to
penetrating the market with their 2:1 notebooks, increase sales and gain market shares, a course of action needs to be decided upon and conducted rather sooner than later.
Moreover, with respect to the key issues identified and marketing objects developed, a few strategies are presented in the text below. These are both possible to realise in a short-term basis, more specifically within 12 months. Dell should immediately initiate actions and activities to gradually enable a change of the brand’s expression and position towards the market, in order to compete against the bigger and more appealing brands, and succeed in delivering an image in which customers find more attractive. Based on the issues and objectives presented in the previous sections and taking the selected target segment into consideration; two options for further action are developed for the company.
7.1 Strategy Option 1: Increase customers’ extent of engagement in the brand by spreading knowledge and awareness in the marketplace
This first strategic approach is closely linked to both “Key Issue 1: Marketing Efforts” and
“Key Issue 3: Pricing”, both comprising problems of similar nature; namely the mismatch between the product and its perceived value among consumers. Based on the research conducted in part 2A, Dell Technologies has to some extent failed in conducting marketing activities and making the brand visible in the marketplace; resulting in weak awareness and knowledge about Dell’s brand overall and the 2:1 convertible notebooks. The respondents of the questionnaire stated a poor impression of Dell as a computer, using words such as “old”,
“heavy” and “out-dated”. By exploring arenas where they can better meet and establish contact with the targeted segments and educate the market about the brand, the product range and its many benefits, might help position Dell more favourably and strengthen their customer relationship – which might carry a positive effect on justifying the prices and in a longer time perspective increasing sales.
7.2 Strategy Option 2: Spread Dell’s reach and cover in the marketplace by establishing a larger number of touchpoints and being more physically present towards customers.
Throughout this report a need for increasing the brand’s physical presence is recognized.
Dell need to repeatedly expose the brand and their products, and to a higher extent focus on constantly being in front of the customers. The next proposed strategy discusses a second possible response to the company’s current challenges, mainly centred around “Key Issue 2:
Network of Retailers”. Dell is only offering their products through one single retailer, which naturally limits their touchpoints and overall contact with the market. In order to be
preferred, the product needs to be placed in front of the customer, seen, touched and possibly tested. Relatively expensive purchases usually heighten consumers’ need for carefully assessing them, and therefore should be easily accessible. Dell has previously set up showrooms, and likewise, there are more opportunities to approach prospect customers, giving them the opportunity to try out - and gain knowledge about the product, an initiative that very likely will carry a positive impact regarding customer preference. Competing brands such as Apple and Microsoft has experienced major success through their exclusive stores, as it helps the companies develop closer and more personal contact with the customers, resulting in increased commitment and loyalty towards the given brand.
Whereas this is an approach that requires a large prospect of time, planning and resources, it may still be worth a thought for the future.
8. Key Recommendations
Whilst the main challenge for Dell is to penetrate new markets and broaden sales of their 2:1 notebooks, the issues derived from our research and analyses may point at one major underlying problem; namely the company’s failure to build awareness and customer relationships around their brand and products, affecting the individuals’ decision making process when considering different alternatives. Two strategies are developed in the section above, extracted in close link with the three marketing objectives as well as the target market seemingly most profitable according to the results from previous research. I
personally recommend “Strategy Option 1”, which may be an initiative to easier achieve the stated marketing objectives more efficiently for Dell, as it is less costly and easier to
implement. More specifically, online platforms might be appropriate arenas for targeting and reaching the selected segment, as they are supposedly always connected throughout different times of day. Furthermore, this approach makes it easier reaching a greater amount of individuals for a fraction of the price of traditional marketing. Moreover, a new trend is emerging; namely content marketing, allowing companies to become their own media companies, news bureaus and social networks; attempting to a greater extent engage customers in the brand, and building a stronger connection in between the parties. 70 per cent of people say they prefer learning about companies through articles, according to the Content Marketing Institute. This may be interesting for Dell to further investigate as an option, as it is additionally allows them to publish relevant information, ideas and entertainment valued among customers (Jutkowitz 2014).
In conclusion, the overarching objective for the company should be to protect their currently obtained market share, as well as initiate more market activities to improve their market performance and visibility towards a larger group of customers. Not only would it benefit the company to be more physically present, but also in spreading general awareness and knowledge of the brand exposure and educating the market of their products’ many benefits.
9. References
§ Hair, Joseph F. Jr. (2014). Marketing Research (4th ed., McGraw-Hill, pp)
§ Jutkowitz, A. (2014). ‘The Content Marketing Revolution’, (Harvard Business Review)
Viewed 28. May 2017
<https://hbr.org/2014/07/the-content-marketing-revolution>
10. Appendices
10.1 Appendix 1: Dell Technologies’ Overarching Objective
10.2 Appendix 2: The SMART-criterions for setting objectives
• Specific
• Measurable
• Achievable
• Realistic
• Time-Bound
10.3 Appendix 3: Overview, Positioning & Challenge
10.4 Appendix 4: Sensis - Social Media Report
