Project Report (Group) - Dell Technologies Scenario 2
24100-24101 Applied Project in Marketing (Capstone)
Bachelor of International Marketing Anne Isabell Larsen
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.18
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.
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<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:
Project Report (Individual) - Dell Technologies Scenario 2
24100-24101 Applied Project in Marketing (Capstone)
Bachelor of Interantional Marketing Anne Isabell Larsen
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. 3
2. Marketing objectives p. 3
2.1. Objective 1 p. 3-4
2.2. Objective 2 p. 4
2.3. Objective 3 p. 4-5
3. Target market and positioning p. 5-6
4. Key strategies p. 7
4.1. Strategy 1 p. 7
4.2. Strategy 2 p. 8
4.3. Strategy 3 p. 8-9
5. Key recommendations p. 9
5.1. Recommendations to strategy 1 p. 9-10 5.2. Recommendations to strategy 2 p. 10-11 5.3. Recommendations to strategy 3 p. 11 5.4 Overall recommendation p.12
6. References p. 13-14
7. Appendixes p. 15-22
1. Executive summary
Three main issues were derived from the situation analysis. The first issue was a lack of market efforts and advertisement activities of the 2:1 Convertible Notebooks. Most
questionnaire respondents state they have not seen the 2:1s advertised. Dell needs to focus on market visibility and improvements concerning customer relationships to increase sales. This is necessary if they want to compete with competitors like Microsoft.
The second issue derived from discoveries concerning customer relationship, emphasizing Dell’s weak network of retailers. With only having JB Hi-Fi as a retailer, the customer reach is limited. This could have a negative impact on customer communication, and evolving the 2:1s in the market.
The third issue is the high prices of Dell products. The 2:1s are a good alternative to a laptop, but are quite expensive. Most respondents are students, a lower income segment, which are not willing to pay as much for a brand that is not of preference. This could lead to losing customers to lower priced alternatives. If Dell focuses on customer relationships, this could help them gain market shares.
2. Marketing objectives
From the three main issues found in the group assessment, part 2A, three marketing
objectives have been created to try to solve these issues. One marketing objective has been assigned to each of the issues.
2.1. Objective 1 - Increase direct and online advertisement of the Dell 2:1 Convertible Notebooks through relevant channels by 10% within the next 12 months
This first objective is related to the first identified key issue regarding lack of market efforts and advertisement. To solve this issue, it is important for Dell to focus on being more noticeable in a competitive market. Increasing both direct and online marketing of the 2:1 Convertible Notebooks by 10% through relevant channels in the forthcoming year, will help increase awareness to future potential customers. As Microsoft had the first mover advantage in the market, Dell needs to find ways of making themselves more present and noticed to future potential customers. Question 13 in the previously conducted Qualtrics survey show that 63,33% have not seen any marketing of Dell’s 2:1 Convertible Notebooks, and 24,17%
say they do not remember. Only 12,50% say that they have seen it being marketed.
(Appendix 1). With having most people saying they have not seen any advertising of the products, this is something to focus on improving. With a combination of different types of advertising, this can hopefully be improved over the coming year. It is important to consider exactly what channels will be relevant for the target market, and focus on a few.
2.2. Objective 2 - Increase Dell’s retail network of retailers by adding two new retailers in Australia within the next 12 months
The second objective is related to the second identified key issue concerning customer
relationships and Dell’s weak network of retailers. As JB Hi-Fi is the only current retailer that distributes the 2:1 Convertible Notebooks, this is something Dell should improve to have better touch points with current and potential new customers. By aiming for adding two new retailers to their network in Australia in the forthcoming year, it is likely to help strengthen the customer relationship, as well as getting a rather new device out for people to see and try.
Question 9 from the survey show that 81,67% have no experience with 2:1 Convertible Notebooks (Appendix 2), and question 6 show 35,83% have actually never heard of the devices (Appendix 3). Adding two new retailers in the Australian market will be a way of strengthening the retail network, and become more known to the customer. After 12 months it will be possible to determine if this has had a positive effect or not. If it turns out to be a success, then Dell could add even more retailers in the future.
2.3. Objective 3 - Increase market share of the 2:1 Convertible Notebooks in Australia by 5% within the next 12 months by focusing on customer relationships and preferences (to compensate for the high prices)
The last objective is related to the third key issue about Dell’s high product prices. Question 8 from the Qualtrics survey show that 31,67% of the respondents say they are not interested in buying a 2:1 device, and 30,83% say they are only willing to pay between $500-750 if they were to buy (Appendix 4). This does not correlate with the products of the 2:1 Convertible Notebooks. Therefore, Dell needs to focus on customer relationships and preferences to compensate for their high prices. Considering question 2 from the Qualtrics survey show that only 1,67% prefer to buy Dell computer products (Appendix 5), this is something that can be improved if the right actions are taken. Question 3 show that out of 120 respondents, zero say
that their current laptop device is from Dell (Appendix 6). If they can find ways for current and potential customers to feel like the purchase is an investment, and worth the money, it is possible for them to increase their market share by 5% within the next year.
As to how each of the objectives will be proceeded with, will be presented further in the key strategies. Here it will be explained more in depth the steps that will be taken to achieve the different objectives.
3. Target market and positioning
In the business model canvas in the internal analysis, we defined several customer segments.
Later in the analysis, a more detailed segment was defined. In the customer analysis, the segment “the quality conscious” was identified. This segment was defined due to the main occupation of the respondents were students between the age of 20-30 with an income between $0-40 000. The “quality conscious” mainly answered that they would be willing to spend between $500-750 on a 2:1 Convertible Notebook. 50,83% of the respondents from the Qualtrics survey are students, and 24,17% are students employed part time (Appendix 7). By targeting this “quality conscious” segment, it is possible to narrow in on a market with significant potential.
Early in the analysis, we assumed the 2:1 Convertible Notebook would be of great interest for anyone who was looking for a convenient, lightweight device with similar features of a laptop. When it comes to positioning, it is important to know what the customers want, but also to know how to convince them to want your product or service. Positioning is more about what you do to the mind of the prospect, rather than what you do to the product. To be able to position the Dell 2:1 Convertible Notebooks in the best possible way to the chosen target market, it is also important to note that Dell needs to position themselves to be better than competitors with similar, or close to equivalent, products (Ink Magazine 2017). As most of the survey respondents are of a lower income category, Dell needs to emphasise that the 2:1 Convertible Notebooks might be of a slightly higher price than what they might be willing to pay, but it will be an investment in a quality product. Question 11 in the Qualtrics survey show that approximately 16 people associate Dell with quality (Appendix 8). This is therefore something that is already in the minds of customers and potential customers.
Quality will therefore be an important feature to emphasise.
As mentioned earlier concerning question 2 from the Qualtrics survey (Appendix 5), 75% say that they prefer Apple when buying new computer products. However, Apple does not
provide 2:1 Convertible Notebooks, but several of their computers are lightweight, and the tablets have possibilities for connecting keyboards. Dell states that they consider Apple and Microsoft as their main competitors. Microsoft had the first mover advantage, and already have a well-established position in the market. Microsoft also offers 2:1 Convertible Notebook devices, therefore it is important that Dell is able to compete with their product offerings. Dell does however have mass customization regarding software etc., and this is something that could differentiate them from the competitors.
To be able to position the Dell 2:1 Convertible Notebooks the best way possible for the selected target market, it is important to emphasise what the attributes of the Dell Latitude products. Dell says the Latitude 12 7000 is impressively agile, and sharply dressed. They describe this edition as a “12.5" 2-in-1 for getting down to business with laptop power, tablet flexibility and premium materials with accessories for mobile professionals” (Dell 2017). The other version, the Latitude 13 7000 is referred to as “business as usual is never usual”. Dell describes the device as “the world’s most secure 2-in-1 is a lightweight Ultrabook™ and a detachable 13-inch tablet in one powerful device, featuring Intel® Core™ M processors”.
(Dell 2017). This needs to be emphasised to be able to compete, and also differentiate themselves in the industry compared to their competitors. This is important to make themselves stand out, and reach the target market that has a wish for quality products.
For Dell to be able to position themselves in the best possible way concerning the 2:1 Convertible Notebooks, a positioning statement has been made:
Dell provides quality conscious, price sensitive, students between the age of 20-30 with a relatively low income, with a flexible and powerful 2:1 Convertible Notebook than any other in the hybrid laptop industry. We do this by securing a high quality product that is worth the
price, focusing on having a well-known and reliable brand. (Holland 2015)
The positioning statement reflects on were Dell should aim to best be able to target the chosen target market.
4. Key strategies
Based on the issues and objectives, a few key strategy options have been developed to address the three issues and objectives.
4.1. Strategy 1 – Selecting the best channels to reach target market through advertising Concerning the first issue and objective created related to that, it is stated that marketing efforts and advertisement of the Dell 2:1 Convertible Notebooks were not as good as it could be. Therefore, a strategy tactic to achieve this is to focus on advertising through relevant channels to achieve an increase of the knowledge of the 2:1 Convertible Notebooks. Relevant channels to focus on to achieve this will be determined by the target market. As the 2:1s fall under the electronics category, it would be logical to advertise the products in electronics magazines. They also tend to be kept longer by customers. Outdoor and transit locations such as billboards and buses can be used to get the target markets attention. The posters can only contain a certain amount of information, but by being exposed to it several times, it is likely to be one of the products that first comes to the consumers mind when thinking of the specific product. Having billboards in malls or close to stores and locations where it is possible to purchase a Dell 2:1 Convertible Notebook might tempt the consumer to go in and check out the product, or later do research about it. Online advertisement is a cost effective way of spreading the word to gain new customers. (Business Queensland 2017). Dell has a good website that provides information on the different Latitude products, as well as several options about Dell and the Dell community consisting of events, etc. It is also possible for Dell to advertise through social media such as Facebook, Instagram, Snapchat and Twitter to best reach the rather young target market. As the 2:1 Convertible Notebooks likely are a relatively new device for many, social media advertisements are a good way to show the diversification and function of the product to potential customers on channels they are active on. They are active on several of these, but the amount of followers can certainly be
improved. The more that are connected with them through the different sites, the more people will be able to see and gain information about the 2:1 Convertible Notebooks. By doing all of these various steps, it is possible to increase the different advertisement of the Dell 2:1 Convertible Notebooks up to 10% within the next year.
4.2. Strategy 2 – Finding new ways to distribute the Convertible Notebooks through additional retailers in Australia
The second issue and objective related to this highlights Dell’s weak network of retailers.
This is considering the fact that Dell currently only operates through retailer JB Hi-Fi in Australia. Dell, unlike Microsoft and Apple, does not have their own stores. This is
something that could potentially be a threat to them, considering the competitors then have way of distribution they do not have. They do however sell the Dell 2:1 Convertible
Notebooks on their own websites, and other places online. For future potential customers, and the target market, it is likely that actually touching and testing the product will determine whether the product is for them. By adding two new retailers in the Australian market, this will help spread the 2:1 Convertible Notebooks to the market. It will be crucial that Dell focuses on JB Hi-Fi as this is the main and only current existing retailer to date. New retailers in the market are likely to increase the demand of the 2:1 Convertible Notebooks when combined with a strengthened market focus and increased advertisement. Adding two new retailers in the Australian market in the first year will either make or break the spread of the product. If the retailers do not seem to generate the best possible profits, then after the forthcoming year they can look into potentially changing them. If the two new assigned retailers are successful, they could look into adding even more retailers and different ones in the coming years. It will also be important for the existing retailer, and the ones to come to focus on having competent and service oriented employees. This is important to emphasize to make sure that the right and correct information about the 2:1 Convertible Notebooks is given to the people interested.
4.3. Strategy 3 – Market shares through quality and customization emphasis The last strategy is on the issue and objective concerning the prices of the Dell 2:1
Convertible Notebooks, and to aim to increase the market share by 5% in Australia within the forthcoming year with focusing on customer relationships and preferences. The strategy to be able to achieve this will be to show off the Dell 2:1 Convertible Notebooks to get consumers to know the products better, and to make them feel like this is an investment, and therefore they should be willing to pay a little more than what they were initially thinking. The mass customization aspect could be something to focus on to make them stand out to the target market. The target market needs to be convinced that this is an extraordinary product, and something they need in their lives. The other strategies mention possibilities of increasing advertisement and amount of retailers to better communicate the value of the product. This
strategy however is important to encourage people to try the 2:1s, and to show the people that might already have one from either Dell or other brands, that Dell is the way to go. It is also important to keep current customers interested in Dell as a brand, and to show them the different hybrid laptop products that are now evolving in the market. Providing them with interesting ways of product information is likely to encourage them to want to try new products like the 2:1 Convertible Notebooks of a brand they know and trust.
When it comes to determining market shares, it says under customer analysis in regards to Microsoft and their Surface series, that they hold the majority of the current market share in the industry. Their notebook was the first successful one in the market. Microsoft had the benefit of first mover advantage compared to the rest of the competitors. This could make it hard for Dell to win over market shares, but with the right strategies, it is not impossible to win shares over time.
5. Key recommendations
As for recommendations, it will here be outlined the key strategic recommendations to each of the three developed strategies.
5.1. Recommendations for strategy 1
Strategy one is based on selecting the best channels to reach target market through advertising. Recommendations as to how to best be able to achieve this strategy is to two different recommendations. Recommendation one would be to give a student discount on Dell 2:1 Convertible Notebook products. This will enable Dell to further reach and narrow in on the student quality conscious target market. By doing this, they are also ensuring that they are able to keep up with competitors such as Apple, since they are already doing this. Apple has a 10% discount for student on a wide range of products. Dell only offers certain student discounts, such as 15% on Dell Inspiron and XPS systems online. (Unidays n.d.). The discount is not related to the Latitude products, and is not over a longer period of time.
Microsoft also offers up to 10% discount on the Surface Book and the Surface Pro (Microsoft n.d.). This is something Dell should consider as well, especially since competitors are already doing this. This can be promoted particularly before the beginning of each school semester, as many students will be looking for new devices around that time.
Another recommendation to reach the target market is by having promotional activities with prizes. It is possible to hold raffles with a limited amount of Dell 2:1 Convertible Notebooks of the Latitude range to promote their brand and products to the target market and other potential customers. A way of doing so could be through Facebook and Instagram. Dell could post a picture of the prize, tell the followers to share the picture, and like their Facebook and Instagram page, and when the pages reach a large amount of followers – they select the winners randomly out of the people that followed the steps. It is an interactive way for Dell to gain followers within the target market. They will then be a part of the Dell community, and will see coming updates and announcements.
5.2. Recommendations for strategy 2
For strategy number two, various recommendations to achieve this have been developed.
Strategy two is about finding new ways to distribute the Convertible Notebooks through additional retailers in Australia. In regards to recommendations to where to locate the new retailers in Australia. In order to be successful, it might be useful to first take a look at the larger cites, or where there are most students within Australia. The top five cities that have been ranked according to livability (climate, transportation, cost, activities), cost of living (accommodation and other expenses), and university choice (choice, quality, student demand) are in chronological order: Melbourne, Adelaide, Perth, Brisbane and Sydney (Student cities 2016). These are possible places to locate potential retailers to start with.
Another recommendation is which retailers to use as distributors. This needs to be considered with the target market in mind. A possible way to determine this could be through looking at rankings of possible options for new retailers. As JB Hi-Fi is the only current retailer, the options for new ones are rather open. When it comes to overall rating of product range, customer service, and value for the money, The Good Guys and Bing Lee rank first and second. JB Hi-Fi comes in third place. The Good Guys has been ranked as the Australian electronic retailer of the year six years in a row, and is therefore an interesting retailer for Dell to look further into using as a distributor (Canstarblue 2017).
The last recommendation for strategy two is to consider having a price discount or to add some additional value to the target market when they start distributing through these different retailers. This will attract customers, and likely increase sales and attract and encourage customers to buy the Dell 2:1 Convertible Notebooks. As this segment is of lower income,
