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PROJECT- DELL

NAME- GURPREET KAUR & LAVY NANNAR

STUDENT ID - A00138871
INTRODUCTION-

Dell is a multinational computer company that is based in texas. Dell company was
established in November 4, 1984. It is an American multinationalinformation
technology corporation based in Round Rock, Texas, United States, that develops, sells
and supports computers and related products and services. The company is one of
the largest technological corporations in the world, employing more than 103,300 people
worldwide. The name of its founder is Michael Dell. He was the youngest CEO to guide
a company to a Fortune 500 ranking.

DELL'S SEGMENTATION, TARGETING AND POSITIONING

It is very important for any company to have the right formula of segmentation, targeting
and positioning. In order for Dell to grow successfully Dell realizes at a point that they
cannot pleased every customers but they combat this problem by serving them with their
best.
Dells target of industry is the computer hardware market, in which they produce desktop
as their first product. Dell move on by providing notebooks, servers and computer
peripherals, this allow Dell to increase in their revenue. In addition, Dell has partnered
with major corporations such as Microsoft to ensure their products are equipped with the
latest software as per customers' needs. By having a clear target and goal leads Dell to
success.
In the aspect of market strategy, Dell uses customer segmentation and product
segmentation to target several markets and specifically design products for them.
Different geographical area has different pricing and marketing strategies. For instance,
in United States, the prices of Dell computers are slightly cheaper than in Asia. In terms
of demographically, Dell do not place bias on gender and race but there is a slight bias in
income, occupation and education of customers. This is because these factors play a
role in deciding what type of products the customers will buy.
overall, Dell selects customers that requires a lower service costs and predictable
purchasing patterns. This is to ensure that Dell is able to create an opportunity to form
core competencies in targeting and keeping specific database of customers.

EXPORT MARKET SEGMENTATION OF DELL

1) MEASURIBILITY- The computer market has various products which can basically be
classified into software and hardware categories where each are sub-divided into
various product segments. It is clear that Dell is focused on the computer hardware
market where it started with the desktop personal computer as its initial product
segment.
2) ACCESSIBILITY- geographically, Dell has segmented the market into the US/Americas,
EMEA and Asia Pacific-Japan where each area has different pricing and marketing
strategies. On the other hand, demographically, there is no age, gender or race bias but
income, occupation and education play a role in deciding the customer needs and hence
the product offer.
3) ACTIONABILITY- Dell focuses on the benefits sought by consumers such as low price
and good quality and service. It also carefully selects customers with relatively
predictable purchasing patterns and low service costs, allowing itself an opportunity to
develop a core competence in targeting and keeping a specific database for target
customers.

DELL'S CHANNEL STRUCTURE

International marketing channel: the system of marketing organizations that connect the
manufacturer to the end-user. Includes intermediary organizations, their capacities and
capabilities and geographical coverage. The entry mode must provide for both: (1) the flow of
transactions and (2) the flow of the physical product.
By removing the Intermediary in the channel process this enables Dell to have greater
control over their product and control the price as there is no retail outlet attempting to
price cut their product. This is a an essential marketing strategy for Dell as they target
consumers looking for the convenience of purchasing a PC which is tailored to their
needs at an affordable price with comparable quality to the store brought product. A
Direct Chanel is easy for the consumer and fits with Dells consumer behaviour.

BUSNESS STRATEGIES OF DELL

Direct Business Model:

Advantage:

1. Lower cost: avoid dealers markup and pass the saving to customers.

2. Customized system: customers get exactly what they wants.

3. Lower inventory: 4 days of supply in inventory, and ability to incorporate the latest
technologies into products (avoid accumulation of obsolete items in inventory).

4. Save time: takes only 36 hours to manufacture, test, and ship customized products.

5. Easy for customers to order: either log on www.dell.com or call 1-800-WWW-DELL.

Aggressive pricing strategy to maximize market share:

Result:

1. Industry-leading results in fiscal 2002 as year-on-year unit shipments increased by 15%


while industry shipments declined 5%, resulting market share gain in every region and product
line.
2. The Company widened its leading as the worlds No.1 supplier of PC systems (treating
Compaq and HP as two different companies).

3. However, the gross margin declined to 17.7% from 20.2% the previous year.

Reducing workforce and exiting certain facilities to further cut cost:

Result: Total charges recorded were $105 million. But expected to result annual saving of
nearly $500 million.

Continue to grow in enterprise systems:

The Company announced that it has expanded its line of network storage systems with the
new Dell EMC CX600, a Fiber Channel storage array that offers enterprise customers high
capacity, performance and availability while easing the deployment of storage hardware and
software.

Entrance of printer business:

Dell Computer Corp. and Lexmark announced an agreement for the two companies to
develop and produce Dell inkjet and laser printers and related aftermarket cartridges that will be
sold directly to customers.
DELL'S GROWTH
Dell & AOC See Solid Year-Over-Year Growth in Worldwide PC Monitor Market in
First Quarter of 2016, According to IDC

The total worldwide PC monitor market shipped more than 29 million units in the first
quarter of 2016 (1Q16), up 0.5% year over year but a decrease of 5.7% compared to
the previous quarter, according to the International Data Corporation (IDC) Worldwide
Quarterly PC Monitor Tracker.