CASE ANALYSIS ON

DELL IN INDIA TARGETING SMBs

Dhwani Ojha Divyani Garg Pankhuri Singhal

What made Dell choose a different model of distribution when it decided to target Indian SMBs

Big Market Share

Education

Technology

What is the present market-share of Dell in India?

Which strategy did Dell follow? How has this strategy helped Dell gain a competitive advantage

Lowest Production Cost

Overall Cost Leadership

Lowest Distribution Cost

Win more market Share

Segmenting its Markets

Customer Intimacy

Tailoring its Products for Target Market

Satisfying Unique Customer Needs

1968

EVOLUTION

Dr. Marcian E invents micro processor Revolutionizes by lighter weight and greater speed IBM first to launch PCs. Founder Michael S Dell Focused on Custom built PCs and direct selling strategies. Designed Turbo PC Established strong customer base & quality sales service.

1981

INVENTION DELL EMANATES PRODUCT DVLPMNT

1984 1985

1987 1989

GEOGRAPHIC EXPNSN
PRODUCT LINE MARKET DVLPMNT REAPED BENEFITS

1st subsidary in UK Low cost marketing. Latest Technology with customization.

Introduction of Notebook. Entered Developing countries Targeted SMBs Enjoyed an increasing trend in profit over the span of 3 years.

1990 1992

1993

DIPS

Technological difficulties Retailed Marketing Mode Over forecasted Demand Growth in Server market.

1994.. 1996.. 2008

DIVERSIFICA TION DIFFERENTIA TION REVIVE BACK

Customization Direct Marketing Quality Products Focused on developing countries

DELL Marketing Mix in India

PRODUCT: Desktop . Servers, communication peripherals. Dell and oracle alliance to provide common point of contact for all computing requirement. Notebook PCs. PRICE: Dell cut down 6%-8% of distribution cots compared with other manufacturers by offering its products through company website and toll free number. PlACE: Dell tied with Tata croma in April 2008 to sail through their retail outlets. it open its own retail outlets in Delhi, Coimbatore. PROMOTION: Dell started campaigning with the tag line I Choose my Own path. I Choose Dell Dell launched real life successful entrepreneurs for its brand campaigning.

Target customers Intended positioning

Dell product launches between 2008-12

2008

The Studio line of compact and stylish consumer desktops

2009

In Fiscal 2009, Dell added the XPStm ,Alienwaretm and E-Series commercial Latitude and Dell Precision lines of notebook ,the 3G enabled Mini; a light, mobile notebook. The XPStm ,Alienwaretm , OptiPlextm , Inspirontm , Vostrotm , Dell Precisiontm lines of desktop. At CES 2010, Dell showcased a broad range of new products including its first ultra-mobile gaming laptop

2010

2011

Dell is launching a range of Dell Latitude Eseries models: the E5420, E5520, E6220, E6420, E6520, and E6420 ATG notebooks and the XT3 convertible tablet. Dell is also bringing several models of its Optiplex desktop line -- the 990, 790, and 390 Dell launches XPS 14 Ultra book, XPS 15 Ultra book Dell Launches New Cloud Products For Citrix Users

2012

2013

The new launch include the Dell Venue tablet line, the XPS 11 two-in-one, and the XPS 15 laptop.

Indian PC Industry: Unmasking the Competition

1980 1997

Two major developments led to the growth of Indian PC industry. Drastic Growth in the PC Market.

PC market Served three major suppliers

21st Century
Multinational companies Indian Brands

Local assemblers

SHARE OF INDIAN PC Market - Mid - Year Review 2002-2003

Major MNC Players 1. 2. 3. 4. 5. 6. HP IBM COMPAQ LENOVO ACER DELL Major Indian Brands 1. HCL 2. Zenith MNC Brands 36% Local Assemblers 44%

Indian Brands 20%

REDUCTION IN TAXES

2005

REDUCED PRICE GAP b/w BRANDED PC AND ASSEMBLED PC

POTENTIAL GROWTH OF PC MANUFACTURERS

2007

CHANGE IN DEKSTOP TO NOTEBOOK CENTRIC COMPUTER

EDUCATION

BUSINESS EXECUTIVE
TAREGT MARKET

HOUSEHOLD SMB MARKET

THANK YOU