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Dell's Marketing Strategy

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MARKETING STRATEGY OF DELL Marketing 301 Table of contents Introduction 3 History 3 Dell Today 3 Dell Corporate Strategy 4 Marketing Strategy 6 Segmentation 6 Targeting 7 Positioning 7 Competition Analysis 8 SWOT Analysis 10 Strengths 10 Weaknesses 10 Opportunnities 10 Threats 11 Marketing Mix 11 Product Strategy 11 Pricing Strategy 11 Placing Strategy 12 Promotion Strategy 13 Conclusions 13 Works Cited 15 Introduction History Michael Dell founded Dell, a multinational information technology company, on November 4, 1984. With nearly 100,000 workers worldwide, Dell is one of the largest companies in the field of technology. The company at first dealt with trading of PC and that's how that started making money. But after just one year they produced their first PC named "Turbo PC" and it was sold for about $800. At the very first year the company made a gross profit of around $75 million. Dell it's a well know company worldwide and its first expansion happened In 1988 in Ireland. On the same year the market capitalization of Dell was around 80 million and was included as one of the 500 biggest companies on fortune 500. In 1996 Dell made one of the best decisions yet, by selling computers online where you can customize a computer of your own in just few clicks. After a while dell Started acquiring big companies on the market so they could be as competitive and effective as possible. Dell Today Dell today is one of the biggest companies that operate in the market. The Company's four global business segments are: Large Enterprise, Public, Small and Medium Business, and Consumer. It designs, develops, manufactures, markets, sells, and supports a wide range of products and services that can be customized to individual customer requirements. The Company's products and services are organized between enterprise solutions and client categories. Enterprise solutions include servers, storage, and related services, software and peripherals. ...read more.


are at a more expensive price but provide a bit more characteristics to customers who have some specific needs in their laptops. Given the fact, that Dell is a company that operates worldwide and tries to reflect the needs of customers it would be better to maintain differentiated but integrative marketing strategy so that it has a niche in each of the markets in which it operates. Competition Analysis Porter's Five Forces Threat of New Entrants : Low It is very easy to set up a new Pc Company. This is the reason why there are a lot of such companies and the market is extremely price competitive. Each component of a PC can be sourced from outside, and the operating sytem can be either Microsoft or Linux. On the other hand is that there are high economies of scale, thus even though a company might enter the market it should start selling in very big quantities in order to make profit and will need a lot of promotion in order to compete with the market leaders. A possible barrier to entry might be the strong brand name that Dell has, a new company will have diffuculties to take market share from them. In general, there are a couple of key manufacturers that have strong brand names and a small manufacturer might find it impossible to compete against. It will be difficult for a small firm to acquite the capital needed to compete with the giants. Moreover, Dell's brand loyalty is very high as they are doing their best to keep customers satisfied . The Switching Costs are also very high, because the computers are made I a certain way to work with certain products- programs and switching to a different brand can cause them pay more or another product. Moreover, Dell has created a unique value proposition giving a high quality product in a lower price. ...read more.


The main digital media channels used by Dell.com in Europe are: * Paid search through programmes such as Google AdWords is used to promote value through time limited offers related to the phrase searched upon. For example, a Google search for "cheapest Dell" displays an ad: Discount Dell Laptops www.dell.co.uk/laptop Save up to �300 on selected Dell Laptops from �329. Buy online now! * Display advertising for example advertising on technology web sites is particularly important for the corporate market * Affiliate marketing - used to protect the Dell brand by enabling affiliates to bid on terms such as "Dell laptops" and to target niche audiences such as owners of gaming machines. * Email marketing - an e-newsletter is used to keep in touch with existing customers and deliver targeted offers when their hardware may be renewed. * The company is using effectively social media sites as Facebook and Twitter to keep its customers up to date with what is happening with the company. Moreover from the fact that customers are directly ordering the products they want, we can conclude that the company is using pull strategy, where customers are searching for the product. On the other hand, the advertisements they are using are catchy, both viral - being published in the internet and on TV as well. They are using famous people, famous songs to accompany the ad. Conclusions Based on the analysis above, we can conclude that Dell is a company that is example for successful marketing strategy, that succeeded through differentiation and cost leadership to attract a great number of corporate customers as well as home users and professionals. What is more, it Is a company that is continuosly innovating their products and thus responding adequately to the rapid growth o other computer companies. What Dell needs really to do is promote even more their products and continue being the leader through cost efficiency. They need to put serious attention on the competition, because they can easily loose market share. ...read more.

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