Dell Inc. Notebooks

The following report is presented for Marketing 201 and has been compiled by Hanh Bui. The aim of this document is to identify the organizational and marketing strategy of Dell. We will also discuss the issues relating to the product, price and promotional mix of their notebooks and the relevant marketing channels. Furthermore, recommendations have been made based on the undertaken research and analysis. In order to gain information for this report, secondary research methods were used that includes the internet, books, newspapers and databases. Michael Dell founded the company Dell in 1984. He discontinued his studies at the University of Austin at the age of 19 in order to devote himself completely to his company. In 1987 the company was renamed Dell Computer Corporation and in 1992 the company had the privilege of being one of first 500 companies in the United States according to Fortune magazine. Dell operates principally in the Americas, Europe, Middle East and Africa, and in the Asia Pacific region and Japan as well. (Dell Inc., 2006) This report will focus on their notebooks which are a very important part of Dell's business. Their notebook computers accounted for 28.6% of their revenues in 2005. (Dell Inc. Major Products and Services, 2006)

[...] (Dell Case Study, 2006) Dell has to pay attention to regional differences when advertising. Advertising campaigns are adapted to local requirements: for example the UK and Spain, there are TV channels with very large audiences. Accordingly, advertisement on television is used more frequently in these countries’. (Dell Case Study, 2006)[8] Public relations Dell distributes information to the shareholders of the business and gives press releases to the press. They try to have a good relationship with their shareholders and the media in order to keep up a positive image of their brand Direct marketing Dell also tries to create one-to-one relationships with customers. [...]

[...] Dell offers the following lines: The Latitude product line of mobile computers was developed to correspond with a wide range of business and organisational needs such as powerful performance, portability, and flexibility. Latitude offers a diverse range of laptops from wireless-ready and highly expandable full-featured models to thin and light ultra-portable models. (Dell at a Glance: Products and Services, 2006). The Latitude line focuses on the institutional, government and business customers segments. (Dell Inc., 2006). The Inspiron product line targets small business and customers who require powerful and high-performance computer systems at leading prices. [...]

[...] Their direct-marketing, customer-focused, high-quality product-approach has made them the leader in their field Recommendations In order to persuade (non-internet using) customers to buy notebooks from Dell, Dell should open kiosk in Europe just like they have done in the USA, Canada and Australia. Outlets should also be opened in other areas then the USA. This way they would increase tangibility of their products and services. They should try to improve their poor-customer-service image. Outsourcing of these after-sales services has damaged their reputation according to a marketing report.[10] Qualified and sufficient staff should be hired in local call centres so Dell’s support can be provided instantly. [...]

[...] However, Dell differentiates in its marketing tactics in that it believes in establishing a brick and mortar market presence. This is why the company has established sales offices and manufacturing outlets across North America, Europe, Asia and South America. Therefore, it has been able assess the needs and wants of the local customers. (Dell Annual Report, 2004) Apart from the above customer level niche marketing, Dell also believes in reducing competition through collaboration. Unlike other leaders in the industry such as HP and Compaq, Dell does not believe in taking over existing competitors to eliminate competition. [...]

[...] Dell does not have a specific pricing strategy for their notebooks Marketing Channels[5] Dell delivers the products; they manufacture themselves, directly to the end user (either the consumer or the business user). Therefore they have a direct distribution channel and a direct-sales model. (Promotion and place, 2006) (Dell, 2006) Direct marketing saves costs, but it also allows them to get to know the needs and wants of their customers. (Dell Case Study, 2006) They also build their notebooks on a just-in-time (JIT) and build-to-order (BTO) basis. [...]