MARKETING STRATEGY OF DELL’S LAPTOPS AND COMPUTERS

MARKETING DELL'S STRATEGY AND COMPUTERS

IMPORTANT

            Dell is a global informatics corporation established in 1984 in Texas. The corporation started operating publicly in June 1988 but was privately held and purchased in a leveraged purchase of US$ 24.4 billion in October 2013. This purchase was driven by the company's founder Michael Dell and is the biggest technological purchase to date, which exceeds Freescale Semiconductor's 2006 purchase of 17.5 billion US dollars.

            Dell's popular items are primarily notebooks and personal computers. As the largest technology firm, Dell has a brilliant long-term, customer-focused development approach. It was one of the first notebook firms to provide mass adaptation on their laptops.

            DELL segment the offers focused on the criteria of psychography and demographics. It targets technologically knowledgeable individuals, professionals, and managers. In addition, it strengthens the consumer engagement platform to support other businesses.

            A good consumer connection and serviceability are the winning factors in Dell's hardware and software industry. The policy of Dell is multinational. It recognizes that it is important to be physically near the consumer to develop its marketing campaigns and the customer base.

*The items that I want to analyse further are Dell PCs (PCs)*

SEGMENTATION and DELL PERSONAL POSITION AND MARKET ESTIMATION

            Dell Inspiron is ideal for a diverse variety of clients, but mostly university students. Customers in this Dell sector are between 13 and 25 years old. College students are individuals who have been immersed in a young age's computing community. They remain in the generations of baby boomers. As students usually do not have a lot of capital on their own, consumers are typically financed by an external source. The price of this product line is also held in a fair range such that an average student will pay it. Because, according to the company's approach, they want to sell their goods globally because there is no geographical limit.

            They are tech-savvy individuals as college students. Thus, Dell Inspiron has several characteristics that are ideal for this segmentation. What are the students looking for from a laptop? Their notebooks must be playful and fulfill various uses, not just for learning but for fun. The Dell Inspiron line, which understands this need, gives customers high processing speed. This product provides consumers with Intel processing units from core i3, i5, and i7 with decent speed in processing information and function with several tasks. Dell offers an entertainment system with two Stereo speaker microphones and AMD graphics processors. Dell quite much knows the client. They have a lightweight notebook, typically 2-3,5kg, and a long battery life, which can easily be found anywhere (at class, at home, or for a party).

To estimate a product's market share, we take these five steps:

Step 1: Defining target clients

1. Identity who the intended client is: 

            Dell Inspiron's target consumers are university students (young, senior, or graduate students) who use laptops and notebooks for their studies every day.

2. Create the standard (expected) goal consumer profile:

A typical consumer may be represented in this market:

- 15 to 27 years of age

- Familiar with society's latest movements

- Savvy technology and news excitement

- Simple multi-task and folder/file management

- Normally, payment by parents or other outlets of financing

Step 2: Estimate of target customer amount

            Through analyzing publicly accessible sources, we find that our focus audience included about 20 million university students in the United States in 2018.

Step 3: Determination of the degree of penetration.

            Without a device with Internet-based word processing capability, it is almost difficult to research in the developing world. While the penetration of those three developments has not hit 100%, it is nearly enough for market development and preparation to use this presumption.

            In the United States, the penetration rate of personal computers in 2015 amounted to 86.8%. It says that 86.8% of households have personal computers.

Step 4: Calculate market size potential: volume and value.

Then we use these formulas to quantify the future business size:

* Volume of the market = Consumer goal number x Penetration rate

* Therefore, Dell personal computers have sales volumes in this case:

* 20 thousand x 86.8 percent = 17.36 thousand students

* Value of market = Volume of the market x Average value

* The average worth that a middle-class student gives a Dell laptop is around $500.

* Value = 17,36 thousand x 500 dollars = 8,68 billion dollars.

Step 5: Apply data on the business size.

- In this phase, we would essentially change what we predicted based on real-time market data.

- Dell shipped 10.46 million units in the second quarter of 2018, just behind HP Inc and Lenovo (13.59 and 13.6 million units).

- 62,1 million personal computers have been exported worldwide from April to July. This Dell has a market share of about 16.8 percent.

This allows us to change our data:

Volume of the market = 17,36 million students x 16,8% = 2,92 million students

            The average PC sales price was forecast to be 629 US dollars in 2017. According to the article, cost increases were partly attributed to more costly materials such as memory and hard drives. Although vendors are taking some of the price increases on their own, some of the rate increases are anticipated for customers. We thus conclude that Dell's average price is around $630, the average for other brands' machines.

Based on market data, we can change this:

Market value = 2.92 million students x 630 dollars = 1,84 billion dollars.

THE FUTURE GROWTH MARCHET POTENTIAL

Based on five principles, we assess the future growth prospects of this target market:

            Market size – The number of foreign students coming to the United States to study in universities and colleges is growing throughout 2017 because of President Donald Trump's stringent rules and regulations expected at 2 million students by 2020. For the next couple of years, about 21 to 22 million students can remain in the US.

• Market development – The need for students to purchase modern personal computers is growing as we see more and more people joining American soils. However, due to the danger of substitutes, such as handheld devices or laptops, the amount of the laptop has decreased. We can estimate that Dell's demand development is at a fair pace.

• Profitability – PC rates are basically offered according to Moore's rule. Every 18 months, however, the cost of processors is halved, and processing speed is doubled. But the cost of a laptop will soon decrease.

— Strong rivalry from local producers such as HP and Lenovo. And there are also other manufacturers from international companies with lower prices and similar characteristics, especially from China or Asia. However, Dell's faithful client is still there. For any product range, good facilities, and customer support, the brand ensures good quality results.

            Kind of customer – it'll be a repeat company, since new student generations and old generations every year graduate. Customers that prefer Dell will come back and forth most likely. Any customer would be relevant since Dell is in the technology industry and the growth of this industry is rapid. The company must adjust to this transition because of the taste and desires of its students.

            In general, the growth potential of this target market is promising if the firm maintains its successful work, like R&D, by constantly striving to achieve new potential.

DELL PERSONAL COMPUTER MIX MARKETING To STUDENTS

            To hit the target group, Dell combines its cost advantages with the marketing combination approach. Dell has production plants, apart from the developing economies of the planet, in the developing markets of China, India, Ireland, etc. The big strategic benefit of Dell is its serviceability, i.e. rapid reaction, improved customer service, and a value channel.

            One of the initial sources of strategic advantages for Dell is its famous direct sales and built-in strategy. The just-in-time (JIT) strategy helped it to function at the industry's lowest inventory stage. Dell focuses on strategies guided by consumers by working alongside customers to identify ways of making technology work for them.

            Therefore, I would also equate Dell with an HP laptop to assess the Marketing Mix of the personal machine of Dell. HP is Dell's major rival for the students' target market.

1. Product:

            The Dell personal computer's key target demographic is primarily students with technological expertise. The goods were thus produced to meet these specifications (long-lasting battery, lightweight, ideal for various tasks...). Dell focused on the architecture in particular by having a decent sound system and tools for graphics. They regularly connect with companies like Microsoft to help students integrate the applications they need (Microsoft Office, Microsoft system).

            Dell has that, and it appears like it will try to have a standard look for their laptops. A look that makes your laptop look like the right gadget not just for a school kid but also for an office-going person. Dell also offers its consumers a wide variety of colors, while HP offers computers only in few basic colors. In essence, Dell offers a generic product that suits a wide variety of individual preferences.

2. Price: 

            Dell notebooks are comparatively cheaper than HP laptops. If you are on a small budget and need a really high-quality laptop, suggest examining the Dell set, which is appropriate mainly for students who have received budgets from another source.

            Dell purchases the laptop directly from its specialist seller. But most HP laptops are offered through a specialist manufacturer. This finally makes HP notebooks even more expensive than Dell. Dell notebooks range from $300 to over $1000 and offer customers an excellent option.

3. Square: 

            Dell goods are distributed internationally, so does HP. Dell products. But a laptop, especially if used in official or study-related applications, must perform correctly at all times; a small problem will trigger a great deal of trouble and concern. You will never have to complain about crappy customer care if you purchase a Dell laptop. If you are a regular traveler and fly a lot across the world, I recommend choosing Dell. It provides customer service in several nations. If your machine gets broken while you're in a foreign place, it is a shame that Dell customer service will really help to save you a lot of trouble.

4. Advancement:

            Dell knew that he truly cared about his clients. It frequently provides incentives like free memory updates or memory upgrades that are very cheap. Everything you have to do is search carefully for those offers on your website.

            Dell has outstanding support to its customers. They are online and on the phone 24 hours a day, 7 days a week. If you are in a certain country or country, they may even send an official from their office to assist you with any issues you might have.

Now Dell laptops are "repositioning" to another business segment to accelerate growth.

- How are you going to reposition this commodity in this emerging business segment?

- What modifications would you (if any) bring to sales in the marketing mix?

- What are the main reasons to make repositioning successful?

We have to look at industry developments over the next several years to reposition a software commodity.

There are also five technological developments here:

• Citizen AI: By responsibly "lifting" the AI, companies can build a collaborative, strong new employee.

• Extended reality: The way we relate to people, facts, and interactions is transforming through immersive experiences.

• Veracity of evidence: Companies need to change current capabilities to address a different type of vulnerability: unreliable, distorted, and skewed data leading to impairment.

•  Free Business: Businesses must first re-architect from their own internal legacy structures to completely strengthen their external technological relationships on which they are dependent for expansion.

•  The Internet of Thinking: Enabling technology intelligence requires an overhaul of modern infrastructures for the next millennium.

            This will reposition the current Dell personal laptop as a standardized device and a priority product that will be appropriate for multiple individuals around the community over a large number of age groups. Dell can be tailored to incorporate multiple personal apps for customers.

For Dell personal computers, several changes:

• Integrate tablet with large AI device into a computer to make it even more mobile, and new generations of students are shifting (faster in tech changing).

•  Use the Dell Support Framework to conduct surveys and refine offerings based on consumer response.

•  Have high-class luxury products at a wide variety of costs.

•  Have a complete cycle of after-sales facilities like hard drive shift.

• Since the battery lifespan of Dell does not last as long as HP, we can adjust vendors or have a long-lasting battery for the product line.

• Next, the future might be laptops with a lot of integration to run without cellular networks.

            To make this repositioning a success, it requires a large number of budgets for research and development. The marketer must still adhere to market dynamics and technological trends. He or she must respond to these trends, forecast what will happen in the next few years, and change the marketing strategy concurrently.