Marketing Strategy and Plan for Dell Hong Kong

This report discusses the marketing strategy and plan for Dell Hong Kong, including an environmental analysis, SWOT analysis, market share, and current market strategies. It also provides recommendations and marketing mix for Dell HK. The report targets business executives and college students as the main customers of Dell in Hong Kong.

Marketing Strategy and Plan
Dell Hong Kong

Marketing Strategy and Plan 1
Executive summary
In the competitive world, the managers of the company are performing their activities related to
the marketing of the product. Dell Hong Kong has been selected for the analysis of the factors
that are essential for the company. Based on the analysis company managers will be able to
identify the exact issues and according to that, the company can easily make the strategies which
will help the company in dealing the competition. The report includes the evaluation of the
current strategies and the competitive advantage of the company. Furthermore, the report reflects
the segmentation, targeting and positioning strategy of the company. In the end, there are some
recommendations to the company considering the overall analysis.
Content

Marketing Strategy and Plan 2
s
Introduction......................................................................................................................................5
Overview of company..................................................................................................................5
Environmental analysis....................................................................................................................7
PESTLE Analysis........................................................................................................................7
P- Political factors....................................................................................................................8
E- Economic factors................................................................................................................8
S- Social factors.......................................................................................................................8
T- Technological factors..........................................................................................................9
L- Legal factors........................................................................................................................9
E- Environmental factors.......................................................................................................10
SWOT analysis..........................................................................................................................10
Evaluation of the current market strategies...................................................................................12
Market Share..............................................................................................................................13
Sales of Dell...............................................................................................................................14
Analysis of the Dell competitive advantage in HK.......................................................................14
Segmentation, targeting, and positioning......................................................................................15
Segmentation of Dell.................................................................................................................15
Targeting of Dell........................................................................................................................15
The positioning of Dell..............................................................................................................16

Marketing Strategy and Plan 3
Recommendations..........................................................................................................................17
SMART objective......................................................................................................................17
New segmentation.........................................................................................................................17
Marketing Mix of Dell HK............................................................................................................18
Product...................................................................................................................................19
Price.......................................................................................................................................20
Place.......................................................................................................................................20
Promotion..............................................................................................................................21
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
Appendix........................................................................................................................................27
Appendix 1.................................................................................................................................27
Appendix 1.1..........................................................................................................................27
Appendix 1.2..........................................................................................................................27
Appendix 2.................................................................................................................................28
Appendix 2.1..........................................................................................................................28
Appendix 2.2..........................................................................................................................29
Appendix 2.3..........................................................................................................................30
Appendix 3.....................................................................................................................................30
Appendix 3.1..............................................................................................................................30

Marketing Strategy and Plan 4
Primary data analysis.............................................................................................................30
Appendix 3.2..............................................................................................................................34
Secondary data analysis.........................................................................................................34

Marketing Strategy and Plan 5
Introduction
Marketing strategy is referred to as the long term, a forward-looking method that is vital for
planning with the fundamental goal accomplishing a sustainable competitive advantage. The aim
of the report is to define the marketing strategy and plan for Dell Hong Kong. The report
includes the description of current marketing strategies of dell in Hong Kong and its competitive
advantage. Furthermore, it includes the STP strategy of Dell with the objective and goals of the
environmental analysis. Identification of the appropriate marketing strategies and marketing mix
to dell HK is discussed in the report. Hong Kong is the autonomous territory but officially comes
under the special administrative region of the people's republic of China.
Overview of company
Dell Inc. is an American multinational computer technology company based in Round Rock,
Texas. The company perform the activity related to the manufactures, sells, repairs, and many
other activities. The company came into existence in the year 1984 as PC’s Limited by Michael
Dell (Dell, 2018). The company offers different products of various brands, these products
include LCD, television, printers, laptops, monitors and many other products. The company is
involved in the marketing of laptops. Dell Inc. operates its business in numerous countries across
the world including Hong Kong; the company has its operations in Hong Kong (Dell, 2018).

Marketing Strategy and Plan 6
(Source: IT Global Hub & Telecoms, 2014)

Marketing Strategy and Plan 7
Environmental analysis
Environmental analysis is a strategic tool that is used by the company to determine the internal
and external elements that might affect the performance and decisions of Dell Honk Kong
(Kotler, 2015). The environmental analysis can be performed by a company with the help of
PESTLE and SWOT analysis.
PESTLE Analysis
PESTLE is a framework that is used by the company for the scanning of the external
environmental factors that affect the working of the company. PESTLE analysis of Dell Inc.
Honk Kong is discussed below: -
PESTL
E
Political
factors
Economic
factors
Technological
factors
Social factors
Legal factors
Enviornmental
factors

Marketing Strategy and Plan 8
P- Political factors
Political factors have an impact on the international business operations of Dell. Dell Inc. is a
company who operated the business operational internationally due to which they have to face
the pressure of different countries (Cant, et.al, 2007). Dell finds a high political stability in Hong
Kong due to which the company is able to perform smooth business operations along with this
the government does not levy heavy duties on import and tariffs which result in the great
opportunities for the company for the expansion of the business (Pratap, 2017).
E- Economic factors
The economic factors include inflation, deflation, unemployment rate, GDP, the purchasing
power of the customer and many other factors. The economy of Hong Kong expanded by 3.9%
every year in the first three quarters of 2017 after growing by 2% in 2016. The government of
Hong Kong forecasted the growth of 3.7% as a whole for the year 2017 (Forbes, 2017). This
shows that dell has the vast opportunity of expanding the business and the purchasing power of
the customers is also increasing in Hong Kong.
S- Social factors
The social factors include the societies and cultural values of the country. The preferences of the
customers in the market fluctuate because of growing trends. The demand for smartphones and
sales has created the impact on the sales of laptops and PCs across the world. The society of
Hong Kong consists of professionals, top managers, business entrepreneurs and bureaucrats
(Kothari, 2017). The society of Hong Kong demands the laptop and other products offered by the
company and due to this the company is able to survive in the market.

Marketing Strategy and Plan 9
This factor is one of the important elements which are considered by the Dell while performing
the activity of marketing and advertisement. The changes in the trends and preferences have an
impact on sales of the particular products due to which the company has to bring changes in their
strategy of marketing. While performing the marketing of laptops the company should consider
the USP that they are offering to their customers.
T- Technological factors
Dell is a well-known technology company and this is the reason the company gets influenced by
the technological changes. The technology used in the mobile phones is continuously affecting
the sales of the PC in the market of Hong Kong. The company is dealing in the cloud business
and offering a large range of cloud solutions due to which the company has to take instant
actions to remain competitive in the market. The company has also introduced new versions of
the products especially laptops which the help of technology and this helped the company to beat
the competition (Pratap, 2017). Many competitors of the Dell have entered into the business of
cloud services which leads to the strong competition for the company.
L- Legal factors
Dell in Hong Kong market doesn’t have to bear high taxes because the government of the
country is well-known for its simple tax system. The tax rate in Hong Kong is relatively low due
to which dell is able to make profit or revenue. The legal system of Hong Kong is very
transparent and effective which helps the company in fulfilling the legal obligations. The
company understands the legal system due to which they are able to accomplish their obligations
(Govindarajan, 2007).

Marketing Strategy and Plan 10
E- Environmental factors
The aim of the company is to build a corporate culture for generating the awareness in order to
maintain the values of the environmental conservation. The company executes the program and
process in such a way so that they can ensure the operations and products that are
environmentally friendly in the market of Hong Kong (Rausser, Swinnen and Zusman, 2011).
While conducting the business operations the company guides their shareholders in the official
meeting clearly that they work with for the welfare of the environment and public so that these
shareholders think before taking the actions.
SWOT analysis
SWOT analysis is undertaken by the companies to identify the internal strengths and weakness
along with the external opportunities and threats (Wagner and Eggert, 2016). SWOT analysis of
Dell Hong Kong is discussed below: -
(Source: Wheelen and Hunger, 2011)
Strengths

Marketing Strategy and Plan 11
 The prices of the products offered by the company are low and competitive prices
because the company is able to maintain a very effective and efficient procurement,
manufacturing, distribution and marketing process in Hong Kong.
 The company also offer customization facilities to their customers in order to enhance the
customer satisfaction by fulfilling their needs and requirements.
 Dell in HK believes in reliability, service, and support which reflect that the company
offers improved and effective customer service before and after the sale of the product.
 The company introduces new technology in the market with the help of their research and
development team that helps the company to avoid using the indirect distribution
channels like other competitors (Wheelen and Hunger, 2011).
Weaknesses
 Dell approach for the customization and direct method leads to the problem for the home
users because every customer can’t visit the dealer for the customization of the product as
dell does not make use of distribution channels.
 The weakness of the company is their efforts to attract the college student of the market
because the sales and revenue from the educational institute is an account to nearly 5% of
the total sales and revenue (Hitt, Ireland and Hoskisson, 2012). The company has the
ability to attract government and maximum corporate institute and by doing so dell will
be able to find the hike in the sales and revenue.
Opportunities
 The company is already offering different services (cloud, security, and infrastructure)
and enterprise solution (serves, storage and networking) which helps the company in

Marketing Strategy and Plan 12
generating profit. The company should focus on these segments and should try to expand
the services for better profit (Hitt, Ireland and Hoskisson, 2012).
 Dell has the opportunity to acquire the business through which they will be able to obtain
more patents.
 The company has the opportunity to strengthen its presences in the market for laptops
because the demand for the laptops is increasing over desktops.
Threats
 The company might face the threat with the introduction of new technology in the market
because with the implementation of new technology in computers and laptops the
demand of the customer fluctuates.
 Price difference among the other brands is one of the important external threats for the
Dell HK. The competitors are offering the computers at the low costs with the use of
technology and by eliminating the intermediaries (Jurevicius, 2013). Low cost will also
help the brand in making strong customer base in the market of Hong Kong.
Evaluation of the current market strategies
The current market strategy of Dell is discussed which shows the target customer or target
segment in the market of Hong Kong. The company offers different products in the market for
which the company targets different customers from the market of Hong Kong. Mainly for the
Dell PC and laptops, the company targets the business executives and college students as through
this the company can generate the revenue in Hong Kong.
Overall the company targets the two classes of customers which are given below: -

Marketing Strategy and Plan 13
 Relationship customers: - The large share of profit of company comes from the long-
term corporate relationship with the customers. This relationship is performed with the
customers includes a large corporation, government and some education sectors (Wedel
and Kamakura, 2012). To maintain, the effective relationship with the customer's dell
ensures the quality of products that they are offering to their customers in Hong Kong.
 Transactional customer: - These customers are those customers who are price-sensitive
and are looking for a quality product at low cost. Transactional customer fetches the
product through online mode so that they can fulfill their expectations due to which the
company offers its product through online medium. The company makes use of the latest
technology in their products because of regular update in the purchase pattern and
technical support.
Market Share
The company is world's largest manufacturer of personal computers and this is the reason
company is aiming at double market share in China that is about 20 percent. It is expected PC
shipment in the country to bring the growth to 30% in the second quarter in 2005 (Lau, 2005).
Lenovo is the Chinese manufacturer of PC due to which the most of the market of HK is acquire
by Lenovo but HP and Dell are giving strong competition. In the year 2012, the dell profit
margin was 6.2% which was higher than the Lenovo 1.4% but not higher than HP which was
7.4% (Worstall, 2012). Now, the company should update its objective and should focus towards
the increase in market share of the company in HK (Feng and Woodhouse, 2017). (Please refer
Appendix 1.1)

Marketing Strategy and Plan 14
(Source: Statista, 2018)
The above image reflects the statistics of the dell market share of PC shipments across the world
from the first quarter of 2011 to the latest quarter. Considering the image, in the fourth quarter of
the year 2017, Dell’s market share was at 15.2%.
(Source: Dunn, 2017)

Marketing Strategy and Plan 15
The above image clearly reflects the market share of the company in the worldwide traditional
PC shipment for the year 2017. HP is leading in the PC shipment and Lenovo is competing HP
with 20.4%. Along with this, Dell has 15.9% share.
Sales of Dell
Dell HK sales are less than the Lenovo and HP both the companies have acquired the largest
market share which shows that the sales of the Lenovo laptop are higher. The market share of the
PC makers in the quarter third of the year 2011 and 2012 shows that the Lenovo has achieved the
growth in market share by 9.8 and for the remaining companies there is decline including dell by
13.7. Please refer appendix 1.2 which shows the market share acquired by dell HK.
Analysis of the Dell competitive advantage in HK
Competitive advantage refers to as the benefits that the company maintain with them over its
competitors in the competitive market. Dell also has some advantage over its competitors which
makes the brand different (Porter, 2011). The company occupied the 165th rank in Fortune’s
Global 500, a list of the largest multinational corporation in the year 2013. Dell is able to
maintain a perfect balance between the demand and supply of the products which is possible
with the strategic use of the information. The company makes use of the internet-based ordering
system that updates suppliers with the latest demand trends. The inventory of the company was
reduced to only three days’ worth which was the lowest among the industry. The competitors of
the company are HP, Apple, Lenovo and many others. In the Hong Kong market, Lenovo is
giving strong competition to the dell.

Marketing Strategy and Plan 16
Dell company competitive advantage in Hong Kong is the quality of products with the low cost.
The company believes in securing their suppliers and gaining the access to the low-cost factors.
The workforce of the company is highly productive is one of the most important competitive
advantages for dell in Hong Kong as compared to its competitors.
Segmentation, targeting, and positioning
Segmentation of Dell
Segmentation refers to as dividing the market into the smaller groups that share needs, wants,
behavior towards the goods and services offered by the company (Baker, 2014). The computer
market has different products which are basically classified into the categories of software and
hardware. There are 2 main segments for dell which includes customer market and business
market. The customer market includes the demographic, socio-economic and demographic
segmentation. This segment includes the people who make use of dell products for personal uses.
Another segment is business market, this segment includes the business persons and the
government of the country who purchase the products of the company in bulk for their uses.
These segments include all the people with whom the company has good relationship apart from
the customers (Wedel and Kamakura, 2012).
Targeting of Dell
Target markets refer to as the selection of the segment to which the company is willing to offer
its goods and services on the primary basis. The company makes use of the customer
segmentation in the marketing strategy in which the company targets the several different
markets for different products that are offered by the company (Needle, 2010). Geographically,

Marketing Strategy and Plan 17
dell is able to offer its products across Hong Kong and beyond that as well. Demographically, the
company targets the customers irrespective of age, gender, race, income, occupation. The
company target the customers who belong to a middle-income group and higher income group as
the products offered by the company is affordable for the middle-income group people as well
(Boone and Kurtz, 2013).
In the Hong Kong market the company primary target those customers who are price sensitive by
doing so the company is able to offer its quality product at low price.
Positioning of Dell
Positioning refers to as the value of the company in the eyes of the customers. In other words, it
reflects the image that is occupied by the company in the mind of the customers who are targeted
by the company. The positioning of the company in the Hong Kong market for the Laptop's and
tablets is given below in the positioning map.
(Source: Lynn, 2011)

Marketing Strategy and Plan 18
The positioning map clearly reflects the position that is capture by dell in the market that is high
quality with low prices. Moreover, the map also represents the positioning of the competitors of
dell that present in the market. The map shows that the dell faces the strong competition with HP
in the positioning of the company.
Recommendations
Considering the above environmental analysis there are certain recommendations to the company
related to the objective and strategies that should be followed by the company to maintain the
same position in the market with more revenue and sales.
SMART objective
The smart object is an objective statement that describes what a team, organization and the
individual believes to achieve. SMART stands for specific, measurable, achievable, realistic and
time-bound. It is recommended to the company to make the Smart objective for the company.
Specific- The objective of Dell should try to increase the market share by 10% at the end of the
year 2018. This objective has been set considering the market share of Dell for the year 2017.
Moreover, considering the share if company will be able to increase the market share by 10%
then only it will be able to lead the market.
Measurable- The increasing the sales is one of the measurable objectives of the company.
Achievable- Dell should try to create at least 10 products from the environmentally friendly
material and are recyclable.
Relevant- Dell should try to form the tie-ups with the new suppliers as by doing so the company
will be able to reduce the expensed on materials.

Marketing Strategy and Plan 19
Time-based- The company should form the target for per year.
New segmentation
Considering the fact that the market of the laptop is declining, the new objective of the company
is to achieve the hike in the market share by 10%. To achieve the objective it is recommended to
the company to target the new segment in Hong Kong which will help the company achieve the
objective. According to the current segmentation of dell, the company has targeted the possible
segments but now the company should target the segment of an elder person with the age group
of 60-70 years. In addition, the segment includes both male and female belong to the middle and
high-income group. According to the population data, Hong Kong consists of more than 400
thousand people within the age group of 60-70 by the year 2016. (Refer Appendix 2.1) This
segment has been selected considering the SWOT analysis of the company.
The segment has been selected considering the age structure of Hong Kong. In Hong Kong
approximately 15% of the people are having the age of 55-64 and 14% of the people are having
the age group of 65 and above. In addition this has been noticed that the literacy rate of the
people in Hong Kong is continuously increasing. In the year 2014, the literary rate in Hong Kong
was 95.40 which are quite high. This indicates that most of the people in Hong Kong are
educated and knows how to operate the laptops along with the uses of laptops. (Refer Appendix
3.2)
Apart from this, this segment will be beneficial for the company because the population of Hong
Kong population aging faster which is clear with the help of graph shown in Appendix 2.2.
Therefore, if the company target this segment then the company will be able to accomplish the

Marketing Strategy and Plan 20
objective. Though, considering the segment the company has to make few strategies related to
the product, price, place, and promotion.
Marketing Mix of Dell HK
A marketing mix is a tool that is used by the company to analyze the strategies that are formed
by the company. The recommended dell marketing mix is given below: -
(Source: Armelini and Villanueva, 2011)
Product
The company is well-known in the market for its laptops which are offered to the customers with
innovation and quality. The company is able to manufacture the products for both business class
and consumer class (Armelini and Villanueva, 2011). Now, the company has to manufacture the
products for the new segment that is an elder person. It is recommended to the company to bring
the features which help the elder person to access the laptop. A maximum number of elders

Marketing Strategy and Plan 21
doesn’t make use of laptop because they find it an inconvenience. Dell should introduce lightly
weighted laptops with the facility of voice control system. In this system, the customers can
access laptop with the use of their voice. The voice control system is laptop is not offered by any
other company so this is going to be one of the effective ways to generate competitive advantage
in the market.
Considering the Questionnaire conducted it has been analysed that the voice control feature will
be effective for the ageing population of Hong Kong as most of the people found the problems in
operating the laptops due to the keyboard or many other reasons. This is the only reason the
voice control feature on a laptop will help the elder person to find laptops friendly. (Refer
Appendix 3.1)
Price
The company has kept the prices of the products aggressively so that they can discourage their
competitors in the market. Most of the products of the company from laptops to PCs are priced
competitively. The main aim of the company is to produce the products at low prices so that they
can make maximum profit by satisfying the expectation of the customers (Rosenbloom, 2012). It
is recommended to the company to provide voice control laptop at affordable prices to the
elderly person considering their monthly income. (Refer Appendix 2.3). Generally, in Honk
Kong the prices of laptop start from HK$ 5,500- HK$10,000 or more than this. So the price for
the Voice control laptop should be in the range of HK$ 5000- 7000 considering the dell
questionnaire given in the Appendix 3.1.

Marketing Strategy and Plan 22
Place
Place includes the channel of distribution and how the company provides its products to
customers. Dell offers its products not only at Dell store but through its website and e-commerce
sites which include Amazon, Snapdeal, and Flipkart. Dell also offers its product to retail stores
so that the customer can visit the store and physically check the products (Azadi and
Rahimzadeh, 2012). It is recommended to the company to offer the facility through which the
elderly person can book their laptop through telephonic conversation or they can appoint the
assistance for a home visit. Home visit facility will help them in identifying the suitable laptop
for them.
Promotion
The company makes use of different promotional techniques to reach the maximum number of
potential customers. The company makes use different promotion strategies and tool to promote
laptops in the market of Hong Kong. Mainly the company market its products through
advertisement on television, online, print media, e-mail, and brochures (Armstrong, et.al, 2014).
Considering the new target segment i.e. elderly person the company needs to bring changes in
their promotion strategy. It is recommended to the company to open free workshops where they
can give a demonstration of their new voice control features in the laptops that provide the
convenience. In addition, the company can make use of the hoardings to make the elderly person
aware of the fact. This will help the company to attract most of the elderly person who has not
used the laptop as of now. Moreover, this will help the company to attract those elderly people
who are already using laptops. It is recommended to the company to upload maximum videos on
YouTube related to products features and description so that company can grab the attention of
its customers.

Marketing Strategy and Plan 23

Marketing Strategy and Plan 24
Conclusion
It can be concluded from the report that the company has a vast opportunity in Hong Kong
market. Though, the company is facing strong competition in the market from the leading
companies like HP and Lenovo. Hong Kong people mostly like to consume the products that are
offered by the Lenovo because the brand is Chinese brand. Though, the strategies formed by the
company after the analysis will help the company to perform the marketing of laptops in an
effective way. The report includes the environmental analysis because these factors might affect
the working and strategies of the company. Moreover, it includes the USP of the company and
the STP strategy of the company. After considering the strategies, the SMART objective and
marketing mix strategies are recommended to the company.

Marketing Strategy and Plan 25
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2018].

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2018].

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Marketing Strategy and Plan 30
Appendix
Appendix 1
Appendix 1.1
Current market position of Dell HK
(Source: Linnane, 2017)
Appendix 1.2
Market Share of Dell HK

Marketing Strategy and Plan 31
Appendix 2
Appendix 2.1
Population table of Hong Kong

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(Source: CIA World Factbook, 2018)
Appendix 2.2
Hong Kong population aging fast

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Appendix 2.3
Monthly income in HK
(Source: Wong, 2017)
Appendix 3
Appendix 3.1
Primary data analysis

Marketing Strategy and Plan 34
Dell Survey
Name-
Q1. What is your age group?
 40-50 years
 50-60 years
 60-70 years
 70-80 years
Q2. What is your profession?
 Business
 Employed
 Self-employed
Q3. Do you make use of laptops?
 Yes
 No
Q4. Rate the laptop brands from 1 to 5 according to your preference? (1 as the lowest and 5
as the highest)
 HP
 Dell
 Lenovo
 Apple
Q5. Why you chose laptops of Dell Brand?

Marketing Strategy and Plan 35
Q6. Do you face any problems while operating Dell laptops?
 Yes
 No
If yes, specify
Q7. What do you like most about Dell laptops?
 Design
 Services
 Customization
 Prices
Q8. How you find the prices of Dell laptops?
 High
 Medium
 Low
Q9. To avail the customer services which option you will prefer the most?
 Visiting Dell store
 Online guidance
 Telephonic guidance
Q10. Would you like to buy Dell laptop with the voice control feature?
 Yes

Marketing Strategy and Plan 36
 No
If No, why?
Q11. What price range would you like to pay for Dell laptop with the voice control feature?
 HK$ 5000-7000
 HK$ 7000-10,000
 HK$ 10,000-12,000
Q12. Would you like to buy a Dell Laptop with the voice control feature or another brand
in case of changing it?
 Yes
 No
Why and why no. Give reasons
Q13. Would you recommend Dell laptops with voice control feature to other?
 Yes
 No
If No, Why

Marketing Strategy and Plan 37
Appendix 3.2
Secondary data analysis
Age structure of Hong Kong
(Source: Novotech, 2018)
Literacy rate in Hong Kong
(Source: Social Indicators of Hong Kong, 2018)

Marketing Strategy and Plan 38
(Source: Social Indicators of Hong Kong, 2018)
Below given is the statistics of literacy rate according to the year
(Source: Social Indicators of Hong Kong, 2018)