Dell Hong Kong's Marketing Strategy: An In-depth Analysis

This report provides a comprehensive analysis of Dell Hong Kong's marketing strategy and plan within a competitive market. It begins with an executive summary, an overview of the company, and an environmental analysis using PESTLE and SWOT frameworks. The report evaluates Dell's current market strategies, market share, and competitive advantages in Hong Kong. Segmentation, targeting, and positioning strategies are discussed in detail. Recommendations are offered, including SMART objectives, new segmentation approaches, and adjustments to the marketing mix (product, price, place, promotion) to enhance Dell's market presence and profitability in Hong Kong. The analysis incorporates both primary and secondary data to support its findings and recommendations.

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