Comprehensive Marketing Plan for Dell Inc. - Strategies and Analysis

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This report provides a detailed analysis of Dell Inc.'s marketing plan. It begins with an introduction and market focus, outlining Dell's objectives to build its customer base and reduce competition through effective marketing strategies, including brick-and-mortar and niche marketing approaches. The report then delves into SMART objectives, segmentation (demographic, geographic, and psychographic), targeting, positioning, and differentiation strategies. The marketing program section covers the marketing mix, including product offerings, pricing strategies, distribution channels, and promotional activities. The report also includes financial projections, forecasting revenue and profitability over three years. The conclusion summarizes the key findings, and references and appendices are included for further information. The report highlights Dell's focus on providing innovative products, customer satisfaction, and leveraging both direct and diverse promotional strategies to maintain a strong market presence. The report also details Dell's customer segmentation, including relationship and transactional customers, and how the company tailors its approach to meet their specific needs.
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Running Head: Marketing Planning
Marketing Planning
Dell Inc.
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Marketing Planning 1
Contents
Introduction......................................................................................................................................1
Market Focus...................................................................................................................................1
Marketing and Product Objective................................................................................................1
Smart Objectives..........................................................................................................................2
Segmentation, Targeting, Positioning and Differentiation..........................................................2
Marketing Program..........................................................................................................................4
Marketing Mix.............................................................................................................................4
Product.....................................................................................................................................4
Price.........................................................................................................................................4
Place.........................................................................................................................................5
Promotion................................................................................................................................5
Financial Projections...................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
Appendices......................................................................................................................................9
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Marketing Planning 2
Introduction
The objective of the paper is to guide the reader regarding the details about the company Dell.
The report evaluate details about the contemporary marketing strategies of the company Dell
along with the market and product focus. The report highlights the SMART objectives of the
company and target market segmentation of the company. Differentiation and positioning
strategies of the company are also defined in the report. Marketing programme of the company is
also defined in the paper that evaluates the marketing mix and financial data and projections as
well. Sales forecast of the company is implemented for three years showing the gross and
operating profit as well. Dell is a US multinational computer technology company that develops,
sell, repair the computer, related products, and services in business environment (Parvez, et. al.,
2018). The report details about the environmental and business activities of the company and
expected sales of the company Dell in next three years.
Market Focus
Marketing and Product Objective
Dell is a diversified IT company that helps the customers to provide global range of IT products
and services in the environment. The company Dell comes under the list of America’s most
appreciated companies (Fortune Magazine) that provide satisfying services to the customers. The
marketing objective of the company is to build customer base in the industry by providing them
efficient products as well as services. The objective of the organization is to develop the
marketing activities of the company in such a way that competition is automatically reduced in
the environment. The IT sector carries high degree of competition in the environment due to
which sales of the company Dell keeps on fluctuating (Cusumano, Yoffie, and Gawer 2019).
Therefore, the marketing objective of the company is to position the brand Dell in such a way
that the customer easily get to identify the company in the target market. The aim of the
company is to eliminate the extent of competition in the market by introducing the brand in a
positive way in the target market. Further, it should be noted that the company already make use
of effective marketing tactics in the business market to establish an identified position and grow.
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Marketing Planning 3
Further, it should be noted that the company believes in implementing the brick and mortar
strategy to promote the brand in the market. In response to which, the company initiate the
marketing activities accordingly (Lakshmi 2018). The business also makes use of customer level
niche marketing so as to attract the adequate customers present in the market. Dell focuses on
eliminating competition through effective marketing and collaboration strategies in the business
environment. Integrated marketing strategies are used by the organization to take benefit of other
factors present in the environment and simultaneously increase the brand recognition in the
market as well (Perona, Saccani, and Bacchetti 2017).
Product focus of the company Dell is to create such goods in the environment that helps the
customers to make use of hi-tech technology in the market. The company aims to provide
innovative and attractive products that help the customers to make use of multiple features with
facing any kind technical glitch as well. The company aims to provide effective software that
helps the customers to work on the laptops or computers for a long period of time. The product
focuses on the niche market so they do not aim to innovate the brand to maximum extent, instead
they aim to produce products that help the customers in implementing their basic actions
effectively (Jeevan, and Bhargav 2016).
Smart Objectives
SMART objectives refer to the objectives defined for the company that are specific, measurable,
achievable, relevant and time bound. These objectives of the business help them in targeting the
expected growth in the market. Further, the SMART objectives of the company Dell are
discussed below:
The company Dell intends to surge the total sales of the business by 10 % in the market and roll
back the queries of the customers 15% more than earlier ratio. This objective of the company is
to be achieved within the time span of three years. The business should also focus on converting
the operating loss into profit of 3 % in the market. It is expected that the new project will
significantly make the company profitable in the external environment.
Segmentation, Targeting, Positioning and Differentiation
Segmentation is the method of separating the target market into several pieces on the basis of
potential customers and their characteristics for the product as well. This process significantly
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Marketing Planning 4
helps the organization targeting the adequate type of group of people in the market effectively
increasing the sales as well. The company realizes the fact that they cannot target every customer
and please them (Noe, et. al., 2017). So, they aim to operate efficient segmentation strategies to
attract the right people in the environment. Below mentioned is the segmentation strategy of
Dell:
Demographic Segmentation: in the view of this segmentation, the business aims to target people
belonging to middle-income level both men and women. The company targets young people who
wish to buy laptop for studies and projects.
Geographic Segmentation: in the view of this segmentation, the business targets customers
present in US as well as Asian region. Dell is sold more in US because of low prices of the
products in that region.
Psychographic Segmentation: in the view of this segmentation, the business targets office people
more. They target people who have a work related lifestyle or have young children who require
gadgets (Gershon 2016).
Further, it should be noted that Dell has two classes of customers that are relationship customers
and transactional customers. Talking about relationship customers, it should be noted that these
are the corporations, educational institutes or government. These organizations require Dell
products in large quantity so as to serve it to the subordinates. These organizations also provide
large portion of profit to the company as it significantly plays the major role in increasing the
sales of the company. Major profitability of the company Dell is attained using long lasting
relationship with such people in the business environment. In response to which, the business has
also tailored a differential website to maintain their interest in interacting with the organization.
Premier Pages is the segment that helps the customers to attain differential services in the
environment. Secondly, transactional customers are the customer who focuses on price of the
product while purchasing Dell products in the environment. These are the basic customers who
purchase single products while looking at the cost, reliability, quality of service etc. (Weinstein,
and Winston 2016).
Talking about the positioning strategy of the company Dell, it should be noted that the business
aims to position the company in the eyes of customers in such a way that they are most
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Marketing Planning 5
successful IT company present in the market that deliver the best quality services. The company
aims to position the brand as highest quality along with service delivery company present in the
target market. Further, elaborating, the differentiation strategy Dell used is that they provide
efficient facilities to the customers in the business. The company attains the competitive
advantage by developing after sale serviceability feature for the customers. Prompt responses by
the end of customers help the organization to attract more and more customers in the
environment (Ottman 2017). The company targets niche customers present in the market, such
customers require regular services for the products so that interaction of the people of the
company with the customers helps the organization in differentiating the brand in the market.
Marketing Program
Marketing Mix
Product
Dell offer wide range of products to the customers in the IT industry that include desktop
computers, laptop, notebook computers etc. The company has also extended their selection by
adding the hardware products in their product segment. Along with such products, the business
also initiates support services in the market to increase the satisfaction of customer from the
product. Dell does not manufacture the parts of its final component but instead they focus on
tying up with several organizations to provide sub-part products to the customers in the business
environment (Su, Levina, and Ross 2016). Although dependency on third party for such products
acts as a threat for the company however, this strategy plays a significant role in initiating cost-
effectiveness and eliminating competition as well.
Price
Price refers to the amount of income paid by the customer in response to the product purchased
by them. It is the sum of values that the customers exchange for the benefit of using Dell product
in the environment. The company provide high quality products and services in the market at low
rates. The company appropriately fulfils the customers’ expectation from the product and low
prices of the products also increases their level of satisfaction in the market (Acharya, and Gupta
2018).
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Marketing Planning 6
Place
The place or distribution strategy of the company provides them differential advantage to grow.
Dell makes use of direct channelling strategy in the market to sell its products. Direct
channelling refers to the strategy under which business direct contacts the customers to serve
their products in the market. With the help of this type of strategy, the business gets to eliminate
the fee of middleman or distributor in the business. Resulting in which, products are available at
low cost in the market (Armstrong, et. al., 2018).
Promotion
Promotion strategy is the most important marketing strategy for the company Dell as it helps
them to draw the interest of the prospective people and increase level of sales. Dell makes use of
diverse promotional strategies in the environment like television advertisement, social media
marketing, ads in newspapers and radio etc. The company also make use of sponsorships in
professional sports so as to create an identified brand image of the business in the target
environment (Ryan 2016).
Financial Projections
Fiscal year ends in March. JPY in millions except per share data. 2017-03 2018-03 2019-03 2020-03 2021-03 2022-03
Revenue 12959000000. 20054000000. 25,053,000,000 28680929218 34417115061 43021393827
Gross profit 12,959,000,000 20,054,000,000 25,053,000,000 33099306716 46339029403 66264812046
Operating profit -3,252,000,000 -3,333,000,000 -191,000,000 139479304.1 132505338.9 136480499
Dell Technologies Inc
Considering the previous performance of the company Dell Inc., it should be noted that has
invested in explicit amount in general expense as well as research expenditure. The research
expenditure was conducted as the company was focusing to propose a new project for the
business, however the proposal has been completed and now the business is aiming to expand
sales by working on the proposal. Resulting to which, it can be seen that in next three years the
operating loss of the business is converted into operating profit (Ferrell, and Speh 2017). The
revenue of the business is also expected to increase due to development of the new project and
reduction in the expenses of the company. Thus, in this way the business Dell Inc. will become
profitable in the future market. It is assumed that the business has invested a major share of its
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Marketing Planning 7
revenue in research and development because they are proposing a new project in the
environment.
Conclusion
Thus considering the above mentioned facts and figures, it should be concluded that the paper
analysed the information about the product and marketing strategies of the company Dell. The
objectives of company are discussed in the paper along with the information about their target
customers and marketing strategies. Financial forecast for future three years has been conducted
so as to consider the future growth of the company.
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Marketing Planning 8
References
Acharya, A. and Gupta, M., 2018. Green Brand Personality: Its Relevance to the Green
Marketing Practices. In Driving Green Consumerism Through Strategic Sustainability
Marketing (pp. 155-168). IGI Global.
Armstrong, G.M., Kotler, P., Harker, M.J. and Brennan, R., 2018. Marketing: an introduction.
Pearson UK.
Cusumano, M.A., Yoffie, D.B. and Gawer, A., 2019. The Business of Platforms: Strategy in the
Age of Digital Competition, Innovation, and Power. HarperCollins Publishers.
Ferrell, O.C. and Speh, T.W., 2017. Marketing Strategy, Loose-Leaf Version. Cengage Learning.
Gershon, R.A., 2016. Digital media and innovation: Management and design strategies in
communication. Sage Publications.
Jeevan, P. and Bhargav, V., 2016. A Study on Green Packaging-A Case Study Approach With
Reference To Dell Inc. International Educational Scientific Research Journal [IESRJ], E-ISSN
No.
Lakshmi, S., 2018. Make To Order Strategy at Dell Corporation: A Case Study. Aweshkar
Research Journal, 25(2).
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Parvez, M., Ullah, N., Sabuj, M.A. and Islam, S., 2018. Profit Maximization of DELL Inc.
through Build-to-Order Supply Chain for Laptop Manufacturing. American Journal of Industrial
and Business Management, 8(06), p.1657.
Perona, M., Saccani, N. and Bacchetti, A., 2017. Research vs. practice on manufacturing firms’
servitization strategies: A gap analysis and research agenda. Systems, 5(1), p.19.
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Marketing Planning 9
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Su, N., Levina, N. and Ross, J.W., 2016. The long-tail strategy of IT outsourcing. MIT Sloan
Management Review, 57(2), p.81.
Weinstein, A. and Winston, W., 2016. Defining your market: winning strategies for high-tech,
industrial, and service firms. Routledge.
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Marketing Planning 10
Appendices
Fiscal year ends in March. JPY in millions except per share data.
2015-03 2016-03 2017-03 2018-03 2019-03 2020-03 2021-03 2022-03
Revenue 54,142,000,000 -6.0% 50,911,000,000 21.1% 61,642,000,000 27.6% 78,660,000,000 15.21% 90,621,000,000 14.48% 20.00% 25.00%
Gross profit 8,896,000,000 -5.7% 8,387,000,000 54.5% 12,959,000,000 54.7% 20,054,000,000 24.93% 25,053,000,000 32.12% 40.00% 43.00%
Operating profit -316,000,000 -62.7% -514,000,000 -532.7% -3,252,000,000 -2.5% -3,333,000,000 -94.27% -191,000,000 -173.03% -5.00% 3.00%
Working Note
Avg. Percentage
Dell Technologies Inc. Revenue Forecast Percent
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