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Dell:Targetting SMBs in India
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CASE ANALYSIS ON DELL IN INDIA TARGETING
SMBs
Dhwani Ojha Divyani Garg Pankhuri Singhal
What made Dell choose a different model of distribution when it decided to target
Indian SMBs
Technology
Education
Big Market Share
What is the present market-share of Dell in India?
Which strategy did Dell follow?How has this strategy helped Dell gain a competitive advantage –
Overall Cost
Leadership
Lowest Production Cost
Lowest Distribution Cost
Win more market Share
Customer Intimacy
Segmenting its Markets
Tailoring its Products for Target MarketSatisfying Unique Customer Needs
TIMELINE DELL
COMPUTERS :GLOBALIZED GROWTH
1968
1981
1984
1985
• Dr. Marcian E invents micro
processor•Revolutionizes by lighter weight and
greater speed
• IBM first to launch PC’s.
• Founder Michael S Dell
• Focused on Custom built PC’s and direct selling
strategies.• Designed Turbo
PC• Established
strong customer base & quality sales service.
INVENTION
EVOLUTION
DELL EMANATES
PRODUCT DVLPMNT
1987
1989
1990
1992
•1st subsidary in UK
• Low cost marketing. • Latest
Technology with
customization.• Introduction of
Notebook.
• Entered Developing countries• Targeted
SMB’s
GEOGRAPHIC EXPNSN
PRODUCT LINE
MARKET DVLPMNT
REAPED BENEFITS
• Enjoyed an increasing
trend in profit over the span
of 3 years.
1993
•Technological difficulties• Retailed Marketing
Mode• Over
forecasted Demand
DIPS
1994.. DIVERSIFICATION
• Growth in Server market.
1996.. DIFFERENTIATION
• Customization
• Direct Marketing• Quality Products
2008 REVIVE BACK• Focused on
developing countries
PlACE:•Dell tied with Tata croma in April 2008 to sail through their retail outlets.•it open its own retail outlets in Delhi, Coimbatore.Target
customersIntended
positioning
PRODUCT:•Desktop .•Servers, communication peripherals.•Dell and oracle alliance to provide common point of contact for all computing requirement.•Notebook PCs.
PRICE:•Dell cut down 6%-8% of distribution cots compared with other manufacturers by offering its products through company website and toll free number.
PROMOTION:•Dell started campaigning with the tag line “I Choose my Own path. I Choose Dell•Dell launched real life successful entrepreneurs for its brand campaigning.
DELL Marketing Mix in India
Dell product launches between 2008-12
2008
•The Studio line of compact and stylish consumer desktops
2009
•In Fiscal 2009, Dell added the XPStm ,Alienwaretm and E-Series commercial Latitude and Dell
Precision lines of notebook ,the 3G enabled Mini; a light, mobile
notebook.• The XPStm ,Alienwaretm ,
OptiPlextm , Inspirontm , Vostrotm , Dell Precisiontm lines of desktop.
2010•At CES 2010, Dell showcased a broad
range of new products including its first ultra-mobile gaming laptop
2011
• Dell is launching a range of Dell Latitude E-series models: the E5420,
E5520, E6220, E6420, E6520, and E6420 ATG notebooks and the XT3
convertible tablet.• Dell is also bringing several models of its Optiplex desktop line -- the 990,
790, and 390
2012• Dell launches XPS 14 Ultra book, XPS
15 Ultra book•Dell Launches New Cloud Products For
Citrix Users
2013•The new launch include the Dell Venue tablet line, the XPS 11 two-in-one, and
the XPS 15 laptop.
Indian PC Industry: Unmasking the Competition
Two major developments led to the growth of Indian PC industry.
Drastic Growth in the PC Market.
PC market Served three major suppliers
Local assemblersMultinational Indian Brands companies
1980
1997
21stCentury
Local As-semblers
44%
Indian Brands20%
MNC Brands36%
SHARE OF INDIAN PC Market - Mid - Year Review 2002-2003
Major MNC Players –
1. HP2. IBM3. COMPAQ4. LENOVO5. ACER6. DELL
Major Indian Brands –
1. HCL2. Zenith
REDUCTION IN TAXES
REDUCED PRICE GAP b/w
BRANDED PC AND
ASSEMBLED PC
POTENTIAL GROWTH OF PC
MANUFACTURERS
2005
CHANGE IN DEKSTOP TO NOTEBOOK
CENTRIC COMPUTER
2007
TAREGT MARKET
EDUCATION
BUSINESS EXECUTIVEHOUSEHOLD
SMB MARKET
THANK YOU
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