Overview Low cost player in global PC

Industry

Direct marketing

In 2001, revenue generated from North America - US$18 billion

Europe – US$5.59 Asia – US$1.80

Market development as a strategy was adopted

Standardized Business Model adopted to enter new markets

Increasing demand was handled by opening new plants

Just in time Inventory management

Customer service centre -Telephone and online orders and technical assistance

In Asia online orders rose from 20% to 40%

Market Development

Developing a new market for the existing products and services of a company

Market is developed on a geographic and demographic level

Expand into new market segments

Test marketing is extremely critical

Drivers of Market

development strategy

Saturation In Existing Markets

Availability of new ,

inexpensive, reliable

distribution channels – Coke

in Vietnam

Successful at what a

company does-Campbell Soup

Availability of surplus

resources – Sime Derby

Basic Industry going global –

Mittal Steel

High profit margins in new

markets – Jeans in Saudi

Availability of untapped markets

-J&J for Ageing people

Market Characteristics

-Market Attractive?-Can the business be

adapted?-Evaluation of uncertainties

Standardization Customization

Dell Corporation

Key Considerations before going for Market Development

Dell’s Strategy • Plants nearer to the

new markets• Uniform supply

chain processes across all locations

• Same products used• Direct Marketing

All was not Well• Dell was perceived

differently in Asian Markets

• Direct online marketing was a failure

GL-OCAL???• New product

development to cater to new markets

• Opening of retail outlets

Market Development & Dell

• Ikea in America

• Whirlpool in Japan

• Walmart in Germany, Japan

• McDonalds initially in India

• United Airlines entry into China

• Tata and Bajaj exporting automobiles

• Polo Ralph Lauren’s expansion into Japan through acquisitions

• General Motors selling more cars outside USA than home

Abhiram Bajpai

Balaji Ramamurthy

Bharghavi Naredla

Chhavi Tyagi

Pritam Muppuri

Group - 2