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  Submitted to : Prof. Rajendra Nargundkar M RKETING RESE RCH REPORT By, Group 6 (Sec   H) B.Ramasubramanian (2014PGP074) Tavadia Urvaksh Kersi Jasmine (2014PGP403) Ranvir Prasad (2014PGP295) Satyajeet Behra (IPM2011093) Rajan Prasad (IPM2011080) Pawan S M (2014PGP252) Manpreet Singh Dogra (2014PGP194)

Marketing Research Dell

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  • Submitted to :

    Prof. Rajendra Nargundkar

    MARKETING RESEARCH

    REPORT

    By,

    Group 6 (Sec H)

    B.Ramasubramanian (2014PGP074)

    Tavadia Urvaksh Kersi Jasmine (2014PGP403)

    Ranvir Prasad (2014PGP295)

    Satyajeet Behra (IPM2011093)

    Rajan Prasad (IPM2011080)

    Pawan S M (2014PGP252)

    Manpreet Singh Dogra (2014PGP194)

  • Executive Summary The laptop industry is highly competitive and driven by dynamic customer preferences. Thus arises

    the need for capturing the right information so as to have successful product launch and marketing

    strategy. This report provides analysis and recommendations based on the market research conducted

    on consumer preferences. The research was designed to target laptop users from all segments. The

    questionnaire captures information of the respondent such as brand recall, owned laptop details,

    budget, sources of information, factors affecting purchase and brand perceptions.

    Based on the responses, analyses such as chi square tests were carried out for testing if for

    relationships between gender of consumer and expectations from a brand. Chi square tests were also

    carried out to determine the relationship between the consumers budget and the key factors that

    influence the purchase of a laptop. Studies were also carried out to understand how effective Dells

    marketing and distribution strategies have been and where they can focus on in the future to be

    successful in the highly competitive Electronics industry.

    From the analyses, the report infers that, Dell should concentrate on its positioning by either

    continuing as it is, or upgrading to a premium segment by catering to their different set of needs.

  • Table of Contents Executive Summary ................................................................................................................... 2

    Introduction ............................................................................................................................... 4

    Need for market research ............................................................................................. 4

    The Laptop and Personal Computers Industry ............................................................. 5

    Laptops in the Indian Context ....................................................................................... 5

    About the company: Dell .............................................................................................. 6

    Marketing Strategy ....................................................................................................... 6

    Competition ................................................................................................................... 6

    Research Objectives .................................................................................................................. 7

    Research Methodology ............................................................................................................. 7

    Questionnaire Design .................................................................................................... 8

    Analysis ...................................................................................................................................... 9

    Brand Recall ................................................................................................................. 15

    Laptops owned ............................................................................................................ 15

    Desired Screen Size ...................................................................................................... 16

    Findings .................................................................................................................................... 16

    Limitations ............................................................................................................................... 17

    Appendix .................................................................................................................................. 18

    Questionnaire .............................................................................................................. 18

  • Introduction

    Need for market research

    The consumer electronics industry is a fast paced industry with dynamic consumer preferences.

    Laptops incur high investments both for the manufacturer as well as the customer. This very reason

    calls for a good understanding about the requirements and factors that affect the purchase of laptops.

    In order to analyse the costs and benefits of the marketing research we must look at the tangible

    aspects such as

    Demand volume

    Research and development

    New product development

    Advertising expenditures

    Distribution channels

    Laptops have a life of about 24 to 36 months (2 to 2.5 years) and an even shorter shelf life of about 1

    year in the market. Thus the investment in the new technologies should be justified based on

    consumer responses. Investing in the right technologies on a priority basis can help in timely releases.

    The cost of not having information can be pretty high. Suppose that consumers expect more features

    and faster performances from their laptops. Now it the next laptop brand XYZ comes up with is an

    ordinary laptop with 2GHz RAM and only 500GB Hard Drive at a competitive price, it is not likely to

    succeed in the market despite its attractive because it doesnt satisfy the customers anymore. On the

    other hand, if brand XYZ , known for economical laptops, comes up with very high end laptops but

    priced considerably higher than its competitors, it is again destined for failure because the customers

    are not ready or do not require such cutting edge technology yet. They are not yet willing to pay for

    it. Thus, each component that goes into the laptop is a cost to the company and should be fit in the

    laptop only if it has a perceived value for the customer.

    Also, the marketing strategies should account for the sources of information that customers consider

    more important. Channels chosen to communicate the features and to advertise about the laptops

    also incur cost. If the wrong channel is exploited more, the fund allocation turns out to be highly

    inefficient.

    Should the manufacturer choose only online stores? Or are retail stores and manufacturer outlets the

    right way? Maintaining distribution channels is also an important aspect for manufacturers.

    To summarise, the cost of not having information comprise

    Poor demand forecast

    Product failure

    Over doing innovation

    Wasteful advertising

    Wrong distribution channels

    Thus it is helpful to conduct a market research of this kind which entails minimal expenditure. It helps

    the company achieve the above mentioned research objectives.

  • The Laptop and Personal Computers Industry

    There is fierce competition between the top manufacturers in the personal computer industry. All of

    which are fighting to produce a low cost, powerful machine with the most efficient operating system.

    Firms specialize in different areas in order to compete amongst their rivals. Some focus on innovation

    and attempt to bring the newest technology to their customers first. Nevertheless, others may focus

    on their distribution channel and services throughout their firm. However, one of the fiercest areas is

    the price competition throughout the industry. As the PC has increasingly become a commodity in a

    household, the fight to keep costs low while bringing the best product to the market has become a

    never ending battle. One major factor in determining the quality of a personal computer is the

    microprocessor and application systems installed. As a result, there is a direct correlation between the

    firms profitability and the profitability of the firms suppliers.

    Main manufacturers namely DELL, IBM, HP, Acer and Apple are in competition to produce the least

    expensive and most efficient machine. Japanese companies such as Fujitsu, Toshiba, Sony and NEC

    also have large market shares. DELL is focusing on distribution channel and high quality service while

    others such IBM and Apple focus more on innovation. All these create differentiation to some extent.

    Low-cost production at DELL contributes its positive growth rate, while other major manufacturers

    are experiencing negative growth rates.

    The threat of new entrants in the personal computer industry is very weak. Currently the market is

    dominated by five major competitors who have nearly the entire market share; this will likely

    discourage any potential new companies from entering the market. A huge barrier to entry is also that

    the market requires significant investments to be made in research and development to continually

    develop innovative products as well as large fixed start-up costs for manufacturing and employees and

    customer service.

    Laptops in the Indian Context

    Changing work style and increasing need for 24/7 access to information is fuelling the growth of India

    Laptop market. Personal Desktop and Laptops have been competing since the evolution of portable

    personal computers. However, Laptops are preferred due to the convenience and portability factor

    associated with them.

    According to 6Wresearch, India Laptop market reached 4.71 Million shipments for the year ending

    June-2014. Hewlett Packard endured its market leadership backed by its government tie-ups. Lenovo

    and Dell registered 2nd and 3rd position in the India Laptop market.

    Growth of India Laptop market has experienced a volatile trend over the last few quarters. However,

    slow growth of the India Laptop market was revived after the completion of various pending

    government deals in Uttar Pradesh and Tamil Nadu.

    Reduction in prices and increasing consumer awareness is fuelling the demand for the Indian Laptop

    market. Apart from the procurement cost, demand is also driven by increasing number of new

    professions across the corporate and household segment. Additionally, the demand for Laptops in

    India is further expected to rise during festive seasons.

  • About the company: Dell

    Listen. Learn. Deliver. Thats what were about.

    Dell Incorporated is an American privately owned multinational computer technology - company

    based in United States that develops, sells, repairs and supports computers and related products and

    services. Dell sells personal computers, servers, data storage devices, network switches, software,

    computer peripherals, HDTVs, cameras, printers, MP3 players and also electronics built by other

    manufacturers.

    Mission Statement

    To be the most successful computer company in the world at delivering the best customer

    experience in markets we serve.

    Vision Statement

    It is the way we interpret the world around us --our customers needs, the future of technology,

    and the global business climate

    Marketing Strategy

    Dells marketing strategy is defined by its direct model approach to selling, which is in turn dominated

    by the companys intent to generate as many sales as possible on the Internet. Dell's marketing

    strategy sees the Internet as the purest and most efficient form of the direct model for sales, service,

    and support, as well as the most efficient means of customer communication both presently and in

    the future. Currently the company receives more than 2.6 million visits each week to its more than 80

    country-specific sites. This resulted in more than $40 million in revenue per week being generated by

    the online marketing of Dell.

    The company touts its site as allowing existing and potential customers to access information

    regarding its products, configure computers to the customers liking, and then make the purchase. Dell

    sees this process as the most efficient method of selling because it allows the consumer to guide the

    process. Individuals who are making their first computer purchase are unlikely to have access to the

    Internet or the navigational expertise to find Dells site.

    The marketing model of Dell Computers, however, does not differentiate between types of customers,

    and instead treats each potential customer as if they have equal technical knowledge. Dells Direct

    Method provides two distinct advantages:

    1. Reducing marketing and sales cost by eliminating mark-ups of distributors and retailers

    2. Building to order reduced inventory costs and risks of retaining inventories.

    Dells Direct Model is the main reason why it has achieved its stellar status in business today. This

    strategic model enables Dell to interact with customers directly providing them with fast, reasonably-

    priced and friendly means of production and distribution.

    Competition

    Dell's major competitors include Hewlett-Packard (HP), Acer, Fujitsu, Toshiba, Gateway, Sony, Asus,

    Lenovo, IBM, MSI, Samsung and Apple. Dell and its subsidiary, Alienware, compete in the enthusiast

    market against AVADirect, Falcon Northwest, VoodooPC (a subsidiary of HP), and other

  • manufacturers. In the second quarter of 2006, Dell had between 18% and 19% share of the worldwide

    personal computer market, compared to HP with roughly 15%. In late 2006, Dell lost its lead in the PC-

    business to Hewlett-Packard. Both Gartner and IDC estimated that in 2006, HP shipped more units.

    Research Objectives To study consumers expectations and identify the key factors that influence the purchase of laptops

    Accordingly recommending an optimal marketing strategy for Dell

    Aspects to consider for new product development

    Research Methodology

    Research Design: Descriptive Research (Cross-sectional)

    The research to be conducted aims at providing insights into what a consumer looks for in a laptop

    and to identify the key factors that consumers generally use to purchase a laptop. The exploratory

    studies helps in suggesting modifications to the existing products.

    A primary research is conducted to collect data from the consumers through questionnaires and

    discussions. The data collection methods used are as follows:

    Data Collection Methods

    Since the research aims at providing insights and identifying the key factors that influence the

    purchase of a laptop, data collection methods aimed at reaching a broader population easily while

    also being cost effective. The type of data collection method used was also decided while keeping in

    mind the sampling composition. Thus the following methods were used to collect data:

    Internet Surveys

    Personal Interviews

    Internet Surveys were majorly used in order to collect the required data. This helped in reaching to a

    broader population more easily by floating forms on the internet. The survey forms were also emailed

    to certain target segments to obtain representation of various segments of the market. Individual

    personal interviews were also conducted which helped lasted for 15-20 minutes. These structured

    interviews helped understand the attitudes and feelings of the respondents on various factors that

    influence the purchasing of a laptop.

    Sampling Distribution

    Since the objective of the market research was to study the perception of customers about laptops,

    this research targets the owners and users of laptops.

    The research was not targeted intentionally towards any particular group of respondents. The survey

    form was floated using direct mail as well as social networking sites. Thus, the respondents were not

    restricted to any geography or occupation.

    Since the research was conducted on the institute campus, majority of the respondents happen to be

    students and young working professionals.

  • Sample Size:

    In order to calculate the sample size,

    Range = (7-1)=6 for a seven point scale. Therefore standard deviation = 6/6 = 1

    Assuming an acceptable error = 0.02 and a confidence interval of 95%, Z= 1.96

    We calculate sample size(n) = (Z*s/e) = 100 (approx.)

    We have taken a buffer of 9 extra responses to buffer for any invalid responses. In any case the extra

    responses should only increase the confidence interval

    Questionnaire Design

    In order to collect data from laptop users, a simple survey questionnaire was created. The

    questionnaire was designed to have the following characteristics:

    Very easily understandable

    We understand not many people, who fill in the survey, would be well acquainted with jargons

    of the marketing world or minute technical details. Thus our questions are designed to be

    lucid and self-explanatory

    No ambiguity

    For particular questions there could be multiple possible answers while for some questions

    only one answer can be entered. The ranges of age or budget are mutually exclusive and hence

    avoid any chance of ambiguity

    Other option whenever required

    There is a good chance that a respondent has an answer which is not one of the options. In

    such a case he has the option of writing down his own answer

    Easy and quick to answer

    The questionnaire was deliberately kept short so that the respondent does not experience

    fatigue. All questions would be answerable unlike some other surveys which forcefully ask the

    respondent to compare 4 brands that he/she has not even used

    Optional anonymity of respondent

    At the end of the survey, we capture basic demographics of the individual. The name is

    optional to fill. One may choose to provide or hide ones identity

    The questionnaire was designed in parts to capture different aspect of the consumers preferences.

    Brand Recall

    The first question has no options and gauges which is the first name that comes to ones mind

    when it comes to laptops

    Currently owned laptop details

    Which brand do you currently own? Are you satisfied with it?

  • Preferences for product, information channels and distribution channels

    Budget preference and laptop specifications along with intended use are captured. Identify

    channels that most influence their information or purchase decision. The source of purchase

    whether online or brick & mortar store, whether multi-brand retail or manufacturer outlet?

    Factors affecting purchase

    Through 7 point ordinal scales, the research captures the importance of different aspects in

    choosing your next laptop

    Brand Perception

    In the laptop and PC industry, brand plays an important role. But what exactly does the

    consumer understand when he hears branded laptops? This is captured in this segment

    Demographics

    In order to understand the type of respondent, basic information such as age, gender and

    occupation is captured

    Analysis

    Current Satisfaction Level (Boxplot Chart)

    A study of the current satisfaction levels of consumers with respect to the brands they own is shown

    in the following Boxplot chart.

    The following points can be concluded from the above Boxplot chart:

    Dell owners are currently satisfied with a majority of them rating their laptops above average

    level of satisfaction.

    Apple have the highest level of satisfaction level currently with very low variability in the

    ratings.

    Owners of Lenovo laptops seem to have a very varied levels of satisfaction with several

    outliers in the data collected.

  • Compaq and Toshiba owners do not seem to be satisfied with their laptops and may be

    potential buyers as the majority of these owners have rated them less than average

    Tests can be carried out to check if gender impacts the expectations of a consumer with respect to

    Features, specifications, design and style.

    Test for normality

    The data is tested for normality as the dependent variables have to be approximately normally

    distributed for carrying out t-test and ANOVA test. Thus the Shapiro-Wilk test was carried out to find

    if the dependent variable is normally distributed. The tests show that the variables are not normally

    distributed.

    Tests of Normality (Before Transforming)

    Gender Kolmogorov-Smirnova Shapiro-Wilk

    Statistic df Sig. Statistic df Sig.

    Features Female .310 35 .000 .733 35 .000

    Male .343 72 .000 .511 72 .000

    a. Lilliefors Significance Correction

    The data collected failed the test for normality even after transforming it using Log10 scale as shown

    below.

    Tests of Normality (After Transforming)

    Gender Kolmogorov-Smirnovaa Shapiro-Wilk

    Statistic df Sig. Statistic df Sig.

    Feature(Norm)

    Female .291 35 .000 .692 35 .000

    Male .433 72 .000 .406 72 .000

    a. Lilliefors Significance Correction

    Therefore, non - parametric test is used to study the data where the general assumption of a normal

    distribution is not a requisite condition.

    Chi-square Test

  • The Chi-square test is used to study the significance of Gender and the expectations in a brand

    Hypothesis Test 1

    H0 : Gender is not related to Better Quality in a Brand

    H1 : Gender is related to Better Quality in a Brand

    Crosstab

    Brand - Better Quality Total

    Strongly

    Disagree

    Disagree Somewhat

    Disagree

    Neutral Somewh

    at Agree

    Agree Strongly

    Agree

    Female % within Gender

    2.9% 2.9% 8.6%

    37.1% 48.6% 100.0%

    % of Total

    0.9% 0.9% 2.8%

    12.1% 15.9% 32.7%

    Male % within Gender 2.8% 4.2%

    2.8% 1.4% 18.1% 70.8% 100.0%

    % of Total 1.9% 2.8%

    1.9% 0.9% 12.1% 47.7% 67.3%

    Total % within Gender 1.9% 3.7% 0.9% 4.7% 0.9% 24.3% 63.6% 100.0%

    % of Total 1.9% 3.7% 0.9% 4.7% 0.9% 24.3% 63.6% 100.0%

    Chi-Square Tests

    Value df Asymp. Sig. (2-sided)

    Pearson Chi-Square 10.683a 6 .099

    Likelihood Ratio 11.521 6 .074

    N of Valid Cases 107

    a. 10 cells (71.4%) have expected count less than 5. The minimum expected count is .33.

    Result: The test shows that 2 = 10.683 and p>0.05. Hence the null hypothesis is accepted. Gender is

    not related to expecting better quality in a brand. Hypothesis Test 2

    H0 : Gender is not related to expecting innovative products in a Brand

    H1 : Gender is related to expecting innovative products in a Brand

    Crosstab

    Brand - Innovative Products Total

    Strongly

    Disagree

    Disagre

    e

    Somewhat

    Disagree

    Neutral Somewhat

    Agree

    Agree Strongly

    Agree

    Female % within Gender

    2.9% 14.3% 14.3% 17.1% 40.0% 11.4% 100.0%

    % of Total

    0.9% 4.7% 4.7% 5.6% 13.1% 3.7% 32.7%

    Male % within Gender 1.4% 5.6% 6.9% 6.9% 26.4% 23.6% 29.2% 100.0%

    % of Total 0.9% 3.7% 4.7% 4.7% 17.8% 15.9% 19.6% 67.3%

    Total % within Gender 0.9% 4.7% 9.3% 9.3% 23.4% 29.0% 23.4% 100.0%

    % of Total 0.9% 4.7% 9.3% 9.3% 23.4% 29.0% 23.4% 100.0%

  • Chi-Square Tests

    Value df Asymp. Sig. (2-sided)

    Pearson Chi-Square 9.786a 6 .134

    Likelihood Ratio 10.319 6 .112

    N of Valid Cases 107

    a. 6 cells (42.9%) have expected count less than 5. The minimum expected count is

    .33.

    Result: The test shows that 2 = 9.786 and p>0.05. Hence the null hypothesis is accepted. Gender is

    not related to expecting innovative products in a brand.

    Hypothesis Test 3

    H0 : Gender is not related to expecting better prices in a Brand

    H1 : Gender is related to expecting better prices in a Brand

    Crosstab

    Brand - Better Prices Total

    Strongly

    Disagree

    Disagre

    e

    Somewhat

    Disagree

    Neutral Somewhat

    Agree

    Agree Strongly

    Agree

    Female

    % within

    Gender 2.9%

    11.4% 25.7% 25.7% 22.9% 11.4% 100.0%

    % of Total 0.9%

    3.7% 8.4% 8.4% 7.5% 3.7% 32.7%

    Male

    % within

    Gender 4.2% 6.9% 4.2% 11.1% 18.1% 31.9% 23.6% 100.0%

    % of Total 2.8% 4.7% 2.8% 7.5% 12.1% 21.5% 15.9% 67.3%

    Total

    % within

    Gender 3.7% 4.7% 6.5% 15.9% 20.6% 29.0% 19.6% 100.0%

    % of Total 3.7% 4.7% 6.5% 15.9% 20.6% 29.0% 19.6% 100.0%

    Chi-Square Tests

    Value df Asymp. Sig. (2-sided)

    Pearson Chi-Square 10.722a 6 .097

    Likelihood Ratio 12.083 6 .060

    N of Valid Cases 107

    a. 6 cells (42.9%) have expected count less than 5. The minimum expected count is 1.31.

  • Result: The test shows that 2 = 10.722 and p>0.05. Hence the null hypothesis is accepted. Thus

    Gender is not related to better prices in a brand.

    Tests to indicate the relationship between the budget a consumer is willing to spend and what he/she

    identifies is a key factor for purchasing a laptop

    Hypothesis Test 4

    H0 : Budget is not related to the looks and design of a laptop

    H1 : Budget is related to the looks and design of a laptop

    Chi-Square Tests

    Value df Asymp. Sig. (2-sided)

    Pearson Chi-Square 29.643a 18 .041

    Likelihood Ratio 30.046 18 .037

    N of Valid Cases 107

    a. 19 cells (67.9%) have expected count less than 5. The minimum expected count

    is .50.

    Result: The test shows that 2 = 29.643 and p 30,000 up to

    40,000

    % within Budget 5.7% 5.7% 14.3% 22.9% 22.9% 20.0% 8.6% 100.0%

    % of Total 1.9% 1.9% 4.7% 7.5% 7.5% 6.5% 2.8% 32.7%

    > 40,000 up to

    50,000

    % within Budget 3.1%

    6.2% 12.5% 37.5% 34.4% 6.2% 100.0%

    % of Total 0.9%

    1.9% 3.7% 11.2% 10.3% 1.9% 29.9%

    > 50,000 % within Budget 9.7% 6.5% 3.2% 12.9% 12.9% 22.6% 32.3% 100.0%

    % of Total 2.8% 1.9% 0.9% 3.7% 3.7% 6.5% 9.3% 29.0%

    Up to 30,000 % within Budget

    22.2%

    22.2% 22.2% 33.3%

    100.0%

    % of Total

    1.9%

    1.9% 1.9% 2.8%

    8.4%

    Total % within Budget 5.6% 5.6% 7.5% 16.8% 24.3% 26.2% 14.0% 100.0%

    % of Total 5.6% 5.6% 7.5% 16.8% 24.3% 26.2% 14.0% 100.0%

  • Hypothesis Test 5

    H0 : Budget is not related to the screen size of a laptop

    H1 : Budget is related to the screen size of a laptop

    Screen Size Preference Total

    < 13 13 " 14 " 15 "

    Up to 30,000 % within Budget 11.1% 44.4% 11.1% 33.3% 100.0%

    % of Total 0.9% 3.7% 0.9% 2.8% 8.3%

    > 30,000 up to 40,000 % within Budget 51.4% 48.6% 100.0%

    % of Total 16.7% 15.7% 32.4%

    > 40,000 up to 50,000 % within Budget 3.1% 12.5% 28.1% 56.2% 100.0%

    % of Total 0.9% 3.7% 8.3% 16.7% 29.6%

    > 50,000 % within Budget 9.7% 19.4% 25.8% 45.2% 100.0%

    % of Total 2.8% 5.6% 7.4% 13.0% 28.7%

    Total % within Budget 0.9% 4.6% 13.0% 33.3% 48.1% 100.0%

    % of Total 0.9% 4.6% 13.0% 33.3% 48.1% 100.0%

    Chi-Square Tests

    Value df Asymp. Sig. (2-

    sided)

    Pearson Chi-Square 131.155a 16 .000

    Likelihood Ratio 37.287 16 .002

    N of Valid Cases 108

    a. 19 cells (76.0%) have expected count less than 5. The minimum

    expected count is .01.

    Result: The test shows that 2 = 131.155 and p

  • Brand Recall The below chart shows that 42% of the respondents recalled Dell as the first brand that came to their

    minds when they think of laptops. This shows a good level of awareness in the market

    Laptops owned The below chart shows the brands of laptops currently owned by the respondents. This also gives an

    idea of the market share (by volume) of each brand within our sample.

    94.6%

    78.4%

    13.5%

    13.5%

    37.8%

    0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

    Surf & Mails

    Music & Entertainment

    Gaming

    Heavy Graphics

    Professional Softwares

    Percentage of Dell Users

    Pu

    rpo

    seLaptop Utility of Dell Users

    16.2%

    59.5%

    27.0%

    86.5%

    45.9%

    0.0%

    50.0%

    100.0%

    TV Online Ads Print Friends Discussion Forums

    Information Channels for respondents who recalled Dell

    42%

    25%

    14%

    11%

    8%

    Brand Recall

    Dell

    Apple

    HP

    Lenovo

    Others

  • Desired Screen Size As is the trend in the market, majority of the respondents preferred a 15 screen rather than a smaller

    or compact size.

    Findings Dell currently has a good brand recall and has the highest market share by volume. Thus Dells

    advertising and other marketing practices have been successful in generating a good brand

    awareness.

    The current owners of Dell laptops have also indicated an above average satisfaction level.

    Dell can utilise the results of the Boxplot chart (which indicates that Apple users have the

    maximum satisfaction level in the market)

    Using Chi square tests it was observed that gender of the consumer did not have a relationship

    with what the consumer expects out of a brand.

    The Chi square tests also showed that the consumers are willing to spend more (higher budget

    in next purchase) for a better look and design. This indicates that Dell needs to improve on its

    looks and designs if it is to enter the premium segments of the market. This finding is in line

    with Apples current strategy of charging more for providing the best design (sleekness) and

    looks in its products.

    The screen size of the laptop is also seen to have a relationship with the budget the consumers

    are willing to spend on their laptop

    Based on the captured utilities of the laptops of Dell users, it is seen that, music and

    entertainment is one of the major purposes of using the laptop. Also, Dell users do not

    perceive it as a laptop for gaming or graphic designing using heavy graphics

    Based on the responses of those who recalled Dell for a brand to be associated with laptops,

    their major source of information has been through friends and online ads. The analysis also

    shows that Dell need not concentrate on TV and Print ads considering the heavy cost involved

    and lower results.

    36%

    21%

    20% 6%

    6%

    4%

    4%

    2%

    2%

    2%

    9%

    Current Market Share of Sample (by Volume)Dell

    HP

    Lenovo

    Acer

    Apple

    Sony

    Asus

    Toshiba

    Compaq

    Samsung

    49%

    34%

    12%5%Desired Screen Size

    15 "

    14 "

    13 "

    < 13 "

  • Recommendations Dell should utilise research results of such kind which show the high awareness and

    satisfaction level to communicate the trust that users have in Dell. This could help improve

    the brand image

    Since there was no correlation between gender of respondents and their expectations from

    laptops, Dell need not concentrate on segmenting their target based on gender. Female users

    too, have very similar utility and expectations of laptops.

    Dell should to improve on its looks and designs in order to enter the premium segments. As

    customers are willing to pay more for better style, Dell can marginally improve its positioning.

    Dell must differentiate the price for a laptop with 15 versus that of a 13 laptop. High end,

    expensive laptops would much rather have 15 laptops whereas low end segment can have

    13 screens.

    Going ahead, Dell has two options for positioning:

    o Go ahead with the current perception that Dell laptops are used for general purpose

    such as surfing the internet, music and entertainment and not for gaming or heavy

    graphics applications. OR

    o Make conscious efforts to change consumer perception and position it well in the

    gaming and graphics segments too

    Dell need not spend on costly media such as television advertisements and print media.

    Majority of information flow and influence on purchase of laptops comes from online ads and

    word of mouth

    Dell should form a community or Cult in order to strengthen its market position and maintain its

    leadership in the industry

    Limitations The following are some of the limitations of our attempt to do a market research about the preference

    of brands of laptop by different people.

    We tried to cover as many people as possible but due to various factors approximately 69%

    of our respondents were students so we believe our observations may be skewed.

    Our survey targeted only those who already owned laptops. It excluded those who are

    potential new buyers. Thus our sample was non-random.

    Since our survey targeted a very small segment of population, we, therefore cannot generalize

    our findings and conclusions for the whole industry

    There might have been some cases of respondents filling up the survey on a random basis,

    thus leading to erratic results

    Few questions could have caused bias by forcing respondents to choose between certain

    alternatives corresponding to their personal views on a particular subject.

    We might have missed out on including some of the attributes of a laptop which the

    respondents otherwise consider as important.

  • Appendix

    Questionnaire