Dell Technologies
Roundrock, Texas
1-800-433-2392
February 22, 2022
Dell Technologies
Executive Summary
Company Profile
Market Segmentation & Targeting
Situation and Company Analysis
Ethics and Social Responsibility
Marketing Information and Research
Customer Decision-Making Profile
Positioning and Differentiation
Branding
Marketing Mix (4Ps)
Product Strategy
Pricing Strategy
Place: Distribution Strategy
Promotion: Integrated Marketing Communications Strategy
Budget
Action Plan
Risk Factors
Attributions
Executive Summary
Dell Technologies offers updated hardware, software, and services that provide data protection, data storage, and networking from any device and location. We are no longer associated only with business PCs, We now offer software with AI intelligence. Our company focuses on parents, college students, Institutions, small businesses, large corporations and everything in between. A few advantages our company has over competition, is low operating costs, and the ability to incorporate every aspect of the internet into its products and services.
Using the 4Ps of marketing, Dell Technologies plans to produce high quality products at competitive prices by creating more distribution channels and marketing our new brand with transparency.
To the “tech savvy” and the “not so savvy” consumer, Dell Technologies is the only computer company that can deliver customizable PCs and software. Because we believe each person deserves technology as unique as they are.
Company Profile
● Company Name: Dell Technologies
● Industry: Computers, peripherals, electronic equipment, and networking
● Headquarters: 1 Dell Way, Round Rock Texas 78664
● Year Founded: 1016, Michael Dell
● Number of Employees: 157,000 employees
● Annual Revenue: 91.3 billion
● Major Products and Services: Cloud operations, Converged and hyper-converged Infrastructure, Data Protection and storage, Midmarket products, Laptops, pcs, monitors, servers,
● Target Customers: Professional, executive and tech savvy people of all ages
● Distribution Channels: Tech Data USA Distribution, Tech Data Central America Distribution
● Key Competitors: Lenovo Group, HP Inc., Hewlett-Packard Enterprise, IBM, Apple
● Link to Website: https://www.delltechnologies.com/en-us/index.htm
● Link to Yahoo! Finance information page : https://finance.yahoo.com/quote/DELL/
Dell technologies helps customers who need computer hardware and software by providing companies with PCs and accompanying hardware for their employees with updated software that provides data protection, data storage, and networking.
Potential customers are no longer only the tech savvy. Dell Technologies is branching out to educational institutions, as well as the “stay at home” or tele-working parents.
The segments within this particular market are parents, college students, schools and Institutions, small businesses, and large corporations.
The American Red Cross needs real time access to databases, vendors, and hospitals around the country, which is why they collaborated with Dell Technologies. With Dell EMC and VMware software, we are helping transport blood for the American Red Cross. Our company has supplied Ford with personalized computers, monitors, and software to fit their company needs. Additionally, we recently ventured out and collaborated with schools all across the country, providing hardware, software, and IT to help with professional learning services that are necessary for transitioning into distance learning.
Dell Technologies plans to focus on helping businesses around the world using Cloud technology to help students and employees reach the information needed, no matter what device or location is used. Having access anywhere and anytime to files and important information is critical to functioning businesses. Being able to back up files, share files, collaborate with other businesses around the world using computers, phones, and tablets is what businesses are looking for. Not just for small and large businesses, but the individual person as well.
Situation and Company Analysis
Three economic factors play a role in consumers purchasing Dell products and services. These factors are currency rates, the cost of materials, and macroeconomic stability in different countries.
The current economy has been teetering with recession and recovery throughout the current year. People have lost jobs all over the world, and are having trouble paying for the necessities of life. On one hand, computers and special software are a luxury the individual person cannot afford. On the other hand, with tele working and distance learning, having a reliable computer and the software to back up and protect files has become a necessity. Dell Technologies has been working tirelessly to make products affordable and available to all with competitive pricing and payment plans.
With the economy as it is, Dell Technologies has made the decision to re-evaluated its employees and be sure to have the correct staff in the area most needed at this time.
Consumers can be confident in their purchase as Dell Technologies tailors the products specifically to fit the needs and wants of each customer.
A few technological trends that affect the industry are, Artificial Intelligence (AI), Machine Learning, Virtual Reality, and Cyber Security. While these trends may not be new ideas, the technology behind them are ever changing. Dell Technologies is committed to helping its customers with these changing needs and continues to stay competitive with the trends and new target markets.
With the changing economy, comes a change in the skill set desired by employers. The tech industry is in need of thousands more staff with the technical background to fulfill these new positions. College students with a background in engineering might most likely be the new target market the industry will focus on.
Dell Technologies currently employs 157,000 employees in 108 countries across the world with yearly revenue of $92.5 billion in 2019. Dell Technologies has approximately 10 major competitors. The key competitors are listed below.
Company
Revenue ( Billions)
Presence Worldwide
Employees
Samsung
188
80 countries
300,000
Acer
78
70 countries
8,000
IBM
77
170countries
352,000
HP
58.8
170countries
56,000
Lenovo
51
60 countries
54,000
· Hewlett-Packard (HP) is an IT company, which focuses on computers, phones, printers, and servers. While the products and services are similar, if not the same, HP has a slight advantage over Dell when it comes to the environmental footprint. Recently, HP has focused on making technology more sustainable by streamlining the prototyping process, reducing materials needed to manufacture products, and reducing waste by converting from physical to digital inventories.
· International Business Machines Corporation (IBM). IBM sells computer hardware, middleware, and software. IBM has continually shifted business strategies by going to more profitable markets, such as, social networks.
Lenovo is a Chinese founded, multinational company, which sells computers, electronic storage, workstations and is known for their android smart phones. Lenovo focuses on the lightweight, sleek look of their products and not just the performance.
· Similar to Lenovo, Acer prides themselves on the sleek, modern look of their computers, laptops, and tablets, although the company does not focus as much on product quality.
· Samsung is a known brand name across the world, selling technology and electronics. It has a lead ahead of Dell Technologies, bringing in twice as much revenue. This is mostly because Samsung is a conglomerate.
· What is your advantage over competitors? Dell Technologies has a competitive advantage over its competitors by working closely with its customers. This allows the company to keep track of trends and adjust to customers’ needs more quickly.
Dell Technologies closely monitors laws and regulations within the US, as well as the other countries it does business with. It is important for the company to be able to bend or “go with the flow” of changing regulations and taxes, in order to be successful. We hold licenses to be able to sell domestically; as well as licenses to export to other countries.
v Internal Strengths
· One of the best known brands in the world
· Dell is enhancing and broadening the fundamental competitive advantages of the direct model by increasingly applying the efficiencies of the Internet to its entire business.
· Dell has remarkably low operating cost relative to revenue because it cuts out the retailer and supplies directly to the customers.
· The suppliers make Dell’s components and Dell assembles the computers using relatively cheap labor. Dell has total command of the supply chain.
· Direct to customer business model, which uses the latest technology.
v Internal Weaknesses
· One of the best known brands in the world
· Dell is enhancing and broadening the fundamental competitive advantages of the direct model by increasingly applying the efficiencies of the Internet to its entire business.
· Dell has remarkably low operating cost relative to revenue because it cuts out the retailer and supplies directly to the customers.
· The suppliers make Dell’s components and Dell assembles the computers using relatively cheap labor. Dell has total command of the supply chain.
· Direct to customer business model, which uses the latest technology.
v External Opportunities
· Diversification strategy by introducing many new products to its range.
· Personal computers are becoming a necessity. Tele working and homeschooling brings an opportunity for Dell to broaden their target market to parents and teachers.
· Dell has the opportunity to collaborate with educational institutions, whose need for
new software has increased.
· The online stores make it more convenient for customers to shop online than to actually drive and purchase at a physical store.
v External Threats
· Dell’s Direct Model attracts customers because it saves cost. Since other companies are able to offer computers at low costs, this could threaten Dell’s price-conscious growing customer base.
· The growth rate of the computer industry is also slowing down.
· If the demand slows down, the competition will become stiffer in the process. Dell has to work doubly hard to differentiate itself from its substitutes to be able to continue holding a significant market share.
· With almost identical prices, price difference is no longer an issue for a customer. They might choose other brands instead of waiting for Dell’s customized computers.
· The company plans to have half the materials used recyclable.
· fifty percent of the global workforce will
· Fully automate data control processes.
Accelerate the circular economy
Our goal is to achieve zero waste by ensuring that every part of our products can be reused or recycled, and we are making big strides towards it. More than 90% of a Dell laptop is recyclable.
Protect the Planet
Transparency and Accountability
We are honored to be a founding member of the RBA and actively work with the group to support the rights and well-being of workers and communities within our industry.
Should tech companies recruit staff or should they “sell themselves” to prospective employees?
· Job opportunities for engineers, coders, and advertisers.
· What is the future workforce looking for in employment companies?
· What age range should companies is focusing on?
· What Institutions have new, innovative ideas and departments?
Customer Decision-Making Profile
With the rise of the Covid 19 pandemic, businesses across the county have suffered. Employers have had to shut down and layoff non-critical workers. A workaround for some large businesses was to send employees home to telework. This is not always simple as there are computers, networks, and software that are needed for telework.
Large businesses and corporations usually select their technology companies through a “bid” or contract. When a contract is up, the company decides to renew the contract or send out a “bid” to other competing vendors. These companies usually look for the latest technology in software and security.
Dell Technologies has helped many in this situation by providing customized computers, monitors, stereo headsets, and software for storing and analyzing data with upgraded security for threat management, such as Dell SafeGuard and Response.
While Dell Technologies sells their products and services to 180 countries globally, geographically, Dell Technologies has a large domestic consumer base, serving businesses from small to multinational corporations to the startup companies.
Dell Technologies prides themselves on serving every person, no matter the need. Dell provides products to the everyday person. Such as, college student needing cloud software, the stay at home parent who needs a workable computer with access to zoom calls for school-aged children, the teleworking employee that needs cell service and network capabilities anywhere they are.
A big factor in buying any product is price. No matter the situation, everyone wants to get the best deal out there. Dell provides products as bundles or individual sales, as well as subscriptions that can be built upon if needs change.
Reaching the Customer
Dell Technologies best marketing practice will be the internet and social media. The world is always changing and so is technology. It is important for a business to “go with the flow” or follow trends. Ninety percent of everyday life is run by technology and any person under the age of forty most likely has some form of social media as a way to get your product out there and use the consumer base to help forward the marketing and advertising with posts, shares and tweets.
Dell has remarkably low operating cost relative to revenue because it cuts out the retailer and supplies directly to the customers. The suppliers make Dell’s components and Dell assembles the computers using relatively cheap labor, which affords them total command of the supply chain.
Product/Service Differentiation
Dell is enhancing and broadening the fundamental competitive advantages of the direct model by increasingly applying the efficiencies of the Internet to its entire business
Endorsement campaigns are a way to get products noticed, usually by followers of actors, singers, and entertainers. Dell Technologies has used this strategy before, only it is not an “up in your face “campaign. Dell has collaborated with Marvel studios in 2018, focusing on visual effects. Marvel studios used Dell Technologies hardware, such as VFX, Dell EMC Power Edge servers and Dell Precision, while filming Ant-Man and the Wasp.
The full list of Dell technology DNEG leveraged to create the film includes:
– Dell Precision 7910 workstations
– Dell EMC Power Edge R630 rack servers with MD3460 RAIDs
– Dell EMC Power Edge M1000e Blade Server Enclosures
– Hundreds of Dell monitors
● Dell Technologies is unique, trustworthy, transcending, affordable, sleek, and honest
● Dell Technologies is never, cookie-cutter, dishonest, posed or fake
Dell Technologies is invested in providing the newest and most reliable technology out there. That is why they do not hold themselves in only one stage of the product development cycle; they are constantly starting the development cycle over. Dell Technologies has “core teams” made up of multiple engineers and managers to produce new products or reinvent obsolete ones.
Dell has gone above the traditional four stages of product development and extended it to six stages in order to pay close attention to detail. This allows for communication, diversification, and results in less errors made during production.
· Profile Phase
· Planning Phase
· Implementation Phase
· Qualification Phase
· Launch Phase
· Acceptance Phase
Customers are very sensitive to prices changes. Everyone wants to get the best deal and not spend a lot of money. Businesses will look elsewhere for hardware and software if the price jumps too high. The average consumer purchasing a personal computer is looking for the best deal out there, however most of Dell’ customers come to Dell due to the customization. Customers are willing to pay to “build your own” computer.
This year has yielded a significant increase in revenue as sales went up 2.8%. Dell Technologies’ revenue has surpassed the estimated 21.9 billion and came in with a revenue of 23.5 billion for the 2020 year.
The fact that sales revenue has increased during the pandemic shows consumers prefers Dell products to its competitors. Dell products and services are desirable and stock has risen.
Dell Technologies offers financing and a low monthly payment for its products. They also offer promotions such as no interest if payed in full within a certain timeframe. Financing for large businesses include low rates, short terms, and ability to defer payments. Some people are in need of computers and software now, but do not have the ability to finance. It would be a good idea to offer layaway plans for those who cannot or do not want to finance.
Dell currently sells online directly from its own website. They also collaborate with stores such as Best Buy and Office Depot, Walmart, and third party companies such as Amazon, EBay, and Overstock.
Dells Distribution strategy includes several different partners and ways of purchasing products. However, not all of Dells products are available with partnered companies. Only Dell.com can produce a customized computer. If you purchase a dell computer from anywhere else, you will be paying full price up front for a specific model and needing to pay more for any extras you might want to add. In addition, Dell services are only offered from Dell. Dell Technologies are on the right path collaborating with online companies; however, their products should be available in more stores. Every model should be available in more stores, including customizations. Putting a product or even just the logo out there, everywhere and having customers see it on a regular basis will more than likely have them think of Dell when wanting to purchase a computer or related products.
Approach
Dell technologies is engaging its customers through multimedia content and storytelling that isn’t necessarily about products, or what is sold, but rather more about consumers and the challenges they face and how we are serving up real solutions to their problems.
We had our first media launch as Dell Technologies in the TV commercials during the World Golf Championships. Publications for the event were in Forbes, Washington Post and Business Insider, leading up to the event.
We collaborated with Twitter and PGA for a custom program extending reach of our videos as pre-roll on PGA video content that increased our social media exposure. Collaborating with companies that market the Golf Tournament and doing everything we can to embed “hints” to those who are interested or partake in the sport, has brought in more viewers for our ad campaigns and commercials.
Goal
We relate to customers who require high-performance computer systems at aggressive prices. Our goal is to have consumers think of Dell Technologies not only as a computer company, but also as a company that cares about its customers and the environment, a “Brand I Trust”.
Over the next decade, Dell Technologies will use its global scale, broad technology portfolio, and expertise to yield meaningful and measurable impact on society and the planet.
Messages
Dell Technologies is preparing to be transformative. We are transforming digital, IT and so much more.
Dell Technologies welcomes you to transform your digital experience, your thinking, and your life.
Customers return to Dell for their new and transformative products and services.
Dell Technologies accepted an award for Best Product Team in 2019.
Let the transformation begin.
Promotional Mix and IMC Tools
Digital Marketing
Dell Technologies website has customer stories from satisfied customers as well as partnered companies.
Direct Marketing
Customers who purchase or register with Dell technologies will receive an email containing a survey in which the customer can give feedback on the products and services purchased, products or services desired, and the areas they think the company can improve on.
Sales Promotion + Digital Marketing
Annually, Dell Technologies will run a competition where its customers can post a two minute video to social media with the hashtag ” #DellforLife”, which shows the Dell products they own and how I has improved their life. The winner receives $2,000 towards a product or service and the video to be featured in a Dell Technologies commercial.
Sales Alignment
Dell Technologies does not hold the company stagnant in one stage of sales. They strive to be a well-rounded company.
That is why Dell Technologies’ campaign to become a trustworthy company that relates to its customers, cares about the environment, and provides computer related services at competitive prices requires the ability to discover the needs of its customers and build lasting relationships.
For Dell Technologies, these are the two first and most important stages of the sales process. By getting to know its customers on a basic level and not just, what is to be purchased, Dell is able to provide products and services which will solve daily problems for its customers. Dell will also follow up with its customers via emails and phone calls to see how its products are holding up and if there is, anything needed further. This strategy will result in customer advertising and brand loyalty. This in return, will result in sales revenue.
Dell Technologies does not want to simply be a retailer of computers and software, but a company that helps with the day-to-day struggles and can make its customers lives run smoother.
“Let’s make it real”
Over the next decade, Dell Technologies will use its global scale, broad technology portfolio, and expertise to yield meaningful and measurable impact on society and the planet.
Measurement (KPIs - Key Performance Indicators)
Dell Technologies will rely on key performance indicators to know which direction the company should go concerning its marketing campaign. The key indicators to provide this information are as follows:
· The total sales revenue will indicate if the new campaign strategy is working. It will also give insight into which products are obsolete, needs improvement or if a new target, market should be considered.
· Looking into the amount of new leads generated will let us know if our campaign is reaching our targeted audience. We will be able to calculate if the company will continue or re-evaluate the current strategy.
· By tracking the quantity of website registrations, Dell Technologies will know if digital marketing is relevant in the current market. Information gained will result in the following questions: Does the website need a new look? Is the layout sufficient? Are customers able to find information they are looking for with the ease of a few mouse clicks?
· By tracking the social media platform, Dell Technologies will be able to evaluate statistics of its customers and marketing. How many shares or like are there? What is the demographic of the customers who are sharing the posts? How far are the posts reaching and is there a specific region Dell Technologies is not focusing on, but should?
· Asking customers a simple question as “Where did you hear about Dell Technologies?” will help the company to know how far the marketing is reaching. It will also provide information related to new or current customers. Are they a repeat customer or a new one? Is the radio advertising reaching customers, and if not, the company should pull out and focus its marketing budget elsewhere.
Budget
Below is a short breakdown of marketing costs over a span of twelve months.
Item
Purpose
Cost Estimate
Articles in Forbes, Washington Post, Business Insider
Articles to generate leads and engage customers to watch programs which will feature our commercials
$600
Production of TV commercial
Advertise Dell Technologies re branding and collaboration with EMC
$10,000
Dell Magazine
Mail in advertising. Advertise products and services
$3,000
Radio commercials 3 per week
Advertising for the PGA, “ World Golf Championship-brought to you by Dell Technologies”
$3,600
Facebook, Instagram, Twitter, YouTube ads
Social media ads,
Average $8.04 per CPC, estimated total known after 6 months
WGC commercial
Commercial during WGC to promote our new products and rebranding
$3,000,000
Labor
Salaries for employees, production teams, engineers
$300,000
Estimated campaign impact:
By launching our campaign, we hope to bring in customers that will help us achieve one of our goals to become “A strategically aligned family of businesses that brings together customers’ entire infrastructure, from hardware to software to services, from the edge to the core to the cloud”.
4-5-2020
Meet with board of directors
Discuss the possibility of a merger and rebranding
Class V shareholders
6-20-2020
Investor conference call
Invite investors to be part of the merger
Investors
7-2-2020
Interview with Fortune’s Andy Serwer
Publicly Announce possible merger
Tech companies, large businesses
9-15-2020
Merge
Officially merge with EMC
EMC
9-20-2020
Annual Customer Conference
Confirm merger with EMC and give estimated roll out date
Public, partners
10-1-2020
Recruit
Hire production teams, engineers and support staff
Future employees
12-1-2020
Advertising
Commercials, social media ads, magazines, articles
General Public
3-24-2021
WGC
World premier of first official rebranding and merger announcement commercial
World
The PC market has declined in recent years with mobile commuting on the rise.
· Dell Technologies is ready to shift the primary focus from mainstream PCs. Focus on networking, data storage and protection, edge and cloud services, which bridge the gap between computers/laptops and mobile commuting.
Dell Technologies lacks in the innovative products category. Dell Technologies is not known for its new, innovative products or services, but rather taking advantage of opportunities from competing companies that have established such products.
· We are raising the bar on exceptional staff and engineers. We are looking for employees with “outside the box” thinking and have set aside funds for research and growth experiments.
Attributions
https://www.delltechnologies.com/en-us/index.htm
https://www.delltechnologies.com/en-us/products/index.htm.
http://dell.force.com/?c=us&l=en&pt=findadistributor
https://www.marketing91.com/swot-analysis-of-dell/
https://www.delltechnologies.com/en-us/customer-stories/american-red-cross.htm
https://pestleanalysis.com/pest-analysis-of-dell-technologies
https://whatcompetitors.com/dell
https://corporate.delltechnologies.com/en-us/social-impact/reporting/2030-goals.htm#filter=all