Dell Marketing Case Study

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 Current Marketing Situation:

The base for strategic marketing is basically segmentation, positioning and targeting. The companies these days know that they cannot allure all the customers but they have to recognize the customers they will be able to serve profitably and fulfill their expectations. According to Kotler, "A company must identify the parts of the market that it can serve best and most profitably". The current scenario for Dell is that Dell rose to top the charts in 2013 on the shipment of 5 Million in units with the market share of 14.9%. The regions like United States and Asia Pacific delivered the highest profits for the company with 18.3% and 14.4% quarter over quarter growth. These regions excluded to that of Japan (APEJ). Then Dell was listed on number 51 in the Fortune 500 list in the same year. Over the past couple of years Dell has defeated IBM and HP and gained 20% Demand Strength. Whereas, IBM could gain only 9% and HP lost the Demand Strength by 16%. This completely means that Dell governs the market of computers in US and is trying to come up in the league in the other product categories as well.

Dell’s main marketing strategy is customer segmentation that also includes product segmentation in which Dell targets individual market segments and design products according to individual needs of the customers. Looking at this geographically, Dell has set its grounds in US, EMEA and APJ where there are different marketing and pricing strategies. From the demographic view point there is no gender, race, age bias that particularly Dell has, but depends upon on the education, occupation and income of the people buying various products decides further the selling and purchasing behavior. From the behavioral vi...

... middle of paper ... demand for smart phones
 Profit margin decline on hardware products
 Greater financial strength of competitors
 Intense competition in both in tablet and computer industries
 Increased International competition
 Losing focus over other market segments

 Current Marketing Objectives:
These days the world has shifted from production focus to entertainment center. Dell is supposed to launch Latitude 10 and dual Dell XPS 10 tablets for entertainment oriented consumers that would provide awareness about the benefits of both the organizational buyers and the consumers. This is expected to lead to increased sales in the present market and would also establish new market for entertainment oriented technology.
The objectives from this marketing plan may increase the tablet market share by 4% and is also expected to increase the percentage of tablets sold to 100%.
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