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