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Project

Of

SDM and CB

On

Submitted to:-

Prof. Preeti pillai and Neha Mehta

Submitted by:-

Vanita parmar (01)

Jatin barot (30)

Dhruv sathwara (33)

Smit joshi (36)

Chirag dave (47)

Naimish langaliya (50)

MBA Sem-3

Sec A(noon)

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Index

1)

Company profile.2) Introduction3) Product Portfolio management4) Sales promotion strategies.5) Dells implementation of sales promotion strategies.6) Strategies for consumer awareness and information..7) Personal selling strategies of the company and CRM8) Supply chain of the company andCRM9) SCM of the company for customer need satisfaction.

Selection of channel partner to cover the potential market..

10) Customer retention strategy and customer feedbackmechanism

11) Impact of multiple channels on consumer decision makingprocess..

12) Consumer decision making process..13) Bibliography

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Company profile

Company name:- Dell

Type:- public ltd

Industry:- Computer hardware & software

I T consulting

I T services

Founded:- Austin, Texas (U.S)

May 1,1984

Founder:- Michael Dell

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Headquarters:- 1 Dell way, round rock, Texas, united states

Area served:- world wide

Chairman & CEO:- Michael Dell

Employees:- 108800(2013)

Introduction

Dell is an American multinational computer technology company based

in U.S. that develops, sells, repairs and supports computers and related

products and services. Bearing the name of its founder, Michael Dell the

company is one of the largest technological corporation in the world

employing 108800 employees worldwide. Dell is currently No. 1 shipper

of P.C monitors in the world

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.

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From 1997-2004 Dell enjoyed, steady growth and it gained market share

from competitors even during slumps.

In 2004, Michael dell resigned as CEO while retaining the position of

chairman, handling the CEO title to Kevin Rollins who had beenpresident and COO since 2001.

In 2005, while earnings and sales continued to rice, sales growth slowed

considerably, and the company stock lost 25% of its value that year.

After 4 out of 5 quarterly earnings reports were below expectations,

Rollins resigned on January 31st

2007 and founder Michael Dell

assumed the role of CEO again.

Product portfolio

1.Laptops

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2.P.C

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3.Mobiles

4.Printer

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5.Projector

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Sales promotion strategies

Push

A push promotional strategy makes use ofa company's sales force and

trade promotion activities to create consumer demand for a product.

The producer promotes the product to wholesalers, the wholesalerspromote it to retailers, and the retailers promote it to consumers.

A good example of "push" selling is mobile phones, where the major

handset manufacturers such as Nokia promote their products via retailerssuch as Carphone Warehouse. Personal selling and trade promotions are

often the most effective promotional tools for companies such as Nokia -

for example offering subsidies on the handsets to encourage retailers to

sell higher volumes.

A "push" strategy tries to sell directly to the consumer, bypassing other

distribution channels (e.g. selling insurance or holidays directly). With

this type of strategy, consumer promotions and advertising are the most

likely promotional tools.

Pull

A pull selling strategy is one that requires high spending on

advertising and consumer promotion to build up consumer demand for aproduct.

If the strategy is successful, consumers will ask their retailers for the

product, the retailers will ask the wholesalers, and the wholesalers willask the producers.

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Dells implementation of strategies

Dell uses both push and pull strategies.

Dell company sells its products to wholesalers, and wholesalers to their

retailers who have showrooms and consumer directly approaches to

these showrooms and retailers.

Dell spends high amount of money on advertising and sales promotions

to increase the sales and meet the demand.

Eg. Advertisement on newspapers, magazines, television and radios.

They even sponsor some events and spends high on these events.

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Various types of sales promotion strategies

1.Festive offers2.

Contests

3.Discounts4.Free accessories5.Free services (condition apply)

Dell is doing all the promotional activities to increase its sales and

market share.

It has so many strategies like free accessories , services etc. to

increase the customers.

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Strategy for customer awareness and information

To make aware about the Dell products it gives advertisement innewspaper, magazines, television and on hoardings. Dell dealers

also inform to retailer to tell consumers about newly launched

product by informing.

Retailers are also provided with catalogues to show it to customersand make aware about recent and latest products.

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Personal selling strategy of the company and customer

relationship management

Dell Inc. has realized that the most efficient path to the customer is

through a direct relationship, with no intermediaries to add confusion

and cost. With the power of their direct model and their team of talented

people, they are able to provide to their customers high-quality, relevant

technology, customized systems, superior service and support and

products and services that are easy to buy and use.

Customer relationship management (CRM) is used to define the process

of creating and maintaining relationships with business customers or

consumers . A long-term relationship with the customer insures their

repeat business. It costs more money to gain new customers than it does

to retain current ones. Dells goal is toprovide customers with theirtechnological, as well as customer service needs. There are three types

of software that facilitate Dells CRM: marketing automation software;

custom designed Web pages containing purchase data; and a system that

benefits the sales, marketing, financial and management segments of

Dell.

The bottom line to CRM systems is that it directly impacts its customer

base, ensuring that better service is offered

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Supply chain management of company for customer

need satisfaction

For its customer need satisfaction company calls the cusomers at regular

interval and ask about the problem regarding the product.

Free helpline number has also been provided by company in which

customer can call and register their complaints.

Supply chain management

A supply chain consists of all parties involved, directly or indirectly, in

fulfilling a customer request. The supply chain not only includes the

manufacturer and suppliers, but also transporters, warehouses, retailers,

and customers themselves. Within each organization, such as

manufacturer, the supply chain includes all functions involved in

receiving and filling a customer request. These functions include, but are

not limited to, new product development, marketing, operations,

distribution, finance, and customer service.

The process of planning, implementing and controlling the efficient ,

cost-effective flow and storage of raw materials , finished goods and

related information from the point of origin to the point of consumption

for the purpose for the purpose of conforming to customer requirements.

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A typical supply chain may involve a variety of stages. These supply

chain stages include:

Customers

Retailers

Wholesalers/Distributors

Manufacturers

Component/Raw material suppliers

E.g

When a customer purchases online from Dell Computer, the supply

chain includes, among others, the customer, Dells Web site that takes

the customers order, the Dell assembly plant, and all of Dells suppliers

and their suppliers. The Web site provides the customer with

information regarding pricing, product variety, and product availability.

Having made a product choice, the customer enters the site to check the

status of the order. Stages further up the supply chain use customer order

information to fill the order. That process involves an additional flow of

information, product, and funds between various stages.

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Dells Criteria for selection of channel partner to

cover the potential market

1. Market FocusDetermine your potential partners specific target markets, whether they

are based on geographic considerations or business type. Discover their

current selling and networking activity. Is their existing customer base

demanding better, more advanced solutions? Does their existing

customer base suit your business in terms of size, location and

application?

2. Target MarketLook at the channel partners target market, their focus, their customer

base and their marketing strategy. What experience do they have, what

successes? How knowledgeable are they about their market and

competition?

3. Business StabilityHow stable and secure is the channels business model? Consider factors

like size, viability, suitability for target market, management

competency, their profitability and growth.

4. Financial Security Soundness and StructureUnderstand the the channel partners financial position. Request

information about their revenue, size, growth, gross margin and profit,

balance sheets and cash flow, are they a private or public company, how

is their business financed?

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5. Does their process and practice fit with yours?

Will partnering with you create a solution conflict potentially reducing

maintenance revenue, territory size or services? Are you able to provide

new business opportunities, services and competitive advantage? Willyour solution allow them to sell more and provide maximum potential

revenue for you?

6. Skills and Experience

Does the channel have the skills and experience to sell and support your

solutions? What is their sales experience, what might your solutions be

as a proportion of their total revenue? What specialist skills can theyoffer? Who are their employees, their background and experience? What

is their SE capability, their marketing strategy, their staffing resource

and their contact level for their customers and prospects? Do they have

the staffing capability for field sales, telesales marketing etc? How do

they measure progress and customer satisfaction?

7. Technical Expertise

What specialist resources does the channel partner have? Do they

have sufficient training plans, experience in network infrastructure,

experience in presenting/demonstrations, knowledge of your

implementation issues, the ability to be self-sufficient technically, a

customer service mentality?

8. Who else are they resellers for?

What is the channels track record, and their experiences, (good and bad)are they locked-in to any specific agreements?

9. What Knowledge do they have of you?

Sales, Telesales and Marketing?

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10. What is their Partnership mentality?

How committed is the channel to partner with you? Are they willing to

dedicate staff to your business? Do they have lead generation plans and

lead follow-up processes? Are they prepared to invest in demo-capability and training? Are they focused on a long-term partnership,

willing to work together to develop a partnership plan and to commit to

minimum targets ?

Remember that unlike direct selling, the sales relationship between you

as the vendor and your channel starts after the sale. Finding the right

partner is definitely the first critical step. After that the key to building a

successful partner relationship will depend on the education and support

provided by the vendor.

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CUSTOMER RETENTION STRATEGY AND

CUSTOMER FEEDBACK

"Dell, always tried to exceed customer expectations with their products

and services," says Michael Dell, the Founder ofDell. "When you

delight your customerconsistentlyby offering better products and

better services, you create strong loyalty. When you go beyond that to

build a meaningful, memorable total experience, you win customers for

life. Their goal, at the end of the day, is for our customers to say, Dell is

the smarter way to buy a computer."

http://www.1000ventures.com/business_guide/cs_entrepreneurs_dell.htmlhttp://www.1000ventures.com/business_guide/cs_im_dell.htmlhttp://www.1000ventures.com/business_guide/cs_im_dell.htmlhttp://www.1000ventures.com/business_guide/cs_entrepreneurs_dell.html

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To retain the company or product in peoples mind dell is regularly

giving advertisements in various channels.

They also call their customers at regular intervals for their feedbacks andcomplaints to survive in market as well as with their rivals

Customer feedback mechanism

Company gives a online feedback form to their customers regarding

their products.

They also contact and call their existing customers and take their

feedback.

Company then takes action towards the complaints and solves the

problems so that the image of the company remains stable as in top.

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Impact of multiple channels on consumer decision

making process

Multiple channels:

This system is adopted by companies which use two or more

marketing channels to reach different customers segments.

Dell is able for multi channels.

Dell uses so many channels for advertisements.

1. Online2. Intermediaries3. Showrooms4. Dealership

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Consumer decision making process:

A consumer goes through several stages before purchasing a product or

service.

NEED

INFORMATION GATHERING/SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE OF PRODUCT/SERVICE

POST PURCHASE EVALUATION

Step 1 - Need is the most important factor which leads to buying of

products and services. Need infact is the catalyst which triggers the

buying decision of individuals

Only those people will buy dell laptop or any other products who

need dat particular product with good quality.

Step 2 - When an individual recognizes his need for a particular

product/service he tries to gather as much information as he can.

The people who wants to buy dell products will gather

information from different sources like personal sources,

commercial sources, public sources and experiential sources.

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Step 3 - The next step is to evaluate the various alternatives available in

the market

Step 4 - After going through all the above stages, customer finally

purchases the product

Step 5 -. Post purchase evaluation refers to a customers analysis

whether the product was useful to him or not, whether the product

fulfilled his need or not??

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Bibliography

Websites:

www.google.com

www.dell.com

http://www.google.com/http://www.google.com/http://www.dell.com/http://www.dell.com/http://www.dell.com/http://www.google.com/