SlideShare una empresa de Scribd logo
1 de 26
2013
Hypothetical
Marketing
Plan
Dell, Inc.
Author: Matthew Perrin
Hypothetical Marketing Plan 2013 Dell, Inc.
1
Contents
Executive Summary........................................................................................................................ 3
Company Overview ........................................................................................................................ 4
History......................................................................................................................................... 4
Business....................................................................................................................................... 4
Competitive Overview.................................................................................................................... 5
Industry Analysis......................................................................................................................... 5
SWOT Analysis........................................................................................................................... 7
Strengths...................................................................................................................................... 7
Weaknesses ................................................................................................................................. 9
Opportunities............................................................................................................................. 10
Threats....................................................................................................................................... 10
Marketing Objectives.................................................................................................................... 11
Marketing Goals........................................................................................................................ 11
Target Market............................................................................................................................ 11
Competitive Advantages ........................................................................................................... 12
Positioning Statement................................................................................................................ 12
Promotional Plan: “Double Your Vision”..................................................................................... 12
Advertising................................................................................................................................ 12
Personal Selling......................................................................................................................... 13
Public Relations......................................................................................................................... 13
Sales Promotion......................................................................................................................... 14
Direct Marketing ....................................................................................................................... 15
Media Schedule and Cost.......................................................................................................... 15
Advertising & Promotion – “Double Your Storage Sale”..................................................... 16
Advertising & Promotion – “Start Seeing Double Sale”....................................................... 16
Personal Selling – Presentations............................................................................................ 16
Direct Marketing – Presentation Scheduling......................................................................... 17
Public Relations – “Double Your Success” Project .............................................................. 17
Conclusions................................................................................................................................... 17
References..................................................................................................................................... 18
Hypothetical Marketing Plan 2013 Dell, Inc.
2
Appendix: “Double Your Vision” Concepts.................................................................................... i
“Double Your Vision” TV Ad: Live-Action Scene...................................................................... i
“Double Your Vision” TV Ad: Animated Frame 1 ....................................................................ii
“Double Your Vision” TV Ad: Animated Frame 2....................................................................iii
“Double Your Vision” TV Ad: Animated Final Frame ............................................................. iv
“Double Your Vision” TV Ad: Script (45-60 seconds)............................................................... v
“Double Your Storage” Sales Promotion................................................................................... vi
“Start Seeing Double” Sales Promotion....................................................................................vii
Hypothetical Marketing Plan 2013 Dell, Inc.
3
Executive Summary
Dell has recently entered the burgeoning industry of tablet computing by introducing the
XPS 10 and Latitude 10 devices. This report contains an integrated marketing communications
plan intended to improve awareness, market penetration, and sales of those tablet computers.
The target market for these devices will include ultimate consumers and organizational
buyers who desire a mobile computer with robust productivity and entertainment features. The
target customers will be located in these countries with large professional workforces: Canada,
the U.S., China, India, Japan, Malaysia, Singapore. Combining the key product attributes with
the target market segment, we arrive at the following positioning statement for the Dell XPS 10
and Latitude 10 tablets: “Dell XPS and Latitude tablet computers double as productivity kits and
entertainment centers for value-conscious professionals and students.”
The measurable marketing objectives of this plan are:
 Increased tablet market share 4% by January 1, 2014
 Increased tablets sold 100% by January 1, 2014
Strategically, the promotional objectives of this plan are:
 Increased awareness of Dell tablets and educate target customers about the dual
productivity and entertainment benefits of these products.
 Incentivized and increased sales of Dell tablets to those target customers.
Tactically, these objectives will be accomplished through combined use of advertising, sales
promotion, personal selling, direct marketing, and public relations. The plan will be implemented
from May through December of 2013. Each promotional element will be deployed at strategic
times in order to maximize consumer interest and sales.
Hypothetical Marketing Plan 2013 Dell, Inc.
4
Company Overview
History
Founded in 1984 by current CEO Michael Dell, the company originally named PC’s
Limited quickly outgrew its operating space in Dell’s university dorm room. Owing to various
private investments and a fluid business model, the company’s expansion continued. The name
was changed to Dell Inc. prior to its initial public offering in 1988. Only four years later, the
rapid ascent of the firm was confirmed when it debuted on the Fortune 500. Sales of Dell’s
offerings skyrocketed after it launched its e-commerce website another four years later. Dell’s
innovations in direct marketing were undeniably rewarded when, in 2001, the company became
the number one worldwide provider of computer systems. Dell has since slipped from that
position but is now holding its ground at third place.
Business
Dell is a computing and information technology provider with product and service
offerings in various subcategories of those two industries. Organizationally, Dell is a holding
company that operates through subsidiaries segmented into the following operational units:
Large Enterprise, Public, Small and Medium Business, and Consumer. Throughout much of its
history, Dell principally focused on direct marketing to ultimate consumers and organizational
buyers. The strategy involved collecting information about the customer’s expected needs,
assembling computers to meet those needs, then selling those computers directly to the customer.
Dell has broadened this strategy to include retail distributors but the company remains focused
on providing customized solutions to consumer needs. In the early 2000’s, Dell began
aggressively expanding its B2B operations into enterprise computing worldwide. It now offers
both hardware and software solutions to meet the computing and IT needs of other firms. Even
Hypothetical Marketing Plan 2013 Dell, Inc.
5
more recently, Dell entered the tablet computing industry. As with its other hardware, Dell aims
to target its tablet computers to both ultimate consumers and organizational buyers in
households, academic institutions, nonprofit organizations, and businesses of all sizes.
Competitive Overview
Industry Analysis
The modern tablet computing industry was born from the launch of the Apple iPad in
2010. As such, the industry is still young and its market is full of growth opportunity: both
consumer and organizational demand for tablets is increasing (PR Newswire, para. 1). Ultimate
consumers seem primarily attracted to tablets for their entertainment possibilities. Organizational
buyers seem primarily attracted to tablets for their productivity possibilities. Furthermore, the
low relative cost of tablets versus laptop and desktop computers appeals to both types of
customers (SpirE-Journal, p. 2).
Despite being dominated by a mere two Apple products, the profit potential for the tablet
market has attracted several manufacturers. Most of those firms are already direct competitors
with Dell in other hardware and software markets. These competitors include Samsung, HP, and
Lenovo. Each company offers at least two products that compete directly with those of Dell.
Four of the most similar product offerings are analyzed below.
Marketing Plan 2013 Dell, Inc.
6
Competitive Analysis
(Template courtesy of Marketing Sherpa Blog)
Dell Lenovo HP
OVERVIEW:
Dell offers two Windows tablets, the XPS 10
(Windows RT) and the Latitude 10 (Windows
8). They offer low to mid-cost computing,
mid-range quality, and many customization
options.
OVERVIEW:
Lenovo offers two Windows 8 tablets, the
ThinkPad Tablet 2 and the IdeaTab Lynx.
They offer low to mid-cost computing and
mid-range quality.
OVERVIEW:
HP offers two Windows 8 tablets, the
ElitePad 900 and the ENVY x2. They offer
mid-cost computing and mid-range quality.
Additional value:
Dell tablets offer many configurations & thus
price tiers. The XPS 10 is pre-loaded with MS
Office apps and can be bundled with a
docking keyboard featuring an integrated
battery.
Additional value:
The IdeaTab Lynx is designed to dock with an
optional multiport keyboard with integrated
battery, simulating a true laptop.
Additional value:
The ENVY x2 is designed and sold with an
attachable multiport keyboard simulating a
true laptop.
Details:
XPS 10: 10.1” HD Display; 1366x768 Max
Resolution; 1.5 GHz Qualcomm Snapdragon
S4 CPU; 2 GB DDR2 RAM; 32-64 GB SSD; 720P
Front Camera; 5MP Rear Camera
Latitude 10: 10.1” HD Display; 1366x768 Max
Resolution; 1.8 GHz Intel Atom CPU; 2 GB
800 MHz DDR2 RAM; 64-128 GB SSD; 720P
Front Camera; 8MP Rear Camera
Details:
ThinkPad Tablet 2: 10.1” HD LED Display;
1366x768 Max Resolution; 1.8 GHz Intel
Atom CPU; 2 GB DDR2 RAM; 64 GB SSD; 720P
Front Camera; 8MP Rear Camera
IdeaTab Lynx: 11.6” Display; 1366x768 Max
Resolution; 1.8 GHz Intel Atom CPU; 2 GB
DDR2 RAM; 64 GB SSD; 720P Front Camera
Details:
ElitePad 900: 10.1” Display; 1280x800 Max
Resolution; 1.8 GHz Intel Atom CPU; 2GB
533 MHz DDR2 RAM; 64 GB SSD; 1080P
Front Camera; 8MP Rear Camera
ENVY x2: 11.6” LED Display; 1366x768 Max
Resolution; 1.8 GHz Intel Atom CPU; 2 GB
DDR2 RAM; 64 GB SSD; 1080P Front
Camera; 8MP Rear Camera
Manufacturer Price: (Without Accessories)
XPS 10: ≥ $450
Latitude 10: ≥ $580
Manufacturer Price: (Without Accessories)
ThinkPad Tablet 2: ≥ $660
IdeaTab Lynx: ≥ $470
Manufacturer Price: (Without Accessories)
ElitePad 900: ≥ $700
ENVY x2: ≥ $650
Marketing Plan 2013 Dell, Inc.
7
SWOT Analysis
Earlier this year, CEO Michael Dell announced a $24.4 billion private buyout of the
company, led by a consortium of investors that included Mr. Dell, Microsoft, and private equity
firm Silver Lake Management. In light of this development, our marketing team chose to
contemplate the operational future of Dell by comparing recently compiled pre-buyout SWOT
analyses and revising them by incorporating projected and potential consequences of the buyout.
Two such analyses, prepared in late 2012 by MarketLine and Global Data, were accordingly
consulted for perspective during the preparation of this report.
Strengths:
 Ongoing operational efficiency.
 Strong investment in the burgeoning
enterprise computing market.
 Freedom from quarterly pressure and
scrutiny of shareholders.
Weaknesses:
 Massive debt from leveraged buyout.
 Slipping control of consumer PC
market share.
 Several risky acquisitions from the past
few years.
Opportunities:
 Continued growth of enterprise and
tablet hardware markets.
 Demand for recently acquired
enterprise computing software.
Threats:
 Continually shrinking consumer PC
market.
 Tight competition in the enterprise and
tablet computing markets.
 Greater financial strength of
competitors.
Strengths
Although the massive sale of Dell implies optimism on the part of its buyers, the
purchase constitutes a considerable gamble and raises questions about the long-term growth of
the company. Nevertheless, it returns to private ownership with several assets in hand. Statistics
aggregated by Global Data indicate that Dell’s operating efficiency has most recently been
increasing. While the company’s operating income increased by 26.42% (from $3,505m to
Marketing Plan 2013 Dell, Inc.
8
$4,431m) between fiscal 2011 and 2012, its net profits also increased by 32.52% (from $2,635m
to $3,492m) during the same period (2012, p. 2). Dell’s long history of effective supply chain
management is one reason for this advantageous stance (Blanchard, p. 45).
Dell’s considerable market share and diverse product portfolio are additional testaments
to its history of astute long-term investment strategies. That portfolio extends well into the
enterprise computing market—an industry focused on providing networking, computing, and
storage solutions to businesses—which is projected to grow worldwide at a greater pace than the
consumer PC industry. For instance, according to research group MarketLine, Dell already
commands the third largest share of the worldwide server market (2012, p. 4). In the final quarter
of 2012, the company held its rank as third largest PC manufacturer, retaining 11% of the market
(Nuttall, p. 19). Dell willingly relinquished some of that market in the fourth quarter, in order to
focus on investments in both enterprise and tablet computing (ibid.).
In late 2012, Dell released two tablets to coincide with the unveiling of Microsoft’s
Windows 8 operating system. Those tablets are the subject of this marketing plan. Even before
the buyout, the future fortunes of Dell and Microsoft were entwined, since both companies are
currently dependent upon Windows, its related software, and the hardware used to host it (Dell,
para. 3). Despite introducing its own tablet to the market, Microsoft CEO Steve Ballmer has
indicated his company’s strong support for other device manufacturers (“Original Equipment
Manufacturers” or “OEM”) bundling those devices with Windows RT and Windows 8 (Pontin,
para. 17). Possible plans for shared ventures help to explain the investment of Microsoft in Dell
(Nuttall, p. 19). The latter’s return to private ownership will grant its management tremendous
latitude to restructure the company’s resource and labor networks, as well as the firm’s portfolio
of products and services. Absent the pressure and scrutiny of shareholders, Dell is expected to
Marketing Plan 2013 Dell, Inc.
9
devote greater time and energy to developing and testing products and services for lucrative
markets like enterprise-level networking, computing, and storage (Ricadela & Burrows, p. 1).
Weaknesses
The unmistakable elephant in the room for Dell is the $17 billion debt that will
inaugurate the company’s return to private ownership (Ricadela & Burrows, p. 1). This debt
constitutes a considerable risk on the part of the investing consortium. With an absence of
liquidity and lender confidence in the company low, Dell will likely need to make do with the
resources currently at its disposal (ibid.). Leveraging those resources effectively enough to
slough off the onus of massive interest will be necessary to maintain and enhance the long-term
competitiveness and profitability of the company. Even without public shareholders shaking
pitchforks, Dell will need to demonstrate significant innovation and generate substantial revenue
to retain its industry influence and relevance.
Although it has recognized the declining consumer PC market as a potential liability, and
has strategically withdrawn from the lowest-budget segment of that market, this decision marks a
begrudging exodus from an ailing industry in which Dell has historically proven expert (Nuttall,
p. 19). Furthermore, the diaspora involves moving into fertile but less familiar territory that is
already crowded by wealthy competitors. Dell, and the investors backing it, can only hope to
capitalize on the firm’s recent purchase of companies with connections to the enterprise
computing industry. One such example is Quest, a provider of IT software, which Dell acquired
for $2.4 billion in July of 2012. In addition, both Microsoft and Dell must find markets within
which to effectively leverage the Windows 8 platform. Thus far, at least in the U.S. consumer
market, Windows 8 tablet sales have been alarmingly slow but that trend could change as more
device manufacturers embrace the OS (Bass, p. 1).
Marketing Plan 2013 Dell, Inc.
10
Opportunities
In the area of computing, the popularity and sales of tablets remain strong, and Microsoft
shows no signs of abandoning its promotion of Windows 8 for use on those devices. Both
companies are well-positioned to capitalize on the growth of the enterprise tablet computing
market, where the hand-held devices typically offer a lower cost mobile alternative to laptop and
desktop computers. As previously noted, future hardware-software partnerships between
Microsoft and Dell are expected by analysts. Those expectations extend beyond B2C to B2B
models, particularly in the development of software created by the companies that Dell
purchased prior to the firm’s buyout. Quest Software, Gale Technologies, and Clerty Solutions
are just a few of the many acquisitions that Dell will need to effectively leverage in order to
profitably emerge from their self-imposed sequestration.
Threats
Many spectators believe that Dell’s announced buyout is a calculated reaction to the
decline of the firm’s core historical market, consumer PCs. This is undoubtedly true but the firm
still has several “cash cow” products positioned in that market, meaning that both slumping
market sales and shifting product focus threaten to reduce the firm’s revenues. Looking
elsewhere, the two principal markets of opportunity for Dell, tablet and enterprise computing, are
characterized by ferocious competition among powerfully positioned contenders. Even without
the iPad in the equation, Microsoft and Dell must fight to convince many iOS- and Android-
accustomed smartphone-users that Windows 8 is the OS they should be running on their tablets.
Dell must also compete with the other top IT suppliers—most notably Hewlett Packard, IBM,
and Oracle—and numerous startups for a significant share of the enterprise computing market
(Ricadela & Burrows, p. 1). Many of those competitors are better positioned financially to
Marketing Plan 2013 Dell, Inc.
11
explore the waters. Dell’s margin for strategic error, on the other hand, is slim. Since it will soon
become weighted by debt, if Dell takes a calculated plunge but finds itself in too deep to
resurface, it’s unclear who (if anyone) could or would risk diving in to rescue the firm.
Marketing Objectives
The launch of the dual solution Dell XPS 10 and Latitude 10 tablets provide a tool for
consumers that moves from a production focus to an entertainment center. Providing an
increased awareness and education of the benefits of the Dell tablets to both the consumer and
organizational buyer will lead to an increased sales in current markets while expanding into the
new market of entertainment based technology. New products will be introduced as accessory
based items such as the Productivity Dock.
Marketing Goals
This marketing plan aims to achieve the following goals:
 Increase tablet market share 4% by January 1, 2014
 Increase tablets sold 100% by January 1, 2014
Target Market
The target market for XPS 10 and Latitude 10 tablets will include ultimate consumers and
organizational buyers who desire a productivity tool for work and/or school that also provides
flexible entertainment options for leisure use. The target customers will be located in these
countries with large professional workforces: Canada, the U.S., China, India, Japan, Malaysia,
Singapore. Collectively, these countries will hereafter be referred to in this report as the “key
regions.”
Marketing Plan 2013 Dell, Inc.
12
Competitive Advantages
 Over a decade of computer hardware manufacturing experience and expertise
 Highly efficient supply chain that enables high quality and low cost
 Long and consistent history of product reliability and support
Positioning Statement
Dell XPS and Latitude tablet computers double as productivity kits and entertainment
centers for value-conscious professionals and students.
Promotional Plan: “Double Your Vision”
Dell will use an integrated marketing communications plan to increase awareness about
the benefits of the XPS 10 and Latitude 10 tablets. This promotional plan is entitled “Double
Your Vision,” and it is designed to communicate the uses, costs, and overall value of each tablet
to customers. The objectives and elements of the promotional plan are as follows:
 Increase awareness of Dell tablets and educate target customers about the dual
productivity and entertainment benefits of these products.
 Incentivize and increase sales of Dell tablets to those target customers.
Advertising
One TV commercial (see Appendix pp. i-v) will target domestic and international
organizations on major news cable channels. In this context, the commercial will appeal to
government, nonprofit, and enterprise organizations. This same TV commercial will be aired on
popular entertainment channels targeting consumers in the key regions. In this context, the
commercial will appeal to middle-class, cosmopolitan buyers interested in a tablet device for
both work and play.
Marketing Plan 2013 Dell, Inc.
13
Personal Selling
Education of consumers will continue through on-site personal selling. Following a
telephone campaign (see Direct Marketing below), Dell sales agents will target medium to large
organizations in the key regions, in order to provide on-site presentations and follow-up
conversations tailored to the prospective buyers’ needs. Presentations will last between thirty and
sixty minutes, depending on the needs of the audience. The campaign will run from June through
December, in tandem with the direct marketing campaign.
Public Relations
Following the acceptance of this plan item, the market research team will determine the
two largest cities in the key regions with the greatest potential for market share and sales. Team
will then select one middle-class middle school in the higher ranking city, then one middle-class
elementary school in the lower ranking city. One academic class will be selected in each school.
Dell will then provide free Latitude 10 tablets to the instructors and students in those classes
from August through October. The project would be called “Double Your Success” or something
similar, and could carry the slogan: two classes, two tablets, too many possibilities.
Dell will issue a press release announcing the move beforehand, in hopes of generating
additional media coverage. Some additional promotional materials may be prepared at minimal
cost. Dell will then document the ways in which the students and instructors use the tablets and
feed positive findings to journalists as they come to light. This strategy is intended to encourage
wider adoption in education and government, while maximizing public interest prior to the “Start
Seeing Double Sale” in November. Dell could implement a similar strategy for businesses,
without providing the tablets free of charge. In any case, Dell should encourage organizational
Marketing Plan 2013 Dell, Inc.
14
buyers to document their uses of the tablets and share their findings with Dell. As positive
findings become available, the marketing team would pass them to journalists.
Sales Promotion
Dell will initiate two sales promotions as part of this marketing plan. The first will be
entitled the “Double Your Storage Sale.” The terms: “Buy any 32GB Dell tablet and get twice
the storage capacity free.” The sale will run across the key regions from August 1st
to 31st
, in
order to leverage increased consumer spending during back-to-school season. Advantages to this
sale include: requires low relative cost to both supplier and consumer; generates awareness of
product and selective demand; rapidly increases market share; timed for maximum impact. A
concept image for this sale is contained on page vi of the Appendix.
The second promotion will be entitled the “Start Seeing Double Sale.” The terms: “Buy
any Dell tablet and get a second tablet half off.” The sale will run across the key regions from
November 1st
to 30th
, in order to leverage increased consumer spending during the winter holiday
season. It is particularly intended to attract customers before Black Friday, which creates an
abundance of buying options for consumers. Advantages to this sale include: requiring greater
consumer commitment; offering twice the market penetration per sale; potentially exposing
younger generations (children of customers) to the Dell brand and tablet experience; timed for
maximum impact. A concept image for this sale is contained on page vii of the Appendix.
In addition to Dell’s in-house initiatives, the marketing team will monitor competitors
with comparable brand equity and product value (e.g., HP, Lenovo, and Samsung). The team will
observe their promotions, prices and benefits, then provide Dell tablet configurations that both
match and exceed the value of competing devices. The goal in pricing is to convey the
perception that Dell provides both quality and affordability.
Marketing Plan 2013 Dell, Inc.
15
Direct Marketing
A telephone campaign will be targeted to organizational buyers in the key regions. This
campaign will indicate the benefits of the product line to organizations and offer an on-site
presentation tailored to the organization’s specific needs (see Personal Selling above). Calling
will occur daily or weekly depending upon the available budget and response rate of leads
contacted. The campaign will parallel the personal selling campaign and from June through
December.
Media Schedule and Cost
Projected budgeting for the Double Your Vision promotion campaign will be based upon
Dell’s total 2012 marketing budget. That amounted to $860 million. Assuming that the company
has the same budget to work with in 2013, the promotional budget might be divided according to
the relative importance of each market to the overall strategy of the company. Our proposed
division of resources is as follows:
 35% - Tablets
 40% - Enterprise
 25% - Personal Computers
This means that $300 Million would be dedicated to tablet promotion for 2013, the subject of
this marketing plan. However, only two-thirds of the year remains for implementation, so we
will accordingly allocate only $200 Million. Further division of that budget must be determined
for each promotional element. By order of cost, the greatest proportion of the budget should be
assigned to: (1) Advertisements; (2) sales promotion; (3) personal selling; (4) direct marketing;
and (5) public relations. The tactical details of each promotional element are explained below.
Marketing Plan 2013 Dell, Inc.
16
Advertising & Promotion – “Double Your Storage Sale”
Months: August 2013
Frequency: Varied based on the TV channel and programming
Length of Spot: 45-60 seconds
Terms: “Buy any 32GB Dell tablet and get double the storage free.”
Locations: Key Regions
Estimated Cost: Advertisement $35 Million; Promotion $40 Million
Total Estimated Cost: $75 Million
Advertising & Promotion – “Start Seeing Double Sale”
Months: November 2013
Frequency: Varied based on the TV channel and programming
Length of Spot: 45-60 seconds
Terms: “Buy any Dell tablet and get a second half off.”
Locations: Key Regions
Estimated Cost: Advertisement $35 Million; Promotion $60 Million
Total Estimated Cost: $95 Million
Personal Selling – Presentations
Months: June – December 2013
Frequency: Varied based on direct marketing campaign and trade shows
Length of Presentation: 30-60 minutes
Locations: Chosen by customer or trade show organizer
Total Estimated Cost: $20 Million
Marketing Plan 2013 Dell, Inc.
17
Direct Marketing – Presentation Scheduling
Months: June – December 2013
Frequency: Daily or weekly based on allocated budget and response rate
Length of Call: 15 seconds to 15 minutes
Locations: Key Regions
Total Estimated Cost: $7 Million
Public Relations – “Double Your Success” Project
Months: August – October 2013
Frequency: Varied based on the TV channel and programming
Estimated Number of Devices: 50-60
Locations: Two targeted schools in cities with greatest market and sales potential
Total Estimated Cost: $3 Million
Conclusions
Only through proper execution of this plan can the soundness of its strategy be logically
evaluated. That strategy entails raising consumer awareness of Dell tablets and their potential for
both productivity and entertainment. Success of the marketing plan will be measured using
market share and sales metrics, in order to track the progress of the marketing objectives. The
perception of value is essential to Dell in all its products and services but is particularly crucial in
the hyper-competitive industry of tablet computing. Dell has built a brand synonymous with
usability and affordability. The XPS 10 and Latitude 10 tablets exemplify those virtues, and this
marketing plan will effectively communicate that fact to prospective customers.
Marketing Plan 2013 Dell, Inc.
18
References
Bass, D (2013, February 4). Microsoft sees tablet shortfall reversing with new spring models. Bloomberg
News. Retrieved from http://www.bloomberg.com/news/2013-02-04/microsoft-sees-tablet-
shortfall-reversing-with-new-spring-models.html.
Blanchard, D (2012, November). Dell taps into innovation to reach emerging markets. Industry Week, 45.
Retrieved from Business Insights: Essentials. Web.
Burstein, D (2012, May 8). How to Write a Competitive Analysis (with 3 free templates). Marketing
Sherpa Blog. Retrieved from http://sherpablog.marketingsherpa.com/research-and-
measurement/competitive-analysis-tools/.
Company Profile: Dell, Inc. (2012, September 24). MarketLine. Retrieved from Business Insights:
Essentials. Web.
Dell, Inc: Financial and Strategic Analysis Review (2012, August 3). Global Data. Retrieved from
Business Insights: Essentials. Web.
Dell. Financial Times (2013, February 6), 12. Retrieved from Business Insights: Essentials. Web.
Gelles, D. & Sender, Henny (2013, February 6). Founder's $24.4bn move for Dell is bold bid to revive
dorm-room dream. Financial Times [London (UK)], p. 1. Retrieved from ProQuest
Newsstand,ABI/INFORM Global. Web.
Global Tablet Computers Market 2011-2015. PR Newswire (2012, March 14). Retrieved from
http://www.prnewswire.com/news-releases-test/global-tablet-computers-market-2011-2015-
142599156.html.
Nuttall, C (2013, February 6). PC old guard takes on new focus. Financial Times [London (UK)], p. 19.
Retrieved from ProQuest Newsstand,ABI/INFORM Global. Web.
Pontin, J (2013, February 20). Q+A Steve Ballmer. MIT Technology Review. Retrieved from
http://www.technologyreview.com/featuredstory/511076/steve-ballmer-on-the-strategy-behind-
his-strangest-product/.
Ricadela, A. & Burrows, P (2013, February 6). After Dell’s buyout, company’s challenge is reviving
business. The Washington Post. Retrieved from http://articles.washingtonpost.com/2013-02-
06/business/36939009_1_compellent-technologies-michael-dell-texas-based-computer-maker.
The computer tablet industry: Overflowing with opportunities. SpirE-Journal 2012 Q3 (n.d.). Retrieved
from http://www.spireresearch.com/spire-journal/yr2012/q3/the-computer-tablet-industry-
overflowing-with-opportunities/.
Marketing Plan 2013 Appendix Dell, Inc.
i
Appendix: “Double Your Vision” Concepts
“Double Your Vision” TV Ad: Live-Action Scene
Marketing Plan 2013 Appendix Dell, Inc.
ii
“Double Your Vision” TV Ad: Animated Frame 1
Marketing Plan 2013 Appendix Dell, Inc.
iii
“Double Your Vision” TV Ad: Animated Frame 2
Marketing Plan 2013 Appendix Dell, Inc.
iv
“Double Your Vision” TV Ad: Animated Final Frame
Marketing Plan 2013 Appendix Dell, Inc.
v
“Double Your Vision” TV Ad: Script (45-60 seconds)
(Commercial opens with Side L scrolling through The Wall Street Journal, and Side R scrolling through an
elementary school report. All voices are heard from off screen via left speaker for Side L and right speaker for Side
R.)
Young Male Colleague (Side L): “Mr. Ramirez, the fourth quarter budget proposal is in the SkyDrive for you to
review.”
Ramirez (Side L): “Thanks, I’ll have my comments ready by tomorrow morning.” (Opens an Excel file and begins
examining charts/data).
Son (Side R): “Hey Dad, when you’re finished proof reading my report, can I play Angry birds?”
Ramirez (Side R): “Actually, I just finished. I’m really proud of you, and I bet your teacher will be too. Now let’s
see if you can beat my new high score.” (Ramirez opens Angry Birds while footsteps approach. Small hands reach
over to take the tablet as Side R widens left cover the full screen. Female narrator begins speaking while son plays
game).
Narrator: “Dell and Microsoft want to double your tablet’s potential. At work or at play, with Dell’s new line of
tablet computers, you get the best of both worlds. Twice the vision, Twice the value (“Work2
/Play2
” phrase hovers
on screen, then blurs into “Capability2
/Possibility2
. Dissolves to Dell “Tablets2
” logo). Isn’t it time you started
seeing double? (“Double Your Vision” slogan dissolves in) Dell tablets…. Double your vision.”
Marketing Plan 2013 Appendix Dell, Inc.
vi
“Double Your Storage” Sales Promotion
Marketing Plan 2013 Appendix Dell, Inc.
vii
“Start Seeing Double” Sales Promotion

Más contenido relacionado

La actualidad más candente

Bizmaestros'22 Case, Final Round
Bizmaestros'22 Case, Final RoundBizmaestros'22 Case, Final Round
Bizmaestros'22 Case, Final RoundAfnan Faruk
 
Vans : étude et lancement d'une nouvelle gamme de produit
Vans : étude et lancement d'une nouvelle gamme de produitVans : étude et lancement d'une nouvelle gamme de produit
Vans : étude et lancement d'une nouvelle gamme de produitLaurence Rouge
 
Tesi: La comunicazione d'impresa e il marketing virale.
Tesi: La comunicazione d'impresa e il marketing virale.Tesi: La comunicazione d'impresa e il marketing virale.
Tesi: La comunicazione d'impresa e il marketing virale.Sarah Cillo
 
Memoire la publicité programatique mobile et le rapport marque consommateur ...
Memoire  la publicité programatique mobile et le rapport marque consommateur ...Memoire  la publicité programatique mobile et le rapport marque consommateur ...
Memoire la publicité programatique mobile et le rapport marque consommateur ...Pierre-Yves Trennec
 
THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...
THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...
THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...IANTERNAUTE
 
Mémoire - L'éphémère et les réseaux sociaux
Mémoire - L'éphémère et les réseaux sociauxMémoire - L'éphémère et les réseaux sociaux
Mémoire - L'éphémère et les réseaux sociauxVictor Trinh-Duc
 
Mémoire Master 2 Celsa Irène Durand-Mille
Mémoire Master 2 Celsa Irène Durand-MilleMémoire Master 2 Celsa Irène Durand-Mille
Mémoire Master 2 Celsa Irène Durand-MilleIrène Durand-Mille
 
Mémoire de fin d'étude - ISCOM
Mémoire de fin d'étude - ISCOM Mémoire de fin d'étude - ISCOM
Mémoire de fin d'étude - ISCOM Manon Peytavin
 
China VS France
China VS FranceChina VS France
China VS FranceLolilu
 
Presentation de Lego
Presentation de LegoPresentation de Lego
Presentation de LegoNicolas ODIN
 
Analyse de marque - Tecnifibre
Analyse de marque - TecnifibreAnalyse de marque - Tecnifibre
Analyse de marque - TecnifibreBastien Balarotto
 
Copie Stratégique - Le Slip Français
Copie Stratégique - Le Slip FrançaisCopie Stratégique - Le Slip Français
Copie Stratégique - Le Slip FrançaisGregoire Gautier
 
Dell marketing strategy @gd
Dell marketing strategy @gdDell marketing strategy @gd
Dell marketing strategy @gdGaurav Dakhore
 
Analysis Samsung with Five-Force Model and Protein Model
Analysis Samsung with Five-Force Model and Protein Model Analysis Samsung with Five-Force Model and Protein Model
Analysis Samsung with Five-Force Model and Protein Model chencheng0614
 
LA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANT
LA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANTLA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANT
LA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANTNathalie Hebeisen
 
Babolat, vision stratégique
Babolat, vision stratégiqueBabolat, vision stratégique
Babolat, vision stratégiqueMounia H.
 

La actualidad más candente (20)

Bizmaestros'22 Case, Final Round
Bizmaestros'22 Case, Final RoundBizmaestros'22 Case, Final Round
Bizmaestros'22 Case, Final Round
 
Vans : étude et lancement d'une nouvelle gamme de produit
Vans : étude et lancement d'une nouvelle gamme de produitVans : étude et lancement d'une nouvelle gamme de produit
Vans : étude et lancement d'une nouvelle gamme de produit
 
Tesi: La comunicazione d'impresa e il marketing virale.
Tesi: La comunicazione d'impresa e il marketing virale.Tesi: La comunicazione d'impresa e il marketing virale.
Tesi: La comunicazione d'impresa e il marketing virale.
 
Memoire la publicité programatique mobile et le rapport marque consommateur ...
Memoire  la publicité programatique mobile et le rapport marque consommateur ...Memoire  la publicité programatique mobile et le rapport marque consommateur ...
Memoire la publicité programatique mobile et le rapport marque consommateur ...
 
THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...
THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...
THE BIG IDÉE, une vision de la big, strong, long, killer idea, dans le monde ...
 
Mémoire - L'éphémère et les réseaux sociaux
Mémoire - L'éphémère et les réseaux sociauxMémoire - L'éphémère et les réseaux sociaux
Mémoire - L'éphémère et les réseaux sociaux
 
Kodak
KodakKodak
Kodak
 
Mémoire Master 2 Celsa Irène Durand-Mille
Mémoire Master 2 Celsa Irène Durand-MilleMémoire Master 2 Celsa Irène Durand-Mille
Mémoire Master 2 Celsa Irène Durand-Mille
 
Mémoire de fin d'étude - ISCOM
Mémoire de fin d'étude - ISCOM Mémoire de fin d'étude - ISCOM
Mémoire de fin d'étude - ISCOM
 
samsung
samsung samsung
samsung
 
China VS France
China VS FranceChina VS France
China VS France
 
Presentation de Lego
Presentation de LegoPresentation de Lego
Presentation de Lego
 
North Face brand book
North Face brand bookNorth Face brand book
North Face brand book
 
Analyse de marque - Tecnifibre
Analyse de marque - TecnifibreAnalyse de marque - Tecnifibre
Analyse de marque - Tecnifibre
 
Copie Stratégique - Le Slip Français
Copie Stratégique - Le Slip FrançaisCopie Stratégique - Le Slip Français
Copie Stratégique - Le Slip Français
 
Dell marketing strategy @gd
Dell marketing strategy @gdDell marketing strategy @gd
Dell marketing strategy @gd
 
Redbull marketing
Redbull marketingRedbull marketing
Redbull marketing
 
Analysis Samsung with Five-Force Model and Protein Model
Analysis Samsung with Five-Force Model and Protein Model Analysis Samsung with Five-Force Model and Protein Model
Analysis Samsung with Five-Force Model and Protein Model
 
LA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANT
LA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANTLA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANT
LA COMMUNICATION 2.0 & LES MARQUES D’ALCOOL : UN COCKTAIL DÉTONANT
 
Babolat, vision stratégique
Babolat, vision stratégiqueBabolat, vision stratégique
Babolat, vision stratégique
 

Similar a Dell 2013 Hypothetical Marketing Plan

Dell Strategic Management Final Paper
Dell Strategic Management Final Paper Dell Strategic Management Final Paper
Dell Strategic Management Final Paper Sophie Yanez
 
Marketing strategy of dell
Marketing strategy of dellMarketing strategy of dell
Marketing strategy of dellNaveed Ul
 
Jose Corripio291725Section 1 18Section 2 5StyleCites.docx
Jose Corripio291725Section 1 18Section 2 5StyleCites.docxJose Corripio291725Section 1 18Section 2 5StyleCites.docx
Jose Corripio291725Section 1 18Section 2 5StyleCites.docxchristiandean12115
 
Business strategic management
Business strategic managementBusiness strategic management
Business strategic managementHasnizam Md Saad
 
Product strategy of Dell
Product strategy of DellProduct strategy of Dell
Product strategy of Dellpoorvavyas4
 
Environment Analysis, Consumer Segmentation, Market Research .docx
Environment Analysis, Consumer Segmentation, Market Research .docxEnvironment Analysis, Consumer Segmentation, Market Research .docx
Environment Analysis, Consumer Segmentation, Market Research .docxkhanpaulita
 
Kindle Fire Hdx Essay
Kindle Fire Hdx EssayKindle Fire Hdx Essay
Kindle Fire Hdx EssayRenee Jones
 
Dell case study aaaa
Dell case study aaaaDell case study aaaa
Dell case study aaaaAlaa Hameed
 
ADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell CaseADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell CaseEdna Gacheru
 
Integrating Marketing and BD into Everyones Job
Integrating Marketing and BD into Everyones JobIntegrating Marketing and BD into Everyones Job
Integrating Marketing and BD into Everyones JobDavid Blumentals
 
Strategic evaluation consultation document for dell company inc
Strategic evaluation consultation document for dell company incStrategic evaluation consultation document for dell company inc
Strategic evaluation consultation document for dell company incChathurangi Shyalika
 
Marketing report dell
Marketing report dellMarketing report dell
Marketing report dellMoeez Saleem
 
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docxRunning head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docxhealdkathaleen
 
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docxRunning head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docxtoddr4
 
E-Business "A Comparative Study on Dell Business Model"
E-Business "A Comparative Study on Dell Business Model"E-Business "A Comparative Study on Dell Business Model"
E-Business "A Comparative Study on Dell Business Model"Anit Thapaliya
 
Final assingment of startegic mgmt1
Final assingment of startegic mgmt1Final assingment of startegic mgmt1
Final assingment of startegic mgmt1Nazeer Ahammad
 

Similar a Dell 2013 Hypothetical Marketing Plan (20)

Dell Strategic Management Final Paper
Dell Strategic Management Final Paper Dell Strategic Management Final Paper
Dell Strategic Management Final Paper
 
Dell 2
Dell 2Dell 2
Dell 2
 
Marketing strategy of dell
Marketing strategy of dellMarketing strategy of dell
Marketing strategy of dell
 
Jose Corripio291725Section 1 18Section 2 5StyleCites.docx
Jose Corripio291725Section 1 18Section 2 5StyleCites.docxJose Corripio291725Section 1 18Section 2 5StyleCites.docx
Jose Corripio291725Section 1 18Section 2 5StyleCites.docx
 
Business strategic management
Business strategic managementBusiness strategic management
Business strategic management
 
Product strategy of Dell
Product strategy of DellProduct strategy of Dell
Product strategy of Dell
 
Environment Analysis, Consumer Segmentation, Market Research .docx
Environment Analysis, Consumer Segmentation, Market Research .docxEnvironment Analysis, Consumer Segmentation, Market Research .docx
Environment Analysis, Consumer Segmentation, Market Research .docx
 
Dell Inc.
Dell Inc.Dell Inc.
Dell Inc.
 
Kindle Fire Hdx Essay
Kindle Fire Hdx EssayKindle Fire Hdx Essay
Kindle Fire Hdx Essay
 
JaswiecP_P.Paper.MBA
JaswiecP_P.Paper.MBAJaswiecP_P.Paper.MBA
JaswiecP_P.Paper.MBA
 
Dell case study aaaa
Dell case study aaaaDell case study aaaa
Dell case study aaaa
 
ADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell CaseADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
 
Integrating Marketing and BD into Everyones Job
Integrating Marketing and BD into Everyones JobIntegrating Marketing and BD into Everyones Job
Integrating Marketing and BD into Everyones Job
 
Strategic evaluation consultation document for dell company inc
Strategic evaluation consultation document for dell company incStrategic evaluation consultation document for dell company inc
Strategic evaluation consultation document for dell company inc
 
Marketing report dell
Marketing report dellMarketing report dell
Marketing report dell
 
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docxRunning head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
 
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docxRunning head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
Running head BUSINESS ADMINISTRATION CAPSTONE 1BUSINESS ADMINI.docx
 
E-Business "A Comparative Study on Dell Business Model"
E-Business "A Comparative Study on Dell Business Model"E-Business "A Comparative Study on Dell Business Model"
E-Business "A Comparative Study on Dell Business Model"
 
Ism
IsmIsm
Ism
 
Final assingment of startegic mgmt1
Final assingment of startegic mgmt1Final assingment of startegic mgmt1
Final assingment of startegic mgmt1
 

Dell 2013 Hypothetical Marketing Plan

  • 2. Hypothetical Marketing Plan 2013 Dell, Inc. 1 Contents Executive Summary........................................................................................................................ 3 Company Overview ........................................................................................................................ 4 History......................................................................................................................................... 4 Business....................................................................................................................................... 4 Competitive Overview.................................................................................................................... 5 Industry Analysis......................................................................................................................... 5 SWOT Analysis........................................................................................................................... 7 Strengths...................................................................................................................................... 7 Weaknesses ................................................................................................................................. 9 Opportunities............................................................................................................................. 10 Threats....................................................................................................................................... 10 Marketing Objectives.................................................................................................................... 11 Marketing Goals........................................................................................................................ 11 Target Market............................................................................................................................ 11 Competitive Advantages ........................................................................................................... 12 Positioning Statement................................................................................................................ 12 Promotional Plan: “Double Your Vision”..................................................................................... 12 Advertising................................................................................................................................ 12 Personal Selling......................................................................................................................... 13 Public Relations......................................................................................................................... 13 Sales Promotion......................................................................................................................... 14 Direct Marketing ....................................................................................................................... 15 Media Schedule and Cost.......................................................................................................... 15 Advertising & Promotion – “Double Your Storage Sale”..................................................... 16 Advertising & Promotion – “Start Seeing Double Sale”....................................................... 16 Personal Selling – Presentations............................................................................................ 16 Direct Marketing – Presentation Scheduling......................................................................... 17 Public Relations – “Double Your Success” Project .............................................................. 17 Conclusions................................................................................................................................... 17 References..................................................................................................................................... 18
  • 3. Hypothetical Marketing Plan 2013 Dell, Inc. 2 Appendix: “Double Your Vision” Concepts.................................................................................... i “Double Your Vision” TV Ad: Live-Action Scene...................................................................... i “Double Your Vision” TV Ad: Animated Frame 1 ....................................................................ii “Double Your Vision” TV Ad: Animated Frame 2....................................................................iii “Double Your Vision” TV Ad: Animated Final Frame ............................................................. iv “Double Your Vision” TV Ad: Script (45-60 seconds)............................................................... v “Double Your Storage” Sales Promotion................................................................................... vi “Start Seeing Double” Sales Promotion....................................................................................vii
  • 4. Hypothetical Marketing Plan 2013 Dell, Inc. 3 Executive Summary Dell has recently entered the burgeoning industry of tablet computing by introducing the XPS 10 and Latitude 10 devices. This report contains an integrated marketing communications plan intended to improve awareness, market penetration, and sales of those tablet computers. The target market for these devices will include ultimate consumers and organizational buyers who desire a mobile computer with robust productivity and entertainment features. The target customers will be located in these countries with large professional workforces: Canada, the U.S., China, India, Japan, Malaysia, Singapore. Combining the key product attributes with the target market segment, we arrive at the following positioning statement for the Dell XPS 10 and Latitude 10 tablets: “Dell XPS and Latitude tablet computers double as productivity kits and entertainment centers for value-conscious professionals and students.” The measurable marketing objectives of this plan are:  Increased tablet market share 4% by January 1, 2014  Increased tablets sold 100% by January 1, 2014 Strategically, the promotional objectives of this plan are:  Increased awareness of Dell tablets and educate target customers about the dual productivity and entertainment benefits of these products.  Incentivized and increased sales of Dell tablets to those target customers. Tactically, these objectives will be accomplished through combined use of advertising, sales promotion, personal selling, direct marketing, and public relations. The plan will be implemented from May through December of 2013. Each promotional element will be deployed at strategic times in order to maximize consumer interest and sales.
  • 5. Hypothetical Marketing Plan 2013 Dell, Inc. 4 Company Overview History Founded in 1984 by current CEO Michael Dell, the company originally named PC’s Limited quickly outgrew its operating space in Dell’s university dorm room. Owing to various private investments and a fluid business model, the company’s expansion continued. The name was changed to Dell Inc. prior to its initial public offering in 1988. Only four years later, the rapid ascent of the firm was confirmed when it debuted on the Fortune 500. Sales of Dell’s offerings skyrocketed after it launched its e-commerce website another four years later. Dell’s innovations in direct marketing were undeniably rewarded when, in 2001, the company became the number one worldwide provider of computer systems. Dell has since slipped from that position but is now holding its ground at third place. Business Dell is a computing and information technology provider with product and service offerings in various subcategories of those two industries. Organizationally, Dell is a holding company that operates through subsidiaries segmented into the following operational units: Large Enterprise, Public, Small and Medium Business, and Consumer. Throughout much of its history, Dell principally focused on direct marketing to ultimate consumers and organizational buyers. The strategy involved collecting information about the customer’s expected needs, assembling computers to meet those needs, then selling those computers directly to the customer. Dell has broadened this strategy to include retail distributors but the company remains focused on providing customized solutions to consumer needs. In the early 2000’s, Dell began aggressively expanding its B2B operations into enterprise computing worldwide. It now offers both hardware and software solutions to meet the computing and IT needs of other firms. Even
  • 6. Hypothetical Marketing Plan 2013 Dell, Inc. 5 more recently, Dell entered the tablet computing industry. As with its other hardware, Dell aims to target its tablet computers to both ultimate consumers and organizational buyers in households, academic institutions, nonprofit organizations, and businesses of all sizes. Competitive Overview Industry Analysis The modern tablet computing industry was born from the launch of the Apple iPad in 2010. As such, the industry is still young and its market is full of growth opportunity: both consumer and organizational demand for tablets is increasing (PR Newswire, para. 1). Ultimate consumers seem primarily attracted to tablets for their entertainment possibilities. Organizational buyers seem primarily attracted to tablets for their productivity possibilities. Furthermore, the low relative cost of tablets versus laptop and desktop computers appeals to both types of customers (SpirE-Journal, p. 2). Despite being dominated by a mere two Apple products, the profit potential for the tablet market has attracted several manufacturers. Most of those firms are already direct competitors with Dell in other hardware and software markets. These competitors include Samsung, HP, and Lenovo. Each company offers at least two products that compete directly with those of Dell. Four of the most similar product offerings are analyzed below.
  • 7. Marketing Plan 2013 Dell, Inc. 6 Competitive Analysis (Template courtesy of Marketing Sherpa Blog) Dell Lenovo HP OVERVIEW: Dell offers two Windows tablets, the XPS 10 (Windows RT) and the Latitude 10 (Windows 8). They offer low to mid-cost computing, mid-range quality, and many customization options. OVERVIEW: Lenovo offers two Windows 8 tablets, the ThinkPad Tablet 2 and the IdeaTab Lynx. They offer low to mid-cost computing and mid-range quality. OVERVIEW: HP offers two Windows 8 tablets, the ElitePad 900 and the ENVY x2. They offer mid-cost computing and mid-range quality. Additional value: Dell tablets offer many configurations & thus price tiers. The XPS 10 is pre-loaded with MS Office apps and can be bundled with a docking keyboard featuring an integrated battery. Additional value: The IdeaTab Lynx is designed to dock with an optional multiport keyboard with integrated battery, simulating a true laptop. Additional value: The ENVY x2 is designed and sold with an attachable multiport keyboard simulating a true laptop. Details: XPS 10: 10.1” HD Display; 1366x768 Max Resolution; 1.5 GHz Qualcomm Snapdragon S4 CPU; 2 GB DDR2 RAM; 32-64 GB SSD; 720P Front Camera; 5MP Rear Camera Latitude 10: 10.1” HD Display; 1366x768 Max Resolution; 1.8 GHz Intel Atom CPU; 2 GB 800 MHz DDR2 RAM; 64-128 GB SSD; 720P Front Camera; 8MP Rear Camera Details: ThinkPad Tablet 2: 10.1” HD LED Display; 1366x768 Max Resolution; 1.8 GHz Intel Atom CPU; 2 GB DDR2 RAM; 64 GB SSD; 720P Front Camera; 8MP Rear Camera IdeaTab Lynx: 11.6” Display; 1366x768 Max Resolution; 1.8 GHz Intel Atom CPU; 2 GB DDR2 RAM; 64 GB SSD; 720P Front Camera Details: ElitePad 900: 10.1” Display; 1280x800 Max Resolution; 1.8 GHz Intel Atom CPU; 2GB 533 MHz DDR2 RAM; 64 GB SSD; 1080P Front Camera; 8MP Rear Camera ENVY x2: 11.6” LED Display; 1366x768 Max Resolution; 1.8 GHz Intel Atom CPU; 2 GB DDR2 RAM; 64 GB SSD; 1080P Front Camera; 8MP Rear Camera Manufacturer Price: (Without Accessories) XPS 10: ≥ $450 Latitude 10: ≥ $580 Manufacturer Price: (Without Accessories) ThinkPad Tablet 2: ≥ $660 IdeaTab Lynx: ≥ $470 Manufacturer Price: (Without Accessories) ElitePad 900: ≥ $700 ENVY x2: ≥ $650
  • 8. Marketing Plan 2013 Dell, Inc. 7 SWOT Analysis Earlier this year, CEO Michael Dell announced a $24.4 billion private buyout of the company, led by a consortium of investors that included Mr. Dell, Microsoft, and private equity firm Silver Lake Management. In light of this development, our marketing team chose to contemplate the operational future of Dell by comparing recently compiled pre-buyout SWOT analyses and revising them by incorporating projected and potential consequences of the buyout. Two such analyses, prepared in late 2012 by MarketLine and Global Data, were accordingly consulted for perspective during the preparation of this report. Strengths:  Ongoing operational efficiency.  Strong investment in the burgeoning enterprise computing market.  Freedom from quarterly pressure and scrutiny of shareholders. Weaknesses:  Massive debt from leveraged buyout.  Slipping control of consumer PC market share.  Several risky acquisitions from the past few years. Opportunities:  Continued growth of enterprise and tablet hardware markets.  Demand for recently acquired enterprise computing software. Threats:  Continually shrinking consumer PC market.  Tight competition in the enterprise and tablet computing markets.  Greater financial strength of competitors. Strengths Although the massive sale of Dell implies optimism on the part of its buyers, the purchase constitutes a considerable gamble and raises questions about the long-term growth of the company. Nevertheless, it returns to private ownership with several assets in hand. Statistics aggregated by Global Data indicate that Dell’s operating efficiency has most recently been increasing. While the company’s operating income increased by 26.42% (from $3,505m to
  • 9. Marketing Plan 2013 Dell, Inc. 8 $4,431m) between fiscal 2011 and 2012, its net profits also increased by 32.52% (from $2,635m to $3,492m) during the same period (2012, p. 2). Dell’s long history of effective supply chain management is one reason for this advantageous stance (Blanchard, p. 45). Dell’s considerable market share and diverse product portfolio are additional testaments to its history of astute long-term investment strategies. That portfolio extends well into the enterprise computing market—an industry focused on providing networking, computing, and storage solutions to businesses—which is projected to grow worldwide at a greater pace than the consumer PC industry. For instance, according to research group MarketLine, Dell already commands the third largest share of the worldwide server market (2012, p. 4). In the final quarter of 2012, the company held its rank as third largest PC manufacturer, retaining 11% of the market (Nuttall, p. 19). Dell willingly relinquished some of that market in the fourth quarter, in order to focus on investments in both enterprise and tablet computing (ibid.). In late 2012, Dell released two tablets to coincide with the unveiling of Microsoft’s Windows 8 operating system. Those tablets are the subject of this marketing plan. Even before the buyout, the future fortunes of Dell and Microsoft were entwined, since both companies are currently dependent upon Windows, its related software, and the hardware used to host it (Dell, para. 3). Despite introducing its own tablet to the market, Microsoft CEO Steve Ballmer has indicated his company’s strong support for other device manufacturers (“Original Equipment Manufacturers” or “OEM”) bundling those devices with Windows RT and Windows 8 (Pontin, para. 17). Possible plans for shared ventures help to explain the investment of Microsoft in Dell (Nuttall, p. 19). The latter’s return to private ownership will grant its management tremendous latitude to restructure the company’s resource and labor networks, as well as the firm’s portfolio of products and services. Absent the pressure and scrutiny of shareholders, Dell is expected to
  • 10. Marketing Plan 2013 Dell, Inc. 9 devote greater time and energy to developing and testing products and services for lucrative markets like enterprise-level networking, computing, and storage (Ricadela & Burrows, p. 1). Weaknesses The unmistakable elephant in the room for Dell is the $17 billion debt that will inaugurate the company’s return to private ownership (Ricadela & Burrows, p. 1). This debt constitutes a considerable risk on the part of the investing consortium. With an absence of liquidity and lender confidence in the company low, Dell will likely need to make do with the resources currently at its disposal (ibid.). Leveraging those resources effectively enough to slough off the onus of massive interest will be necessary to maintain and enhance the long-term competitiveness and profitability of the company. Even without public shareholders shaking pitchforks, Dell will need to demonstrate significant innovation and generate substantial revenue to retain its industry influence and relevance. Although it has recognized the declining consumer PC market as a potential liability, and has strategically withdrawn from the lowest-budget segment of that market, this decision marks a begrudging exodus from an ailing industry in which Dell has historically proven expert (Nuttall, p. 19). Furthermore, the diaspora involves moving into fertile but less familiar territory that is already crowded by wealthy competitors. Dell, and the investors backing it, can only hope to capitalize on the firm’s recent purchase of companies with connections to the enterprise computing industry. One such example is Quest, a provider of IT software, which Dell acquired for $2.4 billion in July of 2012. In addition, both Microsoft and Dell must find markets within which to effectively leverage the Windows 8 platform. Thus far, at least in the U.S. consumer market, Windows 8 tablet sales have been alarmingly slow but that trend could change as more device manufacturers embrace the OS (Bass, p. 1).
  • 11. Marketing Plan 2013 Dell, Inc. 10 Opportunities In the area of computing, the popularity and sales of tablets remain strong, and Microsoft shows no signs of abandoning its promotion of Windows 8 for use on those devices. Both companies are well-positioned to capitalize on the growth of the enterprise tablet computing market, where the hand-held devices typically offer a lower cost mobile alternative to laptop and desktop computers. As previously noted, future hardware-software partnerships between Microsoft and Dell are expected by analysts. Those expectations extend beyond B2C to B2B models, particularly in the development of software created by the companies that Dell purchased prior to the firm’s buyout. Quest Software, Gale Technologies, and Clerty Solutions are just a few of the many acquisitions that Dell will need to effectively leverage in order to profitably emerge from their self-imposed sequestration. Threats Many spectators believe that Dell’s announced buyout is a calculated reaction to the decline of the firm’s core historical market, consumer PCs. This is undoubtedly true but the firm still has several “cash cow” products positioned in that market, meaning that both slumping market sales and shifting product focus threaten to reduce the firm’s revenues. Looking elsewhere, the two principal markets of opportunity for Dell, tablet and enterprise computing, are characterized by ferocious competition among powerfully positioned contenders. Even without the iPad in the equation, Microsoft and Dell must fight to convince many iOS- and Android- accustomed smartphone-users that Windows 8 is the OS they should be running on their tablets. Dell must also compete with the other top IT suppliers—most notably Hewlett Packard, IBM, and Oracle—and numerous startups for a significant share of the enterprise computing market (Ricadela & Burrows, p. 1). Many of those competitors are better positioned financially to
  • 12. Marketing Plan 2013 Dell, Inc. 11 explore the waters. Dell’s margin for strategic error, on the other hand, is slim. Since it will soon become weighted by debt, if Dell takes a calculated plunge but finds itself in too deep to resurface, it’s unclear who (if anyone) could or would risk diving in to rescue the firm. Marketing Objectives The launch of the dual solution Dell XPS 10 and Latitude 10 tablets provide a tool for consumers that moves from a production focus to an entertainment center. Providing an increased awareness and education of the benefits of the Dell tablets to both the consumer and organizational buyer will lead to an increased sales in current markets while expanding into the new market of entertainment based technology. New products will be introduced as accessory based items such as the Productivity Dock. Marketing Goals This marketing plan aims to achieve the following goals:  Increase tablet market share 4% by January 1, 2014  Increase tablets sold 100% by January 1, 2014 Target Market The target market for XPS 10 and Latitude 10 tablets will include ultimate consumers and organizational buyers who desire a productivity tool for work and/or school that also provides flexible entertainment options for leisure use. The target customers will be located in these countries with large professional workforces: Canada, the U.S., China, India, Japan, Malaysia, Singapore. Collectively, these countries will hereafter be referred to in this report as the “key regions.”
  • 13. Marketing Plan 2013 Dell, Inc. 12 Competitive Advantages  Over a decade of computer hardware manufacturing experience and expertise  Highly efficient supply chain that enables high quality and low cost  Long and consistent history of product reliability and support Positioning Statement Dell XPS and Latitude tablet computers double as productivity kits and entertainment centers for value-conscious professionals and students. Promotional Plan: “Double Your Vision” Dell will use an integrated marketing communications plan to increase awareness about the benefits of the XPS 10 and Latitude 10 tablets. This promotional plan is entitled “Double Your Vision,” and it is designed to communicate the uses, costs, and overall value of each tablet to customers. The objectives and elements of the promotional plan are as follows:  Increase awareness of Dell tablets and educate target customers about the dual productivity and entertainment benefits of these products.  Incentivize and increase sales of Dell tablets to those target customers. Advertising One TV commercial (see Appendix pp. i-v) will target domestic and international organizations on major news cable channels. In this context, the commercial will appeal to government, nonprofit, and enterprise organizations. This same TV commercial will be aired on popular entertainment channels targeting consumers in the key regions. In this context, the commercial will appeal to middle-class, cosmopolitan buyers interested in a tablet device for both work and play.
  • 14. Marketing Plan 2013 Dell, Inc. 13 Personal Selling Education of consumers will continue through on-site personal selling. Following a telephone campaign (see Direct Marketing below), Dell sales agents will target medium to large organizations in the key regions, in order to provide on-site presentations and follow-up conversations tailored to the prospective buyers’ needs. Presentations will last between thirty and sixty minutes, depending on the needs of the audience. The campaign will run from June through December, in tandem with the direct marketing campaign. Public Relations Following the acceptance of this plan item, the market research team will determine the two largest cities in the key regions with the greatest potential for market share and sales. Team will then select one middle-class middle school in the higher ranking city, then one middle-class elementary school in the lower ranking city. One academic class will be selected in each school. Dell will then provide free Latitude 10 tablets to the instructors and students in those classes from August through October. The project would be called “Double Your Success” or something similar, and could carry the slogan: two classes, two tablets, too many possibilities. Dell will issue a press release announcing the move beforehand, in hopes of generating additional media coverage. Some additional promotional materials may be prepared at minimal cost. Dell will then document the ways in which the students and instructors use the tablets and feed positive findings to journalists as they come to light. This strategy is intended to encourage wider adoption in education and government, while maximizing public interest prior to the “Start Seeing Double Sale” in November. Dell could implement a similar strategy for businesses, without providing the tablets free of charge. In any case, Dell should encourage organizational
  • 15. Marketing Plan 2013 Dell, Inc. 14 buyers to document their uses of the tablets and share their findings with Dell. As positive findings become available, the marketing team would pass them to journalists. Sales Promotion Dell will initiate two sales promotions as part of this marketing plan. The first will be entitled the “Double Your Storage Sale.” The terms: “Buy any 32GB Dell tablet and get twice the storage capacity free.” The sale will run across the key regions from August 1st to 31st , in order to leverage increased consumer spending during back-to-school season. Advantages to this sale include: requires low relative cost to both supplier and consumer; generates awareness of product and selective demand; rapidly increases market share; timed for maximum impact. A concept image for this sale is contained on page vi of the Appendix. The second promotion will be entitled the “Start Seeing Double Sale.” The terms: “Buy any Dell tablet and get a second tablet half off.” The sale will run across the key regions from November 1st to 30th , in order to leverage increased consumer spending during the winter holiday season. It is particularly intended to attract customers before Black Friday, which creates an abundance of buying options for consumers. Advantages to this sale include: requiring greater consumer commitment; offering twice the market penetration per sale; potentially exposing younger generations (children of customers) to the Dell brand and tablet experience; timed for maximum impact. A concept image for this sale is contained on page vii of the Appendix. In addition to Dell’s in-house initiatives, the marketing team will monitor competitors with comparable brand equity and product value (e.g., HP, Lenovo, and Samsung). The team will observe their promotions, prices and benefits, then provide Dell tablet configurations that both match and exceed the value of competing devices. The goal in pricing is to convey the perception that Dell provides both quality and affordability.
  • 16. Marketing Plan 2013 Dell, Inc. 15 Direct Marketing A telephone campaign will be targeted to organizational buyers in the key regions. This campaign will indicate the benefits of the product line to organizations and offer an on-site presentation tailored to the organization’s specific needs (see Personal Selling above). Calling will occur daily or weekly depending upon the available budget and response rate of leads contacted. The campaign will parallel the personal selling campaign and from June through December. Media Schedule and Cost Projected budgeting for the Double Your Vision promotion campaign will be based upon Dell’s total 2012 marketing budget. That amounted to $860 million. Assuming that the company has the same budget to work with in 2013, the promotional budget might be divided according to the relative importance of each market to the overall strategy of the company. Our proposed division of resources is as follows:  35% - Tablets  40% - Enterprise  25% - Personal Computers This means that $300 Million would be dedicated to tablet promotion for 2013, the subject of this marketing plan. However, only two-thirds of the year remains for implementation, so we will accordingly allocate only $200 Million. Further division of that budget must be determined for each promotional element. By order of cost, the greatest proportion of the budget should be assigned to: (1) Advertisements; (2) sales promotion; (3) personal selling; (4) direct marketing; and (5) public relations. The tactical details of each promotional element are explained below.
  • 17. Marketing Plan 2013 Dell, Inc. 16 Advertising & Promotion – “Double Your Storage Sale” Months: August 2013 Frequency: Varied based on the TV channel and programming Length of Spot: 45-60 seconds Terms: “Buy any 32GB Dell tablet and get double the storage free.” Locations: Key Regions Estimated Cost: Advertisement $35 Million; Promotion $40 Million Total Estimated Cost: $75 Million Advertising & Promotion – “Start Seeing Double Sale” Months: November 2013 Frequency: Varied based on the TV channel and programming Length of Spot: 45-60 seconds Terms: “Buy any Dell tablet and get a second half off.” Locations: Key Regions Estimated Cost: Advertisement $35 Million; Promotion $60 Million Total Estimated Cost: $95 Million Personal Selling – Presentations Months: June – December 2013 Frequency: Varied based on direct marketing campaign and trade shows Length of Presentation: 30-60 minutes Locations: Chosen by customer or trade show organizer Total Estimated Cost: $20 Million
  • 18. Marketing Plan 2013 Dell, Inc. 17 Direct Marketing – Presentation Scheduling Months: June – December 2013 Frequency: Daily or weekly based on allocated budget and response rate Length of Call: 15 seconds to 15 minutes Locations: Key Regions Total Estimated Cost: $7 Million Public Relations – “Double Your Success” Project Months: August – October 2013 Frequency: Varied based on the TV channel and programming Estimated Number of Devices: 50-60 Locations: Two targeted schools in cities with greatest market and sales potential Total Estimated Cost: $3 Million Conclusions Only through proper execution of this plan can the soundness of its strategy be logically evaluated. That strategy entails raising consumer awareness of Dell tablets and their potential for both productivity and entertainment. Success of the marketing plan will be measured using market share and sales metrics, in order to track the progress of the marketing objectives. The perception of value is essential to Dell in all its products and services but is particularly crucial in the hyper-competitive industry of tablet computing. Dell has built a brand synonymous with usability and affordability. The XPS 10 and Latitude 10 tablets exemplify those virtues, and this marketing plan will effectively communicate that fact to prospective customers.
  • 19. Marketing Plan 2013 Dell, Inc. 18 References Bass, D (2013, February 4). Microsoft sees tablet shortfall reversing with new spring models. Bloomberg News. Retrieved from http://www.bloomberg.com/news/2013-02-04/microsoft-sees-tablet- shortfall-reversing-with-new-spring-models.html. Blanchard, D (2012, November). Dell taps into innovation to reach emerging markets. Industry Week, 45. Retrieved from Business Insights: Essentials. Web. Burstein, D (2012, May 8). How to Write a Competitive Analysis (with 3 free templates). Marketing Sherpa Blog. Retrieved from http://sherpablog.marketingsherpa.com/research-and- measurement/competitive-analysis-tools/. Company Profile: Dell, Inc. (2012, September 24). MarketLine. Retrieved from Business Insights: Essentials. Web. Dell, Inc: Financial and Strategic Analysis Review (2012, August 3). Global Data. Retrieved from Business Insights: Essentials. Web. Dell. Financial Times (2013, February 6), 12. Retrieved from Business Insights: Essentials. Web. Gelles, D. & Sender, Henny (2013, February 6). Founder's $24.4bn move for Dell is bold bid to revive dorm-room dream. Financial Times [London (UK)], p. 1. Retrieved from ProQuest Newsstand,ABI/INFORM Global. Web. Global Tablet Computers Market 2011-2015. PR Newswire (2012, March 14). Retrieved from http://www.prnewswire.com/news-releases-test/global-tablet-computers-market-2011-2015- 142599156.html. Nuttall, C (2013, February 6). PC old guard takes on new focus. Financial Times [London (UK)], p. 19. Retrieved from ProQuest Newsstand,ABI/INFORM Global. Web. Pontin, J (2013, February 20). Q+A Steve Ballmer. MIT Technology Review. Retrieved from http://www.technologyreview.com/featuredstory/511076/steve-ballmer-on-the-strategy-behind- his-strangest-product/. Ricadela, A. & Burrows, P (2013, February 6). After Dell’s buyout, company’s challenge is reviving business. The Washington Post. Retrieved from http://articles.washingtonpost.com/2013-02- 06/business/36939009_1_compellent-technologies-michael-dell-texas-based-computer-maker. The computer tablet industry: Overflowing with opportunities. SpirE-Journal 2012 Q3 (n.d.). Retrieved from http://www.spireresearch.com/spire-journal/yr2012/q3/the-computer-tablet-industry- overflowing-with-opportunities/.
  • 20. Marketing Plan 2013 Appendix Dell, Inc. i Appendix: “Double Your Vision” Concepts “Double Your Vision” TV Ad: Live-Action Scene
  • 21. Marketing Plan 2013 Appendix Dell, Inc. ii “Double Your Vision” TV Ad: Animated Frame 1
  • 22. Marketing Plan 2013 Appendix Dell, Inc. iii “Double Your Vision” TV Ad: Animated Frame 2
  • 23. Marketing Plan 2013 Appendix Dell, Inc. iv “Double Your Vision” TV Ad: Animated Final Frame
  • 24. Marketing Plan 2013 Appendix Dell, Inc. v “Double Your Vision” TV Ad: Script (45-60 seconds) (Commercial opens with Side L scrolling through The Wall Street Journal, and Side R scrolling through an elementary school report. All voices are heard from off screen via left speaker for Side L and right speaker for Side R.) Young Male Colleague (Side L): “Mr. Ramirez, the fourth quarter budget proposal is in the SkyDrive for you to review.” Ramirez (Side L): “Thanks, I’ll have my comments ready by tomorrow morning.” (Opens an Excel file and begins examining charts/data). Son (Side R): “Hey Dad, when you’re finished proof reading my report, can I play Angry birds?” Ramirez (Side R): “Actually, I just finished. I’m really proud of you, and I bet your teacher will be too. Now let’s see if you can beat my new high score.” (Ramirez opens Angry Birds while footsteps approach. Small hands reach over to take the tablet as Side R widens left cover the full screen. Female narrator begins speaking while son plays game). Narrator: “Dell and Microsoft want to double your tablet’s potential. At work or at play, with Dell’s new line of tablet computers, you get the best of both worlds. Twice the vision, Twice the value (“Work2 /Play2 ” phrase hovers on screen, then blurs into “Capability2 /Possibility2 . Dissolves to Dell “Tablets2 ” logo). Isn’t it time you started seeing double? (“Double Your Vision” slogan dissolves in) Dell tablets…. Double your vision.”
  • 25. Marketing Plan 2013 Appendix Dell, Inc. vi “Double Your Storage” Sales Promotion
  • 26. Marketing Plan 2013 Appendix Dell, Inc. vii “Start Seeing Double” Sales Promotion