The rise and fall of the Dell empire2Founded in 1984 #5 by the end of 2012#1 PC maker1999-2005
3Dell was ranked #1 in the PC market in 1999…Pioneered masscustomization ofPCs. Consumerscould select from amenu of featuresto create their ownDell.Great customerservice withdomestic callcenters.High quality andworth the price.Dell was a goodvalue for yourmoney.
4…by December 2012, it had dropped to #5Battery RecallDecreasedConfidence in QualityNo longer higherquality than other PCmanufacturers.Battery recall in 2006due to overheating,resulting in fires insome instances.Corporate vs.ConsumerFocusDell invested tooheavily in B-to-B ITsupply at theexpense of their B-to-C modelOutsourcing ofWinning CustomerServiceMoved customerservice call centerto India anddeterioration ofservice.
Instead of creating new trends, Dell isnow a “me too” brand5User ExperiencePrice
6In just one year, Dell experienced adecline across all former strengthsSource: BAV05101520253035Overall Perceived Value Attributes, Customer Service Elements,Innovation & ProgressDell, USA, All Adults 2011, 201220112012
Who are the millennials?69% of millennials consider acompany’s social andenvironmental commitmentwhen deciding where to shop79% are more likely topurchase from a socially-conscious company.• Living in uncertain future• Inherited less than what their parents had• Aspire to make opportunities• Driven to “show the world what I can do”• Empowered by technology as way of life
Dell can grow eco-friendly millennials35% of young adults puttheir old computers instorage, closet, or underthe bed.Only 20% recycle.
To millennials, Dell’s energizeddifferentiation lags behind competitors10Source: BAV
To millennials, Dell is the socially-consciouscomputer manufacturer that creates powerful andeco-friendly tablets and laptops that allow youngpeople to show their concern for the planet and feelgood about their purchase.New positioning statement12
Now introducing: Dell Solstice17• First comprehensive eco-friendlytablet• Made of all biodegradable parts,using clean energy• Provides ability to easily upgradeparts, including memory and harddrive, without buying a new tablet• No other competitor has a productlike this• Builds brand loyalty for millennials,who will continue to use samedevice
Motivated by romance, people desireways to show off eco-friendlinessGriskevicius, Miller, et al. (2007) Journal of Personality and SocialPsychology18• When thinking about an attractive guy, willingness to volunteer up 28%• When able to display benevolent action to others, up 24%WomenMen• When thinking about an attractive woman, conspicuousconsumption increases, not willingness to volunteer• In same context, desire to perform a heroic action increases
To allow people to display valued traits:Dell Shells19• Green – Purchase of New Solstice• Bamboo – Get One, Give One• Red – Act of Heroism: Deployment in ImpoverishedArea• Extra Distinction - Dell Leaf Logo in Gold
Keeping our environmental promise20The world generates 20-50 million tonsof electronic waste per year, nearly thesame amount as all plastic packaging, butmuch more hazardous.Most of e-waste dumped to developingcountriesNot only hazardous to environment, butalso to people’s healthFor the benefits of next generations, Dellwill innovate the computers that reducee-waste• Biodegradable• Recyclable
Plug-in components that can be reusedUpgrade computer elements instead ofreplacing the whole computerHard-disks, CPUs, memory cards, graphicscards, etc. can be easily un-plugged andupgraded.• Green• Economical -- Get a new appearancebut keep the data• High-performance -- Purchase multiplefaster CPUs to speed up• Portable -- Take key componentsanywhere you want.21
Donate your computer to its secondhome with your good wishesIs the PC market saturated and declining? Not really…In most low income countries, many people cannot afford acomputer. Lots of children do not even know what a computer lookslike.Donate computers to developing countries. Win-win-win• Social impacts• Environmental benefits• Brand marketing: build up brand awareness and brand image22051015202530Internet Users per 100 Persons, 2011 (low income countries)
Tracking your impact in real-timeDonors will receive tracking numbers for their computers so that theyknow where their computers’ new homes are.23Delivered onTuesday, 6/17/2013FromDell Recycling Center, Texas, USToDell Computer Lab, Primary Middle School, Dodoma, TanzaniaDell records the numbers of computers that have been recycled anddonated in real time.Recycled Donated1,257,354 543,332
Retail Stores: Create hands-on experiencesEducation on environmentalprotectionWhy is electronic waste harmful?Where does most of electronic wastego right now?What is Dell doing to protect ourenvironment?24Dell ExperienceDirect contact with the look and feelof Dell products.First-hand knowledge of Dell’scutting-edge technology andinnovations.
Website and Social Media: get themessage out• Introduce Dell’s innovations• Organize workshops and games• Sponsor Dell fans’ club and increase communications amongcustomers, e.g. sharing their donation stories on social media• Share stories about Dell’s products• Kids in a low-income family are sharing a Dell laptop to write a longemail to their father.• A shy girl is learning Samba from a video online.• A busy mom is working on her projects while monitoring her babiesthrough a Dell computer.25
Where Axe meets OxfamTV and online video advertising: girl approaches guy in coffee shop26Hey! How didyou get thatRed Dell Shell?In Africa I gave 40kids computers.(No big deal.)Sexy advertising: If you’re a real hero, then you did a deployment,and you scored the Red Dell Shell.
In-store kiosks27• Locate within energized brands such as• Get tech help on your product from a Dell Wizard• Sign up to go on Deployment trips• Recycle your electronics• Be rewarded with Dell Shells
Convert skeptical millennials with radicaltransparency28• Eliminated 20 million poundsof packaging waste in fouryears• 75% of packaging is recyclable• Bamboo cushioning inserts aresustainable and compostableLeverage past successesAlly with consumers inthe war on waste• Tracking codes for donations allow customers to follow theircomputer’s journey• Replaceable parts & refurbished machines let consumers feel likepart of the solution