2. Overview
Low cost player in global PC
Industry
Direct marketing
In 2001, revenue generated from
North America - US$18 billion
Europe – US$5.59
Asia – US$1.80
Market development as a strategy
was adopted
Standardized Business Model
adopted to enter new markets
Increasing demand was handled by
opening new plants
3. Just in time Inventory management
Customer service centre -Telephone
and online orders and technical
assistance
In Asia online orders rose from 20% to
40%
4.
5. Market Development
Developing a new market for the existing products and services of a
company
Market is developed on a geographic and demographic level
Expand into new market segments
Test marketing is extremely
critical
6. Saturation In
Existing Markets
Availability of
Availability of new ,
untapped inexpensive,
markets reliable
-J&J for Ageing distribution
people channels – Coke
in Vietnam
Drivers of
Market
development
High profit strategy Successful at
margins in new what a
markets – company does-
Jeans in Saudi Campbell Soup
Availability of
Basic Industry
surplus
going global –
resources –
Mittal Steel
Sime Derby
7. Key Considerations before going for Market Development
Market Standardization Customization
Characteristics
Dell Corporation
-Market Attractive?
-Can the business be
adapted?
-Evaluation of
uncertainties
8. Market Development & Dell
Dell’s Strategy All was not Well GL-OCAL???
• Plants nearer to the • Dell was perceived • New product
new markets differently in Asian development to
• Uniform supply Markets cater to new
chain processes • Direct online markets
across all locations marketing was a • Opening of retail
• Same products used failure outlets
• Direct Marketing
9. • Ikea in America • United Airlines entry into
China
• Whirlpool in Japan
• Tata and Bajaj exporting
• Walmart in Germany, Japan automobiles
• McDonalds initially in India • Polo Ralph Lauren’s expansion
into Japan through
acquisitions
• General Motors selling more
cars outside USA than home
