Environment Analysis, Consumer Segmentation, Market Research: Dell
Fundamentals of Marketing
Executive summary
This report aims to provide a broad study of the Dell Inspiron 5000 series Laptop and analysis of different marketing strategies/ methods which are used to assess an item. In this report consumer segmentation and attractiveness are explored to get better knowledge and understanding of consumer and this Dell product into the market. This will allow separate of customer gathering which will be useful for further investigation.
According to research, this report recognizes numerous key points about the Dell Inspiron laptop current standing in the market. Dell is in the technology field, which keeps changing every day. The interest in laptops have increased in the work field and for personal as well due advancement in technology compared to past. In addition, they targeted for youngsters who need more good looking and stylist laptop, also for professional who require more powerful in processing. Further study into the report will give more information about the research.
Recommendations:
· Dell could be more focused on inventing of new technology and fast processing product to stand into market and compete with competitors.
· Dell can conduct the survey of what consumers actually wanted or need in their laptops, so that they can develop in future.
· Dell can provide assistance to corporate client to help their customer in business processes and IT work. This would basically increase customer base.
Table of Contents
Executive summary3
Introduction5
Section 16
The Competitors8
Micro-Environment9
Other key players in the marketplace9
Macro-Environment11
Environmental factors influencing the company11
Section 213
Defining profile elements13
Justification of the Segmentation Base13
Segmentation Table14
Section 315
Size and Growth15
Structural Attractiveness15
Company Objectives and Resources15
Section 416
Additional Information16
Primary Research16
Research Design17
Conclusion18
Recommendations19
References20
Introduction
We Marketing group have been shortened by the Marketing managers for Dell Inspiron 5000 to conduct the analysis and review of this Dell product. Main purpose of this data report is to take item’s brand and sub brand into consideration and investigate into current labour market trend in both condition small scale and big scale. Different environment, consumer segmentation and attractiveness will be surveyed in this report.
Furthermore, personal suggestion will be given at the end of this report which will allow the company to look deep into it and enhance more sales and service which will result in more consumers.
One of the main limitation of this report is that because of limitation of time, we were not able to do survey of data by our own. Therefore, the data shown in this report is taken from publically available information.
Section 1
Dell is an American computer technology based company wh.
EPANDING THE CONTENT OF AN OUTLINE using notes.pptx
Environment Analysis, Consumer Segmentation, Market Research .docx
1. Environment Analysis, Consumer Segmentation, Market
Research: Dell
Fundamentals of Marketing
Executive summary
This report aims to provide a broad study of the Dell Inspiron
5000 series Laptop and analysis of different marketing
strategies/ methods which are used to assess an item. In this
report consumer segmentation and attractiveness are explored to
get better knowledge and understanding of consumer and this
Dell product into the market. This will allow separate of
customer gathering which will be useful for further
investigation.
According to research, this report recognizes numerous key
points about the Dell Inspiron laptop current standing in the
market. Dell is in the technology field, which keeps changing
every day. The interest in laptops have increased in the work
field and for personal as well due advancement in technology
compared to past. In addition, they targeted for youngsters who
need more good looking and stylist laptop, also for professional
who require more powerful in processing. Further study into the
2. report will give more information about the research.
Recommendations:
· Dell could be more focused on inventing of new technology
and fast processing product to stand into market and compete
with competitors.
· Dell can conduct the survey of what consumers actually
wanted or need in their laptops, so that they can develop in
future.
· Dell can provide assistance to corporate client to help their
customer in business processes and IT work. This would
basically increase customer base.
Table of Contents
Executive summary3
Introduction5
Section 16
The Competitors8
Micro-Environment9
Other key players in the marketplace9
Macro-Environment11
Environmental factors influencing the company11
Section 213
Defining profile elements13
Justification of the Segmentation Base13
Segmentation Table14
Section 315
Size and Growth15
Structural Attractiveness15
Company Objectives and Resources15
Section 416
Additional Information16
Primary Research16
Research Design17
3. Conclusion18
Recommendations19
References20
Introduction
We Marketing group have been shortened by the Marketing
managers for Dell Inspiron 5000 to conduct the analysis and
review of this Dell product. Main purpose of this data report is
to take item’s brand and sub brand into consideration and
investigate into current labour market trend in both condition
small scale and big scale. Different environment, consumer
segmentation and attractiveness will be surveyed in this report.
Furthermore, personal suggestion will be given at the end of
this report which will allow the company to look deep into it
and enhance more sales and service which will result in more
consumers.
One of the main limitation of this report is that because of
limitation of time, we were not able to do survey of data by our
own. Therefore, the data shown in this report is taken from
publically available information.
Section 1
Dell is an American computer technology based company which
develops different computer related products for business and
home use like tables, desktop, laptops, servers etc. Dell is well
4. known for their revolution in their supply chain and electronic
commerce.
A Tree diagram is provided in the below figure 1, shows the
scope of the industry in which the Dell is operating.
It can be seen that Dell is a tech company which develops the
numerous computer products and sell them worldwide.
As the use of portable electronic devices are increasing every
day, it became very difficult for every individual to finish their
tasks without them. Innovation in Mobile and tablet technology
leads the electronic companies number one companies in the
world. Laptop industry is expected to witness steady growth
over the coming period. (Grand view research, 2018). It can be
increase by increasing customer demand and public project in
developing countries.
The advancement in technology have created a lot of
competitors into the market, which become hard to keep up their
product into the market. In figure 2 shown below states that
between the year 2012 and 2016 laptop market share was getting
decrease as Tablet came out as a new electronic device which is
more portable then the laptop. People started accepting tablet
device to do their daily task such as doing presentation,
documents and many other stuffs. After the year 2016 there was
a growth in shipment of laptop and expected to rise in future.
Previously estimated suggest that laptop’s average selling price
have been dropped by 65% compared to year 2005. (Statista,
2018)
Most offices and employees are referring to use of laptop for
their workplace as it provides them more portability and they
can continue their work from home as well. There might be
5. problem for laptop industry because of mobile phone in future
years, in every season there are new and advanced mobile
variant getting launched.
Shipment forecast of tablets, laptop and desktop PCs worldwide
from 2010 to 2022 (in Million units)
Figure 2. forecast of tablets, laptop and desktop PCs
worldwideThe Competitors
There are number of competitors for Dell in the market. Lenovo
being on the top of the list among other competitors namely HP,
Acer, Asus according to LAPTOP Editors | April 20, 2018. But
the two key competitors for Dell in the market are Lenovo and
HP. Lenovo has been providing a wide range of products
ranging from premium laptops like ThinkPad X1 Carbon to
versatile laptops such as Yoga 92. However, there has been a
tough competition between HP, Lenovo and Dell, but the
customer reviews of Lenovo laptops have been impressive as
compared to the other two. Therefore, Lenovo holds a better
place in the market in terms of customer satisfaction.
On the other hand, HP like Lenovo, provides a variety of
gorgeous, powerful and affordable laptops with great designs
and a powerful customer support system. HP is a great laptop
manufacturer providing its customers the right fit for their
pocket as well as their work.
The following product comparison table confirms the place of
HP and Lenovo in Dell’s strategic group.
Lenovo, the no.2 computer making company, lacks overall
brand awareness and customer affinity when compared to its
competitors. Therefore, the focus of the company is to increase
its brand awareness among the customers and achieve the mark
of becoming a well-known brand world-wide. However, Lenovo
holds a strong market position in its home county, China as well
6. as in India and is providing its product and services to other
countries as well. The company is hiring new employees all
over the world with a variety of titles.
"The business is way ahead of the brand," Mr. Roman said.
"We're No. 2 in the industry; yet outside of key countries like
China and India, and outside of key markets like industrial, the
brand is not well-known. … There is a tremendous opportunity
for the brand to catch up." David Roman CMO, Lenovo (2012)
This implies that Lenovo is trying to grab a big market share in
many countries and spread brand awareness which could be
threat to Dell and other competitors.
Whereas, HP’s objective is to introduce new technologies into
the market and lead in those aspects particularly 3D printing.
The company is also investing in immersive computing
including virtual and augmented reality. This implies they are
investing more on innovation by aggressively pursuing growth
opportunities in graphic printing due to a shift from analog to
digital printing.
Therefore, it can be said that Lenovo’s strategy is to focus on
increasing its brand awareness and to spread its business and
possess a huge market share in countries other than China and
India. Whereas, HP is focusing on innovation and creating new
technologies which would provide the company an opportunity
to give an edge to its competitors in the market. It has been
investing loads of money in its innovation sector.
“The new highly innovative commercial 3D printing system is
poised to disrupt the 12 trillion industry”.
Hence, there is threat for Dell in the global market from HP as
it has been investing its money in innovation which might result
in HP possessing a huge market share by introducing new
technologies like commercial 3D printing system.
Micro-Environment
Other key players in the marketplace
7. Intermediaries helps a laptop manufacturer to sell, distribute as
well as promote its products to the final consumer. These
intermediaries play an important role of resellers by helping the
company to find customers who will buy their product and
making sales to them. Amazon is an important key player in the
marketplace not only for Dell but other companies like HP,
Lenovo, Asus and many others as well. Amazon provides a huge
platform for these companies to sell their product online via e-
commerce. It captures a high proportion of total sales in the
market for Dell laptops. Amazon plays a very crucial role in the
sale of Dell Inspiron 15 5000 over the internet. Therefore, any
brawl in the business relationship of Dell and Amazon would
have an adverse effect on the sales of Dell Inspiron 15 5000. If
Amazon refuses to sell Dell products, Dell would no longer be
able to sell its product online on such a large extent. Without
Amazon the sales would decline rapidly for Dell Inspiron 15
5000. Amazon, being one of the largest online stores could be
used to promote the product by providing bundle deals to the
customers and promoting the product by using pop-advertising
over the internet.
Macro-Environment
Environmental factors influencing the company
Section 2
Defining profile elements
Occupation status contributes to the possible reasoning for the
products purchase which links heavily to the product’s rate of
use. The occupation defines and gives a designation as to why
and possibly where the product will get most of its use. The rate
of use can not only be defined by one’s occupation but by how
much they would use it in their downtime. For instance, the 13-
18 age groups would use the product more in their downtime
much more than someone who is within the 50+ age
8. demographic due to social media presence for example. The
battery life of a laptop is a big deal when one utilizes the
products portability to its absolute maximum. Those who sit in
bed on their laptop/go to university/go to school will use it
more than workers away from a power outlet. Availability of
funds is directly tied to their employment status/occupation and
it defines how much money the demographic will have to spend
factoring other life expenses.
Justification of the Segmentation Base
The profile elements however would be useless if the
segmentation base failed to pass the ‘acid’ test which is defined
as a test which determines how each person can only fall into
one segment at a time. This is true here as a person evidently
can only be one age at a time. There are also five key aspects
which justify the segmentation base for profiling; the segments
need to be measurable, accessible, substantial, actionable and
distinguishable from each other.
Measurable means that the size and purchasing power of the
segments can be defined through means readily achievable by
the company, Dell. Age demographics can be measured through
the company via online surveys that define how old each
individual is, how often they use it or their occupation status.
Accessible means that the segments can be reached and served
by the company. The various ages can be exposed to the
marketing mix through various means of advertising via the
internet or television for example.
Substantial is defined as how profitable and large enough they
are which is easy to define due to such a large age
differentiation demographic which generates a large open
market in conjunction with an ever-growing dependency on
technology.
Actionable means that the company’s affective programs can be
9. designed for attracting and serving the segments. This is true
because each age group reacts to the technology differently
depending on their exposure and frequency of use within their
generation. Older age groups can be given various tutorials
upon the first boot of the computer for example.
Differentiable means that each segment has a consumer with
varying uses for the product, such as an 18-year-old university
student who requires more battery life for use inside a lecture.
Segmentation Table
Section 3
Size and Growth
The first segment, which is the age bracket of 13-18, is a fairly
profitable segment out of the four. This is because this bracket
is made up of students that will often use laptops for their
studies and education, as well as using it for social media. The
Dell Inspiron 15 5000 is placed at a very competitive price,
alongside its powerful specifications, making it a viable option
for the 13-18 age bracket. On the other end of the spectrum, the
30-49 age category is also a potential, profitable market. Within
this age group, funds are usually not as limited as they are
within the younger age brackets (e.g. 13-18), therefore there
will not be an issue in this sector. Someone in the 30-49 age
category may not be as mobile as a student and may spend more
time at a desk and therefore may opt for a more powerful laptop
and/or desktop, as they can plug this into the powerpoint and
have the ability to have greater power within the computer.
However, this is a viable option for someone that may need to
work from home, as well as coming into the office, and is
generally on the go.
10. Structural Attractiveness
The laptop/notebook market has a very large number of brands
and competitors, each targeting certain segments of the market.
Therefore, there is little variation in the ‘structural
attractiveness’ between the segments. Dell as a brand has
serious competition when it comes to their laptops primarily, as
most people are always on the move and require to do work
whenever. Dell is also required to compete against ‘trending’
brands such as Apple, as well as brands such as Lenovo, Acer,
and HP, which are all strong market share holders in the market.
Company Objectives and Resources
Dell’s current objectives are (Dell 2018):
“Delivering solutions that give back more than they take”
“Driving transparency, accountability and continuous
improvement”
“Reducing our impact and innovating to protect the planet”
Section 4
Additional Information
We need more information in order to understand what
influences the consumers to buy Dell Inspiron 15 5000 than
other products. In order to gather such information, we need to
ask the following questions:
· Which new specifications would attract consumers and will be
beneficial for them?
· Do the higher abilities of tablets, which can just act as a
laptop, influence consumer’s choice to buy Dell Inspiron 15
5000?
· Would the new advances that happen everyday in technology
influence consumer’s choice?
This information would be helpful for us as it will help us to
use the identified advantages to increase the sales, attract
consumers and increase the market share. It will also help us to
improve our marketing strategy by identifying what consumers
expect from Dell.
11. Primary Research
In order to gather this information on Dell laptop would be
through the assistance of focus groups. A focus group is a small
group with demographically diverse people. It is a form
research in which people are provided with an opportunity to
share insights, perceptions, opinions etc. in relation to a certain
product, service or idea/s.
This will further guide managers to perceive and identify
current customer needs, test new products and explore views on
the products and services associated with the brand. By
providing background information about the current market
trends supports to shape the overall marketing strategy by
exhibiting how consumers will react. This in turn eliminates
resources from being wasted and basically enhances the total
marketing strategy as they care able to model the project to
target consumers, who will buy their brand and ensure that
maximum effectiveness is achieved.
Advantages of using focus groups are:
· Its fast and inexpensive method to acquire data
· Members are given a chance to reflect what they feel about
that certain product or service or brand
· All members ask questions and other members can provide and
discuss on that topic which would produce valuable data
However, the disadvantages are:
· Group environment can sometimes not energize the discussion
or sometimes can over energize the discussion leading to too
less useful information or too much of information to analyse
· Record such discussions are difficult at times as its not clear
who is speaking and who isn’t
Research Design
Research design for focus groups would be a group discussion.
Participants would be given a topic or a certain product or
12. service or a brand to talk about. As the discussion goes on
researcher can note and analyse what do the consumers expect
from that product/service/brand. What is their response/reaction
to that product/service/brand and why is it? The sample size
would be a group of 6-8 participants of a demographically
diverse people.
Conclusion
To conclude, it can be seen that, Dell as one of the largest
producers of electronic devices faces a lot of competition in the
market due to the major advancements in technology.
From the report it can be analysed, how demographic, economic
and technological environment influence the organisation, why
is that particular trend occurring and what does that mean for
Dell’s marketing strategy.
The report has segmented users by age group, occupation status,
rate of use, need for battery life and availability of funds.
The above report also recommends focus groups as a primary
research method to collect useful data from consumers in order
to improve the company’s marketing strategy.
Recommendations
· Research needs to be structured in order to recognize the
requirements of a consumer and what consumers expect from
the company products.
· Company should stay up to date with modern day technologies
in order to attract consumers
· Pay attention to dell’s competitors to gain extra knowledge
about the market trends and consumer expectations.
· Dell should focus on inventing fast processing computers,
which can be proved helpful for corporate industry.
13. References
Perry, J.K 2016, “Technology has advanced so rapidly that a
laptop computer today is 96% cheaper than a 1994 model and
1,000X better”, AEIdeas, viewed 1 October 2018,
<http://www.aei.org/publication/technology-has-advanced-so-
rapidly-that-a-laptop-computer-today-is-96-cheaper-than-a-
1994-model-and-1000x-better/>.
“Advantages and Disadvantages of Focus Groups”, Universal
Teacher, viewed 3 October 2018,
<http://universalteacher.com/1/advantages-and-disadvantages-
of-focus-groups/>.
“Focus Group”, Social Research Centre, viewed 3 October
2018, <https://www.srcentre.com.au/research-
participants/focus-group-and-interview-participants>.
“HP Pavilion X360 14-BA125TU 14” FHD Touch Intel Core i5
Laptop”, Centre.com, viewed 2 October 2018,
<https://www.centrecom.com.au/hp-pavilion-x360-14-ba125tu-
14-fhd-touch-intel-core-i5-laptop>.
“Laptop Marketing Analysis, Market Size, Application,
Analysis, Regional Outlook, Competitive strategies and
Forecasts, 2015 to 2022”, Grand View Research, viewed 4
October 2018,
<https://www.grandviewresearch.com/industry-analysis/laptop-
market>.
“Shipment forecast of tablets, laptops and desktop PCs
worldwide for 2010 to 2022 (in million units)*, statista, viewed
4 October 2018,
<https://www.statista.com/statistics/272595/global-shipments-
forecast-for-tablets-laptops-and-desktop-pcs/>.
14. 2018, “Inspiron 15 5000”, Dell, viewed 2 October 2018,
<https://www.dell.com/en-au/shop/cty/pdp/spd/inspiron-15-
5570-
laptop/a511051au?oc=a511051au&VEN1=sZaHNRY0l,1045351
14913,9011547612,c&ST=&pdv=c&VEN2=,&dgc=st&dgseg=dh
s&cid=238119&lid=23414&acd=10589238119234140&VEN3=1
12104513487419103>.
2018, “ThinkPad E480”, Lenovo, viewed 2 October 2018,
<https://www.lenovo.com/au/en/laptops/thinkpad/thinkpad-
edge/ThinkPad-E480/p/22TP2TEE480>.
2016, “Core, Growth, Future: HP’s three pillars of success” HP,
viewed 4 October 2018,
<https://www8.hp.com/us/en/hp-labs/innovation-journal-
issue5/three-pillars.html)>.
CONSUMER
ELECTRONICS
COMPUTERSTABLETS SMARTPHONES
LAPTOP/NOTEBOOK DESKTOP
WINDOWS MACOS
BUSINESSLAPTOP
PERSONAL/HOME
15. LAPTOP
LAPTOP ULTRABOOK 2IN1LAPTOP NOTEBOOK
CONSUMER
ELECTRONICS
COMPUTERS
TABLETS
SMARTPHONES
LAPTOP/NOTEBOOK DESKTOP
WINDOWS
MACOS
BUSINESSLAPTOP
PERSONAL/HOME
LAPTOP
LAPTOP ULTRABOOK
2IN1LAPTOP
NOTEBOOK
P Dell Inspiron 15
5000
Lenovo ThinkPad
E480
HP Pavilion X360
Product 15.6” laptop
delivering an
exceptional viewing
experience with
16. battery life up to 12
hours, a powerful 8th
generation Intel core
i5 processor and
sleek design
improving mobility.
Lenovo ThinkPad
E480, a 14” laptop
equipped with 8th
Gen Intel core
processor for high
performance has a
great memory and is
very portable and
light weight
This 14” HP laptop
offers a power
efficient Intel 8th
generation core
processor with great
memory and a battery
with life of 8 hours.
Place Dell online, JB HiFi,
E-commerce
Lenovo Online,
Lenovo retailers, JB
HiFi, E-commerce
HP online, HP
retailers, JB HiFi, E-
commerce
17. Price $1190 $1079 $1098
Promotion Television
advertising, Pop-up
online advertisement
Television
advertising, social
media
Television
advertising, Pop-up
online advertisement
Advantages and
Disadvantages that
comes with our sub-
brand
• FHD anti-
glare display
for better
viewing
experience,
Battery life up
to 12 hours
• Quite
expensive
when
compared to
other i5
processor
laptops
18. • 8th generation
intel core i7
processor for
high
performance,
Portable
device
• Not a very
good cooling
system,
mediocre
battery life
• 8th generation
intel core i5
processor for
high
performance,
high quality
stereo sound
• Loud cooling
fan noise,
battery life is
not good
Data was current as
of – 04/10/2018
Sources
https://www.dell.com/e
n-
20. Product 15.6” laptop
delivering an
exceptional viewing
experience with
battery life up to 12
hours, a powerful 8th
generation Intel core
i5 processor and
sleek design
improving mobility.
Lenovo ThinkPad
E480, a 14” laptop
equipped with 8
th
Gen Intel core
processor for high
performance has a
great memory and is
very portable and
light weight
This 14” HP laptop
offers a power
efficient Intel 8
th
generation core
processor with great
memory and a battery
with life of 8 hours.
Place Dell online, JB HiFi,
E-commerce
Lenovo Online,
Lenovo retailers, JB
HiFi, E-commerce
HP online, HP
21. retailers, JB HiFi, E-
commerce
Price $1190 $1079 $1098
Promotion Television
advertising, Pop-up
online advertisement
Television
advertising, social
media
Television
advertising, Pop-up
online advertisement
Advantages and
Disadvantages that
comes with our sub-
brand
· FHD anti-
glare display
for better
viewing
experience,
Battery life up
to 12 hours
· Quite
expensive
when
compared to
other i5
processor
laptops
· 8
th
generation
intel core i7
processor for
22. high
performance,
Portable
device
· Not a very
good cooling
system,
mediocre
battery life
· 8
th
generation
intel core i5
processor for
high
performance,
high quality
stereo sound
· Loud cooling
fan noise,
battery life is
not good
Data was current as
of – 04/10/2018
Sources
https://www.dell.com/e
n-
au/shop/cty/pdp/spd/ins
piron-15-5570-
laptop/a511051au?oc=a
511051au&VEN1=sZa
HNRY0l,10453511491
3,9011547612,c&ST=
&pdv=c&VEN2=,&dgc
24. Conduct SWOT Analysis (Search Appropriate Sources
Academia, Google, Wikipedia …)
Think About Core Competence of the Company
Identify Strength, Weaknesses, Opportunities, and Threats For
the Company
How to Do a Critical Analysis
Decide on the Opportunity or Threat You Want to Address.
Identify Alternatives To Resolve the Key Opportunity or Threat
The Company is Facing
Strategic Alternatives (Preferred) or Tactical
Solution
s (to implement an identified Strategy)
How to Do a Critical Analysis (Continued)
Evaluate