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CASE ANALYSIS ON

DELL IN INDIA TARGETING SMBs






Dhwani Ojha
Divyani Garg
Pankhuri Singhal
What made Dell choose a different model of
distribution when it decided to target Indian SMBs

Big Market Share

Education

Technology
What is the present market-share of Dell
in India?
Which strategy did Dell follow?
How has this strategy helped Dell gain a competitive
advantage –

Lowest Production Cost
Overall
Cost
Leadership

Lowest Distribution Cost

Win more market Share
Segmenting its
Markets
Customer Intimacy

Tailoring its Products
for Target Market
Satisfying Unique
Customer Needs
1968

1981

1984
1985

EVOLUTION

•Dr. Marcian E invents
micro processor
•Revolutionizes by
lighter weight and
greater speed

INVENTION

•IBM first to launch
PC’s.

DELL
EMANATES

•Founder Michael S
Dell
•Focused on Custom
built PC’s and direct
selling strategies.

PRODUCT
DVLPMNT

•Designed Turbo PC
•Established strong
customer base &
quality sales service.
•1st subsidary in UK
•Low cost
marketing.
•Latest Technology
with customization.

1987

GEOGRAPHIC
EXPNSN

1989

PRODUCT
LINE

•Introduction of
Notebook.

1990

MARKET
DVLPMNT

•Entered
Developing
countries
•Targeted SMB’s

1992

REAPED
BENEFITS

•Enjoyed an
increasing trend in
profit over the span
of 3 years.
1993

DIPS

1994..

DIVERSIFICA
TION

1996..

DIFFERENTIA
TION

2008

REVIVE BACK

•Technological
difficulties
•Retailed
Marketing Mode
•Over forecasted
Demand
•Growth in Server
market.

•Customization
•Direct Marketing
•Quality Products
•Focused on
developing
countries
DELL Marketing Mix in India
PRODUCT:
•Desktop .
•Servers, communicatio
n peripherals.
•Dell and oracle alliance
to provide common
point of contact for all
computing requirement.
•Notebook PCs.

PRICE:
•Dell cut down 6%-8%
of distribution cots
compared with other
manufacturers by
offering its products
through company
website and toll free
number.

Target
customers
Intended
positioning

PlACE:
•Dell tied with Tata
croma in April
2008 to sail
through their retail
outlets.
•it open its own
retail outlets in
Delhi, Coimbatore.

PROMOTION:
•Dell started
campaigning with the
tag line “I Choose my
Own path. I Choose
Dell
•Dell launched real life
successful entrepreneurs
for its brand
campaigning.
Dell product launches between 2008-12

2008

2009

2010

•The Studio line of compact and stylish
consumer desktops

•In Fiscal 2009, Dell added the XPStm
,Alienwaretm and E-Series commercial
Latitude and Dell Precision lines of notebook
,the 3G enabled Mini; a light, mobile notebook.
•The XPStm ,Alienwaretm , OptiPlextm
, Inspirontm , Vostrotm , Dell Precisiontm
lines of desktop.
•At CES 2010, Dell showcased a broad range of
new products including its first ultra-mobile
gaming laptop
2011

2012

2013

•Dell is launching a range of Dell Latitude Eseries models: the
E5420, E5520, E6220, E6420, E6520, and
E6420 ATG notebooks and the XT3
convertible tablet.
• Dell is also bringing several models of its
Optiplex desktop line -- the 990, 790, and 390
•Dell launches XPS 14 Ultra book, XPS 15 Ultra
book
•Dell Launches New Cloud Products For Citrix
Users

•The new launch include the Dell Venue tablet
line, the XPS 11 two-in-one, and the XPS 15
laptop.
Indian PC Industry: Unmasking the
Competition

1980

Two major developments led to the growth of Indian PC
industry.

1997

Drastic Growth in the PC Market.
PC market Served three major suppliers

21st
Century
Multinational
companies

Local assemblers
Indian Brands
SHARE OF INDIAN PC Market - Mid - Year
Review 2002-2003
Major MNC
Players –
1.
2.
3.
4.
5.
6.

HP
IBM
COMPAQ
LENOVO
ACER
DELL

Major Indian
Brands –
1. HCL
2. Zenith

MNC Brands
36%

Indian Brands
20%

Local
Assemblers
44%
REDUCTION IN
TAXES

2005

REDUCED PRICE
GAP b/w
BRANDED PC
AND ASSEMBLED
PC

POTENTIAL
GROWTH OF PC
MANUFACTURERS
2007

CHANGE IN
DEKSTOP TO
NOTEBOOK
CENTRIC
COMPUTER

EDUCATION

BUSINESS EXECUTIVE
TAREGT MARKET

HOUSEHOLD
SMB MARKET
THANK
YOU

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Dell making inroads in india

  • 1. CASE ANALYSIS ON DELL IN INDIA TARGETING SMBs    Dhwani Ojha Divyani Garg Pankhuri Singhal
  • 2. What made Dell choose a different model of distribution when it decided to target Indian SMBs Big Market Share Education Technology
  • 3. What is the present market-share of Dell in India?
  • 4. Which strategy did Dell follow? How has this strategy helped Dell gain a competitive advantage – Lowest Production Cost Overall Cost Leadership Lowest Distribution Cost Win more market Share
  • 5. Segmenting its Markets Customer Intimacy Tailoring its Products for Target Market Satisfying Unique Customer Needs
  • 6.
  • 7. 1968 1981 1984 1985 EVOLUTION •Dr. Marcian E invents micro processor •Revolutionizes by lighter weight and greater speed INVENTION •IBM first to launch PC’s. DELL EMANATES •Founder Michael S Dell •Focused on Custom built PC’s and direct selling strategies. PRODUCT DVLPMNT •Designed Turbo PC •Established strong customer base & quality sales service.
  • 8. •1st subsidary in UK •Low cost marketing. •Latest Technology with customization. 1987 GEOGRAPHIC EXPNSN 1989 PRODUCT LINE •Introduction of Notebook. 1990 MARKET DVLPMNT •Entered Developing countries •Targeted SMB’s 1992 REAPED BENEFITS •Enjoyed an increasing trend in profit over the span of 3 years.
  • 9. 1993 DIPS 1994.. DIVERSIFICA TION 1996.. DIFFERENTIA TION 2008 REVIVE BACK •Technological difficulties •Retailed Marketing Mode •Over forecasted Demand •Growth in Server market. •Customization •Direct Marketing •Quality Products •Focused on developing countries
  • 10. DELL Marketing Mix in India PRODUCT: •Desktop . •Servers, communicatio n peripherals. •Dell and oracle alliance to provide common point of contact for all computing requirement. •Notebook PCs. PRICE: •Dell cut down 6%-8% of distribution cots compared with other manufacturers by offering its products through company website and toll free number. Target customers Intended positioning PlACE: •Dell tied with Tata croma in April 2008 to sail through their retail outlets. •it open its own retail outlets in Delhi, Coimbatore. PROMOTION: •Dell started campaigning with the tag line “I Choose my Own path. I Choose Dell •Dell launched real life successful entrepreneurs for its brand campaigning.
  • 11. Dell product launches between 2008-12 2008 2009 2010 •The Studio line of compact and stylish consumer desktops •In Fiscal 2009, Dell added the XPStm ,Alienwaretm and E-Series commercial Latitude and Dell Precision lines of notebook ,the 3G enabled Mini; a light, mobile notebook. •The XPStm ,Alienwaretm , OptiPlextm , Inspirontm , Vostrotm , Dell Precisiontm lines of desktop. •At CES 2010, Dell showcased a broad range of new products including its first ultra-mobile gaming laptop
  • 12. 2011 2012 2013 •Dell is launching a range of Dell Latitude Eseries models: the E5420, E5520, E6220, E6420, E6520, and E6420 ATG notebooks and the XT3 convertible tablet. • Dell is also bringing several models of its Optiplex desktop line -- the 990, 790, and 390 •Dell launches XPS 14 Ultra book, XPS 15 Ultra book •Dell Launches New Cloud Products For Citrix Users •The new launch include the Dell Venue tablet line, the XPS 11 two-in-one, and the XPS 15 laptop.
  • 13. Indian PC Industry: Unmasking the Competition 1980 Two major developments led to the growth of Indian PC industry. 1997 Drastic Growth in the PC Market. PC market Served three major suppliers 21st Century Multinational companies Local assemblers Indian Brands
  • 14. SHARE OF INDIAN PC Market - Mid - Year Review 2002-2003 Major MNC Players – 1. 2. 3. 4. 5. 6. HP IBM COMPAQ LENOVO ACER DELL Major Indian Brands – 1. HCL 2. Zenith MNC Brands 36% Indian Brands 20% Local Assemblers 44%
  • 15. REDUCTION IN TAXES 2005 REDUCED PRICE GAP b/w BRANDED PC AND ASSEMBLED PC POTENTIAL GROWTH OF PC MANUFACTURERS
  • 16. 2007 CHANGE IN DEKSTOP TO NOTEBOOK CENTRIC COMPUTER EDUCATION BUSINESS EXECUTIVE TAREGT MARKET HOUSEHOLD SMB MARKET