This article consists of 13 pages and 2991 words.
In order to have full access to this article, please email us on thedocumentco@hotmail.com

Introduction to Company and Plan

 

According to Dell (2015), Dell is one of the leading companies in the world which are well known for corporate social responsibility activities. Dell has got immense success in the Desktop PC and laptop market and now it aims to develop new range of the smart phones. Dell introduced phones in the past as well but it did not get the desired success so the company has decided to re-launch the cell phones again but in the new category i.e. Marketing Plan of Dell Dive – A new product by Dell Smart Phones. It is believed that the company can be highly successful from this new business if the marketing and operations are carried out properly. The new brand will be named as “Dell Dive” and it will focus on catering youth from the upper middle and upper class.
Company Analysis:
Goals:

Specific goals are very important for any company; Goals help the company define what it wants to achieve. There are three areas which will be focused by Dell in coming few years; which focus on taking action to benefit the macro-environment, strengthening the communities, and hire diverse and engaged workforce (Dell, 2015).
Environment:

Environment is very important aspect to be considered by any company around the globe. Dell offers very environment friendly products; Marketing Plan of Dell Dive – A new product by Dell their aim is to create great environment by their work and operations and the products which are produced by Dell. Dell has focused on environmental issues as they are gaining importance day by day (Dell, 2015).
Communities:
Dell employees and stakeholders work together for objectives, which are helpful for social causes and those objectives create great opportunities for the different social communities. Dell produces all its products in China so it has given back to Chinese community in recent years by different Corporate Social Responsibility Activities (Dell, 2015).
People:

To develop people, firstly Dell needs to make good and reasonable relationship between employees globally. This relationship leads to a great development of people associated with Dell (Dell, 2015).
Focus:

According to Calvo (2011), focus shows the direction of a company; it describes that what is considered by companies as important aspect to cater. Dell is highly focused on customers and their needs; no superfluous activities happen in Dell, “Once they learn directly from customers that what they need, Dell works closely with partners and vendors to build relevant technologies at a low cost.”
Culture:

Culture of any organization is very important; a well-managed culture also shows the strength of any company. Dell has set some standards for their employees to follow. These standards lead them to provide their input in decisions but they must follow those rules and decisions (Calvo, 2011).
According to Jae-woong and Geun-woo (2010), strengths and weaknesses of Dell are:
Strengths:

1. The value of Brand equity of Dell is approximately $8 billion.
2. Dell was first company to introduce Product flexibility (customization)
3. Positive environmental record throughout company’s past performance.
4. Dell has got Competency in mergers and acquisitions.
5. Dell has primary focus on direct selling business model.
Weaknesses:
1. Very harsh customer services.
2. Low investments in research & development.
3. Weak patents portfolio.
4. Very few retail outlets.
5. Very little differentiation.
Customer Analysis:

Dell caters with different types of customers but most of its customers / consumers are the young generation as they spend most on technology based products. Dell has different types of marketing plans which are very strong in nature to target the youth. It is believed that technology can be very easily promoted in the young generation. Dell aims to produce smart phones in future which are very popular in young generation (Brown, 2014).
Competitors Analysis:

According to Brown (2014), Dell’s market share is 18% in PC and laptops market as compared to HP’s share of 15%. Dell is ranked as number 3 laptop and PC Company around the globe on the basis of market share. Whereas in Smartphone industry Apple and Samsung will be the biggest competitors of Dell. Because Dell will be new in Smart phone market and Apple and Samsung have a major share in Smartphone market so Dell will find it difficult to compete with the industry giants. Samsung and Apple have a great brand equity and technological edge on Dell in the Smart phone industry.
Climate:

PEST Analysis:
Armstrong, Kotler, Harker and Brennan (2012) state that P.E.S.T Analysis provides summary of external environment of the company, which is very important for any company. PEST is focused on external factors of the macro level as these factors are basically out of the control of the company.
Political:

Political analysis is very important for any company. It gives good idea about that location that is that suitable for them or not. The government of china prefers local technological companies rather than the foreign companies so their regulations will not favor Dell as it is a foreign company. Few of requirements involved in securing government contracts, which basically shows the biasness by china Government for the local companies. Usage of internet is also governed by the government which means the increment in internet has decreased over the years (Jae-woong and Geun-woo, 2010).
Economical:

Economical conditions of any geographic location gives good idea about that location to company. This analyses gives brief information that is that project is suitable in these economic situations or not. Due to the highest population China has immense opportunities available but there is shortage of labor in China which is one of the key issues in Chinese economy which can increase the operating cost of the company. Dell is aware that production cost is low in China which makes it more attractive for investment (Jae-woong and Geun-woo, 2010).
Social:

Social conditions are also very important for any company before launching their product. This analysis gives brief idea about social information that what they want and what is suitable in that social environment. Many social classes now want smart phones and the industry is increasing rapidly so it is important for Dell to cater these social classes by launching smart phones as soon as possible (Jae-woong and Geun-woo, 2010).
Technological:

As Dell operates in high tech industry so technological analysis is very important for Dell and every company operating in any sector / industry. It is very important to choose right technology to gain the competitive edge. The main direction of technology nowadays is everything is becoming smaller and faster. Every other company in the world has come up with better technology so Dell needs to improve its technological advancement as well (Jae-woong and Geun-woo, 2010).
SWOT Analysis:

According to Armstrong, Kotler, Harker and Brennan (2012), SWOT analysis is used to know the company’s inner and external potential. Inner potential were find out by knowing the Strengths and weaknesses. And external potential consists of opportunities and threats. SWOT analysis give companies advance information about their potential that is they suitable for that project or not. It’s very important to do SWOT analysis by any company to come up in new market or get a competitor edge.

According to Albini (2013), SWOT analysis of Dell is as follows:
Strengths:

• Brand name: Dell has great brand equity in consumers mind for its quality products. Its brand equity is valued at Approx $8 billion.
• Product customization: Dell has very flexible offers for its customers; it offers customized products. These types of services were not offered by any other retailer before Dell. This type of offers will give Dell a competitive edge and it will be able attract lot of new customers.
• Environmental record: Dell is doing many green supported CSR activities. These activities show their ambition of work for the peoples of the society. It is beneficial for them to work with government organizations.
• Competency in mergers: From last five years Dell has spent a huge amount for new patents and new technology to gain the competitive edge.
• Direct selling business model: Dell sells their products directly from their own outlets and online; this also provides competitive advantage to Dell.
Weaknesses:

• Commodity products: The large part of Dell’s sales come from commoditized products. Hardware (commodity) products usually carry a lower profit margin so profitability of Dell is low.
• Poor customer services: Dell invested large amount of money to open its call centers offshore but it has not been able to cover the investment yet; the customer services of Dell have been poor for last few years.
• Weak patent portfolio: Dell has spent low on R&D since its inception which has led to lower patent rights for the Company; due to lower patent rights company finds it difficult to compete in the attractive cell phones and tablets market.
• Too few retail locations: Dell sell their products online with a very few retail outlets, which is very inexpensive way to save the cost. But this leads low visible to the customers, which leads hard for customers to choose the products.
• Low differentiation: The major competitive advantage for Dell is their low price, but they are no longer affording this. If

there any competitor offers low price than they have not any other major differentiation to compete in the market.
Opportunities:
• Expand services and enterprise solutions divisions: Dell offers many different services and enterprise solutions for the companies. They have great share of revenue. Dell has to increase these divisions to increase their revenue.
• Acquisition can lead to more patent rights: Dell has to diversify their operations. But for diversifying they need new technology. There R&D is very weak in these areas to create new idea or come up with new technology.
• Focus on Emerging Markets: Emerging or growing economies have great potential for the demand of tablets, laptops, and

Smart phones. Dell has been there in emerging markets, but suggestion is that Dell makes its presence stronger to cater the excessive demand in those markets.
Threats:
• Growing demand for smart phones and tablets: The customers often choose smart phones based on the lower price and improved features of the product; the demand for smart phones is increasing due to improvement in the features. The growing demand for the previous devices takes a share out of laptops, the main stream of revenue for Dell. This threat will be catered by the introduction of new products in the smart phones category.
• Profit margin decline on hardware products: Dell’s main source of income selling hardware products, the cost of producing hardware will increase in the future due to significant increase in the raw material costs. This will increase the direct costs of Dell and will cut the profits further.

• Intense competition: Dell faces very intense competition in every segment catered by them. They compete on low price, high quality and differentiation. Because of tough competition Dell must come up with competitive edges other than low cost as the industry is very differentiation focused.
Market segmentation for New Product – Dell Dive
Market segmentation refers to dividing the market into different parts on the basis of different variables; the market can be divided on the basis of demographics, social classes, geography and numerous other bases (Armstrong, Kotler, Harker and Brannen, 2012). Dell has divided market based on the social classes like upper class, upper middle class, lower middle class and lower class. These classes are also classified as A class B class and C class according to their potential. The segment Dell will cater for their new brand ‘’Dell Dive’’ is upper middle class and youngsters; Dell will target this segment as only they can afford the smartphones of premium category. As there is high need for smart phones in the segment so Dell believes that it can generate high sales from the segment.
Marketing strategy for New product – Dell Dive

Marketing strategy is a mean to achieve a sustainable competitive advantage and increasing the sales of company by a successful new product. It is often referred to as the marketing mix of the company. In this strategy we decide that what product we have than what pricing strategy is use for that. And then decide place (distribution) that where it will be offers. And then finally decides how to promote it. Marketing strategy of the new product basically meets the requirement of 7Ps of marketing.
Product:

Product strategy is all about the analysis that product you will make is appropriate ad whether it is the right time to launch this product or not. The brand name of new phones will be ‘’Dell Dive’’ under the umbrella brand Dell. This brand will come up with very high quality and with large range of smart phone variants. Dell will offer one year official warranty as it does for its current products. The packaging of smart phones will be environment friendly because Dell focuses on environment friendly projects.
Price:

Price is very important for any product; it’s the only P which generates revenue. Sometimes there is a need of high pricing and sometimes low pricing will be the strategy. Appropriate pricing strategy is very important and critical for the success of company (Armstrong, Kotler, Harker and Brennan, 2012). Dell has a competitive advantage of low cost, that’s why the prices of these smart phones will be relatively lower than the competitors. Dell will follow the overall cost leadership strategy for this brand as it did for its previous brands. No discounts will be offered on new brand and no credit facility is available for this new brand ‘’Dive’’.
Place (Distribution):

Place is all about to decide where you will launch or distribute your product and through which channels. It’s very important to choose proper distribution channels to sell. Sometimes companies sell directly and other way is outsourcing or through others. It’s totally up to the nature of the product that which type of product you have. Dell sells their products directly without using any intermediaries. However for this new brand Dell sell it on directly as well as on biggest retail stores to get a competitive edge. Dell will offer the brand Dell Dive in developed countries initially and then will launch them in developing countries as well.
Promotion:

Promotion is all about the channels through which companies communicate strengths of their products. There are many channels for companies to promote the products. Choosing proper channel of promotion for different products is very important. Dell will do promotions for new products through different media channels like, bill boards and T.V channels. Their promotions are usually outsourced by a much known agency worldwide; different types of PR campaigns were also planned for this brand.
Process:

Process is all about positioning your product in the consumer minds. You use different type of processes for different type of products but choosing the right process is very important. The process will be chosen according to demand of the customers. After R&D Dell will finalize the process they will use.
Physical EVIDENCE:
Physical evidence is all about packaging or look of your product. It must be catchy and appropriate for the product. It must be shown all the aspects which you wants to highlight in your product. Dell already works in technologies field, so they must have an idea that how will they package and design the new products.
People:

People are very important for anything or any aspect of life. For starting new products Companies must also have right persons for the right job to get positive results. People are known as a pillar of any work being done because without people companies cannot accomplish any task. Companies recruit some new people to gain competitive advantage over the other companies; it is only possible if the personnel of company is effective and efficient.
Conclusion:

This marketing plan is made for a new launched Brand ‘’Dive’’ Smart phone by Dell. The main concerns of this marketing plans were to know the strengths and weaknesses of Dell, and knowing the potential of Smart phones market. The competitive analyses were give information about their competitors, which helps in decision making to gain a competitive advantage. Customer’s analyses were also performed to cater the right market segment for new brand. On the basis of discussion, it can be concluded that youth from upper middle social class is the target market of Dell Dive and Dell will price the product lower than its core competitors as its strategy is focused on overall cost leadership.

It can also be concluded that Dell Dive can help the company increase its revenues and profits as smartphones is highly profitable industry with high profit margins as compared to Laptop industry which is saturated. Dell will only achieve the objectives of new product if the marketing plan is executed successfully and efficiently…