Market Segmentation of Dell
Dell is a well-known computer and IT solutions manufacturer. The company is well renowned for its straightforward business approach and cutting-edge technologies. Also, the PC market has been on a steady downward trend for the past five years. Nonetheless, the company is one of the top 10 PC manufacturers globally. The company manufactures high quality and low priced products and services. Today, we’ll look at Dell’s market segmentation.
Now, let’s start with the positioning strategy of Dell.
But first, let’s watch one of Dell’s commercials.
Dell XPS, Dell Technologies’ award-winning premium laptop brand, has teamed up with Yara Shahidi, a creative entrepreneur, actor, and change agent, to encourage Gen-diverse Z’s young innovators and changemakers.
Yara’s enthusiasm for elevating voices of her age and her love for all things technology perfectly matches the campaign theme. The new creative campaign features Yara with Quannah Chasinghorse and the rap group Aint Afraid to further demonstrate her diverse hobbies.
The campaign hopes to inspire the following generation of changemakers through technology by elevating leading Gen-Z voices. Today, the campaign goes live on linked television, social media, and out-of-home media.
Yara Shahidi is an award-winning actress and breakout star of the blockbuster ABC program Black-ish and an executive producer of its Freeform spinoff series Grown-ish. She continues to be one of Hollywood’s most lauded talents, both on and off-screen. Dell XPS benefits from her love for technology, support for disadvantaged areas, and extensive impact among Gen Z.
According to research performed by professional services network Ernst & Young, Gen Z has recognized the pressures of globalization, automation, and evolving work norms as a chance to embrace their side hobbies as career prospects. A third of “side hustlers,” or those who run their enterprises on the side of full-time employment, are from Generation Z.
Not only that, but Covid-19 appears to have sparked a new era of innovation. According to a 2020 poll by Girls With Impact, 53% of Gen Z men and women intend to start their businesses. Compared to 46% in 2019.
Technology has allowed Gen Z and Millennials to feel technologically intelligent, self-sufficient, and autonomous since they have become more digitally linked than any previous generation. Dell XPS and Shahidi will continue to collaborate closely to engage young, diverse creatives to further the concept of technology as the great equalizer.
It’s fascinating to find out that Dell enjoys working with Conscious Progressives.
Let’s see why!
Progressives who are cognizant of their values have an analytical mindset. They are competent, versatile, and pleasant. Their essential differentiating quality is their knowledge, which they exploit to separate themselves from others. They place high importance on education yet do not set aside cash to support it.
Progressives who are conscious of their actions are extremely intelligent. They are always looking for new information. People in their immediate vicinity always have an edge since they can get crucial information from Progressives in some manner.
When it comes to life, progressives are practical people. You can observe their financial practicality in particular. They don’t waste money on stuff they don’t require.
Being handsome is very important to progressives. They are beautiful not just because of their appearance but also because of their personality and intellect.
This group mainly consist of many friends they can trust and rely on. They enjoy spending quality time with their friends, and the gathering location is unimportant to them.
Progressives aspire to be successful in their careers. On the other hand, Progressives are not always prepared to accept compromises to advance their careers.
This group appreciates giving back as much as possible to their companies. Progressives will stick to their guns if they genuinely believe in something. They are willing to express their point of view to anyone who holds an opposing position healthily.
Moreover, Conscious Progressives are avid media consumers with higher than average ratings. Their media intake is primarily educational. They keep themselves updated through the media. The media is an active instrument for them, and they listen to the radio or watch TV if it has anything relevant to communicate.
Newspapers are also crucial to conscious progressives (50 per cent read daily). They get a sense of gravity and mental intricacy from newspapers. They want to be knowledgeable of the country’s political and economic issues so they may apply that knowledge in any debate.
Next, we will look at the Positioning Plan Dell.
Customers should be able to understand technology more efficiently.
Dell’s legacy is to make high-quality personal computers, servers, storage, and services accessible to everyone. They are working to make information technology accessible to millions of people worldwide due to direct consumer connections. They’re in the most significant position to make it easier for customers to deploy and manage information technology and supply hardware, services, and software suited to their enterprises and residences.
Special services for the customer.
Customers may readily access Dell’s systems and services by calling or ordering online at www.dell.com, where they can examine, configure, and price systems across the complete product line. Although selling directly to clients has been the center of Dell’s business approach, the company does employ some indirect sales channels when a business requirement arises.
Dell established collaborations with merchants in the United Kingdom, Japan, and China to provide Dimension desktop computers and Inspiron laptop PCs in retail outlets across the Americas. Dell’s initial moves in retail strategy will allow the company to expand its business model and reach people it previously couldn’t get.
Dell’s business model is based on direct sales and a build-to-order technique for manufacturing and selling computers. Dell offered cheap rates, excellent customer service, and a singular emphasis on marketing and maintaining PCs rather than a wide range of products and services.
Dell has grown quickly and economically by capitalizing on the inherent benefits of its business strategy. Direct sales and build-to-order manufacturing can prevent expensive inventory from building up in the channel and losing value.
Direct sales provide several advantages.
Dell has a 60-times-per-year inventory turnover rate, compared to 12-15 times for other indirect vendors. Dell’s benefits from having a direct client contact are perhaps the most crucial. We were able to flip through inventory every five days on average, decreasing inventory levels and bringing the latest technology to clients quickly thanks to our flexible, build-to-order production process.
The market and competition have changed, and companies are now looking at using original design manufacturers and new distribution tactics to serve customers better and shorten product cycle times.
Dell knows who the end-user is, what equipment it has purchased from Dell and how much the client has spent with Dell, unlike indirect suppliers whose channel partners often refuse to tell even the ultimate customer. Dell uses this data to provide add-on goods and services, coordinate maintenance and technical support, and assist customers in planning their PC replacement and upgrade cycles.
Environmentally conscious.
They included environmental considerations in every stage of the Dell product life cycle, from product development and design through manufacturing and operations footprint reduction, customer usage, and product recovery.
Last but not least, let’s dive into Dell’s Marketing mix.
Product
Dell offers a comprehensive range of goods and services at home, the workplace, and the industry. Its Inspiron PCs and laptops are convenient for home and office usage. Moreover, gaming laptops such as the XPS and Alienware have a high interest in the premium market. Dell also makes all-in-one computers, gadgets, and accessories, among other things.
Tablets, workstations, servers, storage, networking, and various other IT-related solutions for small and large enterprises are among Dell’s other offerings. It also offers software for data security, information management, mobile workforce management, cloud management, and other topics. Overall, Dell creates products and services to meet all of a person’s or company’s computing, and IT demands.
Price
Dell has a history of aggressively pricing its goods in order to keep competition at bay. Most of its interests, including laptops and PCs, are reasonably priced. However, it provides a distinct line of gaming laptops that have a premium experience to consumers with a unique design. ITS XPS and Alienware laptops are high-end laptops with cutting-edge technology that give an exceptional experience. Laptops from Dell are affordable to meet the demands of both professionals and everyday consumers. Dell has reached a wide range of customers because of this price approach, and it is still one of the world’s leading PC manufacturers.
Place
Dell goods are available through a variety of outlets. The primary outlet, however, is Dell’s website. It offers an online build-to-order service. The key benefit of this system is that customers may create a plan for their requirements rather than purchasing an off-the-shelf system that may or may not meet their demands.
Aside from that, Dell distributes its products through authorized resellers and distributors worldwide. Ingram Micro, Tech Data, and SYNNEX are its three primary distribution partners. Its items are also available at Walmart and Best Buy, other retail locations and online.
Promotion
Dell, for example, invests millions of dollars in the marketing and promotion of its goods and brand. It promotes its products through a variety of methods. The television commercials emphasize the company’s cutting-edge technology and the performance benefits of its goods. Aside from that, Dell uses print media to sell its goods.
The brand promotes itself through PC hardware and software publications. Dell uses the Internet as a powerful marketing tool. Hence, various e-commerce websites promote and sell Dell goods in addition to the company’s website. It also uses internet advertising platforms and social media to promote its products. It enables its brand and advertises its products and services using social media platforms like Facebook, YouTube, and Twitter.
We were able to investigate Dell’s marketing segmentation in depth. We also learn about the company’s basic information and the Brand Archetype they represent, Conscious Progressives. Based on it, we created a mental image of possible clients. We learnt a lot about Dell’s marketing mix and how it affects its marketing approach. As a result, we can certainly state that Dell is deserving of its current fame and fortune.
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