Positioning Strategies of DELL and HP
In the reality of the 21st century, technology has an incredibly big role. Human beings around the world have at least 2 pieces of technological creations on them throughout the day. One of them is predictably a phone, and the next device is a computer. It is literally connected to almost all aspects of life. Computers accompany people since there are many tools collected in them that make them so unique and convenient. There are two very well-known computer technology companies: DELL and HP that have reached great success. And so, you guessed it, the positioning strategies of these 2 companies is the topic that we are going to discuss today.
Let’s begin the contents of this blog by discussing the target audience of DELL.
A good way to contribute to it will be to watch a commercial. With that being said, let’s watch the following video.
This ad is pretty short, however, a lot can be perceived through it. It begins with showing a woman with green hair, creative makeup, and bold clothing. This is a way of expressing creativity through just one character. Following that, through utilizing a screen she appears at a place that looks pretty similar to a gallery. But then again, it is demonstrated uniquely, in a dark room, surrounded by a number of screens.
In a way, each screen, or illustration is representing a different individual. It becomes evident once we see another woman jump off. This video is advertising DELL XPS laptops. At the end of it, we see “Get Into Your Youniverse”, which is a creative way of saying “Be yourself, in your own world”.
Now, this video has a few hidden messages that make the segment that DELL has chosen to target evident. Firstly, there is an overall interpretation of having fun, being creative, and different. This leads to the second point, we see that every character is unique in their own way. Presenting their personalities with the help of physical appearances. And, lastly, the biggest hint is the exhibition, the cool room with the black walls and numerous pictures utilized through different screens. Visiting exhibitions is one of the most favorite leisure activities of the chosen segment, which is Hedonists.
Target Segment: Hedonists.
Lifestyle and values:
The slogan that Hedonists go by is “We Only Live Once”. That phrase has a lot of meaning hidden behind it. It means that every day has to be fun. In every little activity that these people do, they have to find enjoyment. They will even go out of their way and do things that some people would view as ‘crazy’ such as getting up on stage during a concert. Predictably, Hedonists are also fond of going out with friends, partying, and being young. Occasionally, this segment will invite friends over for a chill night with chips and beer.
Hedonists get bored easily. They continually seek new experiences, new job positions, and even new relationships. In fact, their commitment to significant others tends to be a short-term thing. As a result, this segment goes out to explore unfamiliar places and meet new people.
Because they get bored, of course, buying new items regardless of the category is something that Hedonists like to do. Clothes, technology, food, whatever, if it is recent, then this segment will purchase if their budget allows for it.
Their physical appearance is a major area of concern for them. And sometimes that may be not for the best reasons. For example, they constantly want to lose weight not for health purposes but for looks. Additionally, these people like to be different and stand out in the crowd, they will follow trends but be creative with them.
The reason Hedonists work is to get money. Because money, by itself, can guarantee a lot of opportunities that make life more fun. Such as going for drinks. Oh, and if they have a beverage, it is done for the sole purpose of getting drunk.
This segment has a closed mindset in a way, taking toxic masculinity into consideration. Such as men not crying, or women belonging in the kitchen.
With all of the excitement that Hedonists are seeking, they sometimes forget about their family. Meaning that spending time with family is the last thing on their minds but occasionally obtainable.
Attitude to shopping:
Hedonists choose mainstream brands as they are a good way of showing off. Which is not used in a bad way at all. In fact, it is a way of showing appreciation regarding different good quality brands.
Their decisions are impulsive when it comes to purchasing goods. They like shopping in smaller stores and finding the best items possible. And when it comes to domestic brands, hedonists will only buy stuff from those if they are fashionable.
Marketing Strategy
DELL is the third most popular brand holding a 12.8 percent market share. One strategy that it goes with is relying on customer trust because that way a loyal brand image is built. In turn, customers believe that this brand has every technological solution that they need.
The market that this company belongs to is highly competitive. However, DELL has advantages to them because it has a set distribution channel.
Most of the DELL customers are ones that choose its products simply to make their lives easier. What is interesting about this company is that it offers individual SKUs for different customers. Which makes it that the way that DELL has chosen to target consumers is through customized solutions.
Problem Removal
DELL is facing a few challenges that are holding it back from maintaining a dominant position.
One of those problems is the overly broad product portfolio. For instance, reducing 88 platforms to 20 product families is an effective move. The belief behind that is backed up by the reasoning that customers simply get overwhelmed. It is easier for them to pick from a small variety than to be lost in a massive range.
The other problem that DELL is facing is the absence of public cloud infrastructure. DELL has assumed that the enterprise technology world is going hybrid, that being the reason for its focus on offering infrastructure to the second tier cloud providers, and to enterprises. At the same time, the company has advantages as it is closely connected with VMware Inc, the software virtualization leader. Dell has a massive stake in VMware Inc.
Social Acceptance
DELL has a goal in mind called the “2030 Social Impact Vision” which wishes to have a positive social impact. And that can be made into a reality by taking these three concepts into consideration: advancing sustainability, cultivating inclusion, and transforming lives with technology.
The idea behind advancing sustainability is being responsible for the protection of our planet while having a healthy sustainable lifestyle in all sets of circumstances.
Cultivating inclusion is about celebrating diversity and the different abilities and talents that many people around the world have. Because that is a great opportunity for innovations and new ideas.
And lastly, transforming lives with technology is all about solving societal issues with the power of electronics. And as a result, the world will be more open to the idea of the creations of the human mind.
Message Strategy
The post above is from DELL’s Instagram page. If we look at it from the direct perspective, it starts with connecting a few squares together conveying the meaning of ‘create’. Then, three laptops appear representing those three squares, and we see the slogan “We were born to create. So was our tech”.
As clearly demonstrated, the archetype that DELL belongs to is Creator brand archetype. The one that wishes to create something valuable. The one that likes to turn its vision into a reality. And the one that is artistic and creative. Seeking innovations made in an imaginative manner.
Now, it is time to get to discussing the marketing strategies of the next computer tech company, HP.
Just like the last one, let’s start with watching a short video.
The ad is shown from an outsider’s perspective. The video begins with introducing a home which we may not realize now, but later we will find out its role. Then we see a group of boys practicing music and one of them sitting in the front. Initially, the assumption is that it is just a friend watching. However, after their interaction in the kitchen, it becomes evident that this character is unable to hear.
After his attendance at the concert of his friend, and the overall viewpoint of how someone like him would feel in that scenario, we clearly demonstrate his frustration. At home, in front of the mirror, we see him observing himself as a musician, something that he really wants. His friend happens to be passing by at that point and gets to creating a music station that would fulfill his needs. The video ends with an amazing surprise and pure happiness. “Reinvent Giving” is what appears on the screen afterward.
So, the big role of home and the presence of the family are one aspect of figuring out HP’s target audience. Then, the desire and goal for a certain path is another thing. Believing in the best of people is the last point. Because if this ad is promoting giving then it is expected to get back what you give. It does not have to be materialistic, it can be in the form of love and affection. And, so, all of this is proving the point that the segment that HP has chosen to target is Nesters.
Target Segment: Nesters
Lifestyle and values:
Nesters are caring about family duties and traditions. They like working and reaching success but at the end of the day, it has to be shared with loved ones. It is important to spend enough time with family and a great way to do it is by a simple gathering where they get to cook.
The next thing that Nesters really value is faith. Having traditional customs and beliefs matters. And it goes to relationships as well. Faith and trust are big aspects of them.
Nesters see the best in everyone. They expect good and fair behavior starting from their family members ending with strangers.
This segment perceives itself like everyone else around. They are passive when it comes to new challenges and like to stay in their comfort zone, or, in other words, go with the flow. And that same thing applies to their careers. They’d rather have a stable career with no risks. That strategy works for personal relationships as well. Nesters like to find significant others that are open to commitment and share similar beliefs.
Attitude to shopping:
Nesters like buying things for comfort and not style. And they would rather look for affordable items. This segment usually has preferred stores in their minds when they choose to go shopping. The reason behind that is so they do not have to spend more time and energy on purchases than necessary.
This segment is not one to go after new trends. They would let other people around them test products and ask for suggestions.
This segment likes to give domestic companies a chance. In their eyes, domestic brands are so much better than foreign ones.
Marketing Strategy
HP gets revenue by offering its products and services under a collective scope. It is made possible by the use of different IT-related infrastructure.
This company has an incredibly broad product portfolio. It is a leader in the market and a great reason for that is through sponsoring different events worldwide.
The market that HP belongs to is very competitive and sometimes it even has to compete with its own OEM partners in other business segments.
HP’s strategy of fulfilling customer needs is an individual approach. Its enterprises have a big range: from small, medium, to private companies and government institutions.
Problem Removal
HP is facing two major challenges. The first one is its revenues being utterly dependent on hardware sales. The company does have revenues in other areas, however, they are not developed enough to return to the overall growth of HP. This has resulted in the company’s potential innovation in crucial segments such as cloud, and tablets for example.
The other problem that HP has is the decrease in IT infrastructure costs. And that is a result of rationalization and modernization of clients’ portfolio initiatives.
Social Acceptance
HP’s desire is to solve society’s critical problems. In order to make that possible, everybody has to have their small investment. As with collective power, great things are likely to be achieved.
HP puts its workers’ skills to use by funding and technology. And one big thing that this company has in mind is to find solutions to crucial social issues. Ones that are a part of education and health, for instance.
HP people also come in accordance with this goal with their constant participation in volunteering and fundraising.
Message Strategy
“Love. that lasts longer than this post.” is what is written in this Instagram post of HP’s. then we see an HP Spocket Photo Printer which is what is being advertised. Other than that, we see a whole bunch of pictures of people that love each other: friends, lovers, family, etc. the caption, on the other hand, says “share love that doesn’t drown in scrolls”, which by itself is encouraging people to live in reality and enjoy people’s company.
And so HP belongs to the archetype where people connect with each other. One, where people wish to fit in and belong. One where people like to be realistic and stay on a balance between the artificial world of today and reality. HP’s archetype is Everyman.
To sum up all of the mentioned points, DELL and HP are two of the biggest computer tech companies in the world. The contents of this blog included their marketing, positioning, problem removal, social acceptance, and messaging strategies. For many more posts like this, do not leave without checking our main website.
