That is whycompanies need to build for themselves a very solid marketing strategy and musthonor the most important and basic value of all their products and services, and atthe same time
VIETNAM GENERAL CONFEDERATION OF LABOR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION FINAL ASSIGNMENT SUBJECT: MARKETING STRATEGY TOPIC: END-TO-END STRATEGY ANALYSIS OF DELL TECHNOLOGIES Lecturer: Assoc Prof VO THI QUY Class: 01 (Saturday, Shift 3-4) Group: 02 HO CHI MINH CITY, JULY 2023 MEMBER LIST Student ID Work List Completio n Rate No Full Name Trần Nguyễn Bảo Ngọc 720H0947 Chapter 100% Văn Đoàn Phương Anh 720H1369 Chapter 100% Trần Thảo Nhi 720H1399 Chapter 100% Trần Ngọc Sơn 720H1410 Chapter 100% Lê Thanh Mỹ Ngọc 720H0126 Chapter 100% Nguyễn Nho Thái 720H0164 Chapter 100% Lưu Nguyễn Mỹ Linh 720H0914 Chapter 100% Ngô Hả Bảo Vy 720H1430 Chapter 100% ACKNOWLEDGMENTS To express our deepest gratitude, our group sincerely thank all the teachers at Ton Duc Thang University, faculty of Business Administration, majoring in Marketing Their unwavering support and dedication have been instrumental in providing us with favorable conditions to access a wide range of subjects, allowing us to develop a profound understanding of our chosen field In particular, we are extremely grateful to Ms Vo Thi Quy - the lecturer is directly in charge of the Marketing Strategy, she is always dedicated to teaching, guiding and contributing useful ideas to help us during the lessons as well as the reporting process Thanks to this, through her lectures, we have accumulated and acquired a lot of interesting and necessary knowledge about Marketing in general as well as this subject in particular As we present this report, we are aware of the effort we have invested in its completion However, we acknowledge that limitations in knowledge and time constraints may have resulted in some shortcomings Therefore, we humbly seek your feedback, comments, and suggestions to help us rectify any errors and refine our work Your expertise and guidance will undoubtedly pave the way for continuous improvement in our academic pursuits LECTURER’S REVIEW Ho Chi Minh City, July 2023 Lecturer’s signature VO THI QUY TABLE OF CONTENT INTRODUCTION CHAPTER THE OVERVIEW 1.1 Process of formation and developmet 1.2 Vision and mission .3 1.2.1 Vision 1.2.2 Mission 1.3 Field operations 1.4 Products .4 1.5 Strategic objectives CHAPTER SITUATION ANALYSIS 2.1 Market overview 2.1.1 Market segment 2.1.2 Market demand .8 2.1.3 Market trend 2.2 SWOT analysis 10 2.2.1 Strengths .10 2.2.2 Weaknesses 11 2.2.3 Opportunities 12 2.2.4 Threats 12 2.3 Competitive advantage 12 CHAPTER MARKETING STRATEGY .15 3.1 Strategy introduction 15 3.2 Mission and goal 16 3.3 Target customer 16 3.4 Target market 17 3.5 Positioning strategy 18 CHAPTER EXECUTION 20 4.1 Action plan 20 4.1.1 Business situation 20 4.1.2 Competitor analysis 20 4.1.3 Marketing goals 21 4.1.4 Marketing mix (4P) .23 4.2 Control plan .26 CHAPTER EVALUATION 28 5.1 Strategic assessment 28 5.2 Proposing marketing solutions for the strategy .29 5.2.1 Product strategy 29 5.2.2 Pricing strategy 29 5.2.3 Distribution strategy .29 5.2.4 Advertising strategy 30 5.2.5 Public relations .30 5.3 Lessons and management implications 31 CONCLUSION 32 Document continues below Discover more from: Lý Nguyên Marketing Đại học Tôn Đức… 232 documents Go to course CAU HOI ON TAP C1 12 NL Marketing Nguyên Lý Marketing 100% (11) BÁO CÁO CUỐI KỲ 41 35 NLM - Phân tích… Nguyên Lý Marketing 100% (6) Bumblebees Chiếnlược-sản-phẩm-… Nguyên Lý Marketing 100% (5) Ôn kỳ Mar - ôn thi kỳ Nguyên Lý Marketing 100% (5) Nguyenly Marketing 32 Nhom EASY Nha… Nguyên Lý Marketing 100% (4) Nguyên-LÝ59 TABLE OF IMAGES Marketing - Là tất c… Nguyên Lý Marketing 100% (3) Picture Dell's Logo Picture IDC Quarterly Personal Computing Device Tracker .7 Picture Positioning of Dell 18 Picture Dell's business model 22 INTRODUCTION For decades, most companies have targeted niches with novel and unique products and services With the increasingly fierce global competition, industry personnel gradually understand that if they only launch a new and unique product line into the market, they will not be able to position themselves differently from competitors Because it can make it easy for competitors to copy or copy their new product or service within a few months, even just a few weeks That is why companies need to build for themselves a very solid marketing strategy and must honor the most important and basic value of all their products and services, and at the same time create reputation of the brand in the hearts of all customers Dell is a strong brand among the world's most famous computer brands and has established a solid position in the current US information technology market Despite facing challenges and obstacles due to rapid changes in preferences, technology, and competitive landscape, Dell Technologies has succeeded in making a mark for the brand by implementing an "End-to-End" Marketing strategy throughout its operations Therefore, our group has decided to undertake the topic " END-TO-END STRATEGY ANALYSIS OF DELL TECHNOLOGIES" to gain a deeper insight into its success in creating a strong positioning among customers worldwide while also outperforming current competitors in the market Report structure: - Chapter 1: The overview - Chapter 2: Situation analysis - Chapter 3: Marketing strategy - Chapter 4: Execution - Chapter 5: Evaluation CHAPTER THE OVERVIEW 1.1 Process of formation and developmet Dell Inc is a technology company based in the United States The company develops, sells, repairs, and supports computers and related products and services Dell is a subsidiary of Dell Technologies Dell's predecessor was a small shop established by Michael Saul Dell in 1984 when he was still a student at the University of Texas at Austin, USA, named PC's Limited In 1988, the name PC's Limited was changed to Dell and officially introduced to the US information technology market Shortly after, with its highquality computer products, Dell became a strong brand among the world's most famous computer brands As of now, after more than 36 years of establishment and development, Dell has left its mark as a brand across continents and boasts an extensive workforce, with over 165,000 employees worldwide Picture Dell's Logo Some milestones in the formation and development of DELL: - 1984: Michael Dell founded Dell Computer Corp - 1985: The company released its first complete PC designed by themselves - 1990: Ranked sixth among the largest computer manufacturers in the United States - 1991: Dell started manufacturing its first laptop with the goal of becoming a leading provider in this promising new market 4.1.3 Marketing goals Dell's marketing goals include key directions and specific goals they set to develop their brand, increase sales, and maintain a competitive position in the IT and personal computer market Here are some important marketing objectives of Dell: - Building and maintaining a strong brand: Dell focuses on building and maintaining a strong brand with unique values that align with customer needs They aim to become one of the most reliable and popular brands in the technology industry - Enhancing vision and product innovation: An important goal of Dell is to continuously improve and develop new products to meet the growing demands of consumers and businesses They focus on creating pioneering and innovative products while enhancing performance and quality - Enhancing pricing strategy effectiveness: Dell targets optimizing pricing strategies to compete effectively in the market They aim to provide highvalue products and attractive pricing for consumers and businesses - Expanding global influence: Dell aims to expand its market share and increase global influence by expanding business operations into new markets and enhancing online presence - Customer focus and customer service: An important goal of Dell is to meet the needs and desires of customers by providing reliable, high-quality products, and excellent customer support They aim to build long-term relationships with customers and ensure their satisfaction with the buying and usage experience - Developing digital marketing channels: Dell focuses on developing and utilizing digital and online media to reach customers and market products They aim to leverage the power of social media, online advertising, digital content, and other digital media channels to enhance vision and interact with customers 22 Picture Dell's business model 4.1.4 Marketing mix (4P) Product Dell has implemented numerous improvements and developments with their product lines to meet customer needs, compete in the market, and diversify their product range They continuously innovate and upgrade to maintain and strengthen their position in the IT and personal computer industry Dell develops their products through a rigorous process, focusing on innovation, research and technological development, meeting customer demands, and monitoring market trends There are several key differentiators in Dell's products compared to competitors in the IT and personal computer market Below are some highlights of Dell's products: - Customization and flexibility: Dell is renowned for customizing products according to customer requirements Customers can choose configurations that suit their needs and budgets This allows individual users to personalize products according to their preferences and ensures flexibility in options - Diverse product range: Dell offers a wide range of products, from regular laptops to gaming laptops, desktops, workstations, servers, and more They cater to the needs of each market segment and specific customer groups 23 - Quality and durability: Dell's products are often highly rated for quality and durability They use high-quality components and materials to ensure stability and reliability in daily use - Modern and attractive design: Dell places high importance on design and often creates products with appealing and modern aesthetics They focus on improving designs to meet user trends and preferences - Advanced technology: Dell utilizes advanced technology to provide notable features and performance in their products They integrate the latest technological advancements to enhance user experiences and optimize performance - Excellent customer support: Dell is committed to providing excellent customer support through technical services, warranties, and software updates They create conditions for customers to have a smooth and hasslefree buying and product usage experience Price Dell excels in competing on price compared to rivals like Apple and IBM This is thanks to their Just-In-Time (JIT) system and their direct marketing strategy, which helps reduce costs and provide competitive prices for all their products Dell's direct sales strategy allows them to save costs by eliminating the need to pay intermediaries As a result, Dell's prices are typically 10-15% lower than those of other competitors on average Dell is careful when implementing pricing strategies, ensuring that prices are appropriate for each product segment They also take into account the local cost structure when pricing their product lines For example, by manufacturing in China, Dell can offer products and services at reasonable prices due to lower production costs In addition to competing on price, Dell's marketing strategy focuses on driving sales by offering value-added services with their products They propose providing virus protection services, warranties, and premium color options to enhance customer value after they have made a purchasing decision Through the combination of competitive pricing, pricing flexibility, and quality accompanying services, Dell has built a strong position in the IT and personal computer market, attracting and retaining a large customer base 24 Place This marketing strategy factor demands Dell to make several crucial decisions when developing a distribution plan It will determine: - Cutting out some intermediaries: Removing some intermediaries is a risky move; however, it can significantly reduce operational costs and considerably improve the profitability for Dell - Enhancing value and experience for customers: + Giving up the retail route allows Dell to simultaneously improve profit margins while offering consumers better prices on their products This move also provides customers with the opportunity to customize products according to their specific computing needs The significant enhancement in customer value through Dell's unique distribution strategy has propelled the company to a leading position in the market + Above all, Dell understands that a computer is not just a symbol of luxury but a tool for work and an essential part of daily life Therefore, in the event of a malfunction, Dell ensures quick repair support Additionally, they provide 24/7 advisory services, where 90% of knowledgeable users can resolve any issues within minutes of following instructions In 2011, Dell introduced two new customer support services called ProSupport (remote support) and Basic NBD* Onsite Support (on-site support) These services were specifically designed to meet the practical needs of customers in Vietnam, providing comprehensive and effective solutions - Whether distribution will be direct (not involving intermediaries) or indirect, if an indirect distribution strategy is adopted, the number of intermediaries to be selected (wholesalers, retailers, etc.) must be based on the following criteria: + Strong financial resources + Experience in the field of information technology + Capability to develop the company's market, with priority given to agents located in regions where the company needs to expand its distribution network - Modern customers are highly sensitive to "price" and "product features." Choosing distribution channels will require Dell to: 25 + To consider and understand the product characteristics, analyze market dynamics, customer preferences, as well as the company's financial resources and capabilities Enhance service quality to provide customers with a comfortable shopping experience in traditional stores rather than online channels, and ensure the company has sufficient resources to implement an appropriate distribution strategy + The distribution strategy of competing rivals also needs to be studied A comprehensive analysis of the cost benefits of each channel, compared with our own resources and capabilities, will help Dell develop an effective distribution plan Promotion This is one of the most important factors of Dell's marketing strategy in the computer technology industry The promotional strategy Dell implements involves participating in extensive marketing campaigns Dell primarily markets its products through advertisements in newspapers and on the internet, advertising in various print media, and sending direct marketing materials, such as advertising documents, catalogs, and customer newsletters, via mail or email In the U.S market, Dell began promoting its products through retailers such as Best Buy, Staples, and Carrefour In Vietnam, Dell's products are distributed in stores like FPTshop, TGDĐ, etc Customers who purchase their products are offered free gifts such as Belkin's bags, mice, and USB drives Furthermore, Dell provides brochures at the stores to introduce and advertise their products to customers The use of Dell's promotional strategy is highly effective Dell advertises through various channels, such as the internet, newspapers, etc When customers want to buy a laptop, they immediately think of Dell's products because the company's promotions are very attractive However, planning the advertising for Dell's marketing strategy requires the company to consider the following factors: - Consider AIDA (Awareness, Interest, Desire, Action) when developing the message - Advertising strategies such as direct selling or configuration advertising would be suitable if the company wants to promote the product - Collect information about the target market: who will buy the product? (Age, gender, income, and social status), what is their price sensitivity? And what 26 communication mode customers desire? Incorporate this information into the advertising plan - Select advertising options based on the information above and analyze the cost benefits of alternative choices - Use marketing tools to reach the market widely and cost-effectively Positive Word-of-Mouth (WOM) management will also result in better communication effectiveness - Finally, consider budget limitations and allocate the budget for selected advertising strategies according to their nature, importance, and frequency 4.2 Control plan ➢ Make a sales promotion plan to handle the excess inventory from the end of 2022 During the first six months of 2023, the laptop business situation in the Vietnamese market has been sluggish According to representatives from the Thế Giới Di Động system, the Vietnamese laptop market has been significantly affected by the inventory backlog from 2022, coupled with reduced purchasing power due to the economic downturn Laptop sales have declined sharply for several reasons, such as many customers already purchasing computers during the previous pandemic period, leading to a delay in the replacement cycle for new machines The economic recession has also resulted in a significant drop in purchasing power, adding pressure on inventory and causing the supply to exceed demand Additionally, related accessories for personal computers such as mice, 3G/4G USBs, and graphics cards are facing similar circumstances A distributor specializing in these products mentioned that only about one-quarter of the imported stock has been sold so far this year Not only is consumption challenging, but the prices of these items are also decreasing each week, estimated to have fallen by 2030% However, the third and fourth quarters of each year typically experience strong growth in the computer market due to the back-to-school season and year-end shopping Therefore, computer retail systems are expressing optimism and believe there are positive signs for market recovery in the second half of 2023 For this reason, Dell needs to prepare promotional sales plans to handle the inventory backlog from the end of 2022 ➢ Develop a website to help customers find where to buy products 27 - For online channels: It will be displayed similarly to the website https://dellstore.vn When customers search to buy any product, they can click on the online search option, and the website will provide links to purchase the products on various e-commerce platforms along with the selling prices This allows consumers to easily compare prices from different websites and make quick purchases Specifically: + Add a "Retailer Search" button below each product + Link to various e-commerce platforms (Tiki, Lazada Mall, Shopee Mall, etc.) to display product availability and prices - For offline channels: The website will determine the customer's location and display a list of nearby retail stores so that customers can easily visit the stores to view and experience the products The in-store staff can also assist with any queries and issues + Add a "Store Locations" tab alongside "Products," "Contact," and "News" on the homepage + Request the customer's location information + Display the nearest retail store locations based on the customer's location 28 CHAPTER EVALUATION 5.1 Strategic assessment Dell Technologies' End-to-End strategy is a truly unique approach Although Dell has been implementing this strategy for a long time, it remains one of Dell's outstanding strategies to date, and it is still being successfully executed in the global market This strategy helps Dell create significant value for customers, offering perfect solutions for enterprise customers, thereby attracting a considerable number of loyal customers to the Dell brand Additionally, it allows the company to stay ahead of the latest trends and strategies in the global information technology industry Below are some advantages of this strategy: - Comprehensive integration: Dell's End-to-End strategy allows them to control the entire process from product design, manufacturing, distribution, sales, and after-sales support This enables Dell to achieve consistency and quality management in all aspects of their products and services - Quality control: By holding the entire supply chain, Dell has the ability to control the quality at every step of the manufacturing process This ensures that the products produced meet high standards of performance and reliability - Enhanced customer experience: Dell focuses on providing a comprehensive experience for customers From designing products that meet customer needs to after-sales service and customer care, Dell creates satisfaction and trust among its customers - Strengthened customer interaction: By directly engaging with customers through various distribution channels, Dell can better understand customer needs and requirements This helps them offer customized and suitable solutions to their customers However, besides the above strengths, Dell's End-to-End strategy still has a few weaknesses: - Limitation of flexibility: Implementing the entire process from design to after-sales support may require significant resources and complex procedures This could make it challenging for Dell to adapt quickly to changes and market demands 29 - High costs: To maintain the End-to-End strategy, Dell must invest significant resources and systems to control and manage the entire supply chain This can lead to higher costs and impact the final prices of products - Limited scalability: For a large-scale company operating in multiple markets, maintaining an End-to-End strategy can become complex and challenging This could limit Dell's ability to expand and access new markets 5.2 Proposing marketing solutions for the strategy 5.2.1 Product strategy With the rapid development of technology today, if a business does not determine the appropriate timing for improvement, its products will quickly become outdated Therefore, to boost product consumption and stimulate consumer interest, Dell has undertaken improvements in quality, design, and services To create the ability to distribute end-user applications within a managed and secure framework for various customer devices and distribution methods, Dell needs to leverage data center infrastructure through these customer devices with comprehensive software and professional services Since this marketing strategy reflects a solution for customer needs, Dell must enhance and execute this aspect effectively 5.2.2 Pricing strategy With the Marketing strategy, Dell can further boost sales by: - Providing additional services alongside the products For example, once customers decide on a product, Dell will offer additional services such as antivirus protection, warranty, accessories, and provide premium color options at discounted prices - Utilizing direct sales and marketing systems can help Dell reduce costs and enable them to offer competitive prices for all their products 5.2.3 Distribution strategy Developing and expanding direct sales channels through stores and distribution agents, instead of solely focusing on website-based sales channels, is beneficial However, the use of intermediary channels has its limitations, as it cannot directly connect consumers with the manufacturer's services This is a crucial limitation for Dell's campaigns, and it necessitates the establishment of physical retail points and providing their own services, so that customers can access essential services without relying solely on the website's scheduling system Currently, this issue has not been adequately addressed, and the development of 30 direct sales channels and services is essential on a global scale Therefore, Dell should continuously innovate and listen to customers' practical needs, as keeping up with customer trends is key to Dell's success In new markets, to reach customers quickly, Dell should establish multiple direct stores for product distribution This method of direct delivery to consumers is the most efficient Additionally, Dell should expand its customer care network and ensure product quality for distributed items Wherever Dell computer stores are present, there should be warranty centers and customer support services If customers are unable to visit in person, Dell's technical experts will provide remote advice over the phone for any product issues, thereby building trust with customers 5.2.4 Advertising strategy Along with the development of society today, advertising is one of the essential needs and means in the process of formation, development, and survival of a product in particular and a business in general Advertising helps stimulate customer demand, create interest in products, increase purchasing power, and enhance market share It rapidly disseminates information about the characteristics and features of the product to the market Advertising contributes to supporting sales, reducing distribution costs because customers proactively seek out the products With the current social development, we have various ways to bring Dell's products closer to consumers Some effective forms of advertising include: - Internet advertising - Television advertising - Radio advertising - Advertising on banners, flyers, billboards 5.2.5 Public relations To position the brand in the minds of consumers, apart from advertising, the best way is to carry out PR activities PR is understood as a system of principles and activities that are organically related and consistent to create an image, an impression, a perception, or a certain 31 level of trust In our country, in recent years, some businesses have used PR as an important tool in marketing and brand development Therefore, to PR and develop the brand, Dell needs to implement the following activities: - Media and press relations - Organize well-planned events - Engage in community sponsorship activities - Direct non-commercial activities with customers 5.3 Lessons and management implications With the increasingly advanced development of the IT industry and the trend of Industry 4.0 revolution, companies operating in the technology sector like Dell must constantly update, innovate, and improve the quality of products and services to keep up with the rapid changes in the market, the remarkable development of technology, and the ever-increasing demands of customers when using technology devices and services For Marketing managers, it is essential to continuously update and predict market trends to build appropriate marketing and business strategies for the company Especially, all strategies must be built based on the needs and preferences of customers As Michael Dell - the founder and CEO of Dell Technologies - once shared: "The key to success is the customer." Despite facing many difficulties and challenges on the path of development, sometimes even going through crisis periods, Dell, as a large corporation, managed to overcome these hurdles Timely business method reforms, product improvements, customer policy changes, and especially proper business strategies have helped Dell gradually improve and resume growth The evidence is that Dell's revenue has continuously increased in recent years As of the current moment, Dell Technologies remains one of the leading computer technology corporations in the world 32 CONCLUSION In the process of leading an organization to success, building and implementing strategies are crucial aspects that managers need to focus on and understand thoroughly to make the most careful investments Without strategies, businesses will struggle to find the best direction and plan and execute activities to achieve their set goals In reality, the market economy is marked by fierce competition, and when businesses enter the "game," each well-crafted operational strategy helps them stand firm and maintain their position in the market Therefore, establishing strategies is essential for every organization, and managers need to have vision, provide the most appropriate directions for the business to operate strongly and continue to develop Clearly, Dell is a brand with intelligent and insightful strategic directions, among which the "End-to-End" strategy stands out Applying the "End-to-End" strategy has brought many benefits to the brand By understanding the needs and priorities of customers, Dell has created suitable products and services that deliver true value At the same time, managing and optimizing the production and supply process has helped Dell improve productivity and minimize waste Moreover, strengthening interaction with customers throughout the process from start to finish has built trust and confidence from customers, laying the foundation for Dell's sustainable development Alongside the success of using this strategy, Dell needs to maintain flexibility and readiness to adapt to rapidly changing environments Additionally, focusing on enhancing processes and technology to optimize the supply chain needs to continue and be continuously improved Only then can Dell enhance customer value, increase productivity, and build a solid foundation for ongoing development in the future 33 REFERENCES [1] Hồng Vinh (2021, August 26) Thị trường laptop: Tăng trưởng nóng cung khơng đủ cầu Retrieved from VnEconomy: https://vneconomy.vn/thi-truonglaptop-tang-truong-nong-do-cung-khong-du-cau.htm [2] Lê Hồng (2021, May 29) Dell cơng bố doanh thu kỷ lục đạt 24,5 tỷ USD quý Retrieved from Kinh tế & Đô thị: https://kinhtedothi.vn/dellcong-bo-doanh-thu-ky-luc-dat-24-5-ty-usd-trong-quy-dau-tien.htm [3] Lê Trọng (2023, July 9) Thị trường laptop nửa đầu 2023: Doanh số lao dốc, tăng áp lực tồn kho Retrieved from cafef: https://cafef.vn/thi-truong-laptop-nuadau-2023-doanh-so-lao-doc-tang-ap-luc-ton-kho-188230709192855776.chn [4] Mạnh Tuấn (2007, September 15) Người khai sinh thương hiệu Dell Retrieved from VnEcocnomy: https://vneconomy.vn/nguoi-khai-sinh-thuong-hieu-dell.htm [5] Thế Anh (2021, December 11) Thị trường laptop, máy tính lắp ráp sơi động dịp cuối năm Retrieved from Dân trí: https://dantri.com.vn/suc-manh-so/thi-truonglaptop-may-tinh-lap-rap-soi-dong-dip-cuoi-nam-20211210223901911.htm [6] TranceM2 (2021, November 23) End-To-End Là Gì? 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