A marketing and media plan for Dell Inc., the plan details specifics goals and tactics that will help reposition and increase sales and brand awareness as well as increase sales of its Dell branded tablets.
Dell Marketing Plan
Roland Royal
Table of Contents Executive Summary: Dell
............................................................................................................... 2
SWOT .............................................................................................................................................. 2 Strengths .................................................................................................................................... 2 Weaknesses ................................................................................................................................ 2 Opportunities.............................................................................................................................. 3 Threats ........................................................................................................................................ 3 Competition .................................................................................................................................... 3 Situation Analysis ............................................................................................................................... 3 Overall Goal .................................................................................................................................... 4 Strategy .............................................................................................................................................. 4 Key Messages ................................................................................................................................. 4 Target Market (Audience) .............................................................................................................. 4 Dell’s general target audience: .................................................................................................. 4 Dell’s General Tablet owner’s demographics: ........................................................................... 5 Rationale......................................................................................................................................... 5 Competitor’s Ads ............................................................................................................................ 6 Dells Current Ads ............................................................................................................................ 7 Current Market Ads ........................................................................................................................ 7 Media Kit ............................................................................................................................................ 8 Sources ............................................................................................................................................. 10 Images ...................................................................................................................................... 11
Executive Summary: Dell Dell is one of the world’s largest computer manufacturers. They are known for their computers and laptops. Dell is a B2C company and most of the time sells to the customers to eliminate the expenses that come with the middle man, this allows them to focus on making their company, products, and customer service better. Dell markets to a variety of people making it easy to have frequent consumers who buy from Dell. Recently the tablet computer has become a popular selling electronic for companies around the world. Dell wishes to cash in on this market with its 7in and 10in sized tablets. They will compete directly with Google Nexus, Amazon Kindle, Samsung Galaxy, and Apple iPad. Unfortunately due to the competition, low brand loyalty, mediocre customer service, and cheaper made parts than their competitors, Dell’s tablets have not been able to sell up to the standard that they want. Therefore the PR department plans to change Dell’s image and have their tablets be the headliners of their company. The PR department plans to focus on the history, and success of the company to put away their negative image. With this in mind, Dell PR expects to increase brand awareness by fifty percent while increasing domestic sales of their tablet line by fifty percent and overall sales by seventy‐five percent world‐wide. The campaign will run over a year’s time (12 months) and cover the medium of television, print, social media, and internet advertising. The success will be measured by sales in each sector of the company.
SWOT Strengths
Dell is one of the largest computer manufacturers in the world. They have a very well‐known name brand. Ars Technica states that “In America, Dell holds a huge chunk of the overall market and could be considered a household brand.” This is definitely a plus for Dell, because their company will come to mind when people think about buying a computer. Dell has partnerships with companies to get their products out there. Such partnership is with Lexmark to produce printers. The Ecommerce Times says “Dell recently signed an agreement with Lexmark (NYSE: LXK) to produce printers bearing the Dell name. At first, Dell will resell Lexmark printers during the 2002 holiday season. Then, in the second half of 2003, Lexmark will start building Dell‐branded inkjet and laser printers and peripherals.” This puts Dell into the printer competition alongside its competitors Hewlett‐Packard (HP), Xerox, & Canon. Dell is a “green” company and cares about making technology environment friendly. They promote recycling of old parts for new ones. Dell says “Dell has recycling programs that allow for the free return of all Dell branded product. In addition, Dell has several convenient programs that accept any make or model of computer, monitor, printer, or peripheral device.” Weaknesses Dell does not have stores to buy and service their equipment at. Pierian Articles says “Having no stores is a strength for Dell, but it is also a weakness—customers have no place to “bring” their computer for service and repair. Computers are becoming so complex that buyers may no longer want to buy online. We want someone (think Best Buy’s “Geek Squad”) to come to our home to set it up.” The strength that Pierian is talking about is cost wise. Dell has so many products that recalls are bound to happen. According the Marketing Teacher “The Company has such a huge range of products and components from many suppliers from a
plethora of countries, that there is the occasional product recall that can cause Dell some embarrassment.” This embarrassment may cause a loss in revenue due product returns, refunds, and exchanges. Dell is lacking in the marketing department and constantly fails to produce campaigns that will position them directly in line with their competitors.
Opportunities
Dell is introducing a new innovative approach. The Flexible Computer Innovation helps the IT departments navigate easier. Dell says “Dell’s new client computing vision for the enterprise — Flexible Computing — is delivering client computing solutions that augment Dell’s traditional PC offerings and enable IT to navigate their increasingly complex environment.” They needed to develop this innovative approach, because in order to make better products they need to understand the new complex environments. The ability to differentiate themselves from their competition.
Threats
Dell has many competitors in its market. This is the main threat and according to The Marketing Teacher “Dell is pursuing a diversification strategy by introducing many new products to its range. This initially has meant good such as peripherals including printers and toners, but now also included LCD televisions and other non‐computing goods. So Dell compete against iPod and other consumer electronics brands.”
Competition Company: Hewlett‐Packard Co. (Main Competitor) Company Overview: Hewlett‐Packard (HP) is one of the leading computer makers in the world. HP is known for its printers and “All‐in‐Ones” (Printers‐Scanners‐Copiers). HP is Dell’s biggest rival. From the HP site “Stanford University classmates Bill Hewlett and Dave Packard founded HP in 1939. Company: Gateway Inc/Acer. (Subsidiary Competitor) Company Overview: From the Gateway site “Founded in 1985 in an Iowa farmhouse, Gateway has grown into one of America's best‐known brands with millions of satisfied customers. Starting with a $10,000 loan guaranteed by his grandmother, a rented computer and a three‐page business plan, Ted Waitt turned Gateway into a revolutionary company whose innovations helped shape the technology industry.” Gateway is a subsidiary competitor to Dell therefore it they do not directly affect the company itself, however Gateway is still in the same market as Dell and may take some business from them. Gateway recently has fallen behind in sales thus sparking a buyout by Acer Company: Apple Inc. Company Overview: “Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics, computer software, and personal computers. The company's best‐known hardware products include Macintosh computers, the iPod, the iPhone and the iPad.
Situation Analysis The problem at hand is the fact that the Dell brand has gained an image of “cheap” and “lackluster”. Furthermore their customer service has been rated poor gaining the title “Dell Hell”. According to Consumer Affairs (a website where complaints about customer service are handle), Dell received a one
star out for five rating, racking in over two thousand complaints (ConsumerAffairs). So to shatter this image Dell needs a new plan that will showcase their brand as a top competitor, couple this need with their slow sales of tablets and you have a PR situation
Overall Goal The Goal is to increase brand awareness in a highly competitive market. Its also to increase sales of its tablet PCs. We want people to know that Dell is a viable option when shopping consumer electronics, and that we are not that cheap brand with bad customer service.
Strategy My creative strategy is to advertise their new products using a new design and new tagline that will reflect the new message and corporate identity Dell will have. I will do this by posters, ads, and advertisements on the web. The posters would show all new products and products to come from Dell along with specs. They will be packaged with shipments, sent in bulk mail, and posted in electronic stores, department stores, and any other type of store that sells computers. The ads will be sent through mail, email, put in newspapers and magazines, and also put in with their catalogs. The ads on the webs will be displayed on different web pages and streaming music services such as Pandora and Spotify. Billboards are also in the marketing plan along major highways and arteries in cities. My ads will cover all new and upcoming products from Dell. The ads will run the header “Dude! It’s a Dell”.
Organize community events such as showcases, live demos, and product tours around the country to increase product awareness of its new tablet, and overall brand awareness by at least 50%.
Partner with leading distributers to properly place, and offer great incentives for purchasing a Dell branded product, and discounts on Dell branded Tablets, to increase sales 50%.
Develop a multi‐national advertising campaign that showcases its tablet PC as the rebranded headliner to increase sales 75% worldwide.
Key Messages The current corporate tagline and message is: Dell: Power to do More
I want to dig into the Dell tagline vault and pull out one from the 90s (Dude! You’re Getting a Dell), however I want to rephrase this based of the notion that Dell Computers are different, they have better prices, award winning series of pcs and tablets, and an improving customer service, simply put: Dude! It’s A Dell
Target Market (Audience) Dell’s general target audience:
Unlike Apple, Dell’s target audience reaches a broad audience. Apple appeals to users who are in the market for their products (they have the money to afford the prices that they charge). Acer and HP however share a similar but different target audience. Acer appeals more to gamers as they offer high end more powerful computers, but still in the same age groups, marital status,
etc; however they are more expensive. HP appeals to people who are in the market for entertainment PCs which are slightly more expensive but not much but are not meant to appeal to people ages 35‐54.
The tone that will be used will be a fun, techy tone that will detail the best specs for their most popular products. They need to position themselves in an area where they can safely say that their best product is better than others but show that they are cheaper and more efficient.
Age Group: 18 – 24
o
Males & Females
o
Students
o
Low Income Families
o
Minorities
o
Age Group: 35 – 54 o
Males & Females
o
Middle Income Families
o
Married or Single
o
Retired individuals with families
o
People who work in the corporate world
o
Business owners
Age Group: 25 – 34 o
Males & Females
o
Married or Single
o
Lower – Middle Income Families
People who work in the corporate world
Dell’s General Tablet owner’s demographics: Target Audience for tablets based off findings done by NewMedia TrendWatch pulled from (pulled from tnooz 2102): “Demographic profile of tablet owners in the US, 3 month average ending June 2012: GENDER:
Male: 50.0% Female: 50.0%
AGE:
13‐17: 5.5% 18‐24: 13.0% 25‐34: 24.2% 35‐44: 20.6% 45‐54: 18.1%
55‐64: 11.0% 65+: 7.6%
HOUSEHOLD INCOME:
<$25k: 7.8% $25k to <$50k: 18.1% $50k to <$75k: 19.1% $75k to <$100k: 16.7% $100k+: 38.4%”
Rationale Since there are three main marketing groups for Dell and we want to target everyone one of them, we will represent each media for each group.
Visual ads for the 18‐24 age groups. This age group uses the internet a lot, and is mostly visual learners. App advertising, web banners, and promotional posters usually lure this age group in.
Verbal ads for the 25‐34 age groups. Since this is the age group that is working and on the go, radio ads, and ads on music services like Pandora, Spotify, etc will work wonders.
Written ad for the 35‐53 age group. Since this age group has a bit more time to read magazines, newspapers, etc; written ads can appeal more to them.
Competitor’s Ads
Each of Dell’s competitors has a specific message and brand placement they are trying to go for. While each one wants to be one of a kind, there are separate reasons for them to be one of a kind. The first ad is from Apple, and it reads “There’s iPhone and Then There’s Everything Else”. It is clear that Apple is positioning itself ahead of the pack when it comes to smart devices. Not only do they picture their devices doing different things simultaneously, they showcase their simple, easy to use, and award winning UI. They want to separate themselves from their competitors as being the number one choice smartphone with the easiest to use interface. Next there is Acer by Gateway, while the imagery on here is not the best; the wording is what positions Acer in a higher position than their competitors. “I am smarter, faster, simpler, I am Acer” this ad positions them in a direct position with pc providers who claim they are either: smarter, faster, or simpler. By claiming all the titles, they showcase their product as having all these features and not just one. Also they list the specs further reinforcing their claims listed in the ad’s tagline. Last but not least is the HP ad. HP has moved onto celebrity endorsements as shown in the ad with singer Alicia Keys. They are positioning themselves as providing entertainment machines. They steady this position with the tagline “Every Passion has a beat”. This tagline appeals to consumers in the industry for a computer that can handle entertainment software. They have positioned themselves as direct competitors for companies like Apple, and Dell who have similar claims.
Dells Current Ads Currently Dell runs ads via print (bulk mail, magazines, brochures, pamphlets, some posters), web, and mobile advertisements. To the left are two styles of advertisements that are being used by Dell. There are things that are great about these ads and some things (design wise) that do not work. While simple in nature, the ads do pop. The contrasting colors and bold showing of devices makes the consumers eye catch it. But this is where Dell fails to hold attention. Compared to some of their competitors (HP, Sony, Samsung, Apple, etc) there is nothing catchy or anything yet remembering (except for the prices) about these ads. While I understand the medium that they are using and it saves them time and money to showcase the product, with stats a price and a title then add a logo, I think if more time was added to actual design more people will be willing to investigate. What they need is a totally new image starting with their main avenue of advertising, print and web.
Current Market Ads
Above are current advertisements, running in the same target market as Dell. These ads work great for these markets. Each group in the target audience loves to feel unique and all use smart phones or cell phones, so LG definitely fits. Families will find the Panasonic and Samsung Ads great simply because its something everyone can use. One the other hand, singles and colleges students will find the ads equally as important as they too are in the markets for these items. Unfortunately for Dell, these advertisements are more design savvy, and seek to capture the consumer’s eye. The first ad is from Sprint & LG. It features an LG phone with customizable “skins”. The imagery is great in this ad. First and foremost you notice a desaturated subject with highly saturated designs on her, this is a direct comparison to the phones “skin” and how it is unique to you. The composition also works really
well. The large subject placed offset right in the frame draws your eye into seeing what the text and product is offset left This is great advertising done by LG/Sprint here. Second is an ad ran in a magazine by Panasonic. Now Panasonic is not a big competitor in 3D televisions which is dominated by Samsung, LG, and Vizio. However this clever ad definitely gives all three a run for their money. Again the imagery is what tells the story here. Panasonic doesn’t even use words since the imagery is speaking for itself. What you see is apparently a dinosaur who came out of the TV with a lady telling it to get back in. Simply stated, Panasonic’s 3D Viera Series TV is so realistic the movie stands right in your living room. Next Samsung took a similar stance with their sound system ad. Like Panasonic they relied heavily on imagery to speak to the consumer. Here we have 6 trumpets each represents a piece of the home theater system being advertised (pictured in the bottom right corner) all placed around a chair. The message here is that Samsung’s home theater system is so amazing, that its sounds like live instruments all around you. All messages in these ads are told through imagery, something that Dell can learn from given the fact that design and imagery is something they lack. Composition of each ad is also very well done. When creating the new Dell campaign, it composition will play a key in catching the viewer’s eye. Dell needs something to draw their consumers in like LG, Panasonic, and Samsung did above. I think that once this happens they will position themselves back where they want to be and their brand recognition will skyrocket once again.
Media Kit Newspapers (4/1/14 – 3/30/15) *repeats weekly throughout the year
USA Today (Online Newspaper) Half Page Electronic Ads o Week 1: $259,000 o Total Spending: $259,000 Total Newspaper Spending: $259,000
Magazines (4/1/14 – 3/30/15) *repeats each month
Game Informer o 1 month full color ad: $186,148 Sports Illustrated o 1 month full color ad: $392,800 Sizing/Color: 8.5x11 Full Color Total Magazine Spending: $578,948
Direct‐Mail: Deadlines (4/1/14 – 3/30/15)
Total Direct Mail: $15,000
Sizing/Color: Front and Back full color, printed ad, 8.5x11
Billboards: I‐95/I‐64/I‐195 Deadline (4/1/14 – 5/1/15) *repeats each month
Sizing/Color: 13 Panel Full Color o 4 weeks ($16,276(3 billboards)) = $195, 312 Total Billboard Spending: $195,312
Radio Ads (Spotify/Pandora/Banner Ads): Deadlines (4/1/14 – 3/30/15)
4 stations/10 times a week = $6000 45 second advertisment Total Radio: $6000
Total Spending $837,948
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