Strategies (Retail) of Dell computers

Strategies (Retail) of Dell computers

Dell's corporate computer business has slowed in recent years, forcing the company to increase its efforts to attract personal computer users. In the fall of 2007, Dell announced partnerships with major computer retailers, including Wal-Mart, Best Buy and Office works. These partnerships ended Dell's historical reliance on the direct-to-consumer channel and allowed the company to access the mass merchandise distribution channel, which is an enormous potential business opportunity for the company. Dell continued its direct-to-consumer marketing initiatives but also sought to promote its new partnerships in television and print advertising, often in conjunction with its retail partners. In doing so, Dell has begun to compete more heavily on price, as retailers such as Wal-Mart are known as low-price shopping destinations for all types of goods. Recently, Dell's marketing efforts have been less focused on product features and customizability and more focused on low price as the defining feature of Dell computers.

History of Dell

Michael Dell founded Dell in 1984 while he was a student at the University of Texas at Austin. Michael Dell believed that consumers would value the ability to customize their computers and purchase them directly from the manufacturer rather than through a retail store. Consequently, Dell's initial marketing strategy was to convince individual and corporate computer purchasers to buy computers directly from Dell via the Internet. In its early years, Dell targeted most of its marketing efforts at medium and large businesses that needed to purchase numerous highly customized computers that would fit seamlessly with their business processes. Dell began advertising at electronics trade shows, in trade magazines and through other mediums targeted at corporate chief technology officers, who were responsible for their companies' computer purchases. In marketing to these executives, Dell highlighted the ease of customizability, the simplicity of placing orders through Dell's website and Dell's rapid order fulfillment abilities. The company also promoted its "Premier Pages" service, which provides corporate customers with 24-hour technical support services. This marketing effort allowed Dell to become a dominant supplier of computers to medium and large businesses in the 1990s and early 2000s.

Focusing on Personal Users

In the early 2000s, Dell attempted to diversify its business by targeting personal consumers, such as families and students that needed to purchase computers. In doing so, the company highlighted many of the same features, including customizability and ease of ordering. Dell targeted personal consumers through direct email campaigns as well as television and print advertising. Additionally, Dell introduced a number of new products and features that personal users value, including enhanced graphics and sound cards as well as multicolored laptops. Dell also promoted larger servers and consulting services to its corporate customers as a way of grabbing a larger share of the corporate market and competing with companies such as IBM. Dell relied heavily on direct-to-consumer marketing efforts (such as electronic and paper mailers) in promoting both its personal and corporate computer products.

Dell's Retail Strategy

Dell's corporate computer business has slowed in recent years, forcing the company to increase its efforts to attract personal computer users. In the fall of 2007, Dell announced partnerships with major computer retailers, including Wal-Mart, Best Buy and Office works. These partnerships ended Dell's historical reliance on the direct-to-consumer channel and allowed the company to access the mass merchandise distribution channel, which is an enormous potential business opportunity for the company. Dell continued its direct-to-consumer marketing initiatives but also sought to promote its new partnerships in television and print advertising, often in conjunction with its retail partners. In doing so, Dell has begun to compete more heavily on price, as retailers such as Wal-Mart are known as low-price shopping destinations for all types of goods. Recently, Dell's marketing efforts have been less focused on product features and customizability and more focused on low price as the defining feature of Dell computers.