Capstone Project Dell PDF

Applied Marketing Project (Capstone) – 24100
Bachelor of International Marketing
Student Name: Christian Eide

Tutor: Dr. Nigel Bairstow
University of Technology, Sydney
“This paper is done as a part of the undergraduate program at BI Norwegian Business School. This does not
entail that BI Norwegian Business School has cleared the methods applied, the results presented, or the
conclusions drawn.”
Applied Marketing Project 24100 06.06.2017
Table of Contents:
Executive Summary ......................................................................................... iii
1.0 Internal Analysis ......................................................................................... 1

1.1 Description of company and product line ........................................................... 1
1.2 Business Model Canvas ....................................................................................... 1
1.3 Resource Audit ................................................................................................... 2
1.3.1 Human Resources ............................................................................................. 2
1.3.2 Physical Resources ............................................................................................ 3
1.3.3 Financial Resources .......................................................................................... 3
1.3.4 Intangible Resources ......................................................................................... 3
1.4 Value Chain Analysis ........................................................................................... 4
1.4.1 Inbound Logistics .............................................................................................. 4
1.4.2 Operations ........................................................................................................ 4
1.4.3 Outbound Logistics ........................................................................................... 5
1.4.4 Marketing & Sales ............................................................................................. 5
1.4.5 Service .............................................................................................................. 5
2.0 External Analysis ........................................................................................ 6

2.1 Market Analysis .................................................................................................. 6
2.2 Competitor Analysis ........................................................................................... 8
2.3 Customer Analysis ............................................................................................ 10
2.4 PEST Analysis .................................................................................................... 13
2.4.1 Political Forces ................................................................................................ 13
2.4.2 Economic Forces ............................................................................................. 13
2.4.3 Socio-cultural Forces ....................................................................................... 14
2.4.4 Technological Forces ...................................................................................... 14
2.5 SWOT Analysis .................................................................................................. 15
3.0 Marketing Objectives ................................................................................ 17

3.1 Sales Objective .................................................................................................. 17
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3.2 Marketing Objectives ........................................................................................ 18
4.0 Target Markets and Positioning ................................................................ 19

4.1 Segmentation .................................................................................................... 19
4.2 Target market ................................................................................................... 19
4.3 Positioning ........................................................................................................ 19
5.0 Key Strategies ........................................................................................... 22

Strategy Option 1 .................................................................................................... 22
Strategy Option 2 .................................................................................................... 22
Strategy Option 3 .................................................................................................... 23
6.0 Key Recommendations ............................................................................. 23

6.1 Recommendation – Strategy option 1 ................................................................ 24
7.0 References ................................................................................................ 28
8.0 Appendix .................................................................................................. 33
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Executive Summary
Based on the research conducted, three main issues have been identified as the
most receptive to change:
1. The value proposition of the Latitude 2:1 Notebook’s is not well
communicated to the market.
2. The indirect sales model is weak and only accounts for 14% of Dell
product sales.
3. The line between the private and the enterprise market have become more
blurred, and Microsoft and their Surface Pro have started targeting
businesses of different size.
These issues are also seen as being the key opportunities for Dell in order to
increase its competitive position in the 2:1 Notebook market. The strategy options
proposed in order to cope with the identified key issues are:
Strategy Option 1
1. Change promotional activities’ focus from communicating the overall
brand, to communicate the Latitude characteristics and specifications.
2. Develop a new IMC plan in order to change the scope of the promotion.
3. Let commercial customers try Latitude products for a period as a trial.
Strategy Option 2
1. Improve communication links between parties, and better align business
goals with participants in the indirect sales model.
2. Consider appointing a Marketing Manager to assist with promotional
activities for wholesalers and resellers.
3. Consider giving incentives to wholesalers and resellers for them to
promote products and services more efficiently.
Strategy Option 3
1. Focus on the high-end premium business segment with the Latitude range.
2. Emphasise and leverage the competitive advantage derived from product
performance, reliability, total cost of ownership (TCO) and after-sales
service.
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1.0 Internal Analysis
1.1 Description of company and product line

Dell is a computer and technology company founded in 1984 by Michael Dell.
Dell technologies consist of seven brands, and they are the world's largest
privately owned technology company (Dell 2017). Operating in 180 countries and
bringing in revenue of $72 billion last year, Dell is a considerable force within the
technology industry (Dell 2017). However, the company has a low debt to
revenue ratio (Business Insider 2015). The company has gained acknowledgment
regarding their supply chain management, and for successfully building e-
commerce with a direct business sales model (CNN 2013). Dell is considered one
of the most secure, reliable and manageable technology brands on the market,
which has led to a strong brand within the B2B segment. Dell was in the first
quarter of 2017 the third largest PC vendor in the world, and as an entrepreneurial
company, they have been able to follow market trends and stay relevant within
rapid changes in the technology industry (IDC 2017). 2:1 Notebooks are the
fastest growing part of Dell Australia. They have introduced three series of 2:1
Notebooks; the Inspiron series which is targeting the mainstream user, the XPS
series is targeting power users and creative professionals, and the Latitude series
specialized for business (Laptopmag 2017).
1.2 Business Model Canvas

A business model canvas has been constructed to assess how Dell creates, delivers
and captures value. These factors are demonstrated through the analysis of the
four core areas of the business: customers, offer, infrastructure and financial
viability. The core information is covered in the “nine building blocks” as evident
in the canvas.
One important aspect to notice is the value propositions; how Dell’s Latitude 2:1
Notebook meet customer needs better than their competitors. These value
propositions are not being communicated in a desirable way.
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* The Latitude 2-in-1 Notebook will not be introduced to the retail market, but
JB-Hifi and the retail channels are still mentioned as they play a major role in
Dell’s business model.
1.3 Resource Audit

Using a resource audit analysis, Dell can examine their core strengths, assessing
human, physical, financial and intangible resources. Each of Dell’s resources that
distinguish them from their competitors is a competitive advantage, and this will
guide Dell on the way to long-term success (small business 2017).
1.3.1 Human Resources

Through a connected workplace, Dell’s human resources sustain as highly mobile
and flexible. Ongoing development through leadership training and skills
development keep the workforce and leads them to achieve their goals (Dell n.a).
Dell provides opportunities to develop their employees; therefore the need to hire
new employees for new projects is small. The company currently has 145,000
team members including a market leading direct sales force, and 30,000 full-time
customer service team members delivering best of breed customer service and
support (Dell 2017).
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1.3.2 Physical Resources

Dell outdoes other 2:1 Notebooks on performance. Hardware reliability,
consistency in performance and replacement parts availability has led to effective
support and loyal Dell customers (‘Dell Notebooks are the most reliable according
to Customer Satisfaction Research’ 2015). Dell is considered one of the most
secure, reliable and manageable technology brands on the market. Their
successful direct online sales model sets the company apart from their
competition, and 2:1 Notebooks are the fastest growing part of Dell on the
Australian market (Dell 2017). The total cost of ownership (TCO) is an important
factor for the customer satisfaction of 2:1 Notebooks (‘Dell Notebooks are the
most reliable according to Customer Satisfaction Research’ 2015).
1.3.3 Financial Resources

DELL reported $72 billion in revenue in the year 2016 (DELL 2017). The balance
of profitability and growth is driven by strategic investments in areas that deliver
long-term results (Dell 2016). Despite Dell’s revenue, their debt is considerably
high mainly due to the $67 billion acquisition of EMC (Nytimes 2016). The
benefits of the made to order business model creates low risk of inventory damage
and maintenance cost, and contributes significantly to DELL’s financial
performance. However, the market maturity drives down margins for
commoditized lines of business (DELL 2017). A $12.7 billion investment in R&D
the last three years, and $4.5 billion R&D investment annually going forward is
indicating a commitment to delivering new and better solutions and continuing to
be a leader in technology innovations (DELL 2017). Nevertheless, Dell does not
have high R&D investment regarding their revenue, compared to their competitors
(Cnet n.a).
1.3.4 Intangible Resources

In over 25 years in local Australian operations, Dell has managed to maintain a
position as a leader in technology and achieves a higher satisfaction score than the
average notebook market in the quarterly customer satisfaction (CSAT) studies
(‘Dell notebooks are the most reliable according to Customer Satisfaction
Research’ 2015). Dell has a strong business model in place for the B2B market.
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Their corporate customers can “try and buy” Dell products, meaning they can
lease the products for a certain amount of time with no commitment. The is one of
the reasons they hold a strong brand name in the B2B segment, especially in the
education and certain commercial segments. Dell’s company culture decides how
the company builds their products, work with their suppliers and sustain
operations.
1.4 Value Chain Analysis

To find Dell’s competitive advantages, Porter’s Generic Value Chain is utilized to
examine all of the company’s activities and how they are connected to each other
(Porter and Millar, 1985). A value chain is a set of operations carried out by a firm
to create value. By looking at how the supporting activities affect each of the
primary activities we seek to understand where Dell is creating value, and where it
can increase its investments to create more value to increase its competitiveness.
1.4.1 Inbound Logistics

Inbound logistics are the processes concerning storing, receiving and distributing
inputs within the company, and Dell’s relationships with suppliers play an
especially important role. Dell has focused on supplier development to empower
sustainable growth in the supply chain. (Dell 2016). Materials for the production
are shipped within 2 hours after receiving an order. This procedure is possible due
to dual order placements between both Dell and its suppliers simultaneously. Dell
order every part they need from suppliers, and then assembles everything
themselves, which creates competitive advantages for them by withholding
private information. In addition to this Dell utilize a Just-in-time philosophy.
Proper management of these procedures creates value for Dell with cost
leadership for most of its products and services, as well as low inventory costs and
maintenance cost.
1.4.2 Operations
By assembling parts, Dell can offer their customers a high level of product
customization, which is one of their major competitive advantages. For the 2:1
Notebooks, the operation process consists of three stages; assembly of standard
parts, installation of custom parts, such as the different processors, and installation
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of software. All the steps are tested to check if configured correctly. It is essential
with excellent expertise in the entire process, to make products of the highest
quality, can see and fix product defects, be efficient and innovative. This is an
advantage for Dell, as their employees are highly educated, are up to date on
technology and are specialized in their field. This will also cut down the
technology costs of the assembling process.
1.4.3 Outbound Logistics

Once the devices are assembled, they are sorted based on destinations. The
devices are stored in a logistics hub and shipped either directly to the customer, or
indirectly through wholesalers like Dicker Data, Ingram Micro and their resellers
(ARN 2017). Due to the efficient mass customization Dell can be punctual, and
shorten the time between the order and delivery. The short lead time between
ordering and receiving a 2:1 Notebook, adds value to the end users.
1.4.4 Marketing & Sales

Dell is focusing more on branding than marketing of their products. They are not
investing heavily into the promotion of a single product category but emphasizes
solution-based positioning. Due to the importance of creating and preserving
customer relationships, Dell’s network and HRM activities help cut down
marketing costs. Dell is spending 3% less than Microsoft on marketing
communication (Dell 2017).
1.4.5 Service
Pre-and post-customer support is another of Dell’s competitive advantages. Dell is
the market leader when it comes to supporting and after-sales service options for
the business. They offer 24x7 support and 4 hours’ service level agreements.
Dell’s employees take approximately 50,000 phone calls each day from their
customers, logging everything in solid CRM systems. These systems are sent to
managers for further handling. Dell is one of the biggest providers of security and
blocked 2.17 billion IP attacks in 2015 (Dell 2016). Significant amounts of
resources are being allocated to pre-and post-support and are handled by Dell’s
exceptionally well-trained employees.
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2.0 External Analysis
2.1 Market Analysis

The following section consists of a market analysis. This analysis includes an
overview of the industry, Dell’s 2:1 Notebook target market, projections for the
business, and necessary regulations for Dell to consider.
Industry description and outlook: “According to the research consultancy IDC, the
global information technology (IT) industry market, encompassing hardware,
software, services, and telecommunications, was expected to reach $3.8 trillion in
2016, up from $3.7 trillion in 2015.” (CompTIA 2016; Appendix 5). In the global
IT market, IT hardware, software, and services account for 59%. In the computer
industry, it is becoming increasingly more important to invest in areas such as IT
support, software development, cybersecurity, data analytics, and related skills.
“Many organizations view the further development of tech talent in-house as a
strategic imperative.” (CompTIA 2016). One of the major technological trends is
the emphasis on security, and companies tend to focus towards this emerging
trend. This can be seen as a result of the adoption of new technology and reliance
on digital data (CompTIA 2016). Considering the emergence of IT, attacks from
hackers has now shifted from individuals to businesses of all sizes.
The computer industry involves several products, and looking at 2:1 Notebooks it
is particularly necessary to note that desktops/laptops have a 36% potential to
underperform, 59% potential to perform as expected and 5% potential to over
perform (Appendix 6). For 2016, the IT industry growth rate is estimated at a rate
of 4.9% in current dollars, with upside potential of 7.1% and a downside of 2.7%
(CompTIA 2016). As mentioned previously focus lies in the cloud applications,
cloud infrastructure, and security. However, the global industry is expected to add
about $100 billion in revenue in 2016, which will involve a mix of foundational
product categories, such as PC’s or servers (CompTIA 2016).
Dell has less than 10% market share in the 2:1 Notebook market in Australia (Dell
2017). However, it is hard to estimate an accurate market share, because of the 2:1
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market is in the early phase of its product lifecycle. Microsoft is spending large
amounts of capital in order to drive adaptation in the market and is looking to
move beyond the chasm between early adopters and the early majority (Rogers
2003). Convertible Notebooks are the fastest growing part of the Australian client
market (Dell 2017). Sales are estimated to triple from more than 500,000 this year
to nearly 1.5 million in 2017 (Telsyte 2017). Telsyte expects Windows-based
tablets and 2:1 Notebook will grow to around a third of the market by 2017. “The
latest findings show that Australians are moving significantly away from sub-
premium (or low-cost) tablets. According to Telsyte’s Australian Digital
Consumer Study 2017, around 40% of Australians are willing to pay more for ‘top
quality electronics’ as digital devices become central to the consumer lifestyle”
(Telsyte 2017).
The market for desktop computers and laptops has had another tough year.
Overall shipments of PCs dropped 5.7% year-over-year (Fortune 2017). However,
Dell was ranked third regarding units shipped in 2016 (40.7 million) below
Lenovo (55.5 million) and HP (54.2 million). Lenovo had a 3% decline, but Dell,
however, had a 4.3% increase from the previous year (Fortune 2017). Lenovo
operated with a market share of approximately 21% in 2016, HP with 21% and
Dell with 16% (IDC 2016). Despite shipments declining in 2016, IDC said that
overall fourth-quarter shipments results indicate a possible PC market rebound in
the New Year (Fortune 2017). The PC market has declined over the last years, but
recently it has been a positive trend, due to users wanting to update products and
systems.
With two consecutive quarters of strong market growth, it is believed that the
strong market performance is mostly driven by an increased appetite from the
channel for inventory, not strengthened demand (IDC 2016). The convertible
Notebook market can still be seen as unexplored. It is essential to understand that
customers must feel the need for buying a 2:1 Notebook.
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2.2 Competitor Analysis

In order to determine how competition can impact Dell, a competitor analysis, and
industry analysis has to be conducted (Porter 2008). The threat of new entrants is
low because of high barriers to entry, incumbents have created big brands, and
there is a high level of brand loyalty. However, the line between the private and
the enterprise markets have recently become blurred. This trend enhances
competition between players in the industry, independent of whether they
primarily sell to individual consumers or to the commercial market. The threat of
substitute products is high because new products are constantly being developed
and introduced to the market, similar to how 2:1 Notebooks were introduced as a
combination of the laptop and tablet. The suppliers bargaining power is relatively
low, as a result of Dell being able to negotiate on prices with different
manufacturers. Unless strong relationships are established, the switching cost is
low. Customers have high bargaining power because they have easy access to
information about products in the market and their specific attributes. This
challenge the companies to offer customers the best quality possible at a
competitive price. There could be high switching costs due to brand loyalty, and
operating systems can affect the way in which customers are willing to change.
Purchasing a 2:1 Latitude from Dell and learning how to use Windows instead of
MacOS creates a high switching cost, if the client has been using an Apple
MacBook previously.
The IT industry is highly competitive, because of constant change and

development in technology. This causes innovation, lower production costs, and
better products because companies depend on high performance in these areas in
order to stay competitive. Not all of Dell’s competitors focus on the 2:1
Notebooks to the same extent because one of the main drivers in the industry is
currently cloud applications. However, market share in this segment is still
important. Each of Dell’s products can be customized, and they are more powerful
than their competitors’. This is particularly relevant for the identified segments
because different occupations need different levels of power.
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Competitive information from the primary research:

Based on a survey answered by end users, Microsoft is the “top of mind” brand
when it comes to 2:1 Notebooks, along with DELL, Lenovo, and HP (Appendix
7). The analysis also shows that many consumers associate 2:1 Notebooks with
Apple even though they do not produce 2:1’s. Apple’s iPads can be seen as
substitutes to the 2:1 Notebooks but does not possess the same power and
software system as a 2:1 device. Based the primary research and secondary data,
Microsoft is proven to be the market leader in the 2:1 Notebook market, while
companies like Dell, Lenovo, and HP maintain a rather small piece of the pie.
Microsoft was the first company to launch a 2:1 Notebook. They have spent a
high amount of money on developing, growing and adapting the market further,
and has maintained a good reputation and strong brand loyalty. Their 2:1
Notebook Microsoft Surface Pro is easy to use with a powerful Intel chipset and
Windows software. Furthermore, the Microsoft Surface Pro is their best-selling
product. Microsoft is a global business with a strong consumer brand and user
sentiment. They invest significant capital and attention to marketing and
promotion in order to drive customer perception of the Surface Pro and to drive
adaptation of the 2:1 Notebook market. Microsoft is globally known for its
excellent software system, and this specialty gives them a major competitive
advantage. However, they are not a great hardware company and spends
significant resources on R&D and hardware manufacturing. Microsoft and their
Surface Pro has long been positioned for retail and small business consumers
being attractive for individual customers to purchase and use these products at
work. Microsoft´s entry into the commercial market creates a major threat for Dell
which is aiming to become the leader in this market.
Lenovo is usually ranked number 2 or 3 in the Australian market for client devices
based on a quarterly cycle. They are aggressive in the channel business with
eroding margins across the industry. Lenovo is very agile and is willing to pursue
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market share (Dell 2017). Design, support, and innovation are some of Lenovo’s
main strengths. Seen as an enterprise, Lenovo is price aggressive because they
pursue their market share goals. They follow disruptive strategies to generate
stronger traction in channel markets. Like Dell, Lenovo has a consistent presence
in government and education markets (Dell 2017). Weaknesses for Lenovo are
that customers have mixed feelings about detachable 2:1 Notebooks and
customers are not impressed by the features offered. Lenovo covers almost all the
major niches of laptops (Dell 2017). However, Lenovo’s 2:1 products do not
provide the same range of performance ability as Dell (Lenovo 2017).
HP is ranked number 1 in the Australia and New Zealand (ANZ) market for client
devices. They operate with a strong channel business and emphasizes marketing
and promotion heavily. Marketing of individual products is a major advantage for
HP compared to Dell – which primarily focuses on brand marketing. HP is
number 1 in server sales in the ANZ market, operates with a strong storage and
networking business, and has a strong channel presence and reseller networks
(Dell 2017). However, HP has poor acquisition decisions. They are heavily
dependent on computer and printer sales, and the decline in computer sales
internationally is expected to wallop HP.
2.3 Customer Analysis

Due to Dell’s strong brand in the B2B segment, they find customer relationships
important. To identify potential segments in this market, primary research
consisting of interviews with wholesalers and resellers, and an end-user survey
with 166 respondents have been conducted. This resulted in the identification of
four main customer segments for Dell’s 2:1 Notebook range in the Australian
market. The segments are created based on respondents’ occupations, if they
found a 2:1 Notebook beneficial, and if they would purchase a 2:1 Notebook in
the future. The segmentation is based on the assumption that the needs and
preferences are homogeneous within the occupations and heterogeneous between
the professions.
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Segment 1: Business and Financial Operations

The largest segment that has been identified is Business and Financial Operations,
and the majority is students between the age of 18 and 24. It is necessary to focus
on students within this segment because they can be more innovative, modern and
can contribute to changing the attitudes towards digital devices. This segment
acknowledges features such as a keyboard, data security and a long-lasting device
as the most important when using their digital devices at work. Quality hardware
is also highly valued, and they are willing to pay extra for quality (Appendix 11).
The segment can be perceived as less price sensitive, and follow trends rather than
sales offers (Appendix 10). The 2:1 Notebook market is still in the early stages,
but trends indicate that the detachable devices have an immense potential for
growth. 10 out of the total of 27 respondents (37.03%) in this segment perceived
the 2:1 Notebook as beneficial. In addition to this, 11 out of the total of 27
(40.74%) are neutral (Appendix 8). Seeing that the product and the market are still
in the early stages gives Dell considerable potential. If Dell target this market,
they can emphasize the need and the benefits, and make customers understand the
usefulness of a 2:1 Notebook.
Segment 2: Management
The Management segment is second largest, with the majority being between the
age of 45 and 54. The management occupation is growing correspondingly with
the growth of new businesses and is, therefore, an important occupation for Dell
to target with their 2:1 Latitude series. One key characteristic of this segment is
that consumers travel more between locations such as meetings, business travels,
etc. (Appendix 12). They also value good quality, data security, long lasting
products, keyboard and touch screen, in which the Latitude series possess. 9 out of
23 respondents (39.13%) would prefer a detachable screen, while 8 (34.78%)
remains neutral (Appendix 11). Therefore, the segment has potential if Dell can
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convince neutral respondents of the benefits of using a 2:1 Notebook. 13 out of 23

respondents (56.52%) find it beneficial to use a 2:1 Notebook in their work
situation (Appendix 8) and the survey shows that the majority of this segment
would consider buying one (Appendix 9). Respondents in this segment value
quality over price, and does not usually buy devices on sale. In addition, the
respondents do not necessarily follow trends (Appendix 10). This segment can
benefit from portability, flexibility, and high quality because of the majority travel
on a daily or weekly basis.
Segment 3: Architecture and Engineering

This segment was identified due to a positive result from the survey, in addition to
affirmative information from the interviews. Most respondents in the survey
values features like the keyboard, high quality, long-lasting products, design,
security, and software (Appendix 11). Similarly, to the other segments, these
respondents would pay more for quality and tends to ignore sales offers
(Appendix 10). Out of 13 respondents, 8 (61.53%) acknowledge the 2:1 device as
beneficial in their work situation (Appendix 8). Even though the numbers of
respondents in this segment are low, the majority would consider buying a 2:1
Notebook and some already own a device. Several resellers identified
Architecture and Engineering as an important segment, and one can, therefore,
assume that a larger number of respondents in the survey would result in a similar
outcome. This segment requires a device that can provide exceptional
performance, such as the ability to perform heavy graphical tasks with optimal
resolution.
Segment 4: Education, Training and Library

Based on the information gathered from resellers there is a high demand for 2:1
Notebooks in the Education, Training and Library segment (appendix 2). Our
survey indicates a considerable variation in age among the respondents. The
software is one of the most important features these respondents look for in a
computer. In addition to this, data security, detachable screen, and high quality are
essential features. This segment prefers the “best of both” worlds; they value both
touchscreen and keyboard, and this would make a 2:1 Notebook the optimal
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device for them (Appendix 11). However, this is an interesting segment, because
the majority of the respondents think the 2:1 Notebook is beneficial (Appendix 8),
but there is an equal number of people who would not buy it (7 out of 14
respondents) and those who does consider buying (Appendix 9). Some of them
already own a 2:1 device and it is believed that this segment has potential.
Because the survey has a low number of respondents in this segment and with
supporting information from resellers, it can be assumed that with a larger number
of respondents, the results would have matched the current outcome. This segment
can benefit from a flexible 2:1 Notebook and a good selection of ports and slots.
2.4 PEST Analysis

Several wider uncontrollable forces in the external environment could affect Dell.
In order to scan and analyze the external macro environment, we have utilized a
PEST analysis. This way Dell can recognize where there are potential
opportunities and threats in the environment that Dell should be considering.
2.4.1 Political Forces

There are many political forces can impact Dell’s operations in Australia. There
are several tax policies, trade restrictions and tariffs on import and export which
the Australian government has set to protect the national economy (Australian
Trade and Investment Commission 2017). The Australian Government is,
however, stable and is regarded as a liberal capitalist democracy. There is a low
threat of terror (Trading Economies, 2017). One can, therefore, conclude that the
political factor strongly impacts how Dell operates in Australia, but due to the
stability, this can be categorized as a minor threat.
2.4.2 Economic Forces

Australia is one of the largest capitalist economies in the world. It is also as
mentioned protected to a high degree. The economy has a stable inflation rate of
2-4%, a stable and increasing GDP and a low unemployment rate of 5.7%. The
interest rate is held steady at a record low of 1.5% which impacts Dell positively
because it encourages people to spend more money on purchases usually viewed
as non-essential. This creates a major opportunity for Dell. People are generally
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prepared and willing to buy devices like 2:1 Notebooks (Trading Economies,
2017).
2.4.3 Socio-cultural Forces

The socio-cultural factors are highly relevant forces for Dell to consider regarding
the 2:1 Notebooks. Australia has a current population of 24,588,774 people
according to the estimates done by United Nations (Worldometers RTS algorithm
2017). Whereas 89,3% is considered as urban, and this high ratio of urbanization
affects the socio-cultural factors and trends (Worldometers RTS algorithm 2017).
People tend to move toward the big cities to work, and the increased social
mobility and centralization creates opportunities for utilization. These factors are
relevant because it affects the lifestyle of people, and demands a more flexible and
on-the-go working situation. Australians tend to be well educated and up to date
on trends. There is an increased focus on corporate social responsibility (CSR),
and Dell should respond to this force by emphasizing their devotion to CSR. The
cultural, vibrant lifestyle and high standards of living increase the emphasis on
design, brand and how the attributes of technological devices can improve the
work routine. The trends of urbanization and the changes in work lifestyle is an
opportunity Dell has taken advantage of when introducing the Latitude 2:1
Notebook. Seeing that branding is becoming increasingly important, this trend can
be a threat for those not being the preferred brand in the market or are not
responding well to people’s buying patterns.
2.4.4 Technological Forces

Dell is operating in the IT industry, and hence the technological forces are highly
important to acknowledge. The emerging technologies is an ongoing dynamic
process of a digital revolution, a complex mechanism and uncertain in a long-term
perspective. This continuous movement has a high innovation potential, where
competing technology development accelerates. This tendency has led to a
decrease in the product lifecycle for many products in the IT industry. This drift
puts a lot of pressure regarding R&D activity, and the need of having patents that
keep up with the maturity of the technology is highly significant for companies
like Dell. These major technological trends intensify the emphasis on security and
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protecting sensitive data of intellectual property for businesses. Another trend is

the importance of up-to-date devices in the workplace, especially among
millennials. A ratio of 42% of millennials is likely to quit their job if their
expectations are not met (Dell, 2017). Keeping up with the technological trends in
the environment is important for Dell to take into consideration, and the
technological forces can, therefore, be seen as a major threat for Dell.
2.5 SWOT Analysis

Consumers are becoming less concerned with customization and standardized
models sell cheaper and quicker. The hybrid business model combining direct and
retail sales that has been developed, considers these emerging customer needs
(Insight 2007).
Strengths
Dell has over the years developed a strong brand in the commercial market. In this
market, they have a loyal customer and partner base. This tendency might be
leveraged to reach potential customers for the 2:1 Latitude Notebook. The
offering of exceptionally secure devices is what distinguishes Dell's 2:1
Notebooks from their competitors. The secure access and data security make the
Latitude 2:1 Notebook especially attractive for B2B consumers. All potential
segments identified in the primary research perceived security as one of the most
important attributes of a computer device used in a work situation. Dell offers
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their customers excellent support and after-sales service for commercial clients.
This reflects their overall corporate value in creating and preserving customer
relationships.
Weaknesses
Dell has a market leading direct sales force. However, the indirect sales model is
weak and only accounts for 14% of Dell product sales. This could be due to the
lack of control over the product sold through resellers, for example, the reseller's
sales technique and promotion activities. Despite a high revenue, Dell has more
debt regarding the industry standard. Compared to their competitors with high
revenue and low debt, they spend less capital and attention to R&D. The Latitude
2:1 Notebook’s value proposition is not well communicated to the market. The
Latitude is a long lasting premium device with corresponding price points, but the
end users do not understand the benefits of investing in this device.
Opportunities
The 2:1 Notebook market is a new and rapidly growing market full of potential.
Dell’s strong brand within the B2B segment creates an opportunity for further
expansion within this segment for 2:1 Notebooks, along with a low-interest rate in
Australia of 1.5% that encourages consumption. When introducing the Latitude to
the market, Dell has an opportunity to consider a new marketing strategy to better
communicate the value proposition of the Latitude 2:1 Notebook. They can for
example tailor a marketing communication approach and dig deeper into their
reseller's sales techniques to monitor how the devices are being sold through the
indirect channel. An opportunity for Dell is that most businesses need to have an
up-to-date technology and keep track of the market trends and innovations to
maintain efficiency within the firms. This tendency creates a demand for
technology that can cover this need of well operating, practical and secure
devices.
Threats
The line between the private and the enterprise market have become more blurred,
and Microsoft and their Surface Pro have started targeting small businesses. Since
16
Dell is aiming to become the market leader in the commercial 2:1 Notebook
market, this is a major threat. Over the last few years, the computer market has
experienced a decline. However, an evolving trend has recently emerged because
of users wanting to update to the latest technological advances. This threatens Dell
regarding their limited investments in R&D, and their ability to deliver innovative
products to an evolving market. The accelerated changes in customer demands
lead to a shorter product life cycles. This can be a threat for Dell because they
constantly have to develop new innovative products and invest heavily in R&D.
Even though Dell produces long lasting products with high quality, customers
might experience different needs more often, because of the rapid technological
change.
3.0 Marketing Objectives
In order for Dell to address the identified key issues, one sales objective and three
marketing objectives have been made. These objectives set the course for what
Dell needs to achieve, is a target to aim for and provide the measure to determine
if they have been achieved (Waller 2012).
3.1 Sales Objective

Sales Objective: Aim to increase Notebook units sold to approximately 250,000
in 2018.
“Convertible “2-in-1” tablet-notebook devices are taking the personal computing

market by storm with sales poised to triple from more than 500,000 in 2016 to
nearly 1.5 million in 2017” (Telsyte 2017). Dell is operating with less than 10%
market share in the Australian 2:1 Notebook market. With this market share, it is
possible to estimate a sale of approximately 150,000 units in 2017. Estimating
another million increase in units sold by 2018, Dell can aim to increase its units
sold by 250,000 by 2018.
17
3.2 Marketing Objectives

Marketing Objective 1: Establish and increase product awareness of the 2:1
Latitude Notebook range as a high-end product solution for businesses and
institutions by the end of 2017.
This is important because the value proposition communicated is not sufficient

regarding the characteristics of Dell’s 2:1 Latitude range. Customers need to be
able to understand the characteristics and reliability such as physical quality,
flexibility, software, after-sales service. Organisations account for 58.5% of the
revenue in the industry, and buy in bulk (IBIS 2016) This emphasises the need for
after-sales service, and should be promoted accordingly.
Marketing Objective 2: Increase dealers’ quality, and sales by 6% through their

indirect sales model.
Dell’s indirect sales model is weak and only counts for 14% of Dell’s product
sales. This could be due to the lack of control over the products sold through
wholesalers and resellers, or the reseller’s sales- and promotion techniques.
Therefore, Dell should aim to increase the quality and effectiveness of their
indirect sales model. The focus should be on communicating the value proposition
of the 2:1 Latitude range, in addition to enhancing the sales- and promotional
techniques used by wholesalers and resellers.
Marketing Objective 3: Maintain position in the commercial 2:1 Notebook

market in Australia, and emphasise presence in the high-end business range.
It is appearing that there are blurred lines between the private and enterprise
market. Dell needs to emphasise their presence in the high-end range of the
commercial market. Microsoft is entering the commercial market. However, they
do not have the necessary characteristics, nor reliability in their Microsoft Surface
to cope with the needs of different businesses in Dells’ target market. This is why
Dell should maintain its position in the commercial 2:1 Notebook market in
Australia, and aim to emphasise presence in the high-end business range
18
4.0 Target Markets and Positioning
4.1 Segmentation
The research conducted identified four potential segments for the 2:1 Latitude
Notebook range, namely, Business and Financial Operations; Management;
Architecture and Engineering; and Education, Training and Library. All of these
segments show that the majority of respondents value the characteristics of the 2:1
Notebook device in their work situation, and that a great amount of the
respondents considers buying a 2:1 Notebook. There is a significant number of
respondents that are neutral to the characteristics and value of the 2:1 Notebook,
and it can be important to perceive this as being a lack of awareness about the
Latitude product range.
4.2 Target market

As a result of the customer analysis and the development of the customer
segments, three target markets will be of interest. Considering the identified key
issues and the conducted research, these target markets will serve as the most
attractive and profitable Australian markets for Dell’s 2:1 Latitude Notebook
range:
- Managerial positions operating with a management that spend a significant
amount of time traveling between locations e.g. business travels and
meetings.
- Government, organisations and companies operating within business &
financial operations, architecture and engineering.
- Educational institutions.
4.3 Positioning
Dell’s positioning of their 2:1 Latitude Notebook needs to emphasise the different
characteristics that enable the customer to achieve a higher scale of satisfaction
19
when using the product relative to competitor’s products. Dell needs to clearly
emphasise the unique and advantageous benefits of using the Latitude over a
broad range of business situations. Dell is outperforming its competitors on
several attributes such as hardware reliability, consistency in performance, total
cost of ownership (TCO) and replacement parts availability (TBR 2016). These
attributes are the basic characteristics of which Dell needs to concentrate their
positioning because they cover the core areas of the industry – namely, sales and
setup attributes; notebook hardware attributes; and service and support. To
demonstrate Dell’s positioning strategy, a perceptual map has been used. The
brands derived from the primary research as Dell’s main competitors in the 2:1
Notebook market, namely HP, Lenovo, and Microsoft.
*Picture 1: This graph is a perceptual map of Dell and its biggest competitors’ positioning strategy in the 2:1 Notebook
market. The brands are positioned based on their perceived quality and price.
Positioning for target market 1: Managerial positions operating with a

management that spends a significant amount of time traveling between locations
e.g. business travels and meetings.
20
The management occupation is growing correspondingly with the growth of new

businesses and is, therefore, an important occupation for Dell to position their 2:1
Latitude range towards. With this segment having the need to move between
locations regularly, Dell needs to position their Latitude towards this. In
comparison to its competitors, Dell delivers a product of superior physical quality,
reliability and flexibility, and one that is suitable for any manager that is “on the
go.” Considering products may be affected by the amount of traveling, Dell’s
market leadership in after-sales service is an added value that gives them
competitive advantage, and should be communicated to its customers. Dell’s
current positioning attempts to demonstrate enterprise competence – any device,
anywhere, any use, any case. Changing this, to communicate the particular device,
needs to be considered to raise customer awareness.
Positioning for target market 2: Government, organisations, and companies

operating within business & financial operations, architecture and engineering.
In order for Dell to position their 2:1 Latitude range to this target market it is
important that the characteristics of the product, reliability and after-sales service
are communicated as they acknowledge these as beneficial in their businesses.
This target market also tends to be less price sensitive as they rely on high product
performance, and are, therefore, willing to pay a higher price. Microsoft’s
positioning of their Surface device tends to be oriented to the cost-competitive,
consumer, and small business markets. This gives Dell the opportunity to target a
market in the other end of the scale. The high-end range, with consumers valuing
a highly capable physical device, with exceptional performance should be
targeted. This can be communicated through Dell’s reliability and consistency in
performance. Rather than only demonstrating enterprise competence, the product
itself needs to be highlighted and supported with Dell’s market leadership in
support and after-sales service options for different customers.
Positioning for target market 3: Educational institutions.
21
Based on the information gathered from resellers there is a high demand for 2:1
Notebooks in educational institutions. People in this target market tends to prefer
the “best of both worlds,” valuing a detachable touchscreen and keyboard. This
would make a 2:1 Latitude the optimal device for them. In addition, this target
market relies particularly on the physical quality, reliability, and could benefit
from a good selection of ports and slots. Ports and slots is a characteristic that the
Microsoft Surface does not have in the same scale. In addition, replacement parts
availability is an important factor that needs to be communicated. This is because
large organisations have been reporting great satisfaction with Dell’s replacement
parts availability. This can be used to target both large and midsize enterprises, as
many of these firms report that having access to these critical replacement parts is
key to keeping their notebook users on track and uninterrupted (TBR 2015).
Institutions are relying on superior after-sales service and 24 x 7 support which
Dell can offer.
5.0 Key Strategies
Strategy Option 1
Issue: The value proposition of the Latitude 2:1 Notebooks is not well
communicated to the market.
Objective: Establish and increase product awareness of the 2:1 Latitude
Notebook range as a high-end product solution for businesses and institutions.
Strategy:
Strategy Option 2
Issue: Indirect sales model is weak and only accounts for 14% of Dell product
sales.
Objective: Increase dealers’ quality, and sales by 6% through their indirect sales
model.
22
Strategy:
Strategy Option 3
Issue: The line between the private and the enterprise market have become more
blurred, and Microsoft and their Surface Pro have started targeting small
businesses.
Objective: Maintain position in the commercial 2:1 Notebook market in
Australia, and emphasise presence in the high-end business range.
Strategy:
1. Focus on the high-end premium business segment with the Latitude
range.
2. Emphasise and leverage the competitive advantage derived from
product performance, reliability, total cost of ownership (TCO) and
after-sales service.
6.0 Key Recommendations
The recommendation and implementation suggested are derived from the key
strategies. The strategies should be implemented in the same logic order as above,
in order for Dell to achieve the most beneficial outcome. The main focus is to
recommend useful, relevant and actionable suggestions for implementation.
Factors to monitor and control after the implementation together with, an
assessment of successful implementation is important, and will, therefore, be
discussed in the end.
23
6.1 Recommendation – Strategy option 1

In order to cope with the issue and objective stated, three strategies have been
suggested for the first strategy option. These strategies should be prioritized in the
numbered order, as they are the most critical to implement:
In regards to these first three strategies, mainly two parties are particularly
responsible for the implementation phase. First of all, the upper management has
to agree to change the promotional focus from the enterprise itself to the Latitude
products instead. When this has been agreed upon, the marketing team can start
implementing a new IMC plan. The reason for why strategy option 1, and the
following three strategies should be prioritized for implementation has several
reasons. The strategy option itself is to be prioritized because it is highly
necessary to increase product awareness of the new 2:1 Latitude Notebook range,
both towards private customers, resellers and companies. If there is a lack of
awareness around the product it will fail to generate enough interest from, for
example, wholesalers and resellers to sell. Regarding the suggested strategies
under option 1, the first strategy that has to be focused is the promotional focus
change. Based on the research conducted, it was discovered that the majority of
respondents had knowledge about Dell as a brand, but had not heard about the
Latitude product range before. In a highly competitive market, it is vital to
effectively communicate the message of your product, service and/or idea.
Promotion is extremely important part of the marketing mix; no one will rush to
buy your product if they don’t know that it exists or if they don’t know how it is
different from the competitors’ products (Waller 2012). When this has been done,
the implementation of a new IMC plan should take place. An IMC Plan provides
the framework for developing, implementing and controlling Dell’s IMC
program. Finally, letting customers take Latitude product for a trial period will
most likely lead to increased sales, and product awareness through ‘word of
mouth,’ By implementing the strategies recommended, it will cope well with the
24
identified issue regarding the communication of the value proposition, and meet
the objective set regarding establishing and increasing product awareness of the
2:1 Latitude Notebook range.

In order to cope with the issue and objective stated, three strategies have been
suggested for the second strategy option. These strategies should be prioritized in
the following numbered order:
In regards to the three strategies recommended for option 2, there are several
parties playing a role. Dell’s management has to identify the areas of which the
communication links between them, their wholesalers and resellers can be
improved. Wholesalers and resellers should not have a problem with this, as it
will help them increase sales by enhancing knowledge about Dell’s products,
which again will help them communicate it better to customers. The reason for
why strategy option 2 is recommended to be implemented second, is that there is
no immediate threat for Dell. Dell’s direct sales model accounts for the majority
of sales, while the indirect model through wholesalers and resellers only account
for 14% of the sales. The strategies, however, should be implemented on a short-
term basis, because of the high competition in the industry. The faster Dell can
improve product awareness and the indirect sales model, the more sales they can
achieve. The first strategy focuses on the importance of aligning business goals
with participants in their indirect sales model. This will give a common sense of
what both parties want to achieve regarding sales and recognition. It is important
for Dell to ensure that their partners are promoting their products as good as they
possible can. On a long-term basis, it is possible for Dell to appoint a marketing
25
manager that can work more closely with resellers and make sure that the
promotion of their products is good. The last strategy recommends Dell to give
different incentives to wholesalers and resellers, such as discounts. This may
increase their willingness to improve promotional activities of Dell’s products. By
implementing the strategies recommended, it will cope with the identified issue
regarding the weak indirect sales model. Also, it will be more likely to meet the
objective set regarding an increase of distributor quality and an increase in sales
by 6%.

To cope with the issue and objective stated, two strategies have been suggested
for the third strategy option. These strategies should be prioritized in the
following numbered order:
1. Focus on the high-end premium business segment with the Latitude range.
2. Emphasise and leverage the competitive advantage derived from product
performance, reliability, total cost of ownership (TCO) and after-sales
service.
There are several parties that play a role regarding the implementation of strategy
option 3. Dell, wholesalers, and resellers all need to cooperate in order to
communicate the particular characteristics of the 2:1 Latitude range. Strategy
option 3 is evolving from strategy option 2, by emphasising the communication
links between all parties it will become more clear where Dell’s Latitude range is
positioned. The reason for why this strategy should be implemented last is
because Dell is already established in the high-end business segment. Microsoft
on the other hand with its Surface Pro is targeting the opposite end of the scale,
namely small businesses. Dell has its products competing in this low-end
segment, that takes up direct competition with Microsoft. This is why Dell should
emphasise their position in the high-end premium business segment with their
Latitude range. By targeting this end of the scale, Dell’s competitive advantage is
particularly important to communicate. This goes back to strategy option 1 and is
directly linked. With Dell communicating the Latitude ranges’ product
26
performance, reliability, total cost of ownership (TCO), and after sales service
they are establishing themselves in a segment that is characterized by lower
competition. By implementing the strategies recommended, it will solve the issue
identified regarding the blurred lines between the private and enterprise market.
Also, it will meet the objective stated regarding positioning in the 2:1 Notebook
market in Australia and emphasising presence in the high-end business range.
Monitoring and control

After implementing the suggested strategic recommendations, it is significantly
important to have a comprehensive but clear plan of how to monitor and control
the outcome. As marketing is a big part of the strategic recommendations, it is
extremely important to measure the results derived from the marketing activities.
This will ensure Dell that they continue to get value from their investments in
marketing. Also, an assessment of an increase in revenue or customer numbers as
a result of promotional activities allows Dell to understand which activities give
them the best return.
27
7.0 References
ARN 2017, ICT Distributor Guide Australia, viewed 1 April 2017,

<https://www.arnnet.com.au/distributor_directory/>.
Australian Association for Research in Education 2013, Technology and

education: A Broad Perspective, viewed 6 May 2017,
<http://www.aare.edu.au/publications-database.php/8496/technology-and-
education-a-broad-perspective>.
Australian Bureau of Statistics 2016, 3101.0 – Australian Demographic Statistics,

viewed 6 May 2017,
<http://www.abs.gov.au/AUSSTATS/abs@.nsf/mf/3101.0>.
Australian Council of Learned Academies 2015, Technology and Australia’s

Future, Report, viewed 1 May 2017,
<http://users.cecs.anu.edu.au/~williams/TAAF.pdf>.
Australian Trade and Investment Commission 2017, Australian export and import
laws, viewed 8 May 2017,
<https://www.austrade.gov.au/International/Invest/Guide-to-
investing/Running-a-business/Understanding-Australian-business-
regulation/Australian-export-and-import-laws>.
Business Insider 2015, Dell’s filings shows why it really needs the EMC merger,
it lost money last year and revenue is shrinking, viewed 8 May 2017,
<https://www.businessinsider.com.au/dell-reveals-losses-revenue-
shrinking-2015-12?r=US&IR=T>.
Cnet n.a, Dell’s long, slow climb on R&D spending, viewed 8 May 2017,
<https://www.cnet.com/news/dells-long-slow-climb-on-r-d-spending/>.
28
CompTIA 2016, IT Industry Outlook 2016, Research Report, viewed 26 April

2017, <https://online.uts.edu.au/bbcswebdav/pid-2119271-dt-content-rid-
9099328_1/courses/24100-24101-2017-AUTUMN-
CITY/IT%20Industry%20Outlook%202016%281%29.pdf>
CNN 2003, The Dell Way Michael Dell's famous business model made his
company the world's premier computer maker. Now he's branching into
new fields and taking on virtually every other hardware manufacturer.
Can "The Model" stand the strain? viewed 7 May 2017
<http://money.cnn.com/magazines/business2/business2_archive/2003/02/0
1/335960/>.
CRN 2016, Michael Dell; Our R&D spending will be nearly twice that of HPE,
viewed 19 April 2017, <http://www.crn.com/news/data-
center/300081320/michael-dell-our-rd-spending-will-be-nearly-twice-that-
of-hpe.htm>.
David Waller, Developing your Integrated Marketing Communication Plan,

McGraw-Hill Australia Pty Ltd, Australia.
‘Dell notebooks are the most reliable according to Customer Satisfaction

Research’ 2015, Technology Business Research Inc., pp. 1-7, viewed 19
April 2017, <https://online.uts.edu.au/bbcswebdav/pid-2127443-dt-
content-rid-9152527_1/courses/24100-24101-2017-AUTUMN-
CITY/Notebook%20Reliability%20TBR%20Whitepaper.pdf>.
Dell n.a, Our people: The Dell team, viewed 19 April 2017,
<http://www.dell.com/learn/au/en/aucorp1/ourpeople?c=au&l=en&s=corp
&cs=aucorp1>.
Dell Technology 2017, Unleash the Creative Force of Today’s workers, viewed
31 April 2017,
29
<http://futurereadyworkforce.dell.com/wpcontent/uploads/2017/03/DELL
_unleash_creative_workforce_whitepaper_US.pdf>.
Dell, 2016, A message from Michael & Leadership, Annual Report to Customers,
viewed 26 April 2017, <http://annualreport.dell.com>.
Dell 2017, Dell Technologies University of Technology – Capstone Project,

PowerPoint Presentation, 23 April 2017,
<https://online.uts.edu.au/webapps/blackboard/content/listContent.jsp?cou
rse_id=_31364_1&content_id=_2118028_1>.
Forbes 2017, The 20 largest private companies, viewed 19 April 2017,

<https://www.forbes.com/pictures/eggh45ejff/3-dell/#c6e4a356c916>.
IDC 2016, PC Competitors Position For Share And Growth, Despite Challenges,
According To IDC, IDC Research, Framingham, MA, viewed 3 May
2017, <https://www.idc.com/getdoc.jsp?containerId=prUS41846116>.
IDC 2017, Traditional PC Market Was Up Slightly, Recording Its First Growth In
Five Years as HP Recovered the Top Position, According to IDC, viewed
7 May 2017,
<http://www.idc.com/getdoc.jsp?containerId=prUS42464617>.
Insight 2007, New strategy for DELL, viewed 19 April 2017,

<https://insight.kellogg.northwestern.edu/article/a_new_channel_strategy_
for_dell>.
Joe Hunt 2016, Hunt Executive Search, The Hunt Group, viewed 20 May 2017,
<http://www.houseofhunt.com/executive-edge/executive-edge-june-2016-
smart-goals/>.
30
John Dudovskiy 2015, Dell Value Chain Analysis, viewed 26 April 2017,
<http://research-methodology.net/dell-value-chain-analysis/>.
Kerr, M 2017, How to Write a Market Analysis – Bplans, Blog, Palo Alto
Software, viewed 3 May 2017, <http://articles.bplans.com/how-to-write-a-
market-analysis/>.
Laptopmag 2017, Which Dell is right for you?, viewed 7 May 2017,
<http://www.laptopmag.com/articles/which-dell-for-you>.
Lenovo 2017, 2-IN-1 Business Ultrabooks, viewed 7 May 2017,

<http://www3.lenovo.com/us/en/laptops/thinkpad/thinkpad-
yoga/c/thinkpadyoga>.
Nathan Cloutman 2016, IBIS World Australia, IBIS World, viewed 24 May 2017,
<http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/industr
y/competitivelandscape.aspx?entid=4170>.
Nytimes 2016, How Dell raised $67 billion for the biggest tech deal ever, viewed
8 May 2017,
<https://www.nytimes.com/2016/08/06/business/dealbook/how-dell-
pieced-together-67-billion-to-buy-emc.html?_r=0>.
Porter, M. and Millar, V. 1985, How information gives you competitive

advantage, Harvard Business Review.
Porter, M. 2008, The Five Competitive Forces That Shape Strategy, Harvard
Business Review, issue 1, vol. 86, pg. 78-93.
Rogers, E. M. 2003, Diffusion of Innovations, Free Press, New York.
Smallbusiness 2017, Difference between value chain analysis and resource based
analysis, viewed 19. April 2017,
31
<http://smallbusiness.chron.com/difference-between-value-chain-analysis-
resourcebased-analysis-50113.html>.
TBR 2015, Technology Business Research, Technology Business Research Inc.,

viewed 20 May 2017, <https://online.uts.edu.au/bbcswebdav/pid-2127443-
dt-content-rid-9152527_1/courses/24100-24101-2017-AUTUMN-
CITY/Notebook%20Reliability%20TBR%20Whitepaper.pdf>.
Telsyte 2016, Telsyte Emerging Technology Insights, Telsyte, viewed 20 May

2017,
<https://www.telsyte.com.au/announcements/2015/11/10/australians-take-
to-convertible-2-in-1-tablet-computers-as-overall-tablet-sales-continue-to-
decline>.
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Tradingeconomics.com, viewed 12 April 2017,
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32
8.0 Appendix
Appendix 1: Questions to Wholesalers

• Are you a Dell distributor? Why/why not?
• What products do you stock?
• Will you stock the 2:1 Latitude Notebook?
• Which 2:1 Notebooks are the best sellers?
• Do you stock any other notebooks? Which brands?
• Can you give us some price points? What is the recommended retail price?
• Do you think the 2:1 notebook market has potential? (Do you see any
potential for Dell’s 2:1 Latitude series?)
• What customers are buying 2:1 Notebooks?
• Who is the market leader for 2:1 Notebooks?
• Which resellers do you sell 2:1 Notebooks to?
Appendix 2; Questions to Resellers

• What brands do you stock in the 2:1 product range?
• Which brand is the most popular?
• Which 2:1 notebook is the best-seller?
• Do you sell your notebooks to specific businesses? If so, which ones?
• What are the primary target markets for 2:1 Notebooks? (What kind of
customer segments (vertical markets)?)
• What is the general consumer feedback for the 2:1´s?
• Why do current consumers choose 2:1 Notebooks?
• Would you say that there is an increase in demand for 2:1 notebooks
directed towards businesses?
• Are there any specific attributes/features that are perceived as important?
Appendix 3: Questions to Microsoft
33
We are doing some market research for the 2:1 Notebook market here in
Australia, and we were wondering if we could talk to someone about the market?
• Why do consumers choose 2:1 Notebook? What attributes and features are
important?
• Do you sell 2:1 notebook mostly to individuals for private use or
businesses for business services? Why do you think businesses are / are
not interested in a 2:1?
• Is there any particular occupations that want/needs 2:1 notebooks/or that
you recommend a Surface Pro to?
• Will you say that it is an increasing demand for 2:1 notebooks, directed
towards business?
• How do you think 2:1 Notebooks can compete with tablets?
• Do you have any numbers on the size of the 2:1 market? How many % of
that market is Surface Pro’s market share?
Appendix 4: Questionnaire
34
35
36
37
If a person answered yes on the previous question:
If a person answered no on the previous question:
38
Appendix 5: The Global Information Technology Industry
Appendix 6: Product Performance
39
Appendix 7: “Top of Mind” Brand recognition
Appendix 8: Occupation and Beneficial
40
41
Appendix 9: Occupation and Buying 2:1 Notebook
42
Appendix 10: Occupation and Statements
43
44
45
Appendix 11: Occupation and Features
46
47
48
49
Appendix 12: Occupation and travel between locations
50
Appendix 13: Each strategy option aims to cope with the related key issue
identified.
51

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Applied Marketing Project (Capstone) – 24100

Bachelor of International Marketing

Student Name: Christian Eide

Executive Summary ......................................................................................... iii

1.0 Internal Analysis ......................................................................................... 1

2.0 External Analysis ........................................................................................ 6

3.0 Marketing Objectives ................................................................................ 17

3.2 Marketing Objectives ........................................................................................ 18

4.0 Target Markets and Positioning ................................................................ 19

5.0 Key Strategies ........................................................................................... 22

6.0 Key Recommendations ............................................................................. 23

7.0 References ................................................................................................ 28

8.0 Appendix .................................................................................................. 33

1.0 Internal Analysis

1.1 Description of company and product line

1.2 Business Model Canvas

1.3 Resource Audit

1.3.1 Human Resources

1.3.2 Physical Resources

1.3.3 Financial Resources

1.3.4 Intangible Resources

1.4 Value Chain Analysis

1.4.1 Inbound Logistics

1.4.3 Outbound Logistics

1.4.4 Marketing & Sales

2.0 External Analysis

2.1 Market Analysis

2.2 Competitor Analysis

The IT industry is highly competitive, because of constant change and

Competitive information from the primary research:

2.3 Customer Analysis

Segment 1: Business and Financial Operations

convince neutral respondents of the benefits of using a 2:1 Notebook. 13 out of 23

Segment 3: Architecture and Engineering

Segment 4: Education, Training and Library

2.4 PEST Analysis

2.4.1 Political Forces

2.4.2 Economic Forces

2.4.3 Socio-cultural Forces

2.4.4 Technological Forces

protecting sensitive data of intellectual property for businesses. Another trend is

2.5 SWOT Analysis

3.0 Marketing Objectives

3.1 Sales Objective

“Convertible “2-in-1” tablet-notebook devices are taking the personal computing

3.2 Marketing Objectives

This is important because the value proposition communicated is not sufficient

Marketing Objective 2: Increase dealers’ quality, and sales by 6% through their

Marketing Objective 3: Maintain position in the commercial 2:1 Notebook

4.0 Target Markets and Positioning

4.2 Target market

Positioning for target market 1: Managerial positions operating with a

The management occupation is growing correspondingly with the growth of new

Positioning for target market 2: Government, organisations, and companies

Positioning for target market 3: Educational institutions.

5.0 Key Strategies

6.0 Key Recommendations

6.1 Recommendation – Strategy option 1

6.2 Recommendation – Strategy option 2