Introduction – the History When Michael Dell Was a Freshman

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Introduction – The History When Michael Dell was a freshman at the University of Texas in 1983, he sold disk drive kits and random access memory chips in Austin, Texas for earning additional money. In April 1984, he decided to establish a corporation named Dell Computers Corporation to sell “PC’s Limited” brand computers. His business model based upon the idea that intermediaries can be surpassed in the business to the mutual benefit of both, his company and the customer. The “Direct Model” was created. Success confirmed his business model so in 1987 he could start the first international subsidiary in England followed soon by Canada, France and Germany. In 2003 the company is represented in almost every country in the world and is even manufacturing in four continents. Today Dell is the world’s leading computer company with a market share of almost 19%. In 2002 Dell employed 34,600 people worldwide and generated a net revenue of more than 31bn USD. Dell’s top competitors are Hewlett-Packard, IBM, Fujitsu and NEC in the personal computer market, which constitutes Dell’s main market.

Transcript of Introduction – the History When Michael Dell Was a Freshman

Page 1: Introduction – the History When Michael Dell Was a Freshman

Introduction – The History

When Michael Dell was a freshman at the University of Texas in 1983, he sold disk drive kits and random access memory chips in Austin, Texas for earning additional money. In April 1984, he decided to establish a corporation named Dell Computers Corporation to sell “PC’s Limited” brand computers. His business model based upon the idea that intermediaries can be surpassed in the business to the mutual benefit of both, his company and the customer. The “Direct Model” was created. Success confirmed his business model so in 1987 he could start the first international subsidiary in England followed soon by Canada, France and Germany. In 2003 the company is represented in almost every country in the world and is even manufacturing in four continents.

Today Dell is the world’s leading computer company with a market share of almost 19%. In 2002 Dell employed 34,600 people worldwide and generated a net revenue of more than 31bn USD. Dell’s top competitors are Hewlett-Packard, IBM, Fujitsu and NEC in the personal computer market, which constitutes Dell’s main market.

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“Hope through Entrepreneurship” tells not just the story of Lenovo’s corporate social investments, but the company’s own history. In 1984, 11 computer scientists in Beijing, China had a vision to create a company that would bring the advantages of information technology to the Chinese people. With approximately $25,000 USD in seed money and the determination to turn their research into successful products, this team opened their business in a loaned space – a small, one-story bungalow in Beijing.

Today, Lenovo is encouraging people around the world to make an impact. As Lenovo’s technology helps bridge the physical gap among different parts of the world, the company’s goal is to do the same through its social investments.

Given Lenovo’s history and the nature of its business, the company focuses on helping people around the world transform their lives and their communities. To do this, Lenovo supports organizations that encourage business development and social entrepreneurship. Through microfinance institutions such as Opportunity International, Lenovo is helping provide crucial loans to help disadvantaged people in countries such as Africa, Asia, Latin America and Eastern Europe.

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IntroductionSony is one of the global electronics company with its headquarters in Tokyo, Japan with an estimate of 163,000 employees (Sony Corporation, 2008). The sub brand of Sony, Sony VAIO stands for “Visual Audio Intelligence Organizer”. Sony Vaio was first introduced by Timothy Hanley in US in early 1996 as a major player in the laptop market across the world. Today, Sony is positioned among the top five global brands worldwide with $8.87 trillion a year. “Sony’s sales performance for the next year is expected to see revenues rise by 1 percent to $9 trillion” (Sony Revenue and Profits Rise as Europe Becomes Biggest Games Market, 2008).

Sony started Vaio business in Asia in 2000 with a customer oriented business platform. It uses the marketing concept as its marketing management philosophy which identifies, anticipates and satisfies customer requirements profitably. Vaio’s target market is the youth market that looks ahead of the speed and memory into design. Consequently it comes in variety of colours like Blazing Red, Indigo Blue, Pure White, Beauty Pink and Aroma Black.

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Introduction

HP Enterprise Business is one of three business segments of Palo Alto based Hewlett-Packard Company Hewlett-Packard. It is based in Palo Alto, and has over 100,000 employees with a turnover of $37.7 billion USD in 2007. On September 23, 2009 HP renamed TSG to HP Enterprise Business.

HP Enterprise Business (formerly called TSG) is the largest business segment of HP, accounting for 36% of HP's 2007 revenue, providing servers, storage, software and information technology services that enable enterprise and midmarket business customers to manage their current IT environments and transform them into a business enabler. HP Enterprise Business includes Enterprise Storage and Servers (ESS), HP Services (HPS) and HP Software & Solutions. The products and services from this organization serve HP's business customers of all sizes in more than 170 countries.

HP Enterprise Business (formerly TSG) manages enterprise and public sector customer relationships and also the sales processes across the three business segments to improve speed and effectiveness of customer delivery. HP Enterprise Business manages direct sales for value products including UNIX, enterprise storage and software and pre-sales technical consultants, as well as direct distribution activities for commercial products and go-to-market activities with systems integrators and ISVs.

HP Enterprise Business also drives HP’s vertical sales and marketing approach in the communication, media and entertainment, financial services manufacturing and distribution and public sector industries.

Organizational structure

HP's operations are organized into seven business segments:

Enterprise Storage and Servers ("ESS"), HP Procurve HP Services ("HPS"), HP Software & Solutions, Personal Systems Group ("PSG"), Imaging and Printing Group ("IPG"),

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HP Financial Services ("HPFS"), and Corporate Investments.

The three business segments ESS, HPS and HP Software are structured beneath the broader Technology Solutions Group (TSG) in order to capitalize on up-selling and cross-selling opportunities, and given the solution sale approach across the HP enterprise offerings.

Introduction

Toshiba, a world leader in high technology, is a diversified manufacturer and marketer of advanced electronic and electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and materials, power systems, industrial and social infrastructure systems, and household appliances.

Toshiba was founded by the merging of two companies in 1939.

One, Tanaka Seizosho (Tanaka Engineering Works), was Japan's first manufacturer of telegraph equipment and was established by Hisashige Tanaka in 1875. In 1904, its name was changed to Shibaura Seisakusho (Shibaura Engineering Works). Through the first part of the 20th century Shibaura Engineering Works became a major manufacturer of heavy electrical machinery as Japan modernized during the Meiji Era and became a world industrial power.

The second company, Hakunetsusha, was established in 1890 and was Japan's first producer of incandescent electric lamps. It diversified into the manufacture of other consumer products and in 1899 was renamed Tokyo Denki (Tokyo Electric).

The merger in 1939 of Shibaura Seisakusho and Tokyo Denki created a new company called Tokyo Shibaura Denki. It was soon nicknamed Toshiba, but it was not until 1978 that the company was officially renamed Toshiba Corporation.

The group expanded strongly, both by internal growth and by acquisitions, buying heavy engineering and primary industry firms in the 1940s and 1950s and then spinning off subsidiaries in the 1970s and beyond. Groups created include Toshiba EMI (1960), Toshiba International Corporation (1970's) Toshiba Electrical Equipment (1974), Toshiba Chemical (1974), Toshiba Lighting and Technology (1989), Toshiba America Information Systems (1989) and Toshiba Carrier Corporation (1999).

Toshiba is responsible for a number of Japanese firsts, including radar (1942), the TAC digital computer (1954), transistor television and microwave oven (1959), color video phone (1971),

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Japanese word processor (1978), MRI system (1982), laptop personal computer (1986), NAND EEPROM (1991), DVD (1995), the Libretto sub-notebook personal computer (1996) and HD DVD (2005).

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Chapter 1

An Introduction to IMC

Marketing mix

DELL

Product: Though there is no segregation of the different products and services but nevertheless in separating the components enabled it to target the customers based on the regions in which the products are manufactured. By assigning each regionalized production centre particular component for production not only have diversified the risk of concentration of labour and production costs but also depending on particular infrastructure.

Price: For the above reason Dell\'s product pricing reflect the affordability of the local consumers. For example basing plants in Xiamen, China Dell has been able to provide products and services at the local prices without incurring additional costs to price. Price reasonability and the availability of support, after sales services and parts have alleviated Dell\'s position from others.

Place: For this reason, Dell has been able to affect the location strategy aspect of its marketing campaign. As Dell\'s products are always available at the nearest dealer’s customers develop trust for the \"local Dell\" thereby achieving the objective of gaining their trust in Dell products and services, and forming a large and diversified consumer base. Dell has also linked itself in alliance with major players in the IT Industry, such as Intel to compete better with its potential rivals. Promotion: Dell in the past have not concentrated on extensive marketing campaigns but these revolutionaries in 1999 when Dell changed its tactics by engaging in extensive marketing campaigns. The \"Be Direct\" attitude has changed the way consumer view Dell as the local producers. Dell has been successful in its promotions and it is time again to revise this campaign to attract customers.

Promotional Mix

Advertising: Dell advertisements have appeared in several types of media including television, the Internet, magazines, catalogs and newspapers. Some of Dell Inc's marketing strategies include lowering prices at all times of the year, offering free bonus products (such as Dell printers), and offering free shipping in order to encourage more sales and to stave off competitors.

Direct Marketing: Dell Computer Corporation is more successful than its competitors because of its 'Direct Marketing' strategy. Dell figured out the direct sales model early and embraced the

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internet early. It also entered the business market at the right time, promising good enough prices combined with good enough service. The competitive advantages of Dell over its competitors are: Dell’s main competitive advantage has been its direct marketing strategy. It is about giving customers what they want, when they want it. Dell has JIT inventory system and very good supplier integration.

Interactive advertising: The biggest advantage of the Internet is the ability to track responses on a real-time basis. We also track our campaigns and we may shift it if we see good results with one site. For instance, if we're advertising our new notebook at a site that has notebook reviews up and we're getting good results, we would want to optimize our advertising with more on that site or other similar sites.

Sales Promotion: Capitalizing on its marketing campaign starring 20-something, Steven. and the trademark tagline, . Dude, You. re Getting A Dell.. Dell Computer Corporation has launched its newest line of products; . Dude Gear. including Dude-branded T-shirts, caps, notebook backpacks and CD cases. U.S. consumers can purchase online at www.dell4me.com/dudegear.

HEWLETT PACKARD

Product: The merger of Hewlett Packard and Compaq has opened the market to a broadly diversified mix of businesses, ranging from Server, Printers, Scanners, Fax, Personal Computers, Notebooks, Handhelds and Multi Function Devices and has segmented its products to a group of like-minded customers who need a particular selection of service features. Hewlett Packard is characterized for its great service marketing; and sometimes has many varieties of services to tempt discriminating buyers. They also offer some truly different packages, ignoring snoozing competitors who have missed the emergence of a new market segment.

Price: Hewlett Packard’s product pricing lies in the essence of its brand, standing behind such a strong brand as a leader in innovation and corporate reputation, customer are willing to pay more for its products, services and solutions. HP believes that if a product, service or support is clear, consistent, different and better at every touch point it creates a greater experience for its customer and builds lasting loyalty for its brand, keeping this in mind the HP brand is acknowledged for its contribution to creating differentiation and builds a closer bond with its customers through customer loyalty programs.

Place: Like Dell, HP has a direct sales force for its large corporate clients, however HP favours a model where its products are provided \"indirectly\" to customers through resellers or stores located across the globe and provides training materials and support programs for retailers and resellers to assist their customers better. HP will provide its channel partners with the opportunity to resell and possibly deliver services as appropriate. HP also acknowledges the benefits of an in-store experience hence benefiting customers with the touch and the feel of the product. Like Dell, HP has also aligned itself with some of the major players in the IT Industry

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such as AMD, Yahoo etc to keep up with the every growing competition within its industry.

Promotion: Unlike Dell, Hewlett Packard has participated in a lot of marketing campaigns and advertisements targeting a range of segments, e.g. The Disney-themed promotion offering customers the opportunity to win great prizes while they do their holiday shopping, giving them the opportunity to be entertained while they promote and market their products. The most recent ad campaign “The computer is personal again “shows an in-depth consumer research to know different consumers, their different needs, and a varied range of computers to fit to their needs.

Promotional Mix

Advertising: HP incorporates co-operative advertising in its advertising process. HP corporation provides the dealers with the materials and guidelines to develop ads for print, television or radio commercials. This ensures that message is in line with, what the manufacture wants to communicate. The company and the dealers usually share the media costs and hence, the name ‘co-operative advertising.

Sales Promotion: HP has promoted its products through different sales promotionalstrategies. During July 2008 and registered within two weeks of purchase qualify for a Bonus Playstation 3 as long as the customer claims is one of the first 35,000 received and validated by HP.

Public Relations and Publicity: HP corporation has its provided contacts for those customers who will be in need of any information from the company through its website. In this way HP can create a mutual relationship with its customers and ensure that it serves the wishes and demands of its customers.

Interactive advertising: HP also track its campaigns and it may shift it if it see good results with one site. For instance, if we're advertising our new notebook at a site that has notebook reviews up and we're getting good results, we would want to optimize our advertising with more on that site or other similar sites.

SONY VAIOProduct: Television and Projectors, Home video, Home Audio, Home Theatre system, DigitalPhotography , Hand cam video camera , Computer Peripheral , Portable Audio, Game , In-Car entertainment , Mobile phones , Storage and Recording media , Batteries and Charge Other Accessories.

Price: Sony being a company which emphasize product quality, it tends to sell its products with price range from moderately-high to high-prices, depending on the use and the targetedcustomers.

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Place: Sony distributes its products through-1.)ZERO-LEVEL CHANNEL2.)ONE LEVEL CHANNEL 3.)TWO-LEVEL CHANNEL

In India, sony has used the method of one-level distribution channel MANUFACTUR RETAILER CUSTOMER

Promotion: Sony India will spend Rs 200 crore in this financial year on advertising and promotion (Promotional Budget) of the entire range of consumer electronics, out of which Rs 60 crore will be spent only on digital imaging products. The major elements of promotion mix include advertising, personal selling, sales promotion, direct marketing, and publicity. Sony Corporation has used all of these marketing communication mix elements.

Promotional Mix

Advertising: Sony incorporates co-operative advertising in its advertising process. Sony corporation provides the dealers (e.g. Sony World) with the materials and guidelines to develop ads for print, television or radio commercials. This ensures that message is in line with, what the manufacture wants to communicate. The company and the dealers usually share the media costs and hence, the name ‘co-operative advertising.

Sales Promotion: Sony has promoted its products through different sales promotionalstrategies. For example after the release of the Sony BRAVIA television sets, Sony promoted them by earl bird prizes by saying that all full HD LCD TVs purchased during July 2008 and registered within two weeks of purchase qualify for a Bonus Playstation 3 as long as the customer claims is one of the first 35,000 received and validated by Sony.

Public relations and publicity: through its website, sony corporation has its provided contacts for those customers who will be in need of any information from the company. In this way sony can create a mutual relationship with its customers and ensure that it serves the wishes and demands of its customers.

Marketing mix

LENOVOProduct: In separating the components enabled it to target the customers based on the regions in which the products are manufactured. By assigning each regionalized production centre particular component for production not only have diversified the risk of concentration of labour and production costs but also depending on particular infrastructure.

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Price: Lenovo's product pricing reflect the affordability of the local consumers. Lenovo has been able to provide products and services at the local prices without incurring additional costs to price. Price reasonability and the availability of support, after sales services and parts have alleviated lenovo's position from others.

Place: Lenovo has been able to affect the location strategy aspect of its marketing campaign. As Lenovo 's products are always available at the nearest dealer’s customers develop trust for the local customers thereby achieving the objective of gaining their trust in Lenovo products and services, and forming a large and diversified consumer base. Lenovo has also linked itself in alliance with major players in the IT Industry, such as Intel to compete better with its potential rivals. Promotion: Lenovo changed its tactics by engaging in extensive marketing campaigns. The attitude has changed the way consumer view Lenovo as the local producers. Lenovo has been successful in its promotions and it is time again to revise this campaign to attract customers.

Promotional Mix

Interactive Marketing: The company has begun to boost the promotion for online buyers, in particularly the youth and students, because the company could cut great cost to support its low-price strategy.

Sales Promotion: The Beijing Olympic Games should be a prime platform for Lenovo, China's largest PC manufacturer, to tout its heritage. But the company, which acquired IBM's personal computing division in 2005, sticks to its technology message in new ads that close with the line: "Lenovo PCs Power the Olympic Games."

Advertising: Lenovo advertisements have appeared in several types of media including television, the Internet, magazines, catalogs and newspapers. Some of Lenovo Inc's marketing strategies include lowering prices at all times of the year, offering free bonus products, and offering free shipping in order to encourage more sales and to stave off competitors.

Mareting Mix

TOSHIBA

Applying years of consumer electronics experience to its marketing efforts and constantly looking for ways to recognize consumer trends and changes, Toshiba America Consumer Products, L.L.C. ("Toshiba") continues to execute an integrated marketing campaign built on the foundation of "Image is Everything."

Customers Speak…and Toshiba Listens

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Toshiba has a long history of developing marketing programs that are the result of direct consumer research and input, and the recent campaigns are no exception. Having just completed a series of nationwide research, Toshiba is well armed with industry data that will help point its marketing resources in the right direction and ensure that they are speaking to the most targeted consumer using messages that will resonate.

Some of the initial research points to Toshiba's strong reputation of delivering quality products while other areas take a closer look at the most important factors in a consumer's decision making process. "We were very pleased that the research validated our approach to promote lifestyle and the overall breadth of our product offerings," said Tina Tuccillo, Toshiba's Vice President of Marketing Communications. "Other key learnings will allow us to build an aggressive marketing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy."

The Integrated Marketing Disciplines

With fresh insight on its consumers' wants and behaviors, Toshiba can now more effectively arm its unified product sales, training, advertising, public relations, trade show and online teams with consistent, integrated messages and themes. By maximizing its reach in the most cost effective way, Toshiba has been able to keep a consistent, positive position in the Consumer Electronics marketplace. The proof is found in Toshiba's leadership in many of the Television and Digital Audio Video product categories in which it competes. This is not only a tribute to Toshiba's outstanding product quality, but also to its ability to promote a strong brand image.

Toshiba's plans for its upcoming advertising campaign will continue to promote the brand as well as its full line of TVs and Digital Audio Video products. The new ads will continue to support Toshiba's lifestyle appeal while focusing on the overall breadth of the Toshiba line of products and their ease-of-use features, modern space saving designs and convenience.

Toshiba's public relations program has focused on the impact of consumer electronics on consumer's lifestyles, particularly the benefits, features and overall experience that Toshiba products provide to its customers. By implementing a combination of media relations, product reviews, creative mailers, product placement opportunities, media tours, trade events and more, Toshiba's public relations program, like the advertising campaign, continues evolving to communicate, educate and increase consumer awareness of Toshiba products to a larger yet targeted audience.

Toshiba's award winning online communications have also improved with the launch of its redesigned web site (www.tacp.toshiba.com) to help consumers with a host of new features and tools which will ensure that the shopping experience is as easy and enjoyable as possible. The site provides access to product information and registration, owner's manuals and service

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information as well as enabling consumers to purchase accessories including Portable DVD batteries and TV stands. The look and feel of the site also integrates a lifestyle theme that connects all of Toshiba's marketing disciplines. Online communications and the unveiling of www.gigabeat.com were also key for the launch of gigabeat® as Toshiba reentered the portable digital audio category. The site, dedicated to gigabeat and the gigabeat community, features innovative product guides, music links, accessory information and product updates.

As part of its integrated marketing strategy, Toshiba strategically positions its Training and Dealer Support Team in metropolitan areas around the United States, in order to provide support for key retail partners. This internal team is composed of dedicated and knowledgeable product trainers (Field Support Representatives) who are eager to help the salesforce make it easier for consumers when they are looking to buy their next Television or Digital Audio Video player. Toshiba understands the importance of building relationships at the store level and arming front line sales people with the tools necessary to sell Toshiba products successfully. Specific materials that are designed to help the retail salesperson also communicate the overall integrated lifestyle theme, and that campaign is shared with retailers as well. Whether it's a product review from the public relations effort to help make a sale, or a creative collateral sales tool that highlights product features and benefits in an easy way, the goal is to create an image that can be channeled through the "last three feet" between retail salesperson and the consumer.

Toshiba has also developed a full array of product materials including catalogs and product specific collateral to meet customers' needs. Catering to different sets of needs, Toshiba offers catalogs devoted to its main TV and Digital Audio and Video lines, its Cinema Series® line, the new Integrated HD Television line, accessories and stands, and dimensional drawings which include measurements and weights and carry the telltale lifestyle images to reinforce the Toshiba brand and products. Consumers can order product information materials by calling 1-800-631-3811 or by visiting www.tacp.toshiba.com.

"Beyond these individual disciplines, there is a unification of lifestyle themes that really make the campaign relevant and memorable to the consumer," added Tuccillo. "By incorporating lifestyle imagery throughout our catalogs, advertising, on the website, and bringing them to life at press events like Toshiba in Your Life and at trade shows, we are able to communicate an overall Toshiba brand feeling and recognition to consumers."

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Chapter 2

Role of IMC in Marketing Process

Marketing Strategy and Analysis

DELL

HP and Compaq will undoubtedly continue to lose market share to Dell, which has set the benchmark for manufacturing efficiency. Neither HP nor Compaq by itself has retooled to meet that competitive situation, and Gartner believes that the merged HP-Compaq would have at least as much difficulty.

Moreover, Dell already has momentum going for it in gaining PC market share. After taking the top position in the worldwide PC market from Compaq in the first quarter of 2001, Dell extended its lead in the second quarter. Dell's shipments grew by 20 percent year over year to 4 million units, accounting for 13.1 percent of the worldwide market.

This new phenomenon of the internet lowered the prices of personal computers by eliminating the middle man, and allowed customers more direct access to the manufacturer. Dell, Inc was the first major company to really seize the opportunity of selling via internet. More traditional channels are still used by the computer industry as a whole. (Lower 1)Retail stores such as Best Buy and Circuit City have been built solely around the technology industry.

SWOT Analysis

Strengths.

Dell cuts out the retailer and supplies directly to the customers. It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers. So a customer selects a generic PC model, and then adds items and upgrades until the PC is kitted out to the customer's own specification. Components are made by suppliers, never by Dell. PC's are assembled using relatively cheap labor. You can even keep track of your delivery by contacting customer services, based in India. The finished goods are then dropped off with the customer by courier. Dell has total command of the supply chain.

Weaknesses.

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. In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires.

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Opportunities.

Kevin Rollins replaced Michael Dell in 2004 as Dell's Chief Executive Officer. Dell remained the company's Chairman. Despite founder Dell's massive success, new blood and a change in management thinking could lead the company into a new, even more profitable period. Dell was born in 1965, and founded Dell in 1984 with $1000 whilst studying at the University of Texas. He became the youngest Fortune 500 CEO in 1992, and will be a tough act to follow.

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.

Threats.

The single biggest problem for Dell is the competitive rivalry that exists in the PC market globally. As with all profitable brands, retaliation from competitors and new entrants to the market pose potential threats. Dell sources from Far Eastern nations where labour costs remain low, but there is nothing stopping competitors doing the same - even sourcing the same or similar components from the same or similar suppliers. Remember, Dell is a PC maker, not a PC manufacturer.

Dell, being global in its marketing and operations, is exposed to fluctuations in the World currency markets. Although it is a very lean organization, orders do have to be placed some time ahead due to their size or value. Changes in exchange rates could leave the company exposed to potential loses in parts of its supply chain.

Segmentation and Positioning

Dell's product strategy is to target the high-volume systems infrastructure needs of IT managers. While this has proven to be a revenue-rich strategy for Dell — it has the strongest financial performance of the four vendors we examined — the company faces the same challenge that every other hardware vendor in the market does: Become more closely connected to the objectives of your client's business or be relegated to a commodity position. Today, Dell's messaging is heavily targeted at IT management decision-makers. However, that messaging is consistent between Dell's corporate and product marketing so Dell's path to a stronger business technology (BT) orientation does not have to start with fixing the position gaps its competitors face.

HEWLETT PACKARD

HP already has momentum going for it in gaining PC market share. After taking the top position in the worldwide PC market from Compaq in the first quarter of 2001, HP extended its lead in

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the second quarter. HP 's shipments grew by 20 percent year over year to 4 million units, accounting for 13.1 percent of the worldwide market.

HP 's growth is especially impressive considering the decline of the total worldwide market by 0.9 percent in the second quarter. The company was the only one among the top five worldwide vendors--Dell, Compaq, IBM, HP and NEC--that showed a double-digit growth rate in the quarter.

These retailers are still a main distribution channel for most computer companies. Telephone orders have been almost completely replaced by the onset of the internet, but are still a viable distribution channel for some manufacturers. Another recently discovered distribution channel is through the sell of Built-to-Order (BTO) or Configure-to-Order (CTO) computers. A customer simply “builds” their computer online or over the telephone, and it is shipped to their house. Dell was also the leader in this new concept. “Dell’s built-to-order boxes allow for lower inventories, lower costs, and higher profit margins-elements that leave it well armed for PC price wars and IT spending recessions”

SWOT Analysis

Strengths.

For the last couple of years it has held its position as market leader he HP brand is one of the best known and renowned computer brands in the World. HP cuts out the retailer and supplies directly to the customers. It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers. So a customer selects a generic PC model, and then adds items and upgrades until the PC is kitted out to the customer's own specification. Components are made by suppliers, never by HP. PC's are assembled using relatively cheap labor. You can even keep track of your delivery by contacting customer services, based in India. The finished goods are then dropped off with the customer by courier. HP has total command of the supply chain.

Weaknesses.

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. In 2004 HP had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires.

Opportunities.

HP 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 HP compete against iPod and other consumer electronics brands.

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Threats.

HP, being global in its marketing and operations, is exposed to fluctuations in the World currency markets. Although it is a very lean organization, orders do have to be placed some time ahead due to their size or value. Changes in exchange rates could leave the company exposed to potential loses in parts of its supply chain.

Segmentation and Positioning

The world’s most powerful brands have been built on foundations of solid market research, leading to effective market segmentation and consistently well-executed targeted marketing campaigns. While many of the most obvious examples of powerful marketing often come from mega-brands like Nike, Coca-Cola, or McDonald’s, the beauty of these best practices is that they are effective no matter what the size of the firm putting them in place; as long as they are carried out correctly. It is a process that is relatively simple, but often overlooked, revolving around what is perhaps the most important insight a company can have: a true knowledge of the needs and wants of its customers.

SONY VAIO

Anticipating increasing profit-margin pressure from price reductions, Sony has executed a second round of layoffs to reduce operating expenses and maintain an 18 percent corporate gross margin.

This new phenomenon of the internet lowered the prices of personal computers by eliminating the middle man, and allowed customers more direct access to the manufacturer. Sony Inc was the first major company to really seize the opportunity of selling via internet. More traditional channels are still used by the computer industry as a whole. Retail stores such as Best Buy and Circuit City have been built solely around the technology industry.

These retailers are still a main distribution channel for most computer companies. Telephone orders have been almost completely replaced by the onset of the internet, but are still a viable distribution channel for some manufacturers. Sony was also the leader in this new concept.

SWOT Analysis

It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers. So a customer selects a generic PC model, and then adds items and upgrades until the PC is kitted out to the customer's own specification. Components are made by suppliers, never by Sony. PC's are assembled using relatively cheap labor. You can even keep track of your delivery by contacting customer services, based in India. The finished goods are then dropped off with the customer by courier. Sony has total command of the supply chain.

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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 Sony some embarrassment. In 2004 Sony had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires. Sony 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 Sony, being global in its marketing and operations, is exposed to fluctuations in the World currency markets. Although it is a very lean organization, orders do have to be placed some time ahead due to their size or value.

Segmentation and Positioning

Small business owners who want desktop power and convenience in a more portable form factor Creative professionals, such as graphic artists, photographers, web designers, looking for powerful graphics performance and a large viewing area so they can keep several windows open at once Power users, such as engineers and architects, who run heavy apps and require top-flight performance. Treat your eyes to something new. Enjoy the clarity and brilliance of a 1080p HD viewing experience wherever you go on the AW Series notebook. Whether you’re powering through your workload or viewing a Blu-ray Disc™ movie2, XBRITEFullHD ™ technology delivers an industry-leading viewing experience marked by super-crisp hi-def detail, richer colors and a brighter display.

LENOVO

Lenovo Group Limited is today the third largest personal computer manufacturer in the world, after Hewlett-Packard and Dell of the US, and is tied with Acer of Taiwan. Lenovo creates the most innovative products and services in the personal computing industry. A global technology leader for 22 years, Lenovo offers a worldwide product line that includes ThinkPad notebooks, ThinkCentre desktops, and award-winning "air-bag" and fingerprint-reader technologies. Lenovo also commands 30 percent of the PC marketplace in China, the fastest-growing market worldwide, offering a variety of consumer and commercial PCs. Lenovo engineers, programmers and scientists from three laboratories in China, Japan and the United States focus on research and development that solves customer problems and improves productivity. As Technology Equipment sponsor of the Torino 2006 Olympic Winter Games and the Beijing 2008 Olympic Games, Lenovo will be providing the International Olympic Committee with notebook and desktop PCs, servers, storage and other computing equipment. Subscribing to Olympic ideals of international understanding, fair competition and excellence, Lenovo contributes secure, stable computing equipment for the successful operation of the Olympic Games. Let’s discuss its current marketing efforts and problems.

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Segmentation and Positioning

"Lenovo is catching up with its global peers," Cazenove analyst Zhao Xin said of the broader PC stock sell-down. "The main reason behind this is worries of a U.S. recession, which will result in less IT spending."

Despite the brewing concern, however, Lenovo Chairman Yang Yuanqing told Reuters at the Consumer Electronics Show in Las Vegas that the company was insulated from a U.S. slowdown because of its lower exposure to that country relative to its rivals.

Some analysts agreed, saying the firm's overwhelming dominance in China--it controls a third of the world's largest PC arena after the United States--would shield it somewhat from an expected drop in global IT spending.

TOSHIBA

The volume of content on the website had significantly increased since the site’s initial launch. Toshiba BCD required a solution that could save editorial time, was easy for non-technical people to use and would allow for future enhancements.

The major challenge was therefore not only to provide Toshiba BCD with an easy-to-use CMS, but it also had to be compatible with the strict rules that the corporate hosting environment requires for publishing and staging control. In addition, The requirements for user interface flexibility and standards compliance made this a challenging project.

Clear People implemented Sitecore CMS for Toshiba BCD, which includes some of the following features:

A highly efficient publishing tool Adherence to Toshiba global web and security guidelines, including: 

    - Fully protected staging and intranet environment     - Separate (web-farm server) public facing internet/extranet environment      - Preview and Publishing control     - Workflow control

World class adherence to web standards Clean, elegant and flexible user interface Password protected areas (Extranet) for Toshiba partners Flexible form control Flexible brochure download form controls

Segmentation and Positioning

Toshiba BCD has also been doing more segmentation with partner logins: this allows, for example, direct partners access to a price list, while indirect partners get their pricing from distributors. Quick validation: Partners can now register on the portal, and once the email

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address is validated and Toshiba BCD approves the partner, the partner can immediately log on to the portal.

Chapter 3

The Role of Ad Agencies and Other Marketin Communication Organizations

DELL

Ad agency: Enfatico, Bangalore, India

Creative Director:

Copy Writer:

HP

Ad agency: BBDO Guerrero/Proximity Philippines

Creative Director: David Guerrero

Copy Writer: Rachel Teotico

SONY

Ad agency: Nascom, Belgium

Creative Director:

Copy Writer:

LENOVO

Ad agency: Ogilvy & Mather Worldwide

Creative Director: Amit Akali, Malvika Mehra and Neel Roy

Copy Writer:

TOSHIBA

Ad agency:

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Creative Director:

Copy Writer:

Chapter 4

Perspective on Consumer Behaviour

Consumer Decision Making Process

HP

This ad copy shows different features of the laptop. The copy is trying arouse the problem in the minds of the customers. Thus the copy tries to motivate the customers to buy the laptop with new features.

The copy also provides information to the customers who want to buy a laptop and are in search of the information of features. There is not much sensory input in the copy.

Resonse: Long term

Senses trigered: Eyes, ears

LENOVO

This ad copy gives the message that the laptop is "Heavy on features, light on weight." This ad copy presents marketer induced problem of the heaviness of the laptop. Thus the copy motivate the customers to replace their heavy and less featured laptop with the Lenovo laptop.

The copy attract the attention of the spectator through hyperbole.

Resonse: Long term

Senses trigered: Eyes, ears

TOSHIBA

The maessage of the copy is that where others cannot go ahead toshiba continues because of it’s the best technology. The copy uses hyperbole to show the mastery of thechnology. Through sensation it attract the attention of the people. It catters the esteem need of the people.

Resonse: Long term

Senses trigered: Eyes, ears

SONY VAIO

The ad copy shows the ultimate lightness of the laptop.Hyperbole has been used to atttract the attention of the people.

The copy streses on the heavyness of the laptops and motivates people to solve their problem by

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purchaging Sony Vaio.

Resonse: Long term

Senses trigered: Eyes, ears

DELL

The ad copy stress on the problem of typicallity and provides solution through customisation.

The copy attracts the attention through hyperbole about customisation.

Resonse: Long term

Senses trigered: Eyes, ears

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Chapter 5: The Communication Process

A Basic Model of Communication

HP

Souce: HP Corporation

Encoding: The copy has used the logo of the company, special font pattern of the company.

Message: The written and non verbal message of the copy is that the laptop is full of all the needed featurs.

Channel: Mass media (TV commercial)

Receiver: The mass watching TV

Noise: Here the noise may be the language(English)

Response: NA

LENOVO

Souce: Lenovo Corporation

Encoding: The copy has used the logo of the company.

Message: The spoken and non verbal message of the copy is that "Heavy on features, light on weight."

Channel: Mass media (TV commercial)

Receiver: The mass watching TV

Noise: Here the noise may be the language(English)

Response: NA

TOSHIBA

Souce: Toshiba Corporation

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Encoding: The copy has used the logo and punch line of the company.

Message: The spoken and non verbal message of the copy is that when others stop Toshiba laptop continues working.

Channel: Mass media (TV commercial)

Receiver: The mass watching TV

Noise: Here the noise may be the language(English)

Response: NA

SONY VAIO

Souce: Sony Corporation

Encoding: The copy has used the logo of the company.

Message: The spoken and non verbal message of the copy is that light like no other

Channel: Mass media (TV commercial)

Receiver: The mass watching TV

Noise: Here the noise may be the language(English)

DELL

Souce: Dell Corporation

Encoding: The copy has used the logo of the company.

Message: The spoken and non verbal message of the copy is that purely for you.

Channel: Mass media (TV commercial)

Receiver: The mass watching TV

Noise: Here the noise may be the language(English)

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Chapter 6: Source, Message and Channel Factors

HP

Souce: HP Corporation

Message: It has verbal and visual masage. The copy appeals to rational and logical aspect .

Channel: Mass media (TV commercial)

LENOVO

Souce: Lenovo Corporation

Message: The copy has visual message. The copy appeals to rational and logical aspect .

Channel: Mass media (TV commercial)

TOSHIBA

Souce: Toshiba Corporation

Message: The copy has visual message.The copy appeals to rational and logical aspect.

Channel: Mass media (TV commercial)

SONY VAIO

Souce: Sony Corporation

Message: The copy has visual message. The copy appeals to rational, imaginative and logical aspect .

Channel: Mass media (TV commercial)

DELL

Souce: Dell Corporation

Message: The copy has visual message. The copy appeals to rational, imaginative and logical aspect.

Channel: Mass media (TV commercial)

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Chapter 7: Establishing Objectives And Budgeting For The Promotion Programme

Advetising Objectives:

DELL

To attract and inform customers about the customisation provided by the corporation.

SONY VAIO

To attract the customers by shwoin the edxtrerme lightness of the laptop.

TOSHIBA

To shwo the tchnol;ogy leadership of the coporatiopn.

LENOVO

To attract the customers by showi8ng the combination of features and the lightness of laptop.

HP

To inform the customers about the features of the laptop.

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Chapter 9: Creative Strategy: Implementation and Evaluation

Ad Analysis Grid:

Ad appeal

Ad executionFactual straightforward

Factual provocative

Product comparison

Dramatisation

Still life

Mataphore

Demonstration

Spokes person

Testimonial

Borrowed Interest

Humour

Hyperbole

Product/service featurs appeal

HP TOSHIBA

Product/service competitive advantage appeal

LENOVO DELL

SONY VAIO

Product/service favourable price appeal

Product/service news appeal

Product/service popularity appeal

Generic appeal

Consumer service appeal

Consumer self enhancment appeal

Fear appeal

Consumer savings through use appeal

Product trial appeaal

Corporate citizenship appeal

Investor appeal

Social ads

Recruitment ads

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