Marketing opportunities for gaming and multimedia PCs

1.0 Executive Summary

There is a higher level of marketing opportunities for gaming and multimedia PCs despite the fact that the computer hardware industry is marred with immense competition that is highly ever-changing. This market opportunity can be targeted in an efficient manner in order to promote future growth of a starting product. Following this line of reasoning, Dell can take the presiding market opportunity given that it enjoys a global brand image that is fairly supported with a pre-determined supply chain.

This significant establishment within the global market is considered to be a perfect platform for availing the product in respect to its immediate global portfolio. Notwithstanding, the market target is also significantly represented with a substantial number of gamers as well as multimedia enthusiasts that are willing and are able to pay a premium price for the product at hand. Thus, the product should be positioned within the high-end product market since it integrates the latest and fairly-well stipulated specifications that incorporate advanced technological skills. It should be mentioned that the product positioning can only be achieved with effective implementation of a marketing plan that constitutes such elements as the marketing mix, intense positioning, a well-formulated documentation plan and controls. It is in a bid to ensure that effective product launch and development is able to enjoy a stronger position within the minds of the targeted customers.

Gaming computer for Dell computers

2.1 Market Summary

Computer industry is a global and competitive technological industry, where such multinationals such as Dell, Apple, and Microsoft operate. In consequence, competition within the industry is exerted from other small and medium size companies. Notably, the gaming and multimedia market is considered to be dynamic due to the fact that it provides effective technological advances with affordable prices and high quality products for the demanding consumers.

2.2 SWOT Analysis

Strengths ? The companys direct relationship with its consumers is a top-notch phenomenon that provides a positive platform for communication between the firm and its customers. ? Dells capacity to maintain lower levels of inventories due to just-in-time processes allows costs saving. ? The companys capacity to customize different product features at single system level is a plus for customers who can save more time and money. ? The company enjoys an advanced level of supply chain management that allows costs reduction in regard to minimizing inventory levels at given time.

Weaknesses ? The companys imminent concentration to the product end industry has led to lack of innovation. Lack of innovation, in turn, has led to lower profits and poor market sales breakthrough. ? The companys over-reliance on the United States market is a matter to reckon with given that competitors have already penetrated such huge markets as India and China, where they are making significant profits. ? The company is now making losses due to the fact that it had put so much concentration on pricing rather than value-addition strategies. It has led to a dissatisfaction of customers, whose preferences often change.

Opportunities ? There is the possibility to venture into the high-end consumers that are now demanding for quality multi-media and Gaming PCs. It will likely attract customers interested in video editing, movies, and different gaming platforms. ? There is the possibility of the company growing into such huge and international markets as China and India. At the moment, the company strongly relies on the U.S. market. ? There is opportunity for the company to exercise market consolidation activities. It is largely due to the fact that it can access substantial amounts of funds from potential borrowers who can be employed in such consolidation based activities.

Threats ? The company faces the imminent challenge attributed to the maturing United States market with little possibility for growth as well as the impeding economic and financial constraints within the same economy. The diminishing growth of the U.S. market poses a threat to the company, especially due to the companys overreliance on the market. ? There is the possibility of negative reactions from immediate competitors in case the company will come up with a new product like Gaming PC. It is likely to affect the margin sales of the newly introduced commodity to the already matured market.

2.3 Competition

The Gaming industry is considered to be intensive in nature due to the numerous market manufacturers that avail distinctive features such as prices, functionalities and the level of services availed to the immediate consumer markets. There is the possibility that Dell would face imminent retaliation from such established competitors as HP, Acer and Apple that might formulate competing products to counter Dells products (Warman, 2010). The competitors may also embark on offering their Gaming PC products at lower prices in order to prevent Dell from acquiring substantial market shares. Also, competition is likely to be felt from the medium and small sized companies that are focused on providing customized solutions to both local and international customers. Thus, Dell should strive to match its strengths and other abilities in order to meet the immediate needs of the company and for its success going into the future advanced markets.

2.4 Product Offering

The product at hand that would be availed to the customers is characterized by a top-notch, functionality rich, and quality based gaming and multimedia PCs. The product would be availed on a base configuration with a higher intensity in comparison to the already similar products. Furthermore, it will also be availed under different options that would allow capacity to additional features in order to attract a larger gaming user within the market.

2.5 Keys to Success

It should be mentioned that the success of the product at hand would be dependent on the following factors:

Targeted market campaigns that will be conducted in large scale in the course of launching and also after in order to attract and maintain a substantial customer base. Consequently, due to the advance nature of the product relevant marketing platforms should be used in order to reach the specific marketing niche.

Extensive and qualified sales people will be necessary in order to enlighten the potential customers on the product specifications. Thus, knowledgeable sales people should be involved in order to postulate confidence in product knowledge.

Capacity to offer and build on initial demands is a success feature that would be fundamental in ensuring that the company maintains potential customers in the market. It will likely be focused on producing in respect to the immediate demand at hand.

Receptiveness is a feature needed to allow the firm understand and meet the customers immediate needs and thereafter, make necessary arrangements to meet them promptly.

2.6 Critical Issues

Intensive demands for latest technology parts can lead to parts shortage and also extensive waiting periods for the customers that might affect sales revenues.

Capacity of the existing Dell distribution channels to support the new product being introduced into the market, the firm should ensure a formidable physical presence where customers can purchase and learn more about the product.

Ability to counter competition. The competitors will avail similar products at lower prices in order to offset Dells marketing niche.

3.1 Mission

The firms imminent mission rests with availing top-notch computing and technology-based brands in order to assist our immediate consumers into enjoying a customized experience, quality products, and affordable prices for the product.

3.2 Marketing Objective

Below are the firms marketing objectives:

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Within the first year of product launch, the company is targeting global sales of about 100,000 units.

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Within third year of launching, the firm targets sales volume of more than 500,000 units with a $1000 order value.

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The firm should have managed to attract and maintain a customer base of more than 200,000 in the gaming and multimedia sector.

3.3 Financial Objectives

Since the product is meant to increase the revenues and profitability of the firm, the following are the key financial objectives:

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Within third year of launching, the product should contribute to more than 5% of the total companys revenues and 10% of its profits.

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It should have an annual revenue growth of 30% for the first three years of operations.

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The company should, in third year of launching, have about 40% of the products sold.

3.4 Target Markets

The target market would include the hardcore computer gamers and multimedia enthusiasts. In regard to the United States of Americas market size, it is estimated that a $24.7 billion demand will cover for 51% of the Gaming PC industry. 43 % represents the consoles while the 6% of the total demand will represent the demand on mobiles. According to the Entertainment Software Association, they stated that by 2012 there would be about 200 million households within the United States that would use a PC for gaming purposes and we are already in the year of 2014.

The multimedia enthusiasts are a target customer that would use the computers for such functionalities as graphic design, animation and editing. Thus, they would be maintained only through product development and enhancement.

3.5: Positioning

Notably, there are other commodities manufactured by competitors that are customized and target high-end gaming computer niches. On the contrary, these customized are only manufactured by the smaller and medium sized companies, which have lower degree of producing quality products or services that might meet the demands of the entire market (Case, 2012). Significantly, such larger entities as HP, Acer and Apple avail quality products that are conjoined with newer technology. However, these companies do not provide an opportunity for product customization for any of their clients.

The two distinctive characteristics of these competitors indicate the existence of a gap where customers cannot access higher quality products that are customized in accordance with their own decisions. Following this line of thought, given that Dell is aspiring for the provision of high quality, customized and production based on Dell Business Model, thus it will be able to fill the necessities of this demand for gaming customers hence being distinctively positioned in the gaming industry (Case, 2012).

Also, the customers will enjoy the notion of purchasing these customized products from a larger company that has its operations and distributions the world over (Case, 2012). As a consequence, the product will be placed on the market based on their immediate uniqueness as well as customers tastes and preferences, which has the capacity to develop a stronger value that will occupy a customers mind hence leading to brand loyalty (Case, 2012).

3.6 Strategies

As a result of Dells strong branding and its adoption of well-incorporated marketing strategies, it is vehemently positive that the launch of the X Factor gaming PC would also be based on the strategies adopted for Dell IMC.

In the course of launching preparation of the product, an intensive market campaign, focused on targeted market identification and position, will be executed for the product at hand. The marketing campaign will be a continuous process after the launch in the effort of reaching a wider customer base. Subsequently, a more distinctive and intense market strategy would be needed for a specific target customers based on their customized needs (Case, 2013). The aforementioned specific marketing campaigns will be focused on the immediate trends within the markets and also, the capacity to leverage such online tools as social media and other advanced technologies. Notwithstanding, while performing this marketing campaign, Dell should ensure that customers needs are considered in order to develop and establish a relevant and stronger gaming brand (Case, 2013).

3.7. Marketing Mix

Product. X Factor gaming PC, will be the name of the item. The name of the product is able to ascertain that it will be an advanced product in comparison to the already developed ones and would also provide superior services. Production will take cognizant of such features as design, color, latest technology and processing speed in order to attract a substantial number of customers. The after-sales service for this product will be top-notch in the sense that warranties and repair services will offered within the same day of request. It, in turn, will likely maneuver the product within the market hence positing it fairly amongst potential users.

Promotion. Two promotion strategies based on traditional and modern modes will be applied. Traditional approach will allow for weekly based promotional campaigns in regard to corporate objectives. Dell will include adverts promoting the product in its website, faxes to its existing customers through such means as television media, magazine and banner adverts. The traditional mode of advert will enable effective awareness and also, encourage early purchasers on trying the newer experience firsthand. The modern way of promotion will target identifiable customers in a relevant manner. The mode will assume such techniques as sponsorships, consumer-based campaigns and target-based advertising on social platform where gaming contests will be held. It, in turn will promote strong brand loyalty and thus, enhancing the objectives of the company.

Place. Both the traditional and modern ways of promotions will also be used for distribution purposes. Due to the higher involvement of Dells distribution representatives, the channels used will include companys website, telephones and social media platform. Engagement with the customer through these means will be direct and any orders made will be offered through a third party logistics. Sales people will be motivated by the different incentive programs. Non-customized products will be positioned at retail stores for customers to engage with them physically before making purchases (Case, 2013).

Price. Due to the companys objective of aligning the product at high-end market, prices will set at premiums. Customized products and extensively featured ones will be sold at a much lower price. Moreover, qualified customers will be able to access to leasing offers where they will be required to pay in 12, 24 and 36 month lease offers. It will ensure maximization and optimization of sales revenues.

3.8 Marketing Research

The company will be required to engage in R&D activities for purposes of gaining market information in relation to customer profiles and behaviors within different regions for customized implementation of promotions and communications (Case, 2013). Also, primary research activities will be availed at targeted places that are frequented by targeted customers and LAN centers and learning institutions (Case, 2013). However, most of the data from customers will be generated and processed in a real-time basis for efficient working plans and execution programs.

4.0 Controls

An effective control and monitoring systems should be formulated for the purpose of overseeing the marketing campaign. It is ascertained to the fact that the marketing campaign is to be carried out in a simultaneous manner and necessary feedback is needed for purposes of fine-tuning the underlying marketing plan.

4.1 Implementation

For efficient product implementation plan, the firm should formulate a hierarchically based project plan that is able to set immediate details in regard to the campaign initiation and stoppage periods. It is especially because of the assumption that the implementation, which is to be conducted globally, will be executed in the phased manner. The plan should take into consideration the intermediary levels of milestones that should go hand in hand to assist with necessary alterations. It is meant to ensure that the company maintains a control level and thus, it is well-positioned to undertake efficient marketing campaign activities for that matter. In consequence, the ownership of the plan should be conducted at the local level since it covers a wider scope. It involves identification of different people at different positions that would be tasked with the responsibility of implementing the already formulated market campaigns.

4.2 Market Organization

For this product market organization two distinctive persons should be involved: the marketing director and X-Factor product manager that will be tasked with overseeing the entire marketing campaigns. The necessary support will be accessed from other team members and from external groups like web, UI and graphic designers, marketing research personnel among others that will be involved in different aspects of the entire market campaign operations. A distinctive marketing manager should be set in at every geographical area, where the company is purporting to conduct the campaigns. These personnel will be tasked with the responsibility of owning localized marketing campaigns, executing it as well as reporting the necessary feedback to the corporate level managers.

4.3 Contingency Planning

Dell Inc. operates within the ever-changing and intensively dynamic environment and thus, a back-up marketing plan is needed for the purposes of containing extrinsic challenges should they arise at any given moment. Significantly, it would ensure that contingency plans are set in place to oversee the possible success of underlying marketing objectives attributed to the product launch. It is fundamental that the company formulates a close relationship with both the target market and customer at hand in order to ensure effective tracking and supervision of its marketing campaigns.

A primary contingency plan should involve an intensive investment into the marketing campaigns should the expected results differ. However, intense focus should be directed towards such effective and workable advertising techniques as social media campaigns or event planning. A subsequent plan relating to the trade and customer promotions should be undertaken to catapult the activities of the campaigns. It will especially come in handy whenever it is ascertained that market campaigns are not effective on their own. Freebies and intense game subscriptions will also increase the level of sales. Possible competition from such computer hardware companies as HP, Acer and Sony can be countered with formulation of specific marketing campaigns that will be focus-oriented and targeted to the immediate minds of consumers at hand. In doing so, the company will ensure that it has created a substantive stronger position within the minds of the targeted customers.

5.0 Conclusion

The X-Factor Gaming PC is likely to increase the market presence of Dell Company despite the fact that Dell is a huge entity within the computer hardware industry with substantial number of products and other brands already availed within the aforementioned market. This product will also ensure that the company enjoys a higher margin of both sales and profits. The products marketing plan is well-integrated with intensive capabilities as well as formidable competencies that take advantages of the already developed brands and an advanced supply chain management that is efficient in affecting the necessary changes within the computer hardware industry.

Since the existing marketing is marred with ever-changing and very dynamic notions, the formulation of marketing plan should take into consideration the target market and consumer for the purposes of success. A well-formulated marketing objective, marketing plan along with a constant and effective supervision is able to catapult the company in regard to meeting its set goals and objectives for that matter.

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