Executive Summary

The laptop industry has been growing at a rapid rate over the last few years. Some of the major players of the laptop industry are Hewlett-Packard, Dell, HCL Info Systems, Compaq, Toshiba and so on. The leader among these is Hewlett-Packard with a market share of 18.2% and Dell is in the third position with 9.7%.

In this study we tried to find out about the consumer’s perception of Dell and one of its main features customization.

We conducted a survey using questionnaires with a sample size of 60 comprising of students, IT professionals and non IT professionals.

Our research revealed that Dell is mainly popular among its consumers because of its assured quality and customized features.

As one of the highlights of Dell laptops, customization is hugely popular among the consumers especially in the age group of 18-30 years.

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Chapter 1

INTRODUCTION

This study aims at identifying the positioning of Dell laptops among the different sections of the

consumers. With big sellers such as Hewlett-Packard, IBM, Apple etc as competitors, we tried to

evaluate the positioning of Dell laptops in the minds of the consumers and the level of satisfaction of

the consumers with the laptops and services provided by Dell. As customization is one of the

highlights of the Dell laptops, we attempted to find out the customer’s preference of customization in

laptops as compared to laptops with standard configuration.

About Dell

Dell Inc is a multinational technology corporation that develops, manufactures, sells, and supports

personal computers and other computer-related products. While a student at the University of Texas

at Austin in 1984, Michael Dell founded the company as PC's Limited with capital of $1000.

Operating from Michael Dell's off-campus dormitory room at Dobie Center, the startup aimed to sell

IBM PC-compatible computers built from stock components. Michael Dell started trading in the

belief that by selling personal computer-systems directly to customers, PC's Limited could better

understand customers' needs and provide the most effective computing solutions to meet those needs.

In 1985, the company produced the first computer of its own design — the "Turbo PC", sold for

US$795 — which contained an Intel 8088-compatible processor running at a speed of 8 MHz. PC's

Limited advertised the systems in national computer-magazines for sale directly to consumers, and

custom-assembled each ordered unit according to a selection of options. This offered buyers prices

lower than those of retail brands, but with greater convenience than assembling the components

themselves. Although not the first company to use this model, PC's Limited became one of the first

to succeed with it. The company changed its name to "Dell Computer Corporation" in 1988. In 1989,

Dell Computer set up its first on-site-service programs in order to compensate for the lack of local

retailers prepared to act as service centers.During the 1980s and 1990s Dell became the largest seller

of PCs and servers for a certain time period. At present it holds the third position in the computer

sales industry behind HP and HCL Info Systems.

In the 1980s Dell became a pioneer in the “configure to order” approach to manufacturing –

delivering individual PCs configured to customer specifications. The company sells its products and

services directly to customers through sales representatives, telephone-based sales, and online at

www.dell.com, as well as through various indirect sales channels.

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Chapter 2

An Insight into the consumer’s mind!

TITLE OF THE STUDY: “A STUDY ON CONSUMER’S PERCEPTION ABOUT DELL AND CUSTOMIZATION”

STATEMENT OF PROBLEM: In the present day scenario laptops are gaining much importance

than PCs. People tend to buy as it is portable, easy to carry and due to its flexibility. Laptops of

different companies are available in the market with different configurations and styles at

competitive prices. Selecting and buying of the product depends on the various factors sthat a

customer look for. In order to meet the customer needs laptop companies have come up with

different strategies to gain their trust and faith in the product. Customer focused strategies and

customized products have become increasingly popular.

The purpose of this study is to find out if customization of laptops playing a major role in customers

while buying the product and DELL which is known for its customization, has really helped them to

gain the market share and the trust of its customers.

Objectives of the study

1. To find out the factors which influences a consumer’s decision before purchasing a laptop.

2. To understand a consumer’s behavior while selecting a laptop.

3. To analyze consumer’s perception of Dell laptops.

4. To analyze consumer’s preference of customization among different target markets.

5. Consumer preference on laptops-standardized or customized.

Scope of this study:

The results of this study will help understand the consumer’s behaviour towards selecting laptops as

which is the factors that plays a deciding role in the consumer’s mind before purchasing a laptop.

This study will also give us an insight into the consumer’s perception of Dell laptops as what are the

advantages and disadvantages of using a Dell laptop. So, the results will help us evaluate whether the

consumers are satisfied with the products and services provided by Dell and to analyse if the current 3

marketing tactics are successful or whether some reforms are required in order to increase the sale

and maximise the profits.

LIMITATIONS OF THE STUDY:

1) The study is limited to a sample size of 60.

2) The study was based on available information and document.

3) In depth study was not possible because of shortage of time and cost.

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Chapter 3

INDUSTRY PROFILE

With more people getting tech savvy and computer literate, many Indians are looking at getting their

own personal pocket PCs. From business professionals to college graduates, everyone in India seems

to be harbouring for a laptop. One of their main advantages over a desktop computer is the ability to

carry it around and the portability factor. Laptops are generally used by those who work outside the

workplace, who are heavily into graphic designing and need to stay in touch with anyone and

everyone 24 x 7.

According to IDC India, a premier global market intelligence firm, the laptop market has registered

79% Year-on-Year (YoY) growth during 2006. The laptop sale is growing at much faster rate than

projected. India's personal computer market is undergoing a major transition. However, laptop

computers cannot completely wipe out desktop computers, because both are designed to meet

different needs or different consumer segments. According to a top official of HCL Info Systems,

market share of laptops would be 35-40% in the next two years.

The major players in the Indian laptop industry are:

Hewlett Packard (HP)

IBM

Toshiba

Compaq

Dell Computers

Sony

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Growth Drivers

Indian Laptop market in now in sync with global market. It was in 2005 that sales of laptops

surpassed the sales of desktop computers for the first time in India.

The Laptop market is growing at a fast rate because of change in work life of consumers. As

the need for "anytime anywhere" access to information is increasing, the sales of Laptops are

also increasing.

Other factors that are responsible for the hike in sales figure are reduction in prices and

affordability. Laptops are now sold at approximately half the price at which they were sold

two years ago. Laptops prices are now almost at par with the desktop computer prices.

The third most important factor is duty free import of Laptops as a personal baggage that has

helped a lot in increasing the penetration level of the product among the consumer

population. Awareness about laptops has also increased over the years.

In the financial year 2008-2009, HP maintained its lead and gained share to capture 18.2% of the

India PC market in terms of unit shipments. HCL Infosystems with a market share of 9.8% of overall

PC shipments regained the second spot. Dell, which jumped to second position for the first time in

the Oct-Dec 2008 quarter, slipped back to the third spot in 1Q 2009.

Table showing the market share of top 5 players in the Indian laptop industry

COMPANY

MARKET SHARE

HP 18.2%

HCL Info systems 9.8%

DELL 9.7%

ACER 7.3%

LENOVO 4.7%

(According to IDC’s Asia/Pacific Quarterly PC Tracker 2009, 1Q 2009 quarter, May 2009 release)

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COMPANY PROFILE

Dell Inc. is a multinational technology corporation that develops, manufactures, sells, and supports

personal computers and other computer-related products. The company is based in Round Rock,

Texas.

In 2006, Fortune magazine ranked Dell as the 25th-largest company in the Fortune 500 list.

Dell—through its direct business model—designs, develops, manufactures, markets, sells, and

supports a wide range of computer products and services that are customized to customer

requirements. These products include enterprise systems (servers, storage, networking products, and

workstations), client systems (portable and desktop computer systems), software and peripherals, and

service and support programs.

Dell markets and sells its products and services directly to its customers, which include large

corporate clients, governments, healthcare, and education accounts, as well as small-to-medium

businesses and individual consumers. Dell’s climb to market leadership is the result of a persistent

focus on delivering the best possible customer experience by directly selling standards-based

computing products and services.

Dell employs more than 76,500 people worldwide as of 2009.

DELL INDIA:

Dell India Pvt Limited (the Indian arm of Dell Inc.) was incorporated in 1996. Dell’s direct

operations in India started in the year 2000 from Bangalore. Ever since its launch in India, Dell India

has been growing at a tremendous pace. The major support factor for this growth has been the team,

Dell’s direct model and the high levels of post sales service given to the customers. Dell India got the

top rank for product and post sales service support in the DQ-IDC Customer Satisfaction Audit 2005.

This feedback from customers is a clear indication of Dell's growing stature in India.

As of 2008 it held the second spot in computer-sales which enjoys a market share of 11.3 per cent

within the industry behind Hewlett-Packard which has market share of 17.1 percent. The company

currently sells personal computers, servers, data storage devices, network switches, software, and

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computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics

built by other manufacturers.

The Indian arm of Texas-based computer maker Dell Inc., Dell India Pvt. Ltd, says its revenue

increased by 50% last year to touch $600 million (Rs2,370 crore) by the end of October.

Dell India is the second biggest centre with 13,000 employees.

DELL RETAIL STRATEGY:

In India, as part of the retail initiative, Dell tied up with Tata Croma (the Tata-owned electronics

retail chain) in July 2008 and with select Staples stores. By the end of 2008, Dell planned to increase

its presence to 100 Indian cities by increasing its channel partners. In October 2008, Dell announced

the opening of the first Dell exclusive stores in India at New Delhi and Coimbatore. Dell also tied up

with 600 systems integrators all over the country who could take orders on its behalf.

DELL’S NEW MARKETING STARTEGY IN INDIA:

Dell is targeting the small and medium businesses (SMB) in smaller towns in India as its main driver

for growth as the company believes this market sector is growing rapidly and is not exposed to global

shocks making it a much more stable market.

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Chapter 4

Literature Review

Operational definitions

Customization:

The process of modifying products or services to meet the requirements of individual customers. The

product will be designed and developed according to the customer needs and not as per the company

standards.

Configuration:

It is the settings on a computer. Through different settings different purposes are achieved (i.e.,

configurations to connect to certain wireless networks; firewall configuration to deny all unsolicited

network requests; graphics settings that enable high-performance graphics, etc.)

Standardization:

The adoption of generally accepted uniform procedures, dimensions, materials, or parts that directly

affect the design of a product or a facility.

The process of establishing by common agreement engineering criteria, terms, principles, practices,

materials, items, processes, and equipment parts and components.

Customer service:

Customer service is an organization's ability to supply their customers' wants and needs. Customer

service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that

a product or service has met the customer expectation."

Dell Deals –

When going for a new computer or computer accessory to an electronic or computer store, high

pressure sales tactics can sometimes confuse the consumer and make them spend a lot more than

what they intended to at the onset. Dell Computers has a way to get around that with their online

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shopping options. No longer will you be subjected to pushy sales people trying to make a bigger

commission. Instead you can browse through computer choices at your leisure, get information about

packages and have your computer built for you exactly per your requirements. You no longer need to

buy more than you need or less.

Dell Computers has a wide selection of computers and computer accessories available. You can

purchase desktop computers for your home or office at the click of a mouse. You can choose your

base model and then add whatever programs or features you want before finalizing your sale.

Shopping at Dell is easy, convenient and secure. You will get you products shipped to you quickly

and it will be exactly as you requested them. There are warranties on all their products to ensure the

consumer is pleased with the final purchase. If there are problems with the order or if you need

technical assistance, Dell customer service is there to help you twenty four hours per day, seven days

per week. You never need to worry about your products use because Dell is there to assist you.

Dell is ideal for home users who need a new computer for personal use or school. However, Dell is

also a great way for businesses to purchase their computers and computer supplies. No longer does

someone need to take time out of the day to run to the office supply store or computer store for a new

desktop. Instead the specifications for the computer systems are saved and a shipment will be made

within a few days to the office. This is ideal for businesses that get new employees or upgrade their

existing systems. Shop at Dell for convenience and good customer service.

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Chapter 5

Research Methodology

Research design

The main objective of this research is to evaluate customer satisfaction with Dell laptops and their

preference in configuration of the laptops with respect to customization.

The data collected from a predefined sample size is analyzed using statistical analysis tool SPSS 17.0

to test the following hypotheses –

Consumers prefer Dell laptops over other brands.

Consumers prefer customized laptops over standardized ones.

Among different age groups youth prefer customization the most.

The required data for the study is collected through:

Sampling – A sample size of 60 was selected in such a way that 40% of them were students, 40%

IT professionals and 20% among them were non IT professionals.

Primary Data – This includes structured questionnaires that consist of both open ended and

closed ended questions. The questions are framed in such a way that it helps us to get an insight

into the consumer behavior before purchasing a laptop and also customer preferences among

different laptop brands and the configuration of the laptops.

Field Work – To achieve an unbiased response, questionnaires were distributed outside colleges

and offices and also among customers in the computer and electronic stores.

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Chapter 6

Data Analysis

The data is analyzed using statistical analysis tool SPSS 17.0 using data collected through

questionnaires from a sample size of 60.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

ownership of laptops * type

preference

54 90.0% 6 10.0% 60 100.0%

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square 1.732a 1 .188

Continuity Correctionb .073 1 .786

Likelihood Ratio 2.019 1 .155

Fisher's Exact Test .370 .370

Linear-by-Linear Association 1.700 1 .192

N of Valid Cases 54

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .37.

b. Computed only for a 2x2 table

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From the above graph, we can infer that majority of the consumers who owns laptop, prefers customization.

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Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

ownership of laptops * brand

usage

55 91.7% 5 8.3% 60 100.0%

Chi-Square Tests

Value

Pearson Chi-Square .a

N of Valid Cases 49

a. No statistics are computed

because ownership of laptops is a

constant.

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From this graph, we can infer that we can infer that the consumers who have used Dell laptop atleast once , finds it to be better than the other laptop brands.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

brand usage * type

preference

54 90.0% 6 10.0% 60 100.0%

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Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 11.175a 4 .025

Likelihood Ratio 11.510 4 .021

Linear-by-Linear Association 7.947 1 .005

N of Valid Cases 54

a. 4 cells (40.0%) have expected count less than 5. The minimum

expected count is 1.11.

From the above bar chart, we can infer that majority of the consumers among any brand prefer their laptops to be customized.

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Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

brand usage * age of the

respondent

55 91.7% 5 8.3% 60 100.0%

type preference * age of the

respondent

54 90.0% 6 10.0% 60 100.0%

Brand usage * age of the respondent

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 6.943a 12 .861

Likelihood Ratio 7.542 12 .820

Linear-by-Linear Association 1.320 1 .251

N of Valid Cases 55

a. 14 cells (70.0%) have expected count less than 5. The minimum

expected count is .05.

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From this bar chart, we can infer that Dell has been able to become a major player in the laptop industry and is highly popular among different sections of the laptop users.

Type preference * age of the respondent

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 2.513a 3 .473

Likelihood Ratio 2.802 3 .423

Linear-by-Linear Association 2.036 1 .154

N of Valid Cases 54

a. 4 cells (50.0%) have expected count less than 5. The minimum

expected count is .37.

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From this bar chart we can see that the youth, that is in the age group of 18 to 30 years prefer customization more than standardization.

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Chapter 7

Summary of Findings

Analysis of the data collected from the sample reveals that-

1. Dell has been able to position itself in the minds of the consumers as a major player in the laptop industry.

2. Consumers are overall satisfied with the products and services offered by Dell.

3. Most of the consumers who have used Dell prefer it over other laptop brands.

4. Customization is hugely popular among laptop users and especially among consumers in the age group 18 to 30 years.

5. Consumers who don’t own a laptop but may buy one in the future prefer standardization.

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Chapter 8

Conclusion

The laptop industry has been recording an exponential growth and with it many new brands are entering the market. Dell has been going steady with a good market share and it has positioned itself as a quality product in the minds of the consumers.

As a pioneer of customization, Dell has been projecting it as one of the highlights of its products. Among the tech savvy youth of today, customization is hugely popular so many prefer to go for Dell laptops so this marketing tactic of projecting customization has been a very successful one.

From this study, we can conclude that customization and quality can be termed as two major key factors in the success of Dell laptops among different sections of the consumers.

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Webliography

http://www.idcindia.com/Press/10June2009.html http://www.naukrihub.com/india/fmcg/overview/laptop/ http://www.business-standard.com/india/news/dell%5Cs-india-sales-grow-17-in-july-sept-

quarter/79302/on http://www.casestudyinc.com/Articles/Dell-India-Strategy.html http://www.authorstream.com/presentation/dhuwad-96805-laptop-industry-unfulfilled-needs-

ppt-business-finance-powerpoint/

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