1. © Farhan Mir 2008 IMS E-Commerce & Applications BBA (Hons) 7 th Cases on Retailing & E- Commerce Lectures 4,5,6 Course Lecturer: Farhan Mir

2. © Farhan Mir 2008 IMS Proactive & Direct Marketing Dell Computers

3. © Farhan Mir 2008 IMS Dell’s Direct Marketing Michelle Dell a fresh graduate from University of Texas started the company in 1983 Rather maintaining old PCs or upgrading them (What he started earlier at his company) he realized he could purchase new components from supplier and built is own one He thought he could sell these PCs direct to customer at lower (discount) prices Dell advertised in Magazines and the number of orders increased significantly

4. © Farhan Mir 2008 IMS Dell’s Direct Marketing Within two years it grew from nothing to a $70 Million business Initially consumers ordered PC and them the business climbed to highs when small and large business started to place orders In 1990s Dell started new venture in Europe to extend it’s market and increased its product line and establish a name as far as quality is concerned

5. © Farhan Mir 2008 IMS Dell’s Direct Marketing… In early 1990s Dell establish links with retailers for selling their PCs where customers could have latest brands and after sales service from partner retailers like BestBuy, PC World and Business Depot Although there was growth in companies overall posture but lot of investment was done and indirect channels acquired profit share of Dell therefore there was decrease in stock price of Dell and need for an alternative solution Returning back to its old direct marketing model Dell again saw a boom in it’s business in the mid and late 1990s It became the US No. 1 computer manufacturer and worlds No. 2 in 2000, establishing new unit in Malaysia and new plants in Europe

6. © Farhan Mir 2008 IMS Dell’s Model Dell developed and exercised a model that was not only very unique but it also focused on speed and few inventory This eliminated the reseller’s margins and cost associated with Inventories Dell’s model was based on Information Technologies throughout it’s network, especially among it’s partners The Direct Model also strongly serve Customer Service and Support (one of the focused themes of Michelle Dell)

7. © Farhan Mir 2008 IMS Dell’s Direct Marketing: Here comes the Web Michelle Dell was always fascinated by the growing phenomenon of Internet and World Wide Web An idea stuck at his mind that “why not a customer could order a computer online?” They were selling on phone and those customers were the first willing to place orders online Internet proved to be a more comprehensive yet very efficient extension of Dell’s Direct Model Dell enhanced it’s offerings by providing personalized pages for each customer online

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16. © Farhan Mir 2008 IMS Reactive Direct Marketing (& Customized E-Catalogs) Ford Motors

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28. © Farhan Mir 2008 IMS Regional Services (Store) Peapod

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