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Dell Computer: Inspiron Product Development Case
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The Market: With large screen, wireless access and fast processors, the latest pool of high end notebooks are closer to reaching the status of desktop replacement, while still offering the mobility of portable computers. The note book market is a very fast growing market with lots of competition. More and more people are using notebook as their principal computing tool and not necessarily only people who are on the move. In the future the market is set to grow as more and more people are expected to switch to notebook computing with the decrease in price of Notebook as a corollary to the decrease in the price of hardware. However, with the processing power of the microchips doubling every eighteen months, obsolescence of a notebook needs to be factored in the overall product strategy Competitor analysis One of key to building a superior new product is competitive analysis. The main reason for this analysis is to understand the competitor product and their customer base and also to predict how they will react to any new product launch by Dell. A survey of the competitors reveal that Dell is now positioned in the mid price range .The higher price range is occupied by Toshiba Terra 750CDT,Compaq Armada 7792DMT and Gateway solo 910XL. The Lower range of the market has Compaq Presario as the dominant player. The difference in the price range between the two ends of the market has to do with the use of Processors and the life of the battery used. The higher end of the market notebooks has Pentium MMX and Mobile Pentium MMX with battery life of 3 hours on an average. The lower end of the market uses Lower grade Pentium processors or AMD processors and has batteries with average life of 2 hours. This shows that there are segments in the notebook market which are price sensitive. The Marketing Plan Marketing plan is simply a plan of action for new product introduction and launch. It summarizes objectives, strategies, and programs for the marketing plan. The first step is setting up a Marketing objective .The objective is a decision criterion. When a manager is faced with two alternative courses of action, objective is the criterion used to choose one set of action over the other. The marketing objective of Dell is given as achieving a 100% year on year growth.
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