sales plan: phase one and two - · pdf filesales plan phase two 2 executive summary dell, a...

SALES PLAN PHASE TWO 1

Sales Plan: Phase One and Two

Team D

Michele Morehouse, Heather Jordan, Nina Hewitt, Thelma Dade & Jeffrey Dickey

University of Phoenix

MKT/445

Faith Werner

December 21, 2009


Executive Summary

Dell, a worldwide leader in computer technology, has risen again with the innovation of

the Dell mini 10 and 10v netbook. Unlike the traditional notebook, the Dell netbook has every

program that a user could want with hands-on access. The mini 10v has select features such as

the availability of GPS navigation and internal WANN support (Dell Mini Netbooks, 2009). The

mini 10v has limited features, but is perfect for on-the-go individuals. The Dell mini 10v

netbooks meets the needs of individuals that are looking for an easy portable netbook that allows

them to stay in contact with people because due to the availability of a wireless internet

connection and Bluetooth (Dell Mini Netbooks, 2009). With the possible and seemingly never

ending features of the mini 10v this product is still in the growth stages of the product life cycle.

An environmental scan, situation analysis, and SWOT analysis help Dell to measure the

affect of internal and external factors regarding the company and product. The environmental

scan analyzes the internal and external environments that impact the way Dell functions to sell

this product (Johnston & Marshall, 2009). The situation analysis attempts to analyze internal and

external factors that will affect the sale of the product or service through internal and external

audits (NPD Group, 2009). A SWOT analysis discusses the strengths, weaknesses, opportunities,

and threats of Dell and the netbooks.

Logically sales goals of the Dell netbook must be accounted for in the sales plan. The

Dell 10v netbook is facing a challenging environment (CNN Money, 2009). The sales strategy

and customer relationship strategy help promote the Dell mini 10v netbook. CRM strategies will

need to change in the different places with different cultures. The strategies must strike a balance

between catering to specific cultures and allowing Dell to truly establish customer relations


(Jobber & Lancaster, 2003). The tactics of how to sell the Dell mini 10v netbook offer a wide

variety of options. The measurement tools of the sales plan for the Dell mini 10v netbook will

measure the effectiveness of the tactics and strategies to ensure they are effectively selling the

product.


Sales Plan for Dell Netbooks

The sales plan phase one will address the description of the product, products current

position in the product life cycle, environmental scan analysis, situation analysis, and SWOT

analysis. The second phase of the sales plan will address sales goals, strategic plan, tactics, sales

budget, and measurement tools. The sales plan in its entirety will allow Dell to effectively

distribute the Mini 10 and 10v netbooks (Dell Mini Netbooks, 2009).

Description of Product

Dell netbook is a mobile personal computer that is comparatively smaller than the

traditional laptop. The small size of the Dell Mini net book allows it to be portable. The

notebook has wireless and entertainment features. The Dell Mini provides mobile entertainment,

social connection, and smart design (Dell Mini Netbooks, 2009).

The netbook allows the user to have highly mobile entertainment with email, online

shopping and gaming, and a myriad of other mobile features. The features of the netbook are

seamless and cinematic viewing. Seamless viewing provides users with 16:9 ratio of a

widescreen display surface, which allows consumers to use websites with a larger left to right

scrolling surface. The cinematic view is a feature that allows users to connect to an external

monitor or a TV to watch movies. The external monitor would connect to the mini notebook

through the HDMI port (Dell Mini Netbooks, 2009).

The Dell netbook allows for easy social connection for its users. The Dell Mini keeps

people connected wherever they go through two primary features, wireless fidelity (Wi-Fi) and

Bluetooth. The Wi-Fi connection is an internal 802.11b/g. The Bluetooth connection is 2.1 (Dell

Mini Netbooks, 2009).


Aside from the ease of social connectivity, the Dell Mini provides a smart design for its

users with storage, keyboard, and long battery life features. The storage of the mini has different

hard drive options and 2 GigaByte (GB) of memory. The keyboard is a smaller size than that of

a traditional notebook. Also, it has a multi-touch track pad, which helps users to navigate. The

battery of the mini has an extended life, which is an accommodation for the mini being less than

3lbs (Dell Mini Netbooks, 2009).

Product Life Cycle

To better understand the current position of the Dell netbook, one must understand where

the product exists in the produce life cycle. The typical product life cycle consists of four phases.

The Dell netbook has gone through or will go through these phases, which are introduction,

growth, maturity, and decline. Each product life cycle shows the development and change of a

product within the market. The changes in the market result in changes with the marketing mix

of the Dell Mini netbook (QuickMBA, 2007).

The Dell Mini is in the growth phase of its product life cycle because product is

beginning to build brand preference, awareness, and market share. In the growth stage the

marketing mix of product, pricing, distribution, and promotion change from the introduction

stage, where the product first hit the market. Product quality is maintained and modifications are

made to the current features, but new features are added. The original Dell Mini 9 netbook

models did not have seamless viewing, GPS, or internal WAN support (Dell Mini Netbooks,

2009). The price of the Dell netbooks are maintained from the older model to the new model as

upgrades and changes occur. As the market demand increases the distribution channel of the


product changes. Additionally, the netbook targets a broader market as the sales and other

promotional materials change (QuickMBA, 2007).

Environmental Analysis

Certain factors in a company’s environment impact the way a company must function to

sell a product. One set of factors that will affect Dell’s ability to sell their netbooks, as they

affect the way any company sells anything, are external factors (Johnston & Marshall, 2008).

The Dell netbook is most likely going to be affected by the state of the economy (Gonsalves,

2009). The market share for netbooks has grown from nothing in early 2008 to 65% as of April

2009, which was a result of the suffering economy. This is thought to occur because consumers

have less money to spend during a soft economy, and the netbook is cheaper than full-size

models (Ogg, 2009). Currently, netbooks are very trendy, listed in Fortune Magazine as one of

the four trends to watch for in 2009 (Copeland, 2009). However, the netbook craze is thought to

have its descent as the economy recovers by mid-2010, as customers will have money to buy

full-size models (Gonsalves, 2009). As a company Dell continues to see improvement in its

demand environment. Consumer revenue was flat at $2.8 billion in the third quarter of this year,

down 10% from this time last year (Dell, 2009). The company must consider the competition in

the netbook industry. Currently every PC manufacturer produces a netbook, including Acer that

has 38% of the market share (Copeland, 2009). Aside from external environmental factors that

impacts the way Dell sell, is the internal environment of Dell.

Another set of environmental factors impact the way that a company sells, and these are

part of the company’s internal environment (Johnston & Marshall, 2009). The company’s

culture, mission, objectives, and values will all play a part in how the company will sell the


netbook. Most of Dell’s business, both for consumers and business to business, is done online or

as a close second, on the phone. The company does not explicitly state on their website any

standards of customer service, perhaps because Dell’s focus is on automated Internet sales.

Situational Analysis

As part of the larger marketing program the situational analysis attempts to recognize and

analyze internal and external factors that will affect the sales of a product or service by

conducting internal and external audits. Internal elements that affect the sale of the Dell Mini

Netbook are the current size and growth of market share for small affordable personal

computers. The more affordable netbooks are trending upward due to the sales price and appeal

to consumers starting to experience the Internet for the first time. Dell is a multinational

company and data also shows growth of markets in other countries, especially South American

countries.

With year over year growth in the Latin America segments Dell would be wise to

continue pursuit of market share in that region. The internal audit should also include customer

needs, attitudes, and trends concerning mini-notes along with Dell’s current marketing mix. The

new Zino HD is a good compliment to Dell’s Mini line products, which offers home theater PC

(HTPC) features in a small package (Dell, 2009). Competitor analysis is part of the internal audit

analysis. Many competitors also market mini-books and price is part of competing in the market.

Chart two (Appendix A) shows the declining prices of all portable PCs.

External audits analyze the external environmental elements that will affect Dell’s future

sales of products and services. The PEST analysis considers Political, Economic, Socio-culture,

and Technological trends that affect future impact of product and service sales. These elements


concern very broad subjects and Dell is affected by them all, especially socio-culture and

technological trends. Providing products that allow easier access to the Internet in a small

package such as the Dell Mini 10 Netbook follows trends in the changing global culture and

society. Technological trends toward miniaturization of personal electronics like the Dell Mini

Netbook, indicates that Dell is aligned with the changes in the technological environment. The

market situation analysis covers internal and external elements. The internal and external

elements can affect the objectives found in the SWOT analysis.

SWOT Analysis

The Dell Mini 10v is an innovative product and has received outstanding reviews from

the public. The Dell Mini has been analyzed by many consumers and the feedback has been

enormously balanced giving this product a well rounded perspective for buyers to check out. A

SWOT analysis reveals the strengths, weaknesses, opportunities, and growth that will further

help build an effective plan for selling.

Strengths

One strength of the netbook is that customers are satisfied with the screen size,

keyboards, and longer life of having a 3- to 6- cell battery, which has a life of about six hours.

Another strength of the mini is the power adapter being combined to one unit for more power.

The sleek designs are a strength that target individuals that are on the go. Many customers

reportedly liked the inspi(red) edition of this computer, which supported AIDS relief around the

world (Dell Mini Netbooks, 2009). This goes back to a strength of the company as a whole,

which is that it listens to customer needs and creates products that answer those needs.


Dell has made the Mini netbooks eco-friendly. The packaging of the mini and other

products are part of the new eco-friendly policy of Dell, and this makes the product appealing to

customers that are looking to make eco-friendly purchases. Aside from the materials used,

energy usage is another concern that Dell is addressing through their commitment to working

toward a better, friendlier environment (Dell Mini Netbooks, 2009).

Along with Dell’s commitment to environmental sustainability, the company is further

enhancing its own sustainability by maintaining pricing that strikes the balance between profit

and affordability for customers. The Dell Mini netbook ranges at $299, which is promoted

through marketing along with coupon offers that give consumers other saving. Low price is a

competitive advantage for the Dell netbooks as they strive in the computer industry. Dells

competitors, such as Hewlett Packard and Acer, are losing market share to the Dell netbook, a

more cost-effective netbook that is reaching the busy life style market segment (Liliputing,

2009). The aspects of the netbook that do not result in strengths will result in weaknesses that

will limit the product.

Weaknesses

Despite the strengths of the Dell netbook the product has certain limitations. The memory

is small, but Dell offers an option to purchase more memory. If an individual requires more

features, Dell will have consumers digging into their pockets. The durability of mini is another

limitation. Like notebooks, these need to be handled with care and customers should purchase

extended warranties.

Another weakness that is being reported by customers involves the difficult-to-use

touchpad. The difficult touchpad has resulted in many complaints the users of this product. This


issue can be dealt with through modifications when Dell implements upgrades in the Mini 11.

Issues tend to occur with new products, but do not deter people from purchasing them

(Liliputing, 2009).

Opportunities

An opportunity that Dell has is to innovate their netbook enough that it resembles the

competitions’ products very little. The Mini 10v is comparable to the Acer and HP mini netbooks

(Liliputing, 2009). They carry the same GB memory, screen size, and design, with a varied

battery life span varies. The opportunities available are endless because of the opportunity to

expand mini netbook market.

Threats

While netbooks have begun a new trend in the technological world, threats for the Dell

mini occur with its current competitors, which are Hewlett Packard and Acer. The production

methods are the same and the software is equal, but the netbooks do not reach the larger market

that is reached by full-size laptops (Liliputing, 2009). If HP or Acer upgrades or modifies their

mini netbooks, then Dell will need to counteract these actions through newer innovations to stay

on top of the competition because they could lose their competitive advantage.

Sales Goals

Dell Computer Incorporation personal computer and Dell Inspiron 10 and 10v Netbook

laptop sales have pressured the bottom line. “Revenue of $12.3 billion and estimation of 34% in

lost profits for first quarter of 2009. The company says environment is ‘challenging’; however,

sales potential for Dell are looking up for 2010” (“CNN Money,” 2009). With the proliferation


of wireless access and the netbooks Dell Corporation and eight other companies hold about 85%

of the global market

Dell provides products targeted at different populations. By conducting market research

for each population Dell will target the correct products to the population. The Windows Seven

operating system and the new Dell Inspiron 10 and 10v Netbook should drive consumer demand

back up.

The success of Dell Computer Incorporation is the result of market segmentation and

specialization strategies Michael Dell experience as a paper boy one hot summer in Houston,

Texas. Dell Computer Incorporation is still using the market research for target marketing as

pioneered by Michael Dell. The success of Dell Computer Incorporation main focus is on

individual users with low budgets rather than focusing only on executives and managers with not

budget limitations.

“Constraint interaction with its customer gives Dell the ability to understand unique

computing needs that drive individual and enterprise productivity” (Dell, 2009). Dell Computer

Incorporation is in the process of changing the perception of a company with one of the worst

customer service department. Looking at how market research focusing on project conceived,

planned, and execute improving customer services at Dell Computer Incorporation in the

struggle to improve customer service to the same or above the level as Hewett Packard. Dell is

striving to provide quality hardware and effective customer service.

Sales and Customer Relationship Strategy

In order for Dell to hit the sales goals discussed above it will need to develop sales and

customer relationship strategies that answer to their customers’ needs. Dell’s sales strategy for


the netbooks starts with identifying the objective to accomplish, which should be to increase

market share by ten percent in the international netbook market. To accomplish this objective

sale strategies are derived from the preceding information. As the data shows in Appendix A,

South American imports of netbooks has increased as the popularity of netbooks increases. One

strategy will be to increase advertising, promotional, and publicity functions in South America to

increase Dell’s market share.

One sales strategy that will be highly beneficial to carry over from Dell’s other products

is the company’s usage of direct sales to consumers using the Dell website. This will need to

continue to be a mainstay in sales strategy concerning business-to-consumer sales. A sales

strategy Dell can implement in its business-to-business sales. Businesses that provide portable

personal computers to employees should be contacted and presented with advantages of the Dell

Mini 10v. Researching previous Dell business customers will generate interest, and hitting the

streets with attractive presentations and incentives will increase Dell’s market share of mini

netbooks. While these strategies will allow Dell to build on current customer relationships and

possibly create new customer relationships, the strategy will need to continue into Dell’s

customer relationship management (CRM) program. (Jobber & Lancaster, 2003).

One purpose of a customer relationship management (CRM) program is described by

authors Spiro, Rich, and Stanton (2008) as, “…customer relationship management (CRM)

programs help sales organizations keep detailed records on all business customers” (p. 9). Dell’s

current CRM program should be used as a source of researching, contacting, and presenting the

Dell Mini 10v netbook to achieve sales objectives. The fact that a majority of South Americans

do not speak English is common knowledge, and for Dell to increase market share successfully

in those countries new strategies for non-English speakers concerning CRM need to be


developed. Considering the sociological, economic, and technological factors relating to South

American countries the strategic CRM program will require the acquisition or support of a local

marketing company. Reasons for this strategy are to avoid mistakes in translation of Dell’s

message and to improve brand recognition and loyalty (Johnson & Marshall, 2008). Now that

objectives and strategies are written out the tactics that will support their achievement are

brought into view and implemented (Jobber & Lancaster, 2003).

Tactics

When it comes down to selling the Dell Mini 10v, this product mostly sells itself.

However, current tactics are helping the company expand. For instance, the company is making

prominent offers encouraging people to purchase this innovative personal computer. Dell allows

customers to personalize the hardware and software of the netbook in order to answer to the

specific needs of each customer. They have listed, as shown in the SWOT, what a base model

entails. Then the person can build from that either adding more modem or creating the right PC

based on the needs of that individual (Dell Mini Netbooks, 2009).

While Internet shopping can often be overwhelming and lack of an actual salesperson can

leave customers feeling lost, Dell does some important things on their website that lends it to be

customer friendly. Dell encourages sales by having the two different versions of this computer

compared side-by-side to make the shopping experience easy. When a customer goes to the Dell

website they are greeted by an online rep that can answer any questions they might have. This is

an effective method for a person to be guided through placing an order. Some people have a

hard time and really do not understand computers, so having a representative ready to answer

those questions helps to build rapport.


Another helpful tactic Dell uses for Internet sales is keeping the website very simple.

Dell ensures that a person can navigate throughout the site with little problems. This benefits

with keeping the site from becoming confusing. Having a clear and concise set-up is important to

both the company and its potential customers.

Budget

The annual sales budget for Dell in fiscal year 2009 was 60 billion in sales which in turn

generated 61.1 billion in revenue (Dell, 2009). The Dell mini 10 and 10v netbook is only going

to be a portion of those sales. The company should plan for a 10% increase in revenue, which

means the planned sales for fiscal year 2010 must be projected 10% higher than the end earnings

for the 2009 fiscal year. Dell mini 10 and 10v netbooks generate one third of sales because they

are part of the Inspiron home office and consumer class products (Dell Mini Netbooks, 2009).

Appendix B shows the fiscal year 2010 quarterly goals. Quarter 1 planned sales budget is $55.5

million; 2nd quarter is $43.7 million; 3rd quarter is $48.3 million, and 4th quarter is $53.84

million. The total sales plan budget for fiscal year 2010 is $201.64 million.

Measurement Tools

In making Dell an excellent business, there are tools that help with increasing sales,

surveys and feedback from customers, assessing and managing the strategic plans of the business

through sales revenue. This may include excess training and even possible conference meetings

that can continue with having everyone understand the goals of the company as well as its sales

plans covered. There can also be a scale of a sale metric that can help with creating goals and

incentives.


Dell uses surveys and customer feedback that can help with ensuring that the right needs

are being met by the company. This feedback is to ensure that can future issues can create the

best customer service and give better results for future purchases.

Under assessing and managing helps with associating the people along with the sales in

order to help with current revenue growth. This means that Dell works to increase its revenue

through its sales. The best strategy for this business is having its workers understand the

technology and have the ability to pass it onto its customers. Using a sale metric can give results

of personnel’s enthusiasm and moral. Having expressive future abilities of its sales by

expectation of sales operations and get the tasks done efficiently will help as well.

Final Thoughts

Dell has continued to make innovations that meet the needs and expectations of the

thriving markets they do business with. The introduction of the Dell netbooks has proceeded

through to the growth stage. The current product has faced changes and modifications from the

original netbook to the current mini 10v model. The additional features have made it possible for

Dell to increase awareness of the product and gain a competitive advantage against competitors,

such as HP and Acer with differing features able with the different netbooks available on the

market (Liliputing, 2009). Phase one of the sales plan brings together the pre-planning

information regarding the company and the product. It covers in detail the internal and external

elements, such as the product life cycle, environmental scan, situational analysis and SWOT

analysis to ensure effective distribution of the Dell netbooks. The second phase of the sales plan

gets into the action part of the plan, covering information such as sales goals, the sales strategy

and CRM, tactics, budgets, and measurement tools.


References

CNN Money. (2009). Dell Profit. Retrieved from

http://money.cnn.com/2009/05/28/technology/dell/index.htm?postversion=2009052817

Copeland, M. (2009a). 4 Tech Trends to Watch. Fortune Magazine. Retrieved December 9, 2009

from http://money.cnn.com/2009/12/04/technology/tech_stocks.fortune/index.htm

Copeland, M. (2009b). The man behind the netbook craze. Fortune Brainstorm

Tech. Retrieved December 9, 2009 from

http://brainstormtech.blogs.fortune.cnn.com/2009/11/20/the-man-behind-the-netbook-

craze/

Dell. (2009a). Dell Globalizes Business Groups Around Major Customer Segments. Retrieved

December 19, 2009, from http://content.dell.com/us/en/corp/d/press-releases/2008-12-31-

00-global-business.aspx

Del.l (2009b). Fiscal Year 2009 in Review. Retrieved December 19, 2009 from

http://content.dell.com/us/en/corp/d/corp-comm/ir-fy09-in-review-charts.aspx

Dell. (2009c). Mini Netbooks. Retrieved December 9, 2009 from

http://www.dell.com/us/en/home/notebooks/laptop-inspiron-10/pd.aspx?refid=laptop-

inspiron-10&s=dhs&cs=19

Dell. (2009d). Inspiron Zino HD. Retrieved December 10, 2009 from

http://www.dell.com/us/en/corp/desktops/inspiron-zino-hd/pd.aspx?refid=inspiron-zino-

hd&s=corp


Gonsalves, A. (2009). Netbook Boom Likely to End with Better Economy. Information Week.

Retrieved December 12, 2009 from:

http://www.informationweek.com/news/hardware/desktop/showArticle.jhtml?articleID=2

17201079

Jobber, D., & Lancaster, G. (2003). Selling and sales management (7th ed.). Essex, England:

Financial Times Prentice Hall.

Johnston, M., & Marshall, G. (2009). Sales Force Management. Retrieved December 11, 2009

from https://ecampus.phoenix.edu/classroom/ic/classroom.aspx.

Liliputing (2009). Dell Inspiron Mini 10v. Retrieved December 12, 2009 from

http://www.liliputing.com/2009/09/dell-inspiron-mini-10v-review.html

NPD Group. (2009). DisplaySearch. Retrieved December 11, 2009 from

http://www.displaysearch.com/cps/rde/xchg/displaysearch/hs.xsl/090831_mini_note_pc_

netbook_shipments_grow_at_twice_rate_notebook_pcs_q2_09.asp

Ogg, E. (2009). Faltering economy boosting netbooks. CNN. Retrieved December 9, 2009 from

http://news.cnet.com/8301-17938_105-10209377-1.html

QuickMBA (2007). The Product Life Cycle. Retrieved December 13, 2009 from

http://www.quickmba.com/marketing/product/lifecycle/


Spiro, R. L., Rich, R. A., & Stanton, W. J. (2008). Management of a sales force (12th ed.). New

York: McGraw Hill.


Appendix A

Note. Adapted from "Mini-Note (Netbook) Shipments to Double Y/Y to More Than 30M Units

in 2009, While Notebook Shipments Flatten", by Anonymous, DisplaySearch.com.

www.displaysearch.com/cps/rde/xchg/displaysearch/hs.xsl/071309_mini_note_netbook_s

hipments_to_double_y_y_to_more_than_30m_units_in_2009.asp. Copyright 2007 - 2009

DisplaySearch - The Worldwide Leader in Display Market Research and Consulting.

Table 2: Notebook PC and Mini-Note ASP and Growth

Region Q2’08 Q1'09 Q2'09 Y/Y

Mini-Notes/Netbook PC $506 $373 $361 -29%

Notebook PCs $867 $775 $781 -10%

All Portable PCs $849 $704 $688 -19%

Note. Adapted from " Mini-Note PC (Netbook) Shipments Grow at Twice the Rate of Notebook

PCs in Q2’09", by Anonymous, DisplaySearch.com.

www.displaysearch.com/cps/rde/xchg/displaysearch/hs.xsl/090831_mini_note_pc_netbo

ok_shipments_grow_at_twice_rate_notebook_pcs_q2_09.asp. Copyright 2007 - 2009

DisplaySearch - The Worldwide Leader in Display Market Research and Consulting.

Chart One: Notebook and Mini-Note Share of Portable Computer

Shipments

Category Q2’08 Q1'09 Q2’09

Mini-Note 5.60% 17.80% 22.20%

Notebook PC 94.40% 82.20% 77.80%”


Appendix B

Sale and Profit Forecast per Billions

New and Repeated Customer per Thousand

0

2

4

6

8

10

12

14

1ST 2ND 3RD

SALES

PROFIT

0 50 100 150 200 250 300

1ST Qtr

2ND Qtr

3RD QTR

4th QTR

Repeat Customers

New Customers


Appendix C

Total

January

February

March

April 14.5

May 16.9

June 16.9

July 17.5

August 17.9

September 18.24

October

November

December

Total 48.3 201.64

Note:

53.84

FY2010 Q1 FY2010 Q2 FY2010 Q3 FY2010 Q4

Dell Mini 10 and 10v Netbook Sales Budget

Annual Sales Plan Budget (Millions)

Expected 10% revenue increase

14.3

14.1

15.3

16.5

19.3

19.7

55.5 43.7

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