DELL Direct Sales: Diversified Marketing Mode

DELL, which is famous internationally. brand At that time, many Chinese and foreign marketing personages thought that high mountains and high mountains Marketing The pioneering and innovative warrior is now losing his glittering light in the global competition for competition because of his ingenuity in the direct selling mode. The vast sea, the surging waves, the ups and downs, the ups and downs of DELL for China's small and medium-sized brands, in the choice and adhere to their own marketing mode of operation, should be worth pondering carefully, and draw lessons from it.

Singing all the way to DELL Direct selling contribution cannot be left unrecognized

A few years ago, with the increasing number of computer brands, many consumers who wanted to buy computers needed someone to help them choose from the dazzling computers. In order to meet the needs of this part of the consumer group, DELL had abandoned the traditional distribution system instead of the telephone ordering and sales in direct selling.

When DELL entered the personal computer industry, many industry companies were making a difficult and tortuous transformation from the small franchised stores to the large retail chains. Just as its competitors struggled in the process of changing to the retail channel, DELL developed its own way and found another way to help consumers and jump over the dealer or distributor network to sell personal computers. DELL has replaced the traditional distribution channels by creating a new channel through its use of communication technology. The DELL model was later successfully replicated in other industries, such as the Korean Daewoo Group Company, which also abandoned the traditional automobile dealer network and turned to the direct selling mode.

Direct sale, also known as no shop sales. It generally refers to such a marketing mode: the product ownership is transferred directly from the producer to the user or its ultimate consumer, and saves many interest segments in traditional marketing channels. In essence, it simplifies or even eliminates intermediaries, so as to reduce the circulation cost of products and satisfy the customers' interests (especially prices) to maximize demand. On the contrary, in the non direct marketing mode, there are two sales teams in the activity, that is, manufacturers to distributors, and then distributors to customers. The increase of links not only lengthed the time of transfer of commodity ownership, increased the cost of commodity transfer, but also increased more interest dividers.

In China, direct selling is defined in this way: manufacturers communicate directly with the real target customers on the basis of certain demands of the target public, so as to achieve the marketing activities of selling goods. Therefore, there are 3 essential elements in direct selling: the support of public consumption consciousness; the establishment and formation of one to one relationship; the on-the-spot display and the focus promotion.

Direct selling, because producers directly face customers, reduces the storage area and eliminates bad debts, and does not have the additional cost of distributors and corresponding inventory. Therefore, it can protect the interests of companies and customers and speed up their growth.

In order to conduct direct selling, DELL is usually the first to thoroughly study customer needs, rather than competitors, to penetrate the market by segmenting the market and providing heterogeneous products. Secondly, it also tries to increase the contact of direct selling and maintain interaction with customers, such as online direct selling, e-commerce, DIY order acceptance, telephone direct selling, etc. Once again, it has a scientific management method of direct selling team to ensure its efficient sales team operation. Unlike Amway Corp's (Amway) store + sales representative direct selling mode, DELL uses DELL (Dell) direct selling. The core element of Amway type direct selling is to improve customer satisfaction and staff satisfaction. DELL style must satisfy the heterogeneity of customer demand by continuously developing new products.

The key point of DELL's direct selling mode is to emphasize the difference of consumer demand. It is the fashion style that captures individuality consumption. DELL has been leading the way in China for several years. Its business has gone all the way, and the computers sold have always been the top of the list. DELL has also become a well-known computer brand in China. People believe that DELL's marketing mode can bring benefits to them, and also believe DELL's outstanding brand performance.

DELL's direct selling is facing cold snap.

However, as any product has its market life, the direct selling mode also has its largest market deadline. The decisive factor is the expectation of consumers in the prevailing fashion of upholding and changing. A marketing mode moves from the consumer group to the consumer group, and then develops and expands to maximize its profit. Then it will automatically turn to the recession, and the profits it will bring to the company or brand will gradually decrease until it finally loses money.

By the second half of 2005, the growth rate of DELL PC sales in China began to reverse. In the same year, IDC, the international market research firm, released the PC sales data in the third quarter of the Chinese market, showing that DELL's market share was 8.2%, lower than the 9.6% in the second quarter. In addition, according to the international data provided, in the desktop market, DELL China's market share in the third quarter was 7.5%, less than 8.1% in the second quarter. In the notebook market, DELL China's market share in the third quarter was 12.4%, lower than 14.3% in the second quarter. This kind of situation makes the industry people look down on the earth.

In contrast with DELL, the market growth rate of several computer manufacturers in China increased in the third quarter. According to IDC data, the PC sales in the Chinese market increased by 21% in the third quarter, of which Lenovo's market share in the third quarter was 34.5%, slightly higher than that in the second quarter of this year. The market share in the third quarter was 12.7%, higher than that in the second quarter. The market share of HP's third quarter was third, slightly higher than that of the previous quarter. The rising of these rising stars is not only their full development of commodities that can meet the needs of the market as much as possible, but also enjoy the greatest benefits in the share cutting of the computer market, and more importantly, they provide customers with a follow-up service that DELL direct selling mode can not provide at all. It is this follow-up service's strong follow-up that makes its customer base rapidly increase.

Contrary to the situation, unfortunately, the computer giant DELL has been unfortunate. Since 2005, DELL's sales in China have been frequently complained by customers everywhere, while DELL China has responded coldly to customer complaints. DELL's direct selling mode has been questioned by many people about its lack of quality after-sales service. In April of the same year, the US BusinessWeek also bombed DELL's direct selling mode, pointing to DELL's lack of software and services. And insiders believe that the main reason for the decline of DELL's market share is that its direct selling mode is weak in the emerging markets such as the four or five tier cities and small and medium-sized enterprises, that is, the lack of development.

On the other hand, Lenovo's rapid growth in market share after acquiring PC Department of IBM has also caused great impact on DELL China. In October 25, 2005, DELL China's president, China's top runner up, suddenly announced its departure. Some people in the industry speculated that it might be because the poor sales performance of DELL in the third quarter of this year brought it to a close.

In September 2005, DELL China also patted its chest in an interview with reporters, insisting that it would adhere to the direct selling mode in China. How long can DELL keep its direct selling mode in China? There are so many computer manufacturers in the past. Computers are undoubtedly a high-end product. Today, however, apart from several famous international companies, the production of computers has been able to assemble their own computers in almost large and small workshops. Computers have long been a popular commodity, and consumers' choices are naturally different from those of that year. When a once brilliant marketing mode is gradually abandoned by consumers in the market, if we do not try to find change, it will be self defeating. Where is the way of DELL direct sales?

Another way to find a way to diversify marketing mode is favored.

In April 27, 2007, DELL CEO Michael Dale said that in order to get the DELL brand out of the current downturn and stimulate the growth of the company's business, the company should consider other business models besides direct selling.

This is a very clear signal to convey: DELL direct sales, the once powerful marketing tool, although it is in the prime of life, it has reached the age of treasure knife. If it does not seek reform, it will become a bright DELL direct sales mode. It will undoubtedly bring the disaster to the internationally renowned DELL empire.

No wonder Michael said in his email to his employees: "direct selling is an innovative mode, but not faith. We need to streamline business models and meet other needs through other means other than direct sales. " This gives a very confusing message: the journey of direct selling mode will be ended in DELL Wang Guo Zhen?

Michael said, "this is the most exciting stage in the history of the company, but it requires all our members to unite." Because we have to carry out a far-reaching reform, which was made after careful consideration.