Tags: Hardware Solutions, Technology Industry
By Anna Valmero
MAKATI CITY, METRO MANILA—The increasing ubiquity of social media and need for personal computers (PCs) with multimedia functionalities drive Dell’s renewed focus on a particular niche market – the household segment.
“We don’t expect the segment to triple our sales but we see potential in growing in the specific niche market for family consumers that require multimedia functionalities in their PCs,” said Alvin Patrick Go, brand manager of client product solutions at Dell Philippines.
Dell is the third largest PC manufacturer in terms of number of shipments in the recent third quarter–next to Lenovo by only a small percent and HP, according to a report by Gartner.
In the Philippines, Go said Dell will aggressively targeting family consumers who need “middle to high-end” powerful computers that cost above P30,000, a segment that he says offers little competition compared to lower-price models.
The new marketing direction is also hinged on Dell’s reimaging of the already popular commercial brand for home consumers.
“We are not going after the whole PC market share. We think focusing on mid- and high-end product offerings is the way to go for us instead of entering the already saturated lower-priced segment,” said Go.
The Philippines is categorized as a Tier 2 emerging market in Southeast Asia, similar to Vietnam and Thailand with similar demographics and PC buying behavior.
The growing use of social media networks such as Facebook and Twitter, wherein people post pictures and videos of vacations and other family occasions, required desktops and laptops with “muscle” to easily process photographs and videos, Go said.
The gigabytes of memory needed to store high-resolution digital images and videos also require PCs with high image editing power; hence, the computing muscle that was previously required at offices are now also needed in consumer homes, especially those with rich multimedia libraries.
Dell’s marketing strategy? Harping on it being a premium American brand made for higher-end clients, said Charlz Adano, marketing manager of Dell Philippines, adding that the Filipino consumer market is very fickle and apt to change rapidly.
At present, the consumer segment accounts for 30 percent of Dell’s PC shipments while commercial shipments account for a bulk of 70 percent.
Adano boasts that Dell’s total product sales has a very low “failure rate” of one percent so chances that consumers will only return the product for repair at their centers in Pasig and Libis in Quezon City “are very slim.”
Dell also capitalizes on the changing perspective of consumers on the desktop computer as more than a “white box”, he said.
To enable differentiation in the market, Dell bundled additional capabilities on its new desktop offerings such as full 1080p touchscreen display, free touch-based image editing software, and a TV tuner, among other entertainment capabilities. This is present in the Inspiron One 2320 family desktop and XPS 8300 desktop.
To raise its consumer appeal, Dell also focused on engineering a sleek design with magnesium finish for its laptops and computers to better reflect the personality and identity of users such as the XPS 15z, dubbed as one of the thinnest PCs released to date.
The Inspiron One 2320 family desktop includes second-generation Intel Core i3 processor and graphics, 1080p touchscreen display, HDMI connection and built-in TV tuner, 4gigabyte DDR3 memory, high-definition web camera, 500 gigabytes of storage, and wireless keyboard and mouse.
The XPS 8300 desktop is made for media artists, hardcore gamers and movie fans with its second-generation Intel Core i7 processors, 1gigbyte GDDR5 AMD Radeon HD 6770, USB 3.0 support, 12gigabyte DDR3 1333MHz dual-channel memory capacity and up to one terabyte of storage.
The XPS 15z laptop is one of Dell’s thinnest PCs at only 24.68mm, equipped with a 15.6-in WLED display with full HD option, NVIDIA GeForce GT525M with 1gigabyte or 2GB of graphics memory, 4GB up to 8GB DDR3 1333MHz memory, and backlit Chiclet-style keyboard.
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