XPS GTM Plan North America Jessy Cheng Executive Summary Target Customer 2 • Gen Y age 25-34 is the core customer that buys premium notebooks $800+ • Although Apple is a dominate player, opportunity still exists Positioning • Focus on the pain points of MS Excel and other Mac weaknesses • Thin, Long Battery Life and Screen Quality Promotion • Create campaigns that follow customer purchase journey • Online and mobile media channels Placement • Leverage Gen Y online shopping preferences and focus on internet distributions Dell - Restricted - Confidential Meet XPS 13 3 Dell - Restricted - Confidential Agenda Target Customer Positioning Promotion Placement 4 Dell - Restricted - Confidential Understanding Premium NB’s Core Customer What is XPS 13? $800+ Premium NB(Ultrabook), high performance, design, long battery life Who buys premium NB and values performance, design and batter life? Age group 25~34 according to latest Dell research Who are people age 25-34? GEN-Y aka Millennials. 5 Dell - Restricted - Confidential “US Retail Segmentation: Gen Y Online Shoppers”, Forrester research(5/2014) Who are Gen-Y? • Generation Y includes any individual between the ages of 25 and 33 • Gen Yers are the first generation of digital natives, having been preteens when the Internet boom happened in the early to mid-90s. Gen Yers spend $411 more online than the average US online adult per year 6 Dell - Restricted - Confidential “US Retail Segmentation: Gen Y Online Shoppers”, Forrester research(5/2014) They are also more likely than the average US online adult to have two or more web-enabled devices and spend 153 more hours per year online. Meet Michael – a typical Gen-Y Sex: Male Age: 31 Marital Status: Married without children Education: Graduate Level Income level: $75K+ Current Computer: Macbook Pro 15” bought for $1500 in 2010 Activities on the computer: Communication: Email, Skype Web Surfing: Amazon, Sports Blogs, Tech Blogs, Youtube, Reddit Entertainment: Simple games(Pinball), Media Streaming(Netflix, HBOgO) Why Apple: great screen, touch pad, attention to detail (magnetic battery connector and light up keyboard) Pain points: Does not offer a great office experience. Had to install windows 7 on boot camp which strained the performance of the overall system Insights: While Michael does not do anything on his computer that required heavy processing power, he still bought premium notebook, highlighting that the notion of premium to consumer does not directly correlate with high processing power 7 Dell - Restricted - Confidential Take a guess who Lenovo’s targeting with this AD? 8 Dell - Restricted - Confidential Agenda Target Customer Positioning Promotion Placement 9 Dell - Restricted - Confidential Not everyone’s an APPLE fanatics. There’s a need for a good windows based computer. If we focus on pain points we can win market share Why would Gen Y purchase an XPS VS Apple? Let’s do some REAL work Because users need Excel or want a Windows computer for compatibility to other software (work/school environment doesn’t support Mac) Why purchase an XPS VS Lenovo Yoga? Because XPS offers better price for a better product. 10 Dell - Restricted - Confidential At Ultra Low Price A winning product needs laser focused messaging By the time consumer starts shopping, they already know if they want mac or PC. So Dell should focus on differentiating amongst PC manufactures. Lenovo is the biggest competitor. Positioning Statement: For Windows Excel Users who appreciate design, XPS XPS 13 is the thinnest ultra book that offers exceptional battery life and Infinity HD screen*. What about performance? Performance is not a real differentiator amongst top competitors, all players have the same Intel processor and RAM. Every competitor talks about performance, so better leave it out and not dilute the message *It’s not 4k, it’s better than 4k HD and since our rim is so thin, it’s like an infinity screen like the infinity pools. 11 Dell - Restricted - Confidential Agenda Target Customer Positioning Promotion Placement 12 Dell - Restricted - Confidential Understanding Gen-Y’s shopping journey helps us better target them 13 Dell - Restricted - Confidential “US Retail Segmentation: Gen Y Online Shoppers”, Forrester research(5/2014) A campaign trailing customer journey will pave the way for success Campaign Code Description Media Channel Early Discover Build early awareness. Use digital Impression to elicit consumer curiosity prior to CES. Create hype around the product so that XPS could get more media coverage on CES. This is targeted to early adopters Tech centric website(Engadget, Tech Crunch) and Mobile ads Explore Identify key influencers to use and talk about XPS. This could be your key tech bloggers, Elon Musk, Jon Stewart, Michael and even DELL employees. Seed free XPS Main Stream Engage 14 Social(Facebook/Twitter/GOOGLE+), Digital impressions(Huffington Post, BuzzFeed) and SEO, Mobile impression and SEO, Youtube, Traditional ad campaign that talks about the product Hulu (certain TV Shows such as Colbert value proposition in picture and video formats. Report, Daily Show that has a large audience of young people). Be sure to focus on mobile SEO as this is often missed. Create environment for late adopters to see , feel and use XPS to fully convince them to buy Dell - Restricted - Confidential Kiosk type, local On-Site Early Discover – Example • • Remove logo to elicit unbiased interest No follow up link to Dell or product site to garnish additional curiosity Thinnest computer ever made? 01.06.2015 15 Dell - Restricted - Confidential Explore - Example • Generate as many reviews as possible • Set up metrics to measure how influential someone is • Allocate monthly giveaway quantities XPS offers sleek design, exception batter life and ultra HD screen resolution earning a 9.2 score and editor’s choice in this week’s notebook reviews 16 Dell - Restricted - Confidential Main Stream – Example Target Gen-Y at their key locations and focus on value proposition XPS 9+ hours of battery life Unlimited entertainment 17 Dell - Restricted - Confidential XPS X 118 Pixels per inch? Not so “flabby” after all X Main Stream – Example XPS 18 Dell - Restricted - Confidential In need of bragging rights? We hear ya. Engage – Example Full on experience Set up tents/booths in popular outdoor events such as X games to let people charge their phones while having XPS around to let people use. XPS Free Battery Charge Station 19 Dell - Restricted - Confidential Timing is everything Dino Unveils at CES 2014 Purpose Campaign Code Nov Dec Early Discover Build Product Awareness Explore Main Stream Generate Product Experience Engage Jan Dino goes on Sale 2015 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec But Cost is equally important Campaign Assumptions 600K Average Viewers on TechCrunch, 5 similar tech site, $3 per Early Discover targeted 1000 impression, running for 2 months. Explore 15 free Dinos/month to key influencers, 6 month run, $800 per dino Main Stream 32mil Gen Y, $3 per 1000 impressions, 2 repeats, split into 7 months $3000 avg per booth rental for 2nd tier events, 10XPs on site, 1 Engage generator, 4 sales rep, setup etc, 2 events per months Total GTM Cost 20 ** Cost estimated for NA only Dell - Restricted - Confidential Cost $20,000 $72,000 $250,000 $150,000 $492,000 Agenda Target Customer Positioning Promotion Placement 21 Dell - Restricted - Confidential Understanding Gen-Y shopping habits and channels helps us target specific channels Recommendation 22 Dell - Restricted - Confidential “US Retail Segmentation: Gen Y Online Shoppers”, Forrester research(5/2014) • Amazon – largest online retailer, presence needed with “minimum” pricing clause. • BestBuy – Shelf space is tight but not for online. Focus on driving web deals. • Dell – Simplify shopping journey, create XPS only site to restrict purchasing dilution to Inspiron/Precision. Summary 1. Focus on Gen-Y, they are the biggest buyers of premium notebook 2. Don’t compete with Apple, compete with Lenovo 3. Be selective in your messaging, focus only on a few product attributes 4. Push online advertisement, it’s cheap and effective on Gen-Y 5. Align your distribution channels so Gen-Y could buy easily If Dell does all of the above correctly, then: 23 Dell - Restricted - Confidential