Zoja Micunovic A4021609 MSc Marketing Intake 5
1. Introduction 1
The purpose of this report is to research and evaluate the UK consumer in order to launch an innovative ‘Kinotop’ laptop computer which would expand Dell’s target B2C group and also market share in the UK and establish ‘Dell Kinotop’ as a new ‘must have’ item amongst professionals between the ages of 35-50 which self recharges by kinetic energy. The target audience is classified as ‘power energy users’ and are mostly involved in engineering and graphic design orientated professions rather than ‘mainstream business users’. ‘The more you use it – the more you save.’
Worldwide retail market for laptops remains extremely competitive as fast product development and very intense competition at all levels continues to broaden costumers’ choice and drive prices down. With London Stock Exchange being one of the oldest and fourth largest worlds, the UK market is not an exception. The UK is a leading trading power and financial centre and one of the quintets of trillion dollar economies of Western Europe (CIA).
Latest census states that total UK population is estimated to be 62.2 million people, with 67.1 % of population falling between the age of 15-64 and median age 38.6 years for males and 40.9 years for females. The majority of British population falls into Dell ‘Kinotop’ target audience. In terms of sex ration for particular age group, it is estimated to be 1.03 male(s) to female and makes male population the majority in the country according to Central Intelligence Agency Fact Book.
Dell: Overview of the company
Dell, a multinational American company, is one of the world’s leading PC manufacturers, recently positioned on the second place after fellow American competitor Hewlett-Packard (HP). According to figures from iSuppli market research, worldwide PC shipments totalled 88.1 million units during the first quarter of 2009 .PC shipments in the UK totalled 2.9 million units in the second quarter of 2010, and has been showing growth of 15.1% since.
European PC market has experienced a major slowdown in 2009 due to the general economic situation, which particularly affected Western European countries with shipments 2
20% lower than expected. Today, Dell is focused on getting out of the recession by bringing out a new generation technology. As a part of this, ‘Kinotop’ – a kinetic energy self charging laptop aimed at professionals aged 35-50 in the UK is being launched into the market. ‘Kinotop’ is the result of the latest market research and has been specially designed for the purpose of energy saving power for environmentally conscious working adults, being both environmentally friendly and energy budget saving.
Consumer PC development and manufacturing is one of the fastest growing and innovative global industries. In 2006 the UK market has been valued of total £953 million. According to Government Statistics (www.statistcis.gov.uk) , 56% of households in the UK had a desktop computer, and 30% had a portable computer in 2006 and this figure has grown year by year. Today, laptops are still the largest segment of the consumer laptop and PDA market although challenged by PDA phones, ‘on- the-go’ computing devices. Following current social and economic trends, ‘Kinotop’ laptop is to raise product brand awareness amongst the target group – middle-income professionals and high-income professionals who have been affected by recent economic downfall. Research conducted by Ernst & Young has shown that UK consumer spending power has drastically decreased by 15% due to a large rise in the cost of living in the past five years and that monthly discretionary income for a typical household was now £772.79 - compared with £909.84 in 2003/04. The Annual Discretionary Study shows that a typical British family had less than 20% of...