Dell says its online strategy will win at consumer electronics
Just as he proved that his Dell Inc. could lead personal computer sales by focusing on a direct-to-consumer strategy with a cutting-edge web site, founder and CEO Michael Dell now says he’ll do the same with consumer electronics and a site redesigned to lure consumers. "Consumers want something they’re not getting: the Dell value in a broader range of products," he said today in a conference call with reporters. "By introducing high-performing consumer electronics products that closely integrate with the computer, we are delivering what is most important to consumers – content and experience – at a better value than they’re currently getting."
To help drive its consumer electronics business, the company is planning to re-launch its site next month under a re-design that will emphasize digital entertainment products. The centerpiece is a new multi-function computer monitor that will also serve as a liquid crystal display television screen for displaying videos. "This is at the heart of our strategy of turning the PC into the digital hub of home entertainment," Dell said. "Customers will be blown away when they see how easy it is to make a slide show of the vacation with background music."
The redesigned site will include a new digital music section that will let shoppers download music as well as order a digital media player. The site will also offer improved navigation and enhanced imagery, the company says. Dell will introduce more consumer electronics products in the fourth quarter.
The company also said it will moderately increase its use of kiosks in shopping malls and other public places, where consumers can view Dell laptops and other products, get advice from a Dell representative, and place an online order for home delivery. "The kiosk has been a great way to interact with these products," said Mike George, chief marketing officer.
George added that Dell will continue to use a wide range of online advertising vehicles to promote its new consumer market, including affiliate programs, banner ads and Internet search programs. "Our online advertising has been successful," George said.
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