Dell Inc. successfully wrote the book on selling personal computers direct to the public over the web because it built an online sales model and manufacturing supply chain few, if any, rivals could match. Now Dell, which ranks No. 2 in the Internet Retailer Top 400 Guide to Retail Web Sites, is applying more of the same e-commerce strategy that made it a category killer in the online personal computer and accessories space to its newest segment: home entertainment.
Last year Dell began adding new home entertainment products such as big-screen TVs and MP3 players to its e-commerce site. Dell next built very sophisticated interactive tools that allow shoppers to see big-screen TVs in 360-degree product views and compare different models in a side-by-side comparison.
Now the latest extension of Dell’s online home entertainment sales strategy is the introduction of new merchandise, including new lines of smaller plasma-screen TVs, and more sophisticated product tools that feature updated zoom-in tools. Dell has also reconstructed its product pages to include bigger images, more educational content that details the history and technical specifications of plasma TV technology and more lines of accessories such as home theater packages and video and audio cables.
“On the TV portal we provide rich and interactive content to overcome the touch and feel barrier,” says Michael Farello, Dell vice president, electronics and accessories. “We use interactive flash tools that give customers 360-degree views of the merchandise and package the product information and educational content in a way that makes it easier to complete an online purchase.”
In the last year, Dell has expanded its self-produced line of plasma screen TVs by introducing new screen sizes that range from 19 inches to 42 inches. The extended line of TVs, which Dell recently reduced in price by a range of 10% to 17%, are promoted in Dell’s search engine marketing programs and in Dell’s online product circulars which are e-mailed weekly to Dell’s opt-in e-mail lists. “An online circular is an excellent way to target customers with specific messages,” Farello says.
This fall Dell will introduce more games and gaming accessories to round out its home entertainment product line. Dell will also roll out new marketing programs that cross-sell extended warranties and other subscription-based service plans to customers purchasing merchandise from its personal computer and home entertainment product lines.
Giving customers more and diverse ways to shop online is paying off for Dell’s consumer line of business. Farello says that 80% of the company’s consumer customers use a product configuration tool on Dell.com to research their purchase of a new personal computer or laptop. 50% of all consumer customers also make their purchase directly online, he says.
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