INDEPENDENT UNIVERSITY, BANGLADESH

Course Title: DISTRIBUTION MANAGEMENT

Course Code: MKT380
Section: 01
Group Name: TEAM ELITE
Semester: SPRING 2023
Submission Date: 16-03-2023
Submitted to: Mr. Suman Porsad Saha
SUBMISSION OF CASE STUDY OF DELL’S DISTRIBUTION
MANAGEMENT8+
+6+++9
SUBMITTED BY
Name ID
Faiyaz Bhuiyan Fahim 1831094
Md Tusher khan 1810908
Fahim Iftekher Efty 1930929
Md.Yeasin Rahman 1820520
Fahad Hossain 1810602
Md.Ariful Haque 1822270
Q1. Discuss the key success factors for Dell’s distribution system all
over the world.

The success of Dell has been significantly influenced by its distribution strategy. Some of the
main success elements for Dell's distribution system are listed below: its
1. Direct sales model: By cutting out the middleman, Dell was able to offer more
specialized items at a lower price while also collecting useful consumer data that aided in
forecasting and segmentation.
2. Online sales platform: By utilizing the internet for sales early on, Dell was able to
expand its customer base and offer them technical help and real-time order status updates.
Along with helping with product development and demand forecasts, this produced
useful market data.
3. Virtual integration: With the help of its virtual integration strategy, Dell was able to
forge long-term partnerships with a few name-brand component suppliers and compel
them to set up inventory hubs right next to its own manufacturing facilities. In
comparison to the conventional stored-inventory strategy, this allowed Dell to
communicate with suppliers in real time, cut inventory costs, and shorten lead times.
4. Manufacturing innovation: The introduction of "manufacturing cells" by Dell resulted
in a 75% reduction in assembly times, a doubled manufacturing productivity per square
foot of assembly space, and the ability to make more customized goods more quickly.
5. Close supplier ties: Dell's strategic partnerships with supplier partners enabled the
company to benefit from vertical integration without having to spend billions on
establishing its own in-house manufacturing processes. Due to this, Dell was able to
concentrate on its core business and rely on its suppliers for the rest.

By eliminating the traditional retail middleman, Dell's distribution approach includes

direct selling to customers through mail-order and online sales channels. Due to the cost-
savings associated with eliminating the retail middleman, Dell was able to significantly
increase margins by giving improved customer choice in system configuration at a steep
discount. This departure from the conventional PC distribution approach contributed
significantly to Dell's impressive early development. Additionally, Dell was able to
effectively estimate demand trends and implement segmentation plans thanks to the
online sales platform, which produced a lot of market data. Dell was able to make money
off of knowledge about the value drivers in each of its important client categories thanks
to the data that drove the company's product development activities. In general, Dell's
direct distribution method had a significant role in the development of the business.
 Ultimately, Dell's success can be ascribed to its creative distribution strategy, which
enabled the business to provide customized items at a reduced cost while simultaneously
obtaining useful customer information and optimizing its supply chain.

Done by - Md.Tusher Khan (1810908)

Q2. What kind of distribution coverage strategy is the best fit for Dell if
they want to start their operation in Bangladesh? Justify your answer.

Dell is an international technological well-known company across the world that designs,
develops, and sells laptop hardware, software, and related services. The employer has a robust
distribution community in most parts of the world; however, it has a confined presence in
Bangladesh. Therefore, the company desires to undertake a distribution insurance approach that
fits the local market and allows it to reach its goal customers effectively. After analyzing the
market and the opposition in Bangladesh, the endorsed distribution coverage method for Dell is
to set up a multi-channel distribution network that includes both direct and indirect channels.
This method will allow the company to leverage the strengths of both channels and attain
customers in all components of the country.

Direct Distribution Channel:

The direct distribution channel includes promoting merchandise without delay to clients through
Dell's very own shops or online platforms. This channel will enable Dell to attain clients who
pick to purchase merchandise from a relied-on manufacturer directly. Dell can establish physical
stores in principal cities of Bangladesh such as Dhaka, Chittagong, and Khulna. The shops can
display Dell's merchandise and provide customers with a hands-on trip before making a buying
decision. Dell can additionally offer after-sales offerings and technical guides to customers
through its bodily stores.
In addition to the official showroom or shop Dell can also set up an online platform for direct
sales. This will allow the company to attain customers in far-off areas where official stores are no
longer available. The online platform can be an internet site or a cell software that permits clients
to browse via products, area orders, and make payments online. Dell can companion with nearby
logistics agencies to make certain well-timed shipping of merchandise to customers' doorsteps.

Indirect Distribution Channel:

The indirect distribution channel entails selling products thru intermediaries such as wholesalers,
retailers, and dealers. This channel will allow Dell to attain clients in all components of the USA
via a community of trusted intermediaries. Dell can companion with nearby distributors who
have a sturdy presence in the market and can help the organization reach clients in faraway areas.
Dell can set up a tiered distribution network that consists of grasp distributors, sub-distributors,
and retailers. The grasp distributors will be accountable for distributing Dell's products to sub-
distributors, who in turn will promote the products to retailers. The outlets will then promote the
merchandise to end customers. This distribution network will make certain that Dell's products
attain customers in all parts of the country.
To make sure the success of the multi-channel distribution network, Dell desires to invest in
coaching and support for its channel partners. Dell can behavior coaching programs for its
partners to educate them about Dell's merchandise and services. The coaching applications can
cover topics such as product features, pricing, and after-sales services. Dell can additionally
grant advertising and promotional assistance to its companions to assist them make bigger sales.
In conclusion, a multi-channel distribution community that includes both direct and indirect
channels is the encouraged distribution coverage strategy for Dell in Bangladesh. This strategy
will enable Dell to reach customers in all components of the u. s. and leverage the strengths of
each channel. However, to make sure the success of the strategy, Dell needs to make investments
in education and assist its channel partners and provide after-sales offerings and technical
support to customers.
Done by - Fahim Iftekher Efty (1930929)

Q3. On which aspect Dell should collect information about their

competitors in Bangladesh
and how would Dell collect information? Explain.

Dell should collect information about its competitors in Bangladesh on various aspects related to
the IT industry and distribution channels. Here are some key aspects that Dell should focus on:
Product range: Dell should gather information about the product range offered by its
competitors in Bangladesh. This could include information on their product lines, features, and
pricing.
Distribution channels: Dell should collect information about the distribution channels used by
its competitors in Bangladesh. This could include information on their retail stores, e-commerce
platforms, and distribution partners.
Marketing strategies: Dell should gather information about the marketing strategies used by its
competitors in Bangladesh. This could include information on their advertising campaigns,
promotions, and social media presence.
Customer service: Dell should collect information about the customer service provided by its
competitors in Bangladesh. This could include information on their support channels, response
time, and customer feedback.
Pricing strategies: Dell should gather information about the pricing strategies used by its
competitors in Bangladesh. This could include information on their pricing models, discounts,
and bundling options.
Industry trends: Dell should stay informed about the latest trends and developments in the IT
industry in Bangladesh. This could include information on emerging technologies, regulatory
changes, and consumer behavior.
By gathering information on these aspects, Dell can gain insights into the strategies used by its
competitors and identify areas where it can improve its own operations in Bangladesh.

Dell can use a combination of inside, outside, and public information to collect information
about their competitors in Bangladesh regarding distribution and marketing strategy. Here's how
they could do it,
Inside information: Dell can collect inside information by hiring industry experts who have
worked for their competitors in the past, conducting surveys of customers, suppliers, and partners
of their competitors to gather insights into their distribution channels, and attending industry
events and conferences where competitors may share information about their distribution
channels.
Hire industry experts: Dell could hire individuals who have worked for their competitors in the
past, as they may have insights into their distribution channels. However, Dell should ensure that
these individuals are not bound by any non-disclosure agreements or other contractual
obligations that prevent them from sharing sensitive information.
Conduct surveys: Dell could conduct surveys of customers, suppliers, and partners of their
competitors to gather insights into their distribution channels. However, the survey should be
designed in a way that does not violate privacy laws or infringe on any proprietary information.
Attend industry events: Dell could attend industry events and conferences where competitors
may share information about their distribution channels. However, Dell should be cautious about
any discussions or activities that could be considered anti-competitive.
Networking: Dell could attend industry events and conferences in Bangladesh to network with
other industry professionals and gain insights into their competitors' distribution channels.
Outside information: Dell can collect outside information by subscribing to trade publications
that cover the IT industry and distribution channels, consulting industry experts who specialize in
the IT industry and distribution channels, monitoring competitors' social media channels, and
analyzing online reviews of competitors to gain insights into their distribution strategies.
Market research firms: Dell could hire market research firms in Bangladesh to gather data on
their competitors' distribution channels. These firms specialize in collecting data on market
trends, consumer behavior, and competitor analysis.
Trade publications: Dell could subscribe to trade publications in Bangladesh that cover the IT
industry and distribution channels. These publications often provide valuable insights into the
latest trends, developments, and strategies used by competitors.
Government agencies: Dell could gather information from government agencies in Bangladesh
that regulate the IT industry and distribution channels. These agencies often have access to
market data and information on competitors

Public information: Dell can collect public information by analyzing financial reports, press
releases, and marketing materials from their competitors. This can provide valuable insights into
their distribution channels, such as their product pages, checkout processes, and shipping options
Analyze public information: Dell could analyze public information, such as financial reports,
press releases, and marketing materials, to gather insights into their competitors' distribution
channels. However, they should be careful not to infringe on any trade secrets or confidential
information.
Online sources: Dell could conduct online research to gather information on their competitors'
distribution channels. This could include analyzing their competitors' websites, social media
channels, and online reviews to gain insights into their distribution strategies.
Competitor websites: Dell could analyze its competitors' websites to gain insights into their
distribution strategies. This could include analyzing their product pages, checkout processes, and
shipping options.
Social media: Dell could monitor its competitors' social media channels to gain insights into their
distribution strategies. This could include analyzing their posts, comments, and engagement with
customers.
Online reviews: Dell could analyze online reviews of its competitors to gain insights into their
distribution strategies. This could include analyzing reviews of their products, customer service,
and shipping options.
By using a combination of inside, outside, and public information, Dell can gain a
comprehensive understanding of their competitors' distribution strategies in Bangladesh. This
can help Dell make informed decisions about their own distribution channels and identify areas
where it can improve its operations to better compete in the market.
Done by – Faiyaz Bhuiyan Fahim (1831094) & Md.Ariful Haque (1822270)

Q4. Selection criteria Dell might use for distributors in Bangladesh?

Explain them.

Experience of distributors: With a longer operational history and more relevant industry
experience, Dell could favor Bangladeshi distributors over others. This may be a sign of their
knowledge of the regional market, the routes of distribution, and client preferences, which might
make operations run more smoothly and increase market penetration.
The reputation of distributors: Dell could take into account the standing of distributors in
Bangladesh, as well as comments from clients and other manufacturers they have collaborated
with. A good reputation may suggest dependability, professionalism, and just a dedication to
client pleasure, all of which are consistent with Dell's customer-centric philosophy.
Background of key executives of the distributors: Dell may evaluate the background and
expertise of key executives of the distributors in Bangladesh. This may include their industry
experience, leadership skills, and knowledge of the technology market, as they play a critical role
in managing the distributorship and driving business growth.
Financial strength: Dell may assess the qualifications and experience of distributors in
Bangladesh. As they play a crucial part in managing the distributorship and propelling business
growth, this may include their professional expertise in the sector, leadership abilities, and
understanding of the technological market.
Sales revenue performance: In order to examine the sales success and capabilities to sell
related items, Dell may review the sales performance of distributors in Bangladesh. This may be
a sign of their sales prowess and ability to boost Dell's local product sales.
Branch location: In order to achieve effective market penetration and close proximity to the
target audience, Dell may take into account where the distributor's branches are located in
Bangladesh. This may make on-time delivery, after-sales support, and general client happiness
easier.
Territory coverage: To make sure they have a strong presence and a broad reach throughout
Bangladesh, Dell may evaluate the geographical coverage of its distributors. Dell could be able
to reach more consumers and increase its market share in various parts of Bangladesh as a result.
Product variable technical expertise: To make sure that distributors in Bangladesh have the
knowledge and abilities to handle Dell's goods, Dell may assess their technical proficiency. This
could include their knowledge of Dell's products' technical requirements, features, and functions,
which is necessary for giving customers appropriate pre-sales and after-sales assistance.
Repair and customer service: The Bangladeshi distributors' capacities for customer support and
repairs may be taken into account by Dell. In order to ensure client happiness and loyalty, this
may include their capacity to offer prompt and dependable product repairs, the availability of
replacement components, and general customer service.
Local market knowledge: Distributors in Bangladesh who have a thorough awareness of the
regional market, including consumer preferences, cultural quirks, and market trends, may be
valued by Dell. In order to successfully serve the local market, Dell may need to modify its
marketing plans, product lineup, and business model.
Types of market coverage: Dell may evaluate the distribution channels that distributors in
Bangladesh provide, like horizontal (B2C) or vertical (B2B) market sectors. It might be in line
with Dell's go-to-market strategy and target client categories, ensuring that the distributor's
market coverage is in line with Dell's corporate goals.
Sales competency: Dell has the right to assess the sales process of distributors operating in
Bangladesh, including their resources, strategy, and sales capacities. This might include things
like the skill of the sales force, marketing activities, and sales performance, all of which could
affect Dell's sales growth in the regional market.
Done by - Fahad Hossain (1810602)

5. Explain the incentives Dell might offer to their distribution channel.

Discounts: Dell can give discounts to their distributors for achieving sales targets. So that the
distributors will be very happy to receive the discounts from Dell.
Motivates Channel Members And, Customers to Sign into Websites: Websites can give them
proper details about products. Distributors and customers can order products through the website.
This process is very easy. Dell might give this offer to their distribution channel.
Quality Products: In an effort to make each model smooth and better than the one before it,
Dell continuously innovates their products. In order to increase performance, they upgrade their
software and specifications. This shows that the manufacturer offers high-quality goods to the
distributor. So that they can sell their products easily.
Reward Activity and Campaigns: Dell might offer rewards and campaigns to their distribution
channel. Rewarded ad campaigns can be a terrific method to boost user engagement, but must
have to use them properly. Rewarded programs have several advantages.
Free product literature: Dell might provide product literature. Dell may provide this benefit to
the distributor at no cost. The distributors have the opportunity to instruct their end customers
about the products.
Price protection: Dell can offer this incentive to their distribution channel. If there is a decrease
in price, the distributor will receive credit for the rest of the money in their account.
Price Policy: Distributors will receive an honorarium if they pay the manufacturer in full and
promptly for all purchases made through them. These incentives Dell might offer to their
distribution channel.
Done by - Md.Yeasin Rahman (1820520)