Friday, November 28, 2008

DELL PLANS NEW STRATEGY TO WOO SMES

Anirvan Ghosh
The Economic Times (Bangalore edition)

Dell India is planning a new marketing strategy to complement its new push into SMB businesses. It is scouting for customers in smaller towns, and targeting simplification of business processes as the main area of growth as part of a new strategy for Indian emerging businesses. “We see emerging businesses across India as our main driver of growth,” says Saleh M Munshi, who heads the SMB business for Asia-Pacific South. As part of a new rollout plan, the company had tied up with Tally to offer accounting solutions online.

“This sector is not exposed to global shocks that much and is therefore a more stable market,” says Neeraj Gupta, general manager of Dell SMB India. The Tally subscription will be free on select Dell Vostro systems for the initial subscription period and the systems will be available only through Dell’s partner network and direct sales.

“We will work with Tally to develop more solutions for the emerging businesses,” says Gupta. Munshi says that the company finds that SMBs look first at the basic areas to improve cost efficiencies, then opt for better communication tools to do a better job of managing revenue streams, eventually progressing to CRM tools.

Dell’s new advertising campaign titled ‘Take Your Own Path’ was targeted at Indian SMBs and that it has been launched first in India. “In the entire region, this market is growing noticeably faster,” he says, explaining the new marketing strategy and the new range of laptops targeted at the sector.

The company grew around 48 percent in the third quarter, and its business with emerging companies has outstripped the market growth, one of the few regions in the world to deliver such growth for the company. The firm has doubled its SMB team in the last couple of quarters and now has 200 people, and support staff in addition to that, according to Munshi.

It has also expanded to over 600 cities, most of them tier-II and tier-III cities. “We are now planning to be more aggressive on smaller businesses,” he says, adding that he sees Indian emerging businesses growing faster than other countries. “When we went to the smaller towns, we saw a remarkable awareness about what they want in IT,” says Gupta, adding that they found firms of 10-20 people with global aspirations. That is what set them thinking of a new strategy for them, and a new approach, which partly resulted in partnering with Tally.

Gupta says that the approach is not guarded anymore. “We are going all out in our expansion into the interiors of the country,” he says. Dell is now planning to introduce Dell 360, which would be a portal where SMBs can learn how IT can work for them and also have a discussion forum dedicated to their needs.

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