DELL ANNOUNCES NEW PRODUCTS, NOVEL MARKETING STRATEGY
AUSTIN, TEXAS, Aug. 2 /PRNewswire/ -- Dell Computer Corporation (NASDAQ-NMS: DELL) today announced a series of desktop PC systems, services and support programs based on the computer industry's most sophisticated customer segmentation strategy. The announcement today is a pronounced departure from traditional computer industry segmentation strategies based on price, distribution or type of customer business. Using the theme of "PCs for People", the new products will be unveiled at a company-wide celebration being held here this evening. "The old categories that computer companies have used -- home versus business, large versus small, low-priced versus high-performance -- no longer suffice," said Michael Dell, chairman and CEO of Dell. "Our ongoing dialogue with customers convinced us that a new segmentation strategy was needed, one that reflected the realities of where the PC industry is headed. It's not a price war anymore, it's a customer war." The net result is a series of products, services and support programs that are optimized for a set of distinct customer segments, or "techno-types". The new products introduced today include some of the hottest graphics and performance in the industry and are the first of a series of new products and product enhancements slated for the remainder of the year. The techno-types, derived from Dell's daily phone contact with more than 35,000 current and potential customers, as well as focus- group and research studies, indicate that each techno- type has a defined set of wants and needs relating to their computer systems.
The primary techno-types are: "Techno-teamer": a corporate customer in a networked environment, focused on basic productivity and networking applications. "Techno-critical": a corporate customer focused on business- critical and advanced applications. "Techno-to-go": customers looking for packaged, application- specific solutions, very often found insmall- or medium-sized businesses. "Techno-wizard": this category comprises hobbyists and technology enthusiasts, both in business and home computing environments. This is often a standalone computing perspective as opposed to a network environment. "Techno-boomer": PC novices or first-time purchasers, often for home or small business applications. "The concept of techno-typing recognizes that a 'one-size-fits- all' strategy doesn't meet the variety of computing needs people have," said Mr. Dell. "For example, the biggest fear of a techno-teamer is network failure -- they work in a networked environment where reliability and ease of network configuration are critical. The techno-wizard, on the other hand, fears that they're not getting the latest and hottest technology -- at the lowest possible cost. That's why our product announcements today-- and subsequent announcements coming soon -- reflect a deeper understanding of these categories and build on our tradition as a customer-focused PC company."
The product announcements include three exciting new product lines: the Dell NetPlexTM line targeted at corporate customers looking for an inexpensive network "node"; the Dell OptiPlexTM line, targeted at corporate customers who require more advanced features and performance; and the Dell DimensionTM XPS line offering PC enthusiasts a new level of performance. Each addresses specific needs within the segmentation strategy. The Dell NetPlex line offers techno-teamers a high-quality, network- ready system at an exceptionally low price. To simplify the task of installing PCs on a network, NetPlex systems come with factory- installed network cards and are certified by Dell through extensive lab testing to be Novell- and Banyan-compatible. Designed from the ground up for networked environments, the NetPlex design features a compact chassis and space-saving keyboard that make the most of often limited desk space. While an excellent network node, the NetPlex systems also make excellent standalone machines in a corporate environment. The NetPlex products utilize local-bus video technology for graphics- intensive environments and offer a variety of 486 processors as well as easy upgradeability to Intel OverDrive processors. Prices for NetPlex systems begin at $1,049, including a color monitor. The Dell OptiPlex line is ideal for the techno-critical customer and offers excellent performance,industry-leading serviceability and upgradeability all in a highly tested and reliable system. The OptiPlex MX products, the first systems in the new line, are mid-sized desktop PCs that feature the same convenient factory-installed network cards as the NetPlex line. The new systems offer advanced features such as local- bus expansion slots to allow for easy upgrade to new technologies, extremely fast graphics and diagnostics built in, allowing customers to easily identify system problems so a service technician can more quickly correct them. Prices for the OptiPlex MX begin at $1,399, including a color monitor. To answer the need of the techno-wizard for screaming performance at the lowest possible cost, Dell is offering the Dimension XPS product line. Each system starts with the fastest Intel 486 DX2 processors on the market, running at 50 or 66MHz, as well as a minimum of 8 megabytes of random access memory to handle even the most complex applications. For video enthusiasts, the Dimension XPS comes standard with a No.9 GXE VL video card, offering not only faster video performance but increased flexibility in controlling resolution and display characteristics, regardless of the monitor used. And for the ultimate in video performance, an optional Diamond Viper VL video card provides the fastest Windows graphics on the market. Techno-wizards can also opt for a factory-installed CD-ROM drive, sound card and amplified speakers to create the ultimate power machine. Prices for Dimension XPS systems begin at $2,049, including an UltraScan color monitor. Dell NetPlex, OptiPlex and Dimension XPS systems offer customers additional flexibility through ReadyWare installation, which offers more than 100 popular software applications that can be loaded at the factory, as well as access to more than 2,400 software titles and peripherals through DellWare.
These new products are further enhanced by Dell's industry-leading service and support capabilities. Dell SelectCare gives customers the opportunity to customize their service and support programs to meet their needs and budget. Each of the new systems offers Dell's standard services which are available at no extra cost, including 7-day, 24-hour toll-free phone support, one full year of Next-Business-Day At-Your-Desk parts and labor service, and Dell bulletin board and on-line services. From there, users can select from a wide range of customizable programs, including: extended next day parts and labor service; parts- only extended service; Direct Line Network support hotline; Dell Self- Maintainer program; a new array of installation services; and toll-free software support. These service programs are supported by Dell's written guarantees, including Guaranteed Response, Guaranteed Next-Day Business Service, and Guaranteed Compatibility for each system purchased.
Dell's concept of products and services focused on diverse customer segments has been received enthusiastically by key industry analysts. "Dell has always been a customer-driven company and this announcement reflects that commitment," said Bill Ablondi of BIS Strategic Decisions in Norwell, Mass. "What makes this announcement unique is that the products are based on customer benefits, not on arbitrary price points or distribution decisions. This allows the customer a greater degree of flexibility in selecting the right mix of products and service." "Our market studies have shown that the computer market is more varied than older models have described it," said Brad Smith of Dataquest, San Jose, Calif. "Dell's segments map very well to how our clients see themselves. And these products are well-designed to meet the range of requirements for each segment." "The traditional response from the PC industry has been to divide product lines into two simple halves," said Lee Levitt of IDC, Framingham, Mass. "Instead of just a low-high mix, or retail versus direct, Dell has set the bar a little higher in terms of really focusing on a full set of product and service offerings."
The "PCs for People" announcement is the newest expression of Dell's continuing focus as a customer-based PC company, according to Mr. Dell. "Our daily contact with thousands of people on the phones and our close relationships with customers gives us a unique insight into how computing needs in America are evolving. This segmentation strategy gives us the ability to offer the spectrum of techno-types more flexibility and more targeted solutions without sacrificing any of Dell's traditional quality and performance in desktop systems."
The Dell NetPlex and Dimension XPS systems are available immediately from Dell. The OptiPlex products will be available beginning August 9th. Dell will continue to introduce new and enhanced products throughout the fall. A Fortune 500 company, Dell Computer Corporation (NASDAQ: DELL) designs, develops, manufactures, markets, services and supports a complete line of personal computers compatible with PC industry standards. Dell pioneered the direct marketing of PCs in 1984 and was the first company in the PC industry to offer manufacturer-direct technical support. Dell is one of the fastest growing personal computer companies in the world, with fiscal year revenues of more than $2 billion. Information on the company and its products can be obtai through its toll-free number: 1-800-BUY-DELL (1-800-289- 3355). /NOTE TO EDIOTRS: Dell is a registered trademark and OptiPlex, NetPlex and DellDimension are trademarks of Dell Computer Corporation.Dell Computer Corporation disclaims any proprietary interest in the marks and names of others./ -0- 8/2/93 /CONTACT: Kellie Leonard or Dean Kline of Dell Computer (media), 512-728-4100; or Don Collis or Ken Smith of Dell Computer, 512-728-8671 or 512-728-4034 (investor)/ (DELL)
CO: Dell Computer Corporation ST: Texas IN: CPR SU: PDT
DD -- NE007 -- 8220 08/02/93 09:19 EDT
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|Date:||Aug 2, 1993|
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