Product Recall by Dell: Group - 1

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PRODUCT RECALL BY

DELL

GROUP – 1

MBAA21001   ABHISHEK NAIK


MBA21082     ANKIT VERMA
MBA21084     ARAVIND N
MBA21086     ATHUL A S
MBAA21023   DEEPANSHU KUMARI
MBA21095     HEMANT BAGDHI
MBA21099     JOHN VL FANAI
MBA21104     KRUNAL DAHAT
MBA21111     NILAY KAUSHIK
MBA21120     RUBAN HUBERT J
MBA21126     SAURABH SARKHEL
What is Product Recall? 
Recall is the act of summoning someone or something back to where it originated from.  
A product recall is basically a request of returning, exchanging, or replacing a product after a  manufacturer or consumer discovers any
defects that could hamper the performance, could harm consumers or produce legal issues for the producers .

Risks Associated with Recall


                       Possible risk that comes from product recall are mainly liability claims and Government prosecution. 
         To reduce and control this risk, the product recall teams have to document all recall
actions,                                                                              that include customer, user, distributor and public communications. It is
important to understand 
the reason for the recall, scope of the recall, and how to address it. This is done by tracking all recall-related costs
to facilitate future insurance claims and claims against responsible suppliers and component manufacturers.

About Dell
Dell, founded in 1984 by Michael Dell, sells personal computers, network servers, data storage solutions, 
and software. Dell was the world's top shipper of PC displays and third largest in terms of
unit sales as of January 2021. An organization-wide culture of product safety—that includes product 
management (manufacturing and sales),design , quality, use and testing, and literature—is the best 
means to prevent any product recall.
What the crisis was ?

 Batteries were overheating and catching fire


 Lithium-ion batteries were used in laptops
manufactured between April 2004 to July 2006
 Batteries were manufactured by Sony
 Dell recalled around 4 million laptops
 Faced around a loss of 30 percent
 Apple, Lenovo and Toshiba were also forced to
recall their laptops
4Ps After crisis

Product Price Place Promotion


• Computers, digital • There was no change • E-commerce sales • Websites,
cameras acquiring EMC in prices after the crisis was focused more • Advertisements,
• Lost largest • Discounts as usual given than In-store Outlets • Direct sales model
manufacturer of PC by eliminating middlemen • Dell stores,outlets also
position who could have charged place for sell
to  Hewlett Packard  10%
SWOT Analysis
OPPORTUNITIE
STRENGTHS WEAKNESSES THREATS
S

• World's largest PC • Dell have weak • Started • Almost same prices


maker business relationships manufacturing         compared to
• Wide distribution with many computer batteries in house competitors
channel retailers • Brand image • Reliability on dell
• Quality Customer • Deals with large improvement  products might get
services number of suppliers low
from different
countries
Responsible Marketing
Defining SRM Approaches by Dell
Approach ensuring  • Design for Environment
• Meeting needs of customers • Green packaging and shipping
• Positive social impact on 15/7/06 • Reducing footprint
customers • Dell Recycling program
• Community • Community Involvement
• Diversity and Inclusion

28/1/11 2/6/13

Needs in this case Progress Made Real Plan


• Product recall
• Late response Through this 10 year plan Dell

1/10/19 hopes to create a positive lasting
Deceptive promotions
• Unauthorized use of data impact on humankind and the
• 'Greenwashing' planet
Brand Repositioning

Admission
• Dell was the first company to admit the
problem regarding the Sony batteries. Hence
were able to shift the opinion of the people
through open dialogue. 
Recall
• The effectiveness in recalling the batteries
Integrated Marketing Communication
Combining various communication tools to present a single message and have the intended effect
on customer perceptions and behavior

External Integration Internal Integration

• Online marketing – Introduced


Direct2Dell, Dell Connect, Idea
• PR and Publicity - Maintained
Storm
frequent updates and
• Direct Marketing – Hotline for
discussions among employees
replacement of the battery
• Personal Selling – Interactions
• Advertising – From generic ads
with Stakeholders after the
to ads which established
incident to control the negative
emotional side of a person
image of the company
through “purely you” campaign
Integrated Marketing Communication
Coverage Complementarity
Online marketing, Hotline Became a Title Sponsor for the
services and ads were able to philanthropy football game to
cover desired consumers raise funds for orthopedic
patients
Contribution
Conformability
Building awareness,
enhancing image and inducing Post crisis ad campaigns
sales.  focused on both youth and
middle-aged people

Commonality Cost
Consistency across different
Spent 100 million to enhance
channels conveyed the same
customer experience
meaning of “valuing each
customers and how unique are
they”
Global Marketing

Geocentri Through EPRG analysis, Dell is 
Geocentric. It target global
EPRG framework has 4 stages c customers with similar mindset
and it tells the ways in
which  company operates in
Global
International Market EPRG marketing op

Challenges
portunities
and
challenges

Supporting Small Business units


enhances the opportunities of
Opportunities Reaching local customers was
difficult in all regions of many
Dell countries for Dell  
CONCLUSION
We produced few steps which Management can take during product
recall
 Addressing the problem openly because it allows organization to
make effort in controlling over the crisis. Negative news may hamper
the image of the company.
 Taking the responsibility of the issue and being apologetic of the
failure rather blaming each other
 Formation of cross-functional response team to assess the impact of
the crisis.

DELL has a very strong brand and record impressive growth.


A strong Research & Development team will produce new innovative
ideas.
Dell is moving towards manufacturing Energy Efficient , Green
Packaging and Shipping material , Dell Recycle Program etc. creating
a positive image in the community. 
Thank You

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