Dell bets on brand power for move into electronics

ROUND ROCK, TX: Dell is hoping its strong brand equity in the PC market will help make its entry into the highly competitive consumer-electronics market a smooth one.

ROUND ROCK, TX: Dell is hoping its strong brand equity in the PC market will help make its entry into the highly competitive consumer-electronics market a smooth one.

Dell recently announced it would start selling digital entertainment devices, including mp3 players, an online music service, and a multifunctional LCD television. Dell will face a crowded market, competing against the likes of Hewlett-Packard, Sony Electronics, Apple Computer, and Gateway.

"We want to leverage the business model we use for PCs, and use that for consumer electronics," said Dwayne Cox, director of communications for Dell's US consumer division. "We want to introduce products that our customers told us they want, at the best value, through the best buying experience."

In addition to leveraging its strong brand in the PC market to attract consumers to its digital products, Dell will shift its media outreach.

Along with the business and tech writers Dell normally focuses on, the company will also aggressively reach out to lifestyle writers and publications that it normally doesn't approach.

"One area we've always focused on is product reviews, and generating word of mouth," said Cox. "And I think a lot of people who might have been hesitant to buy these products, who trust and know the Dell brand, will go ahead and buy them because it's a Dell. That trust and brand equity we have also transfers to LCD televisions and mp3 players."

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