Dyson Brand Promotion Strategy - Case Study Example

Dysons Marketing Strategy

Abstract

The introduction of a new product into the market requires a proper marketing strategy with regards to branding, pricing, promotion and targeting to ensure that the product reaches the target customers and at an appropriate packaging and price which will appeal to them. A proper marketing plan is meant to ensure that the product meets the customer expectations in terms of price, functionality, and branding and also seeks to use the best distribution channels to ensure that the product reaches all the potential customers. Dyson Ltd offers a wide range of products such as hair dryers, vacuum cleaners and much more which are meant to carry out their designated tasks more efficiently than other brands. This report presents a marketing strategy for the new cordless vacuum cleaners that have been introduced in the market by Dyson Company. The report incorporates factors such as sales service, branding, communication and promotional, targeting, supply chain and financial analysis and implementation. These factors have been identified as the integral components that are expected to influence the success of the cordless vacuum cleaners in the market.

Introduction

Dyson is a home appliance manufacturing company that has been dedicated to producing new and improved products that incorporate current technologies as well as factoring consumer preferences. The company has stayed ahead of technology which one of the factors which have made it remain successful in the industry (Guthrie & Roberts, 2005). Some of the new products that are ready to be launched into the market are the two distinct portable vacuum cleaners which are powered by portable batteries. The cordless technology in vacuum cleaners is quite new in the industry and is expected to be well received by the consumers (Kim & Mauborgne, 2004). The company has a variety of other portable vacuum cleaners which have increased capability making them fit for industrial use. The powered batteries which are the limiting factor when it comes to the duration which these devices are in use are designed in a way that they are easily interchangeable thus allowing the users to switch batteries as they work (Kuang, 2012). The Dyson cleaners have improved technologies which include washable filters, digital motors, mini-motors and powerful suction power which guarantees the customers value for their money. Dyson Appliances is known as one of the fastest-growing manufacturing businesses in Europe.

The core product that this marketing strategy is going to focus on is the new cordless vacuum cleaner design which is a new technology in the market. These cleaners used a rechargeable battery which is easily replaceable, and it enhances portability of the machine as it can be carried around as one carries out cleaning (Guthrie & Roberts, 2005). These vacuum cleaners are not only efficient , but they also save on energy and enhance healthy living as they use a cyclone technology in the cleaning mechanism which does not rise dust particle as cleaning is done (Hambrick & Fredrickson, 2005). There more other comprehensive and interesting new features which have been incorporated in the new product which will definitely make it gain a competitive advantage in the market (Tanner & Pitta, 2009). The core features of these new portable cleaners are the Root cyclone and ball technology which enhances efficiency and maneuverability of the devices. These two technologies enhance high performance on different floor types and are asthma friendly in that they can be used by asthmatic patients and people with dust allergies. The HEPA technology used in the design of these vacuum cleaners provides replaceable bags thus reducing costs for cleaning and replacement.

Branding

Branding refers to the creation of an image for a product that will boost both its popularity and sales. A brand refers to a term, sign, name, design or even a logo that is used in the marketing of a product to make it distinct from the others through a revelation of its additional qualities in comparison with the rest (AMA, 2013). The Dyson Company has already popularized its brand and is already known world-wide as the top producer of quality vacuum cleaners. Its previous versions of vacuum cleaners paved the way as they proved to be long-lasting and efficient which boosted the popularity of the Dyson company products. It is therefore clear that Dyson is associated with quality and the consumers have no problem paying a higher price for a good quality product as it will serve them longer than the cheap substitutes. These devices use current technologies to maximize cleaning, by enabling the user to clean floors, furniture and also the air thus creating a more healthy environment and reducing the risk of contracting diseases that originate from air contamination (Guthrie & Roberts, 2005). The Dyson vacuums have been developed through the integration of sophisticated technologies that cannot be found in the ordinary upright vacuum cleaners.

In the current markets, there is no effective differentiation of products, and the customers end up confused about the product that will serve them better. Branding comes in as an integral factor that enables companies to create a distinctive differentiation and make it easy for customers to choose their preferred product (Guthrie & Roberts, 2005). In Dyson's case, the new products have many distinctive features that make the products stand out from the rest. The most important characteristic is the cordless design which uses a rechargeable battery. All of the vacuum cleaners on the market currently do not have batteries and can only operate when plugged into the power supply which interferes with the portability and maneuverability. The second factor that will be effectively used in branding is the ball technology which has also been introduced to the market by Dyson. This technology enables the cleaner t easily maneuver sharp bends as it cleans thus increasing its efficiency.

Sales service

The new Dyson cleaner that is being introduced in the market will not only provide the new exciting features that increase performance and efficiency but will come along with a five-year warranty which is meant to entice customers into buying the product. The five-year warranty will a guarantee of parts and labor on both the upright and cylinder vacuum cleaners which despite having the new features are meant for home use. The warranty for the handheld cleaners will be two years because they are likely to be used for commercial purposes and therefore more likely to develop mechanical problems often (Guthrie & Roberts, 2005). The customer service will be available throughout to ensure that any inquiries or issues brought up by the customers are handled immediately and the spare parts will come with a full year warranty. The company will use a technological approach to customer service which will use an online expert service. This online platform will enhance interaction between the company and its customers where they can discuss any arising issues and get answers to any questions that they might have.

Price

The pricing will be different depending on the type of machine that is purchased. For instance, the newly invented vacuum cleaner comes in different makes that include upright, handheld and hoover (Benady, 2008). It is therefore clear that the pricing strategy will take a product line pricing approach due to the difference in feature and performance of the different machines. Dyson vacuum cleaners will be sold at a reasonable price range of £ 99 - £ 340.The pricing strategy will incorporate a discounting programme which will benefit the first a thousand buyers of the product who will receive 10% discount on the price. Secondly, the first a hundred overseas buyers who will request for the product through the company's website will receive both the discount and free shipment besides the other after-sale services such as warranty.

Communications and Promotion Strategy

The company will apply numerous forms of product promotion besides the conventional television and billboard approaches. The new products will be promoted using current technological strategies such as online based product promotion and provision of discounts and coupons for customers as well as free shipments. Social media platforms and the company’s website will be some of the integral tools used to communicate and link the company to its potential customers (Marshall & Johnston, 2011). Social media would be an appropriate platform because of its unlimited audience, and it also comes with additional tools such as posting of images and formation of product pages where the users/customers can interact with manufacturers and ask for any clarifications. The company website will be used for both purchases and inquiry besides promotional purposes.

However, emphasis on the current way of online marketing does not mean that the company will entirely ditch the traditional methods of product promotion such personal selling, sales promotion and publicity. These are some of the approaches that would be used to physically link the company with its customers. This approach will provide sufficient time for the technicians to demonstrate how to use the products as well as give an explanation on any concerns that the customers might have (Guthrie & Roberts, 2005).

Targeting

The Dyson Company believes that their products should be tailored to perfectly fit the needs of the customers. This is the main reason why the company came up with the invention of varied vacuum cleaners all of which are cordless and portable. The company's research team has been studying how different consumers use their vacuum cleaners and realized there is an importance to have a completely portable version of vacuum cleaners (Levitt, 1983). The varied types of vacuum cleaners target different groups of people in the population including the health conscious, the lifestyle users and the individualists. The health conscious are those people that consider how the product enhances their healthy living, while the lifestyle users are only interested in showing their status through purchasing the most current products. The individualists refer to the small-scale users who are concerned with efficiency and durability.

Supply chain

The supply chain of any new product plays a significant role in its success in the market as it enables the customers to easily access and purchase the product in question. The company will use comprehensive supply chain software to operate the online sales approach. This will enable the business to partner with retail sites such as Amazon and eBay which will enhance easy delivery of the products after purchase (Kotler & Keller, 2015). This system will come with a mobile application which will enable customers to make purchases directly from the online store. Besides that, the company will also employ the conventional approach where it will supply these products to the leading retailing shops and supermarkets.

Milestone 6

Financial analysis and Implementation

After the introduction of the three different models of the new cordless vacuum cleaner, the company will expect to raise its market share by 3% besides making a total profit of about $8.5 million in the first year. From the financial analysis, it is clear that the product will break even in the first year as it would not be easy for the competitors to copy the technologies used in the products and make close substitutes in the first year. The only competition that the products will face in the market is price and design. However, the design of the Dyson vacuum cleaners is superior compared to the competitors, and that is an assurance that it will dominate the market (Johansson, 2009).It is expected that there will be increased price competition after the introduction of the cordless vacuum cleaner. This is mainly because the cleaner will be a bit expensive and therefore the competitors will opt to reduce the price so as to remain relevant in the market.

Increased advertising is yet another factor that is expected. An increase in advertising is expected to cost the company about additional 500,000 dollars up to $4 million. If the company assumes that there are no extra gains with regards to the market share, the amount spends on advertising will be negligible and will not affect the performance of the company in general. It is therefore clear that if the industry increases advertising, then the Dyson Company will be able to increase its advertising up to $1,500,000 annually without affecting its operations. The increased advertising will pay off through increased sales and consequently profitability.