Marketing Plan for Cordless Vacuum Cleaner - Dyson

This marketing plan report discusses the development of a cordless vacuum cleaner by Dyson. It covers the company's vision and mission statements, external environment analysis, segmentation strategy, product innovation process, 4P of Marketing Mix, and financial analysis. The report also includes a PESTEL analysis, Porter's five forces analysis, and SWOT analysis. The report highlights the benefits of the new product and the distribution channels for the product.

Running head: MARKETING PLAN
Marketing plan for developing cordless vacuum cleaner that works for one hour on a single
charge
Name of the Student
Name of the University
Author Note

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Executive Summary
Marketing plan is necessary for a business so as to reach the products to the correct target group.
In this business report, the company Dyson has been considered. The company produces vacuum
cleaner and recent they have initiated for developing cordless vacuum cleaner so that they can
attract more customers regarding their brand. In this business report, Dyson's vision and mission
statements is been highlighted where the mission is to provide innovative products to the
customers by maintaining affordability of price and the vision is to give overview about product
features. The external environment analysis is highlighted through the analysis of PESTEL
analysis, Porter’s five forces analysis and SWOT analysis. The segmentation strategy is also
highlighted by demonstrating geographic, psychographic and behavioral aspects. In terms of
product innovation process it has been highlighted that the company can take initiative for
developing solar technology in their cordless vacuum cleaner in future. Lastly, the 4P of
Marketing Mix that comprised of price, products, place and promotion is illustrated. Financial
analysis including breakeven analysis is also presented in this report.

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Table of Contents
1.0 Introduction......................................................................................................................................4
2.0 Discussion........................................................................................................................................5
2.1 Dyson's vision and mission statements........................................................................................5
2.2 External environment analysis.....................................................................................................5
2.2.1 PESTEL analysis..................................................................................................................5
2.2.2 Porter’s five forces analysis..................................................................................................7
2.2.3 SWOT analysis.....................................................................................................................8
2.3 Environmental scan.....................................................................................................................9
2.3.1 Needs being met by product purchase and benefits to the consumers.................................9
2.3.2 People involved in the purchase process and details about influencers, buyers, and users..9
2.3.3 Distribution channel of the product....................................................................................10
2.3.4 Frequency of the products purchased.................................................................................10
2.4 Segmentation, targeting and positioning Strategy- 500 words..................................................11
2.4.1 Segmentation Strategy........................................................................................................11
2.4.2 Targeting Strategy..............................................................................................................12
2.4.3 Positioning Strategy............................................................................................................13
2.5 Product innovation process........................................................................................................13
2.6 4P of Marketing Mix.................................................................................................................14

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2.6.1 Price....................................................................................................................................15
2.6.2 Products..............................................................................................................................15
2.6.3 Place....................................................................................................................................15
2.6.4 Promotion...........................................................................................................................16
2.7 Financial analysis.......................................................................................................................17
2.7.1 Implementation and Control Process in Case Benchmark is not Met................................18
3.0 Reference List................................................................................................................................19

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1.0 Introduction
Before launching new product, business organizations have to make effective marketing
plan to introduce their brand in the mind of customers. Providing quality of product and services
is not the primary mission of an organization. Along with maintaining quality of products
organizations have to concentrate on grabbing customers’ attention by reaching the products to
the doorstep of target consumers. On the other hand, an effective marketing plan enables the
customers to get detailed overview about the products and services. Dyson is one of the most
prestigious British technology companies occupying a predominant place in providing
manufactures household appliances like vacuum cleaner, hand dryers, bladeless fans and so on.
With the dynamic progress of business industry the competitors’ market threat is increasing
gradually.
Dyson is facing immense market threat from its competitors like Hoover, Shark, and
Bissell due to the emergence of innovative product designs. They have already launched
cordless vacuum cleaner that would enable in operating the vacuumed cleaner without
additional effort. After receiving a huge market threat James Dyson, the CEO has decided to
launch cordless vacuum cleaner that works for one hour on a single charge. Before launching
the product in market, the business experts of Dyson would have to make proper marketing plan
for introducing the product in market for grabbing customers’ necessary response.
This very specific study has focused to make detailed overview on how Dyson would
make effective environmental analysis as well as industrial analysis for getting proper
overview about the current needs and demands of the customers. While introducing the
marketing plan the study has provided detailed overview on how the customers are going to get
necessary benefits from the new product features. An effective STP and value chain analysis

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would be conducted for segregating the target customers as per geographic, demographic and
psychographic segmentation. Marketing mix strategy would be developed for introducing 4
major Ps of brands.
2.0 Discussion
2.1 Dyson's vision and mission statements
The primary mission of Dyson is to provide innovative products to the customers by
maintaining affordability of price so that both low cost customers as well as average cost
customers can purchase Dyson services.
The decision of launching an innovative product like cordless vacuum cleaner with high
capacity of better system, Dyson’s primary vision is to give overview about product features
with the help of a proper marketing plan. As a result, the business experts would be able to
gather effective feedback from the customers based on which the James Dyson would be able to
make their product and service strategy for drawing customers’ attention.
2.2 External environment analysis
2.2.1 PESTEL analysis
Political UK is one of the most stable nations in terms of applying laws and
regulations, control of corruptions and government effectiveness (Wilks-
Heeg, 2012). Due to stable political set up Dyson would not have to face
challenges in running their business in UK market and cooperating with
government taxation policies.
Economic As per current business scenario, UK is facing economic slowdown due to the

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effective of Brexit. Consequently, the inflation rate has been increased from
3.19% in 2006 to 4.29% in 2007 (Taylor‐Gooby, 2012). In this kind of
situation, Dyson would have to fix their pricing strategy in such a way it
becomes easier for the customers in affording products and services.
Socio-cultural UK is possessed with the people of diverse cultural backgrounds and attitudes
(Horst & Miller, 2013). Dyson would have to focus on hiring those employees
towards the services who are from various cultural backgrounds for
entertaining different customers of various regions. Customers would not have
to face challenges in interacting with the services providers.
Technological It is undeniable that UK is out an out advanced in technology (Horst & Miller,
2013). In this kind of situation, Dyson can implement advance technology
within the services. With the help of implementing new technology the entire
operation method of Dyson would be faster and systematic. In addition, it
would be easier for the customers in getting necessary updates regarding
products and services by sitting at the own place.
Environmenta
l
UK government has taken effective initiative in maintaining environment of
the country. Business organizations while running the business in the soil of
Europe have to maintain these regulations. Dyson is not exceptional to that.
Legal UK has implemented effective regulations regarding labor law for enabling the
labors in working peacefully under a business firm (Whiteley et al., 2013).
Dyson while running the entire process of business would have to focus on
maintaining health and safety act, anti-discrimination act, right to information
act, gender equity acts and so on.

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Table 1: PESTEL analysis
Source: Create by Author
2.2.2 Porter’s five forces analysis
 Supplier power:
The number of distributors in manufacturing household appliances in UK is high. As a
result, the suppliers’ power in this very specific industry is low. Distributors do not get enough
scope of bargaining.
 Buyer’s power:
Manufacturing household appliance industry in the soil of UK is huge in number. As a
result, buyer’s get immense opportunity in bargaining with the business experts before
purchasing a product. As the buyers’ power is high Dyson would have to be tactful in assuring
their product price.
 Competitive power:
Competitive power in this very specific industry is high. Most of the recognizable
competitors of Dyson include Hoover, Shark, and Bissell. These brands have already launched
cordless vacuum cleaner in the market. As a result, in order to overcome threats from the
competitors Dyson would have to render innovative product designs based on which customers
can be attracted towards the services.
 Threat of the substitute:
As per current business scenario, numerous non-toxic cleaning products have given huge
market threat to vacuum cleaning brands like Dyson. In order to overcome these kinds of threats
the business expert has decided to render cordless vacuum cleaner that works for one hour on a
single charge in market.

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 Threat of new entry:
While establishing the cordless vacuum product initially, Dyson had to face immense
threats from Hoover, Shark, and Bissell as they have already established wireless vacuum
cleaner in market. Naturally, they have already drawn the attention of customers. However,
Dyson would have to face immense challenges in grabbing customers’ attention.
2.2.3 SWOT analysis
Strength Weakness
Providing quality of products and services
to the customers is an effective strength of
Dyson. In addition, the service quality of
Dyson is very superior. Customers do not
have to wait for a long time in receiving
the services.
Lack of product variety is the major weakness of
Dyson due to which the brand is gradually losing
customer loyalty. Dyson in current business market
is still dependent on conventional vacuum cleaner
which does not attract customers’ attention any
more. As a result, number of target customers is
decreasing day by day.
Opportunities Threats
Dyson has immense opportunities in
expanding the entire process of business in
the multinational countries. As a result,
international customers would be able to
purchase the product of Dyson.
Competitors’ market threat like Hoover, Shark, and
Bissell is a matter of big challenge in business
expansion. This specific brand has already
established a reputation in selling cordless vacuum
cleaner which is a major threat for Dyson.
Table 2: SWOT analysis of Dyson
Source: Created

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2.3 Environmental scan
2.3.1 Needs being met by product purchase and benefits to the consumers
Roth (2012) opined that there is a difference between conventional vacuum cleaner and
cordless and ultra slim vacuum cleaner. In conventional vacuum cleaner the users would have to
carry a cord and the machine would be entirely dependent on electricity. Therefore, conventional
vacuum cleaner is not very effectively portable for the users (Roth, 2012). On the other hand,
while carrying a cordless vacuum cleaner the users would have not to face difficulties in carrying
the product easily. In addition, the customers can get one hour services on a single charge. As a
result, users would not have to be highly dependent on electricity. The product is constituted
with swappable battery packs. However due to these additional advantages of cordless vacuum
cleaner Dyson would have to make effective marketing plan for launching the new product in the
market of UK. Moreover, the most effective benefits that the customers would get from this new
product is affordable price range. The new product is not very high in price which would be
difficult for the customers to afford. It is affordable for both low cost customers as well as
premium customers.
2.3.2 People involved in the purchase process and details about influencers, buyers, and
users
While segregating the target customers Dyson has noticed that two types of influencers
are there in the market (Tanner & Raymond, 2015). One includes household influencers and the
other includes commercial influencers. Household buyers use the brand for fulfilling their own
needs and desires. As a result, there is no difference between buyers and users in this case. On
the other hand, commercial buyers may not be the users. Commercial buyers tend to purchase the
brand for cleaning offices. Therefore, buyers may not be the users in commercial purposes.

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2.3.3 Distribution channel of the product
In order to position the brand in the market of UK the business experts of Dyson needs to
focus on digital media platform instead of traditional media. While making an effective
environmental analysis it is already analyzed that UK is out an out advanced in technology. In
this kind of situation, Dyson can implement advance technology within the services. With the
help of implementing new technology the entire operation method of Dyson would be faster and
systematic. In addition, it would be easier for the customers in getting necessary updates
regarding products and services by sitting at the own place.
The necessary new technology includes social media, online websites, online advertising
channels, advertisement through mobile applications and so on. People of UK being very much
advanced in technology can get updates regarding brands and products from emergence of
advanced media. However, the business experts can get an effective feedback from the
customers about new product by sitting at their workplace. As a result, the communication
between the service providers and the service users is very much effective.
2.3.4 Frequency of the products purchased
Before launching the brand in UK market the research and development team of James
Dyson would have to get in-depth research about the market demand of cordless vacuum. The
R&D team would have to get in-depth information about the sales volume of the competitors
who have already launched the products in market. Based on the market demand the new cross-
functional product development team would like to introduce the brand in market. It has been
critically evaluated that the purchasing frequency of cordless vacuum is very high. Around 3000
customers in a month have showed their interest in purchasing this product from different

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organizations. Based on the purchasing frequency, Dyson has decided to enhance battery
capacity as well to create a differentiation from its existing competitors.
2.4 Segmentation, targeting and positioning Strategy- 500 words
Hanlon (2013) stated that there are segmentation identifies the base for the market values
and also determines the importance characteristics for each considered market segments. On the
other hand, Rettie, Burchell and Riley (2012) depicted that targeting emphasized on evaluating
the potential attractiveness of each segments and then make selection from those segments.
Hassan and Craft (2012) lastly portrays that products positioning focuses on developing detailed
product positioning for the selected segments and developing marketing mix for each one of the
selected segments.
2.4.1 Segmentation Strategy
Demographics- Ettouzani, Yates and Mena (2012) stated that the demographic people can be
selected based on the personal attributes such as age, gender, sexuality, marital status, education
and occupation. In this case, Dyson can target people of older millennial to 60 years of people.
The main reason behind the selection of the segment is that older millennial need to use the
products for aliening their homes; while the aged people need to utilize some machinery that is
easy to use.
Geographic- Khan (2014) depicted that the segmentation of the audience in this aspects can be
made on the location of the accessibility for the concerned product. The geographic location will
be the entre the United Kingdom. The option for the availability of the cordless solar vacuum
cleaner will be in the physical outlets as well as on the online shopping website. The physical
outlet will allow the nearby customers to personally test the machine and they make the purchase

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while the people, who do not have time to visit the shop, can also demand for trial on their home
and then buy the product.
Psychographic- Phillips (2016) also portrays that the psychographic aspects of segmentation
focuses on the personality, values and life style. In this case, Dyson can target the commercial
organization specially hospitality sector as they are more likely to implement the modern
technology for maintaining their workplace environment. Commercial Corporations nowadays
emphasizes more on the eco-friendly technology that put lesser harmful impact on the
environment in order to gain effective brand image. Thus, the new requirement of the business
organizations will help Dyson to enhance their customer growth.
Behavioral- Muhamad, Melewar and Faridah Syed Alwi (2012) started that in behavioral aspect
of the segmentation, a company should emphasizes on the using technique of the people, their
loyalty and the benefits that they will get after using their products. Thus, in this case, it can be
said that Dyson can those people, who follow new technology and high income people, who
wants to spend money on the new thing available in the market.
2.4.2 Targeting Strategy
There are certain aspects that can be considered while demonstrating the targeting for the
products. These aspects are criteria size, accessible and focusing on benefits (Armstrong et al.,
2015). Strauss and Frost (2016) also stated that the criteria size should be large enough to justify
the segmentation. Thus, in case of Dyson, the target market should be medium in size as it only
targets people, who can afford their profits and people, who needs easy o use products. Kotabe
and Helsen (2014) furthermore stated that the accessibility of the products should be in this way
that each segment can access the message used for communicating the message. Thus, Dyson
will communicate their message through traditional and contemporary media like newspapers

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advertisement and social media pages. Khan (2014) moreover suggested that different target
market should be targeted based on the different benefits that they can attain. In This case, Dyson
need to focus on the benefits that older millennial and aged people will get. The benefit that the
older people will attain will be satisfaction by using the modern technology; while, the older
generation will get the benefit of accomplishing daily household work easily with lesser effort.
Moreover, the hospitality sector and commercial organizations are also the target market and
they will get the benefits of implementing the greener technology in their organization.
2.4.3 Positioning Strategy
Hooley, Piercy and Nicoulaud (2012) present an argument that positioning strategy is to
highlight the most effective potential customers, who can help them to attain more financial
benefits. Kumar et al. (2012) also stated that the evaluation of the positioning strategy also help a
company to select proper marketing mix for the product. in this case, Dyson’s most potential
target markets are millennial as they are earning for fulfilling their needs and also to make
purchase that they need for their family members. Dyson should select this target group for
positioning their product; they can indirectly represent the older family people by providing
finance as they have the responsibility of their family members.
2.5 Product innovation process
Norman and Verganti (2014) stated that value proposition is important for an
organization as it provides the customers a reason to use the company’s product. Coccia (2017)
furthermore stated that value proposition is also use to define the significance of the product that
is delivered and how they should be communicated about the usage of the project.
Dyson can implement the solar technology in their cordless vacuum cleaner which also
includes portable battery so as to increase the power of the machine. This will allow the people

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or the users to use the machine effectively in the day time and can also use the machine in the
night by the stored charge. This approach will allow the user to use the vacuum cleaner for more
hours without any charge. This incorporation of the solar power system in the vacuum cleaner is
a radical invention which not only allows the machine to consume less electricity for battery
charging but also increases the longevity of the vacuum cleaner. It is then estimated that that the
sale of the Dyson cordless vacuum cleaner will be increased by 7% in one year.
Thus, the value proposition for the Dyson can be that their products not only targets for
the technology geek users but also targets the household people in such a way that the products
will also be less harmful for the environment.
2.6 4P of Marketing Mix
Image: 4P of Marketing Mix
(Source: Singh, 2012)
According to Singh (2012), marketing mix of an organization comprises of four aspects
products, price, distribution and promotion.

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2.6.1 Price
Chikweche and Fletcher (2012) stated that price refers to the cost set for the products
which depend on the cost involved in the manufacturing cost, segment targeted and potentiality
of the user to buy the products. Fan, Lau and Zhao (2015) also suggested that in case, where
there are other companies offering similar products in the market, it is better for the company to
adopt competitive pricing strategy. However, for the radical innovation product which is solar
power for vacuum cleaner should be price skimming strategy, where the price of the innovative
products will be high until other competitor companies offer the similar technology in
comparatively lesser amount. The price of the codeless vacuum cleaner that will be developed by
the Dyson will cost £129.00 - £149.00 for the vacuum cleaner that used only the battery but for
the radical innovative products that also incorporate the solar technology will have the maximum
retail price (MRP) of £189.00 - £199.00.
2.6.2 Products
Rahmani, Emamisaleh and Yadegari (2015) on the other hand stated that products
signifies that item that is being sold and deliver a minimum level of performance that is promised
to the users through advertisements. The product that is involved in this case is cordless vacuum
cleaner and also another range of products which is solar power incorporated cordless vacuum
cleaner.
2.6.3 Place
Moreover, Gilaninia, Taleghani and Azizi (2013) depicted that place identifies the point
of sale for catching the eye of the consumer and implement a good distribution strategy. In case
of Dyson, the company uses the direct marketing but in recent time, in order to gain the
competitive advantage, the company has also opted for the online marketing options.

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Mohammadian and Habibi (2012) also stated that the aspect of place also signifies the
distribution centre. Dyson will deliver the items to the nearby users through local delivery
people; while the same thing will be delivered to distant places through Courier Companies like
FedEx, or the U.K. Postal Service. Londhe (2014) portrays that distribution strategies are of three
types- exclusive distribution, intensive distribution and selective distribution strategy. In case of
Dyson, the company can utilize selective distribution strategy, where the brand can choose
multiple channels and partners. This will help the company to reach to such places, where they
do not have any physical outlets. Concept of authorized dealership can also be utilized for
delivering the desired products.
2.6.4 Promotion
Lastly, the aspect of promotion resembles the activities for advertising the product
(Kornfield et al., 2015). In case of Dyson, since the target markets are both the older millennial
and aged people thus both the traditional and contemporary media will have to be taken. Baker
(2014) stated that the traditional media like newspaper advertisement and technology driven
magazines will be suitable for the aged people. On the other hand, millennial people are office
goers and prefer most of the work to get accomplished through mobile devices like smart phones,
tablets and laptop. Thus, adopting contemporary media like direct-mail advertising and social
media advertising will be beneficial for making aware concerning the products. In case of social
media advertising like in Facebook Pages and YouTube channel, Dyson will broadcast, three to
four videos so that they can drive the engagement of the users. The benefits from the products
and people’s feedback can also be broadcasted so that the other user can get the accurate image
and perceptions whether or not the concerned products are good in quality. In addition to that,

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business magazines and technology magazines should also be targeted for promoting the brand
which makes the older people to known about the recent initiatives taken by the company.
2.7 Financial analysis
Forecasted total number of units sold = 2000
Forecasted average unit price (AUP) = 200
Forecasted total sales in $$$ = 10000
Forecasted average unit variable cost = 140
Forecasted fixed cost = 150
Total sales in $$$ = 20000
Breakeven point (units) = 2.5
Breakeven point ($$$) = 500
Total cost = Fixed cost + Variable cost
= 150 + 250 = 400
Breakeven point (units) = Fixed cost__________
Unit price – Unit variable cost
= 150 / (200 - 140)
= 2.5
Breakeven point ($$$) = Breakeven point (units) X AUP
= 2.5 * 200
= 500

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2.7.1 Implementation and Control Process in Case Benchmark is not Met
In a situation where the breakeven is getting higher for this cordless vacuum cleaner,
certain effective control strategies can be implemented in lowering the breakeven point. This can
have effective impact on the performance of the company. The control process that can be
implemented includes targeting smaller and attractive niche consumer segments rather than the
wider market. In offering this new product of cordless vacuum cleaner, control implementation
can be focused on offering higher value that can build higher brand equity that can have positive
impacts on price margins and share. Increasing the price of the cordless vacuum cleaner is
necessary in ensuring recent economic environment. Managers must also consider raising prices
through controlling lost volume can offset increased per unit expenses. Up-selling and Cross-
selling control implementation can also be considered through generating attractive product and
service bundles. Through this they might be able to convince the consumers in purchasing high
end offer or sell them additional swappable battery packs with the cordless vacuum cleaner.

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