Opportunities and Threats for Dyson Hair Dryer: A Target Market Analysis

This report discusses the opportunities and threats for Dyson hair dryer and provides a target market analysis. It also includes a SWOT analysis, recommendations, and references.

Running head: INTRODUCTION TO MARKETING
Introduction to marketing
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Opportunity and Threat
Opportunity
It is identified in this report that one of the major opportunities for Dyson hair dryer will
be the demand for innovation in the market. Currently, customers prefer more innovative and
utility products over cost effectiveness. This trend can be effectively tapped by Dyson with their
premium yet innovative hair dryer. In addition, the powerful motor for Dyson hair dryer will
enable the customers to consume less time. Thus, with the reduction of free time for the
customers, demand for Dyson hair dryer will get increased. It should also be noted average
earnings of the global customers are increasing and this will increase the purchasing power of the
customers in the long term. Thus, the more will be the purchasing power of the customers, the
more will be the potentiality of Dyson hair dryer to get sold.
Threat
On the other hand, this report also identified a few threats for Dyson with one of the
major is entrant of new and cost effective product in the market. This product may get more
updated features in less cost. Furthermore, economical factors may affect the affordability of the
customers and will affect the demand for Dyson hair dryer. In addition, introduction of disruptive
innovation in the market in the form of new product will also pose threat for Dyson. Customers
will prefer the more innovative products over Dyson.
Target market analysis
From the above analysis, it is identified that the target audience of Dyson hair dryer is
mainly the corporate females. This is due to the reason that working females are having the need

2INTRODUCTION TO MARKETING
for grooming themselves without having enough time for that. Thus, these females are having
less opportunity to visit salons. With the help of Dyson supersonic hair dryer, these target
customers can be attracted by the fact that Dyson hair dryer will help them to have the hair
treatment as salon in home (Cross, Belich & Rudelius, 2015). In terms of demographic
segmentation, the target market for Dyson hair dryer is the age group between 20 and 40. This is
due to the reason that women from this age group will majorly from the working groups and they
will have more preferences for grooming. Thus, they can be attracted for Dyson hair dryer. In
addition, in terms of psychographic segmentation, women customers with having inclination for
active lifestyle will be targeted. This is due to the reason that women with active lifestyle will
prefer grooming device such as Dyson hair dryer according to the current market trend.
Moreover, customers with having the higher income will be targeted due to the reason that
Dyson hair dryer is positioned at a premium and targeted towards the top of pyramid market. In
terms of geographic segmentation, tier I cities will be targeted in the initial stage (Canhoto, Clark
& Fennemore, 2013). This is due to the fact that customers from the metro cities will be more
from working class and they are having less time for personal grooming. In addition, economy of
the metro cities is higher compared to other locations and this it is favorable for the premium
positioning of Dyson hair dryer.
Conclusion
In this report, SWOT analysis is also being discussed in identifying the positive and
negative factors for Dyson hair dryer. It is identified that major strength of this product is
distinctiveness in terms of aesthetic value. In addition, the technical advancements of Dyson
helped in getting heated less compared to the competing products. However, on the other hand, it
is also identified that price level of Dyson hair dryer is high compared to the market standard.

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This is restricting the enhancement of the target customers. In addition, Dyson is a new entrant in
the dryer market and thus they lack the brand identity compared to other established players in
the market. However, it can be concluded that given product benefits and features, the high price
level is justified. Moreover, in this report, the opportunities and threats are also being discussed
and it is identified that in the long term. Dyson will face both positive and negative factors in
their business.
Recommendations
Ansoff matrix will be used in recommending the most effective strategic intent or
direction for Dyson hair dryer. According to this model, there are many four strategic options
available to Dyson, which will be applicable in different situations.
It is recommended that Dyson should initiate market penetration strategy for their
business development. This is due to the fact that with the help of the market penetration
strategy, they will be able to develop new markets by less investment (Schmidt, Spann &
Zeithammer, 2014). In addition, offering different variants of hair dryer will further help Dyson
to cater to different customer segments. Thus, the existing market of Dyson will get established
that will enable them to enter the foreign markets in the long term. Resources and capabilities
will be more with Dyson with the help of market penetration strategy.

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Reference
Canhoto, A. I., Clark, M., & Fennemore, P. (2013). Emerging segmentation practices in the age
of the social customer. Journal of Strategic Marketing, 21(5), 413-428.
Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment, and
growth-an interactive triangle. Management and Administrative Sciences Review, 2(2),
pp.196-206.
Schmidt, K. M., Spann, M., & Zeithammer, R. (2014). Pay what you want as a marketing
strategy in monopolistic and competitive markets. Management Science, 61(6), 1217-
1236.