Marketing Report: Dyson's Strategies for Hair Washing Machine Launch

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This marketing report provides a comprehensive analysis of Dyson's marketing strategy for the launch of its new hair washing machine. The report begins with an executive summary and an introduction to the company and the new product, highlighting the innovative features and target market. A detailed situational analysis, including PESTEL factors, is presented to assess the external environment and identify opportunities and threats. Marketing communication objectives are established, followed by a discussion of the marketing communication strategy and implementation tactics, including advertising, personal selling, sales promotions, and public relations. The report proposes evaluation and control methods, along with a sample print advertisement. Finally, it concludes with recommendations and a reference list, providing a thorough overview of the marketing plan for the new Dyson hair washing machine.
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MARKETING COMMUNICATIONS
DYSON MARKETING REPORT
LECTURER: Amirt Kaur
Chen Haibin
CT0248426
15 OCTOBER 2020
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TABLE OF CONTENT
1. Executive Summary
2. Introduction of the Company & the New
Products
3. Situational Analysis & Marketing
Communications Objectives
4. Marketing Communications Strategy &
Implementation Tactics
5. Proposed Evaluation & Control Methods
6. Sample Print Advertisement
7. Recommendations & Conclusions
8. Reference List
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1. Executive Summary
Dyson Ltd. is a company committed to design, research, and
innovation which has revolutionized consumer markets and
participate in global competition. Dyson cornered the household
appliance market design and manufacture hairdryer, vacuum
cleaner, heaters, lights, hand dryer, blade-less fan, and air purifier
etc. Dyson has a long-standing commitment which is dedicated to
developing in engineering and design household appliances.
( Dyson, J. 2020 )
This is a synthetical marketing plan intended to outline the
promotion of a new hair washing machine by Dyson for further
expand its product frontier. This marketing plan will be based on
situational analysis and marketing communication objectives to
implement marketing communication strategies and tactics,
following with proposed evaluation and control methods. This
analysis investigates target market opportunities that will assure a
successful product launch and create more values for the company.
Dyson needs to seize the growing opportunities in the
household appliances market. Currently, in the household
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appliances market, there’s no hair washing machine product
available, the entire market was totally blank. The household hair
washing machine is a unicorn product, by capitalizes Dyson’s brand
recognition and the high quality of innovative products Dyson hair
washing machine has unlimited potential.
2. Introduction of the Company & the New
Product
Dyson Ltd. is a British, private company founded in 1991 by
James Dyson. Headquarters in Malmesbury, Wiltshire, UK. Dyson
Ltd. is a global company by selling its products in over 65 countries
across the globe. ( Bennett, B. 2020 ) Currently, Dyson has 12,000
employees worldwide, generate 4.4 GBP billion revenue in 2018. (
Stupples, B., & Metcalf, T. 2019 )
On 22 January 2019, Dyson announced to move its headquarters to
Singapore inasmuch as near its biggest growing market, Asia. Not
only-but also the Brexit has huge uncertainty impact to its business
operation. ( Sandle, P. 2019 )
The new Dyson hair washing machine is a unique product that
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offers superior automatic hair washing experience, together with
head massage functions. Dyson has the golden opportunity with this
release to occupy the product market share with a competitive price
at 1,288 SGD and sell 500,000 units in the Asia Pacific region by end
of 2021.
The Dyson hair washing machine is an unplugged
waterproof machine which can use inside the shower room as well
as bedroom, the mobile-ability significantly increase its
practicability. The hair-washing machine is revolutionary products
which perfectly solved the inconvenience of people washing their
hairs and free their hands, coupled with professional head massage
function. This product will be designed to meet the consumer’s
expectation of luxurious head massage enjoyment and superior hair
cleaning experience. This pivotal description narrated the basic
functions of the new innovative product, also explain the needs of
the peoples.
3. Situational Analysis & Marketing
Communications Objectives
3.1 PESTEL Analysis
This analysis considers external environment factors which can
aid on the new product promotion, comparatively with the negative
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influence identification which has profound impacts on the business
operation as well as the new product launch. This influence includes
politics, economic, social-cultural, technological, environmental, and
legal factors.
-Political factors
The change of political climate has a tremendous impact on
the business operation and the consumer market. Political factors in
Singapore and other countries could potentially affect the business
operation of Dyson, due to the restriction of foreign labour force
policy might increase the manufacturing cost. It is important to
consider that the rising tension between China and US’s tariff war as
well as the unsettling Brexit issues with EU would affect Dyson’s
revenues too, for fear that of the new product price setting.
-Economic factors
The world bank has released its 2020 Global Economic
Prospects on June 2020, described that the world is experiencing the
deepest global recession in 21st century which is even more worst
than the 2008 Subprime crisis, ( World-Bank, 2020 )This would
reduce consumers purchasing power. By the same token by lots of
countries government are taking monetary easing on the finance
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policy including Singapore, this might trigger high inflation rate
which would affect Dyson revenue as well.
-Social-cultural factors
The interchange of customer behaviour and market landscape
in the consumer market can be attributed to social-cultural factors.
In the Internet era, customer can access the product information
easily, and the customer's review has a great impact on the
promotion of the new product. On the bright side, the internet also
easier to made Dyson’s customer adopt the new product and new
technology. On the cultural factors shows there's demand from the
consumer market for more tech features in household appliances to
make life easier and less stressful through utility and convenience,
which the new Dyson hair washing machine perfectly fulfil the needs
from people. Moreover on another key cultural factor is the growing
number of the married working woman. According to ASEAN Today,
there’s 63.3% married woman remained in the workforce to support
the family in Singapore. ( Liew, M. 2019 ) The dual-income family
has higher disposable money spend on household appliances, which
might benefit Dyson’s new products promotion.
-Technological
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In the light of technological trends are the key factors to the
success or failure regarding Dyson’s new product. The smart home
appliances are cornering the lifestyle products market by creating
autonomous reformation devices with intelligent programming and
technological advanced esthetic. Dyson has always been on the
cutting edge of the household appliances technology, by investing
more on their engineering and R&D, it will gain its brand recognition
increase products sale eventually.
-Environmental
Environmental factors described public concern regarding the
companies corporate social responsibility. Currently, Dyson DC01
was the first vacuum cleaner separate dust from the air without
consumables bags in the world. ( Dyson. 2020 ) Dyson committed to
‘’reduce, reuse, recycle’’ policy which synonymous with international
environmental policy, this will improve companies reputation equally
increases market confidence in the new product launch.
-Legal
Lastly, Dyson is an international organization with strong corporate
policies that adhere committed to the legal obligation. Dyson has to obey the
local laws and regulations regarding introducing the new product launch. Still,
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Dyson has to duly handle its patent infringement lawsuit against competitors,
it might hurt companies image.
3.2 SMART Objectives
Dyson can use direct channel and retailer channels to sell its new
product. The direct selling channel will establish on Dyson official shopping
website, at the same time choose trustworthy retailers this include locals
stores and online platform. Dyson can start its distribution on 1 October 2020.
Optimistically sell 10,000 units in the first three months to break-even cost of
product development, sell 500,00 units in Asia pacific region by end of 2021.
Firstly, Dyson has to launch its official shopping website which can deliver the
goods cross the Asia pacific region and produced 50,000 units in advance as
an inventory. Secondly, collaborate with well-known retailers, such as BEST,
COURTS, and Challenger to establish a point-of-purchase in the store.
Correspondingly, the online retailer platform will cover Lazada, Shopee,
Taobao. Lastly, focus on promoting and popularize new product through
internet as well as a traditional media platform. The household appliances
segment is projected to reach 9.4 GBP billion GBP in 2020 and market growth
by 20.8% according to Statista, ( Statista. 2020 ) moreover, the growing Asia
market has huge potential, especially greater China region. In 2017 The world
bank has released its purchasing power parities report (PPPs) showing that
China surpassed the US become No1 buying power, ( F, Tang. 2020 ) Dyson
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needs to seize the opportunities to secure its market leadership. An
achievable market objective for Dyson in this new product launch to increase
6-12% of global market share within the first year of releases. Dyson can start
to deliver goods on 1 October and It is estimated to break-even in three
months 10,000 units need to be sold, and sell 500,000 units in the Asia Pacific
region by end of 2021 generate 600 million SGD revenue to the company. It is
pertinent that Dyson brand recognition and products quality make this product
launch profoundly promising in Asia.
4. Marketing Communications Strategy &
Implementation Tactics
4.1 Advertising
The Advertising strategies of a new product is crucial, which it indirectly
determine the success or failure of the new product. Dyson advertising plan
will use mass communication channel to reach out large audience to inform
the audiences about the Dyson hair washing machine and increase brand
awareness, in the second place use psychological and social influence to
attempt influence on consumer behavioral change. Lastly, at the product
mature stage remind and reinforce product awareness.
First of all, Dyson’s in house advertising marketer has proved its
competence by its successful advertising campaign of vacuum cleaner and
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hairdryer. Therefore for the new hair washing machine advertising campaign
will still lead by the in-house advertising executive. Dyson advertising
objectives will be to develop product awareness and change customer beliefs
and attitudes. Dyson hair washing machine’s advertising budget is 3% of its
revenue, which is about $120 million. The hair-washing machine is a
revolutionary innovative product which will completely free people from daily
personal hygiene chore turn it into pleasure, by enhancing these products
benefits Dyson can convey this information to the audiences. Dyson should
indicate the distressing while people washing their hairs, the time
consumption as well as the personal ineffective manual washing methods.
Eventually, relative comparison the differences between Dyson hair washing
machine and the manual washing results. This message will deliver to the
audience by using visuals encoding methods. Firstly, Dyson can let hair and
scalp health expert endorses the benefit of Dyson hair washing machine.
Secondly, present the products in a futuristic way which will increase products
attractiveness. Lastly, apply brand appeal in the advertisement utilizes Dyson
brand recognition.
All things considered, Dyson’s video advertisement will present the
product promise, a healthy hair and scalp are peoples right, following with
Dyson positioning statement. The video will target middle-class audience,
illuminate Dyson mission is to make every person have a healthy hair and
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scalp. Correspondingly provide scientific facts of product benefits, then with
products demonstration in a futuristic way reflects Dyson advanced
technology. Lastly, indicate purchase channel information. The advertisement
video can outsource to professional video creators. Publish through television
and internet media by use continuity methods maximum product exposure
rate.
4.2 Personal selling & Sales promotions
Today, Personal selling is effective marketing communication tools to
influence consumers purchase decisions in the methods of person to person
communications. It involves trained salesperson direct communication with
the prospective buyer to attempt positive influence and persuade them in the
direction of buying the company products. Dyson will establish point-of-
purchase in the local store, a perfect stage to allocate professional
salesperson reach out potential buyer. In the light of greater China region,
TikTok unveils first shoppable live-stream platform, which significantly benefits
to Dyson,( Williams, R. 2020 ) Dyson can collaborate with internet
influencers or celebrities to promote the products reach out a large audience.
Besides personal selling, Dyson also can use sales promotion method
to increase sales. Sales promotion enhance customers perceived value
attracts first-time buyers, in contrast, it could devalue brands equity and
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